District of Maryland
Press releases recorded for this federal judicial district.
Correctional Officer and BGF Inmate with Whom She Had Sex Sentenced in Jail House Racketeering ConspiracyRead the Press Release
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.Annapolis Forum Addresses Growing Threat of Heroin AbuseRead the Press Release
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.
Southern Maryland Drug Dealer Sentenced to over 10 Years in PrisonRead the Press Release
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.
PCP Dealer Sentenced to 10 Years in PrisonRead the Press Release
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.Former U.S. Soldier Who Sought to Join Terrorist Group Convicted and Sentenced to 7 Years in PrisonRead the Press Release
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 Crack Dealer Sentenced to 12 Years in PrisonRead the Press Release
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 Felon Exiled to 10 Years in Prison for Illegal Possession of an Unregistered GunRead the Press Release
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.
Maryland U. S. Attorney’s Office Collects over $143 Million in Civil and Criminal Actions for U.S. Taxpayers in FY2013Read the Press Release
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 Armed Robber Sentenced to over 12 Years in Prison for Committing A Dozen Armed RobberiesRead the Press Release
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.
First Defendant, A Correctional Officer, Sentenced in Jail House Racketeering ConspiracyRead the Press Release
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.Two Men Indicted for Sex Trafficking of A MinorRead the Press Release
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.
Salisbury Man Sentenced to 13 Years in Prison for Bank RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Gary Allen Mitchell, age 43, of Salisbury, Maryland, today to 13 years in prison followed by three years of supervised release for bank robbery. Judge Motz enhanced Mitchell’s sentence upon find that he is a career offender based on two prior federal bank robbery convictions – one each in Maryland and Delaware.
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; Salisbury Police Chief Barbara Duncan; and Wicomico County State’s Attorney Matthew Maciarello.
According to his plea agreement, on March 21, 2013, Mitchell robbed the PNC bank in the 300 block of Civic Avenue in Salisbury. Mitchell gave the teller a note stating that he was robbing the bank, that he would harm the teller if she did not comply with his demands, and that he had a gun. Mitchell had his hand in his pocket as if he had a gun. Mitchell further advised the teller not to pull the alarm, nor give him any marked money, dye packs or tracking devices. The teller gave Mitchell $4,177, including a tracking device within a stack of $50 bills, as per bank policy. Mitchell became angry that the teller included the tracking device, and threw the stack of money on the counter.Police officers arrested Mitchell, who was found smoking crack cocaine shortly after the bank robbery, and recovered the proceeds of the robbery. At the time of the robbery, Mitchell was on supervised release for a previous federal bank robbery conviction.
United States Attorney Rod J. Rosenstein praised the FBI, Salisbury Police Department and Wicomico County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bonnie S. Greenberg, who prosecuted the case.Former Bank Employee Pleads Guilty in Fraud SchemeRead the Press Release
Baltimore, Maryland –Jill Dail, age 59, of Cambridge, Maryland, pleaded guilty today to bank fraud in connection with a scheme in which she and her brother, Jeffrey Dail, fraudulently obtained mortgage loans in the names of family members, using the proceeds for their own benefit.
The guilty plea 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 her plea agreement, Jill Dail was a loan settlement processor in the mortgage department at a Salisbury, Maryland, bank until she was terminated in June 2007, as part of a reduction in the bank’s workforce. Shortly thereafter, Dail was privately hired by the manager of the bank’s mortgage department to continue to do the same loan processing work she had performed as an employee of the bank. The bank manager paid Dail out of his own funds and gave her full access to the bank premises, computer system and loan files. Dail continued to represent herself as a bank employee in her dealings with title companies and other businesses.
Jill Dail admits that beginning before January 2006 through at least August 2009, she and her brother, Jeffrey Dail, applied for mortgage loans in the names of family members and used the proceeds of the loans for their personal benefit. The Dails forged the signature of family members and bank officials on the loan applications, causing the bank to approve the applications and authorize the distribution of the loan proceeds at settlement. In each instance, the family members whose identities were used on the loan applications, and whose properties were used as collateral for the loans, had no knowledge of the applications or the loans.
Based on the assurances of Jill Dail, with whom the title company had a well-established business relationship, title company employees notarized the signatures of the family members on the settlement documents and disbursed the loan funds at settlement, as directed by Jill Dail, to Jill Dail herself, to Jeffrey Dail, and to their creditors. The balance of loan funds still unpaid is approximately $357,150.
Jill Dail faces a maximum sentence of 30 years in prison and a $250,000 fine. U.S. District Judge J. Frederick Motz scheduled her sentencing for April 3, 2014 at 9:30 a.m.
Jeffrey Scott Dail, age 49, of Cambridge, Maryland, pleaded guilty on December 5, 2013 to his participation in the scheme and faces a maximum sentence of 30 years in prison and a $250,000 fine. Jeffrey Dail is scheduled to be sentenced on February 21, 2014 at 12:00 p.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.
Conspirators Plead Guilty to Scheme Using Medical Patients’ Identities to Fraudulently Obtain MerchandiseRead the Press Release
Baltimore, Maryland – Chanell Y. Cole, age 30, of Owings Mills, Maryland, and Yolanda Gail Welch, age 39, of Philadelphia, Pennsylvania, pleaded guilty on Friday, January 3, 2014, to conspiracy to commit bank fraud in connection with a scheme to obtain merchandise using stolen personal identifying information of medical patients.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to their plea agreements, beginning sometime in 2010 through February 2013, Chanell Cole, Yolanda Welch, and others participated in a scheme to defraud various financial institutions by stealing personal identifying information (“P.I.I.”) from medical providers and using the victims’ P.I.I. to fraudulently open credit accounts and assume control of existing credit accounts at Macy’s, Bloomingdale’s, and Nordstrom. The conspirators used the accounts to purchase merchandise in the names of the unknowing victims without intending to pay for the goods. The conspirators kept the goods; sold the goods to others in exchange for cash; or returned the goods to the retail stores for merchandise credit and for credit on the accounts of the conspirators.
According to her plea agreement, from 2008 through approximately May 2010, Chanell Cole was the sole employee of a rheumatologist with offices at Good Samaritan Hospital in Baltimore, and had access to the physician’s patient files, including electronic records. As part of the scheme, Cole used her position to unlawfully obtain the P.I.I. of numerous patients, including names, addresses, and social security numbers, which she provided to a co-conspirator.
In the early stages of the conspiracy, conspirators obtained false identifications in the names of the victims, but bearing the conspirator’s likeness. The fraudulent identifications and the P.I.I. were then used to open credit accounts at the retail stores. Once the accounts were opened, conspirators made purchases at stores in Maryland, Delaware, New Jersey, and New York. Later in the scheme, members of the conspiracy contacted Macy’s, Bloomingdale’s, and/or Nordstrom by telephone to determine if the victims had existing credit accounts with the retailers. Once it was learned that the victim had an existing credit account, members of the conspiracy used the victims’ P.I.I. to make purchases of merchandise over the phone, which were delivered to the residences of friends and family members of Cole, Welch and other conspirators, primarily in the Philadelphia area. After the merchandise was delivered, a conspirator picked up the packages, and paid the recipient a fee for having received the packages. The fee was either cash or a previously determined item of merchandise that was part of the delivery. The merchandise was sold for cash, or returned to the retail stores in exchange for gift cards. The gift cards were sold for cash or provided to friends and family members. Most of the merchandise was provided to Welch, who sold the merchandise to various individuals for approximately 50% of the retail value. Welch provided the cash to a co-conspirator, who paid her a cash fee in return. Welch listed some of the merchandise using her eBay account. Cole assisted in the sale of the merchandise and purchased some of the fraudulently obtained merchandise for her personal use.
During the course of the scheme, Cole provided the P.I.I. of at least 24 patients, which was used in the scheme causing a loss of at least $32,091.91, and Welch sold over $100,000 of fraudulently obtained merchandise. In total, the scheme resulted in the identities of over 100 individual victims being used to fraudulently obtain over $993,000 of merchandise from Macy’s, Bloomingdales, and Nordstrom.
Cole and Welch face a maximum penalty of 30 years in prison for the bank fraud conspiracy. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Cole on April 4, 2014 at 9:00 a.m. and for Welch on April 25, 2014 at 12:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation and thanked Macy’s fraud investigators for their assistance. Mr. Rosenstein praised Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.
Baltimore Store Robber Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Corey Washington, age 29, of Baltimore, today to 10 years in prison followed by three years of supervised release for robbing a clothing store. Judge Garbis enhanced Washington’s sentence upon finding that Washington is a career offender based on two previous convictions for armed robbery and possession with intent to distribute drugs.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Baltimore Police Commissioner Anthony W. Batts; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement, early on August 6, 2012, investigators intercepted phone calls between Washington and co-defendant Gerrod Richardson in which Richardson proposed that they rob the clothing store where he worked, which was located in the 5800 block of Baltimore National Pike in Baltimore County. The defendants met later that morning and finalized their plans. Washington entered the store at 9:30 a.m., posing as a customer. Washington walked to the store’s business office and brandished what appeared to be a gun at the store manager, demanding money from the store safe. The manager opened the safe and gave Washington $3,000 in cash and coins. Washington fled.
Later that day, investigators arrested Washington near his home and seized $1,000 in cash. They also seized empty coin wrappers matching those used by the store from Washington’s home and car. Washington admitted to the robbery.
Gerrod Richardson, age 40, of Baltimore, previously pleaded guilty to his participation in the robbery and was sentenced to 28 months in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments, and Baltimore City and County State’s Attorney=s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and James Wallner, who prosecuted the case.
Metro Station Armed Carjacker Pleads GuiltyRead the Press Release
Carjacking Victim Shot and Seriously Injured
Greenbelt, Maryland – Samuel Damien Bynum, age 23, of Washington, D.C., pleaded guilty today to conspiring to use a gun during a carjacking, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George=s County Police Department; Prince George=s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; and Maryland Attorney General Douglas F. Gansler.
“Through coordinated efforts of local, state and federal law enforcement agencies, a gang of dangerous carjackers has been put out of business,” said U.S. Attorney Rod J. Rosenstein.
According to his plea agreement, beginning in January 2011, Bynum conspired with others to commit armed carjackings in Prince George’s and Montgomery Counties. On May 25, 2011, Bynum and co-conspirators drove to the Largo Metro Station in Largo, Maryland in a car they had stolen during a carjacking at the New Carrollton Metro Station a few days earlier. Bynum saw two people park their Camaro in the garage and followed them into the stairwell. Bynum told law enforcement that he blocked the stairwell so that his co-conspirators, who were armed with handguns, could rob the victims. Bynum or a conspirator hit one of the victims with a handgun, but they were unable to steal the victim’s car keys. Bynum and his conspirators fled, but returned a short time later to steal the Camaro after finding the keys to the car during their flight. Upon returning to the area, a co-conspirator gave Bynum one of the handguns and told Bynum to start shooting if the victims did anything. As one of the victims attempted to get into the car, Bynum and his conspirators shot several times at both victims. One of the victims was struck by a bullet and suffered permanent bodily injury requiring significant and ongoing medical attention.
Two alleged co-conspirators have been charged in federal court and another was prosecuted in state court.
