District of Maryland

Baltimore, Maryland – Six defendants have been charged for their roles in schemes to rig bids, defraud the government and pay bribes and kickbacks in connection with the sale of IT products and services to federal government purchasers, which resulted in overcharges of millions of dollars to the U.S. government, including the Department of Defense (DoD).

On Oct. 9 and Oct. 16, a federal grand jury in Baltimore returned indictments against two additional defendants. Four other defendants were also charged. These are the first charges in the Justice Department’s ongoing investigation into IT manufacturers, distributors and resellers who sell products and services to government purchasers, including to the intelligence community.  

“This office and our partners will use all available resources to hold accountable those who would undermine and distort the government’s procurement of goods and services, especially those related to our cybersecurity infrastructure,” said U.S. Attorney Erek L. Barron for the District of Maryland.

“Antitrust crimes can undermine competition for products and services that are vital to our national security,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “When fraudsters siphon taxpayer funds, the Antitrust Division and its Procurement Collusion Strike Force (PCSF) partners across the government will hold accountable those who collude to subvert competition, line their pockets with federal procurement dollars and compromise the integrity of our intelligence community programs.”

“This investigation demonstrates the vital need to protect the DoD procurement process, particularly within the Intelligence Community,” said Special Agent in Charge Christopher Dillard of the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “The Defense Criminal Investigative Service is committed to identifying fraudsters who abuse public trust and enrich themselves through criminal schemes.”

“There is no place for fraudsters and crooks scheming to manipulate the government bidding process for personal gain,” said Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office. “The FBI remains steadfastly committed to identifying, investigating and bringing to justice those conspiring to enrich themselves by cheating taxpayers.”

“Investigating complex fraud schemes is a top priority of ours,” said National Security Agency Acting Inspector General Kevin Gerrity. “I commend our team, our law enforcement partners and the Justice Department for their work protecting the integrity of federal contracting.”

“Each part of the government must do its part to detect and prosecute instances of waste, fraud and abuse, and CIA’s Office of Inspector General was pleased to join its law enforcement partners in investigating this egregious case,” said CIA Inspector General Robin C. Ashton.

United States v. Victor Marquez

Victor M. Marquez, a Maryland resident and owner of two IT companies with significant government contracts, was charged in a four-count indictment with wire fraud conspiracy, wire fraud and major fraud against the United States for rigging bids and inflating the amount of money obtained from valuable IT contracts.

Antwann C.K. Rawls, an employee of one of Marquez’s companies, and Scott A. Reefe, an IT sales executive, have been charged for their respective roles in the conspiracy.

As alleged in the indictment, Marquez, Rawls, Reefe and their co-conspirators used their positions of trust to learn sensitive, confidential procurement information, including procurement budgets for large U.S. government IT contracts. The co-conspirators used that inside information to craft bids at artificially determined, non-competitive and non-independent prices, ensuring Marquez’s company would win the procurement.

According to court documents, the co-conspirators shared their bids in advance of submitting them to the government, with one co-conspirator emailing that he would submit a “high price third bid.” Marquez and his co-conspirators submitted their collusive bids despite knowing the government sought independent, competitive bids for the valuable contracts, and despite Marquez’s certification of independent bidding.

If convicted, Marquez faces maximum penalties of 20 years in prison for each conspiracy and wire fraud count and 10 years in prison for the major fraud charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

United States v. Breal L. Madison Jr.

Breal L. Madison Jr., a Maryland resident, was charged in a 13-count indictment with conspiracy, bribery of a public official, mail fraud and money laundering for orchestrating a years-long scheme to defraud his employer and the United States out of over $7 million in connection with the sale of IT products to various government agencies.

Brandon Scott Glisson, an IT contractor providing IT services to the U.S. government, and Glisson’s supervisor, Lawrence A. Eady, a former senior government employee, have also been charged for their respective roles in the scheme.

According to court documents, through multiple misrepresentations, Madison and his co-conspirators conspired to steal money from Madison’s employer and government agencies, illegally siphoning over $9 million in stolen proceeds to Madison’s shell company, Trident Technology Solutions, and another shell company. They used the money to purchase luxury items and to pay approximately $630,000 in bribes to Eady in exchange for Eady’s ensuring the purchase of additional products sold by Madison.

Madison used his ill-gotten gains to buy a Vanquish VQ58 yacht, 2020 Lamborghini Huracan and multiple other vehicles, all of which the United States seeks to forfeit in the indictment.

If convicted, Madison faces maximum penalties of five years in prison for the conspiracy count, 15 years in prison for each bribery count, 20 years in prison for each mail fraud count and 10 years for each money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The DCIS, the FBI Baltimore Field Office, CIA Office of Inspector General and NSA Office of Inspector General investigated the case.

Acting Assistant Chief Michael Sawers and Trial Attorneys Zachary Trotter and Elizabeth French of the Antitrust Division’s Washington Criminal Section and Assistant U.S. Attorneys Aaron S.J. Zelinsky, Sean M. Delaney and Darren Gardner for the District of Maryland are prosecuting the case.

Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.

An indictment is merely an allegation. 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.

View the Rawls information.

View the Eady information.

View Reefe information.

View the Glisson information.

View the Madison indictment.

View the Marquez indictment.

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Possessed more than 900 pills purporting to be Oxycodone Hydrochloride in his home, with the intent to distribute them. 

Greenbelt, Maryland – Today, the Honorable Lydia K. Griggsby sentenced Darnell Palmer, 23, Germantown, Maryland, to 84 months in federal prison, followed by three years of supervised release, for possession of a controlled substance with the intent to distribute and possession of a firearm and ammunition by a convicted felon.

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

According to the guilty plea, in April 2022, law enforcement received information that Palmer was distributing fentanyl in Montgomery County, Maryland.  Law Enforcement officers observed Palmer selling 10 round blue pills purporting to be Oxycodone Hydrochloride, and actually contained fentanyl, to an individual in front of Palmer’s residence.  On June 1, 2022, law enforcement executed a search warrant at Palmer’s residence. 

In Palmer’s bedroom, law enforcement located approximately 918 fentanyl pills (appearing as Oxycodone Hydrochloride ), distributed within several zip-top bags; a plastic bag containing three bags of marijuana and a black digital scale; a loaded Glock 27 handgun; four firearm magazines, including an empty Glock magazine; a clear magazine containing six rounds of ammunition; a loaded drum magazine; and a packaged Glock magazine; and approximately $3,611 in U.S. currency, among other items.  Palmer possessed the fentanyl pills with the intent to distribute them.  The 928 fentanyl pills recovered in the investigation weighed more than 100 grams.  The pills Palmer distributed, and that were seized from his bedroom, purported to be Oxycodone Hydrochloride in that they were small light blue pills stamped with “M” and “30” to match legitimate Oxycodone Hydrochloride 30 milligram pills when in fact, they contained fentanyl instead of Oxycodone Hydrochloride.

U.S. Attorney Barron commended the DEA and the Montgomery County Police Department for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Elizabeth Wright and Christopher Sarma, 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 – On October 28, 2024, U.S. District Judge Julie R. Rubin sentenced Larry Benner, age 39, of Baltimore, Maryland to 75 months prison, followed by three years of supervised release, for possession of a firearm and ammunition by a convicted felon.

The sentence 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”), and Commissioner Richard Worley of the Baltimore Police Department (“BPD”).

According to the guilty plea, BPD officers were monitoring Citiwatch cameras in Baltimore city on January 21, 2023 when they observed Benner and two codefendants engaged in drug activity.  BPD officers arrived on scene and placed the defendants under arrest.  Officers recovered various controlled dangerous substances from Benner, including approximately 87 grams of cocaine, 5 grams of fentanyl, and quantities of heroin, Alprazolam, and Buprenorphine.  Officers also recovered from Benner a Smith & Wesson 9mm Luger pistol loaded with 15 rounds of 9mm ammunition and an additional drum magazine loaded with 35 live 9mm cartridges.

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 Erek L. Barron commended the ATF and BPD for their work in the investigation.  Mr. Barron thanked former Special Assistant U.S. Attorney Liane Kozik and Assistant U.S. Attorney James G. O’Donohue III, 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, Erek L. Barron, U.S. Attorney for the District of Maryland, and Special Agent in Charge,  Jarod Forget, U.S. Drug Enforcement Administration’s Washington Division, announced that their agencies have formed the Maryland Fatal Fentanyl Overdose Task Force (“MFFOTF”).

The alarming rate of overdoses in Maryland has continued, resulting in more than 2,000 deaths from July 2023 through June 2024 – more than 1,600 were fentanyl related.  

“This problem demands a reinvigorated, unified response throughout Maryland,” said Erek L. Barron, U.S. Attorney for the District of Maryland. “Devastated communities and families are urging us to do more, especially more education and intervention to prevent the needless loss of life.”

According to the DEA, fentanyl has reached every corner of Maryland.  It is cheaper and more readily available than ever before. 

The Maryland Fatal Fentanyl Overdose Task Force is a joint local, state, and federal task force consisting of sworn law-enforcement members from agencies throughout Maryland.  Led and coordinated by DEA’s Washington Division and the U.S. Attorney’s Office for the District of Maryland, task force participants remain with their departments conducting their normal duties and will serve on the task force as a collateral duty when needed.  The goal of task force is to raise awareness and increase the number of prosecutable overdose-death cases through proper evidence collection and preservation, while also conducting community outreach to educate vulnerable communities throughout Maryland. 

“The threat to our national security posed by illicit drugs extends beyond traditional challenges and directly impacts public health and safety. Every day, the DEA — alongside its local, state, and federal partners — works to preserve the safety and health of our citizens,” said Special Agent in Charge Forget. “As you can see, we recognize that it is essential to direct our resources to the most affected communities. This initiative is a clear example of our collective response to disrupt and dismantle criminal drug trafficking networks, both domestic and abroad, and provide training, operational resources, and engage directly with the communities to talk about drug prevention, fentanyl, and how only ‘One Pill Can Kill’.”

As of October 2024, MFFOTF is comprised of 17 state, local, and federal law-enforcement offices:

• Anne Arundel County Police Department
• Baltimore Police Department
• Baltimore County Police Department
• Calvert County Sheriff’s Office
• Cecil County Sheriff’s Office
• Drug Enforcement Administration
• Frederick City Police Department
• Hagerstown Police Department
• Maryland Department of Public Safety and Correctional Services
• Montgomery County Police Department
• Ocean City Police Department
• Queen Anne’s County Office of the Sheriff
• St. Mary’s County Sheriff’s Office
• U.S. Attorney’s Office for the District of Maryland
• Washington County Sheriff’s Department
• Wicomico County Sheriff’s Department
• Washington/Baltimore High Intensity Drug Trafficking Area Program

As part of this work, the U.S. Attorney’s Office and the DEA created the following: a Public Service Announcement, a training for first-responding law enforcement arriving to an overdose crime scene, and a training for community education and outreach.  As part of community outreach efforts, members of the task force have already delivered presentations on the dangers of fentanyl to more than 200 senior citizens across the state, including in Salisbury, Elkton, Hagerstown, Denton, and Prince Frederick.

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 –Erek L. Barron, U.S. Attorney for the District of Maryland, announced today that Assistant United States Attorneys (AUSAs) Bijon A. Mostoufi and Joseph Wenner will lead the efforts of his Office that support the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024 general election.  AUSAs Mostoufi and Wenner have been appointed to serve as the District Election Officers (DEOs) for the District of Maryland, and in that capacity, they are responsible for overseeing the District’s handling of election day complaints involving voting rights concerns, threats of violence to election officials or staff, and election fraud, all in consultation with the Justice Department in Washington, D.C.

The Department of Justice plays an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud, wherever they may occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they must be able to vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English). 
 

U.S. Attorney Barron stated: “Voting is a hallmark of our democracy and an essential right in our State and in this country. My Office is committed to protecting that right and to pursue and prosecute those who discourage or interfere with the exercise of it.  I am proud to lead the District of Maryland’s efforts to support the Justice Department’s nationwide Election Day Program.”  In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs Mostoufi and Wenner will be on duty in Maryland while the polls are open.  AUSAs Mostoufi and Wenner can be reached at 301-344-4433. Any allegation of election fraud or voting rights violations will be reviewed in consultation with state and federal authorities where appropriate, and we will pursue any case that warrants prosecution.”         

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public at 410-265-8080.

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

Protecting the right to vote, prosecuting election fraud, and securing our elections are all essential to maintaining the confidence of all Americans in our democratic system of government. The department encourages anyone with information regarding concerns in these subject areas to contact the appropriate authorities.

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 October 23, 2024, Tomeka Glenn, a/k/a “Tomeka Harris” and “Tomeka Davis,” age 47, of Windsor Mill, Maryland, was sentenced by United States District Judge Richard D. Bennett to 65 months’ imprisonment and 3 years of supervised release in connection with her conviction on conspiracy to commit wire fraud relating to the submission of millions of dollars in fraudulent COVID-19 CARES Act Paycheck Protection Program and Economic Injury Disaster Loan applications.  Judge Bennett also directed Glenn to pay restitution in the amount of $3,016,275.62.

Glenn’s co-defendant Kevin Davis, age 43, also of Windsor Mill, Maryland, pleaded guilty on January 25, 2024 to being a felon in possession of a firearm and ammunition.  Judge Bennett on May 22, 2024 sentenced him to 24 months’ imprisonment.

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 (“FBI”) Baltimore Field Office; and Chief Robert McCullough of the Baltimore County Police Department.

Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program, administered through the Small Business Administration (“SBA”).  The SBA also offered an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations.  An EIDL advance did not have to be repaid, and small businesses could receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount was $10,000.

According to Glenn’s plea agreement, beginning in June 2020 and continuing through March 2021,  Glenn and various co-conspirators prepared numerous false and fraudulent EIDL and PPP loan applications for various businesses (including some that did not exist in any legitimate capacity)  that included false information concerning, among other things, number of employees, monthly payroll costs, and revenue.  The PPP applications also routinely included false and fraudulent Internal Revenue Service (“IRS”) tax forms and bank statements, which were submitted by Glenn to substantiate the false representations made in the applications. 

Glenn admitted that she received kickback payments from the loan borrowers in exchange for her assistance in connection with the submission of fraudulent PPP and EIDL applications, ultimately receiving more than $400,000 in kickbacks in connection with the scheme.  These kickbacks typically amounted to 10% to 20% of the loan amount.  In total, the kickback scheme resulted in the disbursement of at least $2,715,649.12 in fraudulently obtained PPP and EIDL funds in connection with 23 fraudulent PPP and EIDL loans.

According to Glenn’s plea agreement, Glenn and Davis, received $300,726.50 in PPP/EIDL funds for various entities that they controlled, and Glenn attempted to obtain $601,511.20 in additional fraudulent PPP and EIDL funds too. 

Glenn used the fraudulently obtained funds to pay for a luxury vacation at a resort in Jamaica, to purchase a 2021 Mercedes-Benz S580 sedan valued at $148,171.60, to buy thousands of dollars in luxury jewelry, as well as numerous other luxury goods, including items from Luis Vuitton, Neiman Marcus, Dior, Cartier, Gucci, Chanel, and Hermes.

At the time of her scheme, neither Glenn nor Davis had any legitimate source of income, and in May 2020, each applied for unemployment insurance benefits in the State of Maryland.  In addition, as detailed in Davis and Glenn’s plea agreements, on January 6, 2023, law enforcement executed a federal search warrant at their residence.  Davis and Glenn were present at the residence at the time of the search and were arrested in connection with the fraudulent COVID-19 CARES Act loans.  According to Davis’s plea agreement, during the execution of the search warrant, law enforcement found and seized four firearms loaded with ammunition—a 9mm firearm, and three .40 caliber firearms.  Later investigation revealed that  one of the .40 caliber firearms had earlier been reported stolen by its owner.  As further detailed in Davis’s plea, the firearms were hidden by Davis in the air ducts of the residence: two firearms were hidden in the main bedroom air duct where Davis slept and kept his personal effects; the other two firearms were in the air duct of the bathroom closets to the main bedroom.  Moreover, two of the firearms were further stuffed in socks in an attempt to hide them.  Davis admitted that he possessed and secreted the firearms in the air ducts of his home (and in the socks) in an attempt to conceal them from law enforcement after learning that federal agents had a warrant to search his home.  As admitted to at his plea, Davis’s concealment of the firearms constitutes attempted obstruction of the administration of justice with respect to the investigation.  Each of the four firearms recovered from Davis’s home on January 6, 2023 were later found to have his DNA on them.  A later review of Davis’s iCloud account revealed the existence of, among other things, a series of videos depicting Davis handling firearms, including a shotgun and an assault rifle.  Davis knew that his previous felony conviction prohibited him from possessing firearms or ammunition.

As part of their plea agreements, Glenn and Davis will be required to forfeit their interest in any assets derived from or obtained by them as a result of, or used to facilitate the commission of, their illegal activities. Specifically, Glenn is required to forfeit a money judgment in the amount of at least $700,726.50; the 2021 Mercedes-Benz; cash in bank accounts she controlled that were held in the names of business entities; and jewelry, including her 3.03 carat yellow diamond engagement ring, Rolex, Cartier and Breitling watches, and a Diamond Miami Cuban Link Chain with 31.5 carats of VS1 diamonds.  Davis must forfeit the firearms and ammunition.

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 FBI, the SBA-OIG, and the Baltimore County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the case.  He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber and Paralegal Specialist Juliette 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.

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Greenbelt, Maryland – After a 9-day trial, a federal jury returned verdicts against Thaddeus Lamont Wills, age 51, and Keionta Shawn Hagens, age 44, both of Waldorf, Maryland, of interference with interstate commerce by robbery, conspiracy to interfere with interstate commerce by robbery, using, carrying, and brandishing a firearm during a crime of violence, carjacking, and of murder.

The conviction 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; Chief Malik Aziz of the Prince George’s County Police Department; Chief Troy D. Berry of the Charles County Sheriff’s Office; and Chief Peter Newsham of the Prince William County, Virginia Police Department.

Evidence presented at trial established that on November 12, 2020, conspirators, including Wills and Hagens, while armed with firearms, robbed an employee of Business-1 of cash and merchandise, and a customer of Business-1 of personal property.  To facilitate their escape from Business-1, conspirators, including Wills and Hagens, forcefully, and using firearms, took a 2016 Dodge Ram pickup truck from the victim customer.

Trial evidence further established that on or about November 17, 2020, conspirators, including Wills and Hagens used a stolen 2014 Ford F-150 pickup truck to drive to Business-2 for the purpose of robbing Business-2.  Wills and Hagens thereafter, while using at least one firearm, robbed an employee of Business-2 of cash and merchandise as well as a customer of personal property.  During the robbery, Wills and Hagens zip tied the hands of the employee.  In addition, Between November 12, 2020, and November 26, 2020, conspirators, including Wills and Hagens, stored and concealed the stolen Dodge Ram pickup and stolen Ford F-150 pickup in the area of Brandywine, Maryland.  

