District of Maryland

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Russell Lee Battle, age 54, of Clinton, Maryland, on June 17, 2019, to 15 years in federal prison, followed by three years of supervised release, for possession with intent to distribute crack cocaine and marijuana.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.

U.S. Attorney Robert K. Hur stated, “Guns and drugs take far too many lives in our communities.  All too often, guns and drugs go hand in hand—and both are killers. Federal, state, and local law enforcement are united in our commitment to get guns, drugs, and violent criminals off our streets and to reduce violent crime in our neighborhoods.”

According to Battle’s plea agreement, early in the morning of January 12, 2018, Prince George’s County Police officers stopped the vehicle Battle was driving for not having illuminated tag lights.  Battle was the sole occupant of the vehicle and the vehicle was registered to Battle.

While speaking with the officer on the driver’s side of the vehicle, Battle was attempting to locate his vehicle registration when he pulled a digital scale from the center console and placed it on the passenger seat.  The officer positioned on the passenger side of the vehicle also observed the digital scale.  Battle claimed that he did not know what the scale was and handed it to the officer, who saw that it contained a white powder-like substance and cut marks.  When Battle was not able to find his registration, the officers returned to their cruiser and determined that Battle had previous narcotics-related convictions and had falsely claimed that he didn’t know what the digital scale was.

The officer then conducted a search of Battle’s vehicle and recovered two semi-automatic firearms, each loaded with at least 20 rounds of ammunition, as well as an additional extended magazine.  Officers also recovered three bags of crack cocaine, totaling approximately 9.8 grams.  One of the bags contained 10 small baggies, each with crack cocaine inside.  Officers also recovered 21.7 grams of marijuana packaged into nine individual baggies, as well as $637 in cash.

Battle admitted that he intended to distribute the crack cocaine and marijuana found in his vehicle.

United States Attorney Robert K. Hur praised the ATF and the Prince George’s County Police Department for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Kelly O. Hayes and Erin Pulice, who prosecuted the case.

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Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Terrel Edward Elliott, Jr., age 24, of Baltimore, Maryland, today to 15 years in federal prison, followed by three years of supervised release, for unlicensed dealing in firearms and for being a felon in possession of firearms and ammunition.  Elliott admitted that he was dealing in firearms less than two months after his release from prison for a first-degree assault conviction in Howard County.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Lisa D. Myers of the Howard County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.

“Terrel Elliott contributed to our community’s alarming problem of gun violence by putting firearms in the hands of people intent on violence,” said U.S. Attorney Robert K. Hur. “Statistics show that gun violence is fueled by repeat offenders, like Terrel Elliott, illegally possessing and selling firearms. Now he will spend 15 years in federal prison, where there are no suspended sentences and no parole—ever.  Put down the guns and save a life—maybe even your own.”

According to his plea agreement, Elliott was convicted of first-degree assault in Howard County and was sentenced to eight years in prison, with six years and a half years of that sentence suspended, and eighteen months of unsupervised probation. Elliott was also given a supervised probation period of five years.  Elliott was released after serving his sentence on September 24, 2016. 

As detailed in his plea agreement, Elliott was arrested on April 14, 2017 in possession of drugs, 14 .22-caliber bullets and a handgun with an obliterated serial number.  On November 13, 2017, Elliott pleaded guilty in Howard County to possession of a firearm by a convicted felon.  On February 12, 2018, Baltimore Police officers were surveilling Elliott, who had an open warrant for his arrest, when they saw him leave his residence and get into a car with a woman.  Officers performed a traffic stop to execute the arrest warrant, but Elliott ran away.  Officers gave chase and Elliott was captured at the back door of his residence and arrested.  Officers recovered a handgun from the path Elliott took.

During the ensuing investigation, law enforcement obtained a search warrant for Elliott’s Instagram account.  Law enforcement recovered multiple photographs of Elliott in possession of numerous firearms, as well as Instagram messages with prospective firearm customers, including juveniles and family members.  One of the earliest photos posted on Elliot’s Instagram account was of Elliott with a gun on November 8, 2016—less than two months after he was released from prison.  In January 2018, Elliott sold a gun to a minor and later messages reflect the discussion of more gun sales to the minor.  Elliott’s Instagram posts include more than 4,700 pages and contains numerous references to selling guns for profit.  Elliott admitted that between eight and 24 firearms were involved in his offenses, and that he knew or had reason to believe that the guns would be used or possessed in connection with other felonies, including robberies and drug trafficking.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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 Robert K. Hur commended the ATF, the Howard County Police Department, and the Baltimore Police Department for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Sandra Wilkinson and Michael Goldsticker, who prosecuted the case.

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Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Jose Israel Melendez-Rivera, a/k/a “Liar,” age 21, of Gaithersburg, Maryland, today to 20 years in federal prison, followed by five years of supervised release, for conspiracy to kidnap. 

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Acting Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States.  In Maryland and elsewhere MS-13 members are organized in “cliques,” smaller groups that operate in a specific city of region.  Cliques of MS-13 often work together cooperatively with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity, and to assist one another in avoiding detection by law enforcement.  MS-13 members are required to commit acts of violence, both to maintain membership and discipline within the gang and against rival gangs.  MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.”  One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.

Prospective members who sought to join MS-13 were required to complete an initiation process.  Individuals who associated with and were friends of the gang were called “paisas.”  Individuals who did favors and other acts for the gang were called “paros.”  Persons being observed by the gang for potential membership were called “observations,” and individuals who had advanced to the final level before being “jumped in” were called “chequeos,” or “cheqs.”  To become a full member of MS-13 or a “homeboy,” prospective members were required to complete an initiation process, often referred to as being “jumped in,” during which other MS-13 members would beat the new member, usually until a gang member finished counting aloud to the number 13

According to Melendez-Rivera’s plea agreement, he illegally entered the United States in 2014 from El Salvador, where he held the rank of observation in MS-13.  Initially, Melendez-Rivera did not participate in gang activities when he arrived in the United States, but in December 2015, he was recruited back into the L.A. clique of the gang by an MS-13 member in El Salvador.  In the spring of 2016, that MS-13 member provided Melendez-Rivera with the cell phone number of co-defendant Neris Moreno-Martinez, who was a paro in the L.A. clique and lived in New Jersey.  After talking for several months, Melendez-Rivera and Moreno-Martinez agreed to work together to accomplish MS-13 goals.  According to the plea agreement, Moreno-Martinez wanted to achieve the rank of chequeo, which required him to participate in a murder, but he was concerned that there were not enough forests in New Jersey where he could dispose of a victim.

As detailed in the plea agreement, in the summer of 2016, Moreno-Martinez told Melendez-Rivera about the victim, Jordy Mejia, whom Moreno-Martinez alleged was a member of the rival 18th Street gang, although there is no evidence to suggest that was true.  Prior to October 1, 2016, Moreno-Martinez created a social media account in the name “Shaila Smith.”  Between October 2 and October 15, 2016, Moreno-Martinez posed as Shaila Smith and through social media expressed to Mejia that Shaila Smith was romantically interested in Mejia.  Melendez-Rivera admitted that he and co-defendant Reynaldo Alexis Granados-Vasquez, who was a paro in MS-13 at that time, were aware of the ruse and that the goal was to trick Mejia into coming to Maryland where the three intended to murder Mejia.

According to the plea agreement, Moreno-Martinez traveled to Maryland to meet Melendez-Rivera on October 15, 2016.  Later that day, at the direction of Moreno-Martinez posing as Shaila Smith, Mejia also traveled to Melendez-Rivera’s address in Gaithersburg, where he was told someone would pick him up.  While Mejia waited to be picked-up, Melendez-Rivera admitted that he drove his co-defendants to a residence near a wooded area where the two were to lay in wait for Mejia, then drove back to his apartment, picked up Mejia, and drove back to the wooded area where his co-defendants were waiting.  Thinking that Melendez-Rivera was Mejia, Moreno-Martinez and Granados-Vasquez accidentally struck Melendez-Rivera with a brick or rock and Mejia then ran toward the road.  As detailed in the plea agreement, Granados-Vasquez caught up to Mejia, kicking him into a small stream, where Melendez-Rivera and Moreno-Martinez held Mejia’s head under the water, drowning him.  Melendez-Rivera admitted that the three defendants then carried Mejia’s body into the woods nearby, dug a shallow grave in which to place Mejia, and then each took turns stabbing Mejia’s dead body with machetes they had brought.

Neris Moreno-Martinez, age 22, of New Jersey, and Reynaldo Alexis Granados-Vasquez, a/k/a “Fuego,” age 23, of Gaithersburg, have also pleaded guilty to the kidnapping conspiracy and are scheduled to be sentenced on June 25, 2019 at 10:00 a.m., and on July 9, 2019, at 2:00 p.m., respectively.

United States Attorney Robert K. Hur commended HSI, the Montgomery County Police Department, and the Montgomery County State’s Attorney Office for their work in the investigation and thanked the Gaithersburg Police Department and the Guttenburg, New Jersey Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Thomas P. Windom and Timothy F. Hagan, Jr., who are prosecuting this Organized Crime Drug Enforcement Task Force case.

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Greenbelt, Maryland – Michael Andre Brown, age 47, of Waldorf, Maryland, pleaded guilty today to a  federal bribery charge, in connection with his employment with a federal contractor in which he administered urinalysis tests to individuals on federal probation, supervised release and pre-trial supervision. 

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.

According to his plea agreement, Brown was an employee at a company in Camp Springs, Maryland, that provided drug and alcohol treatment and testing services.  Through a federal contract, the business was tasked with, among other things, administering urinalysis tests to individuals on federal probation, supervised release, and pre-trial supervision on behalf of the U.S. Probation and Pretrial Services Office of the District of Maryland.   Brown was a urinalysis technician for the company.  Brown admitted that from at least December 2018 through February 2019, Brown, in his official capacity, accepted cash payments in exchange for falsely reporting urinalysis results as negative for controlled substances, when in fact, the results were positive for controlled substances.

As detailed in his plea agreement, on December 26, 2018, an FBI undercover task force officer (UC) posing as a federal probationer who had been ordered to submit to urine analysis as part of his/her probation, met with Brown at the company in Camp Springs.  The UC indicated to Brown that he/she expected to have a positive urinalysis result.  Brown told the UC that he was willing to work with the UC.  According to the plea agreement, Brown subsequently took the UC to a bathroom to perform the urinalysis.  The UC submitted a urine sample that would produce a positive result for marijuana.  Brown inspected the cup and indicated to the UC that it was positive for drug use, but again said that he would “take care of” the UC.    The UC expressed his appreciation to Brown and placed $100 on the bathroom sink.  Brown admitted that he took the money. 

Brown admitted that he then gave instructions to the UC on how to check in on his/her next date for urine analysis, but also informed the UC that his/her next date would be December 28, 2018, two days away, and that Brown would be working again on that date.  Such dates are assigned daily and are not supposed to be divulged to the probationers until the evening before.

According to the plea agreement, on December 28, 2018, the UC provided another urine sample to Brown, but instead of checking it, Brown told the UC, “Go ahead and pour it [the urine] out,” “Cause if it was dirty the other day, it’s gonna be dirty today.” The UC again expressed appreciation to Brown and asked if Brown “needed anything.”  Brown admitted that he again accepted $100 from the UC and indicated that he would do so on future dates, as well.  Brown also accepted $150 from the UC on February 11, 2019, without requiring the UC to submit a urine sample at all, before Brown falsely reported a negative urinalysis result for the UC.  The company then reported that false result to U.S. Probation and Pretrial Services.

Brown faces a maximum sentence of 10 years in prison for bribery.  U.S. District Judge Paula Xinis has scheduled sentencing for August 28, 2019, at 10:00 a.m.

United States Attorney Robert K. Hur commended the FBI and the Prince George’s County Police Department for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorney Elizabeth G. Wright, who is prosecuting the case.

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Greenbelt, Maryland –A federal jury has convicted Gerdandino Delgado-Escobar, a/k/a “Pumba,” age 24, of Hyattsville, a member of La Mara Salvatrucha, or MS-13, of conspiracy to interfere with interstate commerce by extortion.  The verdict was returned late on June 13, 2019.

The guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Assistant Director in Charge John P. Selleck of the FBI Washington Field Office; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office; Special Agent in Charge Jesse R. Fong of the U.S. Drug Enforcement Administration (DEA) Washington Field Division; Acting Chief Marcus Jones of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Amal Awad of the City of Hyattsville Police Department; Prince George’s County State’s Attorney Aisha Braveboy; and Montgomery County State’s Attorney John McCarthy.

“We will not tolerate the fear and violence perpetrated by MS-13 in Maryland,” said U.S. Attorney Robert K. Hur.  “This prosecution sends a strong message to MS-13 gang members that federal, state, and local law enforcement will continue to work together to find and bring to justice MS-13 members who prey on our neighborhoods.”

MS-13 is a violent gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, Anne Arundel County, and Frederick County, and throughout the United States.  Branches or “cliques” of MS-13 often work together cooperatively as “Programs,” with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity, and to assist one another in avoiding detection by law enforcement. 

According to trial evidence, in the Washington, DC metropolitan area, MS-13 generated income from various sources, including the extortion of money from businesses.  Targeted businesses included  drug dealers, brothels, unlicensed “stores” where food, alcoholic beverages, and cigarettes were sold, as well as legitimate businesses, including food and beverage sellers and distributors. 

The evidence presented at the four-day trial proved that Delgado-Escobar was a member and associate of the Langley Park Salvatrucha (“LPS”) clique of MS-13.  From at least March 2013, Delgado-Escobar, working with other MS-13 members and associates, extracted weekly extortion payments known as “rent” from victim business owners for operating in territory controlled by the LPS and Sailors cliques of MS-13.  According to trial testimony, the payments were generally about $40 to $50 per week for beer delivery businesses and around $115 per week for brothel owners.  

As proven during the trial, Delgado-Escobar and his co-conspirators extorted numerous business owners operating in the Langley Park area.  Delgado-Escobar conspired with other MS-13 members and associates to obtain money from the victims through the use of actual and threatened force, violence, and fear.  According to the trial evidence, in one instance a victim who delivered beer was grabbed by the neck, had a gun put to his head and was threatened with the murder of his entire family if the victim did not pay MS-13 for operating a business in its territory. MS-13 members referred to these extortion payments as “rent.”

Delgado-Escobar remains detained pending his sentencing, which has not yet been scheduled. 

U.S. Attorney Robert K. Hur thanked the FBI Washington and Baltimore Field Offices, HSI Baltimore, the DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s County State’s Attorney’s Office, the City of Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office for their work in this investigation.  Mr. Hur commended Assistant U.S. Attorneys William D. Moomau and Catherine K. Dick, who are prosecuting this case.

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International Business Machines Corporation (IBM) and Cúram Software have agreed to pay $14.8 million to settle alleged violations of the False Claims Act arising from material misrepresentations to the State of Maryland during the Maryland Health Benefit Exchange (MHBE) contract award process for the development of Maryland’s Health Insurance Exchange (HIX) website and IT platform, the Department of Justice announced today.

“Making misleading statements to win contract awards violates fundamental tenets of government contracting and harms the government and taxpayers,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department is committed to protecting the American taxpayer from false claims and preserving the integrity of federal funding decisions.”

“When companies misrepresent their products and capabilities in order to win government contracts, they enrich themselves at taxpayers’ expense,” said U.S. Attorney Robert K. Hur.  “Today’s resolution demonstrates our continuing commitment to hold companies accountable for their actions.”        

“Companies are expected to be candid about products, skills and abilities during contract negotiations,” said Maureen R. Dixon, Special Agent in Charge, for the Department of Health and Human Services, Office of the Inspector General.  “We will continue to work with the U.S. Department of Justice to ensure taxpayer dollars are only spent for honest, high-quality health care products and services.”

On Dec. 19, 2011, IBM completed its acquisition of Cúram Software Ltd (Cúram). That same day, a proposal was submitted to the State of Maryland to support the HIX, which was drafted in part by Cúram and included Cúram as a subcontractor for software and services. On Jan. 5, 2012, as part of the bid evaluation process and with IBM’s knowledge, Cúram participated in a presentation to the State of Maryland that illustrated Cúram software conducting eligibility determinations for health assistance coverage, calculating applicable tax credits, addressing changes in life events (e.g. changes in income), and illustrating the integration of Cúram’s software with another subcontractor’s health plan shopping software. On Feb. 22, 2012, the State, acting through MHBE, awarded the contract for development of Maryland’s HIX website and IT platform. Cúram-IBM served as a subcontractor on the project. Federal grants from the U.S. Department of Health and Human Services partially funded MHBE’s contract for the Maryland HIX. 

