District of Maryland
Press releases recorded for this federal judicial district.
Food Service Company Manager Pleads Guilty to Embezzling over $402,000 in Customer PaymentsRead the Press Release
Baltimore, Maryland - Cesar Raphael Barretto, age 44, of Severn, Maryland, pleaded guilty today to wire fraud, in connection with a scheme to embezzle over $402,000 from the company where he worked.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea agreement, Barretto was a territory manager for U.S. Foods, Inc., a company that distributed food and supplies to restaurants, hospitals, hotels, and other businesses. Barretto worked out of the U.S. Foods office in Severn, where he was responsible for helping customers place orders for U.S. Foods products. Barretto transmitted customer orders to the company electronically. The orders were then sent to a regional distribution center where they were picked up by the customer, or picked up and delivered to the customer by Barretto. In addition, Barretto tracked the sales of products in his region and was responsible for collecting the balances due on customers’ invoices. When Barretto received a payment from a customer, he deposited it into the U.S. Foods bank account and emailed the company a collection report, which credited the customer’s account.
According to his plea agreement, from June 2010 through July 2012, Barretto defrauded one of U.S. Food’s customers, American Pollo Restaurant Group, by diverting over $402,000 in payments he received on their account to pay for cases of food that Barretto ordered for himself under the account of another U.S. Foods customer, a bakery located in Langley, Maryland, without that customer’s knowledge.
Specifically, Barretto admitted that he ordered cases of food from U.S. Foods for his own personal use, using the bakery customer’s account. Barretto made sure those products were delivered to the US Foods’ warehouse in Severn, Maryland, where he could pick them up in his car. Barretto paid for the unauthorized purchases by diverting a portion of the payments received from American Pollo to the bakery customer’s account. In collection reports emailed to U.S. Foods, Barretto falsely listed some of American Pollo’s payments as credits to the bakery customer’s account, thereby paying off the outstanding balances created in that account by Barretto’s unauthorized purchases. After Barretto picked up the products he purchased with embezzled funds, he sold them at a discounted price to a restaurant in Laurel, Maryland, in exchange for cash.
Over a two-year period, Barretto paid for more than 300 unauthorized food purchases from US Foods by creating and submitting false collection reports that transferred approximately $402,000 in collection payments from American Pollo to the bakery customer’s account.
As part of his plea agreement, Barretto will be required to pay restitution of $402,680, the full amount of the victim’s losses.
Barretto faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge George L. Russell, III, has scheduled sentencing for July 23, 2015, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.
Two Odenton Men Sentenced in Scheme to Force Women into ProstitutionRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Michael Wesley Lee, a/k/a “King,” or “King P,” age 31, of Odenton, Maryland, today to 13 years in prison followed by five years of supervised release, for use of an interstate facility to promote a prostitution business, and conspiring to commit sex trafficking by force and fraud. Judge Motz also ordered that, upon his release from prison, Lee 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).
Also today, Judge Motz also sentenced co-defendant Robert Downing, a/k/a “Luck,” and “Shamrock,” age 46, also of Odenton, to 46 months in prison followed by three years of supervised release for use of an interstate facility to promote a prostitution business.
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 and Anne Arundel County Police Chief Tim Altomare.
According to their plea agreements, from at least 2012 to his arrest in August 2013, Lee used social media websites to entice females to prostitute for him. Downing worked for Lee. The defendants used the internet to recruit women, and to advertise sex services. The defendants rented hotel rooms to house the women and to serve as a place to prostitute. The defendants used prepaid gift and debit cards to pay for the rooms.
More specifically, after Lee had transported a female, “J,” from New York to prostitute in Maryland, on February 23, 2013, Lee and Downing accompanied “J” to the Maryland Live! casino in Anne Arundel County. The defendants are seen on video cameras watching “J” unsuccessfully solicit prostitution customers in the casino. At some point, Downing left the casino; and later, Lee and “J” also left. The two walked to Lee’s car in the casino’s garage. Video cameras recorded Lee yelling and scolding the woman, and then striking her head repeatedly with a closed fist. Lee grabbed her by the hair and ripped off her wig, and violently shoved her when she tried to shield her body against the car. Police arrived and arrested Lee. Downing arrived at the scene and took “J” back to his home. On February 25th, Downing drove “J” to a local hotel so that she could earn money by prostituting – money that would help pay Lee’s bail. “J” escaped when Downing left briefly. Ultimately, “J” refused to press charges, and the state assault charges were dismissed against Lee a few months later and he was released from custody.
In August 2013, Lee used a social media website to lure another woman, “S,” from St. Louis, Missouri to Baltimore to prostitute. Lee bought a bus ticket for “S,” who arrived in Baltimore on August 10. When Lee picked her up at the bus station, he told her that he was a pimp. He took “S” to a hotel in Linthicum Heights, Maryland and demanded her identification card. “S” was intimidated by Lee’s size and demeanor, so she gave him her identification card and worked as a prostitute. Lee told her that she needed to reimburse him for the bus ticket and that she had to pay a $1,000 initiation fee. He transported “S” from Maryland to New Jersey to prostitute. After two weeks of working for Lee as a prostitute, “S”, who wanted to get away, called an ambulance on August 26, 2013, regarding pain she was having in her vaginal area, and reported her situation to the EMTs upon their arrival. Lee was arrested that day.
Further, in August 2013, Lee tried to persuade “M,” an exotic dancer in Baltimore, to prostitute for him. “M” agreed to meet Lee at a hotel room believing that she was going to dance at a private party. When Lee attempted to prostitute her, she tried to leave the room, but Lee stopped her. Subsequently, “M” overheard Lee on the phone with a man who Lee said was from Florida and was driving up to meet “M.” “M” became scared about being made to have sex or being taken out of state. “M” contacted her friends by text message and her father ultimately called 911. At the same time, “M” devised a plan whereby she told Lee she was thirsty. When Lee gave her money to get a soda in a nearby vending machine, “M” began running away from the hotel. She heard Lee running behind her. Lee chased her until she was able to hop a fence behind the hotel. By the time the police arrived at the hotel as a result of the 911 call, “M” was already safe.
After Lee was arrested on August 26, 2013, Downing began pimping “MS” for Lee while Lee was in jail. Lee had previously lured “MS” to engage in prostitution and had transported her to Ocean City to prostitute. At the time of Lee’s arrest, “MS” was in the hospital being treated for a serious medical condition. Downing picked “MS” up from the hospital upon her discharge in September and immediately installed her at a hotel. “MS” and Downing traveled to New York and New Jersey so that “MS” could prostitute. At times, Downing drove “MS” to methadone clinics for treatment.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution and sex trafficking by force and fraud, with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Patricia A. McLane, who prosecuted the case.
Prince George’s County Drug Dealer Exiled to 12 Years in Prison for Distribution of Crack Cocaine and Illegal Possession of A GunRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Gabriel Vashon Seay, age 35, of Camp Springs, Maryland, today to 12 years in prison followed by five years of supervised release for possession with intent to distribute crack cocaine and possession of a firearm in furtherance of a drug trafficking crime. Judge Chasanow also ordered that Seay forfeit a gun, ammunition and over $23,000 in cash seized from his home.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Seay's plea agreement, on February 12, 2014, law enforcement conducted a traffic stop of a vehicle driven by Seay. During the stop, Seay informed the officers that he did not have a valid license. In addition, Seay was found to have an open warrant from Dougherty County, Georgia, for violation of probation in relation to a prior conviction. Seay was placed under arrest and during a subsequent search law enforcement officers recovered 26.95 grams of cocaine base from Seay.
Also on February 12, 2014, law enforcement officers executed a search warrant at Seay’s residence. Officers recovered a loaded 9mm semi-automatic pistol, a fully loaded 30-round magazine, and a bulletproof vest. In addition, throughout Seay’s apartment the officers recovered the following controlled substances: 87.35 grams of crack cocaine; 452.36 grams of powder cocaine; 331.9 grams of 3,4-Methylenedioxymethcathinone (Methylone); 32.96 grams of heroin; and 31.74 grams of marijuana. Law enforcement also seized $23,013 in cash, a digital scale, a grinder, a hydraulic press, and packaging materials.
Seay further admitted that he maintained his residence as a premise for the purpose of manufacturing and distributing a controlled substance.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kelly O. Hayes, who prosecuted the case.
Postal Employee Sentenced for Seven-Year Disability ScamRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Colette Lee, age 49, of Baltimore, today to 18 months confinement, followed by three years of supervised release for making false statements to obtain federal employee compensation benefits. Judge Garbis also entered an order that Lee pay restitution of $244,912.65, the loss suffered by the Postal Service and the Department of Agriculture.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Inspector General William E. Johnson, Jr. of the Maryland Department of Human Resources.
“Taxpayers foot the bill for phony disability claims by government workers,” said U.S. Attorney Rod J. Rosenstein. “Postal employee Colette Lee filed a fraudulent disability claim in 2007 and kept the scam going for seven years until she was caught. This case is an insult to taxpayers and honest government employees.”
According to her plea agreement, from 2003 to 2014, Lee worked for the U.S. Postal Service as a letter carrier and then became a mail handler.
In May 2007, February 2008, August 2009 and October 2009, Lee submitted claims for disability for a work-related injury under the Federal Employees’ Compensation Act (FECA). Lee failed to disclose relevant parts of her medical history on a questionnaire she submitted on June 19, 2003 at the start of her Postal Service employment, including that: she had an active injury claim; had been previously treated in the emergency room; had been in physical therapy programs; and had CT scans. Lee also failed to disclose to medical professionals who evaluated her injury and potential treatment and assessed her possible return to work that Lee had a prior medical history that included injuries from at least four motor vehicle accidents that pre-dated her claims for FECA benefits. Lee was also involved in a motor vehicle accident not related to her Postal Service employment in September 2009, after she submitted claims for FECA benefits.
From May 17, 2007 through January 24, 2014, Lee received wage payments and FECA benefits for her alleged work-related injuries.
On August 23, 2012, Lee was interviewed regarding her claimed physical limitations and capability to return to work. Lee denied that she had any injuries prior to working for the Postal Service; stated that she had only been in one vehicle accident; stated she could not open her car door with her right hand; claimed that she drove her vehicle with her left hand while keeping her right hand down, needed to take breaks every 20 to 25 minutes, and could not use both hands to turn the steering wheel; advised that she could not grasp items with her right hand and had to ask people for assistance when shopping; and stated that she could not play with her son.
Surveillance conducted from December 2010 to February 4, 2014 showed Lee engaging in activities inconsistent with what she reported during the August interview. Agents observed Lee opening and unlocking her car door with her right hand, driving her vehicle at times with only her right hand, driving long periods without breaks, using her right hand to lift herself into a van, using both hands to maneuver the steering wheel, grasping items with her right hand, talking on her cell phone with her right hand, shopping by herself while grabbing items and unloading items without any assistance, and playing with children while running, walking, lifting, bending, and riding a bike. Insurance records also showed that Lee had prior injuries from motor vehicle accidents that she did not report during the August 23, 2012 interview.
Additionally, Lee admitted that she applied for food stamp benefits, which are funded by the Department of Agriculture, in 2010, 2011 and 2012, without disclosing that she was receiving FECA benefits.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Service Inspector General’s Office, U.S. Department of the Treasury Inspector General’s Office; and Maryland Department of Human Resources Inspector General’s Office for their work in the investigation. Mr. Rosenstein commended the National Insurance Crime Bureau for their assistance in the investigation, and thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.
Lexington Park Man Admits to Gun Charges and Trafficking Contraband CigarettesRead the Press Release
Greenbelt, Maryland – William Terrance Proctor, a/k/a “Boobie,” and “Booby,” age 31, of Lexington Park, Maryland, pleaded guilty today to aiding and abetting the theft of a firearm, possession of an unregistered firearm, unlawful sale of a firearm to a prohibited person; and receipt, possession and transportation of contraband cigarettes.
The plea agreement 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; Charles County Sheriff Troy Berry; St. Mary=s County Sheriff Tim Cameron; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
“ATF worked hand-in-hand with our local counterparts to uncover a calculated scheme involving the theft and subsequent sale of numerous firearms,” stated ATF Special Agent in Charge William P. McMullan. “The law enforcement community in Southern Maryland strives to protect the public and prevent firearms from getting into the hands of criminals. We will continue to work to ensure that all of those responsible for the theft of these firearms are brought to justice.”
According to his plea agreement, on October 27, 2012, individuals who stole approximately 48 firearms from a gun shop in Lexington Park transported the guns to Proctor’s residence. Knowing that the guns were stolen, Proctor agreed to store the guns at his house. Thereafter and until June 2014, Proctor sold 45 of the stolen firearms, including eight stolen firearms to a previously convicted felon.
On March 20, 2014, Proctor sold for $1,000 a rifle which had a barrel measuring less than 16 inches. And from April to June, 2014, Proctor sold seven firearms in exchange for contraband cigarettes – that is, cigarettes for which the applicable Maryland cigarette taxes were not paid. Proctor then sold all of the contraband cigarettes.
On June 27, 2014, Proctor was arrested in Maryland when he attempted to sell an eighth firearm in exchange for contraband cigarettes.
Proctor faces a maximum sentence of 10 years in prison on the gun charges and five years for receiving and transporting contraband cigarettes. U.S. District Judge Paul W. Grimm has scheduled sentencing for August 3, 2015 at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the ATF, Charles County and St. Mary’s County Sheriffs’ Offices and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston, who is prosecuting the case.
Berlin Man Charged with Producing Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted David Edward Weatherholtz, age 55, of Berlin, Maryland, on charges of producing and possessing child pornography, and attempting to entice minors to engage in sex. The indictment was returned on March 24, 2015 and unsealed today upon his arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Worcester County Sheriff Reggie T. Mason, Sr. and Worcester County State’s Attorney Beau Oglesby.