On January 6, 2021, in Waldorf, Maryland, conspirators, including Wills, while armed with firearms, forcefully took a 2008 Honda Pilot Sport Utility Vehicle from a victim. On January 6 and January 7, 2021, conspirators, including Wills, used the 2008 Honda Pilot to travel from Maryland into Virginia.  Then, on January 7, 2021, in Woodbridge, Virginia, conspirators, including Wills, while armed with firearms, robbed customers, agents and employees of Business-3 of cash, merchandise, and personal property.  After driving the 2008 Honda Pilot back from Virginia to Maryland on January 7, 2021, Wills and a co-conspirator burned the vehicle in the area of Brandywine, Maryland. 

Finally, on January 18, 2021, conspirators, including Wills and Hagens, robbed Victim-8, the owner of Business-4, of merchandise while using at least two firearms, and shot and killed the business owner during the robbery.  In order to escape after the robbery and murder of the victim, Wills used a firearm to forcefully take a 2019 Lexus RX350 Sport Utility Vehicle from a separate victim.

Wills faces a maximum sentence of life in federal prison for the murder of victim-8 during the robbery on January 18, 2021; a mandatory minimum sentence of 7 years and a maximum sentence of life for each count of using, carrying, brandishing a firearm during the robbery on November 17, 2020, the carjacking on January 6, 2021, and the carjacking on January 18, 2021. Wills faces a maximum sentence of 20 years in federal prison each for conspiracy to interfere with interstate commerce by robbery and interference with interstate commerce by robbery related to the robberies on November 17, 2020 and January 18, 2021, as well as a maximum sentence of 15 years in prison for each carjacking.

Hagens faces a mandatory minimum sentence of 5 years and a maximum sentence of life in federal prison for using and carrying a firearm during the robbery on November 17, 2020.  Hagens also faces a maximum sentence of 20 years each for conspiracy to interfere with interstate commerce by robbery and interference with interstate commerce by robbery for the robberies on November 17, 2020 and January 18, 2021.

U.S. District Judge Theodore D. Chuang has scheduled sentencing for Wills on February 7, 2024 at 9:30 a.m. and for Hagens on February 14, 2024 at 9:30 am.  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.

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, PGPD, Charles County Sheriff’s Office, and the Prince William County, Virginia Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys William Moomau and Patrick D. Kibbe, 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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The Justice Department announced today that it will monitor compliance with federal voting rights laws in Prince George’s County, Maryland, during the early voting period and on Election Day.  

The Justice Department enforces the federal voting rights laws that protect the rights of all 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. In addition, the department also deploys federal observers from the Office of Personnel Management, where authorized by federal court order.

The Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, 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, Civil Rights Act and Uniformed and Overseas Citizens Absentee Voting Act. Pursuant to the Voting Rights Act, Prince George’s County must provide voting materials and assistance in both English and Spanish.

Complaints about any possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s internet reporting portal at www.civilrights.justice.gov or by telephone at 1-800-253-3931. More information about voting and elections, including guidance documents for language minority voters 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.

El Departamento de Justicia anunció hoy que monitoreará el cumplimiento con las leyes federales electorales en Prince George’s County, Maryland, durante el período de votación temprana y en el día de las elecciones.

El Departamento de Justicia hace cumplir las leyes federales de derechos electorales que protegen el derecho de acceso a las urnas de todos los ciudadanos.  La División envía personal del departamento periódicamente a monitorear elecciones en comunidades a través de todo el país.  Además, la División envía observadores federales de la Oficina de Administración de Personal de EE. UU. según autorizado por una orden judicial federal.

La Sección de Votación de la División de Derechos Civiles, junto con las Oficinas de los Fiscales Federales, vela por el cumplimiento de las leyes federales civiles que protegen el derecho al voto, incluyendo la Ley del Derecho al Voto, la Ley Nacional de Inscripción de Votantes, la Ley Ayudemos a Estados Unidos a Votar, la Ley de Derechos Civiles y la Ley de Votación para los Uniformados y los Ciudadanos en el Extranjero. De acuerdo con la Ley del Derecho al Voto, Prince George’s County debe proporcionar materiales y asistencia electoral tanto en inglés como en español.

Denuncias sobre posibles vulneraciones a las leyes electorales federales pueden presentarse mediate el formulario en línea de la División de Derechos Civiles en https://civilrights.justice.gov/ o por teléfono al (800) 253-3931. Información adicional sobre la votación y las elecciones, incluyendo las Protecciones electorales para los ciudadanos con dominio limitado del inglés Sección 203 de la Ley de Derecho al Voto y otros recursos, está disponible en www.justice.gov/crt/voting/. Aprenda más sobre la Ley del Derecho al Voto y otras leyes federales electorales en www.justice.gov/crt/voting-section.

Baltimore, Maryland – After a four-day jury trial, a federal jury has convicted Igor Yasinov, age 35, of Baltimore, Maryland, of four counts of Assaulting, Resisting, or Impeding Certain Officers or Employees, Inflicting Bodily Injury.

The conviction was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Clinton J. Fuchs, United States Marshal for the District of Maryland; and Carolyn J. Scruggs, Secretary of the Maryland Department of Public Safety and Correctional Services.

According to the evidence presented at his trial, on November 16, 2021, Igor Yasinov assaulted multiple members of the correctional staff at the Chesapeake Detention Facility (“CDF”) causing several injuries.  CDF is a pretrial detention facility located in Baltimore, Maryland, that, in November 2021, exclusively housed federal inmates awaiting the disposition of criminal cases in the District of Maryland, pursuant to an intergovernmental agreement between the United States Marshal Service (“USMS”) and the Maryland Department of Public Safety and Correctional Services (“DPSCS”).  DPSCS employs correctional officers to effectuate the goals and directives of USMS.

The assaults began after Yasinov broke a control center window within the facility with a broom stick and sustained minor injuries.  Yasinov was transported to the medical unit for treatment by members of the correctional staff, during which time he made threats of violence to the escorting correctional officers.  After receiving medical treatment, Yasinov was transported to a segregation unit.  Though initially cooperative, Yasinov became irate and refused the orders of the correctional officers when he learned that he was not returning to his original housing unit.

Yasinov refused to lock into his cell.  As correctional officers attempted to escort him into the cell, he began to fight them and swept the leg of one correctional officer, causing her and other officers to fall to the ground.  During that time, correctional officers were able to apply leg irons to Yasinov’s legs to prevent further attacks and carried him to his cell.  While in the cell, Yasinov continued to fight the officers.  Eventually, Yasinov relented, and allowed officers to remove the leg irons.  They ordered Yasinov to face the cell wall to allow the group to exit the cell individually.  Yasinov was told to remain facing the wall until all officers had exited and the door to the cell was closed.

As the last officer attempted to exit the door, Yasinov charged the group, slamming his body into them. Yasinov continued to flail on the floor, kicking officers and attempting to strike them with his hands.  As a result of Yasinov’s actions, several of the officers sustained bodily injuries, including one officer sustaining a fractured tibia, and three other officers sustaining injuries to their heads, necks, backs, and limbs.

Yasinov faces a maximum sentence of 10 years in federal prison for each count of Assaulting, Resisting, or Impeding Certain Officers or Employees, Inflicting Bodily Injury.  Actual sentences for federal crimes are typically less than the maximum penalties and a federal district judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.  United States District Judge Julie R. Rubin has scheduled sentencing for February 20, 2025, at 11 a.m.

U.S. Attorney Barron commended USMS for their work in the investigation.  Mr. Barron thanked Assistant United States Attorney Michael Aubin and Special Assistant United States Attorney Jacob Gordin, 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 https://www.justice.gov/usao-md/community-outreach.

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Washington – The Justice Department announced today that Grace Ocean Private Limited and Synergy Marine Private Limited, the Singaporean corporations that owned and operated the Motor Vessel DALI, have agreed to pay $101,980,000 to resolve a civil claim brought by the United States for costs borne in responding to the catastrophic collapse of the Francis Scott Key Bridge.  

The settlement resolves the United States’ claims for civil damages for $103,078,056 under the Rivers and Harbors Act, Oil Pollution Act, and general maritime law. The settlement monies will go to the U.S. Treasury and to the budgets of several federal agencies directly affected by the allision or involved in the response.

“Nearly seven months after one of the worst transportation disasters in recent memory, which claimed six lives and caused untold damage, we have reached an important milestone with today’s settlement,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “Thanks to the hard work of the Justice Department attorneys since day one of this disaster, we were able to secure this early settlement of our claim, just over one month into litigation. This resolution ensures that the costs of the federal government’s cleanup efforts in the Fort McHenry Channel are borne by Grace Ocean and Synergy and not the American taxpayer.”

“This is a tremendous outcome that fully compensates the United States for the costs it incurred in responding to this disaster and holds the owner and operator of the DALI accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The prompt resolution of this matter also avoids the expense associated with litigating this complex case for potentially years.”

In the early morning hours of March 26, the Motor Vessel DALI left the Port of Baltimore bound for Sri Lanka. While navigating through the Fort McHenry Channel, the vessel lost power, regained power, and then lost power again before striking the bridge. The bridge collapsed and plunged into the water below, tragically killing six people. In addition to this heartbreaking loss of life, the wreck of the DALI and the remains of the bridge were left to obstruct the navigable channel, bringing all shipping into and out of the Port of Baltimore to a standstill. The loss of the bridge also severed a critical highway in the transportation infrastructure and blocked a key artery for local commuters.

The United States led the response efforts of dozens of federal, state, and local agencies to remove about 50,000 tons of steel, concrete, and asphalt from the channel and from the DALI itself. While removal operations were underway, the United States set up temporary channels to start relieving the bottleneck at the port and mitigate some of the economic devastation caused by the DALI. The Fort McHenry Channel was cleared by June 10, and the Port of Baltimore was once again open for commercial navigation.

On Sept. 18, the Justice Department filed a civil lawsuit in the U.S. District Court for the District of Maryland, seeking over $100 million in damages from Grace Ocean and Synergy. The Department’s claim was part of a legal action that the vessel companies filed shortly after the tragedy, in which they seek exoneration or limitation of their liability to approximately $43.7 million. Today’s settlement is in addition to $97,294 recently paid by Grace Ocean to the Coast Guard National Pollution Fund Center for costs incurred to abate the threat of oil pollution arising from the incident.  

The settlement does not include any damages for the reconstruction of the Francis Scott Key Bridge. The State of Maryland built, owned, maintained, and operated the bridge, and attorneys on the state’s behalf filed their own claim for those damages. Pursuant to the governing regulation, funds recovered by the State of Maryland for reconstruction of the bridge will be used to reduce the project costs paid for in the first instance by federal tax dollars.

The resolution of the civil matter was handled by attorneys from the Civil Division’s Aviation, Space & Admiralty Litigation Section and the U.S. Attorney’s Office for the District of Maryland, Baltimore Division.

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Baltimore, Maryland – U.S. District Court Judge Matthew J. Maddox sentenced Eugene Edward Golden, age 38, of Baltimore, Maryland, to 45 years in federal prison and lifetime supervised release, for conspiracy to commit sexual exploitation of a child and for two counts of sexual exploitation of a child in order to produce and transmit a visual depiction of the sexually explicit conduct. 

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, and Special Agent in Charge Michael S. McCarthy of Homeland Security Investigations (“HSI”) Baltimore; Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (MSP); Chief Gregory Der, Howard County Police Department; and Commissioner Richard Worley, Baltimore Police Department.

According to his guilty plea, beginning in at least 2019, Golden located several females, specifically six co-defendants — using dating or prostitution websites — and communicated with each of them individually using texts, messaging applications, and social media.  Golden requested for each woman to produce sexually explicit videos and images of children, citing his specific fetishes and directed them on what to do and say.  The defendant then had the women send him the files in exchange for financial compensation.

Golden’s co-defendants agreed to his requests and produced and distributed sexually explicit images and videos of at least 12 minor victims, using their cellphones.  The victims ranged in age from approximately one year old to 13 years old. Images and videos documenting the sexual abuse were found in Golden’s online accounts.  Golden produced and received well over 100 images and videos documenting the sexual abuse of children at his request.  The defendant had also amassed a large collection of commercially available child pornography.

In addition to Golden’s co-defendants, HSI and MSP were able to identify more females who produced and distributed sexually explicit images and videos of minors in their care and/or custody, resulting in two more separate child exploitation cases and the identification and rescue of two minor victims.  The victims were approximately one to four years old.

As detailed in Golden’s plea agreement, in accordance with the Sex Offender Registration and Notification Act (“SORNA”), upon his release from prison, Golden will be required to register as a sex offender in the places where he resides, is an employee, and/or is a student.

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 HSI Baltimore, the MSP-led Internet Crimes Against Children Task Force, the Baltimore Police Department, and the Howard County Police Department for their work in the investigation.  Valuable assistance was provided by the U.S. Attorney’s Offices in the Districts of Mississippi and Tennessee; and HSI in Jackson, MS, and Memphis.  Mr. Barron thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – U.S. District Chief Judge George Levi Russell, III, sentenced Maimouna Bagayoki, age 54, of Owings Mills, Maryland, to 42 months in federal prison, followed by two years of supervised release, and $60,569.87 restitution, for Wire Fraud and Receipt of Stolen Motor Vehicles bound for illegal shipment to West Africa.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) Baltimore; Port of Baltimore Director Adam Rottman of U.S. Customs and Border Protection; Baltimore Police Department Commissioner Richard Worley; and Baltimore County Police Department Chief Robert McCullough.

According to the plea agreement, in 2021, Bagayoko worked with others to bring stolen luxury vehicles into Maryland where they would be loaded onto large cargo shipping containers and taken to the Port of Baltimore.  Then, using fraudulent documentation and paperwork, Bagayoko concealed the containers’ contents – Bagayoko emailed and texted the fake documents to the shipping company.  The shipping containers were bound for West Africa.  The value of the vehicles that were recovered was over $650,000, most of which were stolen from the homes of victims living in New Jersey and New York. 

United States Attorney Erek L. Barron commended the HSI, CBP, Baltimore City Police and Baltimore County Police for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn, 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 – U.S. District Judge Stephanie A. Gallagher sentenced Ronald White, age 56, of Pikesville, Maryland, to eleven years in federal prison, followed by 5 years of supervised release, for a drug conspiracy and distribution charges related to his supplying cocaine, crack cocaine and fentanyl to drug traffickers operating in West and Northwest Baltimore as well as money laundering charges.

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration and Commissioner Richard Worley of the Baltimore Police Department.

According to his guilty plea, in April 2020, investigators from the Drug Enforcement Administration began a drug investigation in West and Northwest Baltimore.  During the investigation, White was identified as a source of supply to members of the Drug Trafficking Organization (DTO) and was believed to also be involved in the laundering of drug proceeds obtained from the distribution of controlled dangerous substances.  Specifically, in March and April 2021, White engaged in at least seven large cash transactions.  These transactions included over $1,346,000 in drug proceeds that were to be laundered.

As part of his guilty plea, White admitted that he maintained stash houses to store his drug proceeds totaling approximately $549,000.  From one of the stash locations investigators recovered equipment used to package narcotics including: a hydraulic kilogram press, digital scales, and a powder commonly used as a cutting agent for heroin and fentanyl.  Investigators also recovered the following narcotics: 242 grams of cocaine base, 43 grams of cocaine, 3724 grams of cocaine separately packaged, and 3975 grams of fentanyl.  White’s vehicle was searched and officers recovered an additional 150 grams of fentanyl.

White admitted that it was reasonably foreseeable and within the scope of the conspiracy that he or other members of the conspiracy would distribute at least 1200 grams but less than 4 kilograms grams of fentanyl, as well as quantities of cocaine, cocaine base, and heroin in furtherance of the conspiracy.

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 case 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. The prosecution is being led by the Office of the United States Attorney for the District of Maryland.

U.S. Attorney Barron commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys LaRai Everett, James O’Donohue and Stanton Lawyer 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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Baltimore, Maryland – U.S. District Judge Brendan A. Hurson sentenced William Rich, age 44, of Windsor Mill, Maryland, to one year of home confinement, followed by two years of  supervised release, for wire fraud and theft of government property.

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, and Kim R. Lampkins, Special Agent in Charge, Mid Atlantic Field Office, United States Department of Veterans Affairs (“VA”).

In June 2024, at the conclusion of a four-day trial, a federal jury returned a guilty verdict  convicting Rich of wire fraud and theft of government property.   He was charged with  fraudulently obtaining more than $750,000 in veteran disability benefits by falsely claiming that he was paralyzed.  

Evidence at trial established Rich intentionally misrepresented his physical condition during VA disability compensation and pension exams and in other communications with the VA in  pursuit of VA disability benefits.  Rich claimed that he was paralyzed and unable to walk.  As a result, Rich received more than $750,000 in VA benefits that he was not entitled to including special monthly compensation, caregiver-assistance compensation, and medical equipment.

Rich served in the United States Army from September 1998 to February 2007, after sustaining injuries on August 23, 2005, during a bombing in Baqubah, Iraq.  Rich’s injuries included  temporary paralysis. Rich then applied to the VA’s disability compensation program, and according to the evidence presented at trial, approximately six weeks after Rich’s injuries, he made substantial progress toward recovery and was no longer paralyzed.  A subsequent medical report, indicated that Rich was able to perform certain essential daily activities with 
“complete independence” or “modified independence.” However, Rich was granted permanent disability from VA largely based on an exam conducted on October 11, 2007, where he  reported paralysis in his lower extremities and that he was confined to a wheelchair.

In 2018, the VA Office of Inspector General (OIG) launched a proactive investigation of  disabled veteran files and learned that Rich’s conduct was inconsistent with his purported physical condition.  For more than two years, VA OIG Special Agents (SAs) investigated Rich, including conducting video surveillance.  Footage presented at trial showed Rich walking,  going up and down stairs, entering and exiting vehicles, lifting, bending, and carrying items—all without visible limitation or assistance of a medical device, including a wheelchair.

Throughout the course of their surveillance, the only time agents observed Rich using a  wheelchair was when he attended VA medical appointments.  Between March 2019 and February 2021, VA OIG investigators observed Rich standing and loading his wheelchair into the trunk of his car before VA medical appointments, using a wheelchair at VA appointments, wheeling himself from a VA medical appointment to his car, and then standing to load his wheelchair back into his car.  A review of Rich’s publicly available social media accounts  revealed multiple images of Rich standing, with no indication that he was wheelchair bound, including an image Rich took of himself standing in front of a mirror at a gym, as well as videos of Rich lifting weights.

In addition to receiving more than $8,000 in monthly disability benefits from the VA, Rich also received grants from the VA for “Automobile and Adaptive Equipment,” and “Specially Adapted Housing.” Rich used funds intended for the purchase of a specially adapted vehicle to buy a BMW 645ci luxury sports coupe.

