District of Maryland

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

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 Estate

Baltimore, 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.

Defrauded Lowe’s of More Than $464,000 by Calling Lowe’s Stores and
Pretending to be from Lowe’s IT Department

Baltimore, 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.

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.

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.

Previously Shot a Person to Death and Committed Multiple Robberies; Associated With the Black Guerilla Family

Baltimore, 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.

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.

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.

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.

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, 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.

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, 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.

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.

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.

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.

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.

Correctional Officer Smuggled Drugs for BGF into Baltimore Correctional Facility; BGF Inmate Had Sex with Correctional Officers and Directed Them to Smuggle Contraband into the Prison

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Taryn Kirkland, age 23, of Baltimore to 42 months in prison followed by two years of supervised release, and BGF member and commander Steven Loney, age 24, today to nine years in prison followed by three years of supervised release, for racketeering conspiracy arising from the smuggling of drugs for members of the Black Guerilla Family (BGF) gang inside the Baltimore City Detention Center (BCDC).

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; 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.

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, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.

According to their plea agreements, Kirkland worked as a correctional officer at BCDC where BGF member Loney was an inmate. For a time, Loney was a cellmate of Tavon White, the leader of BGF at BCDC. Following his transfer to another section, Loney became the commander of one of two BGF regimes at BCDC, and answered only to Tavon White. Throughout 2011 to 2013, Loney often directed the smuggling of contraband into BCDC by BGF members and associates, especially through the services of correctional officers. Loney became involved in sexual relationships with correctional officers, including Kirkland. Kirkland frequently smuggled contraband, including marijuana and prescription pills, into BCDC on behalf of Loney. Kirkland also helped other correctional officers, such as Jennifer Owens, smuggle drugs into BCDC for other BGF inmates such as Tavon White.

Correctional officer Adrena Rice, age 25, of Baltimore previously pleaded guilty to her participation in the conspiracy and was sentenced on January 8, 2014 to 42 months in prison. BGF leader Tavon White, age 36, also pleaded guilty to the racketeering enterprise and is scheduled to be sentenced on February 20, 2014 at 10:00 a.m. Outside supplier James Yarborough, a/k/a J.Y., age 27, of Baltimore, is scheduled to have a rearraignment tomorrow at 10:00 a.m.

The case arose from the efforts of the Maryland Prison Task Force, a group of local, state and federal law enforcement agencies and prosecutors that met regularly for more than two years and generated recommendations to reform prison procedures. The investigation is continuing.

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.

U.S. Attorney Urges Parents and Teachers to Focus on Drug Prevention in 2014

Baltimore, Maryland – In opening remarks at a regional drug abuse symposium held in Annapolis today, U.S. Attorney Rod J. Rosenstein sounded the alarm about a surge in drug overdose deaths and addiction and called on parents and teachers to “teach every student, from first grade through twelfth grade, about the horrible consequences of using heroin and other debilitating addictive drugs.”

“Heroin is one of the leading causes of death in Maryland, and some victims are teenagers who start by taking oxycodone and similar prescription drugs from their parents’ medicine cabinets,” said Mr. Rosenstein. “In 2012, more Marylanders died of heroin than murder. It is essential to treat drug addiction as a communicable disease that is preventable. Today I call on parents and teachers to help to prevent drug abuse by teaching children about the dangers of drug addiction and how to avoid it.”

Maryland reported 378 heroin overdose deaths in 2012, an increase from 245 deaths in 2011. A total of 761 drug overdose deaths were reported in the state in 2012.

The symposium, hosted by the Baltimore/Washington High Intensity Drug Trafficking Area (“HIDTA”) under the leadership of Executive Director Tom Carr, brings together key law enforcement, prevention and treatment professionals from Maryland, Virginia and the District of Columbia as well as four surrounding HIDTAs: Appalachia, Philadelphia/Camden, New York/New Jersey, and New England. The purpose of the symposium is to raise awareness about the surge in heroin abuse, explain the relationship between heroin overdoses and the abuse of prescription drugs such as opioids, and develop programs and strategies to address the problem.

Further information about heroin and prescription drug abuse is available at www.justice.gov/dea . For more information about the HIDTA program, please visit www.hidta.org.

