District of Maryland
Press releases recorded for this federal judicial district.
Heroin Dealer Sentenced to 11 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Awal Mohammed, age 38, of Greenbelt, Maryland, today to 136 months in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief James W. Johnson of the Baltimore County Police Department.
According to evidence presented at his week-long trial, on December 27, 2011, Maryland State Police stopped a car in which Mohammed was the front seat passenger and seized at least 971 grams of heroin from the glove compartment. Mohammed had previously used a courier from Ghana to bring the heroin into the United States and was en route to sell the heroin to a buyer in Baltimore. Mohammed had previously sold heroin brought in from Ghana to other dealers and customers. It was foreseeable to Mohammed that the conspiracy would distribute or possess with the intent to distribute at least 1,000 grams of heroin.
United States Attorney Rod J. Rosenstein commended the USCIS, DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kenneth S. Clark, who prosecuted the case.
Former State Social Service Supervisor Pleads Guilty in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – Michael Bowman, age 61, of Baltimore, pleaded guilty yesterday to wire fraud in connection with a scheme to use personal identifying information of individual bank accounts holders to defraud banks.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office and Inspector General William E. Johnson, Jr. of the Maryland Department of Human Resources.According to his plea agreement, Bowman was a supervisor for the Maryland Department of Social Services. In September 2011, Bowman’s work email account was flagged for suspicious activity. An email contained an attachment which listed numerous names, bank account numbers and other personal identifying information. Bowman admitted to law enforcement agents that he was lonely and had sought companionship online. Bowman met a man named “Steve” on a networking site in October 2010, who claimed to live in London, to be recently single and to be interested in Bowman. Steve promised to move in with Bowman in Baltimore if Bowman helped provide him with money, including funds to purportedly repair a house that Steve’s father left him upon his father’s death.
During the fraud scheme, which extended from October 2010 to September 2011, Steve also introduced Bowman to his friend “David.” Bowman never met Steve or David in person. Bowman was sent account numbers and personal identifying information of bank account holders which Bowman used to impersonate the individual victims. Once Bowman had gained access to the individual victim’s accounts, Bowman obtained account balance information, allowing the co-conspirators to link the individual victims’ account to accounts Bowman opened at banks. The co-conspirators then initiated wire transfers from the victim accounts, through Bowman’s accounts, to third party accounts controlled by Steve, David and others.
Over the course of the fraud scheme, Bowman accessed at least 88 individual accounts, resulting in an intended loss totaling $513,942.96. The only actual loss to a bank from the scheme was in the amount of $35,283.70.
Bowman also wired approximately $10,000 of his own money to Steve and David in small increments. He also participated in a scheme to traffic in counterfeit MoneyGram money orders, whereby he purchased a $1 MoneyGram money order at a grocery store, scanned it and emailed the scanned image to David. Bowman then received approximately 100 forged MoneyGram money orders in the mail, all in the amount of $997. At David’s request, Bowman mailed some of those money orders to a co-conspirator. MoneyGram suffered no actual loss from the scheme.
Bowman faces a maximum sentence of 20 years in prison and a fine of $250,000. Bowman has agreed to pay restitution of $35,283.70. U.S. District Judge James K. Bredar scheduled his sentencing for September 26, 2013, at 9:30 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Maryland Department of Human Resources - OIG for their work in the investigation. Mr. Rosenstein praised Special Assistant U.S. Attorney Paul K. Nitze of the Social Security Administration, who is prosecuting the case.
Serial Fraudster Sentenced to 3 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Nicole Jenise Stevenson, age 31, of Baltimore, today to three years in prison, followed by nine months of home detention as part of five years of supervised release, for bank fraud and aggravated identity theft. Judge Bennett also sentenced Stevenson to 18 months in prison for violating the supervised release from her previous fraud conviction, to be served concurrently with the three year sentence imposed today. Judge Bennett ordered Stevenson to pay restitution of $ 24,944.42.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office; William Henry, Chief of the U.S. Probation Office; Chief James W. Johnson of the Baltimore County Police Department; and U.S. Marshal Johnny Hughes.
According to her plea agreement, on August 17, 2007, Judge Bennett sentenced Stevenson to two years in prison, followed by three years of supervised release, for bank fraud and aggravated identity theft. On July 24, 2009, Stevenson resumed her period of supervised release after an initial revocation. Along with standard conditions of supervision, such as the prohibition against violating any federal, state or local laws, Stevenson was prohibited from opening any new accounts without the approval of her probation officer.
On or about June 29, 2009, Stevenson opened a personal checking account at Woodforest National Bank at the Wal-Mart in Cockeysville, Maryland, where she was employed. The account was opened without any money being deposited, based upon her employment at the Wal-Mart. From July through September 2009, Stevenson wrote checks on this account, although she had never deposited any money into it. Stevenson opened or re-opened additional accounts at two other banks, obtaining and writing checks on those accounts, even though she never made any legitimate deposits in those accounts. Stevenson did not have the approval of her probation officer to open any of these accounts.
On October 20, 2010, Stevenson had her initial appearance on the indictment returned by the grand jury in this case as well as on the on the violation of her supervised release. Stevenson was released on the same conditions, with her probation officer handling her supervision.
On March 22, 2011, Stevenson opened a new checking account in the name of “Nicole Taylor” using the social security number of “HH,” all without the knowledge or consent of her supervising probation officer, or “HH”. After making an initial deposit of $350.00, Stevenson immediately withdrew $300, ordered checks on the account and proceeded to write over $2,000 in checks on the account. This account was closed by the bank on July 5, 2011, with an overdraft amount of $2,260. During this same time period Stevenson opened a credit account with Shaws without the knowledge and approval of her probation officer. That account was charged off in July, 2011, with an outstanding balance of $2072.
On July 8, 2011, Stevenson’s probation officer made an unannounced home visit and left a letter instructing her to report in person at the probation office on July 12, 2011, for which she failed to appear. At a subsequent meeting on August 1, 2011, Stevenson denied opening any new accounts when she was questioned by her probation officer. On August 8, 2011, the probation officer attempted another home visit and left a letter instructing Stevenson to appear for a meeting at the probation office on August 22, 2011. Stevenson did not appear for that meeting and an arrest warrant was issued for Stevenson on September 12, 2011. A trial date was set for October 24, 2011. When Stevenson could not be located on the arrest warrant and did not respond to either her supervising officer or her attorney, a new trial date was scheduled - and subsequently rescheduled on several occasions - when Stevenson could not be located and did not respond to her supervising officer or her attorney.
On November 4, 2011, and again on July 19, 2012, Stevenson used the name “Tiffany Lawson”, and the date of birth and social security account number of “TR,” to apply for an apartment. She provided a counterfeit Maryland driver’s license with her picture, the name “Tiffany Lawson,” and the date of birth and social security number of “TR.” On February 27, 2013, Stevenson was located on the outstanding arrest warrant, residing in yet another apartment.
During her activities from July 2009 through February 2013, Stevenson obtained goods, services and extensions of credit of approximately$26,288.70, and caused losses to or used the identities of between 10 and 50 financial institutions, businesses and individuals.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service, U.S. Probation Office, Baltimore County Police Department and U.S. Marshals for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera Fine, who is prosecuting the case.
Hagerstown Pharmacist Pleads Guilty to Health Care Fraud for Improperly Billing Medicare and MedicaidRead the Press Release
Baltimore, Maryland - David Russo, age 62, of Hagerstown, Maryland pleaded guilty today to 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.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.
“As prescription pharmaceutical abuse grows, so too does the resolve of DEA to investigate and uncover the illicit activities which fuel this problem,” stated Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration, Washington Field Division.
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.
As part of his plea agreement, Russo will be required to pay restitution in the full amount of the loss, and to forfeit the $39,000 in cash seized during the search of the pharmacy in 2010.
Russo faces a maximum sentence of 10 years in prison, although Russo and government have agreed to jointly recommend a sentence of 30 months in prison. U.S. District Judge George L. Russell III has scheduled sentencing for August 22, 2013 at 2:00 p.m.
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 are prosecuting the case.
Two Maryland Women Indicted in Fraudulent Tax Refund SchemeRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Sheila Anderson-Cloude, a/k/a Sheila Anderson, age 33, of Nottingham, Maryland, and Tonia Patrice Lawson, age 42, of Baltimore, on charges related to a conspiracy to obtain fraudulent tax refunds, sometimes using the personal information of other individuals, without their knowledge or permission. The indictment was returned on June 11, 2013.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington Regional Office.
“The IRS continues to work closely with the tax preparation industry to protect the American public,” said Special Agent in Charge Thomas J. Kelly of IRS - Criminal Investigation, Washington, D.C. Field Office. “Return preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating cases just like these. Taxpayers should be very selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information.”
The 27-count indictment alleges that from February 8, 2010 through February 20, 2012, Anderson-Cloude and Lawson conspired to enrich themselves by filing and causing others to file false federal income tax returns in order to obtain tax refunds to which they were not entitled.
The indictment charges that Anderson-Cloude obtained the identifying information of individuals, including their names, dates of birth and social security numbers, in order to file fraudulent tax returns. According to the indictment, Anderson-Cloude then prepared and filed or caused to be filed at least 13 false federal tax returns, all of which fraudulently claimed refunds in amounts between $4,800 and $8,907. As a result of the filing of these false tax returns, the indictment alleges that Anderson-Cloude received seven tax refunds to which she was not entitled, in amounts ranging from $1,000 to $5,372, and Lawson received four fraudulent tax refunds, in amounts ranging from $2,000 to $6,875. According to the indictment, Lawson made payments to some of the taxpayers, using funds obtained from the fraudulently tax refunds. Finally, the indictment alleges that when questioned by a Special Agent with IRS Criminal Investigations, Anderson-Cloude made false statements by claiming that she never kept more than $500 for preparing a return and that she never made up numbers to put on the tax returns she prepared.
The defendants face a maximum sentence of 10 years in prison for conspiring to defraud the government by claiming false tax refunds and for theft of public money. Anderson-Cloude also faces a maximum of five years in prison for each of 12 counts of making a false claim for a tax refund and for making a false statement. Anderson-Cloude also faces two years in prison, consecutive to any other sentence, for aggravated identity theft. The defendants have an initial appearance scheduled for 3:45 p.m. today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised IRS Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin, who is prosecuting the case.
Six Defendants Indicted in Conspiracy Involving Mortgage Fraud Losses of over $1 MillionRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted six defendants in a mortgage fraud conspiracy in which lenders provided over $3.5 million for fraudulently obtained loans:
Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 44, of Severn, Maryland;
Flavia Makundi, age 41, of Severn, Maryland;
Carmen Johnson, age 46, of Gambrills, Maryland;
Mokorya Cosmas Wambura, age 40, of Mount Ranier, Maryland;
Cane Mwihava, age 42, of Bowie, Maryland; and
Annika Boas, age 36, of Mount Ranier, Maryland.
The indictment was returned on June 10, 2013, and the last defendant, Wambura, was arrested today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Inspector General David A. Montoya, U.S. Department of Housing and Urban Development; Inspector General Steve A. Linick of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; Brian Crane, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) .
According to the 21 count indictment, Tibakweitira was a real estate agent for Century 21 Advantage Realty and its successor, Elite Real Estate Group. Tibakweitira recruited his wife Makundi, and others, including Wambura, Mwihava and Boas, to act as straw purchasers of homes. Johnson owned CJ Lending and Able Estate & Company which provided credit repair services.
The indictment alleges that from March 2007 to November 2008, the defendants sought mortgages for properties at values in excess of the properties’ actual market values. Tibakweitira allegedly procured inflated appraisals and created false addendums to the sales contracts requiring large amounts of loan proceeds to be disbursed for renovations or repairs. The defendants allegedly used stolen or false identities, false documents – including W-2 forms, earnings statements, and bank statements – and false credit information to induce lenders to provide residential mortgage loans to the straw buyers. Large amounts of the proceeds of the fraudulently obtained loans were allegedly disbursed from escrow accounts to Destiny Property Management, LLC and Destiny Property Management Company, which were shell companies owned by Tibakweitira, for repairs and renovations that were never made. These funds were in turn paid to the defendants. The defendants did not make or stopped making the mortgage payments and allowed the properties, including 10 properties located in Severna Park, Baltimore, Hyattsville and Silver Spring, to go into foreclosure.
The indictment alleges that as a result of the conspiracy, lenders provided over $3.5 million for fraudulently obtained loans, which resulted in losses of over $1 million to the lenders, the Federal Housing Administration which insured some of the loans, and the Federal National Mortgage Corporation (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), who purchased some of the loans in the secondary mortgage market.
All of the defendants face a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and wire fraud; and a mandatory minimum of two years for aggravated identity theft consecutive to any other sentence. The defendants have had their initial appearances in federal court in Greenbelt. Tibakweitira, Makundi and Boas are currently detained and Johnson and Mwihava were released. A hearing is scheduled later today for Wambura regarding his detention.
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 Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage‑Fraud/index.html.
Today's announcement is part of efforts underway by President Obama=s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys= offices and state and local partners, it=s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised HUD-OIG, FHFA-OIG, Treasury OIG,
U.S. Secret Service, IRS-Criminal Investigation and Baltimore HSI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin DiGregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who are prosecuting the case.
Upper Marlboro Man Pleads Guilty to TransportingRead the Press Release
Case Prosecuted by Maryland’s Child Exploitation Task Force;
Defendant Faces Minimum Federal Sentence of 10 Years For Taking Teenager to Sex Parties
Greenbelt, Maryland – Troy Walker, a/k/a ‘Caveman,” age 48, of Upper Marlboro, Maryland, pleaded guilty today to transporting a minor with the intent to engage in prostitution.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“Maryland’s Child Exploitation Task Force investigates many cases involving juvenile prostitutes and pursues federal prosecution because of the lengthy sentences,” said U.S. Attorney Rod J. Rosenstein. “Anyone who transports a juvenile under the age of 18 to engage in prostitution faces a mandatory minimum sentence of ten years in federal prison.”