U.S. Attorney Barron thanked Special Assistant U.S. Attorney Kertisha Dixon and Assistant U.S. Attorney Colleen McGuinn, who prosecuted the case.  Mr. Barron also thanked former lead Special Agent Brian Maddox, currently a Special Agent with the Defense Criminal Investigative Service, and Patrick Prewitt, Senior Special Agent and National Fleet Manager, with the United States Department of Veterans Affairs, Office of Inspector General.

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 – Michael Sam Teekaye, Jr., age 21, of Hanover, Maryland has been charged by criminal complaint with attempting to provide material support to a designated foreign terrorist organization, in violation of 18 U.S.C. § 2339B.  The defendant has been detained since his arrest on October 14, 2024, and had an initial appearance before Magistrate Judge Erin Aslan on October 15, 2024.

The charges were announced by Erek L. Barron, U.S. Attorney for the District of Maryland and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office.

According to the affidavit in support of the complaint, between March and April 2023, Teekaye had multiple conversations with an Undercover Officer (“UCO”) in which he told the UCO that he wanted to travel to Africa to join and fight for ISIS.  Teekaye also told the UCO that his “plan B” was to carry out an attack in the United States against people who support Israel.  On three occasions in May and June 2024, Teekaye purchased ammunition and range time at a shooting range in Severn, Maryland, which he later told the UCO was partly in order to “train.”  In July 2024, Teekaye attempted to purchase a Kalashnikov K-9 9mm rifle, but the purchase was denied because Teekaye was on probation in a state criminal case.

In conversations with the UCO between August and October 2024, Teekaye told the UCO that he was in contact with a Somali ISIS fighter regarding his plans to travel to Somalia to join ISIS.  Teekaye explained that he would fly first to Turkey, then travel to Ethiopia and cross the border into Somalia.  Teekaye sent the UCO screenshots of an Ethiopian e-Visa he had obtained from the ISIS fighter. On October 4, 2024, Teekaye told the UCO that he received airline tickets from the ISIS fighter.  He also sent the UCO screenshots of his travel itinerary showing that he would depart from Baltimore Washington International Airport (BWI) on October 14, 2024 and fly to Istanbul, Turkey with a layover in London.

On October 10, 2024, Teekaye sent the UCO a photo of himself wearing a black mask and holding a large machete, along with the caption “Abdullah the islamophobe slayer.”  On October 11, 2024, the UCO asked whether Teekaye was “sure” he wanted to join ISIS.  Teekaye responded, “I am sure I did a lot of research and had to accept something’s [sic] that they are the only group that has the most true and sincere intentions.”

On October 14, 2024, FBI agents arrested Teekaye at BWI after he had checked in for his flight and proceeded through security. Following his arrest, Teekaye made the following unprovoked statements, among others: “I’ll just get out in 20 years and do something here.  Okay? Okay?  It will never stop.  Jihad will never stop. . . . I’ll be like 40 when I get out, then I’ll just do it.  I don’t care.  It will never stop.  Jihad will never stop.  I’ll come and I’ll kill your soldiers.  I’ll kill you, and I’ll kill . . . .”  While making these statements, Teekaye began kicking one of the arresting agents.

A complaint is not a finding of guilt.  All defendants charged by complaint are presumed innocent unless and until proven guilty at some later criminal proceeding.  If convicted, Teekaye faces a maximum sentence of 20 years in federal prison for attempting to provide material support to a designated foreign terrorist organization.  A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. 

U.S. Attorney Barron commended the FBI’s Baltimore Field Office for its outstanding work in the investigation and praised the FBI’s Joint Terrorism Task Force along with the FBI’s Newark and Richmond Field Offices, and the New York City Police Department (NYPD), for their valuable assistance.  Mr. Barron would like to thank the NYPD's Intelligence Division under the leadership of Deputy Commissioner Rebecca Weiner, Assistant Chief John Hart, and Deputy Chief Fernando Guimaraes.  Mr. Barron thanked Assistant U.S. Attorneys Christina Hoffman and P. Michael Cunningham, who are prosecuting this case. Mr. Barron also thanked the Department of Justice’s National Security Division for their 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. 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 – A federal grand jury returned an indictment on September 26, 2024, charging Mark Edward Cobb, age 44, of Bowie, Maryland, for coercion and enticement of a child and for possession of child pornography.

The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Michael McCarthy of Homeland Security Investigations (“HSI”) Baltimore; and Chief Malik Aziz of the Prince George’s County Police Department.

According to the indictment, from approximately June 19, 2024, to approximately June 25, 2024, Cobb enticed and coerced a minor victim to engage in sexual activity and possessed sexually explicit images involving a prepubescent minor and a minor victim who had not yet attained 12 years of age.  The case arose when Cobb, a former Prince George’s County elementary school teacher, was accused of engaging in a texting relationship with a nine-year-old student, during which he allegedly requested and received explicit photos from the student.  During a search of Cobb’s home, sexually explicit images and videos of other children and a bag with several pairs of children’s underwear were found.

If convicted, Cobb faces a mandatory minimum sentence of 10 years in federal prison and up to life in federal prison for coercion and enticement of a child and a maximum of 10 years in federal prison for possession of child pornography.  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.  The defendant’s initial appearance on this indictment was held in the U.S. District Court in Greenbelt on October 16, 2024. 

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

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States 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 HSI and the Prince George’s County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Megan S. McKoy and Ranganath Manthripragada, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – U.S. District Judge Julie R. Rubin sentenced Chad Christopher Langgle, age 30, of Hagerstown, Maryland, to 10 years in federal prison, followed by lifetime supervised release, for possession of child pornography.

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, and Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI).

According to his guilty plea, in December 2022, Langgle emailed more than 50 videos containing child pornography, possessed images of child pornography on his cell phone, and had additional videos stored in his email account.  Langgle was previously convicted of sex abuse of a minor and second-degree assault on a minor in the Circuit Court for Calvert County, Maryland.  Additionally, he was previously convicted of a second-degree sex offense in the Circuit Court for St. Mary’s County, Maryland.  

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States 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 HSI, the Maryland State Police, and the United States Marshals Service for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorney Reema Sood, 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 and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – On October 7, 2024, Sindy Paola Hernandez, age 38, of Hyattsville, Maryland, Johnsie Steven Reina Hernandez, age 20, of Hyattsville, Maryland, and Edwin Gonzalez Rodriguez, age 30, of Hyattsville, Maryland, were charged by criminal complaint with conspiracy to commit interstate transportation of stolen goods.  The charges involve a large-scale organized retail theft ring, wherein conspirators stole cosmetic and other products from various retail establishments and provided them to Hernandez, Reina Hernandez, and Gonzalez Rodriguez.  As outlined in the affidavit in support of the complaint, it is alleged that these individuals then shipped the stolen products to other countries, including Honduras. 

The charges are announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Michael S. McCarthy of Homeland Security Investigations (HSI); Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation (IRS-CI); and Chief Marc R. Yamada of the Montgomery County Police Department (MCPD).

According to the affidavit in support of the criminal complaint, in November 2022, retail investigators including Target, Ulta Beauty, CVS, and Walmart began an investigation after large-scale thefts occurred targeting premium skincare products, vitamins, and cold/cough medicine.  The investigation revealed that the thefts were committed by various individuals referred to as “boosters.” The boosters frequently indicated that they were selling the stolen products to Hernandez, who resided in Prince George’s County.  In turn, Hernandez, Reina Hernandez, and Gonzalez Rodriguez would store and sort the products at their residences and storage units, and then ship the stolen products to Honduras. 

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

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

U.S. Attorney Barron commended HSI, the IRS, MCPD, and the various retail establishments, for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kelly O. Hayes 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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Baltimore, Maryland – 17 individuals were indicted yesterday in a Drug Enforcement Administration and Department of Homeland Security investigation involving a sophisticated money laundering scheme and illegal marijuana distribution network resulting in the seizure of over $6,000,000 and over 2,000 pounds of marijuana in illegal proceeds to date.

The investigation – which was undertaken by the Drug Enforcement Administration-Washington Division and Department of Homeland Security-Baltimore Field Office (“HSI”), with support from DEA offices in New Jersey, New York, Washington, and Oregon - began in March 2023 with two separate non-fatal shootings of one individual in Baltimore, Maryland, that has subsequently revealed a sprawling network of individuals laundering millions of dollars generated from the illegal distribution of massive quantities of marijuana.  That network includes large-scale launderers operating a Chinese Money Laundering Organization (MLO) in New York city, and drug traffickers operating in Maryland, sending large quantities of bulk cash proceeds from Maryland to other states, including New York, New Jersey, and Oregon to obtain further shipments of marijuana and to conceal the source of the proceeds.

The Indictment charges the following individuals in count one with Conspiracy to Engage in Money Laundering, and in count two with Conspiracy to Distribute Controlled Substances: Qihai Tao; Michael Micklos; Can Xu; Praveen Morgan; Michael Tilmon, III; Emanuel Dukes; Steven Mack; William Brown, III; Malik Bridgers; David Hilliard; Derian Green; Huayi Zhong; Zebin Liu; Chunbing Qin; Peng Huang; Isaac Huynh, and Li Chen.  The maximum penalty for Conspiracy to Engage in Money Laundering is twenty years imprisonment and up to a $500,000 fine.  The maximum penalty for Conspiracy to Distribute Controlled Substances, as charged in the indictment, is up to twenty years imprisonment and up to $1,000,000, per defendant.  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.

Additionally, Michael Tilmon III, and Steven Mack are charged in one count each with Possession of a Firearm by a Prohibited Person. The maximum penalty for this offense is up to fifteen years imprisonment, and up to a $250,000 fine.

“When violence erupts in our communities, we will track it down to its core. This investigation demonstrates how organized international money laundering drives gun violence and illegal drug trafficking,” said Erek L. Barron, U.S. Attorney for the District of Maryland. “Through the coordinated efforts of our OCDETF Strike Force and law enforcement partners, our highest priority is protecting the nation’s safety and security.”

“This investigation is a clear example of how we use DEA’s collective resources to identify money laundering schemes and drug distribution networks in order to disrupt and dismantle their operations,” emphasized Jarod Forget, Special Agent in Charge of DEA Washington Division.  “The increasingly dynamic and complex nature of the illicit drug trade demands enhanced cooperation with local, state and federal partners that reflects the reality of a globalized supply chain for illegal drugs and its transnational money laundering activities.  We will pursue all enablers of these illicit activities by denying the criminal networks of their ill-gotten proceeds and interrupt their ability to transfer working capital to fund their range of illicit activities.”

“This investigation stands as a compelling example of the remarkable outcomes achieved when law enforcement agencies collaborate toward a common objective,” said Special Agent in Charge Michael McCarthy of HSI Baltimore. “What began as an inquiry into two seemingly unrelated shootings in Baltimore evolved into a comprehensive investigation that exposed a vast criminal enterprise engaged in drug trafficking and the laundering of millions of dollars. This nefarious network extended its reach from Maryland to New York and beyond, infiltrating multiple communities. HSI remains resolute in its commitment to safeguarding Maryland’s neighborhoods by working in close coordination with our law enforcement partners to dismantle and disrupt such criminal organizations.”

An indictment is merely an allegation of criminal conduct, not evidence.  All defendants are presumed innocent until proven guilty at some later criminal proceedings. 

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. The prosecution is being led by the Office of the United States Attorney for the District of Maryland.

U.S. Attorney Barron commended the DEA-Baltimore Field Office, the HSI-Baltimore Field Office, Baltimore County Police Department, Maryland Department of Public Safety and Correctional Services, and Maryland State Police.  Mr. Barron thanked the U.S. Attorney’s Office for the Eastern District of New York, the Southern District of New York, the District of New Jersey, the Western District of Washington, the District of Oregon, and the Eastern District of Texas for their vital cooperation in this investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Alex Kalim, Alex Levin, and James Wallner, 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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Baltimore, Maryland – 17 individuals were indicted yesterday in a Drug Enforcement Administration and Department of Homeland Security investigation involving a sophisticated money laundering scheme and illegal marijuana distribution network resulting in the seizure of over $6,000,000 and over 2000 pounds of marijuana in illegal proceeds to date.

The investigation – which was undertaken by the Drug Enforcement Administration-Baltimore Field Office and Department of Homeland Security-Baltimore Field Office (“HSI”), with support from DEA offices in New Jersey, New York, Washington, and Oregon - began in March 2023 with two separate non-fatal shootings of one individual in Baltimore, Maryland, that has subsequently revealed a sprawling network of individuals laundering millions of dollars generated from the illegal distribution of massive quantities of marijuana.  That network includes large-scale launderers operating a Chinese Money Laundering Organization (MLO) in New York city, and drug traffickers operating in Maryland, sending large quantities of bulk cash proceeds from Maryland to other states, including New York, New Jersey, and Oregon to obtain further shipments of marijuana and to conceal the source of the proceeds.

The Indictment charges the following individuals in count one with Conspiracy to Engage in Money Laundering, and in count two with Conspiracy to Distribute Controlled Substances: Qihai Tao; Michael Micklos; Can Xu; Praveen Morgan; Michael Tilmon, III; Emanuel Dukes; Steven Mack; William Brown, III; Malik Bridgers; David Hilliard; Derian Green; Huayi Zhong; Zebin Liu; Chunbing Qin; Peng Huang; Isaac Huynh, and Li Chen.  The maximum penalty for Conspiracy to Engage in Money Laundering is twenty years imprisonment and up to a $500,000 fine.  The maximum penalty for Conspiracy to Distribute Controlled Substances, as charged in the indictment, is up to twenty years imprisonment and up to $1,000,000, per defendant.  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.

Additionally, Michael Tilmon III, and Steven Mack are charged in one count each with Possession of a Firearm by a Prohibited Person. The maximum penalty for this offense is up to fifteen years imprisonment, and up to a $250,000 fine.

“When violence erupts in our communities, we will track it down to its core. This investigation demonstrates how organized international money laundering drives gun violence and illegal drug trafficking,” said Erek L. Barron, U.S. Attorney for the District of Maryland. “Through the coordinated efforts of our OCDETF Strike Force and law enforcement partners, our highest priority is protecting the nation’s safety and security.”

“This investigation is a clear example of how we use DEA’s collective resources to identify money laundering schemes and drug distribution networks in order to disrupt and dismantle their operations,” emphasized Jarod Forget, Special Agent in Charge of DEA Washington Division.  “The increasingly dynamic and complex nature of the illicit drug trade demands enhanced cooperation with local, state and federal partners that reflects the reality of a globalized supply chain for illegal drugs and its transnational money laundering activities.  We will pursue all enablers of these illicit activities by denying the criminal networks of their ill-gotten proceeds and interrupt their ability to transfer working capital to fund their range of illicit activities.”

“This investigation stands as a compelling example of the remarkable outcomes achieved when law enforcement agencies collaborate toward a common objective,” said Special Agent in Charge Michael McCarthy of HSI Baltimore. “What began as an inquiry into two seemingly unrelated shootings in Baltimore evolved into a comprehensive investigation that exposed a vast criminal enterprise engaged in drug trafficking and the laundering of millions of dollars. This nefarious network extended its reach from Maryland to New York and beyond, infiltrating multiple communities. HSI remains resolute in its commitment to safeguarding Maryland’s neighborhoods by working in close coordination with our law enforcement partners to dismantle and disrupt such criminal organizations.”

An indictment is merely an allegation of criminal conduct, not evidence.  All defendants are presumed innocent until proven guilty at some later criminal proceedings. 

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. The prosecution is being led by the Office of the United States Attorney for the District of Maryland.

U.S. Attorney Barron commended the DEA-Baltimore Field Office, the HSI-Baltimore Field Office, Baltimore County Police Department, Maryland Department of Public Safety and Correctional Services, and Maryland State Police.  Mr. Barron thanked the U.S. Attorney’s Office for the Eastern District of New York, the Southern District of New York, the District of New Jersey, the Western District of Washington, the District of Oregon, and the Eastern District of Texas for their vital cooperation in this investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Alex Kalim, Alex Levin, and James Wallner, 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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Baltimore, Maryland – On October 2, 2024, a federal grand jury returned an indictment charging Jeannette Gomez, age 54, of Perry Hall, Maryland, and Edgar Gomez, age 51, of Perry Hall, Maryland, with failure to report and pay over employment taxes accrued pursuant to their interest in SND Services, LLC and related entities.

The indictment was announced by Erek L. Barron, U.S. for the District of Maryland, and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office. 

As detailed in the indictment, the defendants owned and operated several companies engaged in providing temporary staffing services.  These companies included SND Services, LLC and SND Services Inc.  Under the direction of Jeannette Gomez, these entities issued Forms W-2 to employees and withheld federal income taxes and Social Security and Medicare (“FICA”) taxes from their wages but failed to pay over the total withheld to the IRS.  It is estimated that the defendants failed to pay over at least $10,476,696 in employment taxes.  

As further alleged in the indictment, the defendants diverted the funds withheld in trust for their personal use, including for the purchase of residences costing more than $1 million dollars and luxury vehicles costing in excess of $200,000. 

If convicted, the defendants face a maximum sentence of 5 years in federal prison.  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 until proven guilty at some later criminal proceedings.

U.S. Attorney Barron commended Internal Revenue Service Criminal Investigation for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Adeyemi Adenrele and Special Assistant U.S. Attorney Melinda Dunmire, 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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Baltimore, Maryland – David Epstein, age 46, of Owings Mills, Maryland, pleaded guilty to one count of wire fraud, relating to the submission of fraudulent CARES Act loan applications.  The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. 

The guilty plea was announced by Erek L. Barron, U.S. Attorney for the District of Maryland and Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), Washington, D.C. Field Office.

Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, administered through the Small Business Administration (SBA), as well as an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations. 

According to his plea agreement, beginning in May 2020 and continuing through February 2021 in the District of Maryland, Epstein engaged in a scheme to defraud financial institutions, including Cross River Bank, Bluevine, Celtic Bank, and the United States Small Business Administration (SBA), to obtain fraudulent loans for his business PEI Staffing (PEI), a temporary staffing company, under the Paycheck Protection Program (PPP), and the Economic Injury Disaster Loan (EIDL) program.   

Specifically, on April 30, 2020, Epstein submitted a false and misleading PPP loan application in the name of PEI, seeking approximately $1,307,170 in PPP funds.  The application allegedly contained false statements and omissions relating to PEI including the number of employees, the wages paid to employees, and that any funds received would be spend on expenses such as payroll, business rent and business utilities.  For example, the application stated that PEI had 382 employees, when in fact, an IRS Form 941 for the second quarter of 2020 listed 79 employees for PEI.  Epstein also falsely stated that he did not have common management with any other business.  In fact, Epstein was a common manager of both PEI and Stafquik.