The settlement covers the time period from Jan. 1, 2011, through May 31, 2014, and resolves allegations against Cúram-IBM regarding material misrepresentations made to the State of Maryland during the HIX contract procurement process, including misrepresentations regarding the development status of the Cúram for Health Care Reform software; the existing functionality of the Cúram software to meet the State’s technical requirements, such as addressing life events and calculating tax credits under the Patient Protection and Affordable Care Act; and the integration of Cúram software with other software needed to provide a properly functioning HIX website.  After repeated problems following the launch of the HIX website in October 2013, Maryland, acting through MHBE, terminated the contract and replaced the HIX website and IT platform, including the Cúram software.         

The investigation and settlement in this matter were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Maryland, the Department of Health and Human Services Office of Inspector General, and the Office of the Attorney General of Maryland. The claims resolved by this settlement are allegations only and there has been no determination of liability.

Baltimore, Maryland – International Business Machines Corporation (IBM) and Cúram Software have agreed to pay $14.8 million to settle allegations under the federal False Claims Act that they made material misrepresentations to the State of Maryland during the Maryland Health Benefit Exchange contract award process for the development of Maryland’s Health Insurance Exchange (HIX) website and IT platform. 

The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division; and Special Agent in Charge Maureen R. Dixon of the Office of Inspector General for the Department of Health and Human Services. 

“When companies misrepresent their products and capabilities in order to win government contracts, they enrich themselves at taxpayers’ expense,” said U.S. Attorney Robert K. Hur.  “Today’s resolution demonstrates our continuing commitment to hold companies accountable for their actions.”        

“Making misleading statements to win contract awards violates fundamental tenets of government contracting and harms the government and taxpayers,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department is committed to protecting the American taxpayer from false claims and preserving the integrity of federal funding decisions.”

“Companies are expected to be candid about products, skills and abilities during contract negotiations,” said Special Agent in Charge Maureen R. Dixon of the Office of Inspector General for the Department of Health and Human Services.  “We will continue to work with the U.S. Department of Justice to ensure taxpayer dollars are only spent for honest, high-quality health care products and services.”

According to the settlement agreement, on December 19, 2011, IBM completed its acquisition of Cúram Software Ltd (Cúram).  That same day, a proposal was submitted to the State of Maryland to support the HIX, which was drafted in part by Cúram and included Cúram as a subcontractor for software and services.  On January 5, 2012, as part of the bid evaluation process and with IBM’s knowledge, Cúram participated in a presentation to the State of Maryland that illustrated Cúram software conducting eligibility determinations for health assistance coverage, calculating applicable tax credits, addressing changes in life events (e.g., changes in income), and illustrating the integration of Cúram’s software with another subcontractor’s health plan shopping software. On February 22, 2012, the State, acting through MHBE, awarded the contract for development of Maryland’s HIX website and IT platform.  Cúram-IBM served as a subcontractor on the project.  Federal grants from the U.S. Department of Health and Human Services partially funded MHBE’s contract for the Maryland HIX. 

After repeated problems following the launch of the HIX website in October 2013, Maryland, acting through MHBE, terminated the contract and replaced the HIX website and IT platform, including the Cúram software.  The settlement covers the time period from January 1, 2011, through May 31, 2014, and resolves allegations against Cúram-IBM regarding material misrepresentations made to the State of Maryland during the HIX contract procurement process, including misrepresentations regarding the development status of the Cúram for Health Care Reform software; the existing functionality of the Cúram software to meet the State’s technical requirements, such as addressing life events and calculating tax credits under the Patient Protection and Affordable Care Act; and the integration of Cúram software with other software needed to provide a properly functioning HIX website. 

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

The investigation and settlement in this matter were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Maryland, the Department of Health and Human Services Office of Inspector General, and the Office of the Attorney General of Maryland.  U.S. Attorney Robert K. Hur thanked Assistant United States Attorneys Allen F. Loucks and Rebecca A. Koch, and Michael Hoffman with the Civil Division’s Commercial Litigation Branch, who handled the case. 

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Wilmer Flores Mejia, age 44, a naturalized citizen of the United States residing in Cheverly, Maryland, to 14 years in federal prison, followed by 25 years of supervised release, for coercion and enticement of a minor to produce child pornography.  Judge Grimm also ordered that, upon his release from prison, Flores Mejia must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).  The sentence was imposed on June 13, 2019.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.

According to his plea agreement, in December 2015, Flores Mejia used a messaging application to communicate with the victim, who was a 15-year-old boy living in El Salvador.  During the course of a sexually explicit conversation, Flores Mejia agreed to pay the victim to send Flores Mejia a sexually explicit photograph of himself, which the victim did.

Flores Mejia’s messaging account showed that he had engaged in other sexually explicit conversation with minor boys on several occasions.  Cellular phones seized from Flores Mejia contain conversations with minor boys, including regarding sexual topics.  A federal search warrant executed at the residence of Flores Mejia in Maryland also recovered a notebook which contained the names and ages of boys from a village in El Salvador, including the name and age of the victim.

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 Robert K. Hur commended the FBI for its work in the investigation and thanked the Prince George’s County Police Department, U.S. Customs and Border Protection, and the Policia Nacional Civil of El Salvador for their assistance.  Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the federal case.

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Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Johnson Olatunji Ogunyemi, age 50, a Nigerian national residing in Owings Mills, Maryland, to 30 months in federal prison, after Ogunyemi pleaded guilty to forgery and false use of a passport, fraud and misuse of a visa, and money laundering.  Judge Blake also ordered Ogunyemi to forfeit $105,561.

The guilty plea and sentence were announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Edwin Guard of the U.S. Department of State’s Diplomatic Security Service (DSS) Washington Field Office.

According to his plea agreement, Ogunyemi is a Nigerian national who arrived in the United States on January 31, 2015.  Ogunyemi was authorized to remain until July 30, 2015, but did not leave the U.S.  On August 16, 2017, the New Carrollton Police Department (“NCPD”) arrested Ogunyemi at a bank in New Carrollton, Maryland, after Ogunyemi presented a fraudulent Nigerian passport and visa in the name of Benjamin Smith to the teller to conduct a financial transaction.  During the arrest, NCPD took possession of three Nigerian passports with U.S. visas, all with Ogunyemi’s photo, but in the names of Benjamin Smith, Benjamin Johnson, and John Wale, as well as a Nigerian driver’s license in the name of Benjamin Smith and an Ohio driver’s license in the name of David Durston recovered from Ogunyemi or from the vehicle that he drove to the bank.

As detailed in his plea agreement, on November 10, 2017, Diplomatic Security Service (“DSS”) agents arrested Ogunyemi at his residence in Owings Mills.  When DSS arrived at the residence to execute the arrest warrant, Ogunyemi absconded through a third-floor balcony and attempted to flee.  DSS also executed a search warrant on Ogunyemi’s vehicle and found an additional Nigerian passport and Nigerian Driver’s License containing Ogunyemi’s photo in the name of Ola Badru, as well as mail addressed to Ogunyemi’s other known aliases. The Department of Homeland Security Forensic Laboratory determined that all of the identity documents recovered from Ogunyemi or his vehicles were counterfeit.  Ogunyemi admitted that he assumed at least five identities in the United States, including four for which he possessed altered Nigerian passports, each containing a forged United States visa.

Ogunyemi further admitted that he participated in a fraud scheme.  Specifically, Ogunyemi opened bank accounts in the names of his various aliases, using the false passports and visas, as well as the name of a purported business.  Ogunyemi received wire transfers, check and cash deposits of hundreds of thousands of dollars into the bank accounts that he exercised control over.  Ogunyemi knew that the funds that he received and deposited into his accounts were the proceeds of unlawful activity, including scams against vulnerable individuals and the defrauding of businesses by email hacking and/or by counterfeit checks.  Ogunyemi, using his various aliases, used the proceeds received and deposited into his accounts to conduct financial transactions in an effort to conceal the unlawful source of the funds.  

The amount of money laundered by Ogunyemi as part of the conspiracy was at least $307,300.

United States Attorney Robert K. Hur commended DSS for their work in the investigation and thanked the New Carrollton Police Department for its assistance.  Mr. Hur thanked Assistant U.S. Attorneys Joan C. Mathias and Tamera L. Fine, who prosecuted the case.

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Baltimore, Maryland – ACell, Inc. (ACell), a Maryland-based medical device manufacturer, pleaded guilty to charges relating to its MicroMatrix powder wound-dressing product (MicroMatrix).  ACell entered a guilty plea before U.S. District Court Judge Ellen L. Hollander in the District of Maryland to one misdemeanor count of failure and refusal to report a medical device removal in violation of the Federal Food, Drug, and Cosmetic Act (FDCA).  In addition, ACell has agreed to settle allegations that it caused false claims to be submitted to federal health care programs for MicroMatrix, and to pay $15 million to resolve its criminal and civil liability arising from these matters. 

The guilty plea and settlement were announced by United States Attorney for the District of Robert K. Hur; Assistant Attorney General Joseph H. Hunt of the Justice Department’s Civil Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.

“When companies use contaminated materials to manufacture devices and fail to notify the FDA of recalls of their products due to concerns of patient safety, they undermine the integrity of the FDA recall process and may cause patients to receive devices that are not safe,” said U.S. Attorney for the District of Maryland Robert K. Hur.  “This joint criminal and civil resolution holds ACell accountable for this violation while returning dollars back to the Medicare program for false claims.”

“Today’s settlement underscores the Department’s commitment to holding device manufacturers accountable for ensuring that their products are safe, which includes making timely notifications to the FDA when a product recall is required,” said Assistant Attorney General Joseph H. Hunt of the Department of Justice. 

“Neglecting to provide vital medical device information to the FDA, medical professionals, and even the company’s own sales force, posed a significant threat to the lives of patients across the country,” said Maureen Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services region including Maryland.  “Compounding that crime, the government contended the company paid thinly-veiled bribes to health providers and stuck taxpayers with inflated bills.” 

As charged in a criminal information unsealed today, ACell removed MicroMatrix from its point of use to reduce a risk to health posed by the device, but failed to report the removal to the Food and Drug Administration (FDA).  The United States alleges that in 2012, ACell clandestinely removed its MicroMatrix devices from sales representative inventories, hospitals, and other healthcare centers, due to a risk to patient health posed by endotoxin contamination of those devices.  Endotoxin exposure on the human body can cause fever, infection, septic shock, and death.

Pursuant to a plea agreement, ACell admitted that it learned in January 2012 that more than 30,000 MicroMatrix devices were contaminated with endotoxin levels that posed a risk to patient health.  Due to that health risk, ACell initiated a removal of certain sizes of MicroMatrix devices from the market.  ACell admitted that it did not report the removal of these devices from the market to FDA.  ACell also admitted that it concealed the reason for the product removal from doctors, hospitals, and the company’s own sales force, and did not notify doctors who had already used MicroMatrix devices from the lots subject to removal of the elevated endotoxin levels.  Under the terms of the plea agreement, ACell agreed to pay a criminal fine of $3 million.  ACell must also abide by an agreement with the Department of Justice requiring ACell to enact extensive compliance reforms.

Pursuant to the civil settlement under the False Claims Act, ACell will pay $12 million over five years to resolve its civil liability for causing false claims for MicroMatrix to be submitted to government health care programs.  Specifically, the United States alleged that, beginning in 2011, ACell’s marketing of MicroMatrix, which is indicated for the treatment of topical wounds, was false and misleading because, at the direction of management, ACell sales representatives stated to physicians that the use of MicroMatrix powder non-topically and internally was safe and effective, when the sales representatives knew that no such clinical data existed.  Additionally, the United States contended that, beginning in March 2012, ACell provided incorrect coding recommendations to healthcare providers for ACell devices and improperly inflated reimbursement from Medicare.  ACell continued to provide this erroneous guidance even after two separate coding consultants advised ACell that it was incorrect.  Finally, the United States alleged that ACell induced prescribers to order ACell products by providing improper inducements, including entertainment, payments for being part of ACell’s speaker program, and free products, designed to encourage orders from the recipients of those inducements.

Contemporaneous with the civil settlement, ACell entered into a Corporate Integrity Agreement (CIA) with the HHS-OIG.  Along with the civil settlement, ACell entered into a Corporate Integrity Agreement (CIA) with the HHS-OIG.  The five-year CIA requires, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks on an ongoing basis.  In addition, the CIA enhances individual accountability by requiring sign-off certifications from the ACell Board of Directors and specified executives.  The CIA requires training, auditing, and monitoring designed to address the range of activities (promotional and otherwise) at issue in the case.         

The civil settlement resolves a lawsuit filed by John Murtaugh, a former employee of ACell, under the qui tam or whistleblower provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery.  The qui tam suit was filed in the District of Maryland and is captioned United States ex rel. John Murtaugh v. ACell, Inc., Action No. ELH-13-1820 (D. Md.).  Murtaugh will receive $2,366,004 of the civil settlement. 

Except as to conduct admitted as part of the guilty plea, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.

The government is represented in the criminal case by Assistant U.S. Attorney Roann Nichols of the U.S. Attorney’s Office for the District of Maryland and Trial Attorneys Clint Narver and Ann Entwistle of the Civil Division’s Consumer Protection Branch, with assistance from FDA’s Office of Chief Counsel.  The civil settlement was the result of the coordinated efforts of Assistant U.S. Attorney Thomas Corcoran of the U.S. Attorney’s Office for the District of Maryland and Senior Counsel Natalie Waites of the Civil Division’s Commercial Litigation Branch.  The investigation was conducted by HHS-OIG, FDA’s Office of Criminal Investigations, the Federal Bureau of Investigation, and the Department of Defense Criminal Investigative Services. 

# # #

ACell Inc. (ACell), a Maryland-based medical device manufacturer, pleaded guilty to charges relating to its MicroMatrix powder wound dressing product (MicroMatrix), the Department of Justice announced today. ACell entered a guilty plea before U.S. District Court Judge Ellen L. Hollander in the District of Maryland to one misdemeanor count of failure and refusal to report a medical device removal in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). In addition, ACell has agreed to settle allegations that it caused false claims to be submitted to federal health care programs for MicroMatrix, and to pay $15 million to resolve its criminal and civil liability arising from these matters. 

“Today’s settlement underscores the Department of Justice’s commitment to holding device manufacturers accountable for ensuring that their products are safe, which includes making timely notifications to the FDA when a product recall is required,” said Assistant Attorney General Jody Hunt of the Civil Division. 

“When companies use contaminated materials to manufacture devices and fail to notify the FDA of recalls of their products due to concerns of patient safety, they undermine the integrity of the FDA recall process and may cause patients to receive devices that are not safe,” said U.S. Attorney for the District of Maryland Robert K. Hur. “This joint criminal and civil resolution holds ACell accountable for this violation while returning dollars back to the Medicare program for false claims.”

“The FDA will not tolerate the actions of companies that put patients at risk by failing to report the market withdrawal of their medical devices to the FDA,” said Acting FDA Commissioner Ned Sharpless, M.D. “By not notifying the FDA nor being forthcoming about their reasons for the product removal, ACell executives placed profit above patient safety. They risked that doctors would use the devices in procedures that could jeopardize patient health, and violated both the trust of patients and the medical community in their medical device. We will continue to investigate and bring to justice companies that do not follow FDA’s postmarket compliance requirements, which are important to ensure the protection of the public health.”

Along with the civil settlement, ACell entered into a Corporate Integrity Agreement (CIA) with the HHS-OIG. The five-year CIA requires, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks on an ongoing basis. In addition, the CIA enhances individual accountability by requiring sign-off certifications from the ACell Board of Directors and specified executives. The CIA requires training, auditing, and monitoring designed to address the range of activities (promotional and otherwise) at issue in the case.  

