District of Maryland
Press releases recorded for this federal judicial district.
St. Leonard’s Man Pleads Guilty to Sexually Exploiting A Minor to Produce PornographyRead the Press Release
Took 24 Sexually Explicit Pictures of a Prepubescent Girl While She Slept, or Nude in a Bathtub
Greenbelt, Maryland – David Wayne Sweet, Jr., age 24, of St. Leonard, Maryland pleaded guilty today to 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 William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Laura Martin.
According to his plea agreement, on September 19, 2013, the Calvert County Sheriff’s Drug Enforcement Unit executed a search warrant at Sweet’s residence based on alleged drug violations. Sweet’s cell phone was seized. A subsequent review of the phone revealed 24 sexually explicit images of a prepubescent girl taken between June and September 2013, including pictures of the victim nude in a bathtub. Sweet had deleted the pictures, but law enforcement officials recovered all of the images.
Sweet was arrested on September 27, 2013. Sweet admitted that he inappropriately touched the victim while she was sleeping and took the photos.
As part of his plea agreement, Sweet must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Sweet and the government have agreed that if the Court accepts the plea agreement, Sweet will be sentenced to 20 years in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for June 23, 2014 at 11:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Calvert County Sheriff’s Office and Calvert County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who prosecuted the case.
Conspirator in Scheme to Steal Waste Vegetable Oil Pleads Guilty to Laundering More Than $1.5 MillionRead the Press Release
Baltimore, Maryland – Anthony Jean-Claude, age 40, of Odenton, Maryland pleaded guilty today to laundering over $1.5 million, in connecting with a scheme to steal waste vegetable oil.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to the plea agreement, waste collection businesses contract with local restaurants to collect waste vegetable oil (WVO), which is used to make bio-diesel fuel or processed as an additive for animal feed. Waste collection businesses place recycling containers behind the restaurants with which they have contracts. When the containers are full, the businesses collect the WVO using a vacuum truck.Jean-Claude admits that from May through October 2010, he and a friend stole WVO from restaurants in Maryland and Virginia using a flatbed tow truck owned by his friend, a tank and a mechanical pump. Jean-Claude and his friend stored the stolen oil at a warehouse near Waterview Avenue in Baltimore County, then sold the oil to out-of-state oil companies.
At the end of October, Jean-Claude’s friend developed a legitimate WVO collection company - Waste Not Incorporated - purchased a vacuum truck, hired salesmen to assist him, and eventually obtained 650 contracts to collect WVO from restaurants and other eateries. From June through October, 2011, Jean-Claude’s friend collected the WVO pursuant to the contracts and sold the WVO to Jean-Claude.
According to his plea agreement, in May 2011, Jean-Claude used a straw purchaser to buy a truck, which was titled the name of Waste Not and used to steal WVO from restaurants for which Waste Not did not have a collection contract. The driver of that truck was caught stealing WVO in July 2011. In late 2011, Jean-Claude met R.F. during a home renovation project at Jean-Claude’s home. Jean-Claude requested that R.F. lease a large warehouse facility to collect, process and sell WVO. The owner of Waste Not took both his legitimate WVO and the stolen WVO to the facility, located at 1701 Leland Avenue in Middle River. Jean-Claude then sold the WVO to fuel companies in Pennsylvania and elsewhere. The proceeds of these transactions were directed back to Jean-Claude through an account in in the name of Rafxcel Services, to which both R.F. and Jean-Claude had signature authority.
Jean-Claude subsequently used the straw purchaser to buy another truck in October 2011, which a conspirator used to steal WVO from 20 locations in Baltimore City and Baltimore County. The conspirator then took the stolen WVO to the Leland Avenue facility. From January 5, 2012 through October 1, 2012, Rafxcel received approximately $1,586,747, for selling WVO to oil companies in Maryland, Pennsylvania and elsewhere.
R.M. was the operations manager at the Leland Avenue facility. R.M. received checks from Jean-Claude in the name of R.M.’s wife, which were drawn on the Rafxcel business account. Jean-Claude directed R.M. to cash the checks, use a portion of the cash for the operations of the Leland Avenue facility, and give the remainder of the cash back to Jean-Claude. Jean-Claude knew that this money was the proceeds of the illegal scheme to sell stolen WVO.
Jean-Claude faces a maximum sentence of 20 years in prison for money laundering. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 10, 2014 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.Baltimore Drug Dealer Sentenced in Money Laundering SchemeRead the Press Release
Paid a Bank Teller to Convert Drug Proceeds from Small Bills to $100 Bills
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Deanna Bailey, age 33, of Baltimore, today to 46 months in prison followed by two years of supervised release for conspiring to commit money laundering. Judge Bredar also ordered Bailey to forfeit $500,000.
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 Chief James W. Johnson of the Baltimore County Police Department.
According to her plea agreement, Bailey was a member of a drug trafficking organization based in Maryland. Bailey transported or caused to be transported at least 500 pounds of marijuana from southwestern United States to Maryland for distribution. Sabrina Fitts was the head teller at the Perry Hall branch of M&T Bank. On at least eight occasions over a period of two to three years, Bailey came to the bank and asked Fitts to convert the proceeds from the sale of illegal drugs from small denomination bills (i.e. $5, $10 and $20 bills) to $100 bills. The amounts involved in each transaction ranged from $20,000 to $100,000, with most transactions involving $50,000 or more. Bailey paid Fitts a one percent fee for each transaction.On May 2, 2013, a search warrant was executed at an apartment in Baltimore where Bailey sometimes stayed. Law enforcement seized a handgun, digital scales, 10 cell phones and $319,000 in $100 bills.
Sabrina Nicole Fitts, age 29, of Baltimore, Maryland, was sentenced on December 20, 2013 to a month in prison followed by eight months of home detention for failing to file currency transaction reports on suspected drug proceeds. Judge Bredar also ordered Fitts to perform 250 hours of community service and to forfeit $5,000 she was paid by Bailey for converting the drug proceeds.
The government filed a civil action on February 10, 2014 alleging that M&T Bank is required to forfeit $560,000 that was transferred to the bank by Bailey in exchange for $100 bills. The complaint alleges that the money is subject to forfeiture because M&T Bank failed to file currency transactions reports on bank transactions in amounts in excess of $10,000 as required by law.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Stefan D. Cassella, who prosecuted the case.
BGF Member Sentenced to over 12 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
BGF Member Often Directed the Smuggling of Drugs and Contraband into Baltimore Correctional Facility While in Pretrial Custody
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced a member of the Black Guerilla Family (BGF) gang, Kenneth Parham, age 24, of Baltimore, Maryland, to 151 months in prison followed by three years of supervised release for a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Parham’s federal sentence will be served concurrent to the 10 year state sentence he is currently serving.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to his plea agreement, Parham is a member of the BGF and was in pretrial custody at BCDC from 2012 to 2013. During that time, Parham admitted that he was involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of Correctional Officers (COs), who received payments, gifts, or a share of the profits. As a close associate of BGF leader Tavon White, Parham knew many of the COs involved in contraband trafficking. Parham and his closest BGF allies frequently used individuals to obtain contraband outside the prison, hold it or deliver it to COs for smuggling. Parham also helped conceal contraband from prison officials who would conduct periodic searches for contraband.
Nine correctional officers have pleaded guilty to their roles in the conspiracy. Correctional officers Taryn Kirkland, age 23, and Adrena Rice, age 26, both of Baltimore, previously pleaded guilty to their participation in the conspiracy and were sentenced in January 2014, each to 42 months in prison and officer Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie, Maryland, was sentenced to 32 months in prison on February 5, 2014. Six other correctional officers await sentencing.
BGF leader Tavon White, age 36, and BGF commander Steven Loney, age 24, also pleaded guilty to the racketeering enterprise. Loney was sentenced on January 14, 2014 to nine years in prison. Tavon White awaits his 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.Previously Convicted Baltimore Felon Exiled to over 16 Years in Prison on Gun and Drug ChargesRead the Press Release
Jury Found that Defendant Brandished a Gun While Selling Marijuana
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Ira Taylor, age 32, of Baltimore, Maryland, today to 195 months in prison followed by five years of supervised release for being a felon in possession of a gun and ammunition, distribution and possession with intent to distribute marijuana, and brandishing 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; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to testimony presented at Taylor’s five day trial, on November 13, 2012, a man who was operating an unlicensed cab (a “hack”) in the 1800 block of Rosedale Street in Baltimore, attempted to purchase marijuana from Taylor. Taylor handed the man a “dime bag” of marijuana. The man took out $85 intending to get $10 to pay Taylor for the marijuana. Taylor drew a gun and pointed it at the man, demanding all the money and taking back the marijuana. Taylor ordered the man out of the car and told him to start walking towards North Avenue. According to trial testimony, the man did so, begging Taylor not to shoot him or steal his car. Taylor fired his gun at the man and slashed a tire on the car. A short time later, two Baltimore Police officers turned from North Avenue onto Rosedale Street and Taylor fled. Taylor was found hiding under a row of bushes and arrested. Police found a loaded .38 caliber revolver, with four live cartridges and one spent cartridge, on the ground nearby. Officers searched Taylor and recovered: two small bags of marijuana, $85 in balled-up cash, $19 in neatly-folded cash and a knife.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Scott Lemmon, Benjamin Block, Debra Dwyer and Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
First Two Retailers Sentenced for Food Stamp FraudRead the Press Release
In Less Than Two Years, Defendants Obtained Over $1.4 Million in Payments for Food Sales That Never Occurred; To Date, Eight Retailers Have Pleaded Guilty in Food Stamp Fraud Schemes
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Hyung Cho, age 40, to 38 months in prison followed by three years of supervised release, and his mother Dae Cho, age 67, to 18 months in prison for food stamp and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Russell also entered an order that the defendants forfeit $371,439.21 and pay restitution of $1.4 million. Both defendants resided in Catonsville, Maryland and are Korean citizens who are illegally present in the United States. The defendants have further agreed not to object to any proceedings that may be brought to remove them from the United States upon completion of their sentence.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Dae Cho co-owned K&S Market, a convenience store located at 3910 West Belvedere Avenue in Baltimore. Dae and Hyung Cho operated the store. According to their plea agreements and court documents, the store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Dae Cho completed the required government form in March of 2004 to become an authorized retailer in the program. Dae and Hyung received training and instruction regarding the requirements of the food stamp program, including that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from June 2011 through May 2013, Dae and Hyung Cho exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for themselves, using the cash to pay rent and other bills. Dae Cho has estimated that about $25,000 to $30,000 worth of food stamp benefits were exchanged in this manner per month and that this occurred approximately 50 times a day.
As a result of these unlawful cash transactions, Dae and Hyung Cho obtained more than $1,400,000 in payments for food sales that never occurred.
Eight of the 10 convenience store owners or operators who were indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud. Yesterday, Jung Kim, age 52, of Ellicott City, Maryland, pleaded guilty to food stamp fraud and wire fraud. Kim owned and operated C&C Market, located at 4752 Park Heights Avenue in Baltimore. From November 2010 to April 2013, Kim obtained over $400,000 in payments for food sales that never occurred. Judge Russell scheduled Kim’s sentencing for June 20, 2014.
John Cunningham, age 54, of Baltimore, pleaded guilty on February 18, 2014 to wire fraud. Cunningham co-owned a corporation that owned Cunningham’s Amoco, a BP gas station and convenience store located at 4419 Park Heights Avenue in Baltimore. U.S. District Judge Richard D. Bennett scheduled his sentencing for May 21, 2014.
Amara Cisse, age 50, who owned Simbo Food Mart, located at 2103 West Pratt Street in Baltimore, and his wife Fanta Keita, age 45, who worked at the store, both of Windsor Mill, Maryland, pleaded guilty on December 3, 2013 to food stamp fraud and are scheduled to be sentenced on March 6, 2014.
Abdullah Aljaradi, age 52, and Ahmed Ayedh Al-Jabrati, age 58, both citizens of Yemen residing in Baltimore, have each pleaded guilty to wire fraud. Aljaradi and Al-Jabrati operated two convenience stores, Second Obama Express and D&M Deli and Grocery, located next door to each other at 901 Harlem Avenue in Baltimore. From October 2010 to July 2013, the defendants obtained over $2 million in payments for food sales that never occurred. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for Aljaradi on April 30, and Al-Jabrati for March 25, 2014.
Dae and Hyung Cho are the first to be sentenced. Two more retailers were indicted in January 2014.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Judson T. Mihok, Kathleen O. Gavin, Leo J. Wise and Peter M. Nothstein, who are prosecuting the cases.
Howard County Bloods Gang Member Exiled to over 17 Years in Prison for Racketeering Conspiracy, Robbery and Gun OffensesRead the Press Release
Nine Bloods Gang Members and Three Other Defendants Have Pleaded Guilty to Date
to Federal Racketeering and Drug ConspiraciesBaltimore, Maryland – U.S. District Judge George L. Russell III sentenced Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland to 205 months in prison followed by five years of supervised release for conspiring to participate in a racketeering conspiracy, conspiring to commit robbery and using a gun during a crime of violence. The sentence resulted from the consolidation of two federal cases in which Johnson pleaded guilty.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.
According to his plea agreements, since at least 2011, Johnson was a member of the Bloods, a national criminal street gang with members operating in and around Howard County, Maryland. Johnson was initially charged with the robbery of an individual on November 8, 2011. The ATF had arranged for the individual to buy guns from Johnson. After Johnson scheduled a meeting to sell the guns, Johnson instead had two associates rob the individual, rather than sell the guns. After the armed robbery, the two associates fled and met up with Johnson who was waiting nearby. The three men shared the proceeds of the armed robbery.
