District of Maryland
Press releases recorded for this federal judicial district.
Commercial Fisherman Charged with Witness Tampering Related to an Investigation into the Illegal Harvesting of Striped BassRead the Press Release
Baltimore, Maryland - Michael D. Hayden, Jr., age 41, of Tilghman Island, Maryland, was arrested yesterday on charges of witness tampering and retaliation in connection with an investigation of felony Lacey Act violations related to the illegal harvesting of striped bass from the Chesapeake Bay.The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; Regional Special Agent in Charge Honora Gordon of the U.S. Fish and Wildlife Service, Office of Law Enforcement; and Joseph P. Gill, Secretary of the Maryland Department of Natural Resources.
“Stealing striped bass and intimidating witnesses are crimes against our natural resources and against the citizens of Maryland,” said Department of Natural Resources Secretary Joseph P. Gill. “We are grateful for the partnership of law enforcement agencies and we thank our residents for coming forward and providing information to help us protect the public trust.”
According to the affidavit filed in support of the criminal complaint, Hayden is a commercial fisherman, licensed in the state of Maryland and operates commercial fishing vessels on the Chesapeake Bay. During an investigation of the illegal harvesting of striped bass from the Chesapeake Bay, agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, and the Maryland Natural Resources Police learned that Hayden allegedly attempted to manipulate some witnesses’ testimony while trying to prevent the testimony of others. The criminal complaint alleges that in at least one incident, Hayden threatened to retaliate against a potential witness he believed to be cooperating with investigators.
If convicted, Hayden faces a maximum sentence of 20 years in prison on each of four counts of witness tampering and witness retaliation. Hayden is scheduled to have an initial appearance in U.S. District Court in Baltimore today at 3:00 p.m.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Mr. Rosenstein and Mr. Dreher thanked the Maryland Department of Natural Resources Police and the United States Fish and Wildlife Service for their work in the investigation and the United States Marshals Service for executing the arrest warrant. The case is being jointly prosecuted by the U.S. Attorney’s Office for the District of Maryland and the Environmental Crimes Section of the United States Department of Justice.
Civilian Government Worker Admits to Receiving Pay for Hours He Did Not WorkRead the Press Release
“Cautionary Tale for Government Employees Who Work at Home”
Greenbelt, Maryland – Jack Raymond Kimble, Jr., age 40, of Sykesville, Maryland pleaded guilty today to using false documents in a matter of the U.S. government.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael T. Monroe of the Naval Criminal Investigative Service (NCIS), Washington Field Office.“Supervisors who are obligated to certify electronic timesheets of subordinates who work outside the office often trust the employees to record the time spent doing their jobs,” said U.S. Attorney Rod J. Rosenstein. “This case is a cautionary tale for government employees who work at home and are trusted to self-report their working hours.”
According to his plea agreement, from 2009 to February 2012, Kimble worked as a civilian employee for the U.S. Navy in the Continuity of Operations Program (COOP) at the Office of Naval Intelligence (ONI) in Suitland, Maryland. Kimble oversaw and directed the ONI COOP and Disaster Recovery Plans. He assisted the ONI director and deputy with planning and implementing new technologies that affected ONI commands.Kimble regularly did not come in to his office in Suitland on Mondays and Fridays. His supervisors often did not know where Kimble was. They directed Kimble to use the Navy’s web-based time and attendance system to calculate leave balances accurately. Kimble often called or emailed coworkers and told them he would not be at work, but failed to enter that information into the time and attendance system.
In the spring of 2011, the NCIS began investigating Kimble’s work hours and requested documentation of his working hours. In April 2011, Kimble gave false documents to investigators which claimed that: he personally conducted two tests of communication systems when in fact the tests were done by another individual; and falsified the minutes of three meetings reflecting his attendance when in fact he was not present at the meetings.
Matching up the times that Kimble’s whereabouts were unknown, plus reimbursements for government travel when Kimble did not show up when he was supposed to be working off-site, from the beginning of 2009 to February 2012, Kimble was paid $52,822.09 to which he was not entitled.
Kimble faces a maximum sentence of five years in prison and a fine of $250,000. Kimble has agreed to pay restitution of $52,822.09. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for January 6, 2014 at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised the NCIS for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant U.S. Attorney Molly Thebes, who are prosecuting the case.Three Men Indicted on Charges of Stealing Drugs from Walter Reed and Fort Belvoir HospitalsRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Issa Wasco Koroma, age 61, of Springdale, Maryland; Rodger George Gurdon, age 42, of Waldorf, Maryland; and Daniel Mark Wilkerson, age 39, of Waldorf, Maryland on charges arising from a conspiracy to steal prescription drugs from two federal military hospitals. The indictment was returned yesterday.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid Atlantic Field Office; and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations.“Protecting the legitimate pharmaceutical supply chain is an FDA priority,” said SAIC Antoinette V. Henry. “The integrity of the drug supply is safeguarded by protections imposed at every level of a drug's distribution. Once drugs are removed from this closed system, there can be no guarantee that the product is safe, effective or even that it is what it purports to be. This could threaten the health of future patients who rely on these drugs.”
The five count indictment alleges that Koroma and Gurdon were pharmacy technicians at Walter Reed National Military Medical Center and Fort Belvoir Community Hospital, respectively, where they had access to medications stored at the hospitals’ pharmacies. From January to June 2013, Koroma stole Norditropin and Botox from Walter Reed, which he sold to Gurdon. Gurdon also stole Norditropin from Fort Belvoir. Gurdon sold these stolen prescription drugs to Wilkerson.
The indictment seeks forfeiture of at least $1.3 million, the value of drugs stolen from the pharmacies.
The defendants face a maximum sentence of five years in prison for the conspiracy. Koroma also faces a maximum sentence of 10 years in prison on each of four counts of theft of medical products. Wilkerson and Koroma are scheduled for their initial appearance in federal court in Greenbelt on September 20, 2013 at 3:30 p.m. Gurdon’s initial appearance has not 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 DCIS and FDA-OCI for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Paul Nitze and Assistant United States Attorney Mara Zusman Greenberg, who are prosecuting the case.
Nine Retailers Arrested for Food Stamp FraudRead the Press Release
Defendants Received $7 Million from USDA for Food Stamps Allegedly Traded for Cash
Baltimore, Maryland - A federal grand jury has indicted nine retail store owners or operators on federal charges of food stamp fraud and wire fraud in connection with schemes to illegally redeem food stamp benefits in exchange for cash. The indictments allege the retailers received almost $7 million in federal payments for transactions in which they did not provide any food, a fraud scheme commonly known as “food stamp trafficking.” Stores allegedly split the proceeds with food stamp recipients. The indictments were returned last week and unsealed today. Federal agents arrested the defendants and executed search warrants at the stores and related locations this morning.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“Taxpayers fund the food stamp program to put food on the tables of needy recipients, not to put money in the pockets of greedy criminals,” said U.S. Attorney Rod J. Rosenstein. “Food producers and distributors benefit when food stamp funds are used to buy food, and honest storeowners work hard to earn a profit by actually selling food. People who play by the rules deserve to know that criminals who defraud them will be held accountable.”
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers must bill the government only in return for providing approved food items.
The indictments allege that the defendants exchanged EBT benefits for cash, in violation of the food stamp program rules. The indictments allege that the defendants typically paid half the value of the EBT benefits in cash. To avoid detection, the defendants often debited the funds from the card in multiple transactions over a period of hours or days. As a result of unlawful cash transactions, the defendants obtained more than $6,898,000 in EBT deposits for transactions in which the stores did not provide food.
According to the indictments, the defendants listed below owned and/or operated stores in Baltimore that were authorized to accept SNAP. The defendants received instruction regarding the requirements and regulations of the food stamp program, including that only eligible food items could be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
Abdullah Aljaradi, age 51, of Baltimore;
Second Obama Express and D&M Deli and Grocery, 901 Harlem Avenue, Suite A and B, respectively. From October 2010 through July 2013, Aljaradi allegedly obtained more than $2 million in payments for food sales that never occurred.Dae Cho, age 66; and
Hyung Cho, age 40, both of Catonsville;
K&S Food Market, 3910 W. Belvedere Avenue. From November 2010 through July 2013, Dae Cho and her son, Hyung Cho, allegedly obtained more than $1.4 million in in payments for food sales that never occurred.Abdo Mohamed Nagi, age 54, of Baltimore;
New York Deli and Grocery 1207 West Baltimore Street. From February 2011 through May 2013, Nagi allegedly obtained more than $1.2 million in payments for food sales that never occurred.Kim Man Chu, age 38, of Rosedale, Maryland;
Long Hing Grocery Store, 1131 Greenmount Avenue. From October 2010 through July 2013, Chu allegedly obtained more than $750,000 in payments for food sales that never occurred.Amara Cisse, age 50, and
Fanta Keita, age 45, both of Windsor Mill, Maryland;
Simbo Food Mart, 2103 West Pratt Street. From November 2010 through May 2013, Cisse, and his wife Keita, allegedly obtained more than $600,000 in payments for food sales that never occurred.Jung Kim, age 51, of Ellicott City, Maryland;
C&C Market, 4752 Park Heights Avenue. From November 2010 through April 2013, Kim allegedly obtained more than $600,000 in payments for food sales that never occurred.John Cunningham, age 54, of Baltimore;
Cunningham’s Amoco, 4419 Park Heights Avenue. From December 2012 through July 2013, Cunningham allegedly obtained more than $348,000 in payments for food sales that never occurred.The defendants all face a maximum sentence of 20 years in prison for each count of wire fraud. Jung Kim, Dae Cho and Hyung Cho also face a maximum of 20 years in prison for food stamp fraud. Aljaradi, Nagi, Chu, Cisse, Keita and Cunningham face a maximum of five years in prison for food stamp fraud. The defendants are expected to have initial appearances later today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kathleen O. Gavin, Peter M. Nothstein, Leo J. Wise and Judson T. Mihok, who are prosecuting these cases.
Three Alleged Ms-13 Members Charged in Murder ConspiracyRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted three defendants today in connection with a conspiracy to participate in murder in aid of a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:Jorge Enrique Moreno-Aguilar, aka “Flaco,” and “Castigato,”, age 20, of District Heights, Maryland,
Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 25, of District Heights, Maryland, and
Melvin Marquez-Sanchez, aka “Demente,” age 20, formerly of New York.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.
“Today’s indictment is a significant disruption to the illegal operations of MS-13 in Maryland,” said HSI Special Agent in Charge William Winter. “The members of MS-13 spread violence and fear wherever they exist and prey on innocent people, displaying a shocking disregard for human life. HSI will continue to aggressively work with our local, state and federal law enforcement partners in the state of Maryland to target violent transnational gang members who threaten the safety of our communities.”
“Gang investigators from the Prince George’s County Police Department, Montgomery County Police Department, and the Homeland Security Investigations Gang Unit collaborated to develop the identification of these suspects, which led to their arrest and indictment,” stated Prince George’s County Police Chief Mark Magaw. “Today’s indictment is the result of the highly effective partnership that exists among the gang investigators who continue their relentless attack on gang activity in our region.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.
The four count indictment alleges that the defendants were members and associates of MS-13. Between January and March 2013 the defendants targeted an individual believed to be affiliated with the rival 18th Street gang. According to the indictment, the defendants obtained photos of the victim, and planned the murder of the victim. Moreno-Aguilar and Ortiz-Orellana possessed a gun to be used for the murder. On March 12, 2013, Moreno-Aguilar and Ortiz-Orellana went to Capital Heights, Maryland, found and shot the victim multiple times, killing him. They fled and disposed of the gun.
All three defendants face a maximum sentence of 10 years in prison for conspiring to commit murder in aid of racketeering. Moreno-Aguilar and Ortiz-Orellana also face a maximum sentence of life in prison for murder in aid of racketeering; murder resulting in the use of a gun; and using a firearm during a crime of violence.
Moreno-Aguilar and Ortiz-Orellana are currently in state custody on related state charges. Marquez-Sanchez is currently in custody of immigration authorities. The defendants are expected to have their initial appearances in federal court in Greenbelt on these federal charges within the next couple weeks.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County and Montgomery County Police Departments and Prince George’s and Montgomery Counties State’s Attorney=s Offices for their work in the investigation and proceedings. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau and Kevin Rosenberg, a Trial Attorney with the Justice Department’s Organized Crime and Gang Section, who are prosecuting this Organized Crime and Drug Enforcement Task Force case.
Former Navy Reservist Sentenced to 25 Years in Prison for the Sexual Exploitation of Minors to Produce Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Anthony K. Mastrogiovanni, 30, of Crofton, MD, today to 25 years in prison, followed by lifetime supervised release, for the sexual exploitation of minors to produce child pornography. Judge Motz also ordered that upon his release from prison, Mastrogiovanni 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; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to filed court documents and proceedings, between 2006 and 2012, Mastrogiovanni was a U.S. Navy reservist who sexually exploited more than 30 male juveniles, ranging from 9 to 16 years of age, in Maryland and Louisiana in order to produce child pornography. During that time period, Mastrogiovanni met and befriended his victims through his involvement in civic organizations or his military affiliation. Mastrogiovanni captured sexually explicit video of the victims on cameras hidden in his residences in Louisiana and Maryland.
