District of Maryland
Press releases recorded for this federal judicial district.
Baltimore Convicted Felon Exiled to over 9 Years in Prison for Possession of A Stolen GunRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Leverne Alexander Patterson, age 62, of Baltimore, Maryland, today to 115 months in prison, followed by three years of supervised release, for possession of a stolen firearm.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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Patterson’s plea agreement, on June 4, 2013, Baltimore Police officers executed a search warrant at a residence in the 2600 block of East Preston Street in Baltimore. Upon entering the home, officers found Patterson and a female in the upstairs bedroom and brought them to the first floor. Officers asked Patterson if he had any drugs, guns, or large sums of money in the house. Patterson advised officers that he had a gun under the bed in the upstairs front bedroom. Officers recovered a loaded .22 caliber handgun from that location. Patterson was arrested after police learned that he was on parole from a previous felony conviction and prohibited from possessing a gun. Patterson told police that he had purchased the gun from an individual on the street for $200. Investigation revealed that the gun had been stolen in Howard County, Maryland in 2003.
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 U.S. Attorney Christopher Flagg, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who prosecuted the case.
Ghanian National Sentenced to 13 Years in Prison for Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced George Frimpong Ebo-Amissah, a/k/a “Salifu Abdullah,” and “Wagba,” age 46, a Ghanian national, today to 13 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to Ebo-Amissah’s plea agreement, beginning in 2011, Ebo-Amissah was one of the leaders of a conspiracy to distribute heroin in Maryland. Ebo-Amissah, who was living in Ghana, arranged couriers who would transport heroin on commercial flights to the United States. During the investigation, law enforcement intercepted telephone calls between Ebo-Amissah and Nana Boateng, a U.S. based heroin trafficker. Ebo-Amissah had numerous conversations with Boateng about importing heroin into the United States, including details about obtaining heroin in Ghana and how much a particular courier could bring to the United States.On May 29, 2011, a courier that Ebo-Amissah had hired to bring heroin into the U.S. was stopped as she was coming off a flight from Ghana. Agents discovered approximately 3.3 kilograms of heroin in her suitcase. The courier called Ebo-Amissah for further instructions and Ebo-Amissah told her that she would receive a return call. Shortly thereafter Boateng called the courier unsuccessfully. At the time the courier was detained, investigators saw Boateng at the airport, apparently waiting for someone.
Nana Boateng, age 34, of Leesburg, Virginia, previously pleaded guilty to his role in the conspiracy and was sentenced to 84 months in prison.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore County Police Department and HSI Baltimore for their work in the investigation. Mr. Rosenstein also commended the U.S. Department of State’s Diplomatic Security Service and the Department of Justice Office of International Affairs for their assistance in Ebo-Amissah’s extradition from Ghana to the United States.
Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Bank Robber Sentenced to over 10 Years in Prison for Five RobberiesRead the Press Release
Admitted Committing Two Additional Bank Robberies
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Rodney Scott Bush, age 47, of Fort Washington, Maryland today to 125 months in prison, followed by three years of supervised release, for conspiracy to commit bank robbery and five bank robberies. As part of his plea agreement, Bush also admitted committing two additional bank robberies.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; and Chief Mark A. Magaw of the Prince George’s County Police Department.According to his plea agreement, from December 8, 2012 through July 17, 2013, Bush committed seven bank robberies, stealing a total of $38,894. In each robbery, Bush handed the teller a note demanding money. Most of the notes also stated that Bush had a gun or threatened some other harm and Bush often implied that he had a weapon. The banks were located in Upper Marlboro, Lanham, Severna Park, Gambrills, Laurel, Bowie, and Glen Burnie, Maryland.
Moments after the robbery in Glen Burnie on July 17, 2013, an Anne Arundel County Police officer responding to the bank robbery saw Bush in the passenger seat of a vehicle removing the distinctive sweater that he wore during the robbery. The vehicle was being driven by a woman, later identified as Bush’s girlfriend, Jacqueline Isaacs. The officer attempted to conduct a traffic stop, but Isaacs sped off and led police on a high speed pursuit. Isaacs and Bush continued to flee from the officers for more than ten miles, eventually crashing into a van. Officers arrested Bush and Isaacs who were taken to the hospital and treated for injuries sustained during the crash.
The vehicle was searched and officers recovered the mobile phones used by Bush and Isaacs, the demand note, shirt and glasses worn by Bush during the robbery, and cash stolen from the bank.
Jacqueline Isaccs, age 56, also of Fort Washington, pleaded guilty to the July 17, 2013, bank robbery and was sentenced to 37 months in prison.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Texas Drug Dealer Sentenced to 20 Years in Prison for Trafficking Heroin in MarylandRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Amir Ali Faraz, age 45, of Laredo, Texas, today to 20 years in prison, followed by 10 years of supervised release, for conspiracy to distribute heroin and marijuana, possession with intent to distribute heroin, using a phone in furtherance of drug trafficking and interstate travel to promote drug trafficking activities.Judge Titus also sentenced co-conspirator Ricardo Rodriguez, age 29, also of Laredo, Texas, to 78 months in prison, followed by five years of supervised release, for conspiracy to distribute heroin and marijuana, and for using a cell phone in furtherance of drug trafficking. Faraz and Rodriguez were convicted on January 24, 2014, after a 12-day jury trial.
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); Chief Mark A. Magaw of the Prince George’s County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police.
According to testimony at their trial, Faraz played a significant role in a drug conspiracy - from transporting heroin from Mexico into Texas and then on to Maryland, to soliciting purchasers and distributing heroin and marijuana. For example, beginning in late July, Faraz and a co-conspirator, Javier Escobar-Bucerra traveled from Texas to Maryland with heroin to sell. A marijuana customer of Faraz’ introduced them to Harold Bartrum. Bartrum was only interested in purchasing marijuana, but located a customer for the heroin. Faraz and Escobar-Bucerra sold nine ounces of heroin through Bartrum to this individual. Faraz and the co-conspirator also discussed with Bartrum returning to Maryland with marijuana. In September 2012, Faraz and Escobar-Bucerra traveled to Maryland from Texas with at least one kilogram of white powder heroin and between 9 ounces and 2.2 pounds of black tar heroin. Bartrum again assisted them in selling the heroin. According to trial testimony, Faraz traveled to Mexico before each trip to Maryland, and returned with between one and two kilograms of heroin.Witnesses testified that during October 2012, Faraz continued to talk to Bartrum by telephone, discussing arrangements to obtain marijuana, cocaine and heroin from Texas. Faraz wanted one of his heroin customers to provide the funds to obtain the marijuana in Mexico. Faraz’ conversations with Bartrum and the heroin customer included shipments of 100 to 200 pounds of marijuana, as well as heroin. Search and arrest warrants were executed before the transaction could take place.
According to trial testimony, Escobar-Bucerra also communicated with Bartrum during October and discussed bringing marijuana and heroin back to Maryland. In late October and November 2012, Ricardo Rodriguez was intercepted speaking to Bartrum about the next trip planned by Escobar-Bucerra. During these calls Rodriguez advised they were ready with all of the drugs, including marijuana and heroin. He also told Bartrum they had 500 pounds of marijuana if he wanted to purchase it. They discussed the quality and price of this additional marijuana and the need to have someone transport it. As a result of these calls, on November 6, 2012, surveillance located two pickup trucks traveling in tandem from Texas to Maryland. The vehicles were located outside Roanoke, Virginia. A traffic stop was conducted on both trucks. One of the trucks was occupied by Rodriguez and driven by his codefendant Jose Chapa. A subsequent search of the vehicle resulted in the seizure of seven packages which contained 6,190 grams of marijuana; a ziploc bag which contained 337.7 grams of heroin hydrochloride; plastic bags which contained 287.6 grams of heroin hydrochloride; and a knotted plastic bag which contained 99.1 grams of heroin hydrochloride. Escobar-Bucerra was identified as the driver of the second pickup truck.
Javier Escobar-Bucerra, age 29, of Laredo, Texas; Harold Bartrum, age 43, of Hyattsville, Maryland; and Jose Chapa, age 35, all pleaded guilty to their roles in the conspiracy. Escobar Bucerra and Bartrum were each sentenced to 64 months in prison; and Chapa was sentenced to 92 months in prison.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore, Prince George’s County Police Department, Maryland State Police and Virginia State Police, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.
Baltimore School Police Officer Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
Baltimore, Maryland – Napoleon McLain, Jr., age 31, of Randallstown, Maryland pleaded guilty today to conspiring to distribute and possess with intent to distribute cocaine base.
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 agreement, McLain is 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.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. .
McLain faces a maximum sentence of 40 years in prison. U.S. District Judge Catherine C. Blake scheduled sentencing for October 15, 2014 at 9:15 a.m.
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 is prosecuting the case.Armed Carjacker Exiled to Nine Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Donald Avery Moore, age 57, of Washington, D.C., today to nine years in prison followed by five years of supervised release for carjacking and using a gun during the carjacking. Judge Chasanow ordered that Moore’s Maryland sentence be served concurrent to the 42 month sentence he received in D.C. Superior Court on related charges.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard Marianos of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, on January 24, 2012, Moore approached a pick-up truck driven by an individual in Capitol Heights, Maryland. Moore brandished a semi-automatic pistol and demanded the keys. The victim gave Moore the keys and Moore got into the vehicle. Moore then told the victim to walk to the back of the pick-up truck or Moore would shoot him. When the victim complied, Moore drove away.
After a lookout was broadcast, Prince George’s County police officers located and pursued the pick-up truck. Moore subsequently fled on foot, and the officers ultimately arrested him, seizing the pistol from his jacket pocket.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department, Metropolitan Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Mara Zusman, who prosecuted the case.
Westminster Man Sentenced to over 5 Years in Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Joshua Foe, age 35, of Westminster, Maryland, today to 63 months in prison, followed by 25 years of supervised release, for possession of child pornography. Judge Russell ordered that upon his release from prison, Foe 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 Foe’s plea agreement, on two occasions between September 11, 2012, and March 16, 2013, undercover law enforcement agents downloaded child pornography from files being shared by Foe through the use of file sharing software. A federal search warrant was subsequently executed at Foe’s home and law enforcement seized Foe’s computer and other digital media. A forensic analysis of the computer revealed approximately 277 images and 296 videos documenting the sexual abuse of children, including prepubescent minors engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Maryland State Police Internet Crimes Against Children Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
International Employee Recruiter Sentenced to Two Years in Prison for Visa FraudRead the Press Release
Defendant Claimed 789 Workers Hired for Maryland Pool Service Company
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Milen Radomirski, age 34, a Bulgarian national residing in Germantown, Maryland, today to two years in prison for visa fraud. Judge Grimm also ordered Radomirski to forfeit $100,000.“American businesses are permitted to sponsor foreign workers to enter the United States lawfully under the H-2B visa program, but Milen Radomirski undermined that program by falsely vouching for hundreds of aliens who were not expected to comply with the terms of the visa,” said U.S. Attorney Rod J. Rosenstein.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); 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; Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.
According to his plea agreement, from 2003 to August 2013, Radomirski worked for a pool service company in Maryland that provided lifeguards and pool maintenance in the Washington, D.C. metropolitan area. As part of his employment, Radomirski recruited international workers that his company could sponsor to work in the U.S. on H-2B visas and other short-term visas. Radomirski admitted that he fraudulently obtained more than 100 H-2B visas. An H-2B visa is a non-immigrant visa granted to citizens of other countries to work in the U.S. on a temporary basis.From 2006 through 2011, Radomirski’s company submitted applications for approximately 789 H-2B visas. Radomirski’s company certified to the U.S. Department of Labor that it had not sought or received payment from the employee to obtain the visa and specified to U.S. Citizenship and Immigration Services the job in which the foreign national supposedly would be employed. Sponsored workers could not legally be employed by any other company. The company was required to notify DHS if an H-2B worker failed to report to work within five days after their specified start date or if a worker absconded or was terminated.
Radomirski admitted that he charged visa beneficiaries money in exchange for including them on his company’s petitions for H-2B visas. Radomirski knew that many of the visa beneficiaries would not work for his company at all, would only work at his company for a short period of time, or would work for other employers in addition to his company.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore; U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, U.S. Department of State’s Diplomatic Security Service, and USCIS, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Edgewater, Maryland Man Sentenced to 42 Months in Prison for Defrauding SBA and IRS of More Than $7 MillionRead the Press Release
Fraudulently Obtained Over $52 Million in Government Contracts, Concealed Income by Transferring Millions from Corporate Accounts to Casinos and to Pay Other Personal Expenses,
and Filed False Tax Returns
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Vernon J. Smith III, age 61, of Edgewater, Maryland, today to 42 months in prison, followed by three years of supervised release, for conspiring to defraud the United States in connection with schemes to fraudulently seek federal contracts under a Small Business Administration (SBA) program to assist disadvantaged small businesses; and to defraud the IRS. Judge Grimm found that the actual loss to the government as a result of Smith’s offenses was $7,033,844, and entered an order requiring Smith to pay that amount in restitution and forfeiture.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and General Services Administration Acting Inspector General Robert C. Erickson.
“When individuals defraud the government by falsely claiming eligibility for SBA’s 8(a) Business Development Program, the biggest victims are the taxpayers and legitimate small businesses,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “We are committed to helping ensure that only eligible disadvantaged small businesses benefit from the Section 8(a) program. I want to thank the U.S. Attorney's Office for its dedicated leadership and professionalism in pursuit of justice served today.”
