District of Maryland

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Tyler Edward Perkins, age 30, of Huntingtown, Maryland, today to seven years in federal prison, followed by 10 years of supervised release, for possession of child pornography.  The statement of facts also established that Perkins distributed child sexual abuse material to others and Judge Chuang took that into account in imposing today’s sentence.  Judge Chuang also ordered that Perkins must pay restitution of $12,000 and upon his release from prison, Perkins will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). 

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police; and Calvert County State’s Attorney Robert Harvey.

According to his guilty plea agreement, Perkins was an instructional assistant at a school for children requiring special education services.  On June 1, 2022, law enforcement executed a search warrant at Perkins’s residence after the National Center for Missing and Exploited Children received CyberTips from the instant messaging platform Kik, that accounts associated with usernames, which investigation determined were controlled by Perkins, had uploaded files containing child pornography to Kik.  Kik also determined that many of the uploaded files were distributed to other users in private chats.

Law enforcement investigating the CyberTips were able to identify Perkins’s residence as being associated with the distribution of child pornography.  During the search of his residence, law enforcement seized several electronic devices.  A digital forensic examination of the devices revealed that they contained at least 600 images of child sexual abuse material, including videos, documenting the sexual abuse of minors, including prepubescent minors.  Further, some of the material portrayed sadistic or masochistic conduct.  The investigation did not reveal any evidence of Perkins committing any sexual assault or having illegal contact with any child.

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.

United States Attorney Erek L. Barron commended HSI, the Maryland State Police Computer Crimes Unit and Maryland State Apprehension Team, and the Calvert County State’s Attorney’s Office for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Christopher M. Sarma and Timothy F. Hagan, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

# # #

Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced John W. Balch, age 76, of Jacksonville, Florida, to 60 years in federal prison, followed by lifetime supervised release, for two counts of sexual exploitation of a child.  Balch had previously pleaded guilty to those charges and further admitted to the sexual exploitation of six minor victims, including prepubescent minors.  On January 23, 2024, Chief Judge Bredar sentenced co-defendant Jane Ellen Campbell, age 35, of Hagerstown, Maryland, to 210 months in federal prison, followed by 15 years of supervised release, for distribution of child pornography, related to one of the victims.  Chief Judge Bredar also ordered that, upon their release from prison, the defendants will be required to register as sex offenders in the places where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (“SORNA”).

The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Chief Paul Joey Kifer, Chief of the Hagerstown Police Department; and Frederick County State’s Attorney J. Charles Smith, III.

According to Balch’s guilty plea and other court documents, between 2017 and 2022, Balch sexually exploited six minors between the ages of 3 and 15 years old.  Balch paid the victims’ mothers to produce images and videos of the victims engaged in sexually explicit conduct.  The exploitation also included paying the victims’ mothers to perform sex acts on their prepubescent children, record the abuse, and send the files to Balch.  Balch also admitted that he paid one of the mothers to transport her 15-year-old daughter to engage in sex acts with Balch in a hotel room.

As detailed in Campbell’s plea agreement, Campbell and Balch met in approximately 2007.  In recent years, Campbell drove various women to have commercial sex with Balch in hotels when Balch traveled to Maryland from his home in Florida.  In 2017, Balch asked Campbell multiple times to produce naked images of Minor Victim 1, who was nine years old at the time.  Campbell admitted that she sent Balch three sexually explicit images of Minor Victim 1 in July 2017.  Beginning in 2021, Balch initiated conversations directly with Minor Victim 1.  According to Campbell’s plea agreement, Balch paid Campbell $3,245, between November 23, 2020, and August 5, 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.

United States Attorney Erek L. Barron commended the HSI, the Hagerstown Police Department, and the Frederick County State’s Attorney’s Office for their work in this investigation.  U.S. Attorney Barron also recognized the U.S. Attorney’s Offices for the Northern District of West Virginia and the Middle District of Florida, and the FBI’s Pittsburgh Field Office for their assistance in the Balch case.  Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Joyce King, 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.

# # #

Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Desmond Butler, age 26, of Baltimore, today to 30 years in federal prison, followed by five years of supervised release, for a racketeering conspiracy, including murders and attempted murders, related to his participation in the violent street gang known as Cruddy Conniving Crutballs or Triple C, which operated throughout Baltimore.  Earlier this week, Chief Judge Bredar sentenced Triple C members Wayne Gilliam, age 28, and Tyeshawn Rivers, age 24, both of Baltimore, each to 25 years in federal prison, followed by five years of supervised release, for the same charge.

The sentences were announced United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Commissioner Richard Worley of the Baltimore Police Department; and Chief Robert McCullough of the Baltimore County Police Departments.

“When you perpetrate violence upon communities, like these defendants, you will be held accountable,” said United States Attorney Erek L. Barron.  “Young people must know that they can make another choice besides violence and murder and we will continue to work with our community partners to get that message out.”

According to Gilliam, Rivers and Butler’s plea agreements and other court documents, Triple C members engaged in a pattern of criminal racketeering activity between 2015 and 2020, including more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings, in order to promote the reputation of Triple C and to command respect from the neighborhood.  Other spin-offs of the gang are “SCL” and recently, “TRD.”

            As detailed in the plea agreements, the gang benefitted financially from selling narcotics, murdering drug dealers, taking contract killings, and engaging in street robberies.  Triple C members also robbed dice games for cash and occasionally carjacked vehicles.  Triple C members and associates used at least 14 firearms to commit crimes, often trading with each other or other groups to avoid detection through ballistic evidence.  Members divided the proceeds of illegal activities among those who participated in the crimes, and often contacted each other to commit a robbery if a member needed money.  Members of Triple C often critiqued each other after committing crimes regarding ways to improve their performance. 

Triple C members routinely used social media to identify and locate victims, to communicate with each other, and to share information concerning possible retaliation for violent crimes committed by gang members.  Details of the crimes committed by Triple C members were publicized on social media and thus were well-known to CCC members. 

Desmond Butler admitted that he participated in the August 19, 2017 murder of Devonte Monroe in the 1700 block of Durham Street in Baltimore; the April 21, 2018 murder of Diamante Howard during a dice game in the 6100 block of Fortview Way in Baltimore; the December 31, 2018 murder of Corey Mosley; the February 24, 2019 robbery and attempted murder of Q.W. in the 5200 block of Cedonia Avenue in Baltimore; and the July 4, 2019 attempted murder of A.C. and D.R. in the 5500 block of Bowley’s Lane in Baltimore.

Wayne Gilliam admitted that he participated in the December 31, 2018 murder of Corey Mosley in the 4900 block of Green Rose Lane in Baltimore, and the April 14, 2019 attempted murder of rival gang members “LTMN” in the 3500 block of Pelham Avenue in Baltimore, during which at least one member of the conspiracy fired a firearm.  

Tyeshawn Rivers admitted that he participated in the August 5, 2020 murder of Donya Short in Baltimore City, during which Short was shot and killed; the April 4, 2018 attempted murder of rival gang members in the 2900 block of Mayfield Avenue, in Baltimore City, during which at least one member of the conspiracy fired a firearm; the March 17, 2020 attempted murder of T.B. and others in the 300 block of McMechen Street in Baltimore, during which T.B. was shot; and on October 30, 2020 the defendant possessed a .45 caliber handgun which is a ballistic match to shell casings found at the August 5, 2020 murder of Donya Short. 

In addition to these violent acts, all three defendants admitted that they agreed to distribute and possess with the intent to distribute controlled substances, including crack cocaine, on behalf of the racketeering enterprise.

This investigation has led to the guilty pleas of 34 members and associates of Triple C.

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

United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in this investigation and thanked the United States Marshals Service and the Office of the Baltimore City State’s Attorney for their assistance in the investigation and prosecution.  Mr. Barron thanked Assistant U.S. Attorney Patricia C. McLane and Michael C. Hanlon, who prosecuted the case.

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

# # #

Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging brothers Dwayne and Wayne Henry, age 32 and 34, respectively, both of Landover Hills, Maryland, for conspiracy to commit mail fraud, in connection with a lottery scheme where victims believe that they have won a lottery or sweepstakes and are required to send payment in advance for taxes and other fees before they are entitled to receive their winnings. 

The superseding indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Chief Malik Aziz of the Prince George’s County Police Department; and Special Agent in Charge Colleen Lawlor of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.

According to the superseding indictment, from October 2020 until December 2023, the defendants and their co-conspirators contacted the victims by mail and 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.  The defendants and other conspirators caused the victims to send payments for the purported taxes and other fees through wire transfer, by gift card, by sending cash and by other payment methods.

As detailed in the superseding indictment, the defendants sent lottery solicitations, as well as packages and suitcases that purportedly contained the victims’ winnings to victims throughout the United States, using a false address and fictitious name when mailing the items.  The defendants allegedly tracked the packages sent to and from the victims and Wayne received numerous packages that contained victim funds addressed to “Anthony Henry.”  The superseding indictment further alleges that Wayne opened two bank accounts to receive money from the scheme, including in cash deposits and peer-to-peer transfers and that Dwayne and Wayne Henry sent numerous payments to each other using a digital payment network.  The majority of the ATM cash withdrawals from one of the bank accounts also allegedly occurred outside the United States.

For example, the superseding indictment alleges that the conspirators sent packages and caused packages to be sent that contained checks made payable to victim J.S. in the amount of $150 million, cell phones, and typewritten notes, including a note requesting that J.S. contact the writer at a telephone number ending in 9391 “to get in touch . . . about paying you the 150 million dollars.” 

The superseding indictment further alleges that in early 2023, Wayne, Dwayne, and other conspirators caused victim J.P. to believe that J.P. had won $5.5 million in the lottery.  As detailed in the superseding indictment, J.P. received a metal briefcase purportedly containing partial payment of the lottery winnings and was told that he/she would receive a code to unlock the briefcase after J.P. sent the required taxes and fees.  J.P. was also allegedly told that if J.P. opened the briefcase without receiving the code, the money would be destroyed by an exploding ink pack inside the briefcase.

According to the indictment, as a result of the scheme, the victims sent more than $3.5 million to the defendants and other conspirators based on false pretenses, representations, and promises involving false lottery or sweepstakes winnings.

If convicted, the defendants face 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.  An initial appearance has not yet been scheduled.

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

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. 

United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service, HSI, the Prince Georges County Police Department, and the Social Security Administration - Office of Inspector General for their work in the investigation and thanked the Maryland State Police, the Baltimore County Police Department, and the Anne Arundel County Police Department for their assistance.  Mr. Barron thanked Assistant U.S. Attorney 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 seniors, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/elder-justice-initiative.

# # #

Greenbelt, Maryland – A federal grand jury has returned an indictment charging five Marylanders with conspiracy to commit mail fraud and bank fraud and related charges in connection with a fraud scheme involving more than 600 stolen checks with a face value of over $5 million.  The indictment was returned on December 7, 2023, and unsealed late on January 19, 2024.  Charged in the indictment are:

            Tianna Cosby, a/k/a “Mendoza,” age 23, of Upper Marlboro, Maryland;             Marche Sisco, age 26, of Suitland, Maryland;             Tommi Cosby, age 21, of District Heights, Maryland;             Biniah Carter, age 24, of Upper Marlboro, Maryland; and
            Zion Oluwademilade Adeduwon, age 22, of Bowie, Maryland.

Tianna Cosby and Biniah Carter were arrested on January 19, 2024, and are expected to have initial appearances today at 1:30 p.m. and 2:15 p.m., respectively, in U.S. District Court in Greenbelt before U.S. Magistrate Judge Gina L. Simms.  Law enforcement has not yet located Marche Sisco, Tommi Cosby, and Zion Oluwademilade Adeduwon.

The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Executive Special Agent in Charge Jeffrey Krafels of the U.S. Postal Service Office of Inspector General – Mid Atlantic Field Office; and Chief Malik Aziz of the Prince George’s County Police Department.

According to the 18-count indictment, Tianna Cosby and Sisco stole and caused the theft of personal and business checks belonging to victims that had been mailed through the U.S. Postal Service (USPS).  Specifically, the indictment alleges that Sisco used her position as a USPS mail handler assistant at the Washington Network Distribution Center (NDC) to steal checks from the NDC, then communicated regarding the sale and distribution of over 600 stolen checks with Cosby.  These checks had a face value of more than $5 million.  In addition to stealing checks from the NDC, the indictment alleges that the conspiracy also obtained checks by stealing them from USPS collection boxes.

Further, the indictment alleges that Tianna Cosby, Tommi Cosby, Carter, and Adeduwon recruited “account mules” – individuals whose bank accounts are used to deposit illegally acquired checks and proceeds of the scheme.  The conspirators then collected and shared account mule information, which included banking and identity information.  The defendants allegedly also used and transferred the means of identification of at least five identity theft victims.  As detailed in the indictment, the conspirators altered the stolen checks to reflect payment to account mules, deposited the fraudulent checks into the bank accounts belonging to the account mules, then engaged in financial transactions, including ATM withdrawals and account transfers, to obtain the proceeds.

If convicted, the defendants each face a maximum sentence of 30 years in federal prison for conspiracy to commit mail fraud and bank fraud and for each count of bank fraud; and a mandatory two years, consecutive to any other sentence imposed, for each count 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. 

United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, and the Prince George’s Police Department Strategic Investigations Division - Financial Crimes Unit for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Bijon A. Mostoufi, Raganath Manthripragada, and Elizabeth Wright, 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.

# # #

Erek L. Barron, the United States Attorney for the District of Maryland, announced two new senior supervisory appointments.  Alicia N. Washington is joining the office as Special Counsel to the United States Attorney, where she will advise the United States Attorney on matters across the office, especially within the Criminal Division, and on the office’s most complex and sensitive issues.  Assistant U.S. Attorney John W. Sippel, Jr. has been appointed as the Coordinator of the Organized Crime Drug Enforcement Task Force’s (OCDETF) Mid-Atlantic Region, which covers Maryland, Delaware, Pennsylvania, Virginia, West Virginia and District of Columbia.

 “I am pleased to make these appointments. The hiring of Alicia Washington and promotion of John Sippel adds greater depth of experience and perspective to our decision-making to better serve Marylanders and the mission of the Department of Justice,” said United States Attorney Erek L. Barron.

Ms. Washington joins the office from the international law firm Simpson Thacher & Bartlett LLP, where she has served as a litigation partner and member of the firm’s government and internal investigations practice. Prior to her private practice, she served as an Assistant United States Attorney in the Eastern District of New York’s Criminal Division, investigating and prosecuting public corruption, white collar, civil rights, violent crime, narcotics, money laundering, firearms, and child exploitation.  Prior to joining the Eastern District of New York, Ms. Washington was an associate at Davis+Gilbert LLP and an associate at Simpson Thacher & Bartlett LLP. Ms. Washington also served as a law clerk for the Honorable Barbara M. G. Lynn of the United States District Court for the Northern District of Texas. Ms. Washington received her law degree from Columbia Law School and her undergraduate degree from Yale University with Honors.

John Sippel has served as an Assistant United States Attorney in the District of Maryland since February 2003, first in the Office’s Civil Division, where he handled civil defensive cases and assisted the Financial Litigation Unit, then transitioning to the Criminal Division’s Violent Crime Section (now the Violent Organized Crime Section or “VOC”) in July 2007. While serving in the VOC Section, Mr. Sippel has handled a variety of violent crime and drug-related matters, including large-scale narcotics investigations, firearms cases, carjackings, commercial robberies, and racketeering cases. In 2016, Mr. Sippel received the OCDETF National Award for the Mid-Atlantic Region for the investigation and successful prosecution of the Kedrick Jenifer Drug Trafficking Organization. He also serves one of the office’s Ethics Advisors. Mr. Sippel earned his law degree from the University of Baltimore School of Law and his undergraduate degree in Political Science from Loyola College in Maryland (now Loyola University Maryland). Prior to joining the Office, John was in private practice.

Ms. Washington and Mr. Sippel join a management team that includes, First Assistant United States Attorney Phil Selden; Executive Assistant United States Attorney Lillian N. Stewart; and Counsel to the United States Attorney, David I. Salem. 

As First Assistant U.S. Attorney, Phil Selden helps manage the investigation and litigation of all criminal and civil cases brought on behalf of the United States. Mr. Selden began his career as an Assistant United States Attorney in 2010, investigating and prosecuting a wide variety of cases, including public corruption, white collar, national security, cybercrime, and violent crime matters.   He has received awards from the Social Security Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and multiple Department of Justice Special Achievement Awards, and received the 2020 Homeland Security Investigations Prosecutor of the Year for his efforts in prosecuting domestic and international corruption.  Before joining the Department of Justice, Mr. Selden worked in private practice handling complex commercial litigation and white collar matters on behalf of Fortune 500 companies.  He began his career working with at-risk youth at the Philadelphia Family Court.  Mr. Selden received his undergraduate degree from Georgetown University, magna cum laude, his Master’s Degree in Government Administration from the University of Pennsylvania and his Juris Doctor degree from Columbia Law School, where he was a Harlan Fiske Stone Scholar, a Tony Patiño Fellow, and a Paula Jewell Fellow. Mr. Selden has taught as an adjunct faculty member at University of Maryland School of Law, Howard University School of Law, Harvard Law School, and the George Washington University Law School.

Executive Assistant U.S. Attorney Lillian Stewart joined the office in March 2023 and oversees the Civil and Administration Divisions.  Previously, Ms. Stewart served as the Executive Assistant United States Attorney for the United States Attorney’s Office for the Northern District of Texas; Assistant General Counsel handling civil litigation for the FBI General Counsel’s Office; and as an Assistant United States Attorney for the Central District of Illinois, where she worked in the Civil Division handling various affirmative and defensive civil matters including False Claims Act, Healthcare Fraud and Civil Rights investigations.  Ms. Stewart earned her law degree from Vanderbilt University Law School, and her undergraduate degree in Political Science, magna cum laude, from the University of Tennessee.

David Salem was appointed as Counsel to the United States Attorney in January 2023, and has been an Assistant U.S. Attorney in the District of Maryland’s Greenbelt office since November 1990, serving first in the Civil Division before switching to the Criminal Division in 1994.  Since then, Mr. Salem has tried more than 50 felony cases, focusing most recently in areas of white collar and national security matters and served as Senior Litigation Counsel and Collateral Litigation Chief.  David also has trained law enforcement officers, prosecutors, defense bar and judges in Ashgabat, Turkmenistan; Kiev, Ukraine; Almaty, Kazakhstan; Tallinn, Estonia; Riga, Latvia; and Tbilisi, Georgia.  He received his joint JD-MBA from the University of Maryland.  David was the recipient of numerous Department of Justice and office awards, including the 2020 Deborah A. Johnston Award; the 2015 Department of Justice Award for Criminal Prosecution for United States v. Mikerin; the 2004 Gary Jordan Award; the 2004 Inspector General Integrity Award for contributions to health care fraud prosecutions; and the 1998 Chief Postal Inspector’s Award for United States v. Bosah. 

