District of Maryland
Press releases recorded for this federal judicial district.
Baltimore Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Prostituted a 14 Year Old Female
Baltimore, Maryland - Kenneth Ronald Robinson, age 52, of Baltimore pleaded guilty today to sex trafficking involving a 14 year old girl. 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, May 21 and May 19, 2014, respectively to using the Internet to promote a minor to engage in prostitution.
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; 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.
According to the guilty pleas, on the evening of Monday June 17, 2013, members of the Maryland Child Exploitation Task Force recovered a 14 year old female 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, who led them to her location.
Following her recovery and during subsequent interviews of victim, it was learned 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 photographs of the minor victim in sexually explicit poses and, using Clark’s cellular phone, she and Judy posted those photos in advertisements on an internet website to advertise the victim’s prostitution services. Judy admitted that he reloaded pre-paid Green Dot cards used to pay for advertisements for prostitution on the Internet website with the commercial sex earnings of the minor victim and co-defendant Crawford, who was also a prostitute. A subsequent search of Clark’s cellular phone revealed that it contained photos of both the minor victim and Crawford used on the Internet website’s commercial sex advertisements. At Robinson’s direction, Clark transported the minor 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. Phone records show that Robinson’s cellular phone was in contact with the victim’s phone 45 times between June 12 and June 19, 2013; and with Clark’s phone 18 times between June 15 and June 19, 2013.
Robinson faces a mandatory minimum of 10 years in prison and up to life in prison for sex trafficking. U.S. District Judge Richard D. Bennett has scheduled sentencing for Robinson 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.
Baltimore City Employee and Perry Hall Man Indicted for Conspiracy to Defraud the City of BaltimoreRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Denita Hill, age 25, of Baltimore, and Robert Johnson, age 32, of Perry Hall, Maryland, on charges of conspiracy, wire fraud, and aggravated identity theft, related to a scheme to defraud the City of Baltimore through the reissuance of fraudulent checks for pay and benefits. The indictment was returned on May 7, 2014, and unsealed late yesterday upon the arrest of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to the indictment, Denita Hill was employed as an accountant in the Payroll Accounting Department for the City of Baltimore. Baltimore City employees who left their employment were entitled to a lump sum check of any pay and benefits for which they qualified. Hill was responsible for documenting lost payments and having checks reissued to individuals who had not received their payments. Robert Johnson was employed in the Consumer Relations Service of the U.S. Department of Veteran’s Affairs.
The five-count indictment alleges that from July 11, through August 2, 2013, Hill and Johnson conspired to defraud the City of Baltimore by using financial and identity information of former employees to request fraudulent employee benefit payout checks which were then deposited into Johnson’s personal account and the funds subsequently withdrawn.
According to the indictment, Hill identified individuals who had received and cashed large lump sum payments and then requested that such checks be reissued, as if they had not been received. These duplicate checks would be printed in a location accessible to Hill, who then delivered the checks to Johnson. The duplicate checks bore a forged endorsement, “Pay to the Order of Robert Johnson,” purportedly signed by the recipient. Johnson endorsed and cashed the checks, and deposited the proceeds into a bank account he controlled. Johnson subsequently withdrew the fraudulently deposited funds.
To conceal the scheme, Hill allegedly told officials from Johnson’s bank, and agents from the Baltimore Office of Inspector General, that she had spoken with the check recipients and that the endorsements were genuine. In fact, the indictment alleges that Hill had not contacted any of the recipients and knew the checks were fraudulent. In addition, when Baltimore City discovered the scheme and recouped the funds, leaving a large deficit in Johnson’s account balance, Hill withdrew cash from her own account to cover the negative balance in an effort to prevent further investigations into the scheme.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each of two counts of wire fraud; and two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. The defendants had an initial appearance and arraignment in U.S. District Court in Baltimore on May 28, 2014, and were 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.
United States Attorney Rod J. Rosenstein praised the Baltimore Office of Inspector General, Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine and Special Assistant U.S. Attorney Josh Felsen, a cross-designated Baltimore City Assistant State’s Attorney, who are prosecuting the case.
Dr. John Yacoub Pleads Guilty to Drug DistributionRead the Press Release
Provided Prescriptions to His Girlfriend and Others
Baltimore, Maryland – Dr. John K. Yacoub, age 58, of Baltimore, Maryland pleaded guilty today to conspiracy to distribute and possess with intent to distribute fentanyl, hydrocodone, oxycodone, morphine and methadone.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Chief James W. Johnson of the Baltimore County Police Department; Howard County Police Chief William McMahon; and Commissioner Anthony W. Batts of the Baltimore Police Department.“Dr. Yacoub a long standing medical doctor, not only broke the law by drug trafficking, he betrayed the trust bestowed upon him by the public,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “Members of the medical community are not untouchable when they prescribe controlled substances for no legitimate reason. The abuse of diverted prescription pain medication is the fastest growing drug problem in our country and our DEA Tactical Diversion Program is ready to tackle this problem,” added Tuggle.
According to Dr. Yacoub’s plea agreement, between 2012 and 2013 he provided prescriptions and pills to his Nevada-based girlfriend, who was a drug addict. He initially provided her with Vicodin, and later with oxycodone and morphine. By 2013, Dr. Yacoub was regularly writing prescriptions for morphine and fentanyl patches, for his girlfriend’s personal use. Dr. Yacoub asked two other people (person A and person B) to help him get additional prescription medication for his girlfriend in exchange for providing them with prescriptions for methadone. Specifically, Dr. Yacoub provided person A with prescriptions for methadone in her name and the name of person B. In addition, he provided a prescription for morphine in the name of person B, who had Medicaid. Person B filled the prescription, using Medicaid to pay for the prescription, then provided the morphine to person A, who gave it either to Dr. Yacoub or to his girlfriend. Investigators have determined that Medicaid paid $2,375.92 for morphine prescriptions obtained by person B for Dr. Yacoub.During a search warrant executed on September 23, 2013, investigators obtained patient files for Dr. Yacoub’s girlfriend, person A and person B. None of their files reflected any medical treatment or medical reason for the medications prescribed to them by Dr. Yacoub. Dr. Yacoub admitted that providing the prescriptions to his girlfriend, person A and person B was not within the scope of accepted medical practice.
Dr. Yacoub faces a maximum sentence of 20 years in prison. U.S. District Judge Catherine C. Blake scheduled sentencing for September 23, 2014 at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the DEA, HHS – Office of Inspector General, Baltimore County and Howard County Police Departments and the Baltimore Police Department for their work in the investigation. Mr. Rosenstein also recognized the Maryland Board of Physicians for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting the case.Former Executives of U.S. Corporation Extradited from Britain to Face Federal Fraud Charges in MarylandRead the Press Release
Allegedly Obtained Over $1.4 Million through Fraudulent Reimbursements
Greenbelt, Maryland – Paul Dunham and his wife, Sandra Dunham, both age 58, of Northampton, England, formerly of Montgomery County, Maryland, had an initial appearance today before U.S. Magistrate Judge William Connelly, in U.S. District Court in Greenbelt, Maryland. Yesterday, Deputy U.S. Marshals escorted the couple from England after they were extradited to face a federal indictment on conspiracy, wire fraud and money laundering charges in connection with their employment at PACE, Inc. A federal grand jury returned the indictment on December 7, 2011, and it was unsealed today. Magistrate Judge Connelly ordered that the Dunhams be detained pending a detention hearing scheduled for Tuesday, May 27, 2014, at 11:00 a.m. before U.S. Magistrate Judge Jillyn K. Schulze, in courtroom 3A, U.S. District Court in Greenbelt.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the indictment, PACE, Inc. was a Maryland corporation that produced parts for the repair and reworking of electronics for the military and others. PACE USA had a subsidiary in the United Kingdom called PACE Europe, Ltd. Paul Dunham was President and Chief Operating Officer of PACE USA and Managing Director of PACE Europe. Sandra Dunham was the Director of Sales and Marketing for PACE USA and PACE Europe. The Dunhams were provided with corporate credit cards, and also maintained personal credit cards.
The 13-count indictment alleges that between 2002 and 2009, Paul Dunham and Sandra Dunham fraudulently charged personal expenses to their corporate credit cards and submitted vouchers to PACE for reimbursement that falsely described them as business expenses. The indictment alleges that the couple also fraudulently billed PACE Europe for business expenses already paid by PACE, Inc., obtaining duplicate reimbursements. The personal expenses for which Mr. and Mrs. Dunham obtained reimbursements included furniture, a dog sofa and pet residence, weekly grocery expenses, art work, home cleaning and remodeling services, and airline tickets.
In order to conceal the scheme, the couple allegedly submitted fraudulent expense vouchers. Paul Dunham is alleged to have created, doctored, and falsified receipts and invoices to create the false appearance that they were for business, rather than personal expenses. In addition, Paul Dunham is alleged to have instructed his assistant not to reveal records related to personal purchases made by himself and Sandra Dunham.
Finally, the indictment seeks the forfeiture of $1.4 million, alleged to be the proceeds of the scheme.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 for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney David I. Salem and Special Assistant U.S. Attorney Paul K. Nitze, who are prosecuting the case, and the Office of International Affairs and the U.S. Marshals Service for their assistance in this case.
Two Baltimore Men Plead Guilty to Armed Robbery ConspiracyRead the Press Release
Baltimore, Maryland – Edward Lee, age 43, and Devan Martin, age 41, both of Baltimore, Maryland, pleaded guilty today to conspiring to rob a hair salon and its owner.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Lee and Martin’s plea agreements, on December 1, 2012, Lee, Martin and co-conspirator Michael Gwaltney, were seen via the Baltimore Police City Watch camera system approaching a man who was entering his vehicle, on Carrollton Avenue in Baltimore. Through the City Watch Camera, the monitoring officer was able to observe Lee, Martin and Gwaltney having a conversation with the individual. The conversation appeared to turn into an argument and the victim was seen handing money to Gwaltney, while Lee patted the victim down. As Lee turned away from the victim, the monitoring officer saw a gun in his hand. Lee and Gwaltney then escorted the victim across the street, while Martin rummaged through the victim’s vehicle and removed a briefcase from the trunk. As Lee and Gwaltney entered a building in the block, the City Watch operator saw a gun in Gwaltney’s waistband.
The City Watch operator called for police units to respond to the area. As the units responded, they stopped Martin approximately one-half block from the car with the briefcase. The officers then proceeded into the block and eventually located the victim leaving his wife's business, a hair salon. The victim advised officers that Lee and Gwaltney had taken him into the business and demanded drugs and money from him. The victim stated that after seeing the officers in the block, Gwaltney ordered the victim go out and tell the officers that everything was fine. Eventually, both Gwaltney and Lee exited the business, were placed under arrest, and the business was searched. Officers recovered a .38 caliber revolver, as well as clothing that matched the items worn by Gwaltney as he entered the location. In the yard adjacent to the business, officers recovered a 9mm semi-automatic handgun.
Lee, Martin and Gwaltney had agreed to carry out the robbery of the victim and the hair salon business.Lee, Martin and the government have agreed that if the Court accepts their plea agreements Lee will be sentenced to 10 years in prison and Martin will be sentenced to between five and six years in prison. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Lee on August 13, 2014, and for Martin on September 4, 2014. Michael Gwaltney, age 39, of Baltimore, previously pleaded guilty to his role in the robbery and is awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James T. Wallner and Clinton J. Fuchs, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
NSA Contractor Pleads Guilty to Submitting False TimesheetsRead the Press Release
Claimed To Be Working Full Time On Two Separate NSA Contracts Causing a Loss to the Government of More Than $65,000
Baltimore, Maryland – Lynette C. Jackson, age 33, of Hanover, Maryland, pleaded guilty today to making false claims to the government, in connection with her work as a contractor at the National Security Agency (NSA).
The guilty plea 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; and the National Security Agency, Office of Inspector General.
According to Jackson’s plea agreement, beginning in 2008, she was hired by a DoD subcontractor, Merito, Incorporated as a full time employee to perform work on a specific contract at NSA. Jackson’s primary duty station was within NSA Headquarters and her salary from Merito was approximately $97,000. Merito billed the federal government $95.45 per hour for her services. Jackson was required to submit a timesheet every week to both Merito and the primary contractor, detailing the number of hours she worked in support of the contract. Jackson’s paychecks from Merito were based upon the number of hours she claimed to work.
Jackson admitted that from September 2010 through June 2011, she worked full time for Sentel Corporation, another DoD contractor, at the same time that she claimed to be working full time for Merito. During this time, Jackson billed Merito for full time hours when she actually was only working for Sentel. In all, Jackson submitted 79 fraudulent timesheets to Merito, falsely claiming to have worked 683.75 hours, causing a total loss to the government of $65,264.55.
Jackson faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge William D. Quarles, Jr. scheduled Jackson’s sentencing for September 3, 2014 at 1:00 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice=s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked the DCIS and NSA, Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.
Washington, DC Man Convicted of the Armed Robbery of an Armored Car EmployeeRead the Press Release
Greenbelt, Maryland – A federal jury convicted Steven Vondell Williams, age 47, of Washington, D.C., today on conspiracy, robbery and gun charges related to the robbery of an armored car employee.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to evidence presented at Williams’ six day trial, on May 3, 2011, Williams and his co-conspirator, Alton May, both armed with handguns, robbed an armored car employee at a convenience store in Glenarden, Maryland. The employee was at the convenience store to refill the ATM machine located in the store. Williams and May robbed the employee at gun point, taking a money bag and the employee’s handgun. Williams and May then fled on foot to an apartment complex next to the store where they got into May’s car and proceeded to his residence. On the way, they took the money out of the bag and threw the bag in a dumpster. Once they arrived at May’s residence they located and destroyed a GPS tracking device which was in the money. Williams and May threw the cash, three handguns and two baseball caps used in the robbery onto the roof of the building, then jumped out of the window. The GPS device allowed law enforcement to track the money from the convenience store to the dumpster and to May’s residence, where they recovered the cash, guns and hats from the roof. One of the guns recovered was the one stolen from the armored car employee. Officers recovered pieces of the broken GPS tracker inside and just outside the window of May’s apartment. Williams and May were subsequently identified through DNA recovered from the two baseball caps.