“Neglecting to provide vital medical device information to the FDA, medical professionals, and even the company’s own sales force, posed a significant threat to the lives of patients across the country,” said Maureen Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services region including Maryland. “Compounding that crime, the government contended the company paid thinly-veiled bribes to health providers and stuck taxpayers with inflated bills.” 

As charged in a criminal information unsealed today, ACell removed MicroMatrix from its point of use to reduce a risk to health posed by the device, but failed to report the removal to the Food and Drug Administration (FDA). The United States alleges that in 2012, ACell clandestinely removed its MicroMatrix devices from sales representative inventories, hospitals, and other healthcare centers, due to a risk to patient health posed by endotoxin contamination of those devices. Endotoxin exposure on the human body can cause fever, infection, septic shock, and death.

Pursuant to a plea agreement, ACell admitted that it learned in January 2012 that more than 30,000 MicroMatrix devices were contaminated with endotoxin levels that posed a risk to patient health. Due to that health risk, ACell initiated a removal of certain sizes of MicroMatrix devices from the market. ACell admitted that it did not report the removal of these devices from the market to FDA. ACell also admitted that it concealed the reason for the product removal from doctors, hospitals, and the company’s own sales force, and did not notify doctors who had already used MicroMatrix devices from the lots subject to removal of the elevated endotoxin levels. Under the terms of the plea agreement, ACell agreed to pay a fine of $3,000,000. ACell must also abide by an agreement with the Department of Justice requiring ACell to enact extensive compliance reforms.

Pursuant to the civil settlement under the False Claims Act, ACell will pay $12 million over five years to resolve its civil liability for causing false claims for MicroMatrix to be submitted to government health care programs. Specifically, the United States alleged that, beginning in 2011, ACell’s marketing of MicroMatrix, which is indicated for the treatment of topical wounds, was false and misleading because, at the direction of management, ACell sales representatives stated to physicians that the use of MicroMatrix powder non-topically and internally was safe and effective, when the sales representatives knew that no such clinical data existed. Additionally, the United States contended that, beginning in March 2012, ACell provided coding recommendations to healthcare providers for ACell devices that were incorrect and improperly inflated reimbursement from Medicare. ACell continued to provide this erroneous guidance even after two separate coding consultants advised ACell that it was incorrect. Finally, the United States alleged that ACell induced prescribers to order ACell products by providing improper inducements, including entertainment, payments for being part of ACell’s speaker program, and free product, designed to encourage orders from the recipients of those inducements.

The civil settlement resolves a lawsuit filed by John Murtaugh, a former employee of ACell, under the qui tam or whistleblower provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suit was filed in the District of Maryland and is captioned United States ex rel. John Murtaugh v. ACell, Inc., Action No. ELH-13-1820 (D. Md.). Murtaugh will receive $2,366,004 of the civil settlement. 

The government is represented in the criminal case by Assistant U.S. Attorney Roann Nichols of the U.S. Attorney’s Office for the District of Maryland and Trial Attorneys Clint Narver and Ann Entwistle of the Civil Division’s Consumer Protection Branch, with assistance from FDA’s Office of Chief Counsel. The civil settlement was the result of the coordinated efforts of Assistant U.S. Attorney Thomas Corcoran of the U.S. Attorney’s Office for the District of Maryland and Senior Counsel Natalie Waites of the Civil Division’s Commercial Litigation Branch. The investigation was conducted by HHS-OIG, FDA’s Office of Criminal Investigations, the FBI, and the Department of Defense Criminal Investigative Services. 

Except as to conduct admitted as part of the guilty plea, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. To learn more about the U.S. Attorney’s Office for the District of Maryland, visit its website at https://www.justice.gov/usao-md. To learn more about the Fraud Section, visit its website at https://www.justice.gov/civil/fraud-section.

A former Navy employee who resided in Maryland before moving to Japan pleaded guilty today to the production, transportation and possession of child pornography.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur of the District of Maryland and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office made the announcement.

Spencer E. Steckman, 35, formerly of Silver Spring, Maryland, was charged in March 2018 with one count of production of child pornography, one count of transportation of child pornography and one count of possession of child pornography.  Steckman was detained by the Naval Criminal Investigative Service (NCIS) in Japan on March 27, 2018, and transported back to Maryland by the United States Marshals Service to appear in U.S. District Court.  U.S. District Judge Paul W. Grimm for the District of Maryland scheduled sentencing for Nov. 7, 2019.  Steckman has remained in custody since his initial detainment.

According to admissions made in connection with his plea agreement, between Aug. 17, 2017, and Sept. 22, 2017, while in Maryland, Steckman enticed a 13-year-old boy to take photographs of himself engaged in sexually explicit conduct and then send them to Steckman in exchange for money or PlayStation videogame redemption codes.  Between Sept. 24, 2017, and Dec. 4, 2017, Steckman enticed another 13-year-old boy to take photographs and videos of himself engaged in sexually explicit conduct and then send them to Steckman in exchange for an iPhone.  In mid-November 2017, Steckman moved to Japan to work with Commander Navy Region Japan, where he transported and possessed the child pornography.

Further investigation revealed eight other victims whom Steckman had enticed to produce child pornography, ranging in age from 12 to 17 years old, and dating back to the years 2008 to 2010, when Steckman was residing in San Diego, California.

The FBI’s Baltimore Field Office and the Maricopa County, Arizona, Sheriff’s Office are investigating the case, with substantial assistance from NCIS.  Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Joseph Baldwin of the District of Maryland are prosecuting the case. 

This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, 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.

Greenbelt, Maryland – Spencer Eugene Steckman, age 35, a Navy employee formerly of Silver Spring, Maryland, pleaded guilty today to the production, transportation, and possession of child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office.

According to admissions made in connection with his plea agreement, between August 17, 2017, and September 22, 2017, while in Maryland, Steckman enticed a thirteen-year-old boy to take, and send to Steckman, photographs of the boy engaged in sexually explicit conduct, in exchange for money and PlayStation videogame redemption codes.  Between September 24, 2017, and December 4, 2017, Steckman enticed another thirteen-year-old boy to take, and send to Steckman, photographs and videos of the boy engaged in sexually explicit conduct, in exchange for an iPhone.  In mid-November 2017, Steckman moved to Japan for work, where he transported and possessed the child pornography.

Steckman was detained by the Naval Criminal Investigative Service (NCIS) in Japan on March 27, 2018, and transported back to Maryland by the United States Marshals Service to appear before the U.S. District Court for the District of Maryland.  He has remained in custody since that time.

Further investigation revealed eight other victims whom Steckman had enticed to produce child pornography, ranging in age from twelve to seventeen years old, and dating back to 2008-2010, when Steckman was residing in San Diego, California.

As part of his plea agreement, Steckman 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).

Steckman and the government have agreed that, if the Court accepts the plea, Steckman will be sentenced to between 25 and 45 years in federal prison.  U.S. District Court Judge Paul W. Grimm scheduled sentencing for November 7, 2019.

This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.

United States Attorney Robert K. Hur commended the FBI, the NCIS, and the Maricopa County, Arizona, Sheriff’s Office for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorney Joseph Baldwin and Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), who are prosecuting the case.

# # #

Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Manuel Martinez-Aguilar, a/k/a “El Lunatic” and “Zomb”, age 20, of Annapolis, Maryland, today to 24 years in federal prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise and for using, carrying, and discharging a firearm during a crime of violence, in connection with his MS-13 gang activities. 

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Baltimore Field Division; Chief Timothy J. Altomare of the Anne Arundel Police Department; and State’s Attorney Anne Colt Leitess of the Anne Arundel County State’s Attorney Office.

MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Anne Arundel County, Montgomery County, Prince George’s County, and Frederick County, and throughout the United States.  Branches or “cliques” of MS-13 often work together cooperatively as “Programs,” with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity, and to assist one another in avoiding detection by law enforcement.  In Maryland and the surrounding area, these cliques include Hempstead Locos Salvatruchas (“HLS”), Parkview Locos Salvatrucha (“PVLS”), Normandie Locos Salvatrucha (“NLS” or “Normandie”), Sailors Locos Salvatrucha Westside (“SLSW” or “Sailors”), Langley Park Salvatrucha (“LPS”), Weedoms Locos Salvatrucha (“Weedoms”), and Cabanas Locos Salvatruchas (“Cabanas”).  A person within the participating cliques is selected as the Program leader.

To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence.  MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.”  One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.

According to Martinez-Aguilar’s plea agreement, prior to 2015, and continuing through 2017, Martinez-Aguilar was a member and associate of the Hempstead clique of MS-13, and participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking.  For example, Martinez-Aguilar conspired to and attempted to murder two victims in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13. 

As detailed in his plea agreement on October 23, 2016, Martinez-Aguilar and other MS-13 members met in a park to discuss the plan to murder Victim 2, an unlicensed cab driver who was believed to be a member of a rival gang.  At the meeting, each member of the conspiracy was assigned a task to complete the murder and dispose of the evidence.  The group planned to use machetes, knives, and guns to kill the victim.  All the members of the conspiracy, including Martinez-Aguilar, were aware that guns would be used in the murder.  Martinez-Aguilar and another MS-13 member were tasked with disposing of Victim 2’s vehicle after the murder.  The group planned to bury the victim’s body in the park.

According to the plea agreement, a member of the conspiracy called Victim 2 using another member’s cell phone to arrange for an unlicensed taxi ride.  Victim 2 arrived with another passenger, Victim 3.  The conspirator asked Victim 2 to drive to the area of 700 block of Annapolis Neck Road in Annapolis.  When they arrived, another MS-13 member approached the vehicle and pointed a gun at the victims and the MS-13 member in the car also produced a gun and pointed it at the victims.  Victim 3 attempted to run away and was shot in the leg, while another MS-13 member attacked the victim with a machete. Victim 2 also tried to run.  Martinez-Aguilar and another MS-13 member took Victim 2’s vehicle and attempted unsuccessfully to run him over with the car.  Two MS-13 members chased Victim 2 and repeatedly struck Victim 2 with a sharp instrument, causing stab wounds.  The conspirators fled when they heard police sirens.  Both victims were transported to the University of Maryland Shock Trauma Center with life threatening injuries.  Both victims survived but have permanent injuries as a result of the attack.

On October 24, 2016, police detectives located Victim 2’s car, which smelled of gasoline.  Officers recovered burned cigarettes from the car the contained DNA from Martinez-Aguilar.

Further, Martinez-Aguilar admitted that between January 2016 and February 2017, he and other members of MS-13 sold cocaine and marijuana to raise funds for the gang.  The proceeds were used for the purchase of more narcotics, weapons, and to send to MS-13 members and associates in other states and in El Salvador, among other purposes.

Co-defendant David Diaz-Alvarado, age 20, pleaded guilty to murder in aid of racketeering related to a murder committed on March 11, 2016, in connection with his MS-13 gang activities.  Charges remain pending against four other co-defendants, who all remain detained pending trial.

United States Attorney Robert K. Hur commended HSI, ATF, Anne Arundel Police Department, and Anne Arundel State’s Attorney Office. Mr. Hur thanked Assistant U.S. Attorney Zachary Stendig, Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section, as well as Special Assistant U.S. Attorney Samantha Mildenberg, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

# # #

Greenbelt, Maryland – Robert Mason Underwood, Sr., age 72, and his wife, Deborah Jean Underwood, age 63, both of Clinton Maryland, were convicted by a federal jury today of one count of conspiracy to defraud the Internal Revenue Service (IRS) and four counts of filing false income tax returns.

The conviction was announced by United States Attorney for the District of Robert K. Hur;  Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“When criminals cheat the IRS, they rob all of us as taxpayers,” said U.S. Attorney Robert K. Hur.  “Prosecutions like this demonstrate that we will not tolerate those who attempt to cheat the system and will hopefully deter others from stealing taxpayer funds.”

“The jury’s guilty verdicts embody the formidable commitment of the Tax Division, along with its partners in the United States Attorney’s Office and the IRS, to prosecute business owners, who cheat the tax system in violation of our criminal laws and in doing so also gain an unfair advantage over other small business owners,” stated Principal Deputy Assistant Attorney General Zuckerman.

“Today’s verdict confirms that choosing to evade the payment of taxes, causing hardworking taxpayers to bear the brunt, is an action that cannot be tolerated,” said IRS-CI Special Agent in Charge Kelly Jackson.  “The conviction of the Underwood’s solidifies this agreement with the American public that everyone must pay their fair share.”

According to court documents and evidence presented in court at their seven-day trial, the Underwoods operated a used automobile parts and scrap metal business in Clinton under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts, LLC.” The business purchased used and salvage cars, stripped the cars for parts to resell, and sold the remaining scrap metal to a Baltimore-based scrap yard.

The Underwoods requested to be paid in cash for their scrap-metal sales and conspired to conceal from the IRS their subsequent receipt of substantial amounts of cash.  The Underwoods filed a false amended individual income tax return for 2010 and false individual income tax returns for 2011 and 2012 with the IRS. The false tax returns did not include the full gross receipts from the sales.  The Underwoods also filed a false 2012 partnership tax return for their business that did not report all gross receipts of the business.

The Underwoods each face a maximum sentence of five years in prison for the conspiracy count and three years in prison for each of four counts of filing a false tax return.  U.S. District Judge Theodore D. Chuang has scheduled sentencing for September 30, 2019, at 2:00 p.m.

U.S. Attorney Hur and Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David I. Salem and Trial Attorney Michael C. Vasiliadis of the Justice Department’s Tax Division, who are prosecuting the case.

# # #

A married Clinton couple were convicted by a federal jury today of one count of conspiracy to defraud the Internal Revenue Service (IRS) and four counts of filing false income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur for the District of Maryland.

“The jury’s guilty verdicts embody the formidable commitment of the Tax Division, along with its partners in the United States Attorney’s Office and the IRS, to prosecute business owners, who cheat the tax system in violation of our criminal laws and in doing so also gain an unfair advantage over other small business owners,” stated Principal Deputy Assistant Attorney General Zuckerman.

“When criminals cheat the IRS, they rob all of us as taxpayers,” said U.S. Attorney Robert K. Hur. “Prosecutions like this demonstrate that we will not tolerate those who attempt to cheat the system and will hopefully deter others from stealing taxpayer funds.”

“Choosing not to pay your taxes and causing hardworking taxpayers to bear the brunt cannot be tolerated and today’s verdict reinforces that principle,” said Don Fort, Chief, IRS Criminal Investigation.  “The conviction of the Underwoods validates the most basic principle of our agreement with the American public that everyone must pay their fair share and we will hold those who cheat the system accountable.”

According to court documents and evidence presented in court, the Underwoods operated a used automobile parts and scrap metal business in Clinton under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts LLC.” The business purchased used and salvage cars, stripped the cars for parts to resell, and sold the remaining scrap metal to a Baltimore-based scrap yard.

The Underwoods requested to be paid in cash for their scrap-metal sales and conspired to conceal from the IRS their subsequent receipt of substantial amounts of cash.  The Underwoods filed a false amended individual income tax return for 2010 and false individual income tax returns for 2011 and 2012 with the IRS. The false tax returns did not include the full gross receipts from the sales.  The Underwoods also filed a false 2012 partnership tax return for their business that did not report all gross receipts of the business.

The Underwoods each face a maximum sentence of five years in prison for the conspiracy count and three years in prison for each count of filing a false tax return.  The Underwoods also face a term of supervised release and monetary penalties, including restitution.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David I. Salem and Trial Attorney Michael C. Vasiliadis of the Justice Department’s Tax Division, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Devon Dent, age 28, of Baltimore, Maryland to 14 years in federal prison, followed by five years of supervised release, for racketeering and drug conspiracies related to his participation in the gang activities of the Murdaland Mafia Piru (MMP), a subset of the Bloods gang.  Dent admitted that as part of his gang activities, he distributed crack cocaine for the gang and he was present when a MMP co-defendant attempted to kill a victim outside a Baltimore nightclub, shooting that person multiple times in the head and chest.  

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.

According to Dent’s plea agreement and court documents, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that operates in Maryland and elsewhere.  MMP was modeled after the Italian Mafia, and was organized hierarchically, with “the Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath.  For many years, MMP has controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, Woodlawn, and Walbrook Junction.  The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from Western Maryland and neighboring states.  MMP’s members enriched themselves through drug trafficking and other criminal activities, and using violence and threats of violence to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.