“Americans were victimized twice by the greed of Vernon Smith. Not only did Smith decide not to pay his fair share of federal taxes and ultimately defraud the IRS out of $839,016, his actions also denied legitimate business owners of socially and disadvantaged groups the opportunity to receive government contracts to which they were entitled,” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s sentencing should put corrupt business owners, like Vernon Smith, on notice that the government will get to the truth no matter how they may try to conceal their involvement and income.”
“Contractors that defraud the United States to get GSA contracts will be held accountable,” said General Services Administration Acting Inspector General Robert C. Erickson.
Vernon Smith was the president and sole owner of Capitol Contractors since 2002. Capitol Contractors was a Maryland corporation with its headquarters in Capitol Heights, Maryland and later Edgewater, Maryland. Capitol Contractors had provided roofing and construction services but was largely dormant after 2002.In 1999, Vernon Smith caused a new roofing and construction company, Platinum One Contracting, Inc. (“Platinum”) to be incorporated in Maryland. Although Vernon Smith installed Anthony Wright, an African-American who was a former roofer and project manager at Capitol Contractors, to be the president and 60% owner, and Smith’s son was vice president and owned the remaining 40% of Platinum, Vernon Smith exercised complete and undisclosed control over Platinum’s business operations. Vernon Smith’s wife, Georgia Smith was in charge of Platinum’s accounting, and acted as the de facto Controller for the company.
Vernon Smith admits that from August 1999 to June 2013, he conspired to defraud the SBA in several ways. For example, Smith directed Wright to submit an application to the SBA for certification in the Section 8(a) program which did not reveal that Vernon Smith: exercised control over the company; had previously supervised Wright; owned more than 10% of Capitol Contractors; and was related to an owner of Platinum. From May 2004 through April 2010, Vernon Smith also caused Platinum to submit annual updates to the SBA Section 8(a) program that contained false information, including that the company was controlled by a socially and economically disadvantaged individual, and that no non-disadvantaged member of Platinum’s management received compensation that exceeded that received by Wright. In fact, Vernon Smith controlled the company, and Platinum’s payments to Vernon Smith and other corporate officers far exceeded payments received by Wright for 2004 through 2009. Based on the fraudulent application and annual updates, Platinum One received more than $52 million in contracts from the federal government under the Section 8(a) program, to which it was not entitled. The total loss to the government resulting from Vernon Smith’s illegal conduct, regarding the illicit profit he received by defrauding the SBA, and depriving a legitimate Section 8(a) contractor of such profit, is $6,194,828
Vernon Smith and his wife, Georgia Smith also transferred millions of dollars from Platinum to bank accounts in their own names, to casinos on their own behalf, to Capitol Contracting and another company owned by Vernon Smith, and to credit card companies to pay for personal expenses that Vernon and Georgia Smith charged to Platinum’s corporate credit cards, including extensive dental work, veterinary visits for personal pets, lavish vacations, a Royal Caribbean cruise, limousine transportation to casinos in Atlantic City, N.J., funeral expenses for a family relative, fencing for their personal residence, among others. Georgia Smith also mischaracterized numerous payments to casinos as subcontractor expenses.
In addition, Vernon and Georgia Smith signed false corporate and personal tax returns for 2005 and 2006. The Smiths knew that the cost of goods sold and payments to contractors reported on the corporate returns were false because almost all of that money was paid to, and for the benefit of, Georgia and Vernon Smith at casinos. They also knew that the income reported on their personal income taxes omitted hundreds of thousands of dollars that Capitol Contractors had paid to, and for their benefit. As a result, the Smith’s owed additional personal income tax to the IRS totaling $264,105, and Capitol Contractors owed an additional $574,911 to the IRS for tax years 2005 and 2006. The total tax loss resulting from Georgia and Vernon Smith’s conspiracy to defraud the IRS is $839,016.
Georgia Smith, age 52, of Edgewater, Maryland, pleaded guilty to conspiring to defraud the United States by filing false tax returns and is scheduled to be sentenced on July 21, 2014 at 11:00 a.m. Anthony Wright, age 42, of Bowie, Maryland, pleaded guilty to his role in the scheme and was sentenced on September 15, 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General; Defense Criminal Investigative Service; IRS Criminal Investigation; and the GSA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin and Trial Attorney Kenneth C. Vert of the U.S. Department of Justice Tax Division, who are prosecuting the case.
Chinese National Pleads Guilty in Scheme to Fraudulently Obtain Technology Products from U.S. CompaniesRead the Press Release
Sought to Fabricate an Infrared Detector for Night Vision,
Missile Detection and other Military Applications
Greenbelt, Maryland – Zhenchun Huang, a/k/a Ted Huang, age 51, a Chinese national and naturalized U.S. citizen, formerly residing in Clarksville, Maryland, pleaded guilty today to 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 guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); 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 entire 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. Thereafter, the associate mailed to Company 2, from the Goddard shipping facility and at government expense, two of the CZT wafers Huang had purchased from Company 1. The associate also sent an email from his Goddard email account to Company 3 falsely stating that NASA would be purchasing, through Allray, the 10 CZT wafers sought by Huang.
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 October 2003, Huang bought optoelectronic epoxy from Company 4. Huang directed that the item be shipped to NASA/Goddard, thereby suggesting that the purchase was related to government business. However, Huang provided his residential address for the shipment. Between February and April 2004, Huang tasked his associate with finding an optical filter that could be used in ultraviolet applications. The associate used his Goddard email account to contact Company 5 to obtain a price quote, which he then forwarded to Huang, but the filter was never purchased.
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. Huang had initially contacted Company 6 in October 2005, following an email introduction by his associate, to offer Allray’s services in packaging the company’s UV/LEDs. Huang indicated that Allray was located in China, but falsely stated that Allray’s customers were mainly in the United States. Company 6 did not respond to Huang’s offer. Huang’s associate, who had dealings with Company 6 in his capacity as a NASA employee, never advised Company 6 of his association with company X. 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, though she 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.
Following the commencement of the government’s investigation of the scheme, Huang absconded 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.
Huang and the government have agreed that if the Court accepts the plea agreement, Huang will be sentenced to 15 months in prison. U.S. District Judge Roger W. Titus scheduled sentencing for October 20, 2014 at 9:00 a.m.
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 Business Owner Sentenced to over 4 Years in Prison for FraudRead the Press Release
Directed Others to Steal Merchandise from Retail Stores and Exchange the Stolen Items for Gift Cards
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced John Tadros, age 45, of Baltimore, today to 58 months in prison followed by three years of supervised release for wire fraud conspiracy and money laundering. Judge Russell also entered an order requiring Tadros to pay restitution of $400,000.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
Tadros owned Busy Bees Convenience Mart located at 335 South Monroe Street, and J&J’s Bar and Liquor located at 1801 Ramsay Street, both in Baltimore. According to his plea agreement, from January 2009 to February 2013, Tadros directed Melissa Perry, Deanna Lynch, Mohamed Al-Omeri, Mark Brunelle, Steven Riley and others, known as boosters, to steal merchandise from large retail stores throughout Baltimore, Anne Arundel, Prince George’s, Howard and Harford Counties in Maryland, as well as Virginia, Pennsylvania and Delaware. The boosters then returned the stolen items in exchange for store gift cards. They used modified Maryland driver’s licenses that contained the personal identifier information of actual persons, without those persons’ knowledge, when returning the stolen items without a receipt.
Tadros bought the fraudulently obtained gift cards from the boosters for 50% of the card’s value. Tadros told the boosters to target specific stores at specific locations, and advised them of the best days to steal merchandise and the manner by which they modified their Maryland driver’s licenses. Tadros also collected the welfare benefit debit cards of the boosters which he held as collateral if he deemed that the boosters owed him money, and returned the benefit cards to the boosters for 50% of the card’s value. Tadros used the gift cards to purchase personal home goods, and supplies for his businesses and rental properties.
On February 27, 2013, the U.S. Secret Service executed a search warrant and seized 32 fraudulently obtained gift cards from his home. Agents also seized 329 retail store receipts from Busy Bee, for purchases made with fraudulently obtained gift cards.
The actual loss to retailers in Maryland caused by the scheme is at least $401,326.12.
Melissa Perry, age 34; Deanna Lynch, age 44; Mohamed Al-Omeri, age 39; Steven Riley, age 50; and Mark Brunelle, age 47, previously pleaded guilty to their participation in the scheme. Brunelle was sentenced to 51 months in prison and ordered to pay over $210,000 in restitution. Perry and Lynch were sentenced to 30 months and 18 months in prison, respectively, and were ordered to pay restitution of $401,326.12. Al-Omeri was sentence to one year of probation and ordered to pay restitution of $35,000. Steven Riley is scheduled to be sentenced on August 15, 2014.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service - Baltimore Field Office for its work in the investigation, and commended the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorney Mark W. Crooks, who prosecuted the case.
Two Prince George’s County Women Each Sentenced to over 2 Years in Prison for Mortgage Fraud SchemesRead the Press Release
Separate Fraud Schemes Resulted in Over $2.5 Million in Losses and
at Least 25 Individual and Corporate Victims
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Rhonda Scott, age 52, of Oxon Hill, Maryland, today to 30 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with two separate mortgage fraud schemes which resulted in losses of over $2.5 million. Judge Bredar also entered an order that Scott forfeit $2.7 million and pay restitution of $703,000.Judge Bredar also sentenced co-defendant Niesha Williams, age 34, of Fort Washington, Maryland today to 27 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with one of the mortgage fraud schemes. Judge Bredar also ordered that Williams forfeit $3.1 million and pay restitution of $1,445,593
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Principal Deputy Inspector General Fred W. Gibson, Jr. of the Federal Deposit Insurance Corporation; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General; Special Agent in Charge Gene E. Morrison, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Howard County State’s Attorney Dario Broccolino.
According to their plea agreements, beginning in 2008, Scott participated in several fraudulent real estate transactions that settled at M&R Title, Inc. located in Alexandria, Virginia, and at Sanford Title Services, located in Columbia, Maryland. The fraudulent transactions at each title company were part of different conspiracies. In both schemes, Scott facilitated deals between her co-conspirators, recruited individuals that could be parties to the real estate transactions, received proceeds of the fraudulent transactions through a shell company designed to hide her receipt of the funds, sent money to co-conspirators and identified mortgage transactions that the co-conspirators could use to enrich themselves.
As part of the M&R Title conspiracy, Scott, Demetrius Peete and others deceived buyers, sellers and lenders to make it appear to sellers that they were selling their property at a low price, and to buyers and lenders that the property was being sold at a higher price. The co-conspirators created paperwork for two different sales of the property at the same time. The first sale was fraudulent because it was backdated, the buyer planned to immediately flip the property in a subsequent sale and the settlement statement listed a fake loan. In the second sale, the sales price was significantly increased and the settlement statement showed a large sum being disbursed to the lender to payoff an existing lien. In fact, those funds were improperly disbursed to the co-conspirators.As to the Sanford Title conspiracy, Scott, Peete, Bonnie Kraemer, Niesha Williams, Emeka Udeze and others used many fraudulent techniques, including: short sales in which the property would be sold for a higher price than the seller was aware of; sales of properties not owned by the seller, including properties Scott purported to own but in fact did not; multiple sales of the same property at the same time; the seller and/or buyer were shown different settlement statements and the conspirators used the difference in sales price to enrich themselves; and money that should have been paid to lien holders was instead disbursed to the co-conspirators. Williams facilitated deals between her co-conspirators, sent funds illegally obtained from real estate transactions to her co-conspirators, and identified mortgage transactions that the co-conspirators could use to enrich themselves.
Both of the M&R Title and Sanford Title fraud schemes involved at least 25 victims, including lenders, sellers and buyers of real estate, title insurance companies and lien holders. The reasonably foreseeable loss associated with Scott’s conduct was at least $2.5 million. The loss associated with Williams’ offenses was at least $3.1 million.
Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 49, of Riva, Maryland; Emeka Udeze, age 39, of Bowie, Maryland; Shola Risikat Balogun, age 48, of Upper Marlboro; Gregory Green, age 49, of Waldorf, Maryland; and Demetrius Peete, age 46, of Manassas, Virginia, each previously pleaded guilty to their roles in the fraud schemes. Kreamer, who was responsible for the daily operations at Sanford Title, was sentenced on April 25, 2014 to 51 months in prison, and ordered to pay restitution of $2,499,048 to the victims and to forfeit $4.8 million. Green was previously sentenced to three months in prison and ordered to pay restitution of $404,596. The other conspirators await sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force 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 commended the FBI, U.S. Secret Service, FDIC, HUD-OIG, Department of Justice OIG, Howard County Police Department and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Harry Gruber and Special Assistant United States Attorney Colleen McGuinn assigned to this case from the Howard County State’s Attorney’s Office, who prosecuted the case.
Bank Robber Pleads Guilty to A Series of Robberies in 2013Read the Press Release
Committed at least five Bank Robberies Between June 7 and June 24, 2013
Greenbelt, Maryland – Dallas Eric Dunmore, age 47, of Washington, D.C., pleaded guilty today to bank robbery.Co-conspirators Derrick Hart, age 42, of District Heights, Maryland, and Teddy McCain, age 54, of Germantown, Maryland, pleaded guilty on June 19, 2014, to the same charge.
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; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Maryland Attorney General Douglas F. Gansler.