Williams faces a maximum penalty of 20 years in prison for the robbery conspiracy and for the robbery; a mandatory minimum sentence of seven years in prison, consecutive to any other sentence, and up to life in prison for brandishing a firearm during the commission of the armed robbery; and 10 years in prison for being a felon in possession of the firearm. U.S. District Judge Roger W. Titus has scheduled Williams’ sentencing for September 4, 2014 at 11:00 a.m.
Alton May, age 49, of Washington, D.C., initially fled to New York, but was arrested in Montgomery County on November 7, 2011, when he fled from officers who were attempting to perform a traffic stop on the car May was driving. He pleaded guilty to his role in the robbery and was sentenced on October 17, 2013, to 25 years in prison.
United States Attorney Rod J. Rosenstein commended the FBI Washington and Baltimore Field Offices, ATF, Prince George’s County Police Department and Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnson and Leah J. Bressack, who are prosecuting the case.
Two Men Plead Guilty in Scheme to Burn Down House to Collect InsuranceRead the Press Release
Baltimore, Maryland – Saleh H. Fakhoury, age 48, formerly of Lutherville, Maryland, pleaded guilty today to his participation in a scheme to destroy his Maryland home by fire to collect $3 million in insurance proceeds. Hassan Hammoud, age 60, of Dundalk, Maryland pleaded guilty on May 16, 2014 to his participation in the conspiracy.
The guilty pleas were 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; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to their plea agreements Fakhoury owned a home in Lutherville Maryland. In 2007, Fakhoury bought a second home in Florida. By March 2009, Fakhoury owed over $200,000 to credit card companies, utilities and other service providers, as well as over $1.7 million to banks for the mortgages on the properties he owned.Hammoud worked for Fakhoury at Alfeo’s, a pizza restaurant owned by Fakhoury. Fakhoury and Hammoud schemed to destroy Fakhoury’s home in Lutherville by arson. Fakhoury intended to collect the insurance and pay off his debts. Fakhoury agreed to pay Hammoud $20,000 to set his home on fire.
On March 12 or 13, 2009, a fire was deliberately set at the Lutherville home. The fire self-extinguished and minimal damage was sustained. On March 14, 2009, a second fire was deliberately set using paint thinner. The home was completely destroyed.
Fakhoury and Hammoud discussed their financial arrangement for the arson. The two agreed that when the insurance company paid Fakhoury, Fakhoury would pay $50,000 and the money would be sent overseas.
In September 2009, Fakhoury executed a sworn proof of loss to collect $3,155,197 in insurance. The loss statement was false, in that it claimed items were destroyed or damaged in the fire when, in fact, the items were not consumed in the fire, and the fire was intentionally set. The insurance company denied the claim but paid $828,773 to the mortgagor of the Maryland home. On December 2, 2011, Fakhoury filed a civil action against the insurance company in an effort to recover monies under the insurance policy, and claiming over $3 million in compensatory damages. As part of his plea agreement, Fakhoury has agreed to dismiss the lawsuit.
Fakhoury and Hammoud face a maximum sentence of 20 years in prison followed by three years of supervised release and a $250,000 fine for conspiring to use fire to commit a federal felony. U.S. District Judge James K. Bredar scheduled Fahhoury’s sentencing for September 4, 2014 at 2:00 p.m. and Hammoud’s sentencing for August 25, 2014 at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore County Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Judson T. Mihok, who are prosecuting the case.Baltimore Crack Cocaine Dealer Exiled to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Karl McDonald, age 30, of Baltimore, today to 151 months in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute crack cocaine. Judge Quarles enhanced McDonald’s sentence upon finding that he is a career offender based on two previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to McDonald's plea agreement, from at least 2010 through June 2013, McDonald conspired with others to obtain cocaine from suppliers in Arizona and Texas. Once the cocaine arrived in Baltimore, McDonald converted the powder cocaine to crack cocaine for street level distribution. McDonald operated a distribution shop in Baltimore where the crack cocaine was sold. During the spring of 2013, DEA agents intercepted phone calls of members of the drug trafficking organization, including McDonald. On June 6, 2013, law enforcement executed search warrants at locations used by the organization in the Baltimore metropolitan area. DEA seized approximately 250 grams of cocaine, as well as packaged crack cocaine, from the main stash house of the organization.
McDonald admits that he is responsible for the distribution of between 28 and 112 grams of crack cocaine.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two Members of Burglary Crew Plead Guilty to Bank Larceny, Admitting to 13 Bank BurglariesRead the Press Release
Caused Losses of at least $250,000
Baltimore, Maryland – Kenneth Manns, age 47, of Baltimore, Maryland pleaded guilty today to bank burglary and his co-defendant, Aaron Davis, age 39, of Baltimore, pleaded guilty on May 13, 2014, to bank larceny, in connection with a two year scheme to burglarize banks, credit unions and retail stores.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to their plea agreements, from May 2011 through May 2013, Manns and Davis participated in a conspiracy that involved a group of associates, including Donald Taylor and others, to obtain money and property from thirteen banks, credit unions and retail stores by breaking into and entering buildings used in whole or in part as banks and credit unions.In order to avoid apprehension, the burglary crew would case the target location and assess the likelihood of obtaining valuables. One or more members of the conspiracy would stand look-out while others went inside the targeted bank or business. The burglary crew broke into gas stations, convenience stores, credit unions and other commercial establishments in Maryland and Washington D.C. wearing either white paper suits or dark outfits and masks and gloves, while communicating with handheld radios. The burglary crew would cut power lines, telephone lines, cables and other wires and destroy, reposition or disconnect surveillance video cameras. They stole cash, safes, cash-register drawers and lock boxes. On several occasions, the burglary crew gained entry to the ATM room of the target location by carving a hole with a power saw from an adjacent retail space. They also used tools to break into ATMs and safes at the target locations. The burglary crew transported the stolen goods back to locations to include the homes and businesses of the defendants in Maryland.
For example, on August 17, 2012, Manns and Davis put on white paper Tyvek suits, black masks and gloves, and got into the ATM room of a Bank of America in Washington, D.C. by carving a hole with a power saw from an adjacent retail space. The Metropolitan Police responded to alarms, causing Manns and his co-conspirator to flee before gaining access to cash drawer of the ATM machine.
On March 9, 2013, Manns and Davis broke into a Chinese restaurant adjacent to a credit union in Owings Mills, Maryland. They cut the communication network power cables to the credit union. Using industrial cutting tools, they removed a portion of the wall separating the banquet room of the restaurant from the ATM room inside the credit union. They entered the credit union, destroyed the motion sensor and then left the ATM room for approximately an hour in order to gauge whether there was a police response. They then re-entered the ATM room via the restaurant and shifted the direction of the security camera. They attempted unsuccessfully to cut through the ATM vault and gain access to the cash drawer.On March 31, 2013, at approximately 9:45 p.m., Manns and Davis, wearing white masks and black gloves, broke into the Shoe City store in Parkville, Maryland by carving a hole with a power saw from an adjacent unoccupied retail space. Before entering, Manns and his co-conspirators also cut the telephone lines to the retail store which disabled the alarm system. Manns and his co-conspirators removed a safe containing $400 and stole 23 pairs of shoes.
On April 28, 2013, shortly before midnight, Manns and Davis broke a side glass window to the Edmondson Sunoco station in Catonsville, Maryland, entered the store and severed phone, cable and alarm power lines inside. Meanwhile, Taylor served as a lookout from inside a van rented by Manns and parked nearby. After going behind the cashier area, Davis and Manns left the Sunoco and drove away from the gas station in a stolen U-Haul Ford van. More than an hour later, they returned to the Sunoco, re-entered the gas station, attempted to gain entry into the manager’s office and then left the store again. At approximately 3:15 a.m., Manns and Davis returned to the Sunoco gas station a third time and stole $200 from the cash register drawer and removed 2 store safes containing $10,080, using a handcart, while Taylor again served as look-out. They loaded the safes into the stolen U-Haul van and drove away, while Taylor followed them in the rented van.
Donald Taylor, age 59, also of Baltimore, pleaded guilty to his role in the scheme on April 3, 2014.
As part of their plea agreements, Manns, Davis and Taylor will be required to pay restitution in the full amount of the victims' losses, which is at least $250,000.
Manns and Davis each face a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for Davis on July 22, 2014 at 3:00 p.m. and for Manns on July 30, 2014 at 3:00 p.m. Judge Bennett also ordered that Manns be detained pending sentencing and he was taken into custody.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland State Police, Baltimore County Police Department, Baltimore County State’s Attorney’s Office and the Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.Convenience Store Robber Pleads GuiltyRead the Press Release
Committed 14 Convenience Store Robberies in Less Than 2 Months
Baltimore, Maryland – Omar Hance, age 33, of Baltimore, pleaded guilty today to a series of commercial robberies. Darrell Blackwell, age 27, of Columbia, Maryland pleaded guilty on May 1, 2014, to being the get-away driver in two of the robberies.
The guilty pleas were 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; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Hance’s plea agreement, between December 23, 2012 and February 7, 2013, Hance and a co-conspirator, Willie Vinson, robbed 14 convenience stores. In each robbery, Hance or Vinson used what appeared to be a black handgun, but was later determined to be a BB gun, to commit the robbery, taking money and store products by the use or threatened use of force against employees and customers of the store.
For example, on February 7, 2013, Darrell Blackwell drove Hance and Vinson to a 7-Eleven on West 33rd Street in Baltimore. Blackwell parked a short distance away and remained in the vehicle while Hance and Vinson, wearing masks, went into the store. Hance pointed what appeared to be a black semi-automatic handgun at the cashier and demanded money. The cashier turned over $200 in cash and $300 worth of cigarettes. Approximately five minutes later, after Blackwell had driven Hance and Vinson to the Royal Farms store on West 41st Street in Baltimore, they entered the store, while Blackwell again remained in the vehicle. Hance and Vinson announced the robbery and the customers left the store. Hance ordered the store employee to open the cash register, pulled out the black handgun and placed it on the counter, telling Vinson to take the gun. Hance then removed cartons of cigarettes, placing them in a large bag, while Vinson emptied the cash from the register. The two then left the store and sped away in the vehicle being driven by Blackwell.
Witnesses identified the vehicle, which was located by the police aviation unit. Other police units followed the vehicle and saw at least one item thrown from the vehicle. The vehicle eventually stopped at a garage at the Greater Baltimore Medical Center and Blackwell, Hance and Vinson ran away. All three were caught a short time later. Hance and Vinson were wearing the same clothing and fit the physical description of the robbers seen in the surveillance video from the stores. The gun was recovered from the road along the route of the robbers and was determined to be a BB gun.
Vinson previously pleaded guilty to his role in the robberies in Baltimore County Circuit Court and was sentenced to 10 years in prison.
Hance and the government have agreed that if the Court accepts the plea agreement he will be sentenced to 110 months in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Hance on September 2, 2014 at 2:30 p.m. and for Blackwell on August 26, 2014 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department, Baltimore County Police Department and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Scott A. Lemmon, who are prosecuting the case.
United States Attorney’s Office Recognizes National Police WeekRead the Press Release
Calls on All Marylanders to “Thank a Police Officer for Serving with Valor and Integrity”
Baltimore, Maryland – In connection with National Police Week – the week that includes Peace Officers Memorial Day on May 15 – the United States Attorney’s Office today encouraged all Marylanders to take a moment to remember officers who have been killed or wounded in the line of duty and to express their appreciation to the men and women who work every day to protect public safety.
“Police agencies get plenty of attention when things go wrong, but we too rarely take the opportunity to thank law enforcement officers who are on duty every morning, afternoon and evening, every day of the year,” said U.S. Attorney Rod J. Rosenstein. “We are very grateful for the service of the many outstanding officers in our local, state and federal law enforcement agencies who are working together to reduce crime in Maryland. This week, every citizen should take the opportunity to thank a police officer for serving with valor and integrity.”
Additional information about National Police Week is available at http://www.nleomf.org/programs/policeweek/. For details about officers who died in the line of duty in Maryland, visit http://www.odmp.org/search/browse/maryland.
School Proctor Sentenced to Prison in Student Financial Aid Fraud SchemeRead the Press Release
Three Defendants Convicted for Changing Test Scores to Qualify Students for Federal Grants
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jacqualyn Sue Caldwell, age 55, of Baltimore, today to a year and a day in prison, followed by three years of supervised release, for conspiring to defraud a student financial aid program.
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 Steven Anderson, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General Mid-Atlantic Regional Office.“Students without high school diplomas who applied for financial aid to attend trade schools were required to pass the Ability to Benefit test and demonstrate their aptitude to complete the educational program and work in the field,” said U.S. Attorney Rod J. Rosenstein. “By cheating, the defendants defeated the purpose of the tests and defrauded the government.”
Caldwell was a test administrator for a company that offered cognitive tests to schools and businesses. During her employment, Caldwell worked almost exclusively as a test proctor for student admissions at the All-State Career School, a for-profit trade school located on Broening Highway in Baltimore.
Students who applied for federal financial aid at All-State were required to have a high school diploma, possess a GED, or pass a designated Ability to Benefit (ATB) test. Caldwell was certified to administer the ATB test onsite at All-State’s campus. Her duties did not include scoring the tests; rather, she was to collect the students’ answer sheets, seal them in an envelope and mail them to her company’s headquarters in Illinois, where they were scored and the results sent back to All-State. The ATB test used a Scan Tron answer sheet that required students to use pencils to fill in circles next to the correct answers. Student applicants who initially failed the ATB test could take it again.
According to Caldwell’s plea agreement, soon after starting her job as a test proctor at All-State in 2008, an All-State admissions representative asked Caldwell for an applicant’s answer sheet so that the representative could change some of the applicant’s answers to allow the applicant to pass the test. Caldwell agreed. Caldwell allowed the representative access to the answer sheet by not sealing the envelope containing the applicants’ answer sheets and leaving the envelope on the receptionist’s desk. After the admissions representative corrected the applicant’s wrong answers, the representative put the answer sheet back into the envelope, sealed it and left it to be mailed. Thereafter, this process was repeated by the representative for other applicants. Caldwell also agreed to employ the same process for a second representative.