Bynum had previously purchased the handgun he used in the carjacking. Bynum had previously been convicted of a felony and was prohibited from possessing a gun and ammunition.
Bynum faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. U.S. District Judge Paul W. Grimm scheduled sentencing for May 6, 2014 at 11:00 a.m.United States Attorney Rod J. Rosenstein commended the FBI, the Prince George’s and Montgomery Counties Police Departments and State’s Attorney’s Offices, and Maryland Attorney General=s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who are prosecuting the case.
Kentland Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Alexander Williams, Jr. sentenced Brian Hudson, a/k/a “Country,” age 33, of Hyattsville, Maryland, today to 10 years in prison followed by five years of supervised release for possession with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; 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 Hudson’s plea agreement, from June 2010 to August 2011, Hudson conspired with Philip Whitehurst and others to distribute cocaine in the Kentland area in Landover, Maryland. Whitehurst maintained a succession of distribution houses near the Kentland area, including a location in an apartment complex on Sheriff Road in Hyattsville, Maryland. During the investigation, law enforcement intercepted numerous calls where Hudson was overheard discussing the sale of cocaine with Whitehurst. During the conspiracy, Hudson also sold 3.5 grams of crack cocaine to a source, who conducted the purchase at the direction of the Prince George’s County Police Department. On February 21, 2012, Prince George’s County police officers and FBI Task Force officers blocked Hudson’s car when he attempted to leave his apartment. Hudson rammed several of the police vehicles with his car and attempted to run away before he was arrested. Hudson admits that he was responsible for the distribution of between five and 15 kilograms of cocaine during the conspiracy.Philip Whitehurst, a/k/a Lil Phil, age 32, of Bowie, Maryland, was previously sentenced to 294 months in prison for conspiring to distribute and possess with intent to distribute between 2.8 and 8.4 kilograms of crack cocaine. Twenty-one other Kentland co-conspirators have been sentenced to between 27 and 210 months in prison.
United States Attorney Rod J. Rosenstein commended the FBI, DEA, 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 Attorneys David I. Salem, Arun G. Rao and Thomas M. Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.Clinton Drug Dealer Exiled to over 29 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Alexander Williams, Jr. sentenced Shaun Orlando Grier, age 46, of Clinton, Maryland, today to 350 months in prison followed by eight years of supervised release for possession with intent to distribute phencyclidine, commonly referred to as PCP; possession with intent to distribute cocaine base, commonly referred to as crack; being a felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking offense. Judge Williams enhanced Grier’s sentence upon finding that he is an armed career criminal based on five previous drug, gun and violent crime offenses.
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; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Chief Mark A. Magaw of the Prince George's County Police Department; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Prince George's County State’s Attorney Angela D. Alsobrooks.
According to evidence presented at his six day trial, on February 27, 2013, after a K-9 dog alerted to a package Grier sent and a search warrant was obtained, U.S. Postal Inspection Service opened the package and found $30,000. A search warrant was obtained for Grier’s residence and agents seized 21.6 grams of PCP; 54.6 grams of crack; numerous Ziploc bags containing a total of .78 grams of cocaine hydrochloride, 0.76 grams of heroin, 0.43 grams of crack, 1.44 grams of heroin and marijuana; drug paraphernalia; a loaded pistol; and a box of bullets. From Grier’s car, agents also seized a back pack containing a bottle which contained 24.2 grams of PCP, a plastic bag containing approximately 164.2 grams of marijuana, a scale, a revolver and a loaded pistol.
United States Attorney Rod J. Rosenstein commended the DEA, U.S. Postal Inspection Service - Washington Division, the Prince George's County Police Department, IRS- Criminal Investigation and Prince George's County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted the case.
Child Sex Trafficker Sentenced to over 21 Years in PrisonRead the Press Release
Prostituted a 13 Year Old Girl and Gave Her Alcohol and Drugs
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Daniel Burton, a/k/a Snoop, age 30, of Capitol Heights, Maryland today to 262 months in prison followed by lifetime supervised release. Judge Chasanow ordered that upon his release from prison, Burton must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“This is an egregious case because the ‘prostitute’ was a 13- year old child,” said U.S. Attorney Rod J. Rosenstein. “The lengthy sentence should send a powerful message that sex trafficking of children will not be tolerated in Maryland.”
According to his plea agreement, in March 2008, Burton asked a 13 year old girl walking near her home for her phone number, which she provided. Burton began calling the girl and eventually recruited her to work as a prostitute. Burton drove her to hotels, photographed her in lingerie, and advertised her on Craigslist for sexual services. The girl had sex with many clients that responded to the ads and Burton kept all the money she earned. Burton provided the girl with alcohol, marijuana and ecstasy.
On April 1, 2008, police responded to a complaint at a hotel where they found Burton and the girl in a room. Burton claimed the girl was a relative and police arranged for the girl to return home. Burton subsequently picked the girl up at her home and continued prostituting her.
On April 8, 2008, law enforcement saw a Craigslist ad for the girl’s sexual services and arranged a “date.” Law enforcement arrived at the hotel and arrested Burton who was sitting outside.
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 and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, and Assistant U.S. Attorney Kristi N. O’Malley who prosecuted the case.
Potomac Man Sentenced to 8 Years in Prison for Conspiring to Illegally Provide Satellite Services to IranRead the Press Release
Conspiracy Resulted in Launching of an Iranian Earth Observation Satellite;
Front Company Created to Conceal Iranian InvolvementGreenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Nader Modanlo, a/k/a Nader Modanlou, a/k/a Nader Modanlu, age 53, of Potomac, Maryland, a naturalized U.S. citizen born in Iran, today to eight years in prison followed by three years of supervised release for conspiring to illegally provide satellite related services to Iran in violation of the International Emergency Economic Powers Act, two counts of violating the Iran Trade Embargo, money laundering and obstruction of bankruptcy proceedings. Judge Messitte also ordered Modanlo to forfeit $10 million.
As a result of the conspiracy, an Iranian earth observation satellite equipped with a camera was launched into space from Russia on October 27, 2005. The launch was the first-ever Iranian satellite put into orbit.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service, Mid-Atlantic Field Office.
"Nader Modanlo violated the law by helping Iran launch communications satellites," said U.S. Attorney Rod J. Rosenstein. "The Iran Trade Embargo prohibits Americans from supplying goods, technology and services to Iran directly or indirectly."
“This sentencing is the result of a complex, decade-long HSI investigation that spanned multiple countries and involved close partnership with the U.S. Attorney’s Office for the District of Maryland, the Defense Criminal Investigative Service and the Internal Revenue Service,” said HSI Baltimore Special Agent in Charge William Winter. “This investigation shows that HSI special agents will tenaciously pursue those who attempt to illegally export sensitive technologies and threaten the security of the United States by willfully violating our customs laws.”
“Through the joint efforts of IRS Criminal Investigation with our domestic and international law enforcement partners, Modanlo was brought to justice and convicted,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s sentencing is a reminder that IRS Criminal Investigation is committed to following the money trail across the globe and will not be deterred by the use of front companies and sophisticated financial transactions that hide the real ownership of the proceeds of criminal activity.”
“The sentencing action handed down today should send a clear message that the Defense Criminal Investigative Service (DCIS) and its law enforcement partners will aggressively and tirelessly pursue and prosecute anyone who willfully violates laws that are designed to preserve and protect our nation’s most critical technologies and resources,” said Robert E. Craig, Jr., Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “DCIS, the criminal investigative arm of the Office of Inspector General, Department of Defense (DoD), is committed to pursuing cases involving the illegal transfer of U.S. Defense Department-related technologies around the world and ensuring the safety of America’s warfighters and all Americans.”
The President of the United States issued an Executive Order in 1995 imposing a trade embargo against Iran, after finding that Iran's policies and actions posed a threat to the national security of the United States. Under the embargo, the Department of the Treasury, through the Office of Foreign Assets Control, issued the Iranian Transactions Regulations, which prohibited the export, re-export, sale or supply, directly or indirectly, by a U.S. citizen, of goods, technology or services to Iran or the Government of Iran, without prior governmental authorization.
According to evidence presented at the six week trial, Modanlo was a mechanical engineer who received science and engineering degrees from George Washington University. Modanlo represented that he was an internationally-recognized expert on strategic policy and finances affecting the space-based telecommunications industry, and that he managed space and science programs for the Department of Defense, NASA and the industry.
Trial evidence showed that from January 2000 through November 27, 2007, Modanlo and others concocted an elaborate scheme to evade the Iran trade embargo to conceal Iranian involvement in prohibited activities and transactions. Beginning in 1992, Modanlo was the principal owner, chairman and president of Final Analysis, Inc. (FAI) in Maryland. Beginning in 1994, FAI contracted with POLYOT, an aerospace enterprise company owned by the government of the Russian Federation, to launch FAI telecommunications satellites. Between 1995 through 2000, FAI and POLYOT launched a satellite purchased by FAI, and designed, constructed and launched a second satellite, both from Plesetsk, Russia. Modanlo and other FAI personnel met with POLYOT officials as part of that relationship. As required by law, Modanlo obtained U.S. export licenses in order to export and launch the telecommunications satellites and other equipment from Russia.
In November 2001, Modanlo established New York Satellite Industries, LLC, (NYSI) after creditors filed a petition to place FAI into involuntary bankruptcy. NYSI purchased FAI's assets and Modanlo served as chairman and managing member of NYSI, using his home address as NYSI's business address.
Beginning in 2000, Modanlo brokered an agreement between POLYOT and Iran to construct and launch a satellite. Between the summer of 2001 and December 2001, Modanlo engaged in numerous meetings with POLYOT officials to broker Iran=s satellite program. In December 2001, several Iranian officials, including Sirous Naseri, a former Iranian Amabassador to Switzerland, went to Switzerland to express interest in "investing" in NYSI by interposing a Swiss company, because "the U.S. ha[d] sanctions in place against Iran," and direct investment would therefore be "problematic." Naseri, Reza Heidari, Mohammad Modares and Modanlo then went to Switzerland in April 2002 to work out the details of forming Prospect Telecom in order to conceal Iranian participation as an investor/lender in Modanlo's satellite telecommunications activities. Between April and June 2002, Heidari, Mohammad Modares and Abdol Mehrdad established Prospect Telecom and opened a bank account in Switzerland in the name of Prospect Telecom.
Heidari, Modares, and Mehrdad then caused $10 million to be wired into the Prospect Telecom bank account from numerous foreign accounts, including from China and Dubai, and then almost immediately wired the $10 million to Modanlo's NYSI account in Bowie, Maryland, in consideration for Modanlo’s assistance to Iran and the Iranians in brokering the satellite agreement with Russia, and for NYSI providing telecommunications services in support of that agreement. Modanlo also had agreed that NYSI would assist in obtaining telecommunications service provider licenses for the owners of Prospect Telecom and for the benefit of the Islamic Republic of Iran.
In October 2005, as a result of the efforts of Modanlo and his conspirators, POLYOT launched Iran=s first-ever satellite, a remote sensing and telecommunications satellite from Russia.