Johnson was subsequently arrested for the robbery in March 2012 and incarcerated at the Chesapeake Detention Facility (CDF). During his incarceration at CDF, ATF agents and Howard County Police detectives intercepted Johnson discussing gang business over the jail phones. He also enlisted gang members to smuggle drugs and cellphones into the facility. Johnson is intercepted admitting to the possession of contraband, drug trafficking, and illegal activities on jail calls from CDF to gang members. Several of these calls provided the investigative foundation for law enforcement to obtain court-ordered wiretaps on fellow gang members’ telephones, and ultimately led to the indictment of 17 defendants on racketeering charges, and three additional defendants on drug trafficking conspiracy charges.
Among his criminal activities as a gang member, Johnson admitted that he: committed at least three armed robberies of individuals in which drugs, cash and/or other items were stolen; assaulted others; and sold crack cocaine, oxycodone and other drugs. Johnson also prostituted females, including a minor. The minor stated that she during the time she worked for Johnson as a prostitute in the summer of 2011, she made approximately $5,000 to $6,000, half of which was paid to Johnson. Johnson regularly carried a gun in connection with these activities.
In addition to Johnson, eight other defendants have pleaded guilty to the racketeering conspiracy and face a maximum sentence of 20 years in prison:
Heather Carter, a/k/a "Hunnilynn," age 29, of Columbia, Maryland
James Bieryla, a/k/a "Brea," and "Braze," age 21, of Ellicott City, Maryland;
Russell Canty, a/k/a "Rek," age 20, of Baltimore;
Adrian Freeman, a/k/a "Sleep," age 23, of Laurel, Maryland;
Kevin Jarrell, a/k/a "K-Dog," 25, of College Park, Maryland;
Christopher Lloyd McGann, a/k/a “Toker,” age 22, of Columbia;
David Jerome Robertson; age 23, of Columbia; and
Bamba Omar Saine, age 23, of Columbia.Each of these defendants, except Jarrell, also pleaded guilty to using or possessing firearms in furtherance of the racketeering conspiracy, and face a mandatory minimum sentence of five years’ incarceration up to life in prison.
Three other defendants have pleaded guilty to conspiring to sell drugs and also face a maximum sentence of 20 years in prison: Wendy Farhat, age 39, of Gaithersburg, Maryland; Anthony Louis Jones, age 27, of Columbia; and Troy Fowler, age 23, of Laurel.
Mr. Rosenstein commended the ATF, Howard County Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who are prosecuting the case.
Charges Filed Against Vendor Using Silk Road Website to Sell Drugs and GunsRead the Press Release
Baltimore, Maryland – Sheldon Kennedy, age 26, of Lincoln, Nebraska was charged by complaint on charges arising from the sale of drugs, guns and counterfeit currency on an online site known as Silk Road. The complaint was filed on January 31, 2014 and unsealed today after his arrest yesterday in Miami, Florida.
The complaint 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); Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the affidavit in support of the complaint and court documents, an online, international marketplace known as Silk Road, operated from January 2011 through September 2013. Silk Road allowed users to anonymously buy and sell illegal drugs, false identifications, counterfeit currency, guns and other contraband over the Internet. In September 2011, HSI Baltimore special agents initiated an investigation into the Silk Road website. Thereafter, the Baltimore Silk Road Task Force was created to address the contraband being sold on Silk Road.
The complaint alleges that on January 6, 2012, a USPS express mail package from China was opened in San Francisco pursuant to a border search. The package was being sent to Kennedy in Nebraska and was found to contain 55 grams of 4-fluoroamphetamine, a psychoactive drug and research chemical similar to MDMA, also known as ecstasy. Agents began investigating Kennedy. Thereafter, undercover agents in Baltimore bought contraband from Kennedy on Silk Road, who used aliases to sell cocaine and a pistol. Further investigation revealed that Kennedy was not licensed to sell firearms.
According to the complaint, Kennedy also sold counterfeit currency to another individual in Maryland on Silk Road. And in May 2012, agents intercepted a package Kennedy mailed to an individual in England. The package was found to contain 110 grams of DMT, a controlled substance. Kennedy also posted pictures online, such as on Facebook and Google+, of firearms, firearm accessories and large amounts of U.S. currency, which he advertised for sale.
On June 28, 2013, a search warrant was executed at Kennedy’s home. Ten firearms were seized, along with ammunition and illegal drugs.
A complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Kennedy faces a maximum sentence of 20 years in prison for conspiracy to traffic controlled substances; and five years in prison each for possession of a firearm in furtherance of a drug trafficking offense, interstate sale or transfer of a firearm without a license to another unlicensed person and conspiracy to pass counterfeit money.
In related cases, Curtis Green, a/k/a “Flush,” and “chronicpain,” age 47, of Utah, previously pleaded guilty to conspiracy to distribute and possess with attempt to distribute cocaine. Green admitted to being an administrator of the Silk Road website. Jacob Theodore George IV, age 32, of Edgewood, Maryland, also previously pleaded guilty to conspiracy to distribute and possess with intent to distribute drugs, including heroin. George admitted to selling drugs on Silk Road. Green faces a maximum sentence of 40 years in prison and George faces a maximum sentence of 20 years in prison for conspiracy to distribute and possess with intent to distribute cocaine. U.S. District Judge Catherine C. Blake scheduled sentencing for Green on July 11, 2014. No sentencing date is scheduled for George.
Ross Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” age 29, of San Francisco, California, has been indicted in Maryland on charges of conspiracy to distribute a controlled substance, attempted witness murder and using interstate commerce facilities in the commission of murder-for-hire. Silk Road was allegedly created and operated by Ross Ulbricht, a/k/a “Dread Pirate Roberts,” who collected a fee for each transaction on the website. Ulbrecht faces a maximum of 40 years in prison for the drug distribution conspiracy; a maximum sentence of 30 years in prison for attempted witness murder; and a maximum of 10 years in prison for using interstate commerce facilities in the commission of murder-for-hire. No court appearance in Maryland has been scheduled.
Ulbricht faces a related indictment in the U.S. District Court for the Southern District of New York. 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 HSI Baltimore, DEA, ATF, U.S. Postal Inspection Service, U.S. Secret Service and IRS-Criminal Investigation for their work in the investigation. U.S. Attorney Rosenstein recognized U.S. Attorneys Preet Bharara and Gary S. Shapiro of the Southern District of New York and the Northern District of Illinois, respectively, and their offices; the FBI; and Senior Trial Counsel James Silver of the U.S. Department of Justice Computer Crimes and Intellectual Property Section for their assistance in the case. Mr. Rosenstein thanked Assistant United States Attorney Justin S. Herring, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Two More Conspirators Plead Guilty in Fraudulent Tax Refund SchemeRead the Press Release
Claimed False Income and Credits on Fraudulent Tax Returns for Persons Who Had Little or No Income
Baltimore, Maryland – Jasmine L. Thomas, age 26, of Baltimore, and Kiara A. Skipwith, age 24, of Parkville, Maryland, pleaded guilty today to a conspiracy to defraud the government arising from the filing of fraudulent tax refunds.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington D.C. Regional Office.“Criminal conspiracies involving fraudulent refund schemes are loathsome crimes that victimize our nation’s honest taxpayers,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s pleas are a reminder that IRS-CI will remain vigilant in our investigation of these schemes and will continue to work with prosecutors to combat this type of criminal conduct.”
According to their plea agreements, from February 2010 through April 2013, Skipwith, Thomas and their mother, Tonia Lawson, recruited individuals who did not owe taxes because they had little or no earned income, and convinced these individuals that they could obtain a substantial refund and therefore should file a federal individual income tax return. The defendants paid a referral fee to those who brought recruits to them.
The defendants provided the recruits’ personal information to another conspirator who would prepare the fraudulent return. The recruits did not provide any income information. False wages, educational expenses and dependents were used to falsely claim tax credits. Once the tax refund was received, the defendants took a portion of the refund and paid the recruit a smaller amount.
Over the course of the scheme, Thomas conspired to file at least 15 fraudulent tax returns with a resulting loss to the government of $90,579; and Skipwith conspired to file at least 37 fraudulent tax returns with a resulting loss of $199,722.
Thomas and Skipwith face a maximum sentence of 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense, whichever is greater. U.S. District Judge Richard D. Bennett scheduled sentencing for Thomas and Skipwith on May 20, 2014 and May 28, 2014, respectively.
Tonia Patrice Lawson, age 43, of Middle River, Maryland, previously pleaded guilty to conspiring to file 84 fraudulent tax refunds with a loss to the government of $546,785. Lawson is scheduled to be sentenced on March 27, 2014 at 4:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised IRS Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I. Sharfstein, who are prosecuting the case.
Four Men Indicted for Armed Robbery of Armored Truck EmployeesRead the Press Release
Allegedly Stole Over $79,000 and Attempted to Murder a Witness Who Called 911
Greenbelt, Maryland - A federal grand jury indicted four defendants today on charges arising from the armed robbery of employees who were transporting money in an armored truck:
Antonio Lamar Cooper, age 27, of Washington, D.C.;
Juwan Armarni Watkins, age 21, of Washington, D.C.;
Maurice Lorenzo Foreman, age 22, of Oxon Hill, Maryland; and
Eugene Robert Watkins, age 22, of Washington, D.C.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to the three count indictment and court documents, on January 15, 2014 the defendants stole a vehicle and drove it to a restaurant on Allentown Road in Morningside, Maryland. Outside the restaurant, two armored truck employees were transporting money from the restaurant. One of the defendants pointed a gun at an employee’s face, pushed her to the ground, placed his gun on the back of her head and took her gun. Another defendant pointed his gun at the second employee’s head and took his gun as well.
The indictment and court documents allege that the defendants robbed the employees of $74,106 in cash, $4,028 in checks, a scanner and a printer. During their escape into Washington D.C., the defendants allegedly shot at a witness to the robbery who called a 911 dispatcher and followed the defendants in a high speed chase to obtain the license number of their getaway vehicle. The defendants shot the driver’s side window of the witness’s car several times.
According to court documents, Prince George’s County Police officers pursued the defendants’ stolen vehicle into Washington, D.C. where the defendants got out of their vehicle and attempted to flee. With the assistance of a canine search initiated by Metropolitan Police officers, the defendants were subsequently arrested.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for interfering with interstate commerce by robbery; and life in prison for using a firearm during the robbery. All of the defendants but Foreman have had their initial appearances in U.S. District Court in Greenbelt and are detained. Foreman is in state custody.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.
Three Medical Groups and A Medical Billing Company Agree to Pay $3,340,979 to Resolve Investigation into Medicare Overbilling SchemeRead the Press Release
Baltimore, Maryland B Medical billing company Engage Medical, Inc., its owner Sanjay Puri and three medical practices that were its clients have agreed to pay a total of $3,340,979 to resolve claims that Engage Medical overbilled for nuclear stress tests. Engage Medical and Sanjay Puri have agreed to pay $544,500; Advanced Cardiology Center and its owners Pankaj Lal, M.D., Mubashar Choudry, M.D. and Moshin Ijaz, M.D. agreed to pay $1,894,549.50; Reva Gill, M.D. and Kenilworth Internists, P.A. agreed to pay $242,204; and Sureshkumar Muttath, M.D. agreed to pay $659,726.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“When medical providers can enrich themselves at taxpayers’ expense by falsely representing that they provided expensive procedures, the government must be vigilant in pursuing fraudulent claims,” said U.S. Attorney Rod J. Rosenstein. “Anyone who knowingly reports false medical billing codes to induce the government to pay more money is lying, cheating and stealing.”
The allegations resolved in the settlement agreement involve overbilling of nuclear stress tests between July 31, 2007 and March 8, 2011. Engage Medical operated in Virginia, Washington, D.C. and Maryland. During this time, Engage Medical contracted with physicians and physician practices, holding itself out as having expertise in medical billing. Engage Medical staff would obtain records from physician clients related to the medical services provided, and transmit that information to staff in India, where medical coders would apply the relevant Current Procedural Terminology (“CPT”) codes and bill applicable insurance, including Medicare and other federally funded health insurance programs.
The billings at issue involved nuclear stress tests which are designed to assess cardiac function. Engage Medical marketed these tests to general practitioners, persuading them that instead of referring the patients to cardiologists for these tests, Engage could arrange to have the testing service performed in the general practitioner’s offices and bill for the tests, all of which would increase the general practitioners’ incomes. Dr. Muttath and Dr. Gill, two internists, agreed to allow Engage to provide this service.
Engage Medical’s billing of these tests, however, was false and in direct contradiction to published materials about such medical billing. Engage Medical systematically billed for each service twice, using a CPT code modifier intended to be used when the service had been repeated by the same physician or when a distinct service was performed on the same day. In fact, none of the tests were repeated and none of the tests was a distinct procedural service.
Engage Medical also included with its billing a CPT code that was intended to be used for interpreting and reporting images, even though proper CPT coding for a nuclear stress test already compensated the physician for interpreting and reporting the tests results. This is called “unbundling” and occurs when a medical biller falsely adds additional CPT codes for services – such as interpreting the test – that are already encompassed by the CPT code for the nuclear stress test itself. In unbundling in this way, however, Engage Medical ignored the plain language in the applicable CPT coding manuals that specifically told coders not to use the reporting and interpretation CPT codes when billing for nuclear stress tests. Billing staff at Engage Medical learned that by merely adding these codes it could increase the amount Medicare and other federally insured medical programs would pay to the medical provider clients.