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.
As part of his plea agreement, 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).
Walker faces a mandatory minimum sentence of 10 years in prison, and a maximum of life in prison, followed by up to lifetime supervised release. U.S. District Judge Peter J. Messitte scheduled sentencing for August 14, 2013.
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 www.justice.gov/usao/md/Human‑Trafficking/index.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 are prosecuting the case.
Eight Indicted in Connection with A Drug Organization Allegedly Operating in Annapolis and Other Areas of Anne Arundel CountyRead the Press Release
22 Additional Defendants Charged in State Court on Drug Trafficking Charges
Baltimore, Maryland - A federal grand jury has indicted eight individuals on charges related to the investigation of a drug distribution organization in Annapolis and other areas of Anne Arundel County since at least January 2012. The indictments were returned on June 11, 2013, and unsealed today upon the arrest of the defendants.
ATF led at least 100 law enforcement officers who executed federal search warrants at 10 locations and seven vehicles today, including residences and vehicles belonging to some of the defendants. As part of this investigation, law enforcement also executed arrest warrants today against 22 additional defendants charged in state court in Anne Arundel County with various drug trafficking offenses.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Acting Chief Lt. Colonel Pamela R. Davis; Commissioner Anthony W. Batts of the Baltimore Police Department; and Anne Arundel County State’s Attorney Anne C. Leitess.
Special Agent in Charge Steven L. Gerido of the ATF - Baltimore Field Division. “I am confident that the execution of multiple arrest and search warrants by ATF and its law enforcement partners has made a significant impact on crime in Anne Arundel County, Maryland, and specifically the city of Annapolis. ATF continues to work with its federal, state, and local law enforcement partners in order to bring violent criminals to justice.”
Annapolis Police Chief Michael Pristoop said, “We, as a police department and a community, will not tolerate the illegal sale of drugs or guns within our City. This investigation, the indictments, and the service of the arrest warrants is another outstanding example of partners working together to reduce crime in Annapolis. Removing these offenders from our streets was a top priority and certainly a step on the right direction.”
“I want to thank all of the agencies involved for their partnerships and collaborations to bring this case to closure,” said Anne Arundel County Acting Chief of Police Lieutenant Colonel Pamela R. Davis.
“A disproportionate amount of violent crimes with a connection to illegal drugs is often committed by a small percentage of individuals. The community can immediately take solace in knowing that these individuals have been removed from their neighborhoods.”
The following defendants are charged with conspiracy to distribute and to possess with intent to distribute heroin and crack cocaine:
Ernest Lee Harmon, a/k/a “E” and “Memphis,” age 36, of Baltimore;
Dontaye Lee Harmon, a/k/a “Taye,” age 39, of Baltimore;
Damian Leron Brown, a/k/a “D,” “DB,” and “DBrown,” age 37, of Annapolis; and
Jessica Knode, age 27, of Crofton, Maryland.Two defendants charged in this indictment are still being sought and their names have not been unsealed.
Ernest Lee Harmon and Dontaye Lee Harmon are also charged with distributing and possessing with intent to distribute crack cocaine. Ernest Lee Harmon and Damian Leron Brown are charged with distributing and possessing with intent to distribute heroin.
The defendants face a minimum of 10 years in prison and a maximum of life in prison for the drug conspiracy. Dontaye Lee Harmon and Damian Brown also face a maximum of 20 years in prison for distribution and possession with intent to distribute crack cocaine or heroin. Ernest Lee Harmon, faces a minimum of five years and a maximum of 40 years in prison for distribution and possession with intent to distribute crack cocaine and heroin.
In related indictments, Corrie Flannigan, a/k/a “Flame,” age 19, of Annapolis is charged with possession of a firearm by a felon; and Jimolo Coates, a/k/a “Marlow,” age 20, also of Annapolis is charged with possession of a firearm and ammunition by a felon.
Flannigan and Coates each face a maximum of 10 years in prison for possession of a firearm and/or ammunition by a previously convicted felon.
All of the defendants are expected to have an initial appearance in U.S. District Court in Baltimore 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.
United States Attorney Rod J. Rosenstein thanked ATF, the Annapolis Police Department, Anne Arundel County Police Department, Baltimore Police Department and the Anne Arundel County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorneys Kenneth S. Clark, Scott Lemmon, and Joshua Kaul, who are prosecuting the case.
Eight Indicted in Connection with A Drug Organization Allegedly Operating in Annapolis and Other Areas of Anne Arundel CountyRead the Press Release
22 Additional Defendants Charged in State Court on Drug Trafficking Charges
Baltimore, Maryland - A federal grand jury has indicted eight individuals on charges related to the investigation of a drug distribution organization in Annapolis and other areas of Anne Arundel County since at least January 2012. The indictments were returned on June 11, 2013, and unsealed today upon the arrest of the defendants.
ATF led at least 100 law enforcement officers who executed federal search warrants at 10 locations and seven vehicles today, including residences and vehicles belonging to some of the defendants. As part of this investigation, law enforcement also executed arrest warrants today against 22 additional defendants charged in state court in Anne Arundel County with various drug trafficking offenses.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Acting Chief Lt. Colonel Pamela R. Davis; Commissioner Anthony W. Batts of the Baltimore Police Department; and Anne Arundel County State’s Attorney Anne C. Leitess.
Special Agent in Charge Steven L. Gerido of the ATF - Baltimore Field Division. “I am confident that the execution of multiple arrest and search warrants by ATF and its law enforcement partners has made a significant impact on crime in Anne Arundel County, Maryland, and specifically the city of Annapolis. ATF continues to work with its federal, state, and local law enforcement partners in order to bring violent criminals to justice.”
Annapolis Police Chief Michael Pristoop said, “We, as a police department and a community, will not tolerate the illegal sale of drugs or guns within our City. This investigation, the indictments, and the service of the arrest warrants is another outstanding example of partners working together to reduce crime in Annapolis. Removing these offenders from our streets was a top priority and certainly a step on the right direction.”
“I want to thank all of the agencies involved for their partnerships and collaborations to bring this case to closure,” said Anne Arundel County Acting Chief of Police Lieutenant Colonel Pamela R. Davis.
“A disproportionate amount of violent crimes with a connection to illegal drugs is often committed by a small percentage of individuals. The community can immediately take solace in knowing that these individuals have been removed from their neighborhoods.”
The following defendants are charged with conspiracy to distribute and to possess with intent to distribute heroin and crack cocaine:
Ernest Lee Harmon, a/k/a “E” and “Memphis,” age 36, of Baltimore;
Dontaye Lee Harmon, a/k/a “Taye,” age 39, of Baltimore;
Damian Leron Brown, a/k/a “D,” “DB,” and “DBrown,” age 37, of Annapolis; and
Jessica Knode, age 27, of Crofton, Maryland.Two defendants charged in this indictment are still being sought and their names have not been unsealed.
Ernest Lee Harmon and Dontaye Lee Harmon are also charged with distributing and possessing with intent to distribute crack cocaine. Ernest Lee Harmon and Damian Leron Brown are charged with distributing and possessing with intent to distribute heroin.
The defendants face a minimum of 10 years in prison and a maximum of life in prison for the drug conspiracy. Dontaye Lee Harmon and Damian Brown also face a maximum of 20 years in prison for distribution and possession with intent to distribute crack cocaine or heroin. Ernest Lee Harmon, faces a minimum of five years and a maximum of 40 years in prison for distribution and possession with intent to distribute crack cocaine and heroin.
In related indictments, Corrie Flannigan, a/k/a “Flame,” age 19, of Annapolis is charged with possession of a firearm by a felon; and Jimolo Coates, a/k/a “Marlow,” age 20, also of Annapolis is charged with possession of a firearm and ammunition by a felon.
Flannigan and Coates each face a maximum of 10 years in prison for possession of a firearm and/or ammunition by a previously convicted felon.
All of the defendants are expected to have an initial appearance in U.S. District Court in Baltimore 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.
United States Attorney Rod J. Rosenstein thanked ATF, the Annapolis Police Department, Anne Arundel County Police Department, Baltimore Police Department and the Anne Arundel County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorneys Kenneth S. Clark, Scott Lemmon, and Joshua Kaul, who are prosecuting the case.
10 Defendants Charged in $3.6 Million Drug Trafficking RingRead the Press Release
Baltimore, Maryland - A federal grand jury today has indicted the following 10 defendants for conspiring to distribute cocaine and cocaine base in Baltimore:
Shawn Malone, a/k/a “Studder,” and “Snaps,” age 32, of Baltimore;
Howard McCray, a/k/a “Pooh,” age 33, of Baltimore;
Antoine Bolden, a/k/a “Demo,” age 36, of Baltimore and Severna Park, Maryland;
Stanley Malone, a/k/a “Man-Man,” and “Rambo,” age 32, of Brooklyn, Maryland;
Travis Gaines, a/k/a “Jim,”age 33, of Baltimore;
Melvina Banks, a/k/a “Bebe,” age 52, of Baltimore;
Luis Reyes, a/k/a “Louis Reyes,” and “Rico,” age 39, of Dundalk, Maryland;
Donte Chase, a/k/a “Turbo,” age 34, of Baltimore;
Karl McDonald, a/k/a “Lil Boo,” age 29, of Columbia, Maryland; and
Latoya Mack, age 25.
Mack is also charged with distributing cocaine.
The indictment 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; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
"The indictment of 10 defendants today emphasizes the proactive work that the DEA, the Baltimore Police Operational Intelligence Section (OIS), the Baltimore City States Attorney's Office and the U.S. Attorney’s Office undertake to combat drug distribution in Baltimore," stated Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration, Washington Field Division. "By hitting a drug organization where it hurts most by seizing drug proceeds, in this case seeking $3.6 million in forfeiture, we are crippling its ability to ever return," added Colder.
The two count indictment alleges that from at least 2010 until June 6, 2013 when the defendants were arrested, the defendants conspired to distribute cocaine and cocaine base.
Court documents allege that Shawn Malone uses females to bring cocaine, purchased from sources in Texas and Arizona, on buses to Baltimore for distribution. According to court documents, Bolden, a wholesale supplier of cocaine, with assistance from Stanley Malone and Travis Gaines, sells the drugs to Reyes, Chase and others. McDonald operates a “street shop” in the area of West North Avenue and Lennox Street in Baltimore for the organization. McCray, who works at the University of Maryland hospital, was overheard during the investigation arranging for the sale of drugs and obtaining a gun.
According to court documents, Shawn Malone and other members of the conspiracy allegedly operate a limited liability corporation known as SJM (the initials of Shawn Joseph Malone) LLC in order to buy rental properties under the guise of appearing to have legitimate income. The drug organization is alleged to have purchased properties, including 1911 Braddish Avenue and 2519 Fairmount Avenue, to either carry out drug distribution activities or launder drug proceeds.
The indictment seeks forfeiture of $3.6 million, based on 90 kilograms of cocaine at a minimum value of $40,000 per kilogram over the course of the conspiracy, as well as five Baltimore properties.
The defendants face a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for the drug conspiracy. Mack also faces 40 years in prison for distributing cocaine.
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, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James Wallner, who is prosecuting the case.
Ten Arrested in an Alleged Drug Distribution Conspiracy in Riverdale, Prince George’s CountyRead the Press Release
Greenbelt, Maryland – Nine federal defendants and a one state defendant were arrested today, on charges related to a conspiracy to distribute cocaine, crack cocaine and phencyclidine (PCP), in the Riverdale area of Prince George’s County, Maryland. More than 160 law enforcement officers, led by the Bureau of Alcohol, Tobacco, Firearms and Explosives, participated in the arrest of the 10 defendants and the execution of six search warrants. The two related federal indictments were returned on June 5, 2013, and unsealed today upon the arrest of the defendants.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
Special Agent in Charge Steven L. Gerido of the ATF - Baltimore Field Division said, “I am confident that ATF’s successful execution of ten arrest warrants and six search warrants made a significant impact on crime in Prince George’s County, Maryland and specifically the Riverdale community. ATF continues to work with its federal, state, and local law enforcement partners in order to bring violent criminals to justice.”
The six defendants arrested in the first indictment are charged with a conspiracy to distribute cocaine, crack cocaine and PCP in Riverdale from at least 2005 to the present. They are:
Don Juan Campbell, a/k/a “Flav,” “Flava Flav,” and “Flay,”age 32, of Laurel, Maryland;
Andre T. Lyons, a/k/a “Dre,” age 37, of Riverdale;
Michael C. McCree, a/k/a “Cuz,” and “Layhoo,” age 31, of Riverdale;
Lorenzo B. Jackson, a/k/a “B.J.,” age 32, of Riverdale;
Michael I. Waller, a/k/a “Butters,” and “Mike Mike,” age 22, of Beltsville; and
Marcus R. Moss, age 40, of Riverdale.
The indictment alleges that Campbell purchased large quantities of cocaine and PCP from sources in Maryland and elsewhere, which he distributed to other defendants and co-conspirators for further redistribution and sale. The indictment alleges that the conspirators controlled locations in and around Riverdale for the distribution of drugs and collected money owed to members of the conspiracy from drug transactions. The defendants allegedly obtained and utilized cellular telephones in the names of other individuals or businesses, to communicate with other members of the conspiracy without detection by law enforcement officers.
The defendants face a maximum sentence of life in prison.
In a related indictment three defendants were charged with conspiracy to distribute and possess with intent to distribute crack cocaine and PCP from May 2012 to June 2013. They are:
Glen Price, a/k/a “Mynds,” age 34, of Riverdale;
Iziah E. Ennis, a/k/a “Ike,” age 33, of Fairfax, Virginia; and
Kevin L. Dixon, a/k/a “Richie White Bread,” age 34, of Riverdale.
The defendants face a maximum sentence of 40 years in prison.
All the defendants had an initial appearance this afternoon in U.S. District Court in Greenbelt. All of the defendants were detained, except Dixon, who was released under the supervision of U.S. Pretrial Services. The remaining defendants will have detention hearings later this 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.
