District of Maryland

Greenbelt, Maryland – Today, the Justice Department unsealed criminal charges against Igor Lira, 40, a Slovakia national, for allegedly transmitting a threat in interstate or international commerce containing a threat to injure. Lira made his initial appearance in the U.S. District Court for the District of Maryland today after he was extradited from Germany.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office.

According to the indictment, on August 10, 2022, the defendant threatened a senior investigator from the National Institutes of Health, by transmitting the following: “You f*cking animal abuser, I’ll find and kill you, b*tch.  I’ll drill your f*cking brain off, and I’ll film it, so everyone can watch. You don't deserve anything else. Your days are counted.”

If convicted, Lira faces a maximum sentence of five years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

An indictment is not a finding of guilt. The individual charged by indictment is presumed innocent until proven guilty at a later criminal proceeding.

U.S. Attorney Barron commended the Public Prosecutor General's Office (Generalstaatsanwaltschaft) in Düsseldorf, which handled Lira’s extradition before the courts in Germany, and Germany’s Federal Office of Justice (Bundesamt für Justiz), its central authority for all international extraditions. Additionally, the U.S. Department of Justice’s Office of International Affairs (OIA) provided significant assistance in securing Lira’s extradition from Germany. Mr. Barron also recognized Assistant U.S. Attorney Thomas M. Sullivan, who is prosecuting the federal case.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – A federal criminal complaint has been filed charging Alexis Perez Suarez, 43, of Baltimore, Maryland, on federal felony charges related to flying a drone over M&T Bank Stadium during a National Football League Wild Card Game in Baltimore on January 11, 2025.

The federal charges were announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI), Baltimore Field Office; Special Agent in Charge Greg Thompson of the U.S. Department of Transportation Office of Inspector General (DOT OIG), Mid-Atlantic Regional Office; and Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (MSP).

“We are very serious about temporary flight restrictions,” said U.S. Attorney Barron. “You will be charged and held accountable for any incursion into restricted airspace, including around sports and entertainment venues such as the Super Bowl.”

"If you are going to fly a drone, you are responsible for learning all the laws and requirements to responsibly operate it. Failing to do so will not excuse you from the consequences of breaking the law," said Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office.

“Federal laws and regulations related to owning and operating drones are in place to protect the public and our nation's airspace,” said Greg Thompson, Special Agent in Charge of DOT OIG’s Mid-Atlantic Region. “We will continue to partner with law enforcement and prosecutors to pursue those whose actions jeopardize public safety.”

According to the affidavit filed in support of the criminal complaint, on January 11, 2025, the Federal Aviation Administration had put in place a temporary flight restriction (TFR) for M&T Bank Stadium in Baltimore during the NFL Wild Card game, which precluded the flight of any UAS, including flying a UAS under the Exception for Recreational Flyers.  A TFR temporarily restricts certain aircraft, including an UAS, from operating within a three nautical mile radius of the stadium. This is a standard practice for stadiums or sporting venues where a regular or postseason Major League Baseball, NFL, or NCAA Division I Game is occurring; or a NASCAR Cup, Indy Car, or Champ Series Race is occurring.  The TFR goes into effect one hour before the scheduled start time and lasts until one hour after the end of a qualifying event.

During the game, the incursion of an unidentified and unapproved drone was deemed a serious enough threat that NFL Security temporarily suspended the game.  MSP Troopers and FBI Special Agents tracked the movement of the drone over the stadium and deployed it to the area where the drone landed in Baltimore, Maryland. Despite Suarez having left the scene, law enforcement was able to track down his whereabouts.

Suarez stated that he purchased a DJI UAS for recreation and also claimed he used it for work. The drone was not registered, nor did Suarez possess a Remote Pilot certificate to operate it. Suarez allegedly flew the drone approximately 400 feet or higher directly over the NFL stadium.  According to the affidavit, while in flight, Suarez captured approximately seven photos of the Stadium while the game was going on and thousands of people were below his flight path.

There is a zero-tolerance policy regarding UAS/drone use anywhere within the No Drone Zone established by the FAA. Anyone who attempts to fly a UAS/drone in any prohibited manner may be subject to arrest, prosecution, fines, and/or imprisonment. Members of the public are encouraged to report all suspicious activity. Law enforcement will be actively monitoring the airways for illegal UAS/drones and is committed to identifying, investigating, disrupting, and prosecuting the careless or criminal use of drones in the area. 

If convicted, Suarez faces a maximum sentence of three years in federal prison for knowingly operating an unregistered UAS and for knowingly serving as an airman without an airman’s certificate.  Suarez faces a maximum of one year in federal prison for willfully violating United States National Defense Airspace.

Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.  An initial appearance and arraignment will be scheduled later this month.

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

U.S. Attorney Barron commended the FBI, DOT OIG, and MSP for their work in the investigation, and thanked the FAA Office of Security & Hazardous Materials Safety and the U.S. Customs and Border Protection for their substantial assistance.  Mr. Barron thanked Assistant U.S. Attorney Robert I. Goldaris, who is prosecuting the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – A federal grand jury returned an indictment charging Dazhon Darien, 32, of Houston, Texas, with five counts of sexual exploitation of a child, two counts of coercion and enticement of a child, one count of receipt of child sexual abuse material, and four counts of possession of child sexual abuse material.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the charges with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, and Chief Robert McCullough, Baltimore County Police Department.

According to the indictment, between July 2023 and July 2024, the defendant persuaded, induced, enticed, and coerced a minor male to engage in sexually explicit conduct for the purpose of producing and transmitting child sexual abuse material.  Additionally, the indictment alleges that the defendant enticed two minor males to engage in prohibited sexual conduct and Darien possessed child sexual abuse material in internet-based accounts and on one digital device.

If convicted, Darien faces a mandatory minimum sentence of 15 years and up to a maximum sentence of 30 years in federal prison for each of the five counts of sexual exploitation of a minor; a mandatory minimum sentence of 10 years and up to a maximum sentence of life imprisonment for each of the two counts of coercion and enticement of a child; a mandatory minimum of five years and up to a maximum of 20 years in federal prison for the single count of receipt of child sexual abuse material, and a maximum of 20 years in federal prison for each of the four counts of possession of child sexual abuse material.

Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

An indictment is not a finding of guilt.  Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.

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 Attorney’s 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, visit www.justice.gov/psc. For more information about Internet safety education, click on the “Resources” tab on the left of the page.

U.S. Attorney Barron commended the Baltimore FBI Field Office and the Baltimore County Police Department, for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Christine O. Goo and Paul E. Budlow who are prosecuting the federal case.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – A federal grand jury indicted William Foster Alger, 75, of Hagerstown, Maryland, charging him with seven counts of sexual exploitation of a child, three counts of coercion and enticement of a child, and five counts of possession of child sexual abuse material.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI); Colonel Paul Joey Kifer, Chief of Police of the Hagerstown Police Department (HPD); and Washington County State’s Attorney Gina Cirincion.

According to the indictment, between November 2023 and December 2024, the defendant persuaded, induced, enticed, and coerced three minor females to engage in sexually explicit conduct for the purpose of producing and transmitting child sexual abuse material.  Additionally, Alger allegedly enticed the minors to engage in prohibited sexual conduct.  He also possessed child sexual abuse material in an internet-based account and on four digital devices.

If convicted, Alger faces a mandatory minimum sentence of 15 years and up to a maximum sentence of 30 years in federal prison for each of the seven counts of sexual exploitation of a minor; a mandatory minimum sentence of 10 years and up to a maximum of life imprisonment for each of the three counts of coercion and enticement of a child; and a maximum of 20 years in federal prison for each of the four counts of possession of child sexual abuse material.

Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

An indictment is not a finding of guilt.  Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.

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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.   For more information about Internet safety education, click on the “Resources” tab on the left of the page.

U.S. Attorney Barron commended HSI, HPD, and the Washington County State’s Attorney’s Office for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – After a 5-day trial, a federal jury found Stephen Kennedy, 33, of Temple Hills, Maryland, guilty of conspiracy to commit arson, arson affecting interstate commerce, commercial robbery, using or carrying a firearm during and in relation to a crime of violence, carrying and explosive device during the commission of a felony, and being a felon in possession of a firearm.  The Defendant was found not guilty as to one count of arson affecting interstate commerce.

The verdict was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Acting Maryland State Fire Marshal Jason M. Mowbray; St. Mary’s County Sheriff Steven A. Hall; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Tiffany D. Green of the Prince George’s County Fire/EMS Department.

According to the 8-count superseding indictment, from at least January 2021 to January 2022, Kennedy and other conspirators, including co-defendant Donnell Kelly, conspired to commit arsons at 7-Eleven convenience stores so that they could later steal cash contained in ATMs in the stores. Specifically, the indictment alleges that Kennedy and Kelly traveled to 7-Eleven locations while they were open for business and deployed explosive devices to set fire to the buildings, and on at least one occasion, demanded the contents of the cash register.  The defendants burned the stores to force their closure and shut off power to the security cameras, which enabled them to return to the unguarded locations to burglarize the ATMs.  This resulted in losses to the ATM company of at least $90,000. To conceal the evidence of their crimes, one of Kennedy’s co-conspirators made false police reports regarding stolen license plates.

Kennedy faces a mandatory minimum sentence of five years and a maximum sentence of 20 years in federal prison for the arson conspiracy and for arson affecting interstate commerce; a maximum of 20 years in prison for commercial robbery; a mandatory minimum sentence of 30 years and up to life in federal prison for using a destructive device in furtherance of a crime of violence; a ten year sentence for carrying an explosive during the commission of another federal felony; and a maximum of 10 years in federal prison for being a felon in possession of a firearm.  Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Co-defendant Donnell Kelly pleaded guilty to conspiracy to commit arson and was sentenced to 10 years with supervised release for a term of 3 years, on October 2, 2024 before Judge Peter J. Messitte. U.S. District Judge Theodore D. Chuang has scheduled sentencing for Kennedy on May 30, 2025 at 2:30 p.m.

This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone.  On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

U.S. Attorney Barron commended the ATF’s Baltimore Field Division’s Arson & Explosive Investigations Group, the Office of the Maryland State Fire Marshal, the St. Mary’s County Sheriff’s Office, the Prince George’s County Fire/EMS Department, and the Prince George’s County Police Department for their work in the investigation and thanked the U.S. Attorney’s Office for the Eastern District of Virginia, the ATF Washington Field Division, the U.S. Marshals Service, and the Alexandria, Virginia Fire and Police Departments for their assistance.  Mr. Barron thanked Assistant U.S. Attorneys Joshua Rosenthal and Christopher Sarma, who are prosecuting the case.  

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – After a six-day trial, a federal jury found Brandon Russell, 29, a resident of Orlando, Florida, guilty of conspiracy to damage an energy facility.

Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office announced the jury’s verdict.

“Hate-fueled violence has no place in a civilized society. Brandon Russell went well beyond his First Amendment rights, orchestrating a terrorist plot that would have harmed thousands of innocent people,” Barron said.  “It won’t always be popular, but this office will do the right thing, the right way, for the right reason.”  

“Brandon Russell, a self-proclaimed National Socialist, conspired to 'lay waste to the city of Baltimore’ through violence and destruction of critical infrastructure. Today's verdict reinforces there is no tolerance for those who seek to harm our communities and use violence to further hate-filled beliefs,” DelBagno said. "I am proud of the tremendous work by the FBI Tampa and Baltimore Joint Terrorism Task Forces which led this investigation. The FBI remains diligent in protecting Marylanders from national security and public safety threats every single day in conjunction with our dedicated law enforcement and private sector partners.”

According to evidence presented at trial, from at least November 2022 to February 3, 2023, Russell conspired to carry out attacks against critical infrastructure, specifically transformers located within electrical substations, in furtherance of Russell’s racially or ethnically motivated violent extremist beliefs. Russell posted links to open-source maps of infrastructure, which included the locations of electrical substations, and he described how a small number of attacks on substations could cause a “cascading failure.” Russell also discussed maximizing the impact of the planned attack by hitting multiple substations at one time.

Russell recruited a Maryland-based woman, Sarah Beth Clendaniel, to carry out the attacks in Baltimore and elsewhere. They planned to damage energy facilities involved in the transmission and distribution of electricity and to cause a significant interruption and impairment of the Baltimore regional power grid. The intended monetary loss associated with the planned attacks would have exceeded $75 million. Clendaniel identified five substations to target, and Russell attempted to secure a weapon for Clendaniel. Clendaniel stated that if they hit a number of substations all in the same day, they “would completely destroy this whole city,” and that a “good four or five shots through the center of them . . . should make that happen.” She further added, “[i]t would probably permanently completely lay this city to waste if we could do that successfully.”

Russell faces a maximum sentence of 20 years in federal prison for conspiracy to damage an energy facility. Senior United States District Judge James K. Bredar will determine the sentence after accounting for the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge James K. Bredar has scheduled sentencing for June 17, 2025 at 11 a.m.  On September 25, 2024, U.S. District Judge Bredar sentenced Clendaniel, to 18 years in federal prison, followed by a lifetime of supervised release, for conspiring with Russell to damage or destroy an energy facility in violation of 18 U.S.C. § 1366(a), and a concurrent sentence of 15 years for being a felon in possession of a firearm, and 3 years of supervised release, in violation of 18 U.S.C. § 922(g)(1).

U.S. Attorney Barron commended the Baltimore and Tampa FBI Field Offices for their outstanding work in the investigation and praised the FBI’s Joint Terrorism Task Forces, the Maryland State Police, the Baltimore County Police Department, the Washington and New York Field Offices of the FBI for their valuable assistance. Mr. Barron also thanked the Department of Justice’s National Security Division and the United States Attorney’s Office for the Middle District of Florida for their assistance. Mr. Barron thanked the prosecution team for their hard work and diligence in the case. 

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. To report a Maryland-based hate crime, contact the FBI Baltimore field office at (410) 265-8080 or www.tips.fbi.gov.

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Greenbelt, Maryland – On January 31, 2025, U.S. District Judge Deborah L. Boardman sentenced Julian Everett, 41, of New Carrollton, Maryland, to 20 years in federal prison and 20 years of supervised release, for kidnapping minors and producing child sexual abuse material.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office; Prince George’s County State’s Attorney Aisha N. Braveboy; and Chief Malik Aziz, Prince George’s County Police Department.

According to the guilty plea, in 2005, 2015 and 2016, Everett acknowledged sexually abusing and capturing sexual abuse material of several victims at his New Carrollton home – four were minors.

On July 11, 2005, Everett drove Victim 2 — who was16 at the time — from the Commonwealth of Virginia to his New Carrollton residence.  While at his residence, Everett provided Victim 2 with a beverage, before engaging in sexual intercourse without her consent. Everett also took nude photographs of the victim without her consent.

Additionally, on August 23, 2015, Everett drove another victim — who was 18 at the time — from a Washington, D.C. night club to a gas station. While there, Everett created and provided Victim 3 with a beverage before driving her to his New Carrollton residence. Everett then engaged in sexual acts with Victim 3 without her consent.

Then on August 21, 2016, Everett drove Victim 1 — who was then 17 at the time — from her Washington, D.C. residence to a Northwest D.C. barbershop where he worked. While at the barbershop, Everett created and provided Victim 1 with a beverage. Victim 1 drank it and eventually lost consciousness before waking up at Everett’s home while he was performing a sexual act on her. Additionally, Everett recorded the sexual encounter and took naked pictures of the victim without her consent.

Authorities arrested Everett in Prince George’s County on March 21, 2019. Federal law enforcement obtained a search warrant for Everett’s electronic devices, revealing images of child sexual abuse material, including a video of Everett engaging in sexual intercourse with an unidentified fifth female victim. During the video, Victim 5 can be heard mumbling and is physically unresponsive with her eyes closed.

On March 26, 2019, a fourth victim reported a sexual-assault incident to the Prince George’s County Police Department’s Criminal Investigation Division. Between March and April 2015, Everett transported Victim 4 — who was16 at the time — from her Washington D.C. residence to his New Carrollton home.  After arriving at his house, Everett mixed a drink for Victim 4 who drank it and became lightheaded. Everett then engaged in multiple sexual acts with Victim 4 without her consent, which he also digitally recorded. He also took nude photos of her. 

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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.