Dent admitted that he was a member of MMP and participated in the gang’s affairs through a pattern of racketeering activities, that included offenses involving drug distribution.  Specifically, as detailed in his plea agreement, on October 15, 2012, Dent was present when a co-defendant attempted to murder a victim, shooting him multiple times in the head and chest with a .45-caliber firearm outside Club Mirage in downtown Baltimore.  A closed-circuit television camera captured the incident, and showed Dent arriving at Club Mirage with four other MMP members, including one who was wearing a red shirt with the words “MOBB SQUAD” on the back and filmed the victim with a tablet device shortly before the shooting. 

On November 4, 2012, Dent possessed with intent to distribute roughly 12 grams of heroin and 21 grams of crack cocaine, as well as MMP paperwork.  The paperwork detailed the history and structure of the gang, as well as certain rules of conduct, including that “retaliation is a must,” and that “co-operation with authorities that lead[s] to incriminating others” is punishable by death.

On April 15 and April 22, 2015, Dent distributed crack cocaine on Gwynn Oak Avenue to an undercover officer who was wearing an audio-video recording device.

Twenty-five defendants have been convicted in the case, including five who were convicted by a federal jury on April 30, 2019 after a six-week trial.   

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.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.

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.

United States Attorney Robert K. Hur praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution.  Mr. Hur thanked Assistant United States Attorneys Christina A. Hoffman and Lauren E. Perry, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

# # #

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Daniel Mark Wilkerson, age 45, of Fort Washington, Maryland today to 66 months in federal prison, followed by five years of supervised release, for possession with intent to distribute more than 100 kilograms of marijuana, and in a separate case for conspiring to steal prescription drugs from federal military hospitals.  Judge Grimm also ordered that Wilkerson pay restitution of $4,450,679.60, and forfeit $16,320.44. 

The sentence was announced by United States Attorney for the District of Robert K. Hur; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid‑Atlantic Field Office; and Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations-Metro Washington Field Office.       

Wilkerson admitted that from January 2008 to June 11, 2013, he conspired with Rodger Gurdon, Issa Wasco Koroma, and others to steal Norditropon, Humatrope, Somatotropin, Botox and other branded varieties of human growth hormone from pharmacies located at Fort Belvoir Community Hospital in Fort Belvoir, Virginia; Walter Reed National Military Medical Center (Walter Reed) in Bethesda, Maryland; and the former Walter Reed Medical Center (Old Walter Reed) in Washington, D.C.  They re-sold the stolen pharmaceuticals for profit.

Gurdon and Koroma were pharmacy technicians at Old Walter Reed.  From January 2008 until the closure of Old Walter Reed, Gurdon stole Humatrope from the pharmacy and sold it to Wilkerson for no less than $100 per box.  The cost to the government for each box of Humatrope was approximately $300.  Between January 1, 2009 and June 30, 2011, the conspirators stole more than $2.1 million worth of Humatrope from Old Walter Reed.  After Old Walter Reed closed, Gurdon was assigned to work in the pharmacy at Fort Belvoir.  At Fort Belvoir Gurdon resumed his theft of HGH, which he distributed to Wilkerson in exchange for payment.  Between August 2011 and June 2013, Wilkerson and Gurdon stole more than $850,000 worth of pharmaceuticals from Fort Belvoir.

From January 2008 through June 2013, Koroma was a pharmacy technician at Walter Reed.  Beginning no later than the middle of 2011, Koroma began to steal brands of human growth hormones and Botox from the pharmacy at Walter Reed at Gurdon’s request.  Koroma met with Gurdon on a regular basis to exchange the drugs for payment from Gurdon.  Gurdon then distributed the drugs to Wilkerson.  From August 2011 to June 2013, Koroma and Gurdon stole over $1.3 million worth of pharmaceuticals from the pharmacy at Walter Reed.

Wilkerson shipped the stolen HGH and Botox to individuals in California, who paid Wilkerson by cash that was mailed to him from California, as well as by wire transfers from a bank in Mexico.

The total loss to the United States caused by Wilkerson, Gurdon, and Koroma was at least $4,467,000.

According to Wilkerson’s plea agreement in a second and unrelated case, on August 11, 2017, law enforcement officers executed a search warrant for a crate that had been shipped from California to a business in Baltimore and discovered 384 pounds (174 kilograms) of marijuana, worth more than $1 million.  Undercover officers conducted surveillance at the business in an effort to determine the identity of the person to whom the crate had been sent.  During their surveillance, Wilkerson, who was driving a red Hyundai, was seen driving in the vicinity of the business, and at one point, got out of his car and asked an officer if he was an employee at the business.  Later that day, the crate containing the marijuana was claimed by a man who arrived at the business in a pick-up truck with two other men.  The crate was placed into the truck and the men left the business, followed by law enforcement.  Officers stopped the vehicle, detained the men, and seized the crate containing the marijuana.  At the same time, another officer stopped Wilkerson, who was driving his Hyundai nearby.  Wilkerson admitted that the crate of marijuana was his and that he had hired the individuals to assist him in picking-up and transporting the crate.

Roger George Gurdon pleaded guilty to conspiracy to steal government property, interstate receipt of stolen property, and conspiracy to distribute marijuana, and was sentenced to 70 months in federal prison.  Issa Wasco Koroma, age 62, of Springdale, Maryland, pleaded guilty to conspiracy to steal government property and theft of medical products and was sentenced to five years in prison. 

United States Attorney Robert K. Hur praised the DCIS and FDA-OCI for their work in the investigation.  Mr. Hur thanked Assistant United States Attorney Thomas P. Windom, who prosecuted the case.

# # #

Baltimore, Maryland – Jay B. Ledford, age 55, of Westlake, Texas and Las Vegas, Nevada pleaded guilty today to conspiracy to commit wire fraud, aggravated identity theft, and a money-laundering transaction in excess of $10,000, arising from a $550 million investment fraud scheme that operated from 2013 through September 2018.  Co-defendants Kevin B. Merrill, age 53, of Towson, Maryland, and Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to their roles in the scheme.  The U.S. Securities and Exchange Commission (SEC) has filed a parallel civil complaint in this matter.             

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General. 

“Jay Ledford created false documents to help lure investors through an elaborate web of lies, duping them into paying millions of dollars into this Ponzi scheme,” said U.S. Attorney Robert K. Hur.  “The effects of this kind of fraud can be devastating.  As a result of this scheme, a number of victims have lost their life savings.  I am proud of the work of federal prosecutors, FBI agents, and our SEC partners whose efforts interrupted this ongoing fraud scheme before the defendants could victimize even more people.”

According to his plea agreement, Ledford was a certified public accountant in Texas, starting his own practice in Amarillo in 1996 and later expanding to Dallas, Texas.  In 1999, Ledford met Kevin Merrill in Dallas, when Merrill was a salesman for a Baltimore company that sold supplies for X-ray machines for hospitals and doctors’ practices.  Ledford and Merrill became friends, attending sporting events and visiting casinos together.  Ledford prepared Merrill’s taxes for several years.

As stated in his plea agreement, in 2001, Ledford began purchasing consumer debt portfolios, forming a company which did business as Platinum Capital Investments, to hold the debt portfolios.  “Consumer debt portfolios” are defaulted consumer debts to banks/credit card issuers, student loan lenders, and car/truck financers which are sold in batches called “portfolios” to third parties that attempt to collect on the debts.  Ledford also solicited investors to supply capital to buy a portfolio or invest in his company.  After learning of Ledford’s financial success with Platinum Capital, Merrill expressed interest in getting started in the business.  Ledford sold Merrill a few credit portfolios and introduced Merrill to his contacts with the debt reporting services.  Merrill formed his own debt collection business, had capital investors, and purchased debt portfolios.

Beginning in January 2013, Ledford and his co-conspirators perpetrated a Ponzi scheme to defraud investors of more than $394 million.  Specifically, Ledford and Kevin Merrill invited investors to join them in purchasing consumer debt portfolios.  Ledford provided fictitious sales agreements and other documents, including false tax returns, to Merrill, knowing that Merrill was using them to induce individuals to invest in his companies, Delmarva Capital and Global Credit Recovery.  For 2013, Merrill deposited approximately $4.3 million from investors, while Ledford raised just over $186,000 from investors.  Thereafter, Merrill’s superior sales ability caused Ledford to assume a background role supplying Merrill with fictitious documents, while Merrill was the “front man,” promoting the fraudulent investments to potential investors.

Specifically, the conspirators falsely represented to investors that they would use the investors’ money to buy consumer debt portfolios and make money for them by (1) collecting the payments that people made on their debts or (2) selling the portfolios for a profit to other third-party debt buyers, in a practice called “flipping.”  According to the related complaint in the civil action filed by the SEC, the victim investors included small business owners, restauranteurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, professional athletes, and financial advisors, located in Maryland, Washington, D.C., Northern Virginia, Denver, Texas, Chicago, New York, and elsewhere.

At today’s hearing, Ledford admitted that to induce investors to participate, he and his co-conspirators falsely represented who they were buying the debt portfolios from and how much they were paying for the portfolios, whether they were investing their own funds, and their track record of success. According to the plea agreement, sometimes there was no underlying debt portfolio purchased with the investors’ money.  To conceal the truth, Ledford, Merrill, and Jezierski, created imposter companies with names similar to actual consumer debt sellers or brokers and opened bank accounts in the names of those imposter companies.  In addition, to lend credibility to the transactions, Ledford created false portfolio overviews, sales agreements which used the names and forged signatures of actual employees of the sellers, created false collections reports, and falsified bank statements and merchant account reports.  In late 2014, Ledford transferred Cameron Jezierski to manage debt collections for Riverwalk/DeVille.  DeVille had a collections center in Euless, Texas, and the conspirators began to invite prospective investors to tour Riverwalk’s office and the collections center, which added substance to their claims regarding the success of their portfolio purchasing strategy and collections efforts.  In December 2017, Ledford recruited Jezierski to the criminal conspiracy because his analytical skills enabled him to contribute significantly to creating false documentation to induce investors to invest, and to conceal the mark-up Ledford and Merrill added to the purchase price charged to investors for debt portfolios.

Further, Ledford admitted that he and Merrill falsely represented that the monies the conspirators paid to investors were “proceeds” from collections and/or flipping debt portfolios, when in fact, the proceeds were paid from funds provided by other investors.  Merrill and Ledford provided monthly or quarterly reports to investors regarding the “purported progress of the portfolio and its recovery,” which Ledford and Merrill created.  From 2013 - 2018, the scheme to defraud took in over $394 million, and at the time of their arrests, the co-conspirators were attempting to obtain an additional $260 million from investors.  Ledford assisted Merrill to divert investors’ funds to purchase a home in Naples, Florida, and also helped Merrill falsisfy records to the bank lender.  Ledford diverted fraud proceeds to purchase and renovate a home in Las Vegas, Nevada, to refinance a home in Texas, to gamble at casinos, purchase luxury automobiles, jewelry, and to support a lavish lifestyle.

As part of his plea agreement, Ledford is required to pay restitution in the full amount of the victims’ losses and to forfeit property acquired with the proceeds of the offenses.  The U.S. District Court has appointed a receiver to marshal the assets for the benefit of the victims.

Anyone who thinks they may be a victim is urged to contact the FBI at www.FBI.Gov/MerrillLedford  or e-mail MerrillLedford@fbi.gov.

Ledford faces a maximum of 20 years in prison for the wire fraud conspiracy; a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft; and a maximum of 10 years in prison for money laundering, as well as a possible fine of $250,000, or twice the gross gain, for each of the three counts.  U.S. District Judge Richard D. Bennett has scheduled sentencing for October 29, 2019, at 10 a.m.

Kevin B. Merrill, age 53, of Towson, Maryland, and Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to their roles in the scheme.  Judge Bennett has scheduled sentencing for Merrill on October 10, 2019, at 9:30 a.m., and for Jezierski on August 12, 2019 at 3:00 p.m.  Kevin Merrill’s wife, Amanda Merrill, age 30 of Towson, Maryland, is charged with conspiracy to obstruct justice.  No court appearance is currently scheduled for Amanda Merrill.  Kevin Merrill and Ledford have been detained since their arrests on September 18, 2018, and Amanda Merrill and Cameron Jezierski are released under the supervision of U.S. Pretrial Services.

United States Attorney Robert K. Hur commended the FBI in Baltimore, Dallas, Las Vegas and Tampa; the Federal Housing Finance Agency, Office of the Inspector General; and the SEC for their work in this investigation.  Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Martin J. Clarke, who are prosecuting the criminal case.

# # #

Baltimore, Maryland – A federal grand jury has indicted Chad Arrington, a/k/a “Chad Focus,” age 31, of Randallstown, Maryland, on federal charges of conspiracy, wire fraud, and aggravated identity theft in connection with allegations that he used a company credit card to make over $4.1 million in unauthorized purchases.  The indictment was returned on May 29, 2019, and was unsealed at his initial appearance today.

The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office.

According to the indictment, Arrington was employed by Company 1 as a Search Engine Optimization (“SEO”) Specialist from approximately 2011 to August 2018.  As an SEO Specialist, Arrington was responsible for promoting and marketing Company 1’s products and services online.  Company 1 assigned Arrington an American Express company credit card (the “credit card”) after Arrington signed an agreement in which he agreed to use the credit card only for business expenses related to Company 1.

The indictment alleges that from at least January 2015 through August 2018, Arrington and four co-conspirators used the credit card for fraudulent purchases, including to promote the Chad Focus brand and to make unauthorized purchases that benefitted them each personally.  According to the indictment, Arrington used the credit card to make over $1.5 million in unauthorized purchases from entities and accounts controlled by Co-Conspirator 2 and Co-Conspirator 3, and then Co-Conspirator 2 and Co-Conspirator 3, in turn, kicked back hundreds of thousands of dollars to Arrington by funneling cash payments to Arrington and to accounts controlled by Arrington. 

For example, the indictment alleges that Arrington used the credit card to purchase sound equipment, studio kits, instruments, and music technology, which he then used to create an artist alter-ego “Chad Focus,” and produce a number of hip-hop songs through the company he formed, Focus Music Entertainment LLC.  Arrington allegedly used the credit card to make additional unauthorized purchases: from online streaming platforms that offered services for artists to pay to have the platforms artificially increase Arrington’s song play counts on other music platforms; to purchase “likes,” “followers,” “tags,” and “views” across social media and viewing platforms; to purchase services from a company that promoted mixtape videos and singles, his image, and music; and to make unauthorized payments to multiple billboard companies to display images of Arrington and his website throughout the United States and to promote Chad Focus and Focus Music Entertainment LLC.  Arrington allegedly utilized the credit card to make more than $250,000 in purchases related to a bike-sharing business, including electric bikes, hover boards, and scooters.  The indictment further alleges that Arrington used the credit card for concert tickets, various unauthorized international and national travel expenses, including hotels, airfare, restaurant bills, luxury vehicle rentals, and nightlife expenses, and for travel expenses and airline tickets for the benefit of Co-Conspirators 1 and 2.

In order to conceal the scheme, Arrington allegedly asked Co-Conspirator 1 and Co-Conspirator 4 to use computer software to make false entries on the credit card billing statements in order to conceal the recipient of the payments from Arrington’s supervisor and Company 1.  In addition, the indictment alleges that Arrington forged the signature of his supervisor on his credit card billing statements to make it appear as though he had received approval for certain purchases when, in fact, he had not.  According to the indictment, Arrington then sent those false payment authorizations to other employees who relied on the authorizations to ultimately pay off the outstanding balance of the credit card. 

If convicted, Arrington faces a maximum sentence of 20 years in prison for the wire fraud conspiracy and for each of two counts of wire fraud; and a mandatory minimum of two years in prison, consecutive to any other sentence, for each of four counts of aggravated identity theft.  At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Stephanie Gallagher ordered that Arrington be detained pending a detention hearing scheduled for June 7, 2019, at 2:00 p.m.

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 Robert K. Hur commended the FBI for its work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Derek E. Hines and Mary W. Setzer, who are prosecuting the case.