As detailed in the plea agreement, Epstein submitted a fictitious February 2020 bank statement for a SunTrust bank that purported to be a bank statement of PEI.  In truth, this account was not in the name of PEI but instead was in the name of Stafquik.  Epstein admitted that he had earlier altered the bank statement for the purpose of submitting it in connection with PPP applications for PEI.

According to the plea agreement, on May 4, 2020, approximately $1,307,170 in PPP loan proceeds were disbursed to the SunTrust Stafquik account.  Within four days, Epstein opened four personal bank accounts at two separate banks and subsequently transferred the PPP loan proceeds to those accounts to be used for personal and unauthorized expenses. 

Epstein admitted that he spent the fraudulently obtained PPP funds in multiple ways that were impermissible under the PPP. One day after receiving the PPP funds, on May 5, 2020, Defendant made an ACH transfer in the amount of $110,356.48 from the SunTrust account that received the PPP funds to Mercedes-Benz Financial in connection with a payment for a 2019 Mercedes-Benz GT43C4 automobile previously purchased by the Defendant.

Epstein also admitted that beginning on May 20, 2020, and continuing through in or about August 2020, he transferred approximately $138,522.22 in PPP funds to a contractor in connection with extensive renovations to the Defendant’s home and installation of a pool there.  He further admitted to using the PPP funds to pay $100,000 in connection a settlement agreement pertaining to a 2013 litigation involving unpaid insurance premiums and to pay off a $344,341.05 debt related to funds the Defendant misappropriated from a business partner and used for personal expenses.  None of these were permissible uses of the PPP funds.

According to the plea agreement, Epstein also used the PPP funds to pay various personal expenses (including a trip to a luxury golf resort) and provided PPP funds to various family members and associates for purposes unrelated to employment with PEI (including his family’s nanny), making withdrawals for himself, and paying off various personal debts.  Epstein also attempted to repeatedly add individuals whom he owed money to PEI’s payroll to make it appear as though they were employees when they were not.  He also attempted to hide the size of the PPP loan he received, concealing it from his family members, other employees of PEI, and various business partners whom he owed money.

Epstein faces a maximum possible sentence of 20 years in prison followed by up to three years of supervised release.  U.S. District Judge Richard D. Bennett has scheduled sentencing for January 14, 2025 at 11:00 a.m.

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 IRS-CI for its work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley who is prosecuting the case.  Mr. Barron 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.

Greenbelt, Maryland – After a 5-day trial, a federal jury returned a verdict against Timothy Darren Proctor, age 40, finding Proctor guilty of 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 guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and, Chief Malik Aziz of the Prince George’s County Police Department.

According to the evidence presented at trial, on July 10, 2021, at approximately 1:31 p.m., officers responded to a location in Temple Hills, Maryland due to a suspicious occupied vehicle that was parked in the area.  Upon arrival, officers observed Proctor unresponsive in the driver seat, behind the steering wheel, with the windows up, and the doors locked.  Officers banged on the windows to wake up Proctor and he eventually woke up and exited the vehicle. Law enforcement thereafter saw and retrieved a clear bag hanging from Proctor’s front pocket, which contained approximately 10 grams of fentanyl. Additionally, Proctor possessed a firearm, which was located inside the center console of the vehicle. The firearm was loaded with thirteen 40mm caliber cartridges in the magazine and one in the chamber. 

Once at the jail, officers located an additional clear zipped bag containing 29 small clear bags, which also contained fentanyl. Proctor possessed the firearm in connection with his fentanyl drug trafficking. At the time Proctor possessed the firearm, he was prohibited from doing so due to prior felony convictions. Proctor faces a maximum sentence of 10 years in federal prison for felon in possession of a firearm; a maximum sentence of 20 years in federal prison for possession with intent to distribute fentanyl; and a mandatory minimum sentence of 5 years and a maximum sentence of life in federal prison for possession of a firearm in furtherance of a drug trafficking crime.  U.S. District Judge Paula Xinis has not yet scheduled sentencing.

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 Erek L. Barron commended the ATF and PGPD for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joel Crespo, and David I. Salem, 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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Baltimore, Maryland – A federal grand jury has returned an indictment charging a Maryland man on federal charges related to a scheme to fraudulently obtain more than $1 million dollars in unemployment benefits.  On May 22, 2024, a grand jury returned an indictment of Mervyn Fombe Abiko, a/k/a “Magic,” a 35-year-old Maryland man with conspiracy, wire fraud, and aggravated identity theft.  The indictment was unsealed today upon the arrest of the defendant. 

The defendant had an initial appearance on October 2, 2024 in U.S. District Court in Baltimore before U.S. Magistrate Judge Erin Aslan.

The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Damon E. Wood, Postal Inspector in Charge, U.S. Postal Inspection Service-Washington Division Michael S. McCarthy, Special Agent in Charge, Homeland Security Investigations, - Baltimore, Acting Special Agent in Charge Karl Mastantuno, Office of Investigations, Office of Inspector General, U.S. Department of the Treasury, Troy W. Springer, Special Agent in Charge, U.S. Department of Labor - Office of Inspector General, National Capital Region, John T. Perez, Special Agent in Charge of Headquarters Operations, Federal Reserve Board Office of Inspector General.

As detailed in the indictment, employment 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.  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 BOA debit card, which claimants could use to withdraw funds and/or make purchases.

According to the indictment, from March 2020 through January 2021, Abiko and others, including Martin Tabe and Gladstone Njokem, conspired to impersonate victim individuals in order to submit fraudulent UI claims.  To accomplish this, Abiko and others obtained the personally identifiable information (PII) of victims and used that information to file UI applications, which resulted in debit cards being issued in the names of victims that were loaded with benefits.  Abiko and others used those debit cards in point-of-sale transactions and at ATMs. Abiko and others collectively obtained more than $1 million through this scheme.

If convicted, the defendant faces a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud and for each of the three counts of wire fraud.  The defendant faces a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for each of the three counts of aggravated identity theft.  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 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 USPIS, the DOL-OIG and HSI for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorney Sean R. Delaney, 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 – U.S. District Chief Judge George L. Russell III yesterday sentenced Dolapo Lawal, age 34, of Baltimore, Maryland, to 60 months’ imprisonment and 3 years of supervised release for federal charges of access device fraud and aggravated identity theft.

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to the guilty plea, Lawal knowingly and willfully participated in and executed a stolen identity tax refund fraud scheme to obtain fraudulent tax refunds using the identities of elderly victims, then load those refunds onto debit cards tied to bank accounts opened in the victims’ names, sent those cards to secure known addresses throughout the United States, and finally withdraw those refunds in cash. 

As outlined at his guilty plea Lawal’s involvement in the scheme can be grouped into two efforts.  In the first instance, Lawal intentionally trafficked and used 24 Green Dot Bank debit cards in elderly victims’ names in the spring of 2022.  These cards were fraudulently loaded with more than $200,000 in 2021 tax refunds, which were fraudulently obtained through identity theft.  On April 8, 2022, the Baltimore County Police Department lawfully stopped and searched Lawal’s Mercedes S-class sedan.  During the search, officers found approximately $18,900 in cash and these 24 debit cards in a bag left under Lawal’s seat.  Lawal admitted to officers on the scene that this was his bag.  The vehicle also contained multiple plastic bags filled with opened packaging for these or similar debit cards.  Cell tower pings, automated license plate reader data, bank records, and Lawal’s admissions to law enforcement show that Lawal had used these 24 cards to conduct more than 300 cash withdrawals at ATMs to obtain more than $80,000 in the preceding month.  Lawal later admitted that he used these fraudulent debit cards on multiple occasions to conduct cash withdrawals for his personal benefit – specifically to make payments on his Mercedes and to pay off personal credit card debt.

In the second instance, Lawal possessed over 300 additional unique Green Dot Bank debit cards in his home on or about June 21, 2023.  That day, law enforcement executed a search warrant on Lawal’s residence.  During the search, IRS-CI agents found, among other items, a box containing more than 300 additional unique Green Dot Bank debit cards.  Lawal’s iPhone – also seized pursuant to the same search warrant – contained photographs of several of these cards along with portions of the packaging for each of the cards that had the bank account number and routing number for the corresponding account associated with the card.  Approximately 200 of these cards were linked to bank accounts opened in the names of additional victims, which were listed as the direct deposit accounts for fraudulent 2021 and 2022 tax refund claims filed in the names of those same victims.  Many of these tax returns were filed after Lawal’s April 8, 2022 traffic stop.  The total amount of fraudulent tax refund claims associated with these cards was over $3 million.  The IRS had not issued these refund claims before law enforcement searched Lawal’s home.  

In total, Lawal’s offenses furthered a scheme to defraud the United States of over $3 million.

Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps, including identifying appropriate reporting agencies, providing information to callers to assist them in reporting or connecting them with agencies, and providing resources and referrals on a case-by-case basis.  The hotline is staffed from 10:00 a.m. to 6:00 p.m. Monday through Friday. English, Spanish, and other languages are available.  More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.  Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324.

U.S. Attorney Barron commended the IRS-CI for its work in the investigation and thanked the Baltimore County Police Department for its assistance.  Mr. Barron 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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Baltimore, Maryland – Fourteen people were arrested yesterday in a large-scale drug and gun bust throughout Annapolis, Anne Arundel County and Baltimore City. 

During the operation – which involved over 500 officers, agents and personnel from federal, state and local agencies – law enforcement seized distribution levels of narcotics including cocaine, heroin, fentanyl and oxycodone, one shotgun, three handguns, nearly $40,000 in cash and drug paraphernalia.  

“This operation is yet another example of how the teamwork among our law enforcement partners is stronger than ever,” said Erek L. Barron, U.S. Attorney for the District of Maryland, “If we work together, with our community-based partners, our neighborhoods will be safe and secure.”

"Thanks to diligent and comprehensive investigative work by the FBI’s Annapolis Safe Streets Task Force, a significant drug trafficking organization has been dismantled," said William J. DelBagno, Special Agent in Charge of the FBI Baltimore Field Office. “In a coordinated effort across three jurisdictions, the FBI and our law enforcement partners worked seamlessly to thwart the capabilities of this criminal enterprise that profited from peddling poison within our communities. We are working hard to identify and stop the most violent offenders and facilitators."  

14 people were arrested. 11 of the 14 are facing federal charges of conspiracy to distribute and possess with intent to distribute controlled dangerous substances. Additional charges could follow.  

A complaint is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.  

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 case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

U.S. Attorney Barron commended the FBI-Baltimore Field Office, the Office of the State's Attorney for Anne Arundel County with the assistance of FBI national and regional assets, the Annapolis Police Department, Anne Arundel County Police Department, Baltimore Police Department, Anne Arundel County Sheriff’s Office, Maryland State Police, Maryland Army National Guard, the Drug Enforcement Administration and the United States Marshals Service. Mr. Barron thanked Assistant U.S. Attorneys LaRai Everett and Jonathan Tsuei, 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 – The U.S. Attorney’s Office for the District of Maryland announced today that it has reached a settlement agreement with the Maryland Department of State Police (MDSP) to resolve the United States’ claims that MDSP’s hiring process for state troopers violates Title VII of the Civil Rights Act. Specifically, the United States alleges that MDSP uses a written test that discriminates against Black candidates and a physical fitness test that discriminates against female candidates. The agreement must still be approved by a federal judge.

The settlement agreement resolves a civil pattern and practice investigation the U.S. Attorney’s Office opened on July 15, 2022. As part of the investigation, the U.S. Attorney’s Office conducted an in-depth review of MDSP’s hiring practices, the composition of its sworn personnel, applicant data, and information received from the Maryland State Police, and concluded the State’s written and physical fitness tests do not meaningfully distinguish between applicants who can and cannot perform the position of Trooper. These tests also had the effect of disqualifying Black and female applicants from the hiring process at significantly disproportionate rates. The U.S. Attorney’s Office thus concluded that these tests violate Title VII.

“This settlement agreement is a reflection of our continued mission to protect the civil rights of all Marylanders, including those of our sworn law enforcement officers,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Law enforcement agencies have a responsibility to protect all citizens equally. We are pleased that MDSP is committed to ensuring that its hiring processes will not discriminate on the basis of race or gender.”   

“Equal employment opportunities in law enforcement are not just a core civil right but essential to ensuring that those who serve reflect the rich racial and gender diversity of the communities they are sworn to protect,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The underrepresentation of Blacks and women in law enforcement undermines public safety and runs contrary to the principle of equal opportunity which is central in our job market. This agreement requires the Maryland Department of State Police to institute meaningful reforms, remove unlawful barriers in its hiring process, and provide restitution and relief to those already harmed, ensuring that all qualified applicants have a fair chance to serve. The Justice Department will continue working to ensure equal access to employment opportunities for all Americans.”

The complaint, filed today in the District of Maryland, alleges that MDSP’s use of a written test called the Police Officer Selection Test (POST) disproportionately excludes Black candidates, and its use of a physical fitness test called the Functional Fitness Assessment Test (FFAT) disproportionately excludes female candidates, from employment as troopers. The United States alleges that MDSP’s uses of the POST and the FFAT are not job related or consistent with business necessity, and thus, violate Title VII.

Under the terms of the consent decree, MDSP will:

• Adopt written and physical fitness tests that do not discriminate in violation of Title VII;
• Provide data to the United States on the administration of the new tests to ensure compliance;
• Pay $2.75 million in back pay to applicants who were disqualified by MDSP’s use of the challenged tests; and
• Hire up to 25 applicants who were unfairly disqualified by those tests and who successfully complete MDSP’s new trooper screening and selection process.

Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin, and religion. Title VII prohibits not only intentional discrimination but also employment practices that result in a disparate impact on a protected group, unless such practices are job related and consistent with business necessity.

You can learn more about the contents of the agreement from this fact sheet.

The full and fair enforcement of Title VII is a top priority of the U.S. Attorney’s Office for the District of Maryland. More information about the U.S. Attorney’s Office for the District of Maryland can be found at https://www.justice.gov/usao-mdand more information about the Office’s Civil Rights and Special Victims Section can be found at https://www.justice.gov/usao-md/civil-rights.

This matter is being handled by Assistant United States Attorneys Kimberly Phillips and Sarah Marquardt for the District of Maryland and Senior Trial Attorneys Emily Given and Cheyenne N. Chambers of the Civil Rights Division’s Employment Litigation Section. 

Washington - Precision Toxicology, doing business as Precision Diagnostics, has agreed to pay $27 million to resolve alleged violations of the False Claims Act and similar state statutes for billing Medicare, Medicaid and other federal health care programs for medically unnecessary urine drug tests, and for providing free items to physicians who agreed to refer expensive laboratory testing business to Precision. Precision, headquartered in San Diego, is one of the nation’s largest urine drug testing laboratories.

“We aggressively pursue those who defraud these critical healthcare programs and take money meant for needy patients.  Taxpayers deserve nothing less, “said U.S. Attorney for the District of Maryland Erek L. Barron.  

“The Justice Department is committed to ensuring that laboratory tests are ordered based on each patient’s medical needs and not just to increase laboratory profits,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not tolerate practices that unnecessarily increase the costs of federal health care programs and result in the misuse of taxpayer funds.”

In the settlement agreement, the United States alleged that Precision systematically billed federal health care programs for excessive and unnecessary urine drug testing from January 1, 2013, through December 31, 2022.  In particular, the United States contended that Precision caused physicians to order excessive numbers of urine drug tests, in part through the promotion of “custom profiles,” which were, in effect, standing orders that caused physicians to order a large number of tests without an individualized assessment of each patient’s needs.  This practice violated federal healthcare program rules limiting payment to services that are reasonable and medically necessary for the treatment and diagnosis of an individual patient’s illness or injury.

The United States also alleged that Precision’s provision of free point of care urine drug test cups to physicians—expressly conditioned on the physicians’ agreement to return the urine specimens to Precision for additional testing—violated the Anti-Kickback Statute.  The Anti-Kickback Statute generally prohibits laboratories from giving physicians anything of value in exchange for referrals of tests.

“When laboratories ignore medical needs and increase testing for their own profits, the Department of Justice will act to protect the taxpayers and the integrity of our vital federal health programs,” said Acting U.S. Attorney for the District of Colorado Matthew Kirsch.

In connection with the False Claims Act settlement, Precision has also entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).

“Today’s settlement demonstrates that investigating violations of the False Claims Act is a top priority,” said Maureen R. Dixon, Special Agent in Charge for HHS-OIG.  “HHS-OIG will continue to work with the Department of Justice to ensure the integrity of federal health care programs.”

Of the settlement amount, $18.2 million will be paid to the United States and the remainder will be paid to the states of Maryland, Illinois, Minnesota, Virginia, Georgia and Colorado for the states’ share of Medicaid.

The False Claims Act allegations resolved by this settlement were originally brought in three lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery.  Two of the cases are captioned United States and Maryland ex rel. Hudak v. Precision Toxicology, LLC, ELH-18-1510 (D. Md.) and United States, Illinois and Minnesota ex rel. Buonauro v. Precision Diagnostics, LLC et al., ELH-21-3231 (D. Md).  The third qui tam case against Precision, brought in the District of Colorado, remains partially sealed.

Under the Act, the United States can elect to intervene in an action filed by a whistleblower, as it did here in part.  Bryce Hudak will receive $2,743,002 from the federal False Claims Act recovery.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare 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 the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The resolution obtained in this matter was the result of a coordinated effort between federal and state partners lead by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; along with the U.S. Attorney’s Offices for the Districts of Maryland, Colorado and Connecticut; the Department of Health and Human Services Office of Inspector General and Office of the General Counsel; the Office of Personnel Management Office of Inspector General; the Department of Veteran’s Affairs Office of Inspector General; the Defense Criminal Investigative Service; the Maryland Office of Attorney General; and the National Association of Medicaid Fraud Control Units.

Attorneys Vanessa Reed and Vince Vaccarella of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Roann Nichols for the District of Maryland, David Moskowitz for the District of Colorado and Rick Molot for the District of Connecticut handled the matter, with assistance from Assistant Attorneys General Raja Mishra of the State of Maryland, and Ian Garland of the State of Florida.

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

###

The Justice Department announced today that it has reached a settlement agreement with the Maryland Department of State Police (MDSP) to resolve the United States’ claims that MDSP’s hiring process for state troopers violates Title VII of the Civil Rights Act. Specifically, the United States alleges that MDSP uses a written test that discriminates against Black candidates and a physical fitness test that discriminates against female candidates. The agreement must still be approved by a federal judge.

The settlement agreement resolves a civil pattern and practice investigation the Civil Rights Division opened on July 15, 2022. As part of the investigation, the division conducted an in-depth review of MDSP’s hiring practices, the composition of its sworn personnel, applicant data, and information received from the Maryland State Police, and concluded the State’s written and physical fitness tests do not meaningfully distinguish between applicants who can and cannot perform the position of Trooper. These tests also had the effect of disqualifying Black and female applicants from the hiring process at significantly disproportionate rates. The department thus concluded that these tests violate Title VII.