From 2005 to 2007, Modanlo made false statements and concealed information about the creation and ownership of Prospect Telecom during bankruptcy proceedings, including that Modanlo and co-conspirators had arranged for the formation of Prospect telecom to conceal Iranian involvement.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore, DCIS and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Stuart Berman, who prosecuted the case.
Bank Employee Sentenced to Prison for Failing to File Currency Transaction Reports on Drug ProceedsRead the Press Release
Accepted Payment from Drug Dealer for Converting Proceeds from Small Bills to $100 Bills
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Sabrina Nicole Fitts, age 29, of Baltimore, Maryland, today to one month in prison, followed by eight months of home detention, for failing to file currency transaction reports on suspected drug proceeds. Judge Bredar also ordered Fitts to perform 250 hours of community service and to forfeit $5,000 she was paid by a drug dealer for converting the drug proceeds.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to Fitts’ plea agreement, Fitts was the head teller at the Perry Hall branch of M&T Bank. On at least eight occasions over a period of two to three years, Fitts converted the proceeds from the sale of illegal drugs from small denomination bills (i.e. $5, $10 and $20 bills) to $100 bills, on behalf of the leader of drug trafficking organization. The amounts involved in each transaction ranged from $50,000 to $100,000 and Fitts converted the bills without filing or having anyone else at the bank file a currency transaction report or suspicious activity report, as she was required by law to do. For example, on April 18, 2013, the drug dealer called Fitts to arrange to convert $100,000, gave Fitts $100,000 in small denomination bills in a bag or backpack, and returned later the same day to retrieve the $100 bills. On each occasion, the drug dealer paid Fitts one percent of the amount involved as her fee. Fitts admitted she received $5,000 from the drug dealer.As head teller at the bank, Fitts was familiar with the currency transaction reporting requirements, and in fact had attended anti-money laundering training annually since at least 2009.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Stefan D. Cassella, who prosecuted the case.Baltimore Man Pleads Guilty to Producing Child Pornography and Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
His Ex-Wife Pleads Guilty to Distribution of Child Pornography
Baltimore, Maryland – David Ralph Fisher, age 43, of Baltimore, pleaded guilty today to producing child pornography and attempting to coerce and entice a minor to engage in sexually explicit activity. His ex-wife, Lori Fisher, age 46, of St. Cloud, Florida, pleaded guilty to distribution of child pornography.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to their plea agreements, after repeated requests from David Fisher, Lori Fisher produced multiple sexually explicit photographs of two minor females, on at least two occasions between August and December of 2008. Lori Fisher took the photographs with her cell phone, then sent the images electronically to David Fisher via text message.
On November 4, 2012, the Baltimore Police Department (BPD) received information that images and videos of child pornography were observed on David Fisher’s external hard drive, located at his residence. The external hard drive was provided to the BPD and examined. Multiple files depicting minors engaged in sexually explicit conduct were found. A search warrant was subsequently executed at David Fisher’s residence on November 20, 2012, and computers, cell phones and other items were seized and forensically examined. Sexually explicit email messages with attachments were recovered in which Fisher solicited child pornography from other individuals, and shared child pornography from his collection. Also, in February 2013, law enforcement confirmed that some of the sexually explicit images found on David’s computer and cell phone were images of the two minor girls that Lori Fisher had photographed and sent to David. In all, over 2200 images and 100 videos of minors engaged in sexually explicit conduct, including prepubescent minors, were recovered.
On March 14, 2013, a BPD detective working in an undercover capacity contacted David Fisher on his Facebook profile posing as a 14 year old female. Between March 14 and April 11, 2013, David Fisher communicated with the undercover detective through Facebook and email. For many of these communications, Fisher was using a computer at a public library because his computer was seized during the search of his residence in November 2012. David Fisher asked the undercover detective to send him sexually explicit photographs and sent the undercover detective sexually explicit photographs of himself. In addition, Fisher gave the undercover detective his cell phone number and proposed meeting to engage in sexual activity. A meeting was arranged for April 11, 2013. Fisher was arrested when he arrived at the meeting location at the appointed time.
As part of their plea agreements, David and Lori Fisher will be required to register as a sex offender in the place where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).
David Fisher faces a minimum mandatory sentence of 15 years and a maximum of 30 years in prison for production of child pornography, and a minimum of 10 years in prison and a maximum of life in prison for coercing and enticing a minor to engage in sexually explicit conduct. Lori Fisher faces a minimum of five years and a maximum of 20 years in prison for distribution of child pornography. U.S. District Judge James K. Bredar has scheduled sentencing for David Fisher on April 3, 2014 at 3:00 p.m. and for Lori Fisher on June 11, 2014 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
MS-13 Gang Member Sentenced to 18 Months in Prison for Illegally Re-Entering the United States After Being DeportedRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Hector Daniel Villanueva-Cortes, a/k/a “Muertito,” age 23, a Honduran national residing in Hyattsville, Maryland, today to 18 months in prison, followed by one year of supervised release, for illegal re-entry after having been deported from the United States. Judge Titus enhanced Villanueva-Cortes’ sentence upon finding that he was a member of the Mara Salvatruchas gang, commonly known as MS-13.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Villanueva-Cortes’ plea agreement and other court documents, Villanueva-Cortes initially entered the United States illegally in June 2004, and was deported back to Honduras in April 2010. He illegally re-entered the United States sometime before May 2013, when he was found by HSI special agents and Prince George’s County Police Officers at a residence in Hyattsville in the company of a known MS-13 gang member. A search of the residence revealed evidence of gang activity. Additional investigation revealed that Villanueva-Cortes is a high ranking member of the Sailors Lokotes Westside Salvatruchas (SLWS), a clique of the MS-13 gang located in Southern Maryland. Prior to May 20, 2013, Prince George’s County Police officers had encountered Villanueva-Cortes on several occasions with other known MS-13 members.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O. Hayes and William D. Moomau, who prosecuted the case.Baltimore Business Owner Pleads Guilty in Fraud SchemeRead the Press Release
Directed Persons to Steal Merchandise from Retail Stores and Exchange the Stolen Items for Gift Cards
Baltimore, Maryland – John Tadros, age 45, of Baltimore, pleaded guilty today to wire fraud conspiracy and money laundering.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service B Baltimore Field Office.
Tadros owned Busy Bees Convenience Mart located at 335 South Monroe Street, and J&J’s Bar and Liquor located at 1801 Ramsay Street, both in Baltimore. According to his plea agreement, from January 2009 to February 2013, Tadros directed Melissa Perry, Deanna Lynch, Mohamed Al-Omeri and others, known as boosters, to steal merchandise from large retail stores throughout Baltimore, Anne Arundel, Prince George’s, Howard and Harford Counties in Maryland, as well as Virginia, Pennsylvania and Delaware. The boosters then returned the stolen items in exchange for store gift cards. They used modified Maryland driver’s licenses that contained the personal identifier information of actual persons, without those persons’ knowledge, when returning the stolen items without a receipt.
Tadros bought the fraudulently obtained gift cards from the boosters for 50% of the card’s value. Tadros told the boosters to target specific stores at specific locations, and advised them of the best days to steal merchandise and the manner by which they modified their Maryland driver’s licenses. Tadros also collected the welfare benefit debit cards of the boosters which he held as collateral if he deemed that the boosters owed him money, and returned the benefit cards to the boosters for 50% of the card’s value. Tadros used the gift cards to purchase personal home goods, and supplies for his businesses and rental properties.
On February 27, 2013, the U.S. Secret Service executed a search warrant and seized 32 fraudulently obtained gift cards from his home. From Busy Bee, agents also seized 329 retail store receipts for purchases made with fraudulently obtained gift cards.
The actual loss to retailers in Maryland caused by the scheme is $401,326.12.
Tadros faces a maximum sentence of 20 years in prison and a $250,000 fine for the wire fraud conspiracy and a $500,000 fine for money laundering. U.S. District Judge George L. Russell III scheduled his sentencing for April 14, 2014 at 9:30 a.m.
Melissa Perry, age 34; Deanna Lynch, age 44; and Mohamed Al-Omeri, age 39, previously pleaded guilty to their participation in the scheme and scheduled to be sentenced on April 3, March 7 and April 11, 2014, respectively.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service B Baltimore Field Office for its work in the investigation, and commended the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorney Mark W. Crooks, who is prosecuting the case.
Two More Retailers Plead Guilty to Food Stamp FraudRead the Press Release
To Date, Four Retailers Have Pleaded Guilty to Food Stamp Fraud
Baltimore, Maryland – Dae Cho, age 66, and her son Hyung Cho, age 40, both of Catonsville, Maryland, and citizens of Korea who are illegally present in the United States, pleaded guilty today to food stamp and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash.
The 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.
Dae Cho co-owned K&S Market, a convenience store located at 3910 West Belvedere Avenue in Baltimore. Dae and Hyung Cho operated the store. According to their plea agreements and court documents, the store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Dae Cho completed the required government form in March of 2004 to become an authorized retailer in the program. Dae and Hyung received training and instruction regarding the requirements of the food stamp program, including that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from June 2011 through May 2013, Dae and Hyung Cho exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for themselves, using the cash to pay rent and other bills. Dae Cho has estimated that about $25,000 to $30,000 worth of food stamp benefits were exchanged in this manner per month and that this occurred approximately 50 times a day.
As a result of these unlawful cash transactions, Dae and Hyung Cho obtained more than $1,400,000 in payments for food sales that never occurred.
The defendants face a maximum sentence of 20 years in prison. U.S. District Judge George L. Russell, III scheduled their sentencing for February 21, 2014, at 10:00 a.m. The defendants have agreed to the entry of an order to forfeit $1,400,000. The defendants have further agreed not to object to any removal proceedings that may be brought to remove them from the United States upon completion of their sentence.Amara Cisse, age 50, who owned Simbo Food Mart, located at 2103 West Pratt Street in Baltimore, and his wife Fanta Keita, age 45, who worked at the store, both of Windsor Mill, Maryland, pleaded guilty on December 3, 2013 to food stamp fraud in connection with a similar scheme to illegally redeem food stamp benefits in exchange for cash. They 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 Judson T. Mihok, who is prosecuting the case.
Repeat Fraudster Sentenced for Falsely Claiming over $23 Million in Tax Refunds and Scheming to Defraud Credit UnionsRead the Press Release
IRS Paid More Than $12 Million in “Refunds” to Illegal Alien Previously Convicted of Fraud
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Makushamari Gozo, age 41, a native of Zimbabwe residing in Baltimore, Maryland, to 11 years in prison, followed by five years of supervised release, for filing claims for more than $23 million in fraudulent alternative fuel tax credits and refunds and personal tax refunds, as well as engaging in schemes to fraudulently obtain more than $3 million in loans from credit unions. Judge Blake also ordered Gozo to pay restitution totaling $202,667.23.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Gozo previously was convicted of mortgage fraud in 2004 and sentenced to serve 57 months in federal prison. He was determined to be a deportable alien, but was not deported because of issues related to his travel documents.
“Makushamari Gozo was convicted of mortgage fraud in 2004, sentenced to serve 57 months in federal prison, and escaped deportation only because of a technicality,” said U.S. Attorney Rod J. Rosenstein. “He responded by filing fabricated tax returns claiming refunds, which caused the IRS to issue checks for more than $12 million in fraudulent refunds. Mr. Gozo also attempted to obtain over $3 million in fraudulent loans from credit unions.”