# # #

Baltimore, Maryland – As the Department of Justice continues its efforts to fulfill President Donald J. Trump’s commitment to reducing violent crime in America, Attorney General William P. Barr today announced that the city of Baltimore, Maryland was selected to join the National Public Safety Partnership (PSP) initiative. PSP provides a framework for enhancing federal support of state, local and tribal law enforcement officials and prosecutors as they aggressively investigate and pursue violent criminals, specifically those involved in gun crime, drug trafficking, and gang violence.

“The Public Safety Partnership is a successful program that directs federal law enforcement resources to the cities where they can have the greatest impact,” Attorney General Barr said. “These resources help police departments to diagnose where crime is highest—and why—and to find, arrest and prosecute criminals. Several participating cities have already seen dramatic reductions in violent crime over the past two years. As we expand this program to 10 more cities across America, we are determined to replicate that success.”

U.S. Attorney Robert K. Hur stated, “Violent crime in Baltimore, especially gun crime, takes far too many lives and undermines our ability to educate our children and build thriving businesses.  Federal, state, and local law enforcement are united in our commitment to get guns and violent criminals off our streets and to reduce violent crime in our neighborhoods.  All hands are on deck to make Baltimore safer, and the technical assistance available to Baltimore as part of the Justice Department’s Public Safety Partnerships will be crucial to our efforts.”

The Justice Department created PSP and the Task Force on Crime Reduction and Public Safety in response to President Trump’s February 9, 2017, Executive Order charging the agency with leading a national effort to combat violent crime. In June 2017, the Department of Justice announced the formation of the National Public Safety Partnership initiative.

To be considered for selection, a site must have sustained levels of violence that far exceed the national average and demonstrate a commitment to reducing crime. Cities must also display compliance with federal immigration requirements.

The 10 sites announced today are as follows:

• Anniston, Alabama
• Oxford, Alabama
• Anchorage, Alaska
• Davenport, Iowa
• Wichita, Kansas
• Baton Rouge, Louisiana
• Baltimore, Maryland
• Cleveland, Ohio
• Amarillo, Texas
• Harris County, Texas
             
  More than 30 cities have participated in PSP. The primary participating Justice Department components include the Office of Justice Programs, Office on Violence Against Women, Office of Community Oriented Policing Services, Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, U.S. Drug Enforcement Administration and U.S. Marshals Service.
   

More information about PSP can be found at: http://www.nationalpublicsafetypartnership.org.

# # #

Baltimore, Maryland – Former Baltimore Police Sergeant Keith Allen Gladstone, age 51, of New Park, Pennsylvania, pleaded guilty today to conspiracy to deprive civil rights, in connection with planting evidence at a crime scene.  As part of his plea, Gladstone also admitted that he told a witness to lie about the event if questioned by law enforcement.

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office.

“Prosecuting criminals who work in police agencies is essential both to protect our communities and to support the many honorable officers whose reputations they unfairly tarnish,” said U.S. Attorney Robert K. Hur.

Keith Allen Gladstone joined the Baltimore Police Department (BPD) as an officer on November 20, 1992, and was promoted to Sergeant on December 16, 2011.  Gladstone retired from the BPD on December 25, 2012, but was subsequently reinstated as a Sergeant on December 9, 2013.  In March 2014, Gladstone was the officer-in-charge of a Special Enforcement Section (SES) unit assigned to BPD’s Western District.  Gladstone retired from the BPD for a second time on May 1, 2017.

According his plea agreement, on the evening of March 26, 2014, Gladstone, who was on duty, was having dinner with Officer 1 when he received a call on his cell phone from a sergeant in the BPD who was in a panic because he had just run over an arrestee, D.S., in the front yard of a home in Northeast Baltimore.  Gladstone obtained a BB gun from another officer, then drove with Officer 1 to the site of D.S.’s arrest on Anntana Avenue and Belair Road in Northeast Baltimore City.  Gladstone admitted that he dropped the BB gun near a pickup truck where D.S. lay injured on the ground.  Gladstone told the sergeant, in Officer 3’s presence, “it’s over by the truck,” or words to that effect.  The BB gun was then seen by another BPD officer and ultimately recovered by the BPD’s crime lab unit.  Based on a false statement of probable cause written by the sergeant in another officer’s name, D.S. was subsequently charged in Maryland state court with possession, use, and discharge of a gas or pellet gun, for the BB gun that Gladstone planted at the scene of D.S.’s arrest, and a number of drug offenses.  D.S. was detained on those charges until at least April 2, 2014.  On January 16, 2015, the charges were disposed of by nolle prosequi, which is a form of dismissal.

As a result of his actions, Gladstone conspired to deprive D.S. of his liberty without the due process of law, and conspired to commit offenses against the United States, specifically to impede, obstruct, and influence an investigation.

As detailed in his plea agreement, after the sergeant and six other officers who had been members of the GTTF were arrested on federal racketeering charges, Gladstone and Officer 1 arranged to meet in person.  Gladstone arranged for the meeting to take place in a swimming pool, to ensure that Officer 1 was not wearing a recording device.  Gladstone admitted that during the meeting, he told Officer 1 that if questioned by federal law enforcement about the events on March 26, 2014, Officer 1 should tell federal investigators that Gladstone and Officer 1 were at the crime scene for “scene security,” which Officer 1 knew was not true.  Gladstone also told Officer 1 to tell law enforcement that Gladstone had gotten the BB gun from his trunk, which was also not true, since Gladstone and Officer 1 had obtained the gun from another officer.   

Gladstone faces a maximum sentence of 10 years in prison for conspiracy to violate civil rights.  U.S. District Judge Catherine C. Blake has scheduled sentencing for September 13, 2019, at 9:15 a.m. 

United States Attorney Robert K. Hur commended the FBI for its work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting the case.

# # #

Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Steven M. Williams, a/k/a “Brother Ray,” a/k/a “Ray,” age 39, formerly of Delaware, today to 25 years in federal prison, followed by 10 years of supervised release, for sex trafficking of a child by force, fraud, and coercion.  Upon his release from prison, Williams will be required to register as a sex offender in the places where he resides, where he is employed, 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 Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Matthew Donnelly of the Elkton Police Department.

“Children cannot consent to have sex for money.  Human traffickers such as Steven Williams compel their victims to work for little or no compensation, often using violence and threats to force their victims to engage in prostitution,” said U.S. Attorney Robert K. Hur.  “This lengthy sentence should send a powerful message that sex trafficking will not be tolerated in Maryland. Through the Maryland Human Trafficking Task Force, law enforcement is working with non-profit organizations to help human trafficking victims and prosecute the traffickers.  Working to end human trafficking is a priority for the Maryland U.S. Attorney’s Office.”

According to his plea agreement, the victim, Girl 1, engaged in commercial sex acts with men in Delaware, along with Williams’ co-defendant Jessica L. Schaefer, an adult.  Girl 1 was 15 years old and a resident of Pennsylvania, but lived with her father in Delaware.  Schaefer posted ads of herself for commercial sex purposes.  Williams responded to one of the ads and determined that Schaefer and Girl 1 would work for him.  Williams provided Schaefer and Girl 1 with crack cocaine and they were eventually in debt to Williams.  Girl 1 and Schaefer then engaged in commercial sex acts to pay off their debt to Williams.  Girl 1 and Schaefer gave any proceeds earned from performing commercial sex acts to Williams.  To facilitate the commercial sex acts, Williams rented hotel rooms in his name or the names of men paying for the commercial sex acts, and co-defendant Harry Rivers provided narcotics to the females and their customers, and helped to arrange “dates” for the females.

In July 2017, Williams drove Girl 1 from Delaware to Elkton, Maryland, separating her from Schaefer.  Girl 1 woke up in a motel in Elkton with another adult sex worker, AH.  At Williams’ direction, AH posted an ad featuring a picture of Girl 1 on a website used to advertise and solicit for commercial sex, including the sexual exploitation of minors.  While in Maryland, Girl 1 performed commercial sex acts and gave the monies she earned to Williams.  Williams physically abused Girl 1 when he thought she was not giving him all the money she earned, and also displayed his firearm.

On July 13, 2017, Girl 1 attempted to leave and hid in AH’s hotel room.  Williams, Rivers, and Schaefer traveled from Newark, Delaware to Elkton, to take Girl 1 back to Delaware, to ensure that she did not leave Williams’ employ.  Williams and Rivers each had a firearm which they used to threaten AH, demanding that she produce Girl 1.  Schaefer had a taser, which she ignited, barged into AH’s room, and took Girl 1 from the room against her will.  Williams and his co-defendants drove Girl 1 back to Delaware so that she could continue to engage in commercial sex acts. 

On July 14, 2017, AH reported the abduction of Girl 1 to law enforcement.  Girl 1 was located and rescued in Newark, Delaware the next day, and the defendants were arrested.

Co-defendant Harry E. Rivers, a/k/a “Hakeem” and “Pots,” age 29, also of Delaware, pleaded guilty to conspiracy to commit sex trafficking of a child and was sentenced to 12 years in federal prison.   Jessica L. Schaefer, a/k/a “Tutti,” age 24, of Pennsylvania, also pleaded guilty to conspiracy to commit sex trafficking of a child and is scheduled to be sentenced on June 6, 2019.

This case was investigated by 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.

U.S. Attorney Robert Hur commended the FBI and the Elkton Police Department for their work in the investigation and thanked the Newark (Delaware) Police Department, the Wilmington (Delaware) Police Department, the Cecil County Department of Social Services, the Cecil County State's Attorney's Office, and the Delaware Department of Justice for their assistance.  Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Zachary A. Myers, who are prosecuting the case.

# # #

Baltimore, Maryland – HyperHeal Hyperbarics, Inc. (“HyperHeal”) has agreed to pay $414,640.25 to settle claims that it submitted false claims to the United States for physician services that were not rendered and for medically unnecessary hyperbaric oxygen therapy.  HyperHeal is a hyperbaric oxygen therapy facility that provides hyperbaric oxygen therapy to patients at multiple locations in Maryland.

The settlement was announced today by United States Attorney for the District of Maryland Robert K. Hur and Robert Craig, Special Agent in Charge for the Defense Criminal Investigative Services, Mid-Atlantic Division.   

“The U.S. Attorney’s Office for the District of Maryland is committed to thoroughly investigating claims of fraud and holding health care providers accountable when they subject their patients to unnecessary medical treatment and waste taxpayer dollars.” said U.S. Attorney Robert K. Hur. 

According to the settlement agreement, the United States contends that from March 2013 to November 2014, HyperHeal submitted claims for one patient to TRICARE for hyperbaric oxygen therapy as if that therapy were supervised by a physician when, in fact, no physician supervised the therapy.  HyperHeal, through its former president and part-owner, Eric Shapiro, prepared bills indicating that the therapy was supervised by a physician when it was not supervised by a physician.  During the same time period and for the same patient, HyperHeal submitted claims to TRICARE for medically unnecessary hyperbaric oxygen therapy.  No qualified medical professional evaluated the patient’s condition throughout the treatment.  Instead, Shapiro, who was a hyperbaric oxygen therapy technician, directed the patient’s treatment and obtained authorization for continued treatment by sending misleading documents to TRICARE. 

The settlement resolves a lawsuit brought by whistleblowers, Lesa Schrum and Juliette Skelton, who are former employees of HyperHeal.  The lawsuit, which was filed in the District of Maryland in 2016, alleges that HyperHeal and Shaprio submitted or caused the submission of false claims to the United States for hyperbaric oxygen therapy services that were not medically necessary, for hyperbaric oxygen therapy services that were not properly supervised by a physician, and for hyperbaric treatment which was not provided.  As part of the settlement, the whistleblowers will receive $74,635.25.

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

U.S. Attorney Robert K. Hur commended the Defense Criminal Investigative Service for its investigation and thanked Assistant United States Attorneys Matthew P. Phelps and Roann Nichols, who handled the case.

# # #

Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Erick Rahumid Hobbs, a/k/a Eric Muhammad, age 39, of Baltimore, Maryland, today to 198 months in federal prison, followed by five years of supervised release, for illegally possessing a firearm and ammunition.  Hobbs was previously convicted of a felony and was therefore prohibited from possessing firearms or ammunition.  A federal jury convicted Hobbs on March 6, 2019, after a three-day trial.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Terrence B. Sheridan of the Baltimore County Police Department.

“Erick Hobbs knew that he was prohibited from possessing firearms or ammunition.  Far too many people are making the bad choice to carry and use guns,” said U.S. Attorney Robert K. Hur.  “Hopefully criminals who are not deterred from carrying guns by the threat of prison can be deterred by the reality of years spent in a federal prison far from home, where there is no parole—ever.”

According to the evidence presented at his trial, between October 2017 and January 2018, Hobbs was dating a woman and gave the woman’s daughter a television as a gift.  After the woman broke off their relationship, Hobbs demanded that the woman return the television, even though Hobbs had given it as a gift to her daughter.

The evidence proved that on February 3, 2018, Hobbs broke a rear kitchen window to gain access to the woman’s home.  When the woman and her daughter came downstairs to investigate the noise, Hobbs ordered them at gunpoint to open the front door, and he threatened to kill the woman, her daughter, her family, and the police.  The woman unlocked the front door.  Hobbs, still armed with the gun, forced his way into the residence, then left with the television.  The woman called the police to report the incident.

On February 4, 2018, law enforcement located Hobbs in his vehicle and attempted to stop it.  Hobbs fled and rear-ended a van nearby.  Hobbs got out of his vehicle and was arrested.  Officers recovered a loaded 9 mm pistol from the ground by the driver’s side door of Hobbs’ vehicle, where Hobbs was standing at the time of his arrest.  

Later that day, Hobbs was captured on recorded jail calls talking to his son and roommate. During one of those calls, Hobbs provided his son with the victim’s address and directed his son to give the address to Hobbs’ roommate who is “gonna take care of it from there.”  Hobbs’ son promptly went to Hobbs’ residence and provided his phone to Hobbs’ roommate so he could talk to Hobbs.  On a recorded jail call, Hobbs spelled out the victim’s first and last name for his roommate and directed his roommate to get the victim’s address from his son.  On the same recorded jail call, Hobbs told his roommate that he needed someone to talk with the victim and suggested Facebook as means to contact her.  The roommate agreed and subsequently sent the victim communications via Facebook.  The victim notified the Baltimore County Police Department of the Facebook communications and was relocated due to concerns for her safety.

On February 5, 2018, law enforcement obtained a warrant to search Hobbs’ residence and seized 65 rounds of 9 mm ammunition—the same type of ammunition inside of the firearm—from Hobbs’ bedroom dresser, and a paper with the victim’s address written on it from the roommate’s bedroom. 

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 Robert K. Hur commended the ATF and the Baltimore County Police Department for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Samika N. Boyd and Christine Goo, who prosecuted the case.

# # #

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Kirk Gross, age 32, of Baltimore, Maryland, today to 16 years in federal prison, followed by five years of supervised release for being a felon in possession of a firearm. 

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.

“Kirk Gross is an armed career criminal with a history of committing violent gun crimes in Baltimore,” said U.S. Attorney Robert K. Hur.  “Now he will spend 16 years in federal prison, where there is no parole—ever.  We will continue to work with our law enforcement partners to remove violent gun-toting criminals from our communities.  The message to armed criminals is, put down the guns and save a life—maybe even your own.” 

According to his guilty plea, in the late morning on June 12, 2018, detectives from the Baltimore City Police Department (“BPD”) Eastern District Action Team (“DAT”) received information that an individual named “Kirk Gross” was carrying a firearm in the area of Pittman Place and Barclay Street in East Baltimore.  The DAT Detectives responded in two separate vehicles. 

Driving north on Barclay Street, the detectives observed an individual wearing all black with a companion walking north on the west side of the street.  This individual, later identified as Kirk Gross, was wearing tight-fitting clothes that enabled the officers to see the contours of a firearm—specifically the barrel and handle—pressed into the pants. 

As soon as two detectives exited the vehicle, Gross fled west on McAllister Street, with detectives pursuing him.  The detectives shouted for Gross to stop as he unsuccessfully tried to remove and discard the firearm.  As the pursuit continued, unbeknownst to everyone involved, a Metropolitan Transit Authority Officer was on the street conducting an unrelated investigation.  Hearing the shouts of the officers and observing Gross flee from them while holding his waistband, that officer ran southeast across E. North Avenue and tackled Gross to the ground. 