“Equal employment opportunities in law enforcement are not just a core civil right but essential to ensuring that those who serve reflect the rich racial and gender diversity of the communities they are sworn to protect,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The underrepresentation of Blacks and women in law enforcement undermines public safety and runs contrary to the principle of equal opportunity which is central in our job market. This agreement requires the Maryland Department of State Police to institute meaningful reforms, remove unlawful barriers in its hiring process, and provide restitution and relief to those already harmed, ensuring that all qualified applicants have a fair chance to serve. The Justice Department will continue working to ensure equal access to employment opportunities for all Americans.”

“This settlement agreement is a reflection of our continued mission to protect the civil rights of all Marylanders, including those of our sworn law enforcement officers,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Law enforcement agencies have a responsibility to protect all citizens equally. We are pleased that MDSP is committed to ensuring that its hiring processes will not discriminate on the basis of race or gender.” 

The complaint, filed today in the District of Maryland, alleges that MDSP’s use of a written test called the Police Officer Selection Test (POST) disproportionately excludes Black candidates, and its use of a physical fitness test called the Functional Fitness Assessment Test (FFAT) disproportionately excludes female candidates, from employment as troopers. The United States alleges that MDSP’s uses of the POST and the FFAT are not job related or consistent with business necessity, and thus, violate Title VII.

Under the terms of the consent decree, MDSP will:

• Adopt written and physical fitness tests that do not discriminate in violation of Title VII;
• Provide data to the United States on the administration of the new tests to ensure compliance;
• Pay $2.75 million in back pay to applicants who were disqualified by MDSP’s use of the challenged tests; and
• Hire up to 25 applicants who were unfairly disqualified by those tests and who successfully complete MDSP’s new trooper screening and selection process.

Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin, and religion. Title VII prohibits not only intentional discrimination but also employment practices that result in a disparate impact on a protected group, unless such practices are job related and consistent with business necessity.

You can learn more about the contents of the agreement from this fact sheet and a statement from Assistant Attorney General Clarke here.

The full and fair enforcement of Title VII is a top priority of the Civil Rights Division. The Division has issued a new fact sheet on Combating Hiring Discrimination by Police and Fire Departments to help applicants for public safety jobs understand their Title VII rights to be free from discriminatory hiring processes. More information about the Civil Rights Division can be found at www.justice.gov/crt.

Senior Trial Attorneys Emily Given and Cheyenne N. Chambers of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Kimberly Phillips for the District of Maryland are handling this matter.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Dexter Nikoe Eaton, age 34, of Baltimore, to 14 years in federal prison, followed by 3 years of supervised release, for armed bank robbery, related to a series of bank and armed commercial robberies.

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 and Commissioner Richard Worley of the Baltimore Police Department.

According to Eaton’s plea agreement, between June 3 and July 30, 2022, Eaton committed six separate robbery incidents-five robberies and one attempted robbery of banks and other businesses and used a firearm in four of the robberies.  Specifically, Eaton admitted that on June 3, 2022, he robbed a bank in the 3200 block of West North Avenue in Baltimore, providing a note to the teller that demanded money and threatened to kill the teller’s family if the teller did not comply with Eaton’s demands.  On June 9, 2022, Eaton attempted to rob a check cashing and financial services business located in the 1600 block of West North Avenue, again by passing a note to the teller.  The teller refused to read the note, instead activating an alarm, and Eaton fled.  Law enforcement collected the note passed by Eaton, which again demanded money and threatened to kill the family of the employee if Eaton’s demands were not met.

On June 10, 2022, Eaton, armed with a handgun, entered a bank in the 3200 block of West North Avenue wearing a black head covering and a surgical mask and pointed the gun at customers and employees stating, “Nobody move.  Give me $4,000 or everyone in this b***h is dead.”  Eaton forced a customer to the ground at gunpoint and took the customer’s wallet and cash.  With the gun still pointed at the customer’s head, Eaton demanded that an employee get him $4,000 or Eaton would shoot the customer.  The bank employee, fearing for her safety and the safety of others, gave Eaton cash, and Eaton fled the bank.  On June 27, Eaton, armed with a handgun, robbed a bank in the 4700 block of Liberty Heights Avenue in Baltimore, pointing a gun at the security guard’s head and forcing the security guard to accompany Eaton to the teller window, where a customer was conducting a transaction.  With the gun still at the security guard’s head, Eaton demanded that the teller give him $7,000-$8,000 and threatened to shoot the security guard and the customer if the teller did not give him money or pushed any alarms.  Fearing for her safety, the teller gave Eaton cash and he fled the bank.

Finally, on July 23, 2022, and July 30, 2022, Eaton robbed two businesses in the 3100 block of West North Avenue.  In both robberies, Eaton held employees at gunpoint and demanded money, threatening an employee in the second robbery for moving too slow.  The employees in both robberies gave Eaton cash and he left the stores.               

U.S. Attorney Barron praised the FBI and Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Reema Sood and Paul E. Budlow, 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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Greenbelt, Maryland – Today, federal inmate Jonathan Henry, age 32, was sentenced to 97 months imprisonment followed by 3 years of supervised release and restitution in the amount of $1,894,971 for conspiracy to commit wire fraud and mail fraud and aggravated identity theft, relating to the submission of fraudulent CARES Act unemployment insurance benefits.  Henry’s co-defendant, Kenneth Dodd, was previously sentenced to 42 months imprisonment for his role in the offense, which he will serve consecutively to previous sentences he is currently serving as a result of prior federal felony convictions.  A third defendant, Jason Haddox, is scheduled to be sentenced on January 24, 2025.

The sentences are announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Troy W. Springer of the National Capital Region U.S. Department of Labor - Office of Inspector General (“DOL-OIG”); and, Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service (“USPIS”) - Washington Division.

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.  Financial assistance offered through the CARES Act included expanded eligibility for Unemployment Insurance (“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”).

According to their plea agreements, during the time of the conspiracy, from March 22, 2020 through at least June 2021, Henry, Dodd and Haddox were inmates at the Federal Correctional Institution, Fort Dix (“FCI Fort Dix”). Henry, Dodd Haddox and their co-conspirators (both inmates and outside individuals) submitted fraudulent online applications for UI benefits in Maryland and other states.  Henry and other conspirators used the personal identifying information (“PII”) of identity theft victims in many of the applications.  Based on the information in the fraudulent applications, the Maryland Department of Labor, which is responsible for processing applications for UI benefits in Maryland, issued prepaid debit cards in the names of the applicants and mailed them to addresses included on the applications, which were accessible to the conspirators.  The defendants and their co-conspirators used the prepaid debit cards to withdraw money from ATMs and to make retail purchases.

Henry admitted that he used the PII of identity theft victims to submit approximately 191 fraudulent claims, the majority in Maryland but also in Washington, D.C., Virginia and North Carolina.  Of the fraudulent claims submitted, 152 claims were paid, with an actual loss of approximately $1,894,971.

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 Barron commended the DOL-OIG and the USPIS for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Kelly O. Hayes, 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 – On September 30, 2024, U.S. District Judge Stephanie A. Gallagher sentenced William Zev Steen, age 46, of Baltimore, Maryland, to 23 years in federal prison, followed by lifetime supervised release, for sexual exploitation of a child.

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Michael S. McCarthy of Homeland Security Investigations (HSI); and Commissioner Richard Worley of the Baltimore Police Department.       

According to his guilty plea, from 2005 to 2011, Steen sexually abused the minor victim, from the time she was two until she was eight years old.  Steen recorded two of the instances of sexual abuse in 2008 when the minor victim was 5 years old.

Steen also admitted that in 2022, he collected and shared files depicting the sexual abuse of prepubescent minors using a Peer-to-Peer file sharing network.  The files documenting Steen’s abuse of the minor victim were located on his digital devices after his arrest in November 2022.

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 HSI Baltimore, HSI Tel Aviv, and the Baltimore Police Department for their work in the investigation. Mr. Barron also thanked Assistant United States Attorneys Paul E. Budlow and Michael Aubin, 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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ALEXANDRIA, Va. – Today, the Justice Department announced actions coordinated with the Department of State, Department of the Treasury, and other federal and international law enforcement partners to combat Russian money laundering operations. The actions involved the unsealing of an indictment charging a Russian national with his involvement in operating multiple money laundering services that catered to cybercriminals, as well as the seizure of websites associated with three illicit cryptocurrency exchanges.

“Today's actions highlight the Department’s continued disruption of malicious cyber actors and their criminal ecosystem,” said Deputy Attorney General Lisa Monaco. “The two Russian nationals charged today allegedly pocketed millions of dollars from prolific money laundering and fueled a network of cyber criminals around the world, with Ivanov allegedly facilitating darknet drug traffickers and ransomware operators. Working with our Dutch partners, we shut down Cryptex, an illicit crypto exchange, and recovered millions of dollars in cryptocurrency.”

“Every step cybercriminals take in their pursuit of money leaves another track that leads us to their doorstep,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “And if you follow them on their path of greed, they will lead us to you. We will not stop, because while domains can always be seized, justice is unyielding.”

“The Secret Service is relentless in pursuing those engaged in criminal activity,” said Assistant Director Brian Lambert of the U.S. Secret Service. “I thank our domestic and foreign partners for their efforts on this case, as we continue our work bringing to justice those engaged in transnational criminal activity.”

According to court documents unsealed today in the Eastern District of Virginia, Russian national Sergey Ivanov, known online as “Taleon,” among other aliases, was charged with one count of conspiracy to commit and aid and abet bank fraud for providing payment processing support to the carding website Rescator, and one count of conspiracy to commit money laundering for laundering proceeds from the carding website Joker’s Stash. (“Carding” is the unlawful acquisition of and trade in stolen credit and debit card information for fraudulent purposes.) Ivanov allegedly operated for nearly two decades as a professional cyber money launderer, advertising his services to other cybercriminals on exclusive Russian-speaking criminal forums. Over the years, Ivanov’s laundering services and payment systems have catered to cybercrime marketplaces, ransomware groups, and hackers responsible for significant data breaches of major U.S. companies.

Ivanov allegedly created and/or operated Russian payment and exchange services UAPS, PinPays, and PM2BTC, which provided money transfer and laundering services directly to criminals. Cryptocurrency blockchain analysis revealed that, between July 12, 2013, and August 10, 2024, cryptocurrency addresses associated with Ivanov’s alleged money laundering services conducted transactions totaling approximately $1.15 billion in value. Approximately 32% of all traced bitcoin sent to these addresses originated from other cryptocurrency addresses associated with criminal activity. For example, more than $158 million of bitcoin flowing into Ivanov’s addresses allegedly represented fraud proceeds, more than $8.8 million allegedly represented proceeds from known ransomware payments, and approximately $4.7 million allegedly originated from darknet drug markets. The U.S. Secret Service has obtained court authorization to seize domains associated with the UAPS and PM2BTC websites.

The Rescator carding website allegedly sold stolen payment card data from U.S. financial institutions and personally identifiable information (PII) of U.S. citizens. For example, the website allegedly advertised the sale of data from up to 40 million payment cards and the PII of approximately 70 million people that had been stolen from a major U.S. retail victim in 2013. The breach cost the U.S. retail victim at least $202 million in expenses and caused damage to the U.S. retail victim’s customers, who became targets of identity theft by other cybercriminals. Ivanov allegedly provided payment processing support for the Rescator carding site through the UAPS and PinPays services for purchases made on the site using bitcoin.

Additionally, Russian national Timur Shakhmametov, known online as “JokerStash” and “Vega,” among other aliases, is charged in the same indictment with one count of conspiracy to commit and aid and abet bank fraud, one count of conspiracy to commit access device fraud, and one count of conspiracy to commit money laundering related to his work in operating the carding website Joker’s Stash and laundering the proceeds. Joker’s Stash offered for sale data from approximately 40 million payment cards annually, totaling hundreds of millions of payment cards overall, and was one of the largest known carding markets in history. Estimates of its profits range from $280 million to more than $1 billion. Shakhmametov and others allegedly promoted Joker’s Stash and its products by advertising the Joker’s Stash website and its stolen payment card data on numerous online cybercrime forums.

Separately, the U.S. Secret Service executed a seizure order from the District of Maryland against two website domain names used to support the cryptocurrency money laundering exchange “Cryptex.net.” According to court records unsealed today, Cryptex.net and Cryptex.one were associated with the administration and operation of Cryptex, which offers complete anonymity to Cryptex users by allowing them to register for accounts without providing know-your-customer compliance requirements. Like UAPS and PM2BTC, Cryptex advertised itself directly to cybercriminals.

According to a company that provides blockchain analytics services to law enforcement, there have been more than 37,500 transactions involving bitcoin addresses associated with Cryptex, amounting to a total value of approximately 62,586 bitcoin, or $1.4 billion at the time the transactions were made. Of that amount, about 31% of the bitcoin sent, or $441 million, originated from cryptocurrency addresses associated with criminal conduct, including $297 million of fraud proceeds and more than $115 million of proceeds from ransomware payments. Nine percent of all bitcoin sent to Cryptex, or $162 million, originated from cryptocurrency addresses associated with services often used by cybercriminals. Further, 28% of all bitcoin sent from Cryptex was sent to companies or darknet markets sanctioned by the United States.

The seizure of these domains by the government will prevent the owners and third parties from using the sites for money laundering. Individuals visiting those sites now will see a message indicating that the site has been seized by the federal government.

As part of the coordinated actions taken today, our Dutch partners seized the servers hosting PM2BTC and Cryptex. Those servers have been taken offline at various locations around the world, and the Dutch have seized cryptocurrency from those servers worth over $7 million.

In coordination with the department’s actions, other U.S. government agencies and foreign law enforcement partners are also taking related actions. The U.S. Department of State issued reward offers up to $11 million through its Transnational Organized Crime Rewards Program for information leading to the arrest and/or conviction of Ivanov and others involved in the operation of his money laundering services, and for Shakhmametov and others involved in the operation of Joker’s Stash. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an order that identifies PM2BTC as being of “primary money laundering concern” in connection with Russian illicit finance. Concurrently, Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Cryptex and Ivanov.

The U.S. Secret Service Cyber Investigative Section is investigating the case.

Assistant U.S. Attorney Zoe Bedell for the Eastern District of Virginia is prosecuting the case against Ivanov and Shakhmametov. Trial Attorney Jeff Pearlman and Senior Counsel Jessica Peck of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Thomas Sullivan for the District of Maryland are handling the investigation into Cryptex. The Justice Department’s Office of International Affairs also provided assistance in these matters.

The Netherlands Police, Dutch Fiscal Information and Investigation Service, International Cooperation Department of the Central Criminal Police of the State Police of Latvia, Europol, National Cyber-Forensics & Training Alliance, German Federal Criminal Police Office, and UK National Crime Agency provided invaluable assistance.

The text of FinCEN’s order can be found here.

More information on the individuals and entities that OFAC designated today can be found here.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.

The Justice Department today announced actions coordinated with the Department of State, Department of the Treasury, and other federal and international law enforcement partners to combat Russian money laundering operations. The actions involved the unsealing of an indictment charging a Russian national with his involvement in operating multiple money laundering services that catered to cybercriminals, as well as the seizure of websites associated with three illicit cryptocurrency exchanges.

“Today's actions highlight the Department’s continued disruption of malicious cyber actors and their criminal ecosystem,” said Deputy Attorney General Lisa Monaco. “The two Russian nationals charged today allegedly pocketed millions of dollars from prolific money laundering and fueled a network of cyber criminals around the world, with Ivanov allegedly facilitating darknet drug traffickers and ransomware operators. Working with our Dutch partners, we shut down Cryptex, an illicit crypto exchange and recovered millions of dollars in cryptocurrency.”

“Cryptex promised its cybercriminal customers a safe space to launder their illicit proceeds anonymously,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “But the coordinated actions announced today — including seizing the Cryptex domains, servers, and proceeds — should put cybercriminals on notice that there are no safe spaces for cybercriminals online. The Criminal Division will continue to work with its domestic and international partnerships to disrupt platforms that enable cybercrime and render those platforms unprofitable.”  

“Every step cybercriminals take in their pursuit of money leaves another track that leads us to their doorstep,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “And if you follow them on their path of greed, they will lead us to you. We will not stop, because while domains can always be seized, justice is unyielding.”

“The Secret Service is relentless in pursuing those engaged in criminal activity,” said Assistant Director Brian Lambert of the U.S. Secret Service. “I thank our domestic and foreign partners for their efforts on this case, as we continue our work bringing to justice those engaged in transnational criminal activity.”

According to court documents unsealed today in the Eastern District of Virginia, Russian national Sergey Ivanov, known online as “Taleon,” among other aliases, was charged with one count of conspiracy to commit and aid and abet bank fraud for providing payment processing support to the carding website Rescator, and one count of conspiracy to commit money laundering for laundering proceeds from the carding website Joker’s Stash. “Carding” is the unlawful acquisition of and trade in stolen credit and debit card information for fraudulent purposes. Ivanov allegedly operated for nearly two decades as a professional cyber money launderer, advertising his services to other cybercriminals on exclusive Russian-speaking criminal forums. Over the years, Ivanov’s laundering services and payment systems have catered to cybercrime marketplaces, ransomware groups, and hackers responsible for significant data breaches of major U.S. companies.

Ivanov allegedly created and/or operated Russian payment and exchange services UAPS, PinPays, and PM2BTC, which provided money transfer and laundering services directly to criminals. Cryptocurrency blockchain analysis revealed that between July 12, 2013, and Aug. 10, cryptocurrency addresses associated with Ivanov’s alleged money laundering services conducted transactions totaling approximately $1.15 billion in value. Approximately 32% of all traced bitcoin sent to these addresses originated from other cryptocurrency addresses associated with criminal activity. For example, more than $158 million of bitcoin flowing into Ivanov’s addresses allegedly represented fraud proceeds, more than $8.8 million allegedly represented proceeds from known ransomware payments, and approximately $4.7 million allegedly originated from darknet drug markets. The U.S. Secret Service has obtained court authorization to seize domains associated with the UAPS and PM2BTC websites.

The Rescator carding website allegedly sold stolen payment card data from U.S. financial institutions and personally identifiable information (PII) of U.S. citizens. For example, the website allegedly advertised the sale of data from up to 40 million payment cards and the PII of approximately 70 million people that had been stolen from a major U.S. retail victim in 2013. The breach cost the U.S. retail victim at least $202 million in expenses and caused damage to the U.S. retail victim’s customers, who became targets of identity theft by other cybercriminals. Ivanov allegedly provided payment processing support for the Rescator carding site through the UAPS and PinPays services for purchases made on the site using bitcoin.

