District of Maryland
Press releases recorded for this federal judicial district.
Computer Sciences Corporation to Pay $1.1 Million to Resolve False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – Computer Sciences Corporation, Inc., a defense contractor headquartered in Falls Church, Virginia, has agreed to pay the United States $1.1 million to resolve allegations under the civil False Claims Act that the company falsified qualifications of its employees in order to bill for labor charges at rates higher than allowed under a government contract.
The settlement was announced today 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 Major General David Quantock, Provost Marshal General of the Army and Commanding General of the U.S. Army Criminal Investigation Command.Computer Sciences Corporation designs and operates satellite and wireless network solutions and security systems for government and private sector customers. Prior to January 1, 2008, the U.S. Army Communication Electronics Command (CECOM), which is headquartered at Aberdeen Proving Ground, Maryland, awarded Computer Sciences a contract to provide information technology support to government assets and locations worldwide.
The settlement resolves allegations that Computer Sciences Corporation submitted false resumes for employees to qualify them for higher paying positions, thereby falsely increasing the amount of money for labor charged by Computer Sciences. These claims relate to services rendered between January 16, 2008 and January 15, 2012 under a specific task order of an information technology services contract administered by the Army CECOM.
“When defense contractors can enrich themselves at taxpayers’ expense by falsely representing that they provided expensive services, the government must be vigilant in pursuing fraudulent claims,” said U.S. Attorney Rod J. Rosenstein.The claims settled by this agreement are allegations, and there has been no determination of liability.
U.S. Attorney Rod J. Rosenstein thanked the Defense Contract Audit Agency for their assistance in the investigation. This case was handled by Assistant U.S. Attorney Thomas Barnard.Two Brothers Sentenced for Drug Dealing in Annapolis and BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Ernst Harmon, age 37, of Annapolis, Maryland, today to 198 months in prison, and his brother Dontaye Harmon, age 40, of Baltimore, Maryland to 125 months in prison, both followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine base. Judge Hollander also ordered Harmon to forfeit a 2004 Land Rover truck, a 1999 Dodge Caravan and $4,050 in cash.
The sentences 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; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Chief Kevin Davis; Commissioner Anthony W. Batts of the Baltimore Police Department; U.S. Marshal Johnny Hughes; and Anne Arundel County State’s Attorney Anne Colt Leitess.
"We are proud of the excellent work and partnerships that resulted in removing two violent offenders from our streets," said Annapolis Police Chief Michael Pristoop. "This is significant for public safety in Annapolis."
According to their plea agreements, from at least July 2012 until June 2013, Ernst and Dontaye Harmon conspired with their brother, Donwand Harmon, Damian Brown and others to distribute cocaine base to a number of individuals in the Baltimore and Anne Arundel County, Maryland areas.
On July 31, 2012, Baltimore City Police officers stopped Ernst Harmon for a traffic violation. The police seized a hollowed-out cigar filled with raw marijuana and $4,050 from Ernst, and 140 grams of cocaine base and additional raw marijuana from a hidden compartment in his vehicle.
Dontaye Harmon worked with Ernst Harmon to run a drug shop operating out of the projects located at 920 President Street in Annapolis. Law enforcement saw Ernst and Dontaye outside the drug shop regularly making hand-to-hand transactions with customers. Pursuant to a court authorized wiretap on Ernst’s cell phone, law enforcement overheard Ernst arranging sales of cocaine base directly with customers, or instructing customers to deal with Dontaye. Ernst was also overheard calling Dontaye on multiple occasions to warn him that the police were coming, or were outside the drug shop. On two occasions in November 2012 and February 2013, investigators used an individual to purchase a total of 36.9 grams of cocaine base directly from Ernst and Dontaye at the drug shop. On a third occasion in January 2013, the individual made a controlled purchase of 27.2 grams of cocaine base from Ernst at the drug shop.
It was reasonably foreseeable to Ernst and Dontaye that the conspiracy distributed at least 280 grams of cocaine base.
Ernest Harmon also faces attempted murder charges in Anne Arundel County Circuit Court for the September 9, 2012 shooting of two individuals in Annapolis.
Donwand Cuppatino Harmon, age 37, of Annapolis, Maryland, previously admitted that he was responsible for distributing at least a kilogram of heroin during the conspiracy. Judge Hollander sentenced Donwand Harmon on February 7, 2014 to 210 months in prison, and ordered him to forfeit $27,895 in cash, a 2010 Porsche Panamera, a 2008 Mercedes Benz CL550, and jewelry, including a Breitling wrist watch with a diamond face and band.
Damian Brown also pleaded guilty to the drug conspiracy on February 3, 2014, and is scheduled to be sentenced on June 17, 2014 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Annapolis Police Department, Anne Arundel County Police Department, Baltimore Police Department, U.S. Marshals Service and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark and Scott Lemmon who prosecuted this Organized Crime Drug Enforcement Task Force case.
Eastern Shore Cocaine Dealer Sentenced to over 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Ranson Chandler, Jr., age 37, of Salisbury, Maryland, today to 123 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine, and 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; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; and Wicomico County State’s Attorney Matthew Maciarello.
According to Chandler’s plea agreement, an investigation by the Drug Enforcement Administration and the Wicomico County Narcotics Task Force established that during the months of October and November 2012, Ranson Chandler, Jr., conspired with Terron Lamont Crump and others to distribute cocaine on the Eastern Shore of Maryland.Information obtained through wiretaps demonstrated that on multiple occasions Chandler conducted or attempted to conduct narcotics transactions with Crump and others.
For example, in an intercepted call on November 27, 2012, Chandler and Crump discussed the price of “the hard knock,” which Chandler was attempting to procure for a third party. Crump told Chandler that the price was “one even,” or $1,000 per ounce, but that he (Crump) would not be able “to get to it” until the following day. At approximately 10 a.m. the next morning, officers observed a drug transaction between Chandler and Crump near the Route 50 Diner in Salisbury. After the transaction took place, the officers attempted to arrest Chandler who, while attempting to flee, crashed his vehicle into a vehicle occupied by three law enforcement officers.
Chandler was arrested. During a search officers recovered approximately 68 grams of cocaine from Chandler’s pants pocket and an additional 197 grams of cocaine from his vehicle, as well as a loaded (and stolen) 9 mm handgun recovered from the center console of Chandler’s vehicle.
The evidence showed that that it was foreseeable to Chandler that he and his co-conspirators distributed, more than 500 grams of cocaine during the conspiracy, which operated from June 2012 through and November 28, 2012.
Terron Lamont Crump, age 35, of Fruitland, Maryland, pleaded guilty to his role in the conspiracy and was scheduled to a year and a day in prison.
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.
Registered Sex Offender Pleads Guilty to Trafficking A MinorRead the Press Release
Caused a 15 Year Old Runaway to Engage in Prostitution
Baltimore, Maryland – Thomas Sean Tinsley, age 29, of Glen Burnie, Maryland pleaded guilty today to sex trafficking of a minor. Tinsley is a registered sex offender, having previously been convicted of having sex with a minor female.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Tinsley’s plea agreement, in May 2013, Tinsley met a 15 year old runaway near the Galleria Mall in downtown Baltimore, and invited her to live with him at his residence - a motel on Caton Avenue in Baltimore. Soon thereafter, Tinsley began having sex with the victim.
Tinsley encouraged the victim to engage in prostitution to pay for the motel room and to provide him with additional money. The victim routinely met with prostitution clients and communicated with Tinsley regarding her client interactions, including the location of the commercial sex and the identity of her patrons. Tinsley monitored the victim’s commercial sex activities and gave her instructions regarding her client interactions, including telling her to collect cash before the commercial sex. Sometimes, Tinsley negotiated directly with prospective clients for commercial sex on behalf of the victim.
When they searched the motel room, federal agents found Tinsley’s sex offender registry paperwork from a prior conviction, which listed the motel address as his ‘place of residence.”
Tinsley and the government have agreed that if the Court accepts the plea agreement Tinsley will be sentenced to between 121 and 210 months in prison followed by a lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for July 2, 2014 at 11:00 a.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 Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.
Baltimore Prescription Drug Trafficker Sentenced to 5 Years in PrisonRead the Press Release
Was a Member of a Drug Trafficking Conspiracy Based out of the Paschall Auto Body Shop;
Loaned His Truck to Others to Use in Commercial RobberiesBaltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Richard Ashbrook, age 51, of Baltimore, today to five years in prison followed by three years of supervised release for conspiring to distribute oxycodone.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Howard County Police Chief William McMahon; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department."The big picture about today's sentencing of Mr. Ashbrook is that prescription drug trafficking in Maryland is a growing problem," stated Gary Tuggle, DEA Assistant Special Agent in Charge. “As a result of the illegal abuse of opiate based drugs like oxycodone, a wider epidemic of opiate addiction has developed in Maryland. We now have a new sub culture of opiate addicted individuals; individuals who now turn to heroin to feed their habits all because of prescription drug abuse."
According to his plea agreement, from the spring of 2012 to July 2013, Ashbrook illegally sold prescription pills, often OxyContin and Percocet, to David Paschall and others. David Paschall operated Paschall’s Auto Body Shop, formerly located at 801 Desoto Road in Baltimore. Ashbrook knew that the business was operating as a hub for the sale of illegal narcotics - mostly oxycodone, but also heroin, cocaine and other illegal drugs. Ashbrook sold oxycodone to David Paschall that was either prescribed to him, or which he had illegally obtained from others. Ashbrook sold more than 14,930 milligrams of oxycodone, which is roughly 1,000 15mg pills. He further admitted that members of the conspiracy distributed between 14.93 and 59.70 grams of oxycodone.Ashbrook also knew of other illegal conduct being committed by his coconspirators and others. David Paschall and others borrowed Ashbrook’s truck to use in commercial burglaries. On April 8, 2013, law enforcement overheard Ashbrook warning David Paschall about the light coming on when the truck doors are open, and suggesting that Paschall use a screwdriver to pop out the light, to avoid detection by law enforcement.
David Paschall, age 54, of Catonsville, Maryland, and his son, Chad Paschall, age 28, of Baltimore, pleaded guilty in February 2014 to conspiring to distribute oxycodone and two counts of conspiring to commit bank burglary. The Paschalls admitted to committing commercial burglaries in Maryland, Virginia, West Virginia and Pennsylvania. According to their plea agreements, the Paschalls conspired to steal cash, money orders, stamps, silver bars, jewelry, cigarettes, lottery tickets, prescription drugs, food, beverages, safes, laptop computers, cell phones, electronics, vehicles and other valuable items from gas stations, convenience stores, banks, credit unions and other commercial establishments.
At their sentencing, David and Chad Paschall face a maximum sentence of 20 years in prison and a $1 million fine for the drug conspiracy, and five years in prison for the bank larceny conspiracy. David Paschall has agreed to forfeit $500,000, his ownership interest in Paschall’s Auto Body Shop and his residence, three firearms and his vehicle. Chad Paschall has agreed to forfeit $250,000, his interest in his residence, four firearms and ammunition.
To date, a total of 12 defendants charged in the drug and burglary conspiracies have pleaded guilty to their participation in the criminal activities. Charges remain pending against four other defendants.
United States Attorney Rod J. Rosenstein commended the DEA, Howard County Police Department, Baltimore County Police Department; Anne Arundel County Department, ATF, Department of Health and Human Services - Office of Inspector General; Coast Guard Investigative Service and Baltimore Police Department for their work in the investigation. Mr. Rosenstein also praised the many local and state agencies in Virginia, West Virginia and Pennsylvania for their assistance in the investigation.
Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Andrea L. Smith, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Edgewater, Maryland Woman Pleads Guilty to Scheme to Defraud the IRSRead the Press Release
Scheme Resulted in Tax Loss of More Than $839,000
Greenbelt, Maryland - Georgia Smith, age 52, of Edgewater, Maryland, pleaded guilty today to conspiring to defraud the United States in connection with a scheme to file false tax returns by concealing income and inflating expenses.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and General Services Administration Inspector General Brian D. Miller.
Georgia Smith’s husband, Vernon Smith, was the president and sole owner of Capitol Contractors since 2002. Capitol Contractors was a Maryland corporation with its headquarters in Capitol Heights, Maryland and later Edgewater, Maryland. Capitol Contractors had provided roofing and construction services but was largely dormant after 2002.
In 1999, Vernon Smith caused a new roofing and construction company, Platinum One Contracting, Inc. (“Platinum”) to be incorporated in Maryland. Although Vernon Smith installed two individuals to be the nominee owners and officers of Platinum, Vernon Smith exercised complete and undisclosed control over Platinum’s business operations. Georgia Smith was in charge of Platinum’s accounting, and acted as the de facto Controller for the company.
Georgia Smith and Vernon Smith transferred millions of dollars from Platinum to bank accounts in their own names, to casinos on their own behalf, to Capitol Contracting and another company owned by Vernon Smith, and to credit card companies to pay for personal expenses that Georgia Smith and Vernon Smith charged to Platinum’s corporate credit cards, including extensive dental work, veterinary visits for personal pets, lavish vacations, a Royal Caribbean cruise, limousine transportation to casinos in Atlantic City, N.J., funeral expenses for a family relative, fencing for their personal residence, among others. Georgia Smith also mischaracterized numerous payments to casinos as subcontractor expenses.
Georgia Smith admits that she and Vernon Smith signed false corporate and personal tax returns for 2005 and 2006. The Smiths knew that the cost of goods sold and payments to contractors reported on the corporate returns were false because almost all of that money was paid to, and for the benefit of, Georgia and Vernon Smith at casinos. They also knew that the income reported on their personal income taxes omitted hundreds of thousands of dollars that Capitol Contractors had paid to, and for their benefit. As a result, the Smith’s owed additional personal income tax to the IRS totaling $264,105, and Capitol Contractors owed an additional $574,911 to the IRS for tax years 2005 and 2006. The total tax loss resulting from Georgia and Vernon Smith’s conspiracy to defraud the IRS is $839,016.
Vernon J. Smith III, age 61, also of Edgewater, pleaded guilty last week to his participation in the tax scheme, as well as to fraudulently obtaining more than $52 million in federal contracts to which it was not entitled under the Small Business Administration Section 8(a) program. The total loss to the government resulting from Vernon Smith’s illegal conduct, regarding the illicit profit he received by defrauding the SBA, and depriving a legitimate Section 8(a) contractor of such profit, is $6,194,828.
Georgia Smith faces a maximum sentence of five years in prison for the conspiracy. U.S. District Judge Paul W. Grimm has scheduled her sentencing for July 2, 2014, at10:30 a.m. Vernon Smith’s sentencing is scheduled for July 2, 2014, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General; Defense Criminal Investigative Service; IRS Criminal Investigation; and the GSA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin and Trial Attorney Kenneth C. Vert of the U.S. Department of Justice Tax Division, who are prosecuting the case.