According to evidence presented at his one week trial, beginning in 2010, Gozo used several entities he controlled to file fraudulent claims for tax refunds. Gozo filed individual income tax returns falsely claiming that from 2007 to 2011, he earned wages from two of his companies and was entitled to tax refunds totaling more the $417,000. In addition, Gozo filed tax returns falsely claiming that a third company had sustained losses in 2007 through 2009 which entitled Gozo to more than $76,000 in tax refunds. From October 31, 2011 to February 17, 2012, Gozo also filed false excise tax returns claiming that a fourth company was entitled to approximately $22,657,137 in alternative fuel tax refunds and credits based on having purchased or used over 39 million gallons of alternative fuel. In fact, the entities were all sham businesses that existed in name only.
Trial evidence also showed that between July and September 2010, Gozo defrauded several credit unions to obtain fraudulent automobile and business loans. Gozo submitted four loan applications to the credit unions in which he misrepresented his income and employment in order to buy luxury automobiles that Gozo never actually purchased. Gozo also submitted a fraudulent loan application for a $3 million business loan in the name of another one of his sham companies. On the business loan application, Gozo made fraudulent statements about the financial and business affairs of the company in order to make it appear financially successful, and submitted several false corporate tax returns claiming that the company controlled millions of dollars in assets.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant United States Attorneys David I. Sharfstein and Peter M. Nothstein, who prosecuted the case.
Driver in Car Crash Pleads Guilty to Involuntary ManslaughterRead the Press Release
Greenbelt, Maryland – Josue Balbino Ruiz Reyes, age 19, of Hyattsville, Maryland pleaded guilty today to involuntary manslaughter in connection with the death of a passenger resulting from a car collision.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Chief of Police Robert Maclean of the U.S. Park Police.
According to his plea agreement, on August 22, 2013 at about 5:30 a.m., Ruiz Reyes drove with a passenger in his SUV southbound on the Baltimore-Washington Parkway from the Glen Burnie area. He had been drinking alcohol earlier that morning and the previous night. Near the route 197 exit, he lost control of his SUV and drove onto the shoulder of the highway. His SUV rolled over completely and landed upright, breaking all the windows and ejecting the passenger. Ruiz Reyes drove away.Numerous other motorists called 911. The U.S. Park Police found Ruiz Reyes driving his badly damaged vehicle on the ramp from the Parkway to Powder Mill Road, about four miles south of the location of the crash. Four police cruisers forced the vehicle to a stop. The right side of the SUV was completely smashed. The passenger side door would not open. Ruiz Reyes told the police he had two beers earlier. He was shirtless, and had minor bruises and cuts on his body. Ruiz Reyes was taken to the hospital where a blood test was given. His blood-alcohol level was .10 grams of alcohol per 100 mL of blood.
Meanwhile, U.S. Park Police officers at the scene of the roll-over found the passenger’s body lying in the grass, where her body had been ejected from the SUV. She was pronounced dead. Ruiz Reyes told police that the passenger had gotten out of the car on the side of the road voluntarily. His Maryland driving privileges were suspended.
Ruiz Reyes faces a maximum sentence of eight years in prison followed by three years of supervised release and a fine of $250,000. U.S. District Judge Roger W. Titus scheduled sentencing for April 7, 2014 at 4:00 p.m.
United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis R. Weisman, who is prosecuting the case.Bulgarian Citizen Sentenced to over 3 Years in Prison for Using ATM Skimmers to Obtain over $54,000 from Victims’ AccountsRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Bozhidar Lazarov, age 40, a Bulgarian national residing in Chicago, Illinois, today to 39 months in prison, followed by three years of supervised release, for conspiring to commit bank fraud and aggravated identity theft in connection with an ATM skimming scheme. Judge Blake also ordered Lazarov to pay restitution of $54,883.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his guilty plea, from at least May through November 2010, Lazarov and others illegally obtained debit and credit card account numbers by placing ATM skimmers over the slot where customers inserted their debit or credit cards, thereby capturing the account information as the card passed through the skimmer. The conspirators used a miniature camera to capture personal identification numbers (PINs) as the customers entered them on the keypad. Lazarov and others then encoded the magnetic strips of plastic cards, such as gift cards, with the compromised account numbers and information which they used, along with the corresponding PIN numbers, to make unauthorized cash withdrawals directly from the victims’ bank accounts.
For example, on May 29 and 30, 2010, co-conspirator Stoycho Lazarov, who is Bozhidar’s brother, installed an ATM skimmer on bank ATMs in Westminster and Finksburg, Maryland, which Bozhidar Lazarov removed a few hours later. Bozhidar Lazarov and others used the stolen debit card numbers and PINs to withdraw at least $30,536 from 20 victims’ accounts. On October 17, 2010, Bozhidar Lazarov and others used a skimming device at a bank ATM in Ellicott City, Maryland, subsequently using the stolen account information and PINs to illegally withdraw at least $24,347 from at least 19 victims’ accounts.
Bozhidar Lazarov obtained at least $54,883 from 39 individual bank customers and two banks during his participation in the scheme.
Stoycho Ivanov Lazarov, age 41, a Bulgarian citizen residing in Millersville, Maryland, previously pleaded guilty to the same charges, and was sentenced to four years in prison and ordered to pay restitution of $185,512.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation and praised Assistant U.S. Attorneys Kristi N. O’Malley and Tamera Fine, who prosecuted the case.
Baltimore Brothel Operator Sentenced to over 11 Years in Prison for Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Franklin Roosevelt Coit, a/k/a “Frank,” and “Nitty,” age 35, of Baltimore, today to 140 months in prison, followed by five years of supervised release, for sex trafficking of a minor, in connection with a prostitution business he ran with co-defendant Jamar Simmons. Judge Russell ordered that upon his release from prison, Coit must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to their plea agreements, Coit and Simmons operated a brothel in Baltimore City on Madison Avenue. Simmons was a Baltimore City firefighter at the time of the offense. They also rented hotel rooms and a residence in Maryland for prostitution. Coit and Simmons falsely advertised online for exotic dancing and an escort service to recruit females, including at least one minor female, from Maryland and other states. They arranged to transport the women from Delaware, Florida, New York, Pennsylvania, Texas, South Dakota and Virginia to Maryland to engage in prostitution. Many of the women they recruited were in financial distress, had no place to live, or were otherwise vulnerable.Coit and Simmons took sexually explicit pictures of the females they recruited, and posted the pictures on the escort section of an online advertising website along with phone numbers to call to schedule a “date,” or sex. Simmons set the pricing for the sex acts, and instructed the females on how to arrange “dates” over the phone and how to avoid detection by law enforcement. Coit and Simmons shared the cash proceeds of the prostitution business, and used a gun to protect the business and its cash proceeds.
Simmons pleaded guilty to the same charge. Judge Russell III sentenced Jamar Marvin Simmons, a/k/a “Mar,” age 31, of Baltimore, on December 13, 2013 to 15 years in prison.
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 www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments and Baltimore City State’s Attorney’s Office for their work in the investigation, and Baltimore City Assistant State's Attorney Aaliyah Muhammad who assisted in the prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.26 Indicted on Racketeering and Drug Charges Related to Violence and Drug Dealing in the Cherry Hill Area of BaltimoreRead the Press Release
Indictments Allege Gangs Involved in Five Murders, Shootings and Bank Robberies
Baltimore, Maryland - A federal grand jury has indicted 21 individuals in two separate indictments on racketeering conspiracy and drug charges related to their alleged drug dealing and violence in the Cherry Hill section of Baltimore. In a third indictment, an additional five defendants are charged in a drug conspiracy in the same area. The indictments were returned on December 4, and December 11, 2013, and unsealed today upon the arrest of 11 defendants. Nine of the defendants were already detained on state charges.
The indictments were 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
“The defendants allegedly belong to rival drug gangs that have terrorized Cherry Hill, resulting in five murders as well as numerous shootings and robberies,” said U.S. Attorney Rod J. Rosenstein. “For other criminals in Cherry Hill who were not arrested today, these indictments send a clear message to stop the violence or be prepared to spend the rest of your life in a federal prison far from home.”
Fifteen individuals are charged in a racketeering conspiracy as well as in a conspiracy to distribute heroin, powder and crack cocaine, and oxycodone as members of the “UDH” organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” On July 21, 2013, one of the alleged members of UDH, Gregory Sykes-Bey, posted the following message to Facebook: “They say ur nobody until somebody kills u but where im from ur nobody until u kill somebody.”
In the second indictment, six individuals are charged in a separate racketeering conspiracy as members of the Little Spelman organization, which operates in the “Down the Hill,” section of Cherry Hill, as well as a conspiracy to distribute heroin, powder and crack cocaine and marijuana.
According to the indictments, the members of UDH and Little Spelman were part of a racketeering enterprise and protected their power, territory and profits through the use of violence, threats of violence, intimidation, robbery, narcotics trafficking and obstruction of justice. Specifically, the indictments allege that beginning in 2011, UDH and Little Spelman were involved in a dispute that resulted in three murders and the shootings of two others. In addition, the indictments allege that members of UDH committed two bank robberies.
Five other defendants are charged with conspiracy to distribute crack cocaine and heroin, and the UDH indictment alleges that UDH was in a long-running dispute with an organization known as Coppin Court that is involved in criminal activity in the ‘Down the Hill’ section of Cherry Hill.
All 26 defendants face a maximum sentence of life in prison.
The defendants arrested today are expected to have an initial appearance in U.S. District Court in Baltimore. Initial appearances for those defendants detained on state charges have not yet been scheduled.
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 ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Joshua Kaul and Brooke Carey, who are prosecuting the case.
See Attachment A for list of defendants.
ATTACHMENT A
Cherry Hill DefendantsUDH Indictment:
Steven Jackson, a/k/a Cutty, age 23, of Baltimore;
Eugene Anderson, a/k/a Petey, age 36, of Baltimore;
Asim Benns, a/k/a Seem, age 30, of Baltimore;
Ronald Hall, a/k/a JJ, age 37, of Baltimore;
Delano Johnson, a/k/a Lano, age 36, of Baltimore;
Tony Johnson, a/k/a Tony Mack, age 29, of Baltimore;
Rashaud Kearney, a/k/a TT, age 20, of Baltimore;
Russell Lumpkins, a/k/a Mr. Man, age 26, of Baltimore;
Demond Pinkney, a/k/a Cal, age 28, of Baltimore;
Clarence Shipley, a/k/a Mook, age 26, of Baltimore;
Gregory Sykes-Bey, age 20, of Baltimore;
Bryan Turner, a/k/a BT, age 28, of Baltimore; and
Antione White, a/k/a Twan, age 25, of Baltimore.Little Spelman Indictment:
Davon Martin, a/k/a Ack and Black, age 25, of Baltimore;
Brian Parker, a/k/a ES, age 35, of Baltimore;
Shaquan Robinson, a/k/a Quanny, age 22, of Baltimore; and
Richard Williams, a/k/a Wis, age 22, of Baltimore.Third Indictment:
Danna Fraser, a/k/a Stroke, age 25, of Baltimore;
Ernest Thomas, a/k/a EJ, age 25, of Baltimore; and
Melvin Truesdale, a/k/a MJ, age 20, of Baltimore.Leader of Kentland Drug Organization Sentenced to over 24 Years in PrisonRead the Press Release
Total of 22 Defendants Prosecuted in Federal Conspiracy Case Targeting Kentland Neighborhood
Greenbelt, Maryland – U.S. District Judge Alexander Williams, Jr. sentenced Philip Whitehurst, a/k/a Lil Phil, age 32, of Bowie, Maryland, today to 294 months in prison, followed by five years of supervised release, for conspiring to distribute and possess with intent to distribute between 2.8 and 8.4 kilograms of crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Mark A. Magaw of the Prince George=s County Police Department; and Prince George=s County State’s Attorney Angela D. Alsobrooks.
