District of Maryland

Greenbelt, Maryland – Rebecca Lynn Biglow, age 42, of Gaithersburg, Maryland pleaded guilty today to mail fraud and aggravated identity theft in connection with a fraud scheme to obtain $71,022 in unemployment insurance benefits. Biglow also pleaded guilty to violating terms of her supervised release imposed after she had served time in prison for a previous federal conviction for bank fraud.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Bill Jones, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Mark Kaufman, 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, where she earned 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 reality, 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, where the individual had earned $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 agrees to pay forfeiture and restitution of $71,022, the total amount paid by DLLR on the four fraudulent claims.

Bigelow was on supervised release during the time she submitted these false claims, after having served time in prison for a previous bank fraud scheme.

Biglow faces a maximum sentence of 20 years in prison for mail fraud; a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft; and three years in prison for violating her supervised release, less any term of imprisonment imposed upon revocation of supervised release. U.S. District Judge Deborah K. Chasanow scheduled sentencing for March 2, 2015.

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 is prosecuting the case.

Investigation Exposed Woman Who Fraudulently Collected $250,000 in Federal Benefits; Received Food Stamps While Taking Postal Disability Payments

 

Baltimore, Maryland – Colette Lee, age 49, of Baltimore, pleaded guilty today to making false statements to obtain federal employee compensation benefits.

The guilty plea 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 her medical history questionnaire 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.

Lee has agreed to pay restitution of $244,912.65, the loss suffered by the Postal Service and the Department of Agriculture from May 2007 through January 2014 by Lee’s false statements. Lee faces a maximum sentence of five years in prison. U.S. District Judge Marvin J. Garbis scheduled sentencing for February 2, 2015 at 10:00 a.m.

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 is prosecuting the case.

Attempted to Perform a Traffic Stop and Called Police When the Driver Ran Away

 

Greenbelt, Maryland – Joseph Lewis, age 53, of Forestville, Maryland pleaded guilty today to impersonating a federal officer.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Chief of Police Robert D. MacLean of the U.S. Park Police; and Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service, Washington Field Office.

According to his plea agreement, on December 19, 2012, Lewis made a 911 call to request help after he had attempted to initiate a traffic stop on Suitland Parkway, and the driver had run away. Lewis identified himself as an off duty Department of Defense (DOD) Police officer to the U.S. Park Police dispatcher. When Park Police officers arrived at the scene, Lewis displayed DOD police credentials and had a police badge hanging on a chain around his neck. Lewis also had a semi-automatic handgun in a holster on his waist and handcuffs. Lewis was operating a brown Chevrolet Suburban with law enforcement registration, which was equipped with flashing red and blue lights on the front, sides and rear of the vehicle.

In fact, Lewis was not a DOD police officer and was not authorized to carry police credentials, a police badge or a firearm. The Suburban was Lewis’ personal vehicle. A search warrant executed at Lewis’ home on January 9, 2013, recovered numerous items of police gear, including three handguns, ammunition, handcuffs, mace, batons, stun guns, DOD police officer credentials and law enforcement officer badges and patches.

Lewis faces a maximum sentence of three years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for February 13, 2015, at 9:00 a.m.

United States Attorney Rod J. Rosenstein praised the U.S. Park Police and Naval Criminal Investigative Service for their work in the investigation, and thanked Assistant U.S. Attorney Deborah A. Johnston, who is prosecuting the case.

Baltimore, Maryland – Antione White, age 26, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.

Co-defendant and fellow UDH member Bryan Turner, age 29, of Baltimore, pleaded guilty to conspiracy to distribute and possess with intent to distribute crack cocaine and heroin on November 5, 2014.

The guilty pleas 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

According to their plea agreements, White and Turner are members of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.

White was known as an “enforcer” in the UDH group who was responsible for committing robberies on behalf of the group, possessing firearms and shooting at rivals. White admitted that he committed armed robberies with fellow UDH members and possessed firearms which were used by the UDH organization to shoot rivals and protect their territory. On May 25, 2012, White was pulled over while driving a vehicle with his girlfriend and two other UDH members. Officers found a 380 semi-automatic handgun loaded with five 9mm rounds with an obliterated serial number under the driver’s seat. Ballistics comparisons revealed that this gun matched the cartridge casings recovered from the May 11, 2012 scene of the shooting of Little Spelman member Warren Jones a/k/a Pluck, in the 800 block of Bridgeview Road in Cherry Hill.

On August 5, 2011, Turner participated in the robbery of the Chesapeake Bank of Maryland in Arbutus, along with other UDH members. Turner and others went into the bank and presented the teller with a note demanding money. Turner and his associates stole $7,305, which was later divided between Turner and three other UDH members.

White and Turner admitted that as members of UDH they also sold crack cocaine, heroin and other narcotics with UDH members. They sold the drugs from a house located on Giles Road, in the UDH area of Cherry Hill. At one point, Turner even lived in the residence. In addition to selling drugs from this location, White and others stored firearms at the house, which were used communally by other UDH members. On March 8, 2011, officers executed a search warrant at a residence in the 2900 block of Cherryland Road. Turner and other UDH members were arrested and law enforcement recovered $105 from the toilet, where a UDH member had attempted to flush it; a backpack with 406 vials containing almost 25 grams of crack cocaine; drug paraphernalia and packaging material. Officers recovered $192 in cash and two Percocet pills from Turner. On January 18, 2013, Baltimore City Police arrested White and other UDH members at the Giles Road residence and seized cocaine, drug paraphernalia and a loaded gun.

During their participation in the UDH drug conspiracy, White and Turner were each responsible for distributing in excess of 280 grams of crack cocaine. Turner was also responsible for distributing more than a kilogram of heroin.

Turner faces a minimum of 10 years and a maximum of life in prison for the drug conspiracy. White and the government have agreed that if the Court accepts the plea agreement White will be sentenced to between 15 and 20 years in prison. U.S. District Judge George L. Russell III has scheduled sentencing for Turner on May 15, 2015 at 9:30 a.m. and for White on February 20, 2015, at 11:00 a.m.

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 and Seema Mittal, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – Katherine Noelle Nash, age 26, of Burtonsville, Maryland, pleaded guilty today to transportation and possession of child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

According to Nash’s plea agreement, on September 8 and 9, 2013, Nash distributed nine videos depicting prepubescent minors engaged in sexually explicit conduct, to an undercover officer using a file sharing program. On October 23, 2013, a search warrant was executed at Nash’s residence and law enforcement seized two computers and other digital media.

A subsequent forensic examination of one of the computers revealed 12 images and a video file documenting Nash’s sexual abuse of a prepubescent female child, as well as sexually explicit conversations with another individual regarding the child. In addition, Nash possessed 37 files containing child pornography, including the files Nash distributed to the undercover officer. Nash had downloaded the files from the internet and many of the images were identified by the National Center for Missing and Exploited Children as depicting known victims. A preliminary analysis of the second computer revealed approximately 190 images and videos depicting children engaged in sexually explicit conduct.

As part of her plea agreement, Nash 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).

Nash and the government have agreed that if the Court accepts the plea agreement Nash will be sentenced to eight years in prison followed by a lifetime of supervised release. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 2, 2015 at 1:30 p.m.

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

United States Attorney Rod J. Rosenstein commended the FBI, Montgomery County Police Department and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kelly O. Hayes and Kristi N. O’Malley, who are prosecuting the case.

Greenbelt, Maryland – Brian Hooper, age 42, of Woodbridge, Virginia, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to steal over $1 million from a consulting company.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

According to his plea agreement, co-defendant Janice McCumbie worked for a global consulting business that had offices in Maryland and elsewhere. Clients paid large retainers to secure consulting services. The consulting company would issue refund checks to the clients in certain circumstances, including when a client’s retainer exceeded the amount of work that the consulting company actually performed or when the client made duplicate payments to the consulting company. McCumbie’s duties included coordinating client refunds.

In 2008, Hooper introduced McCumbie to a co-conspirator, who was not a client of the consulting company. Between June and December 2008, McCumbie caused the consulting company to issue six fraudulent refund checks totaling $121,081.22 to the co-conspirator in exchange for a share of the check proceeds. The co-conspirator shared the proceeds from five of these fraudulent checks with Hooper and McCumbie.

In 2009, Hooper introduced McCumbie to defendant Leonard Smedley, who was also not a client of the consulting company. From February 2009 to October 2013, McCumbie caused the consulting company to issue 42 false refund checks totaling $910,490.74 to Smedley in exchange for Smedley sharing the check proceeds with Hooper and McCumbie.

Hooper has agreed to forfeit and pay restitution of $1,031,571.96, the loss resulting from his conduct.

Hooper faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel scheduled his sentencing for February 2, 2015, at 9:30 a.m.

Leonard Smedley II, age 35, of Capitol Heights, Maryland; Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania; and Janice McCumbie, age 45, of Marydel, Maryland; previously pleaded guilty to the conspiracy and are scheduled to be sentenced on January 15, 20 and 27, 2015, respectively.

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David Salem, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Foster William Dove III, age 39, of Essex, Maryland, today to 50 years in prison, followed by lifetime supervised release for production of child pornography. Judge Quarles ordered that upon his release from prison, Dove must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to court documents and statements made at today’s hearing, on August 18, 2013, Dove distributed a video depicting minors engaged in sexually explicit conduct to an undercover officer using a file sharing program. A search warrant was subsequently executed at Dove’s residence and law enforcement recovered images and videos documenting Dove’s sexual abuse of two minor boys. Investigation also revealed that Dove had secretly videotaped approximately 17 additional minor males engaging in sexually explicit conduct through a hidden camera in his bathroom. Dove has been detained since his arrest on September 16, 2013.

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. Mr. Rosenstein thanked Assistant U.S. Attorney Bonnie S. Greenberg, who prosecuted the case.

DNA Sample Taken by California Police in 2013 Matched 2009 Maryland Murder Scene

 

Baltimore, Maryland - U.S. District Judge William M. Nickerson sentenced Dellando Recardo Campbell, age 32, of Lemoore, California, today to 30 years in prison followed by five years of supervised release for interstate domestic violence resulting in the death of a spouse, in connection of the death of Serika Dunkley Holness.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

“The blood Dellando Campbell left behind at the 2009 crime scene was analyzed and entered into a national DNA database, where it waited four years for a match,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a routine DNA analysis performed in California when Mr. Campbell was arrested on an unrelated charge, Maryland authorities finally learned the identity of the second killer of Serika Dunkley Holness.”

According to his plea agreement, Campbell agreed to help Ryan Dave Holness murder Ryan Holness’ wife, Serika Dunkley Holness, and conceal Ryan Holness’ role in the murder. Campbell had known Holness since 2002, when they served together in the Navy.

In November 2008, Holness represented himself to be his wife when he completed an on-line application for a $500,000 life insurance policy for his wife. Holness designated himself as the sole beneficiary of that policy. The policy would not have been issued had the insurer known that Holness purchased the policy.

Between May and June 4, 2009, Holness contacted Campbell by phone and text at least 34 times and arranged for Campbell to travel to New York City to assist in the murder of Serika Holness. On June 4, 2009, Holness told Campbell that he was going to kill the victim and that he needed Campbell’s help to make the murder appear to have been committed during a carjacking on the drive to Maryland.

Campbell admitted that on the evening of June 4, 2009, Holness drove Campbell and the victim from New York to Maryland. At around 1:30 a.m. on June 5, 2009, Holness, Campbell and the victim arrived at a rural area along MD Route 290, just south of MD Route 291, in Crumpton, Kent County, MD. Holness parked the Honda on a farm access road. Serika Holness was murdered in a field beside Route 290 where she was repeatedly stabbed, resulting in her death.

Campbell purposely left his own blood at the murder scene in order to provide support for Holness’s plan to tell the police that an unknown carjacker had attacked Holness and murdered the victim. Campbell admitted that he helped Holness stage the crime scene by depositing droplets of blood at various locations inside the passenger compartment of the Honda and on several of the victim’s personal items that were placed at the crime scene to be discovered by the police. Items at the murder scene from which Campbell’s DNA was later recovered included the victim’s purse, one of her sandals and a paperback book. Campbell then drove the Honda, guided by a GPS system, to a location between 6th and 7th Streets NW, Washington, D.C., where it was located and seized by homicide investigators later on June 5, 2009. Meanwhile, Holness told the police a bizarre, false story about the supposed carjacking.

On June 5, 2009 Holness was arrested and charged with premeditated murder. While being held in pretrial detention in Kent County, Holness asked another prisoner to draft a purported third party “confession” to the carjacking and murder. Holness told the cellmate to mail the detailed confession to the police from Washington, D.C. upon the cellmate’s release, which was imminent. Instead, the cellmate informed the state police of Holness’ efforts. Several pages of confessions, including pages written by Holness, were removed from Holenss’ cell by the state police.

After a two week trial, Ryan Holness, age 33, formerly of Lexington Park, Maryland, was convicted of domestic violence resulting in the death of a spouse and sentenced on June 9, 2011, to life in prison.