Mastrogiovanni has been in federal custody since he was arrested by Inspectors of the United States Postal Inspection Service in Las Vegas, Nevada, on July 19, 2012. A search of his Las Vegas hotel room recovered external hard drives containing over 30,000 images of child pornography, including video of his juvenile victims. That same day, federal agents searched Mastrogiovanni’s apartment in Crofton, MD, where they discovered a hidden video camera and video transmitting equipment as well as digital media containing additional child pornography.
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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service for its work in the investigation and thanked the Air Force Office of Special Investigations, Naval Criminal Investigative Service, and FBI's Maryland Child Exploitation Taskforce for their assistance. Mr. Rosenstein thanked Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney P. Michael Cunningham, who are prosecuting the case.
Air Force Nco Indicted for Sexually Exploiting Toddlers and Children to Produce Child PornographyRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted William S. Gazafi, age 44, of Lusby, Maryland, yesterday on six counts of sexually exploiting a minor to produce child pornography.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; and Brigadier General Kevin J. Jacobsen, Commander Air Force Office of Special Investigations.
According to the indictment and criminal complaint, on August 15, 2013, Gazafi engaged in a chat on a website dedicated to incest discussions with an undercover officer. During the chat, Gazafi discussed his sexual interest in children and advised that he had been drugging and molesting several children, including an infant. During the chat, Gazafi allegedly sent seven images to the undercover officer, three of which were child pornography he claimed he created. The FBI identified Gazafi and he was arrested carrying multiple digital media items. A forensic examination of those items revealed videos and images that Gazafi produced of children engaged in sexually explicit conduct. These images and videos included one child as young as five months old. The images also depict children bound and handcuffed while sleeping. Gazafi is a non-commissioned officer in the U.S. Air Force working at Andrews Air Force Base.
Gazafi faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release. Gafazi was arrested on the criminal complaint on September 3, 2013 and remains detained. Gazafi is expected to have his initial appearance on the indictment in federal court in Greenbelt early next week.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Air Force Office of Special Investigations, Calvert County Sheriff's Office and Calvert County State's Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Thomas Sullivan, who are prosecuting the case.
Five Indicted for Allegedly Bribing A Gsa Official to Obtain Federal ContractsRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned five indictments charging the owners of companies with bribing a General Services Administration (GSA) official to obtain contracts to provide painting and other maintenance services at federal facilities. All the indictments were filed under seal and the last one was unsealed yesterday upon the arrest of the defendant.The individuals charged in the indictments are:
Carl Roberts, age 48, of Clinton, Maryland;
Ronald Wilkinson, age 60, of Brandywine, Maryland;
Robert W. Hales, a/k/a Bobby Hales, age 52, of Nanjemoy, Maryland;
Darold Patterson, age 72, of Deerwood, Maryland; and
Daryl Kitchen, age 59, of Upper Marlboro, Maryland.The Roberts indictment was returned on July 15, 2013; the Wilkinson and Hales indictments were returned on August 12, 2013; and the Patterson and Kitchen indictments were returned on August 26, 2013.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Inspector General Brian D. Miller, General Services Administration, Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
GSA Inspector General Brian D. Miller said, “We will continue to pursue contractors who line their own pockets by bribing corrupt officials at the expense of the American taxpayers.”
According to the indictments, Roberts owned four general construction and moving companies that he operated out of his residence in Clinton; Wilkinson owned a painting company located in Brandywine; Hales owned and operated two painting companies located in Nanjemoy; Patterson was a co-owner and operator of a general contracting company located in Rockville, Maryland; and Kitchen owned a general contracting company located in Upper Marlboro.
Each indictment alleges that the defendants paid bribes to a building manager who at the time was cooperating with the government, in exchange for the building manager awarding GSA service contracts to the defendants’ companies. GSA building managers were authorized to retain private contractors to complete maintenance projects on behalf of GSA and were further authorized to pay for maintenance projects that cost $3,000 or less using their government issued GSA credit cards. According to the indictments, each of the contracts awarded to the defendants either cost less than $3,000, or were charged by two separate invoices in order to keep the cost under $3,000.
Specifically, the indictments allege that: Roberts paid bribes totaling $1,300 in exchange for six contracts to Roberts’ companies, for which he was paid $8,724; Wilkinson paid bribes totaling $650 in exchange for two contracts, for which Wilkinson was paid $3,075; Hales paid bribes totaling $400 in exchange for two jobs, for which Hales was paid $3,300; that Patterson paid bribes totaling $1,800 in exchange for two contracts for which Patterson was paid $5,635; and that Kitchen paid bribes totaling $950 in exchange for four contracts for which Kitchen was paid $6,522.67.
The defendants face a maximum sentence of 15 years in prison for bribery. Roberts had an initial appearance yesterday. Hales, Wilkinson and Kitchen had initial appearances on September 5, 2013 and Patterson had an initial appearance on September 6, 2013. All of the defendants were released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
A sixth contractor, Andre Michael Lipford, age 43, of Washington, D.C., previously pleaded guilty to paying $750 in bribes in exchange for two jobs for his company, for which Lipford was paid $6,200. Lipford was sentenced to five months in prison, followed by five months of home detention as part of one year supervised release.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked GSA Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Kristi N. O’Malley and Kelly O’Connell Hayes, who are prosecuting the case.
Brothel Operator Sentenced to over 19 Years in Prison on Sex Trafficking ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. 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, late yesterday to 235 months in prison followed by five years of supervised release for conspiring to transport and entice females to travel interstate for prostitution and sex trafficking by force and fraud. Judge Quarles further imposed a special condition that upon the completion of his sentence, Fuertes must cooperate with immigration authorities regarding deportation proceedings.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief Michael Pristoop of the Annapolis Police Department; Easton Police Department Chief David A. Spencer; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“Today's sentencing represents another successful HSI investigation worked jointly with our local law enforcement partners that led to the breakup of a prostitution scheme uncovered in Maryland,” said HSI Baltimore Special Agent in Charge William Winter. “The defendants not only exploited women for personal profit, they also used violence, coercion and intimidation. HSI will continue to use its resources and work closely with other law enforcement agencies to stop these types of criminal enterprises that are operating in our communities.”
According to evidence presented during his two week trial, since at least March 2008 through November 2010, Fuertes and co-defendant German de Jesus Ventura, 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; threatened to use violence against competitor pimps; and sought to intimidate others who assisted his prostitutes. Fuertes knew of and financially benefitted from Ventura’s actions.
German de Jesus Ventura, age 35, a citizen of El Salvador and an illegal alien residing in Capitol Heights, Maryland, was also convicted at trial and faces a maximum sentence of five years in prison for the conspiracy count; a mandatory minimum of 15 years in prison to a maximum of life in prison for the sex trafficking count; a maximum of life in prison for possessing a gun in furtherance of sex trafficking; and 10 years in prison each for transporting individuals to engage in prostitution and for enticement. Ventura is scheduled to be sentenced on October 1, 2013 at 1:00 p.m.
Jose Antonio Reyes-Maradiaga, age 30, of Annapolis; and Isidro Jiminez-Sanchez and Wibert Alejandro Herrera-Aranda, both age 34 and from 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.
Two Illegal Aliens Sentenced in Scheme to Create and Sell Fraudulent Identification DocumentsRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Henry Ramos- Agustin, age 37, a Guatemalan citizen illegally residing in Cambridge, Maryland, today to 42 months in prison followed by one year of supervised release for conspiring to sell fraudulent identification documents and aggravated identity theft. Judge Bennett sentenced Antonio Abraham Cruz-Cruz, age 28, a Mexican citizen illegally residing in Adelphi, Maryland, yesterday to four years in prison followed by one year of supervised release for the same offenses. Judge Bennett further imposed a special condition that both defendants, upon completion of their sentences, be surrendered to immigration authorities for deportation proceedings.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“Document fraud poses a threat to national security and puts the security of our communities at risk because it creates a vulnerability that may enable terrorists, criminals and illegal aliens to gain entry to and remain in the United States,” said HSI Baltimore Special Agent in Charge William Winter. “This investigation resulted in the arrest and indictment of a document mill leader and co-conspirator operating out of Maryland. Homeland Security Investigations will move aggressively to investigate and bring to justice those who potentially compromise the integrity of America's legal immigration system.”
According to their pleas and a stipulation at Cruz-Cruz’s sentencing hearing, from October 2011 through March, 2013, Cruz-Cruz manufactured at least 2,000 permanent resident cards, social security cards and driver’s licenses, which he offered for sale, or had Ramos-Agustin and others sell, to individuals illegally present in the United States. These documents were offered for sale through word of mouth and the distribution of business cards which appeared to be offering other services, such as painting or automobile repairs, but were actually used for obtaining customers for the scheme. Orders were generally received by email or text message which included a picture and the biographical information the customer wanted on the cards. Salesmen such as Ramos-Agustin provided the photographs and personal information to Cruz-Cruz, who manufactured the requested fake documents. The completed documents were returned to Ramos-Agustin or other document vendors who then delivered them to the customer and obtained payment.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and HSI Resident Agent in Charge Ocean City for their work in the investigation and thanked the Anne Arundel County Police Department and Baltimore County Police Department for their assistance in the case. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who prosecuted the case.
Laurel Drug Dealer Exiled to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Joevaughn Butler, age 33, of Laurel, Maryland, today to 152 months in prison followed by five years of supervised release for possession with intent to distribute cocaine, heroin and crack cocaine. Judge Bredar enhanced Butler’s sentence upon finding that he is a career offender/ armed career criminal based on three previous drug convictions. Judge Bredar also ordered that Butler forfeit $235,499 in cash and two 9 millimeter handguns recovered during a search of his residence.
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; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to Butler’s plea agreement, Butler was arrested on September 23, 2011, shortly after leaving an apartment in the Laurel area of Anne Arundel County, Maryland. Butler was wanted on two outstanding arrest warrants issued by Washington, D.C. Superior Court. Butler was searched and law enforcement recovered: 52 ziplock baggies of heroin and a larger plastic bag containing additional heroin; 14 pink ziplock baggies of crack cocaine and a larger plastic bag containing additional crack cocaine; a key to the apartment from which he was observed leaving; and $150 cash.
Later that day, a search warrant was obtained for the apartment and law enforcement recovered: powder cocaine, crack cocaine, and heroin; two 9 millimeter handguns; and $229,679 in cash, all from a closet in the master bathroom. Recovered from the apartment’s living room was $5,670 in cash and an electronic money counter.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and the Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Brooke Carey, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Florida Man Sentenced in Baltimore Fraud Scheme Involving the Online Purchase of Gold and Silver CoinsRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Tasleem Ekun, age 36, of Sunny Isles Beach, Florida, today to two years in prison followed by one year of supervised release for bank fraud and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement, from January to October 2011, Ekun fraudulently used another individual’s Discover credit card to purchase gold coins online. While investigating a drug trafficking organization, FBI agents overheard Ekun talking with co-defendant Roy Clay on the phone about a scheme to fraudulently purchase between $70,000 and $120,000 of gold and silver coins online and have them shipped, via U.S. Postal Service, to locations in Baltimore.
Following his conviction on drug trafficking charges, Judge Blake sentenced Roy Lee Clay, age 47, of Baltimore, on August 27, 2013 to life in prison, for conspiracy to distribute and possess with intent to distribute heroin, enhancing Clay’s sentence based upon two previous drug trafficking convictions. The government has moved to dismiss this bank fraud case against Clay.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this case.
Two Indicted in $275 Million Investment Fraud Scheme Involving the Sale of Medical Accounts Receivable to Hedge Funds and Other InvestorsRead the Press Release
Guilty Pleas of Two Conspirators Also Unsealed Today
Baltimore, Maryland – A federal grand jury has indicted Richard Shusterman, age 50, of Highland Beach, Florida, and Jonathan E. Rosenberg, age 44, of West Orange, New Jersey, on charges of conspiracy and wire fraud, in connection with a scheme to defraud equity investors and asset-based lenders in medical accounts receivable of more than $275 million. The indictment was returned on September 4, 2013 and unsealed today upon the arrest of the defendants.
The guilty pleas of Robert Feldman, age 65, of Beach Haven, New Jersey and Douglas A. Kuber, age 53, of Livingston, New Jersey, were also unsealed today. Feldman and Kuber pleaded guilty to conspiracy to commit wire fraud on September 3, 2013 and October 11, 2012, respectively.
The indictment and guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“The indictment alleges that the defendants perpetrated a brazen and complex Ponzi scheme that defrauded investors of more than $275 million,” said U.S. Attorney Rod J. Rosenstein.
According to the 10 count indictment, Richard Shusterman, was a shareholder and president of International Portfolio, Inc. (IPI). Robert Feldman was part owner of IPI, and was also the president of United Consulting, Inc. Shusterman and Feldman represented that IPI was a company that had experience in the field of medical accounts receivable, including their purchase, valuation, collection, and resale. Beginning on June 21, 2006, Shusterman and Feldman, through United Consulting and IPI, engaged in the business of buying and selling consumer debt, including medical debt portfolios.
