District of Maryland

Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced former IRS employee Antonio Keith Willabus, age 47, of Laurel, Maryland today to four months in prison, followed by three years of supervised release, for falsely certifying on his time and attendance records that he worked 353.1 hours in 2012 when in fact he had not. Judge Russell also ordered Willabus to serve 400 hours of community service and to pay restitution of $24,427.45.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Robert Geary of the Treasury Inspector General for Tax Administration.

According to his plea agreement, Willabus was a full time management and program analyst with the information technology service of the IRS. His office was located in New Carrollton, Maryland. During part of 2012, Willabus was permitted to work from home on Mondays and Tuesdays.

In January 2012, the Treasury Inspector General for Tax Administration(TIGTA) began investigating Willabus’ time and attendance. The personal recording card Willabus was required to use to record his entry and exit at his office showed that Willabus rarely spent more than a few hours in the office on the days he was supposed to be there. Surveillance video of the building lobby showed that Willabus’ entries and exits were infrequent. People in adjacent offices rarely ever saw Willabus. His supervisors and coworkers frequently could not find Willabus, and were frustrated and perplexed when he did not respond to their emails during working hours.

On Monday and Tuesday of May 7 and 8, 2012, when Willabus was supposed to be working from home, TIGTA agents observed Willabus leave his house at 8:15 a.m. and then spend the day driving to locations in Baltimore. Agents believed Willabus was preparing to set up a bar business in Baltimore. He was seen moving a freezer from his truck into a bar building. Willabus did not return home or go into his office during his regular working hours on either day. On May 11, 2012, he entered data into his office time and attendance system claiming that he worked full days on May 7 and 8.

Cell site records from January through May 8, 2012 showed that Willabus frequently made calls on his cell phone from locations other than his home or office during the hours that he was supposed to be working. For work days between January 13 and June 8, 2012, Willabus falsely claimed to be working 353.1 hours that he did not actually work, for which he received a salary of $24,427.45. 

United States Attorney Rod J. Rosenstein praised the Treasury Inspector General for Tax Administration for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman, who is prosecuting the case.

Baltimore, Maryland – Former Baltimore Police officer Keith Nowlin, age 39, of Laurel, Maryland pleaded guilty today to accessing a protected computer without authorization, related to his obtaining motor vehicle information for a drug dealer.

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; and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to his plea agreement, on June 18, 2010, Nowlin exchanged text messages with Marvin Mobley in which Mobley requested information on a specific motor vehicle.  At the time, Nowlin was a Baltimore Police officer assigned to the Northeast District and Mobley, whose phone was part of a court-ordered wiretap, was under investigation for drug trafficking.  In response to Mobley’s request, Nowlin responded “No problem anything for u.”  Nowlin, who was not on duty at the time, requested the information through a Baltimore Police sergeant, who regularly makes such inquiries on behalf of officers for law enforcement purposes.  The sergeant believed that Nowlin’s request was in furtherance of his police duties.  Later that day, Nowlin and Mobley exchanged text messages and Nowlin provided Mobley with the identity of the vehicle’s owner.  Nowlin improperly obtained the information using a protected computer network, which law enforcement agents are authorized to access for legitimate law enforcement purposes.

Nowlin faces a maximum sentence of one year in prison and a fine of $100,000.  U.S. District Judge James K. Bredar scheduled sentencing for August 1, 2013 at 2:00 p.m.

Marvin Mobley previously pleaded guilty to possession with intent to distribute cocaine and crack cocaine and was sentenced to 10 years in prison.

United States Attorney Rod J. Rosenstein praised the DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who is prosecuting the case.

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Alexis Brett Travers, age 38, of Baltimore, Maryland, today to three years in prison followed by three years of supervised release for two counts of aiding in the preparation of false tax returns and aggravated identity theft. Judge Blake also entered an order that Travers pay $98,189 in restitution to the IRS for three years of personal taxes that she failed to pay, plus interest.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“Return preparer fraud and identity theft are devastating for the victims, threaten the veracity of our tax system and cause tremendous financial hardship,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Investigating refund fraud and identity theft is a top priority for IRS Criminal Investigation and we, along with our partners at the Department of Justice, will continue to pursue the criminals who commit these crimes and steal from innocent taxpayers and the U.S. Treasury."

According to her guilty plea, Travers owned ATB Tax Prep and Consulting Service which she operated out of her homes in Gwynn Oak, Maryland, and most recently, Baltimore. From 2006 to 2009, Travers concealed her identity as the paid tax preparer by not listing her or her company’s name on the federal income tax forms she filed, and by filing the forms electronically without obtaining a provider’s electronic filing identification number.

Travers filed at least 26 tax returns containing false business losses for taxpayers who did not operate a business, resulting in a tax loss of $137,406. Travers obtained a fee for her services from the deposit by the IRS of the tax refund into a bank account she controlled. Her fee was sometimes as high as $1,000 per taxpayer.

Travers failed to report the fees on her 2006, 2007 and 2008 tax returns, resulting in an additional tax loss of at least $87,000 for those three years.

Additionally, the tax return filed by Travers for a client, G.A., for tax year 2008 contained a false claim for the earned income credit. Travers stole personal identifying information, including year of birth and social security number, from another client to use in G.A.’s tax return in order to obtain a greater tax refund for G.A. The tax refund was then deposited into Travers’ bank account.

The total tax loss in this case is $224,000.

United States Attorney Rod J. Rosenstein commended the IRS Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney David I. Sharfstein, who prosecuted the case.

 

Defendant Convicted of the Murder in State Court

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Antonio Edwards, age 29, of Baltimore, Maryland, today to 278 months in prison followed by five years of supervised release for being a felon in possession of a firearm. Judge Motz found that Edwards was an armed career criminal based on five previous convictions for possession with intent to distribute narcotics.

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 Edwards' plea agreement, Edwards was identified by eyewitnesses as the person who murdered Kinlaw Jones on December 26, 2009, in the 1800 block of East Pratt Street, shooting him multiple times.  Police recovered eight .45 caliber shell casings from the scene, two fired bullets from the victim’s clothing and four additional. .45 caliber fired bullets were recovered during the autopsy.  On January 2, 2010, police received an anonymous tip that Edwards, who had been arrested, may have had a weapon at 3039 Kenyon Avenue in Baltimore.  Police learned that Edwards had rented a bedroom from the owner of 3039 Kenyon Avenue, who told police that Edwards had paid rent of $150 for the month of December and that he had stayed there as recently as the week of December 25, 2009. 

A search warrant was executed for Edwards’ bedroom in the Kenyon Avenue home on January 7, 2010, and police recovered paperwork in Edwards’ name, a baseball hat, a black beanie and photos of Edwards.  From the ceiling, police recovered a .45 caliber semi-automatic pistol, a holster, a box of .45 caliber ammunition, and a clear bag with rubber gloves inside. Ballistics analysis confirmed that the shell casings recovered from the scene of the murder and from the victim were fired by the .45 caliber semi-automatic pistol recovered from the room Edwards was renting.  Forensic analysis also confirmed that Edwards’ DNA was present on the grip of the gun, the holster, rubber gloves, baseball hat and black beanie.

As part of his federal plea agreement, Edwards pleaded guilty to first degree murder and use of a handgun in the commission of a crime of violence in Baltimore City Circuit Court, and is set to be sentenced in that case.  Judge Motz ordered that Edwards’ federal sentence will be served concurrent to this state sentence.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office, and especially Assistant State’s Attorney Christopher Mason, for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant United States Attorney Michael C. Hanlon, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Cary Anderson, age 33, of Dameron, Maryland, today to 25 years in prison, followed by lifetime supervised release, for sexually exploiting minors to produce child pornography. Judge Motz also ordered, that upon his release from prison, Anderson 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; St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.

According to that statement of facts that was part of his guilty plea, Anderson began sexually molesting a young girl when she was 11 years old. From February 17 to February 24, 2012, Anderson sexually exploited the girl, who was then 13 years old, and produced images documenting the abuse. Further, on February 24, 2012, Anderson also sexually exploited a 15 year old girl he met on the internet and brought to his home, and produced visual depictions documenting the abuse.

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, St. Mary’s County Bureau of Criminal Investigations and the St. Mary’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas, assigned from the U.S. Department of Justice, Child Exploitation and Obscenity Section, who prosecuted the case.

Charges the Result of Investigation by the FBI’s Cross Border Task Force

Greenbelt, Maryland - A federal grand jury has returned a superseding indictment today charging five men in connection with a series of armed robberies, including an armored car robbery and a carjacking in which a victim was shot.

The following defendants are charged in the indictment:

Tonnie Floyd, age 21.;

Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 22;

Anthony Terrell Cannon, age 23.;

Keith Willie Reed, age 23; and

Tobias Richard Dyer, age 21. 

Floyd, Freeman, Cannon and Reed are all from Washington, D.C.  Dyer is from Upper Marlboro, Maryland.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and by Chief Alan Goldberg of the Takoma Park Police Department.

The 10-count indictment alleges that between October 26 and December 11, 2012, the defendants planned and organized armed robberies and other crimes of violence, used stolen vehicles in the commission of the crimes and attempted to conceal their identities.

Specifically, the indictment alleges that on October 26, 2012, after obtaining a stolen vehicle and arming themselves, Floyd, Freeman and Cannon robbed a Garda employee at gunpoint outside a store in the 1300 block of University Boulevard in Takoma Park. During the robbery, the defendants stole approximately $3,911 and fired a gun.  They attempted to escape in the stolen vehicle, but were unable to do so when the car was disabled.  The defendants then allegedly carjacked another vehicle, shooting the driver.  According to the indictment, Floyd, Freeman and Cannon fled into Washington, D.C., where they set the vehicle on fire and continued their escape.

On December 11, 2012, Reed, Dyer and Cannon allegedly obtained stolen vehicles and armed themselves, then attempted to rob the BB&T Bank on S. Glebe Road in Arlington, Virginia.  The indictment alleges that Reed, Dyer and Cannon then robbed a Loomis employee at gunpoint outside a store in the 6300 block of Linvingston Road in Oxon Hill, Maryland.  After shooting the employee, the defendants allegedly stole $2,350 and the .40 caliber semi-automatic handgun belonging to the Loomis employee, then took the stolen vehicles into Washington, D.C., where they were abandoned.

The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each count of armed robbery; a maximum of life in prison for using, carrying and discharging a weapon during a crime of violence; and a maximum of 10 years in prison for interstate transportation of a stolen vehicle.  Floyd, Freeman and Cannon also face a maximum of 25 years in prison for carjacking. An initial appearance has been scheduled for Freeman on April 16, 2013, in U.S. District Court in Greenbelt. Initial appearances for the remaining defendants have not yet been scheduled. The defendants are detained pending trial.

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

United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department and the Takoma Park Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Steven E. Swaney, who are prosecuting the case.

Baltimore, Maryland – Jonas Purisch, age 39, of Perry Hall, Maryland pleaded guilty today to subscribing to a false tax return and failing to file a tax return.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to his plea agreement, Purisch owned and operated JP Staffing, Inc., a company based in Baltimore which provided temporary factory workers. JP Staffing paid its employees in cash. Purisch earned significant amounts of revenue from his operation of the business.  In order to avoid paying income taxes, Purisch deposited his income from the business into one of his two personal bank accounts.

In the years 2006 and 2007, Purisch filed individual federal income tax returns which understated his income.  Purisch falsely stated in his 2006 tax return that his income was $52,870, when in fact he deposited $276,572 of income into his personal bank accounts.  Purisch’s unpaid personal income tax for 2006 was $17,851.  Purisch falsely stated on his 2007 tax return that his income was $4,000, when in fact he earned $375,158, resulting in personal income tax liability of $48,410 for 2007.

Purisch deposited $457,499 of income into his personal bank accounts in 2008, and deposited $280,426 in 2009, but never filed a 2008 or 2009 tax return.  Purisch’s unpaid personal income tax was $73,836 in 2008, and $41,100 in 2009.

The total tax loss in this case including interest on unpaid taxes is $210,019.04.

Purisch faces a maximum sentence of three years in prison and a fine of $250,000 for subscribing to a false tax return, and one year in prison and $100,000 fine for failing to file a tax return.  Purisch will be required to pay restitution of $210,019.04 to the IRS, including interest.  U.S. District Judge James K. Bredar scheduled sentencing for June 24, 2013, at 10:00 a.m.

United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Peter M. Nothstein, who is prosecuting the case.