The DNA profile of the unidentified male found in Holness’ car and on items at the crime scene was entered into the national DNA data base, where it was regularly compared with DNA profiles recovered since its entry. On October 22, 2013, a sample of Campbell’s DNA was routinely obtained by police in Lemoore, California. In January 2014, the California Department of Justice notified the Maryland State Police that Campbell’s DNA profile matched the DNA profile for the unidentified male in the Holness case. Campbell was arrested by the Maryland State Police and FBI in Lemoore, California on February 7, 2014.

United States Attorney Rod J. Rosenstein praised the Maryland State Police and FBI for their work in the investigation and thanked the Kings County, California, District Attorney’s Office, the California Department of Justice and the Lemoore, California, Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys John F. Purcell, and Kenneth S. Clark, who prosecuted the case.

Sold Heroin to a Customer Resulting in the Man’s Death

 

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jacob Powell, age 21, of Thurmont today to seven years in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute heroin. Judge Quarles also ordered Powell to pay more than $7,000 in restitution, to cover the medical costs and funeral expenses of the person who died after Powell and a co-defendant supplied the victim with heroin.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.

According to Powell’s plea agreement, between July 2012 and June 2014, Powell conspired with Myers and others to distribute heroin in western Maryland. Powell and Myers regularly obtained heroin from sources and re-sold that heroin to customers in and around Thurmont and Emmitsburg, Maryland.

On June 11, 2013, Myers and Powell sold heroin to Derek Dunsmore in Emmitsburg. The heroin Myers and Powell sold caused the death of Derek Dunsmore.

Kathleen Elizabeth Myers, age 21, of Thurmont, Maryland, previously pleaded guilty to the same charge and was sentenced on October 29, 2014 to seven years in prison.

United States Attorney Rod J. Rosenstein praised the DEA, Frederick County Sheriff’s Office, Maryland State Police and the Frederick County Narcotics Task Force for their work in the investigation and thanked Special Assistant U.S. Attorney Anthony J. Enright and Assistant U.S. Attorney Robert R. Harding, who prosecuted the case.

GPS Monitoring Catches Crook Who Robbed Three Stores in Two Weeks

 

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Lydell Pittman, age 24, of Baltimore, today to 181 months in prison followed by five years of supervised release for robbery and using 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; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.

“Lydell Pittman will serve more than 15 years in federal prison for using a gun to commit robberies,” said U.S. Attorney Rod J. Rosenstein. “We are reducing violent crime by making sure criminals spend hard time for gun crime.”

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

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

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

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

Also Admitted to Illegally Possessing a Gun Purchased on the Street

 

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Michael Anthony McLeod age 31, of Baltimore, Maryland today to 100 months in prison followed by three years of supervised release for possession with intent to distribute crack cocaine.

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

According to McLeod’s plea agreement, on September 13, 2013, Baltimore City police officers executed a search warrant at McLeod’s home. McLeod was in the home when officers arrived. Officers recovered: a baggie containing 12 red top vials of crack cocaine packaged for distribution; a loaded .357 revolver; two clear baggies, each containing 20 red top vials of crack cocaine; drug paraphernalia, including digital scales; and $756 in cash, organized in several stacks. McLeod told officers that the firearm, drugs and drug paraphernalia were all his and that he had recently purchased the gun on the street.

McLeod had previously been convicted of a felony and was prohibited from possessing a gun or ammunition.

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 Assistant U.S. Attorney John F. Purcell, Jr., who prosecuted the case.

Prescribed Drugs to His Girlfriend and Others Without a Medical Basis

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Dr. John K. Yacoub, age 58, of Baltimore, Maryland today to a year and a day in prison followed by two years of supervised release for conspiring to distribute and possess with intent to distribute fentanyl, hydrocodone, oxycodone, morphine and methadone. Chief Judge Blake also ordered Yacoub to pay restitution and forfeit $2,375.93.

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 Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Chief James W. Johnson of the Baltimore County Police Department; Chief Gary Gardner of the Howard County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to his plea agreement, between 2012 and 2013 Dr. Yacoub provided prescriptions and pills to his girlfriend who was a drug addict. He initially provided her with Vicodin, and later with oxycodone and morphine. By 2013, Dr. Yacoub was regularly writing prescriptions for morphine and fentanyl patches for his girlfriend’s personal use.

Dr. Yacoub asked two others to help him get additional prescription medication for his girlfriend in exchange for providing them with prescriptions for methadone. Investigators have determined that one of these individuals used Medicaid to pay for $2,375.92 of the morphine prescriptions obtained for Dr. Yacoub.

During a search warrant executed on September 23, 2013, investigators obtained patient files for Dr. Yacoub’s girlfriend and the other two individuals. None of the files reflected any medical treatment or medical reason for the medications prescribed to them by Dr. Yacoub. Dr. Yacoub admitted that he provided the prescriptions outside the scope of accepted medical practice.

United States Attorney Rod J. Rosenstein praised the DEA, HHS – Office of Inspector General, Baltimore County and Howard County Police Departments and the Baltimore Police Department for their work in the investigation. Mr. Rosenstein also recognized the Maryland Board of Physicians for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who prosecuted the case.

Baltimore, Maryland –U.S. District Judge George L. Russell III sentenced Jarwon D. Scott, age 26, of Baltimore, today to 10 years in prison followed by five years of supervised release for robbery and using 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 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 his plea agreement, on September 1, 2013, Scott offered to sell prescription drugs to residents of a motel in Catonsville, Maryland. When it came time for the delivery, Scott used the ruse of supplying drugs to gain access to a motel room and, along with another individual, robbed the two occupants. Scott brandished a handgun and demanded money from the occupants of the room.

Scott was arrested a few days later on September 5. Law enforcement seized a 9mm semi-automatic pistol with an obliterated serial number and ammunition from the car he was about to enter. Scott had previously been convicted of a felony and was prohibited from possessing the gun and ammunition.

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 Bonne S. Greenberg, who prosecuted the case.

Third Drug Gang Member Pleads Guilty

Baltimore, Maryland – U.S. District Judge George L. Russell, III, today sentenced UDH members Tony Johnson, a/k/a “Tony Mack,” age 27, and Russell Lumpkins, age 25, both of Baltimore, each to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute crack cocaine and heroin in the Cherry Hill section of Baltimore.

Delano Johnson, age 37, of Baltimore, also a member of UDH, pleaded guilty to the same charge on October 30, 2014.

The sentences and guilty plea 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

According to their plea agreements, Delano Johnson, Tony Johnson and Russell Lumpkins are all longtime drug dealers in the Cherry Hill section of Baltimore. All three were members of the “UDH” organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” This area is northeast of West Patapsco Avenue and south of Arundel Elementary- Middle School, that extends on the southeastern side approximately to Denham Circle and Bridgeview Road, and that includes Giles Road, Fisk Road, Slater Road, part of Spelman Road, part of Round Road, Claflin Court, Winwood Court, and the surrounding areas. In addition to the drug dealing admitted to by these defendants, members of UDH also committed robberies, homicides, and non-fatal shootings. UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill.

Delano Johnson and Russell Lumpkins were two of the main UDH drug suppliers. In 1997, Delano Johnson ran a heroin and crack cocaine shop, which was worked by UDH members on the 2700 block of Spelman Road. From at least 2008, Russell Lumpkins worked with Delano Johnson selling crack cocaine and heroin, and served as Delano Johnson’s right hand man for part of the conspiracy, running another drug shop for Delano Johnson located on Winwood Court. On May 16, 2012, a search was executed at a residence associated with Lumpkins. Law enforcement recovered 124.13 grams of heroin, an additional 535 gel caps containing 88.13 grams of heroin, $4,192 in cash and a digital scale with heroin residue.

Beginning in at least 2006, Tony Johnson began selling crack cocaine in the Cherry Hill neighborhood. In 2013, Johnson sold drugs with fellow UDH members in the Giles/Fisk/Slater area. On November 25, 2013, an undercover officer purchased two ziplock bags of crack cocaine from Tony Johnson in the 2700 block of Giles Street. In January 2013, an officer tried to stop a car being driven by Johnson. Johnson did not stop, but crashed into a curb, fled and was caught by police. Johnson threw away a plastic bag containing 29 ziplocks of cocaine while he continued resisting arrest.

During their participation in the UDH drug conspiracy, Lumpkins, Delano Johnson and Tony Johnson were each responsible for distributing in excess of 280 grams of crack cocaine. Lumpkins and Delano Johnson were also responsible for distributing more than a kilogram of heroin.

Delano Johnson faces a minimum of 10 years and a maximum sentence of life in prison. Judge Russell has scheduled sentencing for February 6, 2015, at 10:00 a.m.

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 and Seema Mittal, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

American Defendants Allegedly Paid Over $1.6 Million in Bribes to Russian National to Obtain
Over $33 Million in Non-compete Contracts

Greenbelt, Maryland - A criminal complaint was unsealed late yesterday charging Vadim Mikerin, age 55, a Russian national residing in Chevy Chase, Maryland, with conspiring to commit extortion in connection with a scheme to obtain contracts from a Russian company without having to compete for the contracts. A separate criminal complaint charges Daren Condrey and his wife Carol Condrey, both age 49, of Glenwood, Maryland, and Boris Rubizhevsky, age 63, of Closter, New Jersey, with conspiring to commit wire fraud in connection with the scheme.

The criminal complaints were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; John R. Hartman, Deputy Inspector General for Investigations, Office of Inspector General at the U.S. Department of Energy; and Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office.

“Kickbacks deprive honest competitors of the opportunity to compete for business, and they cheat a company of its right to faithful decisions by its employee,” said U.S. Attorney Rod J. Rosenstein.

In1992, the U.S. and Russia executed an agreement to dispose of Russian highly enriched uranium from disassembled nuclear warheads and for the sale of the material, once down-blended, to U.S. nuclear utility providers. JSC Techsnabexport (TENEX), based in Moscow, Russia, was responsible for the sale and transportation of this material to the United States.

Vadim Mikerin is the general director of TENAM USA, based in Bethesda, Maryland. TENAM is a subsidiary of TENEX. TENEX is a subsidiary of ROSATOM, the Russian State-owned Nuclear Corporation, which is the Russian counterpart organization of the U.S. Department of Energy.

Daren Condrey and Carol Condrey are principals of Transport Logistics International (TLI), based in Fulton, Maryland. Since 1996, TLI has contracted with TENEX to transport uranium from Russia to the U.S. Boris Rubizhevsky is the president of NEXGEN Security (NEXGEN), a New Jersey corporation. From 2011 through 2012, Rubizhevsky served as a consultant to TENAM and to Mikerin.

Beginning in 2006, Mikerin allegedly conspired with the Condreys, Rubizhevsky and others to defraud TENEX by causing contracts for the shipment of uranium from Russia to the U.S. to be awarded to the U.S. defendants and their companies without having to compete for the contracts.

According to the complaints and supporting affidavits, the Condreys and TLI bribed Mikerin to receive lucrative, non-compete contracts from TENEX. TLI has also pursued other business ventures with TENEX for transportation under separate contracts. From at least 1996 to about 2013, the Condreys and others allegedly caused TLI to pay at least $1,692,995 in kickback payments to Mikerin in exchange for receiving over $33 million in noncompetitive contracts from TENEX.

According to the affidavits, in November 2011, Mikerin required a middle man to accept kickback payments. Mikerin used Rubizhevsky and his company, NEXGEN Security, to serve as this middleman.

The affidavits allege that the kickback payments to Mikerin were disguised as consulting fees or other fictitious expenses. The defendants also entered into sham contracts with offshore shell entities knowing that the payments to these entities were in fact being made to Mikerin.

Mikerin faces a maximum sentence of 20 years in prison for the extortion conspiracy. The Condreys and Rubizhevsky face a maximum sentence of 20 years in prison for the wire fraud conspiracy. Daren Condrey had his initial appearance Wednesday, and Carol Condrey and Mikerin had their initial appearances yesterday, in U.S. District Court in Greenbelt. The Condreys were released pending trial. Mikerin was detained pending his detention hearing today at 4:30 p.m. Boris Rubizhevsky had his initial appearance in federal court in New Jersey, and will have his initial appearance in Greenbelt today at 11:15 a.m.

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

United States Attorney Rod J. Rosenstein praised the DOE-OIG and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Adam K. Ake and James A. Crowell IV, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Alexander Michael Bailey, age 25, of Oxon Hill, Maryland, late on October 30, 2014, to 15 years in prison, followed by five years of supervised release, for the armed robbery of an Oxon Hill cell phone store.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting 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.

