District of Maryland

Treacherous Officer Protected Drug Dealer, Filed False Police Reports, Planned Armed Robbery and Sold Stolen Property

Baltimore, Maryland - Baltimore Police officer Kendell Richburg, age 36, of Baltimore, pleaded guilty today to conspiracy to distribute heroin and possession of a firearm in furtherance of drug 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 Commissioner Anthony W. Batts of the Baltimore Police Department.

“Kendell Richburg’s treacherous conduct harms all police officers,” said U.S. Attorney Rod J. Rosenstein. “He helped a drug dealer avoid arrest while planning an armed robbery and filing false police reports about other suspects.”

“Kendell Richburg's unacceptable criminal actions are an affront to the law enforcement profession and the hard working men and women of the Baltimore Police Department,” said Baltimore Police Commissioner Anthony W. Batts. “Today's plea agreement is a victory for the citizens of Baltimore and a representation of this agency's unwavering commitment to accountability and the delivery of justice.”

According to his plea agreement, from June 2011 through October 2012, Richburg, who was assigned to the Violent Crimes Impact Section in the Northwestern District of the Baltimore Police Department, conspired with a street level drug trafficker to distribute heroin. Richburg’s co-conspirator was a registered confidential informant with the Baltimore Police Department. The co-conspirator sold drugs in the Pimlico area of Northwest Baltimore. Richburg provided information to the co-conspirator that permitted him to sell drugs without interference from law enforcement, telling the co-conspirator on a near daily basis when it was “safe” to go out to sell drugs. In return, the co-conspirator provided Richburg with information about his drug customers so that Richburg could arrest them. Richburg paid his co-conspirator, with official Baltimore Police Department funds for providing the information that resulted in the arrest of the drug customers. Richburg sometimes gave the co-conspirator back some of the drugs seized from the drug purchasers so that the co-conspirator could re-sell the drugs. Richburg falsified the arrest documents to eliminate the co-conspirator’s involvement, often falsely stating that Richburg had witnessed a drug transaction.

In early 2012, the FBI received information that Richburg was trafficking in stolen property, including iPhones, iPads and other electronics, and obtained a wiretap of Richburg’s cellphone. Intercepted conversations confirmed that Richburg was trafficking in stolen property and led to the discovery of Richburg’s drug trafficking.

Richburg and the co-conspirator were also overheard discussing the “planting” of evidence, and arranging an armed robbery. For example, on September 2, 2012, Richburg and the co-conspirator discussed having the co-conspirator plant a gun in an unlicensed cab, then having Richburg pull over and arrest the cab driver on a gun violation and pay the co-conspirator $350 to $400. On October 9, 2012, Richburg, armed with his service weapon, searched a person, without probable cause, and located a large amount of cash. The victim told Richburg that he had just received his paycheck. Richburg contacted his co-conspirator and arranged for the co-conspirator, whom Richburg knew was armed, to rob the victim, identifying where the victim was located.

Richburg faces a minimum mandatory sentence of five years in prison and a maximum of 40 years in prison for the drug conspiracy, and a minimum mandatory sentence of five years in prison, consecutive to any other sentence, and a maximum of life in prison for use of a firearm in relation to a drug trafficking crime. U.S. District Judge Richard D. Bennett scheduled sentencing for June 11, 2013, at 3:00 p.m. Richburg remains detained.

United States Attorney Rod J. Rosenstein praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Peter M. Nothstein, who are prosecuting the case.

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Dearius Forrester, a/k/a “D,” “Little D,” “Muffler” and “Chicken,” age 24, of Rosedale, today to 20 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute powder and crack cocaine.

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

According to Forrester’s plea agreement, the indictment and other court documents, from at least June 2009 through August 2010, Forrester led a drug distribution organization that operated in the Northeast Baltimore neighborhood known as the “4x4." The “4x4” is a small, relatively closed neighborhood consisting of four streets running north-south and four streets running east-west. Ravenwood, Elmora, Lyndale and Elmley Avenues all run east and west and are one-way streets. Greenview, St. Cloud, Highview and Longview Avenues all run north and south and are two-way streets.

The area is bordered on the east and west ends by Edison Highway and Belair Road, respectively.

According to his plea and other court documents, law enforcement overheard Forrester and his co-conspirators discussing their drug activities. Forrester admitted that during the time of the conspiracy he distributed crack and powder cocaine, collected money from drug customers and distributors, and assisted the drug trafficking activities of other members of the drug conspiracy. During the time of the conspiracy, Forrester was responsible for the distribution of 280 grams or more of crack cocaine, and 5 kilograms or more of powder cocaine.

Co-defendants Raymond Moore, a/k/a “Money,” age 20, and Tony Robinson, a/k/a “Peterman,” and “Pete,” age 30, both of Baltimore, each pleaded guilty to the same charge and were sentenced to 10 years in prison.

United States Attorney Rod J. Rosenstein thanked ATF’s Violent Crime Impact Team, the Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorney Michael C. Hanlon and former Special Assistant United States Attorney Traci L. Robinson, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.

 

Allegedly Conspired to Violate the U.S. Embargo Against Iran

Greenbelt, Maryland - A federal grand jury has indicted Ali Saboonchi, age 32, a U.S. citizen residing in Parkville, Maryland, and Arash Rashti Mohammad (Rashti), age 31, a citizen and resident of Iran, on charges of conspiring to export, and exporting, American manufactured industrial products and services to Iran.  The indictment was returned on March 4, 2013 and unsealed today upon Saboonchi’s arrest.

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

The International Emergency Economic Powers Act authorizes the President of the United States to impose economic sanctions on a foreign country when the President declares a national emergency.  In 1995, the President issued a series of Executive Orders declaring that the actions and policies of the Government of Iran constituted a national emergency.  In order to deal with that threat, the President imposed economic sanctions against Iran, to include a trade embargo (the Iran Trade Embargo).  In order to implement the Iran Trade Embargo, the U.S. Department of the Treasury promulgated regulations that prohibit the export, sale or supply to Iran of any goods or services from the United States without prior authorization.

The five count indictment alleges that from November 2009 to the present, Saboonchi and Rashti conspired to evade the Iran Trade Embargo by exporting American manufactured industrial goods and services to Iranian businesses.  Rashti, located in Iran, had Saboonchi in Maryland create and operate Ace Electric Company for the purpose of obtaining goods to be sent to Iran. Rashti, who operated businesses in Tehran, Iran and the United Arab Emirates (UAE), allegedly solicited purchase orders and business from customers in Iran for industrial parts and components manufactured in America, including:

• two cyclone separators, which are used in pipelines to separate impurities such as sand from liquids, for $2,114.53;
• six thermocouples, which are used to measure temperatures of liquids and gasses in industrial applications in the chemical and petrochemical fields, for $1,284;
• 10 stainless steel filter elements, which are used primarily in the oil and gas industry and can be used in water plants, hydrocarbon plants and nuclear plants, for $151.53;
• four bypass filters, for $1,911.03;
• three flow meters, which are used primarily in industrial applications to measure the flow of water but could be adjusted to measure other liquids and gasses, for $6,224.88;
• three actuator springs, which are used to control the flow rate of a liquid, for $112.07;
• numerous industrial parts, including hydraulic valves and connectors, for $7,067; and
• liquid pumps and valves, which have oil, gas, energy, aerospace and defense applications, for $2,320.48.

The indictment alleges that Saboonchi obtained price quotes and paid for these items, and took delivery of most of the goods, which he then shipped to co-conspirators in UAE and in at least one case, China.  Rashti would repay Saboonchi for the goods and further arrange for the entities in the UAE and China to send the goods on to him and his customers in Iran. The Defendants did not obtain authorization to export the products.

Saboonchi faces a maximum sentence of 20 years in prison for the conspiracy and on each of four counts for illegal export to an embargoed country. Saboonchi has his initial appearance today in U.S. District Court in Greenbelt and is detained pending a detention hearing scheduled for Wednesday, March 13, 2013, at 2:00 p.m. Rashti is believed to be living in Iran.

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

United States Attorney Rod J. Rosenstein praised the FBI and HSI Baltimore for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Gregory Welsh, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jermaine Miller, age 29, of Baltimore, today to 134 months in prison followed by three years of supervised release for possession with intent to distribute heroin. 

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

According to his plea agreement, on June 7, 2010 Baltimore police officers saw Miller exit an alley from the 1800 block of Rutland Avenue, Baltimore. When Miller saw the police officers, he popped an object into his mouth. The police officers ordered Miller to spit out the object, which was found to be a gel cap containing heroin.  Miller was arrested and four additional gel caps containing heroin were seized from Miller. A search warrant was executed at Miller’s residence and police seized a plastic baggie containing nine individual baggies of cocaine along with a .357 revolver and ammunition.

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

Recruited Bank Employees and College Students to Participate in the Scheme

Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Bolarinwa Adeyale, a/k/a “Bola,” age 23, of Greenbelt, Maryland, today to seven years in prison, followed by five years of supervised release, in connection with a scheme to use stolen credit card convenience checks and counterfeit checks to defraud financial institutions. Adeyale was convicted by a federal jury on February 27, 2012, of conspiracy to commit bank fraud, two counts of bank fraud and aggravated identity theft.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office.

According to evidence presented at the five day trial, in the fall of 2007 Adeyale; Okechukwo Otuya a/k/a Oke and Waffi; Oluwadamilola Feyisetan, a/k/a Dami (Dami); Adeniyi Adebiyi, a/k/a Niyi (Niyi); Alexander Diya and others devised a scheme to defraud Bank of America by depositing stolen credit card convenience checks into legitimate Bank of America accounts and withdrawing the money before the bank learned that the checks were not authorized. Adeyale, Otuya and Dami were among the leaders in the scheme. Adeyale, Otuya, Dami and Niyi obtained the convenience checks by stealing them from homeowners’ mailboxes in Montgomery, Howard and Prince George’s Counties. Adeyale and others also recruited college students to permit the use of the students’ bank accounts (the “compromised accounts”) to deposit stolen credit card convenience checks and make cash withdrawals from the accounts after the checks cleared. Adeyale and others also recruited bank employees to provide account information for “high end” bank customers, including the account name and numbers, customer’s signature cards or previously negotiated checks with appropriate signatures, and the customer’s address. Adeyale and others then used that information to create fraudulent checks for those accounts.

According to trial evidence, as a result of the scheme, the total amount of fraudulent deposits made by the conspirators from over 50 compromised bank accounts is over $1.2 million. The actual loss to Bank of America is over $600,000.

Otuya, age 31, of Laurel, Maryland, was sentenced to eight years in prison and was ordered to pay restitution, with the exact amount to be determined. Adebiyi, age 28, of Upper Marlboro, Maryland, was sentenced to four years in prison and ordered to pay restitution of $148,000. Feyisetan, age 24, of Laurel; Alexander Omotomiwa Diya, age 25, of Bowie; and Taiwo Akinyeke, age 28, of Laurel, were sentenced to 30 months, 28 months, and 15 months in prison, respectively, and were ordered to pay restitution of $33,135.58, $4,250, and $48,555.85.

In addition, co-conspirators Charles G. Richardson, Jr., age 26, of Capitol Heights, Maryland, was sentenced to 15 months in prison and ordered to pay restitution of $7,330.12; Oladipo Ayodeji, age 23, of Bowie, was sentenced to 14 months in prison in prison and ordered to pay restitution of $24,543.47; and Kennika Freeman, age 23, of Greenbelt, and Malia Forrester, age 31, of Millersville, Maryland, were each sentenced to five years’ probation. Marquis Borden, age 25, of Laurel, Maryland has pleaded guilty to his participation in the scheme and is 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 the U.S. Postal Inspection Service and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Robert K. Hur, who prosecuted the case.

Secretly Recorded a 13 Year Old Girl in a Bathroom

Greenbelt, Maryland – Frank Alan Klukosky, age 43, of Laurel, Maryland, pleaded guilty today to producing child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.

According to the plea agreement, in June 2012, a federal probation officer discovered images and videos of child pornography on the cell phone of a registered sex offender on federal probation.  Further investigation revealed that on June 24, 2012 Klukosky drove to the registered sex offender’s home in Laurel with an SD card that contained at least 120 images and six videos of child pornography.  Klukosky then helped the registered sex offender load those images and videos onto his computer and cell phone.