Baltimore Man Pleads Guilty to Identity Theft SchemeRead the Press Release
Used Stolen Identity Information to Purchase Motorcycles and Other Goods
With Losses to the Victims of at Least $120,000Baltimore, Maryland – Tavares Davon Miller, a/k/a “Tavon Jackson,” “Tavon Miller,” and “Ooh,” age 30, of Baltimore, Maryland pleaded guilty today to conspiracy to commit wire fraud and aggravated identity theft, in connection with a scheme to use the personal identifying information of others to purchase motorcycles, electronic equipment, jewelry and other goods.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Anne Arundel County Police Chief Kevin Davis; Charles County Sheriff Rex Coffey; Howard County Police Chief William McMahon; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Michael Phillips of the Fruitland Police Department.
According to his plea agreement, from September 25 through November 1, 2012, Miller acquired the identifying information of more than 10 victims, and used that information to fabricate driver’s licenses and credit cards in the names of those victims, but using the photograph of a co-conspirator (where applicable). Miller and the co-conspirator traveled to motorcycle dealerships and retail stores in Maryland, Delaware, Virginia and Pennsylvania, and used the fraudulent identification documents to purchase merchandise, including electronic equipment, jewelry and clothing, or apply for lines of credit at those stores. Miller and the co-conspirator then loaded the motorcycles and merchandise into their vehicle and returned to Maryland. Miller advertised the motorcycles and merchandise for sale over the internet, retaining the proceeds of the sales and paid the co-conspirator a fee for her services.As part of his plea agreement, Miller will be required to pay restitution in the full amount of the victims’ losses, which is at least $120,000.
Miller faces a maximum sentence of 20 years in prison for the wire fraud conspiracy and two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Ellen L. Hollander scheduled sentencing for June 27, 2014 at 12:00 p.m.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service, Maryland State Police, the Anne Arundel, Howard and Montgomery County Police Departments, Charles County Sheriff’s Office and Fruitland Police Department for their work in the investigation. Mr. Rosenstein also recognized the following agencies for their assistance in the investigation: the Delaware State Police; Leesburg (Virginia) Police Department and Stafford County (Virginia) Sheriff’s Department; and the Lancaster (Pennsylvania) Police Department and Springettsbury Township (Pennsylvania) Police Department. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.Serial Robber Pleads GuiltyRead the Press Release
Robbed Seven Businesses and Employees; Attempted to Rob a Take-Out Restaurant
Greenbelt, Maryland – Duane James, age 53, of Germantown, Maryland pleaded guilty today to five counts of robbery.
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; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, on seven occasions from January 21 to February 17, 2013, James robbed Maryland businesses and their employees, each time wearing a ski mask and pointing what appeared to be a gun at the store clerks. In Silver Spring, James stole $50 and $10,000 worth of jewelry at The Gold Spot store; $110 from the store register and $100 from the clerk’s wallet at the AT&T store; and $3,000 from the cash drawer and lottery proceeds at the Bel Pre Beer & Wine store. In Rockville, James stole $1,500 from the register at the Shell Gas Station. In Gaithersburg, James stole $400 from the store register and $5 from the clerk at the Walnut Hill Liberty Gas Station; $300 from the cash register and $200 from the clerk at Twinbrook Shell Gas Station; and $1,043 from the register and cigarettes at the Exxon Gas Station.Also, on February 17, 2013 and prior to robbing the Exxon gas station that same day, James pointed what appeared to be a gun at a clerk at a take-out restaurant in Gaithersburg, demanding cash from the register. The clerk did not move or open the drawer. James left the store.
James faces a maximum sentence of 20 years in prison and a fine of $250,000 for each of the five counts robbery. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for July 14, 2014 at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mara Zusman Greenberg and Special Assistant U.S. Attorney Jennifer R. Sykes, who are prosecuting the case.Pasadena Man Convicted of Illegally Warning Targets of DEA WiretapsRead the Press Release
Baltimore, Maryland – Joshua Ferguson, age 34, of Pasadena, Maryland pleaded guilty today to unlawfully providing notice of electronic surveillance.
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; and Anne Arundel County Police Chief Kevin Davis.
According to his plea agreement, in June of 2013, pursuant to a court authorized wiretap, the DEA and Anne Arundel County Police Department were monitoring the cell phone of a suspected drug trafficker, Paul Cain. On June 27, 2013, law enforcement overheard a call from Ferguson who warned Cain of three phone taps in Pasadena for drugs. Ferguson also told Cain to warn another suspected drug dealer, Daryell Rexrode, about the phone taps. Shortly thereafter, Cain and Rexrode stopped using their cell phones.Further investigation revealed that Ferguson learned of the phone taps through Sarah Harris who worked at the Clerk’s Office in the Circuit Court for Anne Arundel County. Ferguson had met with Harris at a bar on June 26, 2013. Harris told Ferguson that there were phone taps in Pasadena for drugs, which were not local. Ferguson understood this to mean that federal law enforcement officers were conducting the phone taps.
Ferguson faces a maximum sentence of five years in prison followed by three years of supervised release and a fine of $250,000. U.S. District Judge George L. Russell III scheduled sentencing for June 27, 2014.
Sarah Elizabeth Harris, age 23, of Pasadena, Maryland, pleaded guilty in February 2014 to obstruction of an official proceeding and faces a maximum sentence of 20 years in prison at her sentencing scheduled on May 9, 2014 at 2:00 p.m. Paul Rodney Cain, age 48, and Daryell Mitchell Rexrode, age 56, both of Pasadena, Maryland, previously pleaded guilty to their participation in drug trafficking activities. Rexrode was sentenced on March 8, 2014 to 160 months in prison. Cain awaits sentencing.
United States Attorney Rod J. Rosenstein praised the DEA and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who is prosecuting the case.Charles County Oncologist Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Owes Over $750,000 in Additional Taxes to the IRS
Greenbelt, Maryland –Krishan M. Mathur, M.D., age 64, of LaPlata, Maryland, pleaded guilty today to filing false tax returns.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to Dr. Mathur’s plea agreement, he is an oncologist and has been the owner and operator of the Cambridge Cancer and Infusion Center in Maryland since 1984. Dr. Mathur also served as the Medical Director for Hospice of Charles County and was paid for his services.Dr. Mathur admitted that he filed false tax returns for tax years 2006, 2007 and 2008, falsely overstating his expenses and underreporting his income. For example, Dr. Mathur received rebate payments from certain companies from which he had purchased pharmaceuticals. Those rebates were deposited directly to his personal bank account. Dr. Mathur failed to disclose the payments or provide his bank records to his accountant. As a result, the accountant claimed the pharmaceutical purchases as expenses, but the failed to properly report the income received from the rebate payments. In addition, Dr. Mathur wrote checks and withdrew funds for personal use from his medical practice’s bank account, which he then falsely indicated on business records were payments made to medical suppliers. Finally, Dr. Mathur failed to report income he received from the Hospice of Charles County for serving as its Medical Director. The income was deposited into his personal bank account and not disclosed to his accountant.
As a result of the scheme, Dr. Mathur owed additional taxes for those years totaling $750,249. As part of his plea agreement, Dr. Mathur will be required to pay restitution to the IRS in that amount.
Krishan Mathur faces a maximum penalty of three years in prison. U.S. District Judge Paul W. Grimm has scheduled his sentencing for July 17, 2014.
United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Nicolas Mitchell and Bryan E. Foreman, who prosecuted the case.
Seat Pleasant Man Sentenced to 15 Years in Prison After Pleading Guilty to Armed CarjackingRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Tyrone Collington, Jr., age 27, of Seat Pleasant, Maryland, today to 15 years in prison, followed by three years of supervised release, after Collington pleaded guilty to carjacking. Judge Motz ordered that the sentence be served concurrent with the seven year sentence imposed by U.S. District Court for the Eastern District of Virginia in U.S. v. Collington, Case No. AJT-11-CR-00027, for a carjacking that took place in Fairfax, VirginiaThe sentence and guilty plea were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to his plea agreement, on June 22, 2010, Collington approached a driver of a Honda Civic parked in the garage of the Westfield Wheaton Plaza Mall in Wheaton, Maryland. The driver was buckling the driver’s two children into their car seats when Collington pointed a semiautomatic gun at the driver and stated: “If you don’t want to be shot in front of your kids, give me your keys.” The driver complied and Collington drove off, after giving the driver sufficient time to remove the children from the car. Montgomery County Police responded to the scene, but did not locate Collington.
A couple days later on June 24, Collington approached a driver of a BMW convertible in the parking lot at the University Mall in Fairfax, Virginia. Collington pointed the same gun at the driver, racked the slide and demanded the car keys. The driver complied. After a couple minutes of trying to start the BMW and failing, Collington left and drove away with another passenger in the Honda Civic he had previously stolen.
The driver of the BMW pursued Collington. Shortly thereafter, the driver caught the attention of a Virginia State Trooper who joined the chase. Collington and his passenger eventually abandoned the Honda Civic and escaped on foot. A subsequent search of the Honda Civic revealed a cell phone, GPS devices, clothing and a Maryland driver’s license, all belonging to Collington. Montgomery County Police detectives also found latent fingerprints inside the car belonging to Collington.
Collington was arrested on July 1, 2010, at his residence. Officers seized the gun he used in both carjackings from his bedroom closet.
United States Attorney Rod J. Rosenstein commended the FBI, Montgomery County Police Department and Montgomery County State’s Attorney’s Office for their work in the investigation and thanked the U.S. Attorney’s Office for the Eastern District of Virginia for their assistance in the prosecution of the case. Mr. Rosenstein also thanked Assistant United States Attorney Kelly O’Connell Hayes and Special Assistant United States Attorney Paul Nitze, who prosecuted the case.
Maryland Woman Indicted for Treating Patients While Fraudulently Posing as A Physician’s AssistantRead the Press Release
Allegedly Used Stolen Identity to Gain Employment at a Doctor’s Office;
Treated 200 Patients, Including Infants, and Wrote PrescriptionsBaltimore, Maryland - A federal grand jury has indicted Shawna Michelle Gunter, age 36, of Severna Park, Maryland, on charges of wire fraud, aggravated identity theft and health care fraud. The indictment was returned on March 18, 2014, and unsealed today upon Gunter’s arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police.
“This case involves very troubling allegations that Shawna Michelle Gunter fraudulently posed as a licensed physician’s assistant, treating patients and writing prescriptions, although she has no medical training,” said U.S. Attorney Rod J. Rosenstein. “I commend the Maryland State Police for their quick response, which brought the charade to an end.”
According to the four count indictment and search warrant affidavit, from July 5 to August 29, 2013, Gunter acted as a physician’s assistant, even though she did not have the medical education, training or qualifications to do so. Gunter sought employment as a physician’s assistant with a pediatrician who had offices in Centreville and Chestertown, Maryland. To gain employment, Gunter allegedly provided a forged Howard University physician’s assistant diploma. She also allegedly provided a forged physician’s assistant certificate bearing the license number of another physician assistant practicing in Salisbury, without the victim’s knowledge or approval, as well as a forged DEA controlled substance registration certificate bearing a registration number that was almost identical to the victim’s.
Gunter started her employment as a physician assistant on July 5, 2013. She began seeing patients alone on August 18, 2013. According to the affidavit, between August 18 to 29, 2013, Gunter saw and treated around 200 Medicaid patients for sick visits, ADHD follow-ups, newborn visits and routine physicals. Each medical visit resulted in a claim submitted to Medicaid and in turn, money paid to the pediatrician’s practice for medical services allegedly provided by an unlicensed and unqualified individual. Gunter also wrote numerous prescriptions that were filled by the patients and paid by Medicaid.
The affidavit alleges that on August 29, 2013, the physician owner of the pediatric practice contacted the Maryland State Police upon receiving an anonymous communication informing him that Gunter was not qualified to be a physician’s assistant. That same day, Maryland State Police arrested Gunter at the pediatrician’s office in Centreville. At the time of her arrest, Gunter had three of the pediatric doctor’s prescription pads in the pocket of a white doctor’s coat that she was wearing. Officers also seized from her purse numerous items including another prescription pad belonging to a surgeon who Gunter previously worked for; a folder containing a schedule of patients and their illnesses for each day in August; and originals of all of the fraudulent documents Gunter provided to the pediatrician.
The affidavit alleges that further investigation indicates that between April and October 2013 Gunter filled multiple prescriptions for Gabapentin, Divalproex and Cymbalta, purportedly written by a doctor for whom Gunter formerly worked, for her own child. The doctor advises that she never saw Gunter’s child as a patient. The child has since seen another doctor who directed that the child be slowly weaned off the medications.
Gunter faces a maximum sentence of 20 years in prison for wire fraud and health care fraud; and two years in prison, consecutive to any other sentence, for each of two counts of aggravated identity theft. Gunter had her initial appearance this afternoon in U.S. District Court in Baltimore and is detained pending a detention hearing scheduled for April 7, 2014 at 2:30 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Department of Health and Human Services Office of Inspector General, Maryland State Police, HSI and Maryland Natural Resources Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who is prosecuting the case.
Former Bank Employee Sentenced to Prison in Fraud SchemeRead the Press Release
Used her Position in the Bank to Apply for Mortgages in the Names of Family Members and Used the Loan Proceeds for Her Personal Benefit
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Jill Dail, age 59, of Cambridge, Maryland, today to 16 months in prison, followed by five years of supervised release, for bank fraud in connection with a scheme in which she and her brother, Jeffrey Scott Dail, fraudulently obtained mortgage loans in the names of family members, using the proceeds for their own benefit. Judge Motz sentenced Jeffrey Dail, age 49, also of Cambridge, today to a year and a day in prison, followed by three years of supervised release, for his role in the scheme. Judge Motz ordered ordered Jeffrey Dail to pay restitution of $248,000. The amount of restitution for Jill Dail will be determined at a later date.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, Jill Dail was a loan settlement processor in the mortgage department at a Salisbury, Maryland, bank until she was terminated in June 2007, as part of a reduction in the bank’s workforce. Shortly thereafter, Dail was privately hired by the manager of the bank’s mortgage department to continue to do the same loan processing work she had performed as an employee of the bank. The bank manager paid Dail out of his own funds and gave her full access to the bank premises, computer system and loan files. Dail continued to represent herself as a bank employee in her dealings with title companies and other businesses.
Jill Dail admits that beginning before January 2006 through at least August 2009, she and her brother, Jeffrey Dail, applied for mortgage loans in the names of family members and used the proceeds of the loans for their personal benefit. The Dails forged the signature of family members and bank officials on the loan applications, causing the bank to approve the applications and authorize the distribution of the loan proceeds at settlement. In each instance, the family members whose identities were used on the loan applications, and whose properties were used as collateral for the loans, had no knowledge of the applications or the loans.
Based on the assurances of Jill Dail, with whom the title company had a well-established business relationship, title company employees notarized the signatures of the family members on the settlement documents and disbursed the loan funds at settlement, as directed by Jill Dail, to herself, to Jeffrey Dail, or to their creditors. The balance of loan funds still unpaid is approximately $687,923.67.
