District of Maryland

Calls on All Marylanders to “Thank a Police Officer for Serving with Valor and Integrity”

Baltimore, Maryland – In connection with National Police Week – the week that includes Peace Officers Memorial Day on May 15 – the United States Attorney’s Office today encouraged all Marylanders to take a moment to remember officers who have been killed or wounded in the line of duty and to express their appreciation to the men and women who work every day to protect public safety.

“Police agencies get plenty of attention when things go wrong, but we too rarely take the opportunity to thank law enforcement officers who are on duty every morning, afternoon and evening, every day of the year,” said U.S. Attorney Rod J. Rosenstein. “We are very grateful for the service of the many outstanding officers in our local, state and federal law enforcement agencies who are working together to reduce crime in Maryland. This week, every citizen should take the opportunity to thank a police officer for serving with valor and integrity.”

Additional information about National Police Week is available at http://www.nleomf.org/programs/policeweek/. For details about officers who died in the line of duty in Maryland, visit http://www.odmp.org/search/browse/maryland.

Three Defendants Convicted for Changing Test Scores to Qualify Students for Federal Grants

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jacqualyn Sue Caldwell, age 55, of Baltimore, today to a year and a day in prison, followed by three years of supervised release, for conspiring to defraud a student financial aid program.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Steven Anderson, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General Mid-Atlantic Regional Office.

“Students without high school diplomas who applied for financial aid to attend trade schools were required to pass the Ability to Benefit test and demonstrate their aptitude to complete the educational program and work in the field,” said U.S. Attorney Rod J. Rosenstein. “By cheating, the defendants defeated the purpose of the tests and defrauded the government.”

Caldwell was a test administrator for a company that offered cognitive tests to schools and businesses. During her employment, Caldwell worked almost exclusively as a test proctor for student admissions at the All-State Career School, a for-profit trade school located on Broening Highway in Baltimore.

Students who applied for federal financial aid at All-State were required to have a high school diploma, possess a GED, or pass a designated Ability to Benefit (ATB) test. Caldwell was certified to administer the ATB test onsite at All-State’s campus. Her duties did not include scoring the tests; rather, she was to collect the students’ answer sheets, seal them in an envelope and mail them to her company’s headquarters in Illinois, where they were scored and the results sent back to All-State. The ATB test used a Scan Tron answer sheet that required students to use pencils to fill in circles next to the correct answers. Student applicants who initially failed the ATB test could take it again.

According to Caldwell’s plea agreement, soon after starting her job as a test proctor at All-State in 2008, an All-State admissions representative asked Caldwell for an applicant’s answer sheet so that the representative could change some of the applicant’s answers to allow the applicant to pass the test. Caldwell agreed. Caldwell allowed the representative access to the answer sheet by not sealing the envelope containing the applicants’ answer sheets and leaving the envelope on the receptionist’s desk. After the admissions representative corrected the applicant’s wrong answers, the representative put the answer sheet back into the envelope, sealed it and left it to be mailed. Thereafter, this process was repeated by the representative for other applicants. Caldwell also agreed to employ the same process for a second representative.

Subsequently, a second representative suggested, and Caldwell agreed, that Caldwell erase and change just enough incorrect answers to provide a passing grade for student applicants taking the test for a second time. The representative provided Caldwell with a completed Scan Tron answer sheet and told Caldwell which student applicants were taking the test for a second time, so that Caldwell could correct their answer sheets.

Although the first two representatives agreed not to tell anyone that Caldwell was changing test scores for their student applicants, a third admissions representative asked Caldwell to change scores on answer sheets, which Caldwell agreed to do. Thereafter, Caldwell was continuously approached in the hallways by the three admissions representatives about “helping” a student pass the ATB test on the second try, and Caldwell agreed to do it every time.

According to Moore’s plea agreement, Moore learned through another admissions representative that Caldwell could ensure that students who failed the ATB the first time would pass it the second time. Between January and December 2011, Caldwell agreed to Moore’s requests to help prospective students pass the test the second time.

During her tenure at All-State from 2008 to December 2011, Caldwell changed the answer sheets for approximately 170 students. Approximately 102 of them went on to enroll at All-State and became eligible to receive federal financial aid in the form of Pell Grants and student loans. Approximately 72 of those students received financial aid totaling approximately $572,255.

All-State admissions representatives Jesse Raymond Moore, Sr., age 30, of Crofton, Maryland and Barry Sugarman, age 63, of Owings Mills, each pleaded guilty to the conspiracy. Moore and Sugarman were paid a salary by All-State and were eligible for performance-based raises and commissions for each student that graduated. Moore and Sugarman admitted that they asked Caldwell to manipulate the test results to give applicants taking the test a second time a passing score, which she did. Sugarman also told prospective students to understate their income from previous years when they applied for federal aid in order to qualify for the maximum amount of Pell grants and student loans. Moore was sentenced to four years probation and ordered to pay a $2,000 fine. Sugarman was sentenced to two years probation and ordered to pay a $5,000 fine.

United States Attorney Rod J. Rosenstein praised the FBI and Department of Education, Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Martin Clarke, who is prosecuting the cases.

Baltimore, Maryland – Todd Wheeler, age 28, of Glen Burnie, Maryland, pleaded guilty today to being a prohibited person, specifically an unlawful user and a person addicted to drugs, in possession of firearms, including improvised explosive devices.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; and Fire Chief Michael E. Cox, Jr. of the Anne Arundel County Fire Department.

According to Wheeler's plea agreement, on January 1, 2014, Wheeler was treated at the hospital for injuries the he told hospital officials he sustained from an explosion when he was attempting to make fireworks. Wheeler attempted to flee the Emergency Room but was apprehended by police who were called to the scene. Police were directed to the home of Wheeler’s grandmother in Millersville, Maryland. She confirmed that Wheeler often stayed there and gave police permission to search the home and an outbuilding located on her property. Officers recovered chemicals used to manufacture high explosives, as well as other explosive materials. Investigators learned that Wheeler received packages at that address and stored the materials in the outbuilding.

The next day, ATF agents interviewed Wheeler, who remained in custody at the hospital. Wheeler advised agents that he was injured when he mixed chemicals and they exploded. He also told the agents that he had previously made explosive devices and detonated them in his yard. A search warrant was executed at Wheeler’s residence in Glen Burnie by Anne Arundel County Police. Over the next two days law enforcement recovered, among other things: several improvised explosive devices, as well as the chemicals and explosive materials used to make them; drugs and drug paraphernalia; a Walther pistol, flare gun and signal flare launcher, along with a conversion kit to allow the launcher to shoot 12 gauge shot gun shells; and 12 gauge shot gun shells.

Further investigation revealed that Wheeler had history of drug addiction dating back to at least 2006. At the time of this incident Wheeler was on probation for driving under the influence of a controlled substance and in a drug test conducted by his state probation officer shortly before the incident Wheeler tested positive for seven different controlled substances.

Wheeler faces a maximum penalty of 10 years in prison. U.S. District Judge William D. Quarles has scheduled sentencing for September 8, 2014 at 1:00 p.m. Wheeler remains detained.

United States Attorney Rod J. Rosenstein commended the ATF, FBI, Anne Arundel County Police Department and Anne Arundel County Fire Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Harvey E. Eisenberg, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Issa Wasco Koroma, age 62, of Springdale, Maryland to five years in prison followed by three years of supervised release for conspiring to steal prescription drugs from two federal military hospitals.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid Atlantic Field Office; and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations.

Koroma admitted that from January 2008 to July 11, 2013, he conspired with others to steal Norditropon, Humatrope, Somatotropin, Botox and other branded varieties of human growth hormone from pharmacies located at Fort Belvoir Community Hospital in Fort Belvoir, Virginia; Walter Reed National Military Medical Center (Walter Reed) in Bethesda, Maryland; and the former Walter Reed Medical Center (Old Walter Reed). They re-sold the stolen pharmaceuticals for profit.

Koroma was a pharmacy technician at Walter Reed. No later than the middle of 2011, Koroma began to steal brands of human growth hormones and Botox from the pharmacy at Walter Reed. From August 2011 to June 2013, Koroma and his co-conspirators stole over $1.3 million worth of pharmaceuticals from the pharmacy at Walter Reed.

Koroma and a co-conspirator also stole other prescription medications from the pharmacies at Fort Belvoir, Walter Reed and Old Walter Reed, which Koroma gave or sold to friends and acquaintances. These included Viagra, Cialis, Diovan, Humulin, Levitra and Lipitor.

On June 11, 2013, law enforcement officers executed a search warrant at Koroma’s residence and seized over 1,500 bottles and packages of prescription medications, including over 100,000 individual pills. A number of stolen prescriptions had been filled but not delivered to individual patients. Those thefts compromised the names, medical history and other personal identifying information of at least 10 patients treated at Walter Reed.

Koroma also stored stolen medications at a private storage unit he abandoned in 2009 or 2010. At the time that the storage unit was abandoned, it contained approximately 600 individual bottles and packages of prescription medication stolen from the pharmacies at Walter Reed and Old Walter Reed.

The total loss to the United States caused by Koroma and his co-conspirators was at least $4,467,000.

Two co-conspirators have been charged federally for their participation in the conspiracy. Their charges are pending.

United States Attorney Rod J. Rosenstein praised the DCIS and FDA-OCI for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Paul Nitze and Assistant United States Attorney Mara Zusman Greenberg, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Jeffrey Ellis, age 35, of Laurel, Maryland, today to 78 months in prison, followed by 15 years of supervised release, for transportation of child pornography. Judge Blake ordered that upon his release from prison, Ellis must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to Ellis’ plea agreement, on February 16, 2012, an FBI agent working in an undercover capacity signed onto a file sharing program through an Internet-connected computer and chatted with a user named “mdboi78,” later identified as Jeffrey Ellis. The user allowed the undercover agent to download several images of minors engaged in sexually explicit content from the “mdboi78” folder. On June 13, 2012, FBI agents executed a search warrant at Ellis’ residence and recovered three laptop computers, a digital camera, and at least three external hard drives.