U.S. Attorney Barron commended the FBI, Office of State’s Attorney for Prince George’s County, Maryland, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Timothy Hagan and Thomas Sullivan who prosecuted the federal case.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – After a seven-day trial, a federal jury found James William Wilson, Jr., 77, of Owings Mills, Maryland, guilty of 13 counts of fraud, three counts of money laundering, two counts of filing false tax returns, and one count of aggravated identity theft.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the verdict with Acting Deputy Assistant Attorney General Stuart M. Goldberg, Department of Justice Tax Division, and Special Agent in Charge Kareem Carter, Internal Revenue Service-Criminal Investigation Division, Washington Field Office.

According to court documents and evidence presented at trial, Wilson defrauded life-insurance companies by securing more than 40 life-insurance policies. Wilson’s scheme included mispresenting policy applicants’ health, wealth, and existing life-insurance coverage. The total death benefits from these policies exceeded $20 million.

Additionally, Wilson defrauded individual investors to receive funds that he used to pay premiums on the fraudulently obtained life-insurance policies. Wilson concealed the fraud by transferring the proceeds to multiple bank accounts, including accounts in the name of trusts. He then filed false individual income-tax returns for 2018 and 2019, which concealed the fraudulent proceeds from each year, approximately $5.7 million and $2 million, respectively.

Wilson is scheduled to be sentenced at 9:30 a.m., on May 1, 2025, and faces a maximum penalty of 20 years in prison for each count of conspiracy, wire fraud, mail fraud, and money laundering; and three years in prison for each count of filing a false tax return.  He also faces two years in prison for one count of aggravated identity theft. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

In addition, Wilson’s wife, Maureen, 76, has also been charged with fraud, conspiracy, money laundering, and filing false tax returns for 2018 and 2019. Her trial is scheduled for March 3, 2025.

IRS-Criminal Investigation investigated the case, with assistance from the Maryland Insurance Administration and the Maryland Office of The Attorney General.

U.S. Attorney Barron commended the IRS-Criminal Investigation Division for their work on the case. Mr. Barron also thanked Assistant U.S. Attorneys Matthew P. Phelps and Philip Motsay and Trial Attorneys Shawn Noud and Richard Kelley, who prosecuted the federal case.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – U.S. District Judge Julie R. Rubin sentenced Victor Ojo, 30, of Belcamp, Maryland, to 72 months in federal prison, followed by three years of supervised release.

Victor Ojo received the sentence for aggravated identity theft and his role in an attempted bank-fraud scheme that had an intended loss amount of $1.5 million. Additionally, Victor Ojo admitted to participating in a fraudulent scheme to obtain $28,350 in unemployment insurance benefits. So, Judge Rubin ordered Victor Ojo to forfeit $20,014.03 and to pay $78,350 in restitution.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Andrew McKay, Special Agent in Charge of the Treasury Inspector General for Tax Administration’s (TIGTA) Mid-Atlantic Field Division, and Scott Moffit, Special Agent in Charge of TIGTA’s Cybercrime Investigations Division.

According to his guilty plea, from April 2016 through at least August 2019, Victor Ojo conspired with Damilola Ojo, Jamelia Thompson, Raissa Kaossele, and others, to commit bank fraud using the Internal Revenue Service’s (IRS) Modernized Internet Employer Identification Number (MODIEIN) system. The MODIEIN is the IRS system that allows users to register for a unique Employer Identification Number (EIN). It requires users to enter the valid name and Social Security Number of a real living person to obtain an EIN for a business.

The defendant and his co-conspirators created and used various EINs to carry out the scheme. They obtained many of the EINs from the IRS using stolen Personally Identifiable Information. These EINs, in conjunction with fraudulently obtained state business certificates, allowed the co-conspirators to open bank accounts at various financial institutions to deposit stolen and/or altered checks and to receive fraudulently obtained wire transfers and other funds. Many of the wire transfers were the result of Business Email Compromises. Once obtained, the co-conspirators rapidly withdrew the proceeds, transferring them to other bank accounts.

Victor Ojo and his co-conspirators victimized individuals through identity theft, businesses through financial account compromise, and banks through misdirecting wire transfers and making fraudulent transactions. After Victor Ojo’s arrest, law enforcement discovered evidence linking him to fraudulent activity. Law enforcement found numerous financial documents; a jacket, shirt, and hat that they saw Victor Ojo wearing in bank-surveillance footage while interacting with the fraudulent accounts; and a $14,000 check with someone else’s name on it. They also found passports in other people’s names and a Colorado ID with authentication features in someone else’s name.

In the plea agreement, Victor Ojo admitted that he engaged in additional fraudulent activities prior to his arrest for bank-fraud conspiracy. Specifically, Victor Ojo and co-conspirators fraudulently obtained $28,350 in unemployment insurance benefits from the State of California using a victim’s identification.

Around August 1, 2021, the California Employment Development Department (EDD) issued a Bank of America debit card in that victim’s name to an address in Lanham, Maryland. The card was linked to a Bank of America account that the EDD deposited a total of $28,350 in unemployment insurance benefits into. 
 

The EDD made the first deposit on August 8, 2021. On August 10, 11, 24, and 25, Victor Ojo used the card to withdraw thousands of dollars from various ATMs in Harford County, Maryland. Victor Ojo was also captured on surveillance cameras making the withdrawals on August 10, 11, and 25.

U.S. Attorney Barron commended the TIGTA for its work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Joseph L. Wenner, Paul Riley, and John D’Amico who prosecuted the federal case. He also recognized Joanna B.N. Huber, Maryland COVID-19 Strike Force Paralegal Specialist, for her assistance.

The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic.  The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors.  The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – Today, the U.S. Attorney’s Office for the District of Maryland filed a federal criminal complaint charging Dazhon Darien, 32, of Baltimore, with sexual exploitation of a child and receiving child sexual abuse material.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the complaint with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, and Chief Robert McCullough, Baltimore County Police Department. 

According to the affidavit in support of the criminal complaint, investigators obtained search warrants for Darien’s phones and online accounts which contained child sexual abuse material.  Additionally, the affidavit further describes how Darien used CashApp to pay a minor victim to send videos of himself engaged in sexually explicit conduct.  Darien paid the victim for the videos between December 2023 and March 2024.  The affidavit also shows that Darien received other child-sexual-abuse-material files, including some that depicted prepubescent minors.

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

If convicted, Darien faces a mandatory minimum sentence of 15 years or a maximum sentence of 30 years in federal prison for sexual exploitation of a child. Additionally, Darien could receive a mandatory minimum sentence of five years or a maximum of 20 years in federal prison for receipt of child sexual abuse material.  Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after taking into account the U.S. Sentencing Guidelines and other statutory factors.

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 Attorney’s 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.

U.S. Attorney Barron commended the Baltimore FBI Field Office and the Baltimore County Police Department for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Christine Goo and Paul E. Budlow who are prosecuting the federal case.

For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click the “Resources” tab on the left of the page for more information about Internet safety education.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Mario Damon Flythe, 50, of Glen Burnie, Maryland, to six months in federal prison and six months of home detention – followed by three years of supervised release; a $10,000 fine, and an additional $2,800 in a forfeiture money judgment, for his involvement in a multi-state dogfighting conspiracy.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Acting Special Agent in Charge Sean Ryan, Federal Bureau of Investigation, Washington Field Office- Criminal and Cyber Division; Special Agent in Charge Charmeka Parker, U.S. Department of Agriculture Office of Inspector General; Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General; Defense Criminal Investigative Service – Mid-Atlantic Field Office; Clinton Fuchs, U.S. Marshal for Maryland; and Amal E. Awad, Anne Arundel County Police Chief.

Flythe is affiliated with the same dogfighting enterprise as co-defendant Frederick Douglass Moorfield, Jr.  The defendant also operated a kennel under the name “Razor Sharp Kennels,” and used his home to keep, train, and breed dogs for dogfighting for several years.

A review of Flythe’s cellphone records uncovered numerous message exchanges connected to dogfighting — primarily over the instant-messaging applications WhatsApp and Telegram — with members of a group known as the “DMV Board.”  In addition to arranging dog fights and wagers, Flythe and the DMV Board discussed the breeding and training of fighting dogs, procuring supplies for the maintenance and feeding of fighting dogs, and law enforcement criminally prosecuting dogfighters.  Additionally, Flythe and others discussed indictments of other members of the DMV Board and speculated about the identity of a potential “snitch.”

Flythe’s instant messages also revealed several exchanges arranging or “hooking” dogfights.  During these conversations, Flythe identified the weight and sex of the dog he wanted to sponsor in a fight.  Other dogfighters then proposed a fight against their own dog or matched Flythe with another contact who had a dog in the same weight class. The dogfighters then agreed on wagers and set a date for the fight, usually six to eight weeks after arranging the match.  In addition to stating the winner’s fee for each fight, dogfighters agreed on forfeit or “fit” payments if a dogfighter backed out prior to the fight.

After hooking a fight, Flythe trained his dogs in a process known as a “keep.”  Flythe’s typical keep schedule for a dog involved physical training — using treadmills, weighted collars, and other accessories — a diet plan, and steroids.  Flythe obtained steroids and other veterinary drugs through various contacts in his dogfighting network instead of obtaining legitimate veterinary prescriptions.

When Flythe sponsored a dog, the fight only ended after a dog died or if the owner forfeited the match by the dog quitting the fight or the owner picking up the dog. Several times between 2019 and 2023, Flythe received monetary payments through CashApp in connection with dogfighting activities.  Flythe also sent money to dogfighting contacts related to the dogfighting enterprise.

On September 6, 2023, during a search of Flythe’s home, investigators recovered a total of seven pit-bull type dogs from the premises.  Authorities found four dogs chained to posts or poles in fenced-in cages in the property’s backyard, and three dogs in large metal cages in the basement.  Flythe acknowledged that he bred and/or trained dogs for the purposes of sponsoring them for dogfights. 

U.S. Attorney Barron commended the FBI; U.S. Department of Agriculture Office of Inspector General; Defense Criminal Investigative Service; U.S. Marshals Service; Anne Arundel County Police Department; Anne Arundel County Animal Control; and the U.S. Attorney’s Office for the Eastern District of Virginia for their valuable assistance in the investigation.  Mr. Barron also thanked Assistant U.S. Attorney Alexander Levin who prosecuted the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – A federal grand jury returned an indictment, charging Jose Adan Lopez-Guevara, 37, of Baltimore, with five counts of sexual exploitation of a minor and possession of child sexual abuse material.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI); Colonel Roland L. Butler, Jr., Superintendent, Maryland State Police (MSP); Chief Robert McCullough, Baltimore County Police Department; and Prince George’s County State’s Attorney Aisha Braveboy.

According to the indictment, the defendant persuaded, induced, enticed, and coerced a minor male to engage in sexually explicit conduct so that a visual depiction could be produced and transmitted.  Law enforcement allegedly found Lopez-Guevara in possession of child sex abuse material on December 12, 2024.

If convicted, Lopez-Guevara faces a mandatory minimum sentence of 15 years and a maximum sentence of 30 years in federal prison for each of the five counts of sexual exploitation of a minor. Additionally, he’s looking at a maximum of 20 years in federal prison for possession of child sexual abuse material.  Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

An indictment is not a finding of guilt, so an individual charged by indictment is presumed innocent unless they are proven guilty at a later criminal proceeding.

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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education n, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.

U.S. Attorney Barron commended HSI, MSP, the Baltimore County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the federal case.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – Today, U.S. District Judge James K. Bredar sentenced Christopher Kenji Bendann, 40, of Baltimore, Maryland, to 35 years in federal prison, followed by lifetime supervised release.

After a three-day trial, on August 28, 2024, a federal jury found the defendant guilty of five counts of sexual exploitation of a child, three counts of possession of child-sexual-abuse material, and one count of cyberstalking.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office; Chief Robert McCullough, Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to the evidence presented at trial, from approximately September 16, 2017, to February 9, 2019, the defendant — a former teacher at The Gilman School in Baltimore — produced multiple videos of a minor male. Additionally, Bendann engaged in sexually explicit conduct with the minor male who was one of his students. The victim was 16 and 17 years old at this time.

Law enforcement found these same videos stored on the defendant’s iCloud, resulting in a possession of child-sexual-abuse-material charge.  In addition, as detailed at trial, between May and December 2022, the defendant cyberstalked the same victim by sending him electronic cellphone messages. Bendann demanded that the victim remain in contact and send him explicit images of himself. The defendant threatened to make sexually explicit images of the victim public if he did not comply.  Evidence at trial also established that on February 3, 2023, the date of the defendant’s arrest, he possessed multiple depictions of child-sexual-abuse material on multiple electronic devices. 

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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.

U.S. Attorney Barron commended the FBI, the Baltimore County Police Department, and the Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Barron also thanked Assistant U.S. Attorneys Colleen Elizabeth McGuinn and Kim Y. Hagan, who prosecuted the federal case.  He also recognized Paralegal Specialist Julie Jarman for her assistance.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – After a four-day trial, a federal jury returned a guilty verdict, convicting Thomas Emmanuel Williams, 52, of Laurel, Maryland, on 12 federal charges related to drug and firearms trafficking.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the conviction with Special Agent in Charge Toni M. Crosby, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

According to the evidence at trial, in January and February 2023, the defendant illegally sold 10 firearms, three machineguns, ammunition, and hundreds of oxycodone, codeine, and fentanyl pills to an undercover law-enforcement source. Williams sold several privately made firearms that didn’t have serial numbers, and so-called “Glock switches,” designed to convert semi-automatic Glock-style pistols into fully automatic firearms.

The Defendant arranged to sell the drugs and guns to the source on four different dates through FaceTime and phone calls. Williams met with the undercover source in shopping-center parking lots in Laurel and Hyattsville, Maryland, to sell guns, ammunition, and drugs in exchange for thousands of dollars in cash.

The firearms sold included a Hi Point 45 ACP Pistol and 9mm Rifle, Taurus 85 Ultra Lite .38 Special Revolver, two AR-style 5.56mm pistols, a Glock 21 .45 Auto Pistol, and a Glock 43 9mm Pistol, along with three “Glock switches” which are classified as machineguns under federal law.

Williams faces a minimum sentence of 30 years in federal prison. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Theodore D. Chuang scheduled sentencing for April 17, 2025.

U.S. Attorney Barron commended the ATF for their work in the investigation and ATF special agents Christopher Szakolczai and Katherine Rottman who conducted the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Darren S. Gardner and Dawn Williams who are prosecuting the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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WASHINGTON – In a civil complaint filed yesterday in the U.S. District Court for the Northern District of Illinois, the Justice Department alleges that Walgreens Boots Alliance, Walgreen Co. and various subsidiaries (collectively, Walgreens) dispensed millions of unlawful prescriptions in violation of the Controlled Substances Act (CSA) and then sought reimbursement for many of these prescriptions from various federal health care programs in violation the False Claims Act (FCA). Walgreens is one of the country’s largest pharmacy chains, with over 8,000 pharmacies across the United States.

“This lawsuit seeks to hold Walgreens accountable for the many years that it failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our complaint alleges that Walgreens pharmacists filled millions of controlled substance prescriptions with clear red flags that indicated the prescriptions were highly likely to be unlawful, and that Walgreens systematically pressured its pharmacists to fill prescriptions, including controlled substance prescriptions, without taking the time needed to confirm their validity. These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores.”

The government’s complaint alleges that, from approximately August 2012 through the present, Walgreens knowingly filled millions of prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice. Among the millions of unlawful prescriptions that Walgreens allegedly filled were prescriptions for dangerous and excessive quantities of opioids, prescriptions for early refills of opioids and prescriptions for the especially dangerous and abused combination of drugs known as the “trinity,” which is made up of an opioid, a benzodiazepine and a muscle relaxant.

The complaint alleges that Walgreens pharmacists filled these prescriptions despite clear “red flags” that indicated that the prescriptions were highly likely to be unlawful. Walgreens allegedly ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from its own pharmacists and internal data.

The complaint further alleges that Walgreens systematically pressured its pharmacists to fill prescriptions quickly without taking the time needed to confirm each prescription’s validity. Walgreens also allegedly deprived its pharmacists of crucial information, including by preventing pharmacists from warning one another about certain prescribers.

The complaint alleges that by knowingly filling unlawful prescriptions for controlled substances, Walgreens violated the CSA and, where Walgreens sought reimbursement from federal health care programs, also violated the FCA. The complaint alleges that Walgreens’s actions helped to fuel the prescription opioid crisis and that, in some particularly tragic instances, patients died after overdosing on opioids shortly after filling unlawful prescriptions at Walgreens. If Walgreens is found liable, it could face civil penalties of up to $80,850 for each unlawful prescription filled in violation of the CSA and treble damages and applicable penalties for each prescription paid by federal programs in violation of the FCA. The court also may award injunctive relief to prevent Walgreens from committing further CSA violations.