Subsequently, a second representative suggested, and Caldwell agreed, that Caldwell erase and change just enough incorrect answers to provide a passing grade for student applicants taking the test for a second time. The representative provided Caldwell with a completed Scan Tron answer sheet and told Caldwell which student applicants were taking the test for a second time, so that Caldwell could correct their answer sheets.
Although the first two representatives agreed not to tell anyone that Caldwell was changing test scores for their student applicants, a third admissions representative asked Caldwell to change scores on answer sheets, which Caldwell agreed to do. Thereafter, Caldwell was continuously approached in the hallways by the three admissions representatives about “helping” a student pass the ATB test on the second try, and Caldwell agreed to do it every time.
According to Moore’s plea agreement, Moore learned through another admissions representative that Caldwell could ensure that students who failed the ATB the first time would pass it the second time. Between January and December 2011, Caldwell agreed to Moore’s requests to help prospective students pass the test the second time.
During her tenure at All-State from 2008 to December 2011, Caldwell changed the answer sheets for approximately 170 students. Approximately 102 of them went on to enroll at All-State and became eligible to receive federal financial aid in the form of Pell Grants and student loans. Approximately 72 of those students received financial aid totaling approximately $572,255.
All-State admissions representatives Jesse Raymond Moore, Sr., age 30, of Crofton, Maryland and Barry Sugarman, age 63, of Owings Mills, each pleaded guilty to the conspiracy. Moore and Sugarman were paid a salary by All-State and were eligible for performance-based raises and commissions for each student that graduated. Moore and Sugarman admitted that they asked Caldwell to manipulate the test results to give applicants taking the test a second time a passing score, which she did. Sugarman also told prospective students to understate their income from previous years when they applied for federal aid in order to qualify for the maximum amount of Pell grants and student loans. Moore was sentenced to four years probation and ordered to pay a $2,000 fine. Sugarman was sentenced to two years probation and ordered to pay a $5,000 fine.
United States Attorney Rod J. Rosenstein praised the FBI and Department of Education, Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Martin Clarke, who is prosecuting the cases.
Glen Burnie Man Pleads Guilty to Illegal Possession of Guns and Improvised Explosive DevicesRead the Press Release
Baltimore, Maryland – Todd Wheeler, age 28, of Glen Burnie, Maryland, pleaded guilty today to being a prohibited person, specifically an unlawful user and a person addicted to drugs, in possession of firearms, including improvised explosive devices.
The guilty plea 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; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; and Fire Chief Michael E. Cox, Jr. of the Anne Arundel County Fire Department.
According to Wheeler's plea agreement, on January 1, 2014, Wheeler was treated at the hospital for injuries the he told hospital officials he sustained from an explosion when he was attempting to make fireworks. Wheeler attempted to flee the Emergency Room but was apprehended by police who were called to the scene. Police were directed to the home of Wheeler’s grandmother in Millersville, Maryland. She confirmed that Wheeler often stayed there and gave police permission to search the home and an outbuilding located on her property. Officers recovered chemicals used to manufacture high explosives, as well as other explosive materials. Investigators learned that Wheeler received packages at that address and stored the materials in the outbuilding.
The next day, ATF agents interviewed Wheeler, who remained in custody at the hospital. Wheeler advised agents that he was injured when he mixed chemicals and they exploded. He also told the agents that he had previously made explosive devices and detonated them in his yard. A search warrant was executed at Wheeler’s residence in Glen Burnie by Anne Arundel County Police. Over the next two days law enforcement recovered, among other things: several improvised explosive devices, as well as the chemicals and explosive materials used to make them; drugs and drug paraphernalia; a Walther pistol, flare gun and signal flare launcher, along with a conversion kit to allow the launcher to shoot 12 gauge shot gun shells; and 12 gauge shot gun shells.
Further investigation revealed that Wheeler had history of drug addiction dating back to at least 2006. At the time of this incident Wheeler was on probation for driving under the influence of a controlled substance and in a drug test conducted by his state probation officer shortly before the incident Wheeler tested positive for seven different controlled substances.
Wheeler faces a maximum penalty of 10 years in prison. U.S. District Judge William D. Quarles has scheduled sentencing for September 8, 2014 at 1:00 p.m. Wheeler remains detained.
United States Attorney Rod J. Rosenstein commended the ATF, FBI, Anne Arundel County Police Department and Anne Arundel County Fire Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Harvey E. Eisenberg, who are prosecuting the case.
Springdale Pharmacy Technician Sentenced to Five Years in Prison for Stealing Drugs from Walter Reed HospitalRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Issa Wasco Koroma, age 62, of Springdale, Maryland to five years in prison followed by three years of supervised release for conspiring to steal prescription drugs from two federal military hospitals.
The sentence 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; and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations.Koroma admitted that from January 2008 to July 11, 2013, he conspired with others to steal Norditropon, Humatrope, Somatotropin, Botox and other branded varieties of human growth hormone from pharmacies located at Fort Belvoir Community Hospital in Fort Belvoir, Virginia; Walter Reed National Military Medical Center (Walter Reed) in Bethesda, Maryland; and the former Walter Reed Medical Center (Old Walter Reed). They re-sold the stolen pharmaceuticals for profit.
Koroma was a pharmacy technician at Walter Reed. No later than the middle of 2011, Koroma began to steal brands of human growth hormones and Botox from the pharmacy at Walter Reed. From August 2011 to June 2013, Koroma and his co-conspirators stole over $1.3 million worth of pharmaceuticals from the pharmacy at Walter Reed.
Koroma and a co-conspirator also stole other prescription medications from the pharmacies at Fort Belvoir, Walter Reed and Old Walter Reed, which Koroma gave or sold to friends and acquaintances. These included Viagra, Cialis, Diovan, Humulin, Levitra and Lipitor.
On June 11, 2013, law enforcement officers executed a search warrant at Koroma’s residence and seized over 1,500 bottles and packages of prescription medications, including over 100,000 individual pills. A number of stolen prescriptions had been filled but not delivered to individual patients. Those
thefts compromised the names, medical history and other personal identifying information of at least 10 patients treated at Walter Reed.Koroma also stored stolen medications at a private storage unit he abandoned in 2009 or 2010. At the time that the storage unit was abandoned, it contained approximately 600 individual bottles and packages of prescription medication stolen from the pharmacies at Walter Reed and Old Walter Reed.
The total loss to the United States caused by Koroma and his co-conspirators was at least $4,467,000.
Two co-conspirators have been charged federally for their participation in the conspiracy. Their charges are pending.
United States Attorney Rod J. Rosenstein praised the DCIS and FDA-OCI for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Paul Nitze and Assistant United States Attorney Mara Zusman Greenberg, who are prosecuting the case.
Laurel Man Sentenced to over 6 Years in Prison for Transportation of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Jeffrey Ellis, age 35, of Laurel, Maryland, today to 78 months in prison, followed by 15 years of supervised release, for transportation of child pornography. Judge Blake ordered that upon his release from prison, Ellis 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 Colonel Marcus L. Brown, Superintendent of the Maryland State Police.According to Ellis’ plea agreement, on February 16, 2012, an FBI agent working in an undercover capacity signed onto a file sharing program through an Internet-connected computer and chatted with a user named “mdboi78,” later identified as Jeffrey Ellis. The user allowed the undercover agent to download several images of minors engaged in sexually explicit content from the “mdboi78” folder. On June 13, 2012, FBI agents executed a search warrant at Ellis’ residence and recovered three laptop computers, a digital camera, and at least three external hard drives.
At least 250 images, including videos, of child pornography were recovered from the seized items. Logs and chats involving Ellis were also recovered from one of the laptop computers and hard drive. The recovered chats included conversations in which Ellis stated that he was having sex with a 13-year old girl and that he had been having sex with her for approximately two years. Ellis also sent a photo of the girl to the person with whom he was chatting. The child was identified and interviewed by law enforcement. The girl advised that she did not have sex with Ellis and Ellis also denies having sex with the child, although he chatted about having sex with her online.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), which was created in 2010, 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 and to combat child prostitution.
United States Attorney Rod J. Rosenstein commended the FBI and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.
Two Men Charged with Stealing Aluminum Carts from the Postal ServiceRead the Press Release
Scrap Value of Stolen Containers is Alleged to be Over $2.2 Million
Baltimore, Maryland - A federal grand jury has indicted Aaron Keith Howard, age 52, of Brooklyn, Maryland, and Roland Michael Muir, age 57, of Glen Burnie, Maryland, on charges of conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service. The indictment was returned on May 6, 2014. Muir was arrested today. Howard was previously arrested, detained in federal custody and pleaded not guilty at his arraignment on May 9th.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Anne Arundel County Police Chief Kevin Davis.
"Theft of mail transport equipment is a serious crime," said Gary Barksdale, Inspector in Charge, U.S. Postal Inspection Service - Washington Division. "The Postal Service receives no tax dollars for operating expenses and cannot afford to replace valuable equipment to provide reliable customer service. Postal Inspectors are charged with protecting the U.S. Postal Service’s infrastructure and we will continue to aggressively pursue those who threaten the financial and operational health of America’s mail system."
The U.S. Postal Service used and stored mail transport equipment, including large aluminum carts known as over-the-road containers. Muir worked for a private mailer company located in Baltimore, driving a box truck.
According to the two count indictment and affidavit in support of the complaint, Howard and Muir drove in Muir’s employer’s box truck to U.S. Postal Service bulk mail centers in Capitol Heights where they stole the over-the-road containers and loaded them on the truck. Beginning in November 2013, Howard rented a 26 foot moving truck and drove it to the bulk mail centers in Capitol Heights where he stole the containers and loaded them onto the truck .
The indictment and affidavit allege that from April 2012 to April 2014, the defendants sold 1,765 containers containing 383,286 pounds of aluminum to metal recyclers in Maryland, including the Arundel Recycling Center in Anne Arundel County. They received $223,717 in cash. The defendants painted over U.S. Postal Service identifiers on the containers to avoid suspicion. The replacement value of the scrapped containers to the U.S. Postal Service is alleged to be over $2.2 million dollars.
The defendants face a maximum sentence of five years in prison for the conspiracy and 10 years in prison for the theft charge. An initial appearance has been scheduled for Muir at 4:15 p.m. today 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.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division and Anne Arundel County Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow, who is prosecuting the case.
Prince George’s County Developer Daniel Colton Sentenced to Prison in Extortion SchemeRead the Press Release
Last of 17 Defendants to be Sentenced in Broad Extortion Scheme
that Arose from a Pay-to-Play Culture in Prince George’s CountyGreenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Prince George’s developer Daniel Ira Colton, age 64, a resident of Annapolis, Maryland and Raleigh, North Carolina, today to two years in prison followed by three years of supervised release for conspiracy to commit extortion and to make false statements to the Federal Election Commission. Judge Messitte also entered an order that Colton pay a $50,000 fine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to court documents, in early 2006, FBI and IRS-CI agents began investigating allegations of corruption, campaign finance violations, and tax fraud related to several real estate developers in Maryland and their relationships with Prince George’s County officials. The investigation uncovered a far-reaching corruption scheme centered around a “pay to play” culture in the county, orchestrated by then County Executive Jack Johnson and other public officials, in which real estate developers, including Colton, and business owners provided things of value to public officials and their surrogates in return for official acts.
Colton was a prominent developer in Prince George’s County. Colton and other co-conspirators, including developer Patrick Ricker and retired Prince George’s County Fire Department official Karl Granzow, had an ownership interest in Greenbelt Metropark, which sought to design, develop and build a mixed-use project near the Greenbelt Metro Station, called Greenbelt Station. Colton, Ricker and their co-conspirators also had an interest in Day Homes, which was incorporated to construct single family homes in Maryland, and was involved in several development projects in the county.
According to Colton’s guilty plea and court documents, from 1997 through at least September 11, 2008, Colton, Ricker, Granzow and other business persons offered money, trip expenses, meals, drinks, hotel rooms, airline tickets, rounds of golf, employment, mortgage payments, and monetary and in-kind campaign contributions to state and local government officials, including former Director of Prince George’s County Department of Housing and Community Development James Edward Johnson. During much of the conspiracy, from 2001 through 2004, Colton was serving a 38 month federal sentence arising from his convictions in federal court in Greenbelt for conspiracy and bank fraud, related to several development projects in Maryland and a loss to the victim bank of $15 million to $20 million.
In exchange for the bribes, state and local officials performed and agreed to perform favorable official actions for Colton, Ricker, Granzow and other developers, business owners and their companies, including obtaining approval letters for the Greenbelt Station Detailed Site Plan; assisting in the acquisition of surplus property and land from the county for development by Day Homes; providing the conspirators with non-public county information; obtaining necessary state and local approvals and permits for Greenbelt Station and other developments and businesses in the county; voting in favor of legislation favorable to their development projects; and, ensuring that a certain developer would obtain a contract to purchase certain buildings for the county.
State and local officials concealed items they received from Colton and his co-conspirators by failing to report them or by misrepresenting their nature and value. Further, Colton and his co-conspirators concealed campaign contributions to the state and local officials that were above state and federal legal limits by using conduits and in-kind contributions. Specifically, Colton and his co-conspirators recruited “straw donors,” including family members and employees, to make state and federal campaign contributions with funds provided by or reimbursed by Colton and his co-conspirators. Colton and his co-conspirators also provided in-kind contributions to conceal the actual amount of their campaign contributions, such as campaign signs, food, alcohol and the administrative services of their employees and family members.
During the scheme, Colton, Ricker, Granzow and others conspired to provide between $400,000 and $1 million in bribes to public officials in return for official action. Colton pleaded guilty under seal to the charges on September 13, 2010.
James Edward Johnson, age 69, of Temple Hills, Maryland, pleaded guilty to conspiring to commit extortion and was sentenced on April 16, 2012 to 37 months in prison. Judge Messitte also entered an order requiring James Johnson to pay a fine of $25,000 and to forfeit $46,300 that was seized from his safe deposit box.