At least 250 images, including videos, of child pornography were recovered from the seized items. Logs and chats involving Ellis were also recovered from one of the laptop computers and hard drive. The recovered chats included conversations in which Ellis stated that he was having sex with a 13-year old girl and that he had been having sex with her for approximately two years. Ellis also sent a photo of the girl to the person with whom he was chatting. The child was identified and interviewed by law enforcement. The girl advised that she did not have sex with Ellis and Ellis also denies having sex with the child, although he chatted about having sex with her online.

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

The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), which was created in 2010, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children and to combat child prostitution.

United States Attorney Rod J. Rosenstein commended the FBI and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.

Scrap Value of Stolen Containers is Alleged to be Over $2.2 Million

Baltimore, Maryland - A federal grand jury has indicted Aaron Keith Howard, age 52, of Brooklyn, Maryland, and Roland Michael Muir, age 57, of Glen Burnie, Maryland, on charges of conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service. The indictment was returned on May 6, 2014. Muir was arrested today. Howard was previously arrested, detained in federal custody and pleaded not guilty at his arraignment on May 9th.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Anne Arundel County Police Chief Kevin Davis.

"Theft of mail transport equipment is a serious crime," said Gary Barksdale, Inspector in Charge, U.S. Postal Inspection Service - Washington Division. "The Postal Service receives no tax dollars for operating expenses and cannot afford to replace valuable equipment to provide reliable customer service. Postal Inspectors are charged with protecting the U.S. Postal Service’s infrastructure and we will continue to aggressively pursue those who threaten the financial and operational health of America’s mail system."

The U.S. Postal Service used and stored mail transport equipment, including large aluminum carts known as over-the-road containers. Muir worked for a private mailer company located in Baltimore, driving a box truck.

According to the two count indictment and affidavit in support of the complaint, Howard and Muir drove in Muir’s employer’s box truck to U.S. Postal Service bulk mail centers in Capitol Heights where they stole the over-the-road containers and loaded them on the truck. Beginning in November 2013, Howard rented a 26 foot moving truck and drove it to the bulk mail centers in Capitol Heights where he stole the containers and loaded them onto the truck .

The indictment and affidavit allege that from April 2012 to April 2014, the defendants sold 1,765 containers containing 383,286 pounds of aluminum to metal recyclers in Maryland, including the Arundel Recycling Center in Anne Arundel County. They received $223,717 in cash. The defendants painted over U.S. Postal Service identifiers on the containers to avoid suspicion. The replacement value of the scrapped containers to the U.S. Postal Service is alleged to be over $2.2 million dollars.

The defendants face a maximum sentence of five years in prison for the conspiracy and 10 years in prison for the theft charge. An initial appearance has been scheduled for Muir at 4:15 p.m. today in U.S. District Court in Baltimore.

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

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division and Anne Arundel County Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow, who is prosecuting the case.

Last of 17 Defendants to be Sentenced in Broad Extortion Scheme that Arose from a Pay-to-Play Culture in Prince George’s County

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Prince George’s developer Daniel Ira Colton, age 64, a resident of Annapolis, Maryland and Raleigh, North Carolina, today to two years in prison followed by three years of supervised release for conspiracy to commit extortion and to make false statements to the Federal Election Commission. Judge Messitte also entered an order that Colton pay a $50,000 fine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to court documents, in early 2006, FBI and IRS-CI agents began investigating allegations of corruption, campaign finance violations, and tax fraud related to several real estate developers in Maryland and their relationships with Prince George’s County officials. The investigation uncovered a far-reaching corruption scheme centered around a “pay to play” culture in the county, orchestrated by then County Executive Jack Johnson and other public officials, in which real estate developers, including Colton, and business owners provided things of value to public officials and their surrogates in return for official acts.

Colton was a prominent developer in Prince George’s County. Colton and other co-conspirators, including developer Patrick Ricker and retired Prince George’s County Fire Department official Karl Granzow, had an ownership interest in Greenbelt Metropark, which sought to design, develop and build a mixed-use project near the Greenbelt Metro Station, called Greenbelt Station. Colton, Ricker and their co-conspirators also had an interest in Day Homes, which was incorporated to construct single family homes in Maryland, and was involved in several development projects in the county.

According to Colton’s guilty plea and court documents, from 1997 through at least September 11, 2008, Colton, Ricker, Granzow and other business persons offered money, trip expenses, meals, drinks, hotel rooms, airline tickets, rounds of golf, employment, mortgage payments, and monetary and in-kind campaign contributions to state and local government officials, including former Director of Prince George’s County Department of Housing and Community Development James Edward Johnson. During much of the conspiracy, from 2001 through 2004, Colton was serving a 38 month federal sentence arising from his convictions in federal court in Greenbelt for conspiracy and bank fraud, related to several development projects in Maryland and a loss to the victim bank of $15 million to $20 million.

In exchange for the bribes, state and local officials performed and agreed to perform favorable official actions for Colton, Ricker, Granzow and other developers, business owners and their companies, including obtaining approval letters for the Greenbelt Station Detailed Site Plan; assisting in the acquisition of surplus property and land from the county for development by Day Homes; providing the conspirators with non-public county information; obtaining necessary state and local approvals and permits for Greenbelt Station and other developments and businesses in the county; voting in favor of legislation favorable to their development projects; and, ensuring that a certain developer would obtain a contract to purchase certain buildings for the county.

State and local officials concealed items they received from Colton and his co-conspirators by failing to report them or by misrepresenting their nature and value. Further, Colton and his co-conspirators concealed campaign contributions to the state and local officials that were above state and federal legal limits by using conduits and in-kind contributions. Specifically, Colton and his co-conspirators recruited “straw donors,” including family members and employees, to make state and federal campaign contributions with funds provided by or reimbursed by Colton and his co-conspirators. Colton and his co-conspirators also provided in-kind contributions to conceal the actual amount of their campaign contributions, such as campaign signs, food, alcohol and the administrative services of their employees and family members.

During the scheme, Colton, Ricker, Granzow and others conspired to provide between $400,000 and $1 million in bribes to public officials in return for official action. Colton pleaded guilty under seal to the charges on September 13, 2010.

James Edward Johnson, age 69, of Temple Hills, Maryland, pleaded guilty to conspiring to commit extortion and was sentenced on April 16, 2012 to 37 months in prison. Judge Messitte also entered an order requiring James Johnson to pay a fine of $25,000 and to forfeit $46,300 that was seized from his safe deposit box.

Patrick Q. Ricker, age 55, of Bowie, Maryland, pleaded guilty on December 30, 2009 to conspiring to commit honest services fraud and to make false statements to the Federal Election Commission; and to tax evasion. His plea was also entered under seal and was unsealed on May 17, 2011. Judge Messitte sentenced Ricker on November 16, 2012 to one year and a day in prison, and also entered an order that Ricker pay restitution of $250,000.

Karl Granzow, age 49, of Upper Marlboro, Maryland, previously pleaded guilty to conspiring to commit extortion and cause false statements to be filed with the Federal Election Commission, and to income tax evasion. Judge Messitte sentenced Granzow on October 3, 2012 to 18 months in prison, and entered an order that Granzow pay a fine of $10,000 and forfeit his financial interest in Greenbelt Metropark.

A total of 17 defendants have been convicted in the related investigations of corruption in Prince George’s County, including Jack Johnson, then County Executive and former State’s Attorney; Leslie Johnson, an elected County Councilwoman and Jack Johnson’s wife; Mirza Hussain Baig, a physician and developer in the County; Amrik Singh Melhi, an owner of numerous businesses in the County; and, Ravinder Melhi, an owner of numerous businesses in the county. These individuals also pleaded guilty to extortion, bribery, state and federal campaign finance violations, and fraud, which all evolved from the pay-to-play culture in the county. They have been sentenced to up to 87 months in prison (Jack Johnson).

United States Attorney Rod J. Rosenstein praised the FBI and IRS-CI for their work in the investigation and thanked the Prince George’s County Police Department for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys James A. Crowell IV, A. David Copperthite and Sujit Raman, who prosecuted these cases.

Carjacking Victim Shot and Seriously Injured

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Samuel Damien Bynum, age 24, of Washington, D.C., today to 207 months in prison, followed by five years of supervised release, for conspiring to use a gun during carjackings, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; and Maryland Attorney General Douglas F. Gansler.

“Through coordinated efforts of local, state and federal law enforcement agencies, a gang of dangerous carjackers has been put out of business,” said U.S. Attorney Rod J. Rosenstein.

According to his plea agreement, beginning in January 2011, Bynum conspired with others to commit armed carjackings in Prince George’s and Montgomery Counties. On May 25, 2011, Bynum and co-conspirators drove to the Largo Metro Station in Largo, Maryland in a car they had stolen during a carjacking at the New Carrollton Metro Station a few days earlier. Bynum saw two people park their Camaro in the garage and followed them into the stairwell. Bynum told law enforcement that he blocked the stairwell so that his co-conspirators, who were armed with handguns, could rob the victims. Bynum or a conspirator hit one of the victims with a handgun, but they were unable to steal the victim’s car keys. Bynum and his conspirators fled, but returned a short time later to steal the Camaro after finding the keys to the car during their flight. Upon returning to the area, a co-conspirator gave Bynum one of the handguns and told Bynum to start shooting if the victims did anything. As one of the victims attempted to get into the car, Bynum and his conspirators shot several times at both victims. One of the victims was struck by a bullet and suffered permanent bodily injury requiring significant and ongoing medical attention.

Two alleged co-conspirators are being prosecuted federally and another was prosecuted in state court.

Bynum had previously purchased the handgun he used in the carjacking. Bynum had previously been convicted of a felony and was prohibited from possessing a gun and ammunition.

United States Attorney Rod J. Rosenstein commended the FBI, the Prince George’s and Montgomery Counties Police Departments and State’s Attorney’s Offices, and Maryland Attorney General’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.

Murdered a Drug Rival and Helped a Conspirator Murder a Rival Drug Gang Member

Baltimore, Maryland – Dontay Purnell, age 27, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise, related to his drug dealing and violence in the Cherry Hill section of Baltimore.

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

“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”

According to his plea agreement, from at least 2003 to 2013, Purnell was a member of a group known as “Little Spelman” in the “down the hill” area of Cherry Hill. This group committed robberies, homicides, non-fatal shootings and distributed crack cocaine, heroin, cocaine and marijuana. As a member of this group, it was foreseeable to Purnell that the Little Spelman group was responsible for distributing at least a kilogram of heroin, five kilograms or more of cocaine, 280 grams or more of cocaine base and a quantity of marijuana.