“As alleged in the complaint, Walgreens continually disregarded its obligations under the Controlled Substances Act and False Claims Act by illegally dispensing powerful controlled substances and unlawfully seeking reimbursement from federal health care programs,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “These laws are critically important in protecting our communities from the dangers of the opioid epidemic. Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”

“The damage caused by the opioid crisis continues to reverberate in the Middle District of Florida and around the country,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “The filing of this civil complaint is a major step in our continued effort to confront those responsible for the harm they have done to our communities.”

“Pharmacies play a critical role in ensuring that only lawful controlled substance prescriptions are dispensed – Walgreens failed to do just that,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We are committed to holding Walgreens accountable for its role in the opioid epidemic that has devastated communities across the country, including in Maryland.”

“This country is in the midst of a serious opioid epidemic, and New York is no exception,” said Acting U.S. Attorney Carolyn Pokorny for the Eastern District of New York. “Walgreens, which operates one of the largest pharmacy chains in the United States, including nearly 300 pharmacies in the Eastern District of New York during the relevant time period, repeatedly ignored its obligations to ensure that these drugs did not fall into the wrong hands. My office will continue to work with others in the Justice Department to combat the opioid crisis by holding pharmacies that fill unlawful prescriptions accountable.”

“The Justice Department has prioritized both combating the opioid crisis and upholding corporate accountability, and the action we are announcing today affirms our resolve,” said First Assistant U.S. Attorney Maya D. Song for the Eastern District of Virginia. “My office is pleased to partner with our colleagues from across the nation to confront these issues and deter pharmacies and pharmacists from failing to honor their obligation to ensure that these dangerous drugs are only provided to those with a true medical need.”

“Walgreens and its pharmacists have an obligation to ensure that every prescription they fill is legitimate and issued responsibly. As this lawsuit alleges, Walgreens failed in this obligation, and many times ignored the red flags that warned of suspicious prescribing practices,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “Walgreens placed the public in danger by disregarding their responsibility. DEA will continue to pursue any individual or corporation that chooses profit over patient safety and we will hold them accountable.” 

“Millions of Americans enrolled in Medicare, Medicaid, and other public health care programs count on pharmacies to dispense drugs responsibly. When pharmacies disregard federal laws and put profits ahead of patients, they endanger Americans’ health and compromise taxpayer dollars,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG remains diligent in pursuing entities involved in unlawful behavior that abuses the public’s trust in health care services.”

Four different whistleblowers who previously worked for Walgreens in various parts of the country filed whistleblower actions under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, as it has done here. The four cases have been consolidated and are captioned United States ex rel. Novak v. Walgreens Boots Alliance Inc. No. 18 C 5452 (NDIL).

The United States’ intervention in this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS, at 800-HHS-TIPS (800-447-8477).

The United States is represented in this matter by Assistant Director Amy DeLine, Senior Litigation Counsel Donald Lorenzen and Trial Attorney Nicole Frazer of the Justice Department’s Civil Division’s Consumer Protection Branch and Assistant Director Natalie Waites and Trial Attorney Joshua Barron of the Civil Division’s Commercial Litigation Branch, Fraud Section, as well as Assistant U.S. Attorney Valerie R. Raedy for the Northern District of Illinois, Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie for the Middle District of Florida, Chief of the Civil Division Thomas Corcoran for the District of Maryland, Assistant U.S. Attorney Elliot M. Schachner for the Eastern District of New York and Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia.

The U.S. Attorneys’ Offices for the District of Colorado and the Southern District of California, the DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General and FBI Chicago Field Office provided substantial assistance in the investigation.

The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law. In March 2023, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, Fraud Section, DEA and other department components. The Task Force steers the department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.

The claims asserted against defendants are allegations only and there has been no determination of liability.

Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.

Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.

For information about the U.S. Attorneys’ Offices, visit:

• Middle District of Florida, www.justice.gov/usao-mdfl;
• Northern District of Illinois, www.justice.gov/usao-ndil;
• District of Maryland, www.justice.gov/usao-md;
• Eastern District of New York, www.justice.gov/usao-edny; and
• Eastern District of Virginia, www.justice.gov/usao-edva.

For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal health care fraud, visit:

• DEA at www.dea.gov;
• FBI at www.fbi.gov;
• HHS at www.hhs.gov;
• DHA at www.health.mil/About-MHS/OASDHA/Defense-Health-Agency;
• OPM at www.opm.gov; and
• DOL at www.dol.gov.

Greenbelt, Maryland –James Aliyu, 29, the last of three defendants charged in a $6-million business email compromise (BEC) scheme, has been extradited from South Africa to the United States to face federal indictment.

A federal grand jury returned an indictment charging Aliyu, Kosi Goodness Simon-Ebo, 30, and Henry Onyedikachi Echefu, 31, with conspiracy to commit wire fraud and money laundering in connection with a BEC scheme that resulted in the loss of more than $6 million.

All three are Nigerian citizens that resided in South Africa at the time of the crimes. Federal authorities returned this indictment on June 24, 2019, and unsealed it on July 6, 2022, upon the defendants’ arrests outside the U.S.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI), Baltimore.

According to the seven-count indictment, from February 2016 until at least July 2017, the defendants conspired with others to perpetrate a BEC scheme. The indictment alleges that the defendants and their co-conspirators, some of whom resided in Maryland, gained unauthorized access to individual and business email accounts.  Co-conspirators then allegedly sent false wiring instructions to the victims’ email accounts from spoofed emails, which are forged with sender addresses, to deceive the victims into sending money to bank accounts, known as drop accounts, that were controlled by perpetrators of the scheme.

The indictment also alleges that the defendants conspired to commit money laundering. They planned to disburse the fraudulently obtained funds to other accounts by initiating account transfers, withdrawing cash, obtaining cashier’s checks, and by writing checks to other individuals and entities, to hide the true ownership and source of the assets. Additionally, the defendants are charged with wire fraud, related to the BEC scheme.  Specifically, Simon-Ebo is charged in three wire-fraud counts in which he wired $6,343,533.10 collected from victims to accounts controlled by conspirators.

Simon-Ebo and Echefu were previously extradited from Canada, pled guilty, and have been sentenced.   

If convicted, Aliyu faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy, money laundering conspiracy, and for each count of money laundering and wire fraud.

Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

U.S. Attorney Barron commended HSI’s Mid-Atlantic El Dorado Task Force for its work in the investigation. Mr. Barron also thanked the South African Department of Justice and Constitutional Development, National Prosecuting Authority of South Africa, and the South African Police Service. Additionally, the U.S. Department of Justice’s Office of International Affairs (OIA) provided significant assistance in securing Aliyu’s extradition from South Africa.  OIA and the Department of Justice Canada’s International Assistance Group also provided substantial assistance in securing the arrest and extradition of both Echefu and Simon-Ebo.  Mr. Barron also recognized Assistant U.S. Attorney Kelly O. Hayes, who is prosecuting the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – Today, a federal grand jury returned a 22-count indictment, charging a Maryland attorney with tax evasion, assisting in the preparation of false tax returns, failing to pay taxes, and making false statements to two separate mortgage lenders.

U.S. Attorney Erek L. Barron announced the indictment with Deputy Assistant Attorney General David A. Hubbert, Department of Justice Department, Tax Division.

According to the indictment, between 2016 and 2023, Thomas C. Goldstein, of Chevy Chase, Maryland, and Washington, D.C., was the sole owner of Goldstein & Russell, P.C., a boutique law firm specializing in appellate litigation, including litigation before the United States Supreme Court. Goldstein was allegedly also a high-stakes poker player, frequently playing in games involving millions of dollars.

During that time, Goldstein allegedly engaged in a scheme to evade his taxes.  Goldstein allegedly took various steps to carry out his scheme, including diverting legal fees that were due to the law firm to his personal bank account, and then using them to pay personal poker-related debts; using the law firm’s assets to satisfy his personal poker debts and falsely classifying those payments as “legal-fee” expenses on the firm’s books and records; and using firm assets to pay salaries and health insurance premiums for people with whom Goldstein had a personal relationship but who performed little or no work for the law firm and did not qualify for its health insurance.

Goldstein also allegedly did not report, or falsely understated, millions of dollars of gambling winnings on his tax returns. In addition, for 2016 through 2021, except 2018, Goldstein allegedly did not pay the taxes he self-reported were due on his returns, while simultaneously spending millions of dollars on personal expenses such as gambling debts, travel, vacation rentals, and luxury goods.

In 2021, Goldstein also allegedly submitted false mortgage applications to two separate mortgage lending companies, seeking financing to purchase a $2.6-million home in Washington, D.C.  On those mortgage applications — which required Goldstein to list all his liabilities and debts — Goldstein allegedly omitted millions of dollars of liabilities, including more than $14 million he owed at the time on two promissory notes, as well as taxes he owed to the IRS.  Goldstein’s false statements to one of the mortgage lenders allegedly enabled him to obtain a $1.98 million loan.

If convicted, he faces a maximum sentence of five years in prison for each of the tax evasion charges; three years for each count of assisting in the preparation of false tax returns; a maximum of one year on each of the five counts charging willful failure to pay taxes; and 30 years for each count of making false statements to mortgage lenders. He also faces a period of supervised release, monetary penalties, and restitution.

IRS Criminal Investigation and the Federal Bureau of Investigation are investigating the case.

Assistant U.S. Attorney Patrick Kibbe, of the District of Maryland, Senior Litigation Counsel Stanley Okula, and Trial Attorneys Emerson Gordon-Marvin and Hayter Whitman, of the Tax Division, are prosecuting the case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – PharmaLogic Holdings Corporation, a radiopharmaceutical company headquartered in the State of Florida, has agreed to pay $350,000 to resolve allegations that it violated the False Claims Act. Nine of the corporation’s subsidiaries are accused of violating the False Claims Act by knowingly  filing to receive small-entity status to obtain a reduced U.S. Nuclear Regulatory Commission (NRC) annual fee.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced this settlement with Inspector General Robert J. Feitel, NRC.

The NRC, which regulates and licenses civilian use of radioactive materials, charges an annual fee to entities that grant licenses to handle, store, or possess radioactive materials.  Entities that qualify as a small entity under 10 C.F.R. § 171.16(c) can obtain a reduced annual fee.  The entity obtains the fee reduction by filing an NRC Form 526, Certification of Small Entity Status for the Purposes of Annual Fees Imposed under 10 CFR Part 171.

Beginning around March 31, 2015, thru December 31, 2023, nine entities acquired by PharmaLogic Holdings Corporation filed NRC 526 forms.  Through these filings, each entity certified its small-entity status entitling them to a reduced NRC annual fee.  Under false pretenses, the NRC certified the entities and reduced their annual fees.  However, the entities exceeded the size limits to qualify for reduced annual fees.

“This settlement exemplifies that the United States Attorney’s Office will hold accountable companies that claim falsely their small entity status to obtain from the government a benefit to which the companies are not entitled,” said Erek L. Barron, United States Attorney for the District of Maryland.  “We will never tire in our efforts to pursue those taking undue advantage of government programs.”

“This case demonstrates the OIG’s commitment to anti-fraud initiatives and is consistent with our office’s recent efforts to ramp up investigations on this front,” said NRC Inspector General Robert J. Feitel.  “I also wish to express my sincere gratitude to the NRC staff, particularly the staff in the Labor Administration & Fee Billing Branch of the Office of the Chief Financial Officer, for their cooperation during the OIG’s investigation.” 

U.S. Attorney Barron and Inspector General Feitel commended the NRC-OIG and the Special Agents on the OIG’s Anti-Fraud Team for their work in this investigation.  Mr. Barron also thanked Assistant U.S. Attorney Tarra DeShields, who handled the case.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – U.S. District Judge Lydia Kay Griggsby sentenced Erbeth Gomez-Delgado, 48, of Hyattsville, Maryland, to 24 months in federal prison for illegally reentering the country after he was deported. 

In November 2024, after a three-day trial, a federal jury found Gomez-Delgado, a convicted child sexual abuse offender, guilty of a sole count of Reentry After Deportation.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Matthew Davies, Acting Director of Field Operations, U.S. Customs and Border Patrol, Baltimore Field Office.    

According to the evidence presented at trial, the U.S. Customs and Border Patrol first encountered the defendant on July 29, 2016, as he crossed the U.S. border through the Rio Grande, in Texas. The defendant entered the country without inspection.  Gomez-Delgado was then removed from the U.S. and deported to Guatemala on July 29, 2016.

On February 15, 2019, law enforcement became aware that Gomez-Delgado was back in the U.S. after he was arrested and charged with sexually abusing a minor in Prince George’s County.   During the reentry trial, the prosecution proved that Gomez-Delgado voluntarily and unlawfully reentered the U.S. prior to February 2019.  Gomez-Delgado did not seek or receive permission from the Attorney General or the Secretary of the Department of Homeland Security to reenter the U.S.

U.S. Attorney Barron acknowledged the U.S. Customs and Border Patrol for their work throughout the investigation and the trial.  Mr. Barron also thanked Assistant U.S. Attorney LaShanta Harris and U.S. Department of Justice Trial Attorney Shriram Harid who prosecuted this federal case.

Baltimore, Maryland – Today, the U.S. Attorney’s Office for the District of Maryland announced that statewide violent crime continued to significantly decline in 2024. In Maryland, homicides and non-fatal shootings are down, and Baltimore City’s violent-crime rate dropped for the third year in a row.

Since 2021, statewide homicides have declined by 32 percent while Baltimore City, which saw 201 homicides in 2024, has recorded a 41-percent decrease during the same timeframe. The U.S. Attorney’s Office credits strategic collaboration between Federal, State, City law enforcement, and community partners for the positive direction.

“I’m very proud of the leadership that this office’s public servants have shown in coordinating law enforcement and community efforts throughout Maryland and beyond to protect our nation and promote safer communities,” said U.S. Attorney Erek L. Barron. “We will continue to be a force-multiplier for the work of our various Federal, State, and local law enforcement agencies, and community-based partners.”

These efforts are connected to the Department of Justice’s Project Safe Neighborhoods (PSN). This program brings together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make neighborhoods safer for everyone. Recent results show how the power of strong collaborations correlate with major declines in violence, as Baltimore City recorded its lowest homicide total since 2011. For example, in Baltimore City, the multi-jurisdictional collaborative has:

• Assembled the largest-ever, State-funded team of special federal prosecutors, and legal and investigative professionals to indict firearm offenses. In 2023, this enabled the U.S. Attorney’s Office to adopt a record-high number of gun cases from the Baltimore City State’s Attorney’s Office.  
   
• Strategically investigated and federally prosecuted repeat violent offenders, who drive the most violence in our communities, by any legal means necessary. This tactic has led to impactful prosecutions. For example, the collaborative shut down an international Chinese money laundering and drug trafficking organization after investigating one of its ringleaders who was shot at twice within a two-week span of violence in Baltimore City. 
   
• Leveraged the U.S. Attorney’s Office’s multi-agency taskforce to not only federally prosecute violent criminal organizations, but to also help local partners land impactful prosecutions. For example, through Operation Tornado Alley, the largest takedown in Baltimore in decades, the State’s Attorney’s Office charged 40 individuals with drug trafficking and firearm offenses.

Through these strategic, collaborative efforts, the office has reduced costly and unnecessary incarceration. The collaborative’s use of strategic law enforcement, along with various prevention and intervention methods, has resulted in a 40-percent decline in the federal pre-trial detention rate since 2018. For example, the U.S. Attorney’s Office actively supports reducing barriers to successful reentry and collaborative community-based outreach efforts aimed at youth and young adults, including by working with organizations such as ROCA Baltimore. 

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – Today, U.S. District Judge Deborah K. Chasanow sentenced Montreal Proctor, 34, of Baltimore, Maryland, to three years in federal prison, followed by three years of supervised release, for federal charges of illegal possession of a firearm and ammunition.     

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Toni M. Crosby, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Commissioner Richard Worley, Baltimore Police Department (BPD).

According to his guilty plea, on June 30, 2022, Proctor walked through the 500 block of Chateau Avenue, in Baltimore, while armed with a loaded firearm.  While walking, Proctor encountered police officers as they were patrolling the area. He then took a loaded firearm from out of his waistband, resulting in a brief standoff. Proctor eventually dropped the firearm and began to flee before he was later arrested.  