# # #

Baltimore, Maryland – Theodore Mouzon, age 42, of Pikesville, Maryland pleaded guilty today to conspiracy to commit wire fraud, relating to the submission of fraudulent CARES Act loan applications.  Co-defendant Yannice Nunez, age 34, of Baltimore County, Maryland, pleaded guilty to the same charge on January 4, 2024.  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 United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General, Eastern Region; 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 their plea agreements and other court documents, Nunez and Mouzon submitted fraudulent PPP loan applications for purported businesses which they owned.  The applications contained material misrepresentations as to the existence of the business, number of employees and average monthly payroll.  Based on the fraudulent submissions and misrepresentations, Mouzon and Nunez ultimately obtained $300,162 in connection with their scheme (with $185,416 in loan funds going to Nunez and $114,746 in loan funds going to Mouzon).  Nunez and Mouzon further attempted to obtain more than $373,054 in PPP and EIDL funds for various other purported businesses, but those loans ultimately did not close. 

Nunez used the fraudulently obtained funds to, among other things, buy a motorcycle, purchase large amounts luxury goods, travel to Miami, Florida for vacation, and get plastic surgery.  Mouzon used the PPP funds for personal expenses and provided a portion of the funds to his girlfriend.  The defendants’ use of the funds for those purposes was impermissible under the PPP.

Nunez and Mouzon were arrested on November 14, 2022.  Law enforcement searched Mouzon’s residence, a house belonging to his girlfriend, that same day and recovered two loaded firearms—a .357 revolver and a .32 caliber revolver—multiple boxes of ammunition, and body armor.  Law enforcement interviewed Mouzon’s girlfriend who stated that there were no guns in the residence.  Law enforcement also located $4,945 in cash—proceeds from the scheme—next to a box containing 20 rounds of 9mm ammunition in a dresser in the bedroom.  As part of his plea agreement, Mouzon has agreed to waive any right, title and interest in the firearms, ammunition, and body armor.

Mouzon and Nunez each face a maximum sentence of 20 years in federal prison for wire fraud.   U.S. District Judge Ellen L. Hollander has scheduled sentencing for Nunez on March 27, 2024 at 10:00 a.m. and for Mouzon on April 5, 2024 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.

United States Attorney Erek L. Barron commended the FBI, Small Business Administration Office of Inspector General, and 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. 

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.

# # #

A Maryland man was sentenced today to two years in prison, along with three years of supervised release, for making death threats and other calls for violence against a group that advocates for LGBTQI+ people.

According to the evidence presented by the government at today’s sentencing hearing, Adam Michael Nettina, 34, of West Friendship, also sent threatening messages to Maryland and Virginia state delegates due to their support of transgender people.

“This defendant targeted and threatened members of the LGBTQI+ community and their allies, instilling fear and promoting violence toward a heavily targeted community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence underscores the Justice Department’s commitment to combating threats against public officials and protected communities. We will work tirelessly to expunge the growing threat posed by bias-motivated acts of violence directed at the LGBTQI+ community and their allies.”

“You have the right to your own opinions, but you don’t have the right to threaten the lives of those who disagree with you. As this case demonstrates, free speech does not include violent threats against others,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We’ll continue prosecuting these threats to the fullest extent of the law.”

“Threats of violence made against people and organizations to instill fear will not be tolerated,” said Acting Special Agent in Charge R. Joseph Rothrock of the FBI Baltimore Field Office. “The FBI will continue to work diligently to ensure the civil rights of all Americans are protected.”

According to court documents, on the evening of March 28, 2023, the victim organization received a threatening voicemail from a phone number, which investigators identified as belonging to Nettina. The message referenced the March 27, 2023, mass shooting at a school in Nashville, Tennessee, involving multiple shooting fatalities, where police identified the perpetrator as a transgender woman. During the call, numerous threats were made including, “…we’ll cut your throats. We’ll put a bullet in your head…You’re going to kill us? We’re going to kill you 10 times more in full.”

Nettina admitted that he left this voicemail for the purpose of issuing a threat and with the knowledge that the voicemail would be viewed as a threat. Further, Nettina intentionally selected the advocacy organization as a target of his message because of the actual and perceived gender, gender identity and sexual orientation of the people who work at and are assisted by the organization.

As detailed in his plea agreement, on March 31, 2022, a Maryland State Delegate posted a message of support on social media in honor of Trans Day of Visibility. Nettina responded on social media later that same day, which stated, among other things, that he had “begun the formal process of getting you excommunicated…” from the Catholic Church. On Nov. 8, 2022, the delegate was reelected. Nettina sent the delegate another message on social media, stating: “…Baby killing terrorist. Enjoy hell…You’re going sooner than you think.”

Finally, as outlined in the court documents, on Oct. 13, 2022, an online news story was published about an interview a Virginia State Delegate gave in which she advocated for the prevention of abuse towards transgender children. Two days later, on Oct. 15, 2022, Nettina sent an email to the delegate’s press email account, stating: “The delegate is a terrorist. You are a terrorist. You deserve to be shot and hung in the streets. You want to come after people? Let’s go b**ch.” Nettina also sent a similar message to another email address of the delegate two minutes later. Nettina intentionally selected the delegate and her campaign staff as the recipient of his email because of the actual and perceived gender, gender identity and sexual orientation of the people and constituents for whom the delegate had expressed support.

The FBI Baltimore Field Office investigated the case.

Assistant U.S. Attorney Paul E. Budlow for the District of Maryland and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division prosecuted the case.

For more information about the department’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes.

Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Adam Michael Nettina, age 34, of West Friendship, Maryland, to two years in federal prison, followed by three years of supervised release, for using the telephone to make death threats and other calls for violence against a group that advocates for LGBTQI+ people.  According to the evidence presented by the government at today’s sentencing hearing, Nettina also sent threatening messages to Maryland and Virginia state delegates due to their support of transgender people.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.

“You have the right to your own opinions, but you don’t have the right to threaten the lives of those who disagree with you.  As this case demonstrates, free speech does not include violent threats against others,” said United States Attorney for the District of Maryland, Erek L. Barron.  “We’ll continue prosecuting these threats to the fullest extent of the law.”

“This defendant targeted and threatened members of the LGBTQI+ community and their allies, instilling fear and promoting violence toward a heavily targeted community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence underscores the Justice Department’s commitment to combating threats against public officials and protected communities. We will work tirelessly to expunge the growing threat posed by bias-motivated acts of violence directed at the LGBTQI+ community and their allies.”

“Threats of violence made against people and organizations to instill fear will not be tolerated,” said Acting Special Agent in Charge R. Joseph Rothrock of the FBI Baltimore Field Office. “The FBI will continue to work diligently to ensure the civil rights of all Americans are protected.”

According to court documents, on the evening of March 28, 2023, the victim organization received a threatening voicemail from a phone number, which investigators identified as belonging to Adam Michael Nettina.  The message referenced the March 27, 2023, mass shooting at a school in Nashville, Tennessee, involving multiple shooting fatalities, where police identified the perpetrator as a transgender woman.  During the call, numerous threats were made including, “ . . . We’ll cut your throats.  We’ll put a bullet in your head . . . . You’re going to kill us?  We’re going to kill you ten times more in full.” 

Nettina admitted that he left this voicemail for the purpose of issuing a threat and with the knowledge that the voicemail would be viewed as a threat.  Further, Nettina intentionally selected the advocacy organization as a target of his message because of the actual and perceived gender, gender identity, and sexual orientation of the people who work at and are assisted by the organization.

As detailed in his plea agreement, on March 31, 2022, a Maryland State Delegate posted a message of support on social media in honor of Trans Day of Visibility.  Nettina responded on social media later that same day, which stated, among other things, that he had “begun the formal process of getting you excommunicated . . . ” from the Catholic Church.  On November 8, 2022, the delegate was reelected.  Nettina sent the delegate another message on social media, stating: “ . . . Baby killing terrroist.  Enjoy hell You’re going sooner than you think.”

Finally, as outlined in the court documents, on October 13, 2022, an online news story was published about an interview a Virginia State Delegate gave in which she advocated for the prevention of abuse towards transgender children.  Two days later, on October 15, 2022, Nettina used the internet to send an email to the delegate’s press email account, stating: “The delegate is a terrorist. You are a terrorist.  You deserve to be shot and hung in the streets.  You want to come after people?  Let’s go b**ch.”  Nettina also sent a similar message to another email address of the delegate two minutes later.  Nettina intentionally selected the delegate and her campaign staff as the recipient of his email because of the actual and perceived gender, gender identity, and sexual orientation of the people and constituents for whom the delegate had expressed support.

United States Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke commended the FBI for its work in the investigation.  Mr. Barron and Ms. Clarke thanked Assistant U.S. Paul E. Budlow and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division, who prosecuted the federal case.

Earlier this year, the U.S. Attorney’s Office for the District of Maryland (USAO-MD) launched the national Department of Justice initiative, United Against Hate.  Together with our local partners, USAO-MD’s United Against Hate campaign will empower local residents and communities to combat unlawful acts of hate, stand against racism and discrimination and alter the course of growing intolerance. 

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.

# # #

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Reginald Alphonso Hopkins, age 52, of Prince George’s County, Maryland, today to two years in federal prison, followed by one year of home confinement as part of three years of supervised release, for a wire fraud conspiracy relating to the submission of fraudulent claims for the Paycheck Protection Program (“PPP”) benefits under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.  The 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 sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore 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).  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 his plea agreement, Hopkins fraudulently obtained $1,007,224 in PPP funds and $9,000 in Economic Injury Disaster Loan funds for various purported businesses he controlled—a transportation business, a car sales business, and an assisted living facility.  He also attempted to fraudulently obtain more than $3,132,224 in PPP and EIDL funds.

As detailed in the statement of facts submitted as part of the plea agreement, between June 11, 2020 and March 23, 2021, Hopkins, with the assistance of a co-conspirator submitted fraudulent PPP loan applications for Prestige Executive Transportation, Prestige 24/7 Auto Sales & Services LLC (“Prestige 24/7”), and Prestige Assisted Living Inc. (“Prestige Assisted Living”), all businesses owned by Hopkins.  Each loan application contained multiple material misrepresentations, including as to the number of employees and average monthly payroll.  Fabricated IRS tax forms and bank records were also submitted in support of the loan applications.  In fact, IRS tax records reveal that none of the companies reported paying wages to any employees. 

Based on the fraudulent submissions, the PPP loans were funded.  Approximately $291,090 was distributed to Prestige Transportation’s bank account; approximately $294,771 was distributed to Prestige 24/7’s bank account; and approximately $421,363 was distributed to Prestige Assisted Living’s bank account.  All the bank accounts were controlled by Hopkins.  Hopkins agreed to pay the co-conspirator a kickback payment for his work in submitting the false applications.  Hopkins provided the co-conspirator: a check for  $58,000, approximately 20 percent of the PPP loan amount for the Prestige Executive Transportation loan; eight checks totaling $75,000 or 25 percent of the Prestige 24/7 loan; and five checks totaling $44,000 or approximately 10.5 percent of the Prestige Assisted Living loan.

Hopkins admitted that he spent the fraudulently obtained loan proceeds in various ways unrelated to job retention or other business expenses, including the $177,000 in kickbacks paid to the co-conspirator, providing PPP funds to various friends, family members, making large cash withdrawals for himself, and paying off various personal debts.  Hopkins also used $30,000 of the PPP funds to purchase an auto body repair shop called B&G Auto Repair LLC, for which he planned to obtain a fraudulent PPP loan.

In addition to obtaining the PPP loans discussed above, Hopkins also conspired with the co-conspirator to fraudulently obtain PPP loans for various other purported businesses, including Prestige Executive Protection Services, LLC, Prestige Paradise Promotions, LLC, Prestige Executive Protection Services II, LLC, Prestige Real Estate & Development, LLC, and B&G Auto Repair LLC.  Hopkins repeatedly sought the co-conspirator’s assistance in obtaining PPP loans for these entities, but the loans never closed. 

Hopkins further admitted that he caused to be submitted numerous fraudulent EIDL applications, including for Prestige Executive Transportation and Prestige Executive Protection Services II.  Both of those loans, as well as others, were ultimately declined, but Hopkins received an EIDL advance of $5,000 and $4,000, for Prestige Executive Transportation and Prestige Executive Protection Services II, respectively.

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

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

United States Attorney Erek L. Barron commended the FBI for their work in the investigation and thanked the Baltimore County Police Department and the U.S. Small Business Administration – Office of Inspector General (“SBA-OIG”).  Mr. Barron thanked Assistant U.S. Attorney Paul Riley, who prosecuted the federal case.  Mr. Barron also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna Huber.

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

# # #

Greenbelt, Maryland – U.S. District Judge Deborah L. Boardman sentenced Denish Sahadevan, a/k/a “Danny Devan,” age 32, of Potomac, Maryland, today to three years in federal prison, followed by three years of supervised release, for wire fraud, aggravated identity theft and money laundering, relating to his scheme to defraud lenders and the Small Business Administration (“SBA”) of more than $1.2 million in Paycheck Protection Program (“PPP”) loans and Economic Injury Disaster Loans (“EIDL”).  Judge Boardman also ordered that Sahadevan will forfeit the cash and Bitcoin seized during a search of his residence on February 24, 2023 and will be required to pay restitution and a forfeiture money judgement of at least $429,906.  Sahadevan provided a $100,000 check to the Court today as part of his restitution.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and John T. Perez, Special Agent in Charge, Headquarters Operations, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau.

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 forgivable loans to small businesses for job retention and certain other expenses, through the PPP, as well as EIDLs to help small businesses meet their financial obligations, both administered through the SBA.

According to his plea agreement, beginning in about March 2020, Sahadevan submitted EIDL and PPP application on behalf of four Maryland entities that he controlled, often creating fraudulent and fabricated documents, such as tax forms and bank statements, to be used in the applications.  In addition, Sahadevan used the identifying information belonging to a tax preparer that he knew, without that person’s knowledge or agreement, to legitimize the fabricated tax forms he created and submitted.

Specifically, Sahadevan admitted that he used his home in Rockville, Maryland to create the fabricated documents and electronically apply for EIDL and PPP loans.  Sahadevan applied for approximately 71 PPP loans totaling approximately $941,794.75, and successfully obtained approximately $146,000 in PPP benefits.  Sahadevan applied for and received eight EIDLs totaling $283,900.   On the EIDL loans, Sahadevan induced his father into becoming a co-signer for the loan, then forged his father’s signature on the loan application.  Sahadevan’s father would not have agreed to sponsor the loan had he known of its fraudulent nature and contents.

As detailed in the plea agreement, Sahadevan caused the fraud proceeds to be deposited into bank accounts he opened specifically for that purpose, then laundered the funds by engaging in several monetary transactions, including purchasing and trading securities and cryptocurrency, settling personal debts and making payments to his girlfriend.

In addition, between December 16, 2021 and January 10, 2022, Sahadevan applied to a financial institution for a $1,336,000 loan to purchase a property in Potomac, Maryland.  In the loan application, Sahadevan failed to disclose the $283,900 he owed to the United States for the EIDL benefits he fraudulently received.  Relying on Sahedevan’s representations, the financial institution approved the loan, which was used to purchase the Potomac property. 

On February 24, 2023, law enforcement executed a search warrant at Sahadevan’s Potomac residence and recovered multiple electronic devices, a can containing approximate 18 driver’s licenses belonging to other individuals, what appeared to be a gold physical Bitcoin in a black case, and approximately $17,043 in cash found in a suitcase in a bedroom closet.  The cash and Bitcoin constitute proceeds of the fraud scheme.

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

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

United States Attorney Erek L. Barron commended the FBI and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Bijon A. Mostoufi, who prosecuted the case.  He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber. 

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

# # #

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Joseph Farace, age 72, of Sparks, Maryland today to 19 months in federal prison, followed by two years of supervised release, for a money laundering conspiracy.  On January 5, 2023, Judge Griggsby sentenced his son, Ryan Farace, age 38, of Reisterstown, Maryland, a previously convicted felon, to 54 months in federal prison for the same charge. 

The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief Robert McCullough of the Baltimore County Police Department; Chief Gregory Der of the Howard County Police Department; Anne Arundel County Police Chief Amal E. Awad; Carroll County Sheriff James DeWees; Washington County Sheriff Brian K. Albert; and Chief Teresa Walter of the Havre de Grace Police Department.

According to their guilty pleas and other court documents, in November 2018, Ryan Farace was convicted in U.S. District Court in Maryland for a scheme to manufacture and distribute alprazolam tablets (sold under the brand name “Xanax”) in exchange for Bitcoin through sales on darknet marketplaces.  Cryptocurrency tracing techniques established that, in all, wallets associated with R. Farace, and/or his vendor name “XANAXMAN,” received over 9,138 Bitcoins from addresses associated with darknet marketplaces. 

Prior to his sentencing for the 2018 crimes, R. Farace met with representatives of the United States Attorney’s Office and the Drug Enforcement Administration, for the purpose of helping the government gain access to R. Farace’s drug proceeds, particularly cryptocurrency and cash, which had not yet been seized.  R. Farace repeatedly stated that he did not recall the location or means by which he could access any additional Bitcoins about which the government was not already aware.  At R. Farace’s sentencing for the 2018 crimes, he argued that he had been cooperative with the government’s efforts to obtain his assets.  Nonetheless, after R. Farace was sentenced, the government recovered additional drug proceeds in the form of Bitcoin.  Specifically, in early 2020, law enforcement recovered over 24 Bitcoin.

As detailed in his guilty plea, despite R. Farace’s claims to the government that he could not access any other Bitcoin proceeds related to his 2018 drug trafficking conviction, from October 2019 to April 2021, while incarcerated for his 2018 crimes, R. Farace conspired with his father, J. Farace, and others to launder additional proceeds of crimes through a series of financial transactions.  For example, in 2019, R. Farace sent approximately 71 Bitcoin from digital wallets he controlled to online exchanges and retailers.  Financial records from one such retailer indicated that R. Farace used some of the drug proceeds to benefit his father, including sending $3,341.65 worth of gift cards.  R. Farace used a contraband cell phone in prison to communicate with J. Farace about these purchases, using an encrypted email service. 

In August 2020, while he was incarcerated, R. Farace asked J. Farace to transfer more than 2,874 Bitcoin to a third party, so that the funds could be moved into a foreign bank account.  R. Farace provided J. Farace with the wallet address by typing it into the back cover of a prison library book and mailing it to J. Farace.