In addition to selling drugs, Purnell was recruited to shoot and kill a drug rival, Vincent Paige, in order to expand the group’s drug territory. On April 20, 2006, Purnell approached Paige on the 3400 block of Spelman Road in Cherry Hill and told him he could no longer sell drugs there. Paige said he would be back and Purnell saw him go to a stash location where Paige stored drugs and weapons. Purnell approached Paige and shot him three times, killing Paige.

On April 9, 2011, Little Spelman group member Davon Martin shot and killed Dwight Taylor at a barbershop on W. Saratoga Street in Baltimore. Dwight Taylor was a member of a rival drug group operating in Cherry Hill known as “Up Da Hill.” His murder was in retaliation for a previous murder of another Little Spelman group member. Purnell assisted Martin by serving as the lookout, standing on the corner of Park Avenue and Saratoga Street, while Martin murdered Taylor inside the barbershop. Purnell also helped Martin flee the scene and dispose of some of Martin’s clothes.

Purnell faces a maximum sentence of life in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for August 8, 2014, at 9:00 a.m.

Davon Martin, age 25, of Baltimore, Maryland pleaded guilty on April 24, 2014 to his participation in the racketeering conspiracy, including two murders. Martin and the government have agreed that if the Court accepts the plea agreement he will be sentenced to between 30 and 35 years in prison. Judge Russell has scheduled Martin’s sentencing for July 18, 2014 at 9:30 a.m.

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Brooke Carey, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jorden Barraco, age 34, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute methamphetamine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Carroll County Sheriff Kenneth Tregoning; Chief Jeffrey Spaulding of the Westminster Police Department; and Carroll County State’s Attorney Jerry Barnes.

According to Barraco’s plea agreement, from June through July 2013, Barraco participated in a conspiracy to distribute methamphetamine. On July 7, 2013, members of the Carroll County Drug Task Force tracked Barraco’s vehicle as Barraco traveled from a motel in Timonium, Maryland to Wilmington, Delaware, to obtain narcotics. Barraco spent less than 30 minutes in Wilmington before beginning his return to Maryland. On the way back, Barraco’s vehicle was stopped by the Maryland State Police. A canine alerted for the presence of drugs in the vehicle. During a subsequent search of the vehicle, law enforcement recovered four clear bags containing a total of 112.9 grams of methamphetamine

United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Carroll County Drug Task Force, comprised of the Maryland State Police, Carroll County Sheriff’s Office, Westminster Police Department and the Carroll County State’s Attorney’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Seema Mittal, who prosecuted the case.

Defendant Had Intercourse with Child and Took Pictures

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Anthony Palomino-Coronado, age 21, of Laurel, Maryland, today to 30 years in prison, followed by lifetime supervised release, for sexual abuse of a minor to produce child pornography. Judge Titus ordered that upon his release from prison, Coronado must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

“Child exploitation cases often turn your stomach, and this is one of them,” said U.S. Attorney Rod J. Rosenstein.

According to evidence presented at Coronado’s five day trial, on May 2, 2012, the Prince George’s County Police Department responded to a 911 call regarding a missing seven year old female child. During the subsequent search, at approximately 2:20 a.m., the child was found next to a privacy fence that separated the child’s residence from Coronado’s. At the base of the fence on Coronado’s side, officers found an empty condom wrapper. The child was not wearing any underwear and told officers that Coronado asked her to meet him at his house, then helped her get back into her yard when the police arrived.

Witnesses testified that during subsequent separate interviews with a sexual assault nurse, Prince George’s County Police detective and FBI child forensic interview specialist, the victim stated: that she had been to Coronado’s home, specifically his basement, 10 times; that Coronado had been engaging in sexual activity with her, including vaginal sex; and that Coronado had taken pictures of her, with and without her clothes on, with his black and red cellular telephone.

Trial evidence showed that a search warrant executed at Coronado’s residence recovered, among other things, a black and red cell phone, which contained a photo documenting Coronado’s sexual abuse of the child. A forensic examination established that the photo was taken on March 20, 2012, and had been deleted. In addition, six photos of the victim clothed, in the basement, and under the light of a flashlight were also found on the phone. Digital data established that these photos were taken on May 2, 2013, between 1:00 and 2:00 a.m. According to trial testimony, after his arrest the next day, Coronado denied engaging in sex activity with the victim, but admitted that during the night of May 2, 2012, the victim was at his home between 11:00 p.m. and 2:00 a.m., “playing games.”

During trial, on November 20, 2013, the victim testified that Coronado had engaged in sexually explicit conduct with her and identified herself and Coronado in the child pornography picture found on Coronado’s cell phone, as well as in the clothed pictures taken on May 2, 2012, in the basement of Coronado’s residence.

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

United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

Transported 50 Kilograms of Cocaine Worth $1.5 Million

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Sergio Nunez, age 41, of Madera, California, today to five years in prison, followed by five years of supervised release, for possession with intent to distribute cocaine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Howard County Police Chief William McMahon.

“This is drug interdiction at its best. Mr. Nunez was caught bringing into Maryland a significant amount of cocaine. The quick and effective cooperation between our domestic offices along with our state and local law enforcement partners put an end to Mr. Nunez’s courier business,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office.”

According to Nunez’s plea agreement, on May 22, 2013, Howard County Police stopped the vehicle Nunez was driving for speeding. Nunez provided his California driver’s license, but was not able to provide registration or proof of rental for the vehicle. A K-9 officer arrived shortly after and the dog alerted for the presence of drugs in the vehicle. A subsequent search of the vehicle recovered two duffel bags, each containing a large number of dark cellophane wrapped bricks. DEA agents secured the bags, which were determined to contain approximately 50 kilograms of cocaine with a street wholesale value of $1.5 million. Nunez admitted that he knew the bags contained cocaine and that he was to be compensated for transporting the drugs.

United States Attorney Rod J. Rosenstein praised the DEA and Howard County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Seema Mittal, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Chad Bennet Brown, age 34, of Glen Burnie, Maryland, on May 8, 2014, to 10 years in prison, followed by three years of supervised release, after pleading guilty to conspiracy to distribute and possess with the intent to distribute heroin and cocaine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Kevin Davis; Chief James W. Johnson of the Baltimore County Police Department; and Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police.

According to Brown’s plea agreement, from May 2013, through February 10, 2014, Chad Bennett Brown, conspired with others to acquire quantities of cocaine and heroin from sources of supply in Texas for distribution in Maryland. Arrangements for the acquisition of the drugs were made by Brown, while a co-conspirator drove from Maryland to Texas to secure the drugs, often carrying cash to pay for the drugs. On one occasion, the co-conspirator was en route from Maryland to Texas when he was stopped by police in Dickson County, Tennessee and approximately $132,000 was seized. This money was intended for delivery to a source of supply in Texas as payment for several kilograms of cocaine.

This pattern of activity, which involved Brown making arrangements with the sources of supply and the co-conspirator taking money to Texas or picking up drugs in Texas, was repeated on at least ten occasions. On February 10, 2014, the co-conspirator was arrested with 2.5 kilograms of heroin in Jefferson County, Texas, while en route back to Maryland.

Over the course of the conspiracy, Brown was responsible for the distribution of over one kilogram of heroin and five kilograms of cocaine. At the time of his arrest, Brown was on supervised release for a previous federal drug conviction.

United States Attorney Rod J. Rosenstein praised the DEA, Anne Arundel County and Baltimore County Police Departments and the Maryland Transportation Authority Police for their work in the investigation. U.S. Attorney Rosenstein also recognized the Dickson County, Tennessee Sheriff’s Office, Jefferson County, Texas Sheriff’s Office and the U.S. Attorney’s Office for the Eastern District of Texas for their assistance in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted the case.

Baltimore, Maryland – U.S. District Catherine C. Blake sentenced Trevor Cox, age 21, of Baltimore, today to 10 years in prison followed by five years of supervised release for possession of a firearm in furtherance of a drug-trafficking crime.

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

According to his plea agreement, on January 5, 2013, Baltimore Police officers responded to the 4000 Block of Park Heights Avenue, Baltimore, Maryland after receiving a tip that a man was carrying a handgun and displaying it to individuals in that area. Officers entered a grocery store located in the area and saw an individual matching the man’s description. The man, who was later identified as Cox, acted in a manner which led the officers to believe that Cox was armed.

The officers then quickly approached Cox to secure any possible weapons and recovered a loaded .38 caliber revolver. Further examination of the revolver showed several attempts to obliterate the serial number.

After his arrest, law enforcement overheard Cox indicate in jailhouse phone calls that he possessed the gun for his own protection while engaged in a conspiracy with others to distribute drugs.

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

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Keith McBride, age 25, of Washington, D.C., today to 42 months in prison followed by three years of supervised release for conspiring to commit bank robbery.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to his plea agreement, McBride, Devontae West and Stephanie Fletcher stole vehicles to use during bank robberies, designated a co-conspirator to act as a getaway driver, wrote demand notes to present to bank tellers, used juveniles to enter the banks to demand money, used cell phones to maintain constant contact during the bank robberies and divided the proceeds of the bank robberies amongst themselves.

More specifically, on four occasions from March 13 to May 22, 2013, McBride and others, including juveniles, drove to the following bank branches where he stole a total of $9,093: TD Bank, PNC Bank and Citibank in Washington, D.C.; and SunTrust Bank in Forestville, Maryland. Also, on May 13, 2013 McBride and his conspirators drove to Capitol One Bank in Suitland, Maryland to rob the bank, but left without having obtained any money.

Devontae West, age 26, of Washington, D.C., previously pleaded guilty to his participation in the conspiracy and to possession of child pornography. West and the government have agreed that if the Court accepts the plea agreement, West will be sentenced to 12 years in prison. Chief Judge Chasanow scheduled West’s sentencing for June 16, 2014.

Stephanie Fletcher, age 36, of Washington, D.C., has also pleaded guilty to her participation in the conspiracy and is scheduled to be sentenced on June 2, 2014.

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

United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas and Assistant U.S. Attorney Thomas Sullivan, who prosecuted the case.