Patrick Q. Ricker, age 55, of Bowie, Maryland, pleaded guilty on December 30, 2009 to conspiring to commit honest services fraud and to make false statements to the Federal Election Commission; and to tax evasion. His plea was also entered under seal and was unsealed on May 17, 2011. Judge Messitte sentenced Ricker on November 16, 2012 to one year and a day in prison, and also entered an order that Ricker pay restitution of $250,000.
Karl Granzow, age 49, of Upper Marlboro, Maryland, previously pleaded guilty to conspiring to commit extortion and cause false statements to be filed with the Federal Election Commission, and to income tax evasion. Judge Messitte sentenced Granzow on October 3, 2012 to 18 months in prison, and entered an order that Granzow pay a fine of $10,000 and forfeit his financial interest in Greenbelt Metropark.
A total of 17 defendants have been convicted in the related investigations of corruption in Prince George’s County, including Jack Johnson, then County Executive and former State’s Attorney; Leslie Johnson, an elected County Councilwoman and Jack Johnson’s wife; Mirza Hussain Baig, a physician and developer in the County; Amrik Singh Melhi, an owner of numerous businesses in the County; and, Ravinder Melhi, an owner of numerous businesses in the county. These individuals also pleaded guilty to extortion, bribery, state and federal campaign finance violations, and fraud, which all evolved from the pay-to-play culture in the county. They have been sentenced to up to 87 months in prison (Jack Johnson).
United States Attorney Rod J. Rosenstein praised the FBI and IRS-CI for their work in the investigation and thanked the Prince George’s County Police Department for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys James A. Crowell IV, A. David Copperthite and Sujit Raman, who prosecuted these cases.
Metro Station Armed Carjacker Sentenced to over 17 Years in PrisonRead the Press Release
Carjacking Victim Shot and Seriously Injured
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Samuel Damien Bynum, age 24, of Washington, D.C., today to 207 months in prison, followed by five years of supervised release, for conspiring to use a gun during carjackings, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; and Maryland Attorney General Douglas F. Gansler.
“Through coordinated efforts of local, state and federal law enforcement agencies, a gang of dangerous carjackers has been put out of business,” said U.S. Attorney Rod J. Rosenstein.
According to his plea agreement, beginning in January 2011, Bynum conspired with others to commit armed carjackings in Prince George’s and Montgomery Counties. On May 25, 2011, Bynum and co-conspirators drove to the Largo Metro Station in Largo, Maryland in a car they had stolen during a carjacking at the New Carrollton Metro Station a few days earlier. Bynum saw two people park their Camaro in the garage and followed them into the stairwell. Bynum told law enforcement that he blocked the stairwell so that his co-conspirators, who were armed with handguns, could rob the victims. Bynum or a conspirator hit one of the victims with a handgun, but they were unable to steal the victim’s car keys. Bynum and his conspirators fled, but returned a short time later to steal the Camaro after finding the keys to the car during their flight. Upon returning to the area, a co-conspirator gave Bynum one of the handguns and told Bynum to start shooting if the victims did anything. As one of the victims attempted to get into the car, Bynum and his conspirators shot several times at both victims. One of the victims was struck by a bullet and suffered permanent bodily injury requiring significant and ongoing medical attention.
Two alleged co-conspirators are being prosecuted federally and another was prosecuted in state court.
Bynum had previously purchased the handgun he used in the carjacking. Bynum had previously been convicted of a felony and was prohibited from possessing a gun and ammunition.
United States Attorney Rod J. Rosenstein commended the FBI, the Prince George’s and Montgomery Counties Police Departments and State’s Attorney’s Offices, and Maryland Attorney General’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.Member of Cherry Hill Group ‘Little Spelman’ Pleads Guilty to Racketeering Conspiracy, Including MurderRead the Press Release
Murdered a Drug Rival and Helped a Conspirator Murder a Rival Drug Gang Member
Baltimore, Maryland – Dontay Purnell, age 27, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise, related to his drug dealing and violence in the Cherry Hill section of Baltimore.
The guilty plea 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.“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”
According to his plea agreement, from at least 2003 to 2013, Purnell was a member of a group known as “Little Spelman” in the “down the hill” area of Cherry Hill. This group committed robberies, homicides, non-fatal shootings and distributed crack cocaine, heroin, cocaine and marijuana. As a member of this group, it was foreseeable to Purnell that the Little Spelman group was responsible for distributing at least a kilogram of heroin, five kilograms or more of cocaine, 280 grams or more of cocaine base and a quantity of marijuana.In addition to selling drugs, Purnell was recruited to shoot and kill a drug rival, Vincent Paige, in order to expand the group’s drug territory. On April 20, 2006, Purnell approached Paige on the 3400 block of Spelman Road in Cherry Hill and told him he could no longer sell drugs there. Paige said he would be back and Purnell saw him go to a stash location where Paige stored drugs and weapons. Purnell approached Paige and shot him three times, killing Paige.
On April 9, 2011, Little Spelman group member Davon Martin shot and killed Dwight Taylor at a barbershop on W. Saratoga Street in Baltimore. Dwight Taylor was a member of a rival drug group operating in Cherry Hill known as “Up Da Hill.” His murder was in retaliation for a previous murder of another Little Spelman group member. Purnell assisted Martin by serving as the lookout, standing on the corner of Park Avenue and Saratoga Street, while Martin murdered Taylor inside the barbershop. Purnell also helped Martin flee the scene and dispose of some of Martin’s clothes.
Purnell faces a maximum sentence of life in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for August 8, 2014, at 9:00 a.m.
Davon Martin, age 25, of Baltimore, Maryland pleaded guilty on April 24, 2014 to his participation in the racketeering conspiracy, including two murders. Martin and the government have agreed that if the Court accepts the plea agreement he will be sentenced to between 30 and 35 years in prison. Judge Russell has scheduled Martin’s sentencing for July 18, 2014 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Brooke Carey, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Meth Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jorden Barraco, age 34, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute methamphetamine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Carroll County Sheriff Kenneth Tregoning; Chief Jeffrey Spaulding of the Westminster Police Department; and Carroll County State’s Attorney Jerry Barnes.
According to Barraco’s plea agreement, from June through July 2013, Barraco participated in a conspiracy to distribute methamphetamine. On July 7, 2013, members of the Carroll County Drug Task Force tracked Barraco’s vehicle as Barraco traveled from a motel in Timonium, Maryland to Wilmington, Delaware, to obtain narcotics. Barraco spent less than 30 minutes in Wilmington before beginning his return to Maryland. On the way back, Barraco’s vehicle was stopped by the Maryland State Police. A canine alerted for the presence of drugs in the vehicle. During a subsequent search of the vehicle, law enforcement recovered four clear bags containing a total of 112.9 grams of methamphetamineUnited States Attorney Rod J. Rosenstein praised HSI Baltimore and the Carroll County Drug Task Force, comprised of the Maryland State Police, Carroll County Sheriff’s Office, Westminster Police Department and the Carroll County State’s Attorney’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Seema Mittal, who prosecuted the case.
Laurel Man Sentenced to 30 Years in Prison for Sex with A 7-Year OldRead the Press Release
Defendant Had Intercourse with Child and Took Pictures
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Anthony Palomino-Coronado, age 21, of Laurel, Maryland, today to 30 years in prison, followed by lifetime supervised release, for sexual abuse of a minor to produce child pornography. Judge Titus ordered that upon his release from prison, Coronado 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; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“Child exploitation cases often turn your stomach, and this is one of them,” said U.S. Attorney Rod J. Rosenstein.
According to evidence presented at Coronado’s five day trial, on May 2, 2012, the Prince George’s County Police Department responded to a 911 call regarding a missing seven year old female child. During the subsequent search, at approximately 2:20 a.m., the child was found next to a privacy fence that separated the child’s residence from Coronado’s. At the base of the fence on Coronado’s side, officers found an empty condom wrapper. The child was not wearing any underwear and told officers that Coronado asked her to meet him at his house, then helped her get back into her yard when the police arrived.
Witnesses testified that during subsequent separate interviews with a sexual assault nurse, Prince George’s County Police detective and FBI child forensic interview specialist, the victim stated: that she had been to Coronado’s home, specifically his basement, 10 times; that Coronado had been engaging in sexual activity with her, including vaginal sex; and that Coronado had taken pictures of her, with and without her clothes on, with his black and red cellular telephone.
Trial evidence showed that a search warrant executed at Coronado’s residence recovered, among other things, a black and red cell phone, which contained a photo documenting Coronado’s sexual abuse of the child. A forensic examination established that the photo was taken on March 20, 2012, and had been deleted. In addition, six photos of the victim clothed, in the basement, and under the light of a flashlight were also found on the phone. Digital data established that these photos were taken on May 2, 2013, between 1:00 and 2:00 a.m. According to trial testimony, after his arrest the next day, Coronado denied engaging in sex activity with the victim, but admitted that during the night of May 2, 2012, the victim was at his home between 11:00 p.m. and 2:00 a.m., “playing games.”
During trial, on November 20, 2013, the victim testified that Coronado had engaged in sexually explicit conduct with her and identified herself and Coronado in the child pornography picture found on Coronado’s cell phone, as well as in the clothed pictures taken on May 2, 2012, in the basement of Coronado’s residence.
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, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. 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 Kristi N. O’Malley, who prosecuted the case.
California Cocaine Courier Sentenced to Five Years in PrisonRead the Press Release
Transported 50 Kilograms of Cocaine Worth $1.5 Million
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Sergio Nunez, age 41, of Madera, California, today to five years in prison, followed by five years of supervised release, for possession with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Howard County Police Chief William McMahon.“This is drug interdiction at its best. Mr. Nunez was caught bringing into Maryland a significant amount of cocaine. The quick and effective cooperation between our domestic offices along with our state and local law enforcement partners put an end to Mr. Nunez’s courier business,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office.”
According to Nunez’s plea agreement, on May 22, 2013, Howard County Police stopped the vehicle Nunez was driving for speeding. Nunez provided his California driver’s license, but was not able to provide registration or proof of rental for the vehicle. A K-9 officer arrived shortly after and the dog alerted for the presence of drugs in the vehicle. A subsequent search of the vehicle recovered two duffel bags, each containing a large number of dark cellophane wrapped bricks. DEA agents secured the bags, which were determined to contain approximately 50 kilograms of cocaine with a street wholesale value of $1.5 million. Nunez admitted that he knew the bags contained cocaine and that he was to be compensated for transporting the drugs.United States Attorney Rod J. Rosenstein praised the DEA and Howard County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Seema Mittal, who prosecuted the case.
Glen Burnie Drug Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Chad Bennet Brown, age 34, of Glen Burnie, Maryland, on May 8, 2014, to 10 years in prison, followed by three years of supervised release, after pleading guilty to conspiracy to distribute and possess with the intent to distribute heroin and cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Kevin Davis; Chief James W. Johnson of the Baltimore County Police Department; and Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police.
According to Brown’s plea agreement, from May 2013, through February 10, 2014, Chad Bennett Brown, conspired with others to acquire quantities of cocaine and heroin from sources of supply in Texas for distribution in Maryland. Arrangements for the acquisition of the drugs were made by Brown, while a co-conspirator drove from Maryland to Texas to secure the drugs, often carrying cash to pay for the drugs. On one occasion, the co-conspirator was en route from Maryland to Texas when he was stopped by police in Dickson County, Tennessee and approximately $132,000 was seized. This money was intended for delivery to a source of supply in Texas as payment for several kilograms of cocaine.This pattern of activity, which involved Brown making arrangements with the sources of supply and the co-conspirator taking money to Texas or picking up drugs in Texas, was repeated on at least ten occasions. On February 10, 2014, the co-conspirator was arrested with 2.5 kilograms of heroin in Jefferson County, Texas, while en route back to Maryland.
Over the course of the conspiracy, Brown was responsible for the distribution of over one kilogram of heroin and five kilograms of cocaine. At the time of his arrest, Brown was on supervised release for a previous federal drug conviction.
United States Attorney Rod J. Rosenstein praised the DEA, Anne Arundel County and Baltimore County Police Departments and the Maryland Transportation Authority Police for their work in the investigation. U.S. Attorney Rosenstein also recognized the Dickson County, Tennessee Sheriff’s Office, Jefferson County, Texas Sheriff’s Office and the U.S. Attorney’s Office for the Eastern District of Texas for their assistance in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted the case.
Baltimore Man Exiled to 10 Years in Prison for Possessing A Gun to Engage in Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Catherine C. Blake sentenced Trevor Cox, age 21, of Baltimore, today to 10 years in prison followed by five years of supervised release for possession of a firearm in furtherance of a drug-trafficking crime.
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; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on January 5, 2013, Baltimore Police officers responded to the 4000 Block of Park Heights Avenue, Baltimore, Maryland after receiving a tip that a man was carrying a handgun and displaying it to individuals in that area. Officers entered a grocery store located in the area and saw an individual matching the man’s description. The man, who was later identified as Cox, acted in a manner which led the officers to believe that Cox was armed.
The officers then quickly approached Cox to secure any possible weapons and recovered a loaded .38 caliber revolver. Further examination of the revolver showed several attempts to obliterate the serial number.
After his arrest, law enforcement overheard Cox indicate in jailhouse phone calls that he possessed the gun for his own protection while engaged in a conspiracy with others to distribute drugs.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Washington, D.C. Man Sentenced for Robbing BanksRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Keith McBride, age 25, of Washington, D.C., today to 42 months in prison followed by three years of supervised release for conspiring to commit bank robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, McBride, Devontae West and Stephanie Fletcher 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 four occasions from March 13 to May 22, 2013, McBride and others, including juveniles, drove to the following bank branches where he stole a total of $9,093: TD Bank, PNC Bank and Citibank in Washington, D.C.; and SunTrust Bank in Forestville, Maryland. Also, on May 13, 2013 McBride and his conspirators drove to Capitol One Bank in Suitland, Maryland to rob the bank, but left without having obtained any money.