As detailed in their plea agreements, R. Farace (while incarcerated) and J. Farace used email and phone calls to discuss the transfer of bitcoin using coded language.  In September 2020, J. Farace completed the transfer of over 2,874 Bitcoin to the third party, all of which were proceeds of R. Farace’s 2018 drug crimes. On February 10, 2021, federal agents seized all of the 2,874.90419597 Bitcoin that J. Farace had transferred, the market value of which was between $65 million and $150 million at the time of seizure.  On May 11, 2021, the government seized 58.742155166 Bitcoin that was also proceeds of R. Farace’s drug trafficking.  Both R. Farace and J. Farace must forfeit all of the Bitcoin seized during the investigation.

United States Attorney Erek L. Barron and Acting Assistant Attorney General Nicole M. Argentieri commended the DEA, the IRS-CI, the Baltimore County, Howard County, and Anne Arundel County Police Departments, the Carroll County Sheriff’s Office, the Washington County Narcotics Task Force, the Havre de Grace Police Department for their work in the investigation and thanked the United States Postal Inspection Service, Maryland Department of Public Safety and Correctional Services and the Federal Bureau of Prisons for their assistance.  Mr. Barron thanked Assistant U.S. Attorney Coreen Mao and Trial Attorney Emily Cohen of the Justice Department’s Money Laundering and Asset Recovery Section, who prosecuted the case.

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

# # #

Baltimore, Maryland – At a press conference earlier today, U.S. Attorney Erek L. Barron, thanked federal, state and local law enforcement partners in the fight against violent crime in Maryland.  The teamwork, community-based partnerships, and strategic law enforcement initiatives helped make a difference in reducing homicides in Baltimore in 2023 by more than 20% percent.  Partners at today’s press conference included:

            U.S. Attorney Erek L. Barron;             ATF Director Steven Dettelbach;             ATF Special Agent in Charge Toni Crosby;             State’s Attorney for Baltimore City Ivan Bates;             Baltimore City Police Commissioner Richard Worley; and
            Drug Enforcement Administration Special Agent in Charge Jarod Forget;             Federal Bureau of Investigation Acting Special Agent in Charge R. Joseph Rothrock;             Homeland Security Investigations Special Agent in Charge James Harris;             Acting U.S. Marshal Mathew Silverman
            Executive Director Errol Etting of the Maryland Department of Public Safety and Correctional
            Services Intelligence and Investigative Division; and
            Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police.            

“Going forward we will continue investigating and prosecuting large RICO cases, like Triple C, but we will also continue to employ strategic and preventative law enforcement measures—especially by using any legal means necessary to remove those who illegally possess or use guns in our communities,” said United States Attorney Erek L. Barron. 

“This past year's almost 20% reduction in Baltimore homicides and 9% reduction in non-fatal shootings is a significant step forward in improving the quality of life for the citizens of this city.  Every life saved from senseless acts of gun violence is worth celebrating.  But we can't forget that every single life lost to this epidemic is a needless tragedy,” said ATF Director Steve Dettelbach.  “Through strong partnerships and utilizing crime gun intelligence, ATF is able to focus law enforcement priorities not on entire communities, but instead on strategically identifying the trigger pullers who are terrorizing those communities. My message for 2024?  We are not done by a long shot.  ATF is committed to protecting the rights of Baltimoreans to live in peace.  Law abiding folks should not live in fear of falling victim to senseless gun violence tragedies that continue to plague our most vulnerable communities.”

“Together, we have achieved significant strides in reducing violent crime throughout the year 2023, and while just one life lost to violence in Baltimore is one too many, we remain optimistic about the collective progress made. The collaborative spirit, tireless dedication, and innovative approaches demonstrated by our prosecutors, investigators, and law enforcement colleagues have played a pivotal role in creating safer communities for the residents of Baltimore,” said State’s Attorney Ivan J. Bates. “We have collectively contributed to decreasing violent crime rates through strategic initiatives, community engagement, and diligent prosecution efforts. Our success in this endeavor is a testament to the collaborative strength of our justice system. It reflects the unity and determination that defines us as a community and highlights our shared commitment to public safety and a safer Baltimore for all.”

As one example of holding violent gang members accountable at today’s press conference U.S. Attorney Barron highlighted the case of U.S. v. Correy Cawthorn, where Cawthorn, a member of the violent Baltimore street gang the “Cruddy Conniving Crutballs,” otherwise known as the “Triple C” gang, was sentenced to 35 years in federal prison.  Cawthorn admitted that he was part of a racketeering conspiracy and participated in three murders, an attempted murder and drug trafficking on behalf of the gang.  This investigation led to the guilty pleas of 34 members and associates of Triple C, including Cawthorn.  It was investigated by ATF and the Baltimore Police Department as part of the Project Safe Neighborhoods (PSN) program, using leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN), a national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. 

“Crime gun intelligence allows ATF and our law enforcement partners to identify, investigate, and incarcerate the most violent and prolific offenders operating in Baltimore.  The 35-year sentence for Triple C gang member Correy Cawthorn today and the guilty plea of Black Guerilla Family gang member Wayne Prince yesterday are just two examples of what this investigative approach can do in the hands of law enforcement like our relentless Special Agents and Task Force Officers,” said ATF Baltimore Special Agent in Charge Toni M. Crosby.  “While we take this moment to acknowledge the progress of this past year, we must also remember that any murder or act of violence prevents people from having the sense of security in their own neighborhood that they deserve. ATF Baltimore Field Division is looking forward to another year of serving the citizens of Maryland, creating safer communities so they can thrive.”                                              

“Drugs are directly related to crime through the effects they have on the user’s behavior and by generating violence and other illegal activities including firearms related incidents and homicides.  Through DEA’s Operation Overdrive initiative, we have mapped the most dangerous and ruthless drug trafficking organizations that operate in the DMV and have directed our resources towards dismantling and prosecuting these organizations.  Our collaborative efforts have led to the seizure of record numbers of illegal drugs to include fentanyl and firearms, as well as many impactful prosecutions and convictions.  DEA’s primary focus remains combating drug related violence and fentanyl poisoning in our neighborhoods,” said Jarod Forget, Special Agent in charge of DEA Washington Division.

“Every day the FBI works closely with our law enforcement partners in Baltimore and the rest of Maryland to identify and combat violent crime and other threats facing our communities,” said Acting Special Agent in Charge R. Joseph Rothrock of the FBI'S Baltimore Field Office.  “In 2024 and the years to come, we will remain laser focused on partnering together to make our communities safer places for all of us.”

“Through a combination of comprehensive strategies, partnerships, and community engagement, we have made substantial progress in curbing the frequency of gun-related violence in Baltimore,” said Special Agent in Charge James C. Harris of HSI Baltimore.  “We have fostered relationships among our federal, state, and local law enforcement partners, as well as our prosecutors. We coordinate efforts, share intelligence, and leverage resources in a unified approach to combat illegal gun trafficking, apprehend violent offenders, and hold perpetrators of gun violence accountable. Our efforts throughout our Maryland communities has resulted in a reduction of homicides in Baltimore, by 19% while non-fatal shootings are down almost 9%.  While we celebrate this success, we recognize that our work is far from over. We are committed to sustaining and expanding our efforts to further reduce violent gun crime in and around Baltimore in 2024." 

“This past year, the United States Marshals Service has helped our federal, state, and local partners apprehend over 1,300 violent fugitives,” stated Mathew Silverman, Acting United States Marshal for the District of Maryland. “The public can rest assured that we will do everything within our lawful authority to continue to support our partners and help make the State of Maryland a safer place.”

U.S. Attorney Barron also thanked our community partners, such as ROCA Baltimore, whose mission is focused on violent crime prevention and intervention initiatives and highlighted a joint public service announcement, U.S. Attorney Office coordinated community walks, and resource fairs for returning citizens.  The law enforcement officials at today’s press conference renewed their commitment to community building in order to build trust and to prevent violent crime.

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.

# # #

Baltimore, Maryland – Wayne Prince, a/k/a “Taz,” age 24, of Baltimore pleaded guilty today to conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (“BGF”) gang. 

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Acting Special Agent in Charge R. Joseph Rothrock 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 2018 Prince was a member and associate of the BGF, also known as “Jamaa,” and participated in the BGF criminal enterprise, including a murder, a drug distribution conspiracy, possession with intent to distribute drugs and robbery.  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, on August 7, 2018, Prince and two co-conspirators attempted to murder an individual at a home that the target owned and was having renovated.  A construction crew was on site at the time.  During the assault, Prince and a co-conspirator shot and killed one of the construction workers using a .40 caliber handgun.  They also shot a second construction worker in the head, but that person survived the attack.

Later that day, Prince bragged to an associate during a recorded jail call, “I’m about to get some money soon,” referring to an expected payment from Co-Conspirator 2 for Prince’s role in the attempted murder of the target.  From August 7 to August 9, 2018, Prince exchanged messages with a now-deceased member of Co-Conspirator 2’s inner circle, in which Prince made arrangements to collect payment from Co-Conspirator 2 for his role in the attempted murder of the target.

Prince and the government have agreed that, if the Court accepts the plea, Prince will be sentenced to between 20 and 29 years in federal prison.  Chief U.S. District Judge James K. Bredar has scheduled sentencing for March 26, 2024, at 10:00 a.m.

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 Erek L. 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 Peter J. Martinez, Patricia C. McLane, and Ari D. Evans, 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 – An eight-count federal grand jury indictment was unsealed today charging Olusegun Samson Adejorin, of Nigeria, for wire fraud, aggravated identity theft, and unauthorized access to a protected computer related to a $7.5 million scheme to defraud two charitable organizations by impersonating employees, and gaining access to the employees’ email accounts.  Adejorin was arrested in Ghana on December 29, 2023 and is detained pending his initial appearance in Ghana.

The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.

According to the eight-count indictment, between June and August 2020, Adejorin perpetrated a scheme to defraud Victim 1, a charitable organization located in North Bethesda, Maryland and Victim 2, a charitable organization located in New York, New York by gaining access to employee email accounts and impersonating employees to induce financial transactions.  The indictment alleges that Adejorin posed as an employee of Victim 2 to request withdrawals of Victim 2’s funds from Victim 1, a charitable organization that provided investment services to Victim 2.  Withdrawals over $10,000 required approval from at least one of several individuals authorized by Victim 1.  According to the indictment, Adejorin fraudulently obtained the credentials of employees at Victim 1 and Victim 2 and posed as those employees to send emails from their accounts, including emails making fraudulent requests for the withdrawal of investment funds.  As part of the scheme, Adejorin also allegedly purchased a credential harvesting tool designed to steal email login credentials, registered spoofed domain names, and concealed the fraudulent emails from a legitimate employee by causing the fraudulent emails to be moved to an inconspicuous location within Employee 1’s mailbox.

The indictment alleges that, as part of the scheme, Adejorin caused more than $7.5 million of Victim 2’s funds to be sent, pursuant to fraudulent withdrawal requests, from Victim 1 to bank accounts that were not Victim 2’s bank accounts.

If convicted, Adejorin faces a maximum sentence of 20 years in federal prison for each of five counts of wire fraud; a maximum of five years in federal prison for unauthorized access to a protected computer; and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for each of the two counts of aggravated identity theft.  The maximum penalty for two of the wire fraud counts could be increased by seven years for knowingly falsely registering and using a domain name.  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. 

United States Attorney Erek L. Barron commended the FBI, Baltimore Field Office, for its work in the investigation and thanked the FBI Legal Attaché in Accra, Ghana, and the Republic of Ghana’s Economic and Organized Crime Office, the Office of Attorney General and Ministry of Justice, and the Ghana Immigration Service, for their valuable assistance in this case.  Mr. Barron thanked Assistant U.S. Attorney Coreen Mao, 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.

# # #

Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Raekwon McMann, age 26, of Baltimore, yesterday to 25 years in federal prison, followed by five years of supervised release, for a racketeering conspiracy, including two murders and two attempted murders, related to his participation in the violent street gang known as Cruddy Conniving Crutballs or Triple C.  Triple C operated throughout Baltimore City. 

The sentence was announced United States Attorney for the District of Maryland Erek L. Barron; 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.

According to McMann’s plea agreement and other court documents, Triple C members engaged in a pattern of criminal racketeering activity between 2015 and 2020, including more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings, in order to promote the reputation of Triple C and to command respect from the neighborhood.  Other spin-offs of the gang are “SCL” and recently, “TRD.”

            As detailed in the plea agreement, the gang benefitted financially from selling narcotics, murdering drug dealers, taking contract killings, and engaging in street robberies.  Triple C members also robbed dice games for cash and occasionally carjacked vehicles.  Members divided the proceeds of illegal activities among those who participated in the crimes, and often contacted each other to commit a robbery if a member needed money.  

Triple C members routinely used social media to identify and locate victims and to communicate with each other and share information concerning possible retaliation for violent crimes committed by gang members.  Triple C members and associates used at least 14 firearms to commit crimes, often trading with each other or other groups to avoid detection through ballistic evidence.  Details of the crimes committed by Triple C members were publicized on social media and thus were well-known to CCC members.  Members of Triple C often critiqued each other after committing crimes regarding ways to improve their performance.

McMann admitted that he was present at two murders during which at least one member of the Triple C conspiracy discharged a firearm, including the murder of Darius Mason on July 29, 2018, and the murder of Larry Matthews on April 22, 2019.  In addition, McMann was present at two attempted murders on February 24, 2019 and April 14, 2019.  McMann liked to boast about his association with Triple C on social media and what members would do for each other.  McMann frequently appeared in social media posts with other Triple C members, many times with firearms.  McMann also admitted that as part of his activities with Triple C, he distributed controlled substances, including crack cocaine.  McMann also knew that a victim could be murdered or show during the course of the conspiracy.   

This investigation has led to the guilty pleas of 34 members and associates of Triple C, including Correy Cawthorn, one of the gang’s leaders.  Cawthorn, age 25, of Baltimore, is scheduled to be sentenced on January 4, 2024, at 10:00 a.m.

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

United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in this investigation and thanked the United States Marshals Service and the Office of the Baltimore City State’s Attorney for their assistance in the investigation and prosecution.  Mr. Barron thanked Assistant U.S. Attorney Patricia C. McLane and Michael C. Hanlon, who prosecuted the case.

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

# # #

Baltimore, Maryland – Eddy Blizzard, age 45, of Perry Hall, Maryland, pleaded guilty today to bank fraud, in connection with a fraud scheme in which he embezzled approximately $1 million from an elderly client’s retirement account. 

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Southeast Region Special Agent in Charge Edwin Bonano of the Federal Housing Finance Agency, Office of Inspector General.

“This defendant perpetrated a heartless scheme that preyed on a vulnerable elderly victim, stealing more than a million dollars,” said United States Attorney Erek L. Barron.  “We will continue to work with our law enforcement partners to bring to justice those who engage in these despicable schemes targeting elderly victims.  I encourage anyone who believes they may be a victim of financial fraud to contact the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”

According to his plea agreement, Blizzard held several licenses that allowed him to operate as a registered broker and a registered investment adviser per the Financial Industry Regulatory Authority (“FINRA”).  From 2003 to 2014, Blizzard was employed by a bank securities company (Bank 1) and from 2014 to 2017 he was employed by a bank investment services company (Bank 2), both in Maryland.   

As detailed in the statement of facts, victim R.M. was a resident of Maryland and had attended school through the ninth grade.  R.M. was 75 years old in January 2020.  Beginning in 1963, R.M. went to work for a Baltimore based commercial air-conditioning company, where he enjoyed a successful career installing commercial grade air conditioning units around the country.  R.M.’s employer offered him supervisory positions at the company, but R.M. declined because he was not able to read or write.  R.M. was able to continue as an air conditioning technician by memorizing facts and figures and conceptualizing things visually.  R.M. routinely worked approximately 15 to 30 hours of overtime per week during his career to make extra money.  In 2003, after approximately 40 years of service with the air conditioning company, R.M. took a buyout and retired.  Six months later, R.M. decided to invest his retirement funds to provide an inheritance for his grandchildren.  R.M. sought investment advice from Bank 1, where he had his depository accounts.

Blizzard began working at Bank 1 shortly after R.M. began investing there and became R.M.’s financial adviser.  Blizzard admitted that in about 2005, he told R.M. that he “went out on his own” meaning that Blizzard began working as an independent financial advisor and asked R.M. if R.M. wanted to leave Bank 1 and use Blizzard as a full-time financial advisor.  Blizzard told R.M. that it would be a while before he had his own office, but he would continue to work out of the Bank 1 branch in Catonsville, Maryland.  However, Blizzard never went to work as an independent financial advisor. 

According to the plea agreement, approximately once a month, R.M. would drive from his new home in Chester, Maryland on the Eastern Shore to meet with Blizzard at Bank 1 in Catonsville, approximately one hour away; however, R.M. and Blizzard would meet in Blizzard’s car, not the office.  R.M. continued to meet with Blizzard in this way over several years.  These meetings lasted 30 to 45 minutes and R.M. was never told why they were meeting in Blizzard’s car. 

Blizzard admitted that after he became R.M.’s financial advisor, he began asking R.M. for signed blank checks.  R.M. recalled giving Blizzard 15-20 signed blank checks.  Blizzard filled in the remaining information to include the payee, the amount, the date, and detailed memo section, but R.M. did not know what the checks were for.  When R.M. received the cancelled checks in the mail, he knew Blizzard had written them out because R.M. recognized Blizzard’s handwriting.  Blizzard used these checks for personal purposes, and not for any benefit of R.M.  On approximately 12 different instances, R.M. went to his local bank to withdraw cash and was told there was not enough money in the account.  R.M. would then call Blizzard to let him know about the deficiency.  Blizzard then told R.M. to wait a day or two and there would be funds in the account to withdraw.  R.M. did not ask Blizzard why there were no funds in the account or how those funds were replenished.

During his years of investment with Blizzard, R.M. believed that his retirement funds were protected, meaning they would not lose value – a fact that Blizzard reiterated to R.M. many times.  R.M. also believed that Blizzard was handling payment of R.M.’s mortgage.

As detailed in the plea, in August 2019, R.M. realized there was a problem.  R.M. was preparing to go on a family vacation and attempted to withdraw $1,000 to $1,500 in cash from the local Bank 1 branch and was told there were not sufficient funds in the account.  R.M. attempted to contact Blizzard on his cell phone for a week with no response.  R.M. then went to Blizzard’s Perry Hall, Maryland residence to talk to Blizzard in person, knocking on the front and back doors of Blizzard’s residence.  No one came to the door, but R.M. received a voicemail from Blizzard, while he was still at Blizzard’s home.  In the voicemail, Blizzard stated that the neighbors had called him and were complaining about the banging on the door.  Blizzard further explained that all of R.M.’s money was gone, and that Blizzard had attempted suicide at his parent’s Myrtle Beach, South Carolina home, and was being hospitalized. 