United States Attorney Rod J. Rosenstein praised ATF, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Steven E. Swaney, who is prosecuting the federal case.
Potomac Man Convicted of Conspiring to Illegally Provide Satellite Services to IranRead the Press Release
Greenbelt, Maryland - A federal jury has convicted Nader Modanlo, a/k/a Nader Modanlou, a/k/a Nader Modanlu, age 52, of Potomac, Maryland, a naturalized U.S. citizen born in Iran, of charges arising from a conspiracy to illegally provide satellite related services to Iran in violation of the International Emergency Economic Powers Act, money laundering and obstruction of bankruptcy proceedings. As a result of the conspiracy, an Iranian earth observation satellite equipped with a camera was launched into space from Russia on October 27, 2005. The launch was the first-ever Iranian satellite put into orbit.
The jury verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service, Mid-Atlantic Field Office.
“Nader Modanlo violated the law by helping Iran launch communications satellites,” said U.S. Attorney Rod J. Rosenstein. “The Iran Trade Embargo prohibits Americans from supplying goods, technology and services to Iran directly or indirectly.”
“This conviction is the result of a complex, decade long HSI investigation that spanned multiple countries and involved close partnership with the U.S. Attorney’s Office for the District of Maryland, the Defense Criminal Investigative Service and the Internal Revenue Service,” said HSI Special Agent in Charge in Baltimore William Winter. “This investigation shows that HSI special agents will tenaciously pursue those who attempt to illegally export sensitive technologies and threaten the security of the United States by willfully violating our customs laws.”
“The Defense Criminal Investigative Service (DCIS), the criminal investigative arm of the Office of the Inspector General, Department of Defense, is committed to pursuing cases involving the illegal transfer of critical U.S. Defense Department-related technologies throughout the world,” said Robert E. Craig, Jr., Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “Along with our law enforcement partners and as demonstrated in this case, DCIS is diligently pursuing individuals and companies that willingly break the law and unnecessarily place the safety of America's warfighters and all Americans at risk.”
“IRS Criminal Investigation is committed to following the money trail across the globe and will not be deterred by the use of front companies and sophisticated financial transactions that hide the real ownership of the proceeds of criminal activity,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today’s verdict is a reminder that IRS Criminal Investigation along with our domestic and international law enforcement partners will continue our vigilant pursuit of criminal conspiracies.”
The President of the United States issued an Executive Order in 1995 imposing a trade embargo against Iran, after finding that Iran’s policies and actions posed a threat to the national security of the United States. Under the embargo, the Department of the Treasury, through the Office of Foreign Assets Control, issued the Iranian Transactions Regulations, which prohibited the export, re-export, sale or supply, directly or indirectly, by a U.S. citizen, of goods, technology or services to Iran or the Government of Iran, without prior governmental authorization.
According to evidence presented at the six week trial, Modanlo was a mechanical engineer who received science and engineering degrees from George Washington University. Modanlo represented that he was an internationally-recognized expert on strategic policy and finances affecting the space-based telecommunications industry, and that he managed space and science programs for the Department of Defense, NASA and the industry.
Trial evidence showed that from January 2000 through November 27, 2007, Modanlo and others concocted a scheme to evade the Iran trade embargo to conceal Iranian involvement in prohibited activities and transactions. Beginning in 1992, Modanlo was the principal owner, chairman and president of Final Analysis, Inc. (FAI) in Maryland. Beginning in 1994, FAI contracted with POLYOT, an aerospace enterprise company owned by the government of the Russian Federation, to launch FAI telecommunications satellites. Between 1995 through 2000, FAI and POLYOT launched a satellite purchased by FAI, and designed, constructed and launched a second satellite, both from Plesetsk, Russia. Modanlo and other FAI personnel met with POLYOT officials as part of that relationship. As required by law, Modanlo obtained U.S. export licenses in order to export and launch the telecommunications satellites and other equipment from Russia.
In November 2001, Modanlo established New York Satellite Industries, LLC, (NYSI) after creditors filed a petition to place FAI into involuntary bankruptcy. NYSI purchased FAI’s assets and Modanlo served as chairman and managing member of NYSI, using his home address as NYSI’s business address.
Beginning in 2000, Modanlo brokered an agreement between POLYOT and Iran to construct and launch a satellite. Between the summer of 2001 and December 2001, Modanlo engaged in numerous meetings with POLYOT officials to broker Iran’s satellite program. In December 2001, several Iranian officials, including Sirous Naseri, a former Iranian Amabassador to Switzerland, went to Switzerland to express interest in “investing” in NYSI by interposing a Swiss company, because “the U.S. ha[d] sanctions in place against Iran,” and direct investment would therefore be “problematic.” Naseri, Reza Heidari, Mohammad Modares and Modanlo then went to Switzerland in April 2002 to work out the details of forming Prospect Telecom in order to conceal Iranian participation as an investor/lender in Modanlo’s satellite telecommunications activities. Between April and June 2002, Heidari, Mohammad Modares and Abdol Mehrdad established Prospect Telecom and opened a bank account in Switzerland in the name of Prospect Telecom.
Heidari, Modares, and Mehrdad then caused $10 million to be wired from Prospect Telecom’s bank account overseas to Modanlo’s NYSI account in Bowie, Maryland, in consideration for Modanlo’s assistance to Iran and the Iranians in brokering the satellite agreement with Russia, and for NYSI providing telecommunications services in support of that agreement. Modanlo had agreed that NYSI would assist in obtaining telecommunications service provider licenses for the owners of Prospect Telecom and for the benefit of the Islamic Republic of Iran.
In October 2005, as a result of the efforts of Modanlo and his conspirators, POLYOT launched Iran’s first-ever satellite, a remote sensing and telecommunications satellite from Russia.
From 2005 to 2007, Modanlo made false statements and concealed information about the creation and ownership of Prospect Telecom during bankruptcy proceedings, including that Modanlo and co-conspirators had arranged for the formation of Prospect telecom to conceal Iranian involvement.
Modanlo faces a maximum sentence of five years in prison for the conspiracy; 10 years in prison on each of two counts of violating the Iran Trade Embargo, 20 years on money laundering related to the transfer of the $10 million from Switzerland to the defendant’s NYSI bank account, 10 years for each of five subsequent money-laundering transactions, which disbursed most of the $10 million; and 20 years in prison for obstruction of a bankruptcy proceeding. The jury was unable to reach a verdict on one count of violating the Iran Trade Embargo. U.S. District Judge Peter J. Messitte scheduled sentencing for September 11, 2013. The government also seeks the forfeiture of $10 million, which is the proceeds of the offense.
The other defendants charged in the indictment, Hamid Malmirian, age 53; Reza Heidari, age 52; Mohammad Modares, age 44; Abdol Reza Mehrdad, age 43; and Sirous Naseri, age 55, all Iranian nationals, remain at large.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore, DCIS and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Stuart Berman, who are prosecuting the case.
Courier in Baltimore Heroin Distribution Ring Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Jasmine Veras-Rosario, age 35, of Bronx, New York, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge 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 Veras-Rosario’s 14 day jury trial, she was part of a heroin trafficking organization led by Danilo Garcia and Walter Powell, that supplied heroin to distributors in Maryland and elsewhere. The evidence showed that Jasmine Veras-Rosario was a courier who worked with her husband, Jan Carlos Veras-Rosario, to deliver heroin on behalf of Garcia in New York to Powell and another conspirator, Roy Lee Clay, in Baltimore. Evidence at trial showed that Jasmine Veras-Rosario traveled from New York to Baltimore by bus, transporting heroin to Baltimore and money representing heroin proceeds from Baltimore back to New York.
At trial, the jury saw video tapes of Jasmine Veras-Rosario going to a residence in West Baltimore where the heroin was delivered. In addition, the jury heard intercepted conversations between Veras-Rosario and Powell in Baltimore in which she discussed, in coded language, both the delivery of heroin and the money owed by Powell.
The jury found that Veras-Rosario was responsible for the distribution of at least one kilogram of heroin.
Roy Lee Clay, age 47, of Baltimore, was also convicted at trial and is scheduled to be sentenced on June 14, 2013 at 9:15 a.m. Jan Carlos Veras-Roasario, age 26, of Bronx, New York, pleaded guilty to his role in the conspiracy and is scheduled to be sentence on August 2, 2013, at 12:00 p.m.
Walter Powell, age 61, of Baltimore, Maryland,was previously sentenced to 121 months in prison for the heroin conspiracy. Co-conspirator Danilo Garcia, age 43, of Bronx, New York was 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.
Carjacker Exiled to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Dwayne Frazier, age 50, of Baltimore, to 12 years in prison, followed by three years of supervised release, for carjacking. The sentence was imposed on June 3, 2013, following Frazier’s guilty plea on the first day of trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore City Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; and Maryland Attorney General Douglas F. Gansler.
According to Frazier’s plea agreement, on August 14, 2010, Frazier, John Franklin and Troy Williams carjacked two vehicles. Franklin waved down a man driving a Buick LeSabre, telling the driver that he needed a hack (an unlicensed cab ride) to East Baltimore. The driver agreed and Franklin, Frazier, and Williams got into the car. A short time later, Frazier and his co-conspirators robbed the driver at gunpoint, taking his license, cell phone and cash, then ordered the victim out of the vehicle. Frazier and the other men then drove away in the LeSabre.
Approximately 15 minutes later, driving the LeSabre, Frazier and his co-conspirators approached three women who had just parked their Dodge Charger in the 4000 block of East Lombard Street. As the women got out of the car, Franklin and Williams walked up to the women and robbed them at gunpoint, then demanded the keys to the car. Franklin and Williams then drove away in the Charger, followed by Frazier driving the LeSabre.
Baltimore Police officers responding to the report of the armed carjacking of the Charger saw the Charger being followed by the LeSabre. Officers were able to stop the LeSabre and arrest Frazier, but the Charger sped away, eventually hitting a parked car. Police saw Franklin and Williams bail out of the Charger and run away. With the help of the Baltimore Police helicopter unit, officers located Williams under a parked car. Franklin was located nearby. Police recovered from Franklin the first victim’s driver’s license as well as a cellphone belonging to one of the women. A fully-loaded .357 caliber revolver was recovered in the same block where Franklin was arrested.
John Franklin, age 41, of Baltimore, Maryland, was previously convicted after trial and sentenced to 414 months in prison. Troy Williams, age 44, of Baltimore, pleaded guilty to his role in the scheme and is scheduled to be sentencing on June 18, 2013.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department, Baltimore City State’s Attorney’s Office and the Maryland Attorney General’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr. 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.
Businessman Sentenced to 2 Years in Prison for Obstructing the Irs and Concealing Property in Bankruptcy ProceedingsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Darryl A. Stuckey, age 48, formerly of Fort Washington, Maryland today to two years in prison, followed by three years of supervised release, for corruptly obstructing the Internal Revenue Code and fraudulently concealing assets in a bankruptcy proceeding. Judge Titus also ordered Stuckey to pay restitution of $300,632.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division; Judy A. Robbins, United States Trustee for Region 4, which includes the District of Maryland; 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.
Obstructing the IRS
According to his plea agreement, from 1996 to 2009, Stuckey served in various roles in companies that he caused to be created or purchased. Between 2004 and 2009, Stuckey engaged in a scheme to obstruct the IRS from determining his income. For example, instead of using his personal bank accounts, Stuckey used corporate bank accounts and credit cards from his businesses to pay for the majority of his personal expenses, such as gambling, child support, medical expenses, shopping, travel, gifts and entertainment.
From 2004 to 2009, although Stuckey received substantial income from the businesses he controlled, he did not file individual or corporate federal tax returns, and did not pay any federal income taxes, state income taxes, or self-employment taxes. In fact, Stuckey admitted that he had not filed individual or corporate federal tax returns since 1993.
In 2009, Stuckey caused a business he purchased, CTI/D.C., to end its use of an outside company to manage its payroll. Although Stuckey continued to have CTI/D.C. deduct Federal Insurance Contribution Act (FICA) taxes, federal income taxes and other items from the employees’ paychecks, he failed to pay over to the IRS the FICA and federal income taxes that were withheld. As a result of Stuckey’s actions, the tax loss was $300,632.
Concealing Bankruptcy Assets
In 2007 Stuckey caused a business he organized, Yekcuts, LLC, to file for bankruptcy. Stuckey caused Yekcuts to file a schedule of assets that failed to disclose a company bank account, and to falsely claim that Yekcuts received no gross income in 2005, 2006 and 2007.
In May 2007, Stuckey fraudulently transferred and concealed real property located at 12301 Longwater Drive, Mitchellville, Maryland, which belonged to the Yekcuts bankruptcy estate. Specifically, Stuckey caused Yekcuts to enter into a promissory note with another individual, pursuant to which Yekcuts borrowed $130,000 in exchange for a security interest in the real property. Yekcuts never sought the required permission from the bankruptcy court to enter into the loan. Stuckey directed that $121,893 of the loan proceeds be distributed as follows: $10,000 to an individual, $9,000 to a Yekcuts bank account; and $102,893 to an account for which Stuckey was the sole signatory. Within 10 days of the deposit of the funds into the accounts, Stuckey withdrew $108,380.93 from the latter bank account.
In June 2007, after learning about the loan involving the Longwater Drive property, counsel for one of the Yekcuts creditors obtained a court order to depose Stuckey. Stuckey immediately caused Yekcuts to move to dismiss its bankruptcy, which the court denied. During the subsequent deposition, the government contends that Stuckey lied about the loan, his ownership interest in Yekcuts, compensation received from and expenses paid by Yekcuts, the existence of a second bank account maintained by Yekcuts and other matters.
As a result of Stuckey’s concealment of property during the Yekcuts bankruptcy, the loss to the bankruptcy estate exceeded $120,000.