According to the six count indictment, from 2008 to 2012, Weatherholtz coerced a minor to engage in sex to produce images of child pornography. On December 16, 2014, Weatherholtz is alleged to have possessed a computer hard drive and a laptop containing child pornography.
The indictment further alleges that from December 3 to 16, 2014, Weatherholtz used electronic mail and text messaging to attempt to coerce minors to engage in sex.
Weatherholtz faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for each of three counts of producing child pornography; life in prison, with a minimum mandatory sentence of 10 years in prison, for attempted enticement; and 10 years in prison on each of two counts for possession of child pornography. An initial appearance was held this afternoon in U.S. District Court in Baltimore. Weatherholtz was detained pending a detention hearing scheduled for April 3, 2015 at 11:30 a.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Maryland State Police, Worcester County Sheriff’s Office, Worcester County State’s Office’s Office and the Internet Crimes Against Children Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
Stockbroker Sentenced to 105 Months in Scheme to Defraud Clients of over $2.6 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Gary Clark Steciuk, age 39, of Buffalo Grove, Illinois and Heber Springs, Arkansas, today to 105 months in prison followed by three years of supervised release for mail fraud in connection with a six year scheme to defraud his clients of their retirement funds. Judge Hollander also entered an order that Steciuk pay restitution of $2,386,025.07, the amount stolen from at least 18 victims.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Steciuk was a stockbroker who worked primarily out of his home in Buffalo Grove. Steciuk was authorized to sell stocks, bonds, options, mutual funds and variable annuities. In approximately 2009, Steciuk established a business, College Funding Solutions, ostensibly to provide investment advice to clients interested in investing and saving for college expenses.
According to his plea agreement, from May 2008 to August 2014, Steciuk embezzled funds from his clients’ investment accounts. These accounts were funded with client retirement funds and were maintained by the issuers of the annuities. Steciuk used a variety of methods to embezzle the funds. For example, Steciuk submitted forged forms at the firm that issued the annuities to change his clients’ address to a post office box in Hampstead, Maryland that Steciuk controlled. Steciuk then directed the firm to send funds from his clients’ accounts by check to the Maryland post office box. Steciuk forged the clients’ signatures on the back of the check, which were in the clients’ names, and deposited the checks into bank accounts he controlled. In addition, Steciuk created unauthorized loans from the clients’ annuities for his benefit; used forged transfer forms and forged checks to make unauthorized withdrawals; and in some cases, liquidated the annuities in their entirety and stole the proceeds.
Steciuk used the proceeds of the scheme to support a lavish lifestyle, including purchasing multiple homes for himself and others, as well as to support his extramarital affairs.
There were at least 18 victims of the scheme, including Steciuk’s step-grandmother and mother-in-law, as well as elderly and vulnerable victims. The total loss resulting from the fraudulent scheme is approximately $2,686,025.07.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Gregory R. Bockin, who prosecuted the case.
North Potomac Felon Indicted in $212,000 Business Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Curtis R. Martin, Jr., age 55, of North Potomac, Maryland, on charges related to a scheme to defraud a business of more than $212,000. In addition, the indictment charges Martin with making false statements to his probation officers. The indictment was returned on March 18, 2015, and unsealed on March 26, 2015, upon Martin’s arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the 14-count indictment, Martin purported to operate technology companies, including Oledix Technologies, LLC and The Oledix Store, LLC, as their President and Chief Executive Officer (CEO). Martin represented that Oledix Technologies was in the business of selling video teleconferencing equipment that employed LED touchscreen technology, and that The Oledix Store was a retail outlet for Oledix Technologies. In fact, neither company did any significant amount of business.
According to the indictment, Martin, through false and fraudulent representations, obtained a total of approximately $212,455 between May and August 2012, from New Century Financial (NCF), a company that provides account receivable financing. Martin allegedly used the funds for personal and business-related expenses.
Accounts receivable financing permits a business to obtain loans from a lender or financing company based upon outstanding invoices issued to customers, but for which payment is not yet due under the terms of the invoice. An accounts receivable financing company agrees to provide financing that is less than the full face value of the invoice. The business receiving the financing instructs its customer to make the payment owed on the invoice to the financing company, which retains the difference between the amount financed and the full face value of the invoice as its profit.
The indictment alleges that that Martin submitted an on-line application for financing to NCF that falsely represented and inflated the monthly sales of Oledix Technologies. In support of the financing application, Martin submitted additional fraudulent documents, including bank statements, financial reports, and sales summaries, that presented a false and misleading picture of the financial position of Oledix Technologies. Finally, Martin provided NCF with fraudulent invoices which falsely represented that Oledix Techologies had sold electronic devices relating to video teleconferencing capabilities to Company 1 at a cost of $159,000, and had sold Johns Hopkins Hospital/Hopkins Medical Center three “Oledix mobile telemedicine carts” at a cost of $174,200. Martin submitted an additional fraudulent invoice to NCF claiming that Hopkins had purchased an additional six “Oledix Mobile Telemedicine Carts” for a total price of $332,550. The indictment alleges that Oledix Technologies actually owed money to Company 1, and had not sold any equipment to Johns Hopkins . To carry out the scheme, Martin allegedly sent or caused to be sent to NCF fraudulent emails, purporting to be from a Hopkins doctor and from a Hopkins account manager, which falsely confirmed the validity of the Hopkins invoices.
The indictment further alleges that from July 2011 through July 2013, Martin made false statements to his probation officers. During that time, Martin was on supervised release for a 2010 federal conviction in the Eastern District of California. As part of his supervised release, Martin was required to provide his probation officer with a monthly report detailing personal, employment and financial information. Martin certified that the information provided on the forms was correct. The indictment alleges that Martin made false statements on the forms he provided to his probation officer, including where and with whom he was living, where he was employed, and that he was not a party to any lawsuit.
The indictment seeks forfeiture of $212,455, believed to be the proceeds of the fraud scheme.
Martin faces a maximum sentence of 20 years in prison for each of nine counts of wire fraud, and a maximum of five in prison for each of five counts of making a false statement. Martin had his initial appearance on March 26, 2015 and is detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked the U.S. Probation Office for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
Inmate Sentenced to over 17 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced inmate Russell Carrington, a/k/ Rutt, age 34, of Baltimore, and a leader in the Black Guerilla Family (BGF) gang, today to 210 months in prison, followed by six years of supervised release, for a racketeering and drug conspiracy that included the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Carrington was convicted on February 5, 2015, after a lengthy trial.
Earlier this week, Judge Motz sentenced former correctional officers Jennifer Owens, a/k/a O and J.O., age 31, of Randallstown, Maryland; Milshenna Peoples, age 29, of Baltimore; and Javonne Lunkin, age 28, of Baltimore, each to a year and a day in prison, followed by three years of supervised release. Owens, Peoples and Lunkin pleaded guilty to a racketeering conspiracy arising from their participation in the smuggling of drugs and contraband for members of BGF inside BCDC.
In a related proceeding, U.S. District Judge Ellen L. Hollander sentenced Tyesha Mayo, age 31, of Baltimore, on March 26, 2015, to 15 months in prison, followed by three years of supervised release. Mayo also pleaded guilty to the racketeering conspiracy, admitting that she supplied drugs to the COs which the COs then smuggled into the jail.
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; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS); Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Marilyn J. Mosby.
This case developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. Investigations are continuing.
According to trial testimony and court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building. Tavon White and other BGF leaders and members incarcerated at BCDC were involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (CO’s), who received payments, gifts, or a share of the profits.
Carrington was a BGF leader incarcerated in BCDC who sold Percocet pills which COs smuggled into the jail for him. Carrington had a sexual relationship with a correctional officer, who helped Carrington finance his drug operations by keeping Green Dot cards for him. In 2012, Carrington introduced Tavon White and a correctional officer to a source of supply for Percocet pills. He also attempted to recruit other correctional officers to smuggle contraband into BCDC. Former prison employee Michelle McNair also helped Carrington with his drug operations, but quit after Carrington failed to pay her.
Former correctional officers Owens, Peoples and Lunkin admitted that while they worked at BCDC, they helped smuggle contraband into the jail, including tobacco, marijuana, and prescription drugs, on behalf of and for further distribution by BGF members. The defendants knew that by smuggling contraband into BCDC, they furthered the racketeering enterprise of BGF.
Owens and Peoples entered into personal and sexual relationships with inmates who were BGF gang members. For example, Owens admitted that she had a personal and sexual relationship with BGF gang leader Tavon White while he was an inmate at BCDC and has two children by White. Owens had “Tavon” tattooed on her neck. Peoples admitted that she also had personal and sexual relationships with inmates who were BGF members. Owens, Peoples and Lunkin were aware of other COs who were involved in smuggling and who had sexual relationships with inmates.
Outside the prison, Owens frequently obtained contraband from Tyesha Mayo and other co-defendants. Mayo obtained Percocet, Xanax, Suboxone and marijuana from co-conspirators for distribution to COs. Tavon White funded the drug purchases and paid Mayo for her services by means of Green Dot money transfers and by cash payments provided by co-conspirators outside the prison.
Inmates and BGF members Tavon White, a/k/a Bulldog and Tay, age 37, and Jamar Anderson, age 24, both of Baltimore, were sentenced to 12 years in prison and 121 months in prison, respectively. Michelle McNair, age 24, of Baltimore, a former contract employee with the Department of Public Safety and Correctional Services, was convicted at trial for the racketeering and drug conspiracies, as well as a money laundering conspiracy. McNair is awaiting sentencing.
Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers. Thirty-five defendants pleaded guilty; five defendants were convicted after trial. Three defendants were acquitted and one defendant died.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Owings Mills Felon Pleads Guilty to Illegal Possession of a GunRead the Press Release
Baltimore, Maryland –Darrick Jerome Greer, age 25, of Owings Mills, Maryland, pleaded guilty today to being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Colonel William M. Pallozzi, Acting Superintendent of the Maryland State Police.
According to his plea, on September 26, 2014, Greer was driving a vehicle that was stopped by a Maryland State Police trooper. The trooper discovered that Greer possessed a loaded .380 caliber semi-automatic handgun, which had been stolen from its originally registered owner.
At the time, Greer was on release, pending sentencing in a bank fraud case in which he used the personal identifying information of over 50 individuals, resulting in a total loss to two banks of $183,846.96.
Greer had previously been convicted of a felony and therefore was prohibited from possessing a firearm or ammunition. In addition, Greer’s conditions of release precluded his committing any federal, state or local offenses.
Greer faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz has scheduled Greer’s sentencing for June 3, 2015, at 9:30 a.m.
On November 21, 2014, Judge Motz sentenced Greer to 42 months in prison for bank fraud and aggravated identity theft and ordered Greer to pay restitution of $183,846.96.
United States Attorney Rod J. Rosenstein commended the ATF, Secret Service and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney P. Michael Cunningham, who is prosecuting the case.
Baltimore Man Sentenced to 10 Years in Prison for Armed RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Richard Bruzdzinski, age 43, of Baltimore, today to 10 years in prison followed by five years of supervised release for committing an armed robbery, 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; 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 his plea agreement, on October 2, 2013, Bruzdzinski and co-conspirator Derek Roberts robbed a store in Timonium, Maryland. The owner of the establishment recognized Bruzdzinski, who had been a customer of the store a few weeks earlier. The owner opened the electronic door for Bruzdzinski and he and Roberts entered the store. Immediately, Roberts drew a handgun, pointed it at the owner, and stated that a robbery was occurring. Bruzdzinski drew a stun gun from his pocket. The two men directed the owner and an employee to go to the office in the back of the store, then ordered the victims to the ground. Bruzdinski and Roberts tied the hands of the victims with plastic zip ties. Bruzdzinski and Roberts stole money, gold jewelry, coins, the owner’s Glock pistol, and the victims’ cell phones.
Derek Roberts, age 45, of Baltimore, previously pleaded guilty to his role in this robbery, as well as three other robberies. Roberts and the government have agreed that if the Court accepts the plea, Roberts will be sentenced to 228 months in prison. Judge Quarles has scheduled sentencing for May 14, 2015 at 1:00 p.m. Roberts remains detained.
United States Attorney Rod J. Rosenstein commended 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 Attorneys Scott A. Lemmon and Bonnie S. Greenberg, who prosecuted the case.
Anne Arundel County Woman Sentenced to 7 Years in Prison for Conspiracy to Distribute and Receive Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Erin Elizabeth Mali, age 32, of Arnold, Maryland, today to seven years in prison followed by a lifetime of supervised release for conspiracy to distribute and receive child pornography, and for distribution of child pornography. Judge Garbis ordered that upon her release from prison, Mali must register as a sex offender in the place where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Anne Arundel County Police Chief Tim Altomare.
According to her plea agreement and testimony at the trial of co-defendant Howard James Clem IV, Mali met Clem 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.
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 Mali’s and Clem’s residences and on their social networking accounts. Law enforcement recovered the SD card on which many of the images Mali distributed to Clem were stored. In addition, law enforcement recovered the images and communications Mali and Clem exchanged from searches of their mobile social networking and dating application. Mali admitted that she knew the minors depicted in the images were all under 16 years old.
On January 29, 2015, Howard James Clem IV, a/k/a “Jamie,” age 33, of Pasadena, Maryland, was convicted after a six-day trial for conspiracy to distribute and receive child pornography, and for receipt and possession of child pornography. Upon his conviction, Judge Garbis ordered that Clem be immediately taken into custody. Clem faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison for conspiracy to distribute and receive child pornography and for each of two counts of receipt of child pornography; and a maximum of 20 years in prison for possession of child pornography, each followed by up to lifetime of supervised release. Judge Garbis has scheduled sentencing for Clem on May 27, 2015 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI 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.