In 2009, Engage Medical contracted with Advanced Cardiology Center and its three physician owners: Pankaj Lal, M.D., Mubashar Choudry, M.D. and Moshin Ijaz, M.D. Advanced Cardiology hired Engage Medical to re-bill claims for nuclear stress tests that Advanced Cardiology had already performed, billed and been paid for, in some cases years before. Advanced Cardiology gave Engage Medical access to Advanced Cardiology’s billing files and Engage Medical isolated the instances where Advanced Cardiology had performed and been paid for nuclear stress tests. Using its false billing model, Engage Medical resubmitted the nuclear stress tests for payment a second time, using the CPT codes that reflected a distinct or repeat service, and also added the unbundled code for interpretation. Unlike the internists, however, Advanced Cardiology did not retain Engage Medical to bill claims after February 2010 and thus Advanced Cardiology did not give Engage Medical access to Advanced Cardiology medical records of its patients beyond that time. Rather, Advanced Cardiology employed the Engage Medical model itself, with its own billers applying the false CPT codes to new tests that the cardiologists at Advanced Cardiology performed.
The claims settled by this agreement are allegations, and there has been no determination of liability. The settlement was the result of an investigation by the United States Attorney’s Office for the District of Maryland, with assistance from the Office of Inspector General for the Department of Health and Human Services. Assistant U.S. Attorney Allen Loucks handled the case, and auditor Mary Hammond and investigator Steve Capobianco in the U.S. Attorney’s Office, assisted in this investigation.
Takoma Park Man Pleads Guilty in Two Residential Mortgage Fraud SchemesRead the Press Release
Used Other Individuals’ Identities and False Income and Credit Information to Induce Lenders to Provide Home Mortgage Loans
Greenbelt, Maryland – Mokorya Cosmas Wambura, age 45, of Takoma Park, Maryland pleaded guilty today to conspiring to commit wire fraud and aggravated identity theft arising from two separate residential mortgage fraud schemes.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General - Office of Investigations; Acting Inspector General Michael P. Stephens of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Kathy Michalko of the United States Secret Service – Washington Field Office; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) .
According to his plea agreement and court documents, from March 2007 to November 2008, Wambura conspired with real estate agent Tibakweitira and others to use the identity of another individual without lawful authority to buy residential property. For example, in June 2008, Wambura used the stolen identity of another person, along with false income statements and credit information, to buy a residence in Hyattsville, Maryland. The conspirators inflated the value of the property by creating false documents for repairs and renovations that were never made. After the settlement, the conspirators divided up the cash received for the purported repairs.
During the second fraud scheme from July 2007 to May 2009, a conspirator sold his residence in Silver Spring, Maryland to Wambura, and attempted to conceal the scheme by using the identity of Wambura’s friend and roommate, without lawful authority, as the purported buyer. Wambura again made false statements about the buyer’s assets and income. For example, Wambura listed a joint credit union account held by Wambura and his friend as an asset, which Wambura created without his friend’s knowledge. After securing the mortgage and obtaining possession of the residence, Wambura continued to use his friend’s stolen identity to become a Section 8 landlord for federally subsidized funds. Wambura received portions of the monthly rent paid by the tenant. Wambura and his conspirator also caused $29,186 in government housing program assistance checks, payable to Wambura’s friend, to be mailed to Wambura.
As a result of the two conspiracies, Wambura caused between $400,000 and $1 million in losses to federally-insured financial institutions.
Wambura faces a maximum sentence of 30 years in prison and a $1 million fine on each of two wire fraud conspiracy counts, and a mandatory minimum of two years for aggravated identity theft consecutive to any other sentence. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for June 16, 2014 at 11:30 a.m.
Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 37, of Severn, Maryland, previously pleaded guilty to the conspiracy and to aggravated identity theft, and has agreed to forfeit a Range Rover vehicle. Tibakweitira is scheduled to be sentenced on May 6, 2014, at 1:00 p.m.
Wambura and Tibakweitira are both detained pending their sentencings.
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 HUD-OIG, FHFA-OIG, Treasury OIG, U.S. Secret Service and Baltimore HSI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin DiGregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who are prosecuting the case.
Bank Robber Pleads Guilty to Five RobberiesRead the Press Release
Admitted Committing Two Additional Bank Robberies
Baltimore, Maryland – Rodney Scott Bush, age 49, of Fort Washington, Maryland pleaded guilty today to conspiracy to commit bank robbery and five bank robberies. As part of his plea agreement, Bush also admitted committing two additional bank robberies.
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; Anne Arundel County Police Chief Kevin Davis; and Chief Mark A. Magaw of the Prince George’s County Police Department.“This case highlights the importance of the initial response of patrol officers,” said Anne Arundel County Police Chief Kevin Davis. “This repeat offender is in jail because an alert patrol officer observed suspicious activity while responding to a call.”
According to his plea agreement, from December 8, 2012 through July 17, 2013, Bush committed seven bank robberies, stealing a total of $38,894. In each robbery, Bush handed the teller a note demanding money. Most of the notes also stated that Bush had a gun or threatened some other harm and Bush often implied that he had a weapon. The banks were located in Upper Marlboro, Lanham, Severna Park, Gambrills, Laurel, Bowie, and Glen Burnie, Maryland.Moments after the robbery in Glen Burnie on July 17, 2013, an Anne Arundel County Police officer responding to the bank robbery saw Bush in the passenger seat of a vehicle removing the distinctive sweater that he wore during the robbery. The vehicle was being driven by a woman, later identified as Jacqueline Isaacs. The officer attempted to conduct a traffic stop, but Isaacs sped off and led police on a high speed pursuit. Isaacs continued to flee from the officers for more than ten miles, eventually crashing into a van. Officers arrested Bush and Isaacs who were taken to the hospital and treated for injuries sustained during the crash.
The vehicle was searched and officers recovered the mobile phones used by Bush and Isaacs, the demand note, shirt and glasses worn by Bush during the robbery, and cash stolen from the bank.
Bush faces a maximum sentence of 20 years in prison on each of the five bank robbery counts; and a maximum of five years in prison for the conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for July 9, 2014 at 10:00 a.m.
Jacqueline Isaccs, age 55, also of Fort Washington, pleaded guilty to the July 17, 2013, bank robbery and is scheduled to be sentenced on April 18, 2014 15 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Julie D. Podlesni, who are prosecuting the case.
Armed Bank Robber Sentenced to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Loushawn Adaryl Robinson, a/k/a “Cadillac,” age 36, of Baltimore, Maryland, today to 151 months in prison followed by five years of supervised release for armed bank robbery. Judge Blake ordered Robinson to pay restitution of $23,639 and found that Robinson was a career offender, based on two previous convictions for robbery with a deadly weapon and armed robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Carroll County Sheriff Kenneth Tregoning.
According to Robinson’s plea agreement, on September 29, 2012, Robinson and two other men, one of them armed with a gun, robbed the Carroll Community Bank in Sykesville, Maryland. During the robbery, Robinson forced one of the tellers to take him to the vault, but the teller was unable to open the vault. Robinson subsequently zip tied the teller’s hands while she was on her knees in the vault, and closed the door. The robbers fled the bank with $28,411, but dropped $4,772 in the parking lot, which was recovered by law enforcement. Law enforcement followed the robbers and during the course of the pursuit, Robinson crashed his car into a tree near an elementary school and was arrested. Law enforcement recovered the wig Robinson had worn during the robbery, zip ties, and a key to the vault which had been taken from the bank.United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, Maryland State Police and Carroll County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Gregory R. Bockin, who prosecuted the case.
Two Garrett County Developers Indicted for A $3.7 Million Bank Fraud SchemeRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Samuel R. VanSickle, a/k/a “Donald Blunt,” “Jacob Aiken,” “Allen Helms,” “Paul Walsh,” and “William Hall, Attorney,” age 49, of Accident, Maryland, and Louis W. Strosnider, III, age 47, of Oakland, Maryland, today on charges related to a $3.7 million bank fraud conspiracy.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the six count indictment, Samuel R. VanSickle and Louis W. Strosnider, III owned and developed property in Garrett County, Maryland. VanSickle controlled the mailbox at an address in Accident, Maryland, and rented a post office box, also in Accident. VanSickle used a number of different business names, including Freedom Church, Gospel Church, Equity Exchange, Unity Mortgage, Impartial Lenders, Noble Forest Consultants and used the names Donald Blunt, Allen Helms, Jacob Aiken, Paul Walsh, and William Hall (an attorney). Strosnider operated Stony Brook Development Company, LLC, a Maryland corporation located in McHenry, MD.
The indictment alleges that from December 31, 2001, through June 30, 2004, VanSickle and Strosnider devised a scheme to fraudulently obtain money and property from financial institutions. Specifically, the indictment charges that VanSickle purchased properties, concealed the ownership and control of the properties using false names and identities, inflated the value of the properties through fraudulent loans and mortgages; entered into sales contracts with Strosnider at inflated prices with fictitious down payments; and then Strosnider obtained bank loans with fraudulent collateral to finance sales of the properties. In this way, the indictment alleges that entities controlled by VanSickle sold the properties to Strosnider, with the purchase prices actually being paid to VanSickle in the name of companies he controlled. The indictment alleges that VanSickle and Strosnider purchased two properties using these methods.
The indictment also seeks forfeiture of $3,751,000 and 40 properties held in VanSickle’s name or in the names of nominees in Maryland, West Virginia and Pennsylvania.
The defendants face a maximum sentence of 30 years in prison for the conspiracy and for each of five counts of bank fraud. An initial appearance has been scheduled for February 28, 2014 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 FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Joyce K. McDonald, who is prosecuting the case.
Gunman in Armed Robbery Spree Exiled to 25 Years in PrisonRead the Press Release
Brandished a Gun in All 22 Robberies and Shot a Customer in One Robbery
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Hatratico Smith, age 48, of Baltimore, Maryland, today to 25 years in prison, followed by five years of supervised release, for a series of armed commercial robberies committed from January through June, 2012. Smith brandished a gun in all of the robberies and shot a customer during one of the robberies.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore Police Commissioner Anthony W. Batts.
According to Smith=s plea agreement, from January 22, 2012 through June 11, 2012, he conspired with Rico Bias, Monzell Lee and others, to commit 22 robberies of convenience stores, fast food restaurants, and other businesses. Smith brandished a gun during the robberies, and on two occasions fired the gun, including on February 21, 2012, which resulted in the shooting of a customer. Lee participated in four of the robberies and Bias admitted that in addition to checking out the stores prior to his codefendants entering the businesses to commit the robberies, he obtained and drove the get away car in each of the robberies. The defendants have been in federal custody since their arrests.
Rico Bias, age 34, and Monzell Lee, age 20, both of Baltimore, pleaded guilty to their roles in the robberies. Bias was sentenced to 185 months in prison and Lee was sentenced to nine years in prison for the four robberies in which he participated.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Baltimore County Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who prosecuted the case.
Bank Robber Sentenced to 18 Years in PrisonRead the Press Release
Committed Three Bank Robberies and Robbed a Store Where He Was Employed While on Supervised Release for Previous Federal Bank Robbery Convictions
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Reginald Anthony Lasley, age 41, of Silver Spring, Maryland, today to a total of 18 years in prison followed by three years of supervised release. Judge Messitte sentenced Lasley to 16 years for the robbery of a store and three bank robberies and an additional two years in prison for violating his supervised release in connection with previous federal bank robbery convictions. Judge Messitte also ordered Lasley to pay restitution of $29,150.
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 Lasley’s plea agreement, on February 12, 2012, he robbed the pharmacy where he was employed. During the robbery Lasley threatened the manager at knifepoint, bound the manager with duct tape and took approximately $18,000 from the safe before leaving the store. Two months later, Lasley committed three bank robberies. In each bank robbery, Lasley presented the teller with an intimidating note demanding that the teller give him all the $100s, $50s, and $20s, and fled the bank in a black van driven by another individual. Specifically, on April 6, Lasley robbed a SunTrust bank in Landover, Maryland, of $4,810; on April 9 Lasley robbed a SunTrust bank in Upper Marlboro, Maryland of $5,370; and on April 11, Lasley robbed an M&T bank in Largo, Maryland of $1,390.Shortly after the robbery of the M&T bank, Lasley was apprehended by law enforcement. At the time of his arrest, officers recovered from Lasley the demand note used in the M&T bank and the money stolen in the robbery. Officers also recovered from the black van another bank robbery demand note and the hat and shirt Lasley wore during the M&T robbery.
At the time of the 2012 robberies, Lasley was on supervised release in connection with previous federal bank robbery convictions.
United States Attorney Rod J. Rosenstein praised the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Adam K. Ake, who prosecuted the case.
Former Executive of Power Generation Company Charged with Fraud and Money LaunderingRead the Press Release
Indictment Alleges an Eight Year Scheme to Obtain Over $5 Million in Kickbacks from Three Foreign Power Companies to Secure More Than $2 Billion in Lucrative Contracts
Greenbelt, Maryland - The former principal vice president of Bechtel Corporation and General Manager of the Power Generation Engineering and Services Company (PGESCo), Asem Elgawhary, age 72, of Potomac, Maryland, was indicted today on charges that he defrauded his former employers, laundered the proceeds of the fraudulent scheme and violated federal tax laws.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Richard Weber of the Internal Revenue Service - Criminal Investigation.
“As today’s indictment alleges, this high-ranking executive took millions of dollars in kickbacks from power companies in exchange for preferential treatment and, in doing so, defrauded his former employer, other companies who were playing by the rules, and U.S. tax authorities,” said Acting Assistant Attorney General Raman. “He then allegedly concealed his kickback scheme by hiding the payments in off-shore bank accounts, giving false information to his former employer, and destroying evidence. The Justice Department is committed to prosecuting not just the companies and individuals who pay bribes and kickbacks, but also those who solicit and accept them.”