Additionally, in October 2007 Stuckey filed for personal bankruptcy. Stuckey filed false schedules with the bankruptcy court, failing to disclose his transfer in May 2007 of real property located at 11950 Autumnwood Lane, Fort Washington, Maryland into a trust fund of which he was the sole beneficiary. Stuckey also did not disclose that he served as an officer, director, partner, managing executive or proprietor of several businesses. Evidence was also presented at today’s sentencing hearing that Stuckey spent over $45,000 on jewelry and furs within months of declaring personal bankruptcy.
United States Attorney Rod J. Rosenstein praised the IRS - Criminal Investigation, FBI and the U.S. Trustee Program’s Greenbelt office for their work in the investigation. The U.S. Trustee Program is the Department of Justice component that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Mr. Rosenstein thanked Assistant U.S. Attorney Stuart A. Berman and Trial Attorney Jeffrey Bender, with the Department of Justice’s Tax Division, who prosecuted the case.
Cain faces a maximum sentence of 30 years in prison for the conspiracy and for possession with intent to distribute oxycodone. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 3, 2013 at 12:00 p.m.
United States Attorney Rod J. Rosenstein praised the DEA, HHS Office of Inspector General and the Anne Arundel and Howard County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark, Clinton J. Fuchs and Mushtaq Gunja, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Baltimore Man Sentenced to over 7 Years in Prison for Infringing the Copyrights of More Than 1,000 Commercial Software ProgramsRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Naveed Sheikh, age 32, of Baltimore, today to 87 months in prison, followed by three years of supervised release, for conspiring to and infringing copyrights by illegally reproducing and distributing over 1,000 copyrighted commercial software programs. Judge Bennett entered an order requiring Sheikh to forfeit $4 million, the total value of the infringed software programs.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); 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.
“Copyright infringement is not a victimless crime,” said HSI Baltimore Special Agent in Charge William Winter. “Intellectual property theft costs U.S. businesses billions of dollars each year and accounts for the loss of American jobs and innovation. HSI will continue working with our law enforcement and private industry partners to pursue criminal organizations that are engaged in this type of illegal activity.”
According to Sheikh’s guilty plea, from February 2003 to June 2008, Sheikh conspired to infringe copyrights by reproducing and distributing over 1000 copyrighted commercial software programs worth $4 million. Sheikh recruited and compensated co-conspirators, directed the actions of other co-conspirators, obtained infringing copies of software that were used for distribution, and planned and organized the activities of the conspiracy. Sheikh created multiple websites through which the infringing software was sold. Sheikh advised purchasers that the programs offered for sale were not legal because they were copies of original software programs or “cracked” versions and could not be registered with the legitimate companies that developed the software programs and held copyrights covering the software. Sheikh rented computer server space in Scranton, Pennsylvania, and hosted the websites with the infringing software, on computers in Scranton, Pennsylvania, and at his home in Bel Air, Maryland.
Sheikh advised purchasers that software programs could be mailed to purchasers on compact discs and downloaded from the internet. Sheikh requested that purchasers send money orders for infringing software to a P.O. box he maintained in Towson, Maryland. Sheikh also permitted customers to pay for infringing software through credit card charges and electronic fund transfers. In order to process the electronic payments, Sheikh and his co-conspirators used the credit card processing accounts for a defunct business previously owned by Sheikh’s family, and caused monies from the software sales to be deposited into accounts previously associated with the business. Some of the individuals who worked for Sheikh were located overseas and could assist with overnight projects. Sheikh and other conspirators posed as other individuals when corresponding with customers by email. Sheikh did not report the income from the copyright infringement scheme on his tax returns. During the time of the conspiracy, Sheikh used services such as Western Union to transmit money outside the United States, particularly to Pakistan.
The copyrighted works copied and sold illegally included Microsoft Office, Microsoft Money 2006 Small Business, Adobe Acrobat, Adobe Photoshop and Adobe After Effects Pro 7.0, Veritas NetBackUp Pro 5.1, Solid Works Office 2000 Premium, Quicken Premier Home and Business 2006 and Apple Mac OSX Panther 10.3 and Microsoft Windows XP Professional with SP2.
In meetings with federal prosecutors and agents during the course of the investigation, Sheikh made numerous false statements in order to obstruct the investigation. For example, Sheikh claimed that he had rented computer space to another individual, whom Sheikh believed was selling computer training programs. Sheikh falsely said that he did not learn that this individual was selling copyright infringing software until 2008. Sheikh further claimed that he had recorded phone conversations with this individual in an effort to assist the government investigation. Through his attorney, Sheikh provided the fraudulent recordings that he created. During the Fall of 2010, the government engaged in plea negotiations with Sheikh. In November 2010, shortly before the deadline for Sheikh to reach an agreement with the government or be charged, Sheikh left the United States for Pakistan. When he re-entered the U.S. in January 2012, Sheikh was carrying electronic media containing evidence that he and his co-conspirators were responsible for the sales of infringing software.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the FBI and U.S. Postal Inspection Service for their work in the investigation and thanked the Business Software Alliance (BSA) and Microsoft Corporation for their assistance. Mr. Rosenstein commended Assistant United States Attorneys Harry M. Gruber and Martin J. Clarke, who prosecuted the case.
Lenny Cain Convicted in Oxycodone ConspiracyRead the Press Release
Baltimore, Maryland – A federal jury today convicted Lenny Cain, age 36, of Baltimore, Maryland, for conspiracy to distribute and possess with intent to distribute oxycodone, and for possession with intent to distribute oxycodone.
The conviction 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 Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Anne Arundel County Police Acting Chief Lt. Colonel Pamela R. Davis; and Howard County Police Chief William McMahon
According to the testimony at his two week trial, beginning in 2010, Cain and the other leaders of the conspiracy, including Joseph Church, recruited women working in doctors’ offices to assist them in obtaining and verifying fraudulent prescriptions for oxycodone, also known as, OxyContin and Percocet. The leaders also recruited individuals, called “runners,” to get the fraudulent prescriptions filled at pharmacies in the Baltimore area. Evidence presented at trial showed that at least 14 fraudulent prescriptions had Cain’s fingerprints on them. Cain was also captured on surveillance video at two pharmacies – one where he attempted to get a fraudulent prescription filled in the name of another individual, and another where he followed one of the “runners” who was attempting to get a fraudulent prescription filled, into the pharmacy.
Seven co-conspirators, including Joseph Church, age 41, of Baltimore, have previously pleaded guilty to their roles in the conspiracy. Bruce Breland, age 56, and Charles Fell, age 27, both of Baltimore, have been sentenced to 27 months and to two years in prison, respectively. The remaining defendants are awaiting sentencing.
Cain faces a maximum sentence of 30 years in prison for the conspiracy and for possession with intent to distribute oxycodone. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 3, 2013 at 12:00 p.m.
United States Attorney Rod J. Rosenstein praised the DEA, HHS Office of Inspector General and the Anne Arundel and Howard County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark, Clinton J. Fuchs and Mushtaq Gunja, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Port Deposit Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
Baltimore, Maryland – Michael Dean Ragan, Jr., age 30, of Port Deposit, Maryland, pleaded guilty today to receipt of child pornography.
The guilty plea/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 Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office.
According to the plea agreement, on January 30, 2011, Ragan’s laptop computer, desktop computer, camera, hard drive and other digital media were seized by law enforcement during a search in an unrelated counterfeit currency investigation. Ragan later pleaded guilty to state counterfeit charges. A subsequent forensic examination of the items seized during the search found approximately 335 images and 17 videos of minors, including prepubescent minors, engaged in sexually explicit conduct, including acts of sadism, masochism of other depictions of violence.
In addition, a video was located on a seized DVD that depicted Ragan engaged in sexually explicit conduct with a minor male. According to the statement of facts, the video was taken without the knowledge of the minor male. Ragan admitted engaging in sexually explicit conduct with the minor male and also acknowledged 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 sexually explicit conduct.
As part of his plea agreement, 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 sentencing range for receipt of child pornography is a minimum mandatory sentence of five years in prison and a maximum of 20 in prison followed by up to lifetime of supervised release. Ragan and the government have agreed that if the Court accepts the plea agreement Ragan will be sentenced to 12 years in prison followed by at least 20 years, but up to a lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 4, 2013 at 10:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.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 and U.S. Secret Service 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.
“This case was discovered and investigated by members of a joint Baltimore Police and FBI anti-corruption task force and re-emphasizes my commitment to rooting out corruption within the Baltimore Police Department," said Police Commissioner Anthony W. Batts. My message to the people of our city is we are not finished - we will continue to relentlessly target corruption and misconduct among the ranks. A special note of thanks to all the police officers, agents and prosecutors for their assistance with this investigation and their continued support.”
According to the criminal complaint, on February 26, 2013, a confidential source provided information regarding alleged criminal activity being conducted by Baltimore Police officer Ashley Roane and her roommate Erica Hughes. The confidential source advised law enforcement that in the Fall of 2012, Roane had spoken to the source regarding drug trafficking and had told the source that if the source, whom Roane believed was a large scale heroin trafficker in Baltimore, wanted to sell drugs in the area where she patrolled, Roane would provide the source with a location that is not heavily concentrated with police. Additionally, Roane told that source that she could provide the source with information regarding police activity, specifically when and where drug search warrants would be executed.
The criminal complaint alleges that Roane provided assistance and protection to the confidential source in the source’s alleged drug trafficking. For example, on March 28, 2013, the criminal complaint alleges that Roane conducted a criminal check of one of the source’s alleged associates, to see if that person was an informant or cooperator with the Baltimore Police Department. According to the complaint, Roane agreed that she would tell the confidential source if the person were an informant so that the source would not engage in a drug transaction with that person. Further, the criminal complaint alleges on the on April 30, 2013, while in uniform, armed with her service firearm, and in a marked Baltimore Police Department vehicle, Roane provided protection while the confidential source conducted a narcotics transaction involving a kilogram of heroin. The confidential source allegedly paid Roane $500 for her protection and Roane agreed to provide such protection again in a future narcotics transaction involving multiple kilograms of heroin.
According to the criminal complaint, Hughes and Roane believed that the confidential source also worked as a tax preparer and they provided the personal information of more than 30 individuals, including names, dates of birth and social security numbers, to the confidential source to prepare and submit false tax returns to the IRS in order to obtain fraudulent tax refunds. The criminal complaint alleges that Roane obtained the personal information from law enforcement databases through her position as a Baltimore Police officer.
Roane faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for possession with intent to distribute heroin, and a mandatory minimum sentence of five years in prison and a maximum of life in prison for possession of a gun in furtherance of a drug trafficking crime. Roane and Hughes face a mandatory sentence of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. The defendants will be detained pending an initial appearance which will be scheduled for Monday, June 3, 2013, in U.S. District Court in Baltimore.
A criminal complaint is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter M. Nothstein, who is prosecuting the case.
Three-time Felon Exiled to 16 Years in Prison for Violent Armed RobberyRead the Press Release
Pistol Whipped a Store Clerk During the Robbery
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Reginald Lloyd, age 40, of Washington, D.C., today to 16 years in prison followed by five years of supervised release for armed robbery, using and brandishing a gun during a crime of violence, and being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to the evidence presented at Lloyd’s three day trial, on September 7, 2011, Lloyd and an unidentified accomplice entered a store in Forestville, Maryland, wearing black masks and carrying guns. Lloyd ordered an employee at gunpoint to open the cash register, while the accomplice ordered two other employees at gunpoint to the back of the store. Lloyd stole approximately $964 from the cash register, then ordered the employee to open the safe below the cash register. When the employee replied that he could not open the safe, Lloyd pistol-whipped the employee, grabbed the keys and attempted to open the safe himself. Unsuccessful in opening the safe, Lloyd struck the employee in the face with the gun, then sprayed the employee in the face with mace. Lloyd and his accomplice then left the store.
Witnesses testified that during the robbery, one of the employees called 911, described the getaway vehicle and requested an ambulance for the employee who had been injured. About ten minutes later, Prince George’s County Police officers saw a vehicle matching the description of the getaway car and conducted a traffic stop. As the officers got out of their car, the vehicle took off speeding down Marlboro Pike toward Washington, D.C. The pavement was wet and the vehicle hydroplaned, crossing the road into a gas station. A woman was standing next to her car pumping gas, when the vehicle crashed into the back of her car. When police arrived, Lloyd, the only occupant of the vehicle, was arrested. Police recovered a loaded .45 caliber handgun, pepper spray, approximately $867 in cash and receipts from the store, a black mask and a black and white bandana. The black mask contained a DNA profile consistent with Lloyd’s.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Steven E. Swaney and Christen A. Sproule, who prosecuted the case.
Money Courier for Large Guatemalan Drug Ring Sentenced to over 13 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Nery Gustavo Ramos-Duarte, age 52, of Chiquimula, Guatemala, today to 160 months in prison followed by five years of supervised release for conspiring to distribute and import five kilograms or more of cocaine, commit money laundering, and smuggle bulk cash.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to evidence presented at the five day trial, Duarte was a money courier for a large international organization that imported cocaine into the United States from Guatemala and smuggled the proceeds back to Guatemala. Duarte was a trusted member of the organization who could speak directly with its leader in Guatemala, and helped the leader collect drug debts.
On September 25, 2003, Duarte was stopped while driving in Arkansas. Law enforcement seized $1,168,000 in cash wrapped in bundles from a secret compartment in his vehicle.
In 2005, Duarte picked up drug money from a co-conspirator in Connecticut to take to the ringleader in Guatemala. Later in 2005, Duarte took a Mercedes-Benz from another member of the conspiracy as payment for a drug debt to the ringleader.
Trial testimony showed that Duarte was responsible for the distribution of over 150 kilograms of cocaine in the course of the conspiracy.
United States Attorney Rod J. Rosenstein commended the IRS-CI, DEA, and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Peter M. Nothstein, Andrea L. Smith, and Bonnie S. Greenberg, who prosecuted case.