On September 19, 2019, Blizzard sent an email to R.M.’s son in response to a message R.M.’s son had sent via social media to Blizzard’s wife inquiring about what happened to R.M.’s money.  Blizzard told R.M.’s son that he had made some bad investments and felt terrible about failing R.M. and that is why Blizzard tried to end his life.  As explained in the plea, Blizzard admitted that, in fact, he was never hospitalized and did not attempt suicide in South Carolina and that the reason R.M.’s account lost value was almost entirely because Blizzard withdrew R.M.’s funds, and deposited those funds into his own bank account, to use for his own purposes. 

A review of R.M.’s depository and investment accounts showed that between January 2013 and August 2019 there were a total of 242 distributions totaling approximately $1.4 million from R.M.’s retirement accounts.  Of those, 129 distributions totaling $1.2 million were specifically requested from R.M.’s retirement accounts instead of being regular systematic annuity payments.  After taxes and fees were deducted from those requested payments, approximately $1 million was deposited into R.M.’s Bank 1 account.  This review also revealed that from April 2016 to April 2019 Blizzard deposited approximately 112 checks drawn on R.M.’s account into various bank accounts at Bank 1 and elsewhere that were held by Blizzard jointly with his wife or individually.  These checks totaled approximately $848,000 and were written to Blizzard or Blizzard’s wife.  A review of these checks showed that almost all had comments written on the memo section indicating various purposes such as payment of property taxes, construction, boat payments, and down payments for a new house.  

In addition, on at least three occasions Blizzard stole R.M.’s Social Security income, which was directly deposited into R.M.’s checking account.  On each occasion, once the payment was deposited into R.M.’s account, a check in the amount of $1,200 or more, signed by R.M. and made payable to Eddy Blizzard, was deposited in Blizzard’s personal account.  Also, in the fall of 2019, R.M.’s home was put into foreclosure because Blizzard failed to make the mortgage payments on R.M.’s home as he had promised.  R.M. died on March 20, 2020.

Blizzard faces a maximum sentence of 30 years in federal prison for bank fraud.  As outlined in the plea agreement, Blizzard will also be required to pay restitution in the full amount of the victims’ losses, which is at least $1,030,000 and to forfeit $848,000 in the form of a money judgment.  U.S. District Judge Stephanie A. Gallagher scheduled sentencing for Blizzard on April 30, 2024, at 11:30 a.m.

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 through 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. 

United States Attorney Erek L. Barron commended the FBI and the FHFA OIG for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Aaron S.J. Zelinsky, who are prosecuting this case.

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

# # #

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Michael Ghali, age 35, of Fairfax, Virginia, today to 38 months in federal prison, followed by three years of supervised release for a federal cyberstalking charge, related to sexually explicit and threatening messages and emails he sent to two victims.  Ghali has been detained since his arrest and remains detained.  

The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.

According to his guilty plea, beginning in June 2020, Ghali sent an acquaintance, Victim 1, a series of sexually explicit and threatening text messages using an application which allows users to acquire phone numbers to send text messages that they don’t want to be associated with their known phone number. 

During that same time, Ghali sent Victim 2, who was the head of a medical department at a Baltimore-based hospital, a series of emails from email addresses he created for the purpose of sending Victim 2 threatening messages, accusing Victim 2 of sexually abusing employees in the medical department and minors, and which claimed that the sender had photos of the abuse.  Ghali demanded that Victim 2 resign from his position at the hospital and threatened to send the purported photos of the abuse to the press.  Victim 2 knew of Ghali, as Ghali had previously completed a short medical rotation at the hospital. 

As detailed in the statement of facts, after receiving the threatening messages, Victim 1 contacted the Anne Arundel County Police Department and obtained a protective order that became effective on July 7, 2020.  Similarly, after Victim 2 received an email from Ghali which threatened Victim 2’s life and the lives of his grandchildren, Victim 2 hired a professional security detail and changed his surgical and other schedules.  Victim 2 suspected that Ghali sent the messages and became aware that in 2019 Ghali had been charged in Fairfax, Virginia, with brandishing an AR-15 assault rifle within 1000 feet of a school.  On July 21, 2020, the hospital obtained a temporary restraining order and ultimately a preliminary injunction against Ghali on behalf of Victim 2.

On August 25, 2020, law enforcement executed a search warrant at Ghali’s residence, seizing several electronic devices, including two Apple iPhones, as well as three boxes of .44 caliber ammunition.  From a Federal Firearms Licensee in Fairfax County law enforcement also seized a .22LR caliber semi-automatic firearm, a 10-round capacity magazine, and additional ammunition.  A subsequent review of Ghali’s phone revealed another social media page Ghali created in which he posted photos of individuals, including Victim 1.  Several images of Victim 1 with sexually explicit captions were located on the page.

According to the plea agreement, on August 28, 2020, Ghali obtained a new Apple iPhone and, in violation of the protective orders that were in place, sent Victim 1 and Victim 2 additional messages and emails.  In addition, Ghali posted sexually explicit and threatening messages regarding Victim 1 to another of his social media pages.  On October 9, 2020, law enforcement executed a second search warrant at Ghali’s home which authorized seizure of among other things, the new Apple iPhone used by Ghali to send the message to Victim 1.  Law enforcement ultimately were unable to locate the device but did locate a receipt for its purchase and packaging material.

U.S. Attorney Erek L. Barron commended the FBI for its work in the investigation.  Mr. Barron also thanked Assistant United States Attorney Paul A. Riley, 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 and https://www.justice.gov/usao-md/community-outreach.

# # #

Baltimore, Maryland – U.S. District Judge Brendan A. Hurson sentenced Dementrous Von Smith, a/k/a “Meecho” and “El Meecho,” age 36, of Waldorf, Maryland, to 53 months in federal prison, followed by three years of supervised release, for a wire fraud conspiracy, wire fraud and aggravated identity theft, in relation to the submission of fraudulent CARES Act unemployment insurance claims in Maryland, California and Arizona totaling at least $1.5 million.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division (USPIS); Special Agent in Charge Troy W. Springer of the National Capital Region, U.S. Department of Labor - Office of Inspector General (DOL-OIG); Chief Amal E. Awad of the Anne Arundel County Police Department; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (MSP); and Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field 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 also 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 his plea agreement, from March 2020 to October 2021, Smith and his co-conspirators impersonated victims to submit fraudulent claims for unemployment insurance (UI) benefits in Maryland and California.  As part of the scheme, Smith and his co-conspirators used electronic messages, phone calls, electronic mail and other means to aggregate and exchange the personally identifiable information (“PII”) of identity theft victims with each other, created false email address and phone numbers for the victims, and used the fake emails and phone numbers in the fraudulent UI applications.  

Once Smith and his co-conspirators received the fraudulently obtained benefits on debit cards, they used the cards for cash withdrawals and other transactions for their own financial benefit.  For example, in July 2021, Smith was seen on bank surveillance using ATMs in Laurel, Maryland to withdraw $4,000 over four transactions, using the UI profile in the name of one of the identity theft victims.  Bank records also reveal that Smith called the bank regarding at least 12 UI profiles of actual victims whose identities were used to open accounts and obtain benefits without their permission.  These victims are tied to texts and calls between Smith and his co-conspirators over several months.  Smith and his co-conspirators personally conducted or attempted to conduct transactions involving at least $1.5 million in UI benefits.

On July 7, 2022, law enforcement executed search warrants for Smith’s residence and vehicle, recovered, among other items, a 7.62 caliber firearm, a loaded 1911 style pistol, several magazines loaded with multiple rounds of various caliber ammunition, more than 176 rounds of various caliber ammunition, and $9,100 in cash.

Co-defendant Michael Akame Ngwese Ay Makoge, a/k/a “Hype” and “2Hype,” age 28, of Laurel, Maryland pleaded guilty to his role in the fraud scheme and faces a maximum sentence of 30 years in federal prison for the wire fraud conspiracy and a mandatory two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft.  Judge Hurson has scheduled sentencing for Makoge on February 1, 2024, 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.

United States Attorney Erek L. Barron commended the USPIS, DOL-OIG, the Anne Arundel County Police Department, HSI, MSP, and ATF, for their work in the investigation.  Mr. Barron thanked the United States Marshals Service, the Prince George’s County Police Department, the Montgomery County Police Department, the Washington, D.C. Metropolitan Police Department and the Charles County Sheriff’s Office for their assistance.  Mr. Barron thanked Assistant U.S. Attorney Colleen E. 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 and https://www.justice.gov/usao-md/community-outreach.

# # #

Greenbelt, Maryland – A federal grand jury returned an indictment charging six individuals for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft, relating to the submission of fraudulent CARES Act unemployment insurance (“UI”) claims.  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 indictment was returned on October 24, 2023, and unsealed today upon the arrests of several defendants.  The following defendants are charged in the indictment:

Lawrence Nathanial Harris, a/k/a “Manman” and “Biggbank,” age 30, of Temple Hills, Maryland; Ahmed Hussain, a/k/a “Oso,” age 22, of Oxon Hill, Maryland; Zakria Hussain, age 26, of Washington, D.C.; Terry Chen, a/k/a “Mike Livingston” and “2Trunt Up,” age 24, of Bowie, Maryland; Kiara Smith, age 26, of Fort Washington, Maryland; and
Bryan Nushawn Ruffin, age 26, of Woodbridge, Virginia.

Smith and Ruffin were employed by Company 1, which provided professional support services to the Maryland Department of Labor to review UI claims and administer UI benefits. 

Ahmed Hussain and Terry Chen are expected to have an initial appearance in U.S. District Court in Greenbelt later this afternoon.  Harris, Smith, and Ruffin are expected to have initial appearances next week.  Zakria Hussain will have his initial appearance upon being taken into custody.

The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Troy W. Springer of the National Capital Region, U.S. Department of Labor - Office of Inspector General; and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.

“In partnership with the U.S. Department of Labor – Office of Inspector General and the FBI, our COVID-19 Strike Force prosecutors have used data to uncover alleged fraud, waste, and abuse as outlined in today’s indictment,” said United States Attorney Erek L. Barron.  “This case is an example of the results being obtained by our office’s COVID-19 Strike Force, which is one of five nationwide that the Attorney General has designated to fight pandemic related fraud.”

“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving Unemployment Insurance programs,” stated Troy W. Springer, Special Agent in Charge of the National Capital Region, U.S. Department of Labor - Office of Inspector General. “We will continue to work closely with the U.S. Attorney’s Office and our other law enforcement partners on the Maryland COVID-19 Fraud Strike Force, as well as the Maryland Department of Labor, to protect the integrity of programs intended for unemployed American workers, including those who were affected by the COVID-19 pandemic.”

“The FBI is pleased to be a part of the COVID-19 Strike Force in Maryland," said Acting Special Agent in Charge R. Joseph Rothrock of the FBI'S Baltimore Field Office. "We will continue to work with our law enforcement partners to seek justice against those individuals who shamelessly defrauded pandemic relief programs during a time of uncertainty and crisis.”

The CARES Act and other federal legislation provided expanded financial assistance to Americans throughout the pandemic, and expanded eligibility for Unemployment Insurance benefits.

According to the 18-count indictment, beginning in at least January 2021 and continuing until about September 2023, the defendants and their co-conspirators engaged in a scheme to defraud the United States, the State of Maryland, multiple financial institutions and multiple individuals—including at least six identity theft victims—by submitting false and fraudulent claims for UI benefits to the Maryland Department of Labor (“MD-DOL”), the agency in Maryland responsible for processing those claims.  As part of the conspiracy, the defendants obtained and attempted to obtain more than $500,000 through the submission of fraudulent UI claims.

As detailed in the indictment, the defendants possessed and used computers that Company 1 had issued to Smith and Ruffin to access nonpublic UI data and databases maintained by the MD-DOL  The indictment alleges that the defendants and their co-conspirators used their access to MD-DOL databases to change information on existing UI claims, including the contact email address, the online account password, and the payment method for existing UI claims.  In addition to allegedly submitting false and fraudulent information in support of UI claims using the personal identifying information (PII) of identity theft victims, the indictment alleges that the defendants and their co-conspirators used their access to the MD-DOL databases to upload and approve documents submitted in support of fraudulent UI claims, remove fraud holds on UI claims, certify weeks for determining UI benefits, and engage in other actions to facilitate the payment of fraudulent UI benefits.  The MD-DOL disbursed the UI benefits to bank accounts that were believed to be those of the UI applicants, but allegedly were opened and controlled by the defendants and their co-conspirators.

If convicted, the defendants all face a maximum sentence of 20 years in federal prison for the wire fraud conspiracy.  All the defendants except Ahmed Hussain also face a maximum of 20 years in federal prison for each count of wire fraud and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for 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.

United States Attorney Erek L. Barron commended the DOL-OIG and the FBI for their work in the investigation and thanked the Maryland Department of Labor for its assistance.  Mr. Barron thanked Assistant U.S. Attorneys Harry M. Gruber and Paul A. Riley, who are 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 – U.S. District Judge Paula Xinis sentenced former Correctional Officer Owen Nesmith, age 54, of Baltimore, Maryland, today to eight years in federal prison, followed by three years of supervised release, for three counts of deprivation of rights under color of law and to making a false statement, all related to his sexual contact with three victims who were incarcerated at the Maryland Correctional Institution Jessup.  

The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Carolyn J. Scruggs of the Maryland Department of Public Safety and Correctional Services.

According to his guilty plea, Nesmith was employed as a Correctional Officer (“CO”) Lieutenant at Maryland Correctional Institution Jessup (“MCIJ”).  Nesmith admitted that from 2005 to 2017, he deprived three incarcerated individuals of their civil rights by sexually assaulting them.  Specifically, in February 2005, Nesmith followed Victim 1 back to his cell.  No other inmates were present in the housing unit at that time.  Nesmith told Victim 1 that he wanted Victim 1 to perform a sex act on Nesmith, which he did.  Victim 1 did not consent to this act, which was a deprivation of rights under color of law.

As detailed in the plea agreement, in July 2015, Victim 2 needed an identification badge (“ID”) and Nesmith offered to take Victim 2 to the ID office.  On the way to the office, Nesmith grabbed Victim 2’s genital area, then shut a gate in the area and told Victim 2 that he needed to conduct a strip search.  After removing Victim 2’s pants, Nesmith sexually assaulted Victim 2, causing him pain and bodily injury.  Nesmith further admitted that in December 2017, he engaged in a sex act with Victim 3, without his consent, when Victim 3 came to Nesmith’s office to discuss obtaining a job in sanitation.  At that time, Nesmith was the acting lieutenant of the building and Victim 3 needed Nesmith’s approval to obtain that job.  Finally, Nesmith admitted that when questioned by law enforcement, he falsely stated that he had never had any inappropriate relationships or sexual contact with any inmates while he was at MCIJ.

U.S. Attorney Erek L. Barron commended the FBI and the Maryland Department of Public Safety and Correctional Services for their work in the investigation.  Mr. Barron thanked Assistant United States Attorneys Sean R. Delaney and Katelyn Semales, 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 and https://www.justice.gov/usao-md/community-outreach.

# # #

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Donald Fortune, Jr., age 19, of Greenbelt, Maryland, today to eight years in federal prison, followed by three years of supervised release for federal charges of illegal possession of a machinegun, possession with intent to distribute oxycodone and fentanyl, and possession of a firearm in furtherance of a drug trafficking crime.  

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department (“PGPD”).

According to his guilty plea, law enforcement began investigating Fortune in April 2022 for suspected firearms and drug trafficking offenses.  As part of the investigation, PGPD detectives monitored public posts from Fortune’s social media account where he displayed firearms and advertised drugs for sale.  Based on their investigation, including the social media posts, a search warrant was obtained for Fortune’s apartment.

On June 2, 2022, law enforcement was conducting surveillance outside Fortune’s apartment building in preparation for executing the warrant.  In the late morning, Fortune exited the building and approached a silver Honda Civic.  Fortune removed a large bag of blue pills, suspected to be oxycodone, from a Gucci satchel that he was wearing and engaged in a suspected hand-to-hand drug transaction with the driver of the Civic.  Fortune then placed the pills back in the Gucci satchel and returned to his apartment.

According to court documents, a short time later, Fortune, still wearing the Gucci satchel, left the apartment building with a woman.  They both got into a rideshare and the vehicle drove away.  PGPD police conducted a traffic stop of the ride-share vehicle a short time later and observed Fortune reach down toward his feet.  Officers asked Fortune, who was still wearing the Gucci satchel, to step out of the vehicle and officers observed a .40-caliber semi-automatic pistol on the floorboard where Fortune had been seated.  The gun, which had an obliterated serial number, was loaded with one round in the chamber and 21 rounds in an extended magazine and was equipped with a full auto selector switch on the rear of the handgun slide, making it a machinegun under federal law.  A search of the Gucci satchel recovered a large bag containing 282 30mg blue pills, later found to be counterfeit oxycodone pills containing fentanyl.  Officers also recovered $790 in cash from Fortune.  Fortune was arrested and charged in Prince George’s County.  He was released on June 14, 2022, pending trial.

Fortune admitted that he continued to sell drugs and possess firearms after his release, including coordinating a drug deal around a court appearance.  Fortune switched to using a second social media account in mid-July 2022, believed by investigators to be an effort to evade law enforcement.  Investigators began monitoring this account.  Fortune continued to advertise pills for sale and display firearms, despite being on pretrial release.  For example, on July 26, 2022, investigators observed a public-facing live video that was streaming from Fortune’s second social media account, which showed Fortune smoking a suspected marijuana cigarette, flashing two prescription bottles, and holding an AR-style pistol.  Fortune then turned the camera around to show a table display of at least six firearms, including two AR-style pistols, one handgun with an extended magazine, and one handgun with a suspected full-automatic switch, with cash fanned out in front of the firearms.

As detailed in the plea agreement, on the evening of July 26, 2022, PGPD officers were on patrol in the 6400 block of Pennsylvania Avenue in District Heights, Maryland and saw Fortune smoking marijuana on the sidewalk in front of a residence.  As the officer was parking his car in the parking lot, he saw Fortune walk behind a pick-up truck, crouch down, and throw an item on the ground before walking away.  Believing Fortune had discarded a firearm or contraband, the officer got out of his unmarked police cruiser to speak with Fortune, who continued to walk away.  As the officer got closer, Fortune began running and was apprehended a short distance away.  Another officer arrived and stayed by the location where Fortune had been seen throwing something.  A search of the area recovered a privately manufactured 5.56 caliber semi-automatic AR-15 style pistol with no serial number, also known as a “ghost gun.”  The gun was loaded with 30 rounds of ammunition in the magazine and one in the chamber.  Officers searched Fortune and recovered two pill bottles containing 16 real or counterfeit oxycodone pills.  The pills were tested and eight were found to contain approximately 5mg of oxycodone each and the rest were found to be counterfeit oxycodone pills that contained fentanyl. 