New Employee Also Recognized at Courthouse Ceremony

Baltimore, Maryland - Thirteen employees of the United States Attorney’s Office and thirteen law enforcement officers were honored today with the Office’s most prestigious awards. At a ceremony held to announce the awards this morning at the U.S. Courthouse in Baltimore, the United States Attorney also welcomed a new Assistant U.S. Attorney and other employees who have joined the Office since last year.

Former United States Attorney, Maryland U.S. District Judge Catherine C. Blake served as the keynote speaker for the event. Judge Blake was an Assistant U.S. Attorney for ten years and served as U.S. Attorney from 1985 to 1986.

“These award recipients sought justice with exceptional skill and dedication,” commented U.S. Attorney Rod J. Rosenstein. “As the U.S. Attorney’s Office works with our partners in local, state and federal law enforcement to promote the rule of law, punish criminals, deter crime and protect government property, it is essential to maintain our commitment to excellence, integrity and achievement.”

Annual Awards

The following awards were announced for accomplishments over the past year:

Gary Jordan Award
Recipient: Roann Nichols

Gary P. Jordan served with distinction for many years as an Assistant U.S. Attorney, as First Assistant from March 29, 1987 until his death on October 25, 1996, and as interim U.S. Attorney in 1993. This is an honorary award presented annually to an Assistant U.S. Attorney for exemplary performance that demonstrates the highest traditions of the office: integrity, ingenuity, dedication to public service and fairness.

Barnet D. Skolnik Award
Recipients: Martin J. Clarke
Sandra Wilkinson

Barnet D. (Barney) Skolnik was an Assistant U.S. Attorney who led teams that prosecuted numerous white collar criminals and corrupt public officials in the 1970s, including Vice President Spiro T. Agnew. This is an honorary award presented annually to one or more Assistant U.S. Attorneys who demonstrate outstanding professionalism, determination and creativity in a case of unusual public significance.

Employee of the Year Award
Recipient: Elizabeth Gardner

The Employee of the Year Award recognizes sustained superior performance and outstanding achievements by a non-attorney employee. The award also recognizes the recipient's professionalism, dedication and comprehensive knowledge in their area of expertise.

Pete Twardowicz Award
Recipients: Michael Baier
Michael Corcoran
Karen Franks
Lynn Grant
Erika Jenson
David Lee
Sarah Lewis

The Pete Twardowicz Award was established in honor of Eugene P. (Pete) Twardowicz, who rendered many years of outstanding service to the U.S. Attorney’s Office as an IRS criminal investigator and a Special Investigator for this Office. This award recognizes law enforcement agents or officers for outstanding cooperation and achievement while working with the U.S. Attorney’s Office on a significant case.

Excellence in Civil Advocacy
Recipient: Thomas H. Barnard

The U.S. Attorney’s Award for Excellence in Civil Advocacy, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding advocacy in civil litigation.

Excellence in Prosecution of Fraud
Recipients: Kevin V. DiGregory
Kristi N. O’Malley

The U.S. Attorney’s Award for Excellence in Prosecution of Fraud, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting fraud.

Excellence in Prosecution of Violent Crime
Recipient: Paul E. Budlow
Mark W. Crooks

The U.S. Attorney’s Award for Excellence in Prosecution of Violent Crime, established in 2007, is presented annually an Assistant U.S. Attorney for outstanding work in prosecuting violent crime.

Excellence in Prosecution of Organized Crime
Recipient: Ayn B. Ducao
Robert R. Harding

The U.S. Attorney’s Award for Excellence in Prosecution of Organized Crime, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting organized criminal activity.

Excellence in Legal Support
Recipient: Gerry Zinser

The U.S. Attorney’s Award for Excellence in Legal Support, established in 2007, is presented annually to one or more non-attorney employees for outstanding work in support of the mission of the U.S. Attorney’s Office.

Outstanding Contributions to a Law Enforcement Initiative
Recipient: John Allen
Patrick Dugan
Bonnie S. Greenberg
Earl Jenkins
John Sheridan

The U.S. Attorney’s Award for Outstanding Contributions to a Law Enforcement Initiative, established in 2007, is presented annually to one or more employees for outstanding work in support of an initiative of the U.S. Attorney’s Office.

Carl S. Lackl Award
Recipient: Michael Baier
Michael Groth
Patrick Michaels

The Carl S. Lackl Award for Exemplary Perseverance and Fortitude in Pursuit of Justice was established in 2008 in honor of Carl Stanley Lackl, Jr. Mr. Lackl witnessed a murder in Baltimore in 2006 and agreed to testify against the suspect he identified. After the suspect was arrested by police and charged in state court with the murder, he used a contraband cellular telephone to contact co-conspirators and arranged to murder Mr. Lackl, who was shot to death outside his house in front of his daughter. All of the conspirators were convicted on federal charges.

New Employees

In addition, the U.S. Attorney welcomed new employees who joined the office last year. Assistant U.S. Attorney Zachary Myers and Special Assistant U.S. Attorneys: Frank Balsamello; Nathaniel Cohen; Anthony Enright; Piper McKeithen; James Pearce; and Jennifer Sykes. Non-Attorney Staff: Joanna Neubauer.

Helped Entice the Victim to Submit to Sexual Degradation and Abuse

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced David Andrew Pizer, age 46, of Silver Spring, Maryland today to 249 months in prison followed by supervised release for life, for conspiring to produce child pornography. Judge Grimm ordered that upon his release from prison, Pizer must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to his plea agreement, co-conspirator A used pictures of a nine year old girl to create profiles on online forums to advertise to others who expressed a sexual interest in children. Thereafter, and from March 16 to May 11, 2012, Pizer emailed and chatted online with conspirator A and the victim to encourage the victim to submit to sexual degradation and abuse that Pizer either watched through web-cam or that co-conspirator A would photograph and provide to Pizer and others. Pizer also introduced co-conspirator B to the victim and co-conspirator A, to help persuade the victim to continue to engage in sexual acts. Pizer and co-conspirator B repeatedly emailed images of minors dressed in sexually provocative outfits or engaged in sexual acts to co-conspirator A to help groom the victim to engage in sexual acts.

Further investigation revealed that Pizer’s laptop computer had 4,486 images and six videos that depicted children engaged in sexual acts with adults, children in sexually provocative poses or nude image of children. Approximately 605 of the images depicted the victim in lingerie, nude or engaged in sexual acts.

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

United States Attorney Rod J. Rosenstein commended the FBI and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Isiah Robinson, age 27, of Baltimore, to 10 years in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute heroin.

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

According to his plea agreement and court documents, from January to July 23, 2013, Robinson conspired with his father, Darryl Robinson Sr., and others to distribute heroin from an open-air drug “shop” in the Poplar Grove neighborhood of Baltimore. On a daily basis, the co-conspirators bought heroin, stored the drugs at stash houses throughout Baltimore City and packaged the drugs to sell on the streets. Isiah Robinson personally sold heroin to customers in Baltimore City while also supervising and directing other street-level dealers.

During the conspiracy, Isiah Robinson and others conspired to distribute and possess with the intent to distribute at least a kilogram of heroin.

Darryl Robinson, age 49, of Baltimore, a leader of the drug trafficking organization, previously pleaded guilty to his participation in the conspiracy and was sentenced to 15 years in prison.

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Scott Lemmon, who prosecuted the case.

Admitted to Possessing Two Guns, Including One With an Obliterated Serial Number

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Gerod Boyd, age 30, of Middle River, Maryland, today to 10 years in prison followed by three years of supervised release for possession with intent to distribute cocaine.

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

According to Boyd's plea agreement, on June 25, 2013, Baltimore City police officers were executing a search warrant at a home in the 5700 block of Eastbury Avenue in Baltimore. Boyd was arrested prior to the execution of the search warrant and had the key to the residence in his hand when he was taken into custody. Located inside the residence was a loaded .38 Special revolver, which Boyd admitted belonged to him. Boyd advised that a .357 revolver with an obliterated serial number, recovered during another search that day from his residence in Middle River was also his firearm.

Investigation revealed that Boyd ran a cocaine distribution network in the 600 block of North Kenwood Avenue in Baltimore, Maryland. Specifically, Boyd used the residence in the 5700 block of Eastbury Avenue and other locations, including a home in the 600 block of North Kenwood Avenue, to store items related to the drug distribution operation. On June 25, 2013, law enforcement officers also executed a search warrant at the home on North Kenwood Avenue and recovered four ounces of cocaine from inside that residence. Recovered near the cocaine was a black bag containing packaging material for street level distribution of drugs, a digital scale, and a razor blade.

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

Robbed Eight 7-Eleven Stores in 18 Days

Baltimore, Maryland – John Robinson, age 34, of Baltimore, pleaded guilty today to robbery and using a gun in furtherance of the robbery.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, from December 1 to 18, 2013, Robinson and a co-conspirator robbed eight 7-Eleven Stores, using a loaded revolver. The stores were located in Baltimore on Boston Street, Holabird Street, West 33rd Street, Belair Road, Reisterstown Road, Harford Road, Frederick Road and Pulaski Highway. In each of the robberies, Robinson wore a mask and pointed the gun at the store employee, demanding money. Robinson or his co-conspirator, who was also masked, would take other items as well, such as cigarettes and lottery scratch-off tickets. On some occasions, Robinson would order the store employee to lie on the floor.

Robinson and the government have agreed that if the Court accepts the plea agreement, Robinson will be sentenced to 20 years in prison. U.S. District Judge Catherine C. Blake scheduled his sentencing for August 1, 2014 at 9:30 a.m.

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

Baltimore, Maryland – A federal grand jury has indicted Laiton Blake Witkowski, age 41, of Stockton, Maryland, on charges of production, distribution and possession of child pornography. The indictment was returned on May 1, 2014. Witkowski is scheduled to have his initial appearance today at 1:00 p.m. in U.S. District Court in Baltimore.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Worcester County Sheriff Reggie T. Mason, Sr.; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Worcester County State’s Attorney Beau Oglesby.

The seven count indictment alleges that Witkowski produced images of two minor females engaged in sexually explicit conduct. These images appear to have been taken without the knowledge of the victims, including images of one victim who appears to be sleeping and images of the second victim as she is using the restroom. The indictment further alleges that Witkowski distributed and possessed other images of child pornography, including images of prepubescent children being sexually abused.