Devontae West, age 26, of Washington, D.C., previously pleaded guilty to his participation in the conspiracy and to possession of child pornography. West and the government have agreed that if the Court accepts the plea agreement, West will be sentenced to 12 years in prison. Chief Judge Chasanow scheduled West’s sentencing for June 16, 2014.Stephanie Fletcher, age 36, of Washington, D.C., has also pleaded guilty to her participation in the conspiracy and is scheduled to be sentenced on June 2, 2014.
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.
U.S. Attorney’s Office Announces Award RecipientsRead the Press Release
New Employee Also Recognized at Courthouse Ceremony
Baltimore, Maryland - Thirteen employees of the United States Attorney’s Office and thirteen law enforcement officers were honored today with the Office’s most prestigious awards. At a ceremony held to announce the awards this morning at the U.S. Courthouse in Baltimore, the United States Attorney also welcomed a new Assistant U.S. Attorney and other employees who have joined the Office since last year.
Former United States Attorney, Maryland U.S. District Judge Catherine C. Blake served as the keynote speaker for the event. Judge Blake was an Assistant U.S. Attorney for ten years and served as U.S. Attorney from 1985 to 1986.
“These award recipients sought justice with exceptional skill and dedication,” commented U.S. Attorney Rod J. Rosenstein. “As the U.S. Attorney’s Office works with our partners in local, state and federal law enforcement to promote the rule of law, punish criminals, deter crime and protect government property, it is essential to maintain our commitment to excellence, integrity and achievement.”
Annual Awards
The following awards were announced for accomplishments over the past year:
Gary Jordan Award
Recipient: Roann NicholsGary P. Jordan served with distinction for many years as an Assistant U.S. Attorney, as First Assistant from March 29, 1987 until his death on October 25, 1996, and as interim U.S. Attorney in 1993. This is an honorary award presented annually to an Assistant U.S. Attorney for exemplary performance that demonstrates the highest traditions of the office: integrity, ingenuity, dedication to public service and fairness.
Barnet D. Skolnik Award
Recipients: Martin J. Clarke
Sandra WilkinsonBarnet D. (Barney) Skolnik was an Assistant U.S. Attorney who led teams that prosecuted numerous white collar criminals and corrupt public officials in the 1970s, including Vice President Spiro T. Agnew. This is an honorary award presented annually to one or more Assistant U.S. Attorneys who demonstrate outstanding professionalism, determination and creativity in a case of unusual public significance.
Employee of the Year Award
Recipient: Elizabeth GardnerThe Employee of the Year Award recognizes sustained superior performance and outstanding achievements by a non-attorney employee. The award also recognizes the recipient's professionalism, dedication and comprehensive knowledge in their area of expertise.
Pete Twardowicz Award
Recipients: Michael Baier
Michael Corcoran
Karen Franks
Lynn Grant
Erika Jenson
David Lee
Sarah LewisThe Pete Twardowicz Award was established in honor of Eugene P. (Pete) Twardowicz, who rendered many years of outstanding service to the U.S. Attorney’s Office as an IRS criminal investigator and a Special Investigator for this Office. This award recognizes law enforcement agents or officers for outstanding cooperation and achievement while working with the U.S. Attorney’s Office on a significant case.
Excellence in Civil Advocacy
Recipient: Thomas H. BarnardThe U.S. Attorney’s Award for Excellence in Civil Advocacy, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding advocacy in civil litigation.
Excellence in Prosecution of Fraud
Recipients: Kevin V. DiGregory
Kristi N. O’MalleyThe U.S. Attorney’s Award for Excellence in Prosecution of Fraud, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting fraud.
Excellence in Prosecution of Violent Crime
Recipient: Paul E. Budlow
Mark W. CrooksThe U.S. Attorney’s Award for Excellence in Prosecution of Violent Crime, established in 2007, is presented annually an Assistant U.S. Attorney for outstanding work in prosecuting violent crime.
Excellence in Prosecution of Organized Crime
Recipient: Ayn B. Ducao
Robert R. HardingThe U.S. Attorney’s Award for Excellence in Prosecution of Organized Crime, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting organized criminal activity.
Excellence in Legal Support
Recipient: Gerry ZinserThe U.S. Attorney’s Award for Excellence in Legal Support, established in 2007, is presented annually to one or more non-attorney employees for outstanding work in support of the mission of the U.S. Attorney’s Office.
Outstanding Contributions to a Law Enforcement Initiative
Recipient: John Allen
Patrick Dugan
Bonnie S. Greenberg
Earl Jenkins
John SheridanThe U.S. Attorney’s Award for Outstanding Contributions to a Law Enforcement Initiative, established in 2007, is presented annually to one or more employees for outstanding work in support of an initiative of the U.S. Attorney’s Office.
Carl S. Lackl Award
Recipient: Michael Baier
Michael Groth
Patrick Michaels
The Carl S. Lackl Award for Exemplary Perseverance and Fortitude in Pursuit of Justice was established in 2008 in honor of Carl Stanley Lackl, Jr. Mr. Lackl witnessed a murder in Baltimore in 2006 and agreed to testify against the suspect he identified. After the suspect was arrested by police and charged in state court with the murder, he used a contraband cellular telephone to contact co-conspirators and arranged to murder Mr. Lackl, who was shot to death outside his house in front of his daughter. All of the conspirators were convicted on federal charges.New Employees
In addition, the U.S. Attorney welcomed new employees who joined the office last year. Assistant U.S. Attorney Zachary Myers and Special Assistant U.S. Attorneys: Frank Balsamello; Nathaniel Cohen; Anthony Enright; Piper McKeithen; James Pearce; and Jennifer Sykes. Non-Attorney Staff: Joanna Neubauer.
Silver Spring Man Sentenced to over 20 Years in Prison for Conspiring to Induce A 9 Year Old Girl to Be Photographed Engaging in Sexual ActsRead the Press Release
Helped Entice the Victim to Submit to Sexual Degradation and Abuse
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced David Andrew Pizer, age 46, of Silver Spring, Maryland today to 249 months in prison followed by supervised release for life, for conspiring to produce child pornography. Judge Grimm ordered that upon his release from prison, Pizer 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 J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, co-conspirator A used pictures of a nine year old girl to create profiles on online forums to advertise to others who expressed a sexual interest in children. Thereafter, and from March 16 to May 11, 2012, Pizer emailed and chatted online with conspirator A and the victim to encourage the victim to submit to sexual degradation and abuse that Pizer either watched through web-cam or that co-conspirator A would photograph and provide to Pizer and others. Pizer also introduced co-conspirator B to the victim and co-conspirator A, to help persuade the victim to continue to engage in sexual acts. Pizer and co-conspirator B repeatedly emailed images of minors dressed in sexually provocative outfits or engaged in sexual acts to co-conspirator A to help groom the victim to engage in sexual acts.
Further investigation revealed that Pizer’s laptop computer had 4,486 images and six videos that depicted children engaged in sexual acts with adults, children in sexually provocative poses or nude image of children. Approximately 605 of the images depicted the victim in lingerie, nude or engaged in sexual acts.
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 the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who prosecuted the case.
Heroin Dealer in Poplar Grove Area of Baltimore Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Isiah Robinson, age 27, of Baltimore, to 10 years in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute heroin.
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 his plea agreement and court documents, from January to July 23, 2013, Robinson conspired with his father, Darryl Robinson Sr., and others to distribute heroin from an open-air drug “shop” in the Poplar Grove neighborhood of Baltimore. On a daily basis, the co-conspirators bought heroin, stored the drugs at stash houses throughout Baltimore City and packaged the drugs to sell on the streets. Isiah Robinson personally sold heroin to customers in Baltimore City while also supervising and directing other street-level dealers.
During the conspiracy, Isiah Robinson and others conspired to distribute and possess with the intent to distribute at least a kilogram of heroin.
Darryl Robinson, age 49, of Baltimore, a leader of the drug trafficking organization, previously pleaded guilty to his participation in the conspiracy and was sentenced to 15 years in prison.United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Scott Lemmon, who prosecuted the case.
Baltimore Cocaine Dealer Exiled to 10 Years in PrisonRead the Press Release
Admitted to Possessing Two Guns, Including One With an Obliterated Serial Number
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Gerod Boyd, age 30, of Middle River, Maryland, today to 10 years in prison followed by three years of supervised release for possession with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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 Boyd's plea agreement, on June 25, 2013, Baltimore City police officers were executing a search warrant at a home in the 5700 block of Eastbury Avenue in Baltimore. Boyd was arrested prior to the execution of the search warrant and had the key to the residence in his hand when he was taken into custody. Located inside the residence was a loaded .38 Special revolver, which Boyd admitted belonged to him. Boyd advised that a .357 revolver with an obliterated serial number, recovered during another search that day from his residence in Middle River was also his firearm.
Investigation revealed that Boyd ran a cocaine distribution network in the 600 block of North Kenwood Avenue in Baltimore, Maryland. Specifically, Boyd used the residence in the 5700 block of Eastbury Avenue and other locations, including a home in the 600 block of North Kenwood Avenue, to store items related to the drug distribution operation. On June 25, 2013, law enforcement officers also executed a search warrant at the home on North Kenwood Avenue and recovered four ounces of cocaine from inside that residence. Recovered near the cocaine was a black bag containing packaging material for street level distribution of drugs, a digital scale, and a razor blade.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Armed Baltimore Robber Pleads GuiltyRead the Press Release
Robbed Eight 7-Eleven Stores in 18 Days
Baltimore, Maryland – John Robinson, age 34, of Baltimore, pleaded guilty today to robbery and using a gun in furtherance of the robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, from December 1 to 18, 2013, Robinson and a co-conspirator robbed eight 7-Eleven Stores, using a loaded revolver. The stores were located in Baltimore on Boston Street, Holabird Street, West 33rd Street, Belair Road, Reisterstown Road, Harford Road, Frederick Road and Pulaski Highway. In each of the robberies, Robinson wore a mask and pointed the gun at the store employee, demanding money. Robinson or his co-conspirator, who was also masked, would take other items as well, such as cigarettes and lottery scratch-off tickets. On some occasions, Robinson would order the store employee to lie on the floor.
Robinson and the government have agreed that if the Court accepts the plea agreement, Robinson will be sentenced to 20 years in prison. U.S. District Judge Catherine C. Blake scheduled his sentencing for August 1, 2014 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department; Baltimore City State’s Attorney=s Office, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who is prosecuting the case.
Worcester County Man Indicted on Charges of Producing, Distributing and Possessing Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Laiton Blake Witkowski, age 41, of Stockton, Maryland, on charges of production, distribution and possession of child pornography. The indictment was returned on May 1, 2014. Witkowski is scheduled to have his initial appearance today at 1:00 p.m. in U.S. District Court in Baltimore.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Worcester County Sheriff Reggie T. Mason, Sr.; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Worcester County State’s Attorney Beau Oglesby.
The seven count indictment alleges that Witkowski produced images of two minor females engaged in sexually explicit conduct. These images appear to have been taken without the knowledge of the victims, including images of one victim who appears to be sleeping and images of the second victim as she is using the restroom. The indictment further alleges that Witkowski distributed and possessed other images of child pornography, including images of prepubescent children being sexually abused.
Witkowski faces a mandatory minimum of 15 years and a maximum of 30 years in prison for each of the two counts of production of child pornography; a minimum of five years and a maximum of 20 years in prison for distribution of child pornography; and a maximum of 20 years in prison for each of the four counts of possession of child pornography.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Ocean City, Worcester County Sheriff’s Office, Maryland State Police Internet Crimes Against Children Task Force (ICAC) and the Worcester County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok and Special Assistant U.S. Attorney Julie Podlesni, who are prosecuting the case.
Armed Bank Robber Pleads Guilty to October 2013 Robbery in DundalkRead the Press Release
Used Inside Information Provided By His Accomplice
Baltimore, Maryland –Darrius Roszario D. Washington, age 20, of Baltimore, Maryland, pleaded guilty today to an armed bank robbery in which Washington forced a teller at gunpoint to accompany him and open the bank vault.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
According to Washington=s plea agreement, on October 1, 2013, Washington and an accomplice parked his car in a parking lot near the M&T Bank in Dundalk. Washington’s accomplice had previously been a teller-trainee at the bank and was familiar with the bank layout, bank procedures and the tellers who worked at the bank. Shortly before 7:30 a.m. Washington and his accomplice approached a teller in the parking lot when she got out of her car. Washington pointed a .32 caliber gun at the teller’s head and ordered her to unlock the door of the bank. The teller initially told Washington that she could not open the door but Washington told her he knew she was lying and threatened to “blow her head off,” if she didn’t unlock the door. The teller opened the door and after Washington and his accomplice entered the bank, the teller fled and called police.
Once inside the bank, Washington, using information provided by his accomplice, approached a second teller, calling her by name. Washington knew that the teller had access to the bank’s vault. Using the gun, Washington forced the teller to accompany him to the vault and ordered her to open the door, threatening that if she did not, she would never see her child, whom Washington called by name, again. The teller opened the vault door and Washington forced her to the floor at gunpoint. Washington removed the money from the vault, while his accomplice emptied the cash from the teller drawers. Washington and his accomplice then left the bank, carrying a canvas bag filled with $133,600, stolen from the bank, got into their car and attempted to flee. They were arrested a short time later and officers recovered the cash stolen from the bank, the gun used during the robbery, and the hats and blue latex gloves worn by Washington and his accomplice during the robbery.
Washington faces a maximum penalty of 25 years in prison for armed bank robbery. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 1, 2014, at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and Judson T. Mihok, who are prosecuting the case.
Two Business Owners Indicted in Alleged Wire Fraud Conspiracy to Fraudulently Obtain More Than $1.8 Million in Government Contracts Under the SBA’s 8(A) ProgramRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Yogesh K. Patel, age 47, of Gaithersburg, Maryland, and Wesley Burnett, age 54, of Hermosa Beach, California, for conspiracy to commit wire fraud in connection with a scheme to fraudulently obtain more than $1.8 million in federal government contracts through the use of the Small Business Administration’s 8(a) program, designed to assist disadvantaged businesses.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Brigadier General Kevin J. Jacobsen, Commander Air Force Office of Special Investigations; and Mary L. Kendall, Deputy Inspector General, Department of the Interior.