Bailey admitted that on July 3, 2013, he entered a cell phone store located in Oxon Hill, brandished a firearm, and ordered everyone on to the floor. Bailey grabbed the store manager and another employee, poked the employee with the firearm, and demanded that the employee open the register and give Bailey the money. The victims feared for their lives and gave Bailey $302 in cash. Bailey fled the store. A short time later, officers from the Prince George’s County Police Department began a lookout for Bailey. One officer saw Bailey nearby and ordered him to stop. Bailey began to run, but after a short chase he was caught and the $302 was recovered from him. During a subsequent interview by police, Bailey provided a written statement admitting that he carried and brandished a firearm during the armed robbery of the cell phone store.

United States Attorney Rod J. Rosenstein commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Kelly O. Hayes, who prosecuted the case.

In Unrelated Case, Baltimore Man Admits Stealing $127,000 in SSA Benefits Over 16 Years

Greenbelt, Maryland –Yvonne Isadora Whiteman, age 69, of Laurel, Maryland pleaded guilty today to theft of government property.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division.

According to her plea agreement, Whiteman’s mother received monthly social security retirement benefits based on her earnings record. Whiteman’s mother moved to Trinidad, West Indies in the summer of 1997 to live with Whiteman’s sister, and died there on October 8, 1997. Her death was not reported to SSA.

At the time of her mother’s death, the benefits were paid by direct deposit to a joint bank account held by Whiteman and her mother. Whiteman sent the benefits to her sister in Trinidad during the short period her mother was alive and living there.

In 2013, SSA determined that because Whiteman’s mother had not used Medicare services, the mother was likely deceased. On December 13, 2013, Whiteman met with a SSA specialist and provided a forged death certificate purporting to show that her mother died on October 8, 2013. When the SSA specialist later advised Whiteman that she would use the consular process to obtain the true death certificate, Whiteman admitted that she had lied about her mother’s date of death.

SSA paid a total of $299,951 from October 8, 1997 until October 2013 when the benefits were terminated. At the time the benefits were terminated, the mother’s monthly benefit amount was $1,847. Whiteman used all but approximately $4,000 of her mother’s benefits to pay for her own personal expenses.

Whiteman faces a maximum sentence of 10 years in prison. Whiteman has agreed to pay restitution of $299,951. U.S. District Judge Deborah K. Chasanow scheduled sentencing for February 2, 2015, at 11:30 a.m.

In an unrelated case, Allen Thomas Wilson, age 72, of Baltimore, pleaded guilty today in U.S. District Court in Baltimore, to theft of government property in connection with a similar scheme in which he spent retirement benefits paid by SSA for the benefit of his mother for his personal use. From the time of his mother’s death on September 19, 1997, until January 2014, when benefits were terminated, SSA paid a total of $127,700. Wilson has agreed to pay restitution in this amount. U.S. District Judge Ellen L. Hollander has scheduled sentencing for December 19, 2014, at 9:15 a.m.

United States Attorney Rod J. Rosenstein praised the Social Security Administration - OIG for its work in the investigations, and thanked Special Assistant U.S. Attorney Paul K. Nitze, assigned from the Social Security Administration, who is prosecuting these cases.

Allegedly Took $20,000 to Cancel Debt Owed to City and Took $70,000 to “Sell” Government Property

 

Baltimore, Maryland - A federal grand jury indicted Barry Stephen Robinson, age 65, of Accokeek, Maryland, in connection with an alleged bribery scheme earlier this year while he was Chief of the Division of Transit and Marine Services of the Baltimore City Department of Transportation. Robinson is charged with two counts of bribery concerning a program that received federal funds, and one count of money laundering. The indictment was returned on October 29, 2014.

“Barry Stephen Robinson allegedly took a $20,000 bribe to cancel a $60,000 debt owed to Baltimore City, and a $70,000 bribe to allow the theft of city property worth $250,000,” said U.S. Attorney Rod J. Rosenstein. “This sort of corruption can occur when dishonest people are trusted to handle valuable government property without oversight.”

The indictment was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City Inspector General Robert H. Pearre, Jr.; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

Robinson supervised Baltimore City’s “Circulator” and “Water Taxi” programs, according to the indictment. He had authority to approve contracts with advertisers and vendors; purchase and pay for goods and services; and receive and process payments owed to the city.

In the spring of 2013, Robinson received a check for $40,000 payable to the Baltimore City Director of Finance, in payment for advertising on Circulator buses. Robinson allegedly returned the check and offered that for $20,000 in cash, he would cancel the $40,000 debt to the city and provide written documentation that it had been paid. The debtor declined the offer. In January 2014, Robinson offered to extinguish $60,000 of debt to the City of Baltimore in return for $20,000 in cash. From January 23 to March 11, 2014, Robinson received four cash payments of $5,000 each. In return, Robinson provided a signed letter on Baltimore City letterhead falsely stating that the $60,000 debt had been paid.

Seeking to disguise the source of the bribery proceeds, Robinson allegedly deposited some of the money into a bank account in the name of another person on January 24, 2014.

The indictment also alleges that Robinson took a $70,000 bribe to sell unused city bus shelters. In 2011, Robinson arranged for Baltimore City to purchase 13 bus shelters from a Canadian company for $249,290. On multiple occasions from May 2013 to March 2014, Robinson said the city did not keep track of the shelters, so he planned to sell them for his personal benefit. Robinson allegedly said that he wanted $70,000 from the sale of the bus shelters in order to help fund his retirement. On April 9, 2014, Robinson accepted $70,000, in return for the city’s bus shelters.

Robinson faces a maximum sentence of 20 years in prison for money laundering and 10 years in prison on each of two bribery counts. An initial appearance has not yet been scheduled.

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

U.S. Attorney Rod J. Rosenstein praised the FBI, the Baltimore City Office of Inspector General and IRS-Criminal Investigation, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Barbara S. Sale, who is prosecuting the case.

Sold Heroin to a Customer Resulting in the Man’s Death

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Kathleen Elizabeth Myers, age 21, of Thurmont, Maryland today to 7 years in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute heroin. Judge Quarles also ordered Myers to pay more than $7,000 in restitution, to cover the medical costs and funeral expenses of the person who died after Myers and a co-defendant supplied him with heroin.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.

According to Myers’ plea agreement, between July 2012 and June 2014, Myers conspired with others, including Jacob Alexander Powell, to distribute heroin in western Maryland. Myers and Powel regularly obtained heroin from sources in Baltimore and re-sold that heroin to customers in and around Thurmont and Emmitsburg, Maryland.

On June 11, 2013, Myers and Powell sold heroin to Derek Dunsmore in Emmitsburg. The heroin Myers and Powell sold caused the death of Derek Dunsmore.

Jacob Powell, age 21, of Thurmont, previously pleaded guilty to the same charge and faces a maximum penalty of 20 years in prison. Judge Quarles has scheduled his sentencing for November 4, 2014, at 1:00 p.m.

United States Attorney Rod J. Rosenstein praised the DEA, Frederick County Sheriff’s Office, Maryland State Police and the Frederick County Narcotics Task Force for their work in the investigation and thanked Special Assistant U.S. Attorney Anthony J. Enright and Assistant U.S. Attorney Robert R. Harding, who prosecuted the case.

Used Stolen Identity to Gain Employment at a Pediatrician’s Office; Treated 200 Patients, Including Infants, and Wrote Over 400 Prescriptions

 

Baltimore, Maryland - Shawna Michelle Gunter, age 37, of Annapolis, Maryland, pleaded guilty today to wire fraud and aggravated identity theft in connection with a scheme to pose as a physician’s assistant to obtain employment, during which she diagnosed and treated over 200 infants and children, and wrote over 400 prescriptions, all without a medical license.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police.

“Shawna Michelle Gunter admitted that she fraudulently posed as a licensed physician’s assistant, treating patients and writing prescriptions, although she has no medical training,” said U.S. Attorney Rod J. Rosenstein.

According to her plea agreement, in June 2013, Gunter was a surgical assistant in a doctor’s office in Maryland. She told the doctor that she needed a $7,800 loan for emergency repairs to her septic system, when in fact she was remodeling her boyfriend’s house. Despite receiving this money, on June 21, 2013, Gunter stole a check from the doctor and forged the doctor’s signature on the check for $14,400. When confronted, she admitted the theft and was fired. These funds, totaling $22,200, have not been repaid.

Gunter searched for another job and learned that a prior acquaintance, a pediatrician who had offices in Centreville and Chestertown, Maryland, was looking for a physician’s assistant. Gunter falsely told the doctor that she had just graduated from Howard University with a degree as a physician’s assistant. Gunter faxed a false resume to the doctor. The doctor hired Gunter with the understanding that she would provide documentation of her education, Maryland physician assistant’s license and DEA certification reflecting her authority to issue prescriptions.

Gunter began work for the pediatrician as a physician’s assistant on July 5, 2013. She was immediately asked for the documentation. Knowing that she was not licensed as a physician’s assistant in Maryland, Gunter provided a forged physician’s assistant certificate bearing the license number of an actual physician’s assistant, as well as an altered copy of that individual’s DEA controlled substance registration certificate. She also provided a fabricated diploma, purportedly from Howard University.

Gunter began seeing pediatric patients without direct supervision on August 18, 2013. From August 19 to 29, Gunter diagnosed and treated over 200 infants and children, including for sick visits, ADHD follow-ups, newborn visits and routine physicals. During this time, Gunter issued over 400 prescriptions for controlled substances.

Gunter’s provision of unlicensed and unqualified medical care resulted in the pediatrician’s practice unwittingly submitting hundreds of false claims for Medicaid coverage, and the payment of $19,668.19 in fees on those false claims.

Gunter faces a maximum sentence of 20 years in prison for wire fraud; and two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Richard D. Bennett scheduled sentencing for January 30, 2015, at 10:00 a.m.

United States Attorney Rod J. Rosenstein praised the Department of Health and Human Services Office of Inspector General, Maryland State Police, HSI and Maryland Natural Resources Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who is prosecuting the case.

Greenbelt, Maryland - Janice McCumbie, age 45, of Marydel, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to steal over $1.2 million from a consulting company.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

According to her plea agreement, McCumbie worked for a global consulting business that served clients in various industries and had offices in Maryland and elsewhere. Clients paid large retainers to secure consulting services. The consulting company would issue refund checks to the clients in certain circumstances, including when a client’s retainer exceeded the amount of work that the consulting company actually performed or when the client made duplicate payments to the consulting company. McCumbie’s duties included coordinating client refunds.

Between June and December 2008, McCumbie caused the consulting company to issue six fraudulent refund checks totaling $121,081.22 to a co-conspirator in exchange for a share of the check proceeds.

From February 2009 to October 2013, McCumbie caused the consulting company to issue 42 false refund checks totaling $910,490.74 to defendant Leonard Smedley in exchange for a share of the check proceeds. Similarly, from October 2010 to November 2013, McCumbie caused the consulting company to issue 17 false refund checks totaling $217,695.57 to her niece, defendant Amber Gayleard, who cashed the checks and shared the proceeds with McCumbie. Smedley and Gayleard were not clients of the consulting company.

McCumbie has agreed to forfeit and pay restitution of $1,249,267.53, the loss resulting from her conduct.

McCumbie faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel scheduled her sentencing for January 27, 2015, at 9:30 a.m.

Leonard Smedley II, age 35, of Capitol Heights, Maryland; and Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania, previously pleaded guilty to the conspiracy and are scheduled to be sentenced on January 15 and 20, 2015, respectively, both at 9:00 a.m.

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David Salem, who are prosecuting the case.

Provided Information on Bank Personnel and Procedures to Her Accomplice

 

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Janaya Brittne Person-Robinson, age 20, of Baltimore, Maryland, today to 84 months in prison, followed by five years of supervised release, for an armed bank robbery in which her accomplice forced a teller at gunpoint to accompany him and open the bank vault.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.

According to Person-Robinson’s plea agreement, on October 1, 2013, Janaya Brittne Person-Robinson and her accomplice Darrius Roszario Washington, parked his car in a lot near the M&T Bank in Dundalk. Person-Robinson had previously been a teller-trainee at the bank and was familiar with the bank layout, procedures and the tellers who worked at the bank. Shortly before 7:30 a.m., Washington and Person-Robinson approached a teller in the parking lot when she got out of her car. Washington pointed a .32 caliber gun at the teller’s head and ordered her to unlock the door of the bank. The teller initially told Washington that she could not open the door but Washington told her he knew she was lying and threatened to “blow her head off,” if she didn’t unlock the door. The teller opened the door and after Washington and Person-Robinson entered the bank, the teller fled and called police.

Once inside the bank, Washington, using information provided by Person-Robinson, approached a second teller, calling her by name. Washington knew that the teller had access to the bank’s vault. Using the gun, Washington forced the teller to accompany him to the vault and ordered her to open the door, threatening that if she did not, she would never see her child, whom Washington called by name, again using information provided by Person-Robinson. The teller opened the vault door and Washington forced her to the floor at gunpoint. Washington removed the money from the vault, while Person-Robinson emptied the cash from the teller drawers. Washington and Person-Robinson then left the bank, carrying a canvas bag filled with $133,600, got into their car and attempted to flee. They were arrested a short time later. Officers recovered the cash stolen from the bank, the gun used during the robbery, and the hats and latex gloves worn by Washington and Person-Robinson during the robbery.