Witkowski faces a mandatory minimum of 15 years and a maximum of 30 years in prison for each of the two counts of production of child pornography; a minimum of five years and a maximum of 20 years in prison for distribution of child pornography; and a maximum of 20 years in prison for each of the four counts of possession of child pornography.

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

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

United States Attorney Rod J. Rosenstein commended HSI Ocean City, Worcester County Sheriff’s Office, Maryland State Police Internet Crimes Against Children Task Force (ICAC) and the Worcester County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok and Special Assistant U.S. Attorney Julie Podlesni, who are prosecuting the case.

Used Inside Information Provided By His Accomplice

Baltimore, Maryland –Darrius Roszario D. Washington, age 20, of Baltimore, Maryland, pleaded guilty today to an armed bank robbery in which Washington forced a teller at gunpoint to accompany him and open the bank vault.

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

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

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

Washington faces a maximum penalty of 25 years in prison for armed bank robbery. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 1, 2014, at 3:00 p.m.

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

Baltimore, Maryland - A federal grand jury has indicted Yogesh K. Patel, age 47, of Gaithersburg, Maryland, and Wesley Burnett, age 54, of Hermosa Beach, California, for conspiracy to commit wire fraud in connection with a scheme to fraudulently obtain more than $1.8 million in federal government contracts through the use of the Small Business Administration’s 8(a) program, designed to assist disadvantaged businesses.

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

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

Wesley Burnett owned Total Barrier Works (TBW), a professional services company specializing in the maintenance and installation of anti-terrorist systems and vehicle control equipment such as security barriers, bollards, gates, uninterrupted power systems (UPS) and all other perimeter security anti-terrorist equipment.

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

Patel and Burnett each face a maximum sentence of 30 years in prison and a $250,000 fine for conspiracy to commit wire fraud. No court appearance has been scheduled for the defendants.

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

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

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

Station Managers Allegedly Submitted Fraudulent and Inflated Invoices for Landscaping and Cleaning Services in Exchange for Bribe Payments

Baltimore, Maryland - A federal grand jury has indicted Richard Louis Wright III, age 46; Kimberly A. Parnell, age 43; Shane Anderson, age 37, all of Baltimore; and Ladena D. Sketers-Anderson, age 47, of Randallstown, Maryland, on charges related to a bribery conspiracy to obtain contracts with the U.S. Postal Service. The indictment was returned on April 30, 2014.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

“The indictment alleges that two post office station managers accepted bribes in return for contracts for landscaping, snow removal, and cleaning services,” said U.S. Attorney Rod J. Rosenstein. “Officials who exercise governmental authority are obligated to use it for the public good and not to advance their own financial interests.”

Beginning in January 2007, Wright was the United States Postal Service (USPS) Station Manager of the Waverly Station in Baltimore, and beginning in July 2010, Parnell was the USPS Station Manager of the Pikesville Station in Pikesville, Maryland. As part of their official duties as USPS Station Managers, Wright and Parnell had the authority to contract for landscaping, snow removal, and certain cleaning services at the Post Offices they managed, and to submit invoices for those services to USPS for payment. According to the indictment, Wright and Parnell knew one another professionally and personally and consulted with one another on the operations of their respective stations, including referring contractors to one another.

The 29-count indictment alleges that beginning in October 2007 and continuing until approximately October 2013, Wright and Parnell engaged in a scheme to commit bribery, wire fraud and mail fraud by creating, approving and submitting false and inflated invoices for maintenance work allegedly performed at their respective Post Offices by Anderson, Sketers and others, and then splitting the proceeds with the alleged providers of the services.

According to the indictment, in the Spring of 2013, when one of their co-conspirators failed to make timely bribe payments to Wright and Parnell, Parnell proposed that they replace the co-conspirator with Shane Anderson, who operated a landscaping company in Baltimore called Youthful Minds Lawn Care, and whom they believed would make bribe payments to them in exchange for USPS contracts. Thereafter, Parnell, Wright and Anderson agreed that Parnell and Wright would submit false and inflated invoices from Youthful Minds Lawn Care for landscaping services in exchange for a percentage of the proceeds paid to Youthful Minds by the USPS.

Ladena Delore Sketers-Anderson (aka Ladena Sketers) operated a cleaning company called Keep U Clean Janitorial Services, LLC in Randallstown, Maryland. Wright and Sketers had been business partners in a janitorial services company before Sketers went into business as Keep U Clean. Wright used Sketers’ company for cleaning services at the Waverly Station and recommended Keep U Clean to Parnell at the Pikesville Station. The indictment alleges that Wright submitted false and inflated invoices from Keep U Clean in exchange for Sketers paying him a percentage of the funds she received from the USPS. Later, Wright began submitting Keep U Clean invoices to the USPS for cleaning work done by employees at his direction at the Waverly Station, even though he had been directly instructed not to perform contract work at the station he managed. According to the indictment, Wright also proposed to Parnell that Keep U Clean employees under his direction perform cleaning services at the Pikesville Station in exchange for a bribe payment to Parnell and Parnell agreed to that arrangement.

Finally, the indictment seeks forfeiture of any proceeds obtained directly or indirectly, as the result of the scheme, including: $591,791 for Wright; $50,470 for Parnell; $30,455 for Anderson; and $109,976 for Sketers-Anderson.

The defendants face a maximum sentence of five years in prison for the conspiracy and 15 years in prison for each count of bribery. No court appearances have been scheduled for the defendants.

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

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

United States Attorney Rod J. Rosenstein praised the USPS – Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.

Indictment Seeks Forfeiture of Over $14 Million

Baltimore, Maryland - A federal grand jury has indicted Jeong Joon Moon, a/k/a Patrick Moon, age 46, of Germantown, Maryland, on charges arising from a scheme to defraud financial institutions who loaned money to small businesses. The indictment was returned on April 24, 2014, and unsealed today. Moon was arrested yesterday and his initial appearance is scheduled for 3:00 p.m. today in federal court in Baltimore.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; and Acting Inspector General Fred W. Gibson, Jr. of the Federal Deposit Insurance Corporation.

Moon owned and operated JM Capital Solutions, Inc. and RNB Consulting, Inc., which were loan brokerage firms with offices located in Annandale and Springfield, Virginia. These firms specialized in securing loans for individuals interested in purchasing or refinancing small businesses in Maryland, Virginia, the District of Columbia and elsewhere.

Moon encouraged prospective borrowers to apply for business loans through the SBA’s Section 7(a) program, which authorizes SBA to help small businesses obtain financing by guaranteeing 75 to 90 percent of qualified loans made by commercial lenders. Small business owners are required to invest a certain amount of their own money into the business before they can qualify for the loan. Moon compiled and submitted to lenders the documentation necessary to substantiate the borrowers’ equity injection and ability to repay loans guaranteed by SBA, as well as documentation needed for other commercial loans.

According to the 25 count indictment, from 2006 to April 2014, Moon and others defrauded financial institutions by submitting false copies of the borrowers’ monthly bank statements to reflect more money than was actually in the borrowers’ bank accounts. Moon and others also allegedly prepared and submitted false tax returns for the borrowers which inflated the borrowers’ income. The financial institutions relied on the false information to lend funds to the borrowers, which resulted in loan broker commissions being paid to JM Capital and RNB Consulting.

The indictment also alleges that on July 12 and 15, 2013, Moon altered, destroyed or concealed documents relating to six loans guaranteed by SBA for six small businesses, intending to impede the federal investigation of such loans.

The indictment seeks the forfeiture of $14,708,000, the amount of fraudulently obtained loans.

Moon faces a maximum sentence of 30 years in prison for conspiracy to commit bank fraud, and for each of the 18 counts of bank fraud; and 20 years in prison on each of six counts for destruction of records in a federal investigation

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

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

United States Attorney Rod J. Rosenstein praised the SBA - OIG, U.S. Postal Inspection Service, FBI and FDIC for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Marty Clarke, who are prosecuting the case.

Five Co-Conspirators Previously Pleaded Guilty

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 49, of Riva, Maryland, on April 25, 2014, to 51 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud in connection with a mortgage fraud scheme which resulted in losses of over $4.8 million. Judge Bredar also ordered Kreamer to pay restitution of $2,499,048 to the victims and to forfeit $4.8 million.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Brian Murphy of the United States Secret Service Baltimore Field Office; Special Agent in Charge Michael P. Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.

According to her plea agreement, in 2002, Kreamer’s Maryland license to issue title insurance policies was revoked after she was convicted of theft for fraudulently endorsing checks at a title attorney’s office where she worked. Despite her conviction, from 2007 until January 2010, Kreamer worked at Sanford Title Services LLC located in Columbia, Maryland, and had significant day-to-day responsibility for the operation of Sanford Title. From June 2008 to January 2010, Kreamer and co-conspirators Niesha Williams, Rhonda Scott, Emeka Udeze and Demetrius Peete arranged various aspects of real estate transactions so they could siphon profits out of the transaction for themselves. They used many fraudulent techniques to further the conspiracy, including: short sales in which the property was sold for a higher price than was represented to the lien holder and the seller; sales of properties not owned by the seller at the time of settlement; real estate transactions in which there were multiple sales of the same property at the same time; real estate transactions in which the buyer’s financial status was misrepresented to lenders; transactions in which the seller and/or buyer were shown different settlement statements and the conspirators used the difference between the figures in the two statements to enrich themselves.

In addition, Kreamer admitted that she personally facilitated deals between her co-conspirators, prepared false settlement statements, improperly disbursed funds contrary to the settlement and lender approved disbursements sheets, failed to pay off mortgage loans in accordance with the settlement documents, directed funds to entities created by herself and her co-conspirators, received proceeds of fraudulent transactions, and improperly issued title insurance policies.

Kreamer admitted that the scheme involved at least 30 victims, including lenders, sellers and buyers of real estate, a title insurance company and lien holders. She further agreed that her offense involved sophisticated means and her abuse of a position of trust at Sanford Title. The reasonably foreseeable loss associated with Kreamer’s conduct is at least $4.8 million.