Body-worn camera footage captured most of the chase and all of the arrest.  Upon apprehending Gross, the detectives searched him and retrieved a 9 mm semiautomatic pistol from Gross’ pants.  Officers also recovered a total of approximately 2.28 grams of cocaine in a Ziploc bag with multiple baggies as well as $40.00 in cash. 

Gross knew that as a result of his previous felony convictions, including three armed robberies, one using a machine gun, and a shooting, he was prohibited from possessing a firearm.

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 Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation, and thanked the Metropolitan Transit Authority Police for its assistance.  Mr. Hur thanked Assistant U.S. Attorney Lindsey N. McCulley, who prosecuted the case.

# # #

Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Leon R. Harrison, age 56, of Washington D.C., to 10 years in federal prison, followed by lifetime supervised release for sex trafficking of a minor, for having sex with a 15-year-old girl in exchange for money. Judge Blake also ordered that, upon his release from prison, Harrison must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of ICE Homeland Security Investigations (HSI); Chief Tim Altomare of the Anne Arundel County Police Department; and Anne Arundel County State’s Attorney Anne Colt Leitess.

“Children cannot consent to have sex for money, and any adult, like this defendant, who encourages or profits from sexual exploitation of children faces a lengthy term in federal prison,” said U.S. Attorney Robert K. Hur.

According Harrison’s plea agreement, between August 9, 2016 and February 7, 2018, Harrison used his Facebook account to send messages to hundreds of other Facebook users, offering them money in exchange for sending him sexually explicit pictures, watching him masturbate, or meeting with him in person to engage in commercial sex. Several Facebook users told Harrison that they were under 18 years old, and as young as 12 years old.  Harrison continued to make the requests even after they stated that they were minors.

Harrison admitted that he met Girl 1 online and began engaging in commercial sex with Girl 1 beginning in 2016 or 2017, when she would have been 13 or 14 years old.

On October 9, 2017, Harrison and Girl 1 reconnected on Facebook, after a period of not communicating with each other.  Between October 9, 2017, and February 7, 2018, Harrison and Girl 1 exchanged hundreds of messages over Facebook.  At that time, Girl 1 was at a 15-year-old tenth-grade student in Maryland.  In the messages, Harrison repeatedly offered to pay Girl 1 in exchange for having sex with him.  In twelve instances, Harrison offered her between $40 and $60 for sex.

On February 6, 2018, Girl 1’s mother discovered the Facebook messages and contacted the police.  That day, an undercover police detective began operating Girl 1’s Facebook account.

On February 7, 2018, Harrison continued communicating with Girl 1’s Facebook account.  Harrison stated that he would meet with Girl 1 that evening, and that he would bring money and condoms.  Harrison stated he would pay Girl 1 $50 to have sex with him and made arrangements to meet with Girl 1 at a restaurant in Odenton, Maryland.  Harrison agreed that he would get Girl 1 home before 1:00 a.m. because it was a “school night.”  Harrison described the sex acts he wished to engage in with Girl 1 and what he wanted her to wear when they met.  Harrison also asked to engage in sexual contact with Girl 1 without a condom.

When he arrived at the restaurant, Harrison had condoms, $50 in cash, and two 50ml bottles of flavored vodka in his pants pockets.  Harrison was arrested in the parking lot.  Following his arrest, Harrison was interviewed by law enforcement officers and admitted that he is HIV-positive, and that he does not disclose that fact to his sexual partners.         

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 Robert K. Hur commended HSI, the Anne Arundel County Police, and the Anne Arundel State’s Attorney’s Office for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.

# # #

Greenbelt, Maryland – George Sambuca, age 33, of Philadelphia, Pennsylvania, formerly of Henderson, Nevada, pleaded guilty today to distribution of anabolic steroids and to introduction of misbranded drugs into interstate commerce with intent to defraud and mislead. 

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office.

“Offering U.S. consumers misbranded drugs online is a dangerous practice that places the public at risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to protect U.S. consumers by investigating and bringing to justice those who defraud the public and circumvent federal law regarding the approval, manufacture, and distribution of human drugs.”

According to his plea agreement, from September 2016 through June 2017, Sambuca distributed anabolic steroids and other body-enhancing injectable drugs to consumers seeking to enhance their physiques.  Sambuca admitted that he knew the anabolic steroids and other drugs that he distributed were misbranded within the meaning of the Food, Drug, and Cosmetic Act (FDCA) because they bore false labeling and lacked adequate directions for use, warnings, and other information such as expiration dates.  The anabolic steroids that Sambuca distributed included Testosterone, Nandrolone, Stanozolol, Oxandrolone, and Oxymetholone, all of which are controlled substances.

Sambuca distributed anabolic steroids and other misbranded drugs for a company known as Dynasty Lab, which he knew sought buyers for these products by placing advertisements on bodybuilding websites and online forums, and by sending blast e-mail advertisements to customers.  

In September 2016, a law enforcement officer acting in an undercover capacity received an unsolicited e-mail from Dynasty Labs in his “inbox” on a website known for promoting unapproved and misbranded underground drug lab sales.  The message from Dynasty Labs promoted a “7 day super sale.”  In response, on September 12, 2016, the undercover officer contacted Dynasty Labs via undercover e-mail and received a reply e-mail the same day promoting, among other drugs, Viagra, Cialis, Trestalone, Dihydroboldenone.  A subsequent e-mail from Dynasty Labs requested that the undercover officer use a specific e-mail provider for “Security,” and undercover officer thereafter registered an undercover e-mail address at that provider.

On November 1, 2016, the undercover officer sent an e-mail to Dynasty Labs ordering anabolic steroids and other misbranded drugs. Dynasty Labs replied with specific payment instructions, including that the payment be made in cash and be sent through the mail.

The undercover officer made the payment as requested and as a result, on November 14, 2016, Sambuca mailed a package from Nevada to Maryland containing, among other items, seven vials labeled “TEST SUSTANON 350MG” containing Testosterone, and seven vials labeled “DECA DURABOLIN 400MG” containing Nandrolone.  The steroids were misbranded within the meaning of the FDCA.

On May 15, 2017, the undercover officer e-mailed Dynasty Labs and ordered numerous anabolic steroids and other drugs.  On May 20, 2017, Dynasty Labs replied with specific mailing instructions that directed the undercover officer to send $715 in cash to “Steven Thompson” at an address in Henderson, Nevada.  On May 22, 2017, the undercover officer sent the cash as directed.

Sambuca admitted that, as a result, on June 16, 2017, he again mailed a package from Nevada to the undercover officer in Maryland containing, among other things, one ziplock bag of white powder labeled “DBOL 5g” containing Stanozolol, Oxandrolone, and Oxymetholone; one ziplock bag of white powder labeled “CLOMID” containing Stanozolol; and one vial labeled “SUSTANON 350MG/ML . . . 100cc” containing Testosterone.  The steroids were misbranded within the meaning of the FDCA.

Sambuca faces a maximum sentence of 10 years in prison for distribution of anabolic steroids, and a maximum of three years in prison for introduction of misbranded drugs into interstate commerce.  U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 15, 2019 at 9:30 a.m.

United States Attorney Robert K. Hur commended the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office for its work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Kelly O. Hayes, who are prosecuting the case.

# # #

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Kevin J. Gorbsky, age 32, of Bowie, Maryland, to 239 months in federal prison, followed by lifetime supervised release, after Gorbsy pleaded guilty to five counts of enticement of a minor to engage in unlawful sexual activity.  Judge Chasanow also ordered that, upon his release from prison, Gorbsky must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The guilty plea and sentence were announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Commanding General David P. Glaser of the U.S. Army Criminal Investigation Command.

“Kevin Gorbsky took advantage of the anonymity of the Internet to sexually exploit young girls, many of whom were especially vulnerable,” said U.S. Attorney Robert K. Hur.  “We will do all we can to find and prosecute these predators to prevent more children from being abused.”

According to his plea agreement, Gorbsky was a Captain in the United States Army, stationed in Kuwait in September 2015, and in Anne Arundel County, Maryland, beginning in July 2016, where he was assigned to work at a secure facility.  Gorbsky created and used e-mail accounts “Justin Smelder” and “John Bbeez,” and a social media account, “johnbeez66.”  Beginning in October 2015 and continuing through at least January 8, 2018, Gorbsky used those accounts to engage in online chat with hundreds of other users, many of whom identified themselves as minors between 12 and 17 years old.  Gorbsky told many of the individuals he chatted with that he was 19 years old, when in fact, he was between 28 and 31 years old.  Gorbsky’s chats with the users were sexually explicit.  Gorbsky repeatedly persuaded, enticed, and coerced the other users to send him sexually explicit images and to engage in sexually explicit video chat with him.  Gorbsky sent many of the users sexually explicit images and videos of himself.  On numerous occasions, Gorbsky accessed his accounts and engaged in sexually explicit chats using the unclassified computer system at his workplace.

Specifically, Gorbsky admitted that from September 22, 2017 through January 3, 2018, Gorbsky engaged in sexually explicit communications with a girl who said she was 12 years old, including during times the girl stated she was in school.  Gorbsky repeatedly asked the girl for sexually explicit images.  At Gorbsy’s request, he and the girl also engaged in video chat calls during which they engaged in sexually explicit conduct.  On October 26, 2017, Gorbsky e-mailed a sexually explicit video of himself to the girl. 

Further, as detailed in his plea agreement, between October 5, 2017 and January 3, 2018, Gorbsky also engaged in sexually explicit chat with four other girls who stated in their chats that they were ages 13, 17, 17, and 15, respectively.  Gorbsky repeatedly asked the girls to send him sexually explicit images of themselves and to engage in sexually explicit video chat with him.  All of the girls sent Gorbsky sexually explicit pictures of themselves and the 15-year-old victim also engaged in a video chat during which she and Gorbsky engaged in sexually explicit conduct.  During Gorbsky’s conversations with the 13-year-old girl, the girl commented to Gorbsky on numerous occasions that she was suicidal.  Gorbsky admitted that he ignored her statements about self-harm and instead redirected the conversation back to sexually explicit matters.  Gorbsky also e-mailed sexually explicit videos of himself to one of the girls who was a 17-year-old special needs student. 

According to his plea agreement, Gorbsky induced at least eight other users who identified themselves as minor females to send him sexually explicit images and/or to engage in sexually explicit video chat with him.  Five of those users have been identified as then-minor girls living in Pennsylvania, Connecticut, Arkansas, and California.  These victims were between 14 and 17 years old at the time of the offenses.

One 15-year-old female’s father discovered her communications with Gorbsky.  He sent Gorbsky a message stating, “This [victim's] dad. You are talking and trading sexual pics with a minor. She is 15. Your profile and email are being sent to police and other authorities to take action.”  Despite this, Gorbsky admitted that he continued to communicate with the minor female, including asking her to send him sexually explicit images and to engage in sexually explicit video chat with him.

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 Robert K. Hur commended the FBI and Army CID for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Zachary A. Myers and Derek E. Hines, who prosecuted the federal case.

# # #

Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced former Baltimore Police Detective Jemell Lamar Rayam, age 38, of Owings Mills, Maryland, to 12 years in federal prison, followed by three years of supervised release, for a racketeering conspiracy, including multiple robberies, and overtime fraud. 

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office.

“This case exposed crime and corruption being committed by those sworn to uphold the law and protect citizens,” said U.S. Attorney Robert K. Hur.  “We will prosecute criminals whether they wear a badge or not.”

Rayam joined the Baltimore Police Department on July 12, 2005 and was later assigned to the Gun Trace Task Force (GTTF), a division of the Baltimore Police Department. According to his plea agreement, Rayam schemed to steal money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, Rayam prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents. The false reports concealed the fact that Rayam and his co-conspirators had stolen money, property, and narcotics from individuals.

According to his plea agreement, beginning in 2009, Rayam robbed civilians he detained and in some cases arrested and stole money and drugs from them.  Rayam shared the proceeds with co-defendants Momodu Gondo, Wayne Jenkins, Daniel Hersl, Marcus Taylor, and others, and on other occasions, he kept all of the proceeds for himself.  Rayam also sold, through associates of his, drugs that Jenkins stole from detainees and arrestees, gave them to Rayam, and split the proceeds of those sales with his co-defendant. 

Rayam participated in 15 robberies from June 2014 through October 2016. Rayam admitted that he was armed with his BPD service firearm during the robberies, that individual victims of the robberies were physically restrained to facilitate the commission of the offense, and that he authored false and fraudulent incident reports and other official documents in some cases in order to conceal his criminal conduct and otherwise obstruct justice.

Rayam also robbed detainees and arrestees with another police officer, who was not a member of the GTTF.  Rayam and this other police officer would falsely represent that they had a search warrant, when they did not, in order to gain access to someone’s home and would then steal money and other things of value.  In addition, Rayam had an associate who would inform him when a drug dealer had a significant amount of cash in his home and when the associate knew that the drug dealer would not be in the home.  Rayam would then rob the drug dealer’s home with the assistance of other associates of his who were not police officers. 

On October 5, 2016, Rayam and his co-conspirators robbed a drug dealer after he and Gondo placed a tracking device on the victim’s car without court authorization so that they could rob his apartment when he was not home.  Rayam and Glen Kyle Wells entered the victim’s apartment.  Rayam was wearing a ski mask and was armed with a BPD-issued firearm. Rayam and Wells stole a Rolex watch, a firearm, $12,000 to $14,000 in cash, and at least 800 grams of heroin.  After the robbery, Rayam and his co-conspirators split the money they had stolen.  Wells took the drugs and money, and Wells sold some of the drugs and gave Rayam a portion of the proceeds.  Wells then gave Rayam a quantity of drugs that he had been unable to sell, which Rayam in turn sold through an associate. 

On June 27, 2014, Rayam and his co-defendants executed a search and seizure warrant at a store that sold birdseed.  No illegal contraband or firearms were found at the location.  The storeowners, a married couple, had $20,000 in cash at the store that they intended to use to pay off tax liabilities they owed on two homes. Rayam later contacted two associates and agreed to rob the home of the storeowners.  The associates presented themselves as police officers and stole $20,000, while Rayam remained in the car so he could intercept the police officers that responded to the incident by pretending to respond to the incident himself.  Rayam split the proceeds with his associates.

Rayam admitted that on March 11, 2015, he, Gondo, former Sergeant Thomas Allers, and another person, who was not a police officer, searched a residence and discovered a large quantity of cash.  Rayam took between $8,000 and $10,000 of the cash. Gondo and Allers also took some of the cash. 

As detailed in his plea agreement, on July 8, 2016, Rayam and his co-defendants Hersl and Gondo detained two victims after a car stop.  Rayam stole money from one of the victims. At Jenkins’s direction, Hersl, Rayam, and Gondo transported the two victims to a BPD office to interrogate them.  Jenkins told his co-conspirators to treat him like he was the U.S. Attorney.  After speaking with one of the individuals, Jenkins, Hersl, Gondo, and Rayam then transported both of the victims to their home and robbed them of $20,000 among themselves.  Jenkins, Hersl, Rayam, and Gondo divided the $20,000.  Rayam authored a false incident report to conceal the stolen money, which Jenkins approved.

According to the statement of facts agreed upon as part of Rayam’s plea, in the fall of 2016, Jenkins approached Rayam and asked him to sell drugs that Jenkins had stolen from detainees.  Rayam agreed and sold the drugs Jenkins gave him and shared the proceeds with Jenkins.  Jenkins maintained that Rayam owed him money for drugs that Jenkins had given him.  After seizing a firearm and marijuana, Jenkins told Rayam to sell the firearm and marijuana in order to pay Jenkins the money that Jenkins believed Rayam owed him.  Gondo subsequently arranged for an associate of his, who was a drug dealer, to buy the firearm and marijuana.  Gondo’s associate gave Rayam money for the sale of the firearm and marijuana. 

Rayam also admitted that he routinely submitted false and fraudulent individual overtime reports defrauding the Baltimore Police Department and the citizens of the State of Maryland.  On these reports, Rayam falsely certified that he worked his entire regularly assigned shifts, when he did not, and that he worked additional hours for which he received overtime pay, when he had not worked all and in some cases any of those overtime hours.  Rayam also admitted that he submitted false and fraudulent overtime reports on behalf of his co-defendants.