Law enforcement recovered the firearm and found that it was a Ruger .40 caliber pistol that was loaded with more than 10 rounds of ammunition.  Proctor was previously convicted of several violent offenses, including attempted murder, first-degree assault, and attempted robbery.  In addition to his federal sentence, Proctor is facing state charges for violating probation.   

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

U.S. Attorney Barron commended the ATF and BPD for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Jason D. Medinger and Adeyemi Adenrele, who prosecuted the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – A federal grand jury has returned an indictment charging two Maryland men on federal charges related to a scheme to fraudulently obtain more than $1 million in unemployment insurance benefits. On February 1, 2024, a grand jury returned a sealed indictment of Daiwor Woah-Tee, age 51, of Belcamp, Maryland, and Dekwii Woah-Tee, age 46, of Rosedale, Maryland with conspiracy to commit wire fraud, and one count of aggravated identity theft, respectively, relating to a scheme to obtain more than $1,000,000 in unemployment insurance benefits. The indictment was unsealed upon the arrest of the defendants. 

The defendants had an initial appearance on December 18, 2024, in the U.S. District Court in Baltimore before U.S. Magistrate Judge Charles Austin.

The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Special Agent in Charge Troy W. Springer of the Department of Labor Office of Inspector General, Office of Investigations for the National Capital Region (DOL-OIG), and Inspector General Dr. Joseph V. Cuffari, Department Homeland Security - Office of Inspector General (DHS-OIG).

As detailed in the indictment, unemployment insurance (“UI”) was a joint state and federal program that provided monetary benefits to eligible beneficiaries. UI payments were intended to provide temporary financial assistance to lawful workers who were unemployed through no fault of their own. Beginning in or around March 2020, in response to the COVID-19 pandemic, several federal programs expanded UI eligibility and increased UI benefits, including the Pandemic Unemployment Assistance Program (PUA), Federal Pandemic Unemployment Compensation (FPUC), and the Lost Wages Assistance Program (LWAP).

In Maryland, those seeking UI benefits submitted online applications. Applicants had to answer specific questions to establish eligibility to receive UI benefits, including their name, Social Security Number (SSN), and mailing address, among other things.  Applicants also had to self-certify that they met a COVID-19-related reason for being unemployed, partially employed, or unable to work.  Maryland Department of Labor (MD-DOL) relied upon the information in the application to determine UI benefits eligibility. Once an application was approved, the MD-DOL typically distributed state and federal UI benefits electronically to a debit card, which claimants could use to withdraw funds and/or make purchases. 

As alleged in the indictment, from March 2020 to September 2021, the defendants conspired to commit wire fraud defrauding State Workforce Agencies (SWA), including the MD-DOL, by impersonating victim individuals for the purpose of submitting fraudulent claims for unemployment insurance.  The defendants used victim personal identifying information (PII), including name, date of birth, and/or SSN submit applications for UI benefits.  The UI benefits obtained through the scheme was more than $1,000,000.

If convicted, the defendants face a maximum sentence of 20 years in federal prison for wire fraud conspiracy and aggravated identity theft carries a mandatory minimum sentence of two years in prison  that runs consecutive to any other sentence.  Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

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

The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.  The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic.  The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors.  The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.  

For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.  Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

U.S. Attorney Barron commended the DOL-OIG, DHS-OIG, and IRS-CI for its work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney John D’Amico and Special Assistant U.S. Attorney Jared W. Murphy, who are prosecuting the federal case. 

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Brian Patrick Werth, 40, of Beltsville, Maryland, to 37 years in federal prison, followed by 25 years of supervised release, for two counts of producing child sexual abuse material.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations.

Werth was convicted of coercing and enticing a minor to engage in sexually explicit conduct and engaging with a minor as a registered sex offender. Upon his release from prison, Werth is required to register as a sex offender where he resides, is employed, and where he is a student under the Sex Offender Registration and Notification Act.  Judge Chuang also ordered Werth to refrain from contact with children under 18 years old, without prior permission, and to submit to computer monitoring.

After a three-day trial, a jury found that from January 2021 through June 2021, Werth communicated with minor females, ages 11 and 15, through internet-based applications WhatsApp and Kik.  During these interactions, Werth persuaded, coerced, and enticed the minor females to engage in sexually explicit conduct by producing sexually explicit videos of themselves.  Additionally, Werth engaged in child sexual abuse as a member of the Maryland Sex Offender Registry for a previous sex offense conviction.

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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.

U.S. Attorney Barron commended Homeland Security Investigations and the Maryland State Police Department for their work in the investigation and prosecution.  Mr. Barron also thanked Assistant U.S. Attorney LaShanta Harris who led the prosecution of this case. 

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – Today, Melvin Thompson Jr., 34, of Chestertown, Maryland, pleaded guilty to one count of wire fraud and one count of filing a false tax return in connection with submitting fraudulent loan applications. 

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the guilty plea with SAC Kareem A. Carter, Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office. Sentencing is scheduled for March 19, 2025, at 10 a.m.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act — a federal law enacted in March 2020 — provided emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. The CARES Act gives financial assistance including forgivable loans to small businesses for job retention and other expenses. Established by the CARES Act, the Paycheck Protection Program (PPP) — administered through the Small Business Administration (SBA) — along with the Economic Injury Disaster Loan (EIDL), helped businesses meet their financial obligations.

According to his plea agreement, beginning around March 2020, and continuing until approximately February 22, 2021, Thompson knowingly executed a scheme to defraud the U.S. Small Business Administration by obtaining fraudulent EIDLs and loans under the PPP. In addition, as part of his scheme, Thompson filed false corporate tax returns, under penalties of perjury, with the IRS on behalf of four businesses seeking EIDL money. These businesses reported false or fictitious revenue and expense amounts.

In support of these applications, Thompson submitted fraudulent, unfiled tax returns. Additionally, on a few occasions, Thompson filed fraudulent tax returns with the IRS in support of his CARES Act loan applications.

Thompson primarily used the small business relief loan proceeds to engage in high frequency trading of options contracts and other securities, mainly at TD Ameritrade, where during 2020 alone he purchased and sold more than $12 million in securities. Through this high frequency trading, Mr. Thompson lost the $791,004 that he gained through this scheme, with the exception of money he spent to purchase a 2020 Lincoln Navigator.

The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds. 

For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

U.S. Attorney Barron commended the IRS-CI for its work in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Sean R. Delaney who is prosecuting the case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.

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Baltimore, Maryland – Today, Jennifer Tinker, 41, of Ellicott City, Maryland, pleaded guilty to a federal charge of wire fraud.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the guilty plea with Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office.

According to the guilty plea, between January 2020 and November 2023, Tinker defrauded a real estate agency that she worked for by transferring more than $1 million of company funds through wire transfers, Zelle payments, checks, and ACH to her personal bank accounts. Tinker fraudulently embezzled funds from the real estate agency’s accounts – including its escrow, operating, and commission accounts.

Tinker hid the transfers by listing fictitious “recipients” on the wire transfer paperwork to make them appear legitimate. She then wired the stolen funds into her personal bank accounts. Between approximately February 2021 and November 2023, Tinker wired money to her personal accounts more than 90 times. Additionally, Tinker made false and fraudulent edits and entries into her employer’s internal accounting records to conceal the transfers.

The defendant used the funds that she stole from her employer to pay for luxury goods and personal expenditures such as vacations, Taylor Swift tickets, and five different vehicles.

Tinker faces a maximum of 20 years in prison followed by up to a lifetime of supervised release. U.S. District Judge Adam B. Abelson scheduled sentencing for April 10, 2025, at 10 a.m.

U.S. Attorney Barron commended the FBI for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorney Joseph L. Wenner who is prosecuting the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – Today, U.S. District Theodore D. Chuang sentenced Andrew Trayvon Hale, 27, of Prince George’s County, to 15 years in federal prison, followed by three years of supervised release, in connection with 11 armed commercial robberies and the discharge of a firearm during one of the robberies. 

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, Federal Bureau of Investigation, Baltimore Field Office; Chief Malik Aziz, Prince George’s County Police Department; Chief Richard Bowers, Greenbelt Police Department; and Chief Pamela Smith, Metropolitan Police Department of the District of Columbia.

According to Hale’s plea agreement, between June 19, 2022, and July 23, 2022, he, and co-conspirator Antoine Javon Hare, committed at least 11 separate robberies of at least 10 retail establishments in the District of Columbia and Maryland.  At least one of the robbers used a firearm in each robbery.

Specifically, Hale admitted that on June 19, 2022, and through the course of the next month, he and Hare committed armed robberies of various convenience stores located in Maryland and the District of Columbia.  After their final robbery, Prince George’s County Police Department officers and a Guardian helicopter tracked Hale and Hare’s vehicle as they fled.  The robbers led officers on a high-speed chase into the District of Columbia.  Eventually, they lost control of their vehicle and crashed, leading to their arrest. Officers recovered Hale and Hare’s firearms along with proceeds from at least one of their robberies.

Additionally, Hare pled guilty to his involvement in the abovementioned crimes on December 11, 2024.  Sentencing for Hare is scheduled for March 27, 2025.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone.  On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

U.S. Attorney Barron praised the FBI, Prince George’s County Police Department, Greenbelt Police Department, and the District of Columbia Metropolitan Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Patrick D. Kibbe and Megan S. McKoy who are prosecuting the case.

           For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. 

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Baltimore, Maryland – Today, Chief U.S. District Judge George L. Russell, III, sentenced Gary Rocky Jones, 43, of Baltimore, Maryland, to life in federal prison followed by lifetime supervised release, for the sexual exploitation of 16 minors.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, Federal Bureau of Investigation (FBI), Baltimore Field Office, and Commissioner Richard Worley, Baltimore Police Department.

Already a twice-convicted sex offender, Jones was found guilty in September 2023 of 27 counts of sexually exploiting a child. Additionally, Jones was convicted of 15 counts of using an interstate commerce facility — specifically the internet — to entice a minor to engage in illegal sexual activity, commissioning a felony crime involving a minor by a registered sex offender, and distributing and possessing child sexual abuse material.  

According to the evidence presented at trial, between 2014 and 2015, twice, Jones produced images and videos of a minor male — who was 14 to 15 years old at the time — engaging in sexually explicit conduct.  Additionally, as detailed during the trial, from September 2018 through August 2020, Jones used social media accounts to persuade, entice, and coerce an additional 15 minor males, who were from several different states and ranged from eight to 17 years old, to engage in sexually explicit conduct.

During these internet-based communications, Jones convinced the victims to produce livestreamed and recorded visual depictions of themselves engaging in sexually explicit conduct, alone and with others. Then Jones had the boys send him the sexually explicit images and videos via the internet.

On April 2, 2018, Jones used a social media account to distribute child sexual abuse material.  Additionally, from December 2, 2014, through January 31, 2020, and from May 29, 2017, through July 14, 2020, respectively, Jones possessed child sexual abuse material, in connection with two separate email addresses and related storage accounts.  The jury found that, based on the evidence presented at trial, between 2015 and 2020, Jones committed felony offenses involving minors while he was required to register as a sex offender under Maryland law.

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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.

U.S. Attorney Barron commended the FBI Baltimore Field Office and the Baltimore Police Department for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Paul E. Budlow and Colleen E. McGuinn, who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – Today, there is a Temporary Flight Restriction (TFR) in place for the Army-Navy Game taking place at Northwest Stadium in Landover, Maryland.  This area is considered a No Drone Zone.

The Federal Aviation Administration (FAA) has implemented the TFR which extends for a two-nautical mile radius around the stadium and up to 2,000 feet above ground level. The U.S. Attorney's Office for the District of Maryland and the Federal Bureau of Investigation (FBI) Baltimore Field Office are reminding the public to heed these restrictions, along with local and federal partners including the Prince George's County Police Department, Prince George's County Fire/EMS Department, Naval Criminal Investigation Service, Department of the Army Criminal Investigation Division, and the United States Secret Service. Law enforcement will enforce local and federal laws regarding Unmanned Aircraft Systems (UAS), commonly known as drones. 

“Drone operators need to know that we take seriously any incursion in the restricted airspace around the Army-Navy Game. Such incursions threaten the safety of those involved. We will investigate and prosecute anyone who violates the no drone zone,” said U.S. Attorney Erek L. Barron.

"The Army-Navy game is a time-honored tradition among our nation's military, anticipated by both armed forces and football fans alike. We are committed to keeping everyone safe as they enjoy Saturday's game," said William J. DelBagno, Special Agent in Charge of the FBI's Baltimore Field Office. "Please be aware that no drones are allowed in or near the stadium for the safety of all participants and spectators."

Members of the public are encouraged to report all suspicious activity. Law enforcement will be actively monitoring the airways for illegal UAS/drones and is committed to identifying, investigating, disrupting, and prosecuting the careless or criminal use of drones in the area. 

There is a zero-tolerance policy regarding any UAS/drone use anywhere within the No Drone Zone established by the FAA. Anyone who attempts to fly a UAS/drone in any prohibited manner may be subject to arrest, prosecution, fines, and/or imprisonment.

Learn more about all federal UAS/drone regulations on the FAA website. 

Baltimore, Maryland – After a two-week trial, a federal jury found Jalen Thomas Kelley, 22, Abingdon, Maryland, guilty of aggravated sexual abuse, sexual abuse, and assault within the territorial jurisdiction.

Erek L. Barron, U.S. Attorney for the District of Maryland announced the verdict with Special Agent in Charge William J. DelBagno, Federal Bureau of Investigation (FBI), Baltimore Field Office.

“Sexual violence is a horrific violation of personal autonomy and will not be tolerated. We will hold perpetrators accountable,” said U.S. Attorney Barron. “This verdict should send a message to survivors that they are heard, validated and supported.”

According to the evidence presented at trial, between January 1, and January 2, 2023, the defendant forcibly raped and assaulted the victim, who was a minor at the time, aboard the Carnival Legend. The cruise vessel was scheduled to return to Baltimore on January 2. In addition to the charged offenses, during trial, prosecutors presented testimony from six other individuals who alleged Kelley sexually assaulted them on separate occasions. Kelley faces a maximum sentence of life in prison. A federal district court judge will determine the sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

“We will never stop working to serve justice for the victims of predators like Mr. Kelley, no matter where the crime occurs,” said FBI Baltimore SAC DelBagno said. “Today’s conviction reflects the unwavering resolve of the FBI to protect our communities and keep Americans safe.”

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 U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.  

U.S. Attorney Barron commended the FBI, for its work in the case, and thanked the Harford County State’s Attorney’s Office; Harford Country Sherriff’s Office; Union County North Carolina District Attorney’s Office; Wingate University Campus Safety; and the Wingate Police Department for their assistance.  Additionally, Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Colleen Elizabeth McGuinn, who prosecuted the federal case. He also recognized FBI Special Agent Calista Walker and Legal Administrative Specialist Julie Jarman.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Frederick Douglass Moorefield, Jr., age 64, Arnold, Maryland, to 18 months in federal prison, six months of home detention, and a $20,000 fine, followed by three years of supervised release, for his involvement in a multi-state dogfighting conspiracy.  In addition to the fine, Judge Bennett ordered Moorefield to pay a forfeiture money judgment of $21,576. 

Erek L. Barron, U.S. Attorney for the District of Maryland announced the sentence with Acting Special Agent in Charge David Geist of the Federal Bureau of Investigation, Washington Field Office- Criminal and Cyber Division; Special Agent in Charge Charmeka Parker of the U.S. Department of Agriculture Office of Inspector General; Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General; Defense Criminal Investigative Service – Mid-Atlantic Field Office; U.S. Marshal for Maryland Clinton Fuchs; and Anne Arundel County Police Chief Amal E. Awad.

According to the guilty plea, federal agents began investigating Moorefield’s connection to dogfighting after officers from Anne Arundel County Animal Control responded to a report of two dead dogs found in a plastic dog food bag in Annapolis, Maryland in November 2018.  Investigators found mail addressed to Moorefield inside the bag and a necropsy determined that the dogs bore wounds and scarring patterns consistent with dogfighting.

Eventually, investigators determined that Moorefield was affiliated with a dogfighting enterprise known as the “DMV Board,” which operated in and around Virginia, Maryland, and Washington, D.C. Numerous other members of the DMV Board have been convicted on dogfighting charges in the Eastern District of Virginia. Moorefield operated under the kennel name “Geehad Kennels” and used his home in Arnold to keep, train, and breed dogs for dogfighting for more than 20 years.