According to the defendants’ plea agreements, Dallas Dunmore, Hart and McCain robbed or attempted to rob banks in Maryland and Virginia. In each robbery Dallas Dunmore entered the bank and handed the teller a note demanding money. On one occasion, the note also stated that he had a gun, while on two other occasions Dunmore told the teller that he or another conspirator had a gun. McCain waited outside during each robbery. Hart also waited outside during the robberies, except on June 19, 2013, when Hart entered the bank with Dallas Dunmore and another conspirator.The total proceeds from the five robberies in which Dunmore participated are $5,370; and the total proceeds from the six robberies in which Hart and McCain participated are $8,437.
Dunmore, Hart and McCain each face a maximum sentence of 20 years in prison for bank robbery. U.S. District Judge Paul W. Grimm has scheduled sentencing for Dunmore on December 17, 2014 at 9:00 a.m. McCain is scheduled to be sentence on September 29, 2014 at 1:00 p.m. and Hart is scheduled to be sentenced on October 20, 2014 at 10:30 a.m.
United States Attorney Rod J. Rosenstein praised the FBI; Prince George’s and Montgomery County Police Departments; the Arlington, Fairfax, and Alexandria, Virginia Police Departments; and the Maryland Attorney General’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas Mitchell and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General, who are prosecuting the case.Baltimore Man Sentenced to over 5 Years in Prison for Dozens of Commercial BurglariesRead the Press Release
Robbed Businesses in Maryland, Virginia, West Virginia and Pennsylvania
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Carl Paschall, Jr., age 32, of Baltimore, today to 66 months in prison followed by three years of supervised release for conspiring to commit bank larceny and interstate transportation of stolen goods. Judge Motz also entered an order that Paschall pay $200,000 in restitution.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; Howard County Police Chief William McMahon; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Special Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department..
According to his plea agreement, from at least November 2010 until his arrest in July 2013, Carl Paschall conspired with Michael Johnson, Thomas Ellis and others to commit commercial burglaries in Maryland, Virginia, West Virginia, and Pennsylvania. 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, Jr. 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, Jr. stole a van from a car rental agency in West Virginia and used the van during the burglaries. On May 31, 2012, the conspirators drove the van to Newport Road in Woodbine, Maryland and park 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.
Michael Johnson, age 25, and Thomas Daniel Ellis, age 24, both of Baltimore, previously pleaded guilty to their participation in the conspiracy. Ellis was sentenced to a year and a day in prison. Johnson was sentenced to three years of probation.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.
Correctional Officer Sentenced to over 3 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
Smuggled Drugs into Baltimore Correctional Facility
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Ebonee Braswell, age 27, of Baltimore, today to 37 months in prison followed by three years of supervised release for participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).
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; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
Braswell, a correctional officer at BCDC, admitted that in 2012 and 2013, she helped smuggle contraband, including drugs such as Percocet, into BCDC for further distribution by BGF members. Other correctional officers helped Braswell smuggle the contraband into BCDC.
Twenty-four of the 44 defendants charged in the conspiracy have pleaded guilty, including 14 correctional officers. One defendant has died. Trial is scheduled to begin November 17, 2014 for the remaining defendants.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Doctors Indicted for Health Care FraudRead the Press Release
Allegedly Filed Over $2.3 Million in Fraudulent Insurance Claims
Greenbelt, Maryland - A federal grand jury has indicted two doctors, Paramjit Singh Ajrawat, age 60, and his wife, Sukhveen Kaur Ajrawat, age 56, both of Potomac, Maryland, on charges of health care fraud in connection with the pain clinic they owned and operated. The indictment was returned on June 24, 2014.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Drew Grimm, Office of Personnel Management, Office of Inspector General; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; 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 Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General.
According to the indictment, P. Ajrawat was a licensed physician in Maryland who specialized in interventional pain management. S. Ajrawat was a licensed psychiatrist in Maryland. The Ajrawats owned and operated Washington Pain Management Center (WPMC) located in Greenbelt.
The 16-count indictment alleges that from at least August 2008 through May 2014, the Ajrawats engaged in a scheme to defraud federal health benefit programs including: Medicare, Medicaid, TRICARE, Federal Employees Health Benefits Program and the Office of Workers’ Compensation Programs. Specifically, the indictment alleges that the Ajrawats filed claims for procedures that were not performed (rather, less expensive procedures were performed and then the Ajrawats falsely billed for procedures that provided higher reimbursements), or were not performed in compliance with the requirements for reimbursement.
For example the indictment alleges that the Ajrwats submitted claims that P. Ajrawat had performed an epidural, when instead P. Ajrawat had performed less invasive injections using lidocaine, which was not indicated for epidural use. The Ajrawats allegedly falsely documented the use of an ultrasound machine to direct needle placement in certain patient files and caused the alteration or destruction of patient files to conceal the scheme.
The indictment also seeks the forfeiture of $2,329,109, believed to be the proceeds of the scheme.
The defendants face a maximum sentence of 10 years in prison for each count of health care fraud. 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.
United States Attorney Rod J. Rosenstein praised DCIS, HHS-Office of Inspector General, OPM-Office of Inspector General, FBI, U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Service-Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kelly O. Hayes, who is prosecuting the case.
Retailer Sentenced for Food Stamp FraudRead the Press Release
Obtained At Least $1.2 Million in Payments for Food Sales That Never Occurred
Baltimore, Maryland – U.S. District Judge William D. Quarles Jr. sentenced Abdullah Aljaradi, age 52, a citizen of Yemen residing in Baltimore, was sentenced to two years in prison followed by three years of supervised release for wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Quarles also entered an order that Aljaradi pay $1.2 million in forfeiture and restitution.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Aljaradi and co-defendant Ahmed Ayedh Al-Jabrati operated two convenience stores, Second Obama Express and D&M Deli and Grocery, located next door to each other at 901 Harlem Avenue in Baltimore. According to their plea agreements and court documents, the stores participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Aljaradi and Al-Jabrati knew that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from October 2010 to July 2013, Aljaradi and Al-Jabrati exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for themselves.
Judge Quarles determined today that Aljaradi obtained at least $1.2 million in payments for food sales that never occurred.
Eight of the 10 convenience store owners or operators who were indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud. Ahmed Ayedh Al-Jabrati, age 56, a citizen of Yemen residing in Baltimore, was sentenced to two years in prison, and ordered to pay restitution of $1.2 million. Jung Kim, age 52, of Ellicott City, Maryland, was sentenced to 20 months in prison, and ordered to forfeit $95,453.50 and pay restitution of $205,000. Amara Cisse, age 51, of Windsor Mill, Maryland, was sentenced to 27 months in prison and ordered to pay restitution of $654,349.24, and his wife, Fanta Keita was sentenced to two months in prison. John Cunningham, age 55, of Baltimore, was sentenced to two years in prison. Retailer Hyung Cho, age 40, was sentenced to 38 months in prison, and his mother Dae Cho, age 67, was sentenced to 18 months in prison. The Chos were also ordered to forfeit $371,439.21 and pay restitution of $1.4 million. Two more retailers were indicted in January 2014.United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who prosecuted the case.
Pennsylvania Pharmaceutical Wholesaler Value Drug, Inc. to Pay $4,000,000 in SettlementRead the Press Release
Settles Claims that Value Drug Failed to Report Suspicious Orders of Oxycodone
to Pharmacies in Maryland and Pennsylvania
Baltimore, Maryland – Value Drug, Inc. (Value Drug) has agreed to pay $4,000,000 to the United States to resolve allegations that it violated the Controlled Substances Act (CSA) by failing to report suspicious orders of oxycodone to six pharmacies located in Maryland and Pennsylvania. Value Drug is a wholesale purchasing and distribution cooperative located in Altoona, Pennsylvania, that distributes pharmaceuticals, including controlled substances, to approximately 600 independent pharmacies located in Maryland, Pennsylvania and Ohio.The settlement agreement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.
“Pharmacy wholesalers and retailers that fill unusually large or frequent orders for controlled substances without notifying the DEA violate the law and are subject to penalties,” said U.S. Attorney for the District of Maryland Rod J. Rosenstein. “Abuse of pharmaceutical drugs is one of the top federal law enforcement priorities.”
“DEA is responsible for ensuring that all controlled substance transactions take place within DEA regulatory closed system. All legitimate handlers of controlled substances must maintain strict accounting for all distributions and Value Drug failed to adhere to this policy,” stated Special Agent-in-Charge Karl C. Colder of the Drug Enforcement Administration’s Washington Division. “Oxycodone is a very addictive drug and failure to report suspicious orders of oxycodone is a serious matter. The civil penalty levied against Value Drug should send a strong message that all handlers of controlled substances must perform due diligence to ensure the public safety,” stated Colder.
The CSA requires distributors of pharmaceuticals, such as Value Drug, to identify and report suspicious orders of controlled substances, such as orders of unusual size, unusual frequency or those that substantially deviate from a normal pattern. The settlement resolves allegations that from January 1, 2009 through September 12, 2012, Value Drug failed to report suspicious orders of oxycodone to six pharmacy customers, including: Russo’s Pharmacy in Hagerstown, Maryland; Zonetak Pharmacy in Owings Mills, Maryland; Philly Pharmacy- Chestnut Avenue and Philly Pharmacy- Roosevelt Boulevard both located in Philadelphia, Pennsylvania; and East Hills Pharmacy and Johnstown Pharmacy, both in Johnstown, Pennsylvania.
As part of the settlement, Value Drug will also enter into a Memorandum of Agreement (MOA) with the DEA. The MOA will resolve administrative claims that the DEA has against Value Drug and will require that Value Drug implement more effective systems and measures to detect and report suspicious orders of controlled substances. The MOA will remain in place for a period of three years.
U.S. Attorney Rod J. Rosenstein commended the DEA’s Office of Diversion Control for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas F. Corcoran, who handled the case.Businessman Indicted for Making over $5 Million in False Asset Statements to Government Insurance RegulatorsRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Jeffrey Cohen, age 39, of Reisterstown, Maryland, on five counts of making false statements to an insurance regulator. The indictment was returned yesterday and unsealed today upon his arrest.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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); Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
Cohen acted as the president and chairman of the Board of Indemnity Insurance Corporation RRG (IICRRG), located in Sparks, Maryland, and operating in several states including Maryland. Cohen owned RB Entertainment Ventures, which was a majority owner of IICRRG. IICRRG provided general liability, liquor liability and excess liability coverage to policyholders, which were individuals and companies involved in the entertainment industry, such as nightclubs, concert tours and special events. In 2012, IICRRG insured over 3,000 policyholders and wrote over $25 million in premiums.
IICRRG was a Delaware corporation and regulated by the Delaware Insurance Commissioner, which seeks to protect insurance policyholders and the general public by regulating insurance companies and products to ensure among other things the ability to pay claims.
The indictment alleges that in June 2012, regulators from the Delaware Insurance Commissioner examined IICRRG and learned of serious questions about the financial status of IICRRG. Thereafter, in November 2012 and January 2013, Cohen allegedly caused IICRRG to file an unaudited financial statement with, and sent a letter to, the Commissioner, respectively, which falsely claimed that IICRRG had $5.1 million in cash on deposit, in order to influence the actions of the Commissioner. In April 2013, Cohen caused a fax to be submitted to the Commissioner that falsely claimed that a bank had verified that IICRRG had $5.1 million in cash on deposit at the bank.
Cohen faces a maximum sentence of 15 years in prison and a $250,000 fine for making false statements to an insurance regulator. Cohen had an initial appearance today in U.S. District Court in Baltimore, and is detained pending a detention hearing scheduled for Friday, June 27, 2014 at 2:00 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore, IRS – Criminal Investigation and U.S. Postal Inspection Service - Washington Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Joyce K. McDonald, who are prosecuting the case.
Two Robbers Plead Guilty to Armed Robbery of Seven Convenience Stores During an Eight Day SpreeRead the Press Release
Used a Gun to Rob Seven Baltimore 7-Eleven Stores
Baltimore, Maryland – Monte Glascoe, age 23, of Baltimore, pleaded guilty today to robbery and brandishing a gun in furtherance of robbery. Yesterday, co-defendant Gary Cordell Howard, age 37, also of Baltimore, pleaded guilty to the same offenses.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; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to their plea agreements, Glascoe and Howard robbed at least seven Baltimore 7-Eleven stores from July 18 to 26, 2013, located at: 3436 Wilkens Avenue; 5512 Park Heights Avenue; 2500 Liberty Heights Avenue; 6700 Brentwood Avenue; 211 West 28th Street; and 3204 Hollins Ferry Road. In each robbery, Glascoe pointed a gun at victim employees. The conspirators stole money from the cash registers and two of the employees, cigarettes and other merchandise, and a cell phone and folding knife belonging to two of the employees.
The defendants face a maximum sentence of 20 years in prison for robbery; and a mandatory minimum of seven years in prison consecutive to any other term imposed, and a maximum of life in prison, for using a gun in furtherance of robbery. U.S. District Judge William D. Quarles, Jr., scheduled Howard’s sentencing for August 26, 2014 at 1:00 p.m. and scheduled Glascoe’s sentencing for September 25, 2014 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 Benjamin M. Block, who is prosecuting the case.
Frederick Man Sentenced for Fraudulently Receiving at Least $110,000 in Disability BenefitsRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Charles David Jones, Sr., age 58, of Frederick, today to a year and a day in prison, followed by three years of supervised release, for theft of government property arising from his fraudulent receipt of disability benefits. Judge Quarles also ordered that Jones pay $110,000 in restitution.The sentence 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 - Office of Inspector General, Philadelphia Field Division.