Baltimore Police Officer Accused of Working for Heroin DealerRead the Press Release
Officer Ashley Roane Arrested for Federal Drug, Gun and Identity Fraud Crimes
U.S. Attorney Calls Allegations “Appalling Violation of Public Trust”
Baltimore, Maryland - Baltimore Police officer Ashley Roane, age 25, of Pikesville, Maryland, has been charged with helping a heroin dealer by providing armed, uniformed security for drug transactions; offering advance notice of search warrants; and using police databases to check for informants. In addition, Roane and her roommate, Erica Hughes, also age 25, of Pikesville, have been charged with aggravated identity theft in connection with a scheme in which Roane used a police database to obtain the names of victims to be used to obtain fraudulent tax refunds. The criminal complaint was filed on May 28, 2013, and unsealed today upon the arrest of the defendants.
The charges 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 Commissioner Anthony W. Batts of the Baltimore Police Department.
“The allegations represent an appalling violation of the public trust by an officer who took an oath to serve the public but used her police powers to serve herself,” said U.S. Attorney Rod J. Rosenstein. “The complaint alleges that Officer Ashley Roane agreed to help a drug dealer find a safe place to sell heroin in Baltimore and provide early warnings before police executed search warrants, that she provided armed security for drug deals while in uniform in her patrol car, and that she checked a police database to identify informants. In a separate identity fraud scheme, she allegedly used a police database to obtain names, birth dates and social security numbers that could be used to obtain fraudulent tax refunds from the IRS.”
“This case was discovered and investigated by members of a joint Baltimore Police and FBI anti-corruption task force and re-emphasizes my commitment to rooting out corruption within the Baltimore Police Department," said Police Commissioner Anthony W. Batts. My message to the people of our city is we are not finished - we will continue to relentlessly target corruption and misconduct among the ranks. A special note of thanks to all the police officers, agents and prosecutors for their assistance with this investigation and their continued support.”
According to the criminal complaint, on February 26, 2013, a confidential source provided information regarding alleged criminal activity being conducted by Baltimore Police officer Ashley Roane and her roommate Erica Hughes. The confidential source advised law enforcement that in the Fall of 2012, Roane had spoken to the source regarding drug trafficking and had told the source that if the source, whom Roane believed was a large scale heroin trafficker in Baltimore, wanted to sell drugs in the area where she patrolled, Roane would provide the source with a location that is not heavily concentrated with police. Additionally, Roane told that source that she could provide the source with information regarding police activity, specifically when and where drug search warrants would be executed.
The criminal complaint alleges that Roane provided assistance and protection to the confidential source in the source’s alleged drug trafficking. For example, on March 28, 2013, the criminal complaint alleges that Roane conducted a criminal check of one of the source’s alleged associates, to see if that person was an informant or cooperator with the Baltimore Police Department. According to the complaint, Roane agreed that she would tell the confidential source if the person were an informant so that the source would not engage in a drug transaction with that person. Further, the criminal complaint alleges on the on April 30, 2013, while in uniform, armed with her service firearm, and in a marked Baltimore Police Department vehicle, Roane provided protection while the confidential source conducted a narcotics transaction involving a kilogram of heroin. The confidential source allegedly paid Roane $500 for her protection and Roane agreed to provide such protection again in a future narcotics transaction involving multiple kilograms of heroin.
According to the criminal complaint, Hughes and Roane believed that the confidential source also worked as a tax preparer and they provided the personal information of more than 30 individuals, including names, dates of birth and social security numbers, to the confidential source to prepare and submit false tax returns to the IRS in order to obtain fraudulent tax refunds. The criminal complaint alleges that Roane obtained the personal information from law enforcement databases through her position as a Baltimore Police officer.
Roane faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for possession with intent to distribute heroin, and a mandatory minimum sentence of five years in prison and a maximum of life in prison for possession of a gun in furtherance of a drug trafficking crime. Roane and Hughes face a mandatory sentence of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. The defendants will be detained pending an initial appearance which will be scheduled for Monday, June 3, 2013, in U.S. District Court in Baltimore.
A criminal complaint is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter M. Nothstein, who is prosecuting the case.
Hagerstown Drug Dealer Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Vincent Hernandez, age 31, of Hagerstown, Maryland, today to 10 years in prison followed by five years of supervised release for conspiring to distribute cocaine base, possession of a firearm in furtherance of the drug conspiracy and being a felon in possession of a gun. Judge Motz enhanced Hernandez’s sentence upon finding that he has a prior felony conviction for a drug offense.
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 Washington County Sheriff Doug Mullendore.
According to evidence presented at the three day trial, from November 2009 to January 2010, an individual made four controlled buys of crack cocaine supplied by Hernandez. After the fourth purchase on January 6, 2010, members of the Washington County Task Force and DEA executed a search warrant at Hernandez’s home and seized drug paraphernalia including a digital scale, plastic baggies; names and telephone numbers of drug customers; a handgun and bullets; and $4,135. Due to Hernandez’ previous felony conviction, he was prohibited from possessing a gun.
United States Attorney Rod J. Rosenstein commended the DEA and Washington County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Corey Moore Sentenced to over 22 Years in Prison on Federal Drug and Gun ChargesRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Corey Moore, age 37, of Takoma Park, Maryland, today to 271 months in prison followed by five years of supervised release for possession with intent to distribute controlled substances, specifically cocaine and phencyclidine (PCP); possession of firearms in furtherance of a drug trafficking crime; and being a felon in possession of guns and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Alan Goldberg of the Takoma Park Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“Corey Moore will no longer sell drugs and foment violence on the streets of Maryland and D.C.,” said U.S. Attorney Rod J. Rosenstein.
According to evidence presented at his one week bench trial, on September 25, 2010, Moore possessed with intent to distribute powder cocaine, which was recovered by Takoma Park police after a chase. In addition, on September 27, 2010, police executed a search warrant at Moore’s residence and seized one kilogram or more of PCP, which Moore intended to distribute, as well as a .44 caliber, semi-automatic pistol, a.38 caliber revolver, and six rounds of .38 caliber ammunition. Trial testimony showed that Moore possessed the guns to further his drug trafficking and that Moore was prohibited from possessing the guns and ammunition due to a previous felony conviction.
United States Attorney Rod J. Rosenstein praised ATF, the Takoma Park Police Department, Montgomery County Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Steven E. Swaney and Mara Zusman Greenberg, who prosecuted the case.
Baltimore Man Exiled to 9 Years in Prison for A Series of Armed Commercial RobberiesRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Monzell Lee, age 20, of Baltimore, Maryland, today to nine years in prison followed by five years of supervised release for interference with commerce by robbery and possession of a gun in furtherance of a crime of violence. Judge Hollander also ordered Lee to pay restitution to the victims totaling $1,937.
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; and Baltimore Police Commissioner Anthony W. Batts.
According to Lee’s plea agreement, between May 28 and June 11, 2012, Lee participated in four robberies of convenience stores and fast food restaurants in the Baltimore area. In each robbery Lee entered the store with a co-conspirator, who was armed. The co-conspirator brandished the gun at the store employees and Lee and the co-conspirator took cash from the register. A third conspirator, Rico Bias, then drove Lee and the other conspirator away from the scene of each robbery.
Specifically, Lee robbed: the Burger King in the 8300 block of Harford Road in Baltimore on May 28, 2012; the Royal Farms Store in the 1900 block of Belair Road and the Royal Farms Store in the 900 block of West 36th Street, both in Baltimore, on May 29, 2012; and the Wendy’s Restaurant in the 3600 block of Washington Boulevard in Elkridge on June 11, 2012.
Bias, age 34, also of Baltimore, previously pleaded guilty to conspiring to commit a commercial robbery and the gun charge and is scheduled to be sentenced on June 21, 2013 at 11:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who prosecuted the case.
Former Navy Reservist Pleads Guilty to the Sexual Exploitation of Minors to Produce Child PornographyRead the Press Release
Baltimore, Maryland - Anthony K. Mastrogiovanni, 30, of Crofton, MD, pleaded guilty today to the sexual exploitation of minors to produce child pornography.
The guilty plea 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.
As part of his plea agreement, Mastrogiovanni 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).
Mastrogiovanni 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 for sexual exploitation of a minor to produce child pornography. U.S. District Judge J. Frederick Motz has scheduled sentencing for July 31, 2013 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.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.
Former Employee of Federal Court Contractor Sentenced for Bribery and PerjuryRead the Press Release
Falsified Drug Tests of Federal Defendants in Return for Bribes and
Then Lied to a Grand Jury Investigating the AccusationsGreenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Lauren Jeannette Diggs, age 51, of Rockville, today to 30 months in prison followed by three years of supervised release for a bribery conspiracy and making false statements to the grand jury, in connection with a scheme to accept bribes from individuals charged or convicted of federal crimes to falsify urine tests.
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.
“Lauren Jeannette Diggs took bribes to falsify drug tests of federal criminal defendants, then committed perjury before the grand jury investigating the allegations,” said U.S. Attorney Rod J. Rosenstein. “Providing false information to courts and grand juries undermines the integrity of the criminal justice system.”
From July 27, 2009 through December 30, 2010, Diggs was the primary alcohol and substance abuse counselor for ADR, a company that provides alcohol and drug treatment services, at ADR’s Forestville facility, where she also supervised urine tests on female clients. U.S. Probation and Pretrial Services in Maryland contracted with ADR to test the urine samples of individuals who were on pretrial release, supervised release, parole or probation for the presence of controlled substances. When ADR clients completed their substance abuse and mental health treatment programs, ADR provided them with discharge summary certificates. U.S. Probation relied on the urine test results and certificates prepared by ADR to supervise individuals charged with or convicted of federal crimes, and to prepare reports to the U.S. District Court or the Parole Commission, who in turn relied on the reports to make release and sentencing decisions.
According to her guilty plea, starting in January 2010, Diggs asked co-conspirator Christopher Womack, who was employed at ADR as a urine technician, and others to ensure that certain ADR clients would not have their urine samples accurately tested and reported to U.S. Probation in exchange for money from ADR clients. Diggs introduced Womack to her bribe-paying clients and explained her bribe pricing schedule to Womack. After she was fired from ADR on December 30, 2010, Diggs continued to assist Womack in providing fictitious certificates to ADR clients in exchange for money, and received proceeds of bribe payments from Womack.
Many of the federal defendants who paid bribes had significant criminal histories and had been in fact ingesting controlled substances while on supervised release. In total, Diggs and Womack accepted more than 100 individual bribe payments.
During 2012, the Grand Jury in Greenbelt was investigating the bribery scheme, including Diggs’ participation. Subpoenas were issued in June 2012 requiring Diggs and Womack to appear and provide sworn testimony before the Grand Jury . On June 11, Womack called Diggs to discuss their anticipated testimony. Diggs attempted to persuade Womack to provide false testimony, saying:
“There ain’t nothing else to tell them m—f—!... They have no f— proof.… You don’t know s—. Deny! Deny! Deny!... If you don’t remember no other f— word you remember that g—d— word. Deny!... Cause that’s what the f— I’m gonna do.”
Diggs appeared before the Grand Jury on July 2, 2012 and made false statements, claiming that she did not know anyone at ADR who had received money in exchange for not requiring ADR clients to take court-mandated urine tests, or in exchange for providing discharge certificates. Diggs also denied that she had spoken to Womack since her discharge from ADR.
Three days later, in a telephone conversation on July 5, Diggs again attempted to persuade Womack to provide false testimony to the Grand Jury. Diggs said:
“Yo, that grand jury is nothing…. It’s nothing. It’s easy. Deny. Deny everything. You haven’t seen me…. Anything that’s asked, deny.”
Christopher Womack, age 44, of Forestville, Maryland, pleaded guilty to bribery and was sentenced to three years probation of which nine months are in home confinement
United States Attorney Rod J. Rosenstein praised the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James A. Crowell IV, who prosecuted the case.
Mr. Rosenstein thanked District of Maryland Chief U.S. Probation Officer William Henry for bringing the allegations to the attention of federal law enforcement.
Former Employee of Federal Court Contractor Sentenced for Bribery and PerjuryRead the Press Release
Falsified Drug Tests of Federal Defendants in Return for Bribes and
Then Lied to a Grand Jury Investigating the AccusationsGreenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Lauren Jeannette Diggs, age 51, of Rockville, today to 30 months in prison followed by three years of supervised release for a bribery conspiracy and making false statements to the grand jury, in connection with a scheme to accept bribes from individuals charged or convicted of federal crimes to falsify urine tests.
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.
“Lauren Jeannette Diggs took bribes to falsify drug tests of federal criminal defendants, then committed perjury before the grand jury investigating the allegations,” said U.S. Attorney Rod J. Rosenstein. “Providing false information to courts and grand juries undermines the integrity of the criminal justice system.”
From July 27, 2009 through December 30, 2010, Diggs was the primary alcohol and substance abuse counselor for ADR, a company that provides alcohol and drug treatment services, at ADR’s Forestville facility, where she also supervised urine tests on female clients. U.S. Probation and Pretrial Services in Maryland contracted with ADR to test the urine samples of individuals who were on pretrial release, supervised release, parole or probation for the presence of controlled substances. When ADR clients completed their substance abuse and mental health treatment programs, ADR provided them with discharge summary certificates. U.S. Probation relied on the urine test results and certificates prepared by ADR to supervise individuals charged with or convicted of federal crimes, and to prepare reports to the U.S. District Court or the Parole Commission, who in turn relied on the reports to make release and sentencing decisions.
According to her guilty plea, starting in January 2010, Diggs asked co-conspirator Christopher Womack, who was employed at ADR as a urine technician, and others to ensure that certain ADR clients would not have their urine samples accurately tested and reported to U.S. Probation in exchange for money from ADR clients. Diggs introduced Womack to her bribe-paying clients and explained her bribe pricing schedule to Womack. After she was fired from ADR on December 30, 2010, Diggs continued to assist Womack in providing fictitious certificates to ADR clients in exchange for money, and received proceeds of bribe payments from Womack.
Many of the federal defendants who paid bribes had significant criminal histories and had been in fact ingesting controlled substances while on supervised release. In total, Diggs and Womack accepted more than 100 individual bribe payments.