Niesha Williams, age 34, of Fort Washington, Maryland; Rhonda Scott, age 52, of Oxon Hill, Maryland; Demetrius Peete, age 46, of Manassas, Virginia each previously pleaded guilty to their roles in the fraud and are scheduled to be sentenced on May 1, May 2, and May 7, respectively. Gregory Green, age 49, of Waldorf, Maryland, also pleaded guilty and was sentenced to three months in prison and ordered to pay restitution of $404,596. A fifth conspirator, Emeka Udeze, age 38, of Bowie, Maryland, also pleaded guilty and is awaiting sentencing.

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.

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

United States Attorney Rod J. Rosenstein praised the FBI, Department of Justice - OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Judson T. Mihok, who are prosecuting the case.

Greenbelt, Maryland –U.S. District Judge Paul W. Grimm sentenced Gregory Warrick, age 53, of Landover, Maryland, today to 14 years in prison followed by five years of supervised release for conspiring to distribute and possessing with intent to distribute five or more kilograms of cocaine powder. Judge Grimm enhanced Warrick’s sentence upon finding that he is a career offender based on two previous drug convictions.

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

According to his plea agreement, from May 2012 to March 2013, Warrick bought cocaine powder from a co-conspirator about two to three times a week. Warrick distributed the drugs to others. Beginning in November or December 2012, Warrick used an apartment located on Addison Road in Capital Heights to store and sell cocaine powder.

On March 22, 2013, Warrick bought cocaine powder. Later that afternoon, law enforcement executed a search warrant on Warrick’s vehicle while he was a gas station in Landover. They seized 6.22 grams of cocaine powder packaged in 22 baggies from Warrick. Shortly thereafter, law enforcement also executed a search warrant at the apartment Warrick used to sell drugs and seized 133 grams of cocaine powder packaged in 26 baggies, a scale and other drug paraphernalia.

Between five and 15 kilograms of cocaine powder was reasonably foreseeable within Warrick’s agreement to sell, and possess with intent to sell, cocaine powder.

United States Attorney Rod J. Rosenstein praised the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced David Jesse Hotton, age 35, of Delmar, Maryland today to five years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base and cocaine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and members of the Wicomico County Narcotics Task Force: Colonel Marcus L. Brown, Superintendent of the Maryland State Police, Wicomico County Sheriff Michael A. Lewis, Salisbury Police Chief Barbara, Chief Michael Phillips of the Fruitland Police Department Department and Wicomico County State’s Attorney Matthew Maciarello..

According to his plea agreement, Hotton conspired with Ranson Chandler, Tyson Hobson and Floyd Sykes to distribute and possess with intent to distribute large quantities of crack and powder cocaine. During their investigation, DEA and the Wicomico County Narcotics Task Force overheard Hotton on many occasions transacting drug deals on his cell phone. For example, in September 2012, Hotton was overheard saying that he just got a kilogram of cocaine and was going to cook up half or so of the powder into crack. Also that month, Hotton was overheard agreeing to sell two ounces of cocaine for $3,000.

Hotton admitted that it was foreseeable that he and his co-conspirators distributed more than 280 grams of crack cocaine and more than 500 grams of powder cocaine from June 2012 to November 28, 2012.

Maryland residents Ranson Chandler, Jr., age 37, of Salisbury; Tyson Gabriel Hobson, Sr., age 37, of Princess Anne; and Floyd Lee Sykes, age 35, of Quantico, previously pleaded guilty to their participation in the conspiracy. Judge Hollander sentenced Chandler to 123 months in prison and Sykes to 46 months in prison. Hobson awaits sentencing.

United States Attorney Rod J. Rosenstein praised the DEA and Wicomico County Narcotics Task Force comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department and the Wicomico County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – Rodney Hubert, a/k/a “Noah,” age 39, of Parkville, Maryland pleaded guilty today to sex trafficking of a minor.

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

According to his plea agreement, in January 2013, Hubert, a registered sex offender in Maryland, recruited girls, some of whom were underage, to engage in prostitution. He offered a finder’s fee to young prostitutes if they found additional girls to prostitute for them.

Hubert took explicit photos of girls which he posted on internet websites that hosted ads for prostitution. He provided a residence in Parkville to host “in-call” local prostitution. He also instructed the girls on how to use a phone application to communicate with prospective customers and avoid detection by law enforcement.

Hubert sought a 19-year-old associate to work for him as a prostitute beginning in December 2012. Hubert offered her a commission to recruit a 16-year-old Baltimore resident to perform prostitution for him. Hubert invited the 16 year old to reside with him. The 16 year old girl had sex with customers on at least five occasions in the Parkville house, and on at least seven occasions at other locations, as directed by Hubert.

Hubert offered to pay the 16 year old girl $400 dollars to take provocative photos of her wearing lingerie. She posed for the photos taken by Hubert, although Hubert never paid her the promised fee. He did, however, use these photos to post online prostitution ads. Hubert also offered to pay her $1,000 to make a pornographic film with him in which they would engage in sex.

As part of his plea agreement, Hubert must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

Hubert and the government have agreed that if the Court accepts the plea agreement, Hubert will be sentenced to between 168 and 262 months in prison followed by a lifetime of supervised release. U.S. District Judge George L. Russell III has scheduled sentencing for August 1, 2014 at 2:00 p.m.

The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.

MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Officefor their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who prosecuted the case.

Shootings and Murders Attributed to Rival Drug Gangs

Baltimore, Maryland – Davon Martin, age 25, of Baltimore, Maryland pleaded guilty yesterday to conspiracy to participate in a racketeering enterprise, related to his drug dealing and violence in the Cherry Hill section of Baltimore.

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

“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”

According to his plea agreement, from at least 2003 to 2013, Davon MARTIN was a member of a group known as “Little Spelman” in the “down the hill” area of Cherry Hill. This group committed acts of robbery, homicides, non-fatal shootings and drug distribution, to include crack cocaine, heroin, cocaine and marijuana. From 2009 to 2011, Martin, along with another member of Little Spelman, operated a crack cocaine distribution “shop” out of an apartment located on Round Road. Martin and others sold at least two kilograms of crack cocaine from the apartment on Round Road. On at least one occasion, while in possession of a firearm, Martin robbed an individual who had sold him some bad cocaine. Martin admitted he has also committed other robberies related to his drug distribution.

Martin admitted that on January 20, 2011, he shot and killed Rhidell Price, a member of a rival group operating in Cherry Hill known as “Up Da Hill,” in the rear of 2900 Denham Circle. After receiving a call that Price was in the area, Martin and an associate drove down to Denham Circle where Rhidell Price was getting out of a vehicle parked on the street. Martin got out of his vehicle and began shooting at Price, chasing after Price and ultimately killing him. Martin killed Price in retaliation for Martin and another Little Spelman member being shot at by Up Da Hill members a few days earlier.

Two days after Martin killed Price, on January 22, 2011, Little Spelman associate Harry Hicks was shot and killed by Up Da Hill members in retaliation for Price’s murder. On April 9, 2011, Martin shot and killed Up Da Hill member Dwight Taylor at a barbershop on W. Saratoga Street in Baltimore, in retaliation for Hicks’ murder. During the murder, Martin was wearing a black jacket and a black mask which he discarded in a nearby dumpster on Clay Street. Both the mask and jacket were recovered by police from the dumpster. The DNA recovered from both the face mask and the jacket matched Martin’s DNA. A ballistics comparison of the .45 caliber firearm that Martin used to kill Taylor revealed that it was the same gun used on January 28, 2011 by Dominic Hope, another Little Spelman associate, and the former leader of Little Spelman, to shoot Up Da Hill member Antione White, who was leaving the funeral of Rhidell Price. Dominic Hope was subsequently shot and killed on January 20, 2012.

Martin and the government have agreed that if the Court accepts the plea agreement he will be sentenced to between 30 and 35 years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for July 18, 2014 at 9:30 a.m.

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Brooke Carey, who are prosecuting the case.

More Than $20 Million Returned to Bona Fide Account Holders

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander ordered yesterday the forfeiture of $45,816,817.84, the remaining value of over $86.3 million in e-gold, Ltd. (EGL ) accounts seized by the government in 2011. In 2012, Judge Hollander ordered the forfeiture of over $10.8 million in the EGL accounts, bringing the total amount forfeited to over $56.6 million. Judge Hollander also ordered the return of $295,642 to bona fide account holders who were able to verify their ownership of the accounts. Judge Hollander had previously ordered the return of over $19,947,313.91 to identified account holders.

The forfeiture was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy Michalko of the United States Secret Service - Washington Field Office.

U.S. Attorney Rosenstein said, “Civil forfeiture allows the government to recover the proceeds of criminal activity, while assuring that the due process rights of any lawful owners are fully protected.”

EGL was in the business of exchanging traditional forms of currency for precious metals held in electronic form, known as e-metals or e-gold, and settling payer-initiated transfers of e-metals from one customer account to another. In 2008, EGL pled guilty in the District of Columbia to money laundering and operating an unlicensed money transmitting business. EGL sold precious metals in electronic form to provide customers with a means of transferring value from one customer account to another while maintaining anonymity, knowing that at least some of the funds were involved in criminal activities. Non-traditional money transmitting businesses such as EGL are frequently used by criminals to transfer money because they are not as closely regulated as banks and other traditional financial institutions. For that reason, they must be licensed by the state in which they operate and register with the Department of the Treasury.

In 2011, the government filed a civil forfeiture action in the District of Maryland against the value of the e-gold accounts, totaling more than $86.3 million, and sent notice of the right to contest the forfeiture to the registered account holders. Some of the account holders who received the notice responded that they were the victims of identity theft and had no connection to EGL.

As part of its plea agreement, EGL identified 12,869 customer e-metal accounts that contained funds derived from a variety of criminal offenses including child pornography, credit card fraud, identity theft, investment fraud and the sale of stolen or non-existent goods on the internet. In 2012, Judge Hollander ordered the forfeiture of more than $10.8 million, the value of those accounts. Judge Hollander also ordered that that $12,287 be returned to 22 claimants from those identified accounts, whose claims the government did not contest.

The government then sought the forfeiture of the remainder of the $86.3 million as property involved in EGL’s criminal offenses, but it agreed to exempt from forfeiture any money claimed by bona fide account holders. The money forfeited yesterday represents the balance of the funds involved in the criminal offenses that was not claimed by account holders, bringing the total forfeited to the government to over $56.6 million.