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 for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who prosecuted the case.
U.S. Attorney and Social Security Administration Announce Impact of Benefit Fraud Prosections in MarylandRead the Press Release
Partnership Between the Social Security Administration and Department of Justice Increases Criminal Prosecution of Fraud in SSA’s Title II and Title XVI Benefit Programs
Baltimore, Maryland – Since October 2012, the U.S. Attorney’s Office for the District of Maryland has participated in the Social Security Administration (SSA) Fraud Prosecution Project, which places attorneys in federal districts around the country to serve as Special Assistant United States Attorneys (SAUSAs). The District of Maryland is one of a dozen such districts to participate in the program, which will expand to at least ten additional districts in 2014. Assigned SAUSAs work within their assigned district to bring criminal indictments charging individuals who have actively defrauded SSA. These schemes can last many years and result in large financial losses to the agency. Collateral benefits of the program include providing a deterrent effect and punishment to those who steal from SSA benefit programs and who undermine the public’s trust in SSA’s stewardship of the trust funds.
FEDERAL CRIMINAL PROSECUTIONS
Since October 2012, 15 defendants have pleaded guilty to their participation in fraud schemes affecting SSA’s benefit programs. Five of those defendants have been sentenced to between one month and 33 months imprisonment. Twelve defendants have also been ordered to pay a total of $761,109 in restitution to SSA, Maryland Medicare and Maryland Medicaid, with individual defendants paying between $6,480.15 and $190,900.
“We increased federal prosecutions of criminals who defraud the Social Security Administration as a result of unprecedented support from the agency,” said U.S. Attorney Rod J. Rosenstein. “These cases are important in order to punish and deter people who lie, cheat and steal to gain government benefits they do not deserve.”
“I’m gratified at the results of this joint effort, and I want to thank United States Attorney Rod J. Rosenstein and Chief Counsel David Black for their unwavering support,” said Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division. “The SSA-OIG is steadfast in its commitment to combating Social Security fraud, and relies heavily on the cooperation of both the Department of Justice and the Social Security Administration. These results illustrate with remarkable clarity what can be accomplished to preserve Social Security funds for those entitled to them when each of those parties not only commits to combating fraud waste and abuse, but acts on that commitment.”
The following are examples of cases involving social security fraud schemes prosecuted in Maryland.
Deceased Beneficiary
U.S. District Judge George L. Russell III sentenced Robert Errol Jackson, age 45, of Baltimore, today to 33 months in prison followed by three years of supervised release for theft of government property, in connection with an 18 year fraud scheme to obtain his grandfather’s social security benefits. Judge Russell also entered an order that Jackson pay restitution of $190,900 for social security benefits unlawfully received.
According to his plea agreement, Jackson’s grandfather received monthly cash benefits from the Social Security Administration (SSA) at the time of his death on June 9, 1992. The benefits were paid by direct deposit into a checking account. After his grandfather’s death, Jackson took possession of the debit card in his grandfather’s name and used the card to regularly withdraw money from the account until December 3, 2010, when the benefits were terminated. From June 1992 to December 2010, SSA deposited a total of $190,900 into the account on the grandfather’s behalf. Jackson had no legal entitlement to these benefits.
Jackson was incarcerated between 1990 and 1994, and again between 2004 and 2010. During his imprisonment, Jackson told others to withdraw money from the account and spend it at his direction, including by sending money to Jackson in prison. He spent substantially all of the social security benefits that SSA had deposited in the account on his grandfather’s behalf. When the grandfather’s benefits were suspended in 2010, Jackson called SSA and unsuccessfully attempted to impersonate his grandfather in order to resume the payment of benefits.
Work Concealment
Charles David Jones, Sr., age 58, of Frederick, Maryland, pleaded guilty on February 27, 2014, to theft of government property, after he received at least $110,000 in disability benefits while working at a Frederick restaurant.
According to his guilty plea, Jones applied for disability benefits in March 2002, claiming that he could no longer work and was disabled. Starting in July 2002, Jones began to work as a cook at a Frederick restaurant and was promoted to manager and head chef. Jones never reported this work to SSA. On October 13, 2003, Jones purchased the restaurant and continued to manage and operate the restaurant through at least August 2011. In February 2004, Jones was awarded disability benefits by SSA, retroactive to August 2002 and continued to receive benefits until they were suspended in 2011. In March 2010, Jones signed and submitted to SSA a Continuing Disability Review Report, in which he claimed that he was not working and was not able to work.
Jones faces a maximum penalty of 10 years in prison at his sentencing, which is scheduled for June 24, 2014 at 9:30 a.m. Under the terms of his plea agreement, Jones will also be required to pay restitution of at least $110,000.
On February 21, 2014, Ronald William Burke, age 53, of Crisfield, Maryland, was indicted by a federal grand jury on charges arising from his concealment of work activity while receiving Title II disability benefits.
The three count indictment alleges that Burke, who qualified for disability benefits in April 2010, returned to work as a commercial waterman without notifying SSA. The indictment alleges that Burke maintained an active commercial fishing license between 2010 and 2013, and owned and operated commercial fishing boats during the same period, including the “Laura” and the “Belinda Jean.” On January 26, 2012, the indictment alleges that Burke signed an SSA work activity report, on which he was obligated to report all work activity since his disability in January 2010. Burke is alleged to have falsely certified that he had not worked during the entirety of that period, when in fact he had been self-employed as a commercial waterman during some of that time.
Burke allegedly received $36,691 in unlawful disability benefits and $35,610 in unlawful Medicare services between 2010 and 2013. He faces a maximum sentence of 10 years in prison for theft of government property; and five years in prison for making a false statement to SSA and for improper receipt of Title II benefits.
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.Debit Card Program Fraud
Scerena Simpson Genus, age 35, and her mother, Doreen Spence, age 50, both of Baltimore, pleaded guilty to a scheme to steal social security benefits. Genus was sentenced to two years in prison and Spence to 11 months in prison. Both were ordered to pay restitution of $6,480.15.
According to their plea agreements, beginning no later than September 2011, co-conspirators in Jamaica, including cousins and other family members of Genus and Spence, applied by telephone for Direct Express debit cards in the names of social security beneficiaries, impersonating the victims and using the victims’ personal identifying information. The co-conspirators obtained the personal information of the victims by, among other means, telling the victims that they had won the Jamaican National Lottery and that they would send them “winnings” from the lottery if the victims provided their personal information. The Direct Express debit card program can be used by beneficiaries of federal programs which disburse cash benefits. The co-conspirators signed up for Direct Express in the name of the victims and requested that the victims= monthly social security benefits be loaded onto the debit cards and sent to the home of Genus and Spence.
Spence and Genus received at least five of the more than 23 debit cards that the co-conspirators applied for and used the cards to make purchases and cash withdrawals at locations around Baltimore. Soon after withdrawing the benefits Spence and Genus wired a portion of the funds to the Jamaican co-conspirators, keeping a portion of the stolen benefits for themselves. The total amount of benefits fraudulently withdrawn from the five cards by Genus and Spence was $6,480.15.
United States Attorney Rod J. Rosenstein thanked the Social Security Administration, Office of Inspector General for its work in these investigations. Mr. Rosenstein praised Special Assistant U.S. Attorney Paul Nitze, on detail from the Social Security Administration, who handles SSA-related fraud cases in Baltimore and Greenbelt, as well as Assistant U.S. Attorney Justin S. Herring, who is handling the Jones case.
Former Prince George’s County Police Officer Sentenced to 10 Years in Prison for Conspiracy to Distribute Untaxed Cigarettes and Cocaine, and Gun ChargesRead the Press Release
Members of the Conspiracy Paid an Undercover Agent $1,770,230
for More Than 17 Million Contraband CigarettesGreenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced former Prince George’s County police officer Sinisa Simic, age 30, of Woodbridge, Virginia, today to 10 years in prison, followed by four years of supervised release, for: an extortion conspiracy under color of official right arising from a scheme involving the transport and distribution of untaxed cigarettes; conspiracy to distribute cocaine; and, possession and transfer of a firearm in furtherance of a drug trafficking crime and a crime of violence. Judge Messitte also ordered Simic to forfeit $1,137,898.
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 Simic’s plea agreement, between July 2009 to January 2010, Simic participated in a conspiracy to transport and distribute untaxed cigarettes in Maryland, Virginia and elsewhere. As part of the conspiracy, Simic used his official authority as a Prince George’s County police officer to ensure the safe transport and distribution of the untaxed cigarettes in exchange for cash payments from a source and an undercover agent working with the FBI . During November 2009, law enforcement intercepted conversations on Simic’s cellular phone which indicated that Simic and his co-conspirator, Mirza Kunjundzic, both wanted Kunjundzic to be armed while they were protecting the contraband cigarettes during transportation and distribution. Simic subsequently obtained a 50 caliber handgun requested by Kunjundzic, which was recovered at Simic’s residence at the time of his arrest, along with a 9mm handgun. On December 2, 2009, Simic and Kunjundzic transported 80 cases of contraband cigarettes to New Jersey in exchange for $3,400 paid by the undercover agent.
From July 2009 through January 2010, Simic and Kunjundzic also distributed cocaine to the undercover agent and source. For example, on October 7, 2009, Simic and Kunjundzic delivered 114.5 grams of cocaine to the undercover agent, who paid them $6,520 for the cocaine and to transport and protect a delivery of contraband cigarettes. A portion of the cocaine was secreted in the shipment of contraband cigarettes. Similarly, on October 22, 2009, Simic and Kunjundzic delivered 244.3 grams of cocaine to the undercover agent and on and November 12, 2009, they delivered 268.2 grams of cocaine, for which they were paid $13,800 and $4,000, respectively, for the cocaine and to transport contraband cigarettes. Simic was armed during each of the transactions.From September 9, 2009 through at least January 26, 2010, Simic and Kunjundzic provided protection for eight shipments of contraband containing 575.5 master cases of cigarettes and were paid a total of $52,120, including the payments for the cocaine. The tax loss attributable to Simic relating to the illegal cigarette trafficking is $1,356,358, based on losses of $819,600 to Maryland, $122,940 to Virginia and $413,818 to the federal government.
On February 26, 2014, Mirza Kunjundzic, age 33, of Woodbridge, Virginia, was sentenced to 15 years in prison after pleading guilty to conspiracy to distribute and possess with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
United States Attorney Rod J. Rosenstein praised the FBI and IRS for their work in these investigations and expressed his appreciation to Prince George’s County Police Chief Mark A. Magaw for the assistance that he and his department provided. Mr. Rosenstein thanked Assistant United States Attorneys James A. Crowell IV, A. David Copperthite and Sujit Raman, who prosecuted the case.
Morgan State University Professor Convicted in Scheme to Defraud the National Science Foundation and for Obtaining Kickbacks from Students’ StipendsRead the Press Release
Fraudulently Obtained $200,000 and Attempted to Obtain Another $500,000 through a National Science Foundation Small Business Program
Baltimore, Maryland - A federal jury convicted Manoj Kumar Jha, age 46, of Severn, Maryland, today of wire fraud, mail fraud, falsification of records, and theft of government property in connection with a scheme to fraudulently obtain research grants from the National Science Foundation (NSF) and kickbacks from students’ stipends.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Allison Lerner, Inspector General at the National Science Foundation.
“The Small Business Technology Transfer Program supports research performed cooperatively between small businesses and research institutions,” said Allison Lerner, National Science Foundation Inspector General. “This conviction of guilt on seven counts, including obstruction of justice and theft of government property, sends a strong signal to anyone who would seek to defraud this program and divert taxpayer dollars intended for scientific research to personal use. I commend the U.S. Attorney’s office for its strong support in this case.”
According to trial testimony, from January 2008 through July 2009, Jha fraudulently obtained $200,000 in grant funds from the National Science Foundation=s (NSF) Small Business Technology Transfer (STTR) program to fund a highway project, and attempted to obtain another $500,000 through the same program. Jha converted the funds to his personal use. For example, Jha made payments on his mortgage and personal credit card and authorized approximately $11,000 in salary payments to his wife, who performed no NSF-related work.
Jha, a full time professor at Morgan State University, incorporated Amar Transportation Research and Consulting, Inc. (ATRC), and was its president and only director. Trial evidence showed that Jha submitted funding proposals on behalf of ATRC to the STTR. The stated purpose of Jha=s proposed project was to enhance current models used by highway planners to optimize horizontal and vertical highway routes, and ultimately, to commercialize the result. In his application for STTR funding, Jha listed himself as the principal investigator and the University of Maryland as the CRI. Under the STTR, the primary employment of the principal investigator must be with the small business at the time of the award; and at least 40% of the research must be performed by the small business and 30% by a collaborating research institution (CRI), as measured by the budget.
Trial evidence was presented that in his applications, Jha falsely represented that: he would secure “release time” or negotiate other leave options with Morgan State University in order to spend time at ATRC working on the highway project; that ATRC had eight employees; and that another Morgan State professor would be working for ATRC as a Senior Scientific Advisor. In fact, Jha remained employed full time as a professor at Morgan State and that none of the statements were true. Jha also misrepresented the involvement of the University of Maryland in conducting research on the project and further misrepresented that he had obtained a $100,000 investment from a third party in order to qualify for matching funds from NSF.
On February 15, 2011, an investigator with the Office of Inspector General (OIG) for the NSF sent Jha a letter requesting copies of documents, including a list of all individuals who worked on the highway project and their time sheets, and the company=s expenditure ledger detailing all budget categories, as part of a proactive OIG review of ATRC’s compliance with laws, regulations, and conditions in connection with the NSF grant. On March 11, 2011, Jha provided, through his attorney, biweekly, signed time sheets purportedly maintained by Jha for a research scientist who worked on the highway project from October 1, 2008 until September 8, 2009. The time sheets were created by Jha only after receiving the OIG letter, and in such a way as to give the false appearance that the time sheets had been maintained and signed contemporaneously with the research scientist’s work. Jha also provided a copy of ATRC’s expenditure ledger as of September 10, 2009, in which he entered fictitious research expenses in order to conceal the fact that NSF funds had been converted to Jha’s personal use.
Finally, between March 4, 2008 and June 30, 2012, Morgan State University received federal funds under two subcontracts funded by the U.S. Department of Defense. Jha served as Morgan State’s Principal Investigator for those contracts and authorized stipend payments totaling approximately $100,000 to Morgan State University students working on those contracts. Trial evidence showed that between July 25, 2009 and July 24, 2010, Jha told some students who received stipend payments that they had to return a portion of the stipend funds to him, offering various false and misleading reasons. Some students returned a portion of their stipend to Jha, which Jha then used to pay personal expenses. The evidence showed that approximately $36,000 in stipend funds returned to Jha by Morgan State University students were deposited into Jha’s personal bank account
Jha faces a maximum sentence of 20 years in prison for each of four counts of wire fraud, and for one count each of mail fraud and falsification of records; and a maximum sentence of 10 years in prison for theft of government property. U.S. District Judge Ellen L. Hollander scheduled sentencing for July 11, 2014, at 10:00 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the National Science Foundation, Office of Inspector General for its work in the investigation and thanked the Department of Transportation Office of Inspector General for its assistance. Mr. Rosenstein praised Assistant U.S. Attorney Martin J. Clarke and Special Assistant U.S. Attorney Fara Damelin, Investigative Attorney with the Office of Inspector General for the National Science Foundation, who are prosecuting the case.