Attorney Used Her Law Firm and Settlement Company to Facilitate Fraudulent Loan Closings

Baltimore, Maryland - Seung E. Oh, a/k/a Sandy Oh, age 44, of Great Falls, Virginia, pleaded guilty today to conspiracy to commit bank fraud and money laundering, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

According to her plea agreement, Oh is an attorney with offices in Annandale, Virginia and the owner operator of Washington Settlement Group (WSG), a title company located in Annandale. In about 1998, Oh met Joon Park and his brother, Loren Park, who owned and operated Jade Capital, a loan brokerage company. Oh knew that Jade Capital specialized in securing loans for individuals interested in purchasing and refinancing small businesses in the Mid-Atlantic area, some of which were settled through Oh’s law firm and WSG. Oh knew that the Parks encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.

Over the course of Oh’s relationship with Joon and Loren Park, and to foster more business with their company, Oh agreed to use her settlement company and law firm to facilitate loan closings for deals that would otherwise fail to meet the lending parameters of the banks making the loans, including banks authorized to lend under SBA’s Section 7(a) program. Oh helped the Parks misrepresent to the banks and to the SBA the true amount of money involved in the transactions and/or the true names of the parties taking part in the transactions.

To accomplish this, Oh sometimes agreed to “netting” a transaction, whereby the Parks would negotiate a sale price with the seller that was less than the price listed on the sales contract submitted to the bank, and/or they would increase the loan by the amount needed for the down payment. In so doing, they reduced the amount of money that the buyer actually had to inject into the deal and concealed that the buyer did not have sufficient equity to qualify for the loan. To conceal these arrangements, Oh completed the settlement sheets as if the buyer had made the required cash injection and the seller had received the full contract price.

Another way that Oh helped to facilitate the loan closing for Jade Capital was when she “fronted” the buyer’s cash injection. Oh temporarily loaned part of the buyer’s up-front payment by taking other people’s money out of the escrow accounts of either her law firm or her title company. Joon and Loren Park then paid back the fronted money after the settlement, usually from their share of the proceeds from that deal or a later one. As with the “netting” scheme, the settlement sheets and all other related documents for the “fronted” deal would falsely reflect that the buyer injected his own money into the transaction in accordance with the agreed upon financing terms established by the lending institution.

Oh faces a maximum penalty of 30 years in prison for the bank fraud conspiracy; and a maximum of 20 years in prison for money laundering. As part of her plea agreement, Oh will be required to pay a money judgment of $11,832,000 and forfeit all the property involved in the offense. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for July 9, 2013 at 1:00 p.m.

Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 43, of Falls Church, Virginia, pleaded guilty and is scheduled to be sentenced on May 28, 2013 at 1:00 p.m. Nick Park, a/k/a Nochol Park, age 46, of McLean, Virginia, was sentenced to 33 months in prison; and Joo Hyuk “John” Lee, age 39, of Richmond, Virginia, and Sang Hyun Kim, age 35, of Fairfax, Virginia, were each sentenced to three years in prison, for conspiracy to commit bank fraud. Kim’s wife, In Jung Ham, age 30, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Judge Quarles ordered Lee to pay restitution of $1,900,325 and ordered Ham to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively.

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 SBA Office of Inspector General, U.S. Postal Inspection Service and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who are prosecuting the case.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Derek Lamarr Gaines, age 25, of Landover, Maryland, today to 10 years in prison followed by three years of supervised release for 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; Chief Buddy Robshaw of the Cheverly Police Department; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.

According to Gaines’ plea agreement, on August 12, 2011, Gaines was seated in the back seat passenger side of a vehicle being driven by Jonathan Jerome Winston, with a third person in the front passenger seat.  A law enforcement officer pulled the vehicle over for a traffic stop and detected the odor of phencyclidine (PCP) coming from the rear passenger compartment.  The officer ordered Gaines out of the vehicle. As Gaines stepped out of the car he ran away, throwing a handgun that was in his waistband.  Officers arrested Gaines and recovered a 9mm semi-automatic handgun with one bullet in the chamber and an extended magazine containing 29 rounds of ammunition; a vial of PCP; and a black ski mask.

When Gaines ran away, the front seat passenger also tried to flee and Winston attempted to drive away.  Both were caught by police and placed under arrest.  A black ski mask was recovered from Winston’s pocket.  A search of the vehicle recovered two additional guns - a 9mm semi-automatic handgun and a .45 caliber machine gun with a 12.5 inch magazine loaded with 38 rounds of .45 caliber ammunition; and a third black ski mask.

Additional investigation revealed that the two 9mm firearms were previously reported stolen.

Jonathan Jerome Winston, age 23, of Washington, D.C., pleaded guilty and was sentenced to 71 months in prison.

United States Attorney Rod J. Rosenstein commended the ATF, Cheverly Police Department, and the Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau, who prosecuted the case.

Baltimore, Maryland – Cora Carper, age 32, of Churchton, Maryland, pleaded guilty today to embezzlement from a labor union, in connection with a scheme to steal at least $200,000 from the union’s political action committee.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor – Management Standards.

According to her plea, Carper was a secretary with the International Association of Heat and Frost Insulators and Allied Workers, assigned to perform clerical tasks associated with the operation of the Insulators Political Action Committee (PAC) fund.  Carper’s duties included processing disbursement requests. Disbursement requests had to be made in writing and only the Insulators General President, General Secretary-Treasurer, Political Director and officers of the Insulators local unions had authority to request disbursements from the PAC fund.  Once Carper received a written request for disbursement from an appropriate official, she was supposed to print a check from the PAC fund account that contained the electronic signatures of the Insulators General President and General Secretary-Treasurer and forward that check to the recipient.  Carper also entered PAC fund receipts and deposits into a computerized ledger, made deposits in the PAC fund, and received and reconciled monthly PAC fund bank statements against the electronic ledger.

Carper admits that between June 2009 and February 2011, she printed more than 300 checks totaling approximately $502,586, from the PAC fund account made payable to “cash,” “cash reimbursement,” or “petty cash.”  Union officials stated that Carper printed and cashed the checks, without authorization, often cashing multiple PAC fund checks the same day. Carper endorsed the back of all but 13 of the more than 300 checks she cashed. During the time of the embezzlement Carper deposited at least $180,000 into her personal bank accounts.  To cover up her embezzlement, Carper made false entries in the computerized ledger indicating that the checks were written for donations to political candidates, expense reimbursements or expenses for conferences.  In fact, the checks were made payable to cash, cashed by Carper and then used for her personal benefit.

In early 2011 Carper was confronted about her embezzlement by the Insulators General President.  Carper admitted that she had taken $7,300, but denied further embezzlement.  Her family paid the Insulators $7,300.  A subsequent internal investigation by the Insulators and by the Department of Labor, Office of Labor - Management Standards revealed that Carper’s embezzlement far exceeded her limited admission, with $502,586 in checks attributed to Carper’s embezzlement.

Carper faces a maximum sentence of five years in prison and a fine of $250,000.  As part of her plea agreement, Carper will be required to pay restitution in the full amount of the victim’s losses, which will be determined at sentencing.  U.S. District Judge George L. Russell III has scheduled Carper’s sentencing for June 4, 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 U.S. Department of Labor, Office of Labor - Management Standards for its work in the investigation.  Mr. Rosenstein praised Assistant U.S. Attorney Kristi N. O’Malley, who is prosecuting the case.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Jamal Antwon Holder, age 23, of Capitol Heights, Maryland, today to 125 months in prison, followed by three years of supervised release, on three counts of being a felon in possession of a gun.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge 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 Holder's plea agreement, on November 15, 2011, Holder sold a 12 gauge sawed-off shotgun to a law enforcement source.  On November 16, 2011, Holder sold a bolt action rifle and a 30/30 lever action rifle to the law enforcement source. Finally, on November 17, 2011, Holder sold a .38 caliber revolver to the law enforcement source.  All of these transactions took place at an apartment complex in Capitol Heights.  Each sale was observed by law enforcement officers and was video and/or audio recorded.  After the completion of each transaction, the source met with law enforcement officers and turned over the firearms purchased from Holder.

Holder’s previous felony assault convictions prohibited him from possessing firearms.

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 William D. Moomau and Steven E. Swaney, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Derrick Woodlon, age 34, of Baltimore, today to 15 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition.  Judge Hollander found that Woodlon was an armed career criminal based on nine previous drug convictions.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.

According to Woodlon’s plea agreement, Baltimore Police officers observed Woodlon operating a drug shop in the 1000 block of Boyd Street in Baltimore. On August 18, 2011, an undercover Baltimore Police officer purchased two gel caps of heroin using a pre-marked $20 bill.  Officers subsequently arrested Woodlon and recovered the marked bill.  On November 18, 2011, Baltimore Police officers observed Woodlon supplying the Boyd Street drug shop from a location on North Woodington Avenue, in Baltimore.  Officers executed a search warrant at the North Woodington home later that day and recovered three loaded .357 caliber handguns, one of which had been reported stolen a year earlier.  Officers also recovered 26 grams of crack cocaine, 44 grams of heroin, drug paraphernalia and approximately $26,000 in cash.

As a result of Woodlon’s previous convictions he was prohibited from possessing a gun or ammunition.

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 Kenneth S. Clark and James T. Wallner, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Salvatore Petti, age 76, of Ellicott City, Maryland today to 15 months in prison followed by three years of supervised release for evading payment of taxes on income earned from a Social Security Administration (SSA) employee association and embezzling funds from the association. Judge Motz also entered an order that Petti: forfeit approximately $83,000 in proceeds held in bank accounts, and from the sale of a personal seat license for the Baltimore Ravens and three Marriott timeshares; and pay restitution totaling $570,493 - $299,724 to the employee association for the funds he embezzled; and $270,769 to the IRS for unpaid taxes from 1998 through 2009.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“There are serious consequences for this type of criminal conduct,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington, D.C. Field Office. “Mr. Petti’s act of intentionally under-reporting income on his federal tax returns is unlawful. Today’s sentence demonstrates the collaborative effort between IRS Criminal Investigation and its federal law enforcement partners in bringing individuals to justice who choose to engage in any financial scheme to defraud the American public.” Petti worked for the SSA for more than 40 years, retiring in 1995 as a District Director. He also served as the treasurer for the Employees Activities Association (EAA) of the SSA, located in Woodlawn, Maryland. The EAA provided social, recreational, welfare, health and athletic activities for its members, the employees of the SSA. EAA was comprised of multiple entities, including two for-profit and three non-profit entities. Between 2005 and 2008, Petti earned an annual salary from the EAA of approximately $60,000.

According to his plea, in 2009, the SSA Office of Inspector General audited the EAA and discovered that Petti had not reported any EAA income to the IRS between 2006 and 2008. Indeed, by February 2009, Petti had not reported to the IRS any EAA income from at least 1998 through 2009. Petti was also able to evade paying taxes on his salary from EAA by classifying himself as an independent contractor, when he in fact knew that he should have been classified as an employee. Unlike other employees of EAA who had income, Social Security, and Medicare taxes withheld from their paychecks, Petti did not. Even though he classified himself as an independent contractor, Petti did not issue himself a Form 1099, he did not send the IRS a Form 1099 showing the income he received, and he did not report his EAA income to the IRS when he filed his false tax returns.

The auditors told Petti in February 2010 that Petti’s EAA income would be reported to the IRS. The next month, Petti filed amended tax returns for the years 2006 through 2009, reporting his EAA salary. Petti, however, included false expenses for purported “office expenses,” “supplies,” “travel” and “utilities.”

Further investigation revealed that Petti was embezzling substantial funds from the EAA. Between 2005 and 2009, in addition to the $60,000 salary he was entitled to receive, Petti issued unauthorized checks to himself, which he falsely classified as “administrative expenses” and “general expenses,” in order to conceal his theft from EAA. Additionally, because Petti knew that the outside accounting firm audited the non-profit entities but not the for-profit entities, Petti issued the checks to himself from the for-profit entities’ bank accounts in order to hide the unauthorized income from the accounting firm. By doing so, Petti was able to hide approximately $416,000 of unauthorized payments to himself between 2005 and 2009. Petti did not report the $416,134 of additional, unauthorized income on either his original tax returns for years 2005 through 2009, nor on his amended tax returns in 2006 through 2009.

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 SSA - OIG for its assistance in the case. Mr. Rosenstein commended the IRS Criminal Investigation for its work in the investigation and praised Assistant U.S. Attorney David I. Sharfstein, who prosecuted the case.

Lenders, Including Fannie Mae and Freddie Mac, Lost Over $1 Million from Fraudulently Obtained Loans

Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Kenneth Koehler, age 43, of Baltimore, today to 18 months in prison followed by two years of supervised release for conspiracy to commit wire fraud in connection with a mortgage fraud scheme in which fraudulent loans were obtained on six properties, all of which subsequently went into foreclosure. Five of those properties, accounting for over $790,000 in losses, were on the same street - four of them in the same block. Judge Bredar ordered Koehler to pay restitution of $1,007,812.

