District of Maryland

Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Jolen Michael Ghorbani, a/k/a “Jay,” age 28, formerly of Fairfax, Virginia, to 18 months in federal prison, followed by three years of supervised release, for bribery of a witness related to a federal criminal trial in which Ghorbani was a witness.  

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; and Chief Malik Aziz of the Prince George’s County Police Department.

According to his plea agreement, on February 3, 2021, Ghorbani was the victim of a kidnapping, assault, and robbery committed by Tray David Sherman and Sherman’s co-conspirators.  During the kidnapping, Ghorbani was transported from Maryland to Washington, D.C. where Sherman and his co-conspirators assaulted and robbed Ghorbani.  Sherman was indicted and arrested on March 31, 2021, for conspiracy to commit kidnapping.  On April 15, 2022, Ghorbani was served with a subpoena requiring his testimony at Sherman’s trial, which was initially scheduled to begin on July 11, 2022.

As detailed in the statement of facts, beginning on June 5, 2022, Ghorbani used a social media account to send a series of threatening and intimidating direct messages to Sherman, including a message where Ghorbani sent his telephone number to Sherman and said “[C]all me If you want to finesse trial.”  Approximately three weeks before the scheduled start of Sherman’s trial, Ghorbani sent another series of messages to Sherman through his social media account, this time soliciting a payment of $5,000 from Sherman in exchange for Ghorbani’s agreement to testify falsely or to refuse to testify at all at Sherman’s trial.  Ghorbani shared the messages he sent to Sherman with another individual, bragging that he (Ghorbani) was “[d]ancing with the devil,” and referring to Sherman, stating, “I’m auctioning off his freedom.”

On January 20, 2023, Tray Sherman, age 28, of Washington, D.C., the final member of the five-defendant kidnapping conspiracy, was sentenced to 126 months’ imprisonment.  Sherman and his coconspirators pleaded guilty to luring Ghorbani from a casino in Maryland to a building in Southeast Washington, D.C., where they threatened Ghorbani’s life, took his personal items, and held him hostage at gunpoint while Sherman and another co-conspirator returned to the casino to steal items from the victim’s hotel room.  The other four defendants all pleaded guilty to their roles in the conspiracy and were sentenced to between 10 and 14 years in federal prison.

United States Attorney Erek L. Barron commended the FBI Washington Field Office and the Prince George’s County Police Department for their work in the investigation and thanked the FBI Miami Field Office for its assistance.  Mr. Barron thanked Assistant U.S. Attorney Jeffrey J. Izant who prosecuted the case and thanked Assistant U.S. Attorney Leah B. Grossi for her assistance.

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

# # #

Two members of La Mara Salvatrucha (MS-13) were sentenced to life in prison for Racketeer Influenced and Corrupt Organizations (RICO) Act conspiracy and murder in aid of racketeering.

According to court documents, Luis Flores-Reyes, aka Maloso, aka Lobo, 41, of Arlington, Virginia, and Jairo Jacome, aka Abuelo, 40, of Langley Park, Maryland, were members of MS-13, an international criminal organization and one of the largest street gangs in the United States. MS-13 is organized into a series of sub-units or “cliques” that operate in specific geographic locations. Flores-Reyes was a leader within the powerful Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas, and El Salvador. Jacome was the highest-ranking member in a local clique called Langley Park Salvatruchas (LPS). Together, the two MS-13 cliques, including Flores-Reyes and Jacome, ran a protection scheme in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.” The gang also trafficked in illegal drugs, including heroin, marijuana, and cocaine. A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the gang’s illicit activities, using structured transactions and intermediaries to avoid law enforcement scrutiny.

Flores-Reyes and Jacome participated in at least four murders during the period of the conspiracy, mostly of victims they believed to be gang rivals.

Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing. The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang. On December 4, 2016, Jacome directed and participated in taking a 14 year-old boy from Langley Park to a wooded area outside Germantown, Maryland, and murdering him by repeated blows with a machete because Jacome suspected that the victim had provided information to the police about the gang. Jacome fled the murder scene in fear of being discovered by police but returned the next morning to bury the body. The victim was a missing person until his skeletal remains were recovered by law enforcement on June 6, 2018.  

In March 2017, a member of the Sailors Clique, who in an effort to hide from law enforcement was living in the Lynchburg, Virginia-area, had a dispute with a local high school student over marijuana. In response, Flores-Reyes authorized that a squad of MS-13 members drive to Lynchburg and murder the high school student. The gang members kidnapped the student from his front lawn and cut his hand off before killing him. After the murder, Flores-Reyes helped to hide and protect the killers from law enforcement.

In September 2022, Flores-Reyes, Jacome, and a third MS-13 member, Brayan Contreras-Avalos, were each convicted of racketeering conspiracy. Flores-Reyes and Jacome were additionally convicted of murder in aid of racketeering and extortion conspiracy, and Flores-Reyes and Contreras-Avalos were convicted of conspiracy to distribute controlled substances. Contreras-Avalos was sentenced to life in prison on Jan. 13.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.

The FBI Washington Field Office, HSI Baltimore, DEA New York Field Division, DEA Baltimore District Office, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, and Bedford County Sheriff’s Office investigated the case. The Nassau County District Attorney’s Office also provided valuable assistance.

Trial Attorney Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Timothy Hagan and Christopher Sarma for the District of Maryland prosecuted the case.

Baltimore, Maryland – Erek L. Barron, United States Attorney for the District of Maryland, announced today that Kandel & Associates, P.A., a Baltimore-based law firm, and Nelson R. Kandel, Esq., have entered into a settlement agreement with the United States to resolve allegations that they failed to reimburse the United States for certain Medicare payments the Government had previously made to medical providers on behalf of firm clients.

The Government’s investigation arose under the Medicare Secondary Payer (“MSP”) provisions of the Social Security Act, which authorizes Medicare, as a secondary payer, to make conditional payments for medical items or services under certain circumstances.  When an injured person receives a tort settlement or judgment, Medicare law requires persons or entities who receive the settlement or judgment proceeds, including the injured person’s attorney, to repay Medicare for its conditional payments.  If Medicare does not receive timely repayment, these same laws and regulations permit the Government to recover the conditional payments from the injured person’s attorney and others who received the settlement or judgment proceeds.

The Government alleges that, over many years, Medicare made conditional payments to healthcare providers to satisfy medical bills for firm clients.  During that period, the firm negotiated for and received settlement proceeds for the firm’s clients, but neither the firm nor its clients repaid Medicare for conditional payments it made to medical providers.  This settlement resolves the Government’s claims that the firm and Mr. Kandel failed to resolve at least twelve MSP debts.  The Government alleges that the firm disbursed settlement proceeds to clients without confirming the existence of an MSP debt.  Under the terms of the settlement agreement, the firm and Mr. Kandel agreed to pay the United States $39,828.66 to resolve the Government’s claims. 

The firm and Mr. Kandel also agreed to designate a person at the firm responsible for paying MSP debts; train the designated employee to ensure that the firm pays MSP debts on a timely basis; and periodically review any outstanding MSP debts with the designated employee to ensure compliance. 

The claims resolved by this settlement are allegations.  The settlement is not an admission of liability by the firm or Mr. Kandel, nor a concession by the United States that its claims are not well founded.

This settlement should remind attorneys of their obligation to reimburse Medicare for conditional payments after receiving settlement or judgment proceeds for their clients.  The attorneys’ obligation to reimburse Medicare for conditional payments exists regardless of whether they disburse settlement proceeds to their clients before the Centers for Medicare & Medicaid Services contacts them about the existence of an MSP debt.  When attorneys receive settlement funds in personal injury cases, they have an independent obligation to confirm whether their clients received conditional payments from Medicare. 

“Plaintiffs’ attorneys cannot simply rely on their clients’ representations about their status as Medicare beneficiaries and ignore their obligations to reimburse Medicare for its conditional payments,” said U.S. Attorney Erek L. Barron.  “This is the third matter our office has resolved with attorneys who fail to make good on their obligations to repay Medicare for its conditional payments, and we will continue to investigate these matters, regardless of when settlement distributions are made, and regardless of what clients tell their attorneys regarding their status as Medicare beneficiaries.”

U.S. Attorney Erek L. Barron commended Eric Wolfish, Assistant Regional Counsel, United States Department of Health and Human Services, Office of the General Counsel, Region III, for his work in the investigation.  Mr. Barron also thanked Assistant United States Attorney Alan C. Lazerow, who handled 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 Paula Xinis has sentenced Luis Flores-Reyes, a/k/a “Maloso,” “Lobo,”’ and “Viejo Lovvon,” age 42, of Arlington, Virginia and Jairo Jacome, a/k/a “Abuelo,” age 40, of Langley Park, Maryland, to life in federal prison, for charges related to a racketeering enterprise known as La Mara Salvatrucha, or “MS-13.”  Jacome and Flores-Reyes were convicted by a federal jury on September 29, 2022, of a racketeering conspiracy, murder in aid of racketeering, and an extortion conspiracy.  The jury also found Flores-Reyes guilty of a drug distribution conspiracy.  Flores-Reyes was sentenced yesterday and Jacome was sentenced today.

On January 12, 2023, Judge Xinis also sentenced co-defendant Brayan Contreras-Avalos, a/k/a “Anonimo” and “Humilde,” age 28, of Langley Park, Maryland, to life in federal prison for his participation in the same racketeering conspiracy.

The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; Special Agent in Charge Frank A. Tarentino III of the Drug Enforcement Administration – New York 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 Chief Marcus Jones of the Montgomery County Police Department.

MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland.  Jacome was the highest-ranking member of the local Langley Park Salvatrucha, or “LPS” clique.  Flores-Reyes and Contreras-Avalos were leaders within the Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas, and El Salvador.

At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang and to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence.  One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to 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, increase 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 during the trial, Flores-Reyes, Jacome, and Contreras-Avalos participated in at least six murders, including two minor victims, during the period of the conspiracy.  Most of the victims were purported gang rivals except for one minor victim.  For example, in June 2016, members of MS-13, including Contreras-Avalos, stabbed to death two unhoused individuals, who gang members believed to be members of the 18th Street gang, in Hyattsville, Maryland.  The investigation revealed no evidence that the victims were in fact members of any gang.

Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing.  The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang.  In December 2016, Jacome directed and participated in the murder of a 14-year-old member of MS-13 who was suspected of talking to the police.  The boy’s remains were discovered more than 18 months later in a wooded area outside of Germantown, Maryland.

Additionally, in March 2017, a member of the Sailors Clique, who was hiding from law enforcement in the Lynchburg, Virginia, area, after committing a murder in 2016 in Gaithersburg, Maryland, had a dispute with a local high school student over marijuana.  In response, Flores-Reyes aided and abetted a squad of MS-13 members to drive down to Lynchburg and murder this high school student.  The gang members kidnapped the student from his front lawn and cut his hand off before killing him.  After the murder, Flores-Reyes helped to hide and protect the killers from law enforcement.

According to court documents and evidence presented at trial, the defendants also ran an extortion scheme in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.”  Flores-Reyes and Contreras-Avalos also trafficked illegal drugs, including marijuana, and cocaine.  A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the illicit activities of the gang, using structured transactions and intermediaries to avoid law enforcement scrutiny.

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.

This case is 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.

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.

United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI, DEA, HSI, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, Nassau County District Attorney’s Office, the Bedford County Commonwealth’s Attorney’s Office and the Bedford County Sheriff’s Office for their work in the investigation.  Mr. Barron and Mr. Polite thanked Assistant U.S. Attorneys Timothy F. Hagan, Chris M. Sarma, William Moomau, Assistant Director Catherine Dick of the Department of Justice Consumer Protection Division and Trial Attorney Alexander Gottfried of the Justice Department’s Criminal Division, who prosecuted this case.

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

# # #

Baltimore, Maryland - Erek L. Barron, United States Attorney for the District of Maryland announced today that the Maryland U.S. Attorney’s Office has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy, released earlier today.  The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.

 The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations.  The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.

Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation.  A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.

The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company.  The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution.  If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.

 In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution.  Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.

The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo.  The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger.  Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.

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.

# # #

Greenbelt, Maryland – A federal jury convicted Madani Ilara Tejan, a/k/a “Malik,” “Mylik,” and “Dani,” age 30, of Washington, D.C., late on February 17, 2023, for using a firearm in connection with murder and robbery, and for a drug distribution conspiracy. 

The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Wayne Jacobs of the FBI Washington Field Office; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Chief Malik Aziz of the Prince George’s County Police Department; Chief Robert J. Contee of the Metropolitan Police Department; Director Corenne Labbé of the Prince George’s County Department of Corrections; and Director Thomas N. Faust of the D.C. Department of Corrections.

According to the evidence presented at this nine-day trial, on October 3, 2018, Tejan met with a drug customer, to whom Tejan had arranged to sell drugs.  During the meeting, Tejan shot and killed the drug customer, then stole the victim’s car, wallet, and other personal items.  On October 20, 2018, a search warrant was executed at a residence in Upper Marlboro, Maryland, associated with Tejan and law enforcement recovered the victim’s wallet, two bags of marijuana and a prepaid cellular phone.  Investigation revealed that the prepaid phone had been in contact with the victim’s phone several times on October 3, 2018 and was used interchangeably with Tejan’s registered phone to communicate with the victim in the hours before his murder.  Additionally, 1,013 fentanyl pills were seized from Tejan while he was residing in a government-run residential facility.  Tejan’s social media accounts and phone messages revealed that he distributed fentanyl marketed as oxycodone as well as other prescription drugs and marijuana to multiple individuals, including the victim.

Tejan faces a mandatory minimum of five years in federal prison and a maximum sentence of 40 years in federal prison for conspiracy to distribute and possession with the intent to distribute controlled substances; a maximum of 20 years in federal prison for possession with the intent to distribute controlled substances and for an armed commercial robbery; and a maximum of life in federal prison for use of a firearm to commit murder in relation to a crime of violence.  No sentencing date has been set for Tejan.

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 and Assistant Attorney General Kenneth A. Polite commended the FBI, DEA, Prince George’s County Police Department, Metropolitan Police Department, Prince George’s County Police Department; Prince George’s County Department of Corrections, D.C. Department of Corrections, for their work in the investigation and thanked the Prince George’s County State’s Attorney’s Office and the U.S. Attorney’s Office for the District of Columbia for their assistance in the investigation and prosecution.  Mr. Barron thanked Assistant U.S. Attorney Caitlin R. Cottingham and Trial Attorneys Gerald A. A. Collins and Lisa K. Man of the Criminal Division’s Organized Crime and Gang Section, 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 – Jerry Phillips, a/k/a “Tian Juzo,” age 25, of Capitol Heights, Maryland, pleaded guilty today to a federal wire fraud conspiracy, aggravated identity theft, and illegal possession of a machine gun, related to a scheme to fraudulently obtain more than $1 million in COVID-19 CARES Act Paycheck Protection Program loan applications (PPP), Economic Injury Disaster loan applications (EIDL), and unemployment insurance claims. 

The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor - Office of Inspector General (DOL-OIG); Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration - Office of Inspector General, Eastern Region, and Acting Special Agent in Charge Mike Serra, of the Mid-Atlantic Region, Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG).

“Fraudsters like Jerry Phillips often commit other crimes, as demonstrated by his illegal possession of a ghost gun, which he modified to be a machine gun,” said United States Attorney Erek L. Barron.  “We will continue to use every legal means necessary to remove illegal guns from our communities and to hold criminals accountable.”

“Jerry Phillips conspired with his brother to defraud the UI, PPP, and EIDL pandemic relief programs of more than $750,000 in funds intended to assist those who were truly in need from the financial impact brought about by the COVID-19 pandemic,” said Troy W. Springer, Acting Special Agent in Charge of the National Capital Region, U.S. Department of Labor – Office of Inspector General. “My office will continue to work closely with the U.S. Attorney’s Office for the District of Maryland and our other law enforcement partners to pursue those who unwisely chose to commit pandemic-related UI fraud and hold them accountable for their criminal conduct.”

“During this pandemic, we have all too often seen people take advantage of programs meant to help those in need, stealing money away from those in crisis,” said Kareem A. Carter, Special Agent in Charge of the IRS-CI Washington D.C. Field Office.  “We will continue in our partnership with fellow federal agencies to investigate individuals who illegally use pandemic relief funds for personal financial gain.”

“Conspiring to fraudulently gain access to SBA program funds by falsifying personal identifying information is reprehensible,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”

According to his plea agreement, from March 2020 to February 2022, Phillips worked with his brother and co-defendant, Jaleel Phillips, and at least one other person. to fraudulently obtain COVID-19 related benefits, including filing fraudulent PPP loan applications, EIDL loan applications, and unemployment insurance claims.  As detailed in the statement of facts, Phillips and his co-conspirators created fictitious aliases, used the personal identifying information of real people, and used defunct corporate entities or new business entities with no actual business operations to apply for EIDL and PPP loans, and unemployment benefits.

As part of the scheme, Phillips admitted that he created and used multiple fake identities to submit fraudulent PPP and EIDL loan applications and used the personal identifying information of more than 20 real people in furtherance of fraudulent unemployment claims.  The fraudulently obtained PPP and EIDL loans and unemployment insurance claims were deposited into the bank accounts opened in the names of the aliases.  The money was then withdrawn by Phillips and his co-conspirators through ATM withdrawals and purchases made on the associated debit and credit cards or transferred between the various financial accounts established in the aliases’ names.  Phillips used $65,538.95 of the fraudulently obtained funds to purchase a 2020 Chevrolet Camaro, which he registered in his name at the Maryland Motor Vehicle Administration.  Jerry Phillips also admitted that he personally obtained and controlled more than $1 million in fraud proceeds from the fraudulent PPPs and EIDLs. 

A search of the defendant’s residence recovered more than 25 fake driver’s licenses from multiple states and multiple identification documents from different jurisdictions with the same alias.  Law enforcement also recovered four “ghost guns” which Jerry Phillips purchased online, using an alias.  Phillips admitted that he illegally modified one of the ghost guns into a machine gun capable of firing multiple rounds with one pull of the trigger.

Jaleel Phillips, age 25, of Capitol Heights, Maryland, previously pleaded guilty to his role in the wire fraud conspiracy and faces a maximum sentence of 30 years in federal prison.  U.S. District Judge Theodore D. Chuang has scheduled sentencing for April 14, 2023, at 9:30 a.m.

Jerry Phillips faces a maximum sentence of 30 years in federal prison for the wire fraud conspiracy; a mandatory sentence of two years in federal prison, consecutive to any other sentencing imposed, for aggravated identity theft; and a maximum of 10 years in federal prison for illegal possession of a machine gun.  Judge Chuang has scheduled sentencing for Jerry Phillips on May 16, 2023, at 2 p.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 DOL-OIG, IRS-CI, SBA-OIG, FDIC-OIG, and the Mississippi Attorney General’s Office for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the federal case.  He also thanked the Office of Mississippi Attorney General Lynn Fitch-Public Integrity Division, for its assistance. 