Darrius Roszario D. Washington, age 20, of Baltimore, was previously sentenced to 135 months in prison, for his role in the robbery.

Washington and Person-Robinson remain in federal custody.

United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and Judson T. Mihok, who prosecuted the case.

Baltimore, Maryland - A federal grand jury returned a superseding indictment today against Rayvon O. Archibald, a/k/a “P Money,” “Keyvon M. Malone,” “Keyvon Smith,” and “Snoopy,” age 24, of Boston, Massachusetts, and Jonathan M. Went, a/k/a “Jon Maxx,” and “Max Out,” age 30, of Massachusetts and Gwynn Oak, Maryland. The original indictment charged Archibald and Went with sex trafficking of a child. The superseding indictment adds charges for conspiracy, transportation of a minor with intent to engage in prostitution, and kidnapping.

The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.

The four count superseding indictment alleges that Archibald and Went were pimps, engaged in the business of recruiting, transporting, providing, and maintaining by any means females to engage in commercial sex acts. Archibald and Went used the internet to purchase and post advertisements for commercial sex in Maryland, New York, and elsewhere.

According to the superseding indictment, on March 5, 2014, Archibald encountered Girl 1, a female under the age of 14, in New York City and provided her with alcohol and drugs. On March 6, 2014, Archibald transported Girl 1, against her will, traveling by bus from New York to White Marsh, Maryland, then by taxi to Went’s apartment in Gwynn Oak. That same day, Archibald and Went allegedly posted an advertisement on a commercial sex website soliciting customers for Girl 1 which listed the number for a phone controlled by Archibald and Went. They also instructed Girl 1 on pricing for commercial sex acts and provided her with a document that included prices.

The superseding indictment alleges that on March 6 and March 7, 2014, Archibald and Went communicated with potential commercial sex customers and made appointments for Girl 1 by telephone and text messages; took money from customers in exchange for making Girl 1 available to engage in sex acts; and provided condoms to Girl 1 and the customers to facilitate sex acts involving Girl 1. Further, the indictment alleges that Archibald slapped Girl 1 across the face after she failed to obtain money for Archibald and Went from a commercial sex customer, and that Archibald took a mobile device away from Girl 1. She had been using the device in an attempt to alert her mother and law enforcement officers about her situation and location.

Archibald and Went face up to life in prison for conspiracy to commit sex trafficking of a child; a minimum of 15 years and up to life in prison for sex trafficking of a child; a minimum of 10 years in prison and up to life in prison for transportation of a minor with intent to engage in prostitution; and a minimum of 25 years and up to life in prison for kidnapping. An initial appearance on the superseding indictment has not yet been scheduled. Archibald and Went were previously ordered to be 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.

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 FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Mark W. Crooks, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge George J. Hazel sentenced David Wayne Nelson, age 32, of Salisbury, Maryland, today to 140 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel Marcus L. Brown, 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.

According to their plea agreements, from July 2013, through August 27, 2013, Nelson conspired with Royce Levi Brown, and others to distribute cocaine. During the investigation, DEA and the Wicomico County Narcotics Task Force initiated wire taps on cellular telephones belonging to Brown and executed search warrants at multiple locations, including residences associated with Nelson and Brown. Law enforcement overheard and observed Nelson engage in drug transactions with Brown.

For example, on July 30, 2013, law enforcement overheard conversations in which Nelson agreed to buy one kilogram of cocaine from Brown. Brown delivered the cocaine to Nelson at his residence. On August 13, 2013, law enforcement overheard Nelson arrange to purchase one half kilogram of cocaine from Brown for $21,000.

Royce Levi Brown, age 31, of Mardela Springs, Maryland, previously pleaded guilty to his role in the conspiracy and is awaiting sentencing.

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 Attorney Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Eugene Lewandowski, age 27, of Upper Marlboro, Maryland, today to 30 years in prison followed by lifetime supervised release for sexual exploitation of a minor to produce child pornography and for transportation of child pornography. Judge Chasanow ordered that upon his release from prison, Lewandowski must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.

According to information presented at Lewandowski’s sentencing hearing, Lewandowski took six videos of himself engaged in sexual acts with a sleeping five year old female, as well as additional videos of the child, including sexually explicit videos.

In addition, analysis of Lewandowski’s computers and other digital media revealed at least 14,000 images and videos documenting the sexual abuse of children. Lewandowski admitted using a file sharing program on his computer to distribute some of these images and videos.

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

United States Attorney Rod J. Rosenstein commended the HSI Baltimore and Maryland State Police Internet Crimes Against Children Task Force for their work in the investigation, and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Kadiatu Sahid Kamara, age 50, of Gaithersburg, Maryland today to three years in prison followed by threeyears of supervised release for mail fraud and aggravated identity theft, arising from a two year scheme in which she wrote herself approximately 118 checks from her employers’ bank account. Judge Hazel also entered orders that Kamara pay $431,542 in restitution and forfeiture.

The sentence 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 agreement, Kamara was a nanny caring for the children of a married couple living in Montgomery County. Kamara had access to checks linked to the victims’ money market account, though she had never been authorized to write checks from this account. From May 2011 to May 2013, Kamara wrote herself approximately 118 checks from the victims’ account, totaling approximately $431,542. She forged the signature of one of the victims on each check, and deposited the checks into her own bank account. Kamara used some of the money to buy a house in Africa, to send money transfers, and to play games at a casino in Charles Town, West Virginia.

United States Attorney Rod J. Rosenstein praised the U.S. Secret Service and Montgomery County Police Department for their work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.

Baltimore, Maryland - Wesley Burnett, age 54, of Hermosa Beach, California, pleaded guilty on October 24, 2014, to conspiracy to commit wire fraud in connection with a scheme to fraudulently obtain more than $2.8 million in federal government contracts through the use of the Small Business Administration’s 8(a) program, designed to assist disadvantaged businesses.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations; and Mary L. Kendall, Deputy Inspector General, Department of the Interior.

According to his plea agreement, Wesley Burnett owned and operated Confederate Group LLC and Total Barrier Works (TBW). These companies were in the business of maintaining and installing anti-terrorist systems and vehicle control equipment such as security barriers, bollards, gates, uninterrupted power systems (UPS) and other perimeter security anti-terrorist equipment.

Burnett admitted that at various times from 2007 until 2014, he falsely represented to the U.S. government that Confederate Group LLC was a “Hispanic-American owned business,” a “minority owned business,” a “service disabled veteran owned business,” and a “small disadvantaged business,” in order to win federal contracts at military bases and federal buildings that were reserved for firms in those categories. In fact, Burnett is not a member of any racial or ethnic minority, is not a disabled veteran and is not a member of a socially disadvantaged group, as those terms are defined by the Small Business Administration, and therefore his company was not qualified to receive contracts set aside for those categories. As a result of Burnett fraudulently claiming minority and/or disabled veteran status, from 2008 through 2014, Confederate Group LLC was awarded approximately $534,315, in contracts reserved for minorities and service disabled veterans.

In order to bid on the set-aside contracts, Burnett recruited individual who were members of racial or ethnic minorities, service disabled veterans, or members of socially disadvantaged groups, and offered them a percentage of the total value of any contract he won using their companies’ name. As part of the scheme, Burnett, using the name of the minority owned company bid on federal government contracts set aside for companies owned by minorities, service disabled veterans, or members of socially disadvantaged groups. Burnett and TBW did all of the work covered by the contract, then paid the owner of the company in whose name the contract had been awarded a fixed percentage of the gross value of the contract, usually between four and five percent. To further this “pass thru” arrangement, Burnett falsely represented that TBW was a trade name for the minority owned company in whose name the contract had been awarded, when in fact TBW was a separate and distinct company.

For example, Yogesh K. Patel was the owner of United Native Technologies, Inc. (“UNTI”), which, according to its articles of incorporation, was formed to “perform information technology services to federal, state and local government, as well as commercial.” In 2005, Patel applied for and was granted certification as a minority or socially disadvantaged owned business under the SBA’s 8(a) program. In addition to a broad scope of assistance from SBA, participants in the 8(a) program can receive sole source government contracts that are reserved for minority or socially disadvantaged owned companies.

Burnett met Patel at a business conference and the two agreed to use UNTI to bid on 8(a) set aside contracts at federal government installations, including military bases and federal buildings, with Burnett, TBW and individuals at Burnett’s direction actually performing the work necessary to fulfill these contracts. Burnett also agreed to pay Patel approximately 4.5% of the total value of any contract awarded to UNTI. As a result, between January 2010 and November 2013, UNTI was fraudulently awarded more than $1.8 million in 8(a) set-aside U.S. government contracts, while the work on the contracts was actually performed by Burnett’s company and employees.

Burnett admitted that he had similar arrangements with the owner of an 8(a) firm that did electrical and other work for government and commercial clients, and with the owner of a service-disabled veteran owned small business. Burnett also fraudulently obtained the personal identifying information of a service-disabled veteran, which he then used when bidding on federal government contracts.

Burnett faces a maximum penalty of 20 years in prison for the wire fraud conspiracy. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 2, 2015, at 10:00 a.m.

Yogesh K. Patel, age 47, of Gaithersburg, Maryland, previously pleaded guilty to his role in the scheme and is scheduled to be sentenced on January 12, 2015, at 12:00 p.m.

The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.

United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General, U.S. Air Force Office of Special Investigations and the Department of the Interior, Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Sean R. Delaney, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Lamonte X. Smith, age 30, of Accokeek, Maryland, today to 92 months in prison followed by six years of supervised release for conspiring to commit wire fraud and aggravated identity theft arising from a scheme in which, while he was incarcerated, he obtained access device account information of others from a bank to purchase cars, services, clothing and other items. Judge Grimm also entered an order that Smith forfeit and pay restitution of $115,207.09

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 agreement, Smith was incarcerated at the Maryland Reception Diagnostic and Classification Center (MDCC) in Baltimore from at least April to August 2011. Smith instructed a co-conspirator to buy “SIM” cards, which are used in cell phones to assign the device a telephone number, and deliver the SIM cards to Smith in prison. Smith used the SIM cards to activate a phone and call Bank of America, clothing vendors and car dealerships. Smith used one of the SIM cards to call Bank of America’s customer service department on several occasions, posed as an authorized user of business access device account holders, and fraudulently obtained access to bank accounts of individuals and small business owners without their knowledge.

Upon accessing the accounts, Smith caused credit limits to be raised, added additional authorized users and caused additional access devices to be mailed to others. From prison, Smith used the fraudulently obtained account information to buy cars, clothes and car transportation from prison. His conspirators directed the shipment of cars, clothing and other items totaling at least $115,207.09 to Smith’s home, or to a storage unit in Waldorf, Maryland.

On August 17, 2011, federal law enforcement agents searched two homes linked to Smith’s illegal conduct. After learning of the searches, Smith called an individual and offered to pay the individual to remove clothes, car accessories and other items from the storage unit in Waldorf. Law enforcement arrived at the storage unit before it could be emptied. The individual made consensually monitored phone calls with Smith from the storage unit in which Smith confirmed his plan to pay the individual to remove the items.

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 Secret Service for its work in the investigation and thanked Assistant U.S. Attorneys Thomas P. Windom and Arun G. Rao, who prosecuted the case.

Baltimore, Maryland – A federal grand jury has indicted Daniel P. Welch, age 36, of Crumpton and Chestertown, Maryland, and Jonathan M. Sutton, age 36, of Chestertown, on charges of conspiring to unlawfully obtain firearms for a prohibited person. The indictment also charges Welch with being a felon in possession of firearms. The indictment was returned on October 22, 2014.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Queen Anne’s County Sheriff R. Gery Hofmann III; Chief George A. Baker of the Chestertown Police Department; and Queen Anne’s County State’s Attorney Lance G. Richardson.

The four count indictment alleges that Welch is a previously convicted felon and therefore is prohibited from possessing firearms. According to the indictment, between January 29, 2011 and January 31, 2014, Sutton obtained six firearms for Welch through private sellers and through “straw purchases” by Sutton from a federally licensed firearms dealer. A “straw purchase” occurs when an individual, who is ineligible to lawfully purchase a firearm, such as a previously convicted felon, solicits another to conduct the transaction. As part of the purchase, the middleman-buyer must complete the ATF Form 4473, which notifies the buyer that such purchases are unlawful. On the first page of the form, the buyer is asked: “Are 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.