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Travis Tittus Moore, a/k/a “Short Man,” age 31, of Harwood, Maryland, today to 125 months in prison followed by four years of supervised release for possession with intent to distribute crack and powder cocaine, phencyclidine (PCP), and marijuana. Chief Judge Chasanow also ordered that Moore forfeit the $12,192 seized during the investigation.

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; Calvert County Sheriff Mike Evans; and Anne Arundel County Police Chief Kevin Davis.

According to Moore’s plea agreement, on January 19, 2012, agents overheard a co-conspirator arrange for Moore to meet the co-conspirator on Solomons Island Road in Sunderland, Maryland. Officers saw Moore pull up in his car next to the co-conspirator’s vehicle and followed Moore as he left. As the officers followed Moore they saw him swerve and hit the center line and the officers attempted to perform a traffic stop, but Moore sped off, eventually crashing into a telephone pole. Moore climbed out of the passenger side window carrying a bag and tried to hide under the car. Moore was arrested and officers recovered $2,192 in cash from Moore and $10,000 in cash, 32.1 grams of crack cocaine, .71 grams of PCP, 62.3 grams of powder cocaine, 12.6 grams of marijuana, and a scale with cocaine residue from the bag Moore was carrying.

United States Attorney Rod J. Rosenstein praised the DEA, Calvert County Sheriff’s Office and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Arun G. Rao and Steven E. Swaney, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Richard Brown, age 28, of Lanham, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to Brown’s plea agreement, from December 2012 through January 2013, Brown conspired with others to distribute PCP. Specifically, on four occasions between December 5, 2012 and January 16, 2013, Brown distributed approximately 401 grams (over 14 ounces) of PCP to a cooperating witness, meeting the witness at the Suitland and Capitol Heights Metro stations to conduct the transactions. On January 31, 2013, the cooperating witness arranged to purchase 16 ounces of PCP from Brown. As Brown arrived at the meeting location, law enforcement agents approached the vehicle to arrest him. Brown was sitting in the front passenger seat of the vehicle holding a 32-ounce bottle that was half full of liquid. The agents saw Brown dump the contents of the bottle onto the passenger floorboard. Agents seized the bottle, which still contained three ounces of PCP, and soaked two rags with the remaining PCP that was spilled onto the floor and preserved the rags as evidence.

Brown admits that he distributed between 700 grams and one kilogram of PCP during the time of the conspiracy.

United States Attorney Rod J. Rosenstein praised the DEA, ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Steven E. Swaney and Arun G. Rao, who prosecuted the case.

Defendant Destroyed Computer Evidence Before Leaving the U.S. to Join the Foreign Terrorist Organization al-Shabaab in Somalia

Baltimore, Maryland – U. S. District Judge J. Frederick Motz sentenced Craig Benedict Baxam, age 26, of Laurel, Maryland, to serve seven years in prison followed by five years of supervised release after Baxam pleaded guilty today to destroying records that might be used in a terrorism investigation.

The guilty plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; John P. Carlin, Acting Assistant Attorney General for National Security; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

“Craig Baxam traveled to Africa in order to join the terrorist organization Al-Shabaab,” said U.S. Attorney Rod J. Rosenstein. “Mr. Baxam was arrested in Kenya before he reached Somalia.”

“The investigation of Mr. Baxam was a collaborative effort with our law enforcement partners both within the United States and overseas,” said Special Agent in Charge Stephen E. Vogt. “The combined efforts of the Joint Terrorism Task Force and other agencies, including the Federal Air Marshal Service, U.S. Customs and Border Protection and the Maryland Transportation Authority Police, resulted in a successful prosecution which highlights the FBI’s highest investigative priority, the prevention of terrorist acts.”