A review of Moorefield’s phone and iCloud account showed numerous message exchanges regarding dogfighting with other members of the DMV Board. In addition to arranging fights and wagers, Moorefield and other members of the DMV Board discussed the breeding and training of fighting dogs, procuring supplies for the maintenance and feeding of fighting dogs, and criminal investigations and prosecutions of dogfighters.  Additionally, it was discovered that Moorefield and others discussed the indictments of DMV Board members and speculated about the identity of a “snitch” in the group.

Moorefield’s messages also contained several exchanges arranging, or “hooking,” dogfights. In these conversations, Moorefield would “call out a weight” by identifying the weight and sex of the dog he wanted to sponsor in the fight. Other dogfighters would then propose a fight against their own dogs or match Moorefield with another contact who had a dog in the same weight class. The dogfighters then agreed on wagers and set a date for the fight, usually six to eight weeks after the match was made. In addition to stating the amount to be paid to the winner of the fight, dogfighters agreed on forfeit, or “fit” payments, to be made if a dogfighter backed out of the fight prior to the scheduled date.

After hooking a fight, Moorefield trained his dogs in a process known as a “keep.” Moorefield’s typical keep schedule for a dog involved physical training (using treadmills, weighted collars, and other accessories), a diet plan, and the use of steroids. Moorefield obtained steroids and other veterinary drugs through various contacts in his dogfighting network instead of through legitimate veterinary prescriptions.

When Moorefield sponsored a dog in a fight, the fight ended only when a dog died or when the owner forfeited the match—either through the dog “quitting” the fight or the owner “picking up” the dog. If one of Moorefield’s dogs lost a fight, but did not die, Moorefield killed the dog. One method Moorefield used to kill the dogs was utilizing a device that consisted of jumper cables connected directly to an ordinary plug. Moorefield plugged the device into a wall socket and attached the cables to the dog, electrocuting it.

Between January 2019 and October 2023, Moorefield sent and received monetary payments related to dogfighting through CashApp. Sometimes, transactions were given misleading labels to disguise the true nature of the transferred money. For example, in 2022, Moorefield received a $1,000 transaction labeled as a “housewarming gift” from a known dogfighter. It was determined that Moorefield has lived at the same address for over two decades.

On September 6, 2023, agents searched Moorefield’s residence, recovering five pit-bull-type dogs from large metal cages in a windowless room in the basement. Additionally, agents found several containers of animal medication, dog food, and protein powder in the same room, in addition to the jumper-cable device Moorefield used to kill dog. Law enforcement also seized a large folded-up, blood-stained piece of carpet from a shed on the property. Moorefield used the carpet as the floor of an arena to stage dogfights or “rolls” (brief test fights between dogs to evaluate the dogs’ fighting ability).

When interviewed by agents, Moorefield stated that he had only obtained four of the five dogs found on the property within the past week. The fifth dog, which Moorefield did not obtain within the past week, exhibited calloused skin, an old injury, and fleas. As a result, the dog was humanely euthanized after exhibiting extreme aggression toward both human caretakers and other dogs. Moorefield bred and/or trained all five dogs recovered from his property for the purposes of sponsoring them in dogfights.

At the time Moorefield was charged in this case, he was the Deputy Chief Information Officer for Command, Control, and Communications for the Office of the Secretary of Defense.

U.S. Attorney Barron commended the FBI, the U.S. Department of Agriculture – Office of the Inspector General, the Defense Criminal Investigative Service, the U.S. Marshals Service, the Anne Arundel County Police Department, Anne Arundel County Animal Control, and the U.S. Attorney’s Office for the Eastern District of Virginia for their valuable assistance in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Alexander Levin who prosecuted the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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A federal jury in Maryland convicted two men yesterday for their roles in a scheme to lie to investors in CytoDyn Inc., a publicly traded biotechnology company based in Vancouver, Washington.

According to court documents and evidence presented at trial, Nader Pourhassan, 61, of Lake Oswego, Oregon, and Kazem Kazempour, 71, of Potomac, Maryland, engaged in a scheme to deceive investors about CytoDyn’s development of an investigational drug to artificially inflate and maintain the price of CytoDyn’s stock and to attract new investors. Between 2018 and 2021, CytoDyn sought approval for the drug from the Food and Drug Administration (FDA) to treat HIV and COVID-19. Pourhassan was the chief executive officer of CytoDyn, and Kazempour was the chief executive officer of Amarex Clinical Research LLC, a Germantown, Maryland-based contract research organization that had been hired to conduct Cytodyn’s clinical trials and was serving as the company’s representative with the FDA. Pourhassan and Kazempour diverted proceeds of the scheme for their own benefit, including by selling personal shares of CytoDyn stock at artificially inflated prices.

“The defendants lied to investors and the public — including during the height of the COVID-19 pandemic — about a drug that purportedly treated HIV and COVID-19 in order to artificially inflate CytoDyn’s stock price,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Justice Department is committed to protecting the investing public from criminals who would exploit public health crises for personal profit. These convictions confirm the department’s commitment, together with our law enforcement partners, to hold corrupt C-suite executives who abuse their positions and engage in securities fraud accountable for their actions.”

“With false promises of FDA approval, the defendants enriched themselves by the millions while investors lost,” said U.S. Attorney Erek L. Barron for the District of Maryland. “White collar criminals cause irreparable harm to the public, and we will continue to bring them to justice without fear or favor.”

Pourhassan and Kazempour made false and misleading statements about the timeline and status of CytoDyn’s regulatory submissions to the FDA. In spring 2020, the pair falsely stated that the drug had been submitted for approval to treat HIV, when they knew that the submitted application was incomplete and that the FDA would therefore refuse to review it. Immediately after the announcement, Pourhassan sold more than 4.8 million shares of Cytodyn. Around the same time, Pourhassan engaged in a scheme to misrepresent the status of CytoDyn’s investigation and development of leronlimab as a potential treatment for COVID-19, including the results of clinical trials and the likelihood of approval from the FDA. Pourhassan knew that leronlimab’s clinical studies had failed and that the FDA had not approved the drug for use as a treatment for COVID-19 and had expressed concerns that the submitted data was misleading. During the scheme, CytoDyn raised approximately $300 million from investors, of which more than $22 million was paid to Kazempour’s company. In addition, Pourhassan received $4.4 million and Kazempour received more than $340,000 from their sales of CytoDyn stock.

“These convictions highlight the serious consequences of defrauding investors and manipulating stock prices,” said Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division. “This case reinforces the FBI’s commitment to proving that no scheme, no matter how elaborate, is beyond the reach of the law. We will continue to pursue those who put personal profit above public trust.”

“These convictions demonstrate that those who make misleading statements about clinical trial results to the public — including to healthcare providers and patients — will be held accountable for their actions,” said Special Agent in Charge Robert Iwanicki of the FDA Office of Criminal Investigations (FDA-OCI) Los Angeles Field Office. “The agency will continue to work with other agencies to bring to justice those who place profits above public health.”

“These defendants took advantage of two public health crises when they devised a scheme to swindle investors out of millions of dollars to pad their pockets by lying about the results of clinical trials and approvals from the FDA on an HIV and COVID-19 drug,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “Together, with our law enforcement partners, Postal Inspectors will continue the work of keeping financial systems and the investing public safe from fraudsters.”

Pourhassan was convicted of four counts of securities fraud, two counts of wire fraud, and three counts of insider trading. Kazempour was convicted of one count of securities fraud and one count of wire fraud related to his submission of the application for approval from the FDA and attempt to trade Cytodyn shares the following day. They are scheduled to be sentenced at a later date, and they face a maximum penalty of 20 years in prison for each count of securities fraud, wire fraud, and insider trading. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI, FDA-OCI, and USPIS investigated the case.

Trial Attorneys Lauren Archer and Matthew Reilly and Senior Litigation Counsel Vasanth Sridharan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Adeyemi Adenrele for the District of Maryland are prosecuting the case. Law Clerk Kerstin Abolnik and Paralegal Specialists Selam Wehabe and John Lee of the Fraud Section provided assistance.

Greenbelt, Maryland – A federal jury in Maryland convicted two men yesterday for their roles in a scheme to lie to investors in CytoDyn Inc., a publicly traded biotechnology company based in Vancouver, Washington.

According to court documents and evidence presented at trial, Nader Pourhassan, 61, of Lake Oswego, Oregon, and Kazem Kazempour, 71, of Potomac, Maryland, engaged in a scheme to deceive investors about CytoDyn’s development of an investigational drug to artificially inflate and maintain the price of CytoDyn’s stock and to attract new investors. Between 2018 and 2021, CytoDyn sought approval for the drug from the Food and Drug Administration (FDA) to treat HIV and COVID-19. Pourhassan was the chief executive officer of CytoDyn, and Kazempour was the chief executive officer of Amarex Clinical Research LLC, a Germantown, Maryland-based contract research organization that had been hired to conduct Cytodyn’s clinical trials and was serving as the company’s representative with the FDA. Pourhassan and Kazempour diverted proceeds of the scheme for their own benefit, including by selling personal shares of CytoDyn stock at artificially inflated prices.

“With false promises of FDA approval, the defendants enriched themselves by the millions while investors lost,” said U.S. Attorney Erek L. Barron for the District of Maryland. “White collar criminals cause irreparable harm to the public, and we will continue to bring them to justice without fear or favor.”

“The defendants lied to investors and the public — including during the height of the COVID-19 pandemic — about a drug that purportedly treated HIV and COVID-19 in order to artificially inflate CytoDyn’s stock price,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Justice Department is committed to protecting the investing public from criminals who would exploit public health crises for personal profit. These convictions confirm the department’s commitment, together with our law enforcement partners, to hold corrupt C-suite executives who abuse their positions and engage in securities fraud accountable for their actions.”

Pourhassan and Kazempour made false and misleading statements about the timeline and status of CytoDyn’s regulatory submissions to the FDA. In spring 2020, the pair falsely stated that the drug had been submitted for approval to treat HIV, when they knew that the submitted application was incomplete and that the FDA would therefore refuse to review it. Immediately after the announcement, Pourhassan sold more than 4.8 million shares of Cytodyn. Around the same time, Pourhassan engaged in a scheme to misrepresent the status of CytoDyn’s investigation and development of leronlimab as a potential treatment for COVID-19, including the results of clinical trials and the likelihood of approval from the FDA. Pourhassan knew that leronlimab’s clinical studies had failed and that the FDA had not approved the drug for use as a treatment for COVID-19 and had expressed concerns that the submitted data was misleading. During the scheme, CytoDyn raised approximately $300 million from investors, of which more than $22 million was paid to Kazempour’s company. In addition, Pourhassan received $4.4 million and Kazempour received more than $340,000 from their sales of CytoDyn stock.

“These convictions highlight the serious consequences of defrauding investors and manipulating stock prices,” said FBI Criminal Investigative Division Assistant Director Chad Yarbrough. “This case reinforces the FBI’s commitment to proving that no scheme, no matter how elaborate, is beyond the reach of the law. We will continue to pursue those who put personal profit above public trust.”

“These convictions demonstrate that those who make misleading statements about clinical trial results to the public — including to healthcare providers and patients — will be held accountable for their actions,” said Special Agent in Charge Robert Iwanicki of the FDA Office of Criminal Investigations (FDA-OCI) Los Angeles Field Office. “The agency will continue to work with other agencies to bring to justice those who place profits above public health.”

“These defendants took advantage of two public health crises when they devised a scheme to swindle investors out of millions of dollars to pad their pockets by lying about the results of clinical trials and approvals from the FDA on an HIV and COVID-19 drug,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “Together, with our law enforcement partners, Postal Inspectors will continue the work of keeping financial systems and the investing public safe from fraudsters.”

Pourhassan was convicted of four counts of securities fraud, two counts of wire fraud, and three counts of insider trading. Kazempour was convicted of one count of securities fraud and one count of wire fraud related to his submission of the application for approval from the FDA and attempt to trade Cytodyn shares the following day. They are scheduled to be sentenced at a later date, and they face a maximum penalty of 20 years in prison for each count of securities fraud, wire fraud, and insider trading. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

FBI, FDA-OCI, and USPIS investigated the case.

Trial Attorneys Lauren Archer and Matthew Reilly and Senior Litigation Counsel Vasanth Sridharan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Adeyemi Adenrele for the District of Maryland are prosecuting the case. Law Clerk Kerstin Abolnik and Paralegal Specialists Selam Wehabe and John Lee of the Fraud Section provided assistance.

Baltimore, Maryland – U.S. District Judge Theodore D. Chuang sentenced Marquis Hayes Henderson, 24, Laurel, Maryland, to seven years in federal prison, followed by five years of supervised release for robbery and use of a firearm during and in relation to a crime of violence.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, Federal Bureau of Investigation, Baltimore Field Office, and Chief Malik Aziz, Prince George’s County Police Department.

According to the guilty plea, Henderson and four other co-conspirators met on April 29, 2022, at a Clinton-Maryland storage lot before driving a stolen vehicle to a nearby convenience store.  Henderson brought and pointed a firearm at an employee outside of the store before ordering the worker to go inside and lay down in one of the aisles.  Meanwhile, another co-conspirator entered the store with a power tool and broke open the store’s ATM. The second co-conspirator worked with a third co-conspirator to take $35,020 in cash from the ATM.  The trio joined the other two co-conspirators who were waiting in the stolen vehicle before fleeing.

This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone.  On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

U.S. Attorney Barron commended the FBI and Prince George’s County Police Department for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Joshua A. Rosenthal and William D. Moomau who prosecuted the case.

For more information  about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – After a four day trial, a federal jury found Ryan E. Dales, age 36, guilty of being a felon in possession of a firearm, possession with intent to distribute fentanyl, and possession of a firearm in furtherance of his drug trafficking crime.

The verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor, Office of Inspector General (DOL-OIG).

A jury trial in connection with the remaining counts in the Superseding Indictment pertaining to Wire Fraud and Aggravated Identity Theft charges is scheduled to begin on January 13, 2025.  These charges relate to Dales’s alleged receipt of fraudulent unemployment insurance benefits and his alleged use of victim identities to obtain various high-end lawnmowers on credit. 

According to the evidence presented at trial, on January 20, 2023, Defendant was arrested pursuant to a federal arrest warrant and, that same day, a federal search warrant was executed at Defendant’s residence located at 900 E Fort Ave. in Baltimore—a luxury apartment building in the Locust Point area of Baltimore.  During the execution of the search warrant, law enforcement located and seized, among other things various items used in connection with Defendant’s illegal business selling drugs, including:

• two loaded firearms, a stolen Smith & Wesson firearm, S/N: HDW0599 and one which was a privately-made “ghost gun” Polymer80 9mm firearm with no serial number;
• a box containing 28 rounds of 9mm ammunition, including hollow point ammunition; 
• numerous packages of controlled dangerous substances, including hundreds of grams of fentanyl packaged for street level distribution;
• multiple digital scales; sifters, a heat sealer, a bag containing 10,000 empty capsules meant to package drugs, other drug packing materials, various cutting agents, a respirator; and
• six cell phones.

Dales later voluntarily waived his Miranda rights and admitted to living in his apartment alone and that the firearms seized in his apartment were his.  He also told law enforcement that he was a “very resourceful person”—referring to his livelihood as a drug dealer.  Dales’s DNA was later determined to be present on both firearms and their magazines.

Law enforcement’s later review of Defendant’s devices revealed the existence of numerous Telegram chats where he negotiated purchasing drugs and cutting agents from multiple people, including mass producers of fentanyl in China.  Investigators further found evidence that about a month before the execution of the search warrant, Dales traveled to Boston with a firearm (identical in appearance to the ghost gun found in his apartment) and a bag full of cash to purchase drugs. Dales’s device search history included searches for where fentanyl is produced in China, how to dye powders, and how many bullets a Smith and Wesson M&P 9c firearm—the same type seized from his apartment—can hold.  

Dales faces a maximum sentence of 20 years in federal prison for being a felon in possession of a firearm; a mandatory minimum of five years and up to 40 years in federal prison for possession with intent to distribute 40 grams or more of fentanyl; a mandatory minimum sentence of five years, consecutive to any other sentence imposed, and up to life in federal prison for possession of a firearm in furtherance of drug trafficking.  U.S. District Chief Judge George Levi Russell, III, has scheduled sentencing for a later to be determined date.