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 FBI’s Cross Border Task Force and the Prince George’s County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Patrick D. Kibbe and Joshua A. Rosenthal, 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.

# # #

Baltimore, Maryland - U.S. District Judge George L. Russell, III today sentenced Samuel Charles Hardeman, age 55, of Easton, Maryland, to 18 years in federal prison, followed by lifetime supervised release, for attempted coercion and enticement of a minor to engage in illicit sexual activity.  Hardeman had a previous federal conviction in a 2002 case in the Northern District of Georgia for use of a computer to entice a child to engage in sexual activity, for which he was sentenced to 174 months in prison.  Judge Russell ordered that, upon his release from prison, Hardeman must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”). 

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Talbot County Sheriff Joseph Gamble.

According to his guilty plea, from December 11, 2022 through December 26, 2022, Hardeman engaged in conversations with an undercover law enforcement officer (UC) who purported to have a 10-year-old daughter.  During the conversations, Hardeman expressed how he wanted to have sex with the 10-year-old, sent a video containing child pornography to the UC, and made plans to drive to New York, where the UC purportedly lived, to have sex with the 10-year-old.  Hardeman communicated with the UC by phone, including a video call, text, and using encrypted messaging platforms.  All of this occurred while Hardeman was on the sex offender registration for a previous federal sex offense conviction.  During a call on December 26, 2022, Hardeman expressed hesitation about traveling to New York to visit the UC and her daughter.  The UC did not hear from Hardeman after that time.

On March 14, 2023, a federal search warrant was executed at Hardeman’s residence and several electronic devices were seized.  A forensic examination of one of the phones revealed the encrypted messaging account which Hardeman used to communicate with the UC, a text message thread between Hardeman and the UC, photos sent to Hardeman by the UC at Hardeman’s request, the photos and videos that Hardeman sent to the UC, and dozens of images and videos depicting minors engaged in sexually explicit conduct.  Forensic examinations of several other devices and Hardeman’s Cloud storage account recovered additional images of child sex abuse material, including bestiality.

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.                                                                                                                                                             

United States Attorney Erek L. Barron commended the FBI and the Talbot County Sheriff’s Office for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Spencer Todd and Paul E. Budlow, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

# # #

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Ronald Eugene Watson, also known as Sabir Muhammad, age 59, of Brandywine, Maryland, today to 27 months in federal prison, followed by one year of supervised release, for 23 counts of aiding and assisting in the preparation of false tax returns.  Judge Chuang also ordered Watson to pay restitution of $268,634.35.  Watson was convicted on March 9, 2023, after an eight-day trial.

The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to the evidence presented at trial, Watson was a self-employed tax return preparer operating SW Accounting Associates (“SWAA”) in Largo, Maryland.  The evidence proved that from at least 2015 to at least 2017, Watson prepared and electronically filed with the IRS fraudulent Forms 1040 and related Schedules A and C for his taxpayer-clients.  Watson included inflated and fictitious tax deductions and fraudulent business profits and losses in order to obtain larger tax refunds to which the taxpayer-clients were not entitled.  According to witness testimony, Watson varied his preparation fees depending on the amount of the refund requested, with fees typically ranging from approximately $500 up to approximately $1,500.  The tax loss to the United States was $325,330.  Additionally, Watson failed to file his own tax returns for two years and willfully filed false tax returns in three other years.

U.S. Attorney Barron and Acting Deputy Assistant Attorney General Goldberg commended the IRS-CI for their work in the investigation.  Mr. Barron and Mr. Goldberg also thanked Assistant United States Attorney Leah B. Grossi and Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division, 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 and https://www.justice.gov/usao-md/community-outreach.

# # #

Baltimore, Maryland – David Lee Bradby, age 29, of Baltimore, Maryland, pleaded guilty today to making interstate threatening communications, related to text messages he sent to Victim 1, a woman living in West Virginia. 

The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.

According to his guilty plea, between February 13, 2022, and May 24, 2022, Bradby sent 12 text communications to Victim 1 from six different mobile numbers to which Bradby subscribed.  In the text messages, Bradby threatened to kill the victim and to assault her family members.  Neither Bradby nor Victim 1 knew each other. 

As detailed in his plea agreement, Bradby, a Black man, also admitted that in February 2022, he made threats to Victim 2, a Black female who lived in the Baltimore area.  In making the threats to Victim 2, Bradby posed as J.M.S. and made virtually the same threats to Victim 2 as he had to Victim 1, who was also Black.  Bradby also threatened to blow up Victim 2’s house, claimed to know where Victim 2 worked, and included pictures and symbols used by the Ku Klux Klan in his messages to Victim 2.  Bradby admitted that he sent the messages to Victim 2 to implicate J.M.S.  Bradby and Victim 2 did not know each other. 

Bradby faces a maximum sentence of five years in federal prison for making interstate threatening communications.  U.S. District Judge Brendan A. Hurson has scheduled sentencing for February 7, 2024 at 11:00 a.m.  Bradby remains detained.

U.S. Attorney Erek L. Barron commended the FBI for its work in the investigation.  Mr. Barron also thanked Assistant United States Attorney P. Michael Cunningham, 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 https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

# # #

Greenbelt, Maryland – U.S. District Judge Lydia K. Griggsby sentenced William Reyes Garcia, a/k/a “Will,” age 33, of Silver Spring, Maryland, yesterday to 15 years in federal prison, followed by five years of supervised release for conspiracy to distribute cocaine, for possession with intent to distribute cocaine, as well as for being a felon in possession of ammunition.  

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Chief Marcus Jones of the Montgomery County Police Department; and Chief Malik Aziz of the Prince George’s County Police Department.

According to Reyes Garcia’s plea agreement and other court documents, between September 2020 and January 2022, Reyes Garcia and his co-conspirators participated in a drug trafficking organization (DTO) that distributed at least five kilograms of cocaine.  Based on chats, phone calls, and other intercepted communications and evidence, Reyes Garcia was a manager or supervisor of the DTO.

As detailed in the statement of facts, during the investigation four packages containing approximately 15.65 kilograms of cocaine were seized by law enforcement.  The packages were shipped from Brownsville, Texas to an address associated with the DTO, Business 1 in Beltsville, Maryland.  Reyes Garcia’s fingerprints were obtained from one of the lids on the cocaine containers in the packages.  Law enforcement identified three additional packages, which investigators believe also contained narcotics, that were sent to Business 1 and to a co-conspirator’s residence.  Tracking information obtained from the shipping company revealed that an IP address associated with Reyes Garcia tracked the seized packages containing cocaine as well as the additional packages.  In October 2021, law enforcement seized an approximately two-kilogram package of cocaine that was sent to Reyes, Jr.  Intercepted communications following the seizure allegedly showed that this package of cocaine was intended for distribution by the DTO.

Search warrants were executed at locations associated with Reyes Garcia’s residence on January 20, 2022, and law enforcement recovered: more than 139 grams of cocaine and more than 101 kilograms of marijuana; a privately manufactured 9mm semi-automatic handgun, commonly known as a “ghost gun”; a magazine loaded with 22 rounds of 9mm ammunition; 53 rounds of .40-caliber ammunition; 42 rounds of .45-caliber ammunition; 50 rounds of .380-caliber ammunition; firearms parts, including a frame, slide, barrel, barrel spring, and magazine; and drug paraphernalia, including digital scales with drug residue and a money counter.

Reyes knew that he had a previous felony conviction and was prohibited from possessing firearms or ammunition.

Co-defendants Fabricio Alexis Rivera, a/k/a “Breeze,” age 32, of Rockville, Maryland and Rodney Ricky Rivera, a/k/a “Rodney,” age 29, of Beltsville, Maryland previously pleaded guilty and are awaiting sentencing.  Fernando Josue Garcia, a/k/a “Nando,” age 32, of Glenn Dale, Maryland and Noel Reyes, Jr., a/k/a “June,” age 30, of Bowie, Maryland, pleaded guilty to their roles in the conspiracy and were sentenced to 63 months and 72 months in federal prison, respectively.  Charges remain pending against three other co-defendants.

This case is 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 Erek L. Barron commended HSI, the DEA, the Montgomery County Police Department, and the Prince George’s County Police Department for their work in the investigation and thanked the Maryland State Police, the ATF, the U.S. Postal Inspection Service, the Montgomery County State’s Attorney John McCarthy and Prince George’s County State’s Attorney Aisha Braveboy and their offices for their assistance in the investigation and prosecution.  Mr. Barron thanked Assistant U.S. Attorneys Joel Crespo and Elizabeth Wright, 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.

# # #

Greenbelt, Maryland – Federal inmates Jason Haddox, age 40, and Jonathan Henry, age 32, pleaded guilty to conspiracy to commit wire fraud and mail fraud, and Henry also pleaded guilty to aggravated identity theft, relating to the submission of fraudulent CARES Act unemployment insurance benefits.  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 pleas were announced by United States Attorney for the District of Maryland Erek L. Barron; 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.

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, March 22, 2020 through at least June 2021, Haddox and Henry were inmates at the Federal Correctional Institution, Fort Dix (“FCI Fort Dix”).  Haddox, Henry, 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 personally 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.

In addition to fraudulent Maryland UI claims, Haddox submitted fraudulent UI claims in Arizona, Pennsylvania, West Virginia, Louisiana, Illinois, and New York, totaling at least $292,451 in losses.  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.

Haddox faces a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud and mail fraud.   U.S. District Judge Deborah K. Chasanow has scheduled sentencing for him on March 13, 2024, at 2:30 p.m.

Henry and the government have agreed that, if the Court accepts the plea agreement, they will jointly recommend that Henry be sentenced to 97 months in federal prison.  Judge Chasanow has scheduled sentencing for Henry on March 22, 2024 at 9:30 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.

United States Attorney Erek L. 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.

# # #

Baltimore, Maryland – Oscar Efrain Zavala Urrea, age 23, an El Salvadoran national residing in Silver Spring, Maryland, pleaded guilty to his participation in a racketeering conspiracy, including a murder, related to his activities as part of the MS-13 gang.

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations Baltimore; Chief Marcus Jones of the Montgomery County Police Department and Montgomery County State’s Attorney John McCarthy.

According to court documents, La Mara Salvatrucha gang, also known as “MS-13,” is an international criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, Frederick County, and throughout the United States.  In Maryland and elsewhere, MS-13 members are organized in “cliques,” smaller groups that operate in a specific city or region.  MS-13 members are required to commit acts of violence, both to maintain membership and discipline within the gang and against rival gangs.  One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.  Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increases the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to promotion to a leadership position. 

As detailed in the plea agreement, from at least January 2020, Zavala Urrea was a member or associate of the MS-13 Fulton Locos Salvatruchas (“FLS”) clique and agreed with members of MS-13 to conduct and participate in the gang’s affairs through a pattern of racketeering activity that included murder, conspiracy to commit murder, extortion and drug distribution. 

In the Spring of 2020, a MS-13 member, who was a former roommate of Victim 20, was assaulted by Victim 20 and others because they believed that MS-13 member had stolen property from Victim 20.  After being told of the assault, MS-13 members indicated that the gang would have to retaliate against Victim 20 to maintain its standing.  MS-13 gang members also believed that Victim 20 was associated with the rival 18th Street gang, which was another sufficient reason to kill him.  

According to the plea agreement, over the course of several weeks Zavala Urrea and other MS-13 members met to plan the murder of Victim 20, including discussing what role each participant would play, conducted surveillance to determine when Victim 20 left the apartment, and obtained guns to be used in the murder.  The night of May 25, 2020, Zavala Urrea and other MS-13 gang members gathered in a park in Silver Spring, Maryland and Zavala Urrea met with each gang member to discuss the plan to murder of Victim 20, which was to happen the next morning.

As detailed in court documents, on May 26, 2020, at approximately 7:05 a.m., two FLS MS-13 gang members approached Victim 20 as he left his apartment in Silver Spring, Maryland and fired handguns at him repeatedly, hitting him eight times.  Victim 20 died as a result of the gun shots. 

Following the murder, Zavala Urrea and a co-conspirator traveled to Annapolis where they met a third MS-13 gang member.  Zavala Urrea and the co-conspirator changed their clothes and disposed of the old clothing.  They gave the third gang member a backpack containing two firearms for safe keeping.  A few days later, Maryland State Police stopped the third gang member who had the backpack containing the two firearms.    

Zavala Urrea admitted that, to assist the gang to raise money, he also participated in the sale of marijuana and the collection of extortion money from brothels and other businesses, providing the proceeds to gang leadership. 

The government and the defendant have agreed to recommend that, if the Court accepts the plea, Zavala Urrea should be sentenced to between 20 and 25 years in federal prison.  Chief U.S. District Judge James K. Bredar has scheduled sentencing for March 19, 2024 at 2:00 p.m.

Anyone with information about MS-13 is encouraged to provide their tips to law enforcement.  The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know.  You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.

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

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 FBI, HSI, Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Barron thanked Assistant U.S. Attorneys Kenneth S. Clark and Anatoly Smolkin, 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/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.

# # #

Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Elliott Dennis Kleinman, age 69, of Bel Air, Maryland, yesterday to 42 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud and tax evasion, in connection with a kickback scheme that defrauded his employer of more than $20 million.   Judge Chasanow also ordered Kleinman to pay restitution of $19,300,757 and to forfeit $2,038,997.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to his guilty plea, Kleinman was a longtime employee of Company 1, a family-owned global business headquartered in New York, but with manufacturing facilities in Belcamp and Abingdon, Maryland, both in Harford County.  Beginning in 2012, Kleinman and another employee, Eugene DiNoto, began to use their management positions at Company 1 to execute a fraudulent billing scheme whereby they would get illegal kickbacks from various drum vendors doing business with Company 1, which used drums to store and transport its products.  As the facility managers, Kleinman and DiNoto oversaw the purchasing and storing of drums for use at the Harford County manufacturing facilities.  They also had authority to review drum invoices and authorize payments to the drum vendors.

Anthony P. Urcioli, Sr., is the owner and President of Tunnel, Barrel & Drum Co, Inc. (TBD), located in Carlstadt, New Jersey, and of another drum supply company called Hartford Fibre Drum, Inc. ( Hartford), both of which did business with Company 1.  After TBD became a drum supplier to Company 1, Kleinman and DiNoto entered into arrangement with Urcioli whereby TBD could continue selling drums to Company 1 if Urcioli agreed to fraudulently invoice Company 1 for more drums than TBD actually sold and delivered to the company.  If Urcioli agreed to falsify its invoices in this way, Kleinman and DiNoto said that they and TBD could split the extra money Company 1 paid TBD for the made-up drum deliveries 50/50.  DiNoto told Urcioli that he would split his share of the kickbacks with Elliot Kleinman 75/25.  Urcioli agreed to participate in the false billing scheme.  In December 2013, Urcioli told DiNoto about Hartford, the other drum supply company Urcioli owned.  After receiving records that proved that Hartford was a legitimate company, DiNoto and Urcioli agreed to expand the kickback scheme to include Hartford.   

From approximately January 2012 to January 31, 2020, DiNoto contacted Urcioli at least once a week to discuss the number and type of drums that DiNoto actually wanted delivered to Company 1’s Maryland facilities.  During the same conversation, DiNoto told Urcioli how many additional drums to charge, but not deliver, to Company 1.  After Urcioli created the invoices that fraudulently billed Company 1 for both delivered and undelivered drums, DiNoto approved the invoices and sent them to Company 1’s headquarters to be paid.  In addition, Urcioli created a handwritten purchase order ticket that summarized the breakdown of actual and bogus drum orders and how the kickback amounts were calculated.  Urcioli placed a copy of the purchase order ticket in an envelope along with DiNoto’s and Kleinman’s share of the kickback amount payable via checks from TBD and Hartford, and then sent the envelope to DiNoto’s and Kleinman’s personal residences. 

Urcioli wanted to pay the kickbacks to Kleinman and DiNoto by check so the payments would look like payments to drum wholesalers and be deductible as a cost of goods sold on TBD’s tax returns.  Kleinman wanted his kickback checks payable to a company he formed called “EDK Management, LTD.”  Urcioli agreed, and in addition to making the kickback checks drawn on TBD and Hartford accounts payable to that company, Urcioli wrote the word “drums” on the checks to further the pretense of legitimate purchases.            

Between January 2012 and January 31, 2020, Urcioli falsely invoiced Company 1 a total of $20,300,757 and Kleinman’s share of the kickbacks was approximately $2,307,121.  Kleinman opened and maintained two commercial bank accounts for EDK, one in the name of “EDK Management Ltd,” and the other in the name of “EDK Management Ltd t/a Main Street Cigars,” a retail store he owns, located in Bel Air, Maryland.  Kleinman deposited the drum vendor’s checks into EDK’s business account, where it was withdrawn as cash, used to pay personal expenses, or transferred to the bank account for Main Street Cigars.     

For the period of 2017 through 2019, TBD paid Kleinman a total of approximately $1,034,911 in kickbacks for his role in the fraudulent billing scheme.  Kleinman’s 2017 through 2019 income tax returns filed with the IRS did not report those kickback payments as personal or business income, resulting in a loss to the U.S. government of approximately $291,143.

Eugene Andrew DiNoto, age 53, of Bel Air, Maryland, and Anthony P. Urcioli, Sr., age 78, of Park Ridge, New Jersey, previously pleaded guilty to their roles in the scheme.

United States Attorney Erek L. Barron commended the FBI and IRS-CI for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.

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

# # #

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Clarence Coby, age 48, of Baltimore, Maryland, to 14 years in federal prison, followed by four years of supervised release, for possession with intent to distribute fentanyl.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; Anne Arundel County Police Chief Amal E. Awad; and Annapolis Police Chief Edward Jackson.

According to his guilty plea, in November 2019, the DEA received information about a number of drug trafficking organizations operating in and around the Annapolis, Maryland area and identified Orland Ray Coleman, Sr. as a drug trafficker responsible for distributing drugs to those organizations.  Additional investigation revealed that Clarence Coby was a source of supply to Coleman, specifically providing Coleman and other Annapolis-areas drug traffickers with fentanyl and cocaine.

In mid-May 2021, several search warrants were executed on houses and vehicles associated with Coby.  Investigators recovered at Coby’s house, a total of 5 guns and ammunition, more than a kilogram of cocaine and approximately 62 grams of fentanyl pills, and approximately $109,941 in drug proceeds.  Investigators also executed search and seizure warrants on Coby’s vehicles and recovered approximately seven kilograms of fentanyl, 947 grams of cocaine and 264 grams of heroin hidden in secret compartments in one of Coby’s vehicles.