Baltimore Man Sentenced to 10 Years in Prison in Armed Robbery SpreeRead the Press Release
Co-Conspirators Admitted to Committing up to 22 Armed Robberies of Stores and Businesses
Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Dion Mitchell Doram, age 23, of Baltimore, Maryland today to 10 years in prison followed by five years of supervised release for commercial robbery and possession of a firearm in furtherance of a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Kevin Davis.
According to his plea agreement and court documents, Doram, Quindell Gardner, Tavon McPhaul and others robbed stores in the Baltimore area. After deciding which place to rob, the conspirators would steal a car to use during the robbery. They also used a gun during the robberies to steal cash and cigarettes.
Doram admitted that he participated in at least four armed robberies of convenience stores. On June 21 and June 30, 2012, Doram entered stores on West 41st Street, and on Washington Boulevard, respectively, in Baltimore, brandishing a sawed-off shotgun. Money and cigarettes were taken from employees in each robbery.
On July 4, 2012, Doram entered a store on North Dundalk Avenue in Dundalk, Maryland, carrying a sawed-off shotgun. Gardner entered the store with Doram and stole money and cigarettes from an employee. Doram and Gardner left the store and escaped in a stolen vehicle driven by McPhaul. Witnesses saw the getaway car and provided a description to police.
Shortly thereafter, while Doram waited in the get-away car, Gardner entered a convenience store on Eastern Avenue in Baltimore brandishing the same sawed-off shotgun Doram had used earlier that day. After stealing cash from an employee, Gardner and Doram escaped in the car driven by McPhaul. Police responding to the scene spotted the car and a chase ensued. Doram and Gardner jumped out the car during the chase and were arrested by Baltimore Police officers. McPhaul abandoned the car and escaped on foot, carrying the sawed-off shotgun, but was subsequently arrested.
Quindell Ryeshawn Gardner, and Tavon McPhaul, both age 22, and both of Baltimore, previously pleaded guilty to their roles in committing robberies. Gardner admitted to participating in 22 armed robberies and McPhaul admitted to participating in 12 armed robberies, with Gardner going into the store to commit the robbery and McPhaul driving the getaway vehicle. Judge Garbis sentenced McPhaul to 145 months in prison. Gardner is scheduled to be sentenced on June 5, 2014. Gardner and the government have agreed that if the Court accepts his plea agreement, he will be sentenced to between 15 and 25 years in prison.
United States Attorney Rod J. Rosenstein praised the FBI, the Baltimore City and Baltimore County Police Departments and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Benjamin M. Block, who prosecuted the case.
Montgomery County Man Indicted for Deceptive Telemarketing Fraud Scheme That Allegedly Defrauded Clients of More Than $6.265 MillionRead the Press Release
Allegedly Engaged in Deceptive Practices To Offer Debt Management Services
Greenbelt, Maryland - A federal grand jury today returned a superseding indictment against Richard A. Brennan, age 42, of Clarksburg, Maryland, which added charges of conspiracy, mail, wire and telemarketing fraud, and filing false tax returns, to the several gun charges contained in the original indictment. The original indictment was returned under seal on March 5, 2012, and was unsealed on March 12, 2014, upon Brennan’s arrest.
The superseding indictment 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; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Maryland Attorney General Douglas F. Gansler.
According to the superseding indictment, Brennan was an attorney who operated law offices and other businesses in Frederick, Maryland and elsewhere, that offered debt management and settlement services. Brennan’s firms recruited customers from around the United States through telemarketers.
In 2007, the Maryland Attorney General’s Office began an investigation into allegations that Brennan’s firms engaged in unfair and deceptive trade practices, including: that they sold debt management services to customers and administered debt management plans from their offices in Frederick, although they could not lawfully do so in Maryland; that they held themselves out as non-profit credit counseling agencies, when they were for-profit entities; and that the employees of Brennan’s firms almost always recommended that the debt clients enter into debt settlement plans that were profitable for Brennan’s firms, but not necessarily an appropriate resolution of the clients’ financial problems. In addition, Brennan’s firms represented to clients that the funds collected from debt clients would be placed in a trust account and used to administer the clients’ debt management plans, with payments made timely to the clients’ creditors. Instead, the funds were used to pay Brennan’s business operation and personal expenses and the firms did not make timely payments to clients’ creditors because of lack of funding in the trust account.
On October 18, 2007, Brennan signed an agreement with the Maryland Attorney General’s Office acknowledging that he was responsible for creating and implementing the alleged unfair or deceptive practices of his companies and agreed to “cease and desist” such practices and abide by the requirements set out in the agreement.
The eight count superseding indictment alleges that between October 19, 2007 and April 2010, Brennan conspired with others to continue to make false representations to new and existing debt clients to convince them to engage or retain Brennan’s firms to negotiate settlement of their debts with creditor companies. Brennan and his co-conspirators used telemarketing to execute the scheme and, in doing so, victimized at least 10 people over the age of 55. Brennan and his coconspirators would mail or email contracts and power of attorney forms to clients, which authorized Brennan’s companies to make periodic debits from their accounts, but which failed to make disclosures required under the agreement with the Attorney General’s office, and which omitted any mention of his restrictions from providing such services. Brennan allegedly deposited all funds debited from debt clients’ accounts into one account which he then used to pay the operating expenses of his firms, as well as to fund lavish personal expenses, including several luxury vehicles, international travel, exotic firearms and furnishings for his residence.
The superseding indictment alleges that to evade the restrictions in the agreement, Brennan renamed his firm multiple times and moved its physical operating location on several occasions. In addition, Brennan and co-conspirators allegedly formed new entities in order to open bank accounts using entity names besides those of Brennan’s firms in order to disguise ownership and avoid scrutiny from regulatory authorities.
According to the superseding indictment, Brennan used the deceptive practices to defraud debt clients over more than $6.265 million during the course of the conspiracy.
The superseding indictment also charges that Brennan filed false tax returns in 2006 and 2007. For example, the indictment alleges that in 2007, Brennan reported an adjusted gross income of negative $576,273.10 when he had unreported business receipts that year of at least $9,229,802.
Finally, Brennan faces four gun charges, including: that he illegally possessed 11 machineguns; transported a handgun from Maryland to a person in Virginia who was not a licensed importer; manufactured firearms without having registered as required by law; and possessed an unregistered sawed off shotgun.
Brennan faces a maximum sentence of 20 years in prison for the conspiracy and mail fraud counts; a maximum of 10 years in prison, consecutive to any other sentence, for using telemarketing to victimize ten or more people over the age of 55 in the course of committing the fraud conspiracy; a maximum of three years in prison for each of the two tax charges; and a maximum of 10 years in prison for each of the four firearms charges. An initial appearance and arraignment on the superseding indictment is scheduled for April 7, 2014, at 1:30 p.m. in U.S. District Court in Greenbelt. Brennan is 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 ATF, U.S. Postal Inspection Service, IRS-Criminal Investigation, and the Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Adam K. Ake, who is prosecuting the case.
Frederick Man Sentenced to 15 Years in Prison for Three Armed Store RobberiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Steven Ray Williams, age 43, of Frederick, Maryland, today to 15 years in prison, followed by five years of supervised release, for three armed robberies and for brandishing a gun during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Alan Goldberg of the Takoma Park Police Department.
According to Williams’ plea agreement, on December 10, 2011 Williams and a co-conspirator robbed a store in the 15000 block of Frederick Road in Gaithersburg, Maryland. Williams and the co-conspirator accosted a store employee as he was opening the store, pointing a handgun at the employee and ordering the employee to open the safe. After the employee opened the safe, Williams and the co-conspirator wrapped the employee’s arms and ankles with duct tape and fled the store, stealing $6,000 in store proceeds, as well as the employee’s cell phone and wallet. On March 7, 2012, Williams and another co-conspirator robbed the same store, accosting two store employees as they were opening the store. Williams and the co-conspirator duct taped one of the employee’s legs and wrists and forced the other store employee at gunpoint to open the safe. They then duct taped that employee’s wrists, and fled the store, stealing $2,700 in store proceeds, as well as the cell phone of one of the employees.On September 16, 2012, Williams and the two co-conspirators robbed a store located in the 6300 block of New Hampshire Avenue in Takoma Park, Maryland. One of the co-conspirators waited outside the store while Williams and the other co-conspirator entered the store. After the last customer had left the store, the co-conspirator locked the front door and Williams took out a gun, pointed it at a store employee and ordered the employee to take him to the store office, where the manager was counting money. After entering the office, Williams threw the employee to the floor and the co-conspirator tied his hands and feet using flex cuffs. They were unable to tie up the manager, so Williams held the gun to the manager’s neck, while Williams and the co-conspirator collected the money the manager had been counting. While the robbery was taking place, an 81 year old customer managed to open the front door and entered the store. Williams and the co-conspirator tied the customer’s hands with flex cuffs and dragged the customer to the back of the store. Williams and the co-conspirator ran out the back door with a bag filled with approximately $800 in store proceeds, but as they attempted to flee, they left the money outside the store.
United States Attorney Rod J. Rosenstein praised the ATF, Montgomery County Police Department and Takoma Park Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack, Mara Zusman Greenberg and Kelly O. Hayes, who prosecuted the case.
Two Armed Robbers Exiled to over 11 Years in Prison for Stealing Prescription Drugs and Cash from A Woodbine PharmacyRead the Press Release
Tied up the Pharmacist and Store Clerk, and Took the Pharmacist’s Car
Baltimore, Maryland – U.S. District Ellen L. Hollander sentenced Anthony Sering and Anthony Alascio, both age 28, of Anne Arundel County, today each to 135 months in prison followed by three years of supervised release for conspiring to commit robbery. Judge Hollander also entered an order that the defendants pay $4,095 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.
According to their plea agreements, on December 28, 2012 the defendants took a car from a relative of Alascio without permission and drove to a neighborhood near a pharmacy in Woodbine, Maryland. They parked the car in front of the garage of a residence. The owner of the residence became suspicious and called police.
The defendants left the car and walked to the pharmacy, wearing disguises. One of the defendants pointed a gun at the pharmacist and demanded prescription drugs and cash. The other defendant restrained the store clerk with plastic zip ties around her hands and ankles, and ordered her to lie face down on the bathroom floor. After the defendants took a total of $7,287.52 in drugs and cash, they used duct tape to restrain the pharmacist’s wrists and ankles and placed her face down on the floor next to the clerk. The defendants left, taking the pharmacist’s car. They drove back to the car they had parked in front of the residence. The resident, who was standing at a window inside his home, saw Alascio. Alascio spoke to the resident. The defendants loaded the drugs and cash into the parked car and sped off.
A police officer arrived at the residence and saw the defendants drive away at a high rate of speed. The officer pursued them. The defendants led police on an eight mile chase that sometimes exceeded 100 miles per hour, until Sering crashed the car into another vehicle at the intersection of Route 70 and Route 32 in Howard County. The defendants were arrested, and the stolen drugs and cash were seized. The resident who had called the police was driven to the scene and identified Alascio as the person who had parked in front of his house and who spoke to him.
The defendants were initially detained in the Howard County Detention Center. They were overheard during phone calls admitting to the robbery.
United States Attorney Rod J. Rosenstein commended the FBI, Howard County Police Department and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who prosecuted the case.
Timonium Man Sentenced to 5 Years in Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Thomas Warren Stickney, age 22, of Timonium, Maryland, today to five years in prison, followed by 25 years of supervised release, for distribution of child pornography. Judge Motz ordered that upon his release from prison, Stickney must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); 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 Stickney’s plea agreement, on December 13, 2012, Stickney sent an image and video, each depicting minors engaged in sexually explicit conduct, to an individual with whom he was communicating on-line. The individual reported the incident to Baltimore County Police detectives, who assumed the online identity of the individual. In an undercover capacity, a Baltimore County Police detective communicated with Stickney and requested another video, which Stickney supplied. Stickney then asked the detective to meet him for sexual purposes. The detective, still in an undercover capacity, informed Stickney that he would have to drop off his young nephew before he could meet with Stickney. Stickney suggested that the detective bring his nephew along so that they could engage in sexually explicit conduct with the nephew. Stickney was arrested when he arrived at a local motel for the meeting. A search recovered two condoms from Stickney’s front pants pocket, as well as a cellular phone from the front console of the car, and a laptop computer and external hard drive from a back pack on the front passenger seat.
A search warrant was obtained for Stickney’s car and residence. A subsequent forensic examination of the laptop, external hard drive and other digital media seized from Stickney’s home showed that there were approximately 14,350 images and 203 video files of minors, including prepubescent minors, engaged in sexually explicit conduct. These included depictions of sadistic and masochistic conduct or other depictions of violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, FBI, Baltimore County Police Department, Crimes Against Children Unit, and the Baltimore County 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.
Edgewater, Maryland Man Pleads Guilty to Defrauding SBA Disadvantaged Small Business Program and IRSRead the Press Release
Fraudulently Obtained Over $52 Million in Government Contracts, Concealed Income by Transferring Millions from Corporate Accounts to Casinos and to Pay Other Personal Expenses,
and Filed False Tax ReturnsGreenbelt, Maryland - Vernon J. Smith III, age 61, of Edgewater, Maryland, pleaded guilty today to conspiring to defraud the United States in connection with schemes to fraudulently seek federal contracts under a Small Business Administration program to assist socially and economically disadvantaged small businesses; and to defraud the IRS.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and General Services Administration Inspector General Brian D. Miller.
“Today’s guilty plea sends a strong message to those who lie to obtain preferences for federal contract awards,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “With our interagency partners, SBA OIG will continue to pursue those who defraud the government by lying to gain access to federal set-aside contracts. We would like to thank the U.S. Attorney's Office for its leadership and professionalism throughout this investigation.”
“Corruption of the nature uncovered throughout the course of this investigation destroys confidence in the Government's ability to act as a fair and effective steward of taxpayer dollars. This plea today, demonstrates the commitment of the Defense Criminal Investigative Service and its law enforcement partners to prosecute fraud to the fullest extent of the law,” said Robert E. Craig, Special Agent in Charge, Mid Atlantic Field Office, Defense Criminal Investigative Service.
“Conspiring to defraud the government in a decade long scheme and filing false tax returns is unlawful,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Bringing individuals to justice, such as Vernon Smith, who intentionally engage in this type of activity in order to defraud the IRS, ranks high on the list of IRS- CI's enforcement priorities.”