Lastly, Rayam admitted to obstructing law enforcement by alerting his co-defendants about potential investigations of their criminal conduct, coaching them to give false testimony to investigators from the Internal Investigations Division of the BPD, and turning off his body-worn cameras to avoid recording encounters with civilians. 

A total of eight former members of the BPD Gun Trace Task Force were convicted for racketeering and related charges.  Former Baltimore Police Sergeant Wayne Earl Jenkins, age 38, of Middle River, Maryland was sentenced to 25 years in federal prison for a racketeering conspiracy, racketeering, two counts of robbery, destruction, alteration, or falsification of records in a federal investigation, and four counts of deprivation of rights under color of law. Former Detectives Daniel Thomas Hersl, age 49, of Joppa, Maryland and Marcus Roosevelt Taylor, age 32, of Glen Burnie, Maryland, were convicted after a three-week trial and were each sentenced to 18 years in federal prison, for racketeering conspiracy and racketeering offenses, including overtime fraud, and robbery. Former Sergeant Thomas Allers, age 49, of Linthicum Heights, Maryland was sentenced to fifteen years in prison, for racketeering conspiracy and racketeering offenses, including nine robberies.  Former Detective Momodu Gondo, age 36, of Owings Mills, was sentenced to 10 years in federal prison for a racketeering conspiracy and for conspiracy to distribute and possess with intent to distribute heroin.  Former Detectives Evodio Hendrix, age 34, of Randallstown, Maryland, and Maurice Kilpatrick Ward, age 39, of Middle River, were each sentenced to seven years in federal prison, after pleading guilty to a racketeering conspiracy, including several robberies and overtime fraud.

United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted this Organized Crime Drug Enforcement Task Force case.

# # #

Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Eric Wayne Grinder, age 36, of Westminster, Maryland, to 30 years in prison, followed by lifetime supervised release for five counts of production of child pornography, one count of attempted production of child pornography, two counts of possession of child pornography, and witness tampering.  A federal jury convicted Grinder on those charges on February 25, 2019.  Judge Blake also ordered that, upon his release from prison, Grinder must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Sheriff James T. DeWees of the Carroll County Sheriff’s Office.

According to the evidence presented at his three-day trial, from June 2013 through August 2016, Grinder sexually abused a minor female when the girl was between seven and nine years old, and produced images of himself and the minor engaged in sexually explicit conduct. Further, Grinder used his laptop computer and cellular phone to store and obtain images documenting the sexual exploitation of prepubescent minors, including the victim.

The evidence also proved that Grinder wrote a letter to an individual in July 2017, in which he asked that person to manipulate the victim into saying that she took the produced images of the abuse, not Grinder.  Further, Grinder repeatedly attempted to contact and manipulate the victim’s mother.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.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 Robert K. Hur commended HSI, the Maryland State Police, the Carroll County Sheriff’s Office, and the Carroll County State’s Attorney’s Office for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Paul Riley and Paul Budlow, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Loren Young Park, age 52, formerly of Falls Church, Virginia, to nine years in federal prison, followed by four years of supervised release, for conspiracy to commit bank fraud, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration (SBA), with resulting losses of more than $100 million.  Loren Park was a fugitive for eight years and was extradited from South Korea to face these charges. 

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Small Business Administration Inspector General Hannibal “Mike” Ware; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation.

“Our financial system is based on trust,” said U.S. Attorney Robert K. Hur.  “Loren Park and his co-conspirators lied during every aspect of the loan process, cheating taxpayers and lenders, causing more than $100 million in losses, and hurting the chances of future small business owners to obtain loans.  I am grateful for the patience and diligence of our law enforcement partners to get Loren Park back from South Korea and bring him to justice.”

According to his plea agreement and other court documents, Loren Park and his brother, Joon Park, owned and operated Jade Capital.  Jade Capital brokered small business loans, among other services, for clients and on behalf of Loren Park, Joon Park, and their family.  According to the plea agreement, Loren and Joon Park and others under their direction encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% to 90% of qualified loans made by banks and other commercial lending institutions.  Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan.  The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA. 

Loren Park admitted that from 2003 until October 2011, he and others under his direction, including Nick Park (no relation), Joo Hyuk “John” Lee, Sang Hyun Kim, and In Jung Ham, submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients that contained fraudulent documents, including: bank statements for borrowers that were altered to make it look like the borrowers had more cash to inject into the business they were buying than they in fact did; counterfeit cashiers’ checks and fake gift letters that made it look like the borrowers had more assets at their disposal to use as down payments than they did; fabricated resumes that made it look like the borrowers had more experience running the businesses they sought to purchase than they did; fake tax returns that made it look like the borrowers had greater income than they did; phony interim financial statements that made other businesses the borrowers owned look more profitable than they were; and a number of other misrepresentations.  

Loren and Joon Park charged a loan brokerage fee to both the financial institutions and the borrowers for assembling and submitting loan application packages that resulted in the issuance of SBA-guaranteed loans.  The fees charged to borrowers were hidden from the financial institutions underwriting the loans.  The Parks also had undisclosed ownership interests in businesses involved in some of the transactions and received loan proceeds, unbeknownst to the lenders, in a number of transactions.  In one instance, the Parks did not have an ownership interest in a company involved in a transaction but persuaded the seller to assign some of the loan proceeds to them and then converted those proceeds to their own personal use. 

Loren Park was on a business trip to South Korea when he learned that he had been indicted in this case.  Loren Park had intended to return to the United States, but after learning that he had been indicted, he chose not to return and not face the charges pending against him.  Subsequently, he also made several public information requests to the FBI, from South Korea, requesting his criminal record in order to determine whether there were still charges pending against him.                                                                 

On June 20, 2013, co-defendant Joon Park, a/k/a “Joon Pak” and “Joon Paik,” age 48, of Falls Church Virginia, was sentenced to 188 months in prison, followed by four years of supervised release, and was ordered to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense. 

Five other co-defendants were sentenced to between a year and a day in prison and 51 months in prison and were ordered to pay restitution of between $216,472.92 and $3,593,432.  In addition, the co-defendants were ordered to pay money judgments of between $11,832,000 and $18,764,900.  

United States Attorney Robert K. Hur thanked the SBA Office of Inspector General, the U.S. Postal Inspection Service, and the FBI for their work in the investigation.  Mr. Hur praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Michael Gene Reed, age 40, of Dundalk, Maryland, to 12 years in prison, followed by lifetime supervised release, for possession of child pornography and for violating his supervised release on a previous federal sex offense conviction.  Upon his release from prison, Reed must again 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 Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, on February 24, 2009, Reed was convicted of traveling with intent to engage in illicit sexual conduct and possession of child pornography in U.S. District Court in the District of Columbia.  Reed was sentenced to 90 months in prison, followed by 15 years of supervised release, and was required to register as a sex offender upon his release.  Reed was released from prison on December 24, 2014, and began his supervised release.

Reed admitted that on June 25, 2017 and December 27, 2017, Reed reported to Maryland’s Sex Offender Registry that he resided in an apartment in Dundalk.  However, as of November 2017, Reed resided at a rowhome three miles away from his reported residence, with his girlfriend and her minor daughter.  Reed did not report to his probation officer that he had moved or that he was living with a minor, as required by the terms of his supervised release.

As detailed in his plea agreement, Reed also participated in an online anonymous chatroom service that does not require user registration.  Users can access chatrooms by entering the name of the room and creating a nickname for themselves.  Once in the room, users can chat and share images with one another.  Reed admitted that on February 14 and November 17, 2017, Reed joined chatrooms using the names “kinkfan” and “pedoperv,” respectively.  On each occasion, Reed shared an image with the other users in the chatroom, specifically, an image of two minor girls engaged in sexually suggestive behavior, and an image of an adult male sexually abusing a prepubescent girl.

On January 11, 2018, law enforcement executed a search warrant at Reed’s girlfriend’s rowhome.  Reed admitted to law enforcement that he used his work cellphone to chat on the anonymous site, and that he did not report his new address because he did not want his girlfriend’s daughter and her father to learn about his prior conviction.  Reed also possessed images documenting the sexual abuse of prepubescent minors.

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 Robert K. Hur commended the FBI, HSI-Baltimore, the Baltimore County Police Department, and the Baltimore County State’s Attorney’s Office for their work in the investigation, and thanked the Baltimore City Police Department for its assistance.  Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the federal case.

# # #

Baltimore, Maryland – A federal jury convicted Delroy Williams, Jr. age 32, of Baltimore, Maryland, for a conspiracy to distribute five kilograms or more of cocaine, and for possession with intent to distribute cocaine and marijuana.  The jury returned its verdict late on May 20, 2019.  Williams fled and was a fugitive from justice prior to his original trial date in November 2018.  Williams was arrested on January 11, 2019, and has been detained since that time. 

The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Anne Arundel County Police Chief Tim Altomare.

According to the testimony presented at his five-day trial, from at least October 2016 through December 12, 2016, Williams distributed cocaine and marijuana in the Baltimore area.  On the evening of December 12, 2016, Williams ran into an associate at a nightclub in Baltimore County.  Believing that the associate owed him money, Williams assaulted, robbed, and shot at the individual before ramming the victim’s car and then fleeing the scene.  Realizing that the associate knew where Williams lived, Williams took his drugs from his residence and took them to his girlfriend’s home in Glen Burnie, Maryland. 

Law enforcement executed a search warrant at the Glen Burnie residence the next day and recovered almost five kilos of cocaine, several pounds of marijuana, and two guns from the house.  Witnesses testified that several more pounds of marijuana, more than $213,000 in cash, scales, and pistol ammunition were recovered from Williams’s truck. 

Williams now faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison.  U.S. District Judge Ellen L. Hollander has scheduled sentencing for August 20, 209 at 11:00 a.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 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 Robert K. Hur commended the DEA, the Baltimore County Police Department and the Anne Arundel County Police Department for their work in the investigation, and thanked the FBI, the ATF, and the U.S. Marshals Service for their assistance.  Mr. Hur thanked Assistant U.S. Attorneys Zachary B. Stendig and John W. Sippel, Jr. who are prosecuting the case.

# # #

Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Taurus Tillman, a/k/a Tash, age 30, of Baltimore, to 25 years in federal prison, followed by five years of supervised release, for conspiring to participate in a drug distribution conspiracy and a violent racketeering enterprise known as Trained To Go (TTG).  The racketeering conspiracy included eight murders, as well as drug trafficking and witness intimidation.  Tillman and his co-defendants were also convicted of a drug distribution conspiracy involving heroin, marijuana, and cocaine. 

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby.

“Taurus Tillman and his fellow gang members terrorized the Sandtown community.  Thanks to the partnership between federal, state, and local law enforcement, these drug dealers will no longer peddle death in West Baltimore,” said U.S. Attorney Robert K. Hur. “Violent gang members must know that gun crime leads to federal time.  Hopefully criminals who are not deterred from carrying guns by the threat of prison can be deterred by the reality of years spent in a federal prison far from home—where there is no parole. Ever.”

According to the evidence presented at their 24-day trial, Tillman and his co-defendants are all members of TTG, a criminal organization that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation.  As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG. 

The evidence at trial showed that members and associates of TTG, including Tillman, sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory.  The jury found that Tillman distributed at least one kilogram of heroin over the course of the conspiracy.  In addition, the evidence proved that between May 20, 2010 and January 9, 2017, Tillman, his co-defendants, and other members of TTG committed acts of violence, including eight murders, shootings, armed robbery, and witness intimidation.  Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes.  Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.

The leader of the gang, Montana Barronette, a/k/a Tana, and Tanner, age 23, and his brother, Terrell Sivells, a/k/a Rell, age 27, both of Baltimore, were each sentenced to life in prison on February 15 and April 26, 2019, respectively.  Co-defendant Brandon Wilson, a/k/a Ali, age 24, also of Baltimore, was sentenced to 25 years in prison on March 1, 2019.  Two other co-defendants, John Harrison, a/k/a Binkie, age 28, and Linton Broughton, a/k/a Marty, age 25, both from Baltimore, were sentenced to life in prison and to 30 years in prison, respectively, on March 15, 2019.

The remaining defendants convicted at the trial are from Baltimore, and face a maximum sentence of life in prison on the racketeering and drug conspiracies.  They include: Dennis Pulley, a/k/a Denmo, age 31; and Timothy Floyd, a/k/a Tim Rod, age 28.  The defendants remain detained.

Three other TTG members previously pleaded guilty and were sentenced to between five and 25 years in prison.  Another defendant, Roger Taylor, a/k/a Milk, is a fugitive.

The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments.  FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore.  The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.      

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.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.               

Tillman is still facing charges for allegedly assaulting employees of the U.S. Marshals Service (USMS) while he was detained and being transported to and from the courtroom during their trial.  According to the indictment, on September 21, 2018, Tillman and co-defendant John Harrison assaulted two Deputy U.S. Marshals and a U.S. District Court Security Officer as they were being escorted from the courtroom during a break in the trial.  If convicted of the assault charges, Tillman faces a maximum sentence of eight years in prison on these charges.  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 U.S. Marshals Service is investigating the case.

United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI, the Baltimore Police Department, the ATF, the DEA, the Anne Arundel County Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Christopher J. Romano, Daniel C. Gardner, and Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.

# # #

A Baltimore, Maryland, gang member was sentenced to 25 years in federal prison, followed by five years of supervised release, for conspiring to participate in a drug distribution conspiracy and a violent racketeering enterprise known as Trained To Go (TTG).  The racketeering conspiracy included eight murders, as well as drug trafficking and witness intimidation.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Robert K. Hur for the District of Maryland; Acting Special Agent in Charge Jennifer L. Moore of the FBI’s Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration (DEA), Baltimore District Office; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby made the announcement.

Taurus Tillman, aka Tash, 29, was sentenced by U.S. District Judge Catherine C. Blake.  Tillman and his co-defendants were also convicted of a drug distribution conspiracy involving heroin, marijuana, and cocaine.  The Judge considered the alarmingly violent nature of the gang and therefore varied Tillman’s sentence significantly higher than the advisory guideline range.

According to the evidence presented at their 24-day trial, Tillman and his co-defendants are all members of TTG, a criminal organization that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery and witness intimidation.  As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.

The evidence at trial showed that members and associates of TTG, including Tillman, sold heroin, cocaine and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory.  The jury found that Tillman distributed at least one kilogram of heroin over the course of the conspiracy.  In addition, the evidence proved that between May 20, 2010 and Jan. 9, 2017, members of TTG committed acts of violence, including eight murders, shootings, armed robbery and witness intimidation.  Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as murder-for-hire schemes.  Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.

The leader of the gang, Montana Barronette, aka Tana and Tanner, 23, of Baltimore, was sentenced to life in prison on Feb. 15, 2019.  Co-defendant Brandon Wilson, aka Ali, 24, also of Baltimore, was sentenced to 25 years in prison on March 1, 2019.  Two other co-defendants, John Harrison, aka Binkie, 28, and Linton Broughton, aka Marty, 25, both from Baltimore, were sentenced to life in prison and to 30 years in prison, respectively, on March 15, 2019.

The remaining defendants convicted at the trial are all from Baltimore, and face a maximum sentence of life in prison on the racketeering and drug conspiracies.  They include: Dennis Pulley, aka Denmo, 31; and Timothy Floyd, aka Tim Rod, 28.  The defendants remain detained.

Three other TTG members previously pleaded guilty and were sentenced to between five and 25 years in prison.  Another defendant, Roger Taylor, aka Milk, is a fugitive.

The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County and Anne Arundel County Police Departments.  FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore.  The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.

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.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.

Tillman is still facing charges for allegedly assaulting employees of the U.S. Marshals Service (USMS) while he was detained and being transported to and from the courtroom during their trial.  According to the indictment, on Sep. 21, 2018, Tillman and co-defendant John Harrison assaulted two Deputy U.S. Marshals and a U.S. District Court Security Officer as they were being escorted from the courtroom during a break in the trial.  If convicted of the assault charges, Tillman faces a maximum sentence of eight years in prison.  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 U.S. Marshals Service is investigating the case.