On October 23, 2012 the FBI executed a search warrant at Klukosky’s home and seized video cameras, key fob cameras, computers, an external hard drive and other computer accessories.  The external hard drive contained approximately 2,000 images and 16 videos of child pornography, including 11 videos depicting a 13 year old girl in a bathroom. The videos were taken with hidden key fob cameras. The videos were recorded on at least 10 occasions and depict the victim in stages of undress. In at least one of the videos, Klukosky is recorded while setting up or taking down the camera.

As part of his plea agreement, Klukosky must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

Klukosky and the government have agreed that if the Court accepts the plea agreement Klukosky will be sentenced to 20 years in prison followed by up to a lifetime of supervised release. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for May 20, 2013 at 1:00 p.m.

The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution

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

United States Attorney Rod J. Rosenstein commended the FBI, the Laurel and Howard County Police Departments and HHS-OIG for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who is prosecuting the case.

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Andrew Jackson, age 39, of Baltimore, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute cocaine. Jackson remains detained.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; and Wicomico County State’s Attorney Matthew Maciarello.

According to Jackson’s plea agreement, on May 12, 2011,after intercepting calls from one of Jackson’s co-defendants, law enforcement watched Jackson meet the co-defendant in a store parking lot in Salisbury, Maryland.  Jackson provided the co-defendant with a package containing over five kilograms of cocaine.  The co-defendant then handed Jackson a shopping bag containing $163,105 in cash.  Shortly after the meeting, law enforcement stopped the car being driven by Jackson and recovered the money.  On June 8, 2011, Jackson met a co-defendant in Severn, Maryland, where he delivered narcotics to the co-defendant. A search of Jackson’s home on June 29, 2011, recovered $626 in cash from the master bedroom and cocaine residue on the kitchen counter.  A subsequent search of Jackson’s car revealed a hidden compartment with two bags containing a total of $71,040 in cash inside.  Cocaine residue was also recovered in and around the hidden compartment.

United States Attorney Rod J. Rosenstein commended the DEA and the Wicomico County Narcotics Task Force, comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department and the Wicomico County State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Joshua Kaul, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Attempted to Rob Two More Banks

Baltimore, Maryland – Jeffrey Wayne Malcolm, age 56, of Laurel, Maryland, pleaded guilty today to bank robbery.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Frederick County Sheriff Charles A. “Chuck” Jenkins.

According to his plea agreement, Malcolm robbed the following four banks: PNC Bank at 7451 VanDusen Road in Laurel of $1,327 on October 28, 2011; PNC Bank at 1621 West Liberty Road in Sykesville of $3,597 on January 17, 2012; and the Suntrust Bank at 11323 Fingerboard Road in Monrovia of $1,776 on January 25, 2012, and $4,388 on February 4, 2012.

Malcolm also attempted to rob the PNC Bank at 15290 Frederick Road in Woodbine on November 7, 2011, but the teller refused to hand over money.  Two days later he attempted to rob the PNC Bank at its VanDusen branch, but when a teller saw him approach the bank wearing a ski mask, bank employees locked the front door, preventing him from entering.

Malcolm faces a maximum sentence of 20 years in prison and a $250,000 fine.  U.S. District Judge James K. Bredar scheduled his sentencing for July 1, 2013 at 9:30 a.m.

United States Attorney Rod J. Rosenstein commended the FBI, Laurel Police Department, Howard County Police department, Maryland Police Department, Frederick County Bureau of Investigations and Frederick County State’s Attorney=s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.

Greenbelt, Maryland - Shawn Fred Crawford, age 47, of Lusby, Maryland, pleaded guilty today to possession and distribution of child pornography.

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 the plea agreement, on July 25, 2012, Crawford distributed six images and 16 videos depicting children engaged in sexually explicit conduct. After an investigation by the FBI, a search warrant was executed at Crawford’s home on September 18, 2012. A subsequent forensic examination of the computers and other digital media seized during the search revealed approximately 4,700 images and 1,100 videos of children engaged in sexually explicit conduct, including children under the age of 12.

As part of his plea agreement, Crawford will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

Crawford faces a mandatory minimum sentence of five years and a maximum of 20 years in prison for distribution of child pornography; and a maximum of 10 years in prison for possession of child pornography, each followed by up to a lifetime of supervised release. U.S. District Judge Roger W. Titus has scheduled sentencing for May 14, 2013, at 9:00 a.m.

The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing and abused children.

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who is prosecuting the case.

Sold Night Vision Goggles and Monocular on eBay

Baltimore, Maryland – Anthony J. Torresi, age 34, of Coral Gables, Florida pleaded guilty late yesterday to unlawfully exporting night vision equipment.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

“One of ICE’s Homeland Security Investigations top enforcement priorities is preventing U.S. military products and sensitive technology from falling into the hands of those who might seek to harm America or its interests,” said William Winter, special agent in charge for HSI Baltimore. “This investigation is an example of HSI’s good partnership with the U.S. Attorney’s Office in Maryland to combat this threat.”

According to his plea agreement, Torresi listed night vision goggles and night vision monoculars for sale on eBay.  The items were designed to enable military ground troop personnel to conduct night operations.  A license from the U.S. Department of State is required to export the items.  Selling such items overseas without a license is a violation of the Arms Export Control Act.

On January 21, 2011 Torresi sold two of the night vision goggles for $7,039.99 to an undercover agent he believed to be located in New Zealand, but who was in fact located in Baltimore.  Torresi exported the goggles on February 11, 2011 from Miami, Florida to New Zealand.  The shipping label signed by Torresi showed the contents as a “gift” described as a “Rangefinder” valued at $70.  Torresi never applied for a license to export these items.

Similarly, on March 29, 2011 Torresi sold a 6015-4 night vision monocular to the undercover agent he believed to be located in New Zealand for $6,099.89.  On April 29, 2011, Torresi exported from Miami to New Zealand what he represented to be the 6015-4 night vision monocular that he sold for $6,099.98.  In fact, Torresi shipped a different night vision monocular that he had purchased for $266 and which did not require a license to export.

Torresi faces a maximum sentence of 20 years in prison followed by five years of supervised release and a $1 million fine for unlawful export of arms and munitions.  U.S. District Judge Ellen L. Hollander scheduled sentencing for June 21, 2013 at 2:00 p.m.

United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Counterproliferation Investigations Task Force, a multi-agency task force headquartered at the offices of HSI, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory Welsh, who is prosecuting the case.

Baltimore, Maryland - James Sweeney, age 36, of Baltimore, Maryland, was sentenced to life in prison, for conspiracy to participate in a violent racketeering enterprise known as the Dead Man Incorporated (DMI). Sweeney was a founder of DMI and became its “Supreme D.”

The sentence was imposed on February 25, 2013, by U.S. District Judge Marcia A. Crone in the Eastern District of Texas, where Sweeney is currently serving a 30 year Maryland sentence for a 1996 second degree murder conviction. As part of his Maryland plea agreement, at the conclusion of the sentencing, federal prosecutors in Texas dismissed an indictment charging Sweeney with the murder of an inmate at the federal prison in Beaumont, Texas.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; Anne Arundel County Police Chief Larry W. Tolliver; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Gregg L. Bernstein; and Anne Arundel County State’s Attorney Frank R. Weathersbee.

According to his plea agreement, in 2000, Sweeney was a founding member of DMI, created originally as a prison gang in Maryland. By 2006, DMI expanded its membership by recruiting members outside prison, including women.

Sweeney admitted that prior to his transfer to federal custody he was incarcerated in state prison facilities in Maryland and oversaw the activities of DMI. In order to make money for the gang and to enable white prisoners to retaliate against black gangs and cliques, Sweeney announced that DMI was available to do “hits” for hire. Sweeney participated in the smuggling of drugs into prisons by, and on behalf of, DMI members, including heroin, powder and crack cocaine, marijuana, and prescription drugs. During his years in prison in Maryland and in the federal system, Sweeney ordered numerous “hits” in furtherance of DMI, as well as assaults.

Perry Roark, a/k/a Rock, “Pops,” “Slim,” “Saho the Ghost,” age 42, previously pleaded guilty and was sentenced to life in prison for the racketeering conspiracy. Roark had been the “Supreme Commander” of DMI since it was originally created as a prison gang in Maryland in 2000.

Mr. Rosenstein praised the FBI, ATF, Maryland Department of Public Safety and Correctional Services; Baltimore County Police Department; Anne Arundel County Police Department; Baltimore City Police Department; the Maryland State Police; Baltimore County State’s Attorney’s Office; Baltimore City State’s Attorney’s Office; and Anne Arundel County State’s Attorney’s Office for their assistance in this investigation and prosecution.

United States Attorney Rod J. Rosenstein thanked the U.S. Attorney’s Office for the Eastern District of Texas for their assistance and commended Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

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

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Marco A. Williams, age 34, of Clinton, Maryland, today to 18 years in prison, followed by five years of supervised release, after Williams pleaded guilty to two counts of being a felon in possession of a firearm.  Chief Judge Chasanow found that Williams is an armed career criminal based on at least three previous violent crime or 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; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to Williams’ guilty plea, on August 20, 2009, Williams was involved in a car accident.  Prince George’s County Police officers responding to the accident saw the handle of a .40 caliber gun sticking out from under the driver’s seat.  Officers recovered the gun and 14 baggies of crack cocaine found during a search of the vehicle in a fake rock in the driver’s side door compartment.  A later search of Williams’ residence recovered 10 grams of crack cocaine, 49.24 grams of ecstasy, 75.52 grams of marijuana, $1,084 in cash, $3,000 in blank money orders and a 12-gauge shotgun.  Williams had previously been convicted of a felony and was prohibited from possessing firearms.  Williams remains detained.

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 Antonio J. Reynolds and William Moomau, who prosecuted the case.

Rodney Hailey Falsely Claimed His Company Produced 23 Million Gallons of Renewable Fuel

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Rodney R. Hailey, age 34, of Perry Hall, Maryland, today to 151 months in prison followed by three years of supervised release in connection with a scheme in which he sold $9 million in renewable fuel credits which he falsely claimed were produced by his company, Clean Green Fuel, LLC. Judge Quarles enhanced Hailey’s sentence upon finding that he obstructed justice by concealing, selling and spending assets that were protected by court order. Judge Quarles also ordered that Hailey pay restitution of $42,196,089.78 to over 20 companies, and forfeit $9.1 million in proceeds of the fraud including cars, jewelry, his home and bank accounts already seized by the government in partial satisfaction of such $9.1 million judgment.

Hailey was convicted on June 25, 2012, of eight counts of wire fraud, 32 counts of money laundering and two counts of violating the Clean Air Act. He has been detained since the guilty verdict.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge David G. McLeod, Jr. of the Environmental Protection Agency’s (EPA) Criminal Investigation Division; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Thomas Muskett of the EPA Office of Inspector General - Office of Investigations - Washington Field Office; U.S. Marshal for Maryland Johnny Hughes; and Chief James W. Johnson of the Baltimore County Police Department.

“Any government program that is based on trust is vulnerable to a fraudster like Rodney Hailey,” said U.S. Attorney Rod J. Rosenstein. “The only thing Rodney Hailey’s ‘Clean Green Fuel’ business produced was the dirty money he used to fund his lavish lifestyle.”

“Congress created the Renewable Fuel Standard program to ensure that transportation fuel sold in this country contains a requisite amount of renewable fuel to promote a cleaner and healthier environment,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program in Maryland. "The joint investigation into the defendant’s so-called biodiesel operation revealed no evidence that biofuel ever existed. Today’s sentence demonstrates that those who blatantly thumb their nose at the law in order to make money illegally will be prosecuted.”

“Ultimately, Mr Hailey’s greed has deprived him of his freedom as well as his personal property,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today’s sentence reaffirms that IRS Criminal Investigation, in cooperation with our law enforcement partners, is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”

According to evidence presented at the six day trial, Hailey owned Clean Green Fuel, LLC, located in the Baltimore area. Hailey registered Clean Green Fuel with the EPA as a producer of bio-diesel fuel, a motor vehicle fuel derived from renewable resources. In order to encourage the production of renewable fuel and lessen the nation’s dependence on foreign oil, all oil companies that market petroleum in the U.S. are required to produce a given quantity of renewable fuel or to purchase credits, called renewable identification numbers (RINs), from producers of renewable fuels to satisfy their renewable fuel requirements.