During 2012, the Grand Jury in Greenbelt was investigating the bribery scheme, including Diggs’ participation. Subpoenas were issued in June 2012 requiring Diggs and Womack to appear and provide sworn testimony before the Grand Jury . On June 11, Womack called Diggs to discuss their anticipated testimony. Diggs attempted to persuade Womack to provide false testimony, saying:
“There ain’t nothing else to tell them m—f—!... They have no f— proof.… You don’t know s—. Deny! Deny! Deny!... If you don’t remember no other f— word you remember that g—d— word. Deny!... Cause that’s what the f— I’m gonna do.”
Diggs appeared before the Grand Jury on July 2, 2012 and made false statements, claiming that she did not know anyone at ADR who had received money in exchange for not requiring ADR clients to take court-mandated urine tests, or in exchange for providing discharge certificates. Diggs also denied that she had spoken to Womack since her discharge from ADR.
Three days later, in a telephone conversation on July 5, Diggs again attempted to persuade Womack to provide false testimony to the Grand Jury. Diggs said:
“Yo, that grand jury is nothing…. It’s nothing. It’s easy. Deny. Deny everything. You haven’t seen me…. Anything that’s asked, deny.”
Christopher Womack, age 44, of Forestville, Maryland, pleaded guilty to bribery and was sentenced to three years probation of which nine months are in home confinement
United States Attorney Rod J. Rosenstein praised the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James A. Crowell IV, who prosecuted the case.
Mr. Rosenstein thanked District of Maryland Chief U.S. Probation Officer William Henry for bringing the allegations to the attention of federal law enforcement.
Convicted Felon Exiled to 8 Years in Prison for Possessing A GunRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Corey Jones, age 38, of Baltimore, Maryland, today to eight years in prison followed by five years of supervised release for being a felon in possession of a gun. Judge Bennett enhanced Jones’ sentence upon finding that that Jones had attempted to obstruct justice when he absconded while on pretrial home detention with electronic monitoring.
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 court documents and statement made a today’s sentencing hearing, On July 4, 2010, Baltimore police conduct a traffic stop of a vehicle after observing a broken and cracked side mirror. The vehicle had three occupants: the defendant in the front passenger seat, the defendant's brother, who was driving, and the defendant's wife in the rear passenger seat.
After officers approached the car, they saw Jones’ wife in the back passenger seat attempting to remove a knife from her waistband. An officer reached through the window and took the knife from her, and then ordered her out of the vehicle. Instead of complying, she reached for her purse and the officer then opened the door and removed her from the vehicle. Once she and the purse were on the sidewalk, the officer saw the butt of a handgun protruding from her purse. The gun was later identified as a loaded .32 caliber handgun.
Officers then removed Jones and his brother from the vehicle. As he was being arrested Jones told officers that the gun was his and that he had put it in his wife’s purse. Officers took all three of the car's occupants to the station and obtained voluntary, post-Miranda, taped statements from each of them. Jones again stated that the gun was his, and that he placed it in his wife’s purse without her knowledge before they got in the car.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Justin S. Herring and Paul E. Budlow, who prosecuted the case.
Walkersville Man Pleads Guilty in $9.2 Million Investment SchemeRead the Press Release
Caused Approximately $4 Million in Losses to InvestorsBaltimore, Maryland - Larry Michael Parrish, a/k/a Michael Parrish, age 49, of Walkersville, Maryland pleaded guilty today to wire fraud arising from an investment scheme.
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 his plea agreement, Parrish operated IV Capital, Ltd., which from November 2005 to October 2009, he described to potential investors as an investment and trading company. Parrish made a number of false representations to encourage potential investors to make investments with IV Capital. For example, Parrish falsely represented that IV Capital: traded stocks, bonds, currencies precious metals and other instruments on international exchanges; had $20 million or more under management; employed a number of other traders and staff, when in fact, the company had no employees aside from Parrish; and had established a minimum gross profit margin each month of 5%, which would be equally divided between the company and its individual investors.
Parrish also falsely represented that: he and several partners had invested substantial funds of their own with the company; that all invested funds would be deposited in an escrow account and used solely to secure a line of credit from a financial institution, which would provide the actual working capital for IV Capital’s trading activities; and that IV Capital’s management of its accounts would be evaluated by top licensed professional third parties. In fact, Parrish had no partners and had not invested any of his own funds with IV Capital. The investors’ funds were directed to an offshore bank where they were not kept in an escrow account, but were instead used to generate funds for risky and highly unsuccessful trading activity, to make the “profit” payments of roughly 2.5% monthly back to the investors, and to supply funds for the personal use of Parrish and his family.
Out of the approximately $9.2 million in investor funds that were placed with Parrish and IV Capital between February 2006 and October 2009, Parrish allocated approximately $2.938 million to trading activity conducted by himself and another individual, almost all of which was lost in making risky and unsuccessful investments in options and futures contracts. Another $5.2 million was used to make “profit” payments to IV Capital investors, and almost all of the remainder was used by Parrish for personal expenses, including purchases of clothing, furniture, electronics and other items, paying bills for rent, food and utilities, as well as paying for entertainment and vacation expenses, including a golf outing for himself and a number of friends in May 2008, and the purchase of a 2009 Harley Davidson FXDF motorcycle in September 2008.
Parrish faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge J. Frederick Motz scheduled sentencing for November 15, 2013, at 10:00 a.m.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the FBI for its work in the investigation and praised Assistant U.S. Attorney Jefferson M. Gray and Harry M. Gruber, who are prosecuting the case. The United States Securities & Exchange Commission (SEC) also conducted an investigation of Parrish, and obtained a default judgment against him in a civil action filed in federal court in Denver, Colorado in September 2012.
Cocaine Distributor Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Duane Curtis, age 37, of Randallstown, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute cocaine and conspiracy to launder money.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.
According to Curtis’ guilty plea, from July 2011 through March 2012, Curtis conspired with Monique Devane and others to distribute cocaine. Devane shipped cocaine from Arizona to Curtis in Maryland for distribution. Curtis sold the cocaine in Maryland and deposited the proceeds into one of four bank accounts controlled by Devane. Devane used the money to purchase more cocaine in Arizona. Over the course of the conspiracy, Curtis deposited over $253,350 in drug proceeds and through his participation in the conspiracy between five and 15 kilograms of cocaine were foreseeable to Curtis.
Monique Devane, age 34, of Yuma, Arizona, previously pleaded guilty and was sentence to five years in prison.
United States Attorney Rod J. Rosenstein commended the DEA Washington and Arizona Field Offices for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Brooke Carey and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Bank Robber Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Marvin Junius Simmons, age 43, of Alexandria, Virginia, today to 10 years in prison followed by three years of supervised release for three bank robberies.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Simmons= guilty plea, between December 29, 2011 and February 27, 2012, Simmons robbed three banks located in Prince George’s County. In each robbery, Simmons presented the teller with a note threatening that he had a nuclear bomb and demanding money. Latent fingerprints obtained from each of the three notes matched known fingerprints of Simmons. In addition, after the first robbery law enforcement recovered items of clothing worn by the robber and DNA on some of the clothing was consistent with the known DNA of Simmons. Simmons admits that he stole a total of approximately $5,900 in the three robberies.
Specifically, Simmons robbed: the Wells Fargo Bank in the 5800 block of Silver Hill Road in District Heights, Maryland, on December 29, 2011, stealing $3,200; the Suntrust Bank in the 5700 block of Crain Highway in Upper Marlboro, Maryland on January 10, 2012, stealing $550; and the M&T Bank in the 6300 block of Kirby Road in Clinton, Maryland, on February 27, 2012, stealing $2,150.
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, who prosecuted the case.
United States Attorney Rod J. Rosenstein commended the DEA Washington and Arizona Field Offices for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Brooke Carey and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Maryland Leader of Guatemalan Drug Ring Sentenced to 15 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Edwin Galvez-Berganza, age 30, of Hyattsville, Maryland, today to 15 years in prison followed by five years of supervised release for conspiring to distribute cocaine.
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 Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department .
“This sentence is a great example of HSI’s mission to identify international drug traffickers and disrupt and dismantle their criminal operations in the United States,” said ICE Homeland Security Investigations Special Agent in Charge in Baltimore William Winter. “Let there be no mistake, drug trafficking organizations are reaching right here into our homes and communities in Maryland and HSI remains committed to working with our federal, state and local law enforcement partners to combat these criminal organizations that want to profit from poisoning our children and destroying our way of life.”
According to his guilty plea, from 2005 to 2009 Berganza was a leader of a cocaine trafficking ring. Cocaine was flown from Guatemala to the United States, driven to Connecticut and then hidden in trailer hitches and driven from Connecticut to Berganza and his co-conspirators in Maryland. Each trailer hitch contained 3.5 kilograms of cocaine, which Berganza and his co-conspirators removed with a saw. Berganza also received cocaine that was hidden in candy. Berganza distributed the cocaine to co-conspirators and others.
In November 2006, law enforcement officers arrested two conspirators as they were transporting approximately 20 kilograms of cocaine from Connecticut to Berganza in Maryland. Two days later, Berganza fled the United States to Guatemala to avoid arrest. While in Guatemala, Berganza continued to ship packages of cocaine from Guatemala to Silver Spring, Maryland.
Berganza is responsible for the distribution of more than 150 kilograms of cocaine.
Six defendants have pleaded guilty and been sentenced to up to 10 years in prison.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Montgomery County Police Department and DEA for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Mara Zusman Greenberg and James A. Crowell, who prosecuted this Organized Crime Enforcement Drug Task Force case.
Calvert County Man Pleads Guilty to Transporting Child PornographyRead the Press Release
Greenbelt, Maryland – David Dobbs, age 55, of Port Republic, Maryland, pleaded guilty today to transporting child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to the plea agreement, on two occasions in 2010, Dobbs used a file sharing program to make his files of child pornography available to undercover law enforcement officers, who downloaded a total of 16 videos and five images of children engaged in sexually explicit conduct. On September 13, 2010, in addition to providing the officer access to the file sharing program, Dobbs engaged in a chat with the undercover officer, telling the officer that he liked “girls around seven years old and up.”
On April 13, 2012, Dobbs was interviewed in connection with another investigation and admitted to using a file sharing program and that he used a particular screen name when he chatted with the undercover officer. A search warrant was executed at Dobb’s residence and law enforcement seized a laptop computer and an SD card that was damaged and appeared to have been pierced with a blunt instrument. Child pornography was recovered from the computer and the SD card, including images of prepubescent children engaging in sexually explicit conduct.
As part of his plea agreement, Dobbs 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).
Dobbs faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison. As part of his plea agreement, Dobbs and the government will recommend to the Court that a sentence of 90 months in prison, followed by a period of supervised release, is the appropriate disposition of the case. U.S. District Judge Peter J. Messitte has scheduled sentencing for July 25, 2013 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.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 and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Baltimore Crack Dealer Sentenced to 20 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Kenneth Robinson, age 37, of Baltimore, Maryland, today to 20 years in prison followed by 10 years of supervised release for conspiracy to distribute and possession with intent to distribute crack cocaine.
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 Commissioner Anthony W. Batts of the Baltimore Police Department.
According to testimony at Robinson’s two day trial, on July 1, 2011, Baltimore police officers executed search warrants at Robinson’s home on Cedarhurst Road in Baltimore and his car. Robinson told the officers that they would find drugs and cash in ceiling tiles in the basement and in his car. The officers seized a total of approximately 589 grams of crack cocaine and $36,046. The evidence showed that Robinson sold drugs in the York Road corridor.
United States Attorney Rod J. Rosenstein commended the DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Brooke Carey, who prosecuted the case.
Life Sentence for 2010 Murder of Dancer on “the Block” in BaltimoreRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Tyrone Johniken, a/k/a “Hassan Muhammed,” and “Roland,” age 30, of Baltimore, today to life in prison for a racketeering conspiracy, conspiracy to commit murder in aid of racketeering and conspiracy to distribute and possess with intent to distribute drugs in connection with a drug gang operating on a stretch of Baltimore Street in Baltimore known as “the Block.” Johniken was convicted on November 21, 2012, after a three week trial.
Yesterday, Judge Bredar sentenced co-defendant Donte Bernard Baker, a/k/a “Tay,” and “Donnie,” age 23, also of Baltimore, to 40 years in prison followed by five years of supervised release. Baker previously pleaded guilty to the racketeering conspiracy, conspiracy to commit murder in aid of racketeering and possession of a firearm in furtherance of a drug trafficking crime.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“This case demonstrates how illegal drugs can lead to violence and despair,” said U.S. Attorney Rod J. Rosenstein. “Evidence introduced at the trial showed that Cherrie Gammon helped the conspirators distribute drugs on the Block, and Tyrone Johniken and Donte Baker arranged to murder her because they were worried about her cooperating with the police.”
According to evidence presented at Johniken’s trial and court documents, from at least January 2008 to the present, Donte Baker and his mother, co-defendant Monica McCants, were leaders of the gang who supplied heroin and crack cocaine in “packs” of 10, 20 or 60 pills/vials to lower tier members, including defendants Johniken and Gary Cromartie. Johniken and Cromartie then sold the drugs to runners and drug users on the Block. The profits from these sales were given to McCants and Baker, who paid the lower tier members for making the sales. Johniken also assaulted a police officer on July 2, 2009. In November 2010, Baker collected money from drug sales in an effort to bail McCants out of jail.
The gang members protected themselves and the drug organization through violence and intimidation, including the murder of Cherrie Gammon on December 12, 2010. More specifically, on November 25, 2010, McCants instructed Baker to assault Gammon to ensure that Gammon provided the gang with drug proceeds. On December 12, 2010, Gammon was driven to the area of Leon Day Park in Baltimore where she was murdered by Johniken, Baker and Cromartie. In a phone call on December 30, 2010, McCants stated to Baker that law enforcement probably learned from Gammon that Gammon owed money to Baker for drugs.