“Mr. Elgawhary has been charged with using his corporate position for his own personal gain,” stated IRS-CI Chief Weber. "No matter what your career or position is in a corporation, all U.S. citizens are obligated to comply with the tax laws. When individuals and corporations deliberately fail to comply, IRS Criminal Investigation agents conduct investigations and recommend prosecution to the Department of Justice.”
The eight count indictment alleges that from 1996 to 2011, Elgawhary was assigned by Bechtel – a U.S. corporation engaged in engineering, construction and project management – to be the general manager at PGESCo, a joint venture between Bechtel and a state-owned and state-controlled electricity company (EEHC). PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC. The indictment alleges that Elgawhary used his position at PGESCo to provide preferential treatment to three power companies attempting to secure projects with EEHC in exchange for kickbacks from those power companies and their third-party consultants. The power companies and their consultants allegedly paid over $5 million of kickbacks into off-shore bank accounts under the control of Elgawhary, including Swiss bank accounts. In return, the power companies secured more than $2 billion in lucrative contracts.
The indictment alleges that Elgawhary then also attempted to conceal the kickback scheme and the proceeds he obtained from it. Elgawhary allegedly sent to Bechtel executives and members of the PGESCo board of directors in Maryland documents and “Representation Letters” that falsely represented that he had no knowledge of any fraud or suspected fraud at PGESCo and that there were no violations or possible violations of law or regulations whose effects were material and should have been considered for disclosure in PGESCo’s financial statements. In addition, when Elgawhary was interviewed by counsel for Bechtel in April 2011, he claimed that he never received money from power companies or their consultants and that he did not maintain control over any foreign bank accounts. With the help of other employees at PGESCo, Elgawhary also allegedly caused evidence about the kickback scheme to be deleted and destroyed.
Elgawhary allegedly used money from one of his Swiss bank accounts to purchase a $1.78 million home in Maryland for two close family members. In order to conceal the origin of the money, however, Elgawhary and others made it appear that the money was an unsecured loan from a marketing company owned and operated by another relative.
Elgawhary also allegedly obstructed and impeded the administration of U.S. tax laws by falsely claiming that he maintained only one foreign bank account and denying that he that he received any income from any foreign bank account. Elgawhary also allegedly failed to report any of the kickbacks as income for the tax years 2008 through 2011.
The mail and wire fraud counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The tax count carries a maximum penalty of three years in prison and a fine of $5,000.
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 expressed his appreciation to law enforcement counterparts in Switzerland, Germany, Italy and Cyprus in this matter. Significant assistance was also provided by the Department of Justice Criminal Division’s Office of International Affairs.
Mr. Rosenstein commended the FBI and IRS-Criminal Investigation for their work in the investigation and thanked Assistant U.S. Attorney David Salem from the District of Maryland and Assistant Chief Daniel S. Kahn of the Department of Justice Criminal Division’s Fraud Section, who are prosecuting the case.
St. Mary’s County Cocaine Dealer Sentenced to over 15 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Damon Jerome Estep, a/k/a “Country”, age 38, of California, Maryland, today to 188 months in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute five kilograms or more of cocaine hydrochloride and 280 grams of cocaine base, commonly known as crack.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and St. Mary’s County Sheriff Tim Cameron.
According to his plea agreement, from February 2012 to April 2013, Estep conspired with Alrahman Allen, Jamar Holt and Jeffrey Berry to distribute cocaine and crack in southern St. Mary’s County. Holt provided Allen with cocaine and other drugs and then regularly called Estep to coordinate the delivery of cocaine to Estep, Berry or others from St. Mary’s County.Nearly every week, Estep, Berry and others met Allen in the Glen Burnie area and paid Allen for one-fourth, one-half and one kilogram quantities of cocaine for further distribution in St. Mary’s County by Estep and others at Estep’s direction. Once Berry and others transported the cocaine back to their stash locations in St. Mary’s County, Estep and others would cook portions of the cocaine into crack, and distribute the cocaine and crack throughout southern Maryland at Estep’s direction.
Estep stored the powder and crack cocaine in several locations, including 20141 Point Lookout Road in Great Mills, and 18310 Three Notch Road in Lexington Park. Estep and others sold the drugs at locations in southern Maryland, including at a building located at 15076 Point Lookout Road. The distribution of between five and 15 kilograms of cocaine, and between 280 and 840 grams of crack, were reasonably foreseeable to Estep.
Co-defendants Alrahman Sharif Allen, a/k/a “Rock” and “Rahman Allen;” Jamar Holt, a/k/a “Reds” and “Jamal Holt;” and Jeffrey Kirk Berry, a/k/a “Kojack,” previously pleaded guilty to their participation in the conspiracy and await sentencing.
United States Attorney Rod J. Rosenstein praised the DEA and the St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah Jo Bressack and James A. Crowell, IV who prosecuted the case.
Prince Frederick Physician Admits to Illegal Drug Distribution and Health Care Fraud SchemeRead the Press Release
Prescribed Drugs Without a Medical Exam and Knowing That His Patients Were Selling or Abusing the Drugs; Filed Fraudulent Insurance Claims for Services That Were Not Rendered or Medically Necessary
Greenbelt, Maryland - Physician George Mathews, age 76, of Prince Frederick, Maryland, pleaded guilty today to the illegal distribution of drugs and health care fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Thomas Frost of the U.S. Postal Service Office of Inspector General, Major Fraud Investigations Division; Special Agent in Charge William R. Jones, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Calvert County Sheriff Mike Evans; St. Mary=s County Sheriff Tim Cameron; Charles County Sheriff Rex Coffey; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Drew Grimm, Office of Personnel Management, Office of Inspector General; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“Today’s guilty plea serves as a warning to those who would defraud the Department of Labor’s Office of Workers’ Compensation Programs by charging for medical services that were not rendered or not medically necessary,” said Bill Jones, Special Agent-in-Charge of the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. “The OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to investigate crimes of this nature.”
“The workers’ compensation program benefits thousands of Postal Service employees who have received legitimate on-the-job injuries,” said Thomas Frost, Special Agent in Charge, U.S. Postal Service Office of Inspector General, Major Fraud Investigations Division. “By submitting false claims to this program, Dr. Mathews undermined the system and contributed to the growing epidemic of health care fraud. This resolution marks a significant effort in the on-going battle against workers’ compensation fraud. We appreciate the partnership of the DEA, the U. S. Department of Labor- OIG, and the U.S. Attorney’s Office, District of Maryland on this case.”
According to his plea agreement, Mathews had medical offices in Prince Frederick and in Waldorf, Maryland. From January 2007 to July 2011, Mathews repeatedly wrote prescriptions for drugs that he knew were without any legitimate medical purpose. On a number of occasions, Mathews prescribed drugs after being made aware that his patients were either selling or abusing the prescribed drugs. In addition, numerous patients stated that Mathews performed little or no examination before writing the prescriptions.
In April 2011, a DEA undercover law enforcement officer walked in to Mathews’ Prince Frederick medical office without an appointment. After paying the receptionist an office visit fee of $120, Mathews saw the undercover officer and gave him a prescription for 60 pills of oxycodone. Mathews explained that he had a problem with his DEA registration and told the undercover officer that he could only get his prescription filled at a particular pharmacy. Mathews never performed any type of routine medical testing of the undercover officer before filling out the prescription.
During the time that Mathews filled prescriptions without any legitimate medical purpose, Mathews billed the Department of Labor Office of Workers’ Compensation Programs (OWCP) and other health care benefit programs for services that were not rendered or were not medically necessary. Mathews billed all of his “repeat” patients to a particular medical code 99214, regardless of the actual content of the medical visit or examination. Most of Mathews’ patients’ repeat visits lasted no more than five minutes and involved no physical examination. OWCP provides guidance to physicians that a patient visit which can be properly billed at a code 99214 will typically involve approximately 25 minutes face to face with the patient.
As a result of the criminal conduct, Mathews received at least $615,000 from either patients who received drugs without there being a medical necessity, or from OWCP and other health care benefit programs for services that were not rendered or were not medically necessary.
Mathews and the government have agreed that if the Court accepts the plea agreement, Mathews will be sentenced to two years of probation with a condition requiring home detention for all two years. Mathews has also agreed to forfeit $615,000. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for April 21, 2014, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the DEA – Washington Division Office, Tactical Diversion Squad; U.S. Postal Service - OIG; Department of Labor - OIG; Charles, St. Mary=s and Calvert County Sheriff’s Offices, Defense Criminal Investigative Service, OPM-OIG and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao, Mushtaq Z. Gunja and Sujit Raman, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Car Repair Shop Owner and His Son Admit to Drug Trafficking and Armed Commercial BurglariesRead the Press Release
Sold Drugs from Paschall Auto Body Shop in Baltimore, and Robbed Businesses and Homes in Maryland, Virginia, West Virginia and Pennsylvania
Baltimore, Maryland –Chad Paschall, age 28, of Baltimore, pleaded guilty today to conspiring to distribute oxycodone and two counts of conspiring to commit bank burglary. His father, David Paschall, age 54, of Catonsville, Maryland, pleaded guilty yesterday to the drug and burglary conspiracies.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Howard County Police Chief William McMahon; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Special Agent in Charge Steven L. Gerido 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.
“This case dismantled an organization responsible for a wide range of criminal activity,” said U.S. Attorney Rod J. Rosenstein.
David Paschall operated Paschall’s Auto Body Shop, formerly located at 801 Desoto Road in Baltimore. According to their plea agreements, it was widely known that the car shop served as a marketplace for an assortment of illegal narcotics, including oxycodone, cocaine and heroin. David Paschall used more than five drug “brokers” to buy drugs almost every day at his shop which he would then either consume or sell for profit. As a leader in the drug conspiracy, he supervised others in the distribution of the drugs. In order to protect the drug conspiracy, David Paschall maintained many guns at the shop and sometimes carried a gun. It was reasonably foreseeable to David Paschall that this conspiracy distributed more than 59.70 grams of oxycodone, 200 grams of cocaine, and 80 grams of heroin from no later than 2010 to July 2013.
Chad Paschall was at the shop most every day, knew that the shop operated as a hub for drug sales and helped his father in brokering drug sales.
The defendants also admitted to committing commercial burglaries in Maryland, Virginia, West Virginia, and Pennsylvania. The defendants 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. The conspirators often stole or attempted to steal cash from ATMs.
The conspirators usually cut power lines, telephone lines, cables and other wires before entering a business. They used vise grips, sledgehammers, chopsaws, grinders and blow torches to enter the business, and then often waited – for several minutes or sometimes up to several hours – before ransacking the business of its valuable items. David Paschall admitted that he committed, or attempted to commit, dozens of commercial burglaries with one or more coconspirators. For example, David and Chad Paschall used a forklift at a salvage or junk yard located on Hawkins Point Road in Baltimore to pile several junk cars next to a rear upstairs balcony. They climbed up the cars and broke into the office off the balcony. They used the forklift to transport a safe from the office to the ground, where it was broken open and approximately $48,000 was stolen.
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 10 defendants charged in the drug and burglary conspiracies have pleaded guilty to their participation in the criminal activities. Charges remain pending against six 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 are prosecuting this Organized Crime Drug Enforcement Task Force case.
Anne Arundel County Drug Dealer Sentenced to over 17 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Donwand Cuppatino Harmon, age 37, of Annapolis, Maryland, today to 210 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin. Judge Hollander also ordered Harmon 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.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; 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.“Heroin is a powerful drug that is affecting communities, destroying lives and tearing apart families,” said Anne Arundel County Police Chief Kevin Davis. “I am committed to collaborating with our law enforcement partners on a local, state and federal level in an effort to rid our neighborhoods of this drug and to take distributors off the streets and this case is an example of that.”
According to Harmon’s plea agreement, from at least August 2012 until August 2013, Donwand Harmon conspired with Damian Brown and others to distribute heroin in the Baltimore and Anne Arundel County, Maryland areas.
As part of the conspiracy, Harmon obtained and distributed bulk quantities of heroin to a number of individuals in the area. On five occasions from August 30, 2012 through October 18, 2012, investigators purchased a total of 49.8 grams of heroin directly from Harmon. On November 17, 2012, a confidential source contacted Harmon about another purchase of heroin. Harmon was not available but agreed to send an associate to complete the sale. At that meeting, the confidential source purchased approximately 10.2 grams of heroin from Damian Brown. On three occasions from December 12, 2012 through April 9, 2013, Harmon arranged for the confidential source to purchase an additional 42.1 grams of heroin directly from Damian Brown.
On June 13, 2013, agents tracked Mr. Harmon to a motel in Baltimore. There, agents saw a female previously associated with Mr. Harmon leaving the hotel. She drove slowly around the parking lot, looking at all the cars parked there, then pulled into a parking spot. Agents saw Harmon leaving the motel and ran after him, but Harmon got away. The woman got out of her car in a crouched position, and Agents saw her remove a black duffel bag from the rear driver’s side of the car and place the bag under the car next to hers. Agents retrieved the bag, which contained a black nylon holster, a box of ammunition, a black loaded magazine for a Glock handgun, and several digital scales that appeared to have residue on them.
Agents obtained a search warrant for Harmon’s room at the motel and recovered: a black men’s wallet with a Maryland identification for Donwand Harmon; a set of car keys for a Porsche driven by Harmon; $16,000 in cash; and three large bags containing approximately 1.7 kilograms of heroin.