Between March 2009 and December 2010, Hailey engaged in a massive fraud scheme, selling over 35 million RINs (representing 23 million gallons of bio-diesel fuel) to brokers and oil companies, when in fact Clean Green Fuel had produced no fuel at all and Hailey did not have a facility capable of producing bio-diesel fuel.

Federal law enforcement agents investigated the scheme after a Baltimore County police detective working with Maryland’s federal financial crimes task force received a report about a large number of luxury cars parked in front of Hailey’s house. The financial crimes task force contacted the EPA’s Criminal Investigation Division and initiated a criminal investigation.

Two civil inspectors from EPA’s Air Enforcement Division visited Clean Green’s headquarters on July 22, 2010, to inspect Hailey’s bio-diesel production facility, in response to a complaint alleging that Clean Green had been selling false RINs. Hailey was not able to provide an exact location for the bio-diesel fuel production facility, nor any records to support claims that Clean Green Fuel had produced bio-diesel fuel. When asked to explain his method of production, Hailey falsely stated that he paid employees and contractors to recover waste vegetable oil from 2,700 restaurants in the “Delmarva” area and bring it to his production facility where he converted it to bio-diesel fuel. Hailey claimed that only the drivers who picked up the oil knew the names of the restaurants, and Hailey could not provide the names of the drivers.

Hailey made over $9.1 million from selling the false RINs. The loss to the traders and major energy companies who purchased Hailey’s false RINs is over $40 million, but the loss also extends to small bio-diesel companies which, as a result of Hailey’s scheme, were unable to sell their RINs and have been forced out of business.

Hailey used the proceeds of the scheme to purchase luxury vehicles, including BMWs, Ferraris, Bentleys, a Mercedes Benz, a Rolls Royce Phantom, a Lamborghini, a Maserati and others, as well as real estate and more than $80,000 in diamond jewelry. In all of these transactions, Hailey generally used cash or checks drawn on accounts he controlled to make the purchase, including a check for $645,330.15 to buy his home in Perry Hall.

For their work in this investigation, United States Attorney Rod J. Rosenstein praised the members of the Maryland Financial Crimes Task Force, including the U.S. Marshals Service, the Baltimore County Police Department and IRS - Criminal Investigation; and the EPA Criminal Investigation Division, U.S. Postal Inspection Service, and EPA Office of Inspector General - Office of Investigations. Mr. Rosenstein thanked Assistant United States Attorneys Tonya N. Kelly and Stefan Cassella, who prosecuted the case.

Convicted in a Similar Scheme in 2007

Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Lavon Richard Caldwell, age 31, of Baltimore, today to eight years in prison followed by five years of supervised release for bank fraud and four counts of aggravated identity theft. Judge Bennett also ordered Caldwell to pay restitution of $16,024.70.

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

Caldwell pleaded guilty after four days of trial to using the personal identifying information of individual victims, without their knowledge, to obtain credit accounts in the victims’ names. According to evidence introduced at trial, from September 2011 to February 3, 2012 Caldwell used the fraudulently obtained credit accounts to purchase high priced merchandise from retail stores, including designer clothing, electronics and other personal items, without intending to pay for the merchandise. Caldwell used fake driver’s licenses and other identifying information to assume the identity of the victims.

Caldwell stole the personal identifying information of five individual victims to purchase and attempt to purchase merchandise, including luxury items, such as Hermes sweaters and Gucci bags, electronics and other personal items, totaling at least $70,677.52.

On February 3, 2012 the defendant was arrested at the Neiman Marcus in Washington, D.C., while attempting to purchase $4,000 in merchandise using a fraudulently obtained account and fake driver’s license.

At the time Caldwell engaged in this fraud scheme, he was on supervised release after having served 61 months in federal prison for conspiracy to commit bank fraud and aggravated identity theft in connection with a similar scheme. Judge Bennett also sentenced Caldwell today to 21 months in prison, followed by two years of supervised release, to be served concurrent to the eight year sentence, for violating his supervised release.

United States Attorney Rod J. Rosenstein praised the U.S. Secret Service and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul Budlow and Michael Cunningham, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Robert Hubbard, age 37, of Baltimore, late yesterday to 15 years in prison, followed by five years of supervised release, for being a felon in possession of ammunition. Judge Bennett enhanced Hubbard’s sentence upon finding that he is an armed career criminal based on two previous convictions for carjacking and two previous robbery 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 testimony at Hubbard’s three day trial, on November 10, 2011, Baltimore Police Department officers executed a search warrant at Hubbard’s residence after a confidential informant purchased drugs from Hubbard at his home. During the search Hubbard was located in the front bedroom and told the officers that his gun was in the safe and the drugs on the bed belonged to him. During a search of the front bedroom, officers found a safe containing a .32 caliber revolver loaded with 5 rounds of ammunition, 1 box of ammunition (containing 47 .32 rounds), $150 cash, 1 clear ziplock bag with marijuana, and a copy of Hubbard's rental agreement. Officers also recovered 1 clear plastic bag containing seven ziplock bags of heroin and another clear bag containing cocaine.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, and Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.

Recruited Women and Girls Online Into a Bondage and Sadistic Lifestyle; Took the 15 Year Old Girl from Her Home and Kept Her Confined

Baltimore Maryland - U.S. District Judge James K. Bredar sentenced John Andrew Blaes, age 49, of Parkville, Maryland, today to 27 years in prison followed by a lifetime of supervised release for conspiracy to produce child pornography and transporting a minor to engage in sexually explicit conduct. Judge Bredar ordered that upon his release from prison, Blaes 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; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.

According to the plea agreement, at some time prior to March 2010, Blaes and 37 year old co-conspirator Margaret Jones met online and became involved in a sexual relationship. Blaes used the Internet to recruit other women and girls into a bondage and sadistic sexual lifestyle.

On July 5, 2011, Blaes solicited a 15 year old girl to have sex with him and Jones. Blaes and Jones knew that the victim was a vulnerable minor. Blaes and Jones sent pornographic pictures of themselves to the victim using the computer.

On July 22, 2011, Blaes and Jones traveled to the victim’s home in North Carolina to bring her to live with them in Parkville. After picking the victim up in North Carolina, Blaes and Jones sexually abused her in the back of their vehicle, including using bondage with ropes, chains and clamps. The next day, Blaes and Jones rented a hotel room in North Carolina to have sex with the victim. Blaes and Jones used a camera to document the sexual abuse of the victim in the van and the hotel. The images include sadistic and masochistic conduct.

From July 22 to November 20, 2011, Blaes and Jones engaged in sex acts with the victim multiple times a week. Blaes also cut the victim and held lemons to her injuries. Blaes and Jones instructed the victim to keep the sexual conduct and her age a secret. The victim was kept in their residence or in their control at all times, and was not enrolled in school.

Blaes and the co-conspirator used a camera and cell phones to photograph the victim in sexually explicit poses and their sexual abuse of the victim. Blaes distributed the sexually explicit images online to recruit other individuals.

Margaret Ellen Jones, of Parkville, Maryland, pleaded guilty to conspiracy to produce child pornography and is scheduled to be sentenced on June 11, 2013 at 4:00 p.m.

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

United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Judson T. Mihok, who prosecuted the case.

Charges Include Kidnapping and Murder in Aid of Racketeering

Baltimore, Maryland - A federal jury today convicted Jean Brown, age 43, of Jamaica 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. Co-defendant Gabriel Campa-Mayen, age 45, of Tijuana, Mexico, was acquitted of all charges.

The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.

“Today’s conviction of Jean Brown for drug conspiracy and kidnapping and murder in aid of racketeering is a victory for Homeland Security Investigations (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 that used intimidation and violence to further their criminal activities,” said William Winter, special agent in charge for ICE 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 were the leaders of 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 evidence showed that they transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.

Brown employed drivers to drive the trucks, 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. According to trial testimony, Knight was holding $1 million for the organization, but when the money was collected $250,000 was missing. Myrie drove Brown and Knight, who was bound with a telephone cable, and other members of the organization 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 Campa-Mayen and Leo Alvarez Tostado-Gastellium to murder Smith in Tijuana, Mexico. Witnesses testified that Tostado-Gastellium killed Smith, shooting him in the head. Brown also assaulted a former partner in the drug organization with a baseball bat and a woman and her infant child with boiling water and a with a knife.

Brown faces a maximum of life in prison for the drug conspiracy, for kidnapping in aid of racketeering, and for murder in aid of racketeering; and a maximum of 10 years in prison for conspiracy to commit murder in aid of racketeering.

Hubert Downer, a/k/a “Doc” and “Michael Reid,” age 51, of Jamaica; Dean Myrie, a/k/a “Journey,” age 39, of Jamaica; and Peter Blake, age 55, of Jamaica have all pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Leo Alvarez Tostado-Gastellium, a/k/a “Superman,” is a fugitive.

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 are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Donte Wise, age 30, 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 Wise=s guilty plea, Wise, Joseph Brown 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 Wise 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.  Wise and Brown 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.

Joseph McKinsey Brown, age 29, of Baltimore, previously pleaded guilty and is scheduled to be sentenced on March 27, 2013.

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.

Failed to Report Over $1.8 Million in Revenues Deposited in Overseas Accounts

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Bae Soo “Chris” Chon, age 49, of Beltsville, Maryland late yesterday to a year and a day in prison, followed by one year of supervised release for income tax evasion. Judge Quarles also ordered Chon to pay a fine of $15,000, and restitution of $412,404 to the IRS and $110,245.70 to the Maryland Office of the Comptroller. Chon was also required to pay a civil penalty of $441,482.50 for failing to disclose his foreign bank accounts. Chon tendered two checks to the IRS on September 11, 2012 for $111,069.72 and $679,775.78, reflecting the agreed restitution and his counsel’s calculation of the amount of the applicable interest and penalties, for the tax years 2008 and 2009 respectively.

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.

“The license to run a business is not a license to evade paying taxes, said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. All Americans have to pay their fair share of taxes for the various government services and protections that we all enjoy. Mr Chon’s sentence serves as a reminder that IRS Criminal Investigation is committed to maintaining the integrity of our tax system and will continuously direct its efforts at the portion of individuals who willfully choose to evade their tax obligations.”

According to his plea agreement, Chon owned and operated Mirage Cosmetics, Inc., which manufactured cosmetics products at its facility on Tucker Street in Beltsville. Mirage marketed its products domestically through Walgreens, Target, Costco and other chain stores, as well as in Canada, Australia, United Kingdom, Australia, Estonia, Dubai, Kuwait, Lebanon, South Africa, Germany, Japan, New Zealand, China and Vietnam. As a subchapter S corporation, the net profits Mirage earned were required to be reported as taxable income by Chon.

In the fall of 2008, Chon started a tax evasion scheme whereby he caused the proceeds from Mirage’s transactions with many of its foreign distributors to be diverted into foreign bank accounts in Hong Kong and Seoul, South Korea. The funds deposited into these foreign accounts were not reflected on Mirage’s official records. Accordingly, Chon substantially understated Mirage’s income on his 2008 and 2009 personal income tax returns. Chon continued making deposits into these undisclosed foreign accounts until November 2010, when IRS investigators learned of the accounts.

On March 23, 2009, the IRS announced the agency’s Overseas Voluntary Disclosure Program, which offered taxpayers who maintained previously undisclosed foreign bank accounts incentives to disclose those accounts and bring themselves into compliance with the law. This highly-publicized program remained open until October 15, 2009, and nearly 15,000 taxpayers took advantage of it to make voluntary disclosures about foreign bank accounts in more than 60 foreign countries. Chon did not disclose the existence of his foreign bank accounts under this program.

On November 16, 2010, IRS agents executed a search warrant at Mirage’s offices and seized a laptop computer on which the records of the foreign accounts were kept. Thereafter, Chon timely filed his 2010 federal and state personal and corporate tax returns, in which he reported the amounts that had been deposited in the overseas bank accounts during the 2010 tax year. Chon paid the tax due for the tax year 2010 in 2011, after he became aware of the investigation.

As a result of the scheme, approximately $1,818,895 in revenues from Mirage’s foreign clients that were diverted into the overseas bank accounts resulted in understating Chon’s federal and state tax liability by $522,649.70 for the tax years 2008 and 2009.

United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.