According to his plea agreement, in March 2002, Jones filed for disability benefits with the Social Security Administration (SSA), claiming that he could no longer work and was disabled. He agreed to notify SSA if he started to work as an employee or through self-employment.Starting sometime in July 2002, Jones began working as a cook at Lohr’s Family Restaurant in Frederick. Within a few months, he was promoted to manager and head chef. Witnesses stated that Jones supervised other employees and handled some of the cooking for the restaurant himself. Jones never reported this work to the SSA.
Instead, in November 2002, Jones requested a hearing on his application for disability and filed additional forms in support of his disability benefits application. He falsely claimed that he was not working and could not work. Wage and earnings reports confirm that Jones was receiving a salary from Lohr’s Family Restaurant at this time.
On October 13, 2003, Jones purchased Lohr’s Family Restaurant. Jones continued to manage and operate the restaurant. Witnesses also confirmed that through at least August 2011, Jones remained actively involved in managing the restaurant, supervising employees, cooking, developing the menu, and running the catering side of the business.
In February 2004, Jones was awarded disability benefits by SSA, retroactively to August 2002. Jones continued to receive benefits until they were suspended in 2011. Jones received at least $110,000 in benefits due to his false application for benefits.
In March 2010, Jones signed and submitted to SSA a report claiming that he was not working, and was not able to work. He described his activities for a typical day without mentioning the restaurant.
United States Attorney Rod J. Rosenstein praised the SSA - OIG for its work in the investigation and thanked Assistant U.S. Attorney Justin S. Herring, who prosecuted the case.
St. Leonard’s Man Sentenced to 20 Years in Prison for Sexually Exploiting A Minor to Produce PornographyRead the Press Release
Took 24 Sexually Explicit Pictures of a Prepubescent Girl
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced David Wayne Sweet, Jr., age 24, of St. Leonard, Maryland today to 20 years in prison followed by supervised release for life for sexually exploiting a minor to produce child pornography. Judge Titus ordered that upon his release from prison, Sweet 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); Calvert County Sheriff Mike Evans; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Calvert County State’s Attorney Laura Martin.
According to his plea agreement, on September 19, 2013, the Calvert County Sheriff’s Drug Enforcement Unit executed a search warrant at Sweet’s residence based on alleged drug violations. Sweet’s cell phone was seized which contained 24 sexually explicit images of a prepubescent girl taken between June and September 2013. Sweet had deleted the pictures, but law enforcement officials recovered all of the images.
Sweet was arrested on September 27, 2013. Sweet admitted that he inappropriately touched the victim while she was sleeping and took the photos.
On April 16, 2014, Sweet pleaded guilty to a second degree sex offense in Calvert County Circuit Court. His sentencing in the state case is scheduled for July 11, 2014 at 9:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Calvert County Sheriff’s Office, Maryland State Police Internet Crimes Against Children Task Force and Calvert County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who prosecuted the case.
Air Force NCO Sentenced to 120 Years in Prison for Sexually Exploiting Toddlers and Children to Produce Child PornographyRead the Press Release
Drugged and Bound at least Five Children to Produce Child Pornography
Which Gazafi Then Distributed
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced William S. Gazafi, age 44, of Lusby, Maryland, today to 120 years in prison for six counts of sexually exploiting a minor to produce child pornography.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 Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations.
“We investigate cases every day that make us shake our heads, but for someone to sexually abuse a five-month-old baby defies comprehension. Cases such as this serve as a reminder that in this day and age, a person’s status and position doesn’t immediately make him trustworthy,” said Steve Vogt, Special Agent in Charge of the FBI Baltimore Division. “Today, our children and our community are safer because of the dedication the agents and detectives who worked this case showed in tracking down this man and making sure he spends the rest of his life in prison.”
According to the indictment, court documents and statements made at his plea hearing, on August 15, 2013, Gazafi engaged in a chat on a website dedicated to incest discussions with an undercover officer. During the chat, Gazafi discussed his sexual interest in children and advised that he had been drugging and molesting several children, including an infant. During the chat, Gazafi sent seven images to the undercover officer, three of which were child pornography he stated he produced after drugging the child. Gazafi was subsequently identified and arrested.
At the time of his arrest, Gazafi was carrying multiple digital media items. A forensic examination of those items and others seized from his residence revealed videos and images that Gazafi produced of children engaged in sexually explicit conduct, including one child as young as five months old. The images also depict children bound and handcuffed while sleeping. In addition to producing hundreds of images of five children, ranging in age of five months to seven years, Gazafi distributed the images he produced to others on the Internet. Gazafi was communicating with other child pornography producers, some of whom sent him images of children they were abusing. Thus far, three children have been identified as a result. Gazafi possessed over 15,000 images and videos of children being sexually abused, many toddler and infant age. Gazafi is a non-commissioned officer in the U.S. Air Force working at Andrews Air Force Base. Gazafi remains detained.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI’s Maryland Child Exploitation Task Force, Air Force Office of Special Investigations and the Calvert County State’s Attorney’s Office for their work in the investigation. U.S. Attorney Rosenstein recognized the Calvert County Sheriff’s Office and the Metropolitan Police Department, for their assistance in the execution of the search warrant. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Thomas Sullivan, who are prosecuting the case.
Rockville Man Sentenced to over 6 Years in Prison for Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Michael Gaskin, age 33, of Rockville, Maryland, today to 78 months in prison, followed by 15 years of supervised release, for distribution of child pornography. Judge Grimm ordered that upon his release from prison, Gaskin 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 and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to Gaskin’s plea agreement, on 10 occasions between December 2012 and September 2012, Gaskin sent images documenting the sexual abuse of prepubescent children, including toddlers, to an individual whom Gaskin had met online in a chat room. On December 2, 2013, a search was conducted at Gaskin’s residence and his computer was seized. A forensic analysis of the computer identified 262 images and two videos documenting the sexual abuse of minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Trial Attorney Sarah Chang, also of the U.S. Department of Justice, Criminal Division, Child Exploitation and Obscenity Section, who prosecuted the case.
Park Heights Store Owner Sentenced to Prison for Food Stamp FraudRead the Press Release
Defendant Obtained Over $400,000 in Payments for Food Sales That Never Occurred
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jung Kim, age 52, of Ellicott City, Maryland, to 20 months in prison followed by three years of supervised release, for food stamp and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Russell also entered an order that Kim forfeit $95,453.50 and pay restitution of $205,000.The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Jung Kim owned and operated C&C Market, a convenience store located at 4752 Park Heights Avenue in Baltimore. According to her plea agreement and court documents, the store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Jung Kim completed the required government form in January, 2005 to become an authorized retailer in the program. Kim received training and instruction regarding the requirements of the food stamp program, including that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from November 2010 through April 2013, Kim routinely exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for herself.
As a result of these unlawful cash transactions, Kim obtained more than $400,000 in payments for food sales that never occurred.
Eight of the 10 convenience store owners or operators who were indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud. Ahmed Ayedh Al-Jabrati, age 58, a citizen of Yemen residing in Baltimore, was sentenced to two years in prison, and ordered to pay restitution of $1.2 million. Amara Cisse, age 50, of Windsor Mill, Maryland, was sentenced to 27 months in prison and ordered to pay restitution of $654,349.24, and his wife, Fanta Keita was sentenced to two months in prison. John Cunningham, age 55, of Baltimore, was sentenced to two years in prison. Retailer Hyung Cho, age 40, was sentenced to 38 months in prison, and his mother Dae Cho, age 67, was sentenced to 18 months in prison. The Chos were also ordered to forfeit $371,439.21 and pay restitution of $1.4 million. Two more retailers were indicted in January 2014.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Judson T. Mihok, Kathleen O. Gavin, and Leo J. Wise, who are prosecuting the cases.
Serial Fraudsters Sentenced to Prison for Scheme Using Medical Patients’ Identities to Fraudulently Obtain MerchandiseRead the Press Release
Stole Personal Identifying Information of over 100 Individual Victims
to Obtain Over $993,000 of Merchandise
Greenbelt, Maryland – U.S. District Judge Ellen L. Hollander sentenced Denise W. Wearing, age 37, of Philadelphia, Pennsylvania, today to seven years in prison followed by five years of supervised release for conspiracy to commit bank fraud and aggravated identity theft in connection with a scheme to obtain merchandise using stolen personal identifying information of medical patients. Wearing also admitted that from November 2011 through June 2012, she received $20,068 in disaster assistance from the Federal Emergency Management Agency after she falsely claimed that she was displaced by Hurricane Irene. Judge Hollander also ordered Wearing to pay restitution of $993,772.43.On June 16, 2014, Judge Hollander sentenced Michelle Jernell Cole, age 28, of Baltimore, to six years in prison followed by five years of supervised release for the same offenses, as well as for an unrelated fraud scheme in which Cole fraudulently received the Social Security benefits of a deceased relative. Judge Hollander ordered Cole to pay restitution of $409,305.53 for the bank fraud scheme and an additional $50,635 in restitution to the Social Security Administration.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to their plea agreements, Michelle Cole’s sister, Chanell Cole, met Wearing between 2004 and 2005 while both were serving fraud-related sentences in the Maryland Department of Corrections. Chanell introduced Michelle to Wearing.
From 2008 through approximately May 2010, Chanell Cole worked for a rheumatologist who had an office at Good Samaritan Hospital in Baltimore. Using her access to the physician’s patient files, Cole unlawfully obtained the personal identifying information (PII) of numerous patients, including names, addresses and social security numbers, which she provided to Wearing.
From 2010 through February 2012, Michelle Cole worked at a medical practice in Laurel, Maryland, where she also stole PII of patients, which she provided to Wearing. After being fired from that practice for reasons unrelated to the PII theft, from February 2012 through February 2013, she worked for a rheumatologist who had an office in Glen Burnie, Maryland. In that position she also fraudulently obtained the PII of numerous patients which she provided to Wearing. Michelle Cole obtained that position after submitting a fraudulent resume in support of her application. Michelle Cole had three previous state convictions for similar conduct.
From 2010 to February 2013, Wearing and other conspirators used the stolen PII to fraudulently open credit accounts and assume control of existing credit accounts at Macy’s, Bloomingdale’s and Nordstrom. The conspirators used the accounts to purchase merchandise in the names of the unknowing victims without intending to pay for the goods. Wearing and other conspirators caused the delivery of the fraudulently obtained merchandise to their own residences, and to the residences of friends and family members, primarily in the Philadelphia, Pennsylvania area. After the merchandise was delivered, Wearing and others drove to the delivery address and picked up the packages, and paid the recipient a fee for having received the packages. The fee was either cash or a previously determined item of merchandise that was part of the delivery.
Once she received the merchandise, Wearing provided it to other members of the conspiracy so that it could be sold for cash, typically for 50% of its retail value, or returned to the retail stores in exchange for gift cards. Wearing provided most of the merchandise to Yolanda Welch for sale and Welch paid Wearing in cash after she completed the sales.
During the course of the scheme, Wearing placed more than 1000 calls to retail stores and delivery services in furtherance of the scheme. Additionally, Wearing caused more than 200 deliveries of fraudulently obtained goods. On some occasions, Wearing sent merchandise to Michelle Cole or Chanell Cole for them to sell to their acquaintances. Both Michelle and Chanell Cole sent cash to Wearing through Western Union transactions and wire transfers through their banks. Wearing had seven previous fraud-related convictions.
Over the course of the scheme, the identities of over 100 individual victims were used to obtain over $993,000 of merchandise.
Chanell Y. Cole, age 31, of Owings Mills, Maryland, and Yolanda Gail Welch, age 39, of Philadelphia, Pennsylvania, pleaded guilty to their roles in the scheme and were sentenced to three years in prison and 33 months in prison, respectively. Judge Hollander ordered Chanell Cole to pay restitution of $32,091.91, and ordered Welch to pay restitution of $993,772.43. Judge Hollander sentenced co-conspirator Linda Nguyen, age 28, of Philadelphia, to one day in prison, followed by four months of home detention as part of five years supervised release, for her role in the conspiracy and ordered Nguyen to pay restitution of $54,399.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service for its work in the investigation and Macy’s fraud investigators for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Paul Budlow, who prosecuted the case.
Baltimore Bank Ordered to Forfeit $560,000 for Failing to File Currency Transaction Reports on Drug Proceeds Laundered Through the BankRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar has ordered M&T Bank to forfeit $560,000 in drug proceeds laundered through the bank on which the bank failed to file currency transaction reports.
The forfeiture was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department."Financial institutions face penalties if they accept cash deposits without filing currency transaction reports,” said U.S. Attorney Rod J. Rosenstein. “The reports allow law enforcement to trace cash deposits by criminals who try to avoid creating a paper trail."
According to the complaint filed in support of the forfeiture, Deanna Bailey was a member of a drug trafficking organization based in Maryland. Sabrina Fitts was the head teller at the Perry Hall branch of M&T Bank. On at least eight occasions between 2011 and 2013, Bailey came to M&T Bank and asked Fitts to convert the proceeds from the sale of illegal drugs from small denomination bills (i.e. $5, $10 and $20 bills) to $100 bills. The amounts involved in each transaction ranged from $20,000 to $100,000, with most transactions involving $50,000 or more. Bailey paid Fitts a one percent fee for each transaction for making the exchange without filing a currency transaction report.The government filed a civil action on February 10, 2014 alleging that M&T Bank is required to forfeit $560,000 that was transferred to the bank by Bailey in exchange for $100 bills. The complaint alleged that the money was subject to forfeiture because M&T Bank failed to file currency transactions reports on bank transactions in amounts in excess of $10,000 as required by law. Fitts admitted that on each occasion she converted the bills without filing or causing anyone else at M&T Bank to file a currency transaction report.