Specifically, the indictment alleges that on January 29, 2011, Welch and Sutton visited four ATMs in Stevensville, Maryland, near a federally licensed firearms dealer, and Welch withdrew approximately $1,700 in cash. Welch and Sutton then went to the firearms dealer and selected firearms for Sutton to purchase for Welch. Sutton purchased a Smith & Wesson MP5-22, a Mossberg Persuada 500, and a Century Arms SKS. Sutton completed Form 4473 indicating the he was the actual buyer of the firearms and was not acquiring the firearms for another person. On February 1, 2011, Sutton picked up the guns, which he then transferred to Welch. According to the indictment, on February 11, 2011, Sutton purchased a Marlin rifle from the firearms dealer, again completing the Form 4473 and falsely indicting that he was buying the gun for himself. In 2012, Sutton acquired a Remington Arms 597 and a Ruger Single Six, both .22 caliber, through private purchases. The indictment alleges those guns were subsequently possessed by Welch.

The defendants face a maximum sentence of five years in prison for the conspiracy and Welch faces a maximum penalty of 10 years in prison for each of three counts of being a felon in possession for a firearm. An initial appearance has been scheduled for Sutton on November 7, 2014 in U.S. District Court in Baltimore. No court appearance has been scheduled for Welch, who is currently in state custody on unrelated charges.

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

United States Attorney Rod J. Rosenstein praised the FBI, Queen Anne’s County Sheriff’s Office, Chestertown Police Department and the Queen Anne’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Zachary A. Myers, who is prosecuting the case.

Baltimore, Maryland – A federal grand jury has indicted Benjamin Bland, age 39, of Glen Allen, Virginia; Michael Westbrook age 36; and Anthony Simpson, age 43, both of Baltimore, on charges arising from a scheme to allow individuals with poor credit histories and criminal records to obtain money and property using misappropriated social security numbers and fraudulently established credit histories. The second superseding indictment, which was returned on October 14, 2014 and unsealed late yesterday, adds Bland as a defendant and seeks the forfeiture of at least $2.5 million and luxury vehicles.

The second superseding indictment was 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).

Bland owned New Credit History, a company headquartered in Richmond, Virginia that hosts a website and purports to provide individuals with new credit through the issuance of a “secondary credit number.” Westbrook owned The Westbrook Project, a home renovation company incorporated in Maryland.

According to the 17 count indictment, from February 2012 to October 2014, the defendants obtained social security numbers previously issued to other persons and sold the misappropriated social security numbers by email and cell phone text messaging to individuals. The defendants provided these individuals with counterfeit social security cards and driver’s licenses with materially false information that would link the user to the misappropriated social security numbers. The defendants instructed the individuals to submit false credit applications to commercial lenders and retailers to generate improved credit scores, and to prepare and submit false loan applications to lenders to receive money and property.

The indictment charges Westbrook with acquiring fraudulent credit accounts for his clients and himself to enhance their fraudulent credit histories.

The defendants face a maximum sentence of 30 years in prison for conspiring to commit wire fraud and for each of four counts of wire fraud; five years in prison on each of five counts for social security fraud; and a mandatory minimum of two years in prison consecutive to any other sentence on each of seven counts for aggravated identity theft. An initial appearance and arraignment for Bland was held on October 21, 2104, in U.S. District Court in Baltimore. Bland was released under the supervision of U.S. Pretrial Services. No court appearance has been scheduled for Westbrook and Simpson, who were arrested previously and remain released under the supervision of U.S. Pretrial Services.

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

Co-defendant Donneltric Johnson, age 36, of Baltimore, previously pleaded guilty to conspiracy to commit wire fraud for his role in the scheme and is scheduled to be sentenced on December 5, 2014, at 9:30 a.m.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

United States Attorney Rod J. Rosenstein commended the HSI Baltimore for its work in the investigation. Mr. Rosenstein praised the HSI Richmond, Virginia; Baltimore and Anne Arundel Counties Police Departments; Henrico County, Virginia Police Department; the Eastern District of Virginia United States Attorney’s Office; U.S. Secret Service Richmond Field Office; and the Internal Revenue Service – Criminal Investigation, Richmond, for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.

Greenbelt, Maryland – Benjamin K. Bray, age 30, of Davidsonville, Maryland, pleaded guilty on October 21, 2014, to conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to being a felon in possession of an explosive device.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Deputy Fire Chief Scott K. Hoglander, Acting Fire Chief for Prince George’s County Fire/EMS.

According to Bray’s plea agreement, from at least January 2011 through December 2012, Bray conspired with John Frank Jenkins and others to distribute oxycodone. Bray and his co-conspirators presented forged prescriptions for oxycodone pills to different pharmacies approximately twice a week from the spring of 2011 through the summer of 2012. Bray and his co-conspirators consumed some of the pills and sold the rest. During the conspiracy, Bray began to use and distribute heroin as a cheaper substitute for the oxycodone, selling heroin to pay for the heroin he used.

In November 2012, Jenkins refused to sell oxycodone to one of his drug customers, resulting in an argument. After the argument, Jenkins built two pipe bombs, which he intended to use to blow up the drug customer’s vehicle. Bray supplied the black powder for the pipe bombs. Another drug customer owed Jenkins $50 for oxycodone that Jenkins had supplied to the customer in June 2012. On December 18, 2012, Bray and Jenkins were out of heroin and needed money to purchase heroin. As a result, Jenkins contacted the customer and attempted unsuccessfully to collect the debt. After the call ended, Bray and Jenkins carried one of the pipe bombs to the home of the customer who owed Jenkins money. Bray placed the pipe bomb on the front porch and lit the fuse. The bomb exploded, damaging the front door. The drug customer was sleeping in the bedroom adjacent to the door at the time of the explosion.

Bray and the government have agreed that if the Court accepts the plea, Bray will be sentenced to 96 months in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for January 12, 2015, at 9:00 a.m.

John Frank Jenkins, age 30, of College Park, Maryland, was previously sentenced to 121 months in prison, followed by 14 months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to 10 years in prison for making an explosive device and being a felon in possession of an explosive device. The sentences are to be served concurrently. Judge Grimm also ordered Jenkins to pay restitution of $475.

United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Leonard Benjamin, age 30, of Bowie, Maryland today to 19 years in prison followed by five years of supervised release for conspiring to distribute a kilogram or more of heroin. Judge Bennett also entered an order that Benjamin forfeit $39,387 seized on February 7, 2014.

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; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.

According to his plea agreement, from no later than 2013, Benjamin was an organizer and leader of a conspiracy to distribute heroin in the Baltimore area. Benjamin had others operate stash houses for him in the Baltimore area. Benjamin planned trips to New York City to buy heroin. Benjamin gave the heroin to couriers in New York who drove the heroin back to Baltimore.

For example, on October 20, 2013, Benjamin arranged with a courier to drive to New York, where Benjamin planned to acquire heroin. Law enforcement agents saw Benjamin provide heroin to the courier in New York. The courier then left New York and returned to Maryland.

The Maryland State Police, in conjunction with the DEA investigation, stopped the courier in Cecil County, Maryland on the return trip. MSP troopers searched the courier’s vehicle and seized more than 400 grams of heroin.

Thereafter, Benjamin continued to engage in drug-trafficking activities. Investigators overheard Benjamin regularly make drug deals by phone; arrange new supplies of heroin; and instruct others to receive, store or distribute heroin to customers. Benjamin made several calls to a co-conspirator who operated a stash house location at Benjamin’s direction.

On February 7, 2014, investigators executed a search warrant at one of the stash houses and recovered more than 600 grams of heroin. During a search of other locations, investigators seized cash, including $39,387 from Benjamin’s home.

United States Attorney Rod J. Rosenstein praised the DEA, Baltimore City State’s Attorney’s Office Major Investigation Unit, Baltimore Police Department, and Maryland State Police for their work in the investigation, and recognized the Cecil County State’s Attorney’s Office for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Joshua Payne, age 21, of Mount Airy, Maryland, today to 164 months in prison followed by three years of supervised release on four counts of robbery and one count of using a firearm during a robbery.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Carroll County Sherriff Ken Tregoning; Frederick County Sheriff Charles A. AChuck@ Jenkins; Chief Gary Gardner of the Howard County Police Department; Carroll County State’s Attorney Jerry Barnes; Frederick County State’s Attorney J. Charles Smith; and Howard County State’s Attorney Dario Broccolino.

According to his plea agreement, from November 27 to December 1, 2013, Payne pointed a handgun - which he stole from his brother - at the cashiers of the following gas stations in Maryland: Shell gas station, 649 Lakeview Drive, Mount Airy; High’s gas station, 6700 Sykesville Road, Eldersburg; and BP gas station, 15882 Frederick Road, Lisbon. He stole hundreds of dollars from the cash registers.

On December 6, Payne returned to the Shell gas station on Lakeview Drive in Mount Airy, and threatened the cashier with a long kitchen knife, taking approximately $690 from the register.

Payne also admits that on November 29, 2013, he pointed a gun at a driver of a car and stole the car, along with the owner’s two cell phones.

United States Attorney Rod J. Rosenstein commended the FBI, the Carroll and Frederick County Sheriff’s Offices, Howard County Police Department, and the Carroll, Frederick and Howard County State’s Attorney=s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Scott A. Lemmon and Bonnie S. Greenberg, who prosecuted the case.

Baltimore, Maryland – Reginald Jones, age 26, of Bronx, New York, pleaded guilty today to conspiring to distribute and possess with intent to distribute heroin. Co-defendant Jeffrey Michael Anderson, age 35, of Upper Marlboro, Maryland, pleaded guilty yesterday to conspiring to distribute and possess with intent to distribute one kilogram or more of heroin. On October 20, 2014, co-defendants William Ulysses Robinson, age 38, of Grasonville, Maryland and Shawn Christopher Malley, age 25, of Crofton, Maryland, pleaded guilty to the conspiracy.

The guilty pleas 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); Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; and Hagerstown Police Chief Mark Holtzman.

According to their plea agreements, beginning as early as September 2013, Anderson and Jones worked with Rahdel Sharbaan to obtain bulk quantities of heroin from sources in New York and transport that heroin to Maryland for further distribution. Anderson would either travel to New York himself, or have Sharbaan and Jones bring the heroin and cutting agent to him in Maryland via commercial bus. With Malley’s assistance, Anderson used stash locations to store and cut the heroin, including a storage unit in Gambrills, Maryland, and Malley’s home. Once diluted, Anderson sold the heroin in bulk to several Maryland-based dealers who in turn sold to other dealers and end users. Robinson obtained drugs from Anderson which he distributed in street-level quantities. Jones used the drug proceeds from Anderson to pay the source in New York.

On May 15, 2014, investigators executed search warrants, seizing: 40.1 grams of heroin, cutting agents, packaging materials and paraphernalia from the storage unit; 49 grams of heroin from Anderson’s vehicle; and $2,957, drugs, multiple cell phones and digital scales from Malley’s home.

Anderson admitted that he agreed to distribute at least one kilogram of heroin.

Jones faces a maximum sentence of 40 years in prison for the conspiracy.

Anderson and the government have agreed that if the Court accepts his plea agreement, Anderson will be sentenced to 192 months in prison followed by five years of supervised release.

Malley and the government have agreed that if the Court accepts his plea agreement, Malley will be sentenced to either 96 or 60 months in prison, depending on whether he is found to be a career offender, followed by four years of supervised release.

Robinson and the government have agreed that if the Court accepts his plea agreement, Robinson will be sentenced to 72 months in prison followed by four years of supervised release.

U.S. District Judge Richard D. Bennett has scheduled sentencing for Robinson and Malley on January 6 and 7, 2015; Anderson on January 30, 2015; and Jones on January 9, 2015.

Rahdel Sharbaan, age 31, of Bronx, New York, and Gary Barham, age 52, of Easton, Maryland, previously pleaded guilty to the conspiracy. Barham is scheduled to be sentenced on November 17, 2014 at 3:00 p.m. and Sharbaan on January 8, 2015, at 3:00 p.m.

United States Attorney Rod J. Rosenstein praised HSI-Baltimore, DEA, Frederick County Sheriff’s Office, Maryland State Police, Washington County Sheriff’s Office and Hagerstown Police Department for their work in the investigation and recognized the Maryland Natural Resources Police, St. Michael’s Police Department, Easton Police Department, Ocean City Police Department and Talbot County Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting the case.

Stole Money Intended for Research Conducted at the
National Institute for Drug Abuse Facilities in Baltimore

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jason Dietz, age 34, of Timonium, Maryland, today to 18 months in prison, followed by three years of supervised release, for theft of funds from a federal program, in connection with the theft of $683,705 in grant money from the National Institute for Drug Abuse for research conducted at its facilities in Baltimore. Chief Judge Blake also ordered Dietz to pay restitution of $683,705.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.

The National Institute for Drug Abuse (“NIDA”) is part of the National Institutes of Health and is located at Johns Hopkins Bayview Center in Baltimore. NIDA also operates the Archway Treatment Clinic, also in Baltimore. NIDA and its grantees conduct research on the science of addiction and treatment and publish that research in scientific and medical peer-reviewed journals. For each of the years 2006-2013, NIDA conducted from 26 – 31 studies at Bayview and the Archway Clinic.