According to the indictment, Jonathan E. Rosenberg and Douglas A. Kuber, operated Account Receivable Services, LLC (ARS). ARS invested in medical accounts receivable purchased from IPI using funds borrowed from investors interested in asset-based lending. Rosenberg was also president of two other companies that recruited investors for medical accounts receivable portfolios purchased from IPI.
From December 2006 through June 2008, IPI paid more than $25 million to purchase over $4.1 billion in medical accounts receivable, comprising more than 3,872,514 past due patient accounts which the hospitals and other entities selling the accounts had been unsuccessful in collecting. Beginning in June of 2007, Shusterman, Rosenberg, Feldman, and Kuber began promoting an investment model to individual investors and investment fund managers.
To implement the investment model, the conspirators allegedly agreed that Shusterman, through IPI, would batch accounts receivable from IPI’s inventory into discrete debt portfolios with specified total outstanding account balances. These portfolios would then be offered for sale to investors. In addition, Shusterman and IPI would manage all the collection efforts for each debt portfolio IPI sold.
The indictment alleges that Shusterman, Rosenberg, Kuber and Feldman made fraudulent representations and omissions regarding purchase prices, collection results, and resale values of IPI medical debt portfolios in order to persuade investors to invest in those portfolios. The indictment alleges that Shusterman, Rosenberg, Kuber and Feldman negotiated and agreed upon two different purchase prices for each IPI debt portfolio that hedge funds and other investors financed on behalf of ARS. The conspirators set higher purchase prices for the IPI debt portfolios ARS financed through hedge funds and other investors. IPI agreed to kickback the loan proceeds in excess of the true purchase prices to Rosenberg and Kuber. The defendants allegedly characterized the kickbacks as a refund for any unqualified accounts in the portfolio, such as when a debtor was deceased or bankrupt. The indictment alleges that between June 2007 and March 2009, Shusterman paid Kuber and Rosenberg kickbacks totaling approximately $8,318,718.
Further, the indictment alleges that in order to induce existing investors to maintain and increase their participation in the investment scheme and to persuade new investors to join, Shusterman, Rosenberg, Feldman and Kuber falsely represented the actual amount of collections and rates of liquidation of IPI debt portfolios. In fact, because IPI debt portfolios did not generate sufficient collections to meet the minimum debt service payments due to the investors, Shusterman, Rosenberg, Feldman, and Kuber allegedly caused IPI to wire money disguised as “direct payments” to ARS entities to fund interest payments owed to hedge funds and other investors who loaned money for the acquisition of IPI debt portfolios. Specifically, the indictment alleges that between July 2008 and March 2010, the defendants made false and misleading collection reports stating that a total of approximately $56,180,158 in “direct payments” were collected during the liquidation of IPI debt portfolios, in order to deceive hedge funds such as Platinum Partners and other investors. The indictment alleges that in February 2010, Shusterman, Rosenberg, Feldman and Kuber attempted to induce Eton Park Capital Management to invest by portraying four portfolios financed by Platinum as receiving approximately $28.7 million in collections. In fact, the total net collections were approximately $2 million.
Finally, in order to induce investors to buy and/or maintain their investment positions in IPI debt portfolios, and to further conceal substantially lower than projected collection results, Shusterman, Rosenberg, Feldman and Kuber fraudulently repurchased and resold investors’ IPI debt portfolios at artificially inflated prices that neither corresponded to a particular debt portfolio’s actual collection results, nor to an asking price from a purchaser in the debt-buying industry. According to the indictment, Shusterman, Rosenberg, Feldman, and Kuber represented to investors that the IPI debt portfolios sold to them or used as collateral were comprised of medical accounts receivable that IPI had purchased directly from hospitals and medical providers after those institutions had exhausted their efforts to collect from their debtor patients. In fact, the indictment alleges that Shusterman and Feldman intentionally sold to some investors IPI debt portfolios that IPI had previously sold to and repurchased from a different investor, and sometimes multiple investors.
The indictment also seeks the forfeiture of $278,105,193, alleged to be the proceeds of the scheme.
Shusterman and Rosenberg each face a maximum sentence of 20 years in prison for the conspiracy and for each of nine counts of wire fraud. Shusterman was arrested in Baltimore and is scheduled to have his initial appearance in U.S. District Court in Baltimore today at 3:30 p.m. Rosenberg was arrested in Newark, New Jersey and is expected to have his initial appearance in U.S. District Court there today.
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.
Robert Feldman and Douglas Kuber, each pleaded guilty to conspiracy to commit wire fraud and face a maximum sentence of 20 years in prison. Feldman is scheduled for sentencing on December 3, 2013. No sentencing date has been set for Kuber.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Martin J. Clarke and Joyce K. McDonald, who are prosecuting the case.
Port Deposit Man Sentenced to 12 Years in Prison for Receipt of Child PornographyRead the Press Release
DVD Depicts Ragan Having Sex With a Boy
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael Dean Ragan, Jr., age 31, of Port Deposit, Maryland, yesterday to 12 years in prison followed by 35 years of supervised release for receipt of child pornography. Judge Hollander further ordered that upon his release from prison, Ragan will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Brian Murphy of the United States Secret Service – Baltimore Field Office; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to the plea agreement, on January 30, 2011, law enforcement seized Ragan’s laptop computer, desktop computer, camera, hard drive and other digital media during a search in an unrelated counterfeit currency investigation. Ragan later pleaded guilty to state counterfeit charges. Approximately 335 images and 17 videos of minors and prepubescent minors engaged in sexually explicit conduct, including acts of sadism, masochism of other depictions of violence, were found on the seized items.
In addition, a video on a DVD depicted Ragan engaged in sexually explicit conduct with a minor. The video was taken without the boy’s knowledge. Ragan also admitted to being an administrator on a website dedicated to viewing, sharing and distributing child pornography. Ragan received a video on May 26, 2010 depicting two minor males engaging in sex.
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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Secret Service and Maryland State Police for their work in the investigation, and thanked the Maryland State Police for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Armed Robber Exiled to over 13 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Davon Stephon Williams, age 23, of Washington, D.C, today to 162 months in prison followed by five years of supervised release for two counts of robbery and using a gun during a robbery. Judge Titus further ordered that Williams pay restitution of $242,248.53.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, on October 7, 2011, Williams and a co-conspirator, both armed with handguns, entered the cash office in a Walmart in Hyattsville, Maryland and demanded money from employees. The gunmen fled the store with $140,000 and sped away in a stolen van.
On January 9, 2012, Williams and his co-conspirators robbed the Down Town Locker Room in Forestville, Maryland of $1,248.53. Employees were outside the store, in the process of closing the front door and leaving to take store money to the bank. Williams and his co-conspirators pulled up in a mini-van. At least two co-conspirators aimed handguns at the employees. One of the co-conspirators held a handgun to the head of an employee who was an armed security guard and took her firearm. The conspirators fled after receiving the store money.
On January 16, 2012, a co-conspirator of Williams and co-defendant Jeffery Adams confronted an employee of Garda Cash Logistics who was carrying a bag containing $88,659.03 in cash and $13,337.90 in checks from the Bowie Walmart store to a Garda armored transport vehicle parked in front of the store. The robber pointed his handgun at the Garda employee and demanded the money. After the Garda employee complied, the robber ran with the money bag into a stolen van occupied by Williams, Adams and others. The van sped away and was located shortly thereafter. Williams’ cell phone was found inside the van.
In addition to actively participating in these robberies, Williams helped plan and prepare these crimes.
Jeffery Louis Adams, age 34, of Washington, D.C., previously pleaded guilty to his participation in the January 16 robbery and to two other robberies: a bank in Lexington Park, Maryland, stealing $109,750; and a credit union in Clinton, Maryland, stealing $100,427. Adams is scheduled to be sentenced on December 16, 2013.
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 Assistant United States Attorney William D. Moomau and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.
Parkville Woman Sentenced to 15 Years in Prison for Conspiring to Produce Child PornographyRead the Press Release
Co-Conspirator Previously Sentenced to 27 Years in Prison
Baltimore Maryland - U.S. District Judge James K. Bredar sentenced Margaret Ellen Jones, age 38, of Parkville, Maryland, today to 15 years in prison, followed by 15 years of supervised release, for conspiring to produce child pornography. Judge Bredar ordered that upon her release from prison, Jones must register as a sex offender in the place where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (SORNA).
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 William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to her plea agreement, prior to March 2010, Jones met John Blaes online and became involved in a sexual relationship involving bondage, discipline, sadism and masochism (BDSM). Jones subsequently moved into Blaes’ home in Parkville. Blaes used the internet to recruit other women and girls into the BDSM lifestyle as well.
On July 5, 2011, Blaes solicited a 15 year old girl to engage in sexual conduct with him and Jones. Blaes and Jones, knowing that the victim was a vulnerable minor, sent pornographic pictures of themselves to the victim by computer.On July 22, 2011, Blaes and Jones traveled to the victim’s home in North Carolina to bring her to live with them in Parkville. After picking the victim up, Blaes and Jones sexually abused the victim in the back of their vehicle. The next day, Blaes and Jones rented a hotel room in North Carolina to engage in sexually explicit conduct with the victim. Blaes and Jones used a camera to document the sexual abuse of the victim, including sadistic and masochistic conduct, in the van and the hotel.
From July 22 to November 20, 2011, Blaes and Jones engaged in sex with the victim many times a week. Blaes also cut the victim and held lemons to her injuries. The victim was instructed to call Blaes “master” or “sir,” and to call Jones “mistress.” Blaes and Jones referred to the victim as their “slave.” Blaes and Jones instructed the victim to keep the sexual conduct and her age a secret and the victim was kept in their residence or in their control at all times and was not enrolled in school.
Blaes and Jones used a camera and cell phones to document their sexual abuse of the victim and to photograph her in sexually explicit poses. Blaes distributed the sexually explicit images of the victim online to recruit other individuals into his BDSM lifestyle with Jones.
John Andrew Blaes, age 50, also of Parkville, Maryland, previously pleaded guilty to the conspiracy and to transporting a minor to engage in sexually explicit conduct. Blaes was sentenced to 27 years in prison followed by a lifetime of supervised release.
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.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Judson T. Mihok, who prosecuted the case.
Conspirator in $220,000 Armored Car Robbery Exiled to over 9 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced John Bernard Williams, age 48, of Fort Washington, Maryland, today to 112 months in prison followed by five years of supervised release for conspiracy to commit, and committing the armed robbery of an armored vehicle, and possession of a firearm in connection with 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; 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.
“Working with our law enforcement partners to curb violent criminal acts committed with firearms is a high priority of the FBI in Maryland,” said Stephen E. Vogt, Special Agent in Charge of the FBI’s Baltimore Division. “We will continue to work with the Montgomery County and Prince George’s County Police Departments to target and arrest individuals committing these crimes.”
According to Williams’ plea agreement, in June 2012, Williams began planning the robbery of an armored vehicle outside the Navy Federal Credit Union located in the 12000 block of Rockville Pike in Rockville, Maryland. Williams and co-defendant Carmen Camacho recruited co-defendant Kai Holt to assist in the robbery. On June 13, 2012, Williams met Holt and two other co-defendants, Marcus Brooks and Deangelo Williams, and traveled in two vehicles to the Navy Federal Credit Union. After arriving, the conspirators drove around the area planning escape routes, then parked in a parking lot adjacent to the credit union. Williams instructed the co-conspirators to wait there until he had given them the signal that the armored car had arrived at the credit union. At about 11:20 a.m., 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 and Brooks approached the courier and as they did so, Holt drew a semi-automatic pistol from his waistband. The courier abandoned the bag of money on the ground at the back of the van and ran away. Brooks picked up the bag, which contained $220,000, and he and Holt ran back to their vehicles and fled. Williams and his co-conspirators traveled back to Prince George’s County, Maryland, where they divided the proceeds of the robbery.
Carmen Camacho, age 31, of Fort Washington, Kai Holt, age 38, of Waldorf, and Marcus Brooks, age 21, of Lanham, Maryland, have all pleaded guilty to their roles in the robbery and are awaiting sentencing. Deangelo Williams, age 20, of Fort Washington, also pleaded guilty and was sentenced to three years 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.
Three Drug Trafficking Conspirators Each Sentenced to over 10 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced three conspirators from Maryland today, who were convicted by a federal jury following a four week trial, for their participation in a conspiracy to traffic cocaine and heroin in Montgomery County, Maryland and several states.
Judge Titus sentenced Omar Steele, age 43, of Upper Marlboro, Maryland, to 16 years in prison, followed by five years of supervised release, for conspiring to distribute more than a kilogram of heroin and five kilograms of cocaine; managing a place used to distribute and store drugs; interstate travel for narcotics activity; possession with intent to distribute heroin; and three counts of using a telephone to further a drug trafficking offense.
Judge Titus sentenced Noe Farid Medrano, age 42, of Adamstown, Maryland, to 10 years in prison, followed by five years of supervised release, for conspiring to distribute more than five kilograms of cocaine; possession with intent to distribute cocaine; possession with intent to distribute marijuana; and three counts of using a telephone to further a drug trafficking offense.