Additionally, Russian national Timur Shakhmametov, known online as “JokerStash” and “Vega,” among other aliases, is charged in the same indictment with one count of conspiracy to commit and aid and abet bank fraud, one count of conspiracy to commit access device fraud, and one count of conspiracy to commit money laundering related to his work in operating the carding website Joker’s Stash and laundering the proceeds. Joker’s Stash offered for sale data from approximately 40 million payment cards annually, totaling hundreds of millions of payment cards overall, and was one of the largest known carding markets in history. Estimates of its profits range from $280 million to more than $1 billion. Shakhmametov and others allegedly promoted Joker’s Stash and its products by advertising the Joker’s Stash website and its stolen payment card data on numerous online cybercrime forums.

Separately, the U.S. Secret Service executed a seizure order from the District of Maryland against two website domain names used to support the cryptocurrency money laundering exchange “Cryptex.net.” According to court records unsealed today, Cryptex.net and Cryptex.one were associated with the administration and operation of Cryptex, which offers complete anonymity to Cryptex users by allowing them to register for accounts without providing know-your-customer compliance requirements. Like UAPS and PM2BTC, Cryptex advertised itself directly to cybercriminals.

According to a company that provides blockchain analytics services to law enforcement, there have been more than 37,500 transactions involving bitcoin addresses associated with Cryptex, amounting to a total value of approximately 62,586 bitcoin, or $1.4 billion at the time the transactions were made. Of that amount, about 31% of the bitcoin sent, or $441 million, originated from cryptocurrency addresses associated with criminal conduct, including $297 million of fraud proceeds and more than $115 million of proceeds from ransomware payments. Nine percent of all bitcoin sent to Cryptex, or $162 million, originated from cryptocurrency addresses associated with services often used by cybercriminals. Further, 28% of all bitcoin sent from Cryptex was sent to companies or darknet markets sanctioned by the United States.

The seizure of these domains by the government will prevent the owners and third parties from using the sites for money laundering. Individuals visiting those sites now will see a message indicating that the site has been seized by the federal government.

As part of the coordinated actions taken today, our Dutch partners seized the servers hosting PM2BTC and Cryptex. Those servers have been taken offline at various locations around the world, and the Dutch have seized cryptocurrency from those servers worth over $7 million.

In coordination with the department’s actions, other U.S. government agencies and foreign law enforcement partners are also taking related actions. The U.S. Department of State issued reward offers up to $11 million through its Transnational Organized Crime Rewards Program for information leading to the arrest and/or conviction of Ivanov and others involved in the operation of his money laundering services, and for Shakhmametov and others involved in the operation of Joker’s Stash. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an order that identifies PM2BTC as being of “primary money laundering concern” in connection with Russian illicit finance. Concurrently, Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Cryptex and Ivanov.

The U.S. Secret Service Cyber Investigative Section is investigating the case.

Assistant U.S. Attorney Zoe Bedell for the Eastern District of Virginia is prosecuting the case against Ivanov and Shakhmametov. Trial Attorney Jeff Pearlman and Senior Counsel Jessica Peck of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Thomas Sullivan of the District of Maryland are handling the investigation into Cryptex. The Justice Department’s Office of International Affairs also provided assistance in these matters.

The Netherlands Police, Dutch Fiscal Information and Investigation Service, the International Cooperation Department of the Central Criminal Police of the State Police of Latvia, Europol, the National Cyber-Forensics & Training Alliance, the German Federal Criminal Police Office, and the UK National Crime Agency provided invaluable assistance.

The text of FinCEN’s order can be found here.

For more information on the individuals and entities that OFAC designated today, click here.

Baltimore – On September 25, 2024, United States District Judge George L. Russell, III, sentenced Tavon Reid-El, age 25, of Baltimore City, Maryland, to fourteen (14) years in federal prison, followed by five years of supervised release, for committing two armed commercial robberies and three armed carjackings in Baltimore City, Maryland. 

The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and, Commissioner Richard Worley of the Baltimore City Police Department.

According to his plea agreement, on December 28, 2019, Reid-El robbed an employee of Safeway Lock & Key.  According to the employee, he was dispatched to the 1500 block of Fernley Road in Baltimore City to provide assistance with a vehicle lockout. When the employee arrived at the location, he was met by Reid-El, who indicated that he was locked-out of his vehicle, a white Nissan Sentra.  The Safeway employee then programmed a new key fob and requested payment from Reid-El. Reid-El provided partial payment, and the employee informed Reid-El that he owed a balance.  An unidentified co-conspirator, armed with a handgun, then approached the employee.  Reid-El demanded the employee empty his pockets and return the money that Reid-El had given to him.  Reid-El and the unknown suspect then took the employee’s wallet and cellphone, as well as work tools from the employee’s work van.  The men also attempted to abduct the employee but were unsuccessful.

On January 11, 2020, Reid-El committed three armed carjackings in Baltimore City.  During all three carjackings, Reid-El arrived at the scene in a white sedan and then approached the victims, brandishing a handgun.  Reid-El then stole the vehicles and personal items of the victims. Co-defendant Tyree Bethel operated the white sedan during some of the carjackings.

At approximately 12:00 p.m. on January 11, 2020, Reid-El robbed at gunpoint a locksmith for Jet Locksmith in the 1700 block of East 32nd Street in Baltimore City.  At the location, the victim met with Reid-El, who informed the locksmith that he had locked his keys inside his white 2016 Honda Accord.  The locksmith then unlocked the Honda and Reid-El retrieved the keys.  As the locksmith prepared a work order and asked Reid-El how he was paying for the service, Reid-El replied that he was paying with cash.  The locksmith then walked to his work vehicle and noticed Reid-El following him.  Reid-El then lifted the hemline of his sweatshirt and revealed a brown-handled revolver firearm and asked the locksmith for his money, wallet and cellphone. Reid-El also demanded that the locksmith open the safe contained in the locksmith’s work vehicle.  The locksmith complied and provided Reid-El with his wallet, cellphone, and cash from the vehicle’s safe.  Reid-El then entered the white Honda Accord and departed the area.

A cellular telephone tracking order was authorized for two cellular phone numbers.  Utilizing the tracking order, BPD officers were able to track one of the phones to a silver Honda Accord.  BPD officers stopped the vehicle and located inside were Reid-El, co-defendant Tyree Bethel and another individual.  The cellphone that was being tracked was recovered from Reid-El.  Officers also recovered from Reid-El the cellphone of one of the victims.  The other cellphone was tracked to the home address of co-defendant Bethel.

In mid-January 2020, several victims from the commercial armed robberies and carjackings responded to the BPD Citywide Robbery section and were each shown photograph arrays.  The victims each positively identified Reid-El as the perpetrator of the crimes.

On January 16, 2020, a search warrant was authorized for the residence of co-defendant Tyree Bethel.  During the search of the residence, law enforcement officers recovered, among other items, the Auto Pad Pro stolen from the employee of Safeway Lock & Key on December 28, 2019.

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.

United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation.  Mr. Barron 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. 

Sarah Beth Clendaniel, 36, of Catonsville, Maryland, was sentenced today to 18 years in prison and a lifetime of supervised release for conspiring to damage or destroy electrical facilities in Maryland and a concurrent sentence of 15 years in prison and three years of supervised release for being a felon in possession of a firearm.

“Those who seek to attack our country’s critical infrastructure will face the full force of the U.S. Department of Justice,” said Attorney General Merrick B. Garland. “Sarah Beth Clendaniel sought to ‘completely destroy’ the city of Baltimore by targeting five power substations as a means of furthering her violent white supremacist ideology. She will now spend the next 18 years in federal prison. The Justice Department will continue to aggressively counter, disrupt, and prosecute those who seek to launch these kinds of hate-fueled attacks that target our critical infrastructure, endanger entire cities, and threaten our national security.” 

“The defendant plotted to disable the power grid around the entire Baltimore region and cause harm to thousands of people in pursuit of a racially motivated violent extremist agenda,” said FBI Director Christopher Wray. “Her plan failed thanks to the great work of the FBI and our law enforcement partners. Today’s sentencing should serve as a warning to others that you will be held accountable if you attempt to carry out violent attacks on our infrastructure or threaten the safety of those in our communities.”

“Such cowardice, designed to disrupt and endanger the lives of Maryland’s citizens, will not be tolerated,” said U.S. Attorney Erek L. Barron for the District of Maryland. “My office remains committed to protecting the security and well-being of the community by prosecuting such conduct to the full extent of the law.”

According to her plea agreement and other court documents, in 2018, Clendaniel became acquainted with Brandon C. Russell, a Florida resident, who is currently charged with conspiracy to damage or destroy electrical facilities in Maryland and is awaiting trial. Clendaniel and Russell espouse a white supremacist ideology and advocate a concept known as “accelerationism.” To “accelerate” or to support “accelerationism” is based on a white supremacist belief that the current system is irreparable and without an apparent political solution, and therefore violent action is necessary to precipitate societal and government collapse.

According to court documents, from at least December 2022 through February 2023, Clendaniel conspired with Russell 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.

As set forth in her plea agreement, Clendaniel admitted that she communicated and planned over encrypted communication applications (ECA) to carry out attacks against energy facilities. Russell and Clendaniel communicated their plans to commit an attack on the Baltimore region power grid to a confidential human source (CHS-1).

Their plans began to coalesce on Jan. 12, 2023, when CHS-1 and Russell discussed the planned substation attack in Maryland with a goal of working with Clendaniel to “maximize impact” and “to coordinate to get multiple [substations] at the same time.” Later that same day, Clendaniel, using the moniker “Nythra88,” sent a message to CHS-1 on ECA confirming her support of the attack.

In the ensuing conversation, which continued through Jan. 14, 2023, Clendaniel told CHS-1 that she lived near Baltimore. She also stated that she was a felon, and had previously, but unsuccessfully, attempted to obtain a rifle. She asked CHS-1 to purchase a rifle for her, stating that she wanted to “accomplish something worthwhile” and that she wanted the rifle “within the next couple of weeks” to “accomplish as much as possible before June, at the latest.” On Jan. 18, 2023, on ECA, Clendaniel told CHS-1 that she had identified a few potential locations to target in her attack. CHS-1 stated that CHS-1 would have to be the “driver” and Clendaniel would have to be the “shooter” in the attack. Clendaniel confirmed that she was “determined to do this” and stated she would have done something earlier on her own if she had not lost her rifle “a few months ago.” The conversation continued with CHS-1 and Clendaniel discussing the specifics of the desired rifle and agreeing that Clendaniel would send CHS-1 a “wish list,” which she did the following day.

At various times from Jan. 21, 2023, through Jan. 29, 2023, CHS-1 exchanged encrypted messages, separately with Clendaniel and with Russell, in which they discussed in detail the rifle and specific firearms accessories that Clendaniel wanted and potential targets for their attack.

On Jan. 29, 2023, Clendaniel told CHS-1 that the five substations she planned to target included “Norrisville, Reisterstown, and Perry Hall.” Clendaniel described how there was a “ring” around Baltimore and if they hit a number of them all in the same day, they “would completely destroy this whole city.” She added that they needed to “destroy those cores, not just leak the oil . . . ” and that a “good four or five shots through the center of them . . . should make that happen.” Further, she stated that: “[i]t would probably permanently completely lay this city to waste if we could do that successfully.” When CHS-1 asked if it would accomplish a “cascading failure,” Clendaniel replied, “[y]es . . . probably” and that the attack targets are all “major ones.” Clendaniel also said that the most difficult target that they would have to do together has “fire walls on three sides.”

During that conversation, Clendaniel sent CHS-1 five links to the “Open Infrastructure Map” which showed the locations of five specific Baltimore, Gas and Electric (BGE) electrical substations in Maryland. BGE is an energy company that utilizes substations, like the five targeted sites, to produce, convert, transform, regulate and distribute energy. Three of the five substations were located near the towns of Norrisville, Reisterstown, and Perry Hall. The remaining two substations were in the vicinity of Baltimore City. Each location is a BGE substation with significant infrastructure.

On or about Jan. 31, 2023, Russell discussed with CHS-1 the attack of the targeted substations on ECA, including how to “make sure it’s done right,” how “it has been studied,” and how to make it “cascading” so as to maximize damage. Russell and Clendaniel believed that attacking these five electrical substations in the greater Baltimore area would serve accelerationism.

On Feb. 3, 2023, law enforcement agents executed a search warrant at Clendaniel’s residence in Catonsville, Maryland. During the search, law enforcement agents recovered from Clendaniel’s bedroom various firearms and hundreds of rounds of ammunition. Federal law prohibits Clendaniel from possessing these items because she is a convicted felon, including convictions in Cecil County, Maryland, for robbery in 2006 and robbery and attempted robbery in 2016.

The FBI investigated the case.

Assistant U.S. Attorneys Kathleen O. Gavin and Michael Aubin for the District of Maryland prosecuted the case with valuable assistance from the National Security Division’s Counterterrorism Section.

The U.S. Attorney’s Office for the District of Maryland is a partner in the Justice Department’s United Against Hate community outreach program. The United Against Hate initiative seeks to directly connect federal, state, and local law enforcement with traditionally marginalized communities in order to build trust and encourage the reporting of hate crimes and hate incidents. Attorney General Garland announced the nationwide launch of the initiative and its expansion to all 94 U.S. Attorneys’ Offices.

Baltimore, Maryland – On September 25, 2024, Senior United States District Judge James K. Bredar sentenced Sarah Beth Clendaniel, a Catonsville, Maryland resident, to 18 years in federal prison, followed by a lifetime of supervised release, for conspiring to damage or destroy electrical facilities in Maryland, 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).

The sentence 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.

“Such cowardice, designed to disrupt and endanger the lives of Maryland’s citizens, will not be tolerated,” said Erek L. Barron, United States Attorney for the District of Maryland. “My Office remains committed to protecting the security and well-being of the community by prosecuting such conduct to the full extent of the law.”

“Those who seek to attack our country’s critical infrastructure will face the full force of the United States Department of Justice,” said Attorney General Merrick B. Garland. “Sarah Beth Clendaniel sought to ‘completely destroy’ the city of Baltimore by targeting five power substations as a means of furthering her violent white supremacist ideology. She will now spend the next 18 years in federal prison. The Justice Department will continue to aggressively counter, disrupt, and prosecute those who seek to launch these kinds of hate-fueled attacks that target our critical infrastructure, endanger entire cities, and threaten our national security.”  

“The defendant plotted to disable the power grid around the entire Baltimore region and cause harm to thousands of people in pursuit of a racially motivated violent extremist agenda,” said FBI Director Christopher Wray. “Her plan failed thanks to the great work of the FBI and our law enforcement partners.  Today’s sentencing should serve as a warning to others that you will be held accountable if you attempt to carry out violent attacks on our infrastructure or threaten the safety of those in our communities.”

“Sarah Beth Clendaniel engaged in a hate-filled scheme to destroy the infrastructure Marylanders rely on every day,” said Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office. “Through rigorous investigation and law enforcement partnerships, her radical plan was halted. Today’s sentence underscores the FBI’s commitment to protecting our national security and holding accountable those conspiring to commit violence.”

According to her plea agreement and other court documents, in 2018, Clendaniel became acquainted with Brandon C. Russell, a Florida resident, who is currently charged with conspiracy to damage or destroy electrical facilities in Maryland and is awaiting trial. Clendaniel and Russell espouse a white supremacist ideology and advocate a concept known as “accelerationism.” To “accelerate” or to support “accelerationism” is based on a white supremacist belief that the current system is irreparable and without an apparent political solution, and therefore violent action is necessary to precipitate societal and government collapse.

According to court documents, from at least December 2022 through February 2023, Clendaniel conspired with Russell 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.

As set forth in her plea agreement, Clendaniel admitted that she communicated and planned over encrypted communication applications (“ECA”) to carry out attacks against energy facilities. Russell and Clendaniel communicated their plans to commit an attack on the Baltimore region power grid to a confidential human source (“CHS-1”).

Their plans began to coalesce on January 12, 2023, when CHS-1 and Russell discussed the planned substation attack in Maryland with a goal of working with Clendaniel to “maximize impact” and “to coordinate to get multiple [substations] at the same time.” Later that same day, Clendaniel, using the moniker “Nythra88,” sent a message to CHS-1 on ECA confirming her support of the attack.

In the ensuing conversation, which continued through January 14, 2023, Clendaniel told CHS-1 that she lived near Baltimore. She also stated that she was a felon, and had previously, but unsuccessfully, attempted to obtain a rifle. She asked CHS-1 to purchase a rifle for her, stating that she wanted to “accomplish something worthwhile” and that she wanted the rifle “within the next couple of weeks” to “accomplish as much as possible before June, at the latest.” On January 18, 2023, on ECA, Clendaniel told CHS-1 that she had identified a few potential locations to target in her attack. CHS-1 stated that CHS-1 would have to be the “driver” and Clendaniel would have to be the “shooter” in the attack. Clendaniel confirmed that she was “determined to do this” and stated she would have done something earlier on her own if she had not lost her rifle “a few months ago.” The conversation continued with CHS-1 and Clendaniel discussing the specifics of the desired rifle and agreeing that Clendaniel would send CHS-1 a “wish list,” which she did the following day.

At various times from January 21, 2023 through January 29, 2023, CHS-1 exchanged encrypted messages, separately with Clendaniel and with Russell, in which they discussed in detail the rifle and specific firearms accessories that Clendaniel wanted and potential targets for their attack.

On January 29, 2023, Clendaniel told CHS-1 that the five substations she planned to target included “Norrisville, Reisterstown, and Perry Hall.”  Clendaniel described how there was a “ring” around Baltimore and if they hit a number of them all in the same day, they “would completely destroy this whole city.” She added that they needed to “destroy those cores, not just leak the oil . . . ” and that a “good four or five shots through the center of them . . . should make that happen.” Further, she stated that: “[i]t would probably permanently completely lay this city to waste if we could do that successfully.” When CHS-1 asked if it would accomplish a “cascading failure,” Clendaniel replied, “[y]es . . . probably” and that the attack targets are all “major ones.” Clendaniel also said that the most difficult target that they would have to do together has “fire walls on three sides.”

During that conversation, Clendaniel sent CHS-1 five links to the “Open Infrastructure Map” which showed the locations of five specific Baltimore, Gas and Electric (“BGE”) electrical substations in Maryland. BGE is an energy company that utilizes substations, like the five targeted sites, to produce, convert, transform, regulate and distribute energy. Three of the five substations were located near the towns of Norrisville, Reisterstown, and Perry Hall. The remaining two substations were in the vicinity of Baltimore City. Each location is a BGE substation with significant infrastructure.

On or about January 31, 2023, Russell discussed with CHS-1 the attack of the targeted substations on ECA, including how to “make sure it’s done right,” how “it has been studied,” and how to make it “cascading” so as to maximize damage. Russell and Clendaniel believed that attacking these five electrical substations in the greater Baltimore area would serve accelerationism.