According to Dietz’s plea agreement, from 2006 until June 2013, Dietz worked for Matthews Media Group (MMG), which was contracted by NIDA to recruit, screen, and compensate participants in NIDA’s clinical research studies conducted at Bayview and Archway. Dietz’ job was to compensate study participants, typically with cash or gift cards, obtain receipts from study participants, and keep a spreadsheet of participants’ compensation with supporting documentation—chiefly signed receipts from the study participants. Dietz was a signatory on an MMG bank account from which he withdrew cash to pay study participants; in addition, he provided cash to Archway Clinic for the clinic employees to pay study participants. MMG invoiced NIDA each month and included in its invoice amounts taken directly from the spreadsheet prepared by Dietz.

Dietz admitted that, beginning in 2007, he embezzled funds from MMG in several ways. For example, Dietz paid study participants and obtained a signed receipt from them, then logged a higher amount on the spreadsheet and pocketed the difference between the two amounts. In addition, Dietz created fictitious receipt numbers and amounts which he placed on his spreadsheet, then pocketed all the cash from these fictitious payments. Finally, Dietz listed on his spreadsheet higher amounts than were actually paid to Archway Clinic employees for them to pay Archway participants and pocketed the difference.

In 2013, MMG was responding to questions from NIDA employees when discrepancies were discovered between the signed receipts and Dietz’ spreadsheet. MMG then conducted an audit that looked at every entry on every spreadsheet which was used to bill NIDA and the back-up documentation. For the time period October 2006 through May 2013, the MMG auditor found that Dietz overstated the expenses on the spreadsheet compared to the actual receipts by $571,205, and that he deposited $586,083 into his personal bank account during that same time period. In addition, the MMG auditors discovered that Dietz had cashed $112,500 in checks from the MMG bank account on which Dietz was a signatory and that the funds were unaccounted for. Dietz admitted that in addition to depositing embezzled funds into his personal bank account, he also embezzled cash that he spent.

United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.

“The Sentence Fits the Crime”

Baltimore, Maryland - U.S. District Judge J. Frederick Motz today sentenced Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Selbyville, Delaware to 15 years in prison followed, by three years of supervised release, on charges of wire fraud conspiracy, wire fraud and tax evasion. Judge Motz also entered an order that Belzner pay $19.805 million in restitution.

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 Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“This lengthy sentence fits the crime," said U.S. Attorney Rod J. Rosenstein. "This was a longstanding and complex fraud scheme perpetrated by experienced con artists.”

According to Belzner’s plea agreement and court documents, from the fall of 2009 through August 2011, Belzner, a home builder, worked for a real estate development business known as the McCloskey Group, which was owned by another home builder named Brian McCloskey. During that time, Belzner conspired with McCloskey; Kevin Sniffen, a Maryland title company attorney; Mervyn Phelan, who held the title of “Senior Underwriter” with a California loan brokerage company named IAG; and Gregory Grantham, a California attorney who was the legal counsel of IAG, to defraud investors through a fraudulent investment scheme.

Specifically, Belzner and the conspirators advised wealthy individuals and investment advisers that in order for the McCloskey Group to obtain large loans for various real estate projects through IAG, it was necessary for the McCloskey Group to deposit substantial sums of money in an escrow bank account to establish that it had cash reserves or “liquidity.” Belzner and his co-conspirators, including Phelan and Grantham, further represented to potential lenders that it was acceptable for the McCloskey Group to borrow these funds. They also represented that the funds would be maintained under the control of Sniffen, a licensed attorney and escrow agent; would not be used for any other purpose; and that the money would be returned to the investor, either upon the funding of the loan or after a specified (and usually relatively short) period of time if the loan did not fund by the expected date. In return for this temporary use of the investor's funds, Belzner and McCloskey promised to pay potential lenders substantial fees or interest.

Contrary to these representations, Belzner admitted that he instead directed McCloskey to remove the investors’ funds soon after they had been deposited into the escrow account. Belzner and McCloskey then used the stolen funds to pay for their personal and business expenses, as well as to make partial repayments to earlier lenders, to pay fees to some of the victim investors to keep them from demanding the return of their money, and to pay IAG for its supposed work and expenses in attempting to locate financing sources. Belzner also directed McCloskey and others to use some of the stolen escrow funds to make payments to other individuals from whom Belzner alone had borrowed money in the past.

Belzner and his co-conspirators attempted to conceal the fraud by providing lenders with false bank statements reflecting that the funds received were still being held in the escrow account; falsely representing in emails and in telephone conversations that the funding of the loans sought by the McCloskey Group and the return of the lenders’ funds was imminent; or by making “extension” payments to lenders in return for being allowed to hold their funds for a longer period than originally promised. Belzner also wrote scripts for other conspirators to use in telephone conversations or written or email communications with the escrow account lenders and their counsel in order to lull them into believing that their funds were safe and would be returned to them as promised.

The court determined today that Belzner and his conspirators' fraudulent scheme caused losses in excess of $19.805 million to more than 26 victim investors.

“Many people think financial crime is victimless, but this case proves that is simply not true. What makes this investigation particularly disturbing is that Mr. Belzner manipulated, lied to and stole from his friends and next-door neighbors. He took money from hardworking, trusting people and then heartlessly flaunted his theft in front of his victims,” stated Steve Vogt, FBI Special Agent in Charge of the Baltimore Division. “Mr. Belzner has shown no remorse for his crimes, and deserves to sit in prison reflecting on what his own greed cost his family and friends.”

Belzner also pleaded guilty to evasion of assessed tax payments. In 1995, 1996 and 1998, Belzner stole $1,111,304.78 from his employer at the time, and in 1998, he stole $186,146.71 from another employer, none of which he reported as income on his tax returns for those years. A subsequent IRS audit of those tax years resulted in the assessment of additional taxes, interest and penalties against Belzner of $1,150,935.25 for the 1995 and 1996 tax years and $246,424.50 for the 1998 and 1999 tax years.

To avoid paying those taxes, Belzner admitted that between January 2006 and June 2011, he intentionally concealed income and assets from the IRS and made no payments on his tax debt. For example, Belzner placed his residences, other real estate and automobiles in the names of corporations that he formed. Belzner paid his personal expenses, including his mortgage, ground rent for a vacation home, construction costs on a house that he built, car payments, Ravens season tickets, and private school tuition from bank accounts he opened in the names of the corporations or from payments out of McCloskey Group accounts. Belzner used individuals to act as “straw purchasers” for property that he acquired and to conduct financial and other transactions on his behalf. At Belzner’s direction, McCloskey Group employees and others also cashed more than $175,870 in company checks made payable to them, returning the cash to Belzner or using the cash to pay Belzner's creditors. Belzner also arranged for the McCloskey Group to pay many of his personal living expenses, rather than issuing him salary checks. For example, between January 2009 and June 2011, the McCloskey Group paid more than $1.5 million of Belzner’s personal expenses, including health and life insurance premiums, car, personal loan and mortgage payments, and utility and cable bills. In February 2006 and again in January 2009, Belzner submitted forms to the IRS falsely claiming that he did not have sufficient income to make any payments on the assessed back taxes, penalties and interest. The total amount of assessed tax, interest and penalties owed by Belzner as of August 2013 was $2,619,870.

"Throughout a decade of deceit, Patrick Belzner not only defrauded his investors, but also the American tax system, said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Motivated by pure greed, Belzner created an elaborate scheme to hide his stolen funds and evade paying his tax liability. In cooperation with our federal partners, IRS-CI is committed to holding thieves, such as Belzner, accountable for their misdeeds."

Brian McCloskey, age 44, of Baltimore; Kevin Sniffen, age 53, of Phoenix, Maryland; Mervyn A. Phelan, Sr., age 74, of Newport Beach, California; and Gregory E. Grantham, age 57, of Oceanside, California, have each pleaded guilty to their roles in the conspiracy. In addition, Sean Krondak, of Irvine, California, another IAG employee, has pled guilty to a charge of obstruction of justice arising out of IAG’s destruction of incriminating emails in response to a federal grand jury subpoena. Grantham and Phelan are respectively scheduled to be sentenced on November 14, 2014 and December 5, 2014, while Krondak and McCloskey are both scheduled to be sentenced on December 12, 2014. Sniffen is scheduled to be sentenced on December 19, 2014.

Today’s announcement is part of efforts undertaken by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

United States Attorney Rod J. Rosenstein praised the FBI and IRS – Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Jefferson M. Gray and Kathleen O. Gavin, who prosecuted the case.

Robbed Businesses in Maryland, Virginia, West Virginia and Pennsylvania

Baltimore, Maryland – Carl Paschall, Sr., age 54, of Halethorpe, pleaded guilty today to conspiring to commit bank burglary and arson of property used in interstate commerce.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief Gary Gardner of the Howard County Police Department; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to his plea agreement, from at least November 2010 until his arrest in July 2013, Carl Paschall, Sr. was the leader of a group that included his son, Carl Paschall Jr., Chad Paschall, Thomas Ellis, and Michael Johnson, who conspired to commit commercial burglaries in Maryland, Virginia, West Virginia, and Pennsylvania. Paschall, Sr. also conspired with defendants in a related case, David Paschall, Jr., Mark Johnson, Ronald Henderson and others, to commit the robberies. The conspirators stole 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 during the night. 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, chop saws, 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.

Carl Paschall, Sr. admitted that he committed, or attempted to commit, dozens of commercial burglaries and that the loss resulting from these burglaries exceeded $800,000.

On May 26, 2012, Carl Paschall, Sr. and his son, Carl Paschall, Jr. stole a white 2012 Ford E250 panel van from a rental car office in Martinsburg, West Virginia, which they used during three commercial burglaries committed on May 26th and 27th at businesses in West Virginia. On May 31, 2012, the conspirators drove the van to Newport Road in Woodbine, Maryland and parked the vehicle on the side of the road. The conspirators left some evidence of their crimes inside the stolen van, including stolen safes and lottery tickets. The applied an ignitable fluid inside the vehicle and set it on fire. Early in the morning on June 1, 2012, Howard County Fire and Rescue Department responded to the scene and encountered the van fully engulfed in flames. After extinguishing the fire, the remaining contents of the van were preserved for law enforcement.

Carl Paschall, Sr. and the government have agreed that if the Court accepts his plea, Paschall, Sr. will be sentenced to 66 months in prison. As part of his plea agreement, Paschall, Sr. will be required to pay restitution in the full amount of the victim’s losses and to forfeit $200,000. U.S. District Judge J. Frederick Motz has scheduled Paschall’s sentencing for December 1, 2015, at 10:30 a.m.

Carl Paschall, Jr., age 32, of Baltimore, previously pleaded guilty and was sentenced to 66 months in prison and was ordered to pay restitution of $200,000. Chad Paschall, age 28, of Baltimore; David Paschall, Jr., age 55, of Catonsville, Maryland; Mark Johnson, age 51, of Baltimore; Ronald Henderson, age 52, of Pasadena, Maryland; Thomas Daniel Ellis, age 24, and Michael Johnson, age 25, both of Baltimore, also pleaded guilty to their participation in the conspiracy. All are awaiting sentencing except Ellis and Michael Johnson, who was sentenced to a year and a day in prison and three years of probation, respectively.

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 are prosecuting this case.

Sought to Fabricate an Infrared Detector for Night Vision, Missile Detection and other Military Applications

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Zhenchun Huang, a/k/a Ted Huang, age 51, a Chinese national and naturalized U.S. citizen, formerly residing in Clarksville, Maryland, today to 15 months in prison, followed by three years of supervised release, for false personation of a federal employee and obstruction of justice, in connection with a scheme to fraudulently obtain technology products from U.S. companies for export to China.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Rick Shimon, Special Agent in Charge, U. S. Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement.

According to his plea agreement, Huang worked as a contract scientist at the National Aeronautics and Space Administration’s (NASA) Goddard Space Flight Center in Greenbelt from February 1995 to June 2001. Thereafter, he consulted on a limited basis until October 2003 to provide as-needed assistance on a specific Goddard project.

In April 2001, Huang incorporated Allray in Maryland for the stated purpose of forming joint ventures with Chinese governmental and private entities to research, develop and distribute telecommunication and information technology products. Though Allray’s principal place of business was listed as Huang’s place of residence, its base of operations was located in China.

During the latter part of 2003 and into early 2004, in an effort to obtain technological components for use by Allray, Huang falsely represented to three U.S. companies that he was employed by NASA and was working on a joint project between NASA and Allray. No such joint project existed. The components which Huang sought included cadmium zinc telluride (CZT) and mercury cadmium telluride (MCT) wafers, considered dual-use technology subject to U.S. export controls. These products were unrelated to Huang’s former work at NASA.

In order to make it appear as though NASA was involved in procuring these products, Huang directed that purchased items be shipped to an associate employed at Goddard; used a Goddard email account to communicate with the companies and subsequently redirect emails to his personal email account; faxed (or had faxed) a purchase order from a number associated with Goddard; and presented his former business card to companies that identified him as a contract employee of NASA/Goddard.