“Federal authorities worked with the Prince George’s County Police Department and State’s Attorney’s Office to dismantle a criminal organization that dealt drugs and despair in the Kentland area of Landover, Maryland,” said U.S. Attorney Rod J. Rosenstein. “This sort of coordinated effort contributes to the crime reduction in the county.”
According to court documents, from June 2010 to August 2011, Whitehurst organized and led a large scale cocaine distribution conspiracy that operated in the Kentland area in Landover, Maryland. Whitehurst maintained a succession of distribution houses near the Kentland area, including a location in an apartment complex on Sheriff Road in Hyattsville, Maryland. Whitehurst was responsible for the distribution of between 2.4 and 8.4 kilograms of cocaine base during the conspiracy.
On September 28, 2011, FBI agents executed a search warrant at Whitehurst’s residence and seized a loaded semi-automatic firearm.
Co-conspirator Antonio Marshall, age 36, of College Park, Maryland, was sentenced to 78 months in prison this morning. Last week, Chris Vondell Rainey, age 43, was sentenced to nine years in prison, Jason Scrivner, age 34, was sentenced to 78 months in prison; and Kenneth Smith, age 30, was sentenced to 30 months in prison, for their participation in the drug conspiracy. Other defendants who participated in the drug conspiracy and have been sentenced include: Xavier D. Eccleston, age 36, of Bethesda, Maryland, who was sentenced to 210 months in prison after being convicted following an eight day trial; Shawn R. Lomax, age 35, of Capitol Heights, Maryland, who was sentenced to 148 months in prison; Demeco Savoy, age 34, of Laurel, and John Holt, age 32, of Temple Hills, Maryland, who were each sentenced to 10 years in prison; Barnell Banks, age 34, of Landover, Maryland, who was sentenced to eight years in prison; Markus J. Humphries, age 34, of Washington, D.C., and Rodney Jennings, age 41, of Suitland, Maryland, who were each sentenced to 70 months in prison; and Robert Sears, age 34, of Suitland, who was sentenced to five years in prison. Seven additional defendants have been convicted and are awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the FBI, DEA, 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 David I. Salem, Arun Rao and Thomas Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.Immigration Attorney Pleads Guilty to Bribing an Immigration OfficialRead the Press Release
Client Also Pleads Guilty to Immigration Fraud
Baltimore, Maryland – Attorney Kiran Dewan, age 59, of Woodbine, Maryland pleaded guilty late on December 13, 2013, to bribery, and one of his clients, Mohammad Khan, age 58, of Baltimore, also pleaded guilty to immigration fraud.
The pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.“Immigration attorneys hold positions of public trust and it is disturbing that anyone would defraud the very system in which they work for their own personal profit,” said HSI Special Agent in Charge in Baltimore William Winter. “Document and benefit fraud poses a significant vulnerability to our national security and exploits America's legal immigration system. Whether you are trying to illegally obtain an immigration benefit or facilitating the fraud, know this – you will be found, arrested and held accountable for your actions.”
Dewan operated the Law Offices of Dewan and Associates, P.C., located at 7100 Security Boulevard in Windsor Mill, Maryland. He held himself out as having experience handling immigration matters and as a certified public accountant.According to his plea agreement, from March 2011 to May 2013, Dewan conspired with clients, including Khan, Narayan Thapa and Amjad Israr, to bribe an immigration official who was willing, in return for cash, to provide immigration documents and benefits which would permit the clients to legally live and work in the United States. Unbeknownst to Dewan and the clients, the immigration contact was actually an undercover agent posing as a public official. Dewan’s clients paid $170,000 in cash to Dewan to bribe the “public official,” of which Dewan kept $50,000. In return for the bribes, the purported public official provided green cards for the clients.
Additionally, in March 2011, Dewan offered to pay the purported public official $5,000 to have a foreign national removed from the United States. Dewan was afraid that the foreign national was going to start his own accounting business and compete with Dewan. The purported public official pretended to issue the notice of removal, although in reality the USCIS had already decided to issue this notice independently. Dewan paid the $5,000 bribe in May 2011.
In the fall of 2011, Dewan offered to pay the purported public official another $5,000 to remove and add documents to the foreign national’s USCIS files. Dewan explained that he had previously submitted false tax returns to USCIS in support of the foreign national’s employment visa application and wanted those false tax returns replaced with new tax returns. In November, the purported public official pretended to provide the requested tax returns and Dewan subsequently paid the $5,000 bribe.
In 2012, Dewan also spoke extensively about his knowledge of establishing an overseas Hawala to transfer the purported public official’s alleged bribery profits. A Hawala allows an individual to transfer money overseas using personal connections, without the money going through traditional government monitored means like money transfer services or banks. Dewan stated that he had previously used this Hawala method for other clients, including a $400,000 transfer via a reverse Hawala method.
Dewan faces a maximum sentence of 15 years in prison and a $250,000 fine for bribery. U.S. District Judge William D. Quarles, Jr. scheduled Dewan’s sentencing for March 6, 2014, at 9:30 a.m.
Khan, a citizen of Pakistan living in Baltimore, who operated Pizza City in Brooklyn Park, Maryland, faces a maximum sentence of 10 years in prison and a $250,000 fine for immigration fraud. Judge Quarles scheduled Khan’s sentencing for February 25, 2014, at 1:00 p.m.
Amjad Israr, age 46, a Pakistani citizen living in Cheshire, Connecticut, who operated many convenience stores in Connecticut, pleaded guilty to conspiring to bribe an immigration official in order to obtain lawful permanent residence (green card) and employment authorization documents. Judge Quarles sentenced Israr to 15 months in prison on September 20, 2013.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department and USCIS Baltimore District Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Gregory R. Bockin, who are prosecuting the case.
Four Time Felon Exiled to over 10 Years in Prison for Illegal Possession of A Gun and Witness TamperingRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Gerod Simmons, age 30, of Lancaster, South Carolina, today to 125 months in prison followed by three years of supervised release for being a felon in possession of a firearm, and witness tampering.
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 Teresa Chambers of the U.S. Park Police.
According to his plea agreement, on September 1, 2012, Simmons was arrested in Maryland after police found a loaded .40 caliber pistol under the front passenger seat of a car where Simmons was sitting. Simmons was charged with being a felon in possession of a gun. The car was registered to his mother in Lancaster, South Carolina. The gun had been purchased by his co-defendant, Canyon Nelson, in Lancaster in 2011. Simmons had four previous drug convictions and was prohibited from possessing a gun.
Simmons was detained after his arrest and called Nelson almost every day during September and October, 2012. During a call on September 7, 2012, Simmons suggested that Nelson should say that she had placed the gun under the seat without his knowledge. In that phone call and two subsequent letters mailed to Nelson’s home, Simmons told Nelson to say that they had driven around town running errands on the morning of August 31, 2012, and that she placed the gun under the passenger seat without his knowledge, after he got out of the car at the bank where she cashed her paycheck.
On November 7, 2012, Nelson falsely testified before the grand jury that on August 31, 2012, she and Simmons had driven around town running errands. Nelson said she had paid her light bill and cashed her pay check at the bank. Investigation showed that the power company had no record of any payments made by Nelson or Simmons the morning of August 31, 2012. Video recordings of the bank lobby reveal that neither Nelson nor Simmons went into the building that morning.
Canyon Nelson, age 25, of Lancaster, South Carolina, previously pleaded guilty to making a false statement to the grand jury and was sentenced to five months in prison followed by three years of supervised release.
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 R. Weisman, and Special Assistant U.S. Attorney Jonathan Ophardt of the U.S. Justice Department, who prosecuted the case.
Former Baltimore City Firefighter Sentenced to 15 Years in Prison for Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jamar Marvin Simmons, a/k/a “Mar,” age 31, of Baltimore, today to 15 years in prison followed by five years of supervised release for sex trafficking of a minor, in connection with a prostitution business he ran with co-defendant Franklin Coit. Simmons was a Baltimore City firefighter at the time of the offense. Judge Russell ordered that upon his release from prison, Simmons must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to their plea agreements, Simmons and Coit operated a brothel in Baltimore City on Madison Avenue. They also rented hotel rooms and a residence in Maryland for prostitution. Simmons and Coit falsely advertised online for exotic dancing and an escort service to recruit females, including at least one minor female, from Maryland and other states. They arranged to transport the women from Delaware, Florida, New York, Pennsylvania, Texas, South Dakota and Virginia to Maryland to engage in prostitution. Many of the women recruited by Simmons and Coit were in financial distress, had no place to live, or were otherwise vulnerable.Simmons and Coit took sexually explicit pictures of the females they recruited, and posted the pictures on the escort section of an online advertising website along with phone numbers to call to schedule a “date,” or sex. Simmons set the pricing for the sex acts, and instructed the females on how to arrange “dates” over the phone and how to avoid detection by law enforcement. Simmons and Coit shared the cash proceeds of the prostitution business, and used a gun to protect the business and its cash proceeds.
Franklin Roosevelt Coit, a/k/a “Frank,” and “Nitty,” age 35, of Baltimore, pleaded guilty to the same charge and is scheduled to be sentenced on December 17, 2013 at 2:30 p.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments and Baltimore City State’s Attorney’s Office for their work in the investigation, and Baltimore City Assistant State's Attorney Aaliyah Muhammad who assisted in the prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.Conspirator in $220,000 Armored Car Robbery Exiled to over 7 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Kai Holt, age 38, of Waldorf, Maryland, today to 88 months in prison followed by five years of supervised release for conspiring to commit, and committing, the armed robbery of an armored vehicle, and conspiracy to possess, and possession of, a firearm in connection with 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; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to his plea agreement, in June 2012, Holt and co-defendants Carmen Camacho and John Williams began planning the robbery of an armored vehicle outside the Navy Federal Credit Union located at 12248 Rockville Pike in Rockville, Maryland. On June 12, Williams told Holt that the robbery would take place the next day.