According to his plea agreement, on December 23, 2011, Baxam was arrested in Kenya by members of the Kenyan Anti-Terrorism Police Unit, as he traveled north to southern Somalia to join al-Shabaab, a foreign terrorist organization. On December 27 and 30, 2011, FBI agents interviewed Baxam while he was in custody in Kenya. Baxam told the agents that because of his prior service in the U.S. Army, and specifically his training and experience in military intelligence, he knew of the U.S. government’s capabilities in tracing internet protocol addresses and other investigative techniques. Consequently, before leaving the U.S., he destroyed his personal home computer and threw the remains in a dumpster. He told the agents that he did not want any record left behind, and that he wanted to maintain a low profile. He also said that he purchased a round trip plane ticket to Kenya rather than a one way ticket even though he had no intention of returning to the U.S., in order not to arouse the suspicion of the FBI and U.S. military.

Baxam and the government agreed that if the Court accepted the plea agreement Baxam should be sentenced to seven years in prison followed by five years of supervised release. U.S. District Judge J. Frederick Motz agreed and imposed that sentence immediately following his acceptance of Baxam’s guilty plea.

United States Attorney Rod J. Rosenstein praised the FBI=s Maryland and New York Joint Terrorism Task Forces for their work in the investigation and recognized the Department of Justice Counterterrorism Section and U.S. Attorney=s Office for the Southern District of New York for their assistance in the investigation. Mr. Rosenstein also commended the Federal Air Marshal Service, U.S. Customs and Border Protection and the Maryland Transportation Authority Police for their assistance in the investigation.

Mr. Rosenstein thanked Assistant United States Attorney Harvey E. Eisenberg, who prosecuted the case with assistance from Trial Attorney Robert J. Sander of the Counterterrorism Section of the Department of Justice.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Dontae Cox, age 30, of Windsor Mill, Maryland, today to 12 years in prison followed by four years of supervised release for distribution of crack cocaine. Judge Hollander also ordered Cox to forfeit $29,030 in cash seized during the investigation, as well as a .22 caliber handgun, loaded .22 caliber magazine, one box of 9mm ammunition, two digital scales and two money counters.

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 Chief James W. Johnson of the Baltimore County Police Department.

According to Cox’s plea agreement, on March 26, 2012, a confidential source called Cox who agreed to sell approximately 2 ounces (56 grams) of crack cocaine to the source at the Mondawmin Mall later in day. During their meeting later that day, the source entered a vehicle occupied only by Cox. The source gave Cox $2,400 in cash in exchange for approximately 2 ounces (56 grams) of crack cocaine.

On April 3, 2012, the Baltimore County Police Department executed a search warrant at Cox’s residence and recovered 107.6 grams of crack cocaine and drug paraphernalia, including scales and money counters. During the execution of the search warrant and a vehicle stop earlier in the day, law enforcement recovered a total of $29,030 from Cox, which he admits that he earned from the distribution of narcotics.

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 David I. Sharfstein, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Thomas Scott, age 24, of Baltimore, Maryland, today to 10 years in prison, followed by three years of supervised release, for unlawful possession of an unregistered firearm.

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 Scott=s plea agreement, on February 12, 2013, employees of the Baltimore Police Department Citywatch unit were monitoring “blue light” surveillance cameras in the Central District of Baltimore, when they noticed a Ford Expedition making multiple turns and slowly driving up and down the same streets of downtown for at least 30 minutes. Due to a number of recent robberies following the closing of restaurants and nightclubs, uniformed officers in the area were advised to monitor the vehicle for a possible robbery attempt. Officers found the vehicle cruising slowly in the area and attempted to stop it. The vehicle pulled to the curb and as the officers approached the Expedition, the driver quickly pulled away from the curb. The officers pursued the Expedition, which crashed into a tree several blocks away.

As officers approached the vehicle, they saw the Scott getting out of the passenger side of the car in bare feet. Upon seeing the officers, Scott began running down the street. The driver also got out of the car and ran away. Both Scott and the driver were arrested approximately two blocks away. From the vehicle, officers recovered: a machete and the driver’s license of the driver, on the front driver’s side floor; a loaded 12-gauge shotgun with a sawed off barrel, sitting next to a pair of shoes in the front passenger floor area; one air rifle in the back storage area of the vehicle; and a black and white bandana on the floor of the front seat passenger side of the vehicle.

Officers recovered two shotgun shells when they searched Scott that matched the shell found in the shotgun. The sawed-off shotgun was not registered to Scott in the National Firearms Registration and Transfer Record.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.