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; Inspector General Steve A. Linick of the Federal Housing Finance Agency; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

From 2004 through 2008, Koehler invested in Baltimore residential real estate. Koehler obtained financing for the purchase and sale of his properties from Worthington Mortgage Group, LLC, a mortgage brokerage company controlled by a former business partner.

According to his guilty plea, beginning in 2006 Koehler conspired with his former business partner to obtain loans for Worthington Mortgage clients under false pretenses. They used Voicebank, a technology employee leasing company that they had previously owned, as a fictitious employer for Worthington borrowers who needed fraudulent verifications of their employment. Voicebank had ceased doing business in 2001. The Voicebank phone number activated a voice mail message accessible to both Koeher and his partner. If called upon by the lender, either Koehler or his partner would verify the employment or income information supplied on the loan application.

Koehler obtained two loans by fraudulently inflating his own monthly income. In 2006, Koehler signed a loan application prepared by his co-conspirator to refinance a loan on property at 229 S. Chapel Street in Baltimore, which falsely stated that Koehler earned $20,000 per month with Voicebank. Both Koehler and the co-conspirator knew that he was self-employed. In 2007 the same false information was submitted on a loan application to purchase property at 2217 Gough Street in Baltimore. Both properties went into foreclosure, resulting in losses of more than $221,000 to lenders, including the Federal National Mortgage Association (Fannie Mae).

In 2007 and 2008, Koehler and his co-conspirator also arranged for another individual to purchase three properties, and for that individual’s brother to purchase a fourth property, all located on S. Chapel Street and all owned by Koehler. In all four cases, Koehler concealed the true purchase price of the properties from the lenders by signing the settlement sheet stating that he had received a substantial down payment from the buyers, when in fact no such payments had occurred. Koehler also kicked back part of the sales proceeds from each loan to the buyers, further reducing the sales price of the property. By concealing the true sales price for the properties, the conspirators manipulated the lenders into funding more than 100% of the purchase price. All four properties went into foreclosure, resulting in losses of more than $686,000 to Fannie Mae and Federal Home Loan Mortgage Association (Freddie Mac).

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

United States Attorney Rod J. Rosenstein commended the FBI, Federal Housing Finance Agency - Office of Inspector General and U.S. Postal Inspection Service for their investigative work. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who prosecuted the case.

Majority of Victims Were Non-Profit Clients Who Relied on the Mailings to Raise Funds

Baltimore, Maryland – Stephen Reid, age 50, of Frederick, Maryland, pleaded guilty today to conspiracy to commit mail and wire fraud relating to the failure to provide contracted-for services to clients of Reid’s company, RMS Direct, Inc., resulting in losses of over $628,500.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

“In addition to defrauding postal customers, this scheme jeopardized the reputation of the U.S. Postal Service with its customers,” said Gary Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service. Mr. Barksdale continued, “Through investigations such as this, postal inspectors will continue to protect postal customers and ensure thePostalService retains its reputation as the most trusted government agency.”

According to his plea agreement, Reid was the vice president and part-owner of RMS Direct, Inc., a mail preparation service located in Frederick, Maryland, with over 200 clients and revenues of over $5 million per year. Under the supervision of Reid and his co-conspirator, RMS entered into contracts to prepare and submit to the U.S. Postal Service (USPS), large-volume mailings, typically made up of pamphlets, brochures, books, and other printed materials.

RMS clients were primarily non-profit corporations that relied upon the mailings sent through RMS to raise funds, and the timing of the mailings was essential to their fundraising efforts.  RMS assembled the mailings, applied the postage and addresses, and organized the pieces of mail for submission to the USPS.  RMS submitted the mailings to a full-time USPS Acceptance Clerk that was assigned to its office.  As proof that the mailings went out, RMS then emailed its clients either of two USPS documents – a postage statement signed and certified by the USPS Acceptance Clerk or a Mailing Transaction Receipt printed from an online USPS database.  Both documents included information as to the dates, times, number of pieces of mail and postage paid.  Once the RMS client received a statement, it would remit payment to RMS.

Reid admitted that the conspiracy began in 2005, when he and his co-conspirator falsified postage statements to misrepresent to RMS clients that mailings were being sent out in a timely fashion when, in fact, the mailings were late.  Beginning in 2009, Reid and his co-conspirator selected certain mailings or portions of mailings that would not be submitted at all to USPS for delivery.  Reid and his co-conspirator made sure that the documentation sent to the RMS client was falsified to indicate that the full mailing had been submitted, thereby causing the client to overpay RMS for postage and services.

To accomplish the fraud, Reid, his co-conspirator, and RMS employees operating at their direction, generated false postage statements, forged the signature of the USPS Acceptance Clerk and created a false impression of the special USPS date stamp used on the postage statement.  In 2006, RMS employees made an unauthorized copy of the USPS Acceptance Clerk’s key to the filing cabinet where the official date stamp was kept.  From that time until 2010, Reid, his co-conspirator, and RMS employees operating at their direction used the copied key to gain access to the date stamp when the USPS Acceptance Clerk was not present in order to falsify postage statements.  Beginning in 2010, when the computer-generated Mailing Transaction Receipt was adopted by the USPS to certify mailings, Reid and his co-conspirator falsified those as well, using a document that had been created, which, when printed, looked identical to the USPS Mailing Transaction Receipt.  Reid and his co-conspirator directed RMS employees to use this document to create false Mailing Transaction Receipts, which were then sent to RMS clients as proof of the timely and complete submission of their mailings.

Reid and his co-conspirator took other measures to conceal the fraud and prolong the victimization of RMS clients.  For example, RMS clients often included pieces of mail known as “seeds,” in the mailings they provided to RMS.  These “seeds” were sent to particular individuals or addresses so that the client could track the timing and appearance of the mailing. Reid’s co-conspirator directed RMS employees to make sure to deliver the “seeds” from the mailings that were going out late or were not otherwise submitted to the USPS, in order to conceal the fraud.

As a result of the scheme, at least 19 victims lost a total of $628,581.48.

Reid faces a maximum sentence of 20 years in prison and a fine of $250,000.  As part of his plea agreement, Reid will be required to forfeit $628,581.48.  U.S. District Judge Catherine C. Blake scheduled sentencing for July 12, 2013 at 9:00 a.m.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Sean C. Marlaire, who is prosecuting the case.

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Gurpreet Singh Kohli, age 58, of Potomac, Maryland, late on March 29, 2013, to six months of home detention with electronic monitoring, as part of three years’ probation, for obstruction of agency proceedings, in connection with false statements he made to investigators during his background investigation for a high level government security clearance. Judge Hollander also ordered Kohli to pay a fine of $30,000.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Special Agent in Charge Robert Craig of the Defense Criminal Investigative

Service - Mid-Atlantic Field Office (DCIS).

“The Defense Criminal Investigative Service is committed to supporting America’s warfighter and protecting the interest of the American taxpayers” said Robert Craig, Special Agent in Charge for the DCIS Mid-Atlantic Field Office. “The technology developed to support our warfighters is key to their safety and safety of all Americans. DCIS is committed to pursuing anyone who purposefully endangers our warfighters and our national security for personal gain”.

According to his plea agreement, from November 2002 through March 2011, Kohli operated NAVTEC, LLC from his residence and locations in India. NAVTEC was registered with the U.S. Department of State to act as a broker in the sale and transfer of U.S. manufactured defense electronics and related components. NAVTEC represented U.S. based manufacturers and suppliers of sophisticated defense electronics. The majority of NAVTECs customers were Indian government and military and defense-related agencies. Kohli was responsible for the day to day decision making and operations of NAVTEC.

From September 2003 through April 4, 2011, Kohli also held a full-time position with a defense electronics and weapons manufacturer based in Maryland, for which he was required to obtain and maintain a U.S. government security clearance. As part of his job, Kohli was involved in developing business opportunities with Indian military and defense-related government entities. Kohli did not reveal to his employer the full scope of his activities with NAVTEC, nor did he reveal his employment with the Maryland company to all of NAVTEC’s U.S. based clients.

Kohli admitted that during two separate background investigations by the Office of Personnel Management relative to his security clearance, required to maintain his employment with the Maryland defense contractor, he made a number of false statements and representations regarding his activities for NAVTEC and his contacts with foreign nationals. Specifically, Kohli minimized the nature and scope of his activities with NAVTEC and under oath denied that he had any established foreign business contacts or associations with Indian government organizations. Other false statements included that his contact with foreign nationals was limited to relatives in India; that his foreign business travel was limited to attending trade and air shows on behalf of the Maryland defense contractor; and that his contact with a foreign government or its representatives was limited to business meetings in the U.S. on behalf of the Maryland defense contractor. During a follow-up interview with an OPM investigator on March 9, 2011, Kohli falsely denied having any other employment or business ventures outside of his employment with the Maryland defense contractor.

In fact, Kohli admits that he traveled to India periodically to meet with NAVTEC’s Indian government clients and conduct NAVTEC business. Occasionally, Kohli was accompanied by representatives of the defense electronics manufacturers/suppliers that NAVTEC represented, as well as his son, who assisted with NAVTEC business.

On September 7, 2010, Kohli was interviewed by agents from the FBI and ICE Homeland Security Investigations in relation to his son’s pending application for employment with the FBI. Kohli minimized his son’s role with NAVTEC, his contact with NAVTEC’s U.S. clients and Indian customers, and falsely stated that his wife ran NAVTEC. Kohli also lied about the purpose of his Indian travel, stating that his foreign travel was limited to matters involving his employment with the Maryland defense contractor and that he did not meet with Indian government officials.

United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore and DCIS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christine Manuelian, who prosecuted the case.

Baltimore, Maryland - Charles Anderson, a/k/a “Chuck Corners,” a/k/a “Yowzer,” age 25, of Brooklyn, New York, pleaded guilty today to conspiracy to commit sex trafficking.

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 J. Thomas Manger of the Montgomery County Police Department.

According Anderson’s plea agreement, he assisted his co-conspirator, a long-time friend of Anderson’s, who targeted female prostitutes between the ages of 19 and 28, to force them to work for him by engaging in commercial sex acts in order to make money. Anderson helped his co-conspirator locate female prostitutes that were working alone (i.e., without the oversight of a pimp) by searching websites that hosted advertisements for commercial sex services, then called or text messaged the telephone numbers listed in the advertisements, masquerading as a prospective client, helping his co-conspirator to schedule a hotel “date” with prostitutes. On other occasions, Anderson agreed to loan his cellular phone to his co-conspirator so he could call the prostitutes directly from an unrecognized telephone number. Anderson knew that his co-conspirator intended forcibly to coerce the girls to work as his prostitutes.

Anderson and the co-conspirator shared an apartment in Brooklyn, where Anderson saw the co-conspirator bring female prostitutes against their will. The prostitutes stayed in the co-conspirator’s room, where Anderson sometimes overheard his co-conspirator physically assaulting the females and forcing them to perform sex acts. On one occasion in the Spring of 2010, his co-conspirator returned to the apartment with a prostitute who had been brought there against her will, while at least two additional females were already detained against their will within the co-conspirator’s bedroom. Anderson had agreed to monitor the involuntary detainees while his co-conspirator traveled for approximately six hours in search of an additional female prostitute in Maryland. Anderson also helped his co-conspirator locate female victims who had escaped. He was also aware that his co-conspirator had two firearms in the apartment, a .9mm pistol and a larger sub-machine gun, along with corresponding ammunition.

While his co-conspirator was incarcerated in the Spring of 2010, Anderson agreed to hold the prostitutes’ earnings, which he later provided to his co-conspirator. These prostitutes both received clients inside the apartment and attended “outcall dates,” meeting clients at locations outside of the apartment.

Anderson faces a maximum of life in prison for sex trafficking. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 14, 2013 at 2:15 p.m.

The case was investigated by the Maryland Child Exploitation Task Force, with assistance from the Maryland Human Trafficking Task Force, which was formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members of both task forces include federal, state and local law enforcement. The Maryland Human Trafficking Task Force also includes 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’s Baltimore and New York offices and the Montgomery County Police Department for their work in the investigation and thanked the Montgomery County State’s Attorney’s Office, the Department of Homeland Security and the New York Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Mark W. Crooks and Paul E. Budlow, who are prosecuting the case.

Continued to Practice After Her License Was Suspended in 2005

Greenbelt, Maryland – Rosemary McDowall, age 59, of Silver Spring, Maryland pleaded guilty today to health care fraud.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

According to her plea agreement, in 1996, McDowall, a licensed social worker, signed a contract to become a participating provider with Blue Cross Blues Shield of Maryland (BCBS).  As a participating provider, McDowall was obligated to accept payment for services rendered directly from BCBS.  Under the terms of her contract, McDowall was obligated to notify BCBS if she lost her license to practice as a social worker.