On June 13, Holt armed himself with a loaded .45 caliber semiautomatic pistol and met with Williams and two other co-defendants, Marcus Brooks and Deangelo Williams. They traveled in two vehicles to the Navy Federal Credit Union. The conspirators drove around the area planning escape routes, and parked nearby waiting for the armored car to arrive. At 11:20 a.m., John Williams called Holt and told him to proceed with the robbery. Holt and Brooks walked towards the credit union where a courier was unloading cash from the back of the van for delivery to the credit union. Holt drew his pistol. The courier threw the bag of money on the ground and ran away. Brooks picked up the bag, which contained $220,000, and he and Holt ran back to their vehicles and fled. The co-conspirators traveled back to Prince George’s County where they divided the proceeds of the robbery.
Carmen Camacho, age 31, of Fort Washington, Maryland, pleaded guilty to his role in the robbery and is awaiting sentencing. John Bernard Williams, age 48, and Deangelo Williams, age 20, both of Fort Washington, and Marcus Brooks, age 21, of Lanham, Maryland, also pleaded guilty. John Williams was sentenced to 112 months in prison, Deangelo Williams was sentenced to three years in prison, and Brooks was sentenced to 61 months in prison.
United States Attorney Rod J. Rosenstein commended the FBI, ATF, Montgomery County Police Department, Prince George’s County Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Steven E. Swaney and William D. Moomau, who prosecuted the case.
Eleven Indicted for Alleged Conspiracy to Distribute Drugs, Launder Money and Sell Millions in Contraband CigarettesRead the Press Release
Criminal Proceeds Laundered Through Eastern Europe
Baltimore, Maryland - A federal grand jury has indicted 11 individuals on charges related to a conspiracy to traffic over $6.6 million in contraband cigarettes. The indictment was returned on December 3, 2013, and unsealed today upon the arrest of eight defendants and the execution of twelve search warrants.
Charged in the indictment are:
Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 41, of Owings Mills, Maryland;
Zarakh Yelizarov, age 51, of Baltimore, Maryland;
Salim Yusufov, age 43, of Baltimore;
Artur Zakharyan, age 52, of Owings Mills;
Ilgar Rakhamimov, age 39, of Owings Mills;
Timur Yusufov, age 35, of Baltimore;
Nikolay Zakharyan, age 23, of Owings Mills;
Adam Azerman, age 59, of Pikesville;
Shamil Novakhov, age 58, of Brooklyn, New York;
Yuliya Rakhamimov, age 33, of Owings Mills; and
Ruslan Ykiew, age 38, of Brooklyn, New York.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; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“The indictment alleges that the defendants participated in a criminal conspiracy to traffic in illegal drugs and contraband cigarettes and launder the criminal proceeds through wire transfers to Eastern European countries,” said U.S. Attorney Rod J. Rosenstein.
“FDA’s regulatory standards are designed to ensure the safety and quality of drugs distributed to American consumers,” said Special Agent-in-Charge Antoinette V. Henry, FDA’s Office of Criminal Investigations. “We will continue to work with our law enforcement partners to investigate all persons who disregard regulatory requirements and jeopardize the public health by participating in the distribution of unapproved products.”
The 42-count indictment alleges that the defendants are family members and associates who primarily live in northwest Baltimore County and New York City and operate businesses in the Pikesville area of Baltimore County, and in Baltimore City, including Healthway Pharmacy and Europe Restaurant. In addition to trafficking in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid, the indictment alleges that some of the defendants also have distributed oxycodone, sold drug samples and laundered money.
According to the indictment, the cigarette tax in Maryland is $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York is $4.35 per package of cigarettes ($43.50 per carton of cigarettes). Specifically, the indictment alleges that since December 2011, Elmar Rakhamimov has paid approximately $5.4 million for contraband cigarettes, which were received and stored at his residence in Maryland. The conspirators then transported the cigarettes to the New York area and resold them for a profit. According to the indictment, Elmar Rakhamimov, Artur Zakharyan and Ilgar Rakhamimov acted as a broker, middleman and distributor of contraband cigarettes and Nikolay Zakharyan, Adam Azerman, Shamil Novakhov andRuslan Ykiew transported contraband cigarettes to New York and other cities for resale. Elmar Rakhamimov and Yuliya Rakhamimov sometimes paid for the contraband cigarettes with prescription and counterfeit prescription drugs as well as other controlled substances. Elmar Rakhamimov and other conspirators used Rakhamimov’s residence and his restaurant to conduct the illegal transactions of contraband cigarettes and drugs. The indictment alleges that Salim Yusufov, who owned Healthway Pharmacy, received more than $81,000 in kickbacks for the contraband cigarette transactions.
Further, the indictment alleges that Elmar Rakhamimov and Zarakh Yelizarov conducted financial transactions involving the proceeds of the contraband cigarette sales, in order to conceal the nature, source, ownership and control of the proceeds of the illegal activity. Specifically, the indictment alleges that Rakhamimov and Yelizarov conducted wire transfers of cash from bank accounts they controlled in Latvia, Cyprus and Estonia.
In a separate indictment, Salim Yusufov, who owned and operated Healthway Pharmacy in Pikesville, is charged with illegally providing unapproved prescription drugs from Germany and Eastern Europe and sold them to customers. According to the indictment, Corvalol, also referred to Corvalolum, and Valocordin, is not approved by the FDA for distribution in the United States, although it is sold in Eastern European countries, where it is used to treat elevated blood pressure and as a tranquilizer and sedative. Valocordin and Corvalol contain large amounts of phenobarbital, a prescription drug regulated by the FDA. The indictment alleges that from July 23, 2010 through July 14, 2011, Yusufov imported and distributed Valocordin, dispensing the drug without a prescription.
All the defendants except Yuliya Rakhamimov face a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes and for each of 18 counts of trafficking in contraband cigarettes. Elmar and Yuliya Rakhamimov face a maximum of 20 years in prison for each of 10 counts of distribution of oxycodone; and Elmar Rakhamimov and Zarakh Yelizarov face a maximum of 20 years in prison for each of 12 counts of money laundering. Elmar Rakhamimov also faces 10 years in prison for sale of a drug sample.
Salim Yusufov also faces a maximum of three years in prison for each of five counts of receipt and delivery of misbranded drugs, and for each of five counts of dispensing prescription drugs without a prescription.
Six of the defendants are scheduled to have initial appearances this afternoon in U.S. District Court in Baltimore. Shamil Novakhov and Ruslan Ykiew were arrested in New York and will have initial appearances this afternoon in the U.S. District Court for the Eastern District of New York.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
Jose Morales Sentenced to Life in Prison for Murdering A Witness in A Baltimore City CaseRead the Press Release
Prosecution of Morales Resulted in the Exoneration of Demetrius Smith
for a Crime He Didn’t CommitGreenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Jose Joaquin Morales, age 37, of Baltimore, Maryland, today to life in prison for using a cell phone to arrange the murder-for-hire of Robert Long, who was a cooperating witness in a case pending against Morales in the Circuit Court for Baltimore City. Morales is currently serving two consecutive 262 month sentences for drug convictions in Maryland and Texas.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police.
“Thanks to outstanding law enforcement work, Jose Morales will spend the rest of his life in federal prison for murder, and a wrongly convicted man was exonerated,” said U.S. Attorney J. Rosenstein.
“Today’s sentencing of Jose Morales not only closes the book on a career offender, it slams shut the prison cell door,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “This case as well as the prior drug case against Morales strongly illustrates DEA’s commitment to target career offenders. Due to the combined efforts of law enforcement agencies along with the United States Attorney’s Office, Morales will never see the light of freedom again.”
According to evidence presented at his two week trial, Long and Morales were co-defendants in a series of theft cases in Baltimore City Circuit Court. Long had agreed to testify against Morales less than two weeks before he was shot. Detectives used Long’s information to obtain a search warrant at Morales’ home and seized a large amount of stolen construction equipment. Six days later, on March 24, 2008, Long was dead. Witnesses testified that Morales ordered the murder to prevent Long, who was also an employee of Morales, from testifying against him.
The jury learned that three weeks after the murder, Morales confessed to his attorney, Stanley Needleman, that he paid Dead Men Inc. (DMI), a prison and street gang, $20,000 to kill Long. Needleman testified that he had learned that Long was cooperating against Morales and reported that fact to Morales on March 20, 2008. Long was last seen about 15 minutes before his murder walking with a DMI member.
Trial evidence was presented that Morales was arrested on unrelated drug trafficking charges I August 2008 in Texas. He was convicted and sentenced to 22 years in prison. At the time of his arrest, he purported to cooperate against Needleman, advising federal agents that Needleman was involved in drug trafficking and that Needleman told Morales that he (Needleman) “took care” of Morales’ co-defendant by having him killed by DMI. Needleman testified that he did not learn about the cooperation until Needleman was the subject of an April 2011 federal search warrant that yielded over $1.2 million dollars in unreported cash in his home. Needleman subsequently pled guilty in September 2011 and agreed to testify, and did testify, against Morales.
The jury also heard testimony that Morales learned in 2011 that federal authorities were investigating Long’s murder. In order to convince federal agents in Maryland to proffer him in order to reduce his Texas sentence, Morales stated that a DMI member and the member’s brother shot Long in the head twice. Morales also made incriminating statements about his knowledge and involvement in the murder to two other inmates who also testified at trial.
Stanley Needleman, age 71, of Pikesville, Maryland, pleaded guilty to tax evasion and structuring financial transactions to avoid reporting large cash receipts and deposits. Needleman was sentenced on December 15, 2011 to a year and day.
The prosecution of Morales resulted in the exoneration of Demetrius Smith, who was serving life in state prison for the murder -- a crime he did not commit.
United States Attorney Rod J. Rosenstein commended the DEA and Maryland Transportation Authority Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Martin J. Clarke, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Conspirator in Maryland Drug Ring Sentenced to 11 Years in PrisonRead the Press Release
Conspired to Distribute Over 1,500 Pounds of Marijuana and Launder Over $1 Million
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Mikhnail DelRosario, a/k/a Mickey, age 28, of Silver Spring, Maryland, today to 11 years in prison, followed by four years of supervised release, for conspiring to distribute more than 700 kilograms of marijuana and conspiring to commit money laundering. Chief Judge Chasanow also ordered that DelRosario forfeit $1 million, believed to be the proceeds of the drug and money laundering conspiracies.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his guilty plea and court documents, from March 2011 to December 2012, DelRosario conspired with Billymir Mancilla-Brevichet, Chamron Thach, Carlos Escobar, and others to distribute marijuana in the Montgomery County, Maryland area. From October 2012 through December 2012, Delrosario was intercepted on over seventy-five drug-related telephone conversations on Mancilla and Thach’s telephones, during which he discussed the sale of and arranged drug transactions involving marijuana.
Specifically, Mancilla acquired large amounts of high-quality marijuana from suppliers in California and elsewhere, and arranged for the transport of the marijuana by plane, car and mail to co-conspirators in Montgomery County, Maryland, including DelRosario. During the time of the conspiracy, DelRosario received 2 to 4 pound packages of marijuana from Mancilla at least two to three times per month. DelRosario also received packages of marijuana that he supplied to other members of the conspiracy on Mancilla’s behalf. DelRosario also sent couriers with currency to Mancilla in California to purchase marijuana from Mancilla. DelRosario paid Mancilla between $3,000 and $4,000 per pound of marijuana.