Judge Titus sentenced Francisco Barahona, age 35, of Gaithersburg, Maryland, to 11 years in prison, followed by five years of supervised release, for conspiring to distribute more than a kilogram of heroin and five kilograms of cocaine; managing a place used to distribute and store drugs; interstate travel for narcotics activity; possession with intent to distribute heroin; using a telephone to further of a drug trafficking offense; and possession with intent to distribute cocaine and a kilogram or more of heroin.
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; Chief J. Thomas Manger of the Montgomery County Police Department; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to trial evidence, Steele obtained multiple kilograms of cocaine and heroin from his source of supply; received or brokered the distribution of 10 to 15 kilograms of heroin, and 40 to 50 kilograms of cocaine; and provided a place to use to distribute and cut the drugs.
From 2010 until his arrest on January 25, 2012, Medrano distributed approximately 3.5 kilograms of cocaine. Witnesses testified to delivering cocaine to Medrano in increments ranging from a half ounce to 18 ounces. Early on in the conspiracy, Medrano made trips to pick up the cocaine and bring it to Montgomery County, Maryland.
Starting in approximately 2010, Barahona helped transport kilograms of cocaine to Connecticut and Pennsylvania, and transported cocaine from Houston and Atlanta back to Maryland.
Barahona’s house was used by members of the conspiracy to cut and repackage kilograms of cocaine and heroin.Some of the kilograms of drugs that arrived in Montgomery County were cut, and all of the drugs were repackaged and sold in the Washington, D.C. metropolitan area, Pennsylvania, Connecticut, Virginia and New York. The investigation ended on January 25, 2012 when agents learned that co-conspirators had traveled to Atlanta to pick up a drug. When the conspirators arrived back in Maryland at Barahona’s residence, two co-conspirators unloaded some of the kilograms into Barahona’s home. Agents executed search and arrest warrants and seized four kilograms of cocaine and two kilograms of heroin from the basement. A fifth kilogram of cocaine and a handgun were recovered from a hidden compartment in a truck used to transport the drugs from Atlanta to Maryland.
United States Attorney Rod J. Rosenstein commended the DEA, Montgomery County Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Mara Z. Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Leader of St. Mary’s County Cocaine Distribution Ring Sentenced to over 14 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Brian Deandre Bush, age 43, of Hollywood, Maryland, today to 140 month in prison followed by five years of supervised release for conspiracy to distribute, and possess with intent to distribute, cocaine and crack cocaine in St. Mary’s County, Maryland. Bush was also sentenced to 37 months in prison, for violating his supervised release from a 2007 drug conviction, which Judge Williams ordered to be served consecutive to the sentence imposed today.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder, of the Drug Enforcement Administration - Washington Field Division; and St. Mary’s County Sheriff Tim Cameron.
According to Bush’s guilty plea, from November 2010 through July 15, 2011, Bush conspired with his son, Demetrius Deandre Young, Kerry Alexander Bond, Sr., John Larry Dickerson, Marcus Tyrek Chase, William Lamont Young, Alexander Sternack, Wayne Marcelle Mills and others to distribute cocaine in St. Mary’s County, Maryland. Bush and Demetrius Young received cocaine from their sources of supply in Maryland, Georgia, Florida and elsewhere, including cocaine supplied by John Edward Butler, David Butler and Bond. The cocaine was smuggled back to St. Mary’s County where Bush and Demetrius Young supplied Chase, Dickerson and others with powder and crack cocaine for distribution. Law enforcement overheard thousands of cell phone conversations between the defendants, including Bush, relating to their drug activities and the rising prices of cocaine in St. Mary’s County. Bush and Demetrius Young would call and coordinate the delivery of cocaine and payment for the cocaine with John Butler, David Butler, Bond and others. Bush and Demetrius Young would then call Dickerson, Chase, Mills, William Young, Sternack and others to tell them when the cocaine and crack cocaine was ready to be picked up. These individuals met Bush, Young and/or one of their subordinates at locations in St. Mary’s County to obtain cocaine and crack cocaine.
Bush was responsible for the distribution of between five and 15 kilograms of cocaine, and between 280 grams and 840 grams of crack cocaine.
All 10 defendants have pleaded guilty in this case. Kerry Alexander Bond, Sr., age 41, of Leonardtown, Maryland, and Wayne Marcelle Mills, age 45 of Lexington Park, Maryland, are awaiting sentencing. Marcus Tyrek Chase, age 27, of Lexington Park, Maryland, and John Larry Dickerson, age 43, of Waldorf, Maryland, were sentenced to 15 years in prison and 140 months in prison, respectively. Demetrius Deandre Young, age 23, of Hollywood, was sentenced to 75 months in prison; William Lamont Young, age 41, and David Anthony Butler, age 69, both of Leonardtown, were sentenced to two years in prison and 15 months in prison, respectively; and John Edward Butler, age 37, and Alexander Sternack, III, age 38, both of Mechanicville, Maryland, were sentenced to 63 months in prison and 70 months in prison, respectively.United States Attorney Rod J. Rosenstein commended the DEA and St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James A. Crowell IV, Arun G. Rao and Thomas Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Leader in Baltimore Heroin Distribution Ring Sentenced to Life in PrisonRead the Press Release
This Was Roy Clay’s Third Felony Drug Trafficking Conviction
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Roy Lee Clay, age 47, of Baltimore, today to life in prison, for conspiracy to distribute and possess with intent to distribute heroin. Judge Blake enhanced Clay’s sentence based upon two previous drug trafficking convictions.
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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to testimony at Clay’s 14 day jury trial, Clay was one of the leaders of a heroin trafficking organization that operated from April 2009 through November 2011. Clay and co-defendant Walter Powell obtained heroin from co-defendant Danilo Garcia. Garcia employed couriers to transport the heroin from New York to Baltimore and to return cash from the drug sales to New York. Evidence presented at trial included calls on March 6 and March 7, 2011, in which Clay and Garcia discuss a courier coming to Baltimore with heroin. On March 8, 201,1 Clay is overheard arranging to pick up the courier at a restaurant near the Baltimore Travel Plaza. Later that day, law enforcement observed Clay meet briefly with the courier near the restaurant. On March 9, 2011, law enforcement intercepted calls in which Garcia contacted Clay to see how heroin sales were progressing.
At trial, evidence also included that on February 17, 2011, individuals broke into Roy Clay’s home in an attempt to rob him. FBI agents testified that they saw Clay and Garcia running from the house while chased by these robbers. One wiretapped call included Clay discussing individuals breaking into his house and that Clay had to struggle with the robbers, at least one of whom had a gun, before Clay could flee the house.
The jury found that Clay was responsible for the distribution of at least one kilogram of heroin.
Walter Powell, age 61, of Baltimore, Maryland, pleaded guilty to the heroin conspiracy and was sentenced to 121 months in prison. Co-conspirator Danilo Garcia, age 43, of Bronx, New York was convicted at trial and sentenced to 188 months in prison for the heroin conspiracy, and for distribution of heroin.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Cumberland Man Sentenced to 9 Years in Prison for Three Armed Bank RobberiesRead the Press Release
Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced John Allen Talerico, age 50, of Cumberland, Maryland, to nine years in prison, followed by five years of supervised release, for three armed bank robberies. Judge Garbis also ordered Talerico to pay restitution of $31,206.
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; Cumberland Police Chief Charles H. Hinnant; Allegany County Sheriff Craig Robertson; Frostburg Police Chief Royce C. Douty; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg, of the Combined County Criminal Investigations Unit (C3I).
According to his plea agreement, between March 11, 2011, and September 13, 2011, Talerico committed three armed bank robberies in Cumberland, Maryland. During each robbery, Talerico entered the bank, approached the teller and asked about opening an account, then pointed what appeared to be a large black semiautomatic handgun at the teller and demanded money. After the tellers gave Talerico cash, he threatened them and demanded more money from the tellers, then fled the bank. On one occasion, when a customer entered the bank during the robbery, Talerico pointed the gun at the customer, telling the customer to “get out of the way.” During the robberies, Talerico wore distinctive clothing, including a knit hat with a brim, and large framed glasses.Specifically, on March 11 and September 13, 2011, Talerico robbed the M&T Bank, located at 1150 Industrial Boulevard, and on June 24, 2011, Talerico robbed the Susquehanna Bank, located at 600 West Industrial Boulevard, all in Cumberland. Talerico obtained a total of approximately $31,206 from the three bank robberies.
The robberies were captured on bank surveillance video. During a search warrant executed at Talerico’s home on March 30, 2012, numerous articles of clothing matching those worn by the bank robber in the surveillance photos were seized.According to court documents and testimony at today’s sentencing hearing, Talerico committed two additional robberies. On December 23, 2010, Talerico robbed the First Commonwealth Bank, in the 8400 block of William Penn Highway, in Osterburg, Pennsylvania, stealing approximately $4,506. On March 16, 2012, Talerico pretended to “test drive” a used car from a dealer whom he knew, driving the car to Fort Ashby, West Virginia, where he robbed the BB&T Bank, stealing approximately $7,481.
United States Attorney Rod J. Rosenstein praised the FBI, C3I, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Maryland State Police, and Allegany County State’s Attorney’s Office for their work in the investigation and thanked the Mineral County Sheriff’s Office (WV), and Pennsylvania State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul E. Budlow and Mark W. Crooks, who prosecuted the case.Cambridge Man Pleads Guilty to Attempted Murder of A U.s. Marshals Service Task Force OfficerRead the Press Release
Defendant Fired Many Shots at Officers Serving Him With an Arrest Warrant
Baltimore, Maryland – Tayvon Dobson, age 23, of Cambridge, Maryland, pleaded guilty today to attempted murder of a federal officer and using a gun during the attempted murder.
The guilty plea 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; Dorchester County State’s Attorney William H. Jones; Cambridge Police Chief Kenneth W. Malik; U.S. Marshal Johnny Hughes; Dorchester County Sheriff James W. Phillips, Jr.; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to his plea agreement, on February 29, 2012, members of the Maryland State Apprehension Team/Capital Area Regional Fugitive Task Force of the U.S. Marshals Service and the Cambridge, Maryland Police Department arrived at a residence divided into individual apartments on Hubbard Street in Cambridge to serve an arrest warrant for Dobson. The arrest warrant charged Dobson with first degree assault and other related charges.
A Task Force detective and a supervisory inspector wore official tactical style police vests with bright yellow or white letters signifying “SHERIFF” or “Police US MARSHAL” across the back along with a Task Force or a “Police US Marshal” patch on the front. Shortly after their entry into one of the apartments, Dobson’s movements were heard across the hall in apartment #1. Officers shouted at Dobson to open the door. Within minutes gunshots from apartment #1 were directed at law enforcement located outside the residence at their unmarked police vehicles. After the Task Force detective in apartment #2 realized that he could not safely escape that apartment through the hallway, he barricaded the bedroom door with a mattress and dresser.
Shots continued to ring out from apartment #1 as other officers yelled to Dobson to surrender. After several minutes of gunfire, the detective heard Dobson reload a firearm and Dobson began to shoot again. The detective was able to see into the hallway and the front door of apartment #1. Seconds later, the detective saw Dobson leave the apartment and stop in the hallway. Dobson saw the detective no more than 15 feet away and began to fire. The detective fired back while still barricaded in the bedroom of apartment #2. After several volleys of gunfire, the detective felt a sharp pain in his left shoulder, but continued to fire at Dobson. When Dobson left the hallway, the detective saw blood rapidly coming from his wound. The detective broke through the bedroom window and rolled out to the ground. Once on the ground he ran with other officers to safety. He was taken to a hospital where he had surgery.
Dobson continued to shoot at the remaining officers. Four hours after law enforcement first entered the building, Dobson finally surrendered. All of the rooms of Dobson’s residence were riddled with bullet holes. Three firearms were seized, two of which had been used to fire from inside the apartment, as well as a magazine, several rounds of live ammunition and numerous spent shell casings and projectiles.
Dobson and the government have agreed that if the Court accepts the plea agreement Dobson will be sentenced to between 24 and 30 years in prison. U.S. District Judge Catherine C. Blake scheduled his sentencing for October 31, 2013 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended the ATF, Dorchester County State’s Attorney’s Office, Capital Area Regional Fugitive Task Force of the United States Marshals Service, Cambridge Police Department, U.S. Marshals Service, Dorchester County Sheriff’s Office and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who is prosecuting the case.
Bowie Realtor and Leader of $5.95 Million Mortgage Fraud Scheme Sentenced to over 3 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Daniel Ofei, age 39, of Bowie, Maryland, today to 37 months in prison, followed by five years of supervised release, for conspiracy to commit wire fraud in connection with a mortgage fraud scheme involving losses of at least $5 million. Judge Messitte also entered an order that Ofei pay restitution of $5,950,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Inspector General Jon T. Rymer 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, from at least June 2006 to April 2009, Ofei, a licensed realtor, conspired with Michael Abobor, Jared Fanning, and others to use straw buyers to obtain fraudulent mortgages using false financial and employment information, to purchase homes in Maryland. Abobor was also a licensed realtor and Fanning, a mortgage broker at the time, assisted Ofei and Abobor in obtaining the fraudulent mortgages.For example, in early 2006, Ofei’s wife wanted to purchase a home in Silver Spring, Maryland. Ofei, serving as his wife’s real estate agent, assisted his wife in obtaining a mortgage by providing Fanning with false information regarding his wife’s income, citizenship, and intent to occupy the property as a primary residence. Ofei knew that his wife would not have qualified to obtain the mortgage with truthful financial information. Ofei’s wife purchased the house and Ofei collected approximately $16,471 in commission from the transaction. The home was sold short in 2008, resulting in a $150,000 loss to the bank.