Yogesh K. Patel was the owner of United Native Technologies, Inc. (“UNTI”), which, according to its articles of incorporation, was formed to “perform information technology services to federal, state and local government, as well as commercial.” In 2005, Patel applied for and was granted certification as a minority or socially disadvantaged owned business under the SBA’s 8(a) program. In addition to a broad scope of assistance from SBA, participants in the 8(a) program can receive sole source government contracts that are reserved for minority or socially disadvantaged owned companies.Wesley Burnett owned Total Barrier Works (TBW), a professional services company specializing in the maintenance and installation of anti-terrorist systems and vehicle control equipment such as security barriers, bollards, gates, uninterrupted power systems (UPS) and all other perimeter security anti-terrorist equipment.
The indictment alleges that Patel and Burnett agreed to use UNTI to bid on 8(a) set aside contracts at federal government installations, including military bases and federal buildings, with Burnett, TBW and individuals at Burnett’s direction actually performing the work necessary to fulfill these contracts. Burnett also agreed to pay Patel approximately 4.5% of the total value of any contract awarded to UNTI. As a result, the indictment alleges that between January 2010 and November 2013, UNTI was fraudulently awarded more than $1.8 million in 8(a) set-aside U.S. Government contracts, while the work on the contracts was actually performed by Burnett’s company and employees.
Patel and Burnett each face a maximum sentence of 30 years in prison and a $250,000 fine for conspiracy to commit wire fraud. No court appearance has been scheduled for the defendants.
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 National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General, U.S. Air Force Office of Special Investigations and the Department of the Interior, Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Four Indicted in Conspiracy to Bribe Post Office ManagersRead the Press Release
Station Managers Allegedly Submitted Fraudulent and Inflated Invoices for Landscaping and Cleaning Services in Exchange for Bribe Payments
Baltimore, Maryland - A federal grand jury has indicted Richard Louis Wright III, age 46; Kimberly A. Parnell, age 43; Shane Anderson, age 37, all of Baltimore; and Ladena D. Sketers-Anderson, age 47, of Randallstown, Maryland, on charges related to a bribery conspiracy to obtain contracts with the U.S. Postal Service. The indictment was returned on April 30, 2014.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“The indictment alleges that two post office station managers accepted bribes in return for contracts for landscaping, snow removal, and cleaning services,” said U.S. Attorney Rod J. Rosenstein. “Officials who exercise governmental authority are obligated to use it for the public good and not to advance their own financial interests.”
Beginning in January 2007, Wright was the United States Postal Service (USPS) Station Manager of the Waverly Station in Baltimore, and beginning in July 2010, Parnell was the USPS Station Manager of the Pikesville Station in Pikesville, Maryland. As part of their official duties as USPS Station Managers, Wright and Parnell had the authority to contract for landscaping, snow removal, and certain cleaning services at the Post Offices they managed, and to submit invoices for those services to USPS for payment. According to the indictment, Wright and Parnell knew one another professionally and personally and consulted with one another on the operations of their respective stations, including referring contractors to one another.
The 29-count indictment alleges that beginning in October 2007 and continuing until approximately October 2013, Wright and Parnell engaged in a scheme to commit bribery, wire fraud and mail fraud by creating, approving and submitting false and inflated invoices for maintenance work allegedly performed at their respective Post Offices by Anderson, Sketers and others, and then splitting the proceeds with the alleged providers of the services.
According to the indictment, in the Spring of 2013, when one of their co-conspirators failed to make timely bribe payments to Wright and Parnell, Parnell proposed that they replace the co-conspirator with Shane Anderson, who operated a landscaping company in Baltimore called Youthful Minds Lawn Care, and whom they believed would make bribe payments to them in exchange for USPS contracts. Thereafter, Parnell, Wright and Anderson agreed that Parnell and Wright would submit false and inflated invoices from Youthful Minds Lawn Care for landscaping services in exchange for a percentage of the proceeds paid to Youthful Minds by the USPS.
Ladena Delore Sketers-Anderson (aka Ladena Sketers) operated a cleaning company called Keep U Clean Janitorial Services, LLC in Randallstown, Maryland. Wright and Sketers had been business partners in a janitorial services company before Sketers went into business as Keep U Clean. Wright used Sketers’ company for cleaning services at the Waverly Station and recommended Keep U Clean to Parnell at the Pikesville Station. The indictment alleges that Wright submitted false and inflated invoices from Keep U Clean in exchange for Sketers paying him a percentage of the funds she received from the USPS. Later, Wright began submitting Keep U Clean invoices to the USPS for cleaning work done by employees at his direction at the Waverly Station, even though he had been directly instructed not to perform contract work at the station he managed. According to the indictment, Wright also proposed to Parnell that Keep U Clean employees under his direction perform cleaning services at the Pikesville Station in exchange for a bribe payment to Parnell and Parnell agreed to that arrangement.
Finally, the indictment seeks forfeiture of any proceeds obtained directly or indirectly, as the result of the scheme, including: $591,791 for Wright; $50,470 for Parnell; $30,455 for Anderson; and $109,976 for Sketers-Anderson.
The defendants face a maximum sentence of five years in prison for the conspiracy and 15 years in prison for each count of bribery. No court appearances have been scheduled for the defendants.
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 National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the USPS – Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Maryland Owner of Loan Brokerage Firms Indicted on Fraud ChargesRead the Press Release
Indictment Seeks Forfeiture of Over $14 Million
Baltimore, Maryland - A federal grand jury has indicted Jeong Joon Moon, a/k/a Patrick Moon, age 46, of Germantown, Maryland, on charges arising from a scheme to defraud financial institutions who loaned money to small businesses. The indictment was returned on April 24, 2014, and unsealed today. Moon was arrested yesterday and his initial appearance is scheduled for 3:00 p.m. today in federal court in Baltimore.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; and Acting Inspector General Fred W. Gibson, Jr. of the Federal Deposit Insurance Corporation.
Moon owned and operated JM Capital Solutions, Inc. and RNB Consulting, Inc., which were loan brokerage firms with offices located in Annandale and Springfield, Virginia. These firms specialized in securing loans for individuals interested in purchasing or refinancing small businesses in Maryland, Virginia, the District of Columbia and elsewhere.
Moon encouraged prospective borrowers to apply for business loans through the SBA’s Section 7(a) program, which authorizes SBA to help small businesses obtain financing by guaranteeing 75 to 90 percent of qualified loans made by commercial lenders. Small business owners are required to invest a certain amount of their own money into the business before they can qualify for the loan. Moon compiled and submitted to lenders the documentation necessary to substantiate the borrowers’ equity injection and ability to repay loans guaranteed by SBA, as well as documentation needed for other commercial loans.
According to the 25 count indictment, from 2006 to April 2014, Moon and others defrauded financial institutions by submitting false copies of the borrowers’ monthly bank statements to reflect more money than was actually in the borrowers’ bank accounts. Moon and others also allegedly prepared and submitted false tax returns for the borrowers which inflated the borrowers’ income. The financial institutions relied on the false information to lend funds to the borrowers, which resulted in loan broker commissions being paid to JM Capital and RNB Consulting.
The indictment also alleges that on July 12 and 15, 2013, Moon altered, destroyed or concealed documents relating to six loans guaranteed by SBA for six small businesses, intending to impede the federal investigation of such loans.
The indictment seeks the forfeiture of $14,708,000, the amount of fraudulently obtained loans.
Moon faces a maximum sentence of 30 years in prison for conspiracy to commit bank fraud, and for each of the 18 counts of bank fraud; and 20 years in prison on each of six counts for destruction of records in a federal investigation
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 SBA - OIG, U.S. Postal Inspection Service, FBI and FDIC for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Marty Clarke, who are prosecuting the case.
Title Company Manager Sentenced to over 4 Years in Prison for $4.8 Million Mortgage Fraud SchemeRead the Press Release
Five Co-Conspirators Previously Pleaded Guilty
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 49, of Riva, Maryland, on April 25, 2014, to 51 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud in connection with a mortgage fraud scheme which resulted in losses of over $4.8 million. Judge Bredar also ordered Kreamer to pay restitution of $2,499,048 to the victims and to forfeit $4.8 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Brian Murphy of the United States Secret Service Baltimore Field Office; Special Agent in Charge Michael P. Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.
According to her plea agreement, in 2002, Kreamer’s Maryland license to issue title insurance policies was revoked after she was convicted of theft for fraudulently endorsing checks at a title attorney’s office where she worked. Despite her conviction, from 2007 until January 2010, Kreamer worked at Sanford Title Services LLC located in Columbia, Maryland, and had significant day-to-day responsibility for the operation of Sanford Title. From June 2008 to January 2010, Kreamer and co-conspirators Niesha Williams, Rhonda Scott, Emeka Udeze and Demetrius Peete arranged various aspects of real estate transactions so they could siphon profits out of the transaction for themselves. They used many fraudulent techniques to further the conspiracy, including: short sales in which the property was sold for a higher price than was represented to the lien holder and the seller; sales of properties not owned by the seller at the time of settlement; real estate transactions in which there were multiple sales of the same property at the same time; real estate transactions in which the buyer’s financial status was misrepresented to lenders; transactions in which the seller and/or buyer were shown different settlement statements and the conspirators used the difference between the figures in the two statements to enrich themselves.
In addition, Kreamer admitted that she personally facilitated deals between her co-conspirators, prepared false settlement statements, improperly disbursed funds contrary to the settlement and lender approved disbursements sheets, failed to pay off mortgage loans in accordance with the settlement documents, directed funds to entities created by herself and her co-conspirators, received proceeds of fraudulent transactions, and improperly issued title insurance policies.
Kreamer admitted that the scheme involved at least 30 victims, including lenders, sellers and buyers of real estate, a title insurance company and lien holders. She further agreed that her offense involved sophisticated means and her abuse of a position of trust at Sanford Title. The reasonably foreseeable loss associated with Kreamer’s conduct is at least $4.8 million.
Niesha Williams, age 34, of Fort Washington, Maryland; Rhonda Scott, age 52, of Oxon Hill, Maryland; Demetrius Peete, age 46, of Manassas, Virginia each previously pleaded guilty to their roles in the fraud and are scheduled to be sentenced on May 1, May 2, and May 7, respectively. Gregory Green, age 49, of Waldorf, Maryland, also pleaded guilty and was sentenced to three months in prison and ordered to pay restitution of $404,596. A fifth conspirator, Emeka Udeze, age 38, of Bowie, Maryland, also pleaded guilty and is awaiting 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 (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, Department of Justice - OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Judson T. Mihok, who are prosecuting the case.
Landover Drug Dealer Sentenced to 14 Years in PrisonRead the Press Release
Greenbelt, Maryland –U.S. District Judge Paul W. Grimm sentenced Gregory Warrick, age 53, of Landover, Maryland, today to 14 years in prison followed by five years of supervised release for conspiring to distribute and possessing with intent to distribute five or more kilograms of cocaine powder. Judge Grimm enhanced Warrick’s sentence upon finding that he is a career offender based on two previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, from May 2012 to March 2013, Warrick bought cocaine powder from a co-conspirator about two to three times a week. Warrick distributed the drugs to others. Beginning in November or December 2012, Warrick used an apartment located on Addison Road in Capital Heights to store and sell cocaine powder.On March 22, 2013, Warrick bought cocaine powder. Later that afternoon, law enforcement executed a search warrant on Warrick’s vehicle while he was a gas station in Landover. They seized 6.22 grams of cocaine powder packaged in 22 baggies from Warrick. Shortly thereafter, law enforcement also executed a search warrant at the apartment Warrick used to sell drugs and seized 133 grams of cocaine powder packaged in 26 baggies, a scale and other drug paraphernalia.
Between five and 15 kilograms of cocaine powder was reasonably foreseeable within Warrick’s agreement to sell, and possess with intent to sell, cocaine powder.
United States Attorney Rod J. Rosenstein praised the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack, who prosecuted the case.
Delmar Drug Dealer Sentenced to Five Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced David Jesse Hotton, age 35, of Delmar, Maryland today to five years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base and cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and members of the Wicomico County Narcotics Task Force: Colonel Marcus L. Brown, Superintendent of the Maryland State Police, Wicomico County Sheriff Michael A. Lewis, Salisbury Police Chief Barbara, Chief Michael Phillips of the Fruitland Police Department Department and Wicomico County State’s Attorney Matthew Maciarello..
According to his plea agreement, Hotton conspired with Ranson Chandler, Tyson Hobson and Floyd Sykes to distribute and possess with intent to distribute large quantities of crack and powder cocaine. During their investigation, DEA and the Wicomico County Narcotics Task Force overheard Hotton on many occasions transacting drug deals on his cell phone. For example, in September 2012, Hotton was overheard saying that he just got a kilogram of cocaine and was going to cook up half or so of the powder into crack. Also that month, Hotton was overheard agreeing to sell two ounces of cocaine for $3,000.Hotton admitted that it was foreseeable that he and his co-conspirators distributed more than 280 grams of crack cocaine and more than 500 grams of powder cocaine from June 2012 to November 28, 2012.
Maryland residents Ranson Chandler, Jr., age 37, of Salisbury; Tyson Gabriel Hobson, Sr., age 37, of Princess Anne; and Floyd Lee Sykes, age 35, of Quantico, previously pleaded guilty to their participation in the conspiracy. Judge Hollander sentenced Chandler to 123 months in prison and Sykes to 46 months in prison. Hobson awaits sentencing.
United States Attorney Rod J. Rosenstein praised the DEA and Wicomico County Narcotics Task Force comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department and the Wicomico County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.Parkville Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland – Rodney Hubert, a/k/a “Noah,” age 39, of Parkville, Maryland pleaded guilty today to sex trafficking of a minor.
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; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, in January 2013, Hubert, a registered sex offender in Maryland, recruited girls, some of whom were underage, to engage in prostitution. He offered a finder’s fee to young prostitutes if they found additional girls to prostitute for them.
Hubert took explicit photos of girls which he posted on internet websites that hosted ads for prostitution. He provided a residence in Parkville to host “in-call” local prostitution. He also instructed the girls on how to use a phone application to communicate with prospective customers and avoid detection by law enforcement.