In late October 2003, as a result of his false representations, Huang obtained five CZT wafers from Company 1 and four silicon wafers from Company 2. Huang directed his associate working at Goddard to ship two of the CZT wafers to Company 2 so it could apply a specific growth process to add a layer of MCT to the wafers. Huang also directed his associate to buy 10 additional CZT wafers for $10,620 from Company 3.

Company 3 subsequently determined that Allray was a Chinese company headed by Huang, and that the shipping/billing address provided for the purchase was a residential address. Accordingly, Company 3 did not sell the CZT wafers, and the MCT wafers were never manufactured. If successful, the MCT growth process requested by Huang would have fabricated a type of infrared detector suitable for military applications, such as night vision and missile detection, that would have been controlled for export to China. The 10 CZT wafers sought from Company 3 were similarly controlled for export.

In the fall of 2005, Huang entered into an agreement with company X, which was co-founded by his associate, to build a prototype ultraviolet non-line-of-sight communications system for Allray. From December 2005 to April 2006 and in connection with its agreement with Huang, company X purchased 34 ultraviolet light emitting diodes (UV/LEDs) from Company 6, at a total cost of $3,556. The technical specifications of the purchased UV/LEDs, and the manner in which they were to be used, suggested an application more consistent with a covert communications device. In early May 2006, the associate demonstrated to Huang a prototype of the device being built for Allray. At that time, Huang was given two of the diodes obtained from Company 6.

On May 8, 2006, U.S. Customs officials at O’Hare International Airport in Chicago inspected Huang and his luggage just prior to his outbound flight to China. Two of the UV/LEDs purchased from Company 6 were found in Huang’s luggage. Huang made false statements regarding who had given him the diodes, what they were worth, what company had manufactured them, and how they would be used in China. He also provided false information regarding the technical specifications of the diodes.

Huang subsequently directed his wife not speak to, or ask, anyone about what had happened at the airport; to say she did not know anything if questioned; to throw away the box that had originally contained the UV/LEDS found in his luggage; and to clean out their residence. In response, his wife threw away the UV/LED box and certain Allray documents in their home. She deleted all Allray-related files from their home computer, but saved certain Allray files on a thumb drive. The government recovered some of the documents, including identifying and financial information for Allray’s investors in the United States, Allray’s IPO plan, a 2006 PowerPoint presentation charting Allray’s accomplishments in China, and an article on a short-range, non-line-of-sight ultraviolet communication device.

Upon learning of the government’s investigation of the scheme, Huang fled to China and was a fugitive until his arrest in London in December, 2013. Feng Yan, age 46, formerly of Ellicott City, Maryland, was also charged by indictment for his alleged participation in the scheme and is currently a fugitive.

United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore and Department of Commerce for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christine Manuelian, who is prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Travis Gaines, age 34, of Baltimore, Maryland, today to 130 months in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine. Judge Blake also found that Gaines is a career offender based on previous narcotics convictions.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

According their plea agreements, Gaines and Bolden conspired with Shawn Malone, Karl McDonald and others to obtain cocaine from sources of supply in Arizona and Texas and to distribute those drugs in Baltimore. Once the cocaine arrived in Baltimore, it would be distributed to Gaines and other wholesale customers who would redistribute it to their customers. McDonald converted the powder cocaine to crack cocaine for street level distribution and operated a distribution shop in Baltimore where the crack cocaine was sold. During the course of the investigation DEA intercepted the telephone and electronic communications of several members of the conspiracy. In addition, as a result of several search warrants executed on June 6, 2013, the DEA recovered approximately 250 grams of cocaine, as well as packaged cocaine, from the main stash house of the organization.

Gaines and Bolden admitted that as part of the conspiracy they were responsible for the distribution of between five and 15 kilograms of cocaine.

On August 14, 2014, U.S. District Judge William D. Quarles, Jr. sentenced Gaines to 151 months in prison, but vacated the sentence a few days later and the case was reassigned to Chief Judge Blake.

Karl McDonald, age 30, and Antoine Bolden, age 37, both of Baltimore, pleaded guilty to their roles in the conspiracy and were sentenced to 151 months and 84 months in prison, respectively. Shawn Malone, age 31, of Baltimore, pleaded guilty to his role in the drug distribution conspiracy and is awaiting sentencing.

United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Hassan Hammoud, age 60, of Dundalk, Maryland, today to 63 months in prison, followed by three years of supervised release, for conspiring to destroy a conspirator’s Maryland home by fire to collect $3 million in insurance proceeds. Judge Bennett entered an order requiring Hammoud to pay restitution of $828,773.

The sentence 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 Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to his plea agreement, co-conspirator Saleh Fakhoury owned a home in Lutherville Maryland. Hammoud worked for Fakhoury at Alfeo’s, a pizza restaurant owned by Fakhoury. In 2007, Fakhoury bought a second home in Florida. By March 2009, Fakhoury owed over $200,000 to credit card companies, utilities and other service providers, as well as over $1.7 million to banks for the mortgages on the properties he owned.

Fakhoury and Hammoud schemed to destroy Fakhoury’s home in Lutherville by arson. Fakhoury intended to collect the insurance and pay off his debts. Fakhoury agreed to pay Hammoud $20,000 to set his home on fire. The two agreed that when the insurance company paid Fakhoury, Fakhoury would pay $50,000 for having his house set on fire, and the money would be sent overseas. Hammoud purportedly hired others to set the fire.

On March 12 or 13, 2009, a fire was deliberately set at the Lutherville home. The fire self-extinguished and minimal damage was sustained. On March 14, 2009, a second fire was deliberately set using paint thinner. The home was completely destroyed. Fakhoury paid Hammoud the agreed upon $20,000 to have the house set on fire.

In September 2009, Fakhoury executed a sworn proof of loss to collect $3,155,197 in insurance. The loss statement was false, in that it claimed items were destroyed or damaged in the fire when, in fact, the items were not consumed in the fire, and the fire was intentionally set. The insurance company denied the claim but paid $828,773 to the mortgagor of the Maryland home. On December 2, 2011, Fakhoury filed a civil action against the insurance company in an effort to recover monies under the insurance policy, and claim over $3 million in compensatory damages.

Saleh H. Fakhoury, age 49, formerly of Lutherville, Maryland, previously pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on January 7, 2015 at 10:00 a.m. As part of his plea agreement, Fakhoury has agreed to dismiss the civil lawsuit he filed.

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore County Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Judson T. Mihok, who prosecuted the case.

Violated His Supervised Release From a Previous Bank Robbery Conviction

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Antonio Rennard Gilliam, age 43, of Baltimore, today to 135 months in prison followed by three years of supervised release for a commercial robbery and for violating his supervised release from a previous bank robbery conviction.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.

According to his plea agreement, on August 19, 2013, Gilliam robbed a cell phone store in the 800 block of Taylor Avenue in Towson. Gilliam told a store clerk that he wanted to switch his phone service. Gilliam lingered in the store until there were no other customers, then approached the cash register with his hand in his pocket, as if he were carrying a handgun. Gilliam leaned over the register counter and yelled at a store employee demanding all the money from the register. Gilliam took approximately $300 from the store, then ordered the store clerk to the back of the store and ordered another employee to go outside. Gilliam then ran away.

A short time later, Baltimore County Police officers responding to the robbery saw Gilliam, who matched the description of the robber, at a nearby intersection. They ordered Gilliam to stop, but he ran into a wooded area on the south side of Goucher Boulevard. Gilliam was found hiding in the woods and arrested. During a subsequent interview with police, Gilliam admitted robbing the cellular telephone store, as well as robbing a swimwear business in Towsontown Mall on August 15, 2013, taking about $300. Gilliam denied having a gun during either robbery.

United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, Jr., who prosecuted the case.

Violated His Supervised Release From a Previous Bank Robbery Conviction

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Antonio Rennard Gilliam, age 43, of Baltimore, today to 135 months in prison followed by three years of supervised release for a commercial robbery and for violating his supervised release from a previous bank robbery conviction.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.

According to his plea agreement, on August 19, 2013, Gilliam robbed a cell phone store in the 800 block of Taylor Avenue in Towson. Gilliam told a store clerk that he wanted to switch his phone service. Gilliam lingered in the store until there were no other customers, then approached the cash register with his hand in his pocket, as if he were carrying a handgun. Gilliam leaned over the register counter and yelled at a store employee demanding all the money from the register. Gilliam took approximately $300 from the store, then ordered the store clerk to the back of the store and ordered another employee to go outside. Gilliam then ran away.

A short time later, Baltimore County Police officers responding to the robbery saw Gilliam, who matched the description of the robber, at a nearby intersection. They ordered Gilliam to stop, but he ran into a wooded area on the south side of Goucher Boulevard. Gilliam was found hiding in the woods and arrested. During a subsequent interview with police, Gilliam admitted robbing the cellular telephone store, as well as robbing a swimwear business in Towsontown Mall on August 15, 2013, taking about $300. Gilliam denied having a gun during either robbery.

United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, Jr., who prosecuted the case.

Baltimore, Maryland –U.S. District Judge George L. Russell III sentenced Robert Fitzgerald, age 35, of Baltimore, today to 130 months in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition, and possession with intent to distribute heroin and marijuana.

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

According to court documents, on October 16, 2012, Baltimore Police detectives executed a search warrant at Fitzgerald’s residence and seized 44 zip lock bags containing heroin, packaging material and other drug paraphernalia, a digital scale, 36 zip lock bags containing marijuana, a food saver clear plastic bag with marijuana, $1,284, a loaded .32 caliber revolver, a .22 revolver and a box of ammunition with .32 caliber rounds.

Fitzgerald had previously been convicted of a felony and was prohibited from possessing a firearm and ammunition.

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

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Kevin Gerard Wyche, age 27, of Baltimore, today to 10 years in prison followed by three years of supervised release for possession with intent to distribute cocaine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge 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 Gregg L. Bernstein.

According to his plea agreement, on June 26, 2013, Baltimore City Police officers executed a search warrant at Wyche’s residence for evidence of narcotics trafficking. Police recovered four plastic bags containing a total of 100.79 grams of cocaine; a plastic bag containing 10.44 grams of marijuana; drug paraphernalia; and a bag containing over 115 rounds of ammunition, all which were hidden in the ceiling of the basement between the floor joists. Law enforcement also recovered computers, cell phones, and drug packaging material from the front basement bedroom where Wyche was staying. During a taped interview with police, Wyche admitted that the drugs and ammunition belonged to him. Wyche had previously been convicted of a felony and was prohibited from possessing a gun or ammunition.

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

82 Kilograms of Cocaine Having a Street Value of $8.2 Million Seized During the Investigation

Baltimore, Maryland - A federal grand jury has indicted nine defendants – seven men and two women – who are alleged to be members of the Jenifer drug trafficking organization (Jenifer DTO) for conspiring to distribute kilograms of cocaine in the Baltimore metropolitan and Woodbridge, Virginia areas. The indictment seeks the forfeiture of $15 million. The indictment was returned on September 3, 2014 and unsealed on October 9, 2014 upon the arrests of defendants.

The search warrant affidavit was unsealed today after the execution of 25 search warrants. During the searches, law enforcement recovered 27 kilograms of cocaine with a street value of $3 million; several hundred thousand dollars in cash recovered from the residences of some of the defendants; over $2 million in jewelry, including a 16 carat diamond ring; and luxury vehicles.

“The indictment and affidavit describe how drug organizations transport cocaine to Baltimore and move cash out of the city by relying on a network of suppliers, couriers, distributors, dealers and money launderers, and by using vehicles with hidden compartments,” said U.S. Attorney Rod J. Rosenstein. “The affidavit also explains how law enforcement agents catch drug dealers by using physical and electronic surveillance, wiretaps and cell phone data.”

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.

The arrests and searches were the result of coordinated operations by the DEA, IRS – Criminal Investigation, Baltimore City Police Department and Baltimore County Police Department, with the assistance of agents from the U.S. Marshals Service and the Bureau of Alcohol, Tobacco and Firearms.

The indictment charges the following defendants, all of whom are presently in federal custody:

Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 43, of
Bowie, Maryland; Tyrone Allen, age 42, of Bel Air, Maryland; Brooke Renee Lunn, a/k/a “Brooke Thomas,” and “Brooke Renee,” age 48, of Baltimore; Tracy Muse, a/k/a “Kimberly Scott,” age 41, of Pearland, Texas; Thomas Simmons, age 37, of Hampton, Virginia; Andre Brewer, age 35, of Elkridge, Maryland; Michael Williams, age 40, of Baltimore; Kermit Clark, age 44, of Baltimore; and
William Hegie, age 54, of Baltimore.

All of the defendants were arrested last week Thursday, October 9, 2014, except for Michael Williams who turned himself in on Friday, October 10th.