Maryland Task Force Aggressively Pursues Federal Charges for Child Prostitution

Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Justin Harris, age 28, of Baltimore, Maryland, today to nine years in prison followed by three years of supervised release for being a felon in possession of a gun and ammunition.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge 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 Harris’ plea agreement, on January 17, 2012, an undercover Baltimore Police officer saw a woman offering crack cocaine for sale in the 1800 block of N. Collington Avenue in Baltimore. The undercover officer provided the woman with pre-recorded buy money, and saw the woman walk into a home on N. Collington Avenue where she obtained the drugs. The home was Harris’ residence. A search warrant was executed on January 30 at the home. Harris was present. Law enforcement seized a handgun with an obliterated serial number, and 10 cartridges, along with 4.7 grams of cocaine, marijuana and drug trafficking paraphernalia.

Harris had previously been convicted of a felony and 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 this investigation. Mr. Rosenstein thanked Assistant United States Attorney Kenneth S. Clark, who prosecuted the case.

Baltimore, Maryland - Lemoyne Veney, age 44, of Clarksville, Maryland, pleaded guilty today to bank fraud conspiracy and aggravated identity theft.

The guilty plea 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 Harford County Sheriff L. Jesse Bane. According to his plea agreement, from November 2007, through February 2011, Veney conspired with Theresa Smithrick, Kevin Pittman, and others in a scheme to use stolen personal identifying information (PII) to fraudulently obtain money from financial institutions. Specifically, in 2010 Veney met Smithrick, who was employed as a clerk at the Baltimore City District Court. Veney asked Smithrich to help him to gather personal identifying information, which she agreed to do. On approximately eight occasions, Veney gave Smithrick a sheet with eight to 10 names and accompanying PII, with some blank PII fields missing, such as driver’s license number, date of birth, or middle name. Smithrick completed the missing fields by accessing a secure Maryland Motor Vehicle Administration database and faxed the completed sheets to another co-conspirator, as directed by Veney. The co-conspirator who received the completed sheets bartered with Veney and agreed to provide driver’s licenses to Veney in exchange for the PII. In turn, Veney and other co-conspirators used the stolen PII, as well as the counterfeit driver’s licenses, to perpetuate the scheme.

Veney also created false businesses and supporting business documents, which he shared with his co-conspirators, including Kevin Pittman, so that he and his co-conspirators might incorporate some of the fraudulent businesses with the Maryland Department of Assessments and Taxation (“MDAT”) and other states’ departments of state. Veney and a co-conspirator would either sell the business information to others, or keep the information and attempt to establish related business checking accounts.

For example, Veney provided Pittman with fake identification, counterfeit supporting business documents, and counterfeit checks that Veney made in his home, which contained the stolen PII of unwitting victims but the pictures of Veney, Pittman and other conspirators. Pittman then used the counterfeit documents and compromised identities provided by Veney to incorporate fraudulent businesses. Veney also established matching business checking accounts for those fraudulent businesses for use in the scheme. Veney drove Pittman to various financial institutions in Frederick, Columbia and other locations in Maryland, where Pittman used the fake documents to open business and personal bank accounts. Pittman deposited the counterfeit business checks into these fraudulently opened bank accounts, then withdrew the funds before the checks could be identified as fraudulent. Pittman was paid a commission for each transaction. Veney also drove Pittman to supermarkets, where they cashed counterfeit checks, or purchased gift cards and other merchandise, with counterfeit checks drawn on real persons’ accounts, using the fraudulent identification documents provided by Veney as proof of identity.

As a result of the scheme, more than 50 victims lost a total of at least $70,000.

Veney faces a maximum sentence of 30 years in prison for the bank fraud conspiracy and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Richard D. Bennett scheduled sentencing for May 22, 2013 at 3:00 p.m.

Theresa Smithrick age 47, of Baltimore, and Kevin Pittman, now using the name “Breona Pittman,” age 33, of Chesapeake, Virginia, both previously pleaded guilty to their roles in the scheme and are scheduled to be sentenced on April 29, 2013 and May 1, 2013, respectively.

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

United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Harford County Sheriff’s Office for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.

Baltimore, Maryland - Federal criminal complaints have been filed charging four men, initially arrested and charged in Worcester County, with gun and drug violations. Tony Lamont Mills, age 32, of Berlin, Maryland, has been charged with possession with intent to distribute heroin and possession of a firearm by a felon. The second criminal complaint charges Ramon M. Diamos, age 47, and Arlon J. Macatangay, age 51, both of Jersey City, New Jersey and Ricky Ibanga, age 38, of Bayonne, New Jersey, with conspiracy to distribute and possess with the intent to distribute in excess of 50 grams of crystal methamphetamine

The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Worcester County State’s Attorney Beau Oglesby; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; 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; Worcester County Sheriff Reggie T. Mason, Sr.; Chief Arnold Downing of the Berlin Police Department; and Acting

Chief Kevin Kirstein of the Ocean City Police Department.

The State’s Attorney for Worcester County, Beau Oglesby said, “I applaud the combined efforts of Worcester County Sheriff’s Office, the Maryland State Police, the Ocean City Police Department, the Berlin Police Department, ATF and HSI for their investigations in these cases. The adoption of these cases by the United States Attorney’s Office demonstrates the strength of the relationship between local and federal authorities as we work together to pursue the eradication of controlled dangerous substances from our streets and to remove the criminals who are armed with illegal firearms from our communities.”

According to the affidavit filed in support of the arrest of Diamos, Macatangay and Ibanga, the three were pulled over by Maryland State Police on Route 13, near the Virginia State line for a traffic stop. The Trooper learned that Diamos was wanted on a New Jersey warrant and he was arrested. A clear glass pipe and a small amount of methamphetamine were recovered from Diamos’ front pants pocket. During a subsequent search of the car, the Trooper discovered a manilla envelope that contained 240 grams of crystal methamphetamine, and a receipt in Macatangay’s name. Macatangay and Ibanga were then arrested and additional methamphetamine was recovered from Macatangay’s jacket pocket.

Diamos, Macatangay and Ibanga face a minimum mandatory sentence of 10 years in prison and a maximum of life in prison for conspiracy to distribute methamphetamine. Diamos, Macatangay and Ibanga had an initial appearance this afternoon in U.S. District Court in Baltimore and are detained. Ibanga is scheduled for a detention hearing on February 15, 2013. Diamos and Macatangay consented to detention.

According to Mills’ criminal complaint, on at least two occasions in August 2012, an undercover police detective conducted two hand to hand purchases of heroin from Mills, meeting Mills in his vehicle. On August 31, 2012, law enforcement executed a search warrant at Mills’ residence. Mills was discovered hiding in a bedroom closet, where officers also located a loaded .32 caliber revolver and a box of .32 caliber ammunition. During the search, officers also recovered heroin, marijuana and drug packaging material.

Mills faces a maximum sentence of 20 years in prison for possession with intent to distribute heroin and up to life in prison for being a felon in possession of a firearm. Mills also had an initial appearance today in U.S. District Court in Baltimore and is detained.

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

United States Attorney Rod J. Rosenstein praised the ATF, HSI Baltimore, Worcester County Sheriff’s Office, the Maryland State Police, the Ocean City Police Department and the Berlin Police Department for their work in these investigations. Mr. Rosenstein thanked Assistant United States Attorneys Michael C. Hanlon and Christopher J. Romano, who are prosecuting the Mills and Diamos cases, respectively.

Greenbelt, Maryland - Michael Abobor, age 38, of Bowie, Maryland, pleaded guilty late yesterday, on what would have been the first day of his trial, to wire fraud in connection with a mortgage fraud scheme involving intended losses of at least $2 million.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Inspector General Jon T. Rymer of the Federal Deposit Insurance Corporation; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; and Special Agent in Charge Joe Clarke of the Housing and Urban Development Office of Inspector General - Office of Investigations.

According to his plea agreement, in the Spring and Summer of 2007, Abobor, a licensed realtor, submitted fraudulent loan applications for the purchase of homes in Maryland. Abobor purchased two homes in his own name, and purchased the rest of the homes using the names, and credit, of various friends and family members. Each loan application contained fraudulent information about the borrower’s earnings (including their monthly income and their assets) and employers, of which Abobor had full knowledge. Some of these applications contained fake documents, like doctored W-2s and paystubs; and all of them alleged that the borrower made much more money than he or she really did. Based on these fraudulent application materials, the victim lending institutions funded loans that totaled hundreds of thousands of dollars, resulting in substantial commission payments to Abobor. Eventually, each of these loans fell into default, causing large losses to the victims. Abobor also collected large amounts of money in additional payments funded by the mortgages that were disguised as “renovation payments.”

For example, on July 25, 2007, Abobor facilitated the purchase of a home in Bowie, and while serving as the buyer’s real estate agent, knowingly submitted a false loan application on the buyer’s behalf. The loan application, among other things, vastly inflated the buyer’s monthly income figures. Relying upon these false representations, the lending institution funded a loan of $375,000. As part of this transaction, Abobor received a commission payment of $5,499, and also received over $37,000 in “renovation” payments.

In all, Abobor arranged at least seven fraudulent real estate transactions, caused more than $2,000,000 in intended losses to victim financial institutions, took in excess of $20,000 in fraudulent real estate commissions, and collected over $270,000 in extra money from the transactions in the form of third party disbursements for renovations that were never completed.

Abobor faces a maximum sentence of 30 years in prison and a fine of $1 million. As part of his plea agreement, Abobor will be ordered to forfeit$2,026,205, and the order of forfeiture may include assets directly traceable to his offenses, substitute assets, and/or a money judgment equal to the value of the property derived from, or involved in, the scheme. U.S. District Judge Peter J. Messitte scheduled Abobor’s sentencing for April 18, 2013.

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

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

United States Attorney Rod J. Rosenstein praised the FDIC Office of Inspector General, U.S. Secret Service and the Department of Housing and Urban Development Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sujit Raman and Sean B. O’Connell, who are prosecuting the case.

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr., sentenced Barry Thomas, age 51, of Baltimore, Maryland, today to 235 months in prison followed by five years of supervised release for possession of a firearm in furtherance of drug trafficking. Judge Quarles enhanced Thomas’ sentence upon finding that he is a career offender based on two previous drug trafficking convictions.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Robert Brisolari of the Drug Enforcement Administration - Washington Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to Thomas’ plea agreement, in November 2009, Thomas supplied heroin and cocaine to co-defendant LaKeisha Holloway. Co-defendant Darryl Chase assisted Thomas. For example, on November 6, 2009, Holloway called Thomas and arranged to obtain heroin and cocaine from Thomas and Chase. Thomas and Holloway again spoke by phone later in the day to finalize the order and make arrangements to meet in Baltimore the next day.

On November 7, 2009, Thomas’ vehicle was stopped by law enforcement in the 700 block of North Longwood Street in Baltimore, near the location at which Holloway and Thomas had agreed to meet. The car was being driven by Thomas and Darryl Chase was in the front passenger seat. A search of the Toyota Avalon recovered two bags of heroin and one bag of cocaine in the center console, with a 9mm handgun found directly next to the bags of drugs. A subsequent lab analysis confirmed that two bags contained a total of 44.73 grams of heroin, and the third bag contained 7.42 grams of cocaine.

LaKeisha Holloway, age 32, and Darryl Chase, age 53, both of Baltimore, pleaded guilty to their roles in the drug trafficking scheme and were sentenced to 12 years in prison and 37 months in prison, respectively.

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

Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. convicted Corey Moore, age 37, of Takoma Park, Maryland, today after a one week bench trial, of possession with intent to distribute controlled substances, specifically cocaine and phencyclidine (PCP); possession of firearms in furtherance of a drug trafficking crime; and being a felon in possession of guns and ammunition.

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Alan Goldberg of the Takoma Park Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

“Corey Moore will no longer sell drugs and foment violence on the streets of Maryland and D.C.,” said U.S. Attorney Rod J. Rosenstein.

According to evidence presented at trial, on September 25, 2010, Moore possessed with intent to distribute powder cocaine, which was recovered by Takoma Park police after a chase. In addition, on September 27, 2010, police executed a search warrant at Moore’s residence and seized one kilogram or more of PCP, which Moore intended to distribute, as well as a .44 caliber, semi-automatic pistol, a.38 caliber revolver, and six rounds of .38 caliber ammunition. Trial testimony showed that Moore possessed the guns to further his drug trafficking and that Moore was prohibited from possessing the guns and ammunition due to a previous felony conviction.