Previously Convicted Owings Mills Sex Offender Pleads Guilty to Possession of Child PorngraphyRead the Press Release
Baltimore, Maryland – Shawn Joseph Eisenstein, age 28, of Owings Mills, Maryland, pleaded guilty today to possession of child pornography. Eisenstein was previously convicted of distribution of child pornography in Baltimore County and was required to register as a sex offender.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Eisenstein’s plea agreement, on May 28, 2008, in the Circuit Court for Baltimore County, Maryland, Eisenstein was convicted of distribution of child pornography, and was sentenced to five years’ incarceration, with three years and six months suspended. Eisenstein was placed on three years of probation upon his release from prison and was also ordered to register as a sex offender.
According to his plea agreement, in July 2014, Eisenstein uploaded images containing child pornography to his email account. Following the email provider’s discovery of the images, a search warrant for Eisenstein’s residence was executed on July 29, 2014. Eisenstein was present during the execution of the search warrant. After being advised of his rights, Eisenstein voluntarily spoke to the investigators and admitted to using his cell phone and his email accounts to trade files of child pornography with people he met on an image board website. He stated that he viewed the child pornography on his cell phone.
During the search warrant, investigator’s seized Eisenstein’s cell phone, which was forensically examined by a Baltimore County Computer Forensic Examiner (CFE), and found to contain over 100 images of children engaged in child pornography. In all, Eisenstein possessed over 600 images of child pornography, including pre-pubescent children and images portraying sadistic or masochistic conduct, or other depictions of violence.
Eisenstein further admitted that in October 2011, while still on probation for his previous conviction for distribution of child pornography, he used an email account to communicate with an undercover Baltimore County detective who represented himself as a 13 year old female. During those conversations Eisenstein discussed meeting the “girl” to engage in sexually explicit conduct.
As part of his plea agreement, Eisenstein 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).
Eisenstein and the government have agreed that if the Court accepts the plea agreement Eisenstein will be sentenced to 11 years in prison followed by up to a lifetime of supervised release. U.S. District Judge George L. Russell has scheduled sentencing for June 12, 2015, at 2:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Former Post Office Manager Sentenced in Bribe SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced former U.S. Postal Service station manager Richard Lewis Wright, III, age 47, of Baltimore, today to 40 months in prison followed by three years of supervised release for bribery in connection with a scheme to obtain U.S. Postal Service contracts in exchange for bribe payments. Judge Hollander also entered an order that Wright forfeit and pay restitution of $501,791.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement and court documents, Wright was the USPS station manager of the Waverly Station in Baltimore. Co-defendant Kimberly Parnell was the USPS station manager of the Pikesville Station in Pikesville, Maryland. As a station manager, Wright and Parnell had authority to contract for landscaping, snow removal and cleaning services at the post offices they managed, and bill those services to USPS for payment.
Beginning in 2007 for Wright and 2010 for Parnell, and continuing until July 2013, Wright and Parnell created, approved and submitted inflated invoices for maintenance work allegedly performed at their post offices. They split the proceeds with the providers of the services, including Shane Anderson and others.
For example, Wright and Parnell initially accepted bribes from a co-conspirator who owned a landscaping company. In July 2013, after becoming increasingly frustrated with the co-conspirator’s slow payment of bribes, Parnell recruited Shane Anderson, who operated a landscaping company in Baltimore called Youthful Minds Lawn Care. The co-conspirators agreed that Wright and Parnell would submit inflated invoices from Youthful Minds Lawn Care for landscaping services in exchange for a percentage of the proceeds paid to Youthful Minds by the USPS.Similarly, beginning in August 2010, Wright also solicited and received bribes from Ladeena Sketers-Anderson, who operated Keep U Clean cleaning service. Sketers-Anderson received USPS payments, approved by Wright for services allegedly provided at Wright’s Post Office. Sketers-Anderson then issued checks to a cleaning company owned by Wright, which Wright cashed.
In all, Wright submitted $591,791 worth of invoices in exchange for bribes.
Kimberly A. Parnell, age 44, and Shane Anderson, age 38, both of Baltimore, and Ladena D. Sketers-Anderson, age 47, of Randallstown, Maryland, previously pleaded guilty to their roles in the scheme. Parnell, who admitted to submitting$50,470 worth of invoices in exchange for bribe payments, was sentenced to 20 months in prison. Both Shane Anderson and Ladena Sketers-Anderson were sentenced to 15 months in prison.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the USPS-Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who prosecuted the case.
Baltimore Carjacker Exiled to Almost 15 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Derrick Chapman, age 22, of Baltimore, today to 179 months in prison, followed by three years of supervised release, after Chapman pleaded guilty today to carjacking.
The guilty plea and sentence 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; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, on August 1, 2013, Chapman approached a man who was alighting from his vehicle in the 3400 block of Mayfield Avenue in Baltimore and forcibly demanded his car keys and money. Although Chapman was wearing a mask that partially covered his face, the victim recognized him. Chapman threatened the victim, and ordered him to run away. Chapman drove off in the victim’s car.
Several minutes later, Baltimore Police officers saw the stolen vehicle in the 4100 block of Parkside Drive in Baltimore. They tried to initiate a traffic stop, but the vehicle sped off, crashed into several cars and rolled over. Baltimore Police officers arrested Chapman and recovered the mask. Chapman was identified by the victim car owner.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew K. Hoff, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Two Co-Conspirators Sentenced for Using Counterfeit Checks to Buy Store Merchandise and Gift CardsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Nichelle Nicole Rogers, age 28, of Washington, D.C., today to 54 months in prison followed by three years of supervised release for conspiring to commit wire fraud and aggravated identity theft, in connection with a scheme to defraud Target Corporation. Judge Chasanow also sentenced Ebony Nicole Ruffin, age 28, of District Heights, Maryland, today to 27 months in prison followed by three years of supervised release for the wire fraud conspiracy in connection with the scheme. Judge Chasanow entered orders that Rogers and Ruffin each forfeit and pay restitution of $485,000.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office.
According to their plea agreements, from September 2011 to November 2013, Rogers and Ruffin used counterfeit personal checks and false identifications to fraudulently obtain visa gift cards and other merchandise from Target stores in Maryland, District of Columbia, Virginia, West Virginia, Pennsylvania and North Carolina. The co-conspirators presented over 1,400 counterfeit checks at Target stores, including stores in Frederick, Bowie, and Waldorf, Maryland, as payments for merchandise and gift cards, resulting in a total loss to Target of at least $485,000.
Rogers and Ruffin used the visa gift cards to buy items from Target for themselves, and to buy merchandise from other retailers, such as Nordstrom, later returning the merchandise for cash.
Rogers used or caused to be used the stolen identification of a real person on the counterfeit checks and presented this means of identification to Target cashiers to complete at least 350 transactions.
On November 9, 2013, Rogers was arrested by Prince William County (Virginia) Police officers for shoplifting at a Nordstrom Rack in Woodbridge, Virginia. Police seized 27 counterfeit checks in her possession. Rogers had previously attempted to use counterfeit checks and false identifications at other stores, and she had four receipts from a Target store which indicated that she had purchased 12 visa gift cards via counterfeit checks that day.
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 for its work in the investigation and thanked Assistant U.S. Attorneys Kelly O'Connell Hayes and Thomas P. Windom, who prosecuted the case.
Former Bechtel Executive Sentenced to over Three Years in Prison and Ordered to Forfeit $5.2 Million in Connection with Kickback SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Asem Elgawhary, 73, of Potomac, Maryland today to 42 months in prison for accepting $5.2 million in kickbacks to manipulate the competitive bidding process for state-run power contracts in Egypt. Judge Chasanow also ordered Elgawhary to forfeit $5.2 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office.
Elgawhary, the former principal vice president of Bechtel Corporation and general manager of a joint venture operated by Bechtel and an Egyptian utility company pleaded guilty on Dec. 4, 2014, to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws.
From 1996 to 2011, Elgawhary was assigned by Bechtel—a U.S. corporation engaged in engineering, construction and project management—to be the general manager at Power Generation Engineering and Services Company (PGESCo), a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company, known as EEHC. PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC. According to his plea agreement, Elgawhary admitted to accepting a total of $5.2 million from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process. One of the power companies, Alstom S.A., together with a Swiss subsidiary, pleaded guilty on Dec. 22, 2014, to violations of the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay bribes to foreign officials, including Elgawhary, in various countries.
As Elgawhary admitted in his plea agreement, he attempted to conceal the kickback scheme by routing the payments through various off-shore bank accounts, including Swiss bank accounts, under his control. Elgawhary also sent various documents and “Representation Letters” to Bechtel executives and members of the PGESCo Board of Directors, falsely certifying that he had no knowledge or suspicion of any fraud at PGESCo, and that there were no possible violations of law or regulations that should have been considered for disclosure in PGESCo’s financial statements. Elgawhary also admitted that, in a further attempt to conceal the scheme, he made misrepresentations to counsel for Bechtel when he was interviewed in April 2011.
Elgawhary further admitted to obstructing and interfering with tax laws by failing to report any of the kickback payments as income for the tax years 2008 through 2011 and providing false information about foreign bank accounts.
Elgawhary, a dual U.S. and Egyptian citizen, was arrested on a criminal complaint when he flew into the United States on Nov. 26, 2013, and was indicted on Feb. 10, 2014.
United States Attorney Rod J. Rosenstein thanked the FBI and IRS-CI for their work in the investigation. U.S. Attorney Rosenstein also recognized the significant assistance provided by the Criminal Division’s Office of International Affairs, and law enforcement counterparts in Switzerland, Germany, Italy, Saudi Arabia and Cyprus. Mr. Rosenstein praised Assistant U.S. Attorney David I. Salem and Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section, who prosecuted the case.
Eight New Defendants Charged in Racketeering Conspiracy Related to Gang Activity in the Cherry Hill Area of BaltimoreRead the Press Release
Baltimore, Maryland - A federal grand jury has returned a superseding indictment charging eight new defendants with racketeering conspiracy, drug and gun charges related to their gang activities as members and associates of the UDH or “Up Da Hill” organization, which operates in the Cherry Hill section of Baltimore. The superseding indictment, which was returned on March 18, 2015, and unsealed on March 20, 2015, also adds new charges against four defendants charged in the original indictment.
The superseding indictment charges the following defendants:
Steven Jackson, a/k/a Cutty, age 24, of Baltimore;
Asim Benns, a/k/a Seem, age 31, of Baltimore;
Clarence Shipley, a/k/a Mook, age 27, of Baltimore;
Gregory Sykes-Bey, age 21, of Baltimore;
*Elijah Sykes-Bey, a/k/a LaLa, age 20, of Baltimore;
*Cornell Harvey, a/k/a Little Head, age 27, of Baltimore;
*James Scott, a/k/a Mook Day, age 23, of Essex, Maryland;
*Lamont Jones, a/k/a Butt Juice, age 22, of Baltimore;
*Dominic Evans, a/k/a Flatline, age 25, of Baltimore;
*Michael Smith, a/k/a Lil Mikey, age 22, of Baltimore;
*Donte Thornton, a/k/a Tay, age 30, of Baltimore; and
*Alonzo Clea, a/k/a Zo, age 25, of Baltimore.
* - indicates new defendant charged in this indictment.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
All 12 defendants are charged in a racketeering conspiracy as well as in a conspiracy to distribute heroin, powder and crack cocaine, and marijuana as members of the “UDH” organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.”
According to the superseding indictment, the members of UDH were part of a racketeering enterprise and protected their power, territory and profits through the use of violence, threats of violence, intimidation, robbery, narcotics trafficking and obstruction of justice. The superseding indictment alleges that UDH members have also committed murders, attempted murders, assaults, carjackings, obstruction of justice and robberies. Specifically, the superseding indictment alleges that, beginning in 2004, UDH members committed six murders of rival gang members and/or drug dealers, and shot nine other individuals. In addition, the superseding indictment alleges that members of UDH committed home invasion, street and bank robberies in order to fund their narcotics activities.
All 12 defendants face a maximum sentence of life in prison. All are detained pending trial.
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, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Baltimore Felon Sentenced to 10 Years in Prison for Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Anthony Miles, a/k/a “Bigs,” and “Fat Boy,” age 30, of Baltimore, late on March 20, 2015, to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; 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, as part of an investigation into a drug trafficking organization that operated primarily in Baltimore City and Baltimore County, Miles was intercepted in text messages, telephone calls and other recordings arranging heroin transactions. On numerous occasions a cooperating witness drove Miles to locations in the Baltimore area to meet co-conspirators. At the meetings, Miles delivered heroin to the co-conspirators and collected payment for the drugs. For example on February 15, 2013, after delivering heroin to at least three co-conspirators and collecting money, Miles reportedly raised up a large stack of cash, holding it with both hands, and screamed that he just made $20,000 in an hour.
Over the course of the conspiracy Miles was responsible for the distribution of more than one kilogram of heroin. Miles’ participation in the heroin conspiracy violated the conditions of his supervised release for a previous federal drug conviction.
A total of 12 defendants, including Miles, Enzo Blanks, a/k/a “Zo,” age 29, and Marlow Bates, a/k/a “Low,” age 33, both of Baltimore, have been convicted for the heroin distribution conspiracy. Blanks and Bates were also sentenced to 10 years in prison for their roles in the conspiracy.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore Police Department and Baltimore County Police Department for their work in the investigation and thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Owner of Tax Preparation Business Sentenced to Prison for Tax FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Jennifer Rodriguez, age 41, of Hyattsville, Maryland today to a year and a day in prison followed by three years of supervised release for a fraud conspiracy arising from the filing of 283 false tax returns. Judge Motz entered an order that Rodriguez pay restitution of $983,382, the amount of fraudulent tax refunds paid by the IRS.
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.
“The sole objective of Ms. Rodriguez’s identity theft scheme was to unjustly enrich herself at the expense of the American taxpayer,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today's sentencing of Ms. Rodriguez should serve as a stark reminder to others that criminal behavior comes with a cost, prison time.”