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 – A federal jury convicted Jacky Lynn McComber (formerly Jacky Lynn Kimmel), age 50, of Elkridge, Maryland, on federal charges of submitting false claims and making false statements, in connection with the hours she claimed to have worked on a federal contract with the National Security Agency (NSA).  McComber was the CEO and owner of InfoTeK, an information technology (IT) services corporation, which had an ongoing contract with the NSA. 

The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Kevin Gerrity, Acting Inspector General of the National Security Agency; and Robert P. Storch, Inspector General of the Department of Defense. 

According to evidence presented at trial, from July 2011 until March 2018, the NSA had an ongoing contract, known as the Ironbridge contract, with InfoTeK to provide maintenance and enhancement support for the information technology and software requirements of the NSA’s National Security Operations Center (NSOC) and the Counter Terrorism Mission Management Center (CTMMC).  Because the subject matter of these contracts involved classified information, most of the work had to be performed at secure, access-controlled locations and there were severe limitations on the amount of work that could be performed off-site.  InfoTeK billed the NSA monthly for the hours worked by its employees and contractors.

According to the evidence presented at the four-week trial, the Ironbridge contract required InfoTeK to identify a Program Manager (PM) who would be responsible for overseeing InfoTeK’s performance of its contractual obligations and serve as InfoTeK’s point of contact with government officials.  From 2011 to 2013, several individuals, including McComber, served as the PM on the Ironbridge contract.  Starting in the summer of 2013, Individual A held the position of Senior Program Manager on the Ironbridge contract, until she was replaced by McComber in mid-March 2016.  McComber held the position through September 2017.  According to trial testimony, for 17 months, beginning in mid-March 2016 when McComber took over the PM position, she billed an average of 144 hours per month to the NSA for her supposed work.  In all, between March 14, 2016 and September 30, 2017, InfoTeK billed NSA for 2,603.5 hours of work on the Ironbridge contract purportedly performed by McComber in her role as Senior Program Manager.  NSA paid these charges in full, at a total cost of $388,878.78.

A subsequent review and comparison by the NSA OIG in the fall of 2017 of McComber’s NSA access control records with the time InfoTeK billed for her work on the Ironbridge contracts established that McComber was not within access control at the NSA’s Fort Meade location for 2,342.5 (90%) of the 2.603.5 hours she had recorded on her timesheets and that InfoTeK subsequently billed to NSA.  In addition to not being physically present at the worksite for the vast majority of hours she billed to the Ironbridge contract, the evidence showed that McComber did not work the number of hours on the Ironbridge contract that she recorded on her timesheet.  For example, on occasions when McComber billed a full eight-hour day to the Ironbridge contract, she participated in charity events, attended her high school reunion, vacationed in Texas and in Ocean City, Maryland, and performed business development efforts on behalf of InfoTeK that were unrelated to the Ironbridge contract.  Other testimony by former InfoTeK officers indicated that McComber was only in InfoTeK’s Columbia, Maryland offices irregularly and when she was there, she did not appear to be working on Ironbridge-related matters.  As a result of McComber’s false claims as to the time she worked on the Ironbridge contract between March 2016 and September 2017, the NSA substantially overpaid InfoTeK.

As further detailed in trial testimony, on October 3, 2017, McComber participated in a voluntary interview with NSA OIG investigators concerning allegations received from a whistleblower that she had charged the government for hours that she did not actually work.  McComber falsely claimed that her consistent billings of eight hours per day spent on Ironbridge-related work most days were legitimate and that she did not falsely fill out her timesheet or put any false information on it.  

McComber faces a maximum sentence of five years in federal prison for each of 19 counts of submitting false claims and for one count of making false statements.  U.S. District Judge Ellen L. Hollander has scheduled sentencing for May 12, 2023. 

United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite commended the National Security Agency Office of Inspector General and DCIS for their work in the investigation.  Mr. Barron and Mr. Polite thanked Assistant U.S. Attorney Jefferson M. Gray and Trial Attorney Peter L. Cooch of the Justice Department’s Fraud Section, who are prosecuting the case.

# # #

Baltimore, Maryland – A federal grand jury in Maryland today returned an indictment charging Sarah Beth Clendaniel, age 34, of Catonsville, Maryland, and Brandon Clint Russell, age, 27, of Orlando, Florida, with conspiracy to destroy an energy facility.  The defendants have been detained since their arrest on February 3, 2023, on related charges.

The indictment 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.

The single-count indictment alleges that Russell and Clendaniel conspired to willfully damage the property of an energy facility, causing damage exceeding $100,000 and causing a significant interruption and impairment of a function of the facility.

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. If convicted, Russell and Clendaniel each face a maximum sentence of 20 years in federal prison for conspiracy to damage an energy facility. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Erek L. Barron commended the Baltimore FBI Field Office for its outstanding work in the investigation and praised the Joint Terrorism Task Force, the Maryland State Police, the Baltimore County Police Department and the Tampa, Washington, and New York Field Offices of the FBI for their valuable assistance. Mr. Barron also thanked the Department of Justice’s National Security Division and the United States Attorney’s Office for the Middle District of Florida for their assistance. Mr. Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case and thanked Assistant U.S. Attorney Christina Hoffman for her assistance. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. To report a Maryland-based hate crime, contact the FBI Baltimore field office at (410) 265-8080 or www.tips.fbi.gov. 

# # #

Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Garnell Eugene Graves, age 59, of Baltimore, to 50 years in federal prison, followed by lifetime supervised release, for four counts of sexual exploitation of a child related to his sexual abuse of five minor victims.  The sentence was imposed late on February 10, 2023.

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; Baltimore City State’s Attorney Ivan J. Bates, and Commissioner Michael Harrison of the Baltimore Police Department.

According to his guilty plea, from 2007 to 2020, Graves sexually abused five minors between the ages of 6 and 13 years old.  Beginning in 2007, Graves regularly sexually abused Minor Victim 1 from the time she was eight until she was 11 years old—and continued to exploit her until she was 16 years old.  Graves recorded some of the sexual encounters and sometimes showed Minor Victim 1 the videos of the abuse.  Graves also often gave Minor Victim 1 gifts, including a smartphone, in exchange for her “forgiveness” and to encourage her not to inform her mother.  Additionally, Graves placed a hidden camera in Minor Victim 1’s bedroom and recorded videos of Minor Victim 1 in various stages of undress. 

Graves admitted that he sexually abused Minor Victim 2 when Minor Victim 2 was 12 years old.  On three occasions, Graves photographed himself sexually abusing Minor Victim 2, who appeared to be sleeping at the time.    

As detailed in the plea agreement, Graves sexually abused Minor Victim 3 from age 6 through age 13.  In at least one instance, Graves told Minor Victim 3 that they would get married and have children in the future.  Graves also showed Minor Victim 3 images of Graves and Minor Victim 1 engaging in sex acts that were taken during his abuse of Minor Victim 1.  Graves admitted that to conceal his conduct and prevent Minor Victim 3 from disclosing Graves’ abuse to others, Graves provided Minor Victim 3 with food, money, and other gifts.  When Minor Victim 3 tried to end the abuse, Graves threatened Minor Victim 3 by telling her that if she stopped, he would abuse Minor Victim 5.  As a result, Graves continued to abuse Minor Victim 3—and ultimately sexually abused Minor Victim 5 anyway.  On at least 11 instances between 2014 and 2017, Graves sexually abused Minor Victim 3 and produced videos and images documenting that abuse. 

Graves further admitted that he sexually abused Minor Victim 4 when she was between 9 and 10-years old.  In 2017, Graves produced ten images Minor Victim 4 laying on a bed with her genitals exposed.  The images were located on Graves’ digital devices. As he had previously done with Minor Victim 1, Graves showed pornography to Minor Victim 3 and Minor Victim 4 on a social media platform and told the victims of his desire to engage in the same conduct with them.

Graves also admitted that he sexually abused Minor Victim 5.  Specifically, when Minor Victim 5 was approximately 6 or 7 years old, Graves entered the room where she was sleeping and took Minor Victim 5 to another room, where he sexually abused her.  After the encounter, Graves instructed Minor Victim 5 not to tell anyone. 

The videos and images documenting Graves’ abuse of Minor Victims 1, 2, 3, and 4, were located on his digital devices after his arrest in December 2020.

Graves has two previous convictions related to his sexual abuse of two other minor victims.  Specifically, in 1991, Graves was convicted of taking indecent liberties with a minor child in the Superior Court of the District of Columbia.  In 1998, Graves was convicted of sexual offense in the third-degree involving another victim, in the Circuit Court for Prince George’s County, Maryland.

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

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

# # #

A federal grand jury in Baltimore returned an indictment today charging a Maryland man with sexual exploitation of children and distribution, receipt, and possession of images and videos depicting the sexual abuse of children.

According to court documents, between 2013 and 2019, Paul Francis Blaisse, 63, of Walkersville, allegedly used internet chat applications to engage in sexually explicit video chats with minor children in southeast Asia. In 2013, Blaisse allegedly recorded a video chat with a prepubescent child engaged in sexually explicit conduct. Throughout 2019, Blaisse allegedly used Skype to communicate with multiple individuals located in southeast Asia who sent him images depicting the sexual abuse of prepubescent children. Blaisse also allegedly distributed child sexual abuse material (CSAM).

Blaisse came to the attention of law enforcement after Skype notified the National Center for Missing and Exploited Children that Blaisse had uploaded CSAM to his Skype account. The Frederick County Sheriff’s Office obtained a warrant to search Blaisse’s residence and, during their search, discovered multiple digital devices belonging to Blaisse that contained CSAM.

Blaisse is charged with two counts of sexual exploitation of children, five counts of distribution of child pornography, three counts of receipt of child pornography, and three counts of possession of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in prison.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Erek L. Barron for the District of Maryland, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office made the announcement.

The FBI and the Frederick County Sheriff’s Office are investigating the case.

Trial Attorney Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Michael Aubin for the District of Maryland are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

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

Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced David Banks, age 29, of Baltimore, Maryland, yesterday to 25 years in federal prison, followed by five years of supervised release, for a carjacking and armed robbery conspiracy, including six armed robberies and a carjacking, during which three people were shot and two were killed.  

The sentence 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 (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Acting Chief Dennis J. Delp of the Baltimore County Police Department.

According to his guilty plea, Banks personally participated in a conspiracy to commit a series of carjackings and armed robberies.  In each of the robberies and carjackings a member of the conspiracy brandished a gun to threaten and intimidate the victims.  Two victims were shot and killed during a carjacking and robbery, respectively.  The conspirators would often use the stolen vehicles to commit additional criminal acts and they shared the proceeds of their exploits, with certain conspirators responsible for pawning any items recovered from the victims and the stolen vehicles.

Banks admitted that he personally participated in a carjacking on June 12, 2019, in which a victim was shot and killed, and that he intended to cause death or serious bodily injury to the victim.  Banks also participated in five armed robberies and an attempted robbery committed from July 7, 2019 to August 12, 2019.  As detailed in the plea agreement, a victim was shot during the attempted robbery on July 24, 2019, and another victim was shot and killed during an armed robbery committed four days later.

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.

United States Attorney Erek L. Barron commended the ATF, the Baltimore Police Department, and the Baltimore County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Patricia C. McLane and Brandon K. Moore, who prosecuted the case.

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

# # #

Baltimore, Maryland – Erek L. Barron, United States Attorney for the District of Maryland, and Special Agent in Charge Thomas J. Sobocinski, of the Federal Bureau of Investigation, Baltimore Field Office, announced the filing of a federal criminal complaint charging Sarah Beth Clendaniel, of Catonsville, Maryland, and Brandon Clint Russell, of Orlando, Florida, with conspiracy to destroy an energy facility. 

The criminal complaint was unsealed upon the arrests of the defendants. An initial appearance for Clendaniel is scheduled for 2:00 p.m. today in the U.S. District Court in Baltimore before U.S. Magistrate Judge J. Mark Coulson. Russell will have his initial appearance at 1:30 today in U.S. District Court in Orlando, Florida.

“This alleged planned attack threatened lives and would have left thousands of Marylanders in the cold and dark,” said Maryland U.S. Attorney Erek L. Barron. “We are united and committed to using every legal means necessary to disrupt violence, including hate-fueled attacks.”

“The threat posed by domestic violent extremists is evolving and persistent,” said Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore field office. “The FBI will continue to work closely with our law enforcement and private sector partners to identify and disrupt any potential threat to the safety of our citizens.”

“Driven by their ideology of racially-motivated hatred, the defendants allegedly schemed to attack local power grid facilities,” said Assistant Attorney General for National Security Matthew G. Olsen.  “The Justice Department will not tolerate those who threaten critical infrastructure and imperil communities in the name of domestic violent extremism.”

As alleged in the affidavit filed in support of the criminal complaint:

From at least June 2022 to the present, Russell conspired to carry out attacks against critical infrastructure, specifically electrical substations, in furtherance of Russell’s racially or ethnically motivated violent extremist beliefs. 

Russell posted links to open-source maps of infrastructure, which included the locations of electrical substations, and he described how a small number of attacks on substations could cause a “cascading failure.” Russell also discussed maximizing the impact of the planned attack by hitting multiple substations at one time.  

A Maryland-based woman identified as Sarah Beth Clendaniel, collaborated on a plan to carry out the attacks. Clendaniel conspired to secure a weapon  and identified five substations she planned to target. Clendaniel allegedly stated that if they hit a number of them all in the same day, they “would completely destroy this whole city,” and that a “good four or five shots through the center of them . . . should make that happen.” She further added, “[i]t would probably permanently completely lay this city to waste if we could do that successfully.”

A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings. If convicted, Russell and Clendaniel each face a maximum sentence of 20 years in federal prison for conspiracy to damage an energy facility. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Erek L. Barron commended the Baltimore FBI Field Office for its outstanding work in the investigation and praised the Joint Terrorism Task Force, the Maryland State Police, the Baltimore County Police Department and the Tampa, Washington, and New York Field Offices of the FBI for their valuable assistance. Mr. Barron also thanked the Department of Justice’s National Security Division and the United States Attorney’s Office for the Middle District of Florida for their assistance. Mr. Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case and thanked Assistant U.S. Attorney Christina Hoffman for her assistance. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. To report a Maryland-based hate crime, contact the FBI Baltimore field office at (410) 265-8080 or www.tips.fbi.gov. 

# # #

A federal criminal complaint was unsealed charging Sarah Beth Clendaniel, 34, of Catonsville, Maryland, and Brandon Clint Russell, 27, of Orlando, Florida, with conspiracy to destroy an energy facility. 

The defendants were arrested on Feb. 3. Clendaniel will make her initial court appearance today in the U.S. District Court in Baltimore before U.S. Magistrate Judge Brendan Hurson. Russell will make his initial appearance today in U.S. District Court in Orlando, Florida, before U.S. Magistrate Judge Embry Kidd.

“Driven by their ideology of racially-motivated hatred, the defendants allegedly schemed to attack local power grid facilities,” said Assistant Attorney General for National Security Matthew G. Olsen.  “The Justice Department will not tolerate those who threaten critical infrastructure and imperil communities in the name of domestic violent extremism.”

“This alleged planned attack threatened lives and would have left thousands of Marylanders in the cold and dark,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We are united and committed to using every legal means necessary to disrupt violence, including hate-fueled attacks.”

“Attacks on multiple electrical substations in Maryland would have caused suffering to thousands of Americans going about their everyday lives, but the FBI and our partners put a stop to that threat,” said Assistant Director Robert R. Wells of the FBI's Counterterrorism Division. “According to the criminal complaint, the defendants allegedly were taking specific steps to carry out their plans, including selecting targets and trying to illegally acquire a rifle. The FBI and our partners will hold accountable all those who commit criminal acts that threaten the safety of those in our communities, regardless of their motivations.”

“The threat posed by domestic violent extremists is evolving and persistent,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “The FBI will continue to work closely with our law enforcement and private sector partners to identify and disrupt any potential threat to the safety of our citizens.”

As alleged in the affidavit filed in support of the criminal complaint:

From at least June 2022 to the present, Russell conspired to carry out attacks against critical infrastructure, specifically electrical substations, in furtherance of Russell’s racially or ethnically motivated violent extremist beliefs. As alleged, Russell encouraged the use Mylar balloons to short out a power transformer and, in a conversation on Oct. 25, 2022, Russell encouraged an attack be carried out “when there is greatest strain on the grid,” like “when everyone is using electricity to either heat or cool their homes.”

In his conversations on encrypted communications applications, Russell posted links to open-source maps of infrastructure, which included the locations of electrical substations, and he described how a small number of attacks on substations could cause a “cascading failure.” Russell also discussed maximizing the impact of the planned attack by hitting multiple substations at one time. 

A Maryland-based woman identified as Sarah Beth Clendaniel, collaborated on a plan to carry out the attacks. Specifically, Clendaniel discussed her desired rifle for the attack. In later conversations, Clendaniel allegedly stated that if they hit a number of electrical substations all in the same day, they “would completely destroy this whole city,” and that a “good four or five shots through the center of them . . . should make that happen.” She further added, “[i]t would probably permanently completely lay this city to waste if we could do that successfully.”

If convicted, Russell and Clendaniel each face a maximum sentence of 20 years in federal prison for conspiracy to damage an energy facility. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

The FBI Baltimore Field Office is investigating the case, with valuable assistance provided by the FBI’s Joint Terrorism Task Force and Tampa, Washington and New York Field Offices as well as the Maryland State Police and the Baltimore County Police Department.

Assistant U.S. Attorney Kathleen O. Gavin for the District of Maryland is prosecuting the case, with valuable assistance provided by Assistant U.S. Attorney Christina Hoffman for the District of Maryland and the National Security Division’s Counterterrorism Section.

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

Baltimore, Maryland – Gladstone Njokem, age 36, of Hyattsville, Maryland, pleaded guilty on February 3, 2023, to federal charges of conspiracy to commit wire fraud and aggravated identity theft, in connection with a scheme to fraudulently obtain more than $1.3 million in COVID-19 CARES Act unemployment insurance (UI) benefits.  

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; Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor - Office of Inspector General (DOL-OIG); Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Andrea Peacock of the U.S. Department of the Treasury - Office of Inspector General.

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.  It expanded states’ ability to provide UI for many workers impacted by the COVID-19 pandemic, including for workers who are not ordinarily eligible for unemployment benefits.

According to his guilty plea, from February 2020 through February 2021, Njokem, co-defendants, Martin Tabe and Sylvester Atekwane, and others conspired to impersonate victims in order to obtain money, including by submitting fraudulent claims for UI benefits.  Njokem and his co-conspirators collected the personally identifiable information (PII) of victims, without the victims’ knowledge or consent, then shared the PII amongst themselves and with others to facilitate the fraud and then used the victims’ PII to submit fraudulent applications for UI benefits in Maryland, Arizona, District of Columbia, Georgia, Illinois, Michigan, Tennessee, and Virginia. 