Digital currencies are generally marketed as offering global acceptance without the need for conversion between national currencies, and are valued at fluctuating rates tied to the price of a particular precious metal, especially gold. Digital currency is used for on-line commerce or for funds transfers between individuals for private purposes. In general, an EGL customer opened an e-gold account, and then could use the internet to transfer the value in the account to any other EGL customer anonymously and instantaneously anywhere in the world. The recipient could then redeem the e-gold for any national currency. Because of the ease with which customers could purchase and transfer e-gold anonymously, outside of the regulated traditional banking system, trading in e-gold became popular among persons looking for a way of laundering criminal proceeds. In particular, e-gold was widely accepted as a means of transacting credit card and identification fraud, high yield investment programs and other investment scams, and child exploitation, but was not widely accepted by large or mainstream vendors.

United States Attorney Rod J. Rosenstein praised the U.S. Secret Service Washington and Orlando Field Offices and the SCIRS-SS Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Stefan Cassella, who handled the civil forfeiture for the government.

Operated Puff & Stuff Stores at Three Locations in Cumberland and LaVale

Baltimore, Maryland – Charles and Traci Casey, the owners of Puff & Stuff stores in Cumberland and LaVale, Maryland, have agreed to forfeit $173,988.61, to settle claims that they sold synthetic drugs at their stores.

The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and the members of the Allegany County Combined Criminal Investigations Task Force (C3I),Colonel Marcus L. Brown, Superintendent of the Maryland State Police, Cumberland Police Chief Charles H. Hinnant, Allegany County Sheriff Craig Robertson; Frostburg Police Chief Royce C. Douty, Frostburg University Chief of Police Cindy R. Smith, and Allegany County State’s Attorney Michael O. Twigg.

According to the settlement agreement and complaint for forfeiture, in April 2012, the Maryland State Police received complaints about a business called “Puff & Stuff,” that operated in Cumberland. The complaints stated that the business is a “head shop,” (a business that sells drug-related paraphernalia including smoking devices and other related items) and sold synthetic drugs. The synthetic drugs are often labeled as different brands, but they are commonly referred to as “spice.” As set forth in the complaint, what the Caseys were selling as “spice” was leafy vegetable matter sprayed with chemicals that have a pharmacological effect on the human body that is similar to that of marijuana. Puff & Stuff currently operates at two locations in Cumberland and another in LaVale, Maryland. A Maryland State Police Task Force initiated an investigation and conducted five controlled purchases of spice from Puff & Stuff stores beginning on April 23, 2012 through February 27, 2013. As a result of the investigation, on March 7, 2013, officers executed five search and seizure warrants at the Casey’s residence; the three Puff & Stuff store locations; and for two of the Casey’s bank accounts, seizing a total of $259,988.61 in cash and numerous packets of spice.

Under the terms of the settlement agreement, the Government has agreed to release $86,000 of the seized funds and the Caseys have agreed to withdraw their claims to the remaining $173,988.61. In addition, the Caseys have agreed to stop selling any substances marked or distributed as “potpourri,” “spice,” or “bath salts.”

The claims settled by this agreement are allegations, and there has been no determination of liability.

United States Attorney Rod J. Rosenstein praised the DEA and Allegany County Combined Criminal Investigations Task Force (C3I), comprised of the Maryland State Police, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Frostburg University Police Department and Allegany County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Stefan D. Cassella, who handled the forfeiture.

Provided False Information About the Buyer and Property Renovations

Greenbelt, Maryland – Real estate agent Nsane Phanuel Ligate, age 42, of Ashburn, Virginia, pleaded guilty today to conspiring to commit wire fraud in connection with a mortgage scheme involving the purchase of two properties located on North Patterson Park Avenue in Baltimore. Co-defendant Cane Mwihava, age 43, of Bowie, Maryland pleaded guilty to the same offense yesterday.

The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Inspector General Michael P. Stephens of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG); Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General (HUD); Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

According to their pleas, in 2008, Ligate and his co-conspirators identified two properties for sale located at 424 and 444 North Patterson Park Avenue in Baltimore. Also at that time, Mwihava established a shell company called Xavier Engineering and Construction Company (XECC) to receive settlement disbursements for purported home renovations. With assistance from Ligate, co-conspirator Gladyness Silaa acted as the real estate agent; and co-conspirator Larry Johnson acted as the buyer. Ligate, Silaa and Johnson included false statements in the loan applications for both properties regarding Johnson’s employment, income, credit and assets. Mwihava and Ligate falsely inflated the purchase price of the properties by representing to lenders that repairs and renovations had been completed on each property by XECC, including installation of premium kitchen cabinets, granite countertops, stainless steel appliances and marble flooring. None of the purported renovations or repairs were in fact performed.

After the settlement of the properties, the settlement agent disbursed a total of $108,860 to XECC, the amount shown on false invoices submitted for the purported renovations. Mwihava then divided these funds between himself, Ligate, Silaa and Johnson.

On June 5 and 9, 2008, Ligate and Mwihava caused banks to wire transfer $181,159.65, and $179,866.93, respectively, to the title agent to complete the settlement transactions. These amounts were needed to fund the original loan amounts plus additional costs and fees associated with the closings.

As a result of the conspiracy, HUD, which insured the loan for 424 North Patterson Park Avenue suffered a loss of $164,090, and a bank which was the lender for the other property suffered a loss of $188,001.58.

The defendants face a maximum sentence of 30 years in prison and a $1 million fine. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for Mwihava on October 14, 2014, at 1:00 p.m. and for Ligate on October 16, 2014 at 10:00 a.m.

Gladyness Silaa, age 35, of Bowie, previously pleaded guilty to conspiracy to commit wire fraud and her sentencing is scheduled for June 16, 2014 at 10:00 a.m. Larry Johnson, age 57, previously pleaded guilty to making false statements in a loan application and was sentenced on February 24, 2014 to eight months in prison consecutive to the current sentence he is serving on an unrelated case.

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.


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

United States Attorney Rod J. Rosenstein commended the FHFA- OIG, HUD-OIG, Secret Service and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin DiGregory, from the Federal Housing Finance Agency, Office of Inspector General, who are prosecuting the case.

One Defendant Sentenced to 30 Months for Smuggling Drugs; Thirteenth Officer Pleads Guilty and Admits to Having Sex With BGF Inmates

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Katrina Laprade, a/k/a Katrina Lyons, age 32, today to 30 months in prison followed by one year of supervised release for participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Another correctional officer, Tanierdra Finch, age 26, of Baltimore, and Frederick Morrison, a/k/a Fry, an inmate, age 29, pleaded guilty yesterday to the conspiracy.

The sentence and guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.

This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.

According to court documents, the Black Guerilla Family (BGF) has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center BCBIC, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.

Laprade and Finch, correctional officers at BCDC, admitted that in 2012 and 2013, they helped smuggle contraband into the jail. Laprade smuggled in marijuana and tobacco on behalf of Stephen Loney, a leader of the BGF. Finch admitted that she smuggled drugs such as Percocet into BCDC for distribution by BGF inmates such as Tavon White and Jamar Anderson. Finch also had sexual relations with some BGF members, including Anderson.

Morrison was a BGF member and in pretrial custody at BCDC from 2012 to 2013. He was involved with and often directed the smuggling of cell phones, tobacco, marijuana and drugs into BCDC through other correctional officers who received payments, gifts or a share of the profits. Morrison had sexual relations with at least one of the correctional officers involved with contraband trafficking. He also helped conceal from prison officials contraband smuggled into the jail.

As part of his plea agreement, Morrison and the government have agreed that if the Court accepts the plea agreement, Morrison will be sentenced to five years in prison consecutive to any state prison sentence he is serving. Finch faces a maximum sentence of 20 years in prison for the racketeering conspiracy. Judge Hollander scheduled sentencing for Morrison on August 27, 2014 and for Finch on August 8, 2014.

Thirteen correctional officers have pleaded guilty to their roles in the conspiracy. Two of these correctional officers, Taryn Kirkland, age 23, and Adrena Rice, age 26, both of Baltimore, were sentenced in January 2014, each to 42 months in prison and officer Jasmine Thornton, a/k/a J.T., age 27, of Glen Burnie, Maryland, was sentenced to 32 months in prison on February 5, 2014.

BGF leader Tavon White, age 37; BGF commander Steven Loney, age 25; BGF members Jamar Anderson a/k/a “Hammer” and “Hamma Head,” and Kenneth Parham, both age 24; and Jermaine McFadden, age 25, an associate of BGF; also pleaded guilty to the racketeering enterprise. Parham was sentenced on February 24, 2014 to151 months in prison, McFadden was sentenced on March 12, 2014 to 140 months and Loney was sentenced on January 14, 2014 to nine years in prison. Tavon White and Jamar Anderson are awaiting sentencing.

U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.

United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland - Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Glen Arm, Maryland, pleaded guilty late yesterday to a wire fraud conspiracy, wire fraud and tax evasion.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“For over a decade, through a combination of lies and deceit, Patrick Belzner and his coconspirators caused serious financial harm to their victims. These individuals were focused on their own personal gratification with no regard for the consequences of their actions,” said Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office. “Holding cheats such as Belzner accountable for their misdeeds, is critically important to maintaining the integrity of our economy.”

According to Belzner’s plea agreement, from 2009 through August 2011, Belzner, a home builder, worked for a real estate development business known as the McCloskey Group, LLC, owned by Brian McCloskey, who was also a home builder. During that time, Belzner conspired with McCloskey, Maryland attorney Kevin Sniffen and others to defraud investors through a fraudulent investment scheme.

Specifically, Belzner and the conspirators advised wealthy individuals and investment advisers that in order for the McCloskey Group to obtain loans for commercial real estate projects, the loan broker required that large sums of money be deposited in an escrow bank account to show “liquidity.” They further falsely represented that the funds would be maintained under the control of Sniffen, a licensed attorney and escrow agent; would not be used for any other purpose; and that the money would be returned to the investor, either upon the funding of the loan or after a specified period of time. In return for this temporary use of the investor's funds, Belzner and McCloskey promised to pay substantial fees or interest.

Instead, Belzner admitted that he directed McCloskey to remove the investors’ funds soon after they had been deposited into the escrow account. Belzner and McCloskey then used the stolen funds to pay for their personal and business expenses, as well as to make partial repayments to earlier lenders, to pay fees to some of the victim investors to keep them from demanding the return of their money, and to pay the loan broker for its supposed work and expenses in attempting to locate financing sources.