According to her plea agreement, Rodriguez owned Latin Multi Services, a tax preparation service located in Silver Spring, Maryland. From October or November 2010 to January 2012, Rodriguez filed false income tax returns using the stolen identities of Puerto Rico residents. The stolen identities of families, including minor children, were obtained from a co-conspirator residing in Puerto Rico. Rodriguez falsely listed the tax payers’ home addresses as her own home address in Maryland, or variations of her business address. These tax returns also included fabricated income and deductions. All of the fraudulent returns requested refunds to be deposited in bank accounts that Rodriguez or a co-conspirator controlled.
Over the course of the scheme, Rodriguez filed 283 false tax returns which caused IRS to pay $983,382 in fraudulent refunds.
United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.
Federal Jury Convicts Four Baltimore Area Drug Dealers in Conspiracy to Distribute Kilograms of Cocaine and HeroinRead the Press Release
Baltimore, Maryland – A federal jury today convicted 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.
The guilty verdicts 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 evidence presented at the nine day trial, on August 11, 2014, each of the defendants agreed to purchase kilogram amounts of cocaine and/or heroin from a cooperating individual (CI). Law enforcement had previously seized 25 kilograms of cocaine and six kilograms of heroin from a concealed compartment in a motor home that the CI used to transport the drugs from California to Maryland. The defendants agreed to meet the CI in the parking lot of a Baltimore area mall to complete the drug transaction. The telephone calls with the defendants arranging the transactions were recorded.
Witnesses testified that Brown and co-defendant Tavon Hopkins were arrested after they arrived to pick up the four kilograms of cocaine they had agreed to purchase from the CI. At the time of their arrest, law enforcement recovered $157,000 in cash from a bag in their vehicle. Cannady and Parker were also arrested when they arrived at the meeting location to pick up the cocaine and heroin requested by Cannady. No cash was recovered from Cannady and Parker, although the CI explained that they were usually provided with heroin and cocaine without payment up front. Cannady and Parker had in their possession multiple cell phones and a police scanner.
According to evidence presented at trial, Sampson indicated that he wished to purchase a kilogram each of cocaine and heroin. Sampson told the CI that he was calling up his buyers to get as much money as possible to give to the CI for the purchase of the cocaine and heroin. When Sampson met the CI to complete the drug transaction, he was also arrested. Law enforcement seized $10,500 after a search of Sampson and his vehicle.
The defendants each face a mandatory minimum sentence of 10 years in prison and up to life in prison for conspiring to distribute and possess with intent to distribute cocaine and/or heroin, and for attempted possession with intent to distribute cocaine and/or heroin. U.S. District Judge Richard D. Bennett has scheduled sentencing for Sampson, Parker, Cannady and Brown on June 24, June 26, June 29, and June 30, 2015, respectively.
Four co-defendants previously pleaded guilty to their participation in the scheme to distribute five or more kilograms of cocaine: Antoine DeMarr Washington, age 42, of Washington, D.C.; Guy Bordes Agnant, Jr., age 38, of Laurel, Maryland; Tavon Alexander Louis Hopkins, age 38, of Baltimore; and Vincent Cooper, age 47, of Washington, D.C. Donte Eugene Taylor, age 39, of Baltimore also pleaded guilty to his role in the scheme. All are awaiting sentencing.
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.
Baltimore Man Sentenced to Five Years in Prison for Receipt of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Richard Ho Lee, age 33, of Baltimore, today to five years in prison, followed by 11 years of supervised release, for receipt of child pornography. Judge Motz also ordered that upon his release from prison, Lee 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). In addition, Judge Motz entered an order requiring that Lee to forfeit property that was used or intended to be used to commit or to promote the offenses to which Lee has pleaded guilty. The property to be forfeited includes Lee’s home in the 600 block of South Wolf Street in Baltimore, two laptop computers and an external hard drive.
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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to Lee’s plea agreement, on five occasions in September and October of 2011, while Lee and the victim were in Baltimore, Lee purchased sex from T.F. At the time, T.F. was representing to patrons that she was 19 when, in fact, she was 16. On October 31, 2011, Lee paid for a bus ticket for T.F. to travel to Panama City, Florida, where Lee met her. Lee took the victim to a condo he had rented in Panama City. Upon arriving in Panama City, T.F. told Lee that she was only 16 years old. According to the statement of facts, Lee continued to have sex with T.F., and encouraged her to engage in prostitution. From about December 22, 2011 to January 4, 2012, Lee placed at least 15 advertisements for the victim in the “escorts” and “body rubs” sections of an adult website. Lee used his personal credit card to pay for the advertisements. Lee took provocative photographs of T.F. in lingerie and underwear that he had purchased for her and attached some of the photos to the advertisements. Lee rented a second condominium where T.F. had sex with customers and agreed to provide Lee with a percentage of her earnings.
On January 9, 2012, Lee purchased a bus ticket for T.F., which she used to travel from Florida back to Maryland. In January 2012, Lee produced a counterfeit North Dakota state driver’s license for T.F., which indicated that she was 22 years old. In May 2012, Lee took provocative photographs of T.F. inside his residence in Baltimore.
In June 2012, federal agents recovered Lee’s laptop computers and an external hard drive which contained over 600 images of child pornography, including images that depicted minors that are less than twelve years old and portrayed sadistic and masochistic conduct. Further, the laptop contained templates designed to be used for the production of counterfeit state driver’s licenses.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.
Baltimore Felon Exiled to over 24 Years in Prison for Armed Robbery of A Couple at A Glen Burnie HotelRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Rodney Sylvester Wiggins, age 28, of Baltimore, today to 292 months in prison, followed by five years of supervised release, for robbery, brandishing a gun during the robbery and being a felon in possession of a gun and ammunition.
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; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
“Rodney Wiggins did not get the message that we have zero tolerance for gun crime after his previous state armed robbery convictions, and now he will be exiled to federal prison for the next 24 years,” said U.S. Attorney Rod J. Rosenstein. “Hopefully others will get the message before it is too late.”
According to evidence presented at his bench trial and other court documents, on February 2, 2013, a husband and wife checked into a Glen Burnie hotel before embarking on a vacation cruise. Wiggins rode up the same elevator as the couple. Shortly after, Wiggins knocked on their room door claiming to be a maintenance employee. Wiggins pointed a gun at the husband and demanded money, keys, credit cards and cell phones. Wiggins threatened to shoot the couple. The husband handed Wiggins $200 and Wiggins left.
The husband reported the robbery to the hotel’s front desk. A hotel employee saw Wiggins on a security monitor walking down a stairwell and leaving the hotel. The employee called 911, walked outside, saw Wiggins crossing a highway toward another hotel, and gave Wiggin’s location to 911. Minutes later, police arrived, arrested Wiggins and seized a loaded handgun and $210.
Wiggins had previously been convicted of a felony and was prohibited from possessing a gun and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Anne Arundel Police Department and Anne Arundel State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Scott A. Lemmon, who prosecuted the case.
Salisbury Cocaine Dealer Sentenced to 20 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George J. Hazel sentenced Charles Riley, Jr., age 45, of Salisbury, Maryland, today 20 years in prison, followed by 10 years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine and for two counts of possession with intent to distribute cocaine. Judge Hazel enhanced Riley’s sentence based on his previous federal drug conviction and the amount of drugs involved in the conspiracy. Riley was convicted on December 11, 2014, after a three day trial.
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; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; and Wicomico County State’s Attorney Matthew Maciarello.
“Mr. Riley was responsible for trafficking a large amount of cocaine throughout the Salisbury area in a very short amount of time,” said Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “DEA and our law enforcement partners put an end to Mr. Riley's drug trafficking days. A new day has dawned for Mr. Riley - from a jail cell in a federal prison,” added Tuggle.
The government proved at trial that Riley distributed over 15 kilograms of cocaine in less than two months. Riley distributed approximately 10 kilograms of that amount while on pretrial release on state drug charges.
According to trial testimony and his co-defendants’ plea agreements, from July 2013, through August 27, 2013, Riley conspired with David Wayne Nelson, Royce Levi Brown, Charles Rudolph White and others to distribute cocaine. During the investigation, DEA and the Wicomico County Narcotics Task Force initiated wire taps on cellular telephones belonging to the conspirators and executed search warrants at multiple locations, including residences associated with Riley, Brown, Nelson and White. Law enforcement overheard and observed the conspirators engage in drug transactions. During the investigation, law enforcement identified Riley as a source of supply for Brown, who redistributed the cocaine to Nelson. Brown also purchased cocaine from White.
In late July 2013, law enforcement intercepted telephone conversations and text messages in which Brown told Riley that he was delivering – or had already delivered – large cash payments. The payments to Riley were for kilograms of cocaine that Riley had previously “fronted,” or provided on consignment, to Brown. On August 16, 2013, Riley retrieved a package containing almost 500 grams of cocaine from a residence in Salisbury. Riley was seen on videotape retrieving the package and was in possession of the package later that afternoon, when he was arrested on state drug charges. According to evidence presented at trial, following his arrest Riley discussed the package with Brown, who in turn discussed it with other co-conspirators.
According to trial testimony, on August 16, 2013, law enforcement executed a search at Riley’s home and recovered drug paraphernalia including a cocaine press, a scale, money counter, and drug packaging material. Law enforcement also recovered a loaded AK-47 and a loaded 9mm handgun, as well as ammunition.
According to testimony at his trial, early on August 21, 2013, Riley parked a Jeep Grand Cherokee containing between nine and 10 kilograms of cocaine, in Brown’s yard. On August 27, 2013, a search of the vehicle recovered 5.5 kilograms of cocaine. A subsequent search of Brown’s home recovered an additional two kilograms of cocaine that Brown had removed from the Jeep and hidden in a backpack in his bedroom.
Co-conspirators David Wayne Nelson, age 32, of Salisbury, Maryland, was sentenced to 140 months in prison; Royce Levi Brown, age 31, of Mardela Springs, Maryland, was sentenced to four years in prison; and Charles Rudolph White, age 34, of Salisbury, was sentenced to 37 months in prison.
United States Attorney Rod J. Rosenstein commended the DEA and the Wicomico County Narcotics Task Force comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department and the Wicomico County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Peter J. Martinez and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Montgomery County Man Pleads Guilty to A $1.1 Million Fraud Scheme Targeting Victims Found on Online Dating SitesRead the Press Release
Greenbelt, Maryland - Krist Koranteng, age 33, of Burtonsville and Laurel, Maryland, pleaded guilty today to a mail and wire fraud conspiracy, and to money laundering, in connection with a scheme in which the conspirators pretended to be romantically interested in the victims in order to cause the victims to wire, deposit, and mail money to Koranteng’s business. The total losses to the victims, including elderly individuals, as a result of the scheme are more than $1.1 million. Koranteng also pleaded guilty to violating his supervised release for a previous federal drug conviction.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, between September 2012 and February 2014, Koranteng and others executed a scheme in which the conspirators searched online dating websites to initiate romantic relationships with men and women, including several elderly individuals, in order to obtain money from those individuals. Members of the conspiracy used phone calls, emails, and text messages to form romantic relationships with the victims.
According to the plea agreement, to execute the scheme, the conspirators used a number of false stories and promises to convince the victims to give money to the members of the conspiracy, including: stories about investing in fake gold that required payments for shipping and storage; fictitious sick family members who needed money; fake hospital bills; and fake plane trips to visit the victims. Members of the conspiracy convinced the victims to mail checks to Kristsons LLC, a corporation that Koranteng created and controlled, or to wire money into bank accounts held in the name of that corporation, which Koranteng also controlled.
To conceal the scheme from the victims, the conspirators created false documents, including false certificates of origin certifying the existence of gold bars, and false documentation creating the impression that the gold bars were being stored at a safe house for a fee.
Koranteng disbursed the money that he received from the victims by transferring money to other accounts, by withdrawing sums of money, and by writing checks to other individuals. For example, on May 30, 2013, Koranteng transferred by wire $39,039.88 from one of his business’ bank accounts to another account, with the knowledge that the transaction involved the proceeds of a criminal offense.
Koranteng was regularly in communication with his co-conspirators immediately following a victim’s transfer of money into Koranteng’s business bank accounts. For example, on February 20, 2013, a victim transferred $25,000 into Koranteng’s business bank account in Maryland. That same day, Koranteng’s co-conspirator sent an email to Koranteng that included two attachments: a receipt for that victim’s wire transfer; and a purported agreement indicating the victim believed she was investing in gold bars by transferring the money to Koranteng.
In addition to receiving money from the victims during the conspiracy, Koranteng also used a false name to order and send roses to one victim. Shortly thereafter, that victim mailed a check in the amount of $65,000 to Koranteng’s business in Maryland, which Koranteng deposited.
As part of his plea agreement, Koranteng will be required to pay restitution of $1,171,657, which represents the full amount of the victims’ losses.
Koranteng’s participation in the wire and mail fraud conspiracy violated the terms of his supervised release for a 2013 conviction for conspiracy to distribute and possess with intent to distribute heroin.
Koranteng faces a maximum sentence of 20 years in prison for the conspiracy to commit mail and wire fraud; and a maximum of 10 years in prison for money laundering. Koranteng also faces a maximum of three years in prison for violating his federal supervised release. U.S. District Judge Paul W. Grimm has scheduled sentencing for July 2, 2015, at 9:30 a.m. Koranteng remains detained pending sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, U.S. Secret Service and Montgomery County Police Department for their work in the investigation, and thanked the Ohio Attorney General’s Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and David I. Salem, who are prosecuting the case.
Former CEO of Baltimore Behavioral Health Pleads Guilty to Failing to Transfer Payroll Taxes to the IRS and to Stealing from the Employee Pension PlanRead the Press Release
Baltimore, Maryland – The former Chief Executive Officer (CEO) of Baltimore Behavioral Health (BBH), William Kristen Hathaway, age 52, of Ellicott City, Maryland pleaded guilty today to failing to pay to the IRS more than $2.4 million in payroll taxes deducted from the paychecks of BBH employees, and to stealing more than $53,000 from the BBH employee benefit plan.