In total, at least $1,313,325 in UI benefits, applied for using the names and PII of over 183 victims, are traceable to Njokem’s conspiracy based on common IP addresses, mailing addresses and/or email addresses used for the fraudulent UI claims.

Njokem and the government have agreed that, if the Court accepts the plea agreement, Njokem will be sentenced to between 24 and 70 months in federal prison.  U.S. District Judge Richard D. Bennett has scheduled sentencing for May 17, 2023 at 11:00 a.m.

Co-defendants Martin Tabe, age 34, of Bowie, Maryland and Sylvester Atekwane, age 33, of Hyattsville, Maryland previously pleaded guilty to their roles in the fraud scheme.  Judge Bennett has scheduled sentencing for Atekwane on April 13, 2023 at 11:00 a.m. and for Tabe on May 2, 2023 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, the DOL-OIG, HSI, and the U.S. Department of the Treasury – OIG for their work in the investigation.  Mr. Barron thanked the Prince George’s County Police Department, the Baltimore County Police Department, and the Maryland Department of Labor for their assistance.  Mr. Barron also thanked Assistant U.S. Attorneys Sean R. Delaney and Darryl L. Tarver, who are prosecuting the federal case.

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

# # #

Baltimore, Maryland - Summer Nichole McCroskey, age 25, of Elkton, Maryland, pleaded guilty today to federal charges related to her participation in a conspiracy to sexually abuse a child, from the age of approximately four months to two years old, to producing and distributing images documenting the sexual abuse of the child, and to possession of child pornography.

The guilty plea 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; Cecil County State’s Attorney James Dellmyer; and Cecil County Sheriff Scott Adams.

At today’s plea hearing, McCroskey admitted that she and her co-conspirator sexually abused a child, starting at the time the victim was approximately four months of age through at least October 2021, when the victim was two years old, and produced videos and images of the abuse.  The abuse included oral, vaginal, and anal penetration, as well as bondage, and both McCroskey and her co-conspirator participated in the abuse.  Additionally, McCroskey distributed the files documenting the sexual abuse of the child to her co-conspirator and others using an encrypted messaging application.

McCroskey faces a mandatory minimum of 15 years and a maximum of 30 years in federal prison for conspiracy to sexually exploit a child and for each of seven counts of sexual exploitation of a child; a mandatory minimum of five years and a maximum of 20 years in federal prison for each of five counts of distribution of child pornography; and a maximum of 20 years in federal prison for each of three counts of possession of child pornography.  U.S. District Judge Richard D. Bennett has scheduled sentencing for McCroskey on May 18, 2023, at 11:00 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 FBI, the Cecil County State’s Attorney’s Office and the Cecil County Sheriff’s Office for their work in the investigation and thanked Assistant U.S. Attorneys Paul E. Budlow and Colleen E. McGuinn who are prosecuting the case.

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

# # #

Greenbelt, Maryland – U.S. District Judge Deborah J. Boardman sentenced Sherrie Lynne Bryant, age 55, of Bowie, Maryland, yesterday to 18 months in federal prison, followed by three years of supervised release, for wire fraud, relating to the submission of fraudulent Coronavirus Aid, Relief, and Economic Security (“CARES”) Act loan applications, and for violating her probation from a previous federal conviction for obstruction of an audit.  

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

Financial assistance offered through the CARES Act, which was enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic, included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, and Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations, both administered through the Small Business Administration (SBA).  An EIDL advance did not have to be repaid, and small businesses could receive an advance of up to $10,000, even if they were not approved for an EIDL loan.

According to her plea agreement, Bryant was the managing member of NOW LLC.  The company’s stated purpose was to “provide mentoring, education and training to underserved populations.  Also, to provide vocational rehabilitation and mental health support services to: children, youth and adults.”  In reality, NOW LLC has been awarded contracts for “janitorial services” for Amtrak at the New Carrollton, Maryland and Baltimore-Washington International Airport Amtrak stations.  They have also applied for SBA loans through various programs and cited their business as “construction and contractors.”  A review of checks from NOW LLC’s operating account indicate that they may be outsourcing janitorial work to subcontractors.

On March 30, 2020, Bryant submitted an EIDL loan application for $89,500, which falsely stated that NOW LLC earned approximately $475,610 in gross revenues during the prior 12 months and incurred cost of goods sold of $276,614 during the same time frame.  Further, Bryant falsely answered “No” to the question concerning whether she had been convicted…or been placed on any form of parole or probation.  In fact, Bryant was on probation for a previous federal conviction at the time she submitted the application.

As detailed in the plea agreement, Bryant received a $10,000 EIDL advance and was subsequently approved for, and received, loan proceeds of $89,400.  On April 22, 2021, Bryant submitted a request for a modification of the EIDL, specifically, approval to increase the loan amount to $388,000, based on the certifications in her prior EIDL application.  The loan increase was approved and on June 28, 2021, Bryant received additional loan proceeds of $298,500.

In the meantime, on April 28, 2020, Bryant also applied for, and subsequently received, PPP loan proceeds totaling $21,200.  Bryant again falsely responded to the question that asked, “within the last five years, for any felony, has the Applicant…(1) been convicted; (2) pleaded guilty; (3) pleaded nolo contendere; (4) been placed on pretrial diversion; or (5) been placed on any form of parole or probation (including probation before judgment)?”  Bryant answered “No” to that question, knowing that she was on federal supervised release at the time the application was submitted.

Bryant admitted that she fraudulently obtained at least $419,100 in COVID-19 CARES Act loan proceeds.  Bryant misappropriated a portion of the funds for her personal use, including paying for her car and a boat, paying for a vacation, and paying for tickets to sporting events.

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 IRS-CI for its work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Kelly O. Hayes and Joseph Wenner, 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.

# # #

Baltimore, Maryland – Justin Kuchta, age 39, of Annapolis, Maryland, pleaded guilty today to a federal charge for threatening to murder a United States Member of Congress. 

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Chief J. Thomas Manger of the United States Capitol Police; and Acting Superintendent of the Maryland State Police, Lt. Colonel Dalaine Brady.

“You have the right to your own opinions, but not the right to threaten a federal official’s life,” 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.” 

According to his plea agreement, Kuchta made threats to murder a U.S. Member of Congress.  Specifically, a U.S. Member of Congress’ district office in Texas reported that on July 18, 2022, it received a threatening message via an event management website.  The website was being used by an event planner to coordinate an event held in the State of Missouri, being attended by Member of Congress 1.  The Subject line of that email read, in relevant part: “Rally in Missouri – Featured Guest [Member of Congress 1], [Individual 1], and [Individual 2].”  The message stated, “Thank you for the address!!! I’m coming to murder all of you Satanist f*ckers!!! Especially the chuckle-f*ck Zodiak [sic] Killer [Member of Congress 1]!! That fat fake f*cker ass will be the first on the gallows!! SEE ALL OF YOU F*CKERS REALLY SOON!!! With my fresh militia and weapons!!! Thanks for the info f*ckers!!!”  The Member of Congress’ Washington office reported that a similar message was sent on July 22, 2022, using the same event management website.

As detailed in the plea agreement, an investigation revealed that the IP address was registered to a private high-speed network operated by the State of Maryland.  Network records revealed that the IP address originated from a Virtual Private Network and computer assigned to Kuchta.  Kuchta was subsequently interviewed by Special Agents with the U.S. Capitol Police and investigators assigned to the Maryland State Police Computer Crimes Unit at his place of employment in Annapolis, Maryland, after being advised of his rights.  While Kuchta initially denied sending the email messages, he ultimately admitted that he sent the July 18, 2022, threatening message over the website.    

Kuchta faces a maximum sentence of five years in federal prison for interstate communication containing a threat to injure.  U.S. District Judge Richard D. Bennett has scheduled sentencing for April 27, 2023, at 11:00 a.m. 

United States Attorney Erek L. Barron commended the United States Capitol Police and the Maryland State Police for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Thomas M. Sullivan, who is prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, and its efforts to protect national security, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/anti-terrorism.

# # #

Baltimore, Maryland – A federal grand jury returned an indictment yesterday charging Ryan E. Dales, age 34, of Baltimore, Maryland, with illegal possession of a firearm by a previously convicted felon and with wire fraud, relating to the submission of fraudulent applications for unemployment insurance (UI) benefits under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. 

The indictment 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; and Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor, Office of Inspector General.

According to the two-count indictment, Dales illegally possessed a firearm on January 20, 2023. 

The CARES Act, enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic, created the Pandemic Unemployment Assistance (PUA) program, which expanded states’ ability to provide UI for workers impacted by the COVID-19 pandemic, including workers who otherwise wouldn’t be eligible for UI benefits.  The indictment alleges that beginning in December 2020 and continuing through about September 2021, Dales submitted applications for UI benefits that contained false statements, misrepresentations, and omissions related to his employment, his eligibility to received UI benefits, and his purported businesses, including their existence, operation, and profits.  Dales allegedly submitted a fictitious tax form in support of his applications. 

More information on the allegations against Dales may be found here.

If convicted, Dales faces a maximum sentence of 10 years in federal prison for being a felon in possession of a firearm and a maximum of 20 years in federal prison for wire fraud.  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.  Dales is expected to have an initial appearance in U.S. District Court in Baltimore, but no date has been set.

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

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

United States Attorney Erek L. Barron commended the FBI and DOL-OIG for their work in the investigation.  United States Attorney Barron and Assistant U.S. Attorney Paul A. Riley 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.

# # #

Baltimore, Maryland – The State of Maryland Governor’s Office on Service and Volunteerism (“GOSV”), a division within the Governor’s Office on Community Initiatives (“GOCI”), has agreed to pay the United States $639,916 and enter into a compliance agreement to resolve a civil False Claims Act investigation relating to the operation of its AmeriCorps program. 

The settlement agreement was announced today by United States Attorney for the District of Maryland Erek L. Barron and AmeriCorps’ Inspector General Deborah Jeffrey.

“This settlement demonstrates our firm commitment to protect taxpayer money and to guard the integrity of federal grant funds,” said United States Attorney Erek L. Barron.  “State agencies, such as GOSV and GOCI, are required to properly account for their use of federal grant funds and when they fail to do so they will be held accountable,” said U.S. Attorney Barron.

“AmeriCorps depends on state service commissions to be partners in stewardship of national service funds.  The Maryland Governor’s Office on Service and Volunteerism failed in that trust by overstating its expenses and other irregularities that deprived at-risk communities of benefits intended for them,” said Deborah Jeffrey, AmeriCorps’ Inspector General.  “We thank the U.S. Attorney’s Office for the District of Maryland for their work in protecting the integrity of national service.”

AmeriCorps’ mission is to engage millions in service and national volunteer efforts. State Commissions, such as the State of Maryland Governor’s Office on Service and Volunteerism (“GOSV”), administer AmeriCorps programs which includes oversight and administration of AmeriCorps’ grant funds to subgrantees.  GOSV, which is part of GOCI, supports more than 800 AmeriCorps members each year in the State of Maryland through its grant-making program.  In 2016 AmeriCorps awarded GOSV a grant “[t]o promote and recognize volunteer activities throughout the state with events such as: Governor’s Service Awards, Governor’s Volunteer Appreciation Day at the Maryland State Fair, and Honor Rows to recognize youth groups who are active in their community the chance to attend a Baltimore Ravens game free of charge.”  Pursuant to the terms of the AmeriCorps’ grant, GOSV was required to maintain a financial management system that provided accurate, current, and complete disclosure of the financial results of each Federal award and retain records that identify adequately the source and application of funds.  GOCI provides accounting services to GOSV and other coordinating offices and thus was involved in the administration of the AmeriCorps grant awards.

The United States contends that GOSV and GOCI engaged in widespread violations of the AmeriCorps grant requirements, including distributing Orioles and Maryland State Fair tickets that were intended to be given to volunteers to individuals who were not eligible under the grant, including GOSV employees themselves, charging salaries of GOSV and GOCI employees, including the Director of GOSV, to the AmeriCorps grant without timesheets or time records to reflect the fact these individuals worked on the AmeriCorps grant, and overcharging AmeriCorps on certain Federal Financial Reports (“FFR”) that were submitted to AmeriCorps to demonstrate how GOSV expended the grant funds.  Additionally, GOSV and GOCI entered into an expansive, three year Compliance Agreement with AmeriCorps that will govern and monitor the AmeriCorps GOSV awards to ensure compliance with AmeriCorps grant procedures.

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

U.S. Attorney Erek L. Barron commended the investigation which was conducted by the AmeriCorps Office of Inspector General.  The case was handled by Assistant United States Attorney Thomas Corcoran.

# # #

Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Norman Rosen, age 84, of Towson, Maryland, to four months of home detention as part of 18 months of probation, followed by three years of supervised release, for conspiracy to distribute and dispense oxycodone in connection with his operation of Rosen-Hoffberg Rehabilitation and Pain Management Associates, P.A., where he was Medical Director and part owner.    

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; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Washington Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS-OIG); and Acting Chief Dennis J. Delp of the Baltimore County Police Department.

According to his guilty plea, Norman Rosen, is a doctor and was licensed to practice medicine in the State of Maryland.  He served as the Medical Director and part-owner of Rosen-Hoffberg Rehabilitation and Pain Management (the “Practice”).  Rosen primarily worked at the Practice’s Towson, Maryland locations.  Rosen’s partner in the business and the Practice’s Associate Medical Director was Howard Hoffberg. 

According to Rosen’s guilty plea, patients at the Practice were often prescribed high doses of oxycodone, and other opioid medications.  Some patients were issued prescriptions for opioids after routinely providing aberrant urine toxicology screens, including positive results for cocaine and heroin; positive results for controlled substances that were not prescribed by the Practice; and/or negative results for the controlled substances prescribed by the Practice.  Rosen knew that the Practice received complaints about the behavior of patients, including reports of suspected drug transactions in the parking lots near the Practice.  At times, patients were observed “nodding out” in the waiting area of the Practice.  Some patients tried to bring in urine that was not theirs in order to pass urine toxicology screens.  Some patients of the Practice overdosed and some of these patients required hospitalization and some died.  Several major pharmacies refused to fill any prescriptions issued by the Practice because of the high doses being prescribed.  Both Rosen and Hoffberg were aware of the conditions at the Practice and yet continued to prescribe medications to these patients.

As detailed in his plea agreement, as the Medical Director, Dr. Rosen established the rules for the Practice.  One of his rules was that the customer, i.e. the patient, is always right.  Sometimes, when other providers at the Practice discharged certain patients, Rosen continued to treat the patients at the Towson location.  At times, if a patient failed a urine toxicology screen because of illicit substances in their system such as heroin or cocaine, Rosen declined to discharge the patient and instead required the patient to return to the Practice more frequently for follow-up, sometimes as much as three times a week.

Rosen admitted that he issued prescriptions to some patients outside the bounds of the usual medical practice and not for a legitimate medical purpose.  For example, Rosen prescribed large doses of oxycodone and clonazepam to a patient who had eight toxicology screens that were positive for cocaine and whose children had been taken from her because of her drug problems.  Similarly, Rosen ignored the red flags and prescribed oxycodone and methadone to a patient who admitted to illicit drug use; had previously been criminally charged for prescription fraud and drug trafficking; had overdosed; had urine toxicology screens that were positive for heroin, cocaine, and marijuana; and had been accused of selling her pills.

In related cases, Rosen’s partner, Howard Hoffberg, age 66, of Reisterstown, Maryland, previously pleaded guilty to conspiracy to violate the anti-kickback statutes, in connection with a scheme to accept payments from a pharmaceutical company in exchange for prescribing a fentanyl-based drug.  He was sentenced to eight months in federal prison.  Also, a physician’s assistant at the Practice, William Soyke, age 69, of Hanover, Pennsylvania, previously pleaded guilty to conspiracy to distribute and dispense oxycodone, fentanyl, methadone, and alprazolam and was sentenced to 37 months in federal prison.

United States Attorney Erek L. Barron commended the FBI, the DEA, HHS-OIG and the Baltimore County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Jason D. Medinger, 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 and click on the “Save A Life” link.

# # #

Baltimore, Maryland – A federal criminal complaint has been filed charging Ryan Dales, age 34, of Baltimore, Maryland, with wire fraud, relating to the submission of fraudulent applications for unemployment insurance (UI) benefits, a Paycheck Protection Program loan, and an Economic Injury Disaster Loan (EIDL) 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 complaint was filed January 13, 2023, and unsealed today. 

A search warrant executed at Dales’ residence following his arrest recovered two firearms, including one privately made firearm, known as a “ghost gun,” suspected fentanyl and suspected drug manufacturing equipment (including a press, multiple scales, multiple sifters, capsules, baggies, and other packaging materials) five cell phones, and materials used to make fraudulent identification documents and access devices. The investigation is continuing.

The defendant is expected to have an initial appearance in U.S. District Court in Baltimore later this afternoon.

The criminal complaint 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; and Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor, Office of Inspector General.

Financial assistance offered through the CARES Act included 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.  In addition, the CARES Act created the Pandemic Unemployment Assistance (PUA) program, which expanded states’ ability to provide UI for workers impacted by the COVID-19 pandemic, including workers who otherwise wouldn’t be eligible for UI benefits.

According to the affidavit filed in support of the criminal complaint, Dales has a 2017 federal conviction for bank fraud conspiracy and aggravated identity theft, for which he was sentenced to 62 months in federal prison.  On December 9, 2020, Dales was transferred from prison to a halfway house in Baltimore, to complete his sentence.  Dales was released from custody on June 4, 2021.

The affidavit alleges that on December 15, 2020, soon after Dales arrived at the halfway house, an application for UI benefits was submitted on his behalf from an IP address that resolved to the halfway house.  The application stated that Dales was self-employed as a barber, and that he stopped being able to provide services on April 5, 2020, when Dales was actually in federal prison.  The application was denied because Dales had not earned sufficient wages in the previous year to be eligible for UI benefits. 

As detailed in the affidavit, on July 31, 2021, Dales re-opened his UI claim, seeking benefits under the PUA program.  Dales allegedly submitted fraudulent IRS documents to support his PUA claim.  The forms indicated that Dales was the sole member of “KNW Group,” and indicated a gross profit for the company in 2019 of $144,112.35, with total expenses of $45,031 and a net profit of $99,081.35.  As a result of the documentation, Dales was awarded PUA benefits with an effective date of December 2020.  Between August 2021 and September 2021, Dales was paid approximately $25,570 on the claim. Subsequent investigation found that the IRS had no record of any such forms being filed by Dales for the 2019 and 2020 tax years, during which time Dales was incarcerated.