Hubert sought a 19-year-old associate to work for him as a prostitute beginning in December 2012. Hubert offered her a commission to recruit a 16-year-old Baltimore resident to perform prostitution for him. Hubert invited the 16 year old to reside with him. The 16 year old girl had sex with customers on at least five occasions in the Parkville house, and on at least seven occasions at other locations, as directed by Hubert.
Hubert offered to pay the 16 year old girl $400 dollars to take provocative photos of her wearing lingerie. She posed for the photos taken by Hubert, although Hubert never paid her the promised fee. He did, however, use these photos to post online prostitution ads. Hubert also offered to pay her $1,000 to make a pornographic film with him in which they would engage in sex.As part of his plea agreement, Hubert 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).
Hubert and the government have agreed that if the Court accepts the plea agreement, Hubert will be sentenced to between 168 and 262 months in prison followed by a lifetime of supervised release. U.S. District Judge George L. Russell III has scheduled sentencing for August 1, 2014 at 2:00 p.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Officefor their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who prosecuted the case.
Member of Cherry Hill Group ‘Little Spelman’ Pleads Guilty to Racketeering Conspiracy, Including Drug Dealing and Two MurdersRead the Press Release
Shootings and Murders Attributed to Rival Drug Gangs
Baltimore, Maryland – Davon Martin, age 25, of Baltimore, Maryland pleaded guilty yesterday to conspiracy to participate in a racketeering enterprise, related to his drug dealing and violence in the Cherry Hill section of Baltimore.
The guilty plea 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.“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”
According to his plea agreement, from at least 2003 to 2013, Davon MARTIN was a member of a group known as “Little Spelman” in the “down the hill” area of Cherry Hill. This group committed acts of robbery, homicides, non-fatal shootings and drug distribution, to include crack cocaine, heroin, cocaine and marijuana. From 2009 to 2011, Martin, along with another member of Little Spelman, operated a crack cocaine distribution “shop” out of an apartment located on Round Road. Martin and others sold at least two kilograms of crack cocaine from the apartment on Round Road. On at least one occasion, while in possession of a firearm, Martin robbed an individual who had sold him some bad cocaine. Martin admitted he has also committed other robberies related to his drug distribution.Martin admitted that on January 20, 2011, he shot and killed Rhidell Price, a member of a rival group operating in Cherry Hill known as “Up Da Hill,” in the rear of 2900 Denham Circle. After receiving a call that Price was in the area, Martin and an associate drove down to Denham Circle where Rhidell Price was getting out of a vehicle parked on the street. Martin got out of his vehicle and began shooting at Price, chasing after Price and ultimately killing him. Martin killed Price in retaliation for Martin and another Little Spelman member being shot at by Up Da Hill members a few days earlier.
Two days after Martin killed Price, on January 22, 2011, Little Spelman associate Harry Hicks was shot and killed by Up Da Hill members in retaliation for Price’s murder. On April 9, 2011, Martin shot and killed Up Da Hill member Dwight Taylor at a barbershop on W. Saratoga Street in Baltimore, in retaliation for Hicks’ murder. During the murder, Martin was wearing a black jacket and a black mask which he discarded in a nearby dumpster on Clay Street. Both the mask and jacket were recovered by police from the dumpster. The DNA recovered from both the face mask and the jacket matched Martin’s DNA. A ballistics comparison of the .45 caliber firearm that Martin used to kill Taylor revealed that it was the same gun used on January 28, 2011 by Dominic Hope, another Little Spelman associate, and the former leader of Little Spelman, to shoot Up Da Hill member Antione White, who was leaving the funeral of Rhidell Price. Dominic Hope was subsequently shot and killed on January 20, 2012.
Martin and the government have agreed that if the Court accepts the plea agreement he will be sentenced to between 30 and 35 years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for July 18, 2014 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Brooke Carey, who are prosecuting the case.
Over $56.6 Million Forfeited in E-Gold Accounts Involved in Criminal OffensesRead the Press Release
More Than $20 Million Returned to Bona Fide Account Holders
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander ordered yesterday the forfeiture of $45,816,817.84, the remaining value of over $86.3 million in e-gold, Ltd. (EGL ) accounts seized by the government in 2011. In 2012, Judge Hollander ordered the forfeiture of over $10.8 million in the EGL accounts, bringing the total amount forfeited to over $56.6 million. Judge Hollander also ordered the return of $295,642 to bona fide account holders who were able to verify their ownership of the accounts. Judge Hollander had previously ordered the return of over $19,947,313.91 to identified account holders.
The forfeiture was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy Michalko of the United States Secret Service - Washington Field Office.
U.S. Attorney Rosenstein said, “Civil forfeiture allows the government to recover the proceeds of criminal activity, while assuring that the due process rights of any lawful owners are fully protected.”
EGL was in the business of exchanging traditional forms of currency for precious metals held in electronic form, known as e-metals or e-gold, and settling payer-initiated transfers of e-metals from one customer account to another. In 2008, EGL pled guilty in the District of Columbia to money laundering and operating an unlicensed money transmitting business. EGL sold precious metals in electronic form to provide customers with a means of transferring value from one customer account to another while maintaining anonymity, knowing that at least some of the funds were involved in criminal activities. Non-traditional money transmitting businesses such as EGL are frequently used by criminals to transfer money because they are not as closely regulated as banks and other traditional financial institutions. For that reason, they must be licensed by the state in which they operate and register with the Department of the Treasury.In 2011, the government filed a civil forfeiture action in the District of Maryland against the value of the e-gold accounts, totaling more than $86.3 million, and sent notice of the right to contest the forfeiture to the registered account holders. Some of the account holders who received the notice responded that they were the victims of identity theft and had no connection to EGL.
As part of its plea agreement, EGL identified 12,869 customer e-metal accounts that contained funds derived from a variety of criminal offenses including child pornography, credit card fraud, identity theft, investment fraud and the sale of stolen or non-existent goods on the internet. In 2012, Judge Hollander ordered the forfeiture of more than $10.8 million, the value of those accounts. Judge Hollander also ordered that that $12,287 be returned to 22 claimants from those identified accounts, whose claims the government did not contest.
The government then sought the forfeiture of the remainder of the $86.3 million as property involved in EGL’s criminal offenses, but it agreed to exempt from forfeiture any money claimed by bona fide account holders. The money forfeited yesterday represents the balance of the funds involved in the criminal offenses that was not claimed by account holders, bringing the total forfeited to the government to over $56.6 million.
Digital currencies are generally marketed as offering global acceptance without the need for conversion between national currencies, and are valued at fluctuating rates tied to the price of a particular precious metal, especially gold. Digital currency is used for on-line commerce or for funds transfers between individuals for private purposes. In general, an EGL customer opened an e-gold account, and then could use the internet to transfer the value in the account to any other EGL customer anonymously and instantaneously anywhere in the world. The recipient could then redeem the e-gold for any national currency. Because of the ease with which customers could purchase and transfer e-gold anonymously, outside of the regulated traditional banking system, trading in e-gold became popular among persons looking for a way of laundering criminal proceeds. In particular, e-gold was widely accepted as a means of transacting credit card and identification fraud, high yield investment programs and other investment scams, and child exploitation, but was not widely accepted by large or mainstream vendors.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service Washington and Orlando Field Offices and the SCIRS-SS Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Stefan Cassella, who handled the civil forfeiture for the government.
Allegany County Business Owners Agree to Forfeit Almost $174,000 to Settle Allegations That They Sold Synthetic DrugsRead the Press Release
Operated Puff & Stuff Stores at Three Locations in Cumberland and LaVale
Baltimore, Maryland – Charles and Traci Casey, the owners of Puff & Stuff stores in Cumberland and LaVale, Maryland, have agreed to forfeit $173,988.61, to settle claims that they sold synthetic drugs at their stores.
The settlement 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 the members of the Allegany County Combined Criminal Investigations Task Force (C3I),Colonel Marcus L. Brown, Superintendent of the Maryland State Police, Cumberland Police Chief Charles H. Hinnant, Allegany County Sheriff Craig Robertson; Frostburg Police Chief Royce C. Douty, Frostburg University Chief of Police Cindy R. Smith, and Allegany County State’s Attorney Michael O. Twigg.
According to the settlement agreement and complaint for forfeiture, in April 2012, the Maryland State Police received complaints about a business called “Puff & Stuff,” that operated in Cumberland. The complaints stated that the business is a “head shop,” (a business that sells drug-related paraphernalia including smoking devices and other related items) and sold synthetic drugs. The synthetic drugs are often labeled as different brands, but they are commonly referred to as “spice.” As set forth in the complaint, what the Caseys were selling as “spice” was leafy vegetable matter sprayed with chemicals that have a pharmacological effect on the human body that is similar to that of marijuana. Puff & Stuff currently operates at two locations in Cumberland and another in LaVale, Maryland. A Maryland State Police Task Force initiated an investigation and conducted five controlled purchases of spice from Puff & Stuff stores beginning on April 23, 2012 through February 27, 2013. As a result of the investigation, on March 7, 2013, officers executed five search and seizure warrants at the Casey’s residence; the three Puff & Stuff store locations; and for two of the Casey’s bank accounts, seizing a total of $259,988.61 in cash and numerous packets of spice.Under the terms of the settlement agreement, the Government has agreed to release $86,000 of the seized funds and the Caseys have agreed to withdraw their claims to the remaining $173,988.61. In addition, the Caseys have agreed to stop selling any substances marked or distributed as “potpourri,” “spice,” or “bath salts.”
The claims settled by this agreement are allegations, and there has been no determination of liability.
United States Attorney Rod J. Rosenstein praised the DEA and Allegany County Combined Criminal Investigations Task Force (C3I), comprised of the Maryland State Police, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Frostburg University Police Department and Allegany County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Stefan D. Cassella, who handled the forfeiture.
Two Conspirators Plead Guilty in Mortgage Fraud SchemeRead the Press Release
Provided False Information About the Buyer and Property Renovations
Greenbelt, Maryland – Real estate agent Nsane Phanuel Ligate, age 42, of Ashburn, Virginia, pleaded guilty today to conspiring to commit wire fraud in connection with a mortgage scheme involving the purchase of two properties located on North Patterson Park Avenue in Baltimore. Co-defendant Cane Mwihava, age 43, of Bowie, Maryland pleaded guilty to the same offense yesterday.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Inspector General Michael P. Stephens of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG); Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General (HUD); Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to their pleas, in 2008, Ligate and his co-conspirators identified two properties for sale located at 424 and 444 North Patterson Park Avenue in Baltimore. Also at that time, Mwihava established a shell company called Xavier Engineering and Construction Company (XECC) to receive settlement disbursements for purported home renovations. With assistance from Ligate, co-conspirator Gladyness Silaa acted as the real estate agent; and co-conspirator Larry Johnson acted as the buyer. Ligate, Silaa and Johnson included false statements in the loan applications for both properties regarding Johnson’s employment, income, credit and assets. Mwihava and Ligate falsely inflated the purchase price of the properties by representing to lenders that repairs and renovations had been completed on each property by XECC, including installation of premium kitchen cabinets, granite countertops, stainless steel appliances and marble flooring. None of the purported renovations or repairs were in fact performed.
After the settlement of the properties, the settlement agent disbursed a total of $108,860 to XECC, the amount shown on false invoices submitted for the purported renovations. Mwihava then divided these funds between himself, Ligate, Silaa and Johnson.
On June 5 and 9, 2008, Ligate and Mwihava caused banks to wire transfer $181,159.65, and $179,866.93, respectively, to the title agent to complete the settlement transactions. These amounts were needed to fund the original loan amounts plus additional costs and fees associated with the closings.
As a result of the conspiracy, HUD, which insured the loan for 424 North Patterson Park Avenue suffered a loss of $164,090, and a bank which was the lender for the other property suffered a loss of $188,001.58.
The defendants face a maximum sentence of 30 years in prison and a $1 million fine. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for Mwihava on October 14, 2014, at 1:00 p.m. and for Ligate on October 16, 2014 at 10:00 a.m.
Gladyness Silaa, age 35, of Bowie, previously pleaded guilty to conspiracy to commit wire fraud and her sentencing is scheduled for June 16, 2014 at 10:00 a.m. Larry Johnson, age 57, previously pleaded guilty to making false statements in a loan application and was sentenced on February 24, 2014 to eight months in prison consecutive to the current sentence he is serving on an unrelated case.
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 (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 commended the FHFA- OIG, HUD-OIG, 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, from the Federal Housing Finance Agency, Office of Inspector General, who are prosecuting the case.
One Correctional Officer Sentenced and Another Pleads Guilty in Baltimore Jail Racketeering ConspiracyRead the Press Release
One Defendant Sentenced to 30 Months for Smuggling Drugs;
Thirteenth Officer Pleads Guilty and Admits to Having Sex With BGF InmatesBaltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Katrina Laprade, a/k/a Katrina Lyons, age 32, today to 30 months in prison followed by one year of supervised release for participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Another correctional officer, Tanierdra Finch, age 26, of Baltimore, and Frederick Morrison, a/k/a Fry, an inmate, age 29, pleaded guilty yesterday to the conspiracy.
The sentence and 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; 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.
Laprade and Finch, correctional officers at BCDC, admitted that in 2012 and 2013, they helped smuggle contraband into the jail. Laprade smuggled in marijuana and tobacco on behalf of Stephen Loney, a leader of the BGF. Finch admitted that she smuggled drugs such as Percocet into BCDC for distribution by BGF inmates such as Tavon White and Jamar Anderson. Finch also had sexual relations with some BGF members, including Anderson.
Morrison was a BGF member and in pretrial custody at BCDC from 2012 to 2013. He was involved with and often directed the smuggling of cell phones, tobacco, marijuana and drugs into BCDC through other correctional officers who received payments, gifts or a share of the profits. Morrison had sexual relations with at least one of the correctional officers involved with contraband trafficking. He also helped conceal from prison officials contraband smuggled into the jail.As part of his plea agreement, Morrison and the government have agreed that if the Court accepts the plea agreement, Morrison will be sentenced to five years in prison consecutive to any state prison sentence he is serving. Finch faces a maximum sentence of 20 years in prison for the racketeering conspiracy. Judge Hollander scheduled sentencing for Morrison on August 27, 2014 and for Finch on August 8, 2014.