In 2005, McDowall’s license to practice as a social worker was suspended by the Maryland State Board of Social Work Examiners, for numerous violations.  McDowall failed to report to BCBS that her license to practice was suspended, as was required under her contract, and she continued to see patients and caused claims to be submitted to BCBS.  In 2008, BCBS terminated McDowall as a participating provider, but McDowall continued to be a non-participating provider with BCBS and was permitted to collect her allowed fees from the patient and then BCBS would reimburse the patient the allowed amount.  Despite the fact that her license to practice social work had been suspended, McDowall continued to see patients and submitted claim forms to BCBS.

In 2010, BCBS learned that McDowall had not been licensed to practice social work since 2005 and stopped paying all claims submitted by McDowall or BCBS members who had seen McDowall for treatment.  McDowall admitted that fraudulent claims submitted during the scheme total between $120,000 and $200,000.

McDowall faces a maximum sentence of 10 years in prison and a fine of $250,000 for health care fraud.  As part of her plea agreement, McDowall will be required to pay restitution in the full amount of the loss. U.S. District Judge Roger W. Titus scheduled sentencing for July 8, 2013 at 3:00 p.m.

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Mara Zusman Greenberg and Kristi N. O’Malley, who are prosecuting the case.

Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Weldon Emanuwell Gordon, age 35, of Upper Marlboro, Maryland, today to 10 years in prison followed by five years of supervised release for 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 Chief Mark A. Magaw of the Prince George’s County Police Department.

According to Gordon's plea agreement, in January 2009, law enforcement executed a search warrant at his apartment in Upper Marlboro and seized 379.2 grams of crack cocaine, an electronic scale with cocaine residue, and $18,729 in cash.

Gordon is currently serving a life sentence for his conviction in the District of Columbia for conspiring to murder a witness in a separate case.

United States Attorney Rod J. Rosenstein commended the DEA and the 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.

Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Jesse Lee Bell, age 39, of Randallstown, Maryland, today to one year in prison, followed by six months of community confinement, and three years of supervised release, for assaulting a federal officer.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief Teresa Chambers of the U.S. Park Police.

According to his plea agreement, on August 27, 2011, at 3:13 a.m. Bell was pulled over by a U.S. Park Police officer on the Baltimore Washington Parkway, after the officer saw Bell’s pick-up truck drift out of its lane, straddle the lane marking, and then jerk back into its lane. The officer smelled the odor of an alcoholic beverage coming from the car as he stood next to the driver’s window. In response to the officer’s questions, Bell stated that he had a beer hours earlier, but said there was no alcohol or drugs in the truck. The officer ordered Bell to get out of his truck to perform field sobriety tests. Bell became nervous, did not get out of the truck, and ignored the officer’s repeated commands to unlock the door. As the officer was reaching in through the open window to unlock the door, Bell drove onto the highway, with the officer’s arm still inside the truck. The truck struck the officer, who spun around and fell to the ground in the right lane of the highway. The officer saw cars coming toward him at highway speeds, but the drivers were able to swerve into the left lane to avoid striking the officer. The officer turned around and saw Bell driving northbound on the highway with his headlights turned off. The officer and a backup followed Bell, who eventually pulled onto the shoulder of the road again. The officers got the defendant out of the truck and arrested him.

United States Attorney Rod J. Rosenstein commended the U.S. Park Police for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis R. Weisman, who is prosecuting the case.

Submitted Fraudulent Applications to Obtain Loans Totaling Over $2.2 Million

Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Dennis O. Edwards, age 49, of Silver Spring, Maryland, today to 21 months in prison, followed by three years of supervised release, for conspiracy to commit bank fraud in connection with a scheme in which he submitted fraudulent loan applications to obtain over $2.241 million to purchase or refinance homes. Judge Messitte also ordered Edwards to pay restitution of $625,000.

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; Inspector General Steve A. Linick of the Federal Housing Finance Agency; and Howard County Police Chief William McMahon. According to Edwards’ guilty plea, in early January 2006, Edwards fraudulently obtained mortgage loans totaling $342,000, to purchase a home in Silver Spring, Maryland, by falsely claiming on the loan applications that he worked as a nurse and as a mover, earning a combined $6,000 a month from both employers. In fact, Edwards was unemployed at the time and received social security disability payments of approximately $1,000 a month.

A co-conspirator whom Edwards met while he was purchasing the Silver Spring property worked as a loan officer at a bank. The co-conspirator arranged for Edwards to purchase a property in Hyattsville, Maryland, obtaining a loan for $384,750, and subsequently refinancing that loan, based upon fraudulent loan applications that falsely inflated Edwards’ income. In January 2006, the co-conspirator purchased a residence in Columbia, Maryland, by obtaining loans totaling $1.595 million in Edwards’ name. Edwards knew that the loan applications falsely inflated his income and assets, and that by signing the settlement documents he was facilitating a fraud.

Eventually the loans on the Columbia property went into default. To forestall foreclosure, the co-conspirator sent a $12,082.90 cashiers’ check to the mortgage company in June 2008. In June 2010, to encourage the bank to accept a “short sale” that would have caused an immediate loss to the bank of $625,000, Edwards signed a letter, drafted by another co-conspirator, which falsely represented that Edwards had fallen behind on the mortgage payments due to a medical disability that had occurred after he obtained the loans. In fact, Edwards was unemployed and receiving disability payments when he obtained the loans.

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.

This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

United States Attorney Rod J. Rosenstein praised the special agents of the FBI, the Federal Housing Finance Agency Office of Inspector General and the Howard County Police Department, for their work in this investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Gregory R. Bockin and Sujit Raman, who are prosecuting the case.

Ordered to Pay Restitution of $143,815 to the IRS

Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Kevinton Reynolds, age 47, of Fort Washington, Maryland, today to six months of home detention as part of 18 months’ probation for failing to file tax returns. Judge Russell ordered Reynolds to pay restitution of $143,815 to the IRS and to perform 1,000 hours of community service.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“Failure to comply with your tax obligations violates U.S. tax law,” said Thomas J. Kelly, Special Agent in Charge IRS Criminal Investigation, Washington DC Field Office.  “The law is crystal clear: people must file and pay their taxes. Today's sentence brought an abrupt end to Mr. Reynolds’ criminal behavior and is a reminder that IRS Criminal Investigation is committed to maintaining the integrity of our tax system.”

According to his guilty plea, Reynolds owned and operated K&R Construction, LLC.  Prior to 2007, Reynolds reported income earned by K&R Construction, and its predecessor business, on his personal tax returns.  In 2007, Reynolds earned $247,045 in income based on K&R Construction’s gross receipts of approximately $1,110,683.  In 2008, Reynolds earned $163,084 in income based on K&R Construction’s gross receipts of approximately $384,227.

Reynolds willfully failed to file any income tax returns for tax years 2007 and 2008; and failed to pay $86,617 in tax due for 2007, and $57,198 in tax due for 2008.

The total tax loss to the government for 2007 and 2008 is at least $143,815.

United States Attorney Rod J. Rosenstein commended the IRS – Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Sujit Raman and Special Assistant United States Attorney Gregory P. Bailey, who prosecuted the case.

Operated A Salon and Fitness Center While Claiming to Be Disabled

Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Darlene M. Altvater, age 48, of Mechanicsville, Maryland, late yesterday to five months in prison, followed by five months home detention and three years of supervised release, for two counts of making false statements to obtain federal disability benefits. Chief Judge Chasanow also ordered Altvater to pay restitution, with the exact amount still to be determined.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General; and Special Agent in Charge Michael S. Barcus, U.S. Department of Labor – Office of Inspector General, Office of Labor Racketeering and Fraud Investigations

According to the evidence presented at her five day trial, Darlene Altvater was employed by the U.S. Postal Service as a rural carrier at the Mechanicsville Post Office in St. Mary’s County, Maryland. After an on-the-job injury to her head and neck, Altvater began receiving federal workers’ compensation benefits in 2001. The evidence showed that from January 2005 through December 2011, while she continued to receive worker’s compensation benefits based on her disability, Altvater operated a salon, day spa and fitness center, first in Leonardown, Maryland and later in California, Maryland, under the names LadySlender LLC, Creative Touch Salon and Spa, and California Fitness LLC.

Although Altvater filed forms with the USPS and the U.S. Department of Labor, Office of Workers’ Compensation Programs claiming that she was unable to work due to her disability, witnesses testified that Altvater reported to the salon on a regular basis, performing physical acts, including demonstrating the use of the fitness equipment, performing pedicures and giving massages.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Service, Office of Inspector General and U.S. Department of Labor – Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis R. Weisman and Special Assistant U.S. Attorney Ann O’Brien, assigned from the Department of Justice’s Antitrust Division, who prosecuted the case.

Obtained 20 Fraudulent Loans by Forging Signatures of Bank Officials and Concealed the Loans by Manipulating Bank Records

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Wanda Henderson, age 56, of Westover, Maryland, today to 18 months in prison, followed by five years of supervised release, for embezzlement by a bank employee. Judge Hollander also ordered Henderson to pay restitution of $456,665.

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 Henderson’s plea agreement, she was the Vice-President and Executive Assistant to the President of Hebron Savings Bank and had access to the Bank’s vault, the computer system and the Bank’s loan files.

Beginning in approximately 2005, and continuing until April, 2011, Henderson embezzled money from the bank by creating fraudulent loan applications and fraudulent loan and line of credit accounts at the bank in her name and in the names of family members. Henderson forged the signatures of various bank officials, including the President, as the approving loan officer on the applications. Henderson also forged the initials of other bank employees on paperwork that authorized the transfer of the loan proceeds into Henderson’s personal checking account or the checking account of a family member.

Henderson concealed the fraudulent loans from bank officials by manipulating and changing data in the bank records. In particular, Henderson altered the origination dates for the fraudulent loans so that they did not appear on the monthly New Loan Reports and removed the fraudulent loans from the bank’s quarterly Large Borrowers’ Reports.

As the loans became due, Henderson obtained new fraudulent loans by again creating accounts in the bank computer system and forging approval signatures of other bank officials. By using the proceeds from the new loans to pay off the previous loans, Henderson was able to continue the scheme until April 2011.

Henderson obtained 20 fraudulent loans for herself or for members of her family by forging signatures and manipulating bank records. The total unpaid principal balance on the fraudulent loans is $682,236.77 and of that amount, over $456,000 has gone into default.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

United States Attorney Rod J. Rosenstein thanked the FBI for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Kathleen O. Gavin, who prosecuted the case.

Baltimore, Maryland - A federal grand jury has indicted Antonio Abraham Cruz-Cruz, age 26, a Mexican citizen residing in Adelphi, Maryland; and Henry Ramos Agustin, age 37, a Guatemalan citizen residing in Cambridge, Maryland, on charges relating to the sale and transfer of fraudulent identification documents.  The superseding indictment was returned on March 20, 2013, and unsealed today upon the arrest of the defendants.  In addition to making the arrests, Special Agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations executed six search warrants were today at locations connected to the defendants.

The indictment 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).

“Document fraud poses a threat to national security and puts the security of our communities at risk because it creates a vulnerability that may enable terrorists, criminals and illegal aliens to gain entry to and remain in the United States,” said HSI Baltimore Special Agent in Charge William Winter. “This investigation resulted in the arrest and indictment of an alleged document mill leader and co-conspirator operating out of Maryland. Homeland Security Investigations will move aggressively to investigate and bring to justice those who potentially compromise the integrity of America's legal immigration system.”

The 13-count indictment alleges that from October 17, 2012 through February 19, 2013, Cruz-Cruz and Agustin conspired to manufacture and transfer fraudulent identification documents.  According to the indictment, Cruz-Cruz manufactured documents, including permanent resident cards and social security cards, which he sold to customers, and which he provided to Agustin for sale to customers.  The indictment alleges that the defendants solicited and took orders for false identification documents from customers who provided the defendants with photographs and personal information.  Agustin allegedly provided the photographs and personal information to Cruz-Cruz, who manufactured the requested fake documents, which he then delivered to Agustin in exchange for a portion of the sales price. The indictment alleges that Cruz-Cruz sold such manufactured fake documents to his own customers as well.

The defendants face a maximum sentence of 15 years in prison for the conspiracy and for each count of transfer of false identification documents; 10 years in prison for each count of fraud and misuse of immigration documents; five years in prison for each count of social security number fraud; and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. An initial appearance and arraignment was held today in U.S. District Court in Baltimore. Cruz-Cruz and Agustin are detained pending trial.

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 and HSI Resident Agent in Charge Ocean City for their work in the investigation and thanked the Anne Arundel County Police Department and Baltimore County Police Department for their assistance in executing today’s search warrants.  Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Scott Odham, age 49, of Laurel, Delaware, today to 150 months in prison, followed by lifetime supervised release, for traveling across state lines to engage in sex with a minor. Odham is a previously convicted sex offender, including a 2001 conviction in Carroll County for child abuse and indecent exposure.  Judge Blake ordered that upon his release from prison, Odham 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 William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Colonel Nathaniel McQueen, Jr. of the Delaware State Police; and Somerset County State’s Attorney Dan Powell.