Further, the affidavit alleges that on December 29, 2020, while he was in the halfway house, Dales filed a fraudulent EIDL application for business “Ryan Dales,” d/b/a “Dales Drop, Inc.”  According to information contained in the application, Dales Drop is an “agriculture” business established on March 15, 2018 (when Dales was federally incarcerated), with three employees and 2019 gross revenue of approximately $10,000, and $6,000 in costs of goods sold.  On the application, Dales allegedly answered “No” to the question “Within the last five years, for any felony, have you ever been convicted, plead guilty, plead nolo contendere, been placed on pretrial diversion, or been placed on any form or parole or probation (including probation before judgment)?  Dales’ 2017 fraud conviction made him ineligible for EIDL funding.  SBA records show that the EIDL application was ultimately denied due to “unsatisfactory credit history.” 

According to the affidavit, in March 2021, again, while Dales was still in the halfway house, a PPP loan application was submitted online from owner “Ryan Dales,” which asserted over $8,000 in average monthly payroll for the sole proprietorship, and sought more than $20,000 in funds for “payroll, rent/mortgage interest, utilities, and covered operations, expenditures, and covered supplier costs.”  The application listed a business start date of “08/2018”—a time when Dales would have been incarcerated.  The application included a purported 2019 IRS Form Schedule C, listing Dales’ “principal business” as “home improvement,” and listed a gross profit of $113,219, total expenses of $10,117, and a net income of $103,102.  Dales allegedly also responded “yes” to the question as to whether he did “materially participate in the operation of this business during 2019.”  In fact, Dales was incarcerated during all of 2019.

If convicted, Dales faces a maximum sentence of 20 years in federal prison for wire fraud.  Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. 

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

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

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

United States Attorney Erek L. Barron commended the FBI and DOL-OIG for their work in the investigation.  United States Attorney Barron and Assistant U.S. Attorney Paul A. Riley 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.

# # #

Baltimore, Maryland – A federal jury yesterday convicted former Correctional Officer Andre Davis, a/k/a “2 Chainz,” age 37, of Baltimore, for a racketeering conspiracy at the Chesapeake Detention Facility (CDF), in Baltimore, Maryland, after a seven-day trial.  Two other correctional officers (COs), four detainees, and two outside “facilitators” previously pleaded guilty to their roles in the conspiracy, which involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison.  

The guilty verdict 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 Secretary Carolyn J. Scruggs of the Maryland Department of Public Safety and Correctional Services.

According to court documents and the evidence presented at trial, CDF is run by the Maryland Department of Public Safety and Correctional Services (DPSCS) pursuant to a contract with the United States Marshals Service (USMS) and is primarily used for the housing of federal pretrial detainees.  CDF is a maximum-security prison that houses approximately 500 male and female detainees.  There are six housing areas, or “pods” in CDF.

The evidence showed that from at least 2016, Davis, along with other employees, detainees and associates of CDF, participated in a conspiracy to smuggle contraband into CDF, including narcotics, cell phones, and tobacco.  According to the evidence at trial, Davis abused his position of trust as sworn officer of DPSCS by engaging in illegal activities to enrich himself. 

According to the trial testimony, Davis smuggled contraband into CDF for multiple detainees, including co-defendants Donte Thomas, Andre Webb, and Bernard Bey.  At the direction of the detainees, Davis met with outside facilitators to receive contraband and bribe payments.  The evidence showed that Davis smuggled Suboxone, tobacco, and cellular telephones and communication devices into CDF, in exchange for bribes.

As detailed during the trial, the defendant detainees and facilitators paid Davis and his co-defendant COs for smuggled contraband using cash and electronic payment platforms, including Cash App. 

Davis faces a maximum sentence of 20 years in prison for the racketeering conspiracy.  U.S. District Judge George L. Russell, III, has scheduled sentencing for April 3, 2023, at 9:30 a.m.

United States Attorney Erek L. Barron commended the FBI and DPSCS for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Peter J. Martinez and Robert I. Goldaris, 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 – U.S. District Judge Paula Xinis sentenced Travon Demetrius Hardie, a/k/a “Juug,” age 25, of Washington, D.C., to 54 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft, in connection with a scheme to use the stolen personal information of identity theft victims to obtain financing to purchase luxury vehicles.  Judge Xinis also ordered Hardie to pay restitution of $56,920.77 and entered a forfeiture money judgment in the amount of $697,041.13.  The sentence was imposed on January 17, 2023.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Ross Luciano of the United States Secret Service - Baltimore Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; and Chief Russell E. Hamill III of the Laurel Police Department.

According to his plea agreement, from November 2020 through February 2022, Hardie and co-defendants John Paul Thompson, Jr. and Nickolas Alexander Mathis, obtained the stolen personal identifying information (“PII”) of identity theft victims, manufactured fake identification documents with the stolen PII, and used those fake identification documents to attempt to obtain financing for the purchase of at least 31 luxury vehicles from dealerships in Maryland, Delaware, New Jersey, and Virginia.  Hardie admitted that he manufactured some of the fraudulent identification documents which were used to perpetuate the ongoing fraud scheme.

The attempted loss as a result of the scheme was at least $1,808,708.47, and the defendants used, without permission, the names and personal identifying information of at least 25 victims.  Hardie successfully obtained at least 11 automobiles, worth at least $697.041.13, as a result of the scheme.  In addition to paying restitution, Hardie must also forfeit: a rifle with no serial number; two high capacity drum magazines for the rifle; three handguns; eight magazines; more than 300 rounds of ammunition; and other items used to create the fraudulent identity documents, all of which were recovered during searches of locations related the fraud scheme.

Co-defendants Nickolas Alexander Mathis, age 38, of Laurel, Maryland, and John Paul Thompson, Jr., age 38, of Lanham, Maryland, have both pleaded guilty to their roles in the scheme.  Each faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and for wire fraud; and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft.  Judge Xinis has scheduled sentencing for Thompson and Mathis for February 1, 2023 and February 24, 2023, respectively. 

United States Attorney Erek L. Barron commended the U.S. Secret Service, the HSI, the U.S. Postal Inspection Service, and the Laurel Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Leah Grossi and Geonard Butler, 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 Julie R. Rubin today sentenced D’Andre Preston, age 26, of Baltimore, to 25 years in federal prison, followed by five years of supervised release, for participating in a violent racketeering conspiracy, specifically, the NFL Criminal Enterprise, including committing a murder.  The term NFL stands for Normandy, Franklin, and Loudon, which are three adjacent streets that run through the Edmondson Village.  Members of NFL have social and family ties to the Edmondson Village neighborhood in southwest Baltimore. 

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; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Washington Division; Chief Marcus Jones of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.

According to his guilty plea, from at least 2016 through March 2020, D’Andre Preston was an associate of the NFL Criminal Enterprise, which engaged in a pattern of criminal racketeering activity including murder, narcotics trafficking and smuggling, illegal firearms possession, bribery, witness intimidation, and witness retaliation.  Preston admitted that he participated in illegal activities with other NFL Enterprise members, including committing a murder on the enterprise’s behalf.  As detailed in Preston’s plea agreement, in October 2018, a co-conspirator solicited co-defendant Darran Malik Butler to murder Leonard Shelley so that members of the NFL enterprise could collect a bounty that had been placed on Shelley.  On October 31, 2018, Preston and co-defendant Darran Butler followed Shelley into a convenience store and shot Shelley numerous times, killing him.  Following the murder, Darran Butler posted a picture on Instagram of himself holding the bounty proceeds for Shelley’s murder.  

On November 9, 2022, co-defendant Darran Malik Butler, age 23, of Baltimore, was also sentenced to 25 years in federal prison.  More than 30 defendants in this and related cases have pleaded guilty to their roles in the racketeering conspiracy.

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.

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 FBI, the DEA, the Montgomery County Department of Police and the Baltimore Police Department for their work in the investigation.  Mr. Barron commended the U.S. Postal Inspection Service; the City of Rockville Police Department; the Baltimore County and Howard County Police Departments; the Frederick County Sheriff’s Office; the Maryland State Police; the West Virginia State Police; the Virginia State Police; the Warren County (VA) Sheriff’s Department; the Winchester (VA) and Front Royal (VA) Police Departments; and the Frederick County and Howard County State’s Attorney’s Offices for their assistance in the investigation and prosecution.  Mr. Barron thanked Assistant U.S. Attorneys John W. Sippel, Jr., James T. Wallner, and Robert I. Goldaris, 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-psn and https://www.justice.gov/usao-md/community-outreach.   

# # #

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Medard Ulysse, age 38, most recently of Miami, Florida, today to nine years in federal prison, followed by three years of supervised release, for wire fraud and conspiracy to commit mail fraud in relation to multiple fraud schemes, including an elder fraud “grandparent” scam and a COVID-19 CARES Act fraud related to unemployment benefits.  Judge Bennett also ordered Ulysse to pay restitution totaling $2,485,512.  Of that amount $1,866,745 is for the elder fraud scam and $618,767 is for the unemployment benefits scheme.

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 Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor, Office of Inspector General.

“This is a despicable crime causing fear and emotional turmoil for some of the most vulnerable members of our society,” said Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore field office.  “Ulysse used fraud and deceit to prey upon grandparents’ trust and love.  The FBI is committed to combatting elder fraud and financial exploitation and ensuring our seniors are protected.”

“As a part of multiple fraud schemes, Medard Ulysse conspired with others to use stolen identities to defraud pandemic Unemployment Insurance programs established under the CARES Act to unlawfully obtain over $618,000, which deprived those who were truly in need of assistance during the pandemic,” said Troy W. Springer, Acting Special Agent in Charge, National Capital Region, U.S. Department of Labor, Office of Inspector General. “I am grateful for the strong partnerships with the U.S. Attorney’s Office for the District of Maryland, the FBI, and our state workforce agency partners, as we continue focused efforts to hold accountable those who undermine the integrity of unemployment assistance programs.”

According to his guilty plea, from January 2018 to November 2019, Ulysse and others executed an elder fraud scam, called a “grandparent scam,” in which they persuaded elderly victims to send thousands of dollars in cash by posing as a police officer, lawyer, or other person in law enforcement and convincing victims that their grandchild needed money for bail or legal fees.  If the victims sent money, conspirators asked for more cash claiming that additional funds were needed for legal expenses, fines, or damages.  Conspirators called the elderly victim pretending to be the victim’s grandchild or other troubled relative to convince the victims to send cash.  To conceal the scheme, the conspirators told the victims that a gag order had been placed on the case or that the situation was embarrassing for the grandchild, and that the victim should not share the information with others. 

The victims were directed to send cash to residential addresses, that were either vacant or for sale, so no one would be at those locations at the time of the deliveries.  Ulysse recruited people to assist in retrieving the packages.  Co-conspirators opened the packages, counted the cash inside and sent Ulysse video recordings of the packages being opened and counted, then delivered the fraud proceeds to Ulysse and to other people involved in the scheme.  Ulysse distributed, and directed co-conspirators to distribute, cash payments to other members of the conspiracy for their participation in the scheme. 

As a result of the execution of the elder fraud scheme, Ulysse and his co-conspirators convinced at least 83 different victims to send a total of at least $2,420,280.  Ulysse’s criminal actions resulted in substantial financial hardship to at least five victims.        

From April 2020 to November 2020, Ulysse conducted an COVID-19 CARES Act unemployment benefit scheme to fraudulently obtain unemployment funds, including Federal Pandemic Unemployment Compensation (FPUC) and Pandemic Unemployment Assistance (PUA) established under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.  As part of the scheme, Ulysse and his conspirators used the identities of numerous victims to submit fraudulent unemployment claims to multiple state workforce agencies, including the Maryland Department of Labor and the California Employment Development Department.  The fraudulent applications listed individual victims’ names, social security numbers, and dates of birth.  The Maryland Department of Labor and other state workforce agencies disbursed benefits through debit cards issued in the names of the applicants and mailed to addresses provided in the applications, which were locations accessible to Ulysse and other members of the conspiracy.  Once conspiracy members obtained the funds on state issued debit cards, they used the funds for their personal benefit. 

In total, between April 2020 and November 2020, Ulysse and his co-conspirators submitted at least 143 fraudulent applications in the names of identity theft victims and obtained approximately $618,767 in fraudulent funds. 

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.

United States Attorney Erek L. Barron commended the FBI and the DOL-OIG for their work in the investigation, and thanked the Lowndes County Sheriff’s Department for its assistance.  Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Christine Goo, 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/elder-justice-initiative.

# # #

Baltimore, Maryland – On January 17, 2023, U.S. District Judge Ellen L. Hollander sentenced Xavier Lee, a/k/a “X,” age 44, of Elkton, Maryland, to 150 months in federal prison, followed by 25 years of supervised release, for sex trafficking of a minor.  Judge Hollander also ordered Lee to pay restitution of $15,600 to a minor victim.  As a result of his conviction, upon his release from prison, Lee 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 Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Lt. Colonel Dalaine Brady, Acting Superintendent of the Maryland State Police; Chief Carolyn Rogers of the Elkton Police Department; Anne Arundel County Police Chief Amal E. Awad; and Cecil County State’s Attorney James Dellmyer.

According to his plea agreement, for the past decade Lee has operated an illicit prostitution business for financial gain, including operating a website, where Lee posted advertisements of women whom he made available for commercial sexual acts with paying customers. That website was seized by the FBI, in conjunction with the United States Attorney’s Office and the Maryland State Police.  For a time, Lee also operated a different website, where he offered a subscription pornographic service to paying customers.

As detailed in the plea agreement, Lee admitted that he had sexual contact with a minor victim, beginning when the victim was 14 years old.  Lee recorded his sexual contact with the minor victim when she was 15 and 16 years old.  Investigators recovered eight separate videos from Lee’s electronic devices, each of which had been recorded by Lee and each of which documented the sexual abuse of the minor victim, depicting the minor victim engaged in sexual acts with Lee or with another adult man.  Lee admitted that he was aware of the minor victim’s true age.

For approximately the five years leading up to his arrest in 2019, Lee’s prostitution business was run almost exclusively out of a hotel located in Elkton, Maryland.  Not only did Lee primarily use the same hotel in Elkton to prostitute women, Lee always used the same room.  Lee ran his prostitution business according to a set pattern and protocol.  Lee posted advertisements of women whom he made available for commercial sex acts with paying customers.  The “profiles” of the females whom Lee was prostituting included photographs, descriptions, and fictitious names.  The website also listed the cost of prostitution appointments, described services that were available, and allowed customers to post comments. 

Finally, Lee admitted that in 2013, including in or about April 2013, Lee also had another minor victim who was sixteen to seventeen years old, to prostitution dates at Lee’s direction.  These prostitution dates were arranged through Lee’s website.  Lee was aware of the minor victim’s true age during the time because the minor victim advised Lee of her true age. 

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

MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking, while identifying and prosecuting offenders.  Members include federal, state and local law enforcement, as well as victim service providers and local community members.  For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.

United States Attorney Erek L. Barron commended the FBI, the Maryland State Police, the Elkton Police Department, the Anne Arundel County Police Department, and the Cecil County State’s Attorney’s Office for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake, who prosecuted the case.

# # #

Baltimore, Maryland – On January 12, 2023, Malachi Carter-Bey, age 38, of Baltimore, Maryland, pleaded guilty to federal charges of illegally possessing a loaded firearm within 1,000 feet of a school, specifically Curtis Bay Elementary-Middle School.  

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 (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.

According to his guilty plea, in the early morning hours of December 26, 2020, a Baltimore Police officer found what he thought was an abandoned Acura SUV running at the corner of Elmtree Street and Pennington Avenue in the Curtis Bay neighborhood of Baltimore.  The officer approached the car and saw that Carter-Bey and a passenger were asleep in the car.  Using a flashlight, the officer saw a large black revolver entirely exposed on the driver’s seat between the driver-side door and Carter-Bey.  Once back-up arrived, Carter-Bey and the passenger were removed from the car and the revolver, a .357-caliber revolver loaded with six rounds of ammunition, was also recovered.

Carter-Bey admitted that he knew that he possessed the firearm within 1,000 feet of the grounds of a school zone, specifically, Curtis Bay Elementary-Middle School.

U.S. District Judge Richard D. Bennett has scheduled sentencing for February 22, 2023 at 2:30 p.m. 

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

United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Special Assistant U.S. Attorney Logan Hayes and Assistant U.S. Attorney Brandon Moore, 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.

# # #

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Turrell Davis, age 25, of Baltimore, Maryland for possessing a firearm within 1,000 feet of a school.  Davis has served more than 14 months and as part of his sentence Judge Hollander ordered that Davis be on federal supervised release for three years and participate in the Roca, Inc. - Baltimore’s community violence intervention and response services.

The sentence 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 (ATF); and Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.

According to his guilty plea, on November 9, 2020, Davis was arrested after police, using CCTV to monitor suspected drug activity in the 300 block of South Catherine Street, one block north of Frederick Elementary School, saw Davis, who appeared to be armed.  Officers in a marked car were sent to the location to investigate.  When Davis noticed the officers, he ran.  As he ran, Davis threw a .45-caliber handgun, loaded with 13 rounds of ammunition.  Body-worn camera, CCTV, and Foxtrot helicopter footage captured the firearm sliding across the street, stopping near the curb.  Davis also tossed a clear bag, later found to contain fentanyl, under a parked car and surrendered to police.  A search of Davis recovered additional fentanyl, a digital scale, and $623 in cash.  The quantity and packaging of the drugs indicated that Davis intended to distribute the fentanyl.

Davis admitted that he knowingly possessed the firearm and that he had reason to believe he was within 1,000 feet of a school zone, specifically, Frederick Elementary School. 

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

United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Special Assistant U.S. Attorney Logan Hayes and Assistant U.S. Attorney Brandon Moore, 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.

# # #

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced James Albert Borum, age 20, of Washington, D.C., to 11 years in federal prison, followed by five years of supervised release for carjacking and for brandishing a firearm during and in relation to a crime of violence, in connection with a series of carjackings he committed in Montgomery and Prince George’s Counties.  

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; Chief Marcus Jones of the Montgomery County Police Department; Chief Malik Aziz of the Prince George’s County Police Department; Chief Jarod Towers of the City of Hyattsville Police Department; Chief Robert J. Contee III of the Metropolitan Police Department; United States Attorney for the District of Columbia Matthew M. Graves; Montgomery County State’s Attorney John McCarthy; and Prince George’s County State’s Attorney Aisha Braveboy.

According to his guilty plea, in June 2021, Borum and his accomplices committed a series of carjackings in Montgomery and Prince George’s Counties.  At the time, Borum was on pre-trial supervision related to charges in Washington, D.C. and was wearing an ankle monitor.  According to the plea agreement, Borum and an accomplice participated in four carjackings and an attempted carjacking.  Borum admitted that a firearm was brandished in three of the carjackings.

As detailed in the plea agreement, on June 4, 2021, Victim 1 was beaten and carjacked by Borum and an accomplice, who also stole the victim’s cell phone.  Victim 1’s wallet, which contained several items, including a bank card, was inside the vehicle at the time of the carjacking.  Law enforcement recovered Victim 1’s bank card and a social security card in the name of Victim 1’s spouse from Borum’s bedroom during a search on July 1, 2021. 