This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.  The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic.  The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors.  The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.  Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

United States Attorney Erek L. Barron commended the FBI and DOL-OIG for their work in connection with the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Paul A. Riley, and Reema Sood, who are prosecuting the federal case.  He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore – Today, U.S. District Judge Stephanie A. Gallagher sentenced Trevon Gardner, 23, of Baltimore, to 12 years in federal prison, followed by five years of supervised release, for his involvement in an armed carjacking of a Baltimore Police Department (BPD) detective in Baltimore. 

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, Federal Bureau of Investigation, Baltimore Field Office, and Commissioner Richard Worley, BPD.

According to the plea agreement, on May 3, 2022, BPD Detective Aaron Cain was at a 7-Eleven store at 2830 South Hanover Street, located in the Cherry Hill neighborhood. Detective Cain wore his training uniform, which consisted of dark cargo-style pants; a polo shirt with an embroidered BPD badge emblem on the chest area; his BPD credentials on a lanyard around his neck; his BPD badge; radio; and service weapon in his waistband. He was also driving an unmarked BPD vehicle.

 Video surveillance camera footage shows Cain walking from the 7-Eleven towards his vehicle and opening the front passenger-side door.  Then, the defendant and two other males approached the vehicle. One of the men brandished a handgun and struck Cain in the upper body near his head, causing Cain to fall to the ground and hit his head.  While Cain was on the ground, one of the men kicked and punched him.  Then the three males entered the BPD vehicle and sped away. Cain stood to his feet and discharged his service weapon at the vehicle.

Additional video surveillance footage from a local business shows the BPD vehicle traveling at a high rate of speed as it exited the Hanover Street Bridge in South Baltimore.  The vehicle flipped onto its roof and crashed approximately one-half mile from the 7-Eleven store.  The defendant and the other two males bailed from the vehicle and attempted to flee from the scene.  But the defendant and a juvenile male were quickly apprehended.  The third suspect was not apprehended.  A black Taurus 9mm handgun — located next to the wrecked police vehicle — was loaded with nine rounds of ammunition.  At the time of the defendant’s arrest, he wore one black-and-white Nike slide. The matching Nike slide was located adjacent to the wrecked police vehicle.

This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone.  On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

U.S. Attorney Barron commended the FBI and the Baltimore Police Department for their work in this investigation.  Mr. Barron also thanked Assistant U.S. Attorney John W. Sippel, Jr., who prosecuted the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – A federal grand jury has indicted Juan Carlos Puente, 46, of Clinton, Maryland, charging him with multiple child exploitation offenses.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge William J. DelBagno, Federal Bureau of Investigation (FBI), Baltimore Field Office.

According to the seven-count indictment, between approximately October 1, 2021, and April 22, 2022, Puente enticed a minor victim to engage in unlawful sexual activity and produce child pornography.  Additionally, Puente traveled outside of the United States to engage in illicit sexual conduct with the minor victim.  On January 9, 2024, Puente also possessed sexually explicit images involving a prepubescent minor and a minor victim who was under 12 years of age.

Puente was charged with two counts of production of child pornography, one count of attempted production of child pornography, one count of travel with intent to engage in illicit sexual conduct, one count of engaging in illicit sexual conduct in a foreign place, one count of coercion and enticement of a minor, and one count of possession of child pornography.

If convicted, Puente faces a mandatory minimum sentence of 15 years in federal prison and up to 90 years in federal prison for the production and attempted production of child pornography counts.  Additional penalties could include a mandatory minimum of 10 years in federal prison and up to life in federal prison for coercion and enticement of a child; a maximum of 30 years in federal prison for travel with intent to engage in illicit sexual conduct and engaging in illicit sexual conduct in a foreign place; and a maximum of 20 years in federal prison for possession of child pornography involving a prepubescent minor and minor who had not attained 12 years of age. 

Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. 

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

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 U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page. 

If you suspect that you have information that could aid law enforcement’s investigation, you are encouraged to call the FBI Baltimore Field Office at (410) 265-8080.

U.S. Attorney Barron commended the FBI for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Megan S. McKoy and Trial Attorney Jessica L. Urban, Criminal Division’s Child Exploitation and Obscenity Section, who are prosecuting the case.

For more information  about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – A New York business owner has been found guilty of recklessly transporting a dangerous probable carcinogen without proper documentation and knowingly selling an unregistered pesticide in Maryland.  

The conviction was announced by U.S. Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Allison Landsman, of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID).

Idrissa Bagayoko, 58, owner and operator of Maliba Trading LLC, was found guilty by a Baltimore jury in federal court of two counts related to his transporting and sale of the unregistered pesticide known as Sniper DDVP.  Charges were brought against Bagayoko under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Hazardous Material Transportation Act.

FIFRA provides for federal regulation of pesticide distribution, sale, and use to ensure that pesticides sold in the United States are safe, effective, and bear labelling containing true and accurate information.  The Environmental Protection Agency (EPA) has responsibility under FIFRA to regulate the distribution and sale of all pesticides shipped or received in interstate commerce.  All pesticides must be registered with the EPA before the pesticide can be sold or distributed, and no person may distribute or sell a pesticide that has not been registered with the EPA.

The Hazardous Material Transportation Act provides for federal regulation of hazardous substances transported in interstate commerce.  The Department of Transportation (DOT) has responsibility under the Hazardous Material Transportation Act to ensure private motor carriers maintain shipping papers with critical information about the relevant hazardous substance to safeguard police and first responders in the event of an accident or exposure.  

According to evidence presented at trial, on September 29, 2021, Bagayoko drove from New York to Maryland and sold two boxes of the unregistered pesticide Sniper DDVP to an individual in Maryland.  Police later stopped Bagayoko in Elkton, Maryland, with 18 additional boxes of Sniper DDVP.  The government’s investigation revealed that the defendant procured a total of 1,728 bottles of Sniper DDVP and drove from New York to Maryland to sell the unregistered pesticide.

Laboratory testing of samples taken from the bottles revealed each bottle contained the chemical dichlorvos, which has been classified by the EPA as a probable human carcinogen.  The defendant transported over 330 pounds of dichlorvos, without requisite shipping papers, which alert first responders that they are dealing with a probable carcinogen, in the event of an accident.

The illegal sale of an unregistered pesticide carries a statutory maximum prison sentence of one year and a fine of up to $25,000.  The illegal transport of dichlorvos without required shipping papers carries a statutory maximum prison sentence of five years and a fine up to $250,000.

U.S. Attorney Barron thanked Assistant U.S. Attorney Kimberly Phillips and Special Assistant U.S. Attorneys Kertisha Dixon and David Lastra, who prosecuted the case.  Mr. Barron also thanked Special Agent Christopher Michael with the U.S. Environmental Protection Agency, Criminal Investigation Division, Special Agent Charles Bradford with the U.S. Department of Transportation, Office of Inspector General, and the Elkton Maryland Police Department, for investigating the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – On Friday, November 22, 2024, after a nine-day trial, a federal jury found Stephen L. Snyder of Baltimore, Maryland guilty of one count of Attempted Extortion and seven counts of the Travel Act. The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office.

The evidence at trial showed that Snyder, a plaintiffs medical malpractice attorney in the Baltimore area, represented two medical malpractice claimants who allegedly experienced injury following organ transplants at the University of Maryland Medical Center (“UMMC”). One of those claimants received a kidney transplant. From in or around January 2018 through September 2018, Snyder attempted to extort the University of Maryland Medical System (“UMMS”) by threatening to “destroy” the UMMC transplant department unless UMMS paid him $25 million personally, and separate from any settlement with his client.

Specifically, Snyder threatened a public relations campaign that would falsely accuse UMMC of tricking unsophisticated patients into accepting diseased organs. Snyder claimed that he would run a front-page ad in the Baltimore Sun, hold a press conference, and create an internet advertisement that would direct anyone searching for the UMMC transplant program to his law firm’s website. Snyder also threatened to release commercials that he created that conveyed his false message and accused UMMC of putting “profits over safety.” Snyder played these commercials during meetings with attorneys representing UMMS. Snyder claimed that the parties could enter into a sham consulting agreement that would provide cover for the $25 million payment.

Snyder made his extortionate demands and threats over a series of meetings and phone calls with attorneys for UMMS in 2018. One of those meetings, which occurred on August 23, 2018, was recorded by Federal law enforcement using hidden video cameras.

Snyder faces a maximum sentence of 20 years of incarceration for the Hobbs Act violation and up to 5 years of incarceration on each Travel Act violation. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is currently scheduled for February 25, 2025 at 10:00 am.

U.S. Attorney Barron commended the FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Matthew P. Phelps and Evelyn L. Cusson, who prosecuted the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – Today, the U.S. Attorney’s Office for the District of Maryland joined the Office of the State’s Attorney for Baltimore City (SAO) — and its Major Investigations Unit — the Mayor’s Office, Baltimore Police Department (BPD), U.S. Drug Enforcement Administration (DEA), and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to share details about the largest takedown in Baltimore in decades.

This investigation uncovered four separately operated criminal organizations whose primary enterprise was trafficking narcotics. Ivan Roman and Andre Berry are facing federal charges for firearm-related offenses and possession with the intent to distribute narcotics. The SAO announced charges against 40 individuals for drug trafficking and firearm offenses that occurred throughout southwest Baltimore City. This takedown is part of the City’s Group Violence Reduction Strategy (GVRS). Ongoing violence in these areas was the catalyst for the investigation. While examining violent feuds in these regions, law enforcement uncovered the existence of at least four separate criminal organizations that engaged in the daily street-level distribution of narcotics.

During the course of the nearly year-long investigation, law enforcement employed various investigative methods. This included executing search-and-seizure warrants and recovering approximately 65 firearms of varying calibers, including ghost guns and firearms equipped with rapid-fire trigger activators, which allow the firearms to operate as fully automatic weapons. Additionally, law enforcement recovered body armor, approximately 7.25 kilograms of suspected cocaine, approximately three kilograms of suspected heroin/fentanyl mixture, approximately 110 pounds of suspected cannabis, approximately $373,275.50 — believed to be proceeds from the sale of narcotics — and 15 stolen automobiles. 

“Operation Tornado Alley comes on the heels of our newly executed Baltimore Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force memorandum of understanding between the Maryland U.S. Attorney’s Office and our federal, state, and local law enforcement partners,” said U.S. Attorney Erek L. Barron. “This operation proves that we’ve taken the Strike Force to the next level in combating violent crime in the Baltimore region. Violent offenders better beware, we are a force-multiplier for the work of our state and local partners on the ground.”

These four criminal organizations conducted criminal activity in the surrounding areas of the 1700 block of Lemmon Street, 2000 block of W. Pratt Street, 500 block of Millington Avenue, and 2800 block of Edmondson Avenue. The SAO has secured 38 state indictments with 35 defendants, involving four conspiracies.

“The dismantling of multiple criminal organizations and the arrest of numerous individuals accused of committing violence in our city is a significant victory for the people of Baltimore. Simultaneously taking down this many criminal enterprises requires skilled collaboration across various levels of law enforcement, and this achievement underscores the exceptional effectiveness of our prosecutors, agents, investigators, detectives, police officers, and community partners working tirelessly to make our city a safer place,” said State’s Attorney Ivan J. Bates. “Dismantling these operations marks a significant step forward in our mission to protect our communities from the dangers of illegal drugs and violence. We are not only disrupting the flow of dangerous narcotics but also sending a strong message that Baltimore will not tolerate criminal operations that threaten the safety and well-being of our residents. Our office remains committed to fighting crime on all fronts and working with our community to create a safer, healthier Baltimore for all.”

“This takedown is a powerful example of what we can achieve through strong partnerships and focused investigations,” said Police Commissioner Richard Worley. “By removing dangerous individuals, illegal firearms, and drugs from our streets, we are taking significant steps toward making Baltimore a safer city. The hard work and dedication of our officers and partner agencies highlight our shared commitment to the Group Violence Reduction Strategy and working together to reduce violence and protect our communities. We remain relentless in our pursuit of those who bring harm to our neighborhoods.”

“We are battling an unprecedented drug poisoning epidemic that has claimed thousands of American lives. I’m talking about the Opioid/Fentanyl Poisoning Crisis. Together, we are sending a powerful and direct message to drug trafficking organizations, their leaders, and those who enable their illegal and violent activities:  We will not tolerate these actions and are committed to relentlessly pursuing justice against them,” said SAC Jarod Forget of the DEA’s Washington Division.

“ATF is proud to collaborate with our state and local partners to investigate these violent criminal organizations. These charges are a critical step forward in holding those who would commit violence in the city of Baltimore accountable. ATF remains dedicated to bringing those who illegally possess and use firearms to justice,” said SAC Toni Crosby, Baltimore Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

“This is what GVRS’s accountability component looks like. Working together, sharing intelligence, collaborating with prosecutors on law enforcement investigations, and leveraging our collective resources to hold those who violate the strategy’s mandate to put down the guns and make the decision to perpetuate harm and violence accountable,” said Mayor Brandon M. Scott. “I want to thank State’s Attorney Bates, US Attorney Barron, Governor Moore, GOCCP, our Federal partners at the ATF and DEA, BPD’s Group Violence Unit, Anne Arundel County Police, Baltimore County Police, and our team at MONSE for doing the investigative and enforcement work necessary to incapacitate violent groups plaguing our communities.”

Law enforcement identified multiple sources supplying fentanyl and cocaine, some of whom were importing large quantities of narcotics from outside of the state. This included approximately 3.4 kilograms of suspected cocaine couriered from New York into Maryland on behalf of the criminal organization operating in and around the 500 block of Millington Avenue. The criminal organization maintained caches of firearms to protect their supply of narcotics and secure their territory.

In March 2024, BPD executed search warrants in the 500 block of Millington Avenue, which resulted in the seizure of five rifles, three handguns, and body armor. A rival organization — operating in and around the 1700 block of Lemmon Street — engaged in drug trafficking, firearm trafficking, and car thefts to finance and further their enterprise. As a result of proactive enforcement during this investigation, law enforcement thwarted numerous violent incidents, including the prevention of an armed robbery and shutting down a violent territorial dispute.

On November 19, 2024, BPD executed 16 search-and-seizure warrants with the assistance of the DEA, the ATF, the Federal Bureau of Investigation (FBI), Maryland State Police (MSP), the Baltimore County Police Department, the Howard County Police Department, the Harford County Police Department,  the Baltimore City Fire Department, and the Baltimore City Health Department Animal Control, pertaining to the criminal organizations operating in and around the 2800 block of Edmondson Avenue, the 500 block of Millington Avenue, and the 1700 block of Lemmon Street. In total, law enforcement recovered approximately 525 grams of suspected heroin/fentanyl mixture, approximately 340 grams of suspected cocaine, six firearms varying in caliber, and $9,701, believed to be proceeds from the sale of narcotics.

Defendants have been charged with offenses such as Managing and Participating in a Criminal Organization, Conspiracy to Distribute Narcotics, Firearm Drug Trafficking, Unlawful Sale of a Regulated Firearm, Firearm Possession by a Prohibited Person, Distribution of Fentanyl, and Distribution of Cocaine. Some have also been charged with offenses such as Conspiracy to Commit Murder, Attempted Murder, and Armed Robbery. The investigation is ongoing concerning additional acts of violence committed by members of criminal organizations to further the interests of their enterprise. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone.  On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location.  This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Baltimore Strike Force is to identify, disrupt, and dismantle violent drug trafficking, money laundering, and transnational criminal organizations to reduce drug-related and/or gang violence in the Baltimore metropolitan and surrounding areas.  The Baltimore Strike Force is comprised of agents and officers from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Homeland Security, the United States Marshals Service, the United States Secret Service, United States Postal Inspection Service, the Maryland State Police, the Baltimore Police Department, the Baltimore Sheriff’s Office, the Baltimore County Police Department, the Maryland Transportation Authority, and the Maryland Department of Public Safety and Correctional Services.

U.S. Attorney Erek L. Barron commended the DEA, ATF, and FBI for their work in the investigation.   Mr. Barron also thanked the Baltimore Police Department, other law enforcement agencies, the Assistant State’s Attorneys with the Office of the Baltimore City State’s Attorney, and Assistant U.S. Attorney Michael C. Hanlon, who is prosecuting the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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The Justice Department unsealed criminal charges today against Evgenii Ptitsyn, 42, a Russian national, for allegedly administering the sale, distribution, and operation of Phobos ransomware. Ptitsyn made his initial appearance in the U.S. District Court for the District of Maryland on Nov. 4 after being extradited from South Korea. Phobos ransomware, through its affiliates, victimized more than 1,000 public and private entities in the United States and around the world, and extorted ransom payments worth more than $16 million dollars.