According to an affidavit in support of search warrants, law enforcement started investigating the Jenifer DTO in March 2013. The Jenifer DTO is a Baltimore-based drug trafficking and money-laundering organization with ties to Houston, Texas; Staten Island, New York; and Woodbridge, Virginia.

From September 2012 to September 2014, the Jenifer DTO allegedly obtained kilogram-quantities of cocaine from Houston and distributed the cocaine throughout the Baltimore area and in Woodbridge, Virginia.

"The arrest of these alleged Drug Trafficking Organization (DTO) members emphasizes the proactive work that the Drug Enforcement Administration and our law enforcement partners undertake every day to stop the flow of drugs from entering the Baltimore metropolitan area,” stated Gary Tuggle, Assistant Special Agent in Charge of the DEA Baltimore District Office. “DEA’s investigation of this DTO was a long-term, highly complex effort which used a myriad of investigative techniques to expose this DTO. Additionally, by hitting drug trafficking organizations where it hurts them most and seizing drug proceeds, in this case cash, vehicles and properties, we are crippling their ability to ever return.”

Kedrick Jenifer is the alleged leader of the drug organization. He directed the collection and transportation of money from Baltimore to Houston, and the transportation of cocaine from Houston to Baltimore.

The affidavit alleges that the drug organization concealed money and cocaine in hidden compartments in vehicles that were driven between Baltimore and Houston. The vehicles were sometimes transported on car carriers. Cocaine and cash were stored at the homes of the defendants, their family members, and at a business complex called RCH Plaza on West Franklin Street in Baltimore. Vehicles with hidden compartments were brought to the business complex, where DTO members concealed large amounts of cash or cocaine.

The affidavit alleges that in October of 2009, while traveling from Baltimore to California, Jenifer and Tyrone Allen stopped in Phoenix, Arizona. At the Phoenix airport, police seized $97,020 and three cell phones from Jenifer, and $70,680 and eight cell phones from Allen.

On September 27, 2012, the affidavit alleges, Brooke Lunn and a man named John Moore were arrested near Houston with approximately 30 kilograms of cocaine concealed in a vehicle. Tracy Muse, believed to be a girlfriend of Jenifer, posted bond for the release of Lunn and Moore. Lunn and Moore returned to Maryland.

On October 20, 2012, Moore was fatally shot in the back of the head in Baltimore. According to the affidavit, his murder is believed to be related to the cocaine seizure.

On July 2, 2013, Arkansas Highway Patrol searched a vehicle transported by the Jenifer DTO from Baltimore to Houston by car carrier, while it was being driven back to Baltimore. From a hidden compartment in the rear of the vehicle, 23.8 kilograms of cocaine were seized. Following the seizure, Jenifer allegedly returned to using Lunn to transport cash and cocaine between Baltimore and Houston. Since August 2013, Lunn is believed to have made 30 trips between the cities, transporting cash and cocaine.

In June 2014, agents saw Simmons give Jenifer a black bag in a parking lot in Woodbridge, Virginia. Virginia State Police pulled Simmons over 60 miles away and seized two kilograms of cocaine from a black bag concealed in a hidden compartment in Simmons’ vehicle.

Jenifer owns World Fed Apparel, Inc., a clothing store in Baltimore. Jenifer is also a co-owner of Flavor Factory, LLC, which is believed to own an ice cream franchise in Baltimore.

Jenifer and his companies currently own the following vehicles:

2013 Rolls Royce Ghost valued at $296,000, 2014 Ferrari 458 Italia valued at $271,000, 2014 BMW M6 valued at $113,925, 2015 Ford F-250 truck valued at $56,000,

and a 2012 Acura ZDX, a 2010 Honda Crosstour, a 2006 Acura and a 2009 GMC Denali truck. Jenifer kept some high end vehicles at a storage unit in Laurel, Maryland. Brewer allegedly bought a 2014 Mercedes S63 AMG, worth approximately $156,900.

The defendants face a maximum sentence of life in prison for conspiring to distribute and possess with intent to distribute cocaine.

The defendants had their initial appearances in U.S. District Court in Baltimore, Virginia and Texas last week. Hegie and Clark consented to detention. A detention hearing was held on October 14, 2014, in federal court in Baltimore for Lunn and she is detained. A detention hearing in federal court in Baltimore is scheduled for Jenifer, Allen and Brewer on October 16, 2014 at 11:00 a.m., 10:30 a.m. and 1:30 p.m., respectively, and for Muse on October 17 at 10:00 a.m. Williams is detained until arrangements are completed for his release on home detention with electronic monitoring. Simmons is in custody in the Eastern District of Virginia. No date has been set for a hearing for him in Maryland.

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

United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation and Baltimore City and County Police Departments for their work in the investigation. Mr. Rosenstein commended the U.S. Marshal Service and Bureau of Alcohol, Tobacco and Firearms for their assistance in the execution of the search and arrest warrants, and the Virginia State Police who assisted with the June 2014 seizure of cocaine.

Mr. Rosenstein thanked Assistant United States Attorneys John W. Sippel, Jr. and Scott A. Lemmon, who are prosecuting the case, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance in the prosecution of this Organized Crime Drug Enforcement Task Force Case.

Baltimore, Maryland – Pedro Santiago, age 43, of Columbia, Maryland pleaded guilty today to wire fraud in connection with two fraud schemes in which he illegally used $282,000 of his clients’ money.

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 his plea, from February 2009 to January 2010, Santiago engaged in two separate fraud schemes, holding himself out in both schemes as a managing partner and business consultant for DST Services, located at 7500 Greenway Center Drive in Greenbelt, Maryland. DST Services was not registered to do business in Maryland.

In the first scheme, Santiago promised that he would obtain a business line of credit for a victim of between $550,000 and $750,000, if the victim paid Santiago $20,500. On February 12, 2009, Santiago caused to be wired $20,500 from the victim’s bank account in California into Santiago’s account in Maryland. Instead of obtaining the line of credit for the victim, Santiago spent the money on himself and others.

In the second scheme, Santiago promised victims that if they loaned him money, or invested with him, he would broker a deal involving crude oil or other commodities in which the victims would receive a return on their loan or investment. Santiago caused five victims to wire transfer or send by check a total of $261,500. Instead of using the money to broker deals involving commodities, Santiago used the money for himself or others.

Santiago faces a maximum sentence of 20 years in prison followed by three years of supervised release and a fine of $250,000. Santiago has agreed to forfeit and pay restitution of $282,000, the total loss under both schemes. U.S. District Judge J. Frederick Motz scheduled his sentencing for January 27, 2015, at 2:15 p.m.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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 Nicolas A. Mitchell, who is prosecuting the case.

Also Admitted to Robbing Three More Convenience Stores at Gunpoint

Baltimore, Maryland – Brandon Ferrell, age 23, and Stephanie Amber Smith, age 24, both of Baltimore, pleaded guilty today to an armed robbery of a convenience store on September 27, 2013, and possession of a firearm in furtherance of a crime of violence. The couple admitted that they also committed three other armed convenience store robberies two days later.

The guilty pleas 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

According to their plea agreements, on September 27, 2013, Ferrell and Smith stole approximately $160 from a convenience store located in the 3500 block of Boston Street in Baltimore. Ferrell entered the store first, grabbed an iced-tea and walked to the counter. Then Smith entered the store, pointed a semi-automatic pistol at the clerk, and demanded money. Ferrell removed the money from the cash drawer located behind the counter. Ferrell and Smith then fled the store.

Ferrell and Smith robbed three other convenience stores at gunpoint on September 29, 2013.

Ferrell, Smith and the government have agreed that if the Court accepts their plea agreements, Ferrell will be sentenced to 22 years in prison, and Smith will be sentenced to 13 years in prison. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Ferrell on December 17 and Smith on December 18, 2014, both at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James G. Warwick, who is prosecuting the case.

Perpetrator of 13 Robberies or Attempted Robberies Has “Committed his Last Robbery”

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced John Joseph Wilson, age 54, of Dundalk, Maryland today to 30 years in prison followed by five years of supervised release for armed robbery of a bank and post office, and the use of a firearm during a robbery. Judge Russell also ordered Wilson to pay restitution of $48,818.01.

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; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief James W. Johnson of the Baltimore County Police Department; Harford County Sheriff L. Jesse Bane; Commissioner Anthony W. Batts of the Baltimore Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore County State’s Attorney Scott Shellenberger; and Harford County State’s Attorney Joseph I. Cassilly.

“If we are serious about reducing gun crime, we need to be serious about sentencing armed criminals to long terms in prison,” said U.S. Attorney Rod J. Rosenstein. “Hopefully John Joseph Wilson has committed his last armed robbery.”

According to his plea agreement, from July 2010 to October 2013, Wilson robbed or attempted to rob: four banks on eight occasions, one post office on three occasions and a supermarket on two occasions. These robberies occurred primarily in Harford and Baltimore Counties, and total $49,046.17. In all but one robbery, Wilson pointed a firearm at an employee. During his final robbery, Wilson shot at a citizen who was chasing him.

Beginning on July 22, 2010, Wilson stole $6,883.50 from the Mars Supermarket located on Philadelphia Road in Baltimore, after pointing a semi-automatic handgun at a clerk and taking money from her cash drawer. Wilson returned to the same store on August 27, 2010 and robbed the same clerk with the same gun, stealing $6,064.01.

On September 30, 2010, Wilson pointed a pistol at a bank clerk and stole $8,297 from a cash drawer at Madison Square Federal Savings Bank in Fallston, Maryland. When Wilson returned to the bank on October 9th, the employees recognized him from the earlier robbery and refused to let him enter the bank. Wilson pointed a handgun at the employees before fleeing.

A couple years later, on November 5, 2012, Wilson used a short-barreled shotgun to steal $4,116.66 from the BB&T Bank in Fallston.

Wilson used the revolver or shotgun to steal $490 from the Benson Post Office on Connolly Road in Fallston on December 12, 2012; $8,684 from Sovereign Bank on Emmorton Road in Bel Air, Maryland on December 17, 2012; and $8,960 from the same Sovereign Bank on January 4, 2013.

Wilson returned to the same BB&T Bank in Fallston on February 4, 2013 and stole $930. This time, instead of displaying a gun, Wilson showed a bank clerk his cell phone to display his demands for “Large bills” and “no dye pack.”

On April 27, 2013, after initially being thwarted from entering the Sovereign Bank on Emmorton Road in Bel Air, Wilson returned to the Benson Post Office. Using a revolver, he forced a postal clerk to open a safe. He took $821 from the safe and cash drawers.

On September 6, 2013, Wilson stole $3,800 from the Liberty Federal Savings and Loan Association Bank on Belair Road in Bel Air, after pointing a gun at an employee.

Finally, on October 5, 2013, Wilson again robbed the Benson Post Office. When the postal clerk saw Wilson’s gun, she fled to a business next door. The proprietor of that business chased Wilson, who turned and fired one shot toward the proprietor before fleeing away from the area. Postal Inspectors and Maryland State Police processed the crime scene at the Benson Post Office and developed evidence that assisted in the identification of Wilson as a suspect.

Wilson was arrested on October 9, 2013. The revolver and shotgun used in all but one of the robberies were recovered.

United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service, Maryland State Police, Baltimore County Police Department, Harford County Sheriff’s Office, Baltimore Police Department and the Baltimore City, County and Harford County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Napoleon McLain, Jr., age 31, of Randallstown, Maryland today to two years in prison followed by three years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base. McLain was an officer with the Baltimore City School Police Force (BCSPF). BCSPF officers are granted police privileges to carry firearms and conduct arrests within the City of Baltimore.

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.

“It is shocking when a police officer is caught selling illegal drugs,” said U.S. Attorney Rod J. Rosenstein. “Fortunately there is no evidence that the defendant distributed drugs to school students.”

According to his plea agreement, from no later than December 2012 to August 2013, while he was employed as a BCSPF officer, McLain was a member of a conspiracy to distribute cocaine base. McLain bought multiple ounces of cocaine base at a time from his suppliers, which he sold to others. On four occasions between December 2012 and August 2013, McLain sold a total of approximately 150 grams of cocaine base to a confidential source for $9,800.

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant U.S. Attorney David I. Sharfstein, who prosecuted the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Deandre Murphy, age 31, of Baltimore, today to 10 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm.

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

According to his plea agreement, Baltimore City Police officers were patrolling the Cherry Hill area of Baltimore when they saw Murphy, who was wearing a gray hooded sweatshirt. That seemed unusual to the officers since the temperature was about 90 degrees. Due to recent violence in the area, the officers approached Murphy to speak with him. As they approached from the rear, the officers saw the handle of handgun in Murphy’s pants. Murphy was not aware of the officers’ presence at that time.

One of the officers put his hand over the handle of the handgun and yelled “gun” for the protection of the other officers. Murphy struggled with the officers, but was subdued and the handgun, a .22 caliber pistol, fell from his waistband area. Murphy had previously been convicted of a felony and was prohibited from possessing a firearm.

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