According to Odham’s plea agreement, from 2010 through April 2011, Odham sent repeated and frequent Facebook and MySpace messages, some of which were sexually explicit, to over 50 high school and middle school females that lived in the Western Maryland area.  On April 16, 2011, Odham became Facebook “friends” with AS, a 19 year old female from Princess Anne, Maryland.  The two decided to meet and began a sexual relationship. On April 22, 2011, a 14 year old middle school girl went to visit AS during her spring break and stayed at AS’s home.  That night, AS and the minor female drank alcohol together and sent pictures of themselves in bathing suits by telephone to Odham. The next day, AS left the 14 year old female alone while she attended a family event in Delaware.  Odham knew that the girl was in the home alone and he traveled from his home in Delaware, to the Princess Anne home where he engaged in sexually explicit conduct with the 14 year old.

On June 1, 2011, Odham sent an inappropriate text message to the 14 year old, who was in school at the time.  The message was seen by her science teacher and subsequently by her principal, who reported the contact to police.  The 14 year old was interviewed by authorities and described Odham’s visit to the Princess Anne home.  The victim stated that Odham offered to pay her to take off her clothes and asked her to watch porn with him.  When the victim declined his advances, Odham grabbed her by the hair and demanded oral sex.  A state search warrant for Odham’s home and an arrest warrant for Odham were subsequently obtained and executed.  Numerous pornographic pictures were found on Odham’s phone, including photos of Odham’s penis and sexually explicit photographs of AS and the 14 year old victim.

Odham previously pleaded guilty to state charges of escape and to perverted practices stemming from a video he made, and entered an Alford plea to third degree sex abuse. He was sentenced to 20 years in prison, with 10 years suspended. Following his conviction, Odham was sent to the Western Correctional Institution in Hagerstown, Maryland.  From jail, Odham sent threatening letters to the Maryland State Trooper who investigated his case and to the minor female.

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 HSI Baltimore, the Maryland State Police, Delaware State Police and Somerset County State’s Attorney‘s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who prosecuted the case.

Stole Tools and Scaffolding Which He Sold at Pawn Shops in Baltimore, Anne Arundel and Queen Anne’s Counties

Greenbelt, Maryland – Brandon Scott Gauss, age 28, of Preston, Maryland pleaded guilty late yesterday to theft of government property from the Goddard Space Flight Center, part of the National Aeronautics and Space Administration (NASA).

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Inspector General Paul K. Martin, NASA Office of Inspector General.

According to his plea agreement, Gauss was a contract employee at NASA.  As an engineering technician at the Goddard Space Flight Center, he had access to tools and other property NASA owned.  From October 2011 through November 2012, Gauss stole tools and aluminum scaffolding belonging to the government, which he sold to pawn shops for cash. Gauss made over 60 visits to pawn shops throughout Maryland, including Baltimore, Anne Arundel and Queen Anne Counties, and received at least $16,974.  The government has recovered some of the items, worth at least $29,736. Gauss admits that he owes the government at least $11,574.35, the money he received from selling the stolen materials the government has been unable to recover.

As part of his plea agreement, Gauss will be required to pay restitution of $11,574.35 to the U.S. government; $4,461 to Fast Cash Pawn Shop in Annapolis, Maryland; and to forfeit at least $29,412.89.

Gauss faces a maximum sentence of 10 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for July 2, 2013 at 9:30 a.m.

United States Attorney Rod J. Rosenstein praised the NASA OIG, Office of Investigations for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack and Sujit Raman, who are prosecuting the case.

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Joseph McKinsey Brown, age 29, of Baltimore, Maryland, today to 15 years in prison followed by five years of supervised release for conspiracy to distribute and possess with the intent to distribute cocaine, and possession of a firearm in furtherance of a crime of violence, in connection with the planned robbery of a drug dealer.

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 Commissioner Anthony W. Batts of the Baltimore Police Department.

According to Brown’s guilty plea, Brown, Donte Wise, and another co-conspirator, met with a confidential source of information (CS) and with an ATF undercover officer posing as a drug courier to plan the robbery of a drug dealer.  Wise and his co-conspirators agreed to commit the armed robbery in exchange for half of the stolen cocaine, expected to be as much as seven kilograms, which they would then distribute.  On August 15, 2012, the CS picked up Brown and his co-conspirators and drove to a location in Baltimore to meet the undercover officer, who was to provide a minivan for the conspirators to use to commit the robbery.  After arriving at the meet location, ATF agents approached to arrest the conspirators.  All three fled, discarding their weapons as they ran, but were caught and arrested.  Brown and Wise each threw away a loaded 9mm handgun, which were recovered, along with the .45 caliber handgun thrown on a roof by the third conspirator.  A search also recovered black rubber gloves and a black balaclava from Wise and black rubber gloves and a black ski mask from Brown.

Donte Wise, age 30, of Baltimore, Maryland, was previously sentenced to 15 years in prison on the same charges.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted the case.

Distributed At Least 3 Kilograms of PCP Over the Course of the Drug Conspiracy

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Samuel Braxton, age 44, of Temple Hills, Maryland, today to 27 years in prison followed by five years of supervised release for conspiracy to possess with intent to distribute phencyclidine (PCP), crack cocaine and heroin.  Judge Titus found that Braxton was a career offender based on two 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; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to Braxton=s guilty plea, from at least June 2010 through February 2012, Braxton was a part of a drug trafficking conspiracy based in and around Temple Hills, Maryland.  Braxton regularly received multi-ounce to quarter-gallon quantities of PCP from his sources of supply and would then add starter fluid or other chemicals to the PCP to increase its quantity.  Also during this time period, Braxton received heroin, and crack and powder cocaine from his sources of supply.  Braxton converted a portion of the powder cocaine into crack.  Braxton sold the PCP, heroin, and crack to regular drug customers in the Washington, D.C. metropolitan area, including Prince George’s County.

From November 2011 through January 2012, Braxton was intercepted, on a court-ordered wiretap of his phone, on over 600 drug-related telephone conversations during which he and other co-conspirators discussed the sale of and arranged drug transactions involving PCP, heroin, crack, cocaine, and marijuana.  On at least two occasions, a cooperating source purchased PCP from Braxton at his apartment in Temple Hills.  Law enforcement seized PCP that Braxton had supplied to co-conspirators, as well as from Braxton’s bowling alley locker and other locations where Braxton stored the PCP.  Braxton was overheard by law enforcement on more than one occasion directing his minor son to put a bag or other receptacle containing PCP into his bowling alley locker.  A witness also saw Braxton take PCP from his bowling alley locker and put it into his son’s lunchbox, directing his son to bring the lunchbox to Braxton’s apartment.

Over the course of the conspiracy Braxton was responsible for the distribution of at least three kilograms of PCP, 28 grams of crack cocaine and 100 grams of heroin.

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.

Stole the Identity Information of at least 40 Clients of a Residential Mental Health Program to Open Fraudulent Bank Accounts and File False Tax Returns; Led the Conspirators by Using Violence

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Christopher Andre Devine, age 34; of Salisbury, Maryland; Frederica, Delaware; and Philadelphia, Pennsylvania, today to 121 months in prison followed by five years of supervised release for conspiring to commit bank fraud and aggravated identity theft in connection with a scheme to use the personal identifying information of individuals to open bank accounts and fraudulently obtain cash, merchandise and services.

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); Wicomico County Sheriff Michael A. Lewis; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.

“Identity theft scheme participants like Mr. Devine wreak havoc on financial institutions as well as those whose identities are stolen,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Perpetrators of identity theft schemes are motivated by greed, acting as if they are above the law and with total disregard for the consequences to the victims, but today's sentence has brought an abrupt end to Mr. Devine’s criminal behavior. IRS Criminal investigation along with our federal law enforcement partners are equipped to dismantle criminal conspiracies designed solely to defraud and bring the law breakers to the table of justice.”

According to his plea agreement, from December 2008 through December 22, 2011, in Maryland, Pennsylvania and elsewhere, Devine and his co-defendants, Quanishia Williamson-Ross, Lenee E. Williamson and Quashonna Williamson opened or recruited others to open checking accounts at banks and obtain check cards, which the conspirators then controlled. The conspirators then deposited fraudulent checks into the accounts and used the associated check cards at ATM machines to make cash withdrawals from the accounts.

According to evidence presented to the court, conspirators Williamson-Ross and the Williamsons gave all of the proceeds from the scheme to Devine who provided them with little more than food and shelter. The women lived with Devine and were completely financially dependent on him. According to court testimony, Devine used a minor to further the scheme and led the group of conspirators with violence and intimidation, including punching and throwing a conspirator across a room.

Devine also obtained the identifying information of at least 40 individuals who were clients and 60 individuals who were current or former employees, of a residential program for adults with mental health needs (the Program), which he purchased from an individual who was employed at the Program. Devine used the personal identifying information of these victims to open checking accounts via the telephone and Internet that he then controlled for use in the scheme.

Devine and his co-conspirators had fraudulent identification documents made using the personal information of others but with photographs of Devine, Williamson-Ross and Lenee Williamson, which they used, along with the check cards, to make purchases at retail stores, later returning the purchased items for cash. The conspirators also used the check cards to obtain services, such as utilities, cable, and cellular phone service, and to make purchases for their personal benefit at restaurants, drug stores, grocery stores, gas stations and video rentals, and other businesses.

Devine also participated in a scheme to defraud the IRS by preparing and filing false tax returns in the names of individuals recruited for the tax fraud scheme and using the personal identifying information of clients in the Program. For the 2010 tax year, at least 34 false tax returns were filed, claiming $123,126 in false refunds. Refunds from many of the false tax returns were direct deposited into bank accounts controlled by Devine through the bank fraud scheme.

In December 2011, law enforcement searched a van and two residences in Salisbury used by the co-conspirators. Hundreds of pieces of evidence were seized, including: credit/debit cards; SSN cards; fraudulent driver’s licenses; and personal identifying information of approximately 300 individuals, at least 100 of whom were clients or employees at the Program.

Over the course of the scheme, Devine and his co-conspirators used the stolen identifying information of at least 24 individuals to open at least 73 checking accounts at financial institutions, resulting in a loss of at least $200,000.

Quanishia Williamson-Ross, age 31; and Lenee E. Williamson, age 22, both of Salisbury, Maryland, Frederica, Delaware and Philadelphia, Pennsylvania, previously pleaded guilty to the same charges and are awaiting sentencing.

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 HSI Baltimore, the Wicomico County Sheriff’s Office, IRS-CI and the Social Security Administration - Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Paul E. Budlow and Kristi N. O’Malley, who prosecuted the case.

Stole the Identities of Doctors Who Applied for Fellowships at Johns Hopkins Hospital Where His Girlfriend Worked

Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced ringleader Derrick Hill, age 53, of Woodlawn, Maryland, today to 11 years in prison followed by three years of supervised release for conspiring to commit wire fraud and aggravated identity theft. Judge Bennett also entered an order that Hill pay restitution of $191,180.26.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office and Anne Arundel County Police Chief Larry W. Tolliver.

According to his plea agreement, from August to October, 2009, Hill and his girlfriend Renee Cabell conspired with their co-defendants John Coffey and Tawney King to negotiate counterfeit checks drawn on victim bank accounts.

Hill received checks which had been designated for destruction by banks and stolen before they could be destroyed. He also received personal identity information and personal financial information from King who was employed by Highlandtown Community Health Center. According to King’s plea agreement, King accessed patient files and provided Hill with the patient identifying information either directly or through her friend Cabell. Hill used this information to create counterfeit checks using the victim’s financial account information and the identity information of other victims. He also obtained counterfeit identification cards and altered stolen Maryland driver’s licenses so that they displayed victim identity information, but with the photo of one of several co-conspirators, including Coffey.

Hill recruited Coffey to help him cash the checks at banks and retail establishments. If the counterfeit checks were cashed at a retail store, Hill told his co-conspirators what to buy. Proceeds, whether cash or merchandise, were given to Hill, who paid his co-conspirators a small percentage for each successful transaction.

Additionally, Cabell provided Hill with the names and identity information of doctors who applied for fellowships at Johns Hopkins Hospital where Cabell worked, processing the fellowship applications. Hill used the doctors’ identities to rent apartments, buy merchandise and obtain services. Indeed, shortly before Hill’s arrest, Hill was attempting to rent another apartment in a doctor’s identity because he and Cabell were about to be evicted for non-payment on the apartment they rented in the identity of another doctor.

The defendants obtained cash, merchandise and services worth over $188,000. The identities of over 250 individuals were compromised.