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 Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
“As chief executive officer of a primary ‘charitable’ organization funded by the government to treat Baltimore drug addicts, William Kristen Hathaway paid lucrative salaries to his family members while cheating the IRS and the employee pension plan,” said U.S. Attorney Rod J. Rosenstein. “This case highlights the need for close oversight of organizations that receive public funds.”
“Hathaway abused his position of trust at Baltimore Behavioral Health,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Through manipulation and theft, Hathaway’s scheme left the American taxpayers and the employees of Baltimore Behavioral Health with the tab for his greed.”
“Mr. Hathaway’s fraudulent actions hurt the livelihood of BBH employees, and he should be held accountable,” stated Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. “My office remains committed to investigating these types of crimes, and we will continue to work diligently with our law enforcement partners to ferret out corrupt individuals.”
According to Hathaway’s plea agreement, he was the CEO for BBH, a tax-exempt organization that provided treatment to people with drug addictions and mental disorders. Hathaway exercised significant control over many aspects of BBH’s business affairs, including managing the company’s financial accounts and overseeing the employee payroll process, which included calculating the withholding of taxes and contributing to and maintaining employee benefit plans. The Board of Directors for BBH was primarily comprised of Hathaway’s relatives, including his wife, his sister, and his mother. Board members were paid a salary.
Hathaway admitted that from March 2009 through December 2011, he regularly deducted payroll taxes from all employees’ wages without forwarding the money to the IRS. For example in the second quarter of 2009, Hathaway caused $344,112.26 in federal payroll taxes to be withheld from employees’ wages, but he elected not to pay that amount over to the IRS. Hathaway admitted withholding a total of $2,495,779 in payroll taxes from March 2009 through December 2011, but instead of forwarding those funds to the IRS, he spent the money on company expenses. For example, during the same period, Hathaway authorized a total of $2,730,752 in salaries to BBH officers, including himself, and contractual payments to an entity owned and operated by his mother and stepfather.
Hathaway also served as a fiduciary for the employee pension plan and was responsible for transferring employee contributions to the retirement plan, as well as any matching company contributions to the custodian of assets for the BBH employee pension plan. Hathaway admitted that from September 2009 through April 2010, Hathaway diverted $53,530.07 in employee contributions to the BBH employee pension plan to pay company expenses, instead of transferring those funds to the custodian of assets.
Hathaway faces a maximum sentence of five years in prison for each of the two counts. U.S. District Judge Richard D. Bennett has scheduled sentencing for June 18, 2015 at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the IRS – CI and the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for their work in the investigation and the Employee Benefits Security Administration for its assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Martin J. Clarke, who is prosecuting the case.
Upper Marlboro CPA Pleads Guilty in Local Corruption SchemeRead the Press Release
Greenbelt, Maryland – George Joseph Grillo, age 64, of Upper Marlboro, Maryland pleaded guilty today to wire fraud and money laundering conspiracy arising from a scheme to make it appear that a minority business enterprise (MBE) performed work on Washington Suburban Sanitary Commission (WSSC) contracts, when in fact, the MBE had not performed the work.
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 Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the plea agreement, in 2009 and 2010 a non-minority-owned water tank painting company (Company 1) obtained three contracts with the WSSC to paint and repair water tanks or equipment: the Falls Road standpipe contract, the Carole Highlands tank contract and the Hampshire Green contract. The combined value of the three contracts was $2,390,177. Each contract required Company 1 to subcontract 28% or 29% of the contract’s value to certified MBEs or small local business enterprises. The required percentage of the contract, which in this case totaled $679,965.20, was to be paid directly to the MBE.
According to his plea agreement, Grillo was a certified public accountant and from 2002 through 2014 was the chief financial officer of a minority business enterprise that operates as a construction company, and a recycling company. Since the 1980’s Grillo had performed accounting work for the owner of Company 1, including preparation of tax returns, payroll for the company, and financial statements.
Grillo admits that from 2010 to 2014, he conspired with others to make it appear that Company 1 met its minority subcontracting requirements on the WSSC contracts.
For example, the owner of Company 1 directed Grillo to send invoices from his minority-owned company indicating that the company had provided materials on two contracts. Grillo created invoices indicating that his company had provided $78,000 worth of materials on the Falls Road contract and $30,000 worth of materials on the Carole Highlands contract. As directed by the owner of Company 1, these invoices were submitted to another minority subcontractor working with Company 1. In fact, neither Grillo’s company, nor the other minority-owned subcontractor had purchased any materials related to these invoices. To make the fake invoices appear authentic, on June 30, 2011, a check was issued to Grillo’s company for $108,000. On July 5, 2011, Grillo issued a check from his company to Company 1 for $106,920.
In 2010, Grillo agreed that his company would serve as the MBE for Company 1 on the Hampshire Green contract. In 2011, although Grillo’s company had not performed any work on the contract, Grillo caused his company to submit an invoice to WSSC for 28% of the Hampshire Green contract, or $57,504.88, to conceal the fact that Company 1 had not met its contractual obligation to subcontract 28% to an MBE. Again, to make it appear that Grillo’s company had performed the work, Company 1 issued a check for $57,504.88 to Grillo’s company, and a short time later, Grillo’s company issued a check back to Company 1 for $58,291.81.
The conspiracy involved between $1 million and $2.5 million of laundered funds.
Grillo faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for June 29, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI and IRS-CI for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney James I. Pearce and Assistant U.S. Attorney Mara Zusman Greenberg, who are prosecuting the case.
Twenty-Four Years in Federal Prison for Forestville Man Convicted for Cocaine Distribution and Illegal Possession of FirearmsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced David Dwayne Rudolph, age 33, of Capitol Heights, Maryland today to 24 years in prison, followed by five years of supervised release, for possession with intent to distribute crack and powder cocaine and marijuana; and for being a felon in possession of a firearm. Judge Chuang also ordered that Rudolph forfeit four firearms and $9,432 in cash seized during the investigation, as well as a 2005 GMC Yukon used by Rudolph to facilitate his drug trafficking.
“Despite four prior state felony convictions, David Dwayne Rudolph was caught with an arsenal of loaded weapons and other tools of the drug trade,” said U.S. Attorney Rod J. Rosenstein. “If we want to continue reducing violent crime, we need to show zero tolerance for armed criminals.”
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, on April 8, 2014, Prince George’s County Police officers executed a search warrant at a Forestville apartment used by Rudolph to store drugs. The search recovered a semi-automatic handgun, 160 grams of crack cocaine, 115 grams of marijuana, and three digital scales and a glass container with cocaine residue.
On June 26, 2014, Prince George’s County Police officers executed an arrest warrant for Rudolph when he was driving his vehicle, a 2005 GMC Yukon. Officers located $1,725 in cash, 39 bags containing a total of 17 grams of crack cocaine, and several cell phones in the car. The next day, law enforcement executed a search warrant at Rudolph’s residence in Forestville. During the search, officers recovered a bullet proof vest, approximately 690 grams of crack cocaine, 55 grams of powder cocaine, 1,205 grams of marijuana, and $7,707 in cash. In addition, law enforcement recovered a .45 caliber pistol loaded with 12 rounds of ammunition, a 9mm pistol loaded with 16 rounds of ammunition, and a .32 caliber pistol loaded with 11 rounds of ammunition. Rudolph had previous felony convictions and was prohibited from possessing a firearm or ammunition.
United States Attorney Rod J. Rosenstein praised the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack and Lindsay Eyler Kaplan, who prosecuted the case.
Pikesville Business Owner Pleads Guilty to Conspiracy to Distribute over $6.6 Million in Contraband CigarettesRead the Press Release
Baltimore, Maryland – Ilgar Rakhamimov, age 41, of Pikesville, Maryland, pleaded guilty today to conspiracy to receive, possess, sell and distribute over $6.6 million in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid.
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; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to their guilty pleas, Elmar Rakhamimov (no relation to Ilgar Rakhamimov) was the leader and organizer of the scheme, and he coordinated with Ilgar Rakhamimov and another conspirator to collect the money to purchase the contraband cigarettes, and to arrange for the storage and transportation of the contraband cigarettes to Brooklyn, New York. Other members of the conspiracy included Zarakh Yelizarov, Salim Yusufov, Adam Azerman, Shamil Novakhov, and Ruslan Ykiew. Elmar Rakhamimov, Ilgar Rakhamimov, and another conspirator 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.
The first transaction occurred at Chesapeake Monuments, a business owned by Ilgar Rakhamimov, on December 11, 2011, when Elmar Rakhamimov and Ilgar Rakhamimov purchased 20 master cases of contraband cigarettes in exchange for $18,000 in cash. After the first transaction, the contraband cigarettes were delivered to and stored at the home of Elmar Rakhamimov in Owings Mills. Prior to each transaction, Elmar Rakhamimov, Ilgar Rakhamimov, and a third co-conspirator discussed the transaction on the phone, and frequently met at Elmar Rakhamimov’s home to discuss the purchase and compile and count the money for the transaction.
The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes). The total tax evaded over the course of the conspiracy was more than $2.5 million.
Following many of the deliveries, the conspirators met at Elmar Rakhamimov’s residence to discuss moving the cigarettes to Brooklyn, New York where the cigarettes were sold at a profit to individuals in New York, who further distributed the contraband cigarettes. The cigarettes were often transported from Maryland to New York by Adam Azerman, who delivered them to Shamil Novakhov, a relative of Ilgar Rakhamimov. Ilgar Rakhamimov brought Novakhov into the conspiracy, and was the primary contact with Novakov throughout the conspiracy. Novakhov’s nephew, Ruslan Ykiew, also would travel from New York to Maryland to obtain contraband cigarettes and transport them to his uncle in New York. Ykiew initially stored the cigarettes in a restaurant he owned. At Novakhov’s request, in 2012 Ykiew rented a warehouse for the storage of the contraband cigarettes. Ilgar Rakhamimov and his co-conspirators paid $30 for each carton of contraband cigarettes, and sold them to buyers in New York for approximately $41 - $45 per carton.
Yelizarov and Elmar Rakhamimov laundered the proceeds of the contraband cigarette sales through an international money laundering operation that wired funds from banks located in Latvia, Cyprus, Estonia, and New York, to a bank in Maryland, disguising the money as legitimate business payments for medical equipment or supplies. From December 27, 2012 through September 5, 2013, Yelizarov and Rakhamimov wired a total of $649,500 through 12 transactions.
Ilgar Rakhamimov faces a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes. As part of his plea agreement, Ilgar Rakhamimov is also required to pay a $50,000 fine. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Ilgar Rakhamimov for June 11, 2015, at 1:00 p.m.
Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland, and his brother, Salim Yusufov, age 43, of Reisterstown, Maryland; Zarakh Yelizarov, age 52, and Adam Azerman, age 59, both of Pikesville; and Shamil Novakhov, age 58, and Ruslan Ykiew, age 39, both of Brooklyn, New York, previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office for its assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
Former Letter Carriers Plead Guilty to A Drug Distribution Conspiracy and to Accepting Bribes to Divert Packages Containing MarijuanaRead the Press Release
Baltimore, Maryland – A former U.S. Postal Service (USPS) letter carrier, Antoinette McDaniels, age 46, of Windsor Mill, Maryland, pleaded guilty today to a bribery and drug conspiracy in which she accepted bribes to divert packages of marijuana sent through the mail and deliver the packages to co-conspirators. Former USPS letter carrier, Hilary Gainey, age 26, of Baltimore, pleaded guilty to the same charges on March 6, 2015.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City Sheriff John Anderson.
“The US Postal Inspection Service is determined to protect Postal employees and the US Mail from criminal misuse and unsafe elements,” said David M. McGinnis, Acting Postal Inspector in Charge of the U.S. Postal Inspection Service - Washington Division. Inspector McGinnis continued, “Postal Inspectors will continue to team with our law enforcement partners to pursue those individuals who would endanger Postal employees and corrupt the US Postal Service to further their criminal enterprises.”
According to the their plea agreements, McDaniels and Gainey conspired with others who paid them bribes in exchange for diverting packages containing marijuana and delivering those packages to the co-conspirators.
Specifically, Gainey and McDaniels admitted that in December 2013 and January 2014, respectively, while they were employed by the U.S. Postal Service as letter carriers, they agreed to divert specific packages sent through the U.S. mail that contained marijuana, and deliver those packages to co-conspirators, in exchange for $100 per parcel. According to their plea agreements, the packages were sent via the U.S. mail from Arizona, California, Florida, and elsewhere, to addresses along McDaniels’ route in Baltimore and Gainey’s route in Columbia, Maryland.
During the course of the conspiracy Gainey and McDaniels delivered approximately 100 packages and 30 packages, respectively, to their co-conspirators, and were paid approximately $100 per delivery. In addition, McDaniels received a total of $1,700 from co-conspirators in the form of “loans” that they never requested to be paid back. Gainey was paid a total of $10,000 by the co-conspirators and McDaniels was paid a total of $4,700 by the co-conspirators. The total amount of marijuana distributed by McDaniels during the course of the conspiracy was between 80 and 100 kilograms. During her participation in the conspiracy, Gainey is responsible for the distribution of between 100 and 400 kilograms of marijuana.
McDaniels and Gainey each face a maximum sentence of five years in prison for the bribery conspiracy and two years in prison for bribery. McDaniel faces a maximum of 20 years in prison and Gainey faces a mandatory five years and up to 40 years in prison, for conspiracy to distribute and possess with intent to distribute marijuana. U.S. District Judge J. Frederick Motz has scheduled sentencing for McDaniels on May 8, 2015, at 10:00 a.m. and for Gainey on June 5, 2015, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, DEA, Maryland State Police, Baltimore City Police Department and Baltimore City Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Jason D. Medinger, who is prosecuting the case.