In 2006 and 2007, Ofei facilitated the purchase of at least four other properties in a similar manner. For each loan application Ofei provided Fanning with fraudulent information about the borrower’s employment and income, knowing that the buyer would not have qualified for a mortgage with truthful financial information. Based on these fraudulent applications, the victim lending institutions funded loans that totaled hundreds of thousands of dollars, resulting in substantial commission payments to Ofei and his co-conspirators. Eventually, each of the loans fell into default, causing large losses to the victims.
In all, Ofei, Abobor and their business partners recruited approximately thirty straw buyers, arranged more than 50 real estate transactions, caused more than $5,956,000 in losses to financial institutions, took in excess of $333,000 in real estate commissions, and collected over $1,200,000 in extra money from the transactions in the form of payments for renovations that were never completed.
Michael Abobor, age 38, of Bowie, Maryland and Jared Fanning, age 34, of Potomac, Maryland, have both pleaded guilty to their roles in the conspiracy. Two other co-conspirators, Emeka Udeze, age 38 of Bowie, a licensed mortgage broker, and Shola Risikat Balogun, age 46, of Upper Marlboro, Maryland, have also pleaded guilty in the scheme. All are awaiting sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein praised the 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.
Baltimore Crack Dealer and Previously Convicted Felon Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Craig Martin, age 40, of Baltimore, Maryland, today to 10 years in prison, followed by four years of supervised release, after Martin pleaded guilty to possession with intent to distribute crack cocaine. Judge Blake found that Martin is a career offender based on at least two previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Martin’s plea agreement, on May 16, 2012, ATF agents and task force officers executed a search warrant at Martin’s residence in the 5500 block of Cedonia Avenue in Baltimore. Martin was found in the kitchen of the house. Stairs to the basement, where Martin and his wife appeared to be living, were located in the kitchen. During the execution of the search warrant, agents found a clear plastic bag in the kitchen garbage can containing five clear plastic baggies, each of which contained at least 20 small ziplock baggies with crack cocaine. The total weight of the crack cocaine was approximately 12 grams. Agents also found a digital scale with cocaine residue and blue ziplock packaging materials in the dining room.
At today’s sentencing hearing the government also presented evidence that during the search, agents also found a box of .45 caliber ammunition in a dresser drawer in Martin’s basement bedroom and a box of .44 caliber ammunition on top of the dresser. Martin is prohibited from possessing a gun or ammunition as a result of his previous felony convictions.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kenneth S. Clark, who prosecuted the case.
Salisbury Man Pleads Guilty to Bank RobberyRead the Press Release
Baltimore, Maryland – Gary Allen Mitchell, age 42, of Salisbury, Maryland, pleaded guilty today to bank robbery. Mitchell has two prior federal bank robbery convictions – one each in Maryland and Delaware.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Salisbury Police Chief Barbara Duncan.
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 that the teller should not 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, threw the stack of money on the counter, and told the teller that he had instructed her not to do that. Police officers arrested Mitchell, who was found smoking crack cocaine shortly after the bank robbery, and recovered the proceeds of the robbery.Mitchell faces a maximum sentence of 20 years in prison. U.S. District Judge J. Frederick Motz scheduled sentencing for November 15, 2013 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the FBI and Salisbury Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bonnie S. Greenberg, who is prosecuting the case.U.s. Embassy Employee Sentenced to Prison for Traveling to Engage in Illicit Sexual ConductRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Rosauro Pacubas, age 58, of Manila, Philippines, today to five years in prison, followed by 10 years of supervised release, for travel with intent to engage in illicit sexual conduct. Judge Hollander ordered that Pacubas pay $21,600 in restitution to the victim. Judge Hollander also ordered that upon his release from prison, Pacubas 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 and Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service.
According to the facts presented to the court, Pacubas was a U.S. government embassy employee in Manila, Philippines. On March 1, 2012, Pacubas traveled to Baltimore with his wife and the victim, who was to be evaluated at a hospital in the Baltimore area. During their stay in a hotel in Baltimore, Pacubas sexually abused the victim. Following the victim’s hospital evaluation, she entered a therapeutic boarding school in North Carolina where she disclosed sexual abuse by Pacubas. On January 11, 2013, Pacubas was interviewed and admitted sexually abusing the victim during their stay in Baltimore in March 2012.
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 Diplomatic Security Service for its 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 Judson T. Mihok, who prosecuted the case.
Hagerstown Pharmacist Sentenced to 30 Months in Prison for Health Care Fraud for Improperly Billing Medicare and MedicaidRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced David Russo, age 62, of Hagerstown, Maryland today to 30 months in prison, followed by one year of supervised release, for health care fraud in connection with a scheme to defraud Medicare and Medicaid by billing for prescriptions that Russo knew were not written for a legitimate medical purpose. Judge Russell also ordered that Russo pay a fine of $50,000, restitution of $200,146.33 and forfeit $39,000 in cash seized during a search of his pharmacy in 2010. As required by his plea agreement, Russo has surrendered his pharmacy license and agreed not to seek a new license in Maryland or any other state.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office.
“Russo's career as a pharmacist is over. Professionals, such as doctors and in this case a pharmacist, who knowingly abuse their power and the public trust are drug dealers, no different than the street dealers that sell illicit drugs,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “The abuse of diverted prescription pain medication is the fastest growing drug problem in our country and DEA remains committed to investigate this problem,” added Tuggle.
According to his plea agreement, Russo, a licensed pharmacist, owned and operated a pharmacy known as "Russo’s Rx," located at 25 North Cannon Avenue in Hagerstown. Russo admitted that from January 2009 through December 2010, he filled prescriptions for oxycodone, methadone and benzodiazepines that he knew were issued outside of the legitimate medical course and fraudulently billed Medicare and Medicaid for those prescriptions. The sheer number of prescriptions for oxycodone and methadone indicated that the prescriptions were not valid.
In addition, Russo accepted cash for Schedule II drugs when the drugs were not covered by Medicaid or Medicare. Schedule II drugs, including oxycodone and methadone, are approved for medical use and also have a very high abuse potential. They are regulated by the DEA. Another indicator that Russo knew the prescriptions were not for a legitimate medical purpose is that he "split" prescriptions, accepting an amount of cash at the time of a transaction and then accepting the remaining amount at a later time. Russo also filled two prescriptions for a Schedule II drug on the same day for the same patient but charged one to insurance and accepted cash for the other. The investigation showed that: customers would call ahead of time to ask Russo if he had oxycodone “in stock” and how much it would cost; customers traveled from out of state or in van loads to his pharmacy; and many customers were receiving the same “cocktail” prescription of oxycodone, Roxicodone and Xanax, which are well known in medicine and pharmacy as being extremely dangerous when combined because of the severe side effects and potential for addiction and abuse.
Further, Russo made gross sales of nearly $700,000 a month for several months in 2010 - a dramatic increase over previous months. He also made at least 55 cash deposits between December 1, 2009 and June 15, 2010 totaling $862,000. Russo even maintained a cash counting machine in his pharmacy.In December 2010, the DEA executed a search warrant at Russo’s Rx and seized $39,000 in cash from the pharmacy - cash that was earned from unlawful dispensation of oxycodone, methadone and benzodiazepines. Since that date, Russo admitted that he deleted thousands of unlawful prescriptions from his prescription database. From January 1, 2009 through December 31, 2010, Russo’s Rx dispensed over 700,000 dosage units of oxycodone and 117,000 dosage units for methadone for the invalid prescriptions. The vast majority of the remaining invalid prescriptions were for other schedule II narcotics and benzodiazepines. For all these prescriptions, Russo improperly billed, and received payment for, over $109,207.26 to Medicare and at least $90,939.07 to Medicaid, with a total approximate loss of $200,146.33.
United States Attorney Rod J. Rosenstein praised the DEA for its work in the investigation and thanked the Maryland Division of Drug Control and the Maryland Board of Pharmacy for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson, Thomas Corcoran and Ayn M. Ducao, who prosecuted the case.
Hagerstown Man Sentenced to 4 Years in Prison for Possessing Child PornographyRead the Press Release
Baltimore, Maryland –U.S. District Judge Richard D. Bennett sentenced James Andrew Wagner, age 43, of Hagerstown, Maryland, today to four years in prison, followed by 10 years of supervised release, for possession of child pornography. Judge Bennett ordered that upon his release from prison, Wagner 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 and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the plea agreement, on April 7, 2011, an undercover FBI agent in Kansas City, Kansas, downloaded 16 images from Wagner, using a file sharing program connected to the internet. All of the files depicted minors engaging in sexually explicit conduct. On November 28, 2011, an undercover FBI agent in Baltimore used a file sharing program to download 58 files from Wagner that contained child pornography. On December 22, 2011, a search warrant was executed at Wagner’s home and agents seized computers and digital media. A review of the images on Wagner’s computers and other devices revealed well over 600 files of child pornography, separated into hundreds of folders organized by the name of the minor depicted in the files. At the time of the offense, Wagner was a civilian police officer at Fort Detrick.
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 for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Former Baltimore Police Officer Indicted for Operating A Prostitution BusinessRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment charging former Baltimore Police officer Lamin Manneh, age 32, of Baltimore, with traveling across state lines and using the telephone and internet to operate a prostitution business. The indictment was returned on August 15, 2013, and unsealed today at Manneh’s initial appearance.
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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Anne Arundel County State’s Attorney Anne C. Leitess.
According to the indictment, between February 2013 and May 9, 2013, Manneh operated a prostitution business that serviced over 300 customers. The business provided prostitution services to customers who came to an agreed location (“in-call”), as well as at locations specified by the customers (“out-call”). Manneh’s 19 year old wife and another 19 year old woman worked as prostitutes for Manneh. The indictment alleges that as part of his business, Manneh drafted, paid for, and posted more than 50 prostitution advertisements for the two women on internet websites; rented an apartment and hotel rooms to facilitate “in-call” commercial sex acts with clients who responded to the prostitution advertisements and drove the women to “out-call” commercial sex acts at residences and hotel rooms.
According to the indictment, Manneh provided the women with cell phones and taught them to use “voice over internet” phone services to communicate with prospective clients and with one another. The indictment alleges that Manneh waited outside the commercial sex act locations and electronically messaged with the women when they were with clients; and that Manneh carried his police-issued firearm and agreed to forcibly interrupt a commercial sex interaction if the client was aggressive or non-compliant; and that he supplied both women with synthetic marijuana. According to the indictment, Manneh collected all of his wife’s prostitution earnings and a percentage of the other woman’s prostitution earnings.
Manneh faces a maximum sentence of five years in prison, followed by up to lifetime of supervised release, for operating a prostitution business. Manneh had his initial appearance this morning in U.S. District Court in Baltimore and is detained pending a detention hearing scheduled today at 3:45 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police and Anne Arundel County State’s Attorney’s Office for their work in the investigation and recognized the Baltimore Police Department for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.
Nine Indicted in Alleged Heroin Distribution Organization Operating in Maryland, Delaware, Pennsylvania and New YorkRead the Press Release
U.S. Attorney Warns of Dramatic Spike in Maryland Deaths by Heroin Overdose
Baltimore, Maryland - A federal grand jury has indicted nine individuals in connection with a heroin distribution ring that allegedly operated in Cecil County, Maryland, Delaware, Pennsylvania and New York. The indictment was returned on August 7, 2013.
The indictment and search warrant affidavits were unsealed today upon the arrests of the defendants and the execution of eight search warrants of residences and vehicles associated with the defendants in Maryland, Delaware, Pennsylvania, and New York. Approximately 100 agents and officers from 11 law enforcement agencies assisted in today’s arrests and search warrants.
The indictment arose from a joint investigation by the Drug Enforcement Administration - Baltimore Field Office, Wilmington, Delaware Resident Office, New York Division, Philadelphia Field Division, Santo Domingo country office and Mexico City country office; the Cecil County Drug Task Force (“CCDTF”), comprised of the Elkton Police Department, Cecil County Sheriff’s Office, Maryland State Police and the Cecil County State’s Attorney’s Office; the Delaware State Police; and the Philadelphia Police Department.
The following defendants are charged with conspiracy to distribute heroin and were arrested today:
Luis Lugo-Santiago, a/k/a “Papi,” and “Andres Galvez,” age 38, of New York, New York;
Orlando Nunez de Leon, a/k/a “Alberto Ando,” age 36, of New York;
Jorge Ayala-Pizzaro, Jr., a/k/a “Black Pa,” and “Black Pop,” age 23, of Philadelphia;
Veroni Chavarria Cubero, a/k/a “Vero,” age 30, of Philadelphia;
Maria Paulino Perez, a/k/a “Nena,” age 40, of Philadelphia;
Abel Nunez-Reyes, age 29, of Philadelphia; and
Rachine Huron Garnett, a/k/a “Sheen,” “Red,” “Ray,” and “Blockhead, age 37, of
Elkton, Maryland.