On June 10, 2021, Borum and his accomplice committed another carjacking in Silver Spring, Maryland.  After Victim 2 had parked his car, he began walking into a nearby apartment courtyard.  Borum and his accomplice followed Victim 2 and approached Victim 2 in the courtyard.  Borum and the accomplice pointed a handgun at Victim 2’s forehead and stated, “I’ll kill you.  Give me the keys.”  Victim 2 gave Borum and the accomplice his keys and the carjackers drove away in Victim 2’s car.  A global positioning device in Victim 2’s vehicle placed it near Borum’s home most of the time when the vehicle was not in use following the carjacking.

According to the plea agreement, on June 18, 2021, Borum and an accomplice attempted to carjack Victim 3 in a parking garage in the 8700 block of Cameron Street in Silver Spring.  Borum and his accomplice demanded Victim 3’s keys, but she refused to give them up.  Borum and the accomplice grabbed for Victim 3’s purse and a struggle ensued.  Neither Borum nor his accomplice were able to obtain Victim 3’s keys, and both men fled as another vehicle pulled into the parking garage.

Surveillance footage obtained from the Rhode Island Avenue, Silver Spring, and Wheaton Metro stations both before and after the attempted carjacking shows Borum and his accomplice wearing clothing that matched the clothing worn by the carjackers.  The footage also shows Borum wearing an ankle monitor and a distinctive white sweatshirt.  The sweatshirt was later recovered from Borum’s residence.

As detailed in the plea agreement, on June 18, 2021, Borum and his accomplice carjacked Victim 4, who was sitting in his car in the parking lot in the 3500 block of East West Highway in Hyattsville, Maryland.  Victim 4’s doors were unlocked and the windows were down.  Borum and the accomplice opened the driver’s side door, pointed a gun at Victim 4’s head, and told him to get out of the car.  Borum and the accomplice pulled Victim 4 out of the vehicle, pushed him to the ground, then got into Victim 4’s vehicle and drove away.  Law enforcement tracked and recovered the vehicle later that evening in the 1200 block of Douglas Street, N.E. in Washington, D.C.  The key to Victim 4’s car was found in Borum’s residence.

Finally, on June 23, 2021, Borum and an accomplice carjacked Victim 5 as Victim 5 was entering his car in a parking garage in the 8700 block of Colesville Road in Silver Spring, Maryland.  Borum and his accomplice approached Victim 5 from behind, held a black handgun at the left side of Victim 5’s head, and repeated, “Give me the keys!”  Victim 5 handed the carjackers his keys and wallet.  Borum and the accomplice then fled in Victim 5’s vehicle.  Victim 5’s vehicle was located by law enforcement five days later, parked on the same block as Borum’s residence.  Borum’s fingerprints were identified on the car.

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.

United States Attorney Erek L. Barron commended the FBI, the Montgomery County Police Department, the Prince George’s County Police Department, the City of Hyattsville Police Department, the Metropolitan Police Department, the U.S. Attorney’s Office for the District of Columbia, the Montgomery County State’s Attorney’s Office, and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Barron thanked Special Assistant United States Attorney Jared C. Engelking and Assistant United States Attorney Jessica Collins, 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.

# # #

Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Brayan Contreras-Avalos, a/k/a “Anonimo,” “Humilde,” and “Malia,” age 28, of Langley Park, Maryland, late yesterday to the statutory maximum sentence of life in federal prison on charges related to his participation in a racketeering enterprise known as La Mara Salvatrucha, or “MS-13” and a concurrent five years in prison for a drug distribution conspiracy.  Contreras-Avalos was convicted after a three-week trial, along with co-defendants Luis Flores-Reyes, a/k/a “Maloso,” “Lobo,”’ and “Viejo Lovvon,” age 42, of Arlington, Virginia and Jairo Jacome, a/k/a “Abuelo”, age 40, of Langley Park, Maryland.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Special Agent in Charge Frank A. Tarentino III of the Drug Enforcement Administration – New York 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 Chief Marcus Jones of the Montgomery County Police Department.

MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland.  Contreras-Avalos, along with co-defendant Luis Flores-Reyes, was a leader within the Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas, and El Salvador.  Co-defendant Jairo Jacome was the highest-ranking member of the local Langley Park Salvatrucha, or “LPS” clique. 

At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang and to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence.  MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control.”  One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible. 

MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members.  Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase 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 during the trial, Contreras-Avalos and his co-defendants participated in at least three murders, including four minor victims, during the period of the conspiracy.  Most of the victims were purported gang rivals except for one minor victim.  For example, in June 2016, members of MS-13, including Contreras-Avalos, stabbed to death two homeless persons who gang members believed to be members of the 18th Street gang, in Hyattsville, Maryland.  The investigation revealed no evidence that the victims were in fact members of any gang.  According to the evidence presented at trial, Contreras-Avalos sought on another occasion to kill a homeless man until permission was denied, and later approved an unrelated murder where the intended target survived the attack but an associate did not.

According to court documents and evidence presented at trial, the defendants ran an extortion scheme in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.”  Contreras-Avalos and Flores-Reyes also trafficked illegal drugs, including marijuana and cocaine.  A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the illicit activities of the gang, using structured transactions and intermediaries to avoid law enforcement scrutiny.

Co-defendants Luis Flores-Reyes, a/k/a “Maloso,” “Lobo,”’ and “Viejo Lovvon,” age 42, of Arlington, Virginia and Jairo Jacome, a/k/a “Abuelo”, age 40, of Langley Park, Maryland, were convicted for the racketeering conspiracy and for murder in aid of racketeering.  Jacome and Flores-Reyes were also convicted of extortion conspiracy.  Flores-Reyes and Jacome face a mandatory sentence of life in prison at their sentencing.  Judge Xinis has scheduled sentencing for Flores-Reyes on February 22, 2023 and for Jacome on February 23, 2023.

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 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.    

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.

United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI, DEA, HSI, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, Nassau County District Attorney’s Office, the Bedford County Commonwealth’s Attorney’s Office and the Bedford County Sheriff’s Office for their work in the investigation.  Mr. Barron and Mr. Polite thanked Assistant U.S. Attorneys Timothy F. Hagan, Chris M. Sarma, William Moomau, Assistant Director Catherine Dick of the Department of Justice Consumer Protection Division and Trial Attorney Alexander Gottfried of the Justice Department’s Criminal Division, who are prosecuting this case.

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

# # #

Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Lawrence Russoe, age 37, of Baltimore, Maryland, to the statutory maximum sentence of five years in federal prison, followed by three years of supervised release, for possession of a firearm within 1,000 feet of a school zone.  

The sentence 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 (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department (BPD).

“Schools should be sacred and free from fear.  Felon or no felon, if you’re caught with a gun around a school, we’re seeking to prosecute you federally,” said United States Attorney Erek L. Barron.

According to Russoe’s guilty plea, on June 7, 2021, BPD Detectives received notice of a stolen gray Hyundai vehicle at a fast-food drive-thru in the 2800 block of Greenmount Avenue in Baltimore.  Detectives attempted to stop the vehicle, but the driver, later identified as Russoe, refused to stop.  A BPD helicopter maintained surveillance of the vehicle as it fled at a high speed, driving recklessly.

As detailed in the plea, Russoe briefly stopped the car to let out a passenger, then continued driving until entering the 3500 block of Parklawn Avenue, where he abandoned the car while it was still in motion.  Russoe had a satchel draped across his body as he got out of the car and ran away, with BPD officers in pursuit.  Russoe was arrested a short time later.  Detectives searched the gray Hyundi and located an extended magazine, loaded with seven rounds of 9mm ammunition, on the rear driver’s side floorboard.  In the satchel that Russoe was carrying, law enforcement recovered a privately made firearm (PMF), commonly known as a “ghost gun,” specifically, a Polymer 80, 9mm semi-automatic pistol without a serial number, a scale, seven baggies of marijuana, one clear gelcap containing a mixture of cocaine, heroin, and fentanyl, and a cell phone. 

Russoe admitted that he had reasonable cause to believe he was within 1,000 feet of a school while he possessed the firearm, because he drove directly past the Belair-Edison Middle School and the firearm and ammunition were both found approximately 500 feet from the school. 

As detailed in his plea agreement, Russo is currently serving a sentence of seven years for a conviction in Baltimore City Circuit Court for first degree assault and possession of a firearm with a felony conviction.  Judge Bennett ordered that Russoe’s federal sentence will be served concurrent to his state sentence and that Russoe must forfeit the PMF, extended magazine, and seven rounds of 9mm ammunition.

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

United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Special Assistant U.S. Attorney Jacob Gordin, who prosecuted the case.

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

# # #

Baltimore, Maryland – U.S. District Judge Julie R. Rubin today sentenced Daquante Thomas, a/k/a “Glock,” age 20, of Baltimore, Maryland, to 35 years in federal prison, followed by five years of supervised release, for discharge of a firearm during a crime of violence resulting in death, in connection with a murder-for-hire conspiracy. 

The sentence 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 (ATF) Baltimore Field Division; Chief Gregory Der of the Howard County Police Department; and Howard County State’s Attorney Rich Gibson.

“This case is a tragedy for the victim and the affected families.  I am hopeful that our reenergized law enforcement and community partnerships will help break this cycle of violence,” said United States Attorney Erek L. Barron.

“Today’s sentencing is another example of the successful partnership that exists between our office and our law enforcement partners on the local, state, and federal level,” said Howard County State’s Attorney Rich Gibson.  “We are committed to working in a collaborative manner to solve cases, make arrests, and hold criminals, such as Daquante Thomas, accountable for their actions.”

“The prioritizing of money over humanity in this case shows just how little this defendant values the lives of others,” said ATF Baltimore Special Agent in Charge Toni M. Crosby.  “We cannot allow individuals like this to walk freely in our communities, willing to murder citizens for the right price.  ATF is proud to work alongside our local, state, and federal partners every day to identify and investigate the people responsible for committing acts of violence in Maryland.”

According to the plea agreement, on October 4, 2020, Howard County Police responded to a shooting in the area of Basket Ring Road in Columbia.  Victim Juan Ross was found shot and killed at the scene, sustaining multiple gunshot wounds to the head.  Investigation identified Daquante Thomas as one of the shooters.  As detailed in the guilty plea, co-conspirator 1 accused the victim, Juan Ross, age 23, of Columbia, Maryland, of cooperating with law enforcement, including on a live social media conversation on September 9, 2020, and in text message.  Thomas admitted that co-conspirator 1 solicited him and another conspirator to kill Juan Ross and that he accepted payment to commit the murder. 

According to the plea agreement, on October 3, 2020, Thomas and co-conspirator 2 texted each other about the address where they could find the victim.  The next day Thomas, co-conspirator 2 and co-conspirator 3 drove to the area of Basket Ring Road in Columbia to locate Juan Ross, then drove to a drug store nearby so that co-conspirator 2 could purchase an Uber card and leave the area.  A short time later, Thomas and co-conspirator 3 returned to the area of Basket Ring Road, shot and killed Juan Ross, then drove away together.

Two co-defendants, Jourdain Larose, a/k/a “JBlacc,” age 27, of Ellicott City, Maryland, and Tyrik Braxton, a/k/a “Son-Son,” age 26, of Baltimore, Maryland, are charged with a federal murder-for-hire conspiracy, use of interstate commerce facilities in the commission of a murder-for hire, and use and discharge of a firearm during a crime of violence resulting in death.  They remain detained while they await their trial.  An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. 

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, the Howard County Police Department, and the Howard County State’s Attorney’s Office for their work in the investigation and prosecution and thanked the FBI, the Maryland State Police, the Anne Arundel County Police Department, the Baltimore County Police Department, and the Baltimore Police Department for their assistance.  Mr. Barron thanked Assistant U.S. Attorney Kim Y. Oldham, 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-psnexile and https://www.justice.gov/usao-md/community-outreach.

# # #

Greenbelt, Maryland – Behrouz Mokhtari, age 72, of McLean, Virginia and Tehran, Iran, a native of Iran and a naturalized citizen of the United States, pleaded guilty today to two conspiracies to violate sanctions imposed by the United States on Iran regarding the exportation, re-exportation, sale, or supply directly or indirectly, any goods, technology, or services to Iran.    

The guilty plea 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 guilty plea, from at least March 2018 until at least September 2020, Mokhtari conspired with his co-defendant and others to evade Iranian sanctions by engaging in business activities on behalf of Iranian entities without first obtaining the required licenses from the Office of Foreign Assets Control (OFAC).

Mokhtari held management positions and/or maintained ownership control of multiple business in Iran and the United Arab Emirates (“UAE”), referred to collectively as “the FSR Network.”  Mokhtari and his co-conspirators used the FSR Network to provide services to Iranian entities and engage in transactions involving Iranian petrochemical products, including refining petrochemical products and transporting them by sea.  Mokhtari and his co-conspirators used bank accounts located in the UAE, including Bitubiz FZE, which was part of the FSR Network and over which Mokhtari exercised partial or complete control, to process these U.S. dollar transactions. 

Mokhtari admitted that Bitubiz operated as a conduit for the FSR Network to conceal the fact that Mokhtari and his co-conspirators were engaging in financial transactions with, and providing services to, Iranian entities.  Bitubiz maintained daily ledgers which recorded the receipt and transfers of funds.  After receiving an incoming wire transfer, Bitubiz would credit most of that amount to Ayegh Isfahan Manufacturing Company (“AIM”).  Mokhtari and others held ownership interests in AIM, which was located in Iran, was engaged in the petrochemical industry, and was part of the FSR Network.

As stated in his guilty plea, from about February 2013 until at least June 2017, Mokhtari and a number of Iranian nationals engaged in a conspiracy to conduct illicit shipments of petrochemical products to and from Iran, in violation of the Iranian sanctions and used the U.S. financial system to facilitate such shipments.  In furtherance of the scheme, Mokhtari created a front company in Panama, East & West Shipping, Inc., to purchase two liquid petroleum gas (LPG) tanker vessels for approximately $38 million.  These vessels were subsequently used to transport Iranian petrochemical products in international commerce on behalf of, and to benefit, Iranian entities associated with the Government of Iran.

After using East & West to purchase the two vessels (LPG Vessel 1 and 2), Mokhtari transferred ownership of the vessels to other entities, in order to conceal the conspirators’ financial and ownership interest in the two vessels.  The conspirators then used another entity, Greenline Shipholding, Inc., to control operations of LPG Vessels 1 and 2.  For example, through email communications from Greenline email accounts, or email accounts containing some variation of the Greenline name, the conspirators directed Company 5, a ship management company, to oversee the leasing and operation of LPG Vessel 1 and 2 to transport Iranian petrochemical products from Iranian ports to other locations and to participate in ship-to-ship transfers of Iranian products while on the high seas.

The conspirators, including Mokhtari, used the United States financial system to engage in transactions related to the hiring of the vessels and other expenses.  In addition, Mokhtari and his co-conspirators frequently communicated by email about the nature and source of the products that the vessels were transporting, as well as the use of false shipping documents and other measures taken to conceal the fact that the vessels were transporting products to and from Iran, in order to evade the Iranian sanctions.

At some point prior to May 2017, ownership of LPG Vessel 1 was transferred to Russell Shipping, Inc., which was owned by Mokhtari.  On May 30, 2017, Mokhtari sold LPG Vessel 1 to be scrapped for more than $3.1 million.  Mokhtari received a total of $2,862,591.12 from that sale.  The purchaser wired funds to accounts at two separate banks held in the name of Mori Construction and Development, LLC (Mori Construction).  Mokhtari was the sole owner of Mori Construction and controlled both bank accounts.  Through a series of inter-account transfers and check payments, by September 2017 all of the proceeds from the sale of LPG Vessel 1 were located in a third account, over which Mokhtari and his daughter had signature authority.  In March 2018, Mokhtari used those proceeds to purchase a home in Campbell, California for $1,512,000.

Mokhtari admitted that he knew that, as a United States citizen, he was prohibited from engaging in business with or providing services to Iranian entities, without first obtaining a license or permission from OFAC to do so.  Neither Mokhtari, nor any of his co-conspirators ever applied for or obtained such a license.  Mokhtari further knew that it was illegal to engage in transactions intended to evade Iranian sanctions, or to engage in transactions related to goods and services of Iranian origin or export.

As part of his guilty plea, Mokhtari must forfeit money, property, and/or assets derived from, obtained as the result of, or used to facilitate the commission of his illegal activities, including the residence he purchased in Campbell, California and a money judgment in the amount of approximately $2,862,598.12.

Mokhtari faces a maximum sentence of five years in federal prison for each of the two conspiracy counts.  U.S. District Judge George J. Hazel has scheduled sentencing for April 3, 2023 at 10:00 a.m.

United States Attorney Erek L. Barron commended FBI for its work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Kathleen O. Gavin, who is prosecuting the case.

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

# # #

Behrouz Mokhtari, 72, of McLean, Virginia, and Tehran, Iran, a naturalized U.S. citizen, pleaded guilty today to two separate conspiracies to violate sanctions imposed by the United States on Iran regarding the exportation, re-exportation, sale, or supply, directly or indirectly, of any goods, technology, or services to Iran.

According to his guilty plea, from at least March 2018 until at least September 2020, Mokhtari conspired with his co-defendant and others to evade Iranian sanctions by engaging in business activities on behalf of Iranian entities without first obtaining the required licenses from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).

Mokhtari held management positions and/or maintained ownership control of multiple business in Iran and the United Arab Emirates (UAE), referred to collectively as “the FSR Network.” Mokhtari and his co-conspirators used the FSR Network to provide services to Iranian entities and engage in transactions involving Iranian petrochemical products, including refining petrochemical products and transporting them by sea. Mokhtari and his co-conspirators used bank accounts located in the UAE, including Bitubiz FZE, which was part of the FSR Network and over which Mokhtari exercised partial or complete control, to process these U.S. dollar transactions.

Mokhtari admitted that Bitubiz operated as a conduit for the FSR Network to conceal the fact that Mokhtari and his co-conspirators were engaging in financial transactions with, and providing services to, Iranian entities. Bitubiz maintained daily ledgers which recorded the receipt and transfers of funds. After receiving an incoming wire transfer, Bitubiz would credit most of that amount to Ayegh Isfahan Manufacturing Company (AIM). Mokhtari and others held ownership interests in AIM, which was located in Iran, engaged in the petrochemical industry, and part of the FSR Network.

As stated in his guilty plea, from about February 2013 until at least June 2017, Mokhtari and several Iranian nationals engaged in a separate conspiracy to support illicit shipments of petrochemical products to and from Iran in violation of the Iranian sanctions. In furtherance of the scheme, Mokhtari created a Panama-based front company, East & West Shipping Inc., to purchase two liquid petroleum gas (LPG) tanker vessels to transport Iranian petrochemical products in international commerce on behalf of, and to benefit, Iranian entities associated with the Government of Iran.