Renee Cabell, age 51, of Woodlawn, Maryland, John Coffey, age 43, and Tawney King, age 46, all pleaded guilty previously pleaded guilty to the same charges. Cabell and Coffey were sentenced last week to 30 months and 57 months in prison, respectively, and ordered to pay restitution of $191,180.26. Both were sentenced to three years of supervised release, with Cabell ordered to serve 12 months of her term of supervised release on home detention. King is scheduled to be sentenced later this week on March 28th.

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 Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.

hile Failing to Pay Employment Taxes, Spent Hundreds of Thousands of Dollars of Corporate Money for His Personal Benefit

Greenbelt, Maryland - U.S. District Judge George L. Russell III, sentenced Alphonso Tillman, age 44, of Fort Washington, Maryland today to two years in prison, followed by three years of supervised release, for failing to account for and pay over employment taxes. Judge Russell also ordered Tillman to pay restitution of $2,205,991.40.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“Using money withheld from your employees’ compensation for personal gain is reckless,” said Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Business owners are responsible to withhold and pay over income taxes from their employees’ compensation to the IRS. Today’s sentencing shows failing to do so is a serious offense to which Mr. Tillman is being held accountable.”

According to his plea agreement, Tillman was the president and sole owner of Remote Surveillance Technology Solutions, Inc. (RSTS), and its successor, Remote Surveillance Technology Services, LLC, (RSTServ). The companies were headquartered in Landover, Maryland and provided security guards to protect commercial and residential properties in Maryland, Virginia, Pennsylvania and the District of Columbia.

RSTS and RSTServ withheld taxes from their employees’ paychecks, including federal income taxes, medicare and social security taxes (payroll taxes), which the companies were required to pay over to the IRS on a periodic basis. Tillman failed to file the required forms or pay the payroll taxes due for RSTS and RSTServ, with the exception of payments made by RSTS to the IRS as a result of IRS collection efforts.

Between 2005 and 2008, Tillman made hundreds of thousands of dollars of expenditures from the RSTS and RSTServ business accounts for his personal benefit while, at the same time, failing to pay over to the IRS payroll taxes withheld from employee paychecks.

The total amount of tax loss resulting from Tillman’s failure to pay taxes owed by RSTS and RSTServ is $2,205,991.40

United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Sean B. O’Connell, who prosecuted the case.

Arrested en Route to Robbing a Cocaine Dealer

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Robert Lee Jones, age 26, of Capitol Heights, Maryland, today to 188 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), possession with intent to distribute crack cocaine; being a felon in possession of a firearm; and conspiracy to use and carry a firearm in relation to a crime of violence.

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 Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

According to his plea agreement, from January 2008 through February 2012, Jones conspired to sell PCP at the Central Gardens Apartment complex in Capitol Heights.  Jones periodically lived in the apartment complex.  The conspirators used violence or threatened to use violence to control their territory and prevent competition from other drug dealers. Over the course of the conspiracy, Jones, either alone or with another conspirator, sold PCP to a confidential source on at least 18 occasions.  Jones was responsible for the distribution of between one and three kilograms of PCP.

Jones and two co-conspirators, who were armed with firearms, were arrested on February 10, 2012 on the way to a planned robbery of a cocaine dealer.  Law enforcement executed a search warrant at the Central Gardens apartment where Jones was living at the time and seized a 5.56 caliber semi-automatic rifle along with a 30 and 100 round magazine; 22 rounds of various caliber ammunition; approximately 98 grams of crack cocaine; at least 211 grams of PCP; and drug paraphernalia.

Jones was previously convicted of a felony and was prohibited from possessing firearms or ammunition.

United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Steven E. Swaney, who prosecuted the case.

Drug Courier Kidnapped and Dismembered in Bathtub; Another Gang Leader Murdered

Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Jean Brown, age 43, of Jamaica, to life in prison in connection with a conspiracy to distribute marijuana as one of the leaders of the Brown Organization, a criminal organization whose members distributed narcotics primarily in Maryland, Pennsylvania, New York, Arizona and Jamaica.

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.

“Jean Brown ran a lucrative drug organization that committed wanton and brutal acts of violence,” said U.S. Attorney Rod J. Rosenstein. “In 2009, after authorities seized $250,000 in drug proceeds from courier Michael Knight, Brown and her associates kidnapped Knight, dismembered him in a bathtub and threw his remains in the trash.”

“Today’s life sentence of Jean Brown for her drug conspiracy, kidnapping and murder in aid of racketeering is a victory for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and two countries. 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,” said William Winter, special agent in charge of HSI Baltimore. “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 evidence presented at their seven-day trial, 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. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.

Brown employed the truck drivers, arranged for the distribution of the marijuana on the East Coast – principally in Baltimore and Pittsburgh, used couriers to smuggle the drug proceeds to Jamaica, and sent cash back to the Southwest to pay for the next load.

Witnesses testified that on December 16, 2009, Brown, Smith and co-defendants Peter Blake, Hubert Downer and Dean Myrie kidnapped Michael Knight, one of Brown’s money couriers. Knight was holding $1 million for the organization, but when the money was collected $250,000 was missing. Myrie drove Knight, who was bound with a telephone cable, Brown and other drug members to an apartment in White Marsh, Maryland, where Brown and others interrogated Knight. After Knight was not able to provide the location of the money, Brown ordered Downer and Blake to kill Knight. Knight was stabbed to death in the bathtub. Over the next few days Brown, Myrie, Downer and Blake dismembered Knight and disposed of his body in dumpsters in the Loch Raven and Liberty Road areas of Baltimore County.

In addition to the murder of Knight, the evidence showed that after threatening Smith on several occasions, in April 2010, Brown offered to pay co-conspirators to murder Smith in Tijuana, Mexico. Witnesses testified that one of the co-conspirators killed Smith, shooting him in the head.

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. Hubert Downer, a/k/a “Doc” and “Michael Reid,” age 51, of Jamaica; and Peter Blake, age 55, of Jamaica have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing.

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.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Wayne Glymph, age 46, of  Fort Washington, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), cocaine base and heroin; and being a felon in possession of ammunition.

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 Chief Mark A. Magaw of the Prince George’s County Police Department.

According to his guilty plea, beginning in January 2011, Glymph, co-defendant 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.  Glymph and others used Braxton’s apartment and a bowling alley in Temple Hills, Maryland to store and distribute narcotics.  Glymph often pooled money with Braxton to obtain the drugs, which Glymph and Braxton then redistributed to their customers. Glymph was responsible for distributing between one and three kilograms of PCP, between 28 and 112 grams of crack, and between 400 and 700 grams of heroin.

On February 23, 2011, law enforcement agents executed a search warrant at Glymph’s residence and seized approximately 19 grams of heroin, 10 grams of crack, 25 grams of marijuana, a four-ounce bottle containing PCP residue, assorted drug paraphernalia, $23,626, a diamond engagement ring, a pouch containing two loaded 9mm pistol magazines, six loaded .40 caliber pistol magazines, an empty .40 caliber pistol magazine, a shotgun shell and 11 .40 caliber cartridges.  Glymph had been previously convicted of a felony and was prohibited from possessing the guns and ammunition.

Samuel Braxton, a/k/a Fats, age 44, of Temple Hills previously pleaded guilty to his participation in the conspiracy and awaits sentencing. 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 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.

Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Blake Betters, age 23, of Baltimore, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to possess with the intent to distribute five kilograms or more of cocaine.

On March 19, 2013, Judge Bredar sentenced co-defendant Brandon Harris, age 22, also of Baltimore, to 10 years in prison followed by five years of supervised release on the same charge.

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; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to their plea agreements, in May 2012, Betters, Harris and a co-conspirator, were introduced to an undercover Bureau of Alcohol, Tobacco and Firearms (ATF) agent who proposed robbing a large scale drug trafficker of multiple kilograms of narcotics. Betters, Harris and their co-conspirator agreed to commit the robbery and to resell the stolen narcotics to customers in the Baltimore area.

On June 14, 2012, Betters, Harris and four co-conspirators met with the undercover agent to make their final preparations to commit the robbery. Betters, Harris and their co-conspirators were armed, and they all expected the weapons to be used to commit the robbery. After confirming that they were ready to rob the stash house, Betters, Harris and their co-conspirators followed the agent to a location in Baltimore where they believed they would be given the location of the robbery. As the arrest team approached, Betters and Harris fled, but were quickly apprehended and arrested.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and John W. Sippel, Jr., who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Glenn Anthony Thompson, age 45, of Baltimore, today to 10 years in prison, followed by four years of supervised release, for possession with intent to distribute crack cocaine and heroin, and for possession of a gun in furtherance of drug trafficking.

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 Thompson's plea agreement, on November 11, 2009, law enforcement executed a search warrant at Thompson’s home in the 2000 block of Westwood Avenue in Baltimore.  During the search, officers recovered a loaded .357 revolver, .357 ammunition, a black semi-automatic pellet gun, a safe that contained crack cocaine and heroin, ten baggies of heroin from a sock in the bedroom, and .38 caliber ammunition.  The total amount of narcotics recovered was 38.48 grams of crack cocaine and 50.80 grams of heroin.

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

Three-Time Felon Caught in FBI Sting

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Antonio McKiver, age 47, of Baltimore, today to 235 months in prison followed by five years of supervised release for use of interstate commerce facilities in the commission of murder-for-hire, possession with the intent to distribute heroin and possession of a firearm by a convicted felon. Judge Blake enhanced McKiver’s sentence upon determining that McKiver is an armed career criminal based on three prior convictions for violent felonies and drug offenses.

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.

“There are other hit men like Antonio McKiver who commit drug-related murders in Baltimore,” said U.S. Attorney Rod J. Rosenstein. “Our challenge is to catch them before the next murder so we don't need to chase them afterwards.”

According to his plea agreement, on June 7, 2012 McKiver told a confidential informant that he was willing to be paid in cash and by drugs to carry out a murder.  The next week McKiver met with an undercover FBI agent and agreed to commit a murder of a drug “associate” of the undercover agent for $15,000 and a kilogram of drugs. McKiver asked the undercover agent to provide the gun.

Thereafter, a cell phone used to arrange the murder and $600 were mailed to McKiver.  On July 23, 2012, the undercover agent met McKiver in the parking lot of a hotel in Baltimore County, gave McKiver $5,000, a kilogram of heroin and a .9mm semi-automatic pistol.  The undercover agent described the intended victim in detail to McKiver and pointed out the vehicle that the intended victim was using.  After the undercover agent left and while McKiver waited in the parking lot for the victim, McKiver was arrested.

Agents executed a search warrant at McKiver’s house and seized a .40 caliber semi-automatic pistol and a 20 gauge shotgun.  McKiver had previously been convicted of a felony and was prohibited from possessing the guns.

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 Attorneys James G. Warwick and James Wallner, who prosecuted the case.

Typical of the Predators Children Routinely Encounter on the Internet

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Joshua P. Blakenship, age 25, of Solomons, Maryland, today to 12 years in prison followed by a lifetime of supervised release for producing child pornography. Judge Titus ordered that upon his release from prison, Blakenship 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 William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Calvert County Sheriff Mike Evans; and the Rapid City South Dakota Police Department.

“Joshua Blankenship is typical of the predators children routinely encounter on the internet,” said U.S. Attorney Rod J. Rosenstein.

“Individuals that sexually exploit children think they can hide behind their computers and not be discovered by law enforcement,” said Special Agent in Charge of HSI Baltimore William Winter. “Think again. HSI special agents along with our domestic and international law enforcement partners have joined forces to aggressively investigate and apprehend these predators and ensure that they are prosecuted to the full extent of the law.”

According to his plea agreement, Blakenship “friended” a teenage girl on Facebook in January 2011. They exchanged text messages and by March 2011, Blankenship asked the girl for a nude photo of herself. The girl sent Blakenship a nude photo she took on her cell phone.

On July 4, 2011, Blankenship sent a text message to the girl demanding 10 nude pictures and said that if she did not produce and send the photos, she would go to jail because she had sent an illegal image on her cell phone. Between July 5 and 7, 2011, Blakenship sent numerous texts describing the images he wanted her to produce and threatening to call the police if she refused. The victim produced several dozen pictures and sent them to Blakenship.

Blakenship was identified and his residence searched on August 5, 2011. Blakenship admitted to forcing individuals to send him pictures, and to creating a fake profile on the Internet to gain access to pictures and videos of girls.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.

This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.

United States Attorney Rod J. Rosenstein commended HSI Baltimore, Calvert County Sheriff’s Office and Rapid City, South Dakota Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, and Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

Failed to Report Income and Assets Totaling Over $740,000 and Attempted to Fraudulently Discharge Debts of Over $1.1 million through Bankruptcy

Baltimore, Maryland - A federal jury today convicted Ricardo O. Curry II, age 42, of Randallstown, Maryland, on two counts of assisting in the filing of a false tax return, four counts of bankruptcy fraud, four counts of falsifying bankruptcy records and one count of false testimony under oath at a bankruptcy proceeding. After the jury returned its verdict, U.S. District Judge William D. Quarles, Jr. ordered that Curry be detained pending sentencing and he was taken into custody

The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and the Baltimore Office of the United States Trustee Program, the Department of Justice agency that supervises bankruptcy cases and trustees.