Sabrina Nicole Fitts, age 29, of Baltimore, Maryland, was sentenced to a month in prison followed by eight months of home detention for failing to file currency transaction reports on suspected drug proceeds. Judge Bredar also ordered Fitts to perform 250 hours of community service and to forfeit $5,000 she was paid by Bailey for converting the drug proceeds. Deanna Bailey, age 33, of Baltimore, was sentenced to 46 months in prison for conspiring to commit money laundering. Judge Bredar also ordered Bailey to forfeit $500,000.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Stefan D. Cassella, who prosecuted the case.Four Additional Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead the Press Release
Gang Members Allegedly Committed Murders, Attempted Murders, Stabbings,
Kidnapping, Extortion and Witness Tampering
Greenbelt, Maryland – A federal grand jury returned a second superseding indictment today charging the following four additional defendants, all of Hyattsville, in connection with a conspiracy to participate in murder in aid of a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:Hector Daniel Villanueva-Cortez, a/k/a “Muertito,” age 24;
Roni Arriola-Palma, a/k/a “Maniako,” age 24;
Luiz Guzman-Ventura, a/k/a “Casper,” and “Chele,” age 20, and
Jose Rodriguez-Nunez, a/k/a “El Killer,” age 25.The second superseding indictment was returned yesterday, June 16th, under seal and unsealed today at the initial appearance for Arriola-Palma this afternoon in federal court in Greenbelt. Arriola-Palma was arrested this morning by HSI agents, as a result of assistance provided by the Prince George’s County Sheriff’s Office. Charges remain pending against eight of the original defendants, listed below. A ninth original defendant, Francisco Hernandez, aka “Chicle,” age 21, of Silver Spring, Maryland, has pleaded guilty to his participation in the conspiracy. All of the defendants are in custody.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.
“Attacking and dismantling violent criminal enterprises like MS-13 is one of HSI's highest enforcement priorities,” said HSI Baltimore Special Agent in Charge William Winter. "Our investigation revealed that MS-13 is an enterprise that participates in criminal acts, such as murder, attempted murder, violent assaults, witness intimidation and retaliation, and extortion. HSI special agents will continue to work with our local, state and federal law enforcement partners to target MS-13 members and other transnational criminal street gangs that are a rising public safety threat in our communities.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.
The 12 count indictment alleges that from prior to 2009 to February 2014, the defendants were members and associates of MS-13 who planned and committed murders, attempted murders, kidnapping, assaults and robberies in Montgomery and Prince George’s Counties. Gang members also allegedly committed extortion and witness tampering, among other crimes.
More specifically, the second superseding indictment alleges the following additional acts. On January 3, 2010, co-defendant Wilmer Argueta and other MS-13 members attempted to kidnap and assault two victims in the area of East West Highway and Riggs Road. After the two victims fled in different directions, several MS-13 members allegedly caught one of the victims in a nearby wooded area and sexually assaulted her as retribution for associating with a rival gang.
The second superseding indictment alleges that on January 13, 2011, Arriola-Palma drove a van containing defendants Argueta, Carlos Beltran-Flores and Miguel Angel Manjivar. They passed a victim walking on the side of the road near the Fort Totten Metro Station. After getting out of the vehicle, they sprayed the victim with pepper spray, dragged him into the van and held him on the van floor, kicking and stabbing him while they drove to the area of Chillum Manor Road in Hyattsville. The defendants allegedly attempted to murder the victim by strangling him with a belt, stripping him of his clothes and stabbing him repeatedly. The defendants took the victim’s belongings and left him naked and unconscious in the woods, believing that he was dead.
According to the second superseding indictment, from around September to November 2011, defendant Argueta ordered a “greenlight,” which is an order to kill, from inside Prince George County Corrections Facility on a victim who planned to testify against him in Circuit Court for Prince George’s County. The indictment also alleges that on December 4, 2013, Villanueva-Cortez and another MS-13 member attempted to murder a suspected rival gang member.
The indictment further alleges that on December 5, 2012, Rodriguez-Nunez and Guzman-Ventura were driving in the area of 23rd and Sheridan Avenue in Hyattsville when they spotted four individuals crossing a street frequented by rival gang members. After waiting for the individuals to pass, Rodriguez-Nunez and Guzman-Ventura fired several shots at the group, killing one of the victims and attempting to murder the other three.
The indictment also alleges that on March 9, 2014, while in custody in Washington, D.C., defendants Minor Perez-Chach and Melvin Marquez-Sanchez attacked and stabbed another inmate when that person refused their demands to join MS-13.
All four additional defendants face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise. Villanueva-Cortez also faces a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering. Villanueva-Cortez, Guzman-Ventura and Rodriguez-Nunez are expected to have their initial appearances in the next week in federal court in Greenbelt.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The following defendants were named in the superseding indictment, and charges remain pending against them in the second superseding indictment:
Jorge Enrique Moreno-Aguilar, aka “Flaco” and “Castigato,” age 20, of District Heights, Maryland;
Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 25, of District Heights;
Melvin Marquez-Sanchez, aka “Demente,” age 19, formerly of New York;
Carlos Beltran-Flores, aka “Joker,” age 22, of Hyattsville, Maryland;
Wilmer Argueta, a/a “Chengo” and “Happy,” age 22, of Hyattsville;
Eric Antonio Mejia-Ramos, aka “Flaco,” age 20, of Hyattsville;
Minor Perez-Chach, aka “Minor Chach-Perez,” “Little Bad” and “Bryant Sacarias,
age 23, of Hyattsville; and
Miguel Angel Manjivar, aka “Garra” and “Masflow,” age 22, of Hyattsville.United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County and Montgomery County Police Departments, Prince George’s County State’s Attorney’s Office and its Strategic Investigations Unit, the Takoma Park Police Department and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, Prince George’s County Department of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau and Kevin L. Rosenberg, a Trial Attorney with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Washington, D.C. Man Sentenced to 12 Years for Robbing Banks and Possessing Child PornographyRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Devontae West, age 26, of Washington, D.C., today to 12 years in prison, followed by 15 years of supervised release, for possession of child pornography and conspiracy to commit bank robbery. Chief Judge Chasanow ordered that upon his release from prison, West 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; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, West and his co-conspirators stole vehicles to use during bank robberies, designated a co-conspirator to act as a getaway driver, wrote demand notes to present to bank tellers, used juveniles to enter the banks to demand money, used cell phones to maintain constant contact during the bank robberies and divided the proceeds of the bank robberies amongst themselves.
More specifically, on five occasions from March 20 to May 22, 2013, West and others, including juveniles, drove to the following bank branches where his conspirators stole a total of $14,598: SunTrust Bank in Clifton, District Heights and Forestville, Maryland; Capitol One Bank in Landover Hills, Maryland; and TD Bank in Washington, D.C. Also, on May 13, 2013 West and his conspirators drove to Capitol One Bank in Suitland, Maryland to rob the bank, but left without having obtained any money.
Additionally, on May 5, 2013 West had sex with a 15 year girl who he had directed to help him rob banks. West took eight pictures of the girl having sex with him. These pictures were on West’s cell phone when he was arrested.Co-conspirator Calvin Manning also pleaded guilty to bank robbery. Manning admitted to robbing the Sun Trust Bank in District Heights on March 25, 2013, which is one of the bank robberies in which West participated. Chief Judge Chasanow sentenced Manning on June 12, 2014 to four years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas and Assistant U.S. Attorney Thomas Sullivan, who prosecuted the case.
Two Brothers Indicted for Receiving over $16.5 Million in Fraudulent Tax RefundsRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Sean Aude Gallman, age 37, of Upper Marlboro, Maryland, and his brother Eric Maurice Gallman, age 41, of Huntersville, North Carolina, today on charges arising from a $16.5 million fraudulent tax scheme.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Because of the greed of Sean Gallman and Eric Gallman, the U.S. taxpayer was defrauded of over $16 million. The Gallmans used business entities and addresses in different states to create an elaborate scheme to hide their stolen funds.” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “The indictment announced today reinforces the commitment by law enforcement and the Maryland United States Attorney’s Office that individuals who steal from the government will be held accountable.”
The three count indictment alleges that Sean and Eric Gallman established trusts and business entities, including Gallman Charitable Trust and LEA Group Holdings Trust. The defendants used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the Trusts.Acting as the trustee and agent of the Gallman Charitable Trust, on or about January 4, 2013 Sean Gallman allegedly mailed to the IRS a fraudulent 2012 tax return in the name of the trust, requesting a refund of $8,218,930. Also around this time and as the trustee and agent of LEA Group Holdings Trust, Eric Gallman allegedly mailed to the IRS a fraudulent 2012 tax return in the name of the trust, requesting a refund of $8,293,562.
The indictment alleges that the defendants knew that the Trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled.
The indictment seeks forfeiture in the total amount of $16,512,492, the amount of the two refunds.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail fraud; 10 years in prison for conspiring to defraud the government; and five years in prison for false claims against the government. An initial appearance is expected to be scheduled for both defendants in the next two weeks in U.S. District Court in Greenbelt.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Thomas P. Windom, who is prosecuting the case.
Takoma Park Man Sentenced to 5 Years in Prison for Two Residential Mortgage Fraud SchemesRead the Press Release
Used Other Individuals’ Identities, False Income and Credit Information
to Induce Lenders to Provide Home Mortgage Loans
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Mokorya Cosmas Wambura, age 41, of Takoma Park, Maryland today to five years in prison followed by five years of supervised release for conspiring to commit wire fraud and aggravated identity theft arising from two separate residential mortgage fraud schemes. Chief Judge Chasanow also ordered Wambura to pay restitution of more than $400,000.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General - Office of Investigations; Acting Inspector General Michael P. Stephens of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Kathy Michalko of the United States Secret Service – Washington Field Office; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
"This investigation demonstrated that through the cooperative investigative efforts with our law enforcement partners, those who commit fraud affecting financial institutions of the United States will be brought to justice," said John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to his plea agreement and court documents, from March 2007 to November 2008, Wambura conspired with real estate agent Tibakweitira and others to unlawfully use the identity of another individual to buy residential property. For example, in June 2008, Wambura used the stolen identity of another person, along with false income statements and credit information, to buy a residence in Hyattsville, Maryland. The conspirators inflated the sales price by creating false documents for repairs and renovations that were never made. After the settlement, the conspirators divided up the cash received for the purported repairs.
During the second fraud scheme from July 2007 to May 2009, co-conspirator Mrisho Mzese sold his residence in Silver Spring, Maryland to Wambura, and attempted to conceal the scheme by using the identity of Wambura’s friend and roommate as the purported buyer. Wambura again made false statements about the buyer’s assets and income. For example, Wambura listed a joint credit union account held by Wambura and his friend as an asset, which Wambura created without his friend’s knowledge. After securing the mortgage and obtaining possession of the residence, Wambura continued to use his friend’s stolen identity to become a Section 8 landlord for federally subsidized funds. Wambura received portions of the monthly rent paid by the tenant. Wambura and Mzese also caused $29,186 in government housing program assistance checks, payable to Wambura’s friend, to be mailed to Wambura.
As a result of the two conspiracies, Wambura caused between $400,000 and $1 million in losses to federally-insured financial institutions.
Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 37, of Severn, Maryland, previously pleaded guilty to the conspiracy and to aggravated identity theft, and has agreed to forfeit a Range Rover vehicle. Tibakweitira is scheduled to be sentenced on November 3, 2014 at 10:00 am.
Mrisho Mavuruma Mzese, age 39, of Clarksburg, Maryland, was convicted at trial on May 1, 2014 on 11 counts including conspiracy to commit wire and mail fraud, wire fraud, mail fraud and aggravated identity theft, based on his participation in the second fraud scheme in which he engaged with Wambura. Mzese's sentencing is scheduled for August 7, 2014 at 2:00 pm.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
Today's announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein praised HUD-OIG, FHFA-OIG, Treasury OIG, U.S. Secret Service and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin DiGregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who prosecuted the case.
Pimp Sentenced to 46 Months for Sex TraffickingRead the Press Release
Baltimore, Maryland -U.S. District Judge J. Frederick Motz sentenced Michael Darnell Boswell, Jr., age 31, of Raleigh, North Carolina, today to 46 months in prison followed by three years of supervised release for interstate transportation of women for prostitution. Judge Motz ordered that upon his release from prison, Boswell 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 Anne Arundel County Police Chief Kevin Davis.
According to his plea agreement, from January through June 2013, Boswell recruited at least two young women who were struggling financially and transported them to Maryland, Virginia and North Carolina for prostitution. Boswell promised to help them earn more money through his entertainment business. In one case, Boswell first told a woman that he would set up dances and private parties for her, and only later did Boswell begin to set up commercial sex acts for the women. Boswell set up so called “dates” using online ads that advertised sex. Boswell arranged multiple sex acts per day and provided the women with drugs.