Belzner and his co-conspirators attempted to conceal the fraud by: issuing false bank statements regarding the amount of escrowed funds; falsely representing in emails and by phone the balance of escrow funds and the date when the investors’ money would be returned; and returning part of the victim’s investment using funds fraudulently obtained from other investors. Belzner also wrote scripts for the conspirators to use in telephone conversations or in written communications to lull the victims and their representatives into believing that their escrow monies were safe and would be returned to them as promised in the escrow agreements, as well as to persuade victims not to pursue demands or legal action for the immediate return of their funds.

The government contends that Belzner and his conspirators' fraudulent scheme caused losses in excess of $22 million to more than 10 victim investors.

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

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

Belzner faces a maximum sentence of 20 years in prison each for wire fraud and for conspiracy; and a maximum of five years in prison for evasion of assessed tax payments. U.S. District Judge James K. Bredar has scheduled sentencing for September 3, 2014 at 10:00 a.m.

Brian McCloskey, age 42, of Baltimore and Kevin Sniffen, age 52, of Phoenix, Maryland have each pleaded guilty to their roles in the conspiracy and are awaiting sentencing.

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

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

Driver was Drunk When Passenger was Ejected from the Vehicle During a Crash

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Josue Balbino Ruiz Reyes, age 20, of Hyattsville, Maryland today to 37 months in prison, followed by three years of supervised release, for involuntary manslaughter in connection with the death of a passenger in Reyes’ vehicle resulting from a car collision.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Chief of Police Robert D. Maclean of the U.S. Park Police.

According to his plea agreement, on August 22, 2013 at about 5:30 a.m., Ruiz Reyes drove with a female passenger in his SUV from the Glen Burnie area southbound on the Baltimore-Washington Parkway. He had been drinking alcohol earlier that morning and the previous night. Near the route 197 exit, he lost control of his SUV and drove onto the shoulder of the highway. His SUV rolled over completely and landed upright, breaking all the windows and ejecting the passenger. Ruiz Reyes drove away.

Numerous motorists called 911 to report the accident. The U.S. Park Police found Ruiz Reyes driving his badly damaged vehicle on the ramp from the Parkway to Powder Mill Road, about four miles south of the location of the crash. Four police cruisers forced the vehicle to a stop. The right side of the SUV was completely smashed. The passenger side door would not open. Ruiz Reyes told the police he had two beers earlier. He was shirtless, and had minor bruises and cuts on his body. Ruiz Reyes was taken to the hospital where a blood test was given. His blood-alcohol level was .10 grams of alcohol per 100 mL of blood.

Meanwhile, U.S. Park Police officers at the scene of the roll-over found the passenger’s body lying in the grass, where she had been ejected from the SUV. She was pronounced dead. Ruiz Reyes told police that the passenger had gotten out of the car on the side of the road voluntarily. His Maryland driving privileges were suspended.

United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis R. Weisman, who prosecuted the case.

Also Encouraged His Ex-Wife to Distribute Child Pornography

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced David Ralph Fisher, age 43, of Baltimore, today to 293 months in prison, followed by lifetime supervised release, for producing child pornography and attempting to coerce and entice a minor to engage in sexually explicit activity. Judge Bredar ordered that upon his release from prison, Fisher must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

According to his plea agreement and court documents, David Fisher repeatedly requested that his ex-wife, Lori Fisher, produce sexually explicit photos of two minor girls, which she did on at least two occasions between August and December of 2008. Lori Fisher took the photos on her cell phone, then texted the images to David Fisher, who saved the images on his cell phone and computers.

On November 4, 2012, the Baltimore Police Department received information that images and videos of child pornography were observed on David Fisher’s external hard drive at his residence. The external hard drive was provided to police. Many files depicting minors engaged in sexually explicit conduct were found.

A search warrant was subsequently executed at David Fisher’s residence on November 20, 2012, and computers, cell phones and other items were seized. Sexually explicit email messages with attachments were recovered in which Fisher solicited child pornography from other individuals, and shared child pornography from his collection. Also, in February 2013, law enforcement confirmed that some of the sexually explicit images found on David’s computer and cell phone were images of the two minor girls that Lori Fisher had photographed and sent to David. In all, over 2,200 images and 100 videos of minors engaged in sexually explicit conduct, including prepubescent minors, were recovered.

On March 14, 2013, a Baltimore Police detective working undercover contacted David Fisher on Facebook, posing as a 14 year old female. Between March 14 and April 11, 2013, David Fisher communicated with the undercover detective through Facebook and email, often using a computer at a public library because of law enforcement’s seizure of his home computer. David Fisher asked the undercover detective to send him sexually explicit photos, and sent the undercover detective sexually explicit photographs of himself. Fisher also gave the undercover detective his cell phone number and proposed meeting to engage in sexual activity. A meeting was arranged for April 11, 2013. Fisher was arrested when he arrived at the meeting.

Lori Fisher, age 46, of St. Cloud, Florida, and formerly of Bel Air, Maryland, previously pleaded guilty to distribution of child pornography and faces a minimum of five years and a maximum of 20 years in prison at her sentencing scheduled for June 11, 2014 at 9:30 a.m. As part of her plea agreement, Lori Fisher will be required to register as a sex offender in the place where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Greenbelt, Maryland –William S. Gazafi, age 44, of Lusby, Maryland, pleaded guilty today to six counts of sexually exploiting a minor to produce child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Brigadier General Kevin J. Jacobsen, Commander Air Force Office of Special Investigations.

According to the indictment, court documents and statements made at his plea hearing, on August 15, 2013, Gazafi engaged in a chat on a website dedicated to incest discussions with an undercover officer. During the chat, Gazafi discussed his sexual interest in children and advised that he had been drugging and molesting several children, including an infant. During the chat, Gazafi sent seven images to the undercover officer, three of which were child pornography he stated he produced after drugging the child. Gazafi was subsequently identified and arrested. At the time of his arrest, Gazafi was carrying multiple digital media items. A forensic examination of those items and others seized from his residence revealed videos and images that Gazafi produced of children engaged in sexually explicit conduct, including one child as young as five months old. The images also depict children bound and handcuffed while sleeping. Gazafi is a non-commissioned officer in the U.S. Air Force working at Andrews Air Force Base.

Gazafi faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison on each of the six counts, followed by up to lifetime of supervised release. U.S. District Judge Roger W. Titus has scheduled sentencing for June 23, 2014, at 1:00 p.m. Gazafi remains detained.

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

United States Attorney Rod J. Rosenstein commended the FBI, Air Force Office of Special Investigations and the Calvert County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Thomas Sullivan, who are prosecuting the case.

Imported Counterfeit Merchandise from China

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Hao Yang, age 25, of Bloomsburg, Pennsylvania, today to 21 months in prison for conspiring to traffic in counterfeit goods and counterfeit military goods. Judge Motz also entered an order that Yang forfeit five bank accounts worth over $59,000, a 2010 Acura purchased with proceeds of the crime, and counterfeit computer software, DVDs, sports jerseys and other items valued at approximately $280,720.

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

“The defendant imported counterfeit goods from China and fraudulently sold them as legitimate merchandise,” said U.S. Attorney Rod J. Rosenstein. “Counterfeit integrated circuits from China were falsely represented to be legitimate American-made parts.”

“This investigation, conducted by HSI special agents in Baltimore, Tampa and Harrisburg, Pa., identified Chinese national Hao Yang as a co-conspirator in an overall scheme to traffic in counterfeit goods to include military grade integrated circuits and defense goods into the United States from China,” said HSI Baltimore Special Agent in Charge William Winter. “These counterfeit military goods pose a threat to our national security as they could end up in the wrong hands and legitimate manufacturing and high technology businesses may believe they are receiving authentic goods. HSI and our partners at U.S. Customs and Border Protection will continue to protect the American public and America's warfighters from the introduction of counterfeit, non-conforming, and substandard materials and goods from entering the United States.”

According to his plea agreement, from 2010 until his arrest on June 19, 2013, Yang and his co-conspirators created and operated several companies in Maryland, Pennsylvania, and elsewhere, including MS Technologies and Aone Electronics in Baltimore; Abest Technologies in China; and Arrcord Group, SMC Group and Smooth LLC. The latter three companies were operated by Yang at his residence in Bloomsburg. Yang used his residence to warehouse the counterfeit goods, including counterfeit military goods, sent to him by his co-conspirators in China. He then shipped items to buyers in the United States based on the order information provided by his co-conspirators. Yang maintained numerous bank accounts to deposit his illegal commissions and make payments associated with his counterfeit activities. He also used the commissions he received from his co-conspirators to pay for living expenses and other purchases, including a 2010 Acura TSX sedan.

Yang received counterfeit circuits, a number of which were military-grade, from a co-conspirator in China. This co-conspirator sold, or attempted to sell, the circuits to individuals, companies and government agencies in the United States. Yang then distributed the counterfeit circuits, using his domestic businesses, to the buyers in the United States, sometimes in repackaged form. The co-conspirator paid Yang a commission of $500 per month for his distribution services. Yang and his co-conspirator formed Aarcord Group to conceal the fact that the counterfeit circuits were being imported from China. The counterfeit circuits that Yang redistributed could likely have caused serious bodily injury or impaired military operations, personnel or national security.

Yang also obtained other counterfeit goods, including computer software, DVDs, and sports jerseys, from other co-conspirators in China and Hong Kong, which he then distributed in the United States. Yang received commissions from these co-conspirators of $1,000 to $2,000 per month for his distribution services. Between March 2011 and April 2013, Yang used several false identities to receive hundreds of shipments from China and Hong Kong, including shipments involving integrated circuits.

United States Attorney Rod J. Rosenstein praised HSI Baltimore for its work in the investigation and thanked Assistant U.S. Attorney Christine Manuelian, who prosecuted the case.

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.

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.

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.

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.

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 Robberies

Baltimore, 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.

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.

Used Stolen Identity Information to Purchase Motorcycles and Other Goods
With Losses to the Victims of at Least $120,000

Baltimore, 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.

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.

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.

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.

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, Virginia

The 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.