“The Justice Department is committed to leveraging the full range of our international partnerships to combat the threats posed by ransomware like Phobos,” said Deputy Attorney General Lisa Monaco. “Evgenii Ptitsyn allegedly extorted millions of dollars of ransom payments from thousands of victims and now faces justice in the United States thanks to the hard work and ingenuity of law enforcement agencies around the world — from the Republic of Korea to Japan to Europe and finally to Baltimore, Maryland. Together with our partners across the globe, we will continue to hold cybercriminals accountable and protect innocent victims.”

“The indictment alleges that Ptitsyn and his co-conspirators ran the Phobos ransomware group, whose members committed ransomware attacks against more than 1,000 public and private victims throughout the United States and the rest of the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Ptitsyn and his co-conspirators hacked not only large corporations but also schools, hospitals, nonprofits, and a federally recognized tribe, and they extorted more than $16 million in ransom payments. Ptitsyn’s indictment, arrest, and extradition reflect the Criminal Division’s commitment to leading the fight against the international scourge of ransomware. We are especially grateful to our domestic and foreign law enforcement partners, like South Korea, whose collaboration is essential to disrupting and deterring the most significant cybercriminal threats facing the United States.”

“It’s only a matter of time, cybercriminals will be caught and brought to justice,” said U.S. Attorney Erek L. Barron for the District of Maryland. “According to the indictment, Ptitsyn facilitated the worldwide use of a dangerous ransomware strain to target corporations and various organizations, including government agencies, healthcare facilities, educational institutions, and critical infrastructure. The U.S. Attorney’s Office for the District of Maryland is committed to bringing cybercriminals to justice and working with the private sector and the academic community to prevent and disrupt their activities.”

“The FBI is working tirelessly to ensure that ransomware actors, both developers and affiliates, face the consequences of their actions,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We know it takes strong partnerships to disrupt cybercriminal networks, and the FBI must thank our partners for the important roles they play in carrying out this mission. The extradition announced today would not have been possible without their assistance.”

As alleged in the indictment, beginning in at least November 2020, Ptitsyn and others conspired to engage in an international computer hacking and extortion scheme that victimized public and private entities through the deployment of Phobos ransomware.

As part of the scheme, Ptitsyn and his co-conspirators allegedly developed and offered access to Phobos ransomware to other criminals or “affiliates” for the purposes of encrypting victims’ data and extorting ransom payments from victims. The administrators operated a darknet website to coordinate the sale and distribution of Phobos ransomware to co-conspirators and used online monikers to advertise their services on criminal forums and messaging platforms. At relevant times, Ptitsyn allegedly used the monikers “derxan” and “zimmermanx.”

Affiliates would then allegedly hack into the victims’ computer networks, often using stolen or otherwise unauthorized credentials; copy and steal files and programs on the victims’ networks; and encrypt the original versions of the stolen data on the networks by installing and executing Phobos ransomware. Affiliates then extorted the victims for ransom payments in exchange for the decryption keys to regain access to encrypted data by leaving ransom notes on compromised victims’ computers and by calling and emailing victims to initiate the ransom payment negotiations. Affiliates also threatened to expose victims’ stolen files to the public or to the victims’ clients, customers, or constituents if the ransoms were not paid.

After a successful Phobos ransomware attack, criminal affiliates paid fees to Phobos administrators like Ptitsyn for a decryption key to regain access to the encrypted files. Each deployment of Phobos ransomware was assigned a unique alphanumeric string in order to match it to the corresponding decryption key, and each affiliate was directed to pay the decryption key fee to a cryptocurrency wallet unique to that affiliate. From December 2021 to April 2024, the decryption key fees were then transferred from the unique affiliate cryptocurrency wallet to a wallet controlled by Ptitsyn.

Ptitsyn is charged in a 13-count indictment with wire fraud conspiracy, wire fraud, conspiracy to commit computer fraud and abuse, four counts of causing intentional damage to protected computers, and four counts of extortion in relation to hacking. If convicted, Ptitsyn faces a maximum penalty of 20 years in prison for each wire fraud count; 10 years in prison for each computer hacking count; and five years in prison for conspiracy to commit computer fraud and abuse. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Baltimore Field Office is investigating the case. The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the Korean Ministry of Justice to secure the arrest and extradition of Ptitsyn. The Justice Department extends its thanks to international judicial and law enforcement partners in South Korea, the United Kingdom, Japan, Spain, Belgium, Poland, Czech Republic, France, and Romania, as well as Europol and the U.S. Department of Defense Cyber Crime Center, for their cooperation and coordination with the Phobos ransomware investigation. The Justice Department’s National Security Division also provided valuable assistance.

Senior Counsel Aarash A. Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Aaron S.J. Zelinsky and Thomas M. Sullivan for the District of Maryland are prosecuting the case. CCIPS Trial Attorney Riane Harper and former Assistant U.S. Attorney Jeffrey J. Izant for the District of Maryland provided substantial assistance.

Additional details on protecting networks against Phobos ransomware are available at StopRansomware.gov, including Cybersecurity and Infrastructure Security Agency Advisory AA24-060A.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Baltimore, Maryland – The Justice Department unsealed criminal charges today against Evgenii Ptitsyn, 42, a Russian national, for allegedly administering the sale, distribution, and operation of Phobos ransomware. Ptitsyn made his initial appearance in the U.S. District Court for the District of Maryland on November 4 after being extradited from South Korea. Phobos ransomware, through its affiliates, victimized more than 1,000 public and private entities in the United States and around the world, and extorted ransom payments worth more than $16 million dollars.

“It’s only a matter of time, cybercriminals will be caught and brought to justice,” said U.S. Attorney Erek L. Barron for the District of Maryland. “According to the indictment, Ptitsyn facilitated the worldwide use of a dangerous ransomware strain to target corporations and various organizations, including government agencies, healthcare facilities, educational institutions, and critical infrastructure. The Maryland U.S. Attorney’s Office is committed to bringing cybercriminals to justice and working with the private sector and the academic community to prevent and disrupt their activities.”

“The Justice Department is committed to leveraging the full range of our international partnerships to combat the threats posed by ransomware like Phobos,” said Deputy Attorney General Lisa Monaco. “Evgenii Ptitsyn allegedly extorted millions of dollars of ransom payments from thousands of victims and now faces justice in the United States thanks to the hard work and ingenuity of law enforcement agencies around the world — from the Republic of Korea to Japan to Europe and finally to Baltimore, Maryland. Together with our partners across the globe, we will continue to hold cybercriminals accountable and protect innocent victims.”

“The indictment alleges that Ptitsyn and his co-conspirators ran the Phobos ransomware group, whose members committed ransomware attacks against more than 1,000 public and private victims throughout the United States and the rest of the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Ptitsyn and his co-conspirators hacked not only large corporations but also schools, hospitals, nonprofits, and a federally recognized tribe, and they extorted more than $16 million in ransom payments. Ptitsyn’s indictment, arrest, and extradition reflect the Criminal Division’s commitment to leading the fight against the international scourge of ransomware. We are especially grateful to our domestic and foreign law enforcement partners, like South Korea, whose collaboration is essential to disrupting and deterring the most significant cybercriminal threats facing the United States.”

“The FBI is working tirelessly to ensure that ransomware actors, both developers and affiliates, face the consequences of their actions,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We know it takes strong partnerships to disrupt cybercriminal networks, and the FBI must thank our partners for the important roles they play in carrying out this mission. The extradition announced today would not have been possible without their assistance.”

“Ransomware not only disrupts lives and businesses, but it also threatens the health, safety and security of innocent Americans and others worldwide,” said FBI Baltimore Special Agent in Charge William J. DelBagno. “I am grateful for the dedication and thorough work of our FBI Baltimore cybercrime squad who worked diligently to bring Ptitysn to justice. Our valuable local and international partnerships played a pivotal role in successfully arresting and extraditing him. We will continue to prioritize the partnerships necessary to stop ransomware actors and hold them accountable for their crimes.”

As alleged in the indictment, beginning in at least November 2020, Ptitsyn and others conspired to engage in an international computer hacking and extortion scheme that victimized public and private entities through the deployment of Phobos ransomware.

As part of the scheme, Ptitsyn and his co-conspirators allegedly developed and offered access to Phobos ransomware to other criminals or “affiliates” for the purposes of encrypting victims’ data and extorting ransom payments from victims. The administrators operated a darknet website to coordinate the sale and distribution of Phobos ransomware to co-conspirators and used online monikers to advertise their services on criminal forums and messaging platforms. At relevant times, Ptitsyn allegedly used the monikers “derxan” and “zimmermanx.”

Affiliates would then allegedly hack into the victims’ computer networks, often using stolen or otherwise unauthorized credentials; copy and steal files and programs on the victims’ networks; and encrypt the original versions of the stolen data on the networks by installing and executing Phobos ransomware. Affiliates then extorted the victims for ransom payments in exchange for the decryption keys to regain access to encrypted data by leaving ransom notes on compromised victims’ computers and by calling and emailing victims to initiate the ransom payment negotiations. Affiliates also threatened to expose victims’ stolen files to the public or to the victims’ clients, customers, or constituents if the ransoms were not paid.

After a successful Phobos ransomware attack, criminal affiliates paid fees to Phobos administrators like Ptitsyn for a decryption key to regain access to the encrypted files. Each deployment of Phobos ransomware was assigned a unique alphanumeric string in order to match it to the corresponding decryption key, and each affiliate was directed to pay the decryption key fee to a cryptocurrency wallet unique to that affiliate. From December 2021 to April 2024, the decryption key fees were then transferred from the unique affiliate cryptocurrency wallet to a wallet controlled by Ptitsyn.

Ptitsyn is charged in a 13-count indictment with wire fraud conspiracy, wire fraud, conspiracy to commit computer fraud and abuse, four counts of causing intentional damage to protected computers, and four counts of extortion in relation to hacking. If convicted, Ptitsyn faces a maximum penalty of 20 years in prison for each wire fraud count; 10 years in prison for each computer hacking count; and five years in prison for conspiracy to commit computer fraud and abuse. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Baltimore Field Office is investigating the case. The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the Korean Ministry of Justice to secure the arrest and extradition of Ptitsyn. The Justice Department extends its thanks to law enforcement partners in South Korea, the United Kingdom, Japan, Spain, Belgium, Poland, Czech Republic, France, and Romania, as well as Europol and the U.S. Department of Defense Cyber Crime Center, for their cooperation and coordination with the Phobos ransomware investigation. The Justice Department’s National Security Division also provided valuable assistance.

Senior Counsel Aarash A. Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Aaron S.J. Zelinsky and Thomas M. Sullivan for the District of Maryland are prosecuting the case. CCIPS Trial Attorney Riane Harper and former Assistant U.S. Attorney Jeffrey J. Izant for the District of Maryland provided substantial assistance.

Additional details on protecting networks against Phobos ransomware are available at StopRansomware.gov, including Cybersecurity and Infrastructure Security Agency Advisory AA24-060A.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

###

First-grade teacher allegedly sold drugs on school property during work hours.

Greenbelt, Maryland – The U.S. Attorney’s Office for the District of Maryland has filed a criminal complaint against Sarah Katherine Magid, 34, of Burtonsville, Maryland. Magid is charged with distributing fentanyl that resulted in serious bodily injury and the death of a victim.  The criminal complaint was unsealed on November 13, 2024, as Magid appeared in the U.S. District Court in Greenbelt before U.S. Magistrate Judge Gina L. Simms.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the charge with Special Agent in Charge Jarod Forget, Drug Enforcement Administration, Washington Division, and Chief Marc R. Yamada, Montgomery County Police Department.

After the death of the victim in March 2024, law enforcement discovered text messages between the victim and Magid pertaining to the distribution of fentanyl.  Specifically, a forensic analysis of the victim’s cell phone revealed a text conversation and subsequent meeting between Magid and the victim. The messages uncovered a drug transaction involving pills that had been pressed to appear like oxycodone hydrochloride 30 mg pills but actually contained fentanyl.  After the meeting and transaction, the victim was found deceased.  The Washington, D.C., Office of the Chief Medical Examiner determined the victim’s cause of death was fentanyl toxicity.

Additionally, in July 2024, a complainant reported to law enforcement that Magid, a Montgomery County first-grade schoolteacher, exited her classroom to sell drugs to people outside of the school.  Law enforcement subsequently identified text messages from Magid’s phone indicating that she dealt drugs during work hours.

If convicted, Magid faces a mandatory minimum sentence of 20 years imprisonment up to a maximum sentence of life in federal prison for the distribution of fentanyl resulting in death or serious bodily injury.  Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

The law enforcement agencies involved in the investigation are all partners in the recently announced Maryland Fatal Fentanyl Overdose Task Force (“MFOTFF”).  Led and coordinated by the U.S. Attorney’s Office for the District of Maryland and the DEA’s Washington Division, the task force is focused on raising awareness of the dangers of fentanyl, as well as creating connections between local, state, and federal authorities to increase prosecutions of overdose-death cases in Maryland.  A Public Service Announcement created for MFFOTF is available online.

U.S. Attorney Barron commended the DEA and the Montgomery County Police Department for their work in the investigation and thanked the Metropolitan Police Department and the Montgomery County State's Attorney’s Office for their assistance.  Mr. Barron also thanked Assistant U.S. Attorneys Megan S. McKoy and Elizabeth Wright who are prosecuting this federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – A federal grand jury returned an indictment charging Jerry John Mathins, age 50, of Laurel, Maryland, and Braysean Owens, age 23, of Baltimore, Maryland, with conspiracy to commit odometer tampering and three counts of securities fraud.

The indictment alleges that, along with other known and unknown co-conspirators, Owens purchased used vehicles with high mileages at auction and altered the titles of those vehicles to reflect a significantly lower odometer reading.  Then, Owens and Mathins caused the odometers of those vehicles to be falsely lowered, consistent with the altered titles.  Finally, on behalf of B-City Auto & Detailing, a Rosedale, Maryland vehicle dealership, Owens and others, sold hundreds of these vehicles to unsuspecting buyers.  These buyers paid, in some instances, thousands of dollars more than they would have if they knew the true mileage of these vehicles.

The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation Baltimore Field Office, and Deputy Administrator Sophie Shulman of the National Highway Traffic Safety Administration.

“The U.S. Attorney’s Office prioritizes protecting consumers from deceptive practices,” said U.S. Attorney Barron.  “We will investigate and hold accountable those who fraudulently obtain individuals’ hard-earned money, including through odometer fraud, as alleged in this case.”

“This was an elaborate scheme that targeted hundreds of unsuspecting car buyers who trusted they were purchasing cars with accurate mileage. Our thorough investigation illustrates how Mathins and Owens deceived these buyers to illegally line their own pockets,” says FBI Baltimore Special Agent in Charge William J. DelBagno.  “This case exemplifies the FBI’s commitment to vigorously pursue criminals who orchestrate fraud schemes and bring them to justice.”

“Odometer fraud is a serious and costly crime, and NHTSA is dedicated to protecting American car buyers from these deceptive and dangerous practices,” NHTSA Deputy Administrator Sophie Shulman said. “The agency will continue to educate the public on how to detect odometer fraud and will keep working with the FBI and U.S. Attorneys’ offices to investigate and prosecute these cases.”

If convicted, Owens faces up to 10 years in prison for each securities fraud count and Mathins faces up to 5 years in prison for the conspiracy to commit odometer tampering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This case was investigated by the Federal Bureau of Investigation and the Department of Transportation National Highway Traffic Safety Administration with the assistance of the Maryland Motor Vehicle Administration and the Baltimore County Police Department. It is being prosecuted by Assistant U.S. Attorneys Adeyemi Adenrele and Michael Hanlon.

NHTSA estimates that odometer fraud in the United States costs consumers more than $1 billion annually. NHTSA encourages the public to report odometer fraud by calling its Vehicle Safety Hotline at 888-327-4236.

More information on odometer fraud is available at https://www.nhtsa.gov/vehicle-safety/odometer-fraud, and tips on detecting and avoiding odometer fraud are available at www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Greenbelt, Maryland – A Maryland man who owns a retail store pleaded guilty to evading his income taxes by not reporting cash taken from his business.

The guilty plea was announced by U.S. Attorney for the District of Maryland Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. 

According to court documents and statements made in court, for over twenty years, William M. Bundy of District Heights owned and operated Bab’s Inc., a store located in District Heights, Maryland, that only accepted cash payments.  From 2017 through 2021, Bundy received wages from Bab’s but also took cash from the business without reporting that cash as income on his tax returns.  He used the cash for personal expenditures, including gambling.  Over a five-year period, Bundy gambled and lost over $3 million at two Maryland-area casinos, funded in part by $2.2 million in cash from Bab’s.