On June 20, 2013, Anne Arundel County police arrested Boswell and the two women near the BWI airport, after detectives saw Boswell drive the women from a hotel to local businesses around the airport. The arrest came after Boswell had arranged for a woman to have sex with an undercover detective and was seen driving the woman to a hotel. According to evidence presented to the court, in the year prior to his arrest, Boswell had been arrested twice for trafficking prostitutes. In total, Boswell has been arrested for sex trafficking four times in three states.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Anne Arundel County Police Department for their work in the investigation, and praised the Henrico County Police Department in Virginia and the Raleigh Police Department in North Carolina for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Justin S. Herring and Ayn B. Ducao, who prosecuted the case.
Nursing Home Chain to Pay $750,000 to Resolve False Claims Act AllegationsRead the Press Release
Settles Claims that Care at Skilled Nursing Facilities in Baltimore and Elsewhere
Was Substandard or WorthlessBaltimore, Maryland - Foundation Health Services, Inc. (FHS), its affiliated nursing facilities, and its president and chief executive officer Richard Daspit, Sr., have agreed to pay $750,000 to the United States and the State of Maryland to resolve allegations that they submitted false claims for payment to Medicaid and Medicare for materially substandard and/or worthless skilled nursing facility services. FHS is a Louisiana not-for-profit company that owns and manages nine nursing facilities in Pennsylvania, Mississippi, Virginia and Maryland, including Rock Glen Nursing and Rehabilitation Center, and Harborside (formerly Ravenwood) Nursing Center, both located in Baltimore City.
The settlement agreement was announced today 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 (HHS OIG); and Maryland Attorney General Douglas F. Gansler.
The settlement resolves allegations that between 2006 and 2010, some of the skilled nursing services provided at several nursing facilities managed by FHS were materially substandard and/or worthless because FHS failed to (a) follow appropriate fall protocols; (b) follow appropriate pressure ulcer and infection control protocols; (c) properly administer medications to avoid medication errors; (d) appropriately provide for activities of daily living including bathing, monitoring, feeding and supervising for some residents; (e) provide appropriate mental health treatment; (f) answer call lights promptly; (g) employ a sufficient number and skill-level of nursing staff to adequately care for the residents; and (h) provide a habitable living environment, adequate equipment and needed capital expenditures. The United States and the State of Maryland further claimed that as a result of these failures of care, some residents allegedly suffered from falls, fractures, head injuries; malnutrition; dehydration; pressure sores and infections. FHS and the other released parties deny the allegations.
The government opened its False Claims Act investigation in the summer of 2010 when all of the residents of Ravenwood Healthcare, Inc., a Baltimore nursing facility operated by FHS, needed to be evacuated due to a breakdown of its air conditioning system. The temperatures during that July holiday weekend reached over 100 degrees. The government’s investigation uncovered other quality of care concerns at Ravenwood, the Rock Glen Nursing and Rehabilitation Center, also located in Baltimore, and at a Pennsylvania facility owned by FHS. FHS subsequently closed Ravenwood.
As part of the settlement, FHS and its related facilities have agreed to enter into a Corporate Integrity Agreement with HHS OIG. The agreement requires an independent monitor and allows HHS OIG to oversee the quality of care provided at all of the skilled nursing facilities associated with FHS over the next five years.
“Ensuring quality nursing home care is a top priority for the Office of Inspector General,” said Special Agent in Charge Nick DiGiulio, HHS Office of Inspector General, Philadelphia Regional Office. “It is unthinkable that nursing home owners would profit by skimping on needed health services, and basic facility maintenance, then sit back while vulnerable residents suffer. We will continue to hold nursing homes accountable to give residents the quality health services, and living conditions, we pay them to provide.”
U.S. Attorney Rod J. Rosenstein commended the HHS-OIG, the Maryland Attorney General’s Medicaid Fraud Control Unit and Civil Division of the Department of Justice for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas F. Corcoran, who handled the caseLoan Broker and Attorney Plead Guilty to Defrauding Investors of More Than $1 Million and to Obstructing Judicial ProceedingsRead the Press Release
Baltimore, Maryland - Mervyn A. Phelan, Sr., age 74, of Newport Beach, California, and Gregory E. Grantham, age 56, of Oceanside, California, pleaded guilty late yesterday to a wire fraud conspiracy, wire fraud and obstruction of justice.
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; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
Phelan operated a small company called IAG Underwriters, LLC that maintained an office in Newport Beach, California. IAGU was in the business of underwriting loan applications submitted by real estate developers and then locating project financing from banks and other financial entities. Grantham, an attorney, held the position of IAGU’s general counsel on a part-time basis as a contract employee.
According to their plea agreements and court documents, between mid-2010 and August 2011, Phelan and Grantham became involved in a fraudulent scheme carried out by Patrick McCloskey and Brian McCloskey, who both resided in Baltimore County. McCloskey owned a real estate development business known as the McCloskey Group, LLC, while Belzner, a home builder, began working with McCloskey in late 2008 or early 2009. Phelan and IAGU began working with the McCloskey Group trying to locate sources of financing for its projects in about 2009.
Beginning in 2009 and continuing through June 2011, Belzner and McCloskey persuaded a series of private money lenders to loan them funds to establish that the McCloskey Group had additional reserves of liquidity that would supposedly help it obtain loans it was seeking in connection with real estate development projects through IAGU. Belzner and McCloskey falsely represented that the funds would be maintained in an escrow account under the control of Kevin Sniffen, a licensed attorney and escrow agent in Baltimore County; that the funds would not be used for any other purpose; and that the money would be returned to the lender, either upon the funding of the loan or after a specified period of time. In return for this temporary use of the lender 's funds, Belzner and McCloskey promised to pay substantial fees or interest. In fact, once the lenders transferred their funds into the escrow accounts, Belzner directed McCloskey to remove those funds from the escrow accounts without the knowledge or permission of the lenders. Belzner and McCloskey then used the majority of the stolen funds to pay for their personal and business expenses. The total losses resulting from the scheme were approximately $20 million. Belzner, McCloskey, and Sniffen have all previously entered guilty pleas in connection with their role in the scheme.
Beginning in about the late summer of 2010, Phelan and Grantham co-operated with Belzner and McCloskey in their scheme to defraud by (1) making false representations to help persuade private lenders and investment partnerships to loan sums of money to the McCloskey Group for the purposes of meeting “liquidity” requirements imposed by IAGU or various prospective lenders and to place these funds in an escrow account controlled by Kevin Sniffen; and by (2) making false representations to dissuade previous escrow account lenders from demanding the return of their funds when the original time period established for the loan expired without the McCloskey Group obtaining financing for the project in question. In particular, Phelan and Grantham repeatedly advised various escrow account lenders that funding on a particular project was imminent when they knew this was not the case, and in one case represented that they were now holding millions of dollars in escrow funds tendered by one group of lenders when this was not true.
While Phelan and Grantham admitted that they made false statements to escrow account lenders during the scheme at Belzner’s and McCloskey’s behest, they asserted that for most of the time period in question, they did not know that Belzner and McCloskey had previously stolen the escrow account funds. Under his plea agreement, however, Grantham admitted that he was criminally responsible for the loss of $1.2 million funds suffered by an investment entity named Murcielago, LLC in June 2011. As part of his plea agreement, Phelan admitted that he was criminally responsible for the loss of more than $2.5 million in escrow funds and pled guilty to a count charging him with making false representations about the control of $4.350 million in escrow funds to an escrow account lender in November 2011. The government continues to maintain that Phelan and Grantham shared criminal responsibility for the loss of over $20 million in escrow funds. The Court will consider evidence and make a finding on this issue at the defendants’ respective sentencings.
Phelan and Grantham also pleaded guilty to obstructing grand jury proceedings from September to December, 2012. During the summer and fall of 2012, a grand jury sitting in the District of Maryland was continuing the investigation of the fraud scheme. By this time, Belzner had already been indicted for conspiracy to commit wire fraud and this fact was publicly known. On September 26, 2012, FBI agents served Grantham and Phelan with grand jury subpoenas which called for the production of documents relating to the scheme. Thereafter, Phelan and Grantham agreed that they would not produce certain responsive records that were then on their computers or in their possession, because those particular records would reveal their cooperation with and assistance to Belzner and McCloskey in providing false information to the escrow account lenders and their counsel. The records that Phelan and Grantham were willing to produce were provided to the FBI on November 19, 2012; incriminating records were not produced or were deleted from their computers and compact discs.
Phelan and Grantham face a maximum sentence of 20 years in prison each on each charge of conspiracy and wire fraud, as well as a maximum sentence of five years in prison for obstruction of justice. U.S. District Judge James K. Bredar has scheduled sentencing for Phelan and Grantham on September 8 and 15, 2014, respectively.
Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Glen Arm, Maryland, Brian McCloskey, age 42, of Baltimore and Kevin Sniffen, age 52, of Phoenix, Maryland have each pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI and IRS – Criminal Investigation Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Jefferson M. Gray and Kathleen O. Gavin, who are prosecuting the case.
Financial Advisor Indicted for Securities FraudRead the Press Release
Allegedly Altered Monthly Statements to Hide Investment Losses
Baltimore, Maryland - A federal grand jury has indicted Jagveer Singh, age 55, of Clarksville, Maryland, on charges of securities fraud. The indictment was returned yesterday and Singh was arrested today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
Singh was an investment advisor who provided investment advice and services to clients in Maryland through two companies he owned, A&S Financial Services, Inc. and later, Synergia Capital Management, LLC. A&S provided financial planning, investment advice and tax services to affluent investors and small businesses. Synergia provided consulting and advisory services in the areas of financial planning, investment advice and business development and management. Both companies were located in Clarksville.
Singh has a Ph.D. in molecular biology, an MBA degree from The Johns Hopkins University, and worked as a licensed stockbroker from 2000 to 2002 at a large financial investment company.
According to the one count indictment, from January 2008 to June 2010, Singh altered a client’s monthly statements from an on-line brokerage firm that executes purchases and sales of securities, before providing those statements to the client, in order to conceal investment losses. Singh increased the market value shown on the monthly statement for numerous securities. In all, Singh altered over 24 monthly statements to hide between $224,747.34 and $53,186.76 in losses in any given month. In addition, during the time when Singh was altering his client’s monthly statements, the account suffered a total loss of about $310,310.70. During this time, Singh obtained $14,382.52 in commissions from the client.
The indictment seeks forfeiture of $324,693.22.
Singh faces a maximum sentence of 25 years in prison followed by three years of supervised release and a fine of $250,000. Singh is scheduled to have his initial appearance today at 3:30 p.m. in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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 U.S. Postal Inspection Service - Washington Division for its work in the investigation and thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Ex-Wife Sentenced to Five Years in Prison for Distributing Child PornographyRead the Press Release
Ex-Husband Previously Sentenced to Over 24 Years for Producing Child Pornography and Attempting to Entice a Minor to Have Sex
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Lori Fisher, age 46, formerly of Bel Air, Maryland, today to five years in prison followed by five years of supervised release for distributing child pornography. Judge Bredar ordered that upon her release from prison, Fisher must register as a sex offender in the place where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to her plea agreement and court documents, at the request of her then husband David Fisher, Lori Fisher took approximately 50 photos, a number of which were sexually explicit, of two minor females on at least two occasions between August and December of 2008. Lori Fisher took the photos with her cell phone and texted the images to David Fisher. The Fishers have subsequently divorced.
On November 4, 2012, the Baltimore Police Department received information that images and videos of child pornography were seen on David Fisher’s external hard drive at his residence. A search warrant was executed at David Fisher’s home on November 20, 2012, and computers, cell phones and other items were seized. The sexually explicit images of the victims were found on the computer and cell phone. In all, over 2,200 images and 100 videos of minors engaged in sex, including prepubescent minors, were recovered.
On March 14, 2013, an undercover police detective contacted David Fisher on Facebook posing as a 14 year old female. David Fisher subsequently communicated with the undercover detective through Facebook and email, often using a computer at a public library because his home computer was seized during the search of his residence in November 2012. David Fisher gave the undercover detective his cell phone number and proposed meeting to engage in sex. A meeting was arranged for April 11, 2013. David Fisher was arrested when he arrived at the meeting.
Judge. Bredar sentenced David Ralph Fisher, age 43, of Baltimore, on April 22, 2014 to 293 months in prison followed by lifetime supervised release for producing child pornography and attempting to entice a minor to engage in sex.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Grandson of Naval Historian Charged with Stealing Historical Records Relating to His GrandfatherRead the Press Release
Baltimore, Maryland - A criminal complaint was filed late yesterday under seal charging Samuel L. Morison, age 69, of Crofton, Maryland, with theft of government property, specifically, historical records related to his grandfather, Rear Admiral Samuel Eliot Morison. Morison was arrested today. The complaint was unsealed at his initial appearance held earlier today in U.S. District Court in Baltimore. Morison was released under the supervision of U.S. Pretrial Services. One of the conditions of his release is that he is prohibited from visiting libraries and archives without prior court approval.
According to the affidavit filed in support of the criminal complaint, on April 12, 2014, Morison allegedly offered to sell records relating to Rear Admiral (RADM) Morison’s work during World War II to the owner of a bookstore, who subsequently agreed to take possession of the records, place them on consignment through his shop and sell them using eBay. On May 12, 2014, special agents assigned to the Archival Recovery Team (ART) with the National Archives and Records Administration reviewed the historical records being offered for sale through eBay. The records were determined to belong to the Naval History and Heritage Command, Operation Archives Branch, Naval Historical Center (Navy Archives), and to be the property of the U.S. government.