Springdale Man Pleads Guilty in Counterfeit Credit Card SchemeRead the Press Release
Baltimore, Maryland – Charles A. Adegbesan, age 26, of Springdale, Maryland pleaded guilty today to conspiring to commit access device fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea, on three occasions from July 11 to August 4, 2009, Adegbesan and co-conspirators were captured on surveillance cameras at Giant grocery stores in Salisbury, Maryland, and in Bear and Middletown, Delaware, using access device numbers belonging to 11 victims to make unauthorized purchases totaling $45,477.91.
On May 30, 2010, law enforcement officers executed a search warrant at Adegbesan’s residence and seized three debit cards and a credit card, all of which had been re-encoded with stolen access device numbers.
During the course of the conspiracy from May 2009 to May 2010, Adegbesan and his coconspirators were responsible for losses to over 50 victims totaling $125,687.61.
Adegbesan has agreed to pay restitution of at least $125,687.61.
Adegbesan faces a maximum sentence of five years in prison and a fine of $250,000. U.S. District Judge J. Frederick Motz scheduled his sentencing for June 11, 2015, at 10:30 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.
Serial Armed Bank Robber Exiled to 40 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Raymond Edward Gill, age 59, of Baltimore, today to 40 years in prison followed by five years of supervised release for armed bank robbery and brandishing a firearm during the 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; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to evidence presented during the four day trial, on August 27, 2013, Gill used a handgun to rob the Wells Fargo Bank in Catonsville, Maryland. Gill waited in line for a teller window to become available and then pointed a revolver at the teller, demanding money. The teller opened her cash drawer and provided $22,004. Gill left the bank.
The bank manager followed Gill out to the parking lot, and saw him remove his shirt and walk away. Baltimore County Police investigated the scene and seized the shirt, along with a hat and surgical mask. Gill’s DNA was found on the hat and mask. Bank surveillance videos showed views of Gill’s face, and the robbery itself.
Approximately a week later, Gill was arrested near his home. On October 6, 2013, Gill was overheard on a jail call telling his sister to sell his gun.
Since age 24, Gill has been convicted three times for crimes arising out of the robberies of 12 banks, 10 of which were committed while on parole and supervised release.
United States Attorney Rod J. Rosenstein commended 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 Attorneys Paul E. Budlow and Sean R. Delaney, who prosecuted the case.
Reisterstown Man Sentenced to 12 Years in Prison for Supplying Heroin to an Eastern Shore Drug TraffickerRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Gary Tyrone Kess, age 37, of Reisterstown, Maryland today to 12 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Caroline County Sheriff Randy Bounds; and Caroline County State’s Attorney Jonathan Newell.
According to his plea agreement, in June 2014, Kess supplied heroin to an Eastern Shore drug trafficker. On June 14, 2014, law enforcement observed a co-conspirator complete a transaction in Kess’ minivan. On June 16, 2014, law enforcement intercepted a text message between the co-conspirator and Kess arranging a transaction for 150 grams of heroin. The next day, the co-conspirator was observed briefly meeting with Kess. On June 23, 2014, law enforcement saw Kess meet with the co-conspirator in the parking lot of a fast food restaurant in Severna Park, Maryland. The co-conspirator entered Kess’ minivan and two minutes later exited the vehicle. Shortly thereafter, Kess was stopped for a traffic violation. After a canine alerted for the presence of narcotics, the vehicle was searched and law enforcement recovered 150 grams of heroin and $6,000 packaged in bank envelopes.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore, and the members of the Caroline County Drug Task Force – the Maryland State Police, Caroline County Sheriff’s Office, and the Caroline County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew C. Sullivan and Christopher J. Romano, who prosecuted the case.
Baltimore Man Exiled to over Nine Years in Prison for Robbing Anne Arundel County Fast Food RestaurantRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Terrence Major, age 52, of Baltimore, today to 115 months in prison followed by three years of supervised release for robbing a fast food restaurant, pistol whipping and threatening to infect the cashier with AIDS.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, on October 3, 2013 Major walked into the restaurant in Linthicum Heights, Maryland, wearing a ski mask and a backpack. He pointed a BB gun that resembled a Walther P22 pistol at the cashier and demanded money. Major grabbed the cashier’s shirt collar and necklace, and pulled her to the front counter area. He struck her across the face with the gun. Major grabbed her by the head and pulled her forward, knocking off her glasses.
Major then demanded that the cashier open the register, and said that if she did not comply, she would never see her family again. The cashier replied that she could not open the register without a sale. Major told her that she had three seconds to open the register or he would shoot her. Major then withdrew a syringe from his pocket and squirted liquid on the counter, telling the cashier that the syringe was infected with AIDS and that he would stab her with it.
The cashier opened two cash registers, and Major took about $650.
United States Attorney Rod J. Rosenstein commended the FBI, Anne Arundel County Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Scott A. Lemmon and Bonnie S. Greenberg, who prosecuted the case.
Two Former Correctional Officers Sentenced to Prison for A Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced former correctional officers Kimberly Dennis, age 27, and Antonia Allison, age 29, both of Baltimore, Maryland to 24 months and 20 months in prison, respectively, each followed by two years of supervised release, for a racketeering conspiracy in which they smuggled drugs and other contraband for members of the Black Guerilla Family (BGF) gang inside several correctional facilities. Dennis was sentenced today and Allison was sentenced on March 10, 2015.
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; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building. Tavon White and other BGF leaders and members incarcerated at BCDC were involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (CO’s), who received payments, gifts or a share of the profits.
According to her plea, Kimberly Dennis worked as a Correctional Officer (CO) at Baltimore City Detention Center (BCDC) from 2006 to 2013. She entered into personal and sexual relationships with two inmates who were members of the Black Guerilla Family (“BGF). Dennis smuggled contraband, including marijuana, tobacco and prescription pills, into BCDC on behalf of BGF inmates, who would then sell that contraband to other BCDC inmates who were members of BGF. Allison admitted she also smuggled contraband, including prescription pills and marijuana, into BCDC for eventual distribution by inmates with the BGF. Dennis and Allison were aware of the inmates’ BGF affiliation and assisted in furthering the racketeering enterprise. Dennis and Allison worked with other CO’s to assist in the smuggling and were aware that other co-defendants and correctional officers also smuggled contraband and were involved in sexual relationships.
Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers. Thirty-five defendants pleaded guilty; five defendants were convicted after trial. Three defendants were acquitted and one defendant died.
Inmate Tavon White, a/k/a Bulldog and Tay, age 37, of Baltimore was sentenced to 12 years in prison.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Grandson of Naval Historian Pleads Guilty to Stealing Historical Records Relating to His Grandfather and Is SentencedRead the Press Release
Baltimore, Maryland - Samuel Loring Morison, age 70, of Crofton, Maryland, pleaded guilty today to theft of government property, specifically, historical records related to his grandfather, Rear Admiral Samuel Eliot Morison.
U.S. District Judge William D. Quarles, Jr. also sentenced Morison today to two years’ probation with the conditions that: he not access any library or archives without the permission of his probation officer; and he cooperate with investigators and archivists in identifying any other government property in his possession. In imposing the probationary sentence, Judge Quarles cited Morison’s failing health, his prior military service and his cooperation with investigators.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service (NCIS), Washington Field Office; and Acting Inspector General James Springs of the National Archives and Records Administration (NARA) - Office of Inspector General.
“It's gratifying that NCIS could work with our law enforcement partners to identify and arrest the person responsible for these thefts , and thereby help preserve the illustrious history of the United States Navy,” said NCIS Special Agent in Charge Darrell Gilliard.
James Springs, NARA's Acting Inspector General, stated, “Thefts from our nation’s historical record are an affront to all citizens, regardless of where those records are housed. I appreciate the hard work of the U.S. Attorney’s Office, NCIS, and NARA OIG to insure that this behavior will not be tolerated.”
According to his plea agreement, on April 12, 2014, Morison allegedly offered to sell records relating to Rear Admiral (RADM) Morison’s work during World War II to the owner of a bookstore, who subsequently agreed to take possession of the records, place them on consignment through his shop, and sell them using eBay. On May 12, 2014, special agents with the National Archives and Records Administration Office of Inspector General reviewed the historical records being offered for sale through eBay. The special agents, assisted by the former curator of the Navy Archives determined that the records belonged to the Naval History and Heritage Command's Navy Archive, and were the property of the U.S. government.
On May 21, 2014, a search warrant was executed at Morison’s residence and approximately 34 boxes of government records and property stolen from the Navy Archives were seized. The investigation revealed that Morison was a part-time researcher at the Naval Historical Foundation from March 19, 2010, and had access to the records, known as the “Office Files of RADM Morison Papers.” Morison was never given authority to remove the records from the Navy Archives.
Morison faces a maximum sentence of 10 years in prison for theft of government property. As part of his plea agreement, the government will ask the court to require that Morison be prohibited from visiting libraries and archives without prior approval from his probation officer.
United States Attorney Rod J. Rosenstein praised NCIS and the NARA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James G. Warwick, who prosecuted the case.
Baltimore County Felon Exiled to 20 Years in Prison for Illegally Obtaining Firearms Through Straw PurchasesRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Jeffrey Gregory, age 48, of Sparks, Maryland, today to 20 years in prison, followed by three years of supervised release, in connection with a scheme in which another individual engaged in “straw purchases” to obtain guns for Gregory, a previously convicted felon who was prohibited from possessing firearms.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the facts presented at Gregory’s plea hearing, on three occasions from January 2008 through March 2009, Gregory went with his co-conspirator to have the co-conspirator engage in a “straw purchase” of a firearm on Gregory’s behalf. Gregory was unable to purchase firearms himself because he had a prohibiting criminal conviction. During each visit to the gun stores, the co-conspirator filled out federal and state paperwork, which federal firearms licensed dealers (FFLs) are required by federal law to prepare and maintain as part of each firearm sale.
One of those forms, ATF Form 4473, notifies the buyer that purchasing a firearm on behalf of another person – a straw purchase - is unlawful. In each form, the buyer is asked “[a]re you the actual transferee/buyer of the firearm ....?” The question is followed by a warning in bold print that states: “Warning: You are not the actual buyer if you are acquiring the firearm(s) on behalf of another person.” Finally, the buyer’s certification explicitly states that falsely answering “yes” to the actual buyer question is a crime punishable as a felony.
On each occasion that Gregory and the co-conspirator went to gun stores, Gregory provided the co-conspirator with money, told the co-conspirator what firearm she should obtain, and instructed the co-conspirator to represent herself as the true buyer, which the co-conspirator did. For example, Gregory admitted that on July 8, 2008, the co-conspirator made false statements on a Form 4473 in order to purchase a Ruger .45 caliber firearm for Jeffrey Gregory from an FFL in Baltimore County, Maryland. On July 17, 2008, the co-conspirator picked up the firearm from the dealer and gave the gun to Gregory.
On January 4, 2008, the co-conspirator made false statements on a Form 4473 in order to acquire a Springfield .40 caliber firearm, for Jeffrey Gregory. On January 11, 2008, the co-conspirator picked up the firearm and gave it to Gregory. According to court documents, that .40 caliber gun was used to commit a murder in Baltimore County.
Gregory was previously sentenced to 93 months in federal prison for unrelated charges: possession of a firearm by a convicted felon; and possession of a firearm in furtherance of drug trafficking. In that case, Gregory brandished a handgun during a fight at a York Road restaurant. The resulting investigation recovered the gun used during the fight, as well as another gun and drugs from Gregory’s home.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Michael C. Hanlon and Special Assistant U.S. Attorney Piper F. McKeithen, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.
Pikesville Man Pleads Guilty to Conspiracy to Distribute over $6.6 Million in Contraband CigarettesRead the Press Release
Baltimore, Maryland – Zarakh Yelizarov, age 52, of Pikesville, Maryland, pleaded guilty today to a conspiracy to distribute over $6.6 million in contraband cigarettes. Yelizarov’s role in the scheme was to help launder the proceeds of the conspiracy.
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; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to his plea agreement, Yelizarov’s cousin, Elmar Rakhamimov, conspired with 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.
According to his plea agreement, Yelizarov joined the conspiracy in October 2012. Prior to that time, the first nine contraband cigarette transactions were for cash, and the number of cigarettes and amount of cash increased. Yelizarov and Rakhamimov laundered the proceeds of the contraband cigarette sales through an international money laundering operation that wired funds from banks located in Latvia, Cyprus, Estonia, and New York, to a bank in Maryland, disguising the money as legitimate business payments for medical equipment or supplies. During the course of the scheme, Yelizarov used his mobile phone to call his contacts and to discuss the amount and the timing of the wire transfers into the Maryland account. Many of these calls were captured on a court ordered wiretap.
From December 27, 2012 through September 5, 2013, Yelizarov and Rakhamimov wired a total of $649,500 through 12 transactions. Yelizarov and Rakhamimov received a fee of approximately 8% for the money laundering transactions, totaling $56,000.
Rakhamimov used his residence and his restaurant, Europe, to conduct the illegal transactions of contraband cigarettes and the money laundering.
Yelizarov faces a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for July 14, 2015, at 1:00 p.m.
Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland; his brother, Salim Yusufov, age 43, of Reisterstown, Maryland; Adam Azerman, age 59, of Pikesville; and Shamil Novakhov, age 58, and Ruslan Ykiew, age 39, both of Brooklyn, New York, previously pleaded guilty to 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.
Leader of Counterfeit Credit Card Ring Sentenced to 9 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Michael Crew, age 54, of Owings Mills, Maryland, today to nine years in prison followed by three years of supervised release, after Crew pleaded guilty to bank fraud conspiracy and aggravated identity theft, arising from his 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 Crew pay restitution of $126,318.99, the amount of the actual loss to victims.