According to evidence presented at his three day trial, Curry worked for Peerless Real Estate Services, Inc., a North Carolina corporation that oversaw the sale of property in North Carolina, including the Village of Penland development, which contained more than 2000 lots. Curry recruited at least 12 investors to purchase at least 23 lots in the Village of Penland and he received referral fees based on these sales. In 2005, 2006, and 2007, respectively, Curry earned referral fees of $41,455, $43,200, and $330,546. Although Curry reported the income he received as a sales representative for a pharmaceutical company on his 2005, 2006, and 2007 tax returns, he failed to report these referral fees, totaling $415,201.

On March 12, 2009, Curry filed for Chapter 13 bankruptcy in the United States Bankruptcy Court for the District of Maryland. On April 21, 2009, Curry filed a Statement of Financial Affairs with the bankruptcy court, which reported the income he earned as a pharmaceutical sales representative for tax years 2005, 2006, and 2007, but failed to report the $415,201 he earned in referral fees from Peerless. Curry also failed to disclose his ownership interest in a home worth approximately $325,000. On July 28, 2009, Curry filed an Amended Statement of Financial Affairs, which again failed to disclose the $415,201 in referral fees, and his ownership interest in the home. On October 20, 2009, Curry testified under oath at meeting of the creditors, falsely stating that all of his assets were listed in his bankruptcy filing, when in fact, Curry knew that he had not reported the referral fees, nor his home ownership. Ultimately, Curry never provided documents to the trustee overseeing his bankruptcy case regarding either the referral fee income or the home, and as a result, on April 12, 2010, Curry’s attempt to discharge his debts through bankruptcy was denied

Curry faces a maximum sentence of 20 years in prison on each count of falsifying bankruptcy records; five years in prison on each count of bankruptcy fraud and for false testimony; and three years in prison for each of the tax counts. Judge Quarles has scheduled sentencing for June 4, 2013, at 1:00 p.m.

United States Attorney Rod J. Rosenstein praised the IRS-CI, FBI and U.S. Trustee’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I Sharfstein, who are prosecuting the case.

Allegedly Submitted False Claims for Patients Who Did Not Have Terminal Prognosis

Baltimore, Maryland – Hospice of Arizona, L.C., along with American Hospice Management, LLC, and their parent corporation, American Hospice Management Holdings, LLC, have agreed to pay $12 million to resolve allegations that they violated the False Claims Act by submitting or causing the submission of claims to the Medicare program for ineligible hospice services provided by Hospice of Arizona.

The settlement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein; Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division; and Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General’s region including Arizona.

The Medicare hospice benefit is available for patients who elect palliative treatment (medical care focused on providing patients with relief from the symptoms, pain and stress of a serious illness) for a terminal illness, and have a life expectancy of six months or less if their disease runs its normal course. Today’s settlement resolves allegations that Hospice of Arizona and its related entities submitted or caused the submission of false Medicare claims between September 1, 2002 and December 31, 2010 for Hospice of Arizona patients that did not have a terminal prognosis of six months or less, or that did but were not eligible for the level of care billed.

The government alleges that Hospice of Arizona and its related entities engaged in certain practices that resulted in the submission of false claims, including pressuring staff to meet admissions and census targets, adopting procedures that delayed and discouraged discharges of ineligible patients, and failing to timely implement an adequate compliance program. As part of the settlement, American Hospice Management Holdings, LLC has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.

“The hospice industry relies on the Medicare Trust Fund, and payments for unnecessary services jeopardize its financial viability,” said U.S. Attorney Rod J. Rosenstein.

“This settlement is the result of the Justice Department’s efforts to prevent the misuse of the taxpayer-funded Medicare hospice program, which is intended to provide comfort and care to terminally ill persons in the final stages of their disease” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division.

“Medicare and taxpayers depend on hospice agencies to provide medically appropriate services to terminally ill patients,” said Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General’s region including Arizona. “When providers place more importance on the bottom line than on the care of these vulnerable patients, they can expect to face serious penalties.”

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 billion.

The allegations settled today arose from a lawsuit filed by a former Hospice of Arizona employee under the qui tam, or whistleblower provisions, of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. The whistleblower in this case will receive $1.8 million. The case is United States ex rel. Momeyer v. Hospice of Arizona, L.C., et al., No. 1:10-cv-280 (D. Md.).

Hospice of Arizona, L.C., American Hospice Management, LLC, and American Hospice Management Holdings, LLC deny the allegations.

United States Attorney Rod J. Rosenstein commended the investigative work performed by the Department of Health and Human Services Office of the Inspector General. Mr. Rosenstein also thanked Assistant U.S. Attorney Roann Nichols and Christelle Klovers of the Department of Justice’s Civil Division, who handled the case for the government.

Baltimore, Maryland – A federal grand jury has indicted Aaron G. Seltzer, age 36, of Trappe, Maryland, on nine counts of wire fraud in connection with a scheme in which he converted funds intended for real estate investments to his personal use. The indictment was returned on March 14, 2013, and unsealed today upon Seltzer’s arrest.

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); and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

According to the nine count indictment, Seltzer was a licensed Maryland attorney who handled real estate transactions and maintained an office in Crofton, Maryland. The indictment charges that from January 2008, through 2010, Seltzer offered victims fraudulent investment opportunities then diverted the money intended for the investments for his own benefit. The indictment alleges that Seltzer obtained a total of $747,860 through eight fraudulent transactions and seeks forfeiture of that amount as the proceeds of the scheme.

For example, Seltzer offered to sell an investor 45% of an Anne Arundel County real estate company, claiming that he owned 100% of the stock, assets and liabilities of the company, when in fact, he did not. The investor sent a total of $92,000 to Seltzer, which Seltzer allegedly used for his own benefit.  During the summer of 2009, Seltzer contacted a lawyer in New York and represented that a client of Seltzer’s was seeking a business loan. According to the indictment, Seltzer proposed that the loan be secured by a mortgage on three commercial properties located in Virginia, purportedly owned by Seltzer’s client.  The New York attorney assembled a group of investors to fund the loan. Seltzer presented the attorney with a fraudulent promissory note, which Seltzer falsely claimed was signed by a representative of his client.  Seltzer further falsely represented that he had conducted the closing for the loan and presented the attorney with fabricated closing documents. On behalf of the investors, the attorney wired Seltzer $497,527 to fund the loan, which Seltzer allegedly diverted to his own benefit.

Seltzer faces a maximum sentence of 20 years in prison on each of the nine counts of wire fraud.  Seltzer is scheduled to have his initial appearance at 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.

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 HSI Baltimore, and the FBI and for their work in the investigation and recognized the Maryland Attorney Grievance Commission for its assistance.  Mr. Rosenstein thanked Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.

SBA Loan Underwriters Relied on False Representations by Borrowers and Brokers

Baltimore, Maryland - Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 43, of Falls Church, Virginia, pleaded guilty today to conspiracy to commit bank fraud, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million. Joon Park and others were charged in a second superseding indictment that was returned by a federal grand jury on March 7, 2013.

The guilty plea and indictment were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

“SBA underwriters approved $100 million in business loans brokered by Jade Capital based on fraudulent bank statements, checks, gift letters, resumes and tax returns that made it appear as if the borrowers had invested money in the businesses,” said U.S. Attorney Rod J. Rosenstein. “When borrowers and brokers submit false information and fraudulent documents, the underwriting process is defeated and the taxpayers bear the loss.”

“The scope of this audacious scheme to fraudulently secure SBA-backed loans is outrageous,” said Inspector General Peggy E. Gustafson. “The SBA OIG will relentlessly pursue individuals who falsify documents to obtain approval for loans designed to help hard-working Americans realize their dreams of opening a business or expanding their operations. The SBA OIG appreciates the leadership of the U.S. Attorney’s Office and its partnership with the FBI in bringing forth this plea agreement.”

According to his plea agreement, Joon Park and his brother, Loren Park, owned and operated Jade Capital, a loan brokerage company specializing in securing loans for individuals interested in purchasing or refinancing small businesses in the Mid-Atlantic area. According to the indictment, Joon and Loren Park and others under their direction encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.

Joon Park admitted that from 2003 until October 2011, he and others under his direction, including Nick Park (no relation), Joo Hyuk “John” Lee, Sang Hyun Kim, and In Jung Ham, submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients that contained fraudulent documents, including: bank statements for borrowers that were altered to make it look like the borrowers had more cash to inject into the business they were buying than they in fact did; counterfeit cashier’s checks and fake gift letters that made it look like the borrowers had more assets at their disposal to use as down payments than they did; fabricated resumes that made it look like the borrowers had more experience running the businesses they sought to purchase than they did; fake tax returns that made it look like the borrowers had greater income than they did; phony interim financial statements that made other businesses the borrowers owned look more profitable than they were; and a number of other misrepresentations.

The Parks charged a loan brokerage fee to both the financial institutions and the borrowers for assembling and submitting loan application packages that resulted in the issuance of SBA-guaranteed loans. The fees charged to borrowers were hidden from the financial institutions underwriting the loans. The Parks also had undisclosed ownership interests in businesses involved in some of the transactions and received loan proceeds, unbeknownst to the lenders, in a number of transactions. In one instance, the Parks did not have an ownership interest in a company involved in a transaction but persuaded the seller to assign some of the loan proceeds to them and then converted those proceeds to their own personal use.

According to his plea agreement, Joon Park also worked with a settlement attorney to facilitate loan closings for deals that would otherwise fail to meet the lending parameters of the banks making the loans, by misrepresenting to the banks and to the SBA the true amount of money involved in the transactions and/or the true names of the parties taking part in the transactions. In addition to conducting fraudulent closings, this settlement attorney wired money to Jade Capital clients to make it appear as though they qualified for loans, when they did not, and received, at Joon Park’s direction, loan proceeds to repay those loans.

Joon Park faces a maximum penalty of 30 years in prison. As part of his plea agreement, Joon Park will be required to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for May 28, 2013 at 1:00 p.m.

Nick Park, a/k/a Nochol Park, age 46, of McLean, Virginia, was sentenced to 33 months in prison; and Joo Hyuk “John” Lee, age 39, of Richmond, Virginia, and Sang Hyun Kim, age 35, of Fairfax, Virginia, were each sentenced to three years in prison, for conspiracy to commit bank fraud. Kim’s wife, In Jung Ham, age 30, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Judge Quarles ordered Lee to pay restitution of $1,900,325 and ordered Ham to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively.

In addition to Joon Park, Loren Young Park and Jade Capital & Investments, who were charged previously, the second superseding indictment included two new defendants, Seung E. Oh, a/k/a Sandy Oh, age 44, of Great Falls, Virginia; and Seung Hyun Shin, a/k/a/ Phillip Shin, age 39, of Villanova, Pennsylvania. Oh is an attorney with offices in Annandale, Virginia and the owner operator of Washington Settlement Group, a title company located in Annandale. From 2004 through 2008, Shin was the owner and operator of Cosmopolitan Title and Settlements, LLC, a title company located in Rockville, Maryland. The indictment alleges that the defendants engaged in a conspiracy to commit bank fraud, bank fraud and money laundering, resulting in losses of more than $102 million.

The defendants face a maximum sentence of 30 years in prison for the bank fraud conspiracy and for each count of bank fraud; and 20 years in prison for each count of money laundering. Seung Hyun Shin had his initial appearance on March 18, 2013, and Seung E. Oh is scheduled to have her initial appearance on April 5, 2013, in U.S. District Court in Baltimore. Loren Park is believed to be in Korea.

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.

These law enforcement actions are 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 SBA Office of Inspector General, U.S. Postal Inspection Service and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who are prosecuting the case.

Robber Identified After Drinking a Red Slurpee Prior to the Robbery

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Anthony Griffin, age 44, of Baltimore, today to 151 months in prison followed by three years of supervised release for robbery. Judge Hollander enhanced Griffin’s sentence upon finding that Griffin is a career offender based on four prior convictions for robbery related crimes.  His federal sentence will be served concurrent to a 15 year state sentence Griffin is currently serving for a 2010 robbery conviction in Baltimore County.

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 his plea agreement, on February 5, 2007 Griffin selected several items at a lingerie store located at 1003 South Charles Street in Baltimore that he pretended to want to purchase.  After the store owner placed the items in a bag, Griffin told her “this is a robbery” and demanded money from the register.  The store owner placed approximately $200 in the bag with the items, and upon Griffin’s further demand, gave him her diamond engagement ring.