After using East & West to purchase the two vessels (LPG Vessels 1 and 2), Mokhtari transferred ownership of the vessels to other entities to conceal the conspirators’ financial and ownership interest. The conspirators then used another entity, Greenline Shipholding Inc., to control the operations of LPG Vessels 1 and 2. For example, through email communications from Greenline email accounts, or email accounts containing some variation of the Greenline name, the conspirators directed Company 5, a ship management company, to oversee the leasing and operation of LPG Vessels 1 and 2 to transport Iranian petrochemical products from Iranian ports to other locations and to participate in ship-to-ship transfers of Iranian products while on the high seas.

The conspirators, including Mokhtari, used the U.S. financial system to engage in transactions related to the vessels and other expenses. In addition, Mokhtari and his co-conspirators frequently communicated by email about the nature and source of the products that the vessels were transporting, as well as the use of false shipping documents and other measures to conceal the fact that the vessels were transporting products to and from Iran in violation of Iranian sanctions.

At some point prior to May 2017, ownership of LPG Vessel 1 was transferred to Russell Shipping Inc., which was owned by Mokhtari. On May 30, 2017, Mokhtari sold LPG Vessel 1 to be scrapped for more than $3.1 million. Mokhtari received a total of $2,862,591.12 from that sale. The purchaser wired funds to accounts at two separate banks – one held in the name of Mori Construction and Development LLC and the other held in the name of Mori Construction. Mokhtari was the sole owner of Mori Construction and controlled both bank accounts. Through a series of inter-account transfers and check payments, by September 2017, the proceeds from the sale of LPG Vessel 1 were located in a third account, over which Mokhtari and his daughter had signature authority. In March 2018, Mokhtari used those proceeds to purchase a home in Campbell, California, for over $1.5 million.

Mokhtari admitted that he knew that, as a U.S. citizen, he was prohibited from engaging in business with or providing services to Iranian entities without first obtaining a license or permission from OFAC to do so. Neither Mokhtari nor any of his co-conspirators ever applied for or obtained such a license. Mokhtari further knew that it was illegal to engage in transactions intended to evade Iranian sanctions or to engage in transactions related to goods and services of Iranian origin or export.

As part of his guilty plea, Mokhtari must forfeit money, property and assets derived from, obtained as the result of, or used to facilitate the commission of his illegal activities, including the residence he purchased in Campbell, California, and a money judgment in the amount of $2,862,598.12.

Mokhtari faces a maximum sentence of five years in federal prison for each of the two conspiracy counts. U.S. District Judge George J. Hazel scheduled sentencing for April 3.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Erek L. Barron for the District of Maryland, Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division and Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office made the announcement.

The FBI investigated the case.

Assistant U.S. Attorney Kathleen O. Gavin for the District of Maryland prosecuted the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section.

Baltimore, Maryland – A federal criminal complaint has been filed charging Tomeka Glenn, age 46, and Kevin Davis, age 42, both of Windsor Mill, Maryland, for conspiracy to commit wire fraud,  relating to the submission of fraudulent COVID-19 CARES Act Paycheck Protection Program and Economic Injury Disaster Loan applications and their receipt of over $300,000 in fraudulently obtained funds.  The complaint was filed December 16, 2022, and unsealed today upon the arrests of the defendants.

The defendants are expected to have an initial appearance in U.S. District Court in Baltimore beginning at 2:00 p.m. this afternoon.

The charges 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; and Interim Chief Dennis J. Delp of the Baltimore County Police Department.

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, including 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 the affidavit filed in support of the criminal complaint, in September 2020, a Baltimore County Police Department detective investigating fraudulent PPP loans associated with targets of a criminal investigation identified several other individuals, including Glenn, who applied for and received PPP loans and EIDLs, using false and fraudulent information.  As detailed in the affidavit, a review of the PPP and EIDL applications submitted by Glenn for businesses that she owns and/or controls were found to contain false statements and misrepresentations as to the legitimacy of the business; the number of employees; the financial earnings and payroll expenses of the businesses; and the income taxes withheld by the businesses.  The affidavit alleges that how Glenn spent the loan proceeds was inconsistent with payroll and other business expenses allowable under the loan program. 

For example, on June 19, 2020, Glenn allegedly filed an EIDL application for “Kdonsvanity décor.”  An entity call K’Dons Vanity Décor was formed in Maryland on December 17, 2019.  Glenn was listed as the registered agent for the entity with her home address as the address of the company.  The application claimed that the business had gross revenues of $175,000 and had 10 employees.  IRS records indicate that there were no business tax filings for K’Don’s Vanity Décor LLC for tax years 2019 or 2020.  Glenn also responded “no’ to the question as to whether she had been convicted for any felony within the last five years.  In fact, Glenn had been convicted of felonious credit card fraud in Fairfax County, Virginia in 2016 and of access device fraud in York County, Pennsylvania.  Glenn received a $10,000 EIDL advance as a result of the application, but the larger EIDL loan sought in the application was ultimately declined by the SBA due to “unsatisfactory credit history.”

The affidavit alleges that Glenn submitted a similar fraudulent application for a PPP loan on behalf of K’Dons Vanity Décor and on August 8, 2020, received loan proceeds of $70,357.50.  A review of Glenn’s bank accounts reveals that shortly after receiving the PPP loan funds, Glenn made purchases inconsistent with those allowable under the PPP loan program.  For instance, Glenn purchased luxury goods, including multiple pairs of Christian Louboutin brand shoes, and resort travel with Davis.  On July 19, 2021, Glenn submitted an application for loan forgiveness, claiming that $67,390 of the PPP loan had been spent on payroll costs, and the loan was forgiven.

During the course of the investigation, law enforcement discovered multiple other business entities (or purported business entities) associated with Glenn that applied for EIDL or PPP loans, including TD Innovative Consulting, referenced above, and Epoxy By S.H.E. LLC, in addition to “Kaydon Vanity Décor.”  As detailed in the affidavit, the loan applications contained similar false statements as to the legitimacy of the businesses, number of employees, and financial condition of the entities and the loans were ultimately denied.

The affidavit further alleges that Glenn engaged in a scheme to assist Davis, with whom she is in a romantic relationship, to submit and receive fraudulent PPP and EIDL loans.  Specifically, Davis allegedly submitted a fraudulent PPP loan application on behalf of For Keepsake Investment Realty, which included false statements as to the number of employees and amount of payroll, as well as including a fraudulent bank statement and IRS Form 940—Employer’s Annual Federal Unemployment Tax Return for 2019—in support of the application.  Davis also responded “no’ to the question as to whether he had been placed on any form of parole or probation within the last five years, when in fact, on March 24, 2017, Davis began four years of supervised release for a 2013 federal conviction in Arizona for conspiracy to distribute marijuana.  On March 18, 2021, Davis received PPP loan proceeds of $145,369 on behalf of For Keepsake Investment Realty. 

Further, a fraudulent EIDL loan application on behalf of For Keepsake Investment Realty, listing Davis as the owner of the business, was submitted on June 30, 2020, which claimed, among other things, that the business had gross revenues of $250,000 and employed 10 employees.  On July 2, 2020, and July 15, 2020, Davis received an EIDL advance of $10,000 and EIDL loan proceeds of $64,900, respectively, on behalf of For Keepsake Realty. 

As detailed in the affidavit, in the months following the disbursement of the EIDL loans, Davis purchased multiple airline tickets, luxury goods, and paid for vacations.  Moreover, on December 7, 2021, For Keepsake Realty sent $7,000 via a teller transfer to KDons Vanity Décor LLC’s bank account, which was controlled by Glenn.

In addition to the fraudulent PPP and EIDL loans obtained by Glenn and Davis, the affidavit alleges that Glenn received approximately $21,000 and Davis received approximately $13,000 in unemployment compensation based on fraudulent applications they submitted.

If convicted, Glenn and Davis each face a maximum sentence of 20 years in federal prison for the wire fraud conspiracy.  Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. 

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

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 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 Baltimore County Policed 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.

# # #

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Arley Ray Johnson, age 63, of Bowie, Maryland, yesterday to 78 months in federal prison, followed by three years of supervised release, for conspiracy, wire fraud, and securities fraud charges, in connection with a $28 million Ponzi scheme involving 1st Million, a purported wealth management and financial literacy company.  Johnson was convicted on September 29, 2022, after a 10-day trial. 

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; Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office; and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington

According to the evidence presented at his trial, Johnson conspired with his co-defendants, including Dennis Mbongeni Jali and John Erasmus Frimpong to defraud investors through several related entities including The Smart Partners LLC, which did business as “1st Million Dollars” or “1st Million.”  Johnson served as the Chief Operating Officer for 1st Million, which was headquartered in Largo, Maryland. 

According to trial evidence, 1st Million presented itself as a wealth management and financial literacy company, with its core business offering being a 12-month guaranteed investment contract.  These investment contracts, entitled “Corporate Guarantees,” represented that the client’s principal would be invested in foreign currency or cryptocurrency and guaranteed individuals who invested money with 1st Million monthly returns ranging from 6% to 35% of the initial investment.  At the end of the investment period, the contract promised that the investor would receive the return of all of the principal invested.  In reality, the evidence at trial showed, 1st Million did not invest victims’ funds as promised and, instead, misappropriated the funds for themselves and used the funds to keep the scheme afloat, including using funds from new investors to repay existing investors. 

In addition to misrepresenting that victim funds would be used to invest, Johnson and his co-defendants also falsely stated that investors’ principal would be held in a trust account protected from any financial instability of 1st Million or market volatility.  In fact, victim funds were not placed in a trust account or otherwise guaranteed.  In addition, Johnson and his co-defendants falsely claimed that 1st Million was financially healthy and earning astronomical profits, but 1st Million’s accounts, some of which were controlled by Johnson, were frequently overdrawn and 1st Million had substantial cash flow problems, all of which Johnson and his co-conspirators concealed from investors. 

As detailed in the trial evidence, Johnson and his co-defendants recruited victims to invest in 1st Million by holding promotional events at upscale hotels and event spaces, attending church-sponsored events intended to target investments from churchgoers, and representing themselves as religious men more interested in the financial freedom of others than personal financial gain.  Johnson and his co-defendants presented themselves as “pastors,” and told prospective investors that 1st Million’s work was in furtherance of God’s mission as it helped churches and their members achieve personal wealth and financial freedom.  Johnson and his co-defendants also hired “agents” of 1st Million to organize recruiting events to attract more investors, in exchange for a higher return on the agents’ investments.

By Spring 2019, 1st Million’s accounts were often overdrawn by hundreds of thousands of dollars, and some of the checks 1st Million sent to pay investors monthly returns were returned by the bank due to insufficient funds.  Nevertheless, Johnson and Frimpong continued to solicit funds from existing investors, as well as new investors, and failed to tell any of these potential investors of 1st Million’s financial problems.  Ultimately, the scheme collapsed in May 2019 and hundreds of 1st Million investors collectively lost millions of dollars. 

Over the course of the conspiracy, Johnson and his co-defendants persuaded or attempted to persuade more than 1,200 victims from across the United States to provide them with wire transfers, checks, and cash totaling more than $28 million, from numerous victims.  The evidence proved that although the victims were promised tremendous returns on their investments, Johnson and his co-conspirators did not invest any of the money, instead using it to fund their own lifestyles and to perpetuate the fraud scheme.

John Erasmus Frimpong, age 42, of Upper Marlboro, Maryland previously pleaded guilty to a wire fraud conspiracy, conspiracy to commit securities fraud, and to securities fraud.  Judge Chuang has scheduled sentencing for Frimpong on February 10, 2023, at 9:00 a.m.

Jali fled the United States in May 2019, but has since been arrested in South Africa. 

Separate civil actions filed against Johnson and his co-defendants by the Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission remain pending.

United States Attorney Erek L. Barron commended the FBI, the U.S. Secret Service, and the U.S. Postal Inspection Service for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Caitlin R. Cottingham and Jennifer L. Wine, 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/report-fraud.

# # #

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Dwight Luis Clarke, age 32, of Germantown, Maryland, to 10 years in federal prison, followed by four years of supervised release, for two counts of being a felon in possession of a firearm and four counts of possession with intent to distribute controlled substances.  Clarke admitted that he sold crack cocaine and seven firearms, including five privately manufactured firearms, known as “ghost guns” to an undercover law enforcement officer.

The sentence 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 (ATF) Baltimore Field Division; Chief Marcus Jones of the Montgomery County Police Department; and Chief Victor Brito of the Rockville City Police Department.

According to his plea agreement, during late 2021 and early 2022, Clarke was identified as a suspected trafficker of narcotics and firearms.  In February 2022, an ATF Special Agent, acting in an undercover capacity (the UC) contacted Clarke, who agreed to sell the UC crack cocaine and firearms.  During three meetings that month, Clarke sold the UC:  two privately made firearms (PMFs) that Clarke referred to as “ghost guns,” specifically, Polymer80 Inc. 9mm semi-automatic pistols, bearing no apparent serial numbers; a.22-caliber semi-automatic AR-style pistol; a 33 round 9mm extended magazine, which contained one 9mm cartridge; a .22-caliber extended AR-style magazine loaded with three .22-caliber cartridges, a .22LR caliber mini mag ammunition box containing 95 cartridges; a .380 caliber semi-automatic pistol; and 44.48 grams of crack cocaine.

During one of the meetings, Clarke told the UC that he was unable to purchase a gun at a gun store for the same reason that the UC stated that the UC could not go to a gun store, that is, due to a prior felony conviction. 

As detailed in the guilty plea, at the end of February, Clarke and the UC communicated again regarding the purchase of additional narcotics and firearms.  On February 28, 2022, Clarke and the UC met at the designated location and Clarke sold the UC three fully assembled ghost guns for a total of $3,000, specifically, three Polymer80 Inc., 9mm semi-automatic pistols, each bearing no apparent serial number. 

Search warrants were executed on March 7, 2022, at Clarke’s residence and vehicle.  Law enforcement seized firearms and ammunition from Clarke’s residence.  Clarke was not present at the time, but was arrested a short time later, after asking to meet with the UC to complete a previously agreed upon sale of firearms and crack cocaine.  Law enforcement recovered a Polymer80 Inc. 9mm semi-automatic pistol that Clarke had attempted to throw away before his arrest, and seized approximately 54.78 grams of crack cocaine from Clarke.

Clarke admitted that he knew he had a previous felony conviction and was prohibited from possessing firearms or ammunition.  Further, Clarke admitted that he possessed firearms in connection with his drug trafficking business.

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.

United States Attorney Erek L. Barron commended the ATF, the Montgomery County Police Department, and the Rockville City Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Timothy F. Hagan and Patrick D. Kibbe, who prosecuted the case.

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

# # #

Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Andre Ricardo Briscoe, a/k/a “Poo”, age 39, of Baltimore and Cambridge, Maryland, to life in federal prison for federal drug distribution charges, use of a firearm to commit murder in relation to drug trafficking crimes, killing a witness to prevent communication with law enforcement and being a felon in possession of firearm and ammunition.  Defendant Briscoe was convicted of those charges on June 8, 2022, after a 12-day jury trial.

The sentence 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 (ATF) Baltimore Field Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Justin Todd of the Cambridge Police Department.

According to the facts proven at his trial, from March through October 2015, Briscoe conspired with others to distribute heroin.  On May 25, 2015, Briscoe traveled from his home in Cambridge, Maryland, to the home of co-defendant Kiara Haynes, with whom he was romantically involved.  He told Haynes that he planned to steal heroin from Jennifer Jeffrey, a long-time friend of Haynes.  According to trial testimony, during the course of the evening, Briscoe explained that Ms. Jeffrey had heroin and he planned to rob and kill Ms. Jeffrey to get the heroin.  Haynes told Briscoe she would help him get a gun.

Haynes subsequently contacted a relative whom she knew to have a gun.  The relative was incarcerated at the time.  Haynes told the relative on a recorded jail line that she needed the gun so Briscoe could rob Ms. Jeffrey of her drugs.  In exchange for allowing Haynes to use the gun, Haynes promised to give the inmate “like 30 [grams]” of the stolen heroin and give him the gun back.  The inmate agreed to loan Haynes the gun.  After the call, Haynes and Briscoe met with the inmate’s brother, who gave Haynes a .45 caliber firearm.  Briscoe and Haynes returned to Haynes’s apartment with the gun.

Later that night, Briscoe left Haynes’s apartment and went to visit Ms. Jeffrey at her nearby home.  As detailed during trial testimony, after Briscoe returned to Haynes’s apartment on the morning of May 27, 2015, Briscoe told Haynes that Ms. Jeffrey had shown him a large amount of heroin and that Ms. Jeffrey’s child did not feel well and had not gone to school that day.  At approximately 11:41 a.m. Haynes overheard Briscoe on the phone with Ms. Jeffrey, who was talking about making breakfast for Briscoe.  Briscoe retrieved the .45-caliber gun from Haynes’s bedroom and told her that he was going to Ms. Jeffrey’s to get the drugs.

Briscoe then went to Ms. Jeffrey’s home, where he carried out his plan by robbing her of at least 80 grams of drugs and murdered Ms. Jeffrey, shooting her in the wrist, shoulder, chest, and back of the head.  Briscoe also killed Ms. Jeffrey’s child while he was in his bed by shooting the child multiple times in the head.

Briscoe returned to Haynes’s apartment and told her that Jennifer Jeffrey and her child were dead and gave Haynes a bag of heroin as her “cut.”  As detailed in Haynes’s plea agreement, she returned the gun to the inmate’s relative along with the heroin given to her by Briscoe, as payment for the use of the gun.  On May 28, 2015, after a receiving a call for assistance, the Baltimore Police Department discovered Ms. Jeffrey and her child dead in their home.

Co-defendant Kiara Haynes, age 38, of Baltimore, was sentenced to 25 years in federal prison for two counts of aiding and abetting the use and discharge of a firearm in relation to a drug trafficking crime and crime of violence, causing the death of Jennifer Jeffrey and her seven-year-old child. 

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.

United States Attorney Erek L. Barron commended ATF, the FBI, the Baltimore Police Department, and the Cambridge Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case and thanked Assistant U.S. Attorney Michael C. Hanlon and Special Assistant U.S. Attorney Sandra Wilkinson for their assistance.

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

# # #

Baltimore, Maryland - Chief U.S. District Judge James K. Bredar today sentenced Dennis James Harrison, age 40, of Rocky Ridge, Maryland, to 45 years in federal prison, followed by lifetime supervised release, for the sexual exploitation of children to produce child pornography, related to the sexual exploitation of two minors who were between the ages of 10 and 12 at the time of the abuse.  Chief Judge Bredar also ordered that, upon his release from prison, defendant Harrison 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”). 

Harrison also had a conviction from August 12, 2009, in the Court of Common Pleas of Adams County, Pennsylvania, for possession of child pornography and was a registered sex offender at the time of his arrest in this federal case.

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; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Frederick County State’s Attorney J. Charles Smith III.