Mancilla’s co-conspirators also transported at least 100 pounds of marijuana at a time by car to a storage facility in Maryland, where Mancilla arranged for DelRosario and others, to pick up multiple pounds of marijuana for re-distribution. On at least five occasions, DelRosario traveled to California to receive marijuana and to transport drug proceeds in the form of bulk cash to Mancilla. DelRosario packaged and shipped the marijuana from Mancilla’s California residence to Maryland for redistribution.
During his participation in the conspiracy, DelRosario conspired to distribute between 700 and 1,000 kilograms of marijuana.
The conspirators also engaged in financial transactions that were designed to conceal the nature, location, source, ownership and control of the drug proceeds. For example, Mancilla arranged to receive payment for the marijuana he caused to be distributed by having drug customers deposit cash payments in amounts less than $10,000 into bank accounts that he controlled that were held in fake names and in the names of fake businesses. DelRosario and other co-conspirators, including Mancilla, Thach and Escobar, structured the financial transactions to evade the requirement that banks report transactions over $10,000 to the IRS, thereby concealing from the government large cash transactions by drug dealers.
Mancilla arranged for drug customers to mail drug proceeds from Maryland to him in California. Mancilla also had drug customers make payments to DelRosario and other co-conspirators in Maryland, who bundled the drug proceeds together in amounts ranging from $10,000 to $100,000, and arranged for individuals to transport the bulk cash by airplane from Maryland to Mancilla in California. DelRosario also made several trips by plane from Maryland to Mancilla in California with bulk cash.
For example, during the course of the conspiracy, DelRosario made two deliveries of currency to a cooperating informant totaling over $36,000. In October 2012, DelRosario provided $58,200 to Thach for payment to Mancilla for marijuana. DelRosario was responsible for acquiring and transporting at least $1,000,000 during the course of the conspiracy.
Billymir Mancilla-Brevichet, age 28, of Oakland, California, was previously sentenced to 90 months in prison and ordered to forfeit $278,618 seized from May to October, 2012. Co-conspirators Chamron Thach, a/k/a Sham, age 30, of Silver Spring, Maryland, and Carlos Salvador Escobar, a/k/a Esco, age 30, of Arlington, Virginia, were sentenced to eight years and three years in prison, respectively, for their participation in the drug and money laundering conspiracies. Six other conspirators pleaded guilty and were sentenced to between 4 years and 78 months in prison.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Mara Zusman Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Armed Career Criminal Exiled to over 24 Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Stephen Sylvester Walker, age 31, of Baltimore, Maryland, today to 293 months in prison, followed by five years of supervised release, for being a felon in possession of a gun. Judge Bredar enhanced Walker’s sentence upon finding that Walker is an armed career criminal based on one previous first degree assault conviction and two previous narcotics convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore County State’s Attorney Scott Shellenberger; and Chief James W. Johnson of the Baltimore County Police Department.
According to evidence presented at Walker’s three day trial, on January 30, 2011 at approximately 2:30 a.m., Baltimore County Police officers received a dispatch call for an armed person near a Denny’s Restaurant in Parkville, Maryland. Officers testified that they went to the location and witnesses identified Walker as the armed person. An officer drew his weapon and approached Walker, ordering him to show his hands and get on the ground. Walker refused to comply and another officer finally got Walker on the ground and arrested him. As the officer was detaining Walker, he saw a semiautomatic handgun tucked into Walker’s waistband. The officers recovered the gun, which was loaded with ammunition and also had a round in the chamber.
Witnesses testified that after his arrest Walker looked at the first officer that approached him and said, “I should have smoked you when I had the chance.” During an earlier motions hearing in the case, witnesses testified that Walker also made statements threatening to harm the arresting officers and their families, and threatening the civilians in the area for “snitching.”
Judge Bredar found that Walker was not truthful when he falsely testified at trial that he did not have a firearm on his person, and that he did not know where the firearm came from.
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 Attorneys Michael C. Hanlon and Scott Lemmon, who prosecuted the case.
Member of A Pickpocket Crew Sentenced to over 3 Years in PrisonRead the Press Release
Conspirators Targeted Women in Restrooms
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Crystal Barner, age 28, of Baltimore, today to 37 months in prison, followed by five years of supervised release, for a scheme in which Barner and her co-conspirators stole wallets from women’s purses, removed the cash, credit cards and driver’s licenses and used the credit cards to make purchases at nearby stores. Judge Garbis gave Barner credit for four months served on a related state court sentence, and ordered Barner to pay restitution of $142,717.61.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service – Baltimore Field Office; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to her plea agreement, beginning in May 2007, Barner was part of a scheme to defraud financial institutions by stealing credit cards from the wallets and purses of unsuspecting individuals, then using the stolen credit cards to make purchases. Specifically, the leader of the scheme, Ida Mae Weathers, an experienced pickpocket, would linger in women’s restrooms and steal the wallets from purses hung on the hooks in the stalls. Often, Barner or one of the other co-conspirators would create a distraction in an adjacent stall, such as asking for toilet paper, so that the victim would be looking away from her purse. Barner and other conspirators also sometimes served as a “lookout” for Weathers. Often Weathers was able to remove cash and credit cards and return the wallet to the victim’s purse without the victim seeing or suspecting the theft.Weathers used some of the stolen credit cards herself and provided stolen credit cards to Barner, and other co-conspirators such as, Maureen Brown Little, Nicole Roles, Sharon Curtis and Nefeteria Jamison. The conspirators took the cards to nearby retail stores and used each card until it began to be declined. The conspirators purchased items for their personal use, as well as gift cards or high end merchandise that Weathers would direct them to buy and would then resell. Barner knew that the credit cards were stolen and knew that other members of the conspiracy were conducting fraudulent transactions as well.
During the course of the conspiracy, Barner and others obtained goods, services and extensions of credit in the amount of $142,717.61, and caused losses to or used the identities of between 10 and 50 financial institutions, businesses and individuals.
Ida Mae Weathers, a/k/a Ida Mae Snipes, age 49, of Baltimore, was sentenced to 259 months in prison, for conspiracy, bank fraud and aggravated identity theft, and was ordered to pay restitution of $151,180.50. Co-conspirator Nicole Roles, age 43, was sentenced to 57 months in prison and ordered to pay restitution of $8,462.39. Sharon Curtis, age 32, Maureen Brown Little, age 39, and Nefeteria Jamison, age 32, all of Baltimore, pleaded guilty to their roles in the scheme. Brown-Little and Curtis are both scheduled to be sentenced on March 13, 2014, and Jamison is scheduled to be sentenced on January 29, 2014.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service, Maryland Transportation Authority Police, Baltimore County Police Department, Baltimore City Police Department, and Atlantic City, New Jersey Police Department for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Conspirator in Bank Fraud Scheme Sentenced to over 2 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Olumide Babafemi Ogunmakinwa, age 47, of Brandywine, Maryland, today to 28 months in prison, followed by five years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft in connection with a bank fraud conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office.
According to Ogunmakinwa’s plea agreement, between February 2011 and March 2011, Ogunmakinwa and his co-defendants created counterfeit checks and stole money using misappropriated bank account information and the personal identifying information of individuals without their knowledge or consent. Specifically, co-conspirator Nathan Silla and other co-conspirators opened bank accounts at financial institutions in their own names, in false names, in the name of a spouse and in the names of corporations they controlled. Silla and the co-conspirators obtained checks from victim individuals and corporations, which they washed to remove the actual payees’ names listed on the checks, then printed the names of a conspirator, false names of a conspirator, or a company controlled by a conspirator onto the washed checks. Ogunmakinwa and other co-conspirators then deposited these altered checks into accounts controlled by conspirators, including accounts controlled by Ogunmakinwa. In addition, Silla and other co-conspirators misappropriated the name and bank account numbers of victim individuals and companies by printing that information onto counterfeit checks, which Ogunmakinwa and others deposited into accounts that they controlled at various bank branches in Montgomery and Prince George’s County, Maryland, and in Washington, D.C., thereby drawing funds off of the victims’ accounts. The conspirators then wrote checks on the accounts that contained victim funds, and either cashed them or deposited those checks into other accounts they controlled.
Ogunmakinwa deposited, cashed, and wrote at least nine fraudulent checks totaling approximately $97,000. The offense involved approximately 10 victims.
Nathan Silla, age 40, of Glenn Dale, Maryland, previously pleaded guilty to his role in the scheme and was sentenced to 12 years in prison, and ordered to pay $331,499.21 in restitution.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service and U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Jefferson M. Gray, who prosecuted the case.
Baltimore Heroin Trafficker Exiled to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Jeffrey Cofield, age 26, of Baltimore, today to 12 years in prison followed by four years of supervised release for conspiring to distribute heroin. Judge Blake further entered an order that Cofield forfeit $58,531 seized on December 11, 2012 during the execution of search warrants.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.According to his plea agreement, from July to December 2012, Cofield engaged in the distribution of heroin in Baltimore City; and instructed coconspirators on how to store and prepare heroin, as well as the storage, collection and transfer of money received from the heroin distribution. The distribution of at least one kilogram or more of heroin was reasonably foreseeable to Cofield.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael C. Hanlon and Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two Retailers Plead Guilty to Food Stamp FraudRead the Press Release
Baltimore, Maryland – Amara Cisse, age 50, and his wife Fanta Keita, age 45, both of Windsor Mill, Maryland, pleaded guilty today to food stamp fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash.
The 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.Cisse owned Simbo Food Mart, a convenience store located at 2103 West Pratt Street in Baltimore. Keita worked at the store with her husband. According to their plea agreements, the store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Cisse completed the required government form in May of 2010 to become an authorized retailer in the program, certifying that he understood that it was a violation of SNAP regulations to trade cash for SNAP benefits. From November 1, 2010 to May 2013, Cisse and Keita exchanged SNAP benefits for cash at less than face value of the EBT benefits, and kept up to 50 percent of the benefits for themselves, using the cash to pay rent and other bills.
The indictment alleges that Cisse and Keita obtained more than $600,000 in payments for food sales that never occurred. According to the plea agreement, the Court will need to determine the actual amount of the financial loss for the purpose of calculating the sentencing guidelines and restitution.
Keita faces a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett scheduled her sentencing for March 3, 2014, at 3:00 p.m. Cisse and the government have agreed that if the Court accepts his plea agreement Cisse will be sentenced to 27 months in prison. Judge Bennett has scheduled his sentencing for 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 Leo J. Wise, who is prosecuting the case.
Conspirator Pleads Guilty in Fraudulent Tax Refund SchemeRead the Press Release
Loss to the Government of $546,785 as a Result of the Scheme
Baltimore, Maryland – Tonia Patrice Lawson, age 43, of Middle River, Maryland, pleaded guilty today to a conspiracy to obtain fraudulent tax refunds.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington Regional Office.
“Return preparer fraud is a priority for IRS Criminal Investigation and we are committed to working with our law enforcement partners to investigate and prosecute cases just like these,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today's plea hearing is a reminder that individuals, like Ms. Lawson, who conspire to prepare fraudulent tax returns, will be brought to justice.”