Also Collected Over $26 Million in Asset Forfeitures

Baltimore, Maryland – U.S. Attorney Rod J. Rosenstein announced that financial collections in criminal and civil actions in Fiscal Year (FY) 2013 in the District of Maryland reached $143,297,520.31. The U.S. Department of Justice keeps statistics on a fiscal year basis, closing the books each September 30.

Attorney General Eric Holder announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013,which represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”

“Thanks to the hard work and dedication of employees of the U.S. Attorney’s Office and our partner agencies, funds recovered far exceed the cost of operating the office,” said Maryland U.S. Attorney Rod J. Rosenstein. “We will continue to hold accountable anyone who seeks to profit from illegal activities.”

According to statistics from the Department of Justice, the U.S. Attorney’s Office for the District of Maryland in FY 2013 collected $137,587,803.66 in criminal debts owed to the U.S. government and to federal crime victims, including restitution, criminal fines and felony assessments. The statistics also show that $5,709,716.65 was collected in civil actions handled exclusively by the U.S. Attorney’s Office for the District of Maryland, including judgments in civil cases.

Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $348,391,707.91 in cases pursued jointly with these offices, including cases resolved under the False Claims Act on behalf of victim agencies such as the Department of Health and Human Services and the Environment Protection Agency. These cases include the successful resolutions of United States ex rel. Thakur v. Ranbaxy Laboratories Limited, United States ex rel. Heiden v. Boehringer Ingelheim Pharmaceuticals, Inc., United States ex rel. Momeyer v. Hospice of Arizona, L.L.C., United States ex rel. Ryan v. Trans1, Inc. and an investigation of U.S. Renal Care. Of this amount, $6,200 was collected in criminal actions and $348,385,507.91 was collected in civil actions.

The $143 million collected by the U.S. Attorney’s Office for the District of Maryland in FY 2013 represents approximately eight times the office’s appropriated $17.9 million budget in that same period.

The U.S. Attorneys’ offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The statistics show that the $5,709,716.65 collected in civil actions in Maryland, include affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws, and debts collected on behalf of several federal agencies, including the U.S. Department of Education, Housing and Urban Development, Health and Human Services, Internal Revenue Service, and Small Business Administration.

In the criminal area, of the total $137,587,803.66 collected, $6,155,018.82 was for restitution for federal agencies and for victims other than the federal governments; and $131,432,784.84 was for criminal fines and other criminal collections.

In addition, the U.S. Attorney’s Office for the District of Maryland, working with partner agencies and divisions, collected $26,853,350 in asset forfeiture actions in FY 2012. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

For more information, the Department’s Annual Statistical Reports on prior fiscal years can be found on the internet at: http://www.justice.gov/usao/reading_room/foiamanuals.html.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Tavon McPhaul, age 22, of Baltimore, Maryland today to 145 months in prison, followed by five years of supervised release, for a commercial robbery conspiracy and possession of a firearm in furtherance of a crime of violence.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Kevin Davis.

According to his plea agreement, from May 2012 through July 4, 2012, McPhaul, Quindell Gardner and others robbed stores in the Baltimore area. After deciding which place to rob, the conspirators would steal a car to use during the robbery. They also used a gun during the robberies to steal cash and cigarettes.

McPhaul admitted that he committed approximately 12 armed robberies, with Gardner going into the store to commit the robbery and McPhaul driving the getaway vehicle. Between June 28 and July 4, 2012, Gardner and McPhaul robbed five Baltimore area convenience stores, including a convenience store in the 6300 block of Eastern Avenue in Baltimore on July 4, 2012, with Gardner using a short-barreled shotgun in each of the robberies.

Gardner was arrested following two convenience store robberies on July 4, 2012, after a car chase. Gardner’s clothing matched that of the individual who participated in both robberies that day. McPhaul, who was driving the getaway car, escaped on foot. While running, McPhaul attempted to wipe the firearm clean with a blanket. A sawed-off shotgun was recovered along the path of McPhaul’s escape. The vehicle driven by McPhaul during the robbery was found to be stolen.

Quindell Ryeshawn Gardner, age 22, also of Baltimore, previously pleaded guilty to the same charges and is awaiting sentencing. Gardner and the government have agreed that if the Court accepts his plea agreement, he will be sentenced to between 15 and 25 years in prison.