On August 23, 2013, Deputy U.S. Marshals tracked Mr. Harmon to a residence in Suitland, Maryland, an arrested him as he left the home. A search incident to arrest revealed keys to the residence, $845 in cash, and a Washington, D.C. driver’s license in the name of Paul Simmons with Mr. Harmon’s picture. Members of the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives then obtained and executed a search warrant at the residence. From the first floor of the home law enforcement recovered, among other things: $10,050 in cash, wrapped in foil, and approximately 205.5 grams of crack cocaine found in the freezer; one 20-ton shop press with kilogram and half-kilogram sized molds with cocaine and heroin residue, approximately 516 grams of heroin in the mold on the press, and two bags containing approximately 625.1 grams of heroin that was found in the dining room closet. On the second floor law enforcement recovered a loaded .45 caliber handgun, a .loaded .357 caliber handgun, and a loaded 5.56 caliber firearm, as well as additional ammunition for all three guns; over six kilograms of cocaine; seven cell phones; $1,000 in cash; men’s jewelry and watches; and tally sheets for suspected narcotics transactions.
Harmon admitted that during the conspiracy he was responsible for distributing at least 1 kilogram of heroin.
Damian Brown pleaded guilty to the same charge 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 are prosecuting this Organized Crime Drug Enforcement Task Force case.
Two Retailers Plead Guilty to Food Stamp FraudRead the Press Release
Six Retailers Have Pleaded Guilty to Date
Baltimore, Maryland –Abdullah Aljaradi, age 52, and Ahmed Ayedh Al-Jabrati, age 58, both citizens of Yemen residing in Baltimore, have each pleaded guilty to wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Aljaradi’s guilty plea was entered on February 5th and Al-Jabrati entered his plea today.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Aljaradi and Al-Jabrati operated two convenience stores, Second Obama Express and D&M Deli and Grocery, located next door to each other at 901 Harlem Avenue in Baltimore. According to their plea agreements and court documents, the stores participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Aljaradi and Al-Jabrati knew that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from October 2010 to July 2013, Aljaradi and Al-Jabrati exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for themselves.
The indictment alleges that as a result of these unlawful cash transactions, Aljaradi and Al-Jabrati obtained more than $2 million in payments for food sales that never occurred. While the Court will determine the actual amount of the financial loss for the purpose of calculating the sentencing guidelines, restitution, and forfeiture, any money judgment ordered by the Court will not be less than $259,344.15, the funds seized from the stores and from two bank accounts associated with the stores.
Aljaradi and Al-Jabrati each face a maximum sentence of 20 years in prison. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for Aljaradi on April 30, 2014, at 2:00 p.m. and for Al-Jabrati for March 25, 2014 at 1:00 p.m.Nine retail store owners or operators, including Aljaradi and Al-Jabrati, were indicted in September 2013 on federal charges of food stamp fraud and wire fraud in connection with schemes to illegally redeem food stamp benefits in exchange for cash. Dae Cho, age 67, and her son Hyung Cho, age 40, both of Catonsville, Maryland, pleaded guilty to food stamp and wire fraud arising out of the operation of K&S Food Market located at 3910 W. Belvedere Avenue and are scheduled to be sentenced on February 21, 2014. Amara Cisse, age 50, who owned Simbo Food Mart, located at 2103 West Pratt Street in Baltimore, and his wife Fanta Keita, age 45, who worked at the store, both of Windsor Mill, Maryland, have also pleaded guilty to food stamp fraud and are scheduled to be sentenced on March 6, 2014, at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.
Sabrena Karim Indicted for Preparing Bankruptcy Documents in Contempt of Court OrderRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Sabrena Karim, age 63, of Baltimore, Maryland, on charges that she is in contempt of a court order permanently enjoining Karim from preparing or assisting anyone in preparing any document for filing in any bankruptcy court.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; U.S. Trustee Judy Robbins and the Baltimore Office of the United States Trustee Program, the Department of Justice component that supervises the administration of bankruptcy cases; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
The four count indictment alleges that on March 21, 2011, at a hearing attended by Karim, a United States Bankruptcy Judge for the District of Maryland issued a verbal Order permanently enjoining Karim from acting as a bankruptcy return preparer and from accepting any money for preparing or assisting in the preparation of any document to be filed in any bankruptcy court. The Judge followed up with a written Order, which repeated the findings and prohibitions. The written Order was mailed to Karim’s address on March 31, 2011.
Despite that Order, a subsequent Civil Contempt Order, and two visits from a Special Agent with the Federal Bureau of Investigation advising Karim that she was prohibited by the Bankruptcy Court’s Order from acting as a bankruptcy return preparer or otherwise assisting or advising anyone in connection with their bankruptcy matters, the indictment alleges that Karim continued to prepare bankruptcy petitions and other documents for filing in the Bankruptcy Court.
No court appearance is currently scheduled for Karim, who is released under the supervision of U.S. Pretrial Services.An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the U.S. Trustee’s Office and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.
Former Rosedale Resident Sentenced to 27 Years in Prison for Armed Robbery of A Business Resulting in the Owner’s DeathRead the Press Release
Robbers Stole $11,000 and Left Victim Bound and in Obvious Pain
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Pedro Rodriguez Garcia, age 35, formerly of Rosedale, Maryland, to 27 years in prison followed by three years of supervised release for conspiring to commit, and committing, an armed commercial robbery, and brandishing a gun during the robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore City Police Department; Chief James W. Johnson of the Baltimore County Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore County State’s Attorney Scott Shellenberger; Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and Maryland Attorney General Douglas F. Gansler.
“Superb law enforcement coordination brought the defendant to justice for the armed robbery that resulted in the tragic death of Constantine Frank,” said U.S. Attorney Rod J. Rosenstein.
According to evidence presented at the five day bench trial, Garcia participated in a robbery planned by co-defendant Nikolaos Mamalis. Mamalis recruited Garcia, Daniel Chase and others to rob Constantine Frank, the owner of Precision Vending located on S. Lakewood Avenue in Baltimore. Mamalis knew the owner socially and from prior business dealings, and he was familiar with the physical layout and security at Precision Vending from previous visits with Mr. Frank. On July 29, 2009, after Mamalis advised his co-conspirators that Mr. Frank was alone inside, Garcia and Chase entered the business disguised as package delivery men. Chase took out a gun from a false package they had brought inside, brandished the weapon and then gave it to Garcia who used the gun to hold Mr. Frank captive. The two robbers also used zip-ties and duct tape to restrain the victim while Chase searched the business for cash, stealing over $11,000. Knowing that Mr. Frank would recognize him, Mamalis waited outside the building and received periodic reports from Chase using prepaid wireless phones which Mamalis and Garcia had previously purchased.
The robbers left Mr. Frank bound, knowing that he was sweating profusely and in obvious discomfort. Shortly after leaving, Chase called one of Mr. Frank’s other businesses and said: “Your boss is in his office, and he is not doing so good.” Mr. Frank had suffered a stroke by the time officers found him conscious, but still in physical restraints and unable to speak. Mr. Frank was listed in critical condition when he arrived at the hospital and died less than two weeks later on August 11, 2009. The autopsy concluded that the cause of death was an intra-cerebral hemorrhage associated with stress resulting from the robbery and ruled the death a homicide.
After Mr. Frank’s death, Garcia fled the country and was captured by agents from the U.S. Border Patrol two years later.
Nikolaos Mamalis, age 56, of Edgewood, Maryland, was sentenced to 77 years in prison for conspiracy, three counts of commercial robbery and three corresponding firearms charges in connection with the Precision Vending robbery and two home invasion robberies in Maryland. Mamalis was convicted by a federal jury on February 3, 2011. Daniel Chase, age 67, of Browns Mill, New Jersey; pleaded guilty to his participation in a series of robberies planned by Mamalis and was sentenced to 141 months in prison.
United States Attorney Rod J. Rosenstein thanked the Federal Bureau of Investigation; Baltimore City and County Police Departments; New Jersey State Police; Baltimore City and County State’s Attorney’s Offices; U.S. Department of State’s Diplomatic Security Service and Maryland Attorney General’s Office for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorney Debra L. Dwyer 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.
Former Baltimore Police Officer Sentenced to 5 Years in Prison for Protecting A Heroin Dealer and Illegally Accessing Police Databases in Fraudulent Tax Refund SchemeRead the Press Release
Police Officer Heads to Federal Prison for “Disgraceful Violation of Public Trust”
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced former Baltimore Police officer Ashley Roane, age 26, of Pikesville, Maryland, today to five years in prison for extortion and aggravated identity theft.
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 Commissioner Anthony W. Batts of the Baltimore Police Department.“Ashley Roane sold her police powers for a few thousand dollars, in a disgraceful violation of the public trust,” said U.S. Attorney Rod J. Rosenstein. “Ms. Roane agreed to provide armed security for drug deals while in uniform in her patrol car, and to check a police database to identify informants. She also used a police database to obtain names, birth dates, and Social Security numbers of arrestees that could be used in a scheme to obtain fraudulent tax refunds from the IRS.”
According to her plea agreement, beginning in the fall of 2012, Roane and her roommate Erica Hughes engaged in a scheme whereby they provided the names and social security numbers of persons arrested by the Baltimore Police to an individual who could file false tax returns to obtain fraudulent tax refunds. Roane obtained the personal information of more than 30 people from law enforcement databases through her position as a Baltimore Police officer. Roane and Hughes provided the information to the individual, who they believed worked as a tax preparer, in addition to being a large scale heroin trafficker in Baltimore.On April 4, 2013, FBI agents watched as Roane arrived in her marked police patrol car for a meeting with the individual to obtain a fraudulent tax refund payment. As directed by the individual, Roane retrieved an envelope containing $2,500 from the source’s vehicle. At a recorded meeting on April 24, 2013, the individual went to Roane’s house and gave Roane an additional $1,500 that the FBI had provided to the individual, purported to be a fraudulent tax refund.
Roane admitted that she also provided protection for the individual’s purported drug trafficking. For example, on March 31, 2013, Roane told the individual that she had performed an unauthorized criminal check of one of the individual’s alleged associates, to determine if the associate was a police informant, and the individual was “clean.” After Roane agreed to provide protection during drug transactions, on April 30, 2013, the FBI set up a controlled purchase by the individual of white powder which resembled a kilogram of heroin. The FBI watched while Roane, in uniform, armed with her service gun, and in a marked police car, provided protection while the individual purportedly retrieved heroin from a vehicle provided by the FBI. Shortly thereafter, at a prearranged meeting, the individual paid Roane $500 for her protection. Roane agreed to provide such protection again in a future transaction involving multiple kilograms of heroin.
During the course of the schemes, Roane and Hughes received $5,250 from the individual in what Roane believed was proceeds of fraudulent tax refunds. Roane also received a total of $1,000 in exchange for providing protection to the individual during what Roane believed were kilogram-level heroin transactions.
Co-defendant Erica Hughes, age 26, of Pikesville, previously pleaded guilty to aggravated identity theft and was sentenced to two years in prison.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter M. Nothstein, who prosecuted the case.
Armed Drug Trafficker Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Anthony Joseph Harlow, age 30, of Dundalk, Maryland, today to 10 years in prison followed by five years of supervised release for possession with intent to distribute cocaine base and 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; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on December 20, 2012, Baltimore County Police officers stopped a car in which Harlow was traveling. The officers executed a warrant to search Harlow and seized a loaded pistol and 55 plastic baggies containing 20.4 grams of crack cocaine.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore County Police Department and Baltimore County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter J. Martinez, who prosecuted the case.
Correctional Officer Sentenced in Baltimore Jail Racketeering ConspiracyRead the Press Release
Correctional Officer Smuggled Drugs and Contraband for BGF into Baltimore Correctional Facility and Had Sex With a BGF Inmate
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie, Maryland, to 32 months in prison followed by three years of supervised release for racketeering conspiracy arising from the smuggling of drugs and contraband for members of the Black Guerilla Family (BGF) gang inside the Baltimore City Detention Center (BCDC).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to her plea agreement, Thornton worked as a correctional officer at BCDC and BCBIC from 2007 to 2013. She had a personal and sexual relationship with one of the leaders of the BGF inmates at BCDC. Thornton smuggled large quantities of contraband, including marijuana, tobacco and prescription pills, into BCDC on behalf of the BGF leader and other BGF leaders, including Steve Loney and Tavon White. Thornton also warned inmates of impending searches by prison officers.
Thornton is the third correctional officer to be sentenced in the conspiracy. Correctional officers Taryn Kirkland, age 23, and Adrena Rice, age 26, both of Baltimore, previously pleaded guilty to their participation in the conspiracy and were sentenced in January 2014, each to 42 months in prison. Six other correctional officers have pleaded guilty to the racketeering conspiracy and await sentencing.
BGF leader Tavon White, age 36, and BGF commander Steven Loney, age 24, also pleaded guilty to the racketeering enterprise. Loney was sentenced on January 14, 2014 to nine years in prison. Tavon White awaits his sentencing.
Tyrone Thompson, a/k/a Henry, age 46, who admitted to supplying prescription pills that were smuggled into the jail, will be sentenced tomorrow at 11:30 a.m.
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.Potomac Man Sentenced in $13 Million Mortgage Fraud SchemeRead the Press Release
Deliberately Avoided Learning the Truth as to the Fraudulent Nature of the Mortgages
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Jared Fanning, age 35, of Potomac, Maryland, today to 22 months in prison followed by three years of supervised release for wire fraud in connection with a scheme to fraudulently obtain mortgages worth approximately $13 million. Judge Messitte also entered an order that Fanning pay restitution and forfeiture of $108,355.21, the amount of loss attributable to him resulting from the scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; Acting Inspector General Fred W. Gibson, Jr., Federal Deposit Insurance Corporation; and Special Agent in Charge Cary A. Rubenstein, U.S. Department of Housing and Urban Development.