According to his guilty plea, between 2018 and 2021, Harrison sexually exploited two minor girls beginning when the one victim was twelve years old and when the other victim was 10 to 11 years old, to produce child pornography.  Specifically, from at least September 2020 through August 2021, Harrison engaged in sexual activity with Jane Doe 1, a 12-year-old girl who resided in Pennsylvania.  Harrison picked-up Jane Doe 1 from her residence and drove her to various locations in Maryland, including Harrison’s residence, where he engaged in illegal sexual activity with Jane Doe 1.  The defendant produced images and videos of his sexual abuse of Jane Doe 1 and enticed Jane Doe 1 to send him sexually explicit photographs of herself.

As detailed in his plea agreement, Harrison also used a hidden camera and a mobile phone in 2018 to produce a series of images depicting Jane Doe 2, a 10-to-11-year-old girl, nude and partially nude in a bedroom and bathroom in Pennsylvania and in a bathroom in Maryland.  The images were taken without the knowledge of Jane Doe 2. 

On August 12, 2021, investigators executed a search warrant at Harrison’s residence and recovered a cellphone used by Harrison to film his sexual abuse of Jane Doe 1, as well as several digital devices.  A forensic examination of all the devices located files depicting the sexual abuse of children on each one, including depictions of infants and toddlers.  In total, over 14,000 files of child pornography were found on Harrison’s devices. 

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

United States Attorney Erek L. Barron commended HSI, the Frederick County Sheriff’s Office, and the Frederick County State’s Attorney’s Office 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 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 – A federal grand jury has returned an indictment charging Lavar William Henderson, age 44, of Richmond, Virginia, for the federal charge of being a felon in possession of a firearm and ammunition.  The indictment was returned on November 16, 2022.  Henderson was arrested on related state charges on November 16, 2022, and had an initial appearance in U.S. District Court in Greenbelt yesterday on the federal indictment.  Henderson consented to detention pending trial.

The indictment 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 (ATF) Baltimore Field Division; Acting Chief Christopher Stock of the U.S. Park Police, and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.

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

As detailed in court documents, a 9mm pistol, loaded with 14 rounds of ammunition, was located in the vehicle.  Additional investigation revealed that the firearm was equipped with a red laser and was previously reported stolen from Henrico County, Virginia in 2014.  Officers with the United States Park Police and the Maryland State Police conducted interviews with four victims who alleged that Henderson pointed his gun at them while driving that morning, before Henderson’s arrest on the Baltimore-Washington Parkway.  Court documents further allege that Henderson yelled at the victims, and either beat on, or caused damage to, the victims’ vehicles.

If convicted, Henderson faces a maximum sentence of 15 years in federal prison for being a felon in possession of a firearm and ammunition.  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. 

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

United States Attorney Erek L. Barron commended the ATF, the U.S. Park Police, and the Maryland State Police for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney LaShanta Harris and Special Assistant U.S. Attorney Patrick Kibbe, 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.

# # #

Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Noland Rheubotton, age 57, of Baltimore, Maryland, yesterday to10 years in federal prison, followed by three years of supervised release, for an armed commercial robbery and for brandishing a firearm during a crime of violence. 

On November 29, 2022, Judge Gallagher sentenced co-defendant James Featherstone, age 60, of Baltimore, to 10 years in federal prison, followed by five years of supervised release, for the same crime.

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; Chief Henry Trabert of the Aberdeen Police Department; and Chief Teresa Walter of the Havre de Grace Police Department.

According to their guilty pleas, on December 22, 2019, Rheubottom and Featherstone entered a gas station convenience store in Aberdeen, Maryland.  The defendants brandished handguns and robbed the store of cash and lotter scratch-off tickets.  Rheubottom and Featherstone also robbed a store employee of cash before they fled in a silver Toyota Corolla.

Aberdeen Police Department (“APD”) officers responding to the robbery spotted the silver Toyota Corolla.  An APD officer attempted to detain the vehicle and occupants at gunpoint, but the vehicle fled and entered I-95.  Police officers followed the vehicle and attempted to stop the vehicle while it was traveling on I-95.  At one point, the vehicle swerved in attempt to strike one of the police vehicles.  The suspect vehicle then exited I-95 and headed towards Havre de Grace.  Havre de Grace police officers joined the pursuit.  Ultimately, officers placed stop sticks in the roadway which deflated the Toyota’s tires.  The defendants then drove the car into a police barricade and Rheubottom and Featherstone were taken into custody. 

During the search of the Toyota Corolla, law enforcement officers recovered a Colt, .38 special revolver handgun, on the front passenger floorboard of the vehicle.  A bag was also located in the vehicle, which contained Maryland lottery tickets, coin rolls, and loose cash.  Law enforcement also recovered from the vehicle a Maryland driver’s license in Featherstone’s name, mail addressed to Featherstone, two cell phones, gloves, and a black hood.

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, the Aberdeen Police Department, and the Havre de Grace Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney John W. Sippel, Jr, who prosecuted the case.

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

# # #

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Che Jaron Durbin, age 44, of Aberdeen, Maryland, on December 19, 2022, to 20 years in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine and for two counts of possession with intent to distribute cocaine, in connection with his participation in a drug trafficking organization distributing cocaine and crack cocaine in Harford County, Maryland. 

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Harford County State’s Attorney Albert J. Peisinger, Jr.; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Sheriff Jeffrey Gahler of the Harford County Sheriff’s Office; and the Harford County Drug Task Force, a High Intensity Drug Trafficking Areas (HIDTA) program, comprised of members of the Harford County Sheriff's Office, the Aberdeen Police Department, the Bel Air Police Department, and the Havre de Grace Police Department.

According to evidence presented at the eight-day trial, in May 2019, members of the Harford County Drug Task Force were investigating Durbin, who was suspected of drug trafficking in the Harford County area.  Witnesses testified that on May 17, 2019, a U.S. Postal Inspector notified detectives that a suspicious package was en route to Durbin’s mother’s apartment in Aberdeen, Maryland.  Detectives watched as a U.S. Postal Service mail carrier delivered the parcel to Durbin, who took it into the apartment.  A short time later, a woman, later identified as co-defendant Jameka Cara Thompson, left the apartment with the parcel and drove to her home.  Law enforcement detained Thompson and obtained a search warrant for her vehicle.  The parcel was found to contain one kilogram of compressed cocaine.  Further investigation revealed that co-defendant Jack Anderson from Tucson, Arizona was the sender of the package.

On January 22, 2020, law enforcement learned from U.S. Postal Inspectors that Durbin sent a parcel from Havre de Grace, Maryland, addressed to Anderson in Tucson, Arizona.  A search warrant was obtained for the parcel after a K9 gave a positive alert.  The parcel contained $82,300 in cash inside a wireless headphones box.

In February 2020, as part of the investigation, law enforcement intercepted Durbin’s communications, as well as those of Anderson, co-defendant Terrell Walton, and other co-defendants to whom Durbin supplied cocaine and crack cocaine.  The evidence at trial demonstrated that Walton obtained cocaine from Durbin, which Walton then sold to a network of individuals in Harford County.  Intercepted communications between Durbin and Walton included discussions regarding the amounts of drugs and the price, often using coded language.

According to trial testimony, in May 2020, law enforcement surveilled Durbin meeting with Anderson at a Tucson, Arizona hotel.  Soon after the meeting, Durbin picked Thompson up at the Tucson Airport and drove her back to his hotel room.  Durbin flew back to Maryland the next day and Thompson ultimately obtained a bulk supply of cocaine from Anderson on Durbin’s behalf.  Thompson drove cross-country from Arizona to Harford County, where she was arrested on May 12, 2020.  Law enforcement searched her vehicle, seizing 1.4 kilograms of cocaine.  Durbin was also arrested.  According to trial testimony, over the course of the conspiracy Thompson made at least eight similar trips on Durbin’s behalf, transporting almost 40 kilograms of cocaine to Maryland for Durbin to distribute.

Co-defendant Terrell Darnell Walton, age 36, of Delaware, was also convicted at trial for the drug conspiracy and was sentenced on September 23, 2022, to 13 years in federal prison.  Co-defendant Jack Anderson IV, age 46, of Tucson, Arizona, was sentenced to 126 months in federal prison in December 2021, after Anderson entered a guilty plea to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.  Co-defendants Jameka Cara Thompson, age 42, of Abingdon, Maryland, was sentenced to 33 months in federal prison; Gerrick Devlon Jackson, age 40 of Havre de Grace, Maryland, was sentenced to 72 months in federal prison; and Michael Ronnell Wells, age 38, of Forest Hill, Maryland, was sentenced to 71 months in federal prison, for their roles in the conspiracy. 

United States Attorney Erek L. Barron commended the Harford County State’s Attorney’s Office, the DEA, the U.S. Postal Inspection Service, the Harford County Sheriff’s Office, and the Harford County Drug Task Force for their work in the investigation.  Mr. Barron thanked Special Assistant U.S. Attorney Christopher J. Romano, who prosecuted the case.

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

# # #

Baltimore, Maryland – A federal grand jury has returned an indictment charging Nader Pourhassan, age 59 of Lake Oswego, Oregon, and Kazem Kazempour, age 69, of Potomac Maryland, for their roles in schemes to defraud investors in CytoDyn Inc., a publicly traded biotechnology company based in Vancouver, Washington.  Pourhassan was CytoDyn’s president and CEO at the time of the alleged fraud.  Kazempour is the co-founder, president, and CEP of Amarex Clinical Research LLC (Amarex), a private company with offices in Germantown, Maryland, that managed CytoDyn’s clinical trials.  The indictment was returned on December 15, 2022, and unsealed today upon the arrests of the defendants. 

The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Commissioner Catherine A. Hermsen of the FDA’s Office of Criminal Investigations (OCI); Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division.

“The indictment alleges that these defendants conspired to defraud investors in order to line their own pockets,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Investors must be able to rely on the statements of biotech companies about their products.  Executives who knowingly mislead investors must be held accountable.”

“The Department of Justice is committed to protecting the investing public from criminals who would exploit public health crises for personal profit,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.  “These charges also confirm the department’s commitment, together with our law enforcement partners, to hold corrupt C-Suite executives who abuse their positions and engage in securities fraud accountable for their actions.”

According to the 14-count indictment, the defendants engaged in conspiracy and schemes to defraud investors through false and misleading representations and material omissions relating to CytoDyn’s development of leronlimab, a monoclonal antibody investigational drug also known as PRO 140, as a potential treatment for human immunodeficiency virus (HIV).  Pourhassan and Kazempour allegedly deceived investors about the timeline and status of CytoDyn’s regulatory submissions to the U.S. Food and Drug Administration (FDA) to artificially inflate and maintain the price of CytoDyn’s stock and attract new investors, and for their personal benefit, including by selling their personal shares of CytoDyn stock.  Amarex served as CytoDyn’s regulatory agent in interactions with the FDA and Kazempour also served on CytoDyn’s Disclosure Committee, which was responsible for reviewing and approving CytoDyn’s periodic filings with the U.S. Securities and Exchange Commission.

The indictment further alleges that Pourhassan and Kazempour made and caused CytoDyn to make materially false and misleading representations about the timelines by which CytoDyn and Amarex would complete and submit CytoDyn’s biologics license application (BLA) for HIV to the FDA.  In April 2020, after CytoDyn and Amarex repeatedly missed publicized timelines, Pourhassan allegedly directed Kazempour and Amarex to submit the BLA – even if it was incomplete – so that Pourhassan and CytoDyn could announce to investors that the BLA had been submitted.  Pourhassan and Kazempour allegedly knew that the FDA would refuse to review an incomplete BLA.

After Kazempour and Amarex allegedly submitted the incomplete BLA at Pourhassan’s direction, Pourhassan and CytoDyn misrepresented in a press release that a “complete” BLA had been submitted to the FDA when, in truth and in fact, it had not.  Pourhassan then allegedly sold millions of dollars’ worth of CytoDyn stock based on material non-public information, including information about the fact that the BLA was, in truth and in fact, incomplete when submitted.

“Financial crimes like securities fraud may not be violent, but they certainly are not victimless.  The two individuals charged today capitalized on the hopes of investors and the public in supporting new treatments for ailments that affect people and their families,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “This indictment sends a message to all sophisticated white-collar criminals that no one is beyond the reach of the FBI and our law enforcement partners and we do not tolerate the greedy intentions of those in such trusted positions.”

“The conduct alleged in these charges erodes public trust in the safety and effectiveness of medical products, including drugs,” said Assistant Commissioner Catherine A. Hermsen of the FDA’s Office of Criminal Investigations (OCI).  “The FDA would like to extend our thanks to our federal law enforcement partners for sending a strong message to biotechnology executives and others that these types of actions will not be tolerated.”

The indictment also alleges that Pourhassan made, and caused CytoDyn to make, materially false and misleading representations about CytoDyn’s investigation and development of leronlimab as a potential treatment for COVID-19, including the results and significance of clinical trials and the status of CytoDyn’s regulatory submissions to the FDA.  Pourhassan allegedly knew that, in truth and in fact, leronlimab’s clinical studies failed to achieve the results necessary to obtain any form of FDA approval for use as a treatment for COVID-19 and the results CytoDyn publicly touted were neither statistically significant nor scientifically sound.

“Throughout history, Postal Inspectors have investigated many investment schemes and the one thing that always rings true, where there are large sums of money to be made, scammers are always lurking,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group.  “In this case, these individuals took advantage of the dream of a possible new treatment for HIV and exploited investors, while dashing the hopes of many waiting for a cure.  Postal Inspectors and their law enforcement partners will work tirelessly to bring to justice those who break regulatory and investment standards, keeping the investing landscape safe and free of crime for the American public.”

Pourhassan and Kazempour are each charged with one count of conspiracy to commit securities fraud and wire fraud, three counts of securities fraud, and two counts of wire fraud related to the HIV BLA scheme.  Pourhassan is separately charged with an additional count of securities fraud, an additional count of wire fraud related to the COVID-19 scheme, and three counts of insider trading.  Kazempour is separately charged with one count of making false statements to federal law enforcement agents.  Pourhassan and Kazempour made their initial court appearance today in the District of Oregon and the District of Columbia, respectively.  

If convicted, Pourhassan and Kazempour each face a maximum penalty of 20 years in prison on each securities fraud and wire fraud count, and five years in prison on the conspiracy count.  Kazempour also faces a maximum penalty of five years in prison on the false statement count.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.  Victims can find case updates and additional information at: https://www.justice.gov/criminal-vns/case/CytoDyn-Inc.

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, FDA-CID, and USPIS for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Leo J. Wise, and Trial Attorneys Christopher Fenton and Joshua DeBold and Assistant Chief Michael O’Neill of the Criminal Division’s Fraud Section, 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.

# # #

A federal grand jury in the District of Maryland returned an indictment that was unsealed today charging two men for their roles in schemes to defraud investors in CytoDyn Inc., a publicly traded biotechnology company (OTCQB: CYDY) based in Vancouver, Washington.

According to court documents, Nader Pourhassan, 59, of Lake Oswego, Oregon, and Kazem Kazempour, 69, of Potomac, Maryland, allegedly engaged in a conspiracy to defraud investors through false and misleading representations and material omissions relating to CytoDyn’s development of leronlimab, a monoclonal antibody investigational drug also known as PRO 140, as a potential treatment for human immunodeficiency virus (HIV). Pourhassan and Kazempour allegedly deceived investors about the timeline and status of CytoDyn’s regulatory submissions to the U.S. Food and Drug Administration (FDA) to artificially inflate and maintain the price of CytoDyn’s stock and attract new investors, and for their personal benefit, including by selling their personal shares of CytoDyn stock.

Pourhassan was CytoDyn’s president and CEO at the time of the alleged fraud. Kazempour is the co-founder, president, and CEO of Amarex Clinical Research LLC (Amarex), a private company with offices in Germantown, Maryland, that managed CytoDyn’s clinical trials, and was CytoDyn’s regulatory agent in interactions with the FDA. Kazempour also served on CytoDyn’s Disclosure Committee, which was responsible for reviewing and approving CytoDyn’s periodic filings with the U.S. Securities and Exchange Commission.

“The Department of Justice is committed to protecting the investing public from criminals who would exploit public health crises for personal profit,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These charges also confirm the department’s commitment, together with our law enforcement partners, to hold corrupt C-Suite executives who abuse their positions and engage in securities fraud accountable for their actions.”

“The indictment alleges that these defendants conspired to defraud investors in order to line their own pockets,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Investors must be able to rely on the statements of biotech companies about their products. Executives who knowingly mislead investors must be held accountable.”

The indictment alleges that Pourhassan and Kazempour made and caused CytoDyn to make materially false and misleading representations about the timelines by which CytoDyn and Amarex would complete and submit CytoDyn’s biologics license application (BLA) for leronlimab’s treatment of HIV to the FDA. In April 2020, after CytoDyn and Amarex repeatedly missed publicized timelines, Pourhassan allegedly directed Kazempour and Amarex to submit the BLA – even if it was incomplete – so that Pourhassan and CytoDyn could announce to investors that the BLA had been submitted. Pourhassan and Kazempour allegedly knew that the FDA would refuse to review an incomplete BLA.

After Kazempour and Amarex allegedly submitted the incomplete BLA at Pourhassan’s direction, Pourhassan and CytoDyn misrepresented in a press release that a “complete” BLA had been submitted to the FDA when, in truth and in fact, it had not. Pourhassan then allegedly sold millions of dollars’ worth of CytoDyn stock based on material non-public information, including information about the fact that the BLA was, in truth and in fact, incomplete when submitted.

“Financial crimes like securities fraud may not be violent, but they certainly are not victimless. The two individuals charged today capitalized on the hopes of investors and the public in supporting new treatments for ailments that affect people and their families,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “This indictment sends a message to all sophisticated white-collar criminals that no one is beyond the reach of the FBI and our law enforcement partners and we do not tolerate the greedy intentions of those in such trusted positions.”

“The conduct alleged in these charges erodes public trust in the safety and effectiveness of medical products, including drugs,” said Assistant Commissioner Catherine A. Hermsen of the FDA’s Office of Criminal Investigations (OCI). “The FDA would like to extend our thanks to our federal law enforcement partners for sending a strong message to biotechnology executives and others that these types of actions will not be tolerated.”

The indictment also alleges that Pourhassan made, and caused CytoDyn to make, materially false and misleading representations about CytoDyn’s investigation and development of leronlimab as a potential treatment for COVID-19, including the results and significance of clinical trials and the status of CytoDyn’s regulatory submissions to the FDA. Pourhassan allegedly knew that, in truth and in fact, leronlimab’s clinical studies failed to achieve the results necessary to obtain any form of FDA approval for use as a treatment for COVID-19 and the results CytoDyn publicly touted were neither statistically significant nor scientifically sound. 

“Throughout history, Postal Inspectors have investigated many investment schemes and the one thing that always rings true, where there are large sums of money to be made, scammers are always lurking,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “In this case, these individuals took advantage of the dream of a possible new treatment for HIV and exploited investors, while dashing the hopes of many waiting for a cure. Postal Inspectors and their law enforcement partners will work tirelessly to bring to justice those who break regulatory and investment standards, keeping the investing landscape safe and free of crime for the American public.”