Moore faces a maximum sentence of 20 years in prison for possession with intent to distribute cocaine; a minimum of 10 years and a maximum of life in prison for possession with intent to distribute one kilogram or more of PCP; five years in prison, consecutive to any other sentence imposed, for possession of a firearm in furtherance of a drug trafficking crime; and a maximum of 10 years in prison for being a felon in possession of guns and ammunition. Moore remains detained pending his sentencing, which has been scheduled for May 30, 2013.

United States Attorney Rod J. Rosenstein praised ATF, the Takoma Park Police Department, Montgomery County Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Jonathan Lenzner, Steven E. Swaney, and Mara Zusman Greenberg, who are prosecuting the case and Assistant U.S. Attorney Jonathan Biran, who assisted with the prosecution.

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Reginald D. Dargan, Jr., age 21, of Baltimore, Maryland, today to 135 months in prison followed by five years of supervised release for the March 30, 2011 armed robbery of a jewelry store in the Columbia Mall. Judge Blake also ordered Dargan to pay restitution of $33,255.

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 Commissioner Anthony W. Batts of the Baltimore Police Department; and Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.

“This is the kind of cooperative effort that results in positive outcomes,” said Howard County Police Chief William McMahon. “The case is a great example of how a collaborative team can take a potentially dangerous criminal off the streets. We appreciate the efforts of all our partners.”

According to the testimony at Dargan’s three day trial, on March 30, 2011, Dargan and two co-defendants, Deontaye Harvey and Aaron Pratt drove to Columbia Mall to commit the armed robbery. Dargan was armed with a knife and Harvey and Pratt were each armed with a gun. They entered a jewelry store in the Mall and brandishing their weapons demanded that store employees open the display cases. One employee tried to run out into the Mall to get help, but Dargan and Harvey went after him and brought him back into the store at gunpoint, while Pratt stayed in the store with the other employees. Dargan then had a store employee empty the men’s watch display into a bag that Dargan was carrying and the three robbers left the Mall.

Dargan and his co-defendants stole 35 men’s Rolex watches valued at approximately $275,475.

Pratt and Harvey, both age 22, of Baltimore, previously pleaded guilty to their roles in the scheme and were sentenced to 87 months and 162 months in prison, respectively.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Howard County Police Department and the Baltimore City and Howard County State’s Attorney’s Offices for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Benjamin M. Block, John W. Sippel, and A. David Copperthite, who prosecuted the case.

Targeted Older, Retired Homeowners, Some of Whom Lost Their Life Savings

Baltimore, Maryland - Casey Charles, age 33, of Baltimore, pleaded guilty today to mail fraud in connection with a scheme in which he promised to help clients make safe investments when in fact he diverted their money for his personal benefit.

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

"When something sounds too good to be true, it usually is," said Postal Inspector in Charge Gary R. Barksdale of the US Postal Inspection Service - Washington Division. “Investors should always be wary of unrealistic claims. Postal Inspectors will continue to pursue those criminals who use the mail to further their fraudulent investment schemes."

According to his plea agreement, beginning in 2007, Charles owned a company named Infinite Equity Strategies, LLC which he promoted as a financial strategies company that had not “lost a dime in the recession.” Charles held himself out as a financial specialist and safe money advisor, who could help his clients put their retirement funds into products that would provide “high returns without high risk.” Charles solicited potential clients by using direct mailings, newspaper ads and TV commercials. For these mailings, Charles targeted clients who were retired and/or between the ages of 55 and 80, married, owned their home and had an annual income over $25,000. Charles was not registered with the State of Maryland, nor the Securities and Exchange Commission as an investment adviser.

Charles executed his scheme by using two methods. Under the first method, Charles told his clients to liquidate their current investments and provide him with the funds, so that he could place the money into safer investment accounts with higher returns. However, Charles instead deposited the funds into his own accounts. He used some of the fraudulently obtained funds to invest in risky and unauthorized investments on behalf of his clients, and for his own personal and business expenses, including credit card and mortgage payments. To conceal his scheme, Charles created fraudulent letters and account statements purporting to be from well-known financial products and services providers, in order to lead his clients into believing that he had in fact deposited their money into safe investment products as promised.

The second method used by Charles to defraud his clients involved recommending that his clients open accounts with a reputable self-directed IRA custodian where, he told them, they would be able to have more control over where to invest their funds. After his clients transferred their investment funds, however, Charles submitted forged documents to the trust company, directing it to transfer his clients’ funds to a bank account that he controlled. Charles used most of these funds for his own personal and business expenses.

Charles also concealed his scheme by using new client funds to make “lulling payments” to existing clients who requested to liquidate, or receive distributions from, the investments they thought Charles had set up for them.

As a result of his scheme, Charles defrauded over 22 clients of approximately $890,000 of their retirement funds, which in some cases were their life savings.

Charles faces a maximum sentence of 20 years in prison and a $1 million fine. U.S. District Judge Catherine C. Blake scheduled his sentencing for May 21, 2013, at 9:00 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 praised the U.S. Postal Inspection Service - Washington Division and the Securities Division of the Maryland Attorney General’s Office for their work in the investigation, and thanked Assistant U.S. Attorney Tonya N. Kelly, who is prosecuting the case.

Baltimore, Maryland - St. Joseph’s Medical Center, a hospital located in Towson, Maryland, has reached a settlement with the United States to pay $4.9 million in connection with its submission of false claims to Medicare, Medicaid, and other federal healthcare programs, the United States Attorney’s Office for the District of Maryland announced today.

This settlement resolves the hospital’s civil liability to the United States under the False Claims Act for the hospital’s voluntary disclosure that from 2007-2009 it engaged in a practice of admitting patients to the hospital unnecessarily. In particular, the hospital disclosed that it admitted patients for short stays - typically 1 or 2 days - that were not warranted by the patient's medical condition, and thereby generated a larger reimbursement than was proper for each patient. Of the $4.9 million to be paid by St. Joseph’s, $4.75 million will go the United States, and $152,406 will go to the State of Maryland, which is also a party to the agreement.

“Medical providers drain the resources of federal and state health care programs when they bill the government for unneeded medical procedures,” said the United States Attorney for the District of Maryland Rod J. Rosenstein.

This resolution is part of the government's emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.2 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.

Enacted during the Civil War, the False Claims Act is the government’s primary civil tool to combat fraud and abuse in federal programs and procurement. The Act allows the government to recover triple the amount of its actual damages, plus a civil penalty of $5,500 to $11,000 for each false claim.

United States Attorney Rod J. Rosenstein commended the Office of Inspector General of Department of Health and Human Services, the Department of Defense Criminal Investigative Services, the Inspector General for the Office of Personnel Management and the Justice Department’s Commercial Litigation Branch for their resolution of this matter. Mr. Rosenstein also thanked Assistant U.S. Attorney Thomas F. Corcoran, who handled the case.

Baltimore, Maryland - David Charles Richards, age 49, of Phoenix, Arizona, pleaded guilty today to stalking a woman in Maryland.

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 Richards’ guilty plea, from December 2006 through November 2011, Richards used the internet, telephone, electronic mail and the U.S. mail to stalk a woman in Maryland, including threatening to kill the woman. Richards and the woman had a prior romantic relationship, which the woman described as both troubled and violent.

According to Richards’ plea agreement, after not having any contact with the victim for almost 15 years, in June 2006, Richards contacted the victim’s sister telling her that he still loved the victim but wanted to hurt her. Beginning in July 2006, and during each subsequent year, the victim sought and was granted protective orders forbidding Richards to contact her. On December 11, 2006, the victim discovered that a website had been created in her name, which included a countdown clock to the expiration of the protective order the victim had taken out against Richards and other threatening material. In March of 2008, Richards attempted to purchase a firearm in Arizona, but failed to disclose that he was subject to a protective order. He was denied purchase of a firearm by ATF due to his prohibited person status. In December 2009, Richards mailed a threatening note, along with torn and shredded pieces of the protective orders that had been served upon him, to the victim’s home. Through January 2010, Richards left the victim at least eight voicemails totaling one hour and 40 minutes in length. Richards continued to post threats on websites directed at the victim, including as recently as November 2011. Richards’ long campaign of harassment and threats placed the victim in fear of death and serious harm.

Richards faces a maximum sentence of five years in prison for stalking. U.S. District Judge Ellen L. Hollander has scheduled sentencing for June 24, 2013 at 11:00 a.m. Richards remains detained.

United States Attorney Rod J. Rosenstein praised the FBI agents in Baltimore and Phoenix for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Rachel M. Yasser, who is prosecuting the case.

Baltimore, Maryland - Cary Anderson, age 32, of Dameron, Maryland, pleaded guilty today to sexually exploiting minors to produce child pornography.

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

Anderson and the government have agreed that if the Court accepts his plea, a sentence of between 23 and 27 years in prison is the appropriate disposition of the case. U.S. District Judge J. Frederick Motz has scheduled sentencing for April 11, 2013.

As part of his plea, Anderson will also be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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 is prosecuting the case.

Baltimore Maryland - Margaret Ellen Jones, age 37, of Parkville, Maryland, pleaded guilty today to conspiracy to produce child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.

According to the plea agreement, at some time prior to March 2010, Jones met John Andrew Blaes online and became involved in a sexual relationship involving bondage, discipline, sadism, and masochism (BDSM). Jones subsequently moved into Blaes’ home in Parkville. During this time, including in July 2011, Blaes used the Internet to contact other women and girls to recruit them into the BDSM lifestyle.

On July 5, 2011, Blaes contacted the victim, a minor female who was 15 years old at the time, and solicited her to engage in sexual conduct with him and Jones. Blaes and Jones knew that the victim was a vulnerable minor. As part of the solicitation process, Blaes and Jones sent pornographic pictures of themselves to the victim using the computer.

On July 22, 2011, Blaes and Jones traveled from Maryland to the victim’s home in North Carolina to bring her to live with them in Parkville. After picking the victim up in North Carolina, Blaes and Jones sexually abused the victim in the back of their vehicle. The next day, Blaes and Jones rented a hotel room in North Carolina for the purpose of engaging in sexually explicit conduct with the victim. Blaes and Jones used a camera to document the sexual abuse of the victim in the van and the hotel. The images captured by Blaes and Jones include sadistic and masochistic conduct.

From approximately July 22, 2011 to November 20, 2011, Blaes and Jones engaged in sex acts with the victim multiple times a week. Blaes also cut the victim and held lemons to her injuries. The victim was instructed to call Blaes “master” or “sir,” and to call Jones “mistress.” Blaes and Jones referred to the victim as their “slave.” Blaes and Jones instructed the victim to keep the sexual conduct and her age a secret and the victim was kept in their residence or in their control at all times and was not enrolled in school.

Blaes and Jones used a camera and cell phones to document their sexual abuse of the victim and to photograph her in sexually explicit poses. Blaes distributed the sexually explicit images of the victim online for the purpose of recruiting other individuals into his BDSM lifestyle with Jones.

As part of her plea agreement, Jones must register as a sex offender in the place where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (SORNA).

Jones faces a minimum mandatory sentence of 15 years and a maximum of 30 years in prison for conspiracy to produce child pornography, followed by up to lifetime of supervised release. U.S. District Judge James K. Bredar has scheduled sentencing for June 11, 2013 at 4:00 p.m.

John Andrew Blaes, age 49, also of Parkville, Maryland, previously pleaded guilty to the conspiracy and to transporting a minor to engage in sexually explicit conduct. Blaes is scheduled to be sentenced on February 19, 2013, at 2:00 p.m.

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

United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Judson T. Mihok, who are prosecuting the case.

Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Melvin Douglas, a/k/a Melvin Longwood, age 32, of Washington, D.C., today to 10 years in prison, followed by 10 years of supervised release, for transporting a minor across state lines to engage in prostitution. Judge Chasanow ordered that upon his release from prison, Douglas 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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police, as part of the Maryland Child Exploitation Task Force; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

According to Douglas’ plea agreement, from September 5, 2011 to February 9, 2012, Douglas transported a minor female from Washington, D.C. to hotels in Maryland to engage in prostitution. The Maryland State Police Child Recovery Unit received a missing child alert from the National Center for Missing and Exploited Children for a 15 year old female, who had been reported missing from Prince William County, Virginia. The Maryland Child Exploitation Task Force located an ad on a website frequently used to advertise prostitution and escort services that featured the missing girl.