On October 10, 2023, Orlando Ray Coleman, Sr., age 48, of Millersville, Maryland pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl.  Coleman is expected to be sentenced to eight years in federal prison at his sentencing on January 19, 2024, at 2:00 p.m.

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

This prosecution is part of the Department of Justice’s 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 reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.  The Baltimore SF is comprised of agents and officers from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the U.S. Postal Inspection Service, the U.S. Secret Service, the Baltimore Police Department, the Baltimore City Sheriff’s Office, the Baltimore City State’s Attorney’s Office, the Anne Arundel County Police Department, the Baltimore County Police Department, the Maryland Department of Public Safety and Correctional Services, the Maryland National Guard, the Maryland State Police, and the Maryland Transportation Authority, and the prosecution is being led by the Office of the United States Attorney for the District of Maryland.

United States Attorney Erek L. Barron commended the DEA, the FBI, the Anne Arundel County Police Department, and the Annapolis Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney LaRai Everett, 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 https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.

# # #

Baltimore, Maryland – U.S. District Judge Matthew J. Maddox sentenced Deron Johnson, a/k/a “DJ,” age 52, of Baltimore, Maryland, to 19 years in federal prison, followed by three years of supervised release, for conspiracy to commit a Hobbs Act robbery and for committing the robbery. 

The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Richard Worley of the Baltimore Police Department.

According to their plea agreements, on September 29, 2020, Johnson and co-defendants George Felds and Joseph Williams conspired to rob a 16-year-old of drugs and drug proceeds.  Specifically, at approximately 4:24 a.m., Johnson and the victim pulled into the parking lot of a hotel in the 6500 block of Frankford Avenue in Baltimore, where Williams had been staying for several months, selling drugs under a fictitious name.  Johnson was working as a “hack” driver and gave the victim a ride to the hotel on the ruse that the victim would be selling drugs to Williams and Fields.

As detailed in the plea agreements, Williams and Fields approached Johnson’s van and Fields held out money as though he was ready to make a purchase.  Williams and Fields then began robbing the victim while Johnson walked to the rear of the van and smoked.  Fields admitted that he pinned the victim down in the front passenger seat of the van and went through his pockets.  The victim struggled, flailing his arms and legs.  Williams admitted that he then pulled out a handgun and fired a single shot into the victim’s chest at close range.  The victim stumbled away from the van and collapsed on the ground.  Johnson, Williams, and Fields and then got into the van and Johnson drove away.  A hotel surveillance camera captured the entire incident.  The victim died later that day after being taken to the hospital.  No drugs, money, or cell phone were recovered from the victim’s personal effects. 

Later that morning, the conspirators returned to the hotel in Johnson’s van, while police were still processing the scene.  Johnson, Williams, and Fields entered the hotel together.  Police recognized the van from the hotel surveillance footage and towed the van and detained Johnson.  A search warrant was executed on the van and law enforcement recovered a single bullet from the front row carpet.  On October 1, 2020, Johnson’s phone was searched and was found to contain evidence of the plan to rob the victim, including: text messages between Johnson and Williams; a record of phone calls between Johnson and the victim; several calls exchanged between Johnson and phone numbers used by Williams in the hours before and after the murder; a photograph of Johnson with Williams and Fields; and Fields’ contact information was in Johnson’s contacts.

A cell phone seized from Williams at the time of his arrest revealed that Williams had been staying at the hotel, where he was also dealing drugs and that he was in dire need of money.  The phone also contained messages immediately following the murder in which Williams made plans to dispose of the murder weapon and directed another individual to destroy evidence.

Co-defendants Joseph Williams, a/k/a “Blue,” age 33, and George Fields, a/k/a “Chin,” age 49, both of Baltimore, pleaded guilty to their roles in the conspiracy and were sentenced to 26 years and 25 years in federal prison, respectively. 

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 FBI and the Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Kim Hagan, 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 https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.

# # #

Baltimore, Maryland – Kevin Maurice Lawson, age 55, of Baltimore Maryland, pleaded guilty today to committing three armed bank robberies, all while he was in a residential re-entry program serving the remainder of his federal sentence for a 2004 conviction for bank robbery.  

The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; and Commissioner Richard Worley of the Baltimore Police Department (“BPD”).

According to his guilty plea, Lawson committed three armed bank robberies in Baltimore between June 6 and July 18, 2022, utilizing a black air gun in each robbery.  In the first robbery on June 6, 2022, Lawson robbed a bank in the 100 block of East Baltimore Street in Baltimore.  As he did in each of the robberies, Lawson entered the bank wearing a surgical mask and gloves.  He approached a bank employee seated at a desk on the banking floor, displayed what appeared to be a dark semiautomatic handgun in his waistband, and ordered the employee to the teller line.  Lawson held the employee against the teller glass and demanded money from the victim teller, who passed cash to Lawson.  Lawson placed the money in a brown paper bag contained within a white plastic bag, and fled the bank on foot.

As detailed in his plea agreement, on June 27, 2022, Lawson robbed a bank in the 5400 block of Harford Road in Baltimore.  Lawson approached two bank employees seated at desks on the banking floor, displayed the handgun in his waistband, and ordered the employees to the teller line.  Lawson ordered the first bank employee to demand cash from the victim teller who then passed cash to the first employee.  Lawson placed the money in a brown paper bag contained within a white plastic bag and ordered the first bank employee to unlock a side door leading to Hamilton Avenue.  Lawson fled on foot eastbound on Hamilton Avenue.  

In the third instance, on July 18, 2022, Lawson robbed a bank in the 3200 block of West North Avenue in Baltimore.  Lawson rushed a security guard, and repeatedly struck her on her head and other parts of her body with his weapon as he ordered bank employees to provide him with cash.  Throughout the course of the assault of the security guard, Lawson attempted to disarm her.  Bank employees behind the teller line, fearing for the safety of the security guard and their own safety, passed cash through the teller line barrier glass and called to Lawson.  Lawson disengaged from the guard and went to the counter to get the money.  The guard recovered from the ground and fired rounds from her duty weapon at Lawson before the weapon jammed and Lawson fled the scene in a gray Kia.  BPD patrol units located the vehicle and attempted to initiate a stop, but Lawson got away.  Officers briefly lost view of the vehicle before locating it crashed into the exterior wall of a vacant rowhome.

A search of the Kia recovered clothing and gloves identical to that worn in the bank robberies, as well as documents linked to Lawson including a Federal Bureau of Prisons inmate identification card.  Lawson was arrested on July 22, 2022.  Further investigation revealed that in 2003, Lawson had robbed the banks on West North Avenue and Harford Road.

Lawson faces a maximum sentence of 25 years in federal prison for bank robbery.   U.S. District Judge Brendan A. Hurson has scheduled sentencing for March 5, 2024, at 10:30 a.m.

U.S. Attorney Erek L. Barron commended the FBI and BPD  for their work in the investigation.  Mr. Barron also thanked Assistant United States Attorney Michael Aubin, 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 https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

# # #

Baltimore, Maryland – Francesco Illiano, a/k/a Frank Illiano, age 62, of Mount Airy, Maryland, pleaded guilty yesterday to willfully failing to pay employment taxes withheld from employees of his businesses to the Internal Revenue Service (IRS). 

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to court documents and statements made in court, Illiano owned and operated two restaurants and a property management company which employed over 100 people.  Illiano was responsible for collecting, accounting for, and paying the income and Social Security and Medicare taxes withheld from the wages of employees of the three companies he controlled.  From at least April 2014 to at least July 2016, Illiano did not pay the taxes withheld from the wages of his employees to the IRS.  Illiano had previously been assessed a Trust Fund Recovery Penalty for not paying more than $1.4 million in taxes withheld from employees of five Green Turtle restaurants the defendant owned in 2011 and 2012.  In total, from April 2011 to July 2016, Illiano caused a tax loss to the Internal Revenue Service (IRS) of approximately $1.729 million.

Illiano faces a maximum sentence of five years in federal prison for willfully failing to pay employment taxes to the IRS.  U.S. District Judge Ellen L. Hollander has scheduled sentencing for March 6, 2024.

United States Attorney Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg commended the IRS-Criminal Investigation for its work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Jefferson M. Gray and Trial Attorney Shawn T. Noud of the Justice Department’s Tax Division, who are prosecuting the federal case.

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

# # #

Greenbelt, Maryland - U.S. District Judge Deborah L. Boardman today sentenced Carey Lee Sackmann, age 62, of Severn, Maryland, to 10 years in federal prison, followed by seven years of supervised release, for coercion and enticement of a minor to engage in unlawful sexual activity, related to his online sexual exploitation of multiple minor victims overseas.  Judge Boardman also ordered that, as detailed in his plea agreement, Sackmann must pay a total of $50,000 in restitution, to be divided between the victims of his offense.  In addition, upon his release from prison, Sackmann must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”). 

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Ryeshia Holley of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; and Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore.

According to his guilty plea, beginning no later than 2015, Sackmann engaged in video chats with facilitators in the Philippines and Madagascar who sexually exploited minor children in exchange for payment.  Sackmann paid facilitators to produce sexually explicit videos of minor children and to see livestream videos of minor children performing sexual acts with adults, other children, or alone, and on more than one occasion took screen captures of the livestreams.

On September 24, 2020, FBI agents executed a search warrant on Sackmann’s residence and seized several electronic devices.  Forensic examinations completed on several of the devices revealed that Sackmann’s internet activity consisted of multiple visits to livestream pornography websites and online money remitters, and his devices contained approximately 15 images and 1 video of suspected child pornography.  Sackmann’s phone and other accounts also contained numerous chats about child pornography production.

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.   

United States Attorney Erek L. Barron commended the FBI and HSI for their work in the investigation and thanked the Philippine National Police for its assistance  Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Joyce King, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

# # #

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jose Alexander Diaz-Rodriguez, age 23, of Thurmont, today to 18 years in federal prison, followed by 25 years of supervised release, for sexual exploitation of a child, after he broke into his neighbor’s home and took sexually explicit photographs of a child.  Judge Bennett also ordered that, upon his release from prison, Diaz-Rodriguez will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”). 

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Ryeshia Holley of the Federal Bureau of Investigation, Baltimore Field Office; Chief Greg Eyler of the Thurmont Police Department; Chief Jason Lando of the Frederick Police Department; and Frederick County State’s Attorney J. Charles Smith, III.

According to court documents, on July 26, 2021, Diaz-Rodriguez broke into his neighbor’s home and entered the bedroom where Jane Doe 1 and Jane Doe 2 were sleeping.  Diaz-Rodriguez got into bed with Jane Doe 1, who was eight years old, and produced a series of four images intending to create sexually explicit images of Jane Doe 1.  DNA from Diaz-Rodriguez was found on swabs from Jane Doe 1.

Jane Doe 1’s mother heard a noise and went into the room where she found Diaz-Rodriguez on the ground next to the bed.  Diaz-Rodriguez fled and was arrested a short time later at his residence.  A search warrant executed at his residence and his cell phone was seized.  A forensic examination of the phone located over 1,000 files depicting the sexual abuse of children, including the four images of Jane Doe 1, which Diaz-Rodriguez had deleted prior to police arrival.

Diaz-Rodriguez further admitted that he distributed child sex abuse material on his social media account, specifically an image documenting the sexual abuse of a child.

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.

United States Attorney Erek L. Barron commended the FBI, the Thurmont Police Department, the Frederick Police Department and the Frederick County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Joyce King, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

# # #

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced former Prince George’s County Department of Corrections correctional officer Danielle Dominique Smith, age 34, of Waldorf, Maryland, to four months imprisonment, followed by four months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute a controlled substance, in connection with her smuggling drugs to a prisoner with whom she had an intimate relationship. 

The sentence 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; Director Corenne D. Labbe of the Prince George’s County Department of Corrections; and Chief Malik Aziz of the Prince George’s County Police Department.

According to her guilty plea, from November 23, 2009 through April 15, 2022, Smith was employed as a correctional officer at the Prince George’s County Department of Corrections (“PGDOC”) detention facility.  During her employment, Smith developed a romantic and sexual relationship with Avante Daquan Lee, an inmate at PGDOC, discussing their relationship on recorded jail calls beginning on at least June 3, 2021 and continuing until March 2, 2022.

As detailed in the plea agreement, from August 29, 2021 and March 2, 2022, Smith conspired with Lee and other co-conspirators to distribute Suboxone, and the synthetic cannabinoid commonly known as K2.  Specifically, Smith obtained the controlled substances from co-conspirators outside PGDOC, then smuggled the drugs into PGDOC where she concealed them on special diet food trays designated for Lee.  Once Lee received the food tray, he distributed the controlled substances to other inmates within PGDOC.  Other inmates, or relatives and friends of inmates then sent Smith money for the controlled substances.

Smith and Lee discussed the distribution of the controlled substances on recorded jail calls, referring to the controlled substances as food products in an effort to conceal the nature of the conversation.  On September 24, 2021, PGDOC Special Investigations and Intelligence Section conducted a targeted cell search of Lee’s cell for contraband and recovered white paper that was found to contain K2.  On February 16, 2022, PGDOC Special Investigations and Intelligence Section conducted a targeted cell search of another PGDOC inmate for suspected contraband and found a bottle containing 395 strips that were found to contain Suboxone.  The K2 and Suboxone were smuggled into PGDOC by Smith.

According to court documents, at the end of February 2022, Smith took pre-approved leave from work.  Smith continued to speak to Lee on jail calls during that time.  On a March 2, 2022 jail call, the day Smith was scheduled to return to work, Lee asked Smith if she was bringing the “meals,” and Smith said she was.  Concerned that Smith was going to smuggle additional controlled substances, PGDOC administratively suspended Smith when she arrived at work that same day.

On October 13, 2023, Judge Chuang sentenced Avante Daquan Lee, age 30, to 30 months in prison, followed by three years of supervised release.  Lee had previously pleaded guilty to his role in the conspiracy.

U.S. Attorney Erek L. Barron commended the DEA, the PGDOC, and the Prince George’s County Police Department for their work in the investigation.  Mr. Barron also thanked Assistant United States Attorney Leah B. Grossi, 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 and https://www.justice.gov/usao-md/community-outreach.

# # #

Baltimore, Maryland – Michael Akame Ngwese Ay Makoge, a/k/a “Hype” and “2Hype”, age 28, of Laurel, Maryland pleaded guilty yesterday to a wire fraud conspiracy and to aggravated identity theft, in relation to a Maryland and California unemployment insurance scheme totaling more than $1.5 million.

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division (USPIS); Special Agent in Charge Troy W. Springer of the National Capital Region, U.S. Department of Labor - Office of Inspector General (DOL-OIG); Chief Amal E. Awad of the Anne Arundel County Police Department; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (MSP); and Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.

According to his plea agreement, from March 2020 to October 2021, Makoge and his co-conspirators impersonated victims to submit fraudulent claims for unemployment insurance (UI) benefits in Maryland and California.  As part of the scheme, Makoge and his co-conspirators obtained the birthdates, social security numbers, and other personal identifying information of numerous victims which they used to prepare and submit fraudulent applications for UI benefits.  The applications contained false information, including the victims’ contact information, states of residence, and availability for work.  These fraudulent applications caused financial institutions to load UI benefits onto debit cards and mail the cards to physical addresses provided and monitored by Makoge and his co-conspirators.  Once Makoge and his co-conspirators received the fraudulently obtained benefits on the debit cards, they used them for cash withdrawals and other transactions for their own financial benefit. 

A search at Makoge’s residence on February 16, 2021, recovered 11 UI debit cards in the names of six victims from the bedroom.  The investigation also revealed numerous text messages between Makoge and his co-conspirators exchanging the PII of victims and discussing the execution of the UI fraud scheme.  Further, Makoge made numerous ATM withdrawals using the identities of victims, personally obtaining at least $35,540 as a result of his participation in the scheme.  In all, Makoge and his co-conspirators submitted fraudulent UI claims using the names and PII of at least 12 victims, resulting in more than $1.6 million in losses.

Makoge faces a maximum sentence of 30 years in federal prison for the wire fraud conspiracy and a mandatory two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft.  U.S. District Judge Brendan A. Hurson has scheduled sentencing for February 1, 2024, at 11:00 a.m.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.  The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.  For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

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

United States Attorney Erek L. Barron commended the USPIS, DOL-OIG, the Anne Arundel County Police Department, HSI, MSP, and ATF, for their work in the investigation.  Mr. Barron thanked the United States Marshals Service, the Prince George’s County Police Department, the Montgomery County Police Department, the Washington, D.C. Metropolitan Police Department and the Charles County Sheriff’s Office for their assistance.  Mr. Barron thanked Assistant U.S. Attorney Colleen 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 and https://www.justice.gov/usao-md/community-outreach.

# # #

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Reginald McElrath, age 40, of Cockeysville, Maryland, to 18 months in federal prison, followed by three years of supervised release, for a scheme to steal cell phones worth more than $500,000.  Judge Hollander ordered that McElrath must pay restitution in the full among of the victims’ losses, which the parties agree is not more than $366,015.50.

The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division.

According to his plea agreement and other court documents, from July 2019 to January 2020, McElrath and his co-defendants, Chantelle Harris, Robert Patterson, and Danisha Thomas used the identifying information of at least 17 individuals to obtain new cell phones.  McElrath, Harris, and Patterson worked in Maryland for a vendor contracted by a multinational retail corporation to handle all contractual wireless phone transactions in their stores.  As cell service associates, McElrath, Harris, and Patterson were required to obtain the personal identifying information (PII) of customers in order to initiate a new account or upgrade an existing account.  McElrath, Harris, and Patterson admitted that they used their positions to apply for new cell phone accounts with various carriers and to apply for upgraded cell phones on existing cell phone accounts in the victims’ names using the PII of the victims without their knowledge or permission.  McElrath, Harris, and Patterson also charged purchases of new cell phones to fraudulent cell phone service accounts they opened in the victims’ names and none of the costs were borne by members of the conspiracy. 

Co-defendant Danisha Thomas and other conspirators received the fraudulently obtained cell phones directly from McElrath, Harris, Patterson and others from inside the retail store.  McElrath received cash and payments through CashApp as compensation for his role in the scheme.

McElrath and his co-defendants used the stolen PII of approximately 51 individual victims to fraudulently obtain at least $537,000 worth of cell phones.  Fraudulent transactions personally conducted or attempted by McElrath in furtherance of the fraud conspiracy and scheme totaled approximately $366,015.50.