Gary Thenor Cromartie, a/k/a “Miami,” age 24; and Monica McCants, a/k/a “Money,” age 42, both of Baltimore, previously pleaded guilty to their participation in the racketeering conspiracy. Cromartie also pleaded guilty to conspiring to commit murder in aid of racketeering. Cromartie and McCants are scheduled to be sentenced on May 23 and May 24, respectively. They each face a maximum sentence of life in prison for the racketeering conspiracy and for conspiracy to distribute and possess with intent to distribute drugs.
United States Attorney Rod J. Rosenstein commended the ATF, DEA and Baltimore Police Department for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Joshua Kaul and Robert R. Harding, who prosecuted the case.
Attorney and Four Clients Indicted for Conspiracy to Bribe an Immigration OfficialRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted an immigration attorney and four of his clients in connection with a conspiracy to bribe an immigration official in order to obtain lawful permanent residence, employment authorization documents and green cards. The defendants are:
Kiran Dewan, age 59, of Woodbine, Maryland;
Amjad Israr, age 46, of Cheshire, Connecticut;
Mohammad Khan, age 58, of Baltimore, Maryland;
Khazar Nadar, age 55, of Catonsville, Maryland; and
Narayan Thapa, age 51, of Perry Hall, Maryland.The indictment was returned on January 8, 2013, and unsealed today upon the arrests of Dewan, Israr, Khan and Thapa.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department.
“Immigration attorneys hold positions of public trust and it is disturbing that anyone would defraud the very system in which they work for their own personal profit,” said ICE Homeland Security Investigations Special Agent in Charge in Baltimore William Winter. “Document and benefit fraud poses a significant vulnerability to our national security and exploits America's legal immigration system. Whether you are trying to illegally obtain an immigration benefit or facilitating the fraud, know this - you will be found, arrested and held accountable for your actions.”
According to the indictment, Dewan is a Maryland attorney, who held himself out as having experience handling immigration matters. Dewan operated the Law Offices of Dewan and Associates, P.C., located in Windsor Mill, Maryland. Israr, Khan and Nadar are citizens of Pakistan and Thapa is a citizen of Nepal. All were clients of Dewan. Israr and Khan were both businessmen, operating several convenience stores in Connecticut and a restaurant in Brooklyn Park, Maryland, respectively. Nadar worked at several gas stations in Maryland and Thapa worked at a Maryland restaurant. None of the clients met the requirements for lawful permanent residence, nor for employment authorization.
The five count indictment alleges that beginning in at least March 2011 Dewan obtained money from Israr, Khan, Nadar and Thapa to bribe an undercover agent to obtain lawful permanent residence, employment authorization documents and green cards. Dewan then allegedly prepared fraudulent immigration documents for his clients to sign and submit to the undercover agent. In the documents, Dewan, Israr and Khan falsely represented that Israr and Khan were married to U.S. citizens. Dewan, Nadar and Thapa falsely represented that Nadar and Thapa’s employers had sponsored them to seek lawful permanent residence.
The indictment alleges that the defendants met with the undercover HSI special agent on several occasions to create application documents for submission to USCIS. Although Dewan allegedly agreed to pay the undercover agent bribes for each client in order the obtain the requested documents, Dewan provided the undercover agent a total of $117,100 in a series of installments. Dewan kept $2,900 as his commission on a bribe payment of $36,000 that he wired to a foreign account, which purportedly belonged to the undercover agent.
The defendants each face a maximum sentence of five years in prison for the conspiracy and a maximum of 15 years in prison for each count of bribery. An initial appearance is scheduled today for Dewan, Khan and Thapa in U.S. District Court in Baltimore. Israr had an initial appearance in U.S. District Court in New Haven, Connecticut, and was 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 HSI Baltimore, USCIS Baltimore District Office and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Gregory R. Bockin, who are prosecuting the case.
U.s. Renal Care to Pay $7.3 Million to Resolve False Claims Act AllegationsRead the Press Release
Baltimore, Maryland - U.S. Renal Care, headquartered in Plano, Texas, has agreed to pay $7.3 million to resolve allegations that Dialysis Corporation of America (DCA) violated the False Claims Act by submitting false claims to the Medicare program for more Epogen than was actually administered to dialysis patients at DCA facilities. U.S. Renal Care, which acquired DCA in June 2010, owns and operates more than 100 freestanding outpatient dialysis facilities throughout the United States. Prior to its acquisition by U.S. Renal Care, DCA was a publicly traded company based in Linthicum, Maryland.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
Epogen is an intravenous medication that is used to treat anemia, a common condition afflicting patients with end-stage renal disease. Epogen vials contain a small amount of medication in excess of the labeled amount, known as “overfill,” to compensate for medication that may remain in the vial after extraction and in the syringe upon administration. The United States contends that from January 2004 through May 2011, DCA billed for 10-11% overfill whenever it administered Epogen. However, because of the types of syringes DCA used, the United States alleges that DCA was not able to withdraw and administer 10-11% overfill every time it administered Epogen to patients, and thus submitted false claims to Medicare that overstated the amount of Epogen that it was actually providing.
“Medical care providers who submit false claims for services and products that were not actually delivered threaten the financial viability of the Medicare Trust Fund,” said Rod J. Rosenstein, U.S. Attorney for the District of Maryland.
“Today’s settlement shows that the Justice Department will aggressively pursue those health care providers who cut corners at the expense of the American taxpayers, such as by billing for items and services that were not provided,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “We will continue to protect scarce Medicare dollars.”
“Health providers billing for phantom services cheat taxpayers and cheat government programs straining to pay for vitally needed care,” said Nick DiGiulio, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services for the region including Maryland. “We will continue to work with the Department of Justice to ensure health professionals get reimbursed only for services they actually provide.”
The claims settled by this agreement are allegations, and there has been no determination of liability.
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 $10.2 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 $14.2 billion.
The allegations settled today arose from a lawsuit filed by Laura Davis against DCA under the qui tam, or whistleblower, provisions of the False Claims Act. United States ex rel. Laura Davis v. Dialysis Corporation of America, No. 1:08-cv-2829 (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. Ms. Davis will receive $1,314,000 as part of today’s settlement.
This case was handled by Assistant U.S. Attorney Roann Nichols of the U.S. Attorney’s Office for the District of Maryland and Trial Attorney Arthur Di Dio of the Civil Division of the Department of Justice, with assistance from the Office of Inspector General for the Department of Health and Human Services.
Bethesda Woman Sentenced to Prison for Bankruptcy FraudRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Diana J. Stout, age 56, of Bethesda, Maryland, today to 27 months in prison followed by three years of supervised release for making a false statement in bankruptcy, and concealment of assets, in connection with her Chapter 7 Bankruptcy case. Judge Motz also ordered Stout to pay restitution of $155,747.83.
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 the Greenbelt Office of the United States Trustee Program, the Department of Justice agency that supervises bankruptcy cases and trustees.
According to Stout’s plea agreement, from April 2010 through June 2011, Stout engaged in a scheme to defraud creditors in her Chapter 7 bankruptcy case, the trustee and the bankruptcy court. Stout filed a Chapter 7 bankruptcy petition on April 20, 2010. The Chapter 7 bankruptcy process is designed to provide a “fresh start” by liquidating all assets of the debtor and distributing the proceeds of the bankruptcy estate to creditors. A Chapter 7 bankruptcy trustee is appointed to gather these assets and generally act on behalf of unsecured creditors.
The filing of the bankruptcy petition prevented Stout’s former boyfriend from proceeding in a civil complaint he had filed against Stout and two of her children claiming that Stout had misappropriated more than $1 million of his assets for her own use or the use of her children, including for the purchase of property in South Carolina. Stout and her daughter had purchased the property, which was titled in both their names, in February 2008, with funds provided by Stout and her boyfriend. In July 2009, after Stout’s relationship with her boyfriend had ended, Stout transferred her interest in the property to her daughter for $1.
In order to conceal her assets, when Stout filed her bankruptcy petition she failed to disclose: that she had transferred the South Carolina property to her daughter; that she owned a diamond bracelet with 75 individually set diamonds in 18kt white gold; that she owned 797 shares of common stock in Eagle Bancorp Inc.; and that she owned a 1993 Toyota Supra and 2005 Chevrolet Avalanche SUV, in addition to the two vehicles listed. Between October 2010 and May 2011, Stout sold the Toyota Supra for $14,000; the stock for a total of $10,125.91; and the diamond bracelet for $85,000, none of which she reported to the bankruptcy trustee.
Stout’s bankruptcy estate included a home in Hagerstown, Maryland. In November 2010, Stout filed an insurance claim seeking reimbursement for necessary repairs to the property, resulting from water damage. She did not notify the Chapter 7 trustee that she was seeking to obtain insurance proceeds relating to property of the bankruptcy estate. After receiving the checks, which were issued jointly to her and the contractors who were to perform the work, Stout forged the signatures of the contractors, converted the proceeds of all three checks to her own use, and did not use any of the money to perform the needed repairs. The bankruptcy trustee was forced to use other assets of the bankruptcy estate to perform the needed repairs.
On February 13, 2011, the bankruptcy trustee initiated proceedings in the bankruptcy court which sought to recover Stout’s interest in the South Carolina property, alleging that the transfer was intended to defraud Stout’s creditors and that Stout did not receive reasonably equivalent value for the transfer. Shortly thereafter, Stout signed and had a revised deed filed which falsely stated that the property had been transferred to her daughter in exchange for $75,000 paid to Stout. Stout then filed an “Answer” to the trustee’s complaint, which she signed on behalf of her daughter, falsely stating that her daughter had paid Stout $75,000 for her interest in the South Carolina property. Stout knew that the statements were false and she admitted that she made them with the intent to defeat the Chapter 7 trustee’s legal action and to defraud her creditors.
Between March 15 and March 30, 2011, Stout also filed numerous false pleadings purporting to withdraw a claim for payment that had been filed by Stout’s creditors, and which bore either typewritten or forged handwritten signatures purporting to be from the named creditor. In fact, the creditor was not aware of the filing and had not signed such a filing. Many of the pleadings also contained a fraudulent certificate of service bearing the typewritten signature of Stout’s bankruptcy attorney, who in fact did not prepare or serve these pleadings, or authorize Stout to sign them on his behalf.
United States Attorney Rod J. Rosenstein praised the FBI and the U.S. Trustee’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorneys Liza Collery of the U.S. Justice Department, Criminal Division, Appellate Section and Ann O’Brien of the U.S. Department of Justice Antitrust Division, who prosecuted the case.
Laurel Man Sentenced to 20 Years in Prison for Producing Child PornographyRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Frank Alan Klukosky, age 43, of Laurel, Maryland, today to 20 years in prison, followed by lifetime supervised release, for producing child pornography. Chief Judge Chasanow also ordered that upon his release from prison Klukosky must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; and Stephen Niemczak Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Computer Forensics and Investigative Research Branch.
According to Klukosky’s plea agreement, in June 2012, a federal probation officer discovered images and videos of child pornography on the cell phone of a registered sex offender on federal probation. Further investigation revealed that on June 24, 2012 Klukosky drove to the registered sex offender’s home in Laurel with an SD card that contained at least 120 images and six videos of child pornography. Klukosky then helped the registered sex offender load those images and videos onto his computer and cell phone.
On October 23, 2012 the FBI executed a search warrant at Klukosky’s home and seized video cameras, key fob cameras, computers, an external hard drive and other computer accessories. The external hard drive contained approximately 2,000 images and 16 videos of child pornography, including 11 videos depicting a 13 year old girl in a bathroom. The videos were taken with hidden key fob cameras. The videos were recorded on at least 10 occasions and depict the victim in stages of undress. In at least one of the videos, Klukosky is recorded while setting up or taking down the camera.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from 10 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.
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, the Laurel and Howard County Police Departments and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who prosecuted the case.
Laurel Man Sentenced to 20 Years in Prison for Producing Child PornographyRead the Press Release
Secretly Recorded a 13 Year Old Girl in a Bathroom
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Frank Alan Klukosky, age 43, of Laurel, Maryland, today to 20 years in prison, followed by lifetime supervised release, for producing child pornography. Chief Judge Chasanow also ordered that upon his release from prison Klukosky must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; and Stephen Niemczak Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Computer Forensics and Investigative Research Branch.
According to Klukosky’s plea agreement, in June 2012, a federal probation officer discovered images and videos of child pornography on the cell phone of a registered sex offender on federal probation. Further investigation revealed that on June 24, 2012 Klukosky drove to the registered sex offender’s home in Laurel with an SD card that contained at least 120 images and six videos of child pornography. Klukosky then helped the registered sex offender load those images and videos onto his computer and cell phone.
On October 23, 2012 the FBI executed a search warrant at Klukosky’s home and seized video cameras, key fob cameras, computers, an external hard drive and other computer accessories. The external hard drive contained approximately 2,000 images and 16 videos of child pornography, including 11 videos depicting a 13 year old girl in a bathroom. The videos were taken with hidden key fob cameras. The videos were recorded on at least 10 occasions and depict the victim in stages of undress. In at least one of the videos, Klukosky is recorded while setting up or taking down the camera.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from 10 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.
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, the Laurel and Howard County Police Departments and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who prosecuted the case.
Member of Marijuana Trafficking Organization Sentenced to 20 Years in Prison for Murder in Aid of RacketeeringRead the Press Release
Drug Courier Kidnapped and Dismembered in Bathtub
Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Hubert Downer, a/k/a “Doc, age 52, of Jamaica, today to 20 years in prison followed by three years of supervised release for murder in aid of racketeering.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Today’s sentence of Hubert Downer for murder in aid of racketeering is the culmination of a long-term investigation for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and three countries,” said William Winter, special agent in charge of HSI Baltimore. “HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities. HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to his plea agreement and court documents, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. Downer helped distribute the marijuana for Brown. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
On December 16, 2009, Jean Brown and Carl Smith met with Michael Knight, another member of the organization, in Maryland. Knight was holding approximately $1,000,000 in drug proceeds for Brown, but when they came to collect the money, approximately $250,000 was missing.