A “date” was made with the victim, using the telephone number from the advertisement. A law enforcement officer was instructed to meet the girl at a motel in College Park, Maryland on February 9, 2012. An agent saw Douglas and another individual exit the motel room a few minutes before the arranged time for the date, and approach an SUV. Douglas was stopped and searched. A room key and $3,000 were seized. The missing girl was found in the motel room and interviewed. She confirmed that Douglas kept all the money she earned by prostitution.

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

The case was part of the Maryland Child Exploitation Task Force efforts to combat child prostitution. The Task Force, created in 2010 is comprised of 15 members representing 10 agencies, both state and federal. Since October 2011, the TF has recovered 32 juveniles and investigated 25 cases that have resulted in state and federal prosecutions. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.

United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police, Maryland Child Exploitation Task Force and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas and Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

Took Videos of Boys in Public Restrooms in Maryland Without Their Knowledge

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Brian Matthew Williams, age 28, of West Chester, Pennsylvania, today to 10 years in prison followed by 50 years of supervised release for receipt of child pornography.

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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cecil County State’s Attorney Edward D. E. Rollins, III; Harford County State’s Attorney Joseph I. Cassilly; and United States Attorney for the Eastern District of Pennsylvania Zane D. Memeger.

“This defendant egregiously violated the privacy of young boys by secretly recording them in public restrooms, a crime that gives every parent nightmares,” said U.S. Attorney Rod J. Rosenstein. “I am grateful to the vigilant citizen who noticed the unusual behavior and immediately called 9-1-1, and to the police and prosecutors who conducted an urgent investigation.”

According to his plea agreement, on May 6, 2012, Williams spent nearly five hours at the Maryland House and Chesapeake House rest stops on I-95, walking in and out of the men’s restrooms filming several minor males, most of whom were prepubescent, as they used the urinals. Williams positioned himself at an adjacent urinal and used his cell phone to create 21 videos. Williams would then leave the restroom and capture full length images of the young boys as they walked out, including their faces. After the parents of one of the victims reported Williams’ suspicious behavior to Maryland State Police, he was arrested, charged in Cecil County and released on bond the same day.

On June 13, 2012, a search warrant was executed at Williams’ residence and computers and other digital media were seized. A number of hard drives appeared to have been removed, and the operating system on the remaining hard drive had been reinstalled on May 28, 2012.

A subsequent background investigation of Williams revealed that he had been questioned by law enforcement on two previous occasions under similar circumstances. In 2007, law enforcement contacted Williams after they received several complaints that he had followed minors into the restroom at a college basketball game. In June 2010, Williams was questioned and released after an off-duty police officer saw him in the restroom of a movie theater pointing his cell phone at the genitals of young boys using the urinals.

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, Maryland State Police, Cecil County State’s Attorney’s Office, Harford County State’s Attorney’s Office and the U.S. Attorney’s Office for the Eastern District of Pennsylvania for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

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

Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Raymond Talley III, age 34, of Oxon Hill, Maryland, today to five years in prison, followed by six years of supervised release, for receipt of child pornography. Chief Judge Chasanow ordered that upon his release from prison, Talley must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation - Washington Field Office.

According to the plea agreement, on three occasions in August and September 2011, undercover law enforcement agents downloaded child pornography from files that Talley was sharing over the internet using a file sharing program. On October 7, 2011, two laptops, both with file sharing programs installed, were seized during a search of Talley’s home. Over 1,700 videos of children engaged in sexually explicit conduct had been downloaded and saved onto the laptops.

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, who prosecuted the case.

Skimmed Data from Retail Customers’ Credit Cards Where He Worked

Baltimore, Maryland - Tri Tran, a/k/a “Tony,” age 35, a citizen of Vietnam unlawfully in the country and residing in Maryland, pleaded guilty today to mail fraud in connection with a scheme to skim credit card account data and re-encoding the data onto different credit cards used to buy merchandise at retail stores.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; Harford County Sheriff L. Jesse Bane; and Harford County State’s Attorney Joseph I. Cassilly.

According to his plea, beginning in 2009 through February 28, 2011, co-conspirator Nghia Nguyen, a Vietnamese citizen residing in Santa Ana, California, mailed an electronic skimming device to Tran in Maryland who used the device at the business where he was employed to access data from customer credit cards. During 2009, Tran mailed Nguyen the skimming device approximately twice a month, typically when the data of five to 15 credit cards was stored on the skimmer. This pace picked up slightly in 2010, and in 2011 there were about four to five exchanges prior to his arrest. Tran would also mail several credit cards bearing his name to Nguyen.

Nguyen would then extract the data from the skimmer and re-encode the magnetic strip of the other cards with the victims’ data. Nguyen would then send Tran three or four re-encoded cards in return, and Tran would use these cards, typically for one or two transactions at about $200 per transaction before the accounts were shut down. This process was repeated several times over the course of the scheme.

On January 14, 2011, the Harford County Sheriff’s Office began investigating a complaint related to credit card skimming activity at the retail location where Tran worked. Tran’s residence was searched on February 28, 2011. Computer equipment and peripheral devices used in the creation of the fraudulent credit cards were seized.

As a result of the scheme, over 50 victims incurred losses totaling over $70,000.

Tran faces a maximum sentence of 20 years in prison and a $250,000 fine for mail fraud. U.S. District Judge James K. Bredar scheduled sentencing for May 24, 2013 at 4:00 p.m.

Nghia Nguyen, age 35, previously pleaded guilty to his participation in the scheme and was sentenced on December 17, 2012 to six years in prison.

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 HSI Baltimore, USSS, Harford County Sheriff’s Office and the Harford County State’s Attorney’s Office for their work in the case. Mr. Rosenstein also recognized HSI Orange County, the Drug Enforcement Administration and U.S. Postal Inspection Service in California, City of Orange Police Department, Costa Mesa Police Department and the U.S. Attorney’s Office for the Central District of California for their assistance in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.

Deposited Altered and Counterfeit Checks Into Bank Accounts They Controlled

Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Nathan A. Silla, age 39, of Glenn Dale, Maryland, today to 12 years in prison followed by five years of supervised release for conspiracy to commit bank fraud, two counts of bank fraud and aggravated identity theft, in connection to a scheme in which he and his co-conspirators created counterfeit checks and stole money using misappropriated bank account information and the personal identifying information of individuals. Judge Williams ordered Silla to forfeit $900,000 in cash, six flat panel TVs and other electronics, a 2004 Land Rover Range Rover, and jewelry, including a Cartier watch. Judge Williams also ordered Silla to pay restitution of $331,449 and to forfeit $100,000.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office.

Silla pleaded guilty after two days of trial. According to his plea agreement, Silla and co-conspirators Kodjo Kakra Duncan, Kodjo Panyin Duncan, Caleb K. Otsibah and Stephen L. Wise opened bank accounts at financial institutions in Montgomery and Prince George’s Counties in Maryland, and in Washington, D.C., in their own names, in false names, in family members’ names and in the names of shell corporations they controlled. Silla, the Duncans and Caleb Otsibah used stolen identifying information of individuals to open some of those accounts and obtain check cards.

Silla admitted that he and other conspirators obtained checks from victim individuals and corporations, which they washed to remove the actual payee’s names, then printed with the name of a conspirator, or one of the names being used by the conspirators. Silla and others also created counterfeit checks by printing the misappropriated name and bank account information of victim individuals and companies onto counterfeit checks. They wrote those checks payable to conspirators or companies controlled by conspirators. They deposited these altered and counterfeit checks into accounts they controlled.

Silla admitted that the intended loss from the scheme was at least $400,000.

Kodjo Kakra Duncan, age 39, of Capitol Heights, Maryland; Kodjo Panyin Duncan, age 39, of Lanham, Maryland; Caleb K. Otsibah, age 39, of Lanham; and Stephen L. Wise, age 23, of Washington, D.C., have previously pleaded guilty to their participation in the conspiracy. Each has been sentenced to between 37 and 66 months in prison, and ordered to pay restitution of at least $58,974.61 and up to $175,632.67.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service and U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christen A. Sproule, who prosecuted the case.

LEADER IN BALTIMORE HEROIN DISTRIBUTION RING SENTENCED TO OVER 15 YEARS IN PRISON

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Danilo Garcia, age 43, of Bronx, New York, today to 188 months in prison followed by five years of supervised release for conspiracy to possess with intent to distribute heroin and four counts of possession with intent to distribute heroin.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to testimony at Garcia’s 12 day jury trial, Garcia was a leader in a heroin trafficking organization, supplying heroin to distributors in Maryland and elsewhere. During the investigation, the FBI overheard phone calls in which Garcia arranged to sell heroin to co-defendants Walter Powell, Diego Amparo and others. For example, on July 22, 2011, agents set up physical surveillance in Philadelphia, after intercepting telephone calls in which Garcia brokered a deal for Powell to pick up heroin from Amparo in Philadelphia. Agents observed Powell arrive at the meeting place in Philadelphia and leave a short time later. Powell was stopped on I-95 while driving back to Maryland with approximately 144 grams of heroin in his possession. On four occasions between April 17, 2009 and August 5, 2011, law enforcement seized heroin from Garcia or one of his co-conspirators.

The jury found that Garcia was responsible for the distribution of at least one kilogram of heroin.

Walter Powell, age 61, of Baltimore, Maryland, was previously sentenced to 121 months in prison for the heroin conspiracy. Diego Amparo, age 48, was sentenced to seven years in prison for the heroin conspiracy, and for distribution of heroin.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Dennis Smith, a/k/a Domo, age 31, of Capitol Heights, Maryland, today to 150 months in prison, followed by 10 years of supervised release, for transporting a minor to engage in prostitution and sex trafficking of a minor.

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.

"The sexual victimization and trafficking of children is among the highest criminal investigative priorities for the FBI here in Maryland," said Stephen Vogt, Special Agent in Charge of the FBI's Maryland office. "This case highlights the exemplary work of the Maryland Child Exploitation Task Force and further validates the significant resources incorporated into working jointly with our law enforcement partners. The FBI pledges our firm commitment in finding, investigating and prosecuting individuals who prey on young victims."

According to Smith’s plea agreement, in October 2011, Smith met a 16 year old female on a social networking site. After a month of engaging in computer chats and text messaging, Smith drove to the girl’s home and picked her up. After picking up two adult women, Smith drove them all to Richmond, where the women engaged in prostitution. Smith had the girl collect the money made by the two women for two days. Smith then photographed and advertised the girl online for sexual services. The 16 year old engaged in commercial sex acts and provided the money she made to Smith. Smith then drove the three females back to Maryland, where he again advertised the 16 year old for sexual services. The next day the girl returned home.

In February 2012, Smith again picked up the 16 year old and another 15 year old female from their high school and took them back to his home. In March 2012, law enforcement was notified that Smith was prostituting the 15 year old girl at a hotel in New Carrollton, Maryland, through an online advertisement. An undercover law enforcement officer set up a “date” with the 15 year old girl. When the officer arrived at the hotel, he identified the 15 year old girl, as well as a 17 year old girl, who were engaged in prostitution. Smith was arrested at the hotel and his laptop and cell phone were seized along with tattoo equipment.

Smith admitted that he brought the 15 and 17 year old girls to his hotel where he photographed them and advertised them online for sexual services. Smith instructed the younger girl on how much to charge clients for sexual services and she provided the money she made from prostitution to Smith. There were text messages on Smith’s cell phone between Smith and the girls that related to the girls engaging in prostitution. Both the 15 and 16 year old girls were tattooed with Smith’s nickname,“Domo.”

This case is part of the Maryland Child Exploitation Task Force efforts to combat child prostitution. The Task Force, created in 2010 is comprised of 15 members representing 10 agencies, both state and federal. Since October 2011, the TF has recovered 32 juveniles and investigated 25 cases that have resulted in state and federal prosecutions. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, who are prosecuting the case.

Baltimore, Maryland - Lynn Carol Williams, age 56, of Middle River, Maryland pleaded guilty today to wire fraud in connection with a scheme to misuse the corporate purchasing card and cause losses of more than $107,000 to the Freestate Challenge Academy, a Maryland National Guard program located at Aberdeen Proving Ground.

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; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office and Chief Chip Honan of the Aberdeen Proving Ground Police Department.