Co-defendants Danisha Lee Thomas, age 40, of Bladensburg, Maryland; Robert Earl Patterson, Jr., age 22, of Odenton, Maryland; and Chantelle Harris, age 34, of Hyattsville, Maryland, also pleaded guilty to their roles in the conspiracy.

United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn, who prosecuted the case.

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

# # #

Two La Mara Salvatrucha (MS-13) gang members were sentenced for conspiracy to commit murder in aid of racketeering in connection with their participation in the Weedams Locos Salvatrucha (WLS) clique of the MS-13 gang.

Endy Arturo Gaitan Campos, aka Clandestino, 30, of Hyattsville, Maryland, was sentenced yesterday to 10 years in prison, and Jorge Isaac Argueta Chica, aka Timido and Enano, 23, of Gaithersburg, was sentenced last week to six years in prison.

According to court documents, MS-13 is an international criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating throughout the United States. MS-13 members are organized in “cliques,” smaller groups that operate in a specific city or region, and are required to commit acts of violence, both to maintain membership and discipline within the gang and against rivals. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. MS-13 members earn promotions and improved standing within the gang for participating in attacks on rival gang members, often at the direction of MS-13 leadership. 

On Aug. 8, 2020, Campos and other WLS members, including WLS leader Brayan Alexander Torres and Franklyn Edgardo Sanchez, agreed to murder Victim-4, who was suspected of cooperating with law enforcement and with whom Sanchez had a financial dispute. Campos told another MS-13 member that he would have to help commit the murder. Campos then drove Torres, Sanchez, and other WLS members to a wooded area nearby and dropped them off. Sanchez was armed with a revolver, and Torres gave a second revolver to the MS-13 member Campos had told to help in the murder, instructing that person to shoot first when Victim-4 arrived. When Victim-4 arrived, Sanchez and the other MS-13 member each fired multiple shots at Victim-4. Sanchez then pistol-whipped and stabbed Victim-4, and Torres also stabbed Victim-4. After Torres and other WLS members dragged Victim-4’s body to a stream and left it there, Campos drove the MS-13 members back to Torres’s house, where other gang members, including Argueta Chica and Agustino Eugenio Rivas Rodriguez, were waiting.

As he was leaving the woods, Sanchez noticed he was bleeding. To prevent the discovery of DNA or other evidence on the body and to hinder the investigation and prosecution of Victim-4’s murder, Torres called other WLS members and ordered them to bring shovels to bury Victim-4’s body. WLS members loaded shovels into Campos’s car, and Campos drove them, including Argueta Chica and Rivas Rodriguez, to the wooded area. WLS members then dug a hole and buried Victim-4’s body. Law enforcement later recovered the body with a bullet wound to the head.

Argueta Chica also participated in the collection of extortion payments, or “rents,” from at least two extortion victims on behalf of WLS, knowing that the victims making extortion payments did so under the threat of death or bodily injury by members of WLS. 

Torres and Sanchez were each sentenced to 28 years in prison, and Rivas Rodriguez was sentenced 16 years in prison for their roles in the racketeering conspiracy. 

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Erek L. Barron for the District of Maryland, Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office, Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore, and Chief Malik Aziz of the Prince George’s County Police Department made the announcement.

The FBI, HSI, and Prince George’s County Police Department investigated the case, with assistance from U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and the Montgomery County Police Department. 

Trial Attorney Christopher Taylor of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Joel Crespo for the District of Maryland prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Endy Arturo Gaitan Campos, a/k/a “Clandestino,” age 30, of Hyattsville, Maryland, yesterday to 10 years in federal prison, followed by three years of supervised release, for conspiracy to commit murder in aid of racketeering, related to his participation in the Weedams Locos Salvatrucha (“WLS”) clique of the MS-13 gang, which operated primarily in Adelphi, Maryland.  Last week, Judge Xinis sentenced co-defendant Jorge Isaac Argueta Chica, a/k/a “Timido” and “Enano,” age 23, of Gaithersburg, Maryland, also a member of the WLS clique, to six years in federal prison, followed by three years of supervised release on the same charge.

The sentences were announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations Baltimore; and Chief Malik Aziz of the Prince George’s County Police Department.

According to court documents, La Mara Salvatrucha gang, also known as “MS-13,” is an international criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in Maryland and throughout the United States.  MS-13 members are organized in “cliques,” smaller groups that operate in a specific city or region, and are required to commit acts of violence, both to maintain membership and discipline within the gang and against rivals.  One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.  MS-13 members earn promotions and improved standing within the gang for participating in attacks on rival gang members, often at the direction of MS-13 leadership. 

On August 8, 2020, Campos, and other WLS members, including WLS leader Brayan Torres and Franklyn Sanchez, were gathered at a park in Prince George’s County, Maryland, where they agreed to murder Victim 4, who was suspected of cooperating with law enforcement and to whom Sanchez owed a debt.  Campos told another MS-13 member that he would have to help commit the murder.  Campos then drove Torres, Sanchez and other WLS members to a wooded area nearby and dropped them off.  Sanchez was armed with a revolver and Torres handed a second revolver to the other MS-13 member, instructing that person to shoot first when Victim 4 arrived.  When Victim 4 arrived, Sanchez and the other MS-13 member each fired multiple shots at Victim 4, who fell to the ground.  Sanchez then pistol-whipped and stabbed Victim 4 and Torres also stabbed Victim 4.  Torres and other WLS members dragged Victim 4’s body to a stream and left it there.  

One of the MS-13 members at the scene of the murder placed the two guns used to shoot Victim 4 and several other items into a dark bag and Campos drove the MS-13 member back to Torres’s house where other gang members, including Argueta Chica, were waiting.

As he was leaving the woods, Sanchez noticed he was bleeding and was concerned that his DNA may have been left on the body.  To prevent the discovery of DNA or other evidence and to hinder the investigation and prosecution of Victim 4’s murder, Torres called other WLS members, including co-defendant Agustino Eugenio Rivas Rodriguez, and ordered them to bring shovels to dig a hole and bury Victim 4’s body.  Campos backed his car into the driveway of Torres’s house and parked in front of the garage.  WLS members loaded shovels into Campos’s car and Campos drove Rivas Rodriguez and other WLS members to the wooded area.  WLS members, including Argueta Chica then dug a hole and buried Victim 4’s body.  Law enforcement later recovered the body with a bullet wound to the head.

Argueta Chica also participated in the collection of extortion payments, or “rents,” from at least two extortion victims on behalf of WLS, knowing that the victims making extortion payments did so under the threat of death or bodily injury by members of WLS.  

Co-defendants Brayan Alexander Torres, a/k/a “Spooky,” age 29, and Franklyn Edgardo Sanchez, a/k/a “Delinquente,” age 26, both of Adelphi, Maryland, were each sentenced to 28 years in federal prison and Agustino Eugenio Rivas Rodriguez, a/k/a “Terrible,” age 25, of Silver Spring, Maryland was sentenced 16 years in federal prison for their roles in the racketeering conspiracy. 

Anyone with information about MS-13 is encouraged to provide their tips to law enforcement.  The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know.  You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.

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 and Acting Assistant Attorney General Argentieri commended the FBI, HSI and the Prince George’s County Police Department for their work in the investigation and thanked U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and the Montgomery County Police Department for their assistance.  Mr. Barron thanked Assistant U.S. Attorney Joel Crespo and Trial Attorney Christopher Taylor of the Criminal Division’s Violent Crime and Racketeering Section, 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 and https://www.justice.gov/usao-md/project-safe-neighborhoods-psn.  

# # #

Greenbelt, Maryland – A federal jury today convicted Marilyn J. Mosby, age 42, of Baltimore, Maryland, on federal charges of perjury, relating to the withdrawal of funds from the City of Baltimore’s Deferred Compensation Plan claiming that she suffered adverse financial consequences during the COVID-19 pandemic when she was Baltimore City State’s Attorney. 

The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

U.S. Attorney Erek L. Barron said, “We respect the jury’s verdict and remain steadfastly committed to our mission to uphold the rule of law, keep our country safe, protect the civil rights of all Americans, and safeguard public property.”

According to the evidence presented at trial, on May 26, 2020 and December 29, 2020, Mosby submitted “457(b) Coronavirus-Related Distribution Requests” for one-time withdrawals of $40,000 and $50,000, respectively, from City of Baltimore’s Deferred Compensation Plan.  Trial evidence proved that Mosby falsely certified that she met at least one of the qualifications for a distribution as defined under the CARES Act, specifically, that she experienced adverse financial consequences from the Coronavirus as a result of being quarantined, furloughed, or laid off; having reduced work hours; being unable to work due to lack of childcare; or the closing or reduction of hours of a business she owned or operated.  In signing the forms, Mosby “affirm[ed] under penalties for perjury the statements and acknowledgments made in this request.”  As proven at trial, Mosby did not experience any such financial hardships and in fact, Mosby received her full gross salary of $247,955.58 from January 1, 2020 through December 29, 2020, in bi-weekly gross pay direct deposits of $9,183.54. 

Mosby faces a maximum sentence of five years in federal prison for each of the two counts of perjury.  U.S. District Judge Lydia K. Griggsby has not yet scheduled sentencing.

In a separate pending federal case, Mosby also faces two counts of making false mortgage applications, relating to the purchases of two vacation homes in Florida.  Those charges remain pending and a trial date has not been set.  If convicted of those counts, the defendant faces a maximum of 30 years in federal prison for each of two remaining counts.  Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.  An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. 

United States Attorney Erek L. Barron commended the FBI and IRS-CI for their work in the investigation and thanked the Baltimore City Office of the Inspector General for its assistance.  Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Aaron S.J. Zelinsky, 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.

# # #

Baltimore, Maryland - U.S. District Judge Paula Xinis sentenced Adrian Nathaniel Haynes, age 24, of Oxon Hill, Maryland, to 25 years in federal prison, followed by 25 years supervised release, for production of child pornography.  Judge Xinis also ordered that, upon his release from prison, Haynes must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department.

According to court documents and information presented at the sentencing hearing, on April 1, 2019, Victim 1 contacted the National Center for Missing and Exploited Children (“NCMEC”) and reported that an Instagram user with the username “darealrico_”, later identified as Haynes, had demanded that Victim 1 send images and videos of Victim 1 engaged in sexually explicit conduct to him over the internet via direct share to darealrico_.  Victim 1 also disclosed that darealrico_ threatened Victim 1 that if Victim 1 did not continue to produce images of Victim 1 engaged in sexually explicit conduct, darealrico_ would expose Victim 1 by publishing the previously produced images and videos online.

Special Agents with the FBI determined that the darealrico_ Instagram account was registered on November 6, 2018, with a phone number matching a phone number that Haynes had provided to law enforcement previously.  Law enforcement also determined that many of the communications from this account during the relevant period were coming from Haynes’ residence in Prince George’s County, Maryland.

A search warrant was obtained for the contents of the Instagram account associated with darealrico_. Special Agents with the FBI discovered communications from Haynes to Victim 1 on November 12, 2018, and multiple other dates, in which Haynes directs Victim 1 to produce videos of Victim 1 engaged in sexually explicit conduct and send the produced child sexual abuse material to Haynes.  On November 12, 2018, while communicating via the derealrico_ account, Haynes falsely denied to Victim 1 that his name was Adrian, falsely told Victim 1 that he was 15 years old, and falsely identified himself to Victim 1 by using a fictitious name, all in an effort to convince Victim 1 to continue producing child pornography and thwart Victim 1’s efforts to identify him.

Law enforcement’s review of Haynes’s Instagram account revealed communications with 16 other Instagram users who self-identified as minors and sent child sexual abuse material to Haynes pursuant to his request.  Haynes used a similar method for each, asking the user how old they were, confirming that they were a minor, then coercing the user into producing child sexual abuse material in the manner requested by Haynes.

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.

United States Attorney Erek L. Barron commended the FBI and the Prince George’s County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Timothy Hagan, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

# # #

Baltimore, Maryland – A federal grand jury has returned an indictment charging five individuals for a fraud scheme intended to obtain over $35 million from financial institutions by providing false documentation in support of SBA loan applications for the purchase of hotels.  Defendant Mehul Ramesh Khatiwala, a/k/a “Mike Khatiwala,” age 41, of Voorhees, New Jersey, also faces a continuing financial crimes enterprise charge, also known as the financial crime kingpin statute—the first time this statute has been charged in Maryland.  The indictment was returned on November 1, 2023.  In addition to Khatiwala, the following defendants are charged in the indictment with bank fraud, making false statements to financial institutions, and money laundering:

Rajendra G. Parikh, age 63, of Monroe, New Jersey; Jennifer H. Watkins, age 47, of Marlton New Jersey; Rebecca Marie Cohn, a/k/a Rebecca Marie Stanton, age 36, of Fallston, Maryland; and
Rajnikant I. Patel, age 59, of North Brunswick, New Jersey.

Rajnikant Patel and Jennifer Watkins will have initial appearances on November 9, 2023, at 11:00 a.m. and 11:30 a.m., respectively, in U.S. District Court in Baltimore before U.S. Magistrate Judge A. David Copperthite.  Cohn had her initial appearance on November 6, 2023.  Khatiwala and Parikh had initial appearances in the U.S. District Court in New Jersey on November 3, 2023, and were ordered to be detained.

The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Robert Manchak, Federal Housing Finance Agency Office of Inspector General (“FHFA-OIG”); and Special Agent in Charge Jeffrey D. Pittano, Mid-Atlantic Region, Federal Deposit Insurance Corporation Office of Inspector General (“FDIC-OIG”).

According to the 31-count indictment, Khatiwala was the owner and managing member of Delaware Hotel Group LLC (“DHG”), and an operator of GMK Consulting LLC (“GMK”) and KPG Hotel Mgmt. LLC (“KPG”), which were hotel management and loan brokerage companies located in Mount Laurel, New Jersey.  Jennifer Watkins was a project coordinator for DHG and managing member of Forza Consulting LLC (“Forza”), a hotel consulting and loan brokerage company located in Marlton, New Jersey.  Rajendra Parkih was an owner of KPG and Rebecca Cohn was a settlement and title processor for Residential Title & Escrow Company (“Residential Title”), a real estate title company located in Owings Mills, Maryland, that offered escrow and loan settlement services.  Rajnikant Patel worked as the manager of a convenience store owned by Parikh and Parikh’s brother.

The indictment alleges that from August 2018 until February 2020 the defendants conspired to obtain loan proceeds for the defendants and others to buy and sell hotels in a hotel flipping scheme by making material misrepresentations and omissions to financial institutions during the loan application process regarding the identity of the sellers, the familial relationships between the parties, and the nature and amount of the equity injected by the borrowers, under the SBA’s Section 7(a) Program.  The SBA’s Section 7(a) Program guaranteed and insured 75 percent to 90 percent of qualified loans made and administered by participating lending institutions and required that the small business owner/borrower invest a certain amount of their own money into the business to qualify for the loan.

Specifically, the indictment alleges that Khatiwala, Parikh, and Watkins created shell companies using Patel and a co-conspirator as the straw owners of the companies, then had the straw owners sign purchase contracts, operating agreements, and related documents to buy hotel properties in the names of the shell companies created by Khatiwala, Parikh, and Watkins, while at the same time soliciting investors, including family members, and creating other companies to serve as buying entities (the “Buyers”) so they could quickly resell the hotels at a much higher price.

As detailed in the indictment, Khatiwala, Parikh, Watkins, and Cohn collected, compiled, and submitted documentation needed by financial institutions to determine whether the Buyers qualified for the SBA loans, including records proving that the Buyers provided sufficient cash upfront to satisfy SBA’s equity injection requirements for Section 7(a) funding, such as checks, bank statements, and wire transfer records.  Cohn maintained the equity injection funds in designated Residential Title escrow accounts pending the loan settlements and kept ledgers to track the use of those escrow funds.

The indictment alleges that Khatiwala, Parikh, Watkins and Cohn: fraudulently diverted some of the Buyers’ equity injections to make down payments on hotels that were under contract to shell companies controlled by Khatiwala and Parikh; submitted the same wire transfer records and gift letters as support for equity injections that had been already been used to satisfy the buyer’s equity injection obligations for other SBA loan applications; and fraudulently submitted falsified bank statements and wire transfers to satisfy the equity injections.

The indictment also alleges that the defendants engaged in roundtrip transactions, whereby they falsely represented to financial institutions that over $1.5 million on deposit in a Residential Title escrow account would be used to satisfy the Buyer’s equity injection obligations, when, the indictment alleges, the funds were temporarily withdrawn from that account prior to the loan closings and redeposited back into the same escrow account subsequent to the loan closings.  

Further, the indictment alleges that Khatiwala, Parikh, Watkins, and Cohn falsely represented to financial institutions that the buying entities had purchased the hotels from the shell companies when, in fact, the shell companies had not yet owned the properties.  Khatiwala, Parikh, Watkins, and Cohn diverted loan proceeds intended for the buyers to purchase hotels from the shell companies so that the shell companies could first purchase the property and then flip it to the buyer. 

If convicted, Khatiwala faces a mandatory minimum sentence of 10 years and up to life in prison for a continuing financial crime enterprise.  All of the defendants face a maximum of 30 years in federal prison for the conspiracy to commit bank fraud and for each count of bank fraud; a maximum of 5 years in federal prison for a conspiracy to make a false statement to a financial institution.  Khatiwala, Parikh, Watkins, and Cohn also face a maximum of 30 years in federal prison for each count of making a false statement a financial institution and a maximum of 10 years in federal prison for conspiracy to launder money and for each count of 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 proceedings.

United States Attorney Erek L. Barron commended the FHFA-OIG and FDIC-OIG for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke, and Harry M. Gruber, 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.

# # #

Baltimore, Maryland – On November 6, 2023, approximately 150 business and public sector leaders participated in a cybersecurity conference co-hosted by the U.S. Attorney’s Office for the District of Maryland and the University of Maryland.  The conference included panels of cybersecurity experts from government and the private sector discussing the emerging threats, best practices, and effective collaboration between federal, state, and local agencies, the private sector, and law enforcement.

“Cybercrime is an ongoing threat to all of us in Maryland.  The time to talk about preventing and responding to a cyber incident is before something happens,” said United States Attorney Erek L. Barron. “I am grateful for the thoughtful and frank conversations the conference inspired and I look forward to continued collaboration and partnership between the government, business, and public sectors to protect our critical infrastructure.  I also want to thank our partners at the University of Maryland for their co-sponsorship of this important conference.”  

“We all know that we are living in an unprecedented time of technological advancement. From the rapid adoption of artificial intelligence and machine learning applications to advances in quantum computing and quantum networks, we are at the start of an era that has tremendous potential for radical change,” said University of Maryland President Darryll J. Pines.  “That’s why here at the University of Maryland we are working every day to understand technology’s benefits and limits, support experts who can see challenges even before they appear on the horizon, and educate a generation of fearless leaders who understand their obligations to our collective wellbeing.”