Two defendants are still being sought.The indictment 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; Special Agent in Charge David G. Dongilli, Philadelphia Division of the DEA; Cecil County Sheriff Barry A. Janney, Sr.; Chief Matthew Donnelly of the Elkton Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cecil County State’s Attorney Ellis Rollins; and Colonel Nathaniel McQueen, Jr. of the Delaware State Police.
“Heroin is one of the leading causes of death in Maryland; with the recent spike from 245 overdose deaths in 2011 to 378 in 2012, more people die of heroin than murder,” said U.S. Attorney Rod J. Rosenstein. “Heroin dealers are selling death and despair.”
According to the indictment and affidavits filed in support of the search warrants, Lugo is a Dominican native living in New York, who is alleged to be running a heroin mill in the Bronx, New York. The organization allegedly processes between one and two kilograms of heroin per week for retail sale. Lugo has a number of customers in the Maryland and Delaware areas, including Rachine Garnett. Court documents allege that Jorge Ayala-Pizzaro and Veronica Cubero, who are in a romantic relationship, are the main couriers for the Lugo organization and Nunez de Leon packages heroin for the organization. According to court documents, Garnett often traveled to Philadelphia to provide Ayala-Pizzaro with cash and to obtain heroin. Garnett and Ayala-Pizzaro often exchanged vehicles during these meetings, and it is alleged that the money and drugs were hidden in mechanized hidden compartments, called “traps,” in the vehicles. The investigation included hundreds of intercepted telephone calls and text messages in which the defendants are alleged to discuss drug business, often using coded language.
The defendants face a maximum sentence of life in prison. Ayala-Pizzaro, Cubero, Perez, Nunez-Reyes and Garnett each had an initial appearance today in U.S. District Court in Baltimore. Lugo-Santiago had his initial appearance in the U.S. District Court in New Jersey and Nunez de Leon had his initial appearance in U.S. District Court for the Southern District of New York. Perez is scheduled to have her initial appearance on Friday in U.S. District Court in Baltimore. All the defendants were detained.
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 DEA, Cecil County Drug Task Force, and Delaware State Police for their work in the investigation. Mr. Rosenstein also recognized the U.S. Attorney’s Offices in the District of Delaware, Southern District of New York and the Eastern District of Pennsylvania, the Office of the Special Narcotics Prosecutor for the City of New York and the New York Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and James G. Warwick, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Bank Teller Sentenced for Embezzling from Customer AccountsRead the Press Release
Stole $144,908 from Elderly Bank Customers and a Restaurant’s Account, Failing to Pay at Least $30,000 in Taxes Owed on the Embezzled Funds
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Irene Quansah, age 37, of Germantown, Maryland, today to two years in prison followed by five years of supervised release for embezzlement and income tax evasion. Judge Grimm also entered an order that Quansah forfeit and pay restitution of $144,908.33 to the victim bank and $30,000 to the IRS.
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 Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Ms. Quansah’s embezzlement scheme to steal from her employer’s customer bank accounts was illegal and her act of deliberately underreporting her embezzlement income on her federal tax returns is unlawful,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “IRS Criminal Investigation will continue to work with our law enforcement partners to bring to justice those that abuse their positions of trust and steal from innocent victims. Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior.”
According to her plea, from November 2010 to July 2012 Quansah used her position as a teller coordinator at a bank to fraudulently withdraw funds from customers’ accounts and fail to deposit customer funds.
Specifically, on at least 100 occasions Quansah removed cash from cash deposits made by a restaurant at an ATM, stealing a total of $35,696.29. On December 28, 2010, she withdrew $10,000 from the account of an elderly woman, returning the money from funds drawn off of her teller vault only after the customer complained to bank officials about the unauthorized withdrawal. On five occasions from December 2010 to April 2011, Quansah withdrew a total of $11,550 from another elderly woman’s account, falsely noting that the fraudulent withdrawals were done at the customer’s request.
In February 2011, the daughter of a third elderly woman presented savings bonds to Quansah to redeem and deposit the proceeds into the elderly mother’s account. Quansah told the daughter that she needed to leave the bonds with her so that Quansah could redeem them over the next few months. Quansah, however, deposited only a portion of the proceeds of the bonds into the customer’s account, stealing at least $9,975.48. Similarly, in September 2011 Quansah was asked to redeem savings bonds valued at $25,179.48 and deposit the proceeds into another elderly woman’s account, but Quansah deposited only $13,342.92, retaining the remainder for her own benefit.
On nine occasions from September 2011 to March 2012, Quansah stole a total of $65,850 from an elderly couple’s account, again falsely noting that the withdrawals were made at the couple’s request. After the elderly man complained to bank officials about these unauthorized withdrawals, Quansah refunded the account using funds drawn off of a friend’s line of credit. About an hour later, Quansah debited her teller vault to repay her friend’s line of credit.
On August 1, 2012 the bank made a surprise cash audit of Quansah’s cash drawer and teller vault which revealed a shortage of $87,900. Quansah admitted to taking the money.
The total amount Quansah embezzled was $144,908.33. She did not report any of the embezzled funds to the IRS on her tax returns and thus owed between $30,000 and $80,000 for underreporting her income.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI and IRS Criminal Investigation for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Christen A. Sproule and Kelly O'Connell Hayes, who prosecuted the case.
Upper Marlboro Man Sentenced to 10 Years in Prison for Transporting A 17 Year Old Girl to Engage in Sexual ActivityRead the Press Release
Defendant Took Teenager to Sex Parties
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Troy Walker, a/k/a ‘Caveman,” age 48, of Upper Marlboro, Maryland, today to 10 years in prison, followed by 10 years of supervised release, for transporting a minor with the intent to engage in prostitution. Judge Messitte also ordered that upon his release from prison, Walker 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.
According to his plea agreement, Walker met a 17 year old girl in March of 2012 through a friend who worked at parties hosted by Walker. Walker asked the victim to work for him at a party he was hosting. Walker hosted parties through a company called Quest For Fire. These parties were advertised as sex parties or “gang bangs” on the internet. Interested individuals would text Walker at the cell phone number listed in the ad and Walker would text back the party’s location. Guests paid for entry to a residence which would allow them to engage in sexual acts with girls provided by Walker.
In August 2012, Walker rented an apartment for the victim and had her engage in sex acts with guests at his parties. The victim’s photo was also posted in ads for the parties on the internet. Walker provided transportation for the victim to the sex parties, which included transportation from Washington, D.C. to Maryland. According to the victim, Walker assaulted her several times.
The victim worked for Walker at the parties hosted in Prince George’s County from April 1 to September 15, 2012, while she was 17 years old.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), which was created in 2010 to combat child prostitution, and includes 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 O’Malley, who prosecuted the case.
Man Sentenced to 10 Years in Prison for Sexually Assaulting A Minor on Ft. Meade Military BaseRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Daheem Bryant-Royal, age 23, of Ft. Meade, Maryland, today to 10 years in prison followed by five years of supervised release for sexual abuse of a minor that occurred on the Ft. Meade military base on September 4, 2011. Judge Quarles also ordered that upon his release from prison, Bryant-Royal 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 Major General David Quantock, Provost Marshal General of the Army and Commanding General of the U.S. Army Criminal Investigation Command.
On December 18, 2012, a federal jury convicted Bryant-Royal of raping a minor female at a home on the Ft. Meade military base, which is exclusive federal jurisdiction. According to the evidence presented at Bryant-Royal’s four day trial, the victim was staying at a residence on Ft. Meade. After attending a party the victim became heavily intoxicated. Witnesses testified that Bryant-Royal entered the bathroom where the victim was taken after she became ill, and sexually assaulted her.
The victim immediately reported the rape to her friends, who drove her home. The victim immediately informed her parents and law enforcement officials about the sexual assault and was admitted into a hospital, where a Sexual Assault Forensic Examination (SAFE) was performed. The results of the examination, which were introduced into evidence during trial, indicate that she was sexually assaulted and DNA evidence recovered from the victim was determined to match Bryant-Royal’s DNA.
United States Attorney Rod J. Rosenstein commended the FBI and U.S. Army Criminal Investigation Command at Ft. Meade for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Rachel M. Yasser and Special Assistant U.S. Attorney Christine L. Duey of the U.S. Justice Department, Criminal Division, who prosecuted the case.Carroll County Company Founder Sentenced to over 3 Years in Prison for $1.9 Million Securities FraudRead the Press Release
Founder and Former President of Gargoyles, Inc. Misrepresented
Company Sales and Customers to InvestorsBaltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced John F. “Jef” Curran, III, age 44, of Westminster, Maryland today to 37 months in prison, followed by three years of supervised release, for securities fraud, in connection with the sale of $1.9 million worth of stock in his company, Gargoyles, Inc. Judge Bennett also ordered that Curran forfeit $1,963,065, and pay restitution of $1,250,768 to repay victims for the money they invested in Gargoyles, Inc.
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 Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to the statement of facts that is part of his plea agreement, Curran was the founder, president and single largest shareholder of Gargoyles, Inc., located in Westminster, Maryland. Gargoyles was a self-described “advanced materials application company,” purportedly doing business with customers in a variety of settings including the military and law enforcement.From January 2009 to September 2010, Curran sold approximately $1.9 million worth of Gargoyles stock to investors. Curran admitted that he falsely represented to investors and potential investors that Gargoyles had customers, sales contracts and purchase orders for its products when, in fact, it did not. Curran also misrepresented his education to investors.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI and U.S. Postal Inspection Service for their work in the investigation and thanked the Securities Division of the Office of the Maryland Attorney General for its assistance in the case. Mr. Rosenstein praised Assistant U.S. Attorney Leo Wise, who prosecuted the case.
Correctional Officer Pleads Guilty to A Racketeering ConspiracyRead the Press Release
Smuggled Drugs and Other Contraband for BGF Gang Members in Baltimore Correctional Facilities
Baltimore, Maryland - Jennifer Owens, a/k/a O and J.O., age 31, of Randallstown, Maryland pleaded guilty today to a racketeering conspiracy for smuggling drugs and other contraband for Tavon White and other member of the Black Guerilla Family (BGF) gang inside several correctional facilities.
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; Secretary Gary D. Maynard 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 Baltimore City Detention Center (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.
Jennifer Owens worked as a correctional officer (CO) at BCDC from 2007 to 2013. Owens admitted that she entered into a personal and sexual relationship with BGF gang leader Tavon White while he was an inmate at BCDC and has two children by White. According to her plea agreement, Owens frequently smuggled Percocet pills and Suboxone strips into BCDC on behalf of White and others. From 2010 to 2011, Owens smuggled marijuana and tobacco into the prison two to four times per week, but after that she concentrated on pills and strips. Outside the prison, Owens frequently obtained contraband from other co-defendants and was paid either by transfers of funds onto Green Dot cards or by cash from these co-defendants. Owens also moved contraband internally within BCDC for others. Owens was aware that other co-defendants and many other correctional officers also smuggled contraband.
Owens faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for January 24, 2014.
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.Ms-13 Member Exiled to 15 Years in Prison for Illegal Possession of A Gun and Ammunition and Illegally Re-entering the U.s.Read the Press Release
Threatened A Witness in the Hours Before His Arrest
Baltimore, Maryland - U.S. District Judge George L. Russell, III sentenced Carlos Romero, age 22, a native of El Salvador residing in Baltimore, Maryland, today to 15 years in prison, followed by one year of supervised release, for illegal reentering the United States and for being a felon in possession of a gun and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); 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 the evidence presented at Romero’s two day trial, Romero was arrested in the early morning hours on June 8, 2011, after police saw the truck in which Romero was riding spin “donuts” and squeal wheels in an intersection. After stopping the truck, police asked the driver for his license and registration. The driver opened the glove box to retrieve the registration and police saw the butt of a revolver. The officers drew their weapons and placed the driver and Romero under arrest. The driver was removed from the vehicle and handcuffed. As the officers removed Romero from the truck, they saw a bullet slip out of his right front pants pocket, and they recovered another bullet from Romero’s pocket after he was out of the truck. Officers retrieved the gun, a .38 Special loaded with .38 special caliber ammunition - the same ammunition found in Romero’s pocket. Additional ammunition was recovered from the passenger-side floorboard of the truck, along with one spent cartridge casing of the same ammunition.
Witnesses at trial testified that Romero was deported from the United States in April 2010 and had not applied for, nor received permission to return. Another witness testified that a few hours prior to his arrest, Romero had threatened to cut out the witness’ tongue for talking to police about a shooting that had occurred in March 2011, at the bar where the witness worked. The perpetrator of the March 2011 shooting was a fellow MS-13 gang member. After Romero’s threat, the witness contacted a Baltimore Police detective and identified Romero in a photo lineup as the man who had threatened him.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, 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 Justin S. Herring, who prosecuted the case.