“This complicated scheme boils down to lying and cheating to obtain government contracts,” said GSA Inspector General Brian D. Miller. “I appreciate the hard work of our special agents, law enforcement partners, and U.S. Attorney's Office.”
According to his plea agreement, Vernon Smith was an owner and officer of Capitol Contractors, which provided roofing and construction services, primarily to U.S. government agencies. On March 3, 1993, Capitol Contractors was certified to participate in the SBA’s Section 8(a) program, which provides assistance to socially and economically disadvantaged small businesses. The majority owner of Capitol Contractors was a Native American. A small business can only participate in the Section 8(a) program for nine years before it “graduates” from the program and is no longer eligible to obtain government contracts reserved for Section 8(a) program participants. Shortly before Capitol Contractors graduated from the program in March 2002, the majority owner sold his interest in the company to Vernon Smith, who became the company’s sole owner and managed the day-to-day operations of the company. Vernon Smith did not qualify as a socially and economically disadvantaged individual under the Section 8(a) Program.In August 1999, Vernon Smith arranged for Anthony Wright, an African-American who was a former roofer and project manager at Capitol Contractors, to form a new company to participate in the Section 8(a) program upon Capitol Contractors’ graduation from the program. On August 11, 1999, Wright incorporated Platinum One Contracting in Maryland. Wright was the president and 60% owner, and Smith’s son was vice president and owned the remaining 40% of the corporation. In reality, Vernon Smith exercised complete and undisclosed control over Platinum’s operations, including the day-to-day management and long term decision making for the company.
Vernon Smith admits that from August 1999 to June 2013, he conspired to defraud the SBA in several ways. For example, Smith directed Wright to submit an application to the SBA for certification in the Section 8(a) program which did not reveal that Vernon Smith: exercised control over the company; had previously supervised Wright; owned more than 10% of Capitol Contractors; and was related to an owner of Platinum. From May 2004 through April 2010, Vernon Smith also caused Platinum to submit annual updates to the SBA Section 8(a) program that contained false information, including that the company was controlled by a socially and economically disadvantaged individual, and that no non-disadvantaged member of Platinum’s management received compensation that exceeded that received by Wright. In fact, Vernon Smith controlled the company and Platinum’s payments to Vernon Smith and other corporate officers far exceeded payments received by Wright for 2004 through 2009. Based on the fraudulent application and annual updates, Platinum One received more than $52 million in contracts from the federal government under the Section 8(a) program, to which it was not entitled. The total loss to the government resulting from Vernon Smith’s illegal conduct, regarding the illicit profit he received by defrauding the SBA, and depriving a legitimate Section 8(a) contractor of such profit, is $6,194,828
In addition, Vernon Smith and a co-conspirator transferred millions of dollars from Platinum to bank accounts in their own names, to Capitol Contractors, to casinos on their own behalf; and to pay for personal expenses charged to Platinum One’s credit cards. These expenses included: extensive dental work, veterinary visits for pets, lavish vacations, and limousine transportation to casinos in Atlantic City, New Jersey, among others.
Vernon Smith admits that he signed false corporate and personal tax returns for 2005 and 2006. Smith knew that the cost of goods sold and payments to contractors reported on the corporate returns were false because almost all of that money was paid to, and for the benefit of, Smith at casinos. He also knew that the income reported on his personal income taxes omitted hundreds of thousands of dollars that Capitol Contractors had paid to, and for his benefit. As a result, Smith owed additional personal income tax to the IRS totaling $264,105, and Capitol Contractors owed an additional $574,911 to the IRS for tax years 2005 and 2006. The total tax loss resulting from the conspiracy to defraud the IRS is $839,016.
Vernon Smith faces a maximum sentence of five years in prison for the conspiracy. U.S. District Judge Paul W. Grimm has scheduled his sentencing for July 2, 2014, at 9:30 a.m.
Anthony Wright, age 42, of Bowie, Maryland, pleaded guilty on June 18, 2013, to his role in the scheme and is scheduled to be sentenced on June 23, 2014.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General; Defense Criminal Investigative Service; IRS Criminal Investigation; and the GSA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin and Trial Attorney Kenneth C. Vert of the U.S. Department of Justice Tax Division, who are prosecuting the case.
Conspirator Sentenced to over Three Years in Car Dealership Fraud SchemeRead the Press Release
Used Stolen Identities to Purchase Expensive Cars
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Flinton Newton, age 34, of Bartlett, Tennessee today to 42 months in prison followed by two years of supervised release for conspiring to commit wire fraud and aggravated identity theft in connection with a scheme to use the stolen identity of others to purchase expensive cars.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, Newton and his co-conspirators obtained the identity information of credit-worthy individuals, created false identity documents in the names of those individuals, then posed as those individuals at automotive dealerships in order to apply for vehicle financing. Newton and his coconspirators filled out credit applications with dealers in Maryland and Virginia, and then used the extended credit to purchase, or attempt to purchase, expensive cars. They did not intend to make any payments on the loans.
On July 19, 2013, Newton and a co-conspirator went to Capitol Cadillac in Greenbelt. Newton posed as another person whose identity he had fraudulently obtained, to apply for $80,663 in financing to purchase a 2013 Cadillac Escalade in the victim’s name.
Later that evening, Newton and the co-conspirator drove to Mercedes-Benz of Silver Spring where Newton again posed as the victim. The men attempted to purchase a 2012 Mercedes-Benz CL550 and a 2009 Mercedez-Benz S550 for a total of $120,056. They filled out credit applications to finance the entire purchase price, again using the victim’s identity and credit. The dealership manager saw that the victim’s credit had just been used to purchase the Cadillac Escalade, so he notified Montgomery County Police, who responded and arrested Newton and his co-conspirator.
The total attempted loss as a result of the fraudulent scheme was between $200,000 and $400,000.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein praised the Secret Service, U.S. Postal Inspection Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Adam K. Ake, who prosecuted the case.
Bank Robber Sentenced to over 17 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Mark Edward Coulter, age 55, of Gaithersburg, Maryland, today to 210 months in prison followed by five years of supervised release for bank robbery and attempted bank robbery. Judge Bredar enhanced Coulter’s sentence upon finding that he is a career offender based on previous convictions for malicious burning of another person’s personal property and for robbery, both in Montgomery County Circuit Court.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; Chief David L. Stokes, Sr. of the Annapolis Fire Department and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to court documents and statements made at today’s hearing, on May 3, 2012, Coulter robbed the PNC Bank in Laurel, Maryland. Coulter handed the teller a note threatening that the bag Coulter carried had chemicals in it, but that no one would get hurt if the teller gave Coulter money. The teller, in fear, gave Coulter $4,500 and Coulter left with the cash, leaving the bag behind. Analysis of DNA recovered from the bag determined that Coulter was a contributor to that DNA.On May 21, 2012, Coulter attempted to rob the Capitol One Bank in Laurel, again handing the teller a note demanding money. The teller did not understand Coulter’s request and advised Coulter that he needed a withdrawal slip. Coulter left the bank without obtaining any money, leaving the note. Law enforcement was able to match Coulter’s fingerprints to prints recovered from the note and from inside the bank.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department, Annapolis Fire Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Justin S. Herring, who prosecuted the case.
Washington, D.C. Man Pleads Guilty to Robbing Banks and Possessing Child PornographyRead the Press Release
Greenbelt, Maryland – Devontae West, age 26, of Washington, D.C., pleaded guilty today to possession of child pornography and conspiracy to commit bank 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; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, West and his co-conspirators stole vehicles to use during bank robberies, designated a co-conspirator to act as a getaway driver, wrote demand notes to present to bank tellers, used juveniles to enter the banks to demand money, used cell phones to maintain constant contact during the bank robberies and divided the proceeds of the bank robberies amongst themselves.
More specifically, on five occasions from March 20 to May 22, 2013, West and others, including juveniles, drove to the following bank branches where his conspirators stole a total of $14,598: SunTrust Bank in Clifton, District Heights and Forestville, Maryland; Capitol One Bank in Landover Hills, Maryland; and TD Bank in Washington, D.C. Also, on May 13, 2013 West and his conspirators drove to Capitol One Bank in Suitland, Maryland to rob the bank, but left without having obtained any money.
Additionally, on May 5, 2013 West had sex with a 15 year girl who he had directed to help him rob banks. West took eight pictures of the girl having sex with him. These pictures were on West’s cell phone when he was arrested.As part of his plea agreement, West must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
West and the government have agreed that if the Court accepts the plea agreement, West will be sentenced to 12 years in prison. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for June 16, 2014.
Co-conspirator Calvin Manning also pleaded guilty today to bank robbery. Manning admitted to robbing the Sun Trust Bank in District Heights on March 25, 2013, which is one of the bank robberies in which West participated. Manning faces a maximum sentence of 20 years in prison at his sentencing scheduled by Chief Judge Chasanow 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 are prosecuting the case.
Former Eldersburg Postal Worker Guilty of Falsely Claiming Injuries to Obtain Federal Worker’s Compensation BenefitsRead the Press Release
False Disability Claims Exposed by Diligent Investigators
Baltimore, Maryland – Christopher Michael O’Brien, age 40, of Eldersburg, Maryland pleaded guilty today to making false statements to obtain federal employee’s compensation.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General (USPS-OIG ), Capital Metro Area Field Office.“Diligent federal agents brought Christopher O’Brien’s long-running disability scam to an end by following him on several occasions to determine that his injury claims were fraudulent,” said U.S. Attorney Rod J. Rosenstein. “Government employees who make false disability claims must be held accountable for defrauding taxpayers.”
According to his plea agreement, from 1998 through 2014, O’Brien worked for the U.S. Postal Service as a letter carrier. On March 25, 2008, O’Brien signed a form stating that he had injured his lower back when picking up a tub containing mail at the Derwood Branch of the Rockville, Maryland post office where he worked as a carrier technician. From that date through November 2013, O’Brien received over $212,420.12 in lost wages benefits from the alleged injury. During this period, O’Brien represented that he was unable to perform household chores, such as lawn maintenance, or resume full duty work due to severe pain and physical limitations resulting from his injury. Medical documents submitted to the Labor Department by physicians and medical professionals treating O’Brien’s injury indicated that he wore a back brace, used a cane, consistently limped and complained of persistent pain during medical examinations.From May 2012 through August 2013, USPS-OIG agents periodically observed and video recorded O’Brien walking briskly; jogging; bending; twisting; kneeling; squatting; lifting items weighing over 100 pounds; driving family members; performing household chores and yard maintenance, such as dog walking, pushing/pulling and turning a lawn mower, carrying and operating a weed line trimmer, carrying and operating a leaf blower; and regularly using dumbbells, barbells, stationary cycles and treadmills at a gym located in Eldersburg. During this time, except for the interview on July 30, 2013 described below, agents did not observe O’Brien wearing a back brace or using a cane.
The Postal Service periodically contacts claimants concerning their capability to return to full or limited duty. On July 30, 2013, O’Brien was interviewed at the Baltimore Post Office. Prior to the interview, agents saw O’Brien walking with no apparent disability from his house to his vehicle parked in front of his house, and driving to the interview. When O’Brien arrived at the post office, agents saw him walk slowly with a limp as he entered the building. O’Brien completed a form in which he maintained that he could not kneel, squat, climb and bend, and that he could not stand and walk for more than 10 minutes and could not sit for more than 15 minutes.
During the interview, O’Brien said that: he wears a back brace all the time when outside of his house; his wife drove him to the interview; he does not go to a gym; he has not lifted more than 15 pounds; he cannot twist or bend at the waist; and he needs to hold onto something when squatting to lift an object from the floor. O’Brien further stated he has difficulty walking, does not jog, does not usually walk the dog, does no lawn work, cannot push a mower and does not operate a power trimmer.
Following the interview, O’Brien was observed walking slowly with a limp from the post office to his vehicle, and driving away. Agents later observed O’Brien park in front of his house and walk into his home without a limp, carrying a back brace in his hand. On the day before and after the interview, agents saw O’Brien exercising at his gym, lifting dumbbells and walking on the treadmill.
On November 7, 2013, O’Brien admitted to USPS-OIG agents during an interview that he has not needed a cane since March 2010 and has not used a back brace when driving, exercising at the gym and performing yard work. O’Brien further admitted that he could have returned to work at the Postal Service in some capacity in March 2010 and that he misled his treating physicians and medical professionals in order to avoid returning to work.
The loss suffered by the Postal Service from May 2012 through November 2013 by O’Brien’s false statements is $80,647.25.
O’Brien and the government have agreed that if the Court accepts the plea agreement O’Brien will be sentenced to six months in prison and six months of home detention as a condition of supervised release. O’Brien also agrees to pay restitution of $80,647.25, and to resign from employment, and not to seek future employment, with the U.S. Postal Service. U.S. District Judge Richard D. Bennett scheduled sentencing for May 15, 2014 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Service OIG for its work in the investigation and thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.Tax Preparer Pleads Guilty to Filing False ReturnsRead the Press Release
Claimed False Deductions, Business Losses and First Time Homebuyer Credits
on Federal Tax ReturnsBaltimore, Maryland - Judianne Horn, age 43, of Owings Mills, Maryland pleaded guilty today to aiding in the preparation of false tax returns.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to her plea agreement, from 2007 to at least 2010, Horn was a tax return preparer who prepared approximately 3,000 tax returns for clients. Horn was self-employed and operated a tax preparation business out of her home in 2007 and again in 2010. In 2008 to 2009, Horn was employed at two other tax preparation businesses located in Owings Mills and Randallstown, Maryland. In all these years, Horn filed federal tax returns which she knew included false deductions and/or false business losses, thus generating a larger tax refund than the client was otherwise lawfully entitled. The total tax loss generated by these false tax returns is $281,764.Additionally, Horn also filed numerous false tax returns which claimed that the client was entitled to the first time home buyer credit. The credit was designed for persons who purchased a new home after April 8, 2008, and before May 1, 2010 and who did not own a home in the prior three years. A qualified taxpayer could receive a credit of up to $8,000. On at least five tax returns involving a false home buyers credit, Horn claimed that the taxpayer qualified for this credit, when in fact the taxpayer had not purchased a home at all. Horn directed the full $8,000 credit to a bank account she controlled.
Horn has agreed to pay restitution to the IRS of up to $281,764.
Horn faces a maximum sentence of three years in prison followed by a year of supervised release and a fine of $250,000. U.S. District Judge Marvin J. Garbis scheduled sentencing for July 14, 2014 at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for their work in the investigation and thanked Assistant U.S. Attorneys David I. Sharfstein and Gregory R. Bockin, who are prosecuting the case.Operator of Two Convenience Stores Sentenced to 2 Years in Prison for Food Stamp FraudRead the Press Release
Four Other Retailers Have Been Sentenced to Between Two and 38 Months in Prison
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Ahmed Ayedh Al-Jabrati, age 58, a citizen of Yemen residing in Baltimore, today to two years in prison, followed by three years of supervised release, for wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Quarles also ordered that Al-Jabrati pay restitution of $1.2 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Al-Jabrati operated two convenience stores, Second Obama Express and D&M Deli and Grocery, located next door to each other at 901 Harlem Avenue in Baltimore. According to their plea agreements and court documents, the stores participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Al-Jabrati knew that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from October 2010 to July 2013, Al-Jabrati exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for themselves.