The affidavit alleges that on May 21, 2014, a search warrant was executed at Morison’s residence and approximately 34 boxes of government records and property stolen from the Navy Archives were seized. The investigation revealed that Morison was a part-time researcher at the Navy Archives from March 19, 2010, and had access to the records, known as the “Office Files of RADM Morison Papers.” Morison was never given authority to remove the records from the Navy Archives.
Morison faces a maximum sentence of 10 years in prison for theft of government property.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised NCIS and NARA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James G. Warwick, who is prosecuting the case.
Illegal Alien Sentenced to 21 Months in Prison in Scheme to Ship Stolen Vehicles to West AfricaRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Eric Olaniyan, age 53, a Nigerian citizen residing illegally in Laurel, Maryland, today to 21 months in prison followed by three years of supervised release for conspiring to commit interstate transportation of stolen vehicles. Upon completion of his sentence, Olaniyan will be transferred into ICE custody pending immigration removal proceedings. Judge Motz also entered an order that Olaniyan pay $65,040.46 in restitution.
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); U.S. Customs and Border Protection Baltimore Port Director Andrii Melnyk; and Chief Mark A. Magaw of the Prince George’s County Police Department, Washington Area Vehicle Enforcement (WAVE) unit.
According to Olaniyan’s plea agreement, from 2012 through April 22, 2013, Olaniyan and others shipped stolen cars from the United States to countries in West Africa for resale. The conspirators hired others to steal the vehicles with the keys, so that the vehicles could be more easily sold. Olaniyan was paid cash to store the stolen vehicles at a parking lot or other locations, known as “cooling spots.” The stolen vehicles were subsequently loaded into containers and shipped to buyers in Africa.In early March 2013, a Prince George’s County Police detective located three stolen vehicles parked near Olaniyan’s residence. The movements of the vehicles were tracked through April 2, 2014, and all eventually ended up at warehouses known to be used for loading shipping containers that are exported from the United States. On April 12, 2014, the CBP Baltimore Vehicle Export Team examined the contents of a container and located the three stolen vehicles in the container, as well as a fourth vehicle which had also been reported stolen.
On April 22, 2013, a search warrant was executed at Olaniyan’s apartment. Eight stolen vehicles were found parked in the area. The keys to all eight stolen vehicles were seized from Olaniyan’s apartment, along with a counterfeit vehicle title for one of the vehicles.
The loss associated with the vehicles for which Olaniyan participated in the scheme was over $200,000.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, CBP and Prince George’s County Police Department WAVE unit for their work in the investigation. Mr. Rosenstein also praised the Howard County Police Department, Maryland State Police and the Regional Auto Theft Task Force (RATT) for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Baltimore Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Prostituted a 14 Year Old Female
Baltimore, Maryland - Eric Evans, age 35, of Baltimore pleaded guilty today to sex trafficking involving a 14 year old girl.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
On May 29, 2014, co-defendant Kenneth Ronald Robinson, age 52, of Baltimore, pleaded guilty to the same charge. Co-defendants Cheralyn Crawford, a/k/a “Rachel,” age 25, of Baltimore; Jeffrey Clark, age 43, of Nottingham, Maryland; and Craig Judy, age 29, of Baltimore; pleaded guilty on May 22, 21 and 19, 2014, respectively, to using the Internet to promote a minor to engage in prostitution.
According to the guilty pleas, on the evening of June 17, 2013, Maryland Child Exploitation Task Force members recovered a 14 year old girl from a motel on Joppa Road in Baltimore. The victim was located after law enforcement viewed a picture of her on a known Internet web site that advertises for prostitution, and called the number on the advertisement. Undercover officers made a “date” for prostitution with victim, which led them to her location.
Subsequent interviews of the victim revealed that at Robinson’s direction, the victim had been staying with Crawford and Judy and had been performing commercial sex acts from that hotel for approximately four days. At Robinson’s request, Crawford took sexually explicit pictures of the victim using Clark’s cell phone. Crawford and Judy posted those photos in ads on a website. Judy used the prostitution earnings of both the minor victim and Crawford to pay for the ads. A subsequent search of Clark’s cell phone revealed that it contained photos of both the victim and Crawford used on the website’s sex ads. At Robinson’s direction, Clark transported the victim to motels, stores and restaurants in the Towson, Maryland area. One of the motel rooms used by the victim, Crawford, and Judy was registered to Clark.
The victim also advised that Robinson introduced her to Evans so that she could engage in prostitution at Evans’ direction. The victim told law enforcement that Evans posted sex ads for the victim on a website using photos he had taken of the victim. The victim also stated that Evans kept the money she earned from prostitution. At least one of the victim’s sex ads was posted on June 7, 2013 from an address used by a motel in Towson where records show that Evans had paid for a room from June 3 to 8, 2013.
Evans and the government have agreed that if the Court accepts his plea, he will be sentenced to between 120 and 140 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for Evans on September 9, 2014 at 3:00 p.m.
Robinson faces a minimum of 10 years and up to life in prison at his sentencing on September 11, 2014 at 3:30 p.m. Crawford, Clark, and Judy each face a maximum sentence of five years in prison. Judge Bennett scheduled sentencing for Crawford and Clark on August 14, 2014 at 10:00 a.m. and 3:00 p.m., respectively; and for Judy on August 21, 2014, at 3:00 p.m. Robinson, Clark and Judy remain detained. Crawford is released under the supervision of U.S. Pretrial Services.
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 praised the 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 United States Attorneys Ayn B. Ducao, P. Michael Cunningham and Rachel M. Yasser, who are prosecuting the case.
Husband and Wife Plead Guilty to Charges Relating to A $3.7 Million Advance Fee Scheme and Tax EvasionRead the Press Release
Developed Relationships with Religious Groups as Part of the Scam
Greenbelt, Maryland - Husband and wife Shannon and Yvette Johnson, ages 50 and 52, respectively, of Laytonsville, Maryland, and Corona, California, pleaded guilty to charges in connection with a fraudulent advance fee scheme and tax evasion. Yvette’s guilty plea was today and Shannon pleaded guilty on June 2, 2014.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Tamara W. Ashford of the U.S. Department of Justice Tax Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“Fraud schemes cause tremendous financial damage to everyone, especially members of our community. Engaging in an advance fee scheme and under reporting taxable income is unlawful and honest law abiding citizens are fed up with the likes of those motivated merely by greed,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “IRS Criminal Investigation welcomes opportunities to assist the Department of Justice and their law enforcement partners with dismantling fraud schemes such as this and enforcing the nation’s tax laws.”
Shannon Johnson admitted that he ran a fraudulent advance fee scheme from 2006 to 2009. Shannon Johnson held himself out as a wealthy international investment banker who could provide millions of dollars and euros in financing to businesses and individuals. In return for substantial advance banking fees, the Johnsons promised to provide investors with money which they claimed they held in an overseas bank account. Shannon Johnson provided these businesses and investors with false documents purporting to be from the overseas bank to authenticate the funds, and developed relationships with pastors, ministers, and religious-based organizations to sell themselves as philanthropists on a humanitarian mission. Shannon Johnson received payments and gifts from pastors and ministers who believed substantial donations would be made to their churches. Businesses and individuals wired and mailed the advance fees to multiple bank accounts controlled by the Johnsons in different states. Yvette Johnson opened bank accounts and conducted financial transactions using proceeds obtained from the Johnsons’ business activities.
According to his plea agreement, despite receiving approximately $3.7 million in advance fees from individuals and businesses, Shannon Johnson never provided the promised financing. Instead, the Johnsons used the money to support their lifestyle, which the indictment alleges included the purchase of Bentley, Mercedes Benz and BMW automobiles, the leasing of a $3.5 million residence in California for $18,000 a month, travel on private jets and the funding of the mortgage on their Laytonsville residence. Johnson admitted that he obtained $3.7 million by victimizing at least 11 individuals and businesses.
According to their plea agreements, the Johnsons also evaded taxes on the millions in income earned from the advance fee scheme. The Johnsons admitted that they filed individual tax returns for the tax years 1998 through 2001 using false W-2s to fraudulently generate a total of $66,097 in refund claims, evaded the payment of their 2002 through 2006 corporate and individual taxes totaling $98,220, and evaded the assessment of their 2007 through 2009 taxes. The Johnsons attempted to conceal their income and assets from the IRS by selling assets in their own names, titling assets in the names of nominees, using multiple bank accounts in three states to disperse and conceal income, using nominees and fraudulent taxpayer identification numbers to open and maintain bank accounts, and by using multiple business names to conduct business.Shannon Johnson and the government have agreed that if the Court accepts his plea, he will be sentenced to between four and six years in prison for conspiracy to commit wire, mail fraud, and tax evasion. Yvette Johnson faces a maximum of five years in prison for tax evasion. Shannon Johnson is detained. His bail was revoked in September, 2013, after the Court found that there was probable cause to believe that he attempted to commit another fraud while on pre-trial release for the pending charges in this case. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for Shannon Johnson on September 8, 2014 at 11:30 a.m. and for Yvette Johnson on September 29, 2014 at 9:30 a.m.
As part of his plea agreement, Shannon Johnson will be required to forfeit at least $3.7 million. As a special condition of their supervised release, Shannon and Yvette Johnson will both be required to cooperate with the IRS in determining all taxes owed for tax years 2002 thought 2009, and to pay the IRS all additional taxes, interest and penalties.
United States Attorney Rod J. Rosenstein commended the IRS Criminal Investigation and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant Chief John N. Kane of the U.S. Justice Department, Tax Division and Assistant United States Attorney Thomas Sullivan, who are prosecuting the case.
First Conspirator Pleads Guilty in Conspiracy to Distribute and Sell Millions in Contraband CigarettesRead the Press Release
Transported Contraband Cigarettes from Maryland to New York
Baltimore, Maryland - Adam Azerman, age 59, of Pikesville, Maryland, pleaded guilty today to conspiracy to traffic in contraband cigarettes.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.According to his guilty plea, Azerman conspired with other to receive, possess, sell and distribute contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. Co-conspirators obtained contraband cigarettes, which were transported from Maryland to Brooklyn, New York, and sold at a profit to individuals in New York, who further distributed the contraband cigarettes.
Azerman transported contraband cigarettes from Maryland to Brooklyn, using a van registered in his name. Following a delivery of contraband cigarettes in Maryland, members of the conspiracy arranged for the contraband cigarettes to be loaded into Azerman’s van. Azerman drove his van from Maryland to Brooklyn, New York, where he met a co-conspirator and provided him with the keys to the van. The co-conspirator would take the van and return a few hours later, after having unloaded the contraband cigarettes into a nearby warehouse. Azerman would drive the van back to Maryland. On the days that Azerman transported contraband cigarettes, he used his cell phone to communicate with co-conspirators in New York and Maryland.
Co-conspirators in Maryland purchased quantities of contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area. These transactions included thousands of cartons of contraband cigarettes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes). The total tax evaded was more than $1 million.
Azerman faces a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for September 11, 2014 at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
Elkton Man Sentenced to over 14 Years in Prison for Solicitation to Commit KidnappingRead the Press Release
Baltimore – U.S. District Judge William D. Quarles sentence Andres Dorantes Flores, age 43, of Elkton, Maryland today to 175 months in prison for soliciting others to kidnap a 10 year old boy.
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; Cecil County Sheriff Barry A. Janney, Sr.; and Cecil County State’s Attorney Ellis Rollins.According to Flores’ plea agreement, beginning in at least July 2012, Flores solicited others to kidnap a 10 year boy. The families of Flores and the boy had been friends. Flores approached an acquaintance and suggested kidnaping the boy and demanding a $300,000 ransom from the boy’s father. Flores continued to solicit the acquaintance to help with the kidnapping in subsequent meetings. Flores provided pictures of the boy and his family to the acquaintance.
On August 15, 2012 Flores arranged a meeting with the acquaintance and two men that Flores believed were from Philadelphia who had come to kidnap the victim as part of Flores’ plot. Flores told the men that he had thought the plan through and provided them with instructions to carry out the kidnapping. Flores arranged for the men take the boy from his home in Maryland to Philadelphia where Flores believed the men resided. Flores told the men that after they received the $300,000 ransom, they would each get $75,000. Flores was arrested following the meeting.
United States Attorney Rod J. Rosenstein praised the FBI, Cecil County Sheriff’s Office and Cecil County State’s Attorney’s Office for their work in the investigation and thanked the New Castle County, Delaware Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Baltimore Man Sentenced to 17 Years in Prison for Armed Robbery SpreeRead the Press Release
Committed 22 Armed Robberies of Stores and Businesses
Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Quindell Ryeshawn Gardner, age 22, of Baltimore, Maryland today to 17 years in prison, followed by five years of supervised release, for a commercial robbery conspiracy and possession of a firearm in furtherance of a crime of violence. Judge Garbis also ordered Gardner to pay restitution of $4,291.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Kevin Davis.
According to his plea agreement, Gardner, Tavon McPhaul and others robbed stores in the Baltimore area. After deciding which place to rob, the conspirators would steal a car to use during the robbery. They also used a gun during the robberies to steal cash and cigarettes.
Gardner admitted that he committed approximately 22 armed robberies and co-conspirator McPhaul participated in 12 of those robberies, with Gardner going into the store to commit the robbery and McPhaul driving the getaway vehicle. Between June 28 and July 4, 2012, Gardner and McPhaul robbed five Baltimore area convenience stores, including a convenience store in the 6300 block of Eastern Avenue in Baltimore on July 4, 2012. Gardner used a short-barreled shotgun in each of the robberies.