Maryland General Hospital Agrees to Pay $750,000 to Resolve False Claims Act Allegations in Connection with Overbilling for Cardiac TestingRead the Press Release
Baltimore, Maryland - Maryland General Hospital (“MGH”), an acute care hospital in Baltimore, Maryland that is part of the University of Maryland Medical Systems Corporation, agreed to pay $750,000 to settle allegations under the False Claims Act. The government alleged that MGH overbilled in connection with cardiac testing and failed to repay the overpayments after senior financial managers learned of them.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services.
The allegations resolved in the settlement include overbilling of cardiac perfusion studies performed in MGH from March 24, 2003 through December 23, 2009. The allegations resolved also relate to MGH’s failure to repay overbilled amounts after senior financial managers learned of the overpayments. Evidence established that senior financial managers at MGH were made aware of the overpayments in February and August 2007. Federal law requires that recipients of overpayments by the Medicare system identify them and repay them. Despite its awareness of the problem MGH failed to do so until this litigation.
The allegations settled today arose from a lawsuit filed by Kenneth Creeger against MGH under the qui tam, or whistleblower, provisions of the False Claims Act. United States ex rel. Kenneth Creeger v. Maryland General Hospital, No. 1:10-cv-0281 (D. Md.). The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the United States and share in any recovery. As part of today’s resolution, Mr. Creeger will receive $119,728 from the settlement.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.7 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.5 billion.
The settlement was a result of an investigation by the U.S. Attorney’s Office for the District of Maryland and the Justice Department’s Civil Division, the Inspector General of Department of Health and Human Services. The case was handled by Assistant U.S. Attorney Allen Loucks.
Eastern Shore Drug Distributor Sentenced to 19 Years in Prison for Heroin and Cocaine TraffickingRead the Press Release
Was a Fugitive for Over a Year
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Austin Roberts III, age 37, formerly of Elkridge, Maryland, today to 19 years in prison, followed by five years of supervised release, for conspiring to distribute heroin, cocaine and cocaine base (crack cocaine).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; U.S. Marshal Johnny Hughes; and Wicomico County State’s Attorney Matthew Maciarello.
“Today's sentencing of Roberts closes the book on a drug dealer who was responsible for trafficking a lot of cocaine on the Eastern Shore,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “You can run and hide but the long arm of justice will eventually catch you. This case demonstrates the commitment of the DEA and our law enforcement partners to bring an investigation to a successful conclusion,” added Tuggle.
According to Roberts’ guilty plea, from 2007 until his arrest in December 2012, Roberts conspired to distribute heroin and cocaine. His co-conspirators included Andrew Jackson, Maurice Hardy and others. Roberts distributed multiple kilograms of cocaine to Hardy on several occasions. For example, after a telephone call in which Hardy indicated that Roberts would be supplying him with seven kilograms of cocaine for $31,500 per kilogram, on May 12, 2011, Jackson, under Roberts’ direction, provided several kilograms of cocaine to Hardy. Subsequent to this meeting, law enforcement stopped Jackson’s vehicle and seized over $160,000 from a hidden compartment. During the course of the conspiracy, Roberts distributed or directed the distribution of well over 50 kilograms of cocaine and a kilogram of heroin.
For over a year following his indictment on state and federal charges, Roberts eluded arrest. On July 19, 2011, an officer patrolling the New Jersey Turnpike stopped the vehicle Roberts was driving. Roberts provided a California license under the name John Nash. When the officer learned that the name was an alias for Roberts who was wanted, he requested back up. Roberts ran away as the officers continued to investigate his identity. In August 2012, a California Highway Patrol officer attempted to stop a vehicle Roberts was driving, but Roberts again escaped on foot. Officers seized over $29,000 from a hidden compartment in the vehicle. Roberts was arrested in San Diego, California on December 4, 2012.
Andrew Jackson, age 40, of Baltimore, Maryland, Maurice Kenneth Hardy, age 37, of Nanticoke, Maryland, and Tereek Nutter, age 30, of Salisbury, Maryland, previously pleaded guilty to their participation in the drug conspiracy. Judge Hollander sentenced Jackson to 10 years in prison, Nutter to 151 months, and Hardy to 16 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, U.S. Marshals Service and the Wicomico County Narcotics Task Force, comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department, and the Wicomico County State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Joshua L. Kaul, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Eastern Shore Cocaine Dealer Sentenced to over 11 Years in PrisonRead the Press Release
On Supervised Release For a Prior Drug Conviction At the Time of His Arrest
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Tyrone Wheatley, age 44, of Rhodesdale, Maryland, today to 135 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; and Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police.
According to Wheatley's guilty plea, in July of 2011, Wheatley met with Steven Jordan at a shopping center in Queen Anne’s County, Maryland, and agreed to supply cocaine to Jordan in Delaware. Wheatley obtained the cocaine from a source of supply in California and arranged for the cocaine to be hidden in a vehicle, was then hauled from California to in Delaware by a commercial car transporter. Jordan delivered $220,000 in cash to Wheatley in Delaware. Wheatley transported the money through Maryland to Pennsylvania, where it was packaged in a vehicle and transported by commercial hauler to California.
On August 6, 2011, a commercial car hauler delivered a green Monte Carlo with approximately 13 kilograms of cocaine hidden inside, to a shopping center in Delaware. After receiving instructions from Wheatley regarding the arrival of the car hauler, Jordan was arrested the next day as he attempted to take delivery of the vehicle containing the cocaine.
Steven Jordan pleaded guilty to the same charge in U.S. District Court in Delaware and was sentenced to 12 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department and the Maryland Transportation Authority Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Peter J. Martinez, who prosecuted the case.
Baltimore Men Plead Guilty to Armed Robbery SpreeRead the Press Release
Co-Conspirators Admit Committing at Least a Dozen Armed Robberies of Stores and Businesses
Baltimore, Maryland - Quindell Ryeshawn Gardner, age 22, of Baltimore, Maryland pleaded guilty today to a commercial robbery conspiracy and possession of a firearm in furtherance of a crime of violence. On August 5, 2013, co-conspirator Tavon McPhaul, also age 22, of Baltimore, pleaded guilty to the same charge.
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; Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Kevin Davis.Police Commissioner Anthony Batts said, “I want to extend my deep appreciation to all of the local, state and federal partners who demonstrate an ongoing commitment to making Baltimore safer.”
“I’m happy that law enforcement partners were able to come together and build cases against these individuals,” said Chief Kevin Davis of the Anne Arundel County Police Department, “Clearly our citizens and business community are now much safer.”
According to their plea agreements, Gardner, McPhaul and others robbed stores in the Baltimore area. After deciding which place to rob, the conspirators would steal a car to use during the robbery. They also used a gun during the robberies to steal cash and cigarettes.
Gardner and McPhaul admitted that they committed approximately 22 and 12 armed robberies, respectively, 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.
Gardner, McPhaul and the government have agreed that if the Court accepts their plea agreements, Gardner will be sentenced to between 15 and 25 years in prison and McPhaul will be sentenced to between 11 and 15 years in prison. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Gardner for October 21, 2013 at 10:00 a.m., and McPhaul is scheduled to be sentenced on October 15, 2013.
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.
Clinton Woman Pleads Guilty in $2.3 Million Government Contract Fraud SchemeRead the Press Release
Greenbelt, Maryland – Larayne Whitehead, age 34, of Clinton, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to defraud businesses which supplied goods under government contracts.
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, from December 2007 to May 2013, Whitehead and her co-conspirators used at least 15 businesses in Maryland, Delaware, Georgia, Nevada, North Carolina and Tennessee which they incorporated to bid on contracts to provide goods – such as books, snowmobiles, plants and paint – to federal, state and local government agencies. Most of the contracts were awarded using an online marketplace, which contractors use to compete for federal contracts through a reverse auction process. The conspirators’ businesses often submitted extremely low bids to secure the contracts. Once awarded the contracts, Whitehead enticed victim businesses to act as subcontractors and supply the goods required by contract by providing fake references and by falsely promising that the subcontractors would be paid after the government paid Whitehead. After the subcontractors delivered the goods required by the contracts, government agencies paid Whitehead, typically by electronic transfers to bank accounts set up in the business names but controlled by Whitehead. Whitehead fraudulently retained these proceeds for her own personal benefit and did not pay the subcontractors.
The conspirators typically operated under a particular business name for a period of six to 12 months until the business was either disqualified from the online marketplace or was otherwise burdened with lawsuits or liens. The conspirators then continued the scheme under a newly-registered business name. The conspirators initially used their true names and addresses to register their businesses, but later attempted to conceal their true identities by using aliases.
Whitehead has agreed to forfeit $2,393,579 and a car.Whitehead faces a maximum sentence of 20 years in prison and a fine of $250,000. U.S. District Judge Alexander Williams, Jr. scheduled her sentencing for January 14, 2014 at 12:00 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force - chaired by Assistant Attorney General for the Criminal Division Lanny A. Breuer - includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice=s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant U.S. Attorney Christen A. Sproule, who is prosecuting the case.
Twice Convicted Sex Offender Sentenced to 15 Years for Receiving Child Pornography While on Federal Probation for Prior Sex OffenseRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Larry Poole, age 50, of Laurel, Maryland today to 15 years in prison, followed by a lifetime of supervised release, for receipt of child pornography. Chief Judge Chasanow ordered that upon his release from prison, Poole 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; Chief Richard McLaughlin of the Laurel Police Department; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, on June 11, 2012 the Child Protective Services (CPS) received a report that Poole was sending text messages claiming to be molesting an unidentified nine year old girl. CPS referred the matter to the Laurel Police Department, who were not able to locate any child in Poole’s neighborhood matching the description used by Poole in his texts.
The Laurel police subsequently learned that Poole was on federal probation, and was registered as a sex offender based on two prior convictions: in 2003, for child abuse, in Baltimore County Circuit Court; and in 2006, for attempting to entice a minor to engage in sex, and possession of child pornography, in federal court for the District of Columbia.
Laurel police alerted Poole’s federal probation officer who made a surprise visit to Poole’s home on June 25, 2012. Poole consented to a preview of his cell phone, and the probation officer discovered videos and images of child pornography. Poole admitted that an individual brought child pornography to Poole’s home the previous day on a thumb drive or SD card and helped Poole load pornographic images of girls under 14 years old onto Poole’s computer and cell phone.
Laurel police and the FBI executed a search warrant, seized Poole’s cell phone and computer, and discovered approximately six videos and 120 images of child pornography.
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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the Laurel Police Department and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Leader of A Maryland Drug Ring and Two Conspirators Sentenced to 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 Billymir Mancilla-Brevichet, age 28, of Oakland, California, today to 90 months 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 Mancilla forfeit $278,618 seized from May to October, 2012.
Yesterday, Chief Judge Chasanow sentenced 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, to eight years and three years in prison, respectively, for their participation in 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.
“This case underscores the teamwork between HSI and the Montgomery County Police Department in dismantling a drug trafficking and money laundering organization,” said William Winter, HSI special agent in charge in Baltimore. “HSI works aggressively to keep illegal drugs out of our communities, and to dismantle the criminal networks that profit from drug trafficking and the crime that surrounds it.”
According to their guilty ples and court documents, from March 2011 to December 2012, 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 Chamron Thach. Mancilla’s co-conspirators transported at least 100 pounds of marijuana at a time by car to a storage facility in Maryland, where Mancilla arranged for co-conspirators, including Carlos Escobar, to pick up multiple pounds of marijuana for re-distribution. When the marijuana was delivered to Maryland, Thach became responsible for redistributing the marijuana to co-conspirators and customers. Thach also received at least six pounds of marijuana every week by mail from Mancilla that he re-distributed to his drug customers in amounts up to a pound at a time. Thach had these packages delivered to co-conspirators’ homes and to a stash location he maintained in Silver Spring, Maryland.
Mancilla charged between $3,000 and $4,000 per pound of marijuana. During their participation in the conspiracy, Mancilla, Thach and Escobar conspired to distribute over 1,500 pounds of marijuana.
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. Mancilla and other co-conspirators, including Thach and Escobar, structured the financial transactions to evade requirements that banks must report transactions over $10,000 to the IRS, thereby concealing from the government large cash transactions by drug dealers.
Mancilla also had drug customers make payments to Escobar and other co-conspirators in Maryland, who bundled the drug proceeds together in amounts ranging from $10,000 to $100,000. Thach and other individuals traveled by plane from Maryland to Mancilla in California with the bundles of money. Finally, Mancilla arranged for drug customers, including Thach, to mail drug proceeds from Maryland to him in California.
This money laundering conspiracy involved at least $1 million.
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.
Dundalk Man Admits to Repeatedly Sexually Abusing A Child to Produce Child PornographyRead the Press Release
Baltimore, Maryland –Larry James Kerfoot, age 38, of Dundalk, Maryland, pleaded guilty yesterday to sexually exploiting a minor on at least five occasions to produce images of child pornography.
The plea agreement 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 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 Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on May 30, 2012, an undercover Baltimore County detective downloaded a video depicting child pornography from an internet file made available by Kerfoot from his Dundalk home. Law enforcement officers executed a search warrant on June 27, 2012 at his home and seized computers and digital media containing 19 videos and 80 images of child pornography that Kerfoot had received from the internet.