Brown, Smith and Dean Myrie took Knight, bound with a telephone cable, to an apartment in White Marsh, Maryland. Brown assaulted and interrogated Knight. Subsequently, Brown and Smith got Downer and Peter Blake, another member of the drug organization, to help torture Knight to reveal the location of the money. When Knight did not provide the location of the money, Brown ordered Downer and Blake to kill Knight. Downer and Blake took a large knife into the bathroom where Knight was being held and Blake stabbed him to death in the bathtub with Downer’s help.
Over the next several days, Downer, Brown and Blake cut off Knight’s legs with a power saw and disposed of them in a dumpster. Downer, Blake and Myrie put the remainder of Knight’s body in a large cardboard box and disposed of it in another dumpster.
Jean Brown, age 43, of Jamaica, was convicted by a federal jury at trial of the drug conspiracy, kidnapping and murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering. Judge Quarles sentenced Brown to life in prison. Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Michael Reid, age 51, and Peter Blake, age 55, both of Jamaica, have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Carl Smith was killed in 2010.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Member of Marijuana Trafficking Organization Sentenced to 20 Years in Prison for Murder in Aid of RacketeeringRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Hubert Downer, a/k/a “Doc, age 52, of Jamaica, today to 20 years in prison followed by three years of supervised release for murder in aid of racketeering.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Today’s sentence of Hubert Downer for murder in aid of racketeering is the culmination of a long-term investigation for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and three countries,” said William Winter, special agent in charge of HSI Baltimore. “HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities. HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to his plea agreement and court documents, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. Downer helped distribute the marijuana for Brown. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
On December 16, 2009, Jean Brown and Carl Smith met with Michael Knight, another member of the organization, in Maryland. Knight was holding approximately $1,000,000 in drug proceeds for Brown, but when they came to collect the money, approximately $250,000 was missing.
Brown, Smith and Dean Myrie took Knight, bound with a telephone cable, to an apartment in White Marsh, Maryland. Brown assaulted and interrogated Knight. Subsequently, Brown and Smith got Downer and Peter Blake, another member of the drug organization, to help torture Knight to reveal the location of the money. When Knight did not provide the location of the money, Brown ordered Downer and Blake to kill Knight. Downer and Blake took a large knife into the bathroom where Knight was being held and Blake stabbed him to death in the bathtub with Downer’s help.
Over the next several days, Downer, Brown and Blake cut off Knight’s legs with a power saw and disposed of them in a dumpster. Downer, Blake and Myrie put the remainder of Knight’s body in a large cardboard box and disposed of it in another dumpster.
Jean Brown, age 43, of Jamaica, was convicted by a federal jury at trial of the drug conspiracy, kidnapping and murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering. Judge Quarles sentenced Brown to life in prison. Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Michael Reid, age 51, and Peter Blake, age 55, both of Jamaica, have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Carl Smith was killed in 2010.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Member of Marijuana Trafficking Organization Sentenced to 20 Years in Prison for Murder in Aid of RacketeeringRead the Press Release
Drug Courier Kidnapped and Dismembered in Bathtub
Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Hubert Downer, a/k/a “Doc, age 52, of Jamaica, today to 20 years in prison followed by three years of supervised release for murder in aid of racketeering.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Today’s sentence of Hubert Downer for murder in aid of racketeering is the culmination of a long-term investigation for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and three countries,” said William Winter, special agent in charge of HSI Baltimore. “HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities. HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to his plea agreement and court documents, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. Downer helped distribute the marijuana for Brown. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
On December 16, 2009, Jean Brown and Carl Smith met with Michael Knight, another member of the organization, in Maryland. Knight was holding approximately $1,000,000 in drug proceeds for Brown, but when they came to collect the money, approximately $250,000 was missing.
Brown, Smith and Dean Myrie took Knight, bound with a telephone cable, to an apartment in White Marsh, Maryland. Brown assaulted and interrogated Knight. Subsequently, Brown and Smith got Downer and Peter Blake, another member of the drug organization, to help torture Knight to reveal the location of the money. When Knight did not provide the location of the money, Brown ordered Downer and Blake to kill Knight. Downer and Blake took a large knife into the bathroom where Knight was being held and Blake stabbed him to death in the bathtub with Downer’s help.
Over the next several days, Downer, Brown and Blake cut off Knight’s legs with a power saw and disposed of them in a dumpster. Downer, Blake and Myrie put the remainder of Knight’s body in a large cardboard box and disposed of it in another dumpster.
Jean Brown, age 43, of Jamaica, was convicted by a federal jury at trial of the drug conspiracy, kidnapping and murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering. Judge Quarles sentenced Brown to life in prison. Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Michael Reid, age 51, and Peter Blake, age 55, both of Jamaica, have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Carl Smith was killed in 2010.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Upper Marlboro Drug Dealer Exiled to over 15 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Donald Hunter, a/k/a Pep, age 48, of Upper Marlboro, Maryland, today to 188 months in prison followed by five years of supervised release for conspiracy to distribute phencyclidine (PCP), cocaine base and heroin; and being a felon in possession of a gun. Judge Titus found that Hunter was an armed career criminal based on four previous drug convictions.
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 his guilty plea, beginning in June 2011, Hunter, Wayne Glymph, Samuel Braxton and other conspirators sold PCP, heroin and crack to drug customers in Prince George's County, Maryland, and in the Washington, D.C. metropolitan area. Hunter and others used Braxton’s apartment and a bowling alley in Temple Hills, Maryland to store and distribute narcotics. Hunter prepared, packaged and delivered the drugs to customers on Braxton’s behalf, and collected drug debts from customers. Hunter was responsible for distributing between one and three kilograms of PCP, between 28 and 112 grams of crack, and between 100 and 400 grams of heroin.
On February 23, 2011, law enforcement executed a search warrant at Hunter’s residence and seized 8.5 grams of heroin, plastic baggies with cocaine residue, assorted drug paraphernalia, and a loaded revolver. Hunter had previously been convicted of a felony and was prohibited from possessing a gun.
Samuel Braxton, a/k/a Fats, age 44, of Temple Hills and Wayne Glymph, age 46, of Fort Washington, Maryland, previously pleaded guilty to their participation in the conspiracy, and were sentenced to 27 years and 10 years in prison, respectively. A total of 10 defendants have pleaded guilty to date to charges arising from the drug conspiracy.
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 and Steven E. Swaney, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Montgomery County Man Faces Federal Indictment for Attempted Sex Trafficking and Interstate Transportation for ProstitutionRead the Press Release
Greenbelt, Maryland – A federal grand jury today returned an indictment charging Jean Claude Roy, a/k/a “Dredd the Don,” and “Dreddy,” age 30, of Germantown, Maryland, with attempted sex trafficking by force, fraud and coercion; and interstate transportation for prostitution.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Assistant Attorney General for the Department of Justice Civil Rights Division Roy L. Austin, Jr.; 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.
“Protecting our communities from those who engage in human trafficking is a top priority for ICE Homeland Security Investigations,” said William Winter, special agent in charge of HSI Baltimore. "As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
According to the six-count indictment, between December 9 and December 25, 2012, Roy attempted to force three individuals to engage in commercial sex acts, from which Roy benefitted financially. Further, the indictment alleges that Roy transported the three individuals across state lines to engage in prostitution and sexual activity.
Roy faces a minimum mandatory sentence of 15 years in prison and a maximum of life in prison for each of three counts on sex trafficking; and a maximum of 10 years in prison for each of three counts of interstate transportation for prostitution. An initial appearance has not yet been scheduled in U.S. District Court in Greenbelt. Roy is currently in state custody on related charges.
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 investigated by 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.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, and Trial Attorney William E. Nolan of the U.S. Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.
Lusby Man Sentenced to 6 Years in Prison for Possession and Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Shawn Fred Crawford, age 48, of Lusby, Maryland, today to six years in prison followed by 10 years of supervised release for possession and distribution of child pornography. Judge Titus ordered that upon his release from prison, Crawford 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 and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, on July 25, 2012, Crawford distributed six images and 16 videos depicting children engaged in sexually explicit conduct. Following its investigation, the FBI executed a search warrant at Crawford’s home on September 18, 2012 and seized computers and other digital media containing approximately 4,700 images and 1,100 videos of children engaged in sexually explicit conduct, including children under the age of 12.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), with members from 10 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 and abused children.
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 for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Drug Trafficker in Eastern Shore Ring Sentenced to 16 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Maurice Kenneth Hardy, age 37, of Bridgeville, Delaware, today to 16 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; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; 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.
According to his guilty plea, from 2009 until his arrest on June 29, 2011, Hardy conspired to sell heroin and cocaine with, or distributed the drugs to, Tereek Nutter and others. Austin Roberts was his primary source of supply. For example, on May 11, 2011, Hardy indicated in a telephone call with a co-conspirator that Roberts would be supplying him with seven kilograms of cocaine for $31,500 per kilogram. The next day in Salisbury, Maryland, Andrew 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.
On June 29, 2011, after Hardy obtained 1.027 kilograms of cocaine from a co-conspirator, law enforcement stopped Hardy’s car and seized the cocaine. Law enforcement also executed a search warrant at Hardy’s home and a stash house used by Hardy, and seized a loaded handgun, ammunition, a digital scale, over $10,000, 82.4 grams of cocaine, 41.7 grams of heroin, a pocket scale and a large cocaine press.
During the course of the conspiracy, Hardy and his co-conspirators distributed over 15 kilograms of cocaine, a kilogram of heroin and a quantity of cocaine base.
Austin Roberts, III, age 37, formerly of Elkridge, Maryland; Andrew Jackson, age 39, of Baltimore, 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 in prison and scheduled Roberts’ sentencing for August 9, 2013 at 2:00 p.m.
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.
DMI Gang Member Exiled to 16 Years in Prison for Racketeering, Including a MurderRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Gregory Cook, age 37, of Baltimore, Maryland, today to 16 years in prison, followed by five years of supervised release, for conspiracy to participate in a violent racketeering enterprise known as the Dead Man Incorporated (DMI).
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 James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; Anne Arundel County Police Chief Larry W. Tolliver; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Gregg L. Bernstein; and Anne Arundel County State’s Attorney Frank R. Weathersbee.
According to court documents, DMI was founded originally in 2000 as a prison gang in Maryland, and at its inception was closely allied to the Black Guerilla Family (BGF), another prison gang. By 2006, DMI expanded its membership by recruiting members outside prison, including women.
According to Cook’s plea agreement, he was a member of DMI and in the summer of 2009 was in the Brooklyn, Maryland unit of the gang. Cook admitted that he trafficked in cocaine, crack, marijuana and prescription pills with other DMI members. In August and September 2009, one of Cook’s co-conspirators ordered a “hit” on an individual who owed him a drug debt. DMI member Walter Milewski was recruited to commit the murder, but killed the wrong person. As dictated by DMI rules, Cook and his co-conspirator sought the permission of a DMI “Elder” to murder Milewski, because they believed he was a risk to reveal what happened to police and as punishment for killing the wrong man. The murder was authorized and Cook was notified by a call to his cell phone when Milewski was killed.
Two of the founders of DMI, Perry Roark, a/k/a Rock, “Pops,” “Slim,” “Saho the Ghost,” age 42, and James Sweeney, age 36, of Baltimore, previously pleaded guilty and were both sentenced to life in prison.
Mr. Rosenstein praised the FBI, ATF, Maryland Department of Public Safety and Correctional Services; Baltimore County Police Department; Anne Arundel County Police Department; Baltimore City Police Department; the Maryland State Police; Baltimore County State’s Attorney’s Office; Baltimore City State’s Attorney’s Office; and Anne Arundel County State’s Attorney’s Office for their assistance in this investigation and prosecution.
United States Attorney Rod J. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Carroll County Company Founder Pleads Guilty to $1.9 Million Securities FraudRead the Press Release
Baltimore, Maryland - John F. “Jef” Curran, III, age 42, of Westminster, Maryland pleaded guilty today to securities fraud, in connection with the sale of $1.9 million worth of stock in his company, Gargoyles, Inc.
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 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.
As part of his plea, Curran is obligated to pay restitution up to the amount of $1,963,065, to refund to any investor who so wishes, the money they invested in Gargoyles, Inc. Investors will be notified of the option of receiving a refund, and will have 30 days from the receipt of the notice to make the refund request.
As part of his plea agreement, and to resolve In the Matter of John Francis Curran, III and Gargoyles, Inc., Case No. 2010-0184, Curran and Gargoyles, Inc. agree to the entry of a consent order with the Maryland Securities Division of the Office of the Maryland Attorney General prohibiting Curran from violating the Maryland Securities Act and permanently barring Curran from selling or offering for sale securities in Maryland.
Curran faces a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 4, 2013, at 3:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the 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 is prosecuting the case.
Eastern Shore Drug Distributor Pleads GuiltyRead the Press Release
Baltimore, Maryland - Austin Roberts, III, age 37, formerly of Elkridge, Maryland, pleaded guilty on May 10, 2013 to conspiring to distribute heroin, cocaine and cocaine base (crack cocaine). Roberts remains detained pending sentencing.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; 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.
According to his guilty plea, from 2007 until his arrest in December 2012, Roberts conspired to sell heroin and cocaine with 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, a kilogram of heroin and a quantity of cocaine base.
For well 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 Roberts’ vehicle. 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 stopped Roberts’ vehicle and Roberts again escaped on foot. Officers seized $29,000 from a hidden compartment in the vehicle. Roberts was arrested in San Diego, California on December 4, 2012.
Roberts and the government have agreed that if the Court accepts the plea agreement Roberts will be sentenced to 19 years in prison. U.S. District Judge Ellen L. Hollander scheduled sentencing for August 9, 2013, at 2:00 p.m.
Andrew Jackson, age 39, of Baltimore, Maryland, Maurice Kenneth Hardy, age 37, of Nanticoke, Maryland, and Tereek Nutter, age 29, 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 scheduled Hardy’s sentencing for May 14, 2013.
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.