Pourhassan and Kazempour are each charged with one count of conspiracy to commit securities fraud and wire fraud, three counts of securities fraud, and two counts of wire fraud related to the HIV BLA scheme. Pourhassan is separately charged with an additional count of securities fraud, an additional count of wire fraud related to the COVID-19 scheme, and three counts of insider trading. Kazempour is separately charged with one count of making false statements to federal law enforcement agents. Pourhassan will make his initial court appearance later today in the District of Oregon. Kazempour will make his initial court appearance later today in the District of Columbia. If convicted, Pourhassan and Kazempour each face a maximum penalty of 20 years in prison on each securities fraud and wire fraud count, and five years in prison on the conspiracy count. Kazempour also faces a maximum penalty of five years in prison on the false statements count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Baltimore Field Office, FDA-OCI, and USPIS are investigating the case.

Trial Attorneys Christopher Fenton and Joshua DeBold and Assistant Chief Michael O’Neill of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Aaron S.J. Zelinsky and Leo Wise for the District of Maryland are prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. Victims can find case updates and additional information at: https://www.justice.gov/criminal-vns/case/CytoDyn-Inc.

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

A federal jury in the District of Maryland convicted three members of La Mara Salvatrucha – a transnational criminal enterprise also known as MS-13 – on Dec. 16 for racketeering conspiracy.

According to court documents and evidence presented at trial, between August 2018 and April 2019, Jose Domingo Ordonez-Zometa, aka Felon, 33, of Landover Hills, Maryland; Jose Rafael Ortega-Ayala, aka Impaciente, 30, of Greenbelt, Maryland; and Jose Henry Hernandez-Garcia, aka Paciente, 29, of Annandale, Virginia, participated in the MS-13 criminal enterprise by engaging in acts of violence, including murder, the destruction of evidence, and witness tampering, among other crimes. The criminal acts were committed by gang members to increase MS-13’s power in the Washington, D.C. metropolitan area, including Maryland and Virginia.

MS-13, one of the largest street gangs in the United States, is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13 operate throughout the United States, including in Maryland, Virginia, and Washington, D.C. Ordonez-Zometa, Ortega-Ayala, and Hernandez-Garvia were members and associates of the Los Ghettos Criminales Salvatruchas (“LGCS” or “Ghettos”) clique of MS-13.

Ordonez-Zometa was the leader of the LCGS clique. On March 8, 2019, Ordonez-Zometa called a meeting of the LCGS clique at his house to discuss clique matters, including recent contacts that an LCGS clique member (Victim 1) had with the police. During the meeting, Ordonez-Zometa questioned Victim 1 about his/her cooperation with police.

During the questioning, the defendants and at least one other MS-13 member assaulted Victim 1 based on their incorrect suspicions that Victim 1 was cooperating with law enforcement. They also assaulted another MS-13 member who attempted to defend Victim 1. The assault culminated with Ordonez-Zometa, as LGCS clique leader, ordering that Victim 1 be killed. Ortega-Ayala, Hernandez-Garcia, and other MS-13 members then stabbed and murdered Victim 1 in Ordonez-Zometa’s basement.

According to trial testimony, after the murder, Ordonez-Zometa ordered Ortega-Ayala, Hernandez-Garcia, and other LCGS clique members and co-conspirators to conceal and destroy evidence of the murder. Ortega-Ayala and other MS-13 members transported Victim 1’s body to a secluded location in Stafford County, Virginia, set the victim’s body on fire, and then destroyed and concealed evidence of the murder from the vehicle used to transport the victim.  Meanwhile, Ordonez-Zometa, Hernandez-Garcia, and another MS-13 member stayed at the crime scene and attempted to remove, destroy, and conceal evidence of the murder, including the blood of Victim 1.

At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations, and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.” One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.

MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. 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.

Ordonez-Zometa, Ortega-Ayala, and Hernandez-Garcia were convicted of racketeering and murder in aid of racketeering conspiracies, committing murder in aid of racketeering, and conspiracy to destroy and conceal evidence connected to their participation in MS-13. They each face a mandatory sentence of life in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Erek L. Barron for the District of Maryland; Special Agent in Charge Wayne Jacobs of the FBI Washington Field Office’s Criminal Division; Special Agent in Charge James C. Harris of Homeland Security Investigations, Baltimore Office; Stafford County Sheriff David P. Decatur; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Kevin Davis of the Fairfax County Police Department made the announcement.

The FBI, HSI, the Stafford County Sheriff’s Office, the Prince George’s County Police Department, and the Fairfax County Police Department investigated the case with assistance from the Prince George’s County State’s Attorney’s Office.

Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Michael Morgan and Special Assistant U.S. Attorney Jared Engelking for the District of Maryland and are prosecuting this case.

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.

This case is 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.   

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.

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 – A federal grand jury has returned an indictment charging six Baltimore men for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (BGF) gang.  The indictment, which was returned on December 15, 2022 and unsealed today, charges the following defendants:

David Warren, a/k/a “Meshawn” and “LA Meshawn,” age 30; Barak Olds, age 33; Davante Harrison, a/k/a “YGG Tay” and “Lor Bip Bip,” age 28; Wayne Prince, a/k/a “Taz,” age 23; Joshua Duffy, a/k/a “Josh,” age 35; and
Tyrell Jeffries, a/k/a “Whitebread,” age 37.

Duffy and Jeffries were arrested today and are expected to have an initial appearance in U.S. District Court in Baltimore this afternoon.  Initial appearances for the remaining defendants, who are already in custody, will be scheduled at a later date.

The indictment 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; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Interim Chief Dennis J. Delp of the Baltimore County Police Department.

“The U.S. Attorney’s Office is committed to working with our law enforcement partners to stop gang violence, like that alleged in this indictment,” said United States Attorney Erek L. Barron.  “Gangs will not be allowed to hold communities hostage through violence and intimidation.”

According to the indictment, beginning in 2014 and continuing until the date of the indictment, the defendants are members and associates of the Black Guerilla Family (“BGF”), also known as “Jamaa,” and participated in the BGF criminal enterprise.  BGF is a nationwide gang operating in prisons and in cities throughout the United States.  Founded in California, BGF appeared in the Maryland correctional system in the 1990’s.  Although still a prison gang, BGF is involved in criminal activity, including murder, murder-for-hire, robbery, extortion, drug trafficking, obstruction of justice and witness intimidation throughout Baltimore, in Maryland, and elsewhere.  BGF members in Baltimore are organized into “regimes” corresponding to particular regions or neighborhoods.  Each “regime” is organized and controlled by a hierarchy called “the bubble.”

BGF members are required to follow a code of conduct and includes: never snitching, never stealing from or lying to Jamaa, never participating in homosexual activities, never revealing BGF secrets, and never running during combat.  BGF members who violated this code or who disobeyed an order from a superior were subjected to disciplinary measures, called “sanctions,” which included fines, physical beatings, stabbings, and murders administered by other BGF members.

The indictment alleges that BGF members and associates, operated street-level drug distribution “shops” throughout Baltimore, primarily distributing heroin, cocaine, crack cocaine, marijuana, ecstasy, and other controlled substances.  The indictment further alleges that the defendants committed acts of violence, including six murders, 11 shootings, attempted murders, and armed robberies.  The violent acts were intended to further the gang’s activities, including intimidating witnesses to prevent them from cooperating with law enforcement, protecting the gang’s drug territory, financing the dues paid to BGF, and enforcing gang rules. 

For example, the indictment alleges that on June 29, 2014, Harrison paid a BGF member to murder an individual who owed him money for narcotics.  Harrison allegedly supplied the BGF member with $10,000 and a gun, which the BGF member used to kill the victim in the 1300 block of Ward Street in Baltimore.  The indictment further alleges that in 2018 Harrison hired Warren as a hitman.  Between February and August 2018 Warren allegedly attempted to murder three of Harrison’s rivals in exchange for payments from Harrison.  The intended victims included two individuals who publicly accused Harrison of cooperating with law enforcement, and a BGF member who burglarized Harrison’s residence in 2013.  As detailed in the indictment, Harrison also assaulted an associate after she threatened to report Harrison’s activities to police, allegedly stomping her in the face and knocking her out.

According to the indictment, on April 4, 2018, Warren went to the home of one of the individuals who had accused Harrison of cooperating with police.  The intended victim was not there, but the targeted victim’s mother and sister were in the home.  The indictment alleges that Warren murdered them both using a .357 caliber handgun and that Harrison later paid Warren for committing the murders.  As detailed in the indictment, after the murders, Harrison instructed his girlfriend to look for properties in Atlanta, Georgia, and directed the mother of his child to stay in a hotel in Baltimore County because Harrison was concerned that they may be targeted for violence in retaliation for Harrison’s involvement in the murders.

The indictment alleges that in August 2018, Warren, Prince and a co-conspirator attempted to murder the second person who had accused Harrison of cooperating with law enforcement.  The attempted murder took place at a home that the target owned and was having renovated.  During the assault, two of the construction workers on the site were shot and one of them was killed.

On July 3, 2019, the indictment alleges that Olds shot and killed a woman while she was pushing her infant daughter in a stroller.  The victim was murdered because she was doing business in the 400 block of North Rose Street without obtaining permission from BGF.

The defendants face a maximum sentence of life in prison for the racketeering conspiracy.

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.

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 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 Ariel 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.

# # #

Baltimore, Maryland – Dana Lamar Antonio Hayes, Jr., age 37, of Baltimore, Maryland, pleaded guilty today to a federal wire fraud charge related to a scheme to obtain a fraudulent Economic Injury Disaster Relief loan application (EIDL loan) and several Paycheck Protection Plan loan applications (PPP loans), under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, from two financial institutions (Bank1 and Bank 2).

The guilty plea 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 Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to his plea agreement, between March 2020 and October 2021, Hayes submitted a fraudulent EIDL loan application and PPP loan applications to the Small Business Administration (SBA) and two financial institutions (Bank1 and Bank 2).

Specifically, in March 2020, Hayes submitted a fraudulent EIDL loan application on behalf of his previously forfeited and recently revived company, D&L Investment Properties Inc.  The EIDL loan application contained false statements regarding the number of D&L employees and the payroll expenses of D&L.  In addition, the application asked: “For any criminal offense…have you ever been convicted plead guilty, plead nolo contendere, been placed on pretrial diversion, or been placed on any form of parole or probation (including probation before judgment)?”  Hayes answered “No,” even though Hayes knew that, on April 30, 2019, Hayes was placed on probation for a firearm offense, specifically for possession of a stolen firearm.  Hayes also claimed to have company expenses of $15,000 and equipment costs of $35,000, when in fact, the company had been inactive since 2019.  

The SBA initially denied Hayes’ EIDL application, and for the next 18 months, Hayes regularly contacted the SBA to have his EIDL application approved.  On the basis of false and fraudulent information, the SBA ultimately approved Hayes’s EIDL application and provided Hayes $15,000 in COVID-19 CARES Act loan funds on behalf of D&L.  Once the funds were deposited into D&L’s bank account, Hayes transferred all of the loan proceeds from D&L’s bank account into his personal savings account.

As detailed in the plea agreement, in June 2020 and January 2021, Hayes applied for PPP loans with Bank 1 and Bank 2 on behalf of D&L.  In these PPP loan applications, Hayes included false statements regarding the number of employees for his business, falsified tax forms, lied about his probation status, and provided false payroll expenses of D&L.  On the basis of fraudulent information, Bank 1 and Bank 2 each approved a PPP loan for D&L, depositing a total of $35,036, in D&L’s bank account.  Hayes quickly transferred the loan proceeds into his personal savings account.  

In preparing the January 2021 PPP loan for Bank 2, Hayes admitted that he used the name and Preparer Tax Identification number of Victim 1 to submit a fraudulent tax form to Bank 2 without Victim 1’s knowledge or consent.  Victim 1 had been previously hired by Hayes to prepare D&L and Hayes’ personal tax returns, however, Victim 1 claims that they have never prepared Form 941’s for D&L, and federal records indicate no such form was ever filed.  Hayes admitted that he applied for a second fraudulent PPP loan to Bank 1 in January 2021, but that loan was not approved.

On November 4, 2021, Hayes applied on behalf of D&L to Bank 1 for PPP loan forgiveness for the first draw loan, falsely stating that D&L had spent the entire loan amount, $12,500, on payroll costs.  Hayes’s forgiveness application was not approved.

In February 2022, while the alleged COVID-19 relief scheme was ongoing, Hayes applied to become the Chief of Fiscal Services for the Baltimore City Police Department.  Hayes was subsequently hired for the position in April 2022 and terminated shortly thereafter.

“The defendant’s guilty plea should reflect our continued resolve to investigate and prosecute those who try to exploit a national emergency to steal taxpayer-funded resources by using the global pandemic as an opportunity to defraud the United States Government,” said Darrell J. Waldon, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office.  “IRS Special Agents are committed to working with our law enforcement partners to aggressively uncover and disrupt criminals who conspire to abuse these programs for personal gain.”

Hayes faces a maximum sentence of twenty years in federal prison for wire fraud.  Actual sentences for federal crimes are typically less than the maximum penalties.  U.S. District Judge George L. Russell, III has scheduled sentencing for Hayes on April 17, 2023, at 2:00 p.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.  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 the IRS- CI for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Aaron S.J. Zelinsky, who is prosecuting the case.

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

# # #

Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland has announced the seizure of 23 websites for allegedly live streaming the World Cup games, an infringement of the Fédération Internationale de Football Association (FIFA) copyrights.  Individuals visiting the sites will now see a message that the site has been seized by the federal government and be redirected to another site for additional information.  This is the second round of seizures.  On December 10, 2022, 55 websites were seized and these additional sites were seized on December 16, 2022.

The seizure of the domain names was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge James C. Harris of Homeland Security Investigations – Baltimore; and Director James R. Mancuso of the National Intellectual Property Rights Coordination Center.

According to the affidavit filed in support of the seizures, FIFA is the international governing body of association football and holds the exclusive rights to sanction and stage the FIFA World Cup 2022, which is being hosted in multiple cities in Qatar.  Beginning in September 2022, HSI received information from a representative of FIFA identifying a number of sites being used to distribute and transmit copyright-infringing content, without FIFA’s authorization.  After the initial round of seizures executed on December 10, HSI Agents in Maryland observed public internet messages and social media posts identifying additional, alternative sites offering illicit streams of World Cup matches.  Agents then reviewed World Cup games and other infringing content being offered through these sites and confirmed a list of additional domain names subject to seizure.  

As detailed in the affidavit, free access to live sports-related copyright-protected content can attract heavy viewing traffic, which makes websites offering such content a potentially lucrative way to serve advertisements.  Based on the pervasive use of advertising on each site, the affidavit alleges that the purpose for distributing the infringing content is the private financial gain to these websites’ operators.  By seizing the subject domain names, the government prevents third parties from acquiring the name and using it to commit additional crimes, or from continuing to access the websites in their present forms.

United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite commended HSI for its work in this investigation and thanked the National Intellectual Property Rights Coordination Center and the National Cyber-Forensics and Training Alliance for their assistance.  Mr. Barron and Mr. Polite thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Stephanie Williamson and Trial Attorneys Jason Gull and Bryce Rosenbower of the Justice Department’s Computer Crime and Intellectual Property Section, who are handling 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 – A federal jury convicted Jose Domingo Ordonez-Zometa, a/k/a “Felon,” age 33, of Landover Hills, Maryland; Jose Rafael Ortega-Ayala, a/k/a Impaciente,” age 30, of Greenbelt, Maryland; and Jose Henry Hernandez-Garcia, a/k/a “Paciente,” age 29, of Annandale, Virginia, for racketeering and murder in aid of racketeering conspiracies, for committing murder in aid of racketeering, and for conspiracy to destroy and conceal evidence connected to their participation in La Mara Salvatrucha, a transnational criminal enterprise also known as MS-13.

The convictions were announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; Special Agent in Charge James C. Harris of Homeland Security Investigations, Baltimore Office; Stafford County Sheriff David P. Decatur; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Kevin Davis of the Fairfax County Police Department.

MS-13, one of the largest street gangs in the United States, is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries.  Branches or “cliques” of MS-13, operate throughout the United States, including in Maryland, Virginia, and Washington, D.C.  The defendants were members and associates of the Los Ghettos Criminales Salvatruchas (“LGCS” or “Ghettos”) clique of MS-13.

The evidence at the two-week trial established that between August 2018 and April 2019, the defendants participated in the MS-13 criminal enterprise by engaging in acts of violence, including  murder, the destruction of evidence, and witness tampering, among other crimes.  The criminal acts were committed by gang members to increase MS-13’s power in the Washington, D.C. metropolitan area, including Maryland and Virginia. 

At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons.  To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence.  MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.” One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible. 

MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members.  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 during the trial, Ordonez-Zometa was the leader of the LGCS clique.  Ordonez-Zometa called a meeting of the LGCS clique at his house on March 8, 2019, to discuss clique matters, including recent contacts that an LGCS clique member (Victim 1) had with the police.  The defendants, Victim 1, and other MS-13 members participated in the meeting, during which Ordonez-Zometa questioned Victim 1 about his/her cooperation with police.

During the questioning, the defendants and at least one other MS-13 member assaulted Victim 1, based on their incorrect suspicions that Victim 1 was cooperating with law enforcement.  They also assaulted another MS-13 member who attempted to defend Victim 1.  The assault culminated with Ordonez-Zometa, as LGCS clique leader, ordering that Victim 1 be killed.  Ortega-Ayala, Hernandez-Garcia and other MS-13 members then stabbed and murdered Victim 1 in Ordonez-Zometa’s basement. 

According to trial testimony, after the murder, Ordonez-Zometa ordered Ortega-Ayala, Hernandez-Garcia, and other LGCS clique members and co-conspirators, to conceal and destroy evidence of the murder.  Ortega-Ayala and other MS-13 members transported the body of the victim to a secluded location in Stafford County, Virginia, and set the victim’s body on fire, then destroyed and concealed evidence of the murder from the vehicle used to transport the victim.  Meanwhile, Ordonez-Zometa, Hernandez-Garcia, and another MS-13 member stayed at the crime scene and attempted to remove, destroy, and conceal evidence of the murder, including the blood of Victim 1. 

The three defendants each face a mandatory sentence of life in prison.  U.S. District Judge Paula Xinis has not yet scheduled a sentencing date for the defendants.

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.

This case is 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.    

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.

United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI, HSI, the Stafford County Sheriff’s Office, the Prince George’s County Police Department, and the Fairfax County Police Department for their work in the investigation and thanked the Prince George’s County State’s Attorney’s Office for its assistance.  Mr. Barron and Mr. Polite thanked Assistant U.S. Attorney Michael Morgan, Special Assistant U.S. Attorney Jared Engelking, and Trial Attorney Matthew Hoff of the Justice Department’s Criminal Division Organized Crime and Gang Section, who are prosecuting this case.

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

# # #