Officers also seized a video he had produced of a 12 year old girl whom he had coerced to engage in sexually explicit conduct with him on at least five occasions.
As part of his plea agreement, Kerfoot 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).
Kerfoot and the government have agreed that if the Court accepts the plea agreement, Kerfoot will be sentenced to between 25 and 30 years in prison followed by a lifetime of supervised release U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 7, 2013 at 2 p.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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, 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 Judson T. Mihok, who prosecuted the case.
Bgf Leader Tavon White Pleads Guilty to A Racketeering ConspiracyRead the Press Release
Ran the Operations of the BGF Gang Inside Baltimore Correctional Facilities
Baltimore, Maryland - Tavon White, a/k/a Bulldog and Tay, age 36, of Baltimore, Maryland pleaded guilty today to a racketeering conspiracy for running operations of the Black Guerilla Family (BGF) gang inside several correctional facilities.
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; Secretary Gary D. Maynard 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 Baltimore City Detention Center (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 his plea agreement, White has been a member of the BGF since 2000 and was in in pretrial custody at BCDC from 2009 to 2013. He became the lieutenant commander of the BGF at BCDC and then the commander in 2011. Throughout his years at BCDC, White was involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (CO’s), who received payments, gifts or a share of the profits. According to the plea agreement, White and his 24 co-defendants, including 13 correctional officers, participated in the smuggling enterprise and White also knew many other CO’s involved in contraband trafficking and sexual relations with inmates. White admitted that he was personally involved in sexual relationships with and impregnated four CO’s. Fellow BGF inmates and co-defendants also directed smuggling and often worked in concert with White. Outside the prison facility, White and his closest BGF allies frequently used other people, including several co-defendants, to obtain contraband, hold it or deliver it to correctional officers for smuggling.White faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for February 20, 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 and Baltimore City Assistant State’s Attorneys Kevin Wilson and Katie O’Hara who prosecuted White’s state case. 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.Suitland Pcp Dealer Sentenced to 12 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Shareef Muhammad, age 34, of Suitland, Maryland, today to 12 years in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute phencyclidine (PCP), crack cocaine and heroin.
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 Stephen E. Vogt of the Federal Bureau of Investigation; Chief Cathy L. Lanier of the Metropolitan Police Department; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Muhammad=s guilty plea, from at least June 2010 through February 2012, he was a part of a drug trafficking conspiracy led by Samuel Braxton and based in and around Temple Hills, Maryland. Braxton regularly received multi-ounce to quarter-gallon quantities of PCP as well as heroin, crack and powder cocaine from his sources of supply. Braxton sold the PCP, heroin, and crack to Muhammad and other drug customers in the Washington, D.C. metropolitan area, including Prince George’s County.
In August 2011, law enforcement made two purchases of PCP from co-conspirator Cortez Winston, totaling about 16 ounces of PCP. Muhammad had supplied Winston with the PCP, which he had obtained from Braxton. On September 9, 2011, law enforcement arrested Muhammad in southeast Washington, D.C. and seized from Muhammad’s vehicle approximately 31 ounces of PCP which he had obtained from Braxton.
Over the course of the conspiracy Muhammad was responsible for the distribution of at least three kilograms of PCP, 28 grams of crack cocaine and 100 grams of heroin.
Judge Titus also found that Muhammad attempted to obstruct justice. According to Muhammad’s plea agreement, on August 3, 2012, while he was in prison, Muhammad mailed a letter to an associate, instructing that person to bring a second enclosed letter to another individual. Muhammad instructed that the second individual should deliver the second letter to Muhammad’s co-defendant, have Muhammad’s co-defendant re-write the letter, and have it notarized. The second letter appeared to have been drafted by Muhammad and had the co-defendant denying that he/she had ever obtained drugs from or discussed drugs with Shareef Muhammad.
A total of 15 members of the conspiracy have been convicted, including Samuel Braxton, age 44, of Temple Hills, Maryland; Mac “Easy” Holland, age 40, of Upper Marlboro, Maryland; and Norman Lee, Jr., age 36, of Washington, D.C., who were sentenced to 27 years in prison, 15 years in prison and 188 months in prison, respectively. Cortez Winston, age 22, of Suitland, Maryland, also pleaded guilty and is scheduled to be sentenced on October 21, 2013.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Metropolitan Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule, Steven E. Swaney, and Arun Rao, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Drug Dealing Brothers Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced brothers Harold Alexander Byrd, age 26, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 34, of Owings Mills, Maryland, today each 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; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; and Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police.
According to the Byrds= plea agreements, search warrants executed on April 22, 2013, recovered over five kilograms of cocaine from each brother’s home, with a street value of approximately $150,000. Law enforcement recovered three handguns, one AK-47 (semi-automatic), and four sets of body armor from Harold Byrd’s residence. The brothers admitted they were co-conspirators and Joseph Byrd frequented his brother’s home and was aware that the firearms were stored there. Seventy-three black plastic containers used to conceal large quantities of marijuana during shipment from Arizona to Maryland were also recovered from Harold’s home. Both brothers also had fictitious drivers’ licenses in various names but bearing their photographs. On the same day, approximately 500 pounds of marijuana was seized from a third location in Baltimore, where both brothers were also arrested.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department and the Maryland Transportation Authority Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted the case.
Jose Morales Sentenced to over 21 Years in Prison for Heroin and Marijuana Distribution ConspiraciesRead the Press Release
Attempted to Smuggle Heroin Into Prison and Run a Marijuana
Conspiracy From Prison
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Jose Joaquin Morales, age 37, of Baltimore, Maryland, today to 262 months in prison followed by six years of supervised release for conspiring to distribute heroin and marijuana while he was in prison. Judge Titus enhanced Morales’ sentence upon finding that Morales was a career offender, that he threatened his co-defendant, and that he used his minor child to help conceal the heroin smuggling. Judge Titus also ordered the sentence imposed today be consecutive to the 262 month federal sentence Morales is currently serving.
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.
“This investigation by DEA utilized a myriad of investigative techniques in order to expose Morales' ways of smuggling drugs into prison. This case illustrates DEA's mission to take down drug traffickers anywhere, even in prison,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “As a repeat offender Morales will now grow very old in prison,” added Tuggle.
According to court documents and statements in court, Morales was sentenced in the U.S. District Court in the Southern District of Texas to 262 months in prison for possession with intent to distribute five kilograms or more of cocaine. The federal Bureau of Prisons transferred Morales to the U.S. Penitentiary in Canaan, Pennsylvania to serve his sentence. Morales admitted that he was part of two conspiracies – one to bring heroin into the prison, and a second to continue to direct his marijuana trafficking outside the prison using his contacts in Maryland and Texas.
Morales enlisted the help of female family members or women with whom he’d had a romantic relationship to assist in the drug distribution. Morales contacted the women, providing them with a contact from whom they could obtain the heroin. He described to each woman how to package the heroin in balloons and that when the woman arrived at the prison, they would exchange the heroin by kissing, transferring the heroin from the woman’s mouth to Morales’.
For example, beginning in April 2010, Morales called co-defendant Terry Sadler to arrange for her to transport heroin into the prison facility. Sadler had a long time romantic relationship with Morales and they had a child together. Morales provided Sadler with a drug contact in Baltimore from whom Sadler could obtain heroin. After obtaining the heroin, Sadler visited Morales in prison and distributed the heroin to him by kissing him and transferring the heroin packages from her mouth to his. In September 2010, Morales and Sadler discussed bringing in a second package of heroin and Morales put Sadler in touch with his contacts in Baltimore to obtain heroin. Later, Morales told Sadler to bring their child when she came to visit him on September 24th, because it would be less likely for prison personnel to question the visit. On September 23, 2010, DEA agents executed a search warrant at Sadler’s home and recovered the heroin that Sadler had obtained for Morales, as well as balloons that Morales had told Sadler to use to package the heroin.
Morales directed another woman to have telephone conversations with his marijuana source, who was located in Texas. Morales intended for the marijuana to be mailed from Texas to Maryland. In fact, the DEA intercepted a package that had been mailed from Texas to Maryland, and was found to contain over five pounds of marijuana. During a meeting on September 17, 2010, Morales was overheard by law enforcement discussing the marijuana conspiracy with this woman and requesting that the woman also smuggle heroin into the prison like Terry Sadler was doing.
Terry Sadler, age 37, of Hanover, Maryland, pleaded guilty to her role in the scheme and was sentenced to 18 months in prison.
Morales is also charged in a separate case with using a phone in the commission of a murder for hire and is scheduled to go to trial on that charge on September 24, 2013.
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.
Essex Man Pleads Guilty to Producing Child PornographyRead the Press Release
Baltimore, Maryland – Robert Marzola, age 31, of Essex, Maryland, pleaded guilty today to producing child pornography.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, between December 2011 and July 2012, Marzola sexually abused a minor male at his home to produce images of himself and the minor engaged in sexually explicit conduct. Marzola saved the images on his laptop. Marzola told the boy not to tell anyone about their conduct, which Marzola described to the boy as a game.
In June 2012, Baltimore County police accessed a peer to peer network and saw that Marzola had files containing child pornography available for download. Police executed a search warrant at Marzola’s residence on July 19, 2012 and seized a camera, desk top computer, laptop computer and an SD card. The images and videos that Marzola had previously produced of the boy were found on his laptop, along with 18 additional videos of children engaged in sexual conduct.
As part of his plea agreement, Marzola 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).
Marzola faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 in prison followed by up to lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 7, 2013 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended the Baltimore HSI, 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 Paul Budlow, who prosecuted the case.
Baltimore Resident Convicted of Filing Claims for over $23 Million in Fraudulent Tax Refunds, Alternative Fuel Credits and Refunds, and for A Scheme to Defraud Credit UnionsRead the Press Release
IRS Issued More Than $12 Million in “Refunds”
Baltimore, Maryland - A federal jury has convicted Makushamari Gozo, age 40, a native of Zimbabwe residing in Baltimore, Maryland, on 23 counts that he filed claims for more than $23 million in fraudulent alternative fuel tax credits and refunds and personal tax refunds, as well as that he engaged in a scheme to fraudulently obtain more than $3 million in loans from credit unions. The verdict was returned late on July 31, 2013.
The guilty verdict 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.
“The evidence showed that Makushamari Gozo received over $370,000 in fraudulent federal tax refunds and caused the IRS to issue checks for more than $12 million in tax credits and refunds for alternative fuel that he falsely claimed his sham companies had purchased,” said U.S. Attorney Rod J. Rosenstein. “At the same time, Mr. Gozo also attempted to obtain over $3 million in fraudulent loans from credit unions.”
“Fraud schemes cause tremendous financial damage to everyone, and the American taxpayer is the real victim when the IRS is targeted by fraudsters,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Mr Gozo’s scheme to defraud the IRS was an attack on our nation’s tax system, but through the efforts of IRS Criminal Investigation and the United States Attorney’s Office for the District of Maryland he was brought to justice and convicted by a jury of his peers. IRS Criminal Investigation in partnership with its law enforcement partners will continue to pursue the criminals who commit these crimes and steal from the U.S. Treasury.”
According to information presented at his one week trial, beginning in 2010, Gozo used several entities he controlled to file fraudulent claims for tax refunds. Specifically, Gozo filed individual income tax returns falsely claiming that for tax years 2007 through 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 tax years 2007 through 2009, which entitled Gozo to more than $76,000 in tax refunds. According to evidence at trial, between October 31, 2011 and 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.
In addition, the evidence showed that between July 2010 and September 2010, Gozo engaged in a scheme to defraud several credit unions to obtain fraudulent automobile and business loans. Specifically, Gozo submitted four loan applications to the credit unions for the purchase of luxury automobiles that Gozo never actually bought. On the applications, Gozo made materially false statements about his income and employment, in order to make himself appear like a successful businessman and to persuade the credit unions to approve the loan applications. In support of his loan applications, Gozo presented to the credit unions: the same fraudulent W-2 forms that he had submitted to the IRS with his Forms 1040 for tax years 2007, 2008, and 2009; fraudulent pay stubs, which falsely claimed that Gozo made substantial income from one of his businesses; fraudulent “Used Vehicle Buyers Orders” which falsely claimed that Gozo had contracted to purchase the luxury automobiles included on the loan applications; and fraudulent verifications of insurance coverage on the luxury automobiles referenced on the loan applications.
According to the trial testimony, Gozo also submitted a fraudulent loan application for an $3 million business loan in the name of another one of his sham companies. On the application, Gozo made fraudulent statements about the financial and business affairs of the company in order to make it appear financially successful and to persuade the credit union to approve the credit line application. In support of the business loan application, Gozo submitted several false corporate tax returns claiming that the company controlled millions of dollars in assets.
Gozo faces a maximum sentence of five years in prison on each of the 18 counts of making a false claim; and 30 years in prison on each of the five counts of bank fraud. U.S. District Judge Catherine C. Blake has scheduled sentencing for October 25, 2013 at 10:30 a.m. Gozo has been detained since his arrest on July 20, 2012.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I Sharfstein and Peter M. Nothstein, who are prosecuting the case.