According to Lawson’s plea agreement, from February 2010 through April 2013, Lawson, who was unemployed, conspired with others to prepare fraudulent tax returns. Specifically, Lawson and others recruited individuals who ordinarily did not meet the threshold to file income tax returns, because they had little or no earned income, and convinced these individuals that they could obtain a substantial refund and therefore should file a federal individual income tax return. Lawson and her co-conspirators used a variety of methods to recruit these individuals, including paying referral fee to those who brought recruits to them. Lawson would collect the recruits’ personal information and provide it to the conspirator who would prepare the fraudulent return. The recruits did not provide any income information. Once the refund from the fraudulent tax return was received, Lawson and the conspirators took a portion of the refund and paid the recruit a smaller amount. The conspirators misled the recruits by telling them that the refunds they had received were smaller than the refund amounts listed on the fraudulent tax returns. At least 15 fraudulently obtained tax refunds were deposited directly into accounts controlled by Lawson, who then wrote checks to the recruits to pay them for their portion of the refund.
Over the course of the scheme, Lawson conspired in the filing of 84 fraudulent tax returns with a resulting loss to the government of $546,785.
Lawson faces a maximum sentence of 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense, whichever is greater. U.S. District Judge Richard D. Bennett scheduled her sentencing for March 27, 2014 at 4:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised IRS Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin, who is prosecuting the case.
Ringleader Sentenced to 35 Years in Prison on Sex Trafficking ChargesRead the Press Release
Threatened to Assault Prostitutes and Competitor Pimps, and Made Death Threats to Protect and Maintain Prostitution Businesses in Annapolis and Easton
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced German de Jesus Ventura, age 35, a citizen of El Salvador and an illegal alien residing in Capitol Heights, Maryland, to 35 years in prison, followed by five years of supervised release, for conspiring to transport and entice females to travel interstate for prostitution; transporting females for prostitution; enticing females to travel interstate for prostitution; sex trafficking by force, fraud and coercion; and possessing a gun in furtherance of sex trafficking.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Michael Pristoop of the Annapolis Police Department; and Easton Police Department Chief David A. Spencer.
“Since 2008, HSI Baltimore special agents have been investigating the illicit activities of German Ventura’s brothel organization, which operated in Maryland, the District of Columbia, Virginia and New York,” said William Winter, special agent in charge of HSI Baltimore. “As a result of this investigation, a total of five individuals were arrested for federal violations and 14 were arrested for state violations. This sentencing sends a message that HSI and other law enforcement members of the Maryland Human Trafficking Task Force are committed to working together to investigate human trafficking and combating the violence that sex trafficking organizations are bringing to our communities, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
According to evidence presented during his two week trial, since at least March 2008 through November 2010, Ventura and Kevin Garcia Fuertes ran brothels in Annapolis and Easton, Maryland. Ventura, the ringleader, employed Fuertes to advertise and manage the brothels, and the two men shared the cash proceeds of the prostitution business. The defendants recruited and employed prostitutes, many of whom were aliens present in the U.S. unlawfully. Ventura arranged for vans and other vehicles to transport females within Maryland and across state lines to engage in prostitution. Ventura assaulted and threatened to use violence against one prostitute to coerce her continued participation in prostitution, from which Fuertes financially benefitted.
Ventura and Fuertes also threatened to use violence against competitor pimps. On August 3, 2010, Ventura used a cell phone to send three threatening multi-media messages depicting a semi-automatic pistol, the pistol’s magazine and an angel of death statue to a competitor pimp. On November 3, 2010, Ventura arranged for the assault of a competitor pimp with a pistol grip shotgun. In addition to these threats, Ventura reported criminal activity of the pimps in order to divert the attention of law enforcement and facilitate his own prostitution activities. On March 13, 2010, Ventura falsely reported a kidnaping and rape to the police in order to falsely implicate another pimp with the crimes. Ventura also claimed responsibility for the murder of competitor pimp Ricardo Ramirez Riva on September 13, 2008, in order to intimidate the competition, as well as his own employees and prostitutes.
Ventura also sought to intimidate members of the community who assisted his prostitutes. On September 1, 2009 Ventura called and threatened to kill a family who provided temporary housing to one of his prostitutes after she was arrested. He also poured gasoline on their apartment door and smashed windows from their vehicle.
On July 7, 2010, law enforcement executed a search warrant at one of Ventura’s brothels located at 318 E. Dover Street in Easton and arrested Isidro Jimenez-Sanchez and Wibert Herrera-Aranda who were working at the brothel.
On September 10, 2013, Judge Quarles sentenced Kevin Garcia Fuertes, a/k/a Kerlin Esquivel-Feuntes, age 26, a citizen of Honduras and an illegal alien residing in Annapolis, Maryland, and Richmond, Virginia, to 19 years in prison. Fuertes was also convicted at trial of the conspiracy and sex trafficking charges.Jose Antonio Reyes-Maradiaga, age 30; Isidro Jiminez-Sanchez and Wibert Alejandro Herrera-Aranda, both age 34, of Easton, Maryland, previously pleaded guilty to their participation in the scheme. These defendants advertised Ventura’s brothels, made appointments for the prostitutes and collected money. Reyes also helped to transport the women to the brothel locations, and purchased supplies. Jiminez-Sanchez, a Mexican citizen who entered the United States illegally, was sentenced to a year and day for transporting prostitutes, and upon completion of his sentence, was deported from the U.S. to Mexico. Herrera-Aranda was sentenced to 18 months in prison and Reyes was sentenced to time served. Both were also deported.
This case originated with the Annapolis Police Department and was subsequently investigated by members of the Maryland Human Trafficking Task Force formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein praised the Annapolis and Easton Police Departments and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys P. Michael Cunningham and Rachel M. Yasser, who prosecuted the case.
Get Away Driver in Armed Robbery Spree Exiled to over 15 Years in PrisonRead the Press Release
Gun Brandished In Each of the 22 Robberies and a Customer Shot In One of the Robberies
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Rico Bias, age 34, of Baltimore, Maryland, today to 185 months in prison, followed by three years of supervised release, for a series of armed commercial robberies committed from January through June, 2012.
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 Bias' plea agreement, from January 22, 2012 through June 11, 2012, Bias conspired with Hatratico Smith, 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, with one resulting in the shooting of a customer on February 21, 2012. 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.
Hatratico Smith, age 48, and Monzell Lee, age 20, both of Baltimore, pleaded guilty to their roles in the robberies. Lee was sentenced to nine years in prison for the four robberies in which he participated. Smith is scheduled to be sentenced on January 14, 2014, at 10:00 a.m.
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.
Leader of Baltimore Heroin Distribution Conspiracy Sentenced to 15 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Darryl Robinson, age 49, of Baltimore, to 15 years in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement, from January to July 23, 2013, Robinson was a leader and manager of a drug trafficking organization that distributed heroin from an open-air drug “shop” in the Poplar Grove neighborhood of Baltimore. Robinson was responsible for coordinating the purchase of narcotics; delivering the narcotics to stash houses throughout Baltimore City; and supervising the street-level dealers who sold heroin to retail customers.
During the conspiracy, Robinson and others conspired to distribute and possess with the intent to distribute at least one kilogram of heroin.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Scott Lemmon, who prosecuted the case.
Gunman Exiled to 32 Years in Prison for MurderRead the Press Release
Admitted to Murdering Two Men in Furtherance of a Drug Conspiracy
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Kyle Stevens, a/k/a Cappo, age 23, of Remington, Maryland, today to 32 years in prison followed by five years of supervised release for discharging a gun, thereby killing Keith Ray, a/k/a Keithy.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement, on September 21, 2007, Stevens fatally shot Keith Ray, in a wooded area off the 600 block of Wyman Park Drive in Baltimore. The body was found under a pile of logs a few days later on September 25. An autopsy revealed that Mr. Ray died of a gunshot wound to the back of the head.
Stevens also admitted to participating in a conspiracy to distribute heroin, powder and crack cocaine, and oxycodone and that, in furtherance of the drug conspiracy, on January 24, 2006, Stevens used a .45 caliber semiautomatic handgun to murder James Wright, a/k/a Ronnie Mo; and a .380 caliber semiautomatic handgun to murder Keith Ray.
Mr. Rosenstein praised the FBI, ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their assistance in this investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Four-Time Baltimore Felon Exiled to 15 Years in Prison for Illegal Possession of A GunRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Kentwan Russell, age 37, of Baltimore, Maryland, today to 15 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm. Judge Blake enhanced Russell’s sentence upon finding that Russell is an armed career criminal based on three previous drug convictions. Russell has been detained since his arrest on federal charges on September 15, 2011.
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 information presented to the Court, on December 15, 2010, Baltimore Police detectives went to a residence in Baltimore to locate Russell, who had an open arrest warrant for burglary. Officers found Russell in the home and twice ordered Russell to raise his hands above his head. Russell refused to comply, so the officers employed a taser. As they did so, the officers saw a silver handgun in Russell’s waistband. Russell attempted to run away, but was placed under arrest and the gun - a 9mm handgun, loaded with five rounds – was recovered.
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 Michael C. Hanlon, who prosecuted the case.
Bowie Realtor Sentenced to over 4 Years in Prison in $2 Million Mortgage Fraud SchemeRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Michael Abobor, age 38, of Bowie, Maryland, today to 51 months in prison, followed by five years of supervised release, for wire fraud in connection with a mortgage fraud scheme involving intended losses of at least $2 million. Judge Messitte also entered an order that Abobor forfeit $2,026,205 and pay restitution of $1,832,650.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Inspector General Fred W. Gibson, Jr. of the Federal Deposit Insurance Corporation; Special Agent in Charge Kathy Michalko of the United States Secret Service – Washington Field Office; and Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General - Office of Investigations.
According to his plea agreement, in the Spring and Summer of 2007, Abobor, a licensed realtor, submitted fraudulent loan applications for the purchase of homes in Maryland. Abobor purchased two homes in his own name, and purchased the rest of the homes using the names, and credit, of various friends and family members. Each loan application contained fraudulent information about the borrower’s earnings (including their monthly income and their assets) and employers, of which Abobor had full knowledge. Some of these applications contained fake documents, like doctored W-2s and paystubs; and all of them alleged that the borrower made much more money than he or she really did. Based on these fraudulent application materials, the victim lending institutions funded loans that totaled hundreds of thousands of dollars, resulting in substantial commission payments to Abobor. Eventually, each of these loans fell into default, causing large losses to the victims. Abobor also received large amounts of money that were disguised as “renovation payments” and funded by the mortgagesFor example, on July 25, 2007, Abobor facilitated the purchase of a home in Bowie, and while serving as the buyer’s real estate agent, knowingly submitted a false loan application on the buyer’s behalf. The loan application, among other things, vastly inflated the buyer’s monthly income figures. Relying upon these false representations, the lending institution funded a loan of $375,000. As part of this transaction, Abobor received a commission payment of $5,499, and also received over $37,000 in “renovation” payments.
In all, Abobor arranged at least seven fraudulent real estate transactions, caused more than $2,000,000 in intended losses to victim financial institutions, took in excess of $20,000 in fraudulent real estate commissions, and collected over $270,000 in extra money from the transactions in the form of third party disbursements for renovations that were never completed.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein praised the FDIC Office of Inspector General, U.S. Secret Service and the Department of Housing and Urban Development Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.