On February 3, 2023, law enforcement agents executed a search warrant at Clendaniel’s residence in Catonsville, Maryland.  During the search, law enforcement agents recovered from Clendaniel’s bedroom various firearms and hundreds of rounds of ammunition.  Federal law prohibits Clendaniel from possessing these items because she is a convicted felon, including convictions in Cecil County, Maryland for Robbery in 2006 and Robbery and Attempted Robbery in 2016.

U.S. Attorney Barron commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Kathleen O. Gavin and Michael Aubin who are prosecuting the federal case.

The U.S. Attorney’s Office for the District of Maryland is a partner in the U.S. Department of Justice’s United Against Hate community outreach program.  The United Against Hate initiative seeks to directly connect federal, state and local law enforcement with traditionally marginalized communities in order to build trust and encourage the reporting of hate crimes and hate incidents.  Department of Justice Attorney General Merrick B. Garland announced the nationwide launch of the initiative and its expansion to all 94 U.S. Attorneys’ Offices.

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.

Greenbelt, Maryland – A Silver Spring, Maryland man pleaded guilty today before U.S. District Court Judge Deborah L. Boardman to distribution of fentanyl resulting in the death of a Bethesda, Maryland minor victim in January 2022.

The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Washington Division; Chief Marc R. Yamada of the Montgomery County Police Department; and Chief Victor Brito of the Rockville City Police Department.

According to court documents, Mikiyas Kefyalew, 26, knowingly and intentionally distributed to Victim 1 a quantity of a mixture and substance containing a detectable amount of fentanyl and 4-Anilino-N-phenethlpipeerdine (“despropionyl fentanyl”), each a Schedule II controlled substance, with death resulting from Victim 1’s use of such substance.  At the time of Victim 1’s death, Victim 1 was 16 years old.  On the evening of January 16, 2022, Victim 1 had contacted Kefyalew by Snapchat message in order to obtain “Percs.”  Although originally referring to Percocets (a combination medicine containing oxycodone hydrochloride and acetaminophen), “Percs” is a common slang term used to reference pills which are circular, blue in color and imprinted with “M 30”—mimicking the markings on legitimate pills that one would receive from a manufacturer containing oxycodone hydrochloride.  Victim 1 provided the address of the residence where he was spending the evening, and Kefyalew drove to that address. Victim 1 left the residence, met with Kefyalew at Kefyalew’s vehicle, and purchased two “Percs” from Kefyalew.  Victim 1 later was driven home and interacted with family members before going to bed. The next morning, Victim 1 was found deceased. 

With the assistance of Victim 1’s family members, law enforcement officers also located a small blue pill stamped with “M 30” near where Victim 1 was found.  The pill appeared to be a 30 mg oxycodone hydrochloride pill but was tested by a forensic chemist at the Montgomery County Police Department Forensic Laboratory and produced positive results for both fentanyl and despropionyl fentanyl. 

According to autopsy results, Victim 1’s cause of death was fentanyl and despropionyl fentanyl intoxication.  Victim 1 was otherwise healthy.

On August 21, 2021, Kefyalew had been issued a criminal citation for possession of marijuana over 10 grams.  In that case, a round blue pill stamped with “M 30” was located in the baggie of marijuana that was located in the rear passenger area of the vehicle where Kefyalew was seated. That pill was tested by a forensic chemist at the Montgomery County Police Department Forensic Laboratory and, like the similar blue pill in this case, produced positive results for both fentanyl and despropionyl fentanyl.  Messages retrieved from Kefyalew’s cell phones confirmed the dangers of overdoses posed by “Percs” and Kefyalew’s knowledge that these pills contained fentanyl. 

Based upon these pills’ purporting to be oxycodone hydrochloride pills, Kefyalew knowingly misrepresented or knowingly marketed the fentanyl pills as oxycodone hydrochloride, or “Percs.”  The pills distributed and possessed by Kefyalew purported to be oxycodone hydrochloride in that they were small light blue pills stamped with “M” and “30” to match legitimate oxycodone hydrocholoride 30 milligram pills when, in fact, they contained fentanyl and despropionyl fentanyl instead of oxycodone hydrochloride.

Kefyalew knew that Victim 1 was a vulnerable victim based on Victim 1’s appearance, school attendance and age, i.e., that he was less than 18 years old. 

Kefyalew is scheduled to be sentenced on January 28, 2025 at 10 a.m. and faces a maximum penalty of 20 years in federal prison. 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.

U. S. Attorney Barron commended the DEA, the Montgomery County Police Department, and the Rockville Police Department for their work in the investigation and thanked the Metropolitan Police Department, the Prince George’s County Police Department, and the Montgomery County State's Attorney’s Office for their assistance.  Mr. Barron thanked Assistant U.S. Attorneys Elizabeth Wright and Joel Crespo, 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.

# # #

Greenbelt, Maryland – Newton Ofioritse Jemide, a Nigerian national, was extradited from France to the United States on September 13, 2024 to face federal charges for wire fraud and money laundering conspiracies in a scheme to fraudulently obtain federal benefits.  Jemide had his initial appearance on September 16, 2024, and is currently detained pending trial. 

The extradition was announced by Philip Selden, First Assistant United States Attorney for the District of Maryland; Special Agent in Charge Mark I. Tasky of the Department of Homeland Security (DHS) – Office of Inspector General; Special Agent in Charge Colleen Lawlor of the Social Security Administration (SSA) Office of Inspector General; Special Agent in Charge Matthew R. Stohler of the U.S. Secret Service – Washington Field Office; Andrew McKay, Treasury Inspector General for Tax Administration (TIGTA). 

During the time period covered by the indictment, the Federal Emergency Management Agency (FEMA) was responsible for providing emergency benefits and compensation for damage to victims who were affected by declared national emergency disasters, such as hurricanes and wildfires.  Among other benefits, an individual in an area affected by a national disaster was immediately eligible for “Critical Needs Assistance” (CNA) to purchase life-saving or life sustaining materials.  The assistance was paid to the victim in a manner of his/her choosing, including being deposited onto pre-paid debit cards.

According to the two-count indictment, from 2016 through 2018 Jemide’s co-conspirators purchased hundreds of Green Dot debit cards, which they then registered with Green Dot, using the stolen personal information of identity theft victims from around the country.  In 2017, amidst Hurricanes Harvey, Irma and Maria, and the California wildfires, co-conspirators allegedly applied online with FEMA for CNA using the stolen personal information of additional identity theft victims. According to the indictment, FEMA paid at least $8 million in amounts of $500 per claim to the Green Dot debit cards purchased by the co-conspirators.

In addition to filing false disaster-assistance claims with FEMA, the indictment alleges that co-conspirators also filed false claims online for Social Security benefits, for IRS tax refunds and for other government benefits, using the stolen identities of multiple additional individuals, including names, addresses, Social Security Numbers (“SSN”) and other personal identifiers.

The indictment alleges that FEMA, and the other federal agencies to whom fraudulent applications for benefits were submitted, deposited the falsely claimed benefits directly onto the Green Dot debit cards. After the funds were placed onto the Green Dot debit cards, Jemide and his co-conspirators then informed other conspirators that funds were available on the cards, and provided information to facilitate “cashing out” the funds from the cards, which co-conspirators did in exchange for a commission.  The co-conspirators cashed out the cards by depositing the money into bank accounts, and/or through ATM withdrawals or purchases of money orders.

According to the indictment, the co-conspirators took steps to conceal their identities and the conspiracy and scheme to defraud, including by enlisting other individuals to make the purchases and withdrawals with the cards, utilizing multiple store and bank locations and methods of withdrawal, using multiple bank accounts (including in the names of corporate entities), converting funds into cash rather than placing them into bank accounts, and making money orders payable to other individuals and/or corporate entities which they or their co-conspirators controlled.

Jemide and his co-conspirators allegedly used an encrypted messaging application, e-mail and other means to communicate, and used the stolen federal funds to pay rental and housing expenses, to purchase used vehicles, and for other purposes.

If convicted, Jemide faces a maximum sentence of 30 years in federal prison for conspiracy to commit wire fraud and a maximum of 20 years in federal prison for conspiracy to commit money laundering.  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 until proven guilty at some later criminal proceeding.

First Assistant U.S. Attorney Selden commended the DHS OIG, SSA OIG, USSS, TIGTA and French authorities for their work in the investigation and thanked the Justice Department’s Office of International Affairs and the United States Marshal’s Service for their valuable assistance to secure the extradition of Jemide to the United States.  Mr. Selden thanked Assistant U.S. Attorneys Elizabeth Wright and Darren Gardner, 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 – On Monday, September 16, 2024, the Honorable Deborah L. Boardman sentenced Ejike Asiegbunam, age 55, of Upper Marlboro, Maryland to 21 months in federal prison, followed by two years of supervised release, for conspiracy to commit wire fraud.  Judge Boardman also ordered Asiegbunam to forfeit $1,662,732 that Asiegbunam personally received as a result of the fraud.

The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Maureen Dixon of the Department of Health and Human Services, Office of the Inspector General.

According to Asiegbunam’s plea agreement, Asiegbunam conspired with others to sell fraudulent nursing diplomas and educational transcripts to individuals (“purchasers”), and assisted the purchasers in fraudulently obtaining nursing licensure, which the purchasers needed to obtain employment in the healthcare field.  Asiegbunam owned and operated Nursing School 2, which was not licensed to offer LPN degrees.  In addition, many students received RN degrees from Nursing School 2 without attending labs, classes, or completing required clinical assignments. 

Specifically, between approximately January 2018 and June 2021, Asiegbunam and his co-conspirators recruited potential purchasers in Maryland and elsewhere who were looking to obtain nursing degrees.  Asiegbunam sold purchasers false and fraudulent Nursing School 2 documents, which Asiegbunam signed as the owner of Nursing School 2.  In addition, students paid Asiegbunam and others to complete required prerequisites to enter the nursing program at Nursing School 2. Asiegbunam generally charged purchasers between $15,000 and $22,000 for false and fraudulent Nursing School 2 documents.  Asiegbunam also generally charged approximately $5,000 to complete online prerequisites.  In total, Asiegbunam sold false and fraudulent Nursing School 2 documents in exchange for at least $1,390,332. 

In addition, between in or around February 2018 and December 2018, Asiegbunam conspired with Johanah Napoleon, who resided in Florida, to sell false and fraudulent RN degrees from Palm Beach School of Nursing, located in Florida, to individuals located in Maryland and New York.  Asiegbunam would send student grades from Maryland to the registrar for the Palm Beach School of Nursing in Florida, via interstate wire, and in exchange would receive transcripts purportedly from the Palm Beach School of Nursing (despite the individuals not attending the school).  When Asiegbunam sold a student a degree from Palm Beach School of Nursing, the student paid the school directly, and the school, in turn, paid Asiegbunam 40 percent of the tuition as payment for recruiting the student.  In total, Asiegbunam received approximately $272,400 from the Palm Beach School of Nursing. 

By providing false and fraudulent documents, Asiegbunam and his co-conspirators assisted the purchasers of the false and fraudulent documents to obtain fraudulent nursing licenses from state licensing agencies, including the Maryland Board of Nursing, and ultimately employment in the healthcare field.  The scheme thus allowed individuals who had not completed the necessary coursework to apply for licensure and to practice as nurses.  The scheme therefore exposed patients in Maryland and elsewhere to potential harm and Asiegbunam and his co-conspirators consciously and recklessly exposed these patients to the risk of death or serious bodily injury. 

United States Attorney Erek L. Barron commended the FBI and the HHS-OIG for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Kelly O. Hayes, who is prosecuting the federal case.

If you have information to report regarding this case or any other case involving falsified medical degrees, please call the FBI hotline: (410) 277-6999.

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 – Earlier today, the Justice Department filed a civil claim in the U.S. District Court for the District of Maryland against Grace Ocean Private Limited and Synergy Marine Private Limited, the Singaporean corporations that owned and operated the container ship that destroyed the Francis Scott Key Bridge.

In the early morning hours of March 26, the Motor Vessel DALI left the Port of Baltimore bound for Sri Lanka. While navigating through the Fort McHenry Channel, the vessel lost power, regained power, and then lost power again before striking the bridge. The bridge collapsed and plunged into the water below, tragically killing six people. In addition to this heartbreaking loss of life, the wreck of the DALI and the remnants of the bridge obstructed the navigable channel and brought all shipping into and out of the Port of Baltimore to a standstill. The loss of the bridge also severed a critical highway in our transportation infrastructure and a key artery for local commuters.

The suit seeks to recover over $100 million in costs the United States incurred in responding to the fatal disaster and for clearing the entangled wreck and bridge debris from the navigable channel so the port could reopen.

“The Justice Department is committed to ensuring accountability for those responsible for the destruction of the Francis Scott Key Bridge, which resulted in the tragic deaths of six people and disrupted our country’s transportation and defense infrastructure,” said Attorney General Merrick B. Garland. “With this civil claim, the Justice Department is working to ensure that the costs of clearing the channel and reopening the Port of Baltimore are borne by the companies that caused the crash, not by the American taxpayer.”

The United States led the response efforts of dozens of federal, state, and local agencies to remove about 50,000 tons of steel, concrete, and asphalt from the channel and from the DALI itself. While these removal operations were underway, the claim alleges that the United States also cleared a series of temporary channels to start relieving the bottleneck at the port and mitigate some of the economic devastation caused by the DALI. The Fort McHenry Channel was cleared by June 10, and the Port of Baltimore was once again open for commercial navigation.

“The owner and operator of the DALI were well aware of vibration issues on the vessel that could cause a power outage. But instead of taking necessary precautions, they did the opposite,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “Out of negligence, mismanagement, and, at times, a desire to cut costs, they configured the ship’s electrical and mechanical systems in a way that prevented those systems from being able to quickly restore propulsion and steering after a power outage.  As a result, when the DALI lost power, a cascading set of failures led to disaster.”

Indeed, the lawsuit specifically asserts that none of the four means that should have been available to help steer the DALI — the propeller, rudder, anchor, or bow thruster — worked when they were needed to avert or even mitigate this disaster.

“In so many ways, the Key Bridge has symbolized the resilience of both the State of Maryland and our Nation. In a very real way, the Key Bridge was a pathway to the American Dream. A part of our culture is gone,” said U.S. Attorney for the District of Maryland, Erek L. Barron. “Those responsible for the Key Bridge collapse will be held accountable.” 

“This was an entirely avoidable catastrophe, resulting from a series of eminently foreseeable errors made by the owner and operator of the DALI.  The suit seeks to recover the costs incurred by the United States in responding to this disaster, which include removing the bridge parts from the channel and those parts that were entangled with the vessel, as well as abating the substantial risk of oil pollution,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. 

The Justice Department’s claim also seeks punitive damages to deter the owner and operator of the DALI and others. During a press call announcing the Justice Department’s actions, Acting Deputy Assistant Attorney General Chetan Patil explained, “This accident happened because of the careless and grossly negligent decisions made by Grace Ocean and Synergy, who recklessly chose to send an unseaworthy vessel to navigate a critical waterway and ignored the risks to American lives and the nation’s infrastructure.”

The Department’s claim is part of a legal action the owner and operator of the DALI initiated shortly after the tragedy, in which they seek exoneration or limitation of their liability to approximately $44 million. 

“Wholly preventable failures by the owner and operator of the DALI caused this tragic incident that cost six bridge construction workers their lives and closed one of the largest ports on the East Coast,” said Rear Admiral Laura M. Dickey, Deputy for Operations Capability and Policy, U.S. Coast Guard.  “The Coast Guard quickly responded by establishing a Unified Command with federal, state, and local stakeholders to rapidly open alternative channels and restore the Port of Baltimore to full operations in just over two months.  We stand ready to support the Department of Justice to ensure that those responsible for this tragedy pay the costs of reopening the Port.” 

The claim on behalf of the United States does not include any damages for the reconstruction of the Francis Scott Key Bridge. The State of Maryland built, owned, maintained, and operated the bridge, and attorneys on the State’s behalf may file their own claim for those damages.  Subsequently, pursuant to the governing regulation, funds recovered by the State of Maryland for reconstruction of the bridge will be used to reduce the project costs paid by federal taxpayer dollars.

The United States is represented in the filed action by attorneys from the Civil Division’s Aviation, Space & Admiralty Litigation section and from the U.S. Attorney’s Office for the District of Maryland, Baltimore Division.

The claims alleged by the United States are allegations only. There has been no determination of liability.

The Justice Department filed a civil claim today in the U.S. District Court for the District of Maryland against Grace Ocean Private Limited and Synergy Marine Private Limited, the Singaporean corporations that owned and operated the container ship that destroyed the Francis Scott Key Bridge.

In the early morning hours of March 26, the Motor Vessel DALI left the Port of Baltimore bound for Sri Lanka. While navigating through the Fort McHenry Channel, the vessel lost power, regained power, and then lost power again before striking the bridge. The bridge collapsed and plunged into the water below, tragically killing six people. In addition to this heartbreaking loss of life, the wreck of the DALI and the remnants of the bridge obstructed the navigable channel and brought all shipping into and out of the Port of Baltimore to a standstill. The loss of the bridge also severed a critical highway in our transportation infrastructure and a key artery for local commuters.

The suit seeks to recover over $100 million in costs the United States incurred in responding to the fatal disaster and for clearing the entangled wreck and bridge debris from the navigable channel so the port could reopen.

“The Justice Department is committed to ensuring accountability for those responsible for the destruction of the Francis Scott Key Bridge, which resulted in the tragic deaths of six people and disrupted our country’s transportation and defense infrastructure,” said Attorney General Merrick B. Garland. “With this civil claim, the Justice Department is working to ensure that the costs of clearing the channel and reopening the Port of Baltimore are borne by the companies that caused the crash, not by the American taxpayer.”

The United States led the response efforts of dozens of federal, state, and local agencies to remove about 50,000 tons of steel, concrete, and asphalt from the channel and from the DALI itself. While these removal operations were underway, the claim alleges that the United States also cleared a series of temporary channels to start relieving the bottleneck at the port and mitigate some of the economic devastation caused by the DALI. The Fort McHenry Channel was cleared by June 10, and the Port of Baltimore was once again open for commercial navigation.

“The owner and operator of the DALI were well aware of vibration issues on the vessel that could cause a power outage. But instead of taking necessary precautions, they did the opposite,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “Out of negligence, mismanagement, and, at times, a desire to cut costs, they configured the ship’s electrical and mechanical systems in a way that prevented those systems from being able to quickly restore propulsion and steering after a power outage. As a result, when the DALI lost power, a cascading set of failures led to disaster.”

Indeed, the lawsuit specifically asserts that none of the four means that should have been available to help steer the DALI — the propeller, rudder, anchor, or bow thruster — worked when they were needed to avert or even mitigate this disaster.

“This was an entirely avoidable catastrophe, resulting from a series of eminently foreseeable errors made by the owner and operator of the DALI,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. "The suit seeks to recover the costs incurred by the United States in responding to this disaster, which include removing the bridge parts from the channel and those parts that were entangled with the vessel, as well as abating the substantial risk of oil pollution.”