According to his guilty plea, from June 2006 through June 2007, Fanning helped real estate agents Michael Abobor, Daniel Ofei and others obtain mortgages for the agents’ clients. During that time, Fanning learned that the information provided by the agents for mortgage applications was probably false. For example, on multiple occasions, Fanning calculated debt-to-income and reported to the agents that the client had insufficient income. The agents responded immediately with “forgotten” monthly income of hundreds of dollars or more, leading Fanning to suspect that the additional income information supplied by the real estate agents was false. Despite Fanning’s concerns, he helped the agents obtain 24 mortgages totaling approximately $13 million.
According to evidence presented at the hearing, as a result of the fraudulent scheme, financial institutions suffered over $4.5 million in actual losses as a result of the financial transactions in which Fanning played a part.
Michael Abobor, age 38, and Daniel Ofei, age 39, both of Bowie, Maryland previously pleaded guilty to their roles in the conspiracy. Judge Messitte sentenced Abobor to 51 months in prison and ordered him to forfeit $2,026,205 and pay restitution of $1,832,650. Judge Messitte sentenced Ofei to 37 months in prison and ordered Ofei to pay restitution of $5,950,000. Two other co-conspirators of Ofei and Ababor in the broader scheme, Emeka Udeze, age 38 of Bowie, a licensed mortgage broker, and Shola Risikat Balogun, age 47, of Upper Marlboro, Maryland, have also pleaded guilty and await sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.United States Attorney Rod J. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
Five Indicted in Sex Trafficking ConspiracyRead the Press Release
Allegedly Prostituted a 14 Year Old Female
Baltimore, Maryland - A federal grand jury has indicted five individuals in a sex trafficking conspiracy. The following defendants are charged in the indictment:
Kenneth Ronald Robinson, a/k/a “Kenny” and “Keith,” age 52, of Baltimore, Maryland;
Eric Evans, a/k/a “E,” age 38, of Baltimore;
Jeffrey Clark, a/k/a “cripple on a Budget,” age 43, of Nottingham, Maryland;
Craig Judy, age 29, of Baltimore; and
Cheralyn Crawford, a/k/a “Rachel,” age 25, of Baltimore.The superseding indictment, which adds Evans as a defendant, was returned on January 28, 2014, and unsealed today upon Evans’ arrest. The original indictment against Robinson, Clark, Judy and Crawford was returned on October 1, 2013.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
The two count indictment alleges that from May 12 through June 17, 2013, the defendants recruited, transported, and received money by having a minor female, born in 1999, engage in commercial sex acts. The defendants instructed the victim on pricing for the different sexual activities. The defendants are also alleged to have taken photographs of the minor victim in sexually explicit poses and posted those photos in advertisements on an internet website to advertise her prostitution services. The defendants transported the minor victim to motels in the Towson, Maryland, area, where she was directed to meet with commercial sex customers to engage in prostitution.
The defendants face a maximum sentence of life in prison. An initial appearance has been scheduled at 2:45 p.m. for Evans in U.S. District Court in Baltimore. The remaining defendants had their initial appearances in October 2013. Robinson, Clark and Judy are detained and Crawford is released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Rachel M. Yasser, who are prosecuting the case.
Drug Dealer Sentenced to 12 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Terrin Tamal Anderson, age 29, of Waldorf, Maryland, today to 12 years in prison followed by eight years of supervised release for distributing cocaine base and being a felon in possession of a gun.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Chief of Police Robert Maclean of the U.S. Park Police; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, from April 14, 2011 to January 30, 2012 ATF and U.S. Park Police agents made eight controlled purchases of cocaine base from Anderson totaling 308.8 grams. Anderson received a total of $11,000 for the drugs. The drugs were sold in different locations in Prince George’s County, Washington, D.C. and Oxon Hill, Maryland. On June 6, 2013, a search warrant was executed at Anderson’s residence. Agents seized a pistol. Anderson had previously been convicted of a felony and was prohibited from possessing a gun.
United States Attorney Rod J. Rosenstein praised the U.S. Park Police, ATF, DEA and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.Federalsburg Man Sentenced to 40 Years in Prison for Producing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Scott Zalewski, age 31, of Federalsburg, Maryland, today to 40 years in prison followed by lifetime supervised release for two counts of producing child pornography. Judge Motz ordered that upon his release from prison, Zalewski 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; Caroline County Sheriff Randy Bounds; and Caroline County State’s Attorney Jonathan Newell.
According to the plea agreement, on at least three occasions from July through August 2011, Zalewski took sexually explicit photographs of a minor female, under 12 years of age, including several photographs documenting his sexual abuse of the girl, which he then emailed to another person. On January 2, 2013, the Zalewski’s live-in girlfriend provided police with photographs that contained sexually explicit images of the victim, which she reported finding in Zalewski’s email account.
Police arrested Zalewski later on January 2, 2013. A search warrant subsequently executed on Zalewski’s email account recovered digital copies of the sexually explicit pictures of the victim being sent to another individual. More than a dozen other emails were also seized, dating from July and August 2011, in which Zalewski was trading sexually explicit images of other children with other individuals.
A hard drive recovered from Zalewski’s house, and a laptop Zalewski’s ex-girlfriend previously turned over to police were also searched pursuant to a federal warrant. The hard drive contained forty-five images of child pornography, dating from approximately April 2008. On the laptop were records of chats in which the defendant discussed and exchanged child pornography with others, dating from approximately December 2006 through October 2007.
Text messages recovered from Zalewski’s cellular telephone showed discussion of child pornography with others on December 31, 2012, and January 1, 2013. Some text messages had image attachments, but the images were deleted and could not be recovered.Zalewski previously pleaded guilty in Caroline County Circuit Court to a second degree sex offense and to rape in the second degree and was sentenced to a total of 40 years in prison on those charges. Zalewski’s state and federal sentences will be served concurrently.
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, Caroline County Sheriff’s Office, and Caroline County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Justin S. Herring, who prosecuted the case.
Indictment Returned for Murder in National Park in MarylandRead the Press Release
Virginia Man Faces Manslaughter Charge for Death of Climber in Carderock
Greenbelt, Maryland - A federal grand jury has indicted David DiPaolo, age 31, of Bristow, Virginia, on charges of voluntary manslaughter in connection with the death of a person in Carderock, an area within the Chesapeake and Ohio Canal National Historical Park. The indictment was returned on January 29, 2014. DiPaolo is scheduled to have an initial appearance today before U.S. Magistrate Judge Charles B. Day, in Courtroom 2A, U.S. District Court in Greenbelt, Maryland, at 3:30 p.m.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Chief of Police Robert MacLean of the U.S. Park Police.
According to the indictment and other court documents, on December 28, 2013, the victim was found on a trail in Carderock with massive head injuries. The indictment alleges that after arguing with the victim, DiPaolo killed the victim by repeatedly striking the victim in the head with a blunt object. DiPaolo was arrested by New York State Police on January 8, 2014, and had an initial appearance in U.S. District Court in Albany, New York. DiPaolo was transported to Maryland by U.S. Marshals.
DiPaolo faces a maximum sentence of 15 years in prison for voluntary manslaughter.
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. Park Police for its work in the investigation and thanked the New York State Police, U.S. Attorney’s Office for the Northern District of New York, and the U.S. Marshals Service for their assistance. Mr. Rosenstein thanked Assistant United States Attorney Mara Zusman Greenberg, who is prosecuting the case.
Baltimore Man Indicted on Charges Related to the Sexual Exploitation of A MinorRead the Press Release
When Adults Promote Juvenile Prostitution, “That is Human Trafficking, Period”
Baltimore, Maryland – A federal grand jury returned a superseding indictment today charging Richard Ho Lee, age 32, of Baltimore, today with production of a visual depiction of a minor engaged in sexually explicit conduct, transportation with intent to engage in criminal sexual activity, receipt of child pornography, and aggravated identity theft.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“When an adult profits from sex with a child, that is human trafficking, period,” said Maryland U.S. Attorney Rod J. Rosenstein. “Children cannot consent to have sex for money, and any adult who encourages or profits from sexual exploitation of children faces a lengthy term in federal prison.”
According to the five count indictment, on five occasions in September and October of 2011, while Lee and the victim were in Baltimore, Lee purchased sex from the victim, who was only 16 years old. On October 31, 2011, Lee paid for a bus ticket for the victim to travel to Panama City, Florida, where Lee met her. Lee took the victim to a condo he had rented in Panama City and allegedly provided the victim with marijuana and alcohol. According to the indictment, Lee continued to have sex with the 16 year old victim, and encouraged her to engage in prostitution. From about December 22, 2011 to January 4, 2012, Lee placed at least 15 advertisements for the victim in the “escorts” and “body rubs” sections of an adult website. Lee used his personal credit card to pay for the advertisements, which stated, among other things, that the victim was an adult. Lee took provocative photographs of the victim in lingerie and underwear that he had purchased for the victim and attached some of the photos to the advertisements. Lee allegedly rented a second condominium where he told the victim to engage in prostitution. The indictment charges that the victim had sex with customers and agreed to provide Lee with a percentage of her earnings.
On January 9, 2012, Lee purchased a bus ticket for the victim, which she used to travel from Florida back to Maryland. In January 2012, Lee produced a counterfeit North Dakota state driver’s license for the victim, which indicated that she was 22 years old, and which Lee knew to contain the personal identifying information of another person. In May 2012, Lee allegedly took pornographic photographs of the victim inside his residence in Baltimore, some of which he sent via email over the Internet.
According to the superseding indictment, in June 2012, federal agents recovered Lee’s laptop computers and an external hard drive which contained over 600 images of child pornography, including images that depicted minors that are less than twelve years old and portrayed sadistic and masochistic conduct. Further, the laptop contained pornographic photographs that Lee had taken of the victim. In addition, the indictment alleges that Lee’s computer contained templates designed to be used for the production of counterfeit state driver’s licenses.
Lee faces a maximum sentence of life in prison for production of child pornography and for transportation with intent to engage in criminal sexual activity; a maximum of 20 years in prison for receipt of child pornography; and a mandatory sentence of two years in prison, consecutive to any other sentence, for aggravated identity theft. An initial appearance will be scheduled 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.
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 for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.
Baltimore Drug Kingpin Sentenced to 25 Years in PrisonRead the Press Release
Distributed Over a Ton of Cocaine in Baltimore in Less Than Two Years;
Authorities Seized Over $6.7 Million in Luxury Cars and Motorcycles, Jewelry, Cash and Bank Accounts, Clothing and Real EstateBaltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Garnett Gilbert Smith, a/k/a Abdule Jones a/k/a Brian Slack, age 44, of Baltimore, Maryland, today to 25 years in prison followed by three years of supervised release for conspiring to distribute and 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; Commissioner Anthony W. Batts of the Baltimore Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; and Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police.“Garnett Smith was one of the largest cocaine and heroin dealers to be arrested by the DEA in recent history,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “Smith was responsible for the distribution of more than 1,000 kilograms of cocaine during a period of less than two years. Smith will now spend the prime of his life in prison and will not be eligible for parole until he is a senior citizen,” added Tuggle.
According to his plea agreement and court documents, beginning in at least 2009, Smith acquired large quantities of cocaine from sources of supply in California and shipped the drugs for distribution in the Baltimore area. By 2010, he teamed up with codefendants Marc Collins and Michael White who supplied Smith with over 1,000 kilograms of cocaine from California. Shipments of the cocaine were typically in quantities of 60 to 80 kilograms each. The cocaine was often hidden within vehicles loaded on car carriers. Smith sent money for the payment of the drugs back to California in concealed compartments on the car carriers.Smith directed others in acquiring, transporting and delivering the cocaine, and in laundering the proceeds from the cocaine sales. In Los Angeles, expensive apartments with gated garages were used to store and test the cocaine prior to shipment. The gated entrances provided additional security from potential law enforcement surveillance. New cell phones were used on each trip to further conceal their illegal activities.
When White was arrested on unrelated federal drug charges in July of 2010, Collins replaced White as Smith’s supplier of cocaine until October 2011, when Arkansas state troopers stopped a car carrier loaded with $2,306,745 sent by Smith in Baltimore to be delivered to Collins in California. Between early 2010 and October 2011, at least 18 shipments of cocaine, consisting of between 60 to 80 kilograms per trip, had been made using the car carrier method.
Smith maintained a low profile after the Arkansas authorities seized the money, but by the summer of 2012, Smith again acquired drugs, shipping them to Maryland. Smith used co-defendant Antonio Johnson to ship kilogram quantities of cocaine through the U.S. Postal Service. In late August, Smith and Johnson sent a car to Maryland on a different car carrier. The vehicle was intercepted and four kilograms of heroin were found in a hidden compartment. Authorities made a controlled delivery of the heroin in September. Johnson retrieved the vehicle from the car carrier and delivered it to Smith in Baltimore. Both were arrested. The heroin had a wholesale value of $300,000.
Search warrants were executed at Smith’s residences in Maryland and Studio City, California. Money counters were seized, along with approximately $1.6 million in jewelry, $740,000 and hundreds of shoes. Authorities also seized two Can Am Spyder three wheeled motorcycles and 15 vehicles purchased by Smith, including a 2010 Aston Martin, a 2009 Lamborghini Murcielago, a 2008 Maybach and a Mercedes-Benz CL550, along with real estate and bank accounts worth over a million dollars. Smith paid no taxes, structured cash deposits to bank accounts to avoid financial reporting requirements and placed assets in the names of friends and relatives.
Including the cash seizure in Arkansas, approximately $6.7 million dollars in assets have been seized from Smith.
Marc Tyrone Collins, Michael Lee White and Antonio Lamont Johnson previously pleaded guilty to their participation in the conspiracy. Johnson was sentenced to 156 months in prison. Collins is scheduled to be sentenced on March 6, 2014. No sentencing date is currently scheduled for White.