Judge Quarles determined today that Al-Jabrati obtained at least $1.5 million in payments for food sales that never occurred.
Eight of the 10 convenience store owners or operators who were indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud. Amara Cisse, age 50, of Windsor Mill, Maryland, was sentenced to 27 months in prison and ordered to pay restitution of $654,349.24, and his wife, Fanta Keita was sentenced to two months in prison. Retailer Hyung Cho, age 40, was sentenced to 38 months in prison, and his mother Dae Cho, age 67, was sentenced to 18 months in prison. The Chos were also ordered to forfeit $371,439.21 and pay restitution of $1.4 million. Two more retailers were indicted in January 2014.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who prosecuted the case.
California Man Indicted on Charges of Domestic Violence Resulting in Death of A SpouseRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Dellando Recardo Campbell, age 31, of Lemoore, California, on charges of interstate domestic violence resulting in the death of a spouse, in connection of the death of Serika Dunkley Holness. The indictment was returned on February 5, 2014. Campbell, who was arrested in California on February 7, 2014, was transported to Maryland. Campbell had an initial appearance today in U.S. District Court in Baltimore and was detained, pending a detention hearing scheduled for Friday, March 25, 2014.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
The indictment alleges that Campbell conspired with Ryan Dave Holness to murder Ryan Holness’ wife, Serika Dunkley Holness. DNA evidence found in Holness’ car, which was recovered in Washington, D.C. the day after the murder, link Campbell to the crime.According to DNA and other evidence presented at Ryan Holness’ two week trial, Ryan Holness devised a scheme to bring his wife from New York to Maryland for the murder. On June 4, 2009, Holness and his wife traveled from New York to Maryland. Serika Holness was found murdered, stabbed multiple times in Kent County, Maryland, on June 5, 2009. Ryan Holness was convicted of domestic violence resulting in the death of a spouse and sentenced to life in prison.
If convicted, Campbell faces a maximum sentence of life in prison.
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 Maryland State Police and FBI for their work in the investigation and thanked the Kings County, California, District Attorney’s Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, who is prosecuting the case.
St. Mary’s County Man Pleads Guilty to Producing Child PornographyRead the Press Release
Used a Watch Camera to Surreptitiously Film the Victim
Greenbelt, Maryland – Ronald Davis Pope, age 49, of Mechanicsville, Maryland, pleaded guilty today to production of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.
According to Pope’s plea agreement, from February through May 2013, Pope lived with a family and shared a bathroom with the victim, a 14 year old male. Pope placed a watch containing a hidden camera in the bathroom and recorded the victim in the shower and using the bathroom. The camera was placed in a location that allowed Pope to capture videos focused on the victim’s genital area. Pope then transferred the videos to his computer and cellular phone. The victim was not aware that he was being recorded.
On May 2, 2013, federal and state law enforcement officials executed a search warrant at Pope’s residence and seized electronic devices, including Pope’s cellular phone and laptop computer. A forensic analysis of the SD card found in the cellular phone and the laptop recovered a total of 18 videos depicting the victim dressing, undressing, showering and using the restroom. The victim’s penis is exposed in at least 12 of the videos. At least one of the five videos found on the laptop appears to be part of the same video recovered on the cellular phone.
On May 7, 2013, a package addressed to Pope arrived at his residence. The package contained a weather clock hidden camera purchased on May 1, 2013, one day before Pope’s arrest. Later that month, one of Pope’s family members retrieved a package from a post office box belonging to Pope, which contained an HD clock DVR, USB cord and a micro SD card.
In June 2013, federal law enforcement officials seized the camera watch used to record the videos of the victim. Subsequent forensic analysis of the watch camera memory revealed three videos, one of which depicts the victim showering. The spy camera watch also contained an image of Pope’s face.
As part of his plea agreement, Pope must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Pope and the government have agreed that if the Court accepts the plea agreement Pope will be sentenced to 235 months in prison followed by a lifetime of supervised release. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for June 3, 2014 at 9:00 a.m. Pope’s federal sentence will run concurrent to the sentence imposed in a case pending the St. Mary’s County Circuit Court involving a separate victim. In that case, Pope has agreed to plead guilty to sexual abuse of a minor and be sentenced to 25 years in prison with all but 20 years suspended.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, St. Mary’s County Sheriff’s Office and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kristi N. O’Malley and Nicolas Mitchell, who are prosecuting the case.
Drug Dealer Sentenced to over 10 Years in Prison for Distributing Heroin and OxycodoneRead the Press Release
Also Sentenced to 10 Years in Prison for Making and Illegally Possessing an Explosive Device
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced John Frank Jenkins, age 30, of College Park, Maryland, today to 121 months in prison, followed by 14 months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to 10 years in prison for making an explosive device and being a felon in possession of an explosive device. The sentences are to be served concurrently. Judge Grimm also ordered Jenkins to pay restitution of $475.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido 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 Prince George’s County Fire/EMS Chief Marc S. Bashoor.
According to Jenkins’ plea agreement, from at least January 2011 through December 2012, Jenkins and his co-conspirators distributed oxycodone. From the spring of 2011 through the summer of 2012, Jenkins and others forged prescriptions for oxycodone, which they then presented to different pharmacies, obtaining 180 oxycodone pills approximately twice a week. Jenkins and his co-conspirators consumed some of the pills and sold the rest. During the conspiracy, Jenkins began to use and distribute heroin as a cheaper substitute for the oxycodone, selling heroin to pay for the heroin he used.In November 2012, Jenkins refused to sell oxycodone to one of his drug customers, resulting in an argument. After the argument, Jenkins built two pipe bombs, which he intended to use to blow up the drug customer’s vehicle. Another drug customer owed Jenkins $50 for oxycodone that Jenkins had supplied to the customer in June 2012. After making repeated calls to the customer and being unsuccessful in collecting the debt, in December 2012, Jenkins and a co-conspirator carried one of the pipe bombs to the home of the customer who owed Jenkins money, placed the pipe bomb on the front porch and lit the fuse. The bomb exploded, damaging the front door. The drug customer was sleeping in the bedroom adjacent to the door at the time of the explosion.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.
Sonar Club Owner Who Helped Supervise A Baltimore Drug Organization Sentenced to 10 Years in PrisonRead the Press Release
Tally Sheets Showed Sales of $14.5 Million of Marijuana;
Documents Seized Regarding Purchase of a Plane by Co-Conspirators for $450,000Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Daniel Gerard McIntosh, age 38, of Sparks, Maryland today to 10 years in prison followed by eight years of supervised release for conspiring to distribute between 100 and 1,000 kilograms of marijuana, conspiring to engage in money laundering and interstate travel to further drug trafficking activities.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.According to evidence presented at his seven week trial, McIntosh was part of an extensive drug trafficking operation which was discovered by the DEA when they executed a search warrant at a residence in the 3500 block of Hickory Avenue in Baltimore. The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, $30,000 in cash, 30 cell phones, documents regarding a plane purchased for $450,000 by other co-conspirators, tally sheets showing over $14.5 million in marijuana sales, four money counters and false identifications.
Trial testimony established that from at least 2006, McIntosh received large shipments of marijuana and distributed them to local dealers in the Baltimore metropolitan area.
According to trial testimony, in June 2008 McIntosh recruited Philip Parker to pick up marijuana in California and transport the marijuana to Maryland in Parker’s tractor trailer. McIntosh directed Parker to make multiple trips to California. One witness estimated that between September and December 2008, Parker made two trips a month, with loads ranging from 300-600 pounds of marijuana. On one occasion, McIntosh asked a co-conspirator to deliver
$1 million to Parker to transport to California to pay for the marijuana.From 2006 to early 2008, McIntosh used another individual to deliver hundreds of pounds of marijuana to his customers and to collect their payments.
McIntosh also furthered the drug organization’s business through money laundering. According to trial testimony, McIntosh was the manager, and as of June 2007, the majority owner of the Sonar Club in Baltimore. During the previous year, the business had lost $400,000. Once McIntosh took over the business, the leader of the drug organization became a silent partner who funded the business, which continued to lose thousands of dollars each year. McIntosh also provided employment verification for a co-conspirator who was on parole in 2008.
A total of 12 defendants have been convicted in this case, and sentenced to up to 121 months in prison.
Charges are still pending against the alleged leaders of the organization, David D’Amico, age 49, of Baltimore, Matthew Nicka, age 43, of Baltimore and his wife, Gretchen Peterson, age 34, of Kennett Square, Pennsylvania, all of whom were fugitives since the indictment was returned in December 2010. Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico is pending extradition from Colombia, South America.
United States Attorney Rod J. Rosenstein praised the DEA, IRS-CI and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Mara Zusman Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.Montgomery County Man Convicted in Violent Sex Trafficking ConspiracyRead the Press Release
Greenbelt, Maryland – A federal jury convicted Jean Claude Roy, a/k/a “Dredd the Don,” and “Dreddy,” age 31, of Germantown, Maryland, late yesterday of conspiracy to commit sex trafficking by force, fraud and coercion, three counts of interstate transportation for prostitution, and witness and evidence tampering.
The verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Department of Justice Civil Rights Division Jocelyn Samuels; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
"This defendant preyed on vulnerable young women and exploited them for prostitution,” stated Acting Assistant Attorney General Samuels. “The Civil Rights Division is committed to seeking justice on behalf of victims of human trafficking."
“Protecting our communities from those who engage in human trafficking is a top priority for HSI,” said William Winter, special agent in charge of HSI Baltimore. “As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
According to evidence presented during the two week trial, between August and September 2012 Roy transported a victim across state lines to engage in prostitution. He also took the victim’s identity documents, kept all of the victim’s money, and bragged to her about beating murder charges.
In November 2012 Roy recruited co-defendant Brittney Creason to engage in prostitution at Roy's direction. Thereafter, Creason helped Roy recruit and transport girls from Illinois and North Carolina to engage in prostitution. Roy conspired to force the women to engage in prostitution by again bragging about beating murder charges, taking their identity documents and taking their money.
Trial evidence also showed that from January 1 to January 10, 2013, while Roy was in jail on related state charges, he called an individual several times and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.
Roy faces a maximum sentence of life in prison for conspiracy to commit sex trafficking; a maximum of 10 years in prison for each of three counts of interstate transportation for prostitution; and a maximum of 20 years in prison for witness and evidence tampering. U.S. District Judge Paul W. Grimm scheduled sentencing for July 16, 2014 at 9:30 a.m.The jury found Roy not guilty of sex trafficking and attempted sex trafficking by force, fraud and coercion; and possessing and brandishing a firearm during a crime of violence.
Brittney Creason, a/k/a “Kitty Amor,” age 19, of Decatur, Illinois, previously pleaded guilty of using a facility in interstate commerce for an illegal activity, and awaits sentencing.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human Trafficking/index.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, and Trial Attorney William E. Nolan of the U.S. Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.Carroll County Sex Offender Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Scott Wade Markle, age 52, of Westminster, Maryland, today to 10 years in prison, followed by lifetime supervised release for possession of child pornography. In 2005, Markle was convicted of the same crime and was required to register as a sex offender. Judge Blake ordered that upon his release from prison, Markle must continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
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; and Carroll County Sheriff Kenneth Tregoning.
According to Markle=s plea agreement, on February 11, 2013, an individual contacted the Carroll County Sheriff’s Office after finding a black tote bag at the bottom of his driveway. The individual had opened the bag in an attempt to identify the owner and had seen printed images of what he believed to be child pornography. Sheriff’s deputies recovered the bag which contained a student ID in Markle’s name, recent mail addressed to Markle and a folder with Markle’s name and address on the front which contained approximately 100 printed images of child pornography, including children under the age of 12 engaged in sexually explicit conduct.
A search warrant was executed the next day at Markle’s residence and law enforcement seized a digital camera, cellular telephone and two laptop computers. Markle was interviewed and advised investigators that he had printed the child pornography years ago after he was released from prison on the 2005 conviction. He used the camera to take pictures of the images and upload them to his computer, since he didn’t have internet access at his 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 HSI Baltimore, the Maryland State Police and the Carroll County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Retailer Sentenced to over Two Years in Prison for Food Stamp FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Amara Cisse, age 50, of Windsor Mill, Maryland, to 27 months in prison followed by three years of supervised release for food stamp fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Bennett also entered an order that Cisse forfeit and pay restitution of $654,349.24.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Cisse owned Simbo Food Mart, a convenience store located at 2103 West Pratt Street in Baltimore. Cisse’s wife, Fanta Keita worked at the store. The store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
According to his plea agreement, Cisse completed the required government form in May of 2010 to become an authorized retailer in the program, certifying that he understood that it was a violation of SNAP regulations to trade cash for SNAP benefits. From November 1, 2010 to May 2013, Cisse and Keita exchanged SNAP benefits for cash at less than face value of the EBT benefits, and kept up to 50 percent of the benefits for themselves, using the cash to pay rent and other bills.
The Court determined today that Cisse obtained more than $654,349.24 in payments for food sales that never occurred.
Fanta Keita, age 45, also of Windsor Mill, previously pleaded guilty and is scheduled to be sentenced on March 18, 2014.
Eight of the 10 convenience store owners or operators who were indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud. Two of those defendants were sentenced on February 21, 2014 by U.S. District Judge George L. Russell, III: Hyung Cho, age 40, to 38 months in prison, and his mother Dae Cho, age 67, to 18 months in prison. Two more retailers were indicted in January 2014.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting this case.
Ophthalmologist Agrees to Pay $1.4 Million and to 20 Year Voluntary Exclusion from Federal Programs to Settle Claims That He Performed Medically Unnecessary Laser ProceduresRead the Press Release
Baltimore, Maryland – John Arthur Kiely, M.D., of Lutherville, Maryland, has agreed to pay the United States $1.4 million to settle claims under the Federal False Claims Act that he submitted and caused the submission of false claims by Bon Secours Hospital to Medicare and Medicaid between October 29, 2002 and April 14, 2009. Kiely has also agreed to a 20 year voluntary exclusion from Federal health care programs.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Nicholas DiGiulio, Office of Inspector General of the Department of Health and Human Services, Philadelphia Region which includes Maryland.
“Medical advice must be motivated by the patient’s best interest and not by the doctor’s personal financial interest,” said U.S. Attorney Rod J. Rosenstein. “The government contended in this case that Dr. John Kiely performed glaucoma surgery because it was profitable for him, even when it was not necessary and not appropriate.”