Panelists from the United States Department of Justice, the National Security Agency, universities, and travel, energy and financial sectors presented information on identifying threats and weaknesses, managing a cyber incident, and coordinating with law enforcement.  The conference also provided networking opportunities to allow attendees to continue their conversations and enhance cyber security in all sectors throughout Maryland.

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

# # #

The Defendant Hid Money in Panamanian Banks While Discharging $6.2 Million in Debt

Baltimore, Maryland – Keith K. Asante, age 51, formerly of Baltimore County, Maryland, pleaded guilty today to bankruptcy fraud.  

The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration Office of Inspector General (“SBA OIG”), Eastern Region; and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division.

According to his guilty plea, Asante obtained two loans totaling approximately $4 million, one in April 2015 and the second in December 2016, for the construction and operation of two restaurant franchises in the Baltimore area.  Asante personally guaranteed both loans, as did a consulting group that he owned, Asante Consulting Group (“ACG”). The Small Business Administration also guaranteed 75 percent of the loan balances to the financial institutions that made the loans.

In the spring and early summer of 2017, Asante’s restaurants experienced financial difficulties, and Asante decided to close both restaurants in the fall of 2017.  However, closing the restaurants did not relieve Asante or ACG of their loan guarantees.  As detailed in the plea agreement, from approximately March 2017 through April 2018, Asante executed a scheme to defraud his creditors by misappropriating loan funds and using them for non-business purposes; hiding money in undisclosed bank accounts; transferring money to Panamanian bank accounts; filing for bankruptcy; and fleeing to Panama.

Specifically, Asante used $30,000 of the loan funds to make payments to a builder for the construction of a 5,000 square foot home in Perry Hall, Maryland.  In addition, on July 5, 2017, Asante formed Temak Technologies, LLC in New Mexico.  The publicly available corporate documents did not identify Asante as having any affiliation with Temak.  Instead, Asante used the identity of his then-wife, without her knowledge, to form Temak.  In fact, Asante was the sole owner of Temak.  Asante opened bank accounts on behalf of Temak and began operating the ACG business as Temak, depositing payments from ACG’s clients into the Temak bank account.  From September 2017 to December 2017, Asante transferred approximately $260,000 from a Temak bank account and another bank account to banks in Panama. 

On January 10, 2018, Asante filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court in Maryland.  In his filing, Asante did not disclose his ownership of Temak or his ownership of several bank accounts, including any of his Panamanian bank accounts.  In his plea agreement, Asante further admitted that he continued to transfer funds to the Panamanian bank accounts while in bankruptcy, transferring $62,550 to Panamanian banks between January and March of 2018. 

At the conclusion of the bankruptcy proceeding, the Trustee was only able to distribute $36,775.31 to Asante’s creditors and on April 22, 2018, the Court granted Asante a bankruptcy discharge which eliminated Asante’s personal responsibility for $6,227,214.39 in debt.  Asante began residing in Panama in or around January 2018.

Asante faces a maximum sentence of five years in prison for bankruptcy fraud.   U.S. District Judge Deborah L. Boardman has scheduled sentencing for January 23, 2024, at 11am.

U.S. Attorney Erek L. Barron commended the SBA-OIG and the U.S. Postal Inspection Service for their work in the investigation.  Mr. Barron also thanked Assistant United States Attorneys Matthew P. Phelps and Jefferson M. Gray, 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 and https://www.justice.gov/usao-md/community-outreach.

# # #

Used CARES Act Loan Proceeds to Purchase a Mercedes-Benz and to Lease and Fully Furnish a Luxury Apartment in Downtown Baltimore

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Lawrence A. Walker, age 64, of Baltimore, Maryland, today to 24 months in federal prison, followed by 6 months of home confinement, and 3 years of supervised release, for conspiracy to commit wire fraud and fraudulently obtaining more than $262,000 through the Paycheck Protection Program (“PPP”), intended to provide financial assistance to small businesses under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.  Judge Bennett also ordered that Walker must forfeit the cash seized during the search, a Mercedes-Benz, and pay a money judgment and restitution of $232,152.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Robert McCullough of the Baltimore County Police Department.

According to the plea agreement, from March 2021 through December 2021, Walker and a co-conspirator engaged in a scheme to fraudulently obtain a PPP loan for Walker’s business, Nutscola Street Promotions, LLC (“Nutscola”).  Walker was the owner and resident agent, but Nutscola had no employees at the time and was not in operation.

As detailed in the plea agreement, on March 21, 2021, Walker and his co-conspirator submitted a PPP loan application that contained multiple misrepresentations, including that Nutscola had 13 employees and an average monthly payroll of $104,900.87.  Walker and his co-conspirator fabricated a tax form and a February 2020 bank statement purportedly from Nutscola’s business account which were submitted in support of the loan application.  Walker opened the Nutscola bank account on March 6, 2021, as part of the fraud scheme.

Based on the false representations and fraudulent documentation, the PPP loan was funded and approximately $262,252 in loan proceeds was distributed to the Nutscola bank account.  After receiving the loan proceeds, Walker provided his co-conspirator with a kickback for his work in obtaining the loan—two checks totaling $78,000, which was approximately 30 percent of the loan amount.

Walker and his co-conspirator knew that, under the PPP rules, interest and principal on a PPP loan were eligible for forgiveness, if the business spent the loan proceeds on permissible items within a designated period of time and used a certain portion of the loan toward payroll expenses.  To make it appear that the PPP loan funds were being used for legitimate purposes, on March 30, 2021, Walker signed an agreement with a payroll processor to provide payments using the PPP funds to purported employees of Nutscola, including Walker, his brother, and various other friends and associates.  Use of the payroll services also created documentation that could be used to substantiate a request for the PPP loan to be forgiven. 

According to the plea agreement, a total of $159,000 in sham payroll payments were made using funds traceable to the PPP loan obtained by Walker and Nutscola.  None of the purported employees were actually employed by Nutscola and several of the purported employees provided the funds directly back to Walker.  Walker used the loan proceeds to purchase a Mercedes-Benz automobile valued at more than $76,000 and to lease and fully furnish a luxury apartment in downtown Baltimore that overlooked Camden Yards baseball stadium.  Neither use of the funds was permissible under PPP rules.

On December 31, 2021, Walker’s co-conspirator also fraudulently applied for an Economic Injury Disaster Loan (EIDL) under the CARES Act on behalf of Walker and Nutscola.  The fraudulent EIDL loan did not close.

On April 26, 2022, law enforcement executed a federal search warrant at Walker’s residence and seized multiple electronic devices, including Walker’s phone, as well as over $30,000 in cash hidden in a garbage bag inside a heater in Walker’s bedroom.  The $30,000 in cash constituted fraudulently obtained PPP funds.    Walker has made no payments in connection with the PPP loan obtained for Nutscola, and the entire PPP loan amount of $262,252 remains outstanding. 

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

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

United States Attorney Erek L. Barron commended the FBI and the Baltimore County Police Department for their work in the investigation and thanked the Small Business Administration Office of Inspector General for its assistance.  Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who prosecuted the case.  He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber. 

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

# # #

Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced former Customs and Border Protection (“CBP”) officer Supreme Jones, age 32, of Atlanta, Georgia and formerly of Maryland, today to five years’ probation after Jones pleaded guilty to two counts of entering an aircraft or airport security area in violation of security requirements.  As a result of his federal conviction, at least during his five year term of probation, Jones will not be able to be employed in law enforcement.

The guilty plea and sentence were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; Stephen T. Maloney, Director of Field Operations for U.S. Customs and Border Protection Baltimore Field Office; and Special Agent in Charge Craig Miles of the U.S. Department of Transportation Office of Inspector General Mid-Atlantic Region (“DOT-OIG”).

According to court documents, from 2018 through 2022, Jones was an armed CBP officer assigned as a uniformed officer at the Baltimore Washington International/Thurgood Marshall Airport (“BWI”).  As a result of his duties, Jones was issued credentials authorizing him to go into any area of BWI, including the areas beyond the Transportation Security Administration (“TSA”) security checkpoints, for the performance of his official duties. 

In June 2021, the FBI began an investigation into complaints that Jones was abusing his authority by using his credential to enter secure areas when not performing official duties, specifically when flying for personal travel.  According to the statement of facts, during a 14-month period Jones made more than 60 flights, either going from or returning to BWI.  Upon review of surveillance imagery corresponding to the entry point hits, the FBI discovered that Jones was often entering the sterile area of BWI via the controlled exit portals when in civilian clothing by displaying his badge to the TSA Officer or TSO on duty at the exit portal. 

Although a number of trips raised suspicions about Jones’ conduct, two itineraries in particular drew close scrutiny.  On February 21, 2022, Jones flew from BWI to Atlanta, GA.  He did not declare himself to be armed on this flight.  Nonetheless, while in civilian clothes, he used his badge to access the security area to proceed to his departure gate within.  When he arrived at the gate, he engaged in a conversation with the airline personnel, appeared to display a previously unseen limp and obtained a special needs boarding pass from the airline, thus enabling him priority boarding of the aircraft.  During this same travel period, Jones flew round-trip from Atlanta to Miami, then Miami to St. Martin.  To justify a flight change and/or late arrival on the return flight, without incurring a flight change fee, Jones falsely represented that a military unit to which he was assigned had been involved in an accident; falsely identified his military superior; and provided a fictitious phone number.

On April 5, 2022, FBI agents conducted surveillance of Jones in BWI.  They saw Jones, while still on duty and in his uniform, jump a long line of passengers in line at an airline ticket counter to check-in for a flight he was taking later that day in his personal capacity.  About 30 to 45 minutes before the departure time of his flight, FBI Special Agents saw Jones entering the terminal through the exit point, rather than through the TSA security checkpoint.  When the agents confronted Jones, he denied having a flight that day and stated that he was “…working…trailing somebody,” or words to the effect.  A short while later, Jones was seen in the departure gate area for his Atlanta-bound flight.

Jones was arrested on June 26, 2022, as he was about to board a flight from BWI to Boston, Massachusetts, with a scheduled return the following day. 

United States Attorney Erek L. Barron praised the FBI, HSI, CBP and DOT-OIG for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.

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

# # #

Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Duane G. Larmore, age 48, of Salisbury, Maryland, yesterday to 30 months in federal prison, followed by three years of supervised release, for a wire fraud conspiracy and aggravated identity theft in connection with the theft of more than $1.8 million from Shore Appliance Connection, where Larmore worked.  Judge Chasanow also ordered Larmore to pay restitution in the full amount of the victims’ losses, which the parties stipulate is $1,850,488.94.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.

According to his plea agreement, from mid-September 2016 through about March 2020, Larmore conspired with others to steal more than $1.8 million from a Salisbury, Maryland company, Shore Appliance Connection, owned and operated by Owner #1 and Owner #2, that sold household appliances as well as mattresses and bedding.  Larmore was an employee at Shore Appliance whose duties included maintaining the books and records for the company. 

Co-defendant Stephen Franklin was the chief operating officer of Accurate Optical, a chain of optometric shops on the Eastern Shore of Maryland and with the owners of Accurate Optical he also purchased East Coast Optometric, a chain of South Carolina optical shops.  Larmore and Franklin met through the Salisbury Chamber of Commerce and became friendly.

According to court documents, Larmore and Franklin stole nearly $2 million from Shore Appliance to use for their own purposes, including to make investments and to pay business expenses for Franklin’s business, without the knowledge and consent of the owners of Shore Appliance.  For example, at the urging of Franklin, Larmore invested in the following:  in 2016, a $100,000 investment with T.H.; a $95,000 investment with GenFinance II, PLC, London, U.K., which then required an additional $300,000, and then additional funds for a surety bond and travel abroad; in 2018, an investment through W.S. of $35,000 and an investment of $50,000 through Gateway Capital; and in 2019 - 2020, investments and expenses through I.P. and E.P.S. to obtain U.S. currency purportedly returned to the United States from humanitarian relief projects abroad, and other similar investments.  The charges included wire transfers from Shore Appliance’s account to Franklin’s business account and from there to banks in the U.K. and Hong Kong.  No investment paid any return to Larmore or Franklin.

To conceal how much money had been removed from Shore Appliance and to obtain cash, Larmore used the identities of the owners to enter into factoring contracts.  Factoring is a means by which businesses, like Shore Appliance, can obtain cash quickly by leveraging accounts receivable.  As detailed in court documents, the factoring contracts purportedly between Shore Appliance and various factoring companies, provided cash deposits to Shore Appliance's bank accounts but encumbered the accounts receivable of Shore Appliance and required payments and interest of more than $725,000.  In addition, Larmore used his position of trust with Shore Appliance and signature authority over its bank accounts to draw on Shore Appliance’s lines of credit with two separate financial institutions to obtain another $200,000 in cash to conceal his use of Shore Appliance’s funds.

To obtain contracts with factoring companies for Shore Appliance, Larmore used his own email address and cell phone number with factors but identified that email address and cell phone number as belonging to Owner #1.  Larmore also provided the factors with details of the owners’ identities, including dates of birth, Social Security numbers, and Maryland drivers’ licenses, without their permission. 

To conceal the fact that the owners were not aware of and had not approved the factoring contracts, the signatures of the owners were forged and the fraudulent signatures were witnessed or notarized by Franklin; and Larmore and a female employee of Franklin’s posed as the owners in telephone conversations with representatives of the factoring companies.  Finally, when Franklin’s business was having financial difficulties, at Franklin’s request, Larmore provided funds from Shore Appliance for Franklin’s companies. 

In all, Larmore paid $739,295.28 of Shore Appliance’s funds, without the officers and owners’ knowledge or consent, to invest in fraudulent schemes that never paid any money back.  Larmore caused an additional loss of $171,548.67 by transferring funds to Franklin or Franklin’s companies.  Larmore caused Shore Appliance to lose an additional $731,250.07 in fees and other payments to factors and to factoring brokers.  Larmore also caused Shore Appliance to draw on its bank lines of credit and pay extra interest to those banks in the amount $208,395.  Thus, the factoring arrangements and advances on Shore Appliance’s lines of credit in total caused Shore Appliance to lose in actual funds $939,645.  However, Shore Appliance as of March 2020 still owed the factors almost $270,000.  For all of Larmore’s conduct, actual cash losses to Shore Appliance totaled $1,850,488.94 and intended losses totaled $2,137,674.74.

On September 7, 2023, Judge Chasanow sentenced Stephen Franklin, age 54, of Salisbury, Maryland, to 66 months in federal prison on the same charges and also ordered him to pay restitution in the full amount of the victims’ losses.

United States Attorney Erek L. Barron commended the FBI for its work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Evelyn Lombardo Cusson, who prosecuted the case.

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

# # #

Baltimore, Maryland – John W. Balch, age 76, of Jacksonville, Florida, pleaded guilty yesterday to two counts of sexual exploitation of a child and admitted to the sexual exploitation of six minor victims, including prepubescent minors.  Today, co-defendant Jane Ellen Campbell, age 35, of Hagerstown, Maryland pleaded guilty to distribution of child pornography, related to one of the victims.

The guilty pleas were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Colonel Paul Joey Kifer, Chief of the Hagerstown Police Department; Commissioner Richard Worley of the Baltimore Police Department; and Frederick County State’s Attorney J. Charles Smith, III.

According to his guilty plea, between 2017 and 2022, Balch sexually exploited six minors between the ages of 3 and 15 years old.  Balch paid the victims’ mothers to produce images and videos of the victims engaged in sexually explicit conduct.  The exploitation also included paying the victims’ mothers to perform sex acts on their prepubescent children, record the abuse, and send the files to Balch.  Balch also admitted that he paid one of the mothers to transport her 15-year-old daughter to engage in sex acts with Balch in a hotel room.

As detailed in Campbell’s plea agreement, Campbell and Balch met in approximately 2007.  In recent years, Campbell drove various women to have commercial sex with Balch in hotels when Balch traveled to Maryland from his home in Florida.  In 2017, Balch asked Campbell multiple times to produce naked images of Minor Victim 1, who was nine years old at the time.  Campbell admitted that she sent Balch sexually explicit images of Minor Victim 1 on three occasions between January and March of 2017.  Beginning in 2021, Balch initiated conversations directly with Minor Victim 1.  According to Campbell’s plea agreement, Balch paid Campbell $3,245, between November 23, 2020, and August 5, 2022. 

As detailed in their plea agreements, upon their release from prison the defendants will be required to register as sex offenders in the places where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (“SORNA”).

Balch faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of 30 years for each count of sexual exploitation of a child   Campbell faces a mandatory minimum sentence of 5 years and a maximum of 20 years in federal prison for distributing visual depictions of a minor engaged in sexually explicit conduct.  Chief U.S. District Judge James K. Bredar has scheduled sentencing for Balch on January 26, 2024, at 10:00 a.m. and for Campbell on January 23, 2024, at 11:30 a.m. 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States 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.

United States Attorney Erek L. Barron commended the HSI, the Hagerstown Police Department, the Baltimore Police Department, and the Frederick County State’s Attorney’s Office for their work in this investigation.  U.S. Attorney Barron also recognized the U.S. Attorney’s Offices for the Northern District of West Virginia and the Middle District of Florida, and the FBI’s Pittsburgh Field Office for their assistance in the Balch case.  Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Joyce King, 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.

# # #

Baltimore, Maryland – Charles F. Wheat, III, age 38, of Bel Air, Maryland, pleaded guilty yesterday to producing sexually explicit images of five minor girls while they used a bathroom in his home, using a hidden camera. 

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; and Sheriff Jeffrey R. Gahler of the Harford County Sheriff’s Office.

According to his plea agreement, between April and November 2020, Wheat used a hidden camera to produce sexually explicit images of five minor girls while they used a bathroom in his home.  During that same time, Wheat was in communication with three female sex traffickers in the Philippines to whom Wheat provided payment in exchange for them sending Wheat images and videos of minors being sexually exploited.

As detailed in the plea agreement, Wheat sent sexually explicit images he produced of three of the minor female victims to two Filipino women.  One of the women who received the images was also depicted in several videos found on Wheat’s phone engaged in sexual conduct with a prepubescent boy.  Some of the videos also depict a prepubescent girl whom the woman encourages to engage in sex acts with the boy.

Wheat faces a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years in federal prison for production of child pornography.  Chief U.S. District Judge James K. Bredar has scheduled sentencing for January 17, 2024, at 10:30 a.m.

As detailed in the plea agreement, upon his release from prison, Wheat will also be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).    

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States 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.

United States Attorney Erek L. Barron commended the HSI and the Harford County Sheriff’s Office for its work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

# # #