According to her plea agreement, from October 2007, through February 2011, Williams worked as an administrative aide at Freestate Challenge Academy, a Maryland National Guard youth training program located at Aberdeen Proving Ground. Williams was authorized to use the Academy’s corporate credit card to make purchases for the Academy, and was required to prepare a monthly expense report, which included the purchasing card billing statement, original receipts, copies of the approved requisition forms, and a log of activity on the purchasing card. Once her supervisor approved the expense report, it was forwarded to the State of Maryland Military Department, which paid the account balance on the corporate purchasing card.

Williams admitted that from February 2008, through October 2010, she used the corporate credit card to buy gift cards and items over the internet for her personal use. For example, on May 18, 2010, Williams paid for two airline tickets for her and a friend to travel to Los Angeles, California, with six gift cards purchased with the corporate credit card. To conceal her fraud, Williams prepared false logs of the card activity and fictitious receipts, purportedly for office supplies, snacks for program participants and other legitimate items purchased from local stores.

Williams faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge Richard D. Bennett scheduled sentencing for May 6, 2013 at 3:00 p.m.

United States Attorney Rod J. Rosenstein praised the FBI, Defense Criminal Investigative Service and Aberdeen Proving Ground Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the case.

Greenbelt, Maryland - U.S. District Judge Alexander Williams Jr. sentenced Xavier Eccleston, age 35, of Bethesda, Maryland, today to 210 months in prison, followed by eight years of supervised release, for conspiring to distribute powder and crack cocaine, and four counts of possession with intent to distribute the drugs and use of a telephone to further the drug activity.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Robert Brisolari of the Drug Enforcement Administration - Washington Field Division; Acting Assistant Director in Charge Debra Evans Smith of the Federal Bureau of Investigation - Washington Field Office; Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; 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 evidence presented during the six-day trial, from June 2010 to September 2011, Eccleston purchased ounce quantities of powder cocaine from his suppliers in the Kentlands area of Prince George’s County, Maryland, including a crack house located at the Eaton Square apartment complex on Sheriff Road in Landover, Maryland. Eccleston socialized with co-conspirators who also sold crack cocaine and knew of such sales. The jury had found Eccleston responsible for re-distributing between 500 grams and five kilograms of powder cocaine and 28 grams of crack cocaine per month during the 16 month conspiracy, using a telephone at times to arrange the drug sales.

A cooperating witnesses testified that Eccleston had assaulted him and threatened the cooperator’s family unless the cooperating witness agreed to lie to the jury and testify that Eccleston was only a user of cocaine and not a distributor. Judge Williams also enhanced Eccleston’s sentence upon finding that he obstructed justice.

United States Attorney Rod J. Rosenstein commended the DEA, FBI, IRS - Criminal Investigation, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Jonathan Lenzner, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland - John Allen Talerico, age 50, of Cumberland, Maryland, pleaded guilty late yesterday to three counts of armed bank robbery.

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; Cumberland Police Chief Charles H. Hinnant; Allegany County Sheriff Craig Robertson; Frostburg Police Chief Royce C. Douty; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg, of the Combined County Criminal Investigations Unit (C3I).

According to his plea agreement, between March 11, 2011, and September 13, 2011, Talerico committed three armed bank robberies in Cumberland, Maryland. During each robbery, Talerico entered the bank, approached the teller and asked about opening an account, then pointed what appeared to be a large black semiautomatic handgun at the teller and demanded money. After the tellers gave Talerico cash, he threatened them and demanded more money from the tellers, then fled the bank. On one occasion, when a customer entered the bank during the robbery, Talerico pointed the gun at the customer, telling the customer to “get out of the way.” During the robberies, Talerico wore distinctive clothing, including a knit hat with a brim, and large framed glasses. Talerico obtained a total of approximately $31,206 from the three bank robberies.

The robberies were captured on bank surveillance video. During a search warrant executed at Talerico’s home on March 30, 2012, numerous articles of clothing matching those worn by the bank robber in the surveillance photos were seized.

Talerico faces a maximum sentence of 25 years in prison, for each of three counts of armed bank robbery. U.S. District Judge Marvin J. Garbis scheduled sentencing for May 3, 2013. Talerico remains detained.

United States Attorney Rod J. Rosenstein praised the FBI, C3I, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Maryland State Police, and Allegany County State’s Attorney’s Office for their work in the investigation and thanked the Mineral County Sheriff’s Office (WV), Pennsylvania State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul E. Budlow and Mark W. Crooks, who are prosecuting the case.

Baltimore, Maryland - Kevin Pittman, now using the name “Breona Pittman,” age 33, of Chesapeake, Virginia, pleaded guilty today to bank fraud conspiracy and aggravated identity theft.

The guilty plea 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 Harford County Sheriff L. Jesse Bane.

According to her plea agreement, from November 2007, through February 2011, Pittman conspired with others in a scheme to use the stolen identifying information of others to fraudulently obtain money from financial institutions. Specifically, a co-conspirator provided Pittman with fake identification, counterfeit supporting business documents, and counterfeit checks, which contained the stolen personal identifying information of individuals and pictures of Pittman and other conspirators. Pittman used the fake documents to open business and personal bank accounts at various financial institutions. Pittman deposited the counterfeit business checks into these fraudulently opened bank accounts, then withdrew the funds before the checks could be identified as fraudulent. Pittman was paid a commission for each transaction.

Pittman also used counterfeit documents and compromised identities provided to her by a co-conspirator to incorporate fraudulent businesses with the Maryland Department of Assessments and Taxation (“MDAT”) and other states’ departments of state, then established matching business checking accounts for those fraudulent businesses for use in the scheme. Finally, Pittman cashed counterfeit checks, which were drawn on real persons’ accounts, at retail supermarkets, using the fraudulent identification documents provided by her co-conspirator as proof of identity.

As a result of the scheme, more than 10 victims lost a total of between $30,000 and $70,000.

Pittman faces a maximum sentence of 30 years in prison for the bank fraud conspiracy and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Richard D. Bennett scheduled sentencing for May1, 2013.

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 Harford County Sheriff’s Office for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.

Baltimore, Maryland - A federal grand jury has indicted Kyle Stevens, a/k/a “Cappo,” age 22, of Remington, Maryland, on two counts of use of a firearm in furtherance of a drug conspiracy related to two murders and one count of conspiracy to distribute and possess with intent to distribute heroin, cocaine, crack cocaine and oxycodone. The indictment was returned on January 17, 2013, and unsealed on January 29, 2013, upon Stevens’ arrest.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; Anne Arundel County Police Chief Larry W. Tolliver; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Gregg L. Bernstein; and Anne Arundel County State’s Attorney Frank R. Weathersbee.

The three-count indictment alleges that beginning in 2005 Stevens was part of a conspiracy to distribute heroin, powder and crack cocaine, and oxycodone. Further, the indictment alleges that in furtherance of the drug conspiracy, on January 24, 2006, Stevens used a .45 caliber semiautomatic handgun to murder James Wright, a/k/a Ronnie Mo; and on September 21, 2007, used a .380 caliber semiautomatic handgun to murder Keith Ray, a/k/a Keithy.

Stevens faces a maximum sentence of life in prison for each of two counts of use of a firearm in furtherance of a drug conspiracy, and for the drug conspiracy charge. Stevens had his initial appearance on January 29, 2013 in U.S. District Court in Baltimore. Stevens is detained. A detention hearing is scheduled for Monday, February 4, 2013, at 11:30 a.m., before U.S. Magistrate Judge Beth P. Gesner, Courtroom 7B, 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.

Mr. Rosenstein praised the FBI, ATF, Maryland Department of Public Safety and Correctional Services; Baltimore County Police Department; Anne Arundel County Police Department; Baltimore City Police Department; the Maryland State Police; Baltimore County State’s Attorney’s Office; Baltimore City State’s Attorney’s Office; and Anne Arundel County State’s Attorney’s Office for their assistance in this investigation and prosecution.

United States Attorney Rod J. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Also Ordered to Pay Over $202,000 in Restitution

Baltimore, Maryland - U.S. District Judge Ellen L Hollander sentenced Amiee Arora, age 32, of Washington, D.C., today to nine years in prison, followed by three years of supervised release, for conspiracy to commit and committing credit/debit card fraud, and aggravated identity theft in connection with a series of fraud schemes. Judge Hollander also ordered Arora to pay restitution of $161,782.23 to the State of Maryland for fraudulent unemployment benefits paid to Arora and his co-conspirators, and $41,209.82 to the merchant to cover his losses in the credit card scheme.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent-in-Charge Michael Barcus, U.S. Department of Labor-Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division. Mr. Rosenstein thanked the Maryland Department of Labor, Licensing and Regulation (DLLR) for its assistance in this investigation and prosecution.

According to his plea agreement, Arora was the sole director and resident agent of Top Of The Line Marketing, Inc. (TOTL Marketing) and co-defendant Vivek Jain worked for him. From February 14, 2010 through February 14, 2011, Arora and Jain used identifying information that they obtained through TOTL Marketing to fraudulently apply for Maryland unemployment benefits. Arora instructed Jain as to how to fraudulently apply for Maryland unemployment benefits, which DLLR, who administered unemployment benefit programs in Maryland, provided to applicants on prepaid debit cards. Once the fraudulent benefits were approved, Arora and Jain changed the mailing address for the debit cards to mailboxes that they rented, then used the cards to withdraw cash from ATM machines. On February 14, 2011, law enforcement officers in Georgia recovered 42 debit cards issued through the Maryland unemployment insurance program, from Jain’s car. Police officers also located several pages and a computer file containing the personal identifying information of approximately 1,200 Maryland residents from the Eastern Shore, Hagerstown, Baltimore and Gaithersburg. Arora had obtained the list of individuals from AV Wireless, a telecommunications business that he operated from 2004 through March 2009, and supplied the list to Jain for his use in the scheme.

Arora and Jain obtained more than 45 unauthorized debit cards worth more than $340,000 in fraudulent unemployment benefits as a result of the scheme.

Vivek Jain, age 27, of Gaithersburg, Maryland, pleaded guilty to his role in the unemployment scheme and is awaiting sentencing.

Credit Card Fraud Scheme

From May 2011 through about August 2011, Arora made fraudulent representations to a merchant, that he was marketing a shopping club membership for a fee of $9.95. Arora obtained the credit card information of more than 30,000 individuals, which he planned to use to charge the membership fee. The merchant agreed to allow Arora to use his credit card processing account to “test” approximately 18,000 credit card numbers, and to actually charge the membership fee more than 10,000 times. The merchant forwarded Arora an agreed upon percentage of funds he received from each transaction. Eventually, the credit card and other companies began reversing the fraudulent charges and the merchant ended up being charged more than $40,000 in chargeback fees.

Pretrial Release Violations

Arora was placed on pre-trial release on August 26, 2011, under rigorous conditions, including that he stay at his parents’ home on 24/7 electronic home monitoring and that he not use a computer or other electronic device to access the Internet. Despite this, Arora arranged with a third party to purchase a cellular telephone in another name and have the phone delivered covertly to the basement door of his parents’ home. In this way, he was able to continue a scheme to defraud DirecTV.

DirecTV Fraud Scheme

Under federal regulations, DirecTV and its dealers are forbidden from engaging in unsolicited telemarketing pitches. DirecTV dealers receive a $200 commission from each new DirecTV subscription. In November 2011, Arora and others agreed to sell DirecTV subscriptions through unsolicited telemarketing, which DirecTV dealers would submit as their own sales, splitting the $200 commission with Arora. Arora and a co-conspirator also assumed the identities of dormant DirecTV dealer accounts to submit subscriptions that they intended to sell through telemarketing, in order to keep the full commission themselves.

On December 8, 2011, federal agents arrested Arora and executed a search warrant at his parents’ home in Potomac and recovered the cell phone Arora had illegally obtained, thereby preventing Arora from fully carrying out the DirecTV fraud.

United States Attorney Rod J. Rosenstein praised the U.S. Department of Labor-Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the U.S. Postal Inspection Service for their work in the investigation and thanked the Maryland DLLR, District Attorney’s Office, Atlantic Judicial District in Liberty County, Georgia and the Darien, Georgia, Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Tamera L. Fine, who prosecuted the case.

Allegedly Used His Employment With a Residential Mental Health Program To Steal Identity Information of Clients to Open Fraudulent Bank Accounts for Personal Use

Baltimore, Maryland - A federal grand jury today indicted Derrick Elrod, age 35, of Philadelphia, Pennsylvania in connection with a bank fraud scheme to use stolen, personal identifying information of individuals to open bank accounts and fraudulently obtain cash, merchandise and services.