“We are pleased Dr. Kiely agreed to resolve the allegations of falsely billing government health programs for unnecessary and excessive medical procedures,” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the United States Department of Health and Human Services. “We rely on physicians to perform only needed services and to bill appropriately. In addition to payment, Dr. Kiely has agreed to be excluded from participation in all Federal health care programs for at least 20 years.”The settlement arises out of an investigation that resulted in the United States filing a civil complaint on July 12, 2013 in U.S. District Court in Maryland, captioned United States v. John Arthur Kiely, M.D., Civil No. MJG-11-668, in which the United States charges that Kiely, a general ophthalmologist, submitted claims to Medicare and Medicaid for laser eye procedures that fell outside the medical standard of care. The government contends that because the procedures did not meet the medical standard of care, they were not reasonable and necessary as required for reimbursement by Medicare and Medicaid. The claims covered by the settlement agreement include Argon Laser Trabeculoplasties (ALTs) between October 29, 2002 and September 11, 2007; Lysis of Adhesions procedures between October 29, 2002 and April 14, 2009; and Laser Peripheral Iridotomies (LPIs) between November 12, 2002 and September 26, 2006. An ALT is a laser procedure performed to treat open angle glaucoma, while LPI is a laser procedure performed to treat narrow angle glaucoma. Kiely performed between 3 and 14 ALTs per eye on the 120 patients identified in the civil complaint, and also performed repeated Laser Peripheral Iridotomies and Lysis of Adhesions on many of these patients.
Kiely performed these laser procedures primarily at Bon Secours Hospital in Baltimore, Maryland. The settlement covers false or fraudulent claims submitted by him to Medicare and Medicaid directly, as well as hospital fees arising out of these laser procedures that he caused Bon Secours Hospital to submit to Federal health care programs.
Dr. Kiely denies the allegations.
Enacted during the Civil War, the False Claims Act is the government’s primary civil tool to combat fraud and abuse in federal programs and procurement. The Act allows the government to recover triple the amount of its actual damages, plus a civil penalty of $5,500 to $11,000 for each false claim and permits the payment of a portion of any settlement or judgment under the Act to individuals who bring fraud to the attention of authorities.
United States Attorney Rod J. Rosenstein commended Assistant U.S. Attorneys Tarra DeShields and Roann Nichols, who handled the case.
Nine Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead the Press Release
Gang Members Allegedly Committed Murders, Attempted Murders, Stabbings, Extortion
and Witness TamperingGreenbelt, Maryland – A federal grand jury returned a superseding indictment charging the following defendants in connection with a conspiracy to participate in murder in aid of a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:
Jorge Enrique Moreno-Aguilar, aka “Flaco” and “Castigato,” age 20, of District Heights, Maryland;
Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 25, of District Heights;
Melvin Marquez-Sanchez, aka “Demente,” age 19, formerly of New York;
Carlos Beltran-Flores, aka “Joker,” age 22, of Hyattsville, Maryland;
Francisco Hernandez, aka “Chicle,” age 20, of Silver Spring, Maryland;
Wilmer Argueta, a/a “Chengo” and “Happy,” age 21, of Hyattsville;
Eric Antonio Mejia-Ramos, aka “Flaco,” age 20, of Hyattsville;
Minor Perez-Chach, aka “Minor Chach-Perez,” “Little Bad” and “Bryant Sacarias,
age 23, of Hyattsville; and
Miguel Angel Manjivar, aka “Garra” and “Masflow,” age 21, of Hyattsville.The superseding indictment was returned on March 7, 2014 and unsealed yesterday upon the arrest of defendant Hernandez. All of the defendants are in custody.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.
“Attacking and dismantling violent criminal enterprises like MS-13 is one of HSI’s highest enforcement priorities,” said HSI Baltimore Special Agent in Charge William Winter. “Our investigation revealed that MS-13 is an enterprise that participates in criminal acts, such as murder, attempted murder, violent assaults, witness intimidation and retaliation, and extortion. HSI special agents will continue to work with our local, state and federal law enforcement partners to target MS-13 members and other transnational criminal street gangs that are a rising public safety threat in our communities.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.
The 12 count indictment alleges that from prior to 2009 to February 2014, the defendants were members and associates of MS-13 who planned and committed murders, attempted murders, assaults and robberies in Montgomery and Prince George’s Counties. Gang members also allegedly extorted high school students and brothel operators, committed witness tampering and obstructed justice, among other crimes.
More specifically, the indictment alleges the following murders. On January 10, 2011, defendant Manjivar and several other MS-13 members repeatedly stabbed two individuals believed to be affiliated with the rival 18th Street Gang, killing one and attempting to kill the other. On August 28, 2012, defendant Mejia-Ramos and others murdered a woman believed to be a rival gang member, by shooting her in the head. On February 23, 2013, defendant Perez-Chach and another MS-13 member murdered a person believed to be a former MS-13 member who had testified in federal court against several MS-13 members in a prior federal racketeering prosecution in Maryland, attacking him with a knife and machete.
From January 2011 to December 2012, Manjivar, Hernandez, Beltran-Flores, Mejia-Ramos and other MS-13 members are alleged to have planned and/or participated in the attempted murder of four individuals believed to be affiliated with rival gangs including the 18th Street Gang, Adelphi Crew, Latin Kings and Lewisdale Crew. One of these victims was targeted for murder to prevent him from testifying at trial in the Circuit Court for Prince George’s County against defendant Argueta.
Additionally, the indictment alleges that Hernandez, Beltran-Flores, Argueta and other MS-13 members threatened to kill a fellow gang member unless he paid them a weekly or bi-weekly “rent” or “tax,” which gang members collected from the victim from at least March to November, 2011. Five others are alleged to have been assaulted, including one victim who was stabbed with a butterfly knife.
Moreno-Aguilar, Ortiz-Orellana, Marquez-Sanchez, Beltran-Flores, Mejia-Ramos, Perez-Chach and Manjivar face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise, and Hernandez and Argueta face 20 years in prison. Moreno-Aguilar and Ortiz-Orellana also face a maximum sentence of life in prison for murder in aid of racketeering; murder resulting in the use of a gun; and using a firearm during a crime of violence. Beltran-Flores also faces a maximum sentence of life in prison for using a firearm during a crime of violence and 20 years in prison for conspiring to commit witness tampering and for witness tampering by attempted murder. Defendant Hernandez had his initial appearance in federal court in Greenbelt yesterday. The other defendants are expected to have their initial appearances beginning next week.
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 commended the HSI Baltimore, Prince George’s County and Montgomery County Police Departments, Prince George’s County State’s Attorney’s Office, the Takoma Park Police Department and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau and Kevin L. Rosenberg, a Trial Attorney with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Baltimore Armed Career Criminal Exiled to 15 Years Prison for Illegal Possession of A Gun and AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Ellen L. Hollander sentenced Robert Stewart, age 28, of Baltimore, Maryland, today to 15 years in prison, followed by five years of supervised release, for being a felon in possession of a firearm and ammunition. Judge Hollander enhanced Stewart’s sentence upon finding that he is an armed career criminal based on four previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido 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, in early 2013, Baltimore Police officers received information that an individual, later identified as Robert Stewart, was engaged in drug trafficking while armed with a firearm in the 1200 block of Washington Boulevard in Baltimore. Officers watched the vehicle Stewart was using to conduct the drug trafficking and saw Stewart leaving in the car with a woman driving and returning no more than 15 minutes later.
On February 4, 2013, the officers received information that Stewart was returning to his residence with the gun in the car after having just dropped off narcotics. Officers stopped the car and saw Stewart bend down with hands between his feet. After repeated commands to show his hands, Stewart eventually put both hands in the air and officers removed Stewart and the driver from the vehicle.
During a search of the car officers recovered a .45 caliber semi-automatic pistol, loaded with six rounds of .45 caliber automatic, full metal jacket cartridges from the front passenger floor, partially hidden beneath the seat. After being advised of his rights, Stewart admitted that the gun was his.
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 Debra L. Dwyer, who prosecuted the case.
BGF Associate Sentenced to over 11 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
BGF Associate Arranged for Correctional Officers to Smuggle Contraband into the Jail,
Which He Sold to Other Inmates, Including BGF MembersBaltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Jermaine McFadden, age 25, today to 140 months in prison followed by three years of supervised release for participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to his plea agreement, McFadden was associated with BGF while incarcerated at BCDC in 2012 to 2013. McFadden arranged with correctional officer Katera Stevenson and another officer for Percocets, cell phones, tobacco, marijuana and other contraband to be brought into BCDC, which he sold to BGF members and other inmates.
Eleven correctional officers, including Katera Stevenson, age 25, have pleaded guilty to their roles in the conspiracy, and three have been sentenced to between 32 and 42 months in prison. Three BGF members have pleaded guilty to the racketeering enterprise and two of them were sentenced to between nine years and 151 months in prison.
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.Anne Arundel County Cocaine Dealer Exiled to over 13 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Daryell M. Rexrode, age 56, of Pasadena, Maryland, today to 160 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Kevin Davis; and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to his plea agreement, from November 2012 through July 24, 2013, Rexrode conspired with Paul Rodney Cain and others to distribute cocaine. On November 16, 2012, Rexrode was arrested in Baltimore upon arriving to accept a controlled delivery of a kilogram of cocaine that he intended to split with Cain. Rexrode had an additional 344 grams of cocaine and more than 700 grams of methamphetamine in the trunk of his car.
In May 2013, law enforcement initiated wiretaps on two cell phones belonging to Cain and learned that Rexrode and Cain were building their inventory of cocaine. For example, on May 23 law enforcement overheard Rexrode and Cain discussed purchasing cocaine from multiple sources of supply. During this call, Cain told Rexrode that he had arranged to purchase a large quantity of cocaine from an individual whom law enforcement subsequently identified as Allan Ferdock. Law enforcement arrested Ferdock on May 24 after witnessing Ferdock purchase a kilogram of cocaine which he intended to re-sell to Cain. Law enforcement seized the cocaine.
Following Ferdock’s arrest, law enforcement intercepted many calls in which Rexrode and Cain, who did not believe that law enforcement had seized the cocaine, discuss confronting Ferdock about the cocaine that Ferdock had agreed to deliver. The conspirators devised a plan to have Cain take Rexrode’s brother to Ferdock’s residence to confront Ferdock.
On May 26, 2013, law enforcement intercepted a call in which Cain informed Rexrode that he had just left Rexrode’s brother at Ferdock’s home. In the early morning hours of the next day, law enforcement arrested Rexrode’s brother on Ferdock’s property. At the time of his arrest, Rexrode’s brother was wearing latex gloves and carrying a mallet, a knife and a roll of duct tape.
Daryell Rexrode conspired to distribute more than five kilograms of cocaine.
Paul Rodney Cain, age 48, and Allan Clay Ferdock, age 56, both of Pasadena, previously pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on May 8 and April 3, 2014, respectively.
United States Attorney Rod J. Rosenstein commended the DEA, Anne Arundel Police Department and Anne Arundel County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Peter J. Martinez and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Bank Teller Sentenced to over 5 Years in Prison in Fraud SchemeRead the Press Release
Used Her Position as a Bank Teller to Pass On Seven Bank Account Holders’ Information to Conspirators Who Used the Information to Steal Money
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jayad Zainab Ester Conteh, age 24, of Glenarden, Maryland, today to 64 months in prison followed by three years of supervised release for conspiring to commit bank fraud, bank fraud, aggravated identity theft and unauthorized access to a computer to obtain banking information. Judge Russell also entered an order that Conteh pay $36,400 in restitution to the victim bank and forfeit $36,400.
The sentence 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; Special Agent in Charge Kathy A. Michalko of the United States Secret Service B Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to evidence presented at the four day trial, in 2012 Conteh, a bank teller, looked up bank account holder information on the computer system without authorization. Conteh disclosed that information to her co-conspirators who ordered checks on account holders’ accounts and cashed checks totaling over $30,000 on the account of one account holder. At least seven bank account holders’ accounts were improperly accessed. The Court determined that as a result of the scheme, Conteh is responsible for over $120,000 in intended losses.
Co-defendant Paul Anthony Wilson, a/k/a Anthony Johnson, age 53, of Washington, D.C., was arrested while attempting to cash a check on the account of one of the victims. Wilson previously pleaded guilty to his role in the conspiracy and was sentenced to 39 months in prison.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P. Windom, who prosecuted the case.
Jamaican Drug Dealer Sentenced to 14 Years in PrisonRead the Press Release
Also Laundered More Than $300,000 in Drug Proceeds
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jerome Adolfo Castle, a/k/a Dontwon Burris, age 35, a Jamaican citizen residing in Pikesville, Maryland, to 14 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute cocaine and marijuana; conspiracy to launder money; and illegally re-entering the United States after having previously been deported. Judge Russell also ordered that Castle forfeit $57,997 in cash, his interest in seven Baltimore properties, jewelry valued at more than $411,000, 98 pairs of men’s shoes, two laptop computers and an I-Pad, seven firearms and ammunition, as well as six vehicles, including a 2009 Jaguar XF Premium.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI)..
According to Castle’s plea agreement, from March 2013 through April 22, 2013, Jerome Castle conspired with Josef Byrd, Harold Byrd and others to distribute cocaine and marijuana. As a result of extensive surveillance and other investigative actions, law enforcement obtained federal search warrants for the residences of Harold and Josef Byrd; a commercial building at 5819 Moravia Road, Baltimore, MD; and for Castle’s residence on Archimedes Court in Pikesville.
On April 22, 2013, investigators arrested Josef Byrd and Harold Byrd as they took delivery of a shipment of approximately 500 pounds of marijuana at the commercial premises at 5819 Moravia Road. Jerome Castle was conducting counter-surveillance during the marijuana delivery and fled from police in a Ford pick-up truck. Castle took the police on a high-speed chase at speeds exceeding 100 miles per hour, and was arrested only after he crashed his vehicle into other vehicles parked in a used car lot in Harford County.
In search warrants executed later that day, law enforcement recovered over five kilograms of cocaine from each of the Byrd brothers’ homes, with a street value of approximately $150,000. Law enforcement also recovered three handguns, one AK-47 (semi-automatic), and four sets of body armor from Harold Byrd’s residence. Seventy-three black plastic containers used to conceal large quantities of marijuana during shipment from Arizona to Maryland were also recovered from Harold’s home. At Castle’s home, investigators recovered almost $58,000 in cash; jewelry appraised at over $411,000; a money counter; a scale used to measure quantities of drugs; over 200 grams of marijuana; and seven handguns. The substances recovered during these searches were field-tested and the results were positive for the presence of cocaine and marijuana.
In addition to his drug activities, Jerome Castle conspired to conduct monetary transactions of more than $10,000 using the proceeds from the sale of cocaine and marijuana. These monetary transactions were primarily bank account deposits made by Castle under the name of Dontwon Burris. Between 2010 and April of 2013, Castle deposited approximately $300,000 in cash to bank accounts in the name of Dontwon Burris.