United States Attorney Rod J. Rosenstein praised the FBI, the Baltimore City and Baltimore County Police Departments and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Benjamin M. Block, who is prosecuting the case.

Smuggled Drugs for BGF Gang Members into Baltimore Correctional Facility; Nine Correctional Officers and Seven other Defendants Have Pleaded Guilty to Date

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Adrena Rice, age 25, of Baltimore today to 42 months in prison followed by two years of supervised release for racketeering conspiracy arising from the smuggling of drugs 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.

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, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.

According to her plea, Adrena Rice worked as a correctional officer at BCDC. Rice frequently smuggled contraband, including marijuana and prescription pills, into BCDC on behalf of BGF leader and inmate, Tavon White. Rice also helped other correctional officers, such as Jennifer Owens and Katera Stevenson, smuggle drugs into BCDC.

Eight other correctional officers have pleaded guilty to the racketeering enterprise and await sentencing:

Kimberly Dennis, age 26, of Baltimore
Jasmin Jones, a/k/a/ J.J., age 24, of Baltimore; Taryn Kirkland, age 23, of Baltimore; Katrina Laprade, a/k/a Katrina Lyons, age 31; Vivian Matthews, age 26, of Essex, Maryland; Jennifer Owens, a/k/a/ O and J.O., age 31, of Randallstown; Katera Stevenson, a/k/a KK, age 24, of Baltimore; and
Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie.

Seven other co-defendants have also pleaded guilty: inmates Tavon White, age 36; Steven Loney, age 24; Jermaine McFadden, a/k/a Maine, age 25; and Kenneth Parham, age 24; and outside contraband suppliers Tyrone Thompson, a/k/a Henry, age 36; Tyesha Mayo, age 30 and Teshawn Pinder, age 24. Loney is scheduled to be sentenced on January 14, 2014. Outside supplier James Yarborough, a/k/a J.Y., age 27, of Baltimore, is scheduled to have a rearraignment on January 15, 2014 at 10:00 a.m.

The case arose from the efforts of the Maryland Prison Task Force, a group of local, state and federal law enforcement agencies and prosecutors that met regularly for more than two years and generated recommendations to reform prison procedures. The investigation is continuing.

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

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

Baltimore, Maryland – A federal grand jury returned a superseding indictment today charging Rodney Hubert, a/k/a “Noah,” age 38, of Baltimore and New York, New York, and Charles Hufton, a/k/a “CJ,” age 25, of Cockeysville, Maryland, with conspiring to traffic a minor to engage in commercial sex acts and with sex trafficking of a minor.

The superseding 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; and Baltimore County State’s Attorney Scott Shellenberger.

According to the indictment, from December 2012 through February 22, 2013, Hubert, a registered sex offender and Hufton, a bouncer at a lounge in Baltimore City, recruited and transported females, some of whom were minors, to engage in commercial sex acts for money. The defendants allegedly offered a “finders fee” to female prostitutes if they found additional females to work for them and took provocative or explicit photographs of the females and posted them to websites that host advertisements for commercial sex. According to the indictment, Hubert and Hufton provided a residence in Parkville, Maryland, for the females to host “in-call” prostitution and drove the females to “out-call” prostitution locations. Hubert and Hufton allegedly collected a large percentage of the females’ earnings.

Specifically, the indictment alleges that Hubert recruited a 19 year old associate to work for him as a prostitute beginning in December 2012. Hubert offered the 19 year old a commission to recruit the 16 year old victim to perform prostitution for Hubert. Hubert invited the minor victim to live with him, offered $400 to take provocative photographs of the victim wearing lingerie, and offered her $1,000 to make a pornographic film. According to the indictment, Hubert and Hufton created a pseudonym for the minor victim, “Ashley,” and advertised online that she would prostitute at both the Parkville “in-call” location and at “out-call” locations of prospective clients. Hufton allegedly used his phone to create and post the prostitution advertisements online and drove the prostitutes, including the minor victim, to “out-call” locations and collected a portion of their earnings.

The defendants face a maximum sentence of life in prison.

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

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

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

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