United States Attorney Rod J. Rosenstein praised the DEA Baltimore and Los Angeles Field Offices, Maryland Natural Resources Police, the Baltimore Police Department and the Baltimore State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and David Sharfstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Leader in Scheme to Defraud Lowe’s Stores Sentenced to over 4 Years in PrisonRead the Press Release
Defrauded Lowe’s of More Than $464,000 by Calling Lowe’s Stores and
Pretending to be from Lowe’s IT DepartmentBaltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Lucerte “Lisa” Abellard, age 35, of Dobbs Ferry, New York, today to 53 months in prison, followed by three years of supervised release, for conspiracy to commit wire fraud in connection with a scheme to defraud Lowe’s stores. Judge Hollander enhanced Abellard’s sentence upon finding that she was a leader in the scheme and ordered Abellard to pay restitution of $410,989.95.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Brian Murphy of the United States Secret Service – Baltimore Field Office.
According to her plea agreement, Abellard called employees at Lowe’s stores around the United States, pretending to be from the “IT department” at Lowe’s headquarters, telling the Lowe’s employee that she received a report there were problems with a register at the Lowe’s store. She would then ask the employee to run a series of diagnostics on the register, often pretending to be able to see the tests remotely. The purported diagnostics ended with a “test” transaction that put a credit on a Lowe’s gift card – usually about $3,000 to $4,000. In reality, this “test” transaction put a credit onto a Lowe’s card possessed by Abellard or her co-conspirators. Abellard was usually successful in deceiving employees into believing she was calling from Lowe’s IT department because she was very familiar with Lowe’s internal procedures and systems – including the names of systems and databases routinely accessed by Lowe’s employees.
Abellard received a portion of value on the gift card she fraudulently credited from the co-conspirators to whom she sold the cards. After obtaining the fraudulent credit, Abellard would contact the co-conspirator that had paid her for the card, advise that person of the credit and that the card needed to be used quickly before Lowe’s detected the fraud. Phone records connect Abellard and her co-conspirators to the fraudulently obtained gift cards, and confirm that Abellard made most or all of the fraud calls to Lowe’s stores.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Justin S. Herring, who prosecuted the case.
Pennsylvania Man Pleads Guilty to Selling Counterfeit Goods, Including Counterfeit Military GoodsRead the Press Release
Defendant Imported Counterfeit Merchandise from China
Baltimore, Maryland – Hao Yang, age 25, of Bloomsburg, Pennsylvania, pleaded guilty today to conspiracy to traffic in counterfeit goods and counterfeit military goods.
The guilty plea 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.”
According to his plea agreement, from 2010 through the date of his arrest on June 19, 2013, Yang participated in a conspiracy to import and sell counterfeit goods and counterfeit military goods to customers in the United States. Yang and his co-conspirators created and operated several companies in Maryland, Pennsylvania, and elsewhere, to facilitate the conspiracy, including MS TECHNOLOGIES and AONE ELECTRONICS in Baltimore, Maryland; 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 specific 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 his 2010 Acura TSX sedan.The counterfeit circuits received by Yang, a number of which were military-grade, were supplied by one specific co-conspirator located in China. This co-conspirator sold, or attempted to sell, the circuits to various individuals, companies and government agencies in the United States. Yang then distributed the counterfeit circuits, via 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. To conceal the fact that the counterfeit circuits were being imported from China, Yang and his co-conspirator formed AARCORD GROUP to create the appearance that the co-conspirator’s company in China (from which the counterfeit circuits were being distributed) was actually based in the United States. By using counterfeit circuits, their malfunction or failure could likely have caused serious bodily injury or impaired military operations, personnel or national security.
Throughout the course of the conspiracy, 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. As was the case with the counterfeit circuits, Yang and these other co-conspirators concealed the fact that the goods they sold were counterfeit and produced in China and Hong Kong. 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 received hundreds of shipments from China and Hong Kong, including shipments involving integrated circuits. For example, in June 2012, Yang received two shipments of counterfeit military grade integrated circuits sent to ARRCORD Group at his residence and also received three shipments of other counterfeit goods, including DVDs and counterfeit computer software, sent to SMC Group at Yang’s residence. The Manufacturers Suggested Retail Price of the counterfeit DVDs and computer software was over $58,000.
As part of his plea agreement, Yang will be required to forfeit five bank accounts worth over $59,000, the 2010 Acura purchased with proceeds of the crime, and counterfeit computer software, DVDs, sports jerseys and other items with an approximate value of $280,720.
Yang faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 28, 2013 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christine Manuelian, who is prosecuting the case.Walkersville Man Sentenced to 9 Years in Prison in $9.2 Million Investment SchemeRead the Press Release
Caused Approximately $4 Million in Losses to Investors
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Larry Michael Parrish, a/k/a Michael Parrish, age 49, of Walkersville, Maryland today to nine years in prison, followed by three years of supervised release, for wire fraud arising from an investment scheme in which investors lost approximately $4 million by relying on Parrish’s false representations concerning his company IV Capital, Ltd. Judge Motz also ordered Parrish to pay restitution of $4 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, Parrish operated IV Capital, Ltd., which from November 2005 to October 2009, he described to potential investors as an investment and trading company. Parrish made a number of false representations to encourage potential investors to make investments with IV Capital. For example, Parrish falsely represented that IV Capital: traded stocks, bonds, currencies precious metals and other instruments on international exchanges; had $20 million or more under management; had established a minimum gross profit margin each month of 5%, which would be equally divided between the company and its individual investors; and employed a number of other traders and staff. In fact, the company had no employees aside from Parrish and one other trader hired as an independent contractor.
Parrish also falsely represented that: he and several partners had invested substantial funds of their own with the company; that all invested funds would be deposited in an escrow account and used solely to secure a line of credit from a financial institution, which would provide the actual working capital for IV Capital’s trading activities; and that IV Capital’s management of its accounts would be evaluated by top licensed professional third parties. In fact, Parrish had no partners and had not invested any of his own funds with IV Capital. The investors’ funds were directed to an offshore bank in Bermuda where they were not kept in an escrow account, but were instead used to generate funds for risky and highly unsuccessful trading activity, to make the “profit” payments of roughly 2.5% monthly back to the investors, and to supply funds for the personal use of Parrish and his family.
Out of the approximately $9.2 million in investor funds that were placed with Parrish and IV Capital between February 2006 and October 2009, Parrish allocated approximately $2.938 million to trading activity conducted by himself and the other trader, almost all of which was lost in making risky and unsuccessful investments in options and futures contracts. Another $5.2 million was used to make “profit” payments to IV Capital investors, and more than $1 million was used by Parrish for personal expenses, including purchases of clothing, furniture, electronics and other items, paying bills for rent, food and utilities, as well as paying for entertainment and vacation expenses, including a golf outing for himself and a number of friends in May 2008, and the purchase of a 2009 Harley Davidson FXDF motorcycle in September 2008.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI for its work in the investigation and praised Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case. The United States Securities & Exchange Commission (SEC) also conducted a civil securities fraud investigation of Parrish, and obtained a default judgment against him in a civil action filed in federal court in Denver, Colorado in September 2012.Violent Armed Bank Robber Exiled to 20 Years in PrisonRead the Press Release
Previously Shot a Person to Death and Committed Multiple Robberies;
Associated With the Black Guerilla FamilyBaltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Maurice Colbert, age 60, of Baltimore, Maryland, today to 20 years in prison followed by five years of supervised release for armed robbery, forced accompaniment and using a gun during the robbery. Judge Blake also ordered Colbert to pay restitution of $13,940.
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; Baltimore County State’s Attorney Scott Shellenberger; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief James W. Johnson of the Baltimore County Police Department.
According to evidence presented at his four day trial, on November 7, 2011, Colbert and another man stormed into the 1st Mariner Bank located at 176 Carroll Island Road in Middle River, Maryland, both armed with handguns. Colbert’s accomplice jumped on the counter next to the teller station. One of the bank employees, an assistant manager, collapsed on the floor in fear. Colbert ordered a bank employee to open a vault and ATM vaults. The employee told him she could not open the vaults because she only had the keys, not the code.
Colbert then opened three teller drawers and removed all of the money, including three dye packs as well as bait money. At times, Colbert pressed the gun into the employee’s back, and held her arm as he walked her around the bank with the gun in his other hand.
Meanwhile, the accomplice forced three tellers, the assistant manager and two customers, one of whom was elderly, into a small room used by customers to review in privacy the contents of safety deposit boxes. While packing them tightly into the room, the accomplice grabbed a teller by the neck, and grabbed another teller’s hair while placing his gun to the back of her head. He then tied most of them up tightly with zip ties. Just prior to closing the door, one of the robbers threw a liquid on the wall, the smell of which burned their noses and eyes. They fled with $31,153, although $17,213 was later recovered from the bank’s parking lot.
Shortly thereafter, the police were called and responded. An employee from a restaurant next door told a police officer that he had seen two men inside a vehicle with a sedan service company written on its side, parked in the lot by the bank. An FBI agent went to the location of the sedan service company in Baltimore and learned from the business owners that Colbert had used the vehicle that day. After patrolling the immediate area for a short while, the agent returned to the business and saw the vehicle parked outside the business location. Law enforcement saw red stains on the carpet of the vehicle, consistent with the red dye used in bank dye packs.
Colbert was found inside the sedan service company’s building and was taken to police headquarters. The sedan service owner showed police the money bills Colbert had given her, which were also stained red. Dye stains used by banks were also found on Colbert’s clothing and money in his pocket.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, ATF and Baltimore County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Judson T. Mihok and Gregory R. Bockin, who prosecuted the case.
Carjacker Exiled to over 9 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced James F. Honesty, age 25, Washington, D.C., today to 114 months in prison, followed by three years of supervised release, for carjacking and for being a felon in possession of a gun.
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
According to Green=s plea agreement, in the early morning hours of June 6, 2012, the victim was in the 600 block of Audrey Lane in Oxon Hill, Maryland. The victim had retrieved some items from her car and was walking home when Honesty pointed a shotgun at her face and demanded her car keys. The victim gave Honesty the keys and he drove away in the victim’s car. Honesty was apprehended after police chased the stolen vehicle from Washington, D.C. to Cheverly, Maryland. Honesty and the other occupants of the car ran away after the vehicle crashed and Honesty was arrested nearby. Police recovered a 16 gauge shotgun with a sawed off barrel and a .380 caliber semi-automatic handgun in the vehicle. Both firearms were loaded and had one round in the chamber. Honesty was prohibited from possessing a firearm due to a previous felony conviction.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department and Prince George’s County State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau, who prosecuted the case.
Baltimore Conspirator Sentenced to 4 Years in Prison for Two Separate Bank Fraud SchemesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Nelly Dadson, age 23, of Baltimore, today to four years in prison, followed by five years of supervised release, for conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes. Judge Grimm also ordered Dadson to forfeit and pay restitution of at least $251,745.52.
The guilty plea 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; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office.
According to her plea, from June 14, 2010 to March 11, 2013, Dadson, Paul Essel and others opened bank accounts in their own names and in the names of shell corporations that they controlled. Dadson, Essel and others used counterfeit checks that resembled convenience checks that had been stolen from mailboxes in Montgomery and Prince George’s Counties. The counterfeit checks contained names, addresses and account information that appeared on the convenience checks. Dadson deposited these counterfeit checks into accounts controlled by the conspirators and then withdrew funds from the accounts. Essel and other co-conspirators paid Dadson between $1,000 and $5,000 per check to deposit these checks and withdraw funds.
In addition, between June 14, 2010 and November 13, 2012, Dadson, Essel and others conspired to defraud The Home Depot, Inc. On multiple occasions, a conspirator placed an order by phone with a Home Depot store for flooring in amounts ranging from $2,500 to $8,000, using a stolen credit card number. Within a few days, a conspirator called to cancel the order and supplied the debit card number of a conspirator, including Dadson and Essel, requesting that the refund for the order be placed on the conspirator’s debit card. Dadson received 38 credits to her bank accounts totaling approximately $141,159.07, which she then withdrew and provided to Essel. Dadson was paid $600-$800 per transaction.
On April 29, 2013, law enforcement executed a search warrant at Dadson’s home and upon entry, saw Dadson attempting to flush several stolen credit cards down a toilet. Dadson admits that she used a victim’s name to make fraudulent transactions on approximately 10 credit cards and numerous gift cards in the victim’s name, purchasing electronics and other expensive items.
The total loss caused by Dadson’s conduct is between $200,000 and $400,000, involving between 10 and 50 victims.
Paul Essel, age 26, of Laurel, Maryland, pleaded guilty today to conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes. Essel faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. Essel has agreed to pay forfeiture and restitution of at least $418,435.48. U.S. District Judge Paul W. Grimm scheduled his sentencing for May 13, 2014.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service, U.S. Department of Treasury – Office of Inspector General and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Christen A. Sproule and Bryan E. Foreman and, who prosecuted the case.
Rockville Man Sentenced in Mortgage Fraud SchemeRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Edgar Galdamez, age 37, of Rockville, Maryland, today to 18 months in prison followed by three years of supervised release for wire fraud in connection with a mortgage fraud scheme. Judge Messitte entered an order that Galdamez pay $515,000 in restitution and forfeiture, the amount of loss resulting from the scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea, from at least September 2006 through May 2007, Galdamez and others contacted individuals who wished to purchase homes as investment properties. Galdamez and others prepared and submitted false loan applications in the buyers' names to the lending institution to qualify these individuals for loans that they otherwise were unqualified to obtain. For instance, they typically inflated the buyer=s income and omitted liabilities. They also falsely stated that the purpose of the property was to be the borrowers= primary residence in order to receive a lower interest rate. Galdamez knew that the property was intended to be used as an investment property. These residential mortgages were destined to fail because the borrowers did not have the income or assets to make the necessary mortgage payments. Galdamez and others profited from these fraudulent transactions by collecting origination fees, commissions and broker's fees from each loan that closed.