Gardner was arrested following two convenience store robberies on July 4, 2012, after a car chase. Gardner’s clothing matched that of the individual who participated in both robberies that day. McPhaul, who was driving the getaway car, escaped on foot. While running, McPhaul attempted to wipe the firearm clean with a blanket. A sawed-off shotgun was recovered along the path of McPhaul’s escape. The vehicle driven by McPhaul during the robbery was found to be stolen.
Tavon McPhaul, also age 22, of Baltimore, previously pleaded guilty to the same charge and was sentenced to 145 months in prison and was also ordered to pay restitution of $4,291.
United States Attorney Rod J. Rosenstein praised the FBI, the Baltimore City and Baltimore County Police Departments and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Benjamin M. Block, who prosecuted the case.
Unemployed Middle River Woman Sentenced to Prison in $546,785 Fraudulent Tax Refund SchemeRead the Press Release
Recruited Individuals Who Did Not Owe Taxes Because They Had Little Or No Earned Income
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Tonia Patrice Lawson, age 43, of Middle River, Maryland, today to 10 months in prison, followed by three years of supervised release, for her role in a conspiracy to obtain fraudulent tax refunds. Judge Bennett also ordered Lawson to pay restitution of $546,785.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington Regional Office.
“Criminal conspiracies involving fraudulent refund identity theft schemes damage the integrity of the U.S. financial system and can seriously impact the lives of those victimized. We as taxpayers ultimately pay the price for the greed of these unscrupulous criminals,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “IRS-CI, along with our law enforcement partners and the Maryland United States Attorney's Office, will continue to utilize every tool available to investigate those who conspire to victimize members of our community for their own personal gain.”
According to Lawson’s plea agreement, from February 2010 through April 2013, Lawson, who was unemployed, conspired with her daughters Kiara Skipwith and Jasmine Thomas and with Sheila Anderson-Cloude, to prepare fraudulent tax returns. The defendants recruited individuals who did not owe taxes because they had little or no earned income, and convinced these individuals that they could obtain a substantial refund and therefore should file a federal individual income tax return. Generally, Lawson, Skipwith and Thomas recruited prospects for the scheme, using a variety of methods, including paying referral fees to those who brought recruits to them.
Lawson, Skipwith and Thomas provided the recruits’ personal information to Anderson-Cloude, who would prepare the fraudulent return. The recruits did not provide any income information. False wages and educational expenses were used to falsely claim tax credits. Lawson, Anderson-Cloude, Skipwith, and Thomas misled the recruits by telling them that the refunds they had received were smaller than the refund amounts Anderson-Cloude had actually listed on the fraudulent returns. The “profit” for Lawson and her co-conspirators was the difference between the refund claimed on each tax return and the smaller amount actually paid to the recruit.
Over the course of the scheme, Lawson conspired in the filing of 84 fraudulent tax returns with a resulting loss to the government of $546,785.
Sheila Anderson-Cloude, age 34, of Notthingham, Maryland, Jasmine L. Thomas, age 26, of Baltimore; and Kiara A. Skipwith, age 24, of Parkville, Maryland, previously pleaded guilty to their roles in the scheme. Thomas and Skipwith were each sentenced to three years’ probation and ordered to pay restitution of $90,579 and $199,722, respectively. Anderson-Cloude is scheduled to be sentenced on July 29, 2014.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised IRS Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin, who prosecuted the case.
Former Fugitive Member of A Pickpocket Crew Sentenced to More Prison Time for Failing to Surrender to Serve Her SentenceRead the Press Release
Destroyed Electronic Monitoring Equipment When She Fled
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Crystal Barner, age 28, of Baltimore, today to 14 months in prison for failing to report to serve her sentence in a previous case. Judge Garbis ordered that today’s sentence be served consecutive to Barner’s 33 month sentence in that case.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; U.S. Marshal Johnny Hughes; Special Agent in Charge Brian Murphy of the United States Secret Service – Baltimore Field Office; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to the facts presented at her plea hearing, on December 5, 2013, Barner was sentenced to 33 months incarceration (after credit for time served) and ordered to surrender to serve her sentence on January 6, 2014. This was memorialized in a Judgment entered on December 9, 2013, which stated that Barner should report to the institution designated by the Bureau of Prisons at the date and time specified in a written notice that would be sent to her. If she did not receive such a written notice, Barner was ordered to surrender to the United States Marshal before 2 p.m. on Monday, January 6, 2014.After the sentencing hearing, Barner was required to go to the Marshals Service to verify her residence. Barner falsely verified her address, although she had moved from that address several months earlier. As a result, Barner did not receive the written notice of where she was supposed to self-surrender to the Bureau of Prisons, nor did she comply with the Court’s Judgment by surrendering to the United States Marshall before 2 p.m. on Monday, January 6, 2014.
When she failed to surrender, Barner was contacted by her Pre-trial Services officer, and told him she would self-surrender. During a subsequent telephone conversation, she told him she was in the area looking for parking. In fact, Barner had absconded from supervision and removed and discarded or destroyed her electronic monitoring equipment.
Barner was previously convicted for her role in a scheme to defraud financial institutions by stealing credit cards from the wallets and purses of unsuspecting individuals, then using the stolen credit cards to make purchases. During the course of the conspiracy, Barner and others obtained goods, services and extensions of credit in the amount of $142,717.61, and caused losses to or used the identities of between 10 and 50 financial institutions, businesses and individuals.
United States Attorney Rod J. Rosenstein thanked the U.S. Marshal Service, who apprehended Barner after she fled. Mr. Rosenstein also recognized the U.S. Secret Service, Maryland Transportation Authority Police, Baltimore County Police Department, Baltimore City Police Department, and Atlantic City, New Jersey Police Department for their work in the previous investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Baltimore Fraudster Sentenced to over 4 Years in Prison for His Role in Scheme to Defraud Retail StoresRead the Press Release
Stole Merchandise from Retail Stores and Exchanged the Stolen Items for Gift Cards
Baltimore, Maryland – U.S. District Judge George L. Russell III, sentenced Mark Brunelle, age 47, of Baltimore, today to 51 months in prison, followed by three years of supervised release, for a wire fraud conspiracy in connection with a scheme to steal merchandise from large retailers, then return the stolen items to the stores in exchange for gift cards. Judge Russell also ordered Brunelle to pay over $210,000 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea agreement, from January 2009 through February 2013 Brunelle participated in a conspiracy with Melissa Perry, Deanna Lynch and others, known as boosters, to steal merchandise from large retail stores throughout Baltimore, Anne Arundel, Prince George’s, Howard and Harford Counties in Maryland, as well as Virginia, Pennsylvania and Delaware. The boosters then returned the stolen items in exchange for store gift cards. They used modified Maryland driver’s licenses that contained the personal identifier information of actual persons, without those persons’ knowledge, when returning the stolen items without a receipt. For example, throughout the month of February 2012, Brunelle made returns on seven different days totaling over $1,700 to eight different Home Depot stores in Howard, Baltimore, and Prince George’s Counties in Maryland and Falls Church, Alexandria, and Fairfax Counties in Virginia.
Co-conspirator John Tadros, who owned Busy Bees Convenience Mart located at 335 South Monroe Street, and J&J’s Bar and Liquor located at 1801 Ramsay Street, both in Baltimore, bought the fraudulently obtained gift cards from the boosters for 50% of the card’s value. If Tadros was not present or was otherwise occupied, Tadros instructed store manager Mohamed Al-Omeri, or other store employees, to purchase the cards on his behalf.
On February 27, 2013, the U.S. Secret Service executed search warrants and seized 32 fraudulently obtained gift cards from Tadros’ home and 329 retail store receipts for purchases made with fraudulently obtained gift cards from Busy Bee.
The actual loss to retailers in Maryland caused by the scheme is $401,326.12.
John Tadros, age 45, Melissa Perry, age 34; Deanna Lynch, age 44, and Mohamed Al-Omeri, age 39, all of Baltimore, previously pleaded guilty to their participation in the scheme. Tadros is scheduled to be sentenced on July 1, 2014 at 9:30 a.m. Perry and Lynch were sentenced to 30 months and 18 months in prison, respectively, and were ordered to pay restitution of $401,326.12. Al-Omeri was sentence to one year of probation and ordered to pay restitution of $35,000.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service - Baltimore Field Office for its work in the investigation, and commended the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorney Mark W. Crooks, who is prosecuting the case.
St. Mary’s County Man Sentenced to over 19 Years in Prison for Producing Child PornographyRead the Press Release
Used a Watch Camera to Surreptitiously Film the Victim
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Ronald Davis Pope, age 49, of Mechanicsville, Maryland, today to 235 months in prison, followed by lifetime supervised release, for production of child pornography. Chief Judge Chasanow ordered that upon his release from prison Pope 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 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; St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.
According to Pope’s plea agreement, from February through May 2013, Pope lived with a family and shared a bathroom with the victim, a 14 year old male. Pope placed a watch containing a hidden camera in the bathroom and recorded the victim in the shower and using the bathroom. The camera was placed in a location that allowed Pope to capture videos focused on the victim’s genital area. Pope then transferred the videos to his computer and cellular phone. The victim was not aware that he was being recorded.
On May 2, 2013, federal and state law enforcement officials executed a search warrant at Pope’s residence and seized electronic devices, including Pope’s cellular phone and laptop computer. A forensic analysis of the SD card found in the cellular phone and the laptop recovered a total of 18 videos depicting the victim dressing, undressing, showering and using the restroom. The victim’s penis is exposed in at least 12 of the videos. At least one of the five videos found on the laptop appears to be part of the same video recovered on the cellular phone.
On May 7, 2013, a package addressed to Pope arrived at his residence. The package contained a weather clock hidden camera purchased on May 1, 2013, one day before Pope’s arrest. Later that month, one of Pope’s family members retrieved a package from a post office box belonging to Pope, which contained an HD clock DVR, USB cord and a micro SD card.
In June 2013, federal law enforcement officials seized the camera watch used to record the videos of the victim. Subsequent forensic analysis of the watch camera memory revealed three videos, one of which depicts the victim showering. The spy camera watch also contained an image of Pope’s face.
Chief Judge Chasanow ordered that Pope’s federal sentence run concurrent to the sentence imposed in a case pending the St. Mary’s County Circuit Court involving a separate victim. In that case, Pope has agreed to plead guilty to sexual abuse of a minor and be sentenced to 25 years in prison with all but 20 years suspended. His sentencing in that case is scheduled for 1:30 p.m. today.
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, St. Mary’s County Sheriff’s Office and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kristi N. O’Malley and Nicolas Mitchell, who prosecuted the case.
Timonium Man Pleads Guilty to Stealing over $570,000 from an NIH Research GrantRead the Press Release
Stole Money Intended for Research Conducted at the
National Institute for Drug Abuse Facilities in BaltimoreBaltimore, Maryland - Baltimore, Maryland – Jason Dietz, age 34, of Timonium, Maryland, pleaded guilty today to theft of funds from a federal program, in connection with the theft of at least $571,205 in grant money from the National Institute for Drug Abuse for research conducted at its facilities in Baltimore.
The guilty plea 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 $112,500 was missing from the MMG bank account on which Dietz was a signatory. Dietz admitted that in addition to depositing embezzled funds into his personal bank account, he also embezzled cash that he spent.
As part of his plea agreement, Dietz is required to pay restitution in the full amount of the loss. While the exact amount of the loss will be determined at sentencing, it is at least $571,205.
Dietz faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for September 8, 2014 at 9:00 a.m.
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 is prosecuting the case.Correctional Officer Pleads Guilty in Baltimore Jail Racketeering ConspiracyRead the Press Release
Fourteenth Officer Pleads Guilty
Baltimore, Maryland - Correctional officer Sean Graves, age 48, of Windsor Mill, Maryland, pleaded guilty today to participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).
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; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, the Black Guerilla Family (BGF) has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center BCBIC, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
Graves, a correctional officer at BCDC, admitted that he smuggled contraband into the jail from 2011 to 2013. Graves smuggled in marijuana, tobacco and other contraband on behalf of BGF leader Tavon White. Graves smuggled drugs such as Percocet and marijuana into BCDC for distribution by BGF inmates, and acted in concert with other correctional officers.
Graves faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for September 12, 2014 at noon.Twenty-four of the 44 defendants charged in the conspiracy have pleaded guilty, including 14 correctional officers. One defendant has died. Trial is scheduled to begin November 17, 2014 for the remaining defendants.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Frederick Investment Advisor Indicted for Stealing over $1.2 Million from A ClientRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Travis Wetzel, age 35, of Frederick, Maryland on charges arising from the illegal transfer of $1,282,224 from a client’s annuity account. The indictment was returned on May 28, 2014 and Wetzel was arrested today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Wetzel was a financial advisor, employed with an investment advisory firm located in Rockville, Maryland. In 2009, Wetzel was promoted to branch operations manager. According to the 24 count indictment, from July 2010 to September 2012, Wetzel took a total of approximately $1,282,224 from an annuity account of a client without the client’s knowledge, and used the money for his personal benefit. Wetzel also allegedly laundered at least $376,444 of the money he took by transferring the money to other bank accounts he controlled.
Wetzel faces a maximum sentence of 20 years in prison and a $250,000 fine for wire fraud; and 10 years in prison for money laundering. An initial appearance was held for Wetzel this afternoon at 1:45 p.m. in the U.S. District Court in Greenbelt. Wetzel was released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorney David Salem and Leah J. Bressack, who are prosecuting the case.