Thirteen correctional officers have pleaded guilty to their roles in the conspiracy. Two of these correctional officers, Taryn Kirkland, age 23, and Adrena Rice, age 26, both of Baltimore, were sentenced in January 2014, each to 42 months in prison and officer Jasmine Thornton, a/k/a J.T., age 27, of Glen Burnie, Maryland, was sentenced to 32 months in prison on February 5, 2014.
BGF leader Tavon White, age 37; BGF commander Steven Loney, age 25; BGF members Jamar Anderson a/k/a “Hammer” and “Hamma Head,” and Kenneth Parham, both age 24; and Jermaine McFadden, age 25, an associate of BGF; also pleaded guilty to the racketeering enterprise. Parham was sentenced on February 24, 2014 to151 months in prison, McFadden was sentenced on March 12, 2014 to 140 months and Loney was sentenced on January 14, 2014 to nine years in prison. Tavon White and Jamar Anderson are awaiting sentencing.
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.Fraudster Homebuilder Pleads Guilty to Defrauding Investors of More Than $22 Million and to Evading More Than $1.4 Million in Tax PaymentsRead the Press Release
Baltimore, Maryland - Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Glen Arm, Maryland, pleaded guilty late yesterday to a wire fraud conspiracy, wire fraud and tax evasion.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“For over a decade, through a combination of lies and deceit, Patrick Belzner and his coconspirators caused serious financial harm to their victims. These individuals were focused on their own personal gratification with no regard for the consequences of their actions,” said Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office. “Holding cheats such as Belzner accountable for their misdeeds, is critically important to maintaining the integrity of our economy.”
According to Belzner’s plea agreement, from 2009 through August 2011, Belzner, a home builder, worked for a real estate development business known as the McCloskey Group, LLC, owned by Brian McCloskey, who was also a home builder. During that time, Belzner conspired with McCloskey, Maryland attorney Kevin Sniffen and others to defraud investors through a fraudulent investment scheme.
Specifically, Belzner and the conspirators advised wealthy individuals and investment advisers that in order for the McCloskey Group to obtain loans for commercial real estate projects, the loan broker required that large sums of money be deposited in an escrow bank account to show “liquidity.” They further falsely represented that the funds would be maintained under the control of Sniffen, a licensed attorney and escrow agent; would not be used for any other purpose; and that the money would be returned to the investor, either upon the funding of the loan or after a specified period of time. In return for this temporary use of the investor's funds, Belzner and McCloskey promised to pay substantial fees or interest.
Instead, Belzner admitted that he directed McCloskey to remove the investors’ funds soon after they had been deposited into the escrow account. Belzner and McCloskey then used the stolen funds to pay for their personal and business expenses, as well as to make partial repayments to earlier lenders, to pay fees to some of the victim investors to keep them from demanding the return of their money, and to pay the loan broker for its supposed work and expenses in attempting to locate financing sources.
Belzner and his co-conspirators attempted to conceal the fraud by: issuing false bank statements regarding the amount of escrowed funds; falsely representing in emails and by phone the balance of escrow funds and the date when the investors’ money would be returned; and returning part of the victim’s investment using funds fraudulently obtained from other investors. Belzner also wrote scripts for the conspirators to use in telephone conversations or in written communications to lull the victims and their representatives into believing that their escrow monies were safe and would be returned to them as promised in the escrow agreements, as well as to persuade victims not to pursue demands or legal action for the immediate return of their funds.
The government contends that Belzner and his conspirators' fraudulent scheme caused losses in excess of $22 million to more than 10 victim investors.
Belzner also pleaded guilty to evasion of assessed tax payments. In 1995, 1996 and 1998, Belzner stole $1,111,304.78 from his employer at the time, and in 1998, he stole $186,146.71 from another employer, none of which he reported as income on his tax returns for those years. A subsequent IRS audit of those tax years resulted in the assessment of additional taxes, interest and penalties against Belzner of $1,150,935.25 for the 1995 and 1996 tax years and $246,424.50 for the 1998 and 1999 tax years.
To avoid paying those taxes, Belzner admitted that between January 2006 and June 2011, he intentionally concealed income and assets from the IRS and made no payments on his tax debt. For example, Belzner placed his residences, other real estate and automobiles, in the names of corporations that he formed. Belzner paid his personal expenses from bank accounts he opened in the names of the corporations, including his mortgage, ground rent for a vacation home, construction costs on a house that he built, car payments, Ravens season tickets, and private school tuition. Belzner used individuals to act as “straw purchasers” for property that he acquired and to conduct financial and other transactions on his behalf. At Belzner’s direction, McCloskey Group employees and others also cashed more than $175,870 in company checks made payable to them, returning the cash to Belzner or using the cash to pay Belzner's creditors. Belzner also arranged for the McCloskey Group to pay many of his personal living expenses, rather than issuing him salary checks. For example, between January 2009 and June 2011, the McCloskey Group paid more than $1.5 million of Belzner’s personal expenses, including health and life insurance premiums, car, personal loan and mortgage payments, and utility and cable bills. In February 2006 and again in January 2009, Belzner submitted forms to the IRS falsely claiming that he did not have sufficient income to make any payments on the assessed back taxes, penalties and interest. The total amount of assessed tax, interest and penalties owed by Belzner as of August 2013 was $2,619,870.
Belzner faces a maximum sentence of 20 years in prison each for wire fraud and for conspiracy; and a maximum of five years in prison for evasion of assessed tax payments. U.S. District Judge James K. Bredar has scheduled sentencing for September 3, 2014 at 10:00 a.m.
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 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.
Driver in Car Crash Sentenced to over 3 Years in Prison for Involuntary ManslaughterRead the Press Release
Driver was Drunk When Passenger was Ejected from the Vehicle During a Crash
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Josue Balbino Ruiz Reyes, age 20, of Hyattsville, Maryland today to 37 months in prison, followed by three years of supervised release, for involuntary manslaughter in connection with the death of a passenger in Reyes’ vehicle resulting from a car collision.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Chief of Police Robert D. Maclean of the U.S. Park Police.
According to his plea agreement, on August 22, 2013 at about 5:30 a.m., Ruiz Reyes drove with a female passenger in his SUV from the Glen Burnie area southbound on the Baltimore-Washington Parkway. He had been drinking alcohol earlier that morning and the previous night. Near the route 197 exit, he lost control of his SUV and drove onto the shoulder of the highway. His SUV rolled over completely and landed upright, breaking all the windows and ejecting the passenger. Ruiz Reyes drove away.Numerous motorists called 911 to report the accident. The U.S. Park Police found Ruiz Reyes driving his badly damaged vehicle on the ramp from the Parkway to Powder Mill Road, about four miles south of the location of the crash. Four police cruisers forced the vehicle to a stop. The right side of the SUV was completely smashed. The passenger side door would not open. Ruiz Reyes told the police he had two beers earlier. He was shirtless, and had minor bruises and cuts on his body. Ruiz Reyes was taken to the hospital where a blood test was given. His blood-alcohol level was .10 grams of alcohol per 100 mL of blood.
Meanwhile, U.S. Park Police officers at the scene of the roll-over found the passenger’s body lying in the grass, where she had been ejected from the SUV. She was pronounced dead. Ruiz Reyes told police that the passenger had gotten out of the car on the side of the road voluntarily. His Maryland driving privileges were suspended.
United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis R. Weisman, who prosecuted the case.Baltimore Man Sentenced to over 24 Years in Prison for Producing Child Pornography and Attempting to Entice A Minor to Have SexRead the Press Release
Also Encouraged His Ex-Wife to Distribute Child Pornography
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced David Ralph Fisher, age 43, of Baltimore, today to 293 months in prison, followed by lifetime supervised release, for producing child pornography and attempting to coerce and entice a minor to engage in sexually explicit activity. Judge Bredar ordered that upon his release from prison, Fisher 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement and court documents, David Fisher repeatedly requested that his ex-wife, Lori Fisher, produce sexually explicit photos of two minor girls, which she did on at least two occasions between August and December of 2008. Lori Fisher took the photos on her cell phone, then texted the images to David Fisher, who saved the images on his cell phone and computers.
On November 4, 2012, the Baltimore Police Department received information that images and videos of child pornography were observed on David Fisher’s external hard drive at his residence. The external hard drive was provided to police. Many files depicting minors engaged in sexually explicit conduct were found.
A search warrant was subsequently executed at David Fisher’s residence on November 20, 2012, and computers, cell phones and other items were seized. Sexually explicit email messages with attachments were recovered in which Fisher solicited child pornography from other individuals, and shared child pornography from his collection. Also, in February 2013, law enforcement confirmed that some of the sexually explicit images found on David’s computer and cell phone were images of the two minor girls that Lori Fisher had photographed and sent to David. In all, over 2,200 images and 100 videos of minors engaged in sexually explicit conduct, including prepubescent minors, were recovered.
On March 14, 2013, a Baltimore Police detective working undercover contacted David Fisher on Facebook, posing as a 14 year old female. Between March 14 and April 11, 2013, David Fisher communicated with the undercover detective through Facebook and email, often using a computer at a public library because of law enforcement’s seizure of his home computer. David Fisher asked the undercover detective to send him sexually explicit photos, and sent the undercover detective sexually explicit photographs of himself. Fisher also gave the undercover detective his cell phone number and proposed meeting to engage in sexual activity. A meeting was arranged for April 11, 2013. Fisher was arrested when he arrived at the meeting.
Lori Fisher, age 46, of St. Cloud, Florida, and formerly of Bel Air, Maryland, previously pleaded guilty to distribution of child pornography and faces a minimum of five years and a maximum of 20 years in prison at her sentencing scheduled for June 11, 2014 at 9:30 a.m. As part of her plea agreement, Lori Fisher will be required to 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).
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.
Air Force NCO Pleads Guilty to Sexually Exploiting Toddlers and Children to Produce Child PornographyRead the Press Release
Greenbelt, Maryland –William S. Gazafi, age 44, of Lusby, Maryland, pleaded guilty today to six counts of sexually exploiting a minor to produce child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Brigadier General Kevin J. Jacobsen, Commander Air Force Office of Special Investigations.
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. Gazafi is a non-commissioned officer in the U.S. Air Force working at Andrews Air Force Base.
Gazafi faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison on each of the six counts, followed by up to lifetime of supervised release. U.S. District Judge Roger W. Titus has scheduled sentencing for June 23, 2014, at 1:00 p.m. 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, Air Force Office of Special Investigations and the Calvert County State’s Attorney’s Office for their 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 Assistant U.S. Attorney Thomas Sullivan, who are prosecuting the case.
Pennsylvania Man Who Sold Counterfeit Military Goods Sentenced to 21 Months in PrisonRead the Press Release
Imported Counterfeit Merchandise from China
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Hao Yang, age 25, of Bloomsburg, Pennsylvania, today to 21 months in prison for conspiring to traffic in counterfeit goods and counterfeit military goods. Judge Motz also entered an order that Yang forfeit five bank accounts worth over $59,000, a 2010 Acura purchased with proceeds of the crime, and counterfeit computer software, DVDs, sports jerseys and other items valued at approximately $280,720.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).“The defendant imported counterfeit goods from China and fraudulently sold them as legitimate merchandise,” said U.S. Attorney Rod J. Rosenstein. “Counterfeit integrated circuits from China were falsely represented to be legitimate American-made parts.”
“This investigation, conducted by HSI special agents in Baltimore, Tampa and Harrisburg, Pa., identified Chinese national Hao Yang as a co-conspirator in an overall scheme to traffic in counterfeit goods to include military grade integrated circuits and defense goods into the United States from China,” said HSI Baltimore Special Agent in Charge William Winter. “These counterfeit military goods pose a threat to our national security as they could end up in the wrong hands and legitimate manufacturing and high technology businesses may believe they are receiving authentic goods. HSI and our partners at U.S. Customs and Border Protection will continue to protect the American public and America's warfighters from the introduction of counterfeit, non-conforming, and substandard materials and goods from entering the United States.”
According to his plea agreement, from 2010 until his arrest on June 19, 2013, Yang and his co-conspirators created and operated several companies in Maryland, Pennsylvania, and elsewhere, including MS Technologies and Aone Electronics in Baltimore; Abest Technologies in China; and Arrcord Group, SMC Group and Smooth LLC. The latter three companies were operated by Yang at his residence in Bloomsburg. Yang used his residence to warehouse the counterfeit goods, including counterfeit military goods, sent to him by his co-conspirators in China. He then shipped items to buyers in the United States based on the order information provided by his co-conspirators. Yang maintained numerous bank accounts to deposit his illegal commissions and make payments associated with his counterfeit activities. He also used the commissions he received from his co-conspirators to pay for living expenses and other purchases, including a 2010 Acura TSX sedan.Yang received counterfeit circuits, a number of which were military-grade, from a co-conspirator in China. This co-conspirator sold, or attempted to sell, the circuits to individuals, companies and government agencies in the United States. Yang then distributed the counterfeit circuits, using his domestic businesses, to the buyers in the United States, sometimes in repackaged form. The co-conspirator paid Yang a commission of $500 per month for his distribution services. Yang and his co-conspirator formed Aarcord Group to conceal the fact that the counterfeit circuits were being imported from China. The counterfeit circuits that Yang redistributed could likely have caused serious bodily injury or impaired military operations, personnel or national security.
Yang also obtained other counterfeit goods, including computer software, DVDs, and sports jerseys, from other co-conspirators in China and Hong Kong, which he then distributed in the United States. Yang received commissions from these co-conspirators of $1,000 to $2,000 per month for his distribution services. Between March 2011 and April 2013, Yang used several false identities to receive hundreds of shipments from China and Hong Kong, including shipments involving integrated circuits.
United States Attorney Rod J. Rosenstein praised HSI Baltimore for its work in the investigation and thanked Assistant U.S. Attorney Christine Manuelian, who prosecuted the case.