As a result of the fraud scheme, the lender lost $515,000.
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 FBI for its work in the investigation and thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
Elkton Man Pleads Guilty to Solicitation to Commit KidnappingRead the Press Release
Baltimore – Andres Dorantes Flores, age 43, of Elkton, Maryland pleaded guilty today to soliciting others to kidnap a 10 year old boy.
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; Cecil County Sheriff Barry A. Janney, Sr.; and Cecil County State’s Attorney Ellis Rollins.According to his plea agreement, beginning in at least July 2012 Flores solicited others to kidnap a 10 year boy. The families of Flores and the boy had been friends. Flores approached an acquaintance and suggested kidnaping the boy and demanding a $300,000 ransom from the boy’s father. Flores continued to solicit the acquaintance to help with the kidnapping in subsequent meetings. Flores provided pictures of the boy and his family to the acquaintance.
On August 15, 2012 Flores arranged a meeting with the acquaintance and two men that Flores believed were from Philadelphia who had come to kidnap the victim as part of Flores’ plot. Flores told the men that he had thought the plan through and provided them with instructions to carry out the kidnapping. Flores arranged for the men take the boy from his home in Maryland to Philadelphia where Flores believed the men resided. Flores told the men that after they received the $300,000 ransom, they would each get $75,000. Flores was arrested following the meeting.
Flores and the government have agreed that if the Court accepts the plea agreement Flores will be sentenced to 175 months in prison followed by three years of supervised release. U.S. District Judge William D. Quarles has scheduled sentencing for May 8, 2014 at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the FBI, Cecil County Sheriff’s Office and Cecil County State’s Attorney’s Office for their work in the investigation and thanked the New Castle County, Delaware Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Baltimore Felon Sentenced to 10 Years in Prison for Illegal Possession of A Gun and AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Malick Green, age 30, of Baltimore, today to 10 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.According to Green's plea agreement, on March 17, 2012, Baltimore City Police Detectives were observing the area around the 1800 block of North Broadway in Baltimore, and saw Malick Green enter an alley in that area. Green was holding his waistband as he ran through the alley to the rear yard of 1812 Register Street. Detectives observed the defendant move a piece of plywood that covered the rear basement stairs to 1812 Register, place a metallic object that officers believed to be a handgun on the steps, and return the plywood to its original location. Green then continued south down the alley.
Detectives located Green on Register Street and detained him as they went to the rear yard of 1812 Register. Detectives moved the plywood and found a.45 caliber handgun, loaded with a magazine containing six rounds of .45 caliber ammunition. Green was prohibited from possessing a firearm and ammunition due to previous felony drug convictions
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.
Former Baltimore Police Officer Pleads Guilty to Operating A Prostitution BusinessRead the Press Release
Baltimore, Maryland – Former Baltimore Police officer Lamin Manneh, age 32, of Baltimore, pleaded guilty today to traveling across state lines and using the telephone and internet to operate a prostitution business.
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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Anne Arundel County State’s Attorney Anne C. Leitess.
According to the indictment and information presented at today’s plea hearing, between February 2013 and May 9, 2013, Manneh operated a prostitution business that serviced over 300 customers. The business provided prostitution services to customers who came to an agreed location (“in-call”), as well as at locations specified by the customers (“out-call”). Manneh’s 19 year old wife and another 19 year old woman worked as prostitutes for Manneh. The government alleges that as part of his business, Manneh drafted, paid for, and posted more than 50 prostitution advertisements for the two women on internet websites; rented an apartment and hotel rooms to facilitate “in-call” commercial sex acts with clients who responded to the prostitution advertisements and drove the women to “out-call” commercial sex acts at residences and hotel rooms.
According to the information presented at the plea hearing, Manneh provided the women with cell phones and taught them to use “voice over internet” phone services to communicate with prospective clients and with one another. Manneh waited outside the commercial sex act locations and sent the women electronic messages when they were with clients; and that Manneh carried his police-issued firearm and agreed to forcibly interrupt a commercial sex interaction if the client was aggressive or non-compliant; and that he supplied both women with synthetic marijuana. Manneh collected all of his wife’s prostitution earnings and a percentage of the other woman’s prostitution earnings.
Manneh faces a maximum sentence of five years in prison, followed by up to lifetime of supervised release, for operating a prostitution business. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for May 8, 2014 at 9:30 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, Maryland State Police and Anne Arundel County State’s Attorney’s Office for their work in the investigation and recognized the Baltimore Police Department for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.Baltimore Felon Exiled to 20 Years in Prison for Gun and Drug CrimesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Antoin Lamont Garrison, age 46, of Baltimore, Maryland, today to 20 years in prison followed by three years of supervised release for illegal possession of guns and ammunition by a convicted felon, possession of cocaine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. Judge Blake enhanced Garrison’s sentence upon finding that he is an armed career criminal based on three previous convictions for drugs and violent crime.
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; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; and Maryland Attorney General Douglas F. Gansler.
According to testimony presented at Garrison’s five day trial, in May 2011, Baltimore Police officers and FBI agents received information from a source that Garrison had offered to sell the source guns and drugs. Witnesses testified that after additional investigation, law enforcement arranged for the source to purchase ammunition, firearms and cocaine from Garrison. On May 20, 2011, Garrison met with the source and sold the source 200 rounds of ammunition. On May 24, 2011, the source contacted Garrison. The two agreed to meet and Garrison provided the source with a police issued bullet proof vest. Later that same day, Garrison and the source met again at a residence on Bartlett Avenue. Garrison brought a black bag out of the residence and showed the source two handguns that were in the bag. Garrison explained that those guns were for protection but that he had other guns he could sell to the source. The source paid Garrison $3,750 in FBI funds to purchase three ounces of cocaine. Garrison told the source he would contact the source to arrange delivery of the cocaine. According to trial testimony, Garrison met with the source the next day and provided 70.7 grams of cocaine.
On May 27, 2011, a search warrant was executed at the Bartlett Avenue residence. Law enforcement agents seized a .22 LR rifle; a 30-30 caliber rifle; 9mm handgun loaded with 10 rounds of ammunition; a .22 caliber revolver and various rounds of ammunition.
Garrison was prohibited from possessing firearms or ammunition due to his previous felony convictions.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Baltimore City State’s Attorney=s Office and Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, and Assistant United States Attorney Benjamin M. Block, who prosecuted the case.
Two More Retailers Arrested for Food Stamp FraudRead the Press Release
Defendants Received Over $1 Million from USDA for Food Stamps Allegedly Traded for Cash
Baltimore, Maryland – Abdulmalik Abdulla, age 37, and Ahmed Mohssen, age 53, both of Baltimore, were arrested today on federal charges of conspiracy to commit food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. The criminal complaint filed today alleges that the defendants, who operate Sam’s NY grocery store on North Milton Street in Baltimore, received over $1.5 million in federal payments for transactions in which they did not provide any food, but split the proceeds with food stamp recipients. Federal agents arrested the defendants and executed search warrants at the store and related locations today. In separate cases, ten defendants were charged with food stamp fraud in September 2013; four of those defendants have pleaded guilty and the others are awaiting trial.
The arrests were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“Retailers who trade food stamp credits for cash are on notice that federal authorities are on their trail,” said U.S. Attorney Rod J. Rosenstein. “Taxpayers fund the program to provide food for needy recipients, not to turn retail store cash registers into ATM machines.”
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers bill the government in return for providing approved food items. SNAP retailers, including the defendants, receive instruction regarding the requirements and regulations of the food stamp program, such as that only eligible food items can be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
The criminal complaint alleges that the defendants exchanged EBT benefits for cash, typically paying half the value of the EBT benefits in cash. As a result of unlawful cash transactions, the defendants allegedly obtained more than $1.5 million in EBT deposits for transactions in which the store did not provide food.
The defendants face a maximum sentence of 20 years in prison for each count of wire fraud, and a maximum of five years in prison for conspiracy to commit food stamp fraud. The defendants are expected to have initial appearances at 3:45 p.m. today in U.S. District Court in Baltimore.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.
Carjacker Who Led Police on A High Speed Chase Exiled to over Three Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Correy Markel Janifer, age 21, of Washington, D.C., today to 46 months in prison followed by three years of supervised release for being a felon in possession of a gun and interstate transportation of a stolen vehicle.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Acting Chief of Police Robert Maclean of the U.S. Park Police.
According to his plea agreement, at about midnight on January 29, 2013, a man wearing a ski mask pointed a handgun at the driver of a Honda Accord while the driver was sitting in his car in the northeast section of the District of Columbia. The man hit the driver in the back of the head with his gun and took the car.
Shortly afterwards, D.C. police in marked cruisers saw the stolen Honda driving on the streets and tried to stop the car. Janifer, the driver, did not stop, and led the police on a chase into Maryland and onto the Baltimore-Washington Parkway. U.S. Park Police officers took up the pursuit with their lights flashing and sirens activated.
Janifer drove on at about 90 miles an hour in the 45 mile speed zone. As Janifer approached the interchange with Route 410, he went through a red light and returned to the Parkway. Janifer braked hard, causing a Park Police officer to swerve into another lane to avoid a collision. Janifer then accelerated and struck the right rear of the officer’s marked cruiser. Janifer then drove up the ramp to Route 450, while a loaded pistol was thrown out of the Honda. Janifer continued on to westbound Route 450, speeding, fishtailing and weaving over the center line into the oncoming lane. Janifer lost control of the car and finally halted. When an officer positioned his cruiser to prevent the Honda from moving further, Janifer drove the Honda forward to collide with the officer’s car and rip off the front bumper.
Janifer got out of the Honda and fled, shedding his jacket as he ran. Soon after, Janifer was surrounded by police and arrested. The pistol that was thrown from the Honda was recovered. A ski mask similar to the one described by the carjacking victim was found in the pocket of the jacket Janifer had thrown down during the chase.
United States Attorney Rod J. Rosenstein commended the ATF and U.S. Park Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Hollis Raphael Weisman, who prosecuted the case.
Annapolis Cocaine Dealer Exiled to over 7 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Shawn Anthony Pollard, age 35, of Annapolis, Maryland, today to 92 months in prison followed by three years of supervised release for conspiring to distribute and possession with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Annapolis Police Chief Michael A. Pristoop; and Anne Arundel County State’s Attorney Anne Colt Leitess.According to his plea agreement, on February 9 and 17, 2012, a confidential informant bought a total of 8.8 grams of cocaine from Pollard in Annapolis. On February 24, 2012, law enforcement officers executed a search warrant where Pollard lived and seized a loaded handgun, a digital scale containing cocaine residue, .3 grams of cocaine base from Pollard’s jacket and $34,790 which were the proceeds of drug sales. Text messages were also found on Pollard’s phone in which individuals were seeking to buy 1/8 kilogram of cocaine for $4,900 and a half of a kilogram for $18,200.
United States Attorney Rod J. Rosenstein commended the ATF, Annapolis Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Seema Mittal, who prosecuted the case.
Second Conspirator Pleads Guilty in Bank Fraud SchemesRead the Press Release
Stole Checks from Mailboxes
Greenbelt, Maryland –Paul Essel, age 26, of Laurel, Maryland, pleaded guilty today to conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes.
The guilty plea 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; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury Office of Inspector General; and Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office.
“Stealing mail to commit identity theft and bank fraud not only jeopardizes people’s trust in the U.S. postal system, it threatens the overall financial health of our communities,” said Postal Inspector in Charge Gary Barksdale, U.S. Postal Inspection Service - Washington Division. “With our partner law enforcement agencies, Postal Inspectors will continue to aggressively investigate these crimes.”
According to his plea, from June 14, 2010 to March 11, 2013, Essel and Nelly Dadson opened bank accounts in their own names and in the names of shell corporations that they controlled. Essel and others used counterfeit checks that resembled convenience checks that had been stolen from mailboxes in Montgomery and Prince George’s Counties. The counterfeit checks contained names, addresses and account information that appeared on the convenience checks. Essel deposited these counterfeit checks into accounts controlled by the conspirators and then withdrew funds from the accounts. Essel also provided checks to Dadson with instructions to deposit these counterfeit checks into accounts that she controlled, withdraw the funds and provide the funds to Essel, for which Essel paid Dadson.In addition, from June 14, 2010 to November 13, 2012, Essel and Dadson conspired to defraud Home Depot. On multiple occasions, a conspirator placed an order by phone with a Home Depot store for flooring in amounts ranging from $2,500 to $8,000, using a stolen credit card number. Within a few days, a conspirator called to cancel the order and supplied a debit card number of a conspirator, including Essel and Dadson, requesting that the refund for the order be placed on the conspirator’s debit card. At Essel’s request, Dadson received 38 credits to her bank accounts totaling approximately $141,159.07, which she then withdrew and provided to Essel. Essel paid Dadson $600 to $800 per transaction. Essel also received at least three credits to his bank accounts totaling approximately $8,902.96, which he withdrew.
The total loss caused by Essel’s conduct is between $400,000 and $1 million, and involved between 10 and 50 victims.
Essel faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. Essel has agreed to pay forfeiture and restitution of at least $418,435.48. U.S. District Judge Paul W. Grimm scheduled his sentencing for May 13, 2014.
Nelly Dadson, age 23, of Baltimore, previously pleaded guilty to her participation in the schemes and is scheduled to be sentenced on January 24, 2014 at 9:30 a.m. Dadson has agreed to pay forfeiture and restitution of at least $251,745.52.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service, U.S. Department of Treasury – Office of Inspector General and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Bryan Foreman and Christen A. Sproule, who are prosecuting the case.