In total, for the years 2017 through 2021, Bundy owes federal income taxes of $672,558.

Bundy is scheduled to be sentenced on February 21, 2025.  He faces a maximum of five years in prison.  He also faces a period of supervised release, restitution, and monetary penalties.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Erek L. Barron commended the IRS Criminal Investigation for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Coreen Mao and Trial Attorney Michael C. Vasiliadis of the Tax Division who are prosecuting the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Defendant used mobile phones to lure two victims – including while on bail pending charges related to his arrest.

Baltimore, Maryland – Today, U.S. District Judge Richard D. Bennett sentenced Michael Vance Culpepper, 56, Walkersville, Maryland, to 10 years in federal prison, followed by 25 years of supervised release, for the enticement and coercion of a minor to engage in sexual activity.  Judge Bennett also ordered that upon his release from prison, Culpepper must register as a sex offender in the places where he resides, is employed, and/or is enrolled as a student, pursuant to the Sex Offender Registration and Notification Act (SORNA).

Erek L. Barron, U.S. Attorney for the District of Maryland; Inspector General Teri L. Donaldson,  United States Department of Energy’s Office of the Inspector General (DOE-OIG); Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI), Baltimore Field Office; Colonel Roland L. Butler, Jr., Superintendent, Maryland State Police (MSP); Paul Joey Kifer, Chief , Hagerstown Police Department (HPD); and State’s Attorney Anne Colt Leitess, Office of the State’s Attorney for Anne Arundel County, Maryland.

According to his guilty plea, in April and May 2023, Culpepper used mobile phones and online applications to persuade, induce, entice, and coerce two victims whom he believed to be 13- and 14-year-old females to engage in sexual activity. 

With the first victim — an undercover law enforcement officer posing as a 13-year-old girl — Culpepper used the internet and his phones to exchange sexually explicit messages and request sexually explicit images. Culpepper encouraged the victim to hide her conversations from her parents, writing, “you DEFINITELY need to delete these texts when we are done.” On May 8, 2023, Culpepper drove approximately 50 miles to meet the victim at a restaurant in Hanover, Maryland. When he arrived, he was arrested.

After Culpepper was released on May 9, 2023, with the condition that he have no further contact with minors, Culpepper initiated online contact with Jane Doe 1, a 14-year-old female.  Culpepper used the internet to entice Jane Doe 1 to engage in sexually explicit conversations.  Culpepper also sent Jane Doe 1 sexually explicit photos of himself and requested that Jane Doe 1 produce nude images of herself  to send  to him. Culpepper arranged a meeting with Jane Doe 1 for the purpose of engaging in unlawful sexual activity.  On May 28, 2023, Culpepper picked up Jane Doe 1 near her home, and then drove her around for approximately one hour before stopping at a park.  Culpepper used ice cream, money, a hotel room, and vaping devices to entice Jane Doe 1 to engage in sexual contact.  Jane Doe 1 refused, but following the meeting, Culpepper continued to use the internet to entice Jane Doe 1 to meet with him and engage in sex acts.

This case is 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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.        

U.S. Attorney Barron commended the DOE-OIG, HSI, ARMY CID, MSP, HPD, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Paul E. Budlow and Reema Sood, who prosecuted the case.

For more information  about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

# # #

Defendant and co-Conspirators submitted at least 150 fraudulent unemployment insurance applications.

Baltimore, Maryland – Tiia Woods, 46, Jacksonville, Florida, pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft in connection with an unemployment insurance scheme.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the guilty plea with Special Agent in Charge Troy W. Springer, National Capital Region, U.S. Department of Labor’s Office of Inspector General (DOL-OIG), and Special Agent in Charge William J. DelBagno, Federal Bureau of Investigation, Baltimore Field Office.

According to the guilty plea, beginning in June 2020 through approximately May 2021, Woods and her co-conspirators submitted false and fraudulent Unemployment Insurance (UI) applications that contained the identity unsuspecting victims’ contact information, addresses, employment status, work history, occupation, and eligibility for benefits.

Woods’ fraud was facilitated by email and other internet communications when she applied for UI benefits, modified UI claims within the Maryland Department of Labor (MD-DOL) system, and checked the status of claims. In response, MD-DOL disbursed UI benefits via Bank of America (BOA) prepaid debit cards. Woods also engaged in ATM withdrawals, point-of-sale transactions, and other financial transactions, such as transfers to CashApp.

In total, Woods and her co-conspirators submitted at least 150 fraudulent applications in the names of purported claimants and identity theft victims. Through Woods’ actions, in the course of the conspiracy and scheme to defraud, the United States, MD-DOL, BOA, and multiple individuals lost at least $3,296,725. 

Through the CARES Act, small businesses are offered financial assistance — including forgivable loans for job retention and certain other expenses — through the Paycheck Protection Program, which is administered through the Small Business Administration (SBA). The SBA also offers an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations.  An EIDL advance does not have to be repaid, and small businesses can receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount is $10,000.

Financial assistance offered through the CARES Act also includes expanded eligibility for UI benefits and increased UI benefits through the Pandemic Unemployment Assistance Program (PUA), Federal Pandemic Unemployment Compensation (FPUC), and the Lost Wages Assistance Program (LWAP).

On Count 1, conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349, Woods faces a maximum of 20 years in prison followed by three years of supervised release. On Count 2, aggravated identity theft in violation of 18 U.S.C. § 1028A, Woods faces a minimum two-year consecutive prison term, followed by one year of supervised release. U.S. District Judge Julie R. Rubin has scheduled sentencing for March 26, 2025, at 10 a.m.

U.S. Attorney Barron commended the DOL-OIG and FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Evelyn Cusson and Harry Gruber, who are prosecuting the federal case. U.S. Attorney Barron also thanked Bank of America - Detection and Complex Investigations Fraud Rings and Analytics for their assistance with this matter.

The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. Strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors.  The strike forces are interagency law enforcement efforts that use prosecutor-led and data-analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.  Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Athena Services International, LLC and its Owner Also Agree to Pay More Than $1.6 Million to Resolve Related Allegations.

WASHINGTON – Herndon, Virginia-based contractor Paragon Systems Inc. (Paragon) has agreed to pay to the United States $52 million to settle allegations that the company violated the False Claims Act by knowingly causing purported small businesses that it controlled to fraudulently obtain small business set-aside contracts. The settlement further resolves allegations that Paragon violated the Anti-Kickback Act. Paragon is one of the Federal government’s largest providers of specialized security, fire and emergency response and mission support services, and the company provides security guards at federal buildings throughout the United States.

“This settlement sends a message that flagrant misuse of government contracts through kickback schemes will not be tolerated,” said U.S. Attorney Erek L. Barron for the District of Maryland. “The integrity of our contracting programs is essential, and we remain committed to rooting out fraud that compromises fair access and accountability.”

The settlement resolves allegations that Paragon, acting through former high-ranking corporate executives, knowingly engaged in a fraudulent scheme to use purported small businesses that it controlled to obtain U.S. Department of Homeland Security (DHS) set-aside contracts reserved for Woman-Owned Small Businesses (WOSBs), Service-Disabled Veteran Owned Small Businesses (SDVOSBs) and other small businesses. The former high-ranking Paragon officials who carried out this alleged scheme included the company’s President, Vice President of Business Development, Vice President of Operations, Compliance Manager and Contracts Manager. The United States contends the former Paragon executives engaged female relatives and friends to serve as figurehead owners of purported small businesses in order for those companies to obtain DHS set-aside contracts relating to the provision of security services at federal buildings, and that the Paragon-controlled companies then subcontracted substantially all of the work under the set-aside contracts to Paragon.

The settlement further resolves allegations that the purported small businesses surreptitiously paid substantial sums of money to the Paragon Executives in violation of the Anti-Kickback Act. In total, the United States contends that the purported small businesses controlled by Paragon made over 300 separate payments to the former Paragon executives, totaling more than $11 million, which they attempted to conceal as purported “consulting payments” made to various shell companies formed by the former executives.

One of the purported small businesses, Athena Services International LLC (ASI) and its joint venture with Paragon, Athena Joint Venture Services LLC (AJVS), along with their owner, Alisa Silverman, have collectively agreed to pay more than $1.6 million to resolve their liability in connection with the alleged small business contracting fraud scheme. The settlement further resolves allegations that ASI, through Silverman, improperly received a Paycheck Protection Program loan that SBA forgave in full based on false representations that ASI complied with all PPP rules. The settlement with ASI, AJVS and Silverman is based on their ability to pay. The United States has filed a complaint against another purported small business, Patronus Systems Inc. and its owner Mabel O’Quinn, for their role in the alleged misconduct.

As part of the settlements, Paragon, ASI, AJVS and Silverman have agreed to cooperate with the Department’s investigation of other parties and any related litigation.

“Those who fraudulently procure, or assist others to fraudulently procure, small business set-aside contracts will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible companies obtain contracts reserved for veteran owned or socially or economically disadvantaged businesses, they prevent the small business community from receiving the contracting opportunities that Congress intended.”

“This settlement is the largest civil recovery in over a decade by the Department of Homeland Security Office of Inspector General (DHS-OIG),” said Inspector General Joseph V. Cuffari Ph.D of DHS. “The settlement sends a clear message that the Federal Government will continue to investigate and prosecute fraud, waste, and abuse to protect small businesses owned by service-disabled veterans and other socially and economically disadvantaged individuals. I am grateful for the continued partnership with the Department of Justice and for the whistleblower who initiated the complaint.”

“Small Business Administration (SBA) programs must be preserved for truly small businesses,” said SBA General Counsel Therese Meers. “Fraud on SBA’s procurement programs deprives legitimate small businesses of important procurement opportunities, and fraud on the Paycheck Protection Program unconscionably undermines critical pandemic relief. The results in this matter reflect SBA’s and the government’s ongoing commitment to identifying and pursuing those who perpetrate such fraud.”

The settlements with Paragon, ASI, AJVS and Silverman resolve claims brought in a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The United States may intervene in the action, as it did in this case. The lawsuit is captioned United States ex rel. Pattison v. Paragon Systems Inc., et al., Case No. 21-3260 (DMD). As part of the settlement with Paragon, the whistleblower, Todd Pattison, will receive more than $9 million, and he will receive approximately $280,000 in connection with the settlement with ASI and Silverman.

This settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the District of Maryland, the Civil Division’s Fraud Section, and the Department of Homeland Security’s Office of the Inspector General.  U.S. Attorney Barron thanked Assistant U.S. Attorney Sarah Marquardt for the District of Maryland and Senior Trial Counsel Alicia J. Bentley of the Civil Division’s Commercial Litigation Branch, who handled the matter.

The claims resolved by the settlement are allegations only. There has been no determination of liability as to those claims.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – Did you know that in 2023, more than 343 million people were victims of a cybercrime? Today, the U.S. Attorney’s Office for the District of Maryland and the University of Maryland hosted a cybersecurity conference to arm business and public sector leaders with vital information to help combat this worldwide issue.

According to Forbes Advisor, in 2023, data breaches increased globally by 72 percent. In response to this alarming trend, cybersecurity experts from government and the private sector educated attendees about emerging threats; best practices; and effective collaboration between federal, state, and local agencies, the private sector, and law enforcement.

“Cybercrime threatens our national security, our public safety, and our financial security,” said 
U.S. Attorney Erek L. Barron. “While we work to investigate and prosecute the perpetrators of these crimes, law enforcement must also collaborate with the private sector to effectively prevent and disrupt cyber incidents before they happen. The thoughtful discussions inspired by this conference sets the stage for continued collaboration and partnership between the government, business, and public sectors to protect our critical infrastructure. Many thanks to University of Maryland President Darryll J. Pines and our partners at the University for their co-sponsorship of this important conference.” 

Conference panelists taught attendees how to identify threats and weaknesses, manage a cyber incident, and coordinate with law enforcement. The conference also served as an opportunity for participants to network and continue conversations about enhancing cybersecurity across all sectors of Maryland.

"At the University of Maryland, our students and faculty work across campus to develop and deploy technologies to address the grand challenges of our time. We also recognize the importance of protecting our communities from the growing threat of cybercrime that comes when technologies are used for the wrong reasons," said University of Maryland President Darryll J. Pines. "We are grateful for the opportunity provided by this conference to engage with business and government leaders to tackle these critical issues."

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/cybersecurity.

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Baltimore, Maryland – Jason Edmonds, age 45 of North East, Maryland was sentenced yesterday to 51 months in federal prison and 3 years of supervised release for conspiring to commit bribery at the Aberdeen Proving Ground. In addition, the Court ordered Edmonds to forfeit $111,794.83, which is equal to the value of the bribes he received.

The sentence was announced by Erek L. Barron U.S. Attorney for the District of Maryland, Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Mid-Atlantic Field Office, and Special Agent in Charge L. Scott Moreland of the Army Criminal Investigation Division. 

“Edmonds’ actions as a public official harmed government integrity.  Bribery spawns distrust of government and the work we do on behalf of the taxpayers, “said U.S. Attorney Barron.  “The sentence imposed today sends a clear message of intolerance to any public official who would abuse their position of trust for personal financial gain”.  

"Fair and free competition is essential to ensure taxpayer money is not wasted and to maintain the trust in our government contracts and programs," says FBI Baltimore Special Agent in Charge William J. DelBagno. "The FBI and our partners stand ready to root out fraudsters seeking to corrupt and falsely influence the process for their personal gain."

“Our government officials are entrusted to protect and ensure a fair procurement process. Edmond’s actions violated that trust.” said DCIS Special Agent in Charge Christopher Dillard. “DCIS is committed to working with our law enforcement partners to protect our tax dollars from fraud and corruption."

According to the guilty plea, Edmonds was employed by the United States Army as a Research Biologist at the U.S. Army Combat Capabilities Development Command (“CCDC”) Chemical Biological Center (“CB Center”) located at the Aberdeen Proving Ground (“APG”).  The CCDC CB Center was the nation’s principal research and development center for non-medical chemical and biological weapons defense.  The CB Center developed technology in the areas of detection, protection, and decontamination.  

From 2012 to 2019, Edmonds accepted cash and other financial benefits from John Conigliaro, the owner and CEO of EISCO, Inc. in exchange for favorable action on CB Center contracts.  For example, in July 2013, Edmonds directed a $300,000 CB Center project to EISCO.  Three months later, in October 2013, Conigliaro gave Edmonds $40,000 in cash so that Edmonds could purchase two rental real estate properties.  Once Edmonds purchased the rental properties, Conigliaro paid for thousands of dollars of renovations to the rental properties.

Relative to the cash exchange, Edmonds and Conigliaro executed a “Promissory Note,” which was subsequently amended by Edmonds on June 14, 2014.  In the amended “Promissory Note,” Edmonds credited himself $18,100 against the $40,000 in cash for past projects that Edmonds had directed to EISCO at the CB Center.  Edmonds also wrote that Conigliaro would provide him an additional $25,000 in exchange for future projects that Edmonds would direct to EISCO.

Between December 2016 and August 2017, Edmonds directed a series of government projects to EISCO in exchange for a stream of benefits from Conigliaro, including a kitchen remodel at Edmonds’s personal residence, the purchase of a granite countertop, a kitchen sink, and new siding to his home.

In June 2020, after federal agents attempted to interview Edmonds and Conigliaro, the co-conspirators met approximately three times to discuss the investigation.  During those meetings, Edmonds proposed that he and Conigliaro inform federal investigators that Edmonds had repaid Conigliaro with gold and baseball cards, knowing that it was false. At sentencing, the Court found that this behavior constituted obstruction of justice under U.S.S.G. § 3C1.1 and imposed a two-level enhancement.

U.S. Attorney Barron commended the FBI, the DCIS , and the Army Criminal Investigation Division for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Bijon A. Mostoufi, who is prosecuting the federal case, and Paralegal Specialist Joanna Huber.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – U.S. Attorney Erek L. Barron announced today that the Justice Department will monitor compliance with federal voting rights laws in Prince George’s County, Maryland for the Nov. 5 general election.

The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country.

The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include Justice Department personnel, who will contact state and local election officials as needed throughout Election Day.

The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.

On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931. [The U.S. Attorney’s Office will also be available to receive complaints on Election Day at NUMBER or ONLINE PORTAL WEB ADDRESS]

Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.

Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.

More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

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