“In so many ways, the Key Bridge has symbolized the resilience of both the State of Maryland and our Nation. In a very real way, the Key Bridge was a pathway to the American Dream. A part of our culture is gone,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Those responsible for the Key Bridge collapse will be held accountable.” 

The Justice Department’s claim also seeks punitive damages to deter the owner and operator of the DALI and others. During a press call announcing the Justice Department’s actions, Acting Deputy Assistant Attorney General Chetan Patil of the Civil Division explained, “This accident happened because of the careless and grossly negligent decisions made by Grace Ocean and Synergy, who recklessly chose to send an unseaworthy vessel to navigate a critical waterway and ignored the risks to American lives and the nation’s infrastructure.”

The Department’s claim is part of a legal action the owner and operator of the DALI initiated shortly after the tragedy, in which they seek exoneration or limitation of their liability to approximately $44 million.  

“Wholly preventable failures by the owner and operator of the DALI caused this tragic incident that cost six bridge construction workers their lives and closed one of the largest ports on the East Coast,” said Rear Admiral Laura M. Dickey, Deputy for Operations Capability and Policy of the U.S. Coast Guard. “The Coast Guard quickly responded by establishing a Unified Command with federal, state, and local stakeholders to rapidly open alternative channels and restore the Port of Baltimore to full operations in just over two months. We stand ready to support the Justice Department to ensure that those responsible for this tragedy pay the costs of reopening the Port.”  

The claim on behalf of the United States does not include any damages for the reconstruction of the Francis Scott Key Bridge. The State of Maryland built, owned, maintained, and operated the bridge, and attorneys on the State’s behalf may file their own claim for those damages. Subsequently, pursuant to the governing regulation, funds recovered by the State of Maryland for reconstruction of the bridge will be used to reduce the project costs paid by federal taxpayer dollars.

The United States is represented in the filed action by attorneys from the Civil Division’s Aviation, Space & Admiralty Litigation Section and from the U.S. Attorney’s Office for the District of Maryland, Baltimore Division.

The claims alleged by the United States are allegations only. There has been no determination of liability.

Complaint

 Baltimore, Maryland – On September 17, 2024, U.S. District Judge James K. Bredar sentenced David Warren, a/k/a “Meshawn,” age 32, of Baltimore to 467 months in federal prison, followed by 5years of supervised release, for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (“BGF”) gang. 

The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; and Chief Robert McCullough of the Baltimore County Police Department.

According to his plea agreement and other court documents, beginning in 2015 Warren was a member and associate of the BGF, also known as “Jamaa,” and participated in the BGF criminal enterprise, including a murder and a drug distribution conspiracy; further, Warren was a “hit man” accepting money in exchange for murdering others.  BGF is a nationwide gang which began operating in prisons and is now involved in criminal activity, including murder, murder-for-hire, robbery, extortion, drug trafficking, obstruction of justice and witness intimidation, in cities throughout the United States, including Baltimore and throughout Maryland. 

As detailed in his plea agreement, in May 2015, at the direction of a BGF leader, Warren and others fired upon a group of rivals who were attending a candlelight vigil for a deceased rival in east Baltimore.  One man was shot during the attack and survived.  A year later in May 2016, again at the behest of a BGF leader, Warren and a co-conspirator attempted to murder another rival and received a portion of an $8,000 payment in exchange for the attempt.  Two weeks later, on Memorial Day weekend, Warrant attempted to murder a rival drug dealer at a holiday barbeque in north Baltimore.  The man and four others were shot and survived but all sustained injuries.

In or about 2018, Warren became a hit man for co-defendant Davante Harrison, a/k/a “YGG Tay.”  Between February and August 2018, Warren and others targeted three of Harrison’s rivals.   On April 4, 2018, Warren and co-conspirators sought to locate and murder one of Harrison’s rivals at a residence of Chanette Neal and Justice Allen, the sister and mother of the rival.  Not finding the rival at the residence, Warren and co-conspirators murdered Neal and Allen using a .357 caliber handgun.  Later that day, Warren messaged a female associate and wrote that he was “waiting on the bag” meaning payment for the murder. 

Additionally, on August 7, 2018 Warren and two co-conspirators, including co-defendant Wayne Prince, attempted to murder another rival of Harrison at a home that the rival owned and was having renovated.  A construction crew was on site at the time.  During the attempted murder, Prince and a co-conspirator shot and killed one of the construction workers, Bryan McKemy, using a .40 caliber handgun.  They also shot a second construction worker in the head, but that person survived the attack.  Afterwards, Warren messaged another that he was “waiting on a bag” indicating again that he anticipated being paid for the murder.

This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN).  NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.  NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.  For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.

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 case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

United States Attorney Barron commended the ATF, the FBI, the Baltimore City Police Department, and the Baltimore County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Ari D. Evans, Patricia C. McLane, and Kim Y. Hagan 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 https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.

Greenbelt, Maryland –United States District Judge Paula Xinis sentenced Lavar William Henderson, age 46, of Richmond, Virginia to 90 months and 3 years of supervised release after he was found guilty of being a felon in possession of a firearm and ammunition.

The sentence was announced by Erek L. Barron, United States 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; Chief Jessica M. E. Taylor of the United States Park Police, and Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police.

According to the guilty plea, on October 26, 2022, Henderson illegally possessed a 9mm pistol, loaded with 14 rounds of ammunition.  On that day, United States Park Police officers were alerted to be on the lookout for a black Jaguar driven by a man wearing a red hat, who was pointing a firearm with a red laser at other motorists.  A car matching that description passed a crash scene and officers at the scene followed, then conducted a traffic stop of the vehicle.  Henderson was arrested. 

Multiple witnesses observed Henderson point the Sig Sauer pistol equipped with a laser at motorists that day. Witnesses were driving in a truck on Interstate 495 near Forestville Road in District Heights, Maryland. While doing so, Henderson pulled his car alongside their truck and flashed a firearm with a laser attachment at them. Henderson then pulled directly in front of the victims’ truck and came to a complete stop before proceeding again. Henderson did this several times before coming to a complete stop near Forestville Road, forcing the victims to also stop their truck. Henderson then got out of his care and began screaming at the victims. Henderson also began beating on the window of their truck, asking the victims if they wanted to fight. Henderson then went back to his black Jaguar and pulled a handgun from inside and pointed it at the window of the truck. The handgun had a red laser. Henderson then got back inside of the black Jaguar and drove away at a high rate of speed.

Another witness came in contact with Henderson while they were both driving on the Baltimore-Washington Parkway. This witness was driving her car in the right lane, and when she attempted to merge into traffic, Henderson in his black Jaguar attempted to pass by on the left. He then honked his horn at the witness numerous times and refused to allow her to merge into traffic. Henderson pulled along the left side of the victim’s’ car, scratching the car from the front side panel to the back side panel. Henderson then pointed a gun at the driver through the driver’s window and shouted obscenities. He then drove away, further damaging the side of the victim’s car as he did so. 

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, the U.S. Park Police, and the Maryland State Police for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney LaShanta Harris and Assistant U.S. Attorney Patrick Kibbe, 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-psnexile and https://www.justice.gov/usao-md/community-outreach.

Baltimore, Maryland – Today, Tavoy Farquharson, age 32, had an initial appearance in the U.S. District Court for the Eastern District of New York on a criminal complaint filed in the District of Maryland, charging the defendant with conspiracy to commit mail fraud in connection with a lottery scheme,

The criminal complaint was announced by Erek L. Barron, United States Attorney for the District of Maryland; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Javan Wilson of the U.S. Treasury, Office of Inspector General (Treasury OIG); and Chief Malik Aziz of the Prince George’s County Police Department.

According to the complaint, from at least March 2023 through July 2023, Farquharson and his co-conspirators contacted the victims by mail or over the phone and convinced them that they had won millions of dollars in a lottery or sweepstakes but were required to send payment in advance for taxes and other fees before they could receive their winnings.  Farquharson and his co-conspirators caused the victims to send payments for the purported taxes and other fees through wire transfer, by gift card, by sending cash or checks through the U.S. Mail, by other interstate commercial carrier, and by other payment methods.  According to the complaint, the victims lost at least $9.5 million to the lottery scheme.

Wayne and Dwayne Henry of Landover Hills, Maryland and Jamaican national Nickoy Campbell were charged previously with conspiracy to commit mail fraud as part of the same lottery scheme.

If convicted, Farquharson faces a maximum sentence of 20 years in federal prison for the mail fraud conspiracy.  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.  

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

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults.  If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps, including identifying appropriate reporting agencies, providing information to callers to assist them in reporting or connecting them with agencies, and providing resources and referrals on a case-by-case basis.  The hotline is staffed from 10:00 a.m. to 6:00 p.m. Monday through Friday.  English, Spanish, and other languages are available.  More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.  Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. 

U.S. Attorney Barron commended the U.S. Postal Inspection Service, HSI, Treasury OIG, and Prince George’s County Police Department for their work in the investigation and thanked the Social Security Administration Office of Inspector General, the Maryland State Police, the Baltimore County Police, the Anne Arundel County Police, the New York Police Department, and the Suffolk County Police Department for their assistance.  Mr. Barron thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Christine Goo, 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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U.S. Justice Department Designates Baltimore City Under Section 1103 of the Violence Against Women Act, Prioritizing Firearms Prosecutions of Domestic Violence Offenders and U.S. Attorney Pledges to Use the Designation and Additional Resources To Address Intimate Partner Violence Throughout Maryland

Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022. 

The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms. 

“The prevalence of intimate partner violence should trouble us all,” said U.S. Attorney Erek L. Barron, “We are more motivated than ever to address this problem and will use additional resources to protect victims, not only in Baltimore, but throughout Maryland.” 

“We are committed to working with our state and local partners to keep guns out of the hands of domestic abusers,” said ATF Baltimore Special Agent in Charge Toni M. Crosby.

The U.S. Attorney’s Office primarily addresses domestic violence as 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.  The office is guided by core principles, including 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.

Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.

The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders.  All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.  

Complete List of Jurisdictions as of September 11, 2024:
 

Montgomery County, Alabama

Jefferson County, Alabama

Little Rock, Arkansas

Washington County, Arkansas

Fresno, California

San Diego, California

Hartford, Connecticut

Ward 7, District of Columbia

Jacksonville, Florida

Alachua County, Florida

Metro Miami-Dade County, Florida

Macon-Bibb County, Georgia

DeKalb County, Georgia

Augusta, Georgia

City and County of Honolulu, Hawaii

Ada County, Idaho

Danville, Illinois

Rockford, Illinois

Madison County, Illinois

Gary, Indiana

Indianapolis, Indiana

Des Moines, Iowa

Linn County, Iowa

Garden City, Kansas

Fayette County, Kentucky

Louisville, Kentucky

Orleans Parish, Louisiana

Rapides Parish, Louisiana

Western Maine Region: Franklin, Oxford, and Androscoggin Counties, Maine

Baltimore City, Maryland

Boston, Massachusetts

Saginaw, Michigan

Lansing, Michigan

Greenville, Mississippi

Jackson, Mississippi

Cape Girardeau County, Missouri

Greene County, Missouri

Gallatin County and Bozeman, Montana

Northeast Omaha, Nebraska

Las Vegas, Nevada

Strafford County, New Hampshire

Bernalillo County, New Mexico

Borough of Brooklyn, New York

Onondaga County, New York

Borough and County of the Bronx, New York

Monroe County, New York

Fayetteville and Cumberland County, North Carolina

Forsyth County, North Carolina

Asheville (including Eastern Band of Cherokee Indians), North Carolina

Grand Forks, North Dakota

Toledo, Ohio

Muskogee County, Oklahoma

Muscogee (Creek) Nation, Oklahoma

Portland, Oregon

Philadelphia County, Pennsylvania

Dauphin County, Pennsylvania

Allegheny County, Pennsylvania

San Juan, Puerto Rico

Pawtucket, Rhode Island

Greenville County, South Carol

Pine Ridge Indian Reservation, South Dakota

City of Chattanooga, Tennessee

Memphis/Shelby County, Tennessee

Gregg County, Texas

Amarillo, Texas

Houston, Texas

San Antonio, Texas

Salt Lake County, Utah

South Hampton Roads (Chesapeake/Norfolk/Portsmouth/Virginia Beach), Virginia

Oswald Harris Court Housing Community, St. Thomas, U.S. Virgin Islands

Chittenden County, Vermont

Spokane County, Washington

King County, Washington

Wheeling Area (Ohio/Brooke/Hancock Counties), West Virginia

Kanawha County, West Virginia

Milwaukee, Wisconsin

Dane County, Wisconsin

Fremont County, Wyoming

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Greenbelt, Maryland – On Tuesday, September 10, 2024, the Honorable Lydia K. Griggsby sentenced Boie Barry, age 32, of Hyattsville, Maryland, to eight years in federal prison, followed by three years of supervised release, for possession of ammunition by a convicted felon and possession of controlled substances with intent to distribute.

The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland, Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and Chief Malik Aziz of the Prince George’s County Police Department.

According to the guilty plea, law enforcement officers were patrolling Hyattsville, Maryland in September of 2022, when they observed a vehicle parked in a handicap space without a handicap placard. Officers approached the vehicle, smelled and saw marijuana in the vehicle’s center console, and directed Barry, who had been sitting in the front passenger seat, to step out. As Barry stepped out, an officer saw a bulge in Barry’s front left pocket. The officer repeatedly directed Barry to keep his hands up, and when Barry eventually raised his hands, the officer saw a firearm in his waistband. Barry tried to flee but was stopped by other officers. Officers recovered a 9mm privately manufactured firearm bearing no apparent serial number, commonly known as a “ghost gun,” which was equipped with a laser sight and fully automatic switch and loaded with 32 rounds of ammunition. The switch allowed the firearm to fire in fully automatic mode, making it a machinegun. Officers also found bags in Barry’s front left pocket containing various controlled substances, including cocaine, cocaine base, methamphetamine, para-fluorofentanyl and fentanyl. They also found $1,565.75 on Barry’s person that were proceeds from his drug trafficking.

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 ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joshua Rosenthal and Patrick Kibbe, and Special Assistant U.S. Attorney Lanay Mitchell, 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 – Frederick Douglass Moorefield, Jr., age 63, of Arnold, Maryland, pleaded guilty today to federal charges of conspiracy to engage in animal fighting, specifically the fighting of dogs, and interstate travel in aid of racketeering.

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; 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 connections 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 their having been used in dogfighting.

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, Maryland to keep, train, and breed dogs for dogfighting for over 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.  In some exchanges, 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 a fight.  Other dogfighters would then propose a fight against their own dogs or match Moorefield with another of their contacts who had a dog in the same weight class.  The dogfighters would then agree 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 in the event that a dogfighter backed out of the fight before it was scheduled to take place.

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, not 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.  In the event that one of Moorefield’s dogs lost a fight but did not die, Moorefield killed that dog.  One method of killing employed by Moorefield involved the use of a device consisting 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 through CashApp related to his participation in dogfighting.  In some instances, transactions were given misleading labels in order to disguise the true nature of the transferred money, such as a transaction in which Moorefield received $1,000 labeled as a “housewarming gift” from a known dogfighter in 2022, even though Moorefield has lived at the same address for over two decades.

When agents searched Moorefield’s residence on September 6, 2023, they recovered five pitbull-type dogs from large metal cages in a windowless room of Moorefield’s basement.  Agents also found several containers of animal medication, dog food, and protein powder in the same room, as well as the jumper-cable device referenced above, which Moorefield used to kill dogs that were no longer fit for use in dogfighting.  Agents seized a large piece of folded-up carpet from a shed on the property, and this carpet appeared to be stained in several places with blood.  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 recently obtained—within the past week—four of the five dogs found on the property.  The dog that Moorefield did not obtain recently was diagnosed as exhibiting calloused skin and an old injury, in addition to being infested with fleas.  That dog had to be 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.

Moorefield faces a maximum of five years in prison for conspiring to engage in an animal fighting conspiracy.  U.S. District Judge Richard D. Bennett has scheduled sentencing for December 2, 2024 at 2:30 p.m. 

United States Attorney Erek L. Barron commended the FBI, the United States 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 thanked the United States Attorney’s Office for the Eastern District of Virginia for their valuable assistance in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Alexander Levin and Darryl Tarver, 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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The Justice Department announced today that it filed a complaint and proposed consent decree in the U.S. District Court for the District of Maryland resolving allegations that the Johns Hopkins Health System Corporation (Johns Hopkins) violated the Americans with Disabilities Act (ADA) by denying people with disabilities equal access to medical care by excluding their necessary support persons.

“Patients with disabilities deserve equal access to healthcare,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Appropriate medical care often requires them to be accompanied by essential support persons. Johns Hopkins’ recommitment to meeting the needs of its patients with disabilities and ensuring that they are treated with dignity and respect is a welcome outcome of this agreement.”

“Patients with disabilities may need the assistance of a support person, like a family member or aide, to have equal access to health care, especially during emergencies,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Policies and training go hand in hand when it comes to ensuring that health care providers and their employees are protecting patient rights and not excluding support persons improperly. Ensuring equal access to medical care is a priority for the Justice Department.”

Some individuals with dementia, intellectual disabilities, autism spectrum disorder and other disabilities may require the assistance of a support person (such as a family member, personal assistant, or other individual knowledgeable about them) when accessing medical care. Support persons can help individuals with disabilities to communicate, such as providing their medical history and answering questions, and to understand what is happening, such as medical instructions they are given during their care and discharge. The complaint alleges that Johns Hopkins failed on numerous occasions to follow its own policies for visitors and support persons by not permitting patients with disabilities to be accompanied by their support persons. As a result, these patients were unable to receive equal care. 

Under the proposed consent decree, which the court must approve, Johns Hopkins has agreed to pay $150,000 to compensate multiple affected individuals. Johns Hopkins will also update its support person policies to ensure ADA compliance, train its employees on its support person policies and the ADA, and report any future complaints regarding support persons to the Justice Department.  The claims resolved by this Consent Decree are allegations and not an admission of liability by Johns Hopkins. 

This matter was handled jointly by the U.S. Attorney’s Office for the District of Maryland and the Civil Rights Division’s Disability Rights Section.  U.S. Attorney Erek L. Barron thanked Assistant U.S. Attorney Sarah A. Marquardt and Trial Attorney Stephanie Berger of the Civil Rights Division, who handled the case.

Title III of the Americans with Disabilities Act (ADA) requires private hospitals and other health care providers to provide individuals with disabilities full and equal enjoyment of their goods and services.  For more information on the Maryland U.S. Attorney’s Office’s civil rights work, please visit https://www.justice.gov/usao-md/civil-rights.  ADA complaints may be filed online at https://www.ada.gov/file-a-complaint/.  Anyone in Maryland may also report civil rights violations by emailing USAMD.Civilrightscomplaint@usdoj.gov.

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