Brothers Harold Alexander Byrd, age 26, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 34, of Owings Mills, Maryland, previously pleaded guilty to their roles in the conspiracy and were each sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation and HSI-Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted the case.
Baltimore Heroin Trafficker Exiled to 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Christopher Thornton, age 26, of Baltimore, today to 11 years in prison, followed by four years of supervised release, for conspiracy to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, from July to December 2012, Thornton distributed heroin in Baltimore City; regularly collected cash drug proceeds from other members of the conspiracy; and communicated with the leaders of the conspiracy about the conspiracy’s operations. Federal agents used wire intercepts of cellular telephones of Thornton’s associates to record Thornton discussing his drug activities with other members of the conspiracy.
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 Michael C. Hanlon and Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two More Correctional Officers Plead Guilty in Baltimore Jail Racketeering ConspiracyRead the Press Release
Smuggled Drugs into Baltimore Correctional Facility and One of the Officers Had Sex With BGF Inmates; 11 Correctional Officers Have Pleaded Guilty to Date
Baltimore, Maryland – Correctional officer Ebonee Braswell, age 27, of Baltimore, pleaded guilty today to participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Another correctional officer, Danielle Forrest, age 27 pleaded guilty on February 25th to the conspiracy.
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; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
Braswell, a correctional officer at BCDC, admitted that in 2012 and 2013, she helped smuggle contraband, including drugs such as Percocet, into BCDC for further distribution by BGF members. Forrest, a correctional officer at BCDC, admitted that she worked with a BGF leader in 2012 to smuggle contraband, including marijuana, Percocet and tobacco into BCDC. She was familiar with the drug activities of other correctional officers, including Braswell. At the direction of BGF, Forrest met outside suppliers to obtain the contraband, and managed payments for drugs using her Green Dot account. Forrest had sexual relations inside BCDC with two BGF inmates.
The defendants face a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for Braswell on June 27, 2014, and for Forrest on June 16, 2014.
Eleven 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, Kenneth Parham, age 24, a BGF member, 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 and Loney was sentenced on January 14, 2014 to nine years in prison. Tavon White and Jermaine McFadden 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.Conspirators Plead Guilty to Scheme Using Medical Patients’ Identities to Fraudulently Obtain MerchandiseRead the Press Release
Stole Personal Identifying Information of over 100 Individual Victims
to Obtain Over $993,000 of MerchandiseBaltimore, Maryland – Denise W. Wearing, age 37, of Philadelphia, Pennsylvania, pleaded guilty today to conspiracy to commit bank fraud and aggravated identity theft in connection with a scheme to obtain merchandise using stolen personal identifying information of medical patients. Michelle Jernell Cole, age 27, of Baltimore, pleaded guilty to the same offenses on February 20, 2014.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to their plea agreements, Michelle Cole’s sister, Chanell Cole, met Wearing between 2004 and 2005 while both were serving fraud-related sentences in the Maryland Department of Corrections. Chanell introduced Michelle to Wearing.
From 2008 through approximately May 2010, Chanell Cole worked for a rheumatologist who had an office at Good Samaritan Hospital in Baltimore. Using her access to the physician’s patient files, Cole unlawfully obtained the personal identifying information (PII) of numerous patients, including names, addresses and social security numbers, which she provided to Wearing.
From 2010 through February 2012, Michelle Cole worked at a medical practice in Laurel, Maryland. From February 2012 through February 2013, she worked for a rheumatologist who had an office in Glen Burnie, Maryland. Michelle Cole fraudulently obtained the PII of numerous patients at these medical facilities which she provided to Wearing.
From 2010 to February 2013, the conspirators used the stolen PII to fraudulently open credit accounts and assume control of existing credit accounts at Macy’s, Bloomingdale’s and Nordstrom. The conspirators used the accounts to purchase merchandise in the names of the unknowing victims without intending to pay for the goods. The conspirators kept the goods; sold the goods to others in exchange for cash; or returned the goods to the retail stores for merchandise credit and for credit on the accounts of the conspirators. Over the course of the scheme, the identities of over 100 individual victims were used to obtain over $993,000 of merchandise.
Wearing and Michelle Cole face a maximum penalty of 30 years in prison for the bank fraud conspiracy and a mandatory minimum of two years in prison consecutive to any sentence for the conspiracy. Wearing and Cole have agreed to pay restitution of at least $993,772.43. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Wearing on June 18, 2014, and for Cole on June 16, 2014.
Chanell Y. Cole, age 30, of Owings Mills, Maryland, and Yolanda Gail Welch, age 39, of Philadelphia, Pennsylvania, pleaded guilty on January 3, 2014 to the conspiracy. Judge Hollander has scheduled sentencing for Chanell Cole on April 4 and for Welch on April 25, 2014. Linda Nguyen, age 28, of Philadelphia, pleaded guilty to her role in the conspiracy on January 24, 2014 and her sentencing is scheduled for May 9, 2014.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation and thanked Macy’s fraud investigators for their assistance. Mr. Rosenstein praised Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.
Ocean City Man Sentenced for Immigration FraudRead the Press Release
Received a Total of $210,000 to Assist Approximately 70 Individuals in
Fraudulently Applying for AsylumBaltimore, Maryland – U.S. District Judge James K. Bredar sentenced Gasim Manafov, age 36, of Ocean City, Maryland, and Charlotte, North Carolina today to 18 months in prison followed by a year of supervised release for conspiring to commit immigration fraud.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.“Benefit fraud poses a severe threat to national security and public safety because it creates a vulnerability that may enable terrorists, criminals, and illegal aliens to gain entry to and remain in the United States under a guise of legitimacy,” said HSI Ocean City Resident Agent in Charge Francis J. McGarvey. “HSI will work with our partners at U.S. Citizenship and Immigration Services and the U.S. Attorney’s Office in an effort to maintain the integrity of the immigration system by vigorously investigating and prosecuting individuals like Gasim Manafov, who try to exploit the asylum process.”
According to his plea agreement, from 2007 to 2012, Manafov conspired with others in assisting approximately 70 individuals in fraudulently applying for asylum benefits. Manafov gave the individuals fake stories to describe how the applicant’s family was purportedly hurt or killed due to political or ethnic affiliation. He provided fake foreign documents to prove these stories. Manafov prepared the applicants for interviews with officials, and attended the interviews. He also referred an applicant to a co-conspirator knowing that they would engage in a fraudulent marriage for immigration purposes, suggested that the applicant apply for immigration benefits in the Miami U.S. Citizenship and Immigration Services (USCIS) office to avoid the scrutiny he knew he was under in the Baltimore USCIS office, and coached the applicant on how to lie to officials interviewing her.Manafov obtained $210,000 from the individuals fraudulently applying for asylum benefits.
Two other conspirators previously pleaded guilty to their roles in the conspiracy and were sentenced to one and three months in prison, respectively.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case.
Final Defendant in Scheme to Distribute Untaxed Cigarettes Exiled to 15 Years in Prison on Gun and Drug ChargesRead the Press Release
Conspired with Former Prince George’s County Police Officer to Distribute Drugs
and Untaxed CigarettesGreenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Mirza Kunjundzic, age 33, of Woodbridge, Virginia, to 15 year in prison, followed by five years of supervised release, after Kunjundzic pleaded guilty late yesterday to conspiracy to distribute and possess with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime. Kunjundzic, who was scheduled to go to trial on March 4, 2014, was the last of nine defendants to plead guilty to charges related to a scheme involving the transport and distribution of untaxed cigarettes.
The guilty plea and 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 Kunjundzic’s plea agreement, between July 2009 to January 2010, Kunjundzic and former Prince George’s County Police officer Sinisa Simic transported and distributed untaxed cigarettes in Maryland, Virginia and elsewhere. As part of the conspiracy, Simic used his official authority as a Prince George’s County police officer to ensure the safe transport and distribution of the untaxed cigarettes in exchange for cash payments from a source and an undercover agent working with the FBI . During November 2009, law enforcement intercepted conversations on Simic’s cellular phone which indicated that Simic and Kunjundzic both wanted Kunjundzic to be armed while they were protecting the contraband cigarettes during transportation and distribution. Simic subsequently obtained a 50 caliber handgun for Kunjundzic, which was recovered at Simic’s residence at the time of his arrest, along with a 9mm handgun. On December 2, 2009, Simic and Kunjundzic transported 80 cases of contraband cigarettes to New Jersey in exchange for $3,400 paid by the undercover agent.
Kunjundzic and Simic also distributed cocaine to the undercover agent and source. For example, on October 7, 2009, Kunjundzic and Simic delivered 114.5 grams of cocaine to the undercover agent, who paid them$6,520 for the cocaine and to transport and protect a delivery of contraband cigarettes. A portion of the cocaine was secreted in the shipment of contraband cigarettes. On October 22, 2009, Kunjundzic and Simic delivered 244.3 grams of crack cocaine to the undercover agent and on and November 12, 2009, they delivered 268.2 grams of crack cocaine, for which they were paid $13,800 and $4,000, respectively, for the crack cocaine and to transport contraband cigarettes. Simic was armed during each of the transactions.
Simic and Kunjundzic continued to deliver contraband and be paid for the protection of those deliveries until January 26, 2010. In total, they provided protection for eight shipments of contraband between September 9, 2009 and January 26, 2010. They were paid a total of $52,120, including the payments for the cost of the cocaine purchased by the undercover agent.
Former Prince George’s County Police officer Sinisa Simic, age 29, of Woodbridge, Virginia, previously pleaded guilty to his role in the conspiracy and is awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI and IRS-Criminal Investigation for their work in these investigations. Mr. Rosenstein thanked Assistant United States Attorneys James A. Crowell IV, and A. David Copperthite, who prosecuted the case.
Mr. Rosenstein, Mr. Vogt and Mr. Kelly expressed their appreciation to Prince George's County Chief Mark A. Magaw for the assistance that he and his department provided.
Final Conspirator Pleads Guilty in Fraudulent Tax Refund SchemeRead the Press Release
Prepared Fraudulent Tax Returns Claiming False Wages and Tax Credits
for Persons Who Had Little or No IncomeBaltimore, Maryland – Sheila Anderson-Cloude, age 34, of Notthingham, Maryland, pleaded guilty today to a conspiracy to defraud the government arising from the filing of fraudulent tax refunds.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington, D.C. Regional Office.
According to her plea agreement, from February 2010 through April 2013, Anderson-Cloude conspired with Tonia Lawson and her daughters Kiara Skipwith and Jasmine Thomas to prepare fraudulent tax returns. The defendants recruited individuals who did not owe taxes because they had little or no earned income, and convinced these individuals that they could obtain a substantial refund and therefore should file a federal individual income tax return. Generally, Lawson, Skipwith and Thomas recruited prospects for the scheme, using a variety of methods, including paying referral fees to those who brought recruits to them.
Lawson, Skipwith and Thomas provided the recruits’ personal information to Anderson-Cloude, who would prepare the fraudulent return. The recruits did not provide any income information. False wages and educational expenses were used to falsely claim tax credits. Anderson-Cloude, Lawson, Skipwith and Thomas misled the recruits by telling them that the refunds they had received were smaller than the refund amounts Anderson-Cloude had actually listed on the fraudulent returns. The “profit” for Anderson-Cloude and her co-conspirators was the difference between the refund claimed on each tax return and the smaller amount actually paid to the recruit.
For tax years 2009 through 2012, Anderson-Cloude was involved in the preparation of at least 90 fraudulent tax returns based upon the recruits referred by Lawson, Skipwith, Thomas and others. These fraudulent returns generated illicit refunds totaling $546,785. In 2011 alone, Anderson-Cloude received at least $104,961 in profits from her role in the conspiracy.
Anderson-Cloude faces a maximum sentence of 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense, whichever is greater. U.S. District Judge Richard D. Bennett scheduled sentencing for Anderson-Cloude on May 27, 2014, at 3:00 p.m.
Tonia Patrice Lawson, age 43, of Middle River, Maryland; Jasmine L. Thomas, age 26, of Baltimore; and Kiara A. Skipwith, age 24, of Parkville, Maryland, previously pleaded guilty to their roles in the scheme are scheduled to be sentenced on March 27, 2014, May 20, 2014 and May 28, 2014, respectively.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised IRS - Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I. Sharfstein, who are prosecuting the case.
Baltimore Armed Career Criminal Exiled to 15 Years in Prison for Illegal Possession of A GunRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Daniel Taylor, age 45, of Baltimore, Maryland, today to 15 years in prison, followed by five years of supervised release, for being a felon in possession of a firearm. Judge Quarles found that Taylor was an armed career criminal based on three previous convictions for first degree assault, unlawful manufacturing of drugs and possession with intent to distribute drugs.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido 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 Taylor’s plea agreement, on May 30, 2012, Baltimore Police detectives stopped a car in the area of the 2200 block of East Biddle Street in Baltimore to determine if the car’s dark tinted windows were illegal. The passenger, Daniel Taylor, became visibly nervous. One of the detectives searched Taylor and recovered a loaded 9mm luger semi-automatic pistol from Taylor’s waistband. Due to his previous convictions Taylor was prohibited from possessing a firearm or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Scott A. Lemmon and John F. Purcell, Jr., who prosecuted the case.
Mother and Daughter Sentenced for Passing Counterfeit BillsRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Brenda Moody, age 47, and her daughter, Cierra Jackson, age 28, both formerly of Baltimore, today to 27 months and 18 months in prison, respectively, each followed by three years of supervised release. Judge Hollander also entered an order that Moody pay $347,700 in restitution and Jackson pay $140,600 in restitution.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County Sheriff Jay Fisher.
According to their plea agreements and court documents, Moody moved from Baltimore to the Miami area around 2007 or early 2008. Starting in at least May 2008, Moody obtained hundred dollar counterfeit bills from the leader of the scheme in Miami and distributed the counterfeit bills in Maryland. Moody recruited others, including her daughter, to pass counterfeit bills in Maryland. The conspirators converted the counterfeit currency to genuine currency by going to stores, buying $10 to $20 of products with a counterfeit $100 bill and receiving $80 to $90 in change. The conspirators would give $40 to $60 back to Moody for each counterfeit $100 bill they passed.
From May 2008 to late 2011, Moody passed and recruited others to pass hundreds of thousands of dollars in counterfeit bills, resulting in a loss of $347,700. From June 2008 to July 2010, Jackson passed counterfeit bills, resulting in a loss of $140,600.
The leader of the scheme, Alexis Palmer, who ran this conspiracy out of Miami, was sentenced in the Southern District of Florida federal court on January 9, 2014 to 10 years in prison. His four co-defendants, including two top lieutenants, were sentenced to between 51 and two months in prison.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service, Baltimore County Police Department and Baltimore County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked the U.S. Attorney’s Office for the Southern District of Florida for their assistance in the investigation and Assistant United States Attorney Justin S. Herring, who prosecuted the case.