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); Wicomico County Sheriff Michael A. Lewis; Acting Special Agent in Charge Sheila Olander 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 and bank fraud is often associated with refund fraud schemes, said Sheila Olander,” Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “The object of these schemes is to defraud the government, financial institutions and the taxpaying public. IRS Criminal Investigation welcomed the opportunity to lend its financial expertise in this investigation to assist in dismantling this criminal enterprise.”

Elrod worked for Resources for Human Development, Inc. (RHD), a nonprofit social services organization headquartered in Philadelphia. Elrod was an advisor at a residential program that supports individuals with mental health needs.

According to the five count indictment, from December 2008 through December 22, 2011, Elrod stole the personal identifying information of past or present residents of RHD. He provided the information to co-conspirators Christopher Devine, Quanishia Williamson-Ross, Lenee E. Williamson, Quashonna Williamson, and John Waters. In Maryland, Pennsylvania and elsewhere, Elrod and his conspirators allegedly used the stolen information to open accounts at banks, which Elrod’s conspirators then controlled. Elrod’s conspirators allegedly deposited fraudulent checks into the accounts and obtained check cards, then used the associated check cards at ATM machines to make cash withdrawals from the accounts.

The indictment further alleges that Elrod’s conspirators made fraudulent identification documents using the stolen personal information, 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 indictment further alleges that Elrod’s conspirators also used the check cards to obtain services, such as utilities, cable and cell phone service, and make purchases for their personal benefit at restaurants, drug stores, grocery stores, gas stations and video rentals and other businesses. Elrod and his conspirators allegedly would not pay for the services and merchandise, and the banks suffered a loss when the fraudulent checks deposited by the defendants were returned as unpaid.

Elrod faces a maximum sentence of: 30 years in prison for the bank fraud conspiracy; and two years in prison, consecutive to any other sentence, on each of three counts of aggravated identity theft. No court appearance has been scheduled.

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

In related cases, co-conspirators Christopher Andre Devine, age 33; Quanishia Williamson-Ross, age 31; Quashonna Williamson, age 26, and Lenee E. Williamson, age 22, all of Salisbury, Maryland, Frederica, Delaware and Philadelphia, Pennsylvania, and John Waters, age 38, of Philadelphia, previously pleaded guilty to their participation in the conspiracy. Judge Blake has scheduled sentencing for Devine on March 1, 2013 at 9:30 a.m., and for Quashonna Williamson and Waters on March 29, 2013 at 10:30 a.m. and 2:00 p.m., respectively. Williamson-Ross and Lenee Williamson are scheduled to be sentenced on March 5 and March 6, 2013, 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 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 are prosecuting the case.

Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Diane Michelle Pimble, age 41, of Washington, D.C., today to 14 months in prison, followed by three years of supervised release, for interstate transportation of stolen money and tax evasion. Judge Messitte also ordered Pimble to pay restitution of $152,918.03 to her employer and $26,697 to the IRS.

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; Chief Cathy L. Lanier of the Metropolitan Police Department; and Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“IRS Criminal Investigation views embezzlement schemes as a form of organized tax evasion,” said Shelia Olander, Acting Special Agent in Charge, IRS Criminal investigation, Washington DC Field Office. “Tax evasion undermines the integrity of our system of taxation. Today’s sentence ensures the public that offenders of these types of schemes are being caught and punished.”

According to her plea agreement, from early 2008 through late 2011 Pimble worked as a bookkeeper for an individual residing in Maryland. Pimble managed her employer’s accounts, paid bills, organized financial information using an accounting software program called QuickBooks, and prepared reconciliation reports of her employer’s bank accounts. In order to help fulfill these duties, at Pimble’s request, her employer gave her a stamp bearing her employer’s signature that Pimble would use to sign her employer’s checks.

Pimble, however, wrote over 100 unauthorized checks to herself, including grossly inflated salary checks for herself, that drew off her employer’s bank accounts. She stamped these unauthorized checks with her employer’s signature, and transported them from Maryland to the District of Columbia, cashing them at her local bank. Pimble concealed her fraud either by falsifying entries in her employer’s QuickBooks accounting program to show that the unauthorized checks had been made to other individuals or entities, or by failing to enter them at all. Pimble also created falsified balance reports so that her employer, when reviewing the documents, would believe that the accounts were balanced. Pimble transported across state lines a minimum of $152,918.03 of her employer’s money that was taken by fraud.

Finally, for the tax years 2008, 2009 and 2010, Pimble filed false federal individual income tax returns with the IRS by not reporting the income she received through her embezzlement, resulting in additional tax owed totaling $26,697.

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, Metropolitan Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Sujit Raman, who prosecuted the case.

Allegedly Used Personal Information Stolen from Puerto Rican Residents To File False Tax Returns from Maryland Seeking Refunds

Greenbelt, Maryland - A federal grand jury indicted Ewdy Jose Olivo, age 28, of Rockville, Maryland and his brother Juan Manuel Olivo, age 30, of Hyattsville, Maryland today for obtaining false tax refunds by stealing the identities of others to prepare and file false income tax returns.

The indictment 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.

“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” said Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “We are aggressively pursuing identify thieves and working with the U.S. Attorney’s Office in bringing to justice those who harm and steal from the American taxpayer.” The Olivo brothers owned and operated Oligil Tax Services located at 8549 Piney Branch Road in Silver Spring, Maryland.

The 18 count indictment alleges that from April 2007 to January 2010, the brothers stole personal identifying information such as social security numbers and birth dates of others, many of whom were residents of Puerto Rico and were not required to file federal income tax returns so long as all of their income was derived from Puerto Rican sources. The brothers allegedly prepared false income tax returns in the victims’ names and filed them electronically with the IRS from Maryland. They requested that the IRS mail tax refund checks to addresses controlled by them and deposited the checks into their bank accounts. The amount of individual refunds claimed ranged from $1,562 to $4,950.

The indictment seeks the forfeiture of $88,960 seized on April 10, 2012 from the defendants’ tax office and the home of Juan Olivo.

The defendants face a maximum sentence of 20 years in prison for conspiring to commit wire fraud and for each of 11 counts for wire fraud; and a mandatory minimum of two years in prison consecutive to any other sentence imposed on each of six counts of aggravated identity theft. Their initial appearance has not yet been scheduled.

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

United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Robert K. Hur, who is prosecuting the case.

Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Antonio Timothy Bailey, age 34, of Oxon Hill, Maryland, today to 16 years in prison followed by five years of supervised release for possession with intent to distribute crack cocaine base, and being a felon in possession of a firearm. Chief Judge Chasanow enhanced Bailey’s sentence upon finding that he is an armed career criminal based on three previous narcotics and gun 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; 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 Bailey’s plea agreement, on November 8, 2011, Bailey was sitting in his car, parked outside a known open air drug market, when he was approached by officers with the Prince George’s County Police Department (PGPD). As officers approached his vehicle, Bailey jumped out and ran away, followed by police. During the chase, Bailey threw a plastic bag containing 29 blue glassine baggies, containing a total of 3.06 grams of crack cocaine. Bailey was arrested and charged in the District Court for Prince George’s County, Maryland, with possession with intent to distribute crack cocaine, among other charges.

After additional investigation, on February 3, 2012, PGPD officers searched Bailey’s apartment in Oxon Hill. Bailey was found in the apartment and officers recovered: a loaded 9 mm caliber, semi-automatic pistol; 20.65 grams of crack cocaine, packaged in small glassine baggies; approximately 11 grams of marijuana; and drug distribution paraphernalia, including two electronic scales, empty glassine baggies, a cooking cup, baking soda, and a razor blade.

During a subsequent interview with police, Bailey admitted to purchasing two ounces of powder cocaine every two weeks, cooking it into crack cocaine at his apartment, packaging it for sale, and selling it at various locations in Prince George’s County. Bailey stated that he kept the gun in his apartment for protection.

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 this investigation. Mr. Rosenstein thanked Assistant United States Attorney Steven E. Swaney and Special Assistant U.S. Attorneys Jonathan Ophardt, assigned from the U.S. Department of Justice, and Paul Nitze, assigned from the Social Security Administration, who prosecuted the case.

Baltimore, Maryland - A federal grand jury has indicted Karen Kimble, a/k/a “Karen Kimble-Mamah,” and “Karen Mamah,” age 38, of Owings Mills, Maryland, on charges of wire fraud, subscribing to a false tax return, aiding in the filing of a false tax return, aggravated identity theft and visa fraud. The indictment was returned on January 24, 2013. Kimble has an initial appearance scheduled today at 2:15 p.m. in U.S. District Court in Baltimore, Courtroom 7B before U.S. Magistrate Judge Susan K. Gauvey.

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); Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.

“Fraud schemes involving identity theft cause tremendous financial damage and can make honest taxpayers face a more difficult time obtaining their lawful refund,” said Shelia Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Ms. Kimble’s refund fraud scheme victimized innocent taxpayers and tampered with the integrity of our nation’s tax system. The IRS will remain vigilant in our investigation of these schemes and will continue to work with prosecutors to combat this type of criminal conduct.”

The 21-count indictment alleges that from February 2008 through at least April 2012, Kimble, who falsely held herself out to others as a “certified tax preparer,” conducted a tax fraud scheme by submitting fraudulent tax returns for clients. Specifically, the indictment alleges that Kimble falsely inflated credits and deductions and clients’ tax returns, as well as on her own tax returns, in order to fraudulently increase the tax refund. Kimble provided her clients with a tax return that did not reflect the false deductions and credits, nor did she inform them of the fraudulent deductions/credits. Kimble filed the fraudulent returns without her clients’ knowledge or permission, using their personally identifiable information. Kimble directed that the tax refunds be mailed or directly deposited with all of the refund sent to Kimble, or with some of the refund sent to the taxpayer and some to Kimble. The indictment alleges that Kimble received a total of over $221,000 in fraudulent federal and tax refunds, none of which she reported as income on her own tax returns. The indictment seeks forfeiture of $221,698, alleged to be the proceeds of the scheme.

The indictment also alleges that on February 14, 2008, Kimble married a Ghanian citizen, knowing that the marriage was not valid because the Ghanian was not legally divorced from his first wife.

Kimball faces a maximum sentence of 30 years in prison for each of six counts of wire fraud; three years in prison for each of five counts of subscribing to a false tax return, and for each of five counts of aiding in the filing of a false tax return; a mandatory two years in prison, consecutive to any other sentence, for each of four counts of aggravated identity theft; and 10 years in prison for visa fraud.

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, IRS-Criminal Investigation and the USCIS Baltimore District Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter M. Nothstein, who is prosecuting the case.

Pointed a Gun at a Store Owner and Her Nine Year-Old Son

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Cedric Lamont Scott, age 39, of Baltimore, today to 183 months in prison, followed by three years of supervised release, for robbery and using a gun in relation to the robbery. Judge Blake also ordered Scott to pay restitution of $1,175.

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 Commissioner Anthony W. Batts of the Baltimore Police Department.

According to his plea agreement, on January 21, 2012, Scott entered a store in the 6700 block of Reisterstown Road in Baltimore and selected some items which he took to the cash register. The store owner’s nine year-old son asked his mother if he could ring up the sale. As the boy rang up the sale, Scott pointed a handgun at the boy and his mother and demanded all the cash. The boy and his mother handed Scott all the cash from the register. Scott also took an envelope filled with cash proceeds from the business, the coin drawer from beneath the register and the mother’s cell phone, before fleeing.

On February 16, 2012, Scott robbed a business in the 4600 block of W. Northern Parkway in Baltimore, pretending to want to purchase an item, then demanding money from the cashier. The store manager approached the cash register and realizing that a robbery was taking place, ran out the front door to get help. Scott chased the manager and during a struggle between the two, Scott fired his gun at least once. Scott reentered the store and fired a shot into the cash register drawer lock. When the register failed to open, Scott slammed it to the ground which caused the cash drawer to open. Scott took all the bills and some coins, and fled on foot.

Baltimore Police officers arrived, saw Scott running away and ordered him to stop. Scott continued running, but the officers were eventually able to capture and arrest Scott. Officers seized from Scott a loaded .22 caliber revolver, $282 stolen in the second robbery, and the cell phone Scott took from the store owner during the first robbery.

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