The plea and sentence were 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; Special Agent in Charge William Winter 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, Acting Superintendent of the Maryland State Police.
According to his plea agreement, 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, co-defendants 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. The counterfeit access devices were then used to make unauthorized purchases of goods and services.
Generally the gift cards used to manufacture the counterfeit credit cards were shoplifted from stores. For example, on June 13, 2012, Crew was arrested when he attempted to shoplift gift cards at the Shoppers Food Warehouse in Howard County. Crew received a citation and was released.
Crew generally did not use the counterfeit credit cards himself, but either sold them or had others use them. Sometimes he told them what to purchase, such as gift cards, electronics and luxury linens which he resold.
On March 12, 2013, a search warrant was executed at Crew’s residence. Dozens of counterfeit gift cards were recovered bearing stolen credit card numbers and, in some cases, the names of co-defendants; numerous receipts from items purchased with counterfeit cards, 122 blank plastic cards, computers, cell phones, notes with credit card account information, and a notebook containing credit card numbers.
During the conspiracy, which continued through the arrest of the final defendants on June 7, 2014, Crew 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.
To date, five 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 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. Attorneys Tamera L. Fine, who prosecuted the case.
Laurel Man Admits to Robbery, Abduction and Sexual Assault of ProstitutesRead the Press Release
Greenbelt, Maryland – Ajibola Erogbogbo, age 19, of Laurel, Maryland, pleaded guilty today to robbery.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; Chief Richard McLaughlin of the Laurel Police Department; Anne Arundel County State’s Attorney Wes Adams; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, Erogbogbo was a security guard at Six Flags amusement park in Largo, Maryland, and a student at Anne Arundel Community College.
On January 9, 2014, a prostitute posted an ad for sex on the internet and Erogbogbo arranged a “date” at a hotel in Linthicum Heights, Maryland. Erogbogbo arrived wearing a vest that read “POLICE,” and had a metallic badge in one hand and a gun in the other. He told the prostitute that she was under arrest and instructed her to write her name and personal information on a yellow notepad he brought with him. Erogbogbo then handcuffed the woman, took her driver’s license and asked about her involvement in prostitution. Erogbogbo removed the handcuffs and demanded money. The woman responded that she did not have any cash. While Erogbogbo searched her belongings and the hotel room, the woman secretly sent a text message to another prostitute working in the same hotel, who knocked on the hotel door.
Erogbogbo answered the door, took out his gun and pointed it at the second prostitute. He handcuffed both women. When he couldn’t find any money, Erogbogbo ordered the second prostitute to write down her phone number and leave the hotel, leaving the initial prostitute with him.
Erogbogbo took the prostitute out to the side entrance of the hotel, telling her that she was going to jail. As they headed towards his parked vehicle, the prostitute broke free and ran back to the front desk yelling for help. The front desk attendant called 911. Erogbogbo fled in his vehicle. Anne Arundel County Police responded and recovered surveillance video footage from the hotel showing Erogbogbo arriving at the hotel, entering the lobby wearing a vest and attempting to take the prostitute away from the hotel.
On January 11, 2014, Erogbogbo again phoned the prostitute after she posted a new commercial sex ad and attempted to arrange another “date.” Based on the information provided by the prostitute, members of the Maryland Child Exploitation Task Force (MCETF) arrived in the area of the hotel and set up surveillance. Erogbogbo, however, never appeared.
A third prostitute told MCETF members that she had arranged a “date” with Erogbogbo who called her after she had posted an online prostitution ad. A fourth prostitute hid in the closet as a precaution. When Erogbogbo arrived in the hotel room, he identified himself as a police officer and placed the prostitute in handcuffs. Erogbogbo was wearing a vest that read “POLICE”, a law enforcement belt, a holstered gun on the right side and a second gun in a left-side drop holster. Erogbogbo also showed her a metallic badge. When the fourth prostitute emerged from the closet, Erogbogbo demanded that they give him their prostitution money. The prostitutes gave Erogbogbo a total of $1,400. Erogbogbo returned $600 to the fourth prostitute and took $800 from the third prostitute. Erogbogbo wrote a phone number on a piece of yellow paper, told the victims to call him if they needed future assistance from the police, removed the handcuffs and left.
On February 19, 2014, MCETF personnel met another prostitute who said that she too had been recently robbed by Erogbogbo. Erogbogbo had made a “date” with this fifth prostitute from her online post. When he arrived at her hotel room, he said that he was a police officer in the “Human Trafficking Unit.” He showed a badge, and wore a ballistic vest with a “POLICE” patch, and carried a radio that he periodically spoke into. He also carried a handcuff pouch, handcuffs and a gun in a leather holster. After asking the woman several questions regarding her involvement in prostitution, Erogbogbo said that the “only way” to avoid arrest was to have sex with him. The woman at first refused. When she would not take off her clothing, Erogbogbo threatened to put handcuffs on her. He began having sex with her, but stopped when she became unresponsive.
The next day, the prostitute posted a new online prostitution ad under the direction of MCETF. Erogbogbo contacted her to make a “date.” Although she had not told Erogbogbo her exact location, Erogbogbo soon walked into the hotel lobby en route to the “date.” When Erogbogbo encountered the Laurel City Police in the lobby, he attempted to flee. He was stopped by the police as he was attempting to re-enter his vehicle parked outside of the hotel. Erogbogbo was wearing a gold Six Flags Loss Prevention badge and a Smith and Wesson replica BB gun, holstered on his belt.
Police searched Erogbogbo’s residence and vehicle and recovered handcuffs, radios, pepper spray, badge holders and a yellow notepad that contained names, driver’s license numbers, phone numbers and addresses of women, including the prostitutes previously described.
Erogbogbo faces a maximum sentence of 20 years in prison and $250,000 fine. U.S. District Judge Theodore D. Chuang scheduled sentencing for June 19, 2015 at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Anne Arundel County and Prince George’s County Police Departments, Laurel Police Department, Anne Arundel County and Prince George’s County State’s Attorney’s Offices and Maryland Child Exploitation Task Force for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Daniel C. Gardner and James A. Crowell IV, who are prosecuting the case.
Gaithersburg Man Sentenced to over 4 Years in Prison in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Phong Dinh Tran, a/k/a Randy Tran, age 40, of Gaithersburg, Maryland, today to 51 months in prison followed by three years of supervised release for conspiring to commit bank fraud arising from a scheme to use a straw purchaser to buy a liquor store. Judge Quarles also ordered Tran to pay restitution of $950,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; 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, Tran created R&K Real Estate Investment, Inc. to buy Potomac Wine & Spirits, a liquor store in Hagerstown, Maryland. Tran was the majority and controlling owner of R& K, and another individual owned a minority interest. In May 2006, Tran and the minority shareholder signed agreements to buy the liquor store for $899,000 and the real estate that the store occupied for $400,000.
Tran sought Joon Park, a principal of Jade Capital & Investments, to broker a loan for the store’s purchase. Tran and Park discussed obtaining a loan at PNC Bank that was guaranteed by the U.S. Small Business Administration (SBA). Because Tran had significant debt from the purchase of residential properties, Park advised that Tran would not likely be approved for an SBA guaranteed loan.
Tran disclosed to Park that he could use a straw buyer for the loan. Tran and Park agreed that they would falsely represent to PNC that the straw buyer would own and operate the liquor store. Tran asked the straw buyer to apply for the loan and promised that he, Tran, would pay all the bills for the store and make the loan payments. At the settlement for the sale of the liquor store on September 29, 2006, the straw purchaser falsely represented to PNC that he was the president of R&K. The funds needed to close the transaction were provided by Tran, not the straw purchaser. PNC funded a loan of $950,000.
After the closing, Tran ran the liquor store. On January 22, 2007 Tran sold a 50% stake in the store to another individual for $380,000. During the sale, Tran represented to the individual that he owned 100% of the store. In 2007, Tran stopped making loan payments to PNC and the loan went into default.
In a separate case, Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 44, of Falls Church, Virginia, previously pleaded guilty to his role in a bank fraud conspiracy arising from a scheme to fraudulently obtain numerous business loans guaranteed by the SBA, with resulting losses of over $100 million. Park submitted false SBA loan applications on behalf of his clients from 2003 to 2011. Judge Quarles sentenced Park on June 20, 2013 to 15 years in prison and ordered Park to pay a money judgment of $91,449,700.
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 SBA-OIG, FBI and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise and Sean Delaney, who prosecuted the case.
Credit Union Employee Sentenced for Stealing $400,000Read the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Maxime Maiga, age 37, of Montgomery Village, Maryland, today to two years and a day followed by two years of supervised release for wire fraud and aggravated identity theft. Judge Grimm also entered an order that Maiga forfeit $11,000 and pay $400,000 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office.
According to his plea, Maiga worked as a communication center associate at a Washington, D.C. credit union that provides financial services to individuals and their families associated with the World Bank Group and the International Monetary Fund, and offers consumer banking services.
On January 8, 2013, Maiga fraudulently accessed and viewed identification documents and financial information of two account members of the credit union who were foreign nationals. A few days later, Maiga again fraudulently accessed the victim members’ identification documents and printed one of the victim’s passport and membership eligibility form. On January 22, 2013, Maiga sent the identity documents to a co-conspirator, who faxed a letter to the credit union, bearing a forged signature of the victim and an altered copy of the victim’s diplomatic passport. The letter requested the password for the victims’ credit union online banking account. Maiga and his co-conspirators used the password for online access to change the victims’ email address and phone number.
On February 12, 2013, Maiga fraudulently asked another credit union employee to access and print one of the victim’s tax withholding forms and the victims’ signature cards. The requested documentation was provided to Maiga. The next day, he and his co-conspirators fraudulently requested monthly automatic recurrent wire transfers of $200,000 each from the victims’ credit union account to a co-conspirator’s account. On February 14, 2013, a conspirator used the documentation Maiga had fraudulently obtained to pose as one of the victims and obtain $200,000 from the victims’ account. An additional $200,000 was transferred on March 1, 2013 as a result of the fraudulent request for automatic recurrent transfers.
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 for its work in the investigation and thanked Assistant U.S. Attorney Kelly O. Hayes, who prosecuted the case.
Co-Defendants in Marriage Fraud Scheme Plead GuiltyRead the Press Release
Baltimore, Maryland – Mucahid Calisir, age 29, a Turkish citizen who had been residing in Millsboro, Delaware; and Darya Tarasova, age 26, a Russian citizen who had been residing in Cambridge, Maryland, pleaded guilty to marriage fraud and passport fraud; and co-defendant Evgeniya Yarina, age 27, a Russian citizen currently residing in New York, pleaded guilty to conspiracy to commit marriage fraud on Friday, March 6, 2015, in connection with a scheme to obtain beneficial immigration status leading to U.S. citizenship. U.S. District Judge James K. Bredar sentenced Calisir to two months in prison followed by three years of supervised release.
Co-defendant Aleksandr Mavrin, age 27, a Russian citizen who had been residing in Frankford, Delaware, previously pleaded guilty to conspiracy to commit marriage fraud and was sentenced on March 2, 2015 to time served followed by one year of supervised release.
Calisir, Mavrin and Tarasova consented to deportation and will be removed from the United States. As a result of her conviction, Yarina may be subject to deportation.
The guilty pleas and sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Field Office Director Dorothy Herrera-Niles of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO); Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS), Baltimore District Office.
According to their plea agreements, Calisir entered the United States in 2008, Yarina and Mavrin entered the United States in 2009, and Tarasova entered the United States in 2010. Calisir Tarasova, Yarina, and Mavrin conspired to enter into marriages with U.S. citizens solely for the purpose of obtaining immigration status to which they would not otherwise be entitled. Calisir and his co-defendants assisted each other in locating and identifying United States citizens with whom they could enter into these fraudulent marriages, generally in exchange for some economic benefit to the United States citizen.
For example, on December 30, 2010, Calisir entered into a fraudulent marriage with S.O., a United States citizen. On April 11, 2011, co-defendant Tarasova married E.C., a United States citizen and co-defendant Mavrin married K.M., a United States citizen, on September 26, 2012, after being introduced to K.M. by Calisir. Yarina married H.P., a United States citizen on November 30, 2012. Following each of their marriages, the defendants submitted forms and applications to DHS, Immigration and Customs Enforcement, in which each fraudulently represented that their marriage to the U.S. citizen was a legitimate marriage when it was actually entered into so that the defendants each could receive beneficial immigration status.
In June 2013, Tarasova gave birth to a baby girl. In October 2013 Tarasova submitted an application for a United States passport for the baby, which contained a false statement that E.C. was the father of the child, when in reality Calisir was the father of the baby. Calisir assisted Tarasova in the submission of documents in support of the baby’s U.S. passport application.
Judge Bredar scheduled sentencing for Tarasova on June 1, 2015 at 10:30 a.m., and for Yarina on May 27, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended ICE ERO, HSI-Baltimore, the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service and U.S. Citizenship and Immigration Services for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
Bookkeeper Pleads Guilty to Stealing over $179,000 from Her EmployerRead the Press Release
Greenbelt, Maryland – Jessica Lee Warner, age 39, of Baltimore, pleaded guilty today to wire fraud and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea, Warner was the bookkeeper for a company located in Montgomery County, responsible for electronically submitting employee payroll information to a payroll processing service. From 2007 to December 2012, Warner fraudulently used her position as a bookkeeper to increase her salary, and write checks from her employer’s bank accounts to herself and others, forging the signature of an individual who had signatory authority on the company’s checking accounts. Warner deposited the forged checks into her own bank account.
Warner has agreed to pay restitution of at least $179,647.16, the amount she stole from her employer.
Warner faces a maximum sentence of 20 years in prison and a $250,000 fine for wire fraud, and a mandatory minimum of two years in prison consecutive to any other sentence for aggravated identity theft. U.S. District Judge Paul W. Grimm scheduled her sentencing for August 31, 2015, at 9:30 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and Leah Jo Bressack, who are prosecuting the case.