At this point, a customer entered the store.  Griffin forced the store owner to tie the hands and feet of the customer with pantyhose, and then Griffin tied the owner’s hands and feet with pantyhose.  A friend of the owner who was coming to meet her saw Griffin leave the store and suspecting something was wrong, alerted a nearby policeman who located the owner and customer.  The owner told the policeman that the robber’s mouth was red, as if he had been drinking a red beverage.  Griffin had discarded the Slurpee straw and cup at a nearby jewelry store soon before the robbery.  A clerk at the nearby jewelry store identified Griffin in a photo lineup as the man who had drank and discarded the Slurpee at the jewelry store. DNA was recovered from the straw used by Griffin to drink the Slurpee.  The lingerie store owner/victim also identified Griffin in a photo lineup.

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 Benjamin M. Block , who prosecuted the case.

Stole Over $166,000 During Six Years

Greenbelt, Maryland - U.S. District Judge Alexander Williams Jr. sentenced Penny Parker Green, age 34, of Bowie, Maryland, today to 54 months in prison, followed by three years of supervised release, in connection with a scheme to steal over $166,000 from the ARC of Prince George’s County, which provides in-home support, daycare and employment services for people with intellectual and developmental disabilities and their families. Judge Williams ordered that Green pay restitution of $166,137, and forfeit two laptops, three desktop computers, a printer, XBOX, Wii, Playstation 3 and four HDTVs obtained as a result of the scheme.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; and Chief Mark A. Magaw of the Prince George's County Police Department.

Green was employed by the ARC of Prince George’s County and according to her plea agreement, from November 2006 to February 2012, Green stole $166,137 from ARC and up to 72 group home residents. Green used her ARC corporate credit card to: purchase airfare to Aruba, an island tour and a sunset sail; install custom closets in her home; and purchase computers, electronics, furniture and other merchandise and services. Green also directed other employees to withdraw cash from individual residents’ bank accounts for her personal use. Finally, Green stole petty cash that was intended for the benefit of individual residents to purchase items for herself. Green concealed the thefts by submitting paperwork that falsely described the expenditures, and then debited individual residents’ accounts for the purchases.

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 Prince George's County Police Department for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Christen A. Sproule, who prosecuted the case.

 

Greenbelt, Maryland – Alejandro A. Salas, age 65, of Silver Spring, Maryland pleaded guilty today to making a false statement on a tax return.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“Mr. Salas’ license to run his business was not a license to engage in fraud,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington, D.C. Field Office. “The defendant's misconduct of underreporting his income from his tax preparation business was purely fraudulent. IRS Criminal Investigation will use our investigative and financial expertise to detect and hold accountable individuals like Mr. Salas, who carry out these types of fraudulent schemes.”

According to his plea agreement, from 2004 to 2008, Salas ran a tax return preparation business in Silver Spring, Maryland, under the name of G&S Enterprises of Maryland (G&S).  His business also offered translation services, provided accounting and bookkeeping services for local companies, facilitated international money transfers, brokered mortgage loans, and offered travel agency services.  In 2009, after learning that he was the target of a criminal investigation, Salasmoved the location of his business and began preparing tax returns for clients under the corporate name TAX USA, a business which he incorporated under the name of another individual.  Between 2004 and 2009, Salas’s business prepared over 15,700 tax returns for clients.

Salas admitted that for tax years 2003 through 2005, he underreported the income from his tax preparation business on his individual income tax returns; and underreported the income from the business on the corporate tax return he filed for the 2006 tax year.  For example, on Schedule C of his 2005 income tax return, Salaslisted thegross income from his sole proprietorship as $295,537, when in fact, the gross income from his business substantially exceeded that amount. For tax years 2007 through 2009, Salas failed to file either corporate or individual tax returns.  The total tax loss to the government as a result of Salas’ actions is at least $200,000.

Salas faces a maximum sentence of three years in prison and a fine of $250,000. U.S. District Judge Roger W. Titus has scheduled sentencing for June 10, 2013 at 3:00 p.m.

United States Attorney Rod J. Rosenstein praised the IRS-CI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who is prosecuting the case.

Baltimore, Maryland - After a five day bench trial, U.S. District Judge William D. Quarles, Jr., convicted Pedro Rodriguez Garcia, age 34, formerly of Rosedale, Maryland, late yesterday of conspiring to commit an armed commercial robbery on July 29, 2009, armed robbery and brandishing a gun during a crime of violence.

The verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore City Police Department; Chief James W. Johnson of the Baltimore County Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore County State’s Attorney Scott Shellenberger; Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and Maryland Attorney General Douglas F. Gansler.

“Superb law enforcement coordination brought the defendant to justice for the armed robbery that resulted in the tragic death of Constantine Frank,” said U.S. Attorney Rod J. Rosenstein.

“The worldwide presence and investigative capabilities of the Diplomatic Security Service enables us to work with our law enforcement partners domestically and around the world to bring criminals to justice,” said Niall Meehan, Special Agent in Charge of the Washington Field Office of the Diplomatic Security Service.

According to evidence presented at the trial, Garcia participated in a robbery planned by Nikolaos Mamalis. Mamalis recruited Garcia, Daniel Chase and others to rob Constantine Frank, the owner of Precision Vending located on S. Lakewood Avenue in Baltimore. Mamalis knew the owner socially and from prior business dealings, and he was familiar with the physical layout and security at Precision Vending from previous visits with Mr. Frank. On July 29, 2009, after Mamalis advised his co-conspirators that Mr. Frank was alone inside, Garcia and Chase entered the business disguised as package delivery men. Chase took out a gun from a false package they had brought inside, brandished the weapon and then gave it to Garcia who used the gun to hold Mr. Frank captive. The two robbers also used zip-ties and duct tape to restrain the victim while Chase searched the business for cash, stealing over $11,000. Knowing that Mr. Frank would recognize him, Mamalis waited outside the building and received periodic reports from Chase using prepaid wireless phones which Mamalis and a co-conspirator had previously purchased.

The robbers left Mr. Frank bound, knowing that he was sweating profusely and in obvious discomfort. Shortly after leaving, Chase called one of Mr. Frank’s other businesses and said: “Your boss is in his office, and he is not doing so good.” Mr. Frank had suffered a stroke by the time officers found him conscious, but still in physical restraints and unable to speak. Mr. Frank was listed in critical condition when he arrived at the hospital and died less than two weeks later on August 11, 2009. The autopsy concluded that the cause of death was an intra-cerebral hemorrhage associated with stress resulting from the robbery and ruled the death a homicide.

After Mr. Frank’s death, Garcia fled the country and was captured by agents from the U.S. Border Patrol two years later.

Garcia was convicted of conspiracy, commercial robbery, and a corresponding firearms charge, and faces a mandatory minimum sentence of 57 years in prison and a maximum of life in prison. Judge Quarles has scheduled sentencing for June 18, 2013 at 1:00 p.m.

Nikolaos Mamalis, age 56, of Edgewood, Maryland, was sentenced to 77 years in prison, for conspiracy, three counts of commercial robbery and three corresponding firearms charges in connection with the Precision Vending robbery and two home invasion robberies in Maryland. Mamalis was convicted by a federal jury on February 3, 2011. Daniel Chase, age 67, of Browns Mill, New Jersey; pleaded guilty to his participation in a series of robberies planned by Mamalis and was sentenced to 141 months in prison.

United States Attorney Rod J. Rosenstein thanked: the Federal Bureau of Investigation; Baltimore City Police Department; Baltimore County Police Department; New Jersey State Police; the Baltimore City State’s Attorney’s Office; Baltimore County State’s Attorney’s Office; and U.S. Department of State’s Diplomatic Security Service, for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorneys Debra L. Dwyer and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who are prosecuting the case.

Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced David Ector, age 55, of Lusby, Maryland, today to two years probation after Ector pleaded guilty to discharging fill material into the Chesapeake Bay without a permit, in violation of the Clean Water Act. As a special condition of his sentence, Chief Judge Chasanow ordered that the defendant remove, at his own expense, all fill material discharged into the Chesapeake Bay.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge David G. McLeod, Jr., of the Environmental Protection Agency’s Criminal Investigation Division - Philadelphia Area Office.

“This country's environmental laws are aimed at keeping our inland waterways free from materials that do not belong there,” said David G. McLeod, Jr., Special Agent in Charge of EPA's criminal enforcement program in Maryland. “By ignoring restrictions on fill material in and around Chesapeake Bay, the defendant interfered with the critical habitat of an endangered species. Today's guilty plea and sentencing demonstrates that those who illegally alter or destroy these essential natural resources will be prosecuted.”

According to his plea agreement, Ector owned a cliff-front property in Calvert County. From May 28 through May 30, 2010, Ector caused large rocks (rip rap) to be dumped over the cliff-face. Ector did not obtain a permit to put the rocks into the Chesapeake Bay, as required by the Clean Water Act. The rip rap also scraped away soil on the cliff-face as it slid down the slope, interfering with the critical habitat of an endangered species.

United States Attorney Rod J. Rosenstein praised the EPA Criminal Investigation Division and the U.S. Fish and Wildlife Service, Office of Law Enforcement, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case.

Also Distributed Crack Cocaine and Heroin

Greenbelt, Maryland - U.S. District Judge Roger W. Titus, Jr. sentenced Rashard Wilson, age 22, of Capitol Heights, Maryland, today to 235 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), crack cocaine and heroin.  Judge Titus enhanced Wilson’s sentence upon finding that he is a career offender based on four previous convictions for 2nd degree assault, carjacking, assault on a police officer and possession with intent to distribute PCP.

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

According to Wilson's guilty plea, from August 2011 through February 2012, Wilson participated in a conspiracy to distribute PCP and other drugs in the Prince George’s County and Washington, D.C. area.  During the conspiracy, Wilson bought PCP, cocaine and heroin from co-defendant Samuel Braxton, a/k/a “Fats.”  Wilson then redistributed the drugs to his customers.  Wilson and other members of the conspiracy used Braxton’s apartment in Temple Hills, Maryland, as a base of operations for storing and distributing narcotics.  Wilson often met Braxton at the apartment to obtain drugs.  Between November 2011 and January 2012, Wilson and Braxton were overheard by law enforcement using coded language to discuss their drug trafficking activities.  On December 8, 2011, Wilson was stopped by law enforcement in Washington, D.C., after visiting Braxton’s apartment.  As Wilson was pulling over, officers saw the front seat passenger throw a white plastic bag out the window.  Officers found the bag, which contained two bottles with a total of approximately eight ounces of PCP.

Over the course of the conspiracy, Wilson was responsible for the distribution of between one and three kilograms of PCP, between 28 and 112 grams of crack cocaine, and between 20 and 40 grams of heroin.

Braxton, age 44, of Temple Hills, pleaded guilty to his role in the scheme and is scheduled to be sentencing on April 1, 2013.

United States Attorney Rod J. Rosenstein commended the DEA 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.

Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Edgar Daniel Mazariegos-Cifuentes, age 40, a Guatemalan citizen illegally residing in Monroe, New York, today to 10 years in prison, followed by lifetime supervised release, for transporting a minor to engage in sexual activity. Judge Williams ordered that upon his release from prison, Mazariegos 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 William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Chief A. Alex Melchiorre of the Monroe, New York Police Department.

According to his plea agreement, in November 2011, the 15 year old daughter of close family friends of Mazariegos moved from Guatemala to Monroe, New York, to live with her mother and stepfather. Mazariegos frequently visited the girl’s home and was treated as a member of the family. On several occasions, Mazariegos drove the girl and her family members to or from Boston to visit the girl’s uncle. Between November 2011 and August 2012, Mazariegos and the girl communicated by telephone and computer. Mazariegos also posted messages on the girl’s Facebook page professing his love for her.

On August 13, 2012, the girl had an argument with her mother and called Mazariegos because she was upset. Early the next day, Mazariegos picked up the girl and drove her to Silver Spring, Maryland, and checked them into a hotel so that he could engage in sexual intercourse with the girl. On August 15, 2012, Mazariegos rented a room in an apartment, presenting the girl as his girlfriend. On August 25, 2012, Maryland State Police Child Recovery Unit officers and Special Agents from the Department of Homeland Security located Mazariegos and the victim in the apartment.

When the victim was interviewed, she reported that when Mazariegos initially picked her up, she thought he was taking her to her uncle’s home in Boston. The victim stated that Mazariegos took her phone away when she said she wanted to call her uncle and told her that he was taking her to Silver Spring, Maryland so they could start a new life together. The victim advised that Mazariegos forced her to have sex with him at the hotel and several more times during the 11 days they were in Maryland.

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.

The 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.

United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Maryland State Police Child Recovery Unit, and the Monroe, New York Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who is prosecuting the case.