Rockville Man Pleads Guilty to “Sextortion”Read the Press Release
Baltimore, Maryland – Marc Joseph Punzalan, age 20, of Rockville, Maryland, pleaded guilty today to production of child pornography in connection with a scheme in which he met young girls through social media and internet chat rooms and convinced them to send him sexually explicit photographs of themselves. When the girls told him they no longer wanted to send the increasingly graphic images he requested, Punzalan threatened to post the images online and/or tell the girls’ friends and families.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to Punzalan’s plea agreement, from January 2012 through January 2014, he contacted four minor female victims, between 12 and 16 years of age, and persuaded them to send him sexually explicit photographs of themselves, using cell phone applications, and internet social media and chat messaging sites. Punzalan assumed the identity of at least one minor victim and used that victim’s identity to convince other minor females to send him sexually explicit images.
Each of the victims informed Punzalan at different points that she no longer wished to send him sexually explicit images. Punzalan responded to each girl by threatening to send the images to the victim’s family and friends or publicly post the images if the victim did not send him more images depicting increasingly graphic sexual conduct. Punzalan created social media accounts in the victims’ names and posted images he had received of the victims on those accounts.
As part of his plea agreement, Punzalan 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).
Punzalan and the government have agreed that if the Court accepts the plea agreement Punzalan will be sentenced to 15 years in prison followed by up to lifetime supervised release. U.S. District Judge J. Frederick Motz has scheduled sentencing for July 1, 2015 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Pizza Shop Owner Pleads Guilty to Charges of Unlawfully Exporting Firearms and Accessories to PakistanRead the Press Release
Baltimore, Maryland - Kamran Ashfaq Malik, age 35, of Upper Marlboro, Maryland pleaded guilty today to unlawfully exporting semi-automatic rifles, parts and accessories to Pakistan. Co-defendant Waleed Aftab, age 22, also of Upper Marlboro, pleaded guilty to the same charge on December 19, 2014.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Malik owned and operated a pizza shop in Upper Marlboro, and maintained a second residence in Lahore, Pakistan. Aftab worked at the pizza shop. According to Malik’s plea agreement, between September and October 2012, Malik purchased, or caused to be purchased, approximately 48 AR-15 100 round dual drum magazines from various firearms and related accessories dealers. In order to take advantage of the lack of magazine capacity restrictions in Virginia, some of the purchases were made by Malik under the name, Virginia address and bank account of an associate. In other instances Malik provided a false commercial shipping address in Springfield, Virginia.
Between October and November 2012, Malik shipped or caused Aftab and others to ship, several illegal shipments of firearms and firearms parts and accessories to Lahore, Pakistan. In order to conceal the unlawful export of defense items, which are controlled for export, Malik placed false return addresses and names on the packages, as well as falsely identified the contents of the packages, and falsely declared the contents to be of nominal value. Malik directed Aftab to do the same.
On November 28, 2012, during a routine airport security screening in Dubai, United Arab Emirates, one of the packages was found to contain firearm parts and accessories that are prohibited from export to Pakistan without an export license, including: two lower receivers of a semi-automatic rifle, two rifle bolt carriers, rounds of magazines, an optical gun sight and an LED rail mounted flashlight with laser. The defendants never obtained the required licenses to export such items.
According to Aftab’s statement of facts, on December 1, 2012, just prior to boarding a flight at JFK International Airport in New York destined for Pakistan, Aftab was found to be in possession of a receipt reflecting the sale of six AR- 15 style semi-automatic rifle magazines that Malik purchased the previous September.
On March 7, 2013, after arriving at JFK Airport from Pakistan, Malik’s cell phone and laptop computer were subjected to a border search. Malik’s cell phone contained pictures of AR-15 style semi-automatic rifles and magazines, in some cases in the hands of individuals. The pictures were taken at locations near his residences in Pakistan and Maryland. A text message was also found on Malik’s phone that referenced the tracking number of the shipment detained in Dubai.
On March 6, 2014, Malik dropped off a package for shipment to Pakistan. Malik provided a false address and falsely identified the contents as “screw holders and metal screws.” Immigration and Customs Enforcement agents intercepted the package, which was found to contain 28 .223 caliber bolt carriers. Those items are regulated for export. Malik never sought nor obtained a valid export license for those items.
Malik received numerous export warnings regarding the export restrictions on firearms and related accessories. A notice of these export restrictions were contained on the firearms transaction records for various weapons purchased by Malik between 2012 and 2013, including the purchase of the Colt M-4 whose lower receiver was confiscated in Dubai. In addition, the shipping invoice receipts for the various shipments to Pakistan completed by Malik, or Aftab acting at his direction, contained an export notice and signature block for the shipper certifying that the identifying information for the package was accurate and that it was being shipped in accordance with U.S. export regulations.
Malik and Aftab each face a maximum penalty of 10 years in prison for the unlawful smuggling of goods from the United States. U.S. District Judge J. Frederick Motz has scheduled sentencing for Malik on June 26, 2015, at 9:30 a.m., and for Aftab on March 20, 2015, at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised Baltimore HSI for their work in the investigation and thanked Assistant United States Attorney Christine Manuelian, who is prosecuting the case.
Car Repair Shop Owner and His Son Sentenced for Drug Trafficking and Commercial BurglariesRead the Press Release
Baltimore, Maryland – U.S District Judge J. Frederick Motz sentenced David Paschall, age 56, of Catonsville, Maryland, today to 90 month in prison followed by three years of supervised release for conspiring to distribute oxycodone and conspiring to commit bank burglary. Judge Motz also entered an order that Paschall forfeit $500,000, his ownership interest in Paschall’s Auto Body Shop and his residence, three firearms and his vehicle.
Judge Motz sentenced David Paschall’s son, Chad Paschall, age 30, of Baltimore, on February 27, 2015 to 37 months in prison for the drug and burglar conspiracies, and entered an order that Chad Paschall forfeit $250,000.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Howard County Police Chief Gary Gardner; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Tim Altomare; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Elton Malone, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“The sentence today of David Paschall and his son Chad should send a strong message to other individuals engaged in the illicit distribution of drugs, including prescription drugs,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “Prescription drug trafficking in the Baltimore area is a growing problem and has led to heroin addiction in the area. DEA, along with our federal, state and local partners, intends to aggressively combat this problem. We conducted a very complex investigation and due to the diligent work of all involved, the leaders of this drug trafficking organization will now spend time in a federal prison far from home.”
David Paschall operated Paschall’s Auto Body Shop, formerly located at 801 Desoto Road in Baltimore. According to their plea agreements, it was widely known that the car shop served as a marketplace for an assortment of illegal narcotics, including oxycodone, cocaine and heroin. David Paschall used more than five drug “brokers” to buy drugs almost every day at his shop which he would then either consume or sell for profit. As a leader in the drug conspiracy, he supervised others in the distribution of the drugs. In order to protect the drug conspiracy, David Paschall maintained many guns at the shop and sometimes carried a gun. David Paschall admitted that he agreed to distribute oxycodone, cocaine and heroin from no later than 2010 to July 2013.
Chad Paschall was at the shop most every day, knew that the shop operated as a hub for drug sales and helped his father in brokering drug sales.
The defendants also admitted to committing commercial burglaries in Maryland, Virginia, West Virginia, and Pennsylvania. The defendants conspired to steal cash, money orders, stamps, silver bars, jewelry, cigarettes, lottery tickets, prescription drugs, food, beverages, safes, laptop computers, cell phones, electronics, vehicles and other valuable items from gas stations, convenience stores, banks, credit unions and other commercial establishments. The conspirators often stole or attempted to steal cash from ATMs.
The conspirators usually cut power lines, telephone lines, cables and other wires before entering a business. They used vise grips, sledgehammers, chopsaws, grinders and blow torches to enter the business, and then often waited – for several minutes or sometimes up to several hours – before ransacking the business of its valuable items. David Paschall admitted that he committed, or attempted to commit, dozens of commercial burglaries with one or more coconspirators. For example, David and Chad Paschall used a forklift at a salvage or junk yard located on Hawkins Point Road in Baltimore to pile several junk cars next to a rear upstairs balcony. They climbed up the cars and broke into the office off the balcony. They used the forklift to transport a safe from the office to the ground, where it was broken open and approximately $48,000 was stolen.
To date, 16 defendants charged in the drug and burglary conspiracies have pleaded guilty to their participation in the criminal activities. Fourteen of these defendants have been sentenced, with David Paschall receiving the longest sentence thus far.
United States Attorney Rod J. Rosenstein commended the DEA, Howard County Police Department, Baltimore County Police Department; Anne Arundel County Department, ATF, Department of Health and Human Services - Office of Inspector General; Coast Guard Investigative Service and Baltimore Police Department for their work in the investigation. Mr. Rosenstein also praised the many local and state agencies in Virginia, West Virginia and Pennsylvania for their assistance in the investigation.
Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Andrea L. Smith, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Cambridge Cocaine Dealer Sentenced to 7 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Shannon Banks, age 42, of Cambridge, Maryland today to seven years in prison followed by three years of supervised release for being a felon in possession of three firearms and ammunition; and for possession with the intent to distribute cocaine. Judge Hollander also ordered Banks to forfeit three guns and $389,189 in cash seized from his home and storage unit, nine televisions, jewelry, a Lincoln passenger car, an International “party bus,” $5,280 from a bank account, and his residence on Moose Lodge Road as constituting or being derived from the proceeds of his drug trafficking.
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; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Dorchester County Sheriff James W. Phillips, Jr.; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Dorchester County State’s Attorney William Jones.
According to his plea agreement, on April 11, 2014, law enforcement executed a search warrant at Banks’ home in the 5400 block of Moose Lodge Road in Cambridge. During the search, agents seized: 233.7 grams of cocaine; $216,169 in cash; a loaded .45 caliber semi-automatic handgun with an obliterated serial number; a 12 gauge shotgun; and a hydraulic kilogram press. On April 15, 2014, agents searched a storage unit belonging to Banks and recovered $173,020, a loaded .22 caliber handgun, and another hydraulic kilogram press. Banks admitted that the cash recovered from his home and storage unit was the proceeds of drug trafficking.
United States Attorney Rod J. Rosenstein praised the DEA, FBI, HSI-Baltimore, Dorchester County Narcotics Task Force, Dorchester County State’s Attorney’s Office, the Maryland State Police, Somerset County Narcotics Task Force, the Worcester County Criminal Enforcement Team, and the Wicomico County Narcotics Task Force for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Seema Mittal and Evan T. Shea, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Baltimore Heroin Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Enzo Blanks, a/k/a “Zo,” age 29, of Baltimore, to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin. Judge Hollander also ordered Blanks to forfeit a vehicle and jewelry.
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 Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, Blanks was intercepted in text messages, telephone calls and other recordings arranging heroin transactions. Through the investigation, law enforcement determined that, on average, individuals traveled from as far away as western Maryland to meet with Blanks every three days to purchase approximately 500 heroin pills at a time. On September 10, 2013, Baltimore Police officers performed a car stop of a vehicle being driven by Blanks. Blanks was found to be in possession of 444 heroin gel caps. During the arrest, Blanks consented to the search of his girlfriend’s apartment on West Madison Street, where the officers discovered more heroin, cutting agents, sifters, scales and a capping machine. As a leader in the conspiracy, Blanks was responsible for the distribution of between one and three kilograms of heroin over the course of the conspiracy.
A total of 12 defendants, including Blanks, have been convicted for the heroin distribution conspiracy.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore Police Department and Baltimore County Police Department for their work in the investigation and thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Gaithersburg Woman Sentenced for Submitting Four Fraudulent Claims for Unemployment Insurance BenefitsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Rebecca Lynn Biglow, age 42, of Gaithersburg, Maryland today to 44 months in prison followed by four years and 10 months of supervised release for mail fraud and aggravated identity theft in connection with a fraud scheme to obtain unemployment insurance benefits, and for violating terms of her supervised release imposed after she had served time in prison for a previous federal conviction for bank fraud. Judge Chasanow also entered an order that Biglow pay forfeiture and restitution of $71,022, the total amount paid by DLLR on the four fraudulent claims.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Gordon Cooley, Commissioner of the Maryland Department of Labor, Licensing and Regulation’s (DLLR) Division of Financial Regulation.
"Rebecca Biglow filed fraudulent unemployment insurance claims while she was already under court supervision for a previous crime," said U.S. Attorney Rod J. Rosenstein.
According to her plea agreement, on September 9, 2009, Biglow submitted an unemployment insurance benefits claim to DLLR, claiming that she had worked from April 2008 to September 2009 for a home cleaning service company, earning wages totaling $23,390. In fact, Biglow was incarcerated from October 2007 to August 2009, and had not worked for the company. From September 2009 to January 2011, DLLR paid Biglow a total of $17,272 on this claim.
On May 20, 2011, Biglow submitted another claim for unemployment insurance benefits, stating that she had worked for an individual at a business where she earned wages totaling $36,042.18. In fact, Biglow never worked for this individual. From May 2011 to December 2012, DLLR paid Biglow a total of $29,670 on this second claim.
On May 31, 2013, Biglow submitted a third unemployment benefits claim using the name, social security number and date of birth of another individual. Biglow falsely claimed that this individual had worked from June 2012 to May 2013 for a child care center, earning $54,370 in wages. From June to December 2013, DLLR paid a total of $13,330 on this claim.
Finally, on October 25, 2013, Biglow submitted a fourth unemployment benefits claim falsely stating that she had worked at a candle business, earning $36,798 in wages from February to October 2013. From October 2013 to May 2014, DLLR paid Biglow $10,750 on this claim.
Biglow was on supervised release during the time she submitted these false claims, after having served time in prison for a previous bank fraud scheme.
United States Attorney Rod J. Rosenstein praised the Department of Labor – OIG and DLLR for their work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.