U.S. Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI, the Baltimore Police Department, the ATF, the DEA, the Anne Arundel County Police Department and the Office of the State’s Attorney for Baltimore City for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Christopher J. Romano, Daniel C. Gardner and Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Chukwuemeka Ekwonna, age 29, of Glenn Dale, Maryland, today to 14 years in federal prison, followed by five years of supervised release for two counts of sex trafficking of a minor.  Specifically, between October 2016 and February 2017, Ekwonna, who was an officer with the Metropolitan Police Department (MPD) in Washington, D.C. at the time, engaged in sexual conduct with two girls, who were 14 and 15 years old, in exchange for money.  Both victims were students in the ninth grade at the time of the offenses.

In a separate case, on May 13, 2019, Charles Mario Brown, Sr., age 48, of Baltimore, pleaded guilty to conspiracy to commit sex trafficking.  Brown admitted that he operated a prostitution business involving a 16-year-old female, and at least four adult females, who performed commercial sex acts in the Baltimore area. 

The sentence and guilty plea were announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); Chief Timothy Altomare of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; and Harford County Sheriff Jeffrey R. Gahler.

U.S. Attorney Robert K. Hur stated, “We will continue to work with our law enforcement partners to bring human traffickers to justice and protect our most vulnerable.” 

According to Ekwonna’s plea agreement, beginning about January 24, 2016, Ekwonna worked as a police officer with MPD in Washington, D.C.  Since 2010, Ekwonna has used an account on a social media and dating platform that allows users to search for others based on location and to engage in real-time chat. Ekwonna used his social media account to solicit many other users to engage in sex acts with him for money, including while he served as a police officer.

Between December 19, 2016, and April 5, 2017, Ekwonna exchanged approximately 200 messages, both text and through the social media dating platform, with a 14-year-old girl (“Girl 1”).  On several occasions, Ekwonna offered to pay Girl 1 to engage in sex acts with him.  Ekwonna met with Girl 1 and engaged in sex acts with her on at least five occasions, between October 18, 2016, and February 15, 2017.  Ekwonna engaged in illegal sex with the underage girl in different locations in the Annapolis area, including in motel rooms and Ekwonna’s vehicle.  Ekwonna typically paid Girl 1 between $30 and $40 to have sex with him.  Messages between Ekwonna and the 14-year-old girl suggest that she was aware that Ekwonna was a police officer.  

On January 9, 2017, Ekwonna exchanged approximately 54 messages through the dating platform with a second underage girl, who was 15 years old at the time (“Girl 2”).  In these messages, Ekwonna offered to pay the 15-year-old girl to engage in sex acts with him.  Ekwonna met Girl 2 in Glen Burnie, where he gave her $80 and engaged in sex acts with her in the back of his car. According to Girl 2’s testimony at the sentencing hearing, after they had sex, Ekwonna locked her in the car, pointed a black handgun at her and demanded she return the money he had paid her. As part of his sentence, Ekwonna was ordered to pay $80 in restitution to the victim.  His car and his black police-issued handgun were ordered forfeited to the government.

According to Brown’s plea agreement, Brown and his co-conspirator met a 16-year-old runaway (“Victim 1”) in November 2016, while she was walking in Baltimore.  Brown and the co-conspirator directed Victim 1 to meet with sex customers who called or sent text messages in response to online prostitution advertisements featuring the victim, which were posted by the conspirators.  The conspirators agreed to provide Victim 1 with food and a place to stay in exchange for money she earned through commercial sex acts, and bought her lingerie that she wore in photos taken for prostitution ads.  Brown drove Victim 1 to outcalls, where Victim 1 engaged in commercial sex acts and collected payment.  Brown and the co-conspirator directed Victim 1 to give them at least some of the proceeds from her commercial sex acts, and she did so. 

On December 9, 2016, an undercover Harford County Sheriff’s Office detective contacted a phone number found in the cell phone of a deceased male sex customer A.G.  (A.G. suffered a fatal heroin overdose in a hotel room in Edgewood, Maryland in the presence of one of Brown’s adult female sex workers.)  The detective contacted the phone number to arrange an overnight commercial sex date at a hotel in Edgewood and to request heroin.  At the co-conspirator’s request, Victim 1 communicated with the detective to make arrangements for the commercial sex date, which included taking $1,000 for the purchase of heroin after arriving at the hotel.

As detailed in his plea agreement, Brown and the co-conspirator transported Victim 1 and an adult female to the hotel.  Victim 1 and the woman went into the hotel room identified by the detective.  Investigators recognized Victim 1 from prostitution ads posted online, and Victim 1 identified herself by the name listed in those ads.  Brown and his co-conspirator, who were waiting in the SUV outside the hotel room, were arrested and their cell phones were seized.  Forensic examination of the cell phones revealed numerous communications in furtherance of the prostitution business. 

Brown and the government have agreed that, if the Court accepts the plea, Brown will be sentenced to seven years in federal prison.  U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 16, 2019, at 1:00 p.m.

These cases were investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders.  Members of the Task Force 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.  Suspected instances of human trafficking can be reported to HSI’s tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.

In addition, the cases were prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.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 Robert K. Hur commended Homeland Security Investigations, the Anne Arundel County Police Department, and the Anne Arundel County State’s Attorney’s Office for their work in the Ekwonna investigation, and commended HSI and the Harford County Sheriff’s Office for their work in the Brown case.  Mr. Hur thanked Assistant U.S. Attorneys Zachary A. Myers and Matthew D. Maddox, who are prosecuting the Ekwonna and Brown cases, respectively.

###

Greenbelt, Maryland – Robert Jacob Eberle, age 30, of Lexington Park, Maryland, pleaded guilty today to the federal charge of theft of firearms, which Eberle admitted he stole from a federally licensed firearms dealer. 

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and St. Mary’s County Sheriff Tim Cameron.

As detailed in his plea agreement, Eberle admitted that on July 21, 2018, he stole 11 firearms from a federally licensed firearms dealer in St. Mary’s County, Maryland.  The guns included seven 9mm pistols, two .45-caliber pistols, a .40-caliber pistol, and a .380-caliber pistol.  According to his plea agreement, in order to access the firearms, Eberle used a hammer to break through the rear cinderblock wall of the premises, crawled through the hole, broke the glass case containing numerous handguns, and stole the guns.

Eberle admitted that he sold or traded two or more of the stolen firearms to third parties, even though he had reason to believe that those individuals intended to use or dispose of the firearms illegally.  Further, Eberle knew that he had a previous felony conviction and was prohibited from possessing firearms.

As part of his plea agreement, Eberle must forfeit all of the guns stolen from the dealer.

Eberle faces a maximum sentence of 10 years in prison for theft of firearms.  U.S. District Judge Paula Xinis has scheduled sentencing for August 26, 2019 at 1:00 p.m.  

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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 Robert K. Hur commended the ATF and the St. Mary’s County Sheriff’s Office for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorney Joseph Baldwin, who is prosecuting the case.

# # #

Greenbelt, Maryland – Yusef Payne, age 35, of Baltimore, Maryland, pleaded guilty yesterday to possession of a stolen firearm. Payne admitted that he had at least two previous felony convictions and was prohibited from possessing firearms or ammunition.

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.

“Armed criminals must know that gun crime will lead to federal time, which has no parole—ever,” said United States Attorney Robert K. Hur. “We will continue to work with our law enforcement partners to remove those who would commit violence from our community. Please, put down the guns and save a life—maybe even your own.”

According to his guilty plea on October 30, 2017, Baltimore Police officers were patrolling and saw Payne, who had an open warrant from an October 15, 2017 handgun charge involving a 9mm handgun with a magazine containing ten 9mm cartridges.

When the officers pulled over to arrest Payne, he ran, discarding a handgun. One of the officers chasing Payne retrieved the weapon, which was a different 9mm handgun with a magazine containing seven cartridges. Payne admitted that he knew, or had cause to believe, that the gun was stolen.

Payne and the government have agreed that if the Court accepts the plea agreement, Payne will be sentenced to nine years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for July 8, 2019, at 10:00 a.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 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 Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation and thanked the Maryland Department of Public Safety and Correctional Services for its assistance. Mr. Hur thanked Assistant U.S. Attorney Joan C. Mathias, who is prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Patrick Nathan Broxton, age 48, of Ellicott City, Maryland, today to 10 years in federal prison, followed by four years of supervised release, for a heroin distribution conspiracy and for being a felon in possession of a firearm. 

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Calvert County Sheriff Mike Evans; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.

“Drug traffickers must know that gun crime will lead to federal time, which has no parole—ever,” said United States Attorney Robert K. Hur.  “We will continue to work with our law enforcement partners to remove those who would commit violence from our community. Please, put down the guns and save a life—maybe even your own.”

According to his guilty plea from at least June 2016 through July 2017, Patrick Nathan Broxton conspired with Stephen Eugene Clark, Jr., Stephen Michael Kinnison, Robert Eugene Davidson, and others to distribute heroin in Calvert and Prince George’s County.  Broxton was a regular source of supply to Stewart, who would then sell smaller quantities of heroin to Kinnison, Davidson, and others.  Law enforcement obtained court-ordered wiretaps and intercepted Broxton’s communications with Stewart and others to arrange narcotics transactions.  Those intercepted communications, as well as physical surveillance, show that Broxton distributed heroin and cocaine at commercial establishments, including convenience stores and a mall.

For example, between April 11 and 13, 2017, Broxton communicated with a co-conspirator by telephone to arrange a heroin transaction at a convenience store in Anne Arundel County, Maryland.  As detailed in his plea agreement, Broxton was employed at a treatment and rehabilitation facility in Crownsville, Maryland, that assisted individuals affected by drug and alcohol dependency, mental health and other conditions.  Law enforcement conducted surveillance of Broxton and saw him leave the facility to meet the co-conspirator at the convenience store, where Broxton supplied the co-conspirator with heroin in exchange for cash.

On July 6, 2017, law enforcement executed a search warrant at Broxton’s residence and recovered a 9mm handgun, 48 rounds of 9mm ammunition, a white ballistic vest, heroin which was in a plastic container in the back of a picture frame, a money counting machine, three digital scales with heroin and cocaine residue, and other drug distribution paraphernalia.  Broxton, who was not at home at the time of the search, was subsequently arrested at his place of employment.

Broxton was on probation for a previous violent crime conviction at the time of the drug conspiracy and knew that he was prohibited from possessing a firearm or ammunition.

Co-defendants Stephen Eugene Clark, Jr., age 55, of Laurel, Maryland; Stephen Michael Kinnison, age 44, of Lusby, Maryland; and Robert Eugene Davidson, age 29, of Sunderland, Maryland, previously pleaded guilty to their roles in the conspiracy.  Clark was sentenced to 19 months in federal prison.  Kinnison and Davidson are scheduled to be sentenced on November 19 and November 21, 2019, respectively.  Co-defendant Charles Benjamin Stewart, Jr., age 46, of Upper Marlboro, Maryland, remains detained pending trial, which is scheduled to begin on November 5, 2019.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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 Robert K. Hur commended the DEA, the ATF, the Calvert County Sheriff’s Office, and the Prince George’s County Police Department for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Jennifer R. Sykes and Erin B. Pulice, who are prosecuting the case.

# # #

Baltimore, Maryland – Kevin B. Merrill, age 53, of Towson, Maryland, pleaded guilty today to conspiracy and wire fraud arising from a $550 million investment fraud scheme that operated from 2013 through September 2018.  Co-defendant Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to his role in the scheme.  The U.S. Securities and Exchange Commission (SEC) has filed a parallel civil complaint in this matter.           

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General. 

“Federal prosecutors, FBI agents, and our SEC partners together interrupted an ongoing fraud scheme, with the potential to victimize even more people.  Kevin Merrill lured investors through an elaborate web of lies, duping them into paying millions of dollars into this Ponzi scheme,” said U.S. Attorney Robert K. Hur.  “The effects of this kind of fraud can be devastating.  As a result of this scheme, a number of victims have lost their life savings.”

According to his plea agreement, beginning in January 2013, Merrill and his co-conspirators perpetrated a Ponzi scheme to defraud investors of more than $394 million.  Specifically, Merrill and a co-conspirator invited investors to join them in purchasing consumer debt portfolios.  “Consumer debt portfolios” are defaulted consumer debts to banks/credit card issuers, student loan lenders, and car/truck financers which are sold in batches called “portfolios” to third parties that attempt to collect on the debts.  Merrill, using the names of collection businesses he owned, including Delmarva Capital and Global Credit Recovery, among others, falsely represented to investors that he would use the investors’ money to buy consumer debt portfolios and make money for them by (1) collecting the payments that people made on their debts or (2) selling the portfolios for a profit to other third-party debt buyers, in a practice called “flipping.”  According to the related complaint in the civil action filed by the SEC, the victim investors included small business owners, restauranteurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, professional athletes, and financial advisors, located in Maryland, Washington, D.C., Northern Virginia, Denver, Texas, Chicago, New York, and elsewhere.  As detailed in the plea agreement, Merrill admitted that the scheme caused financial hardship to at least five victims, and Merrill knew that at least one of those was a vulnerable victim.

At today’s hearing, Merrill admitted that to induce investors to participate, he and his co-conspirators falsely represented who they were buying the debt portfolios from and how much they were paying for the portfolios, whether they were investing their own funds, and their track record of success. According to the plea agreement, sometimes there was no underlying debt portfolio purchased with the investors’ money.  To conceal the truth, Merrill, Jezierski, and others created imposter companies with names similar to actual consumer debt sellers or brokers and opened bank accounts in the names of those imposter companies.  In addition, to lend credibility to the transactions, the defendants created false portfolio overviews, sales agreements which used the names and forged signatures of actual employees of the sellers, created false collections reports, and falsified bank statements and merchant account reports.

Further, Merrill admitted that he falsely represented that the monies the conspirators paid to investors were “proceeds” from collections and/or flipping debt portfolios, when in fact, the proceeds were paid from funds provided by other investors.  Merrill provided monthly or quarterly reports to investors regarding the “purported progress of the portfolio and its recovery,” which he invented.  Merrill used the proceeds of the scheme to purchase and/or renovate five high-end homes in Maryland and Florida, gamble at casinos, purchase luxury automobiles, jewelry, artwork, collectibles such as comic books and sports memorabilia, and a share in a jet plane, and support a lavish lifestyle.

Finally, Merrill admitted that while the scheme was ongoing, he met with the FBI, lied to the investigating agents, and provided false documents to the FBI.  As detailed in his plea agreement, after his arrest, Merrill attempted to obstruct justice by causing his wife to remove assets from their Naples, Florida home on October 13, 2018, and by preparing a handwritten note instructing his wife to conceal assets from the court-appointed receiver, which he intended to hold up to the glass in the detention center on December 5, 2018, when his wife visited.  These actions violated the restraining order with which Merrill was served in the criminal case, and the preliminary injunction ordered by the Court in the SEC’s civil action.

As part of his plea agreement, Merrill is required to pay restitution in the full amount of the victims’ losses and to forfeit property acquired with the proceeds of the offenses.  The SEC has appointed a receiver to marshal the assets for the benefit of the victims.

Merrill faces a maximum of 40 years in prison for the wire fraud conspiracy and for wire fraud, as well as a possible fine of $500,000, or twice the gross gain.  U.S. District Judge Richard D. Bennett has scheduled sentencing for Merrill on September 19, 2019, at 9:30 a.m., and for Jezierski on August 12, 2019 at 3:00 p.m.  Co-defendant Jay B. Ledford, age 55, of Westlake, Texas and Las Vegas, Nevada, is scheduled for a rearraignment on June 6, 2019, at 10:00 a.m.  Kevin Merrill’s wife, Amanda Merrill, age 30 of Towson, Maryland, is charged with conspiracy to obstruct justice.  No court appearance is currently scheduled for Amanda Merrill.  Kevin Merrill and Ledford have been detained since their arrest on September 18, 2018, and Amanda Merrill and Cameron Jezierski are released under the supervision of U.S. Pretrial Services.

United States Attorney Robert K. Hur commended the FBI in Baltimore, Dallas, Las Vegas and Tampa; the Federal Housing Finance Agency, Office of the Inspector General; and the SEC for their work in this investigation.  Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Martin J. Clarke, who are prosecuting the criminal case.

# # #

Baltimore, Maryland - U.S. Attorney Robert K. Hur sent the following message to law enforcement officers serving in Maryland:

“Working with the exceptional men and women of Maryland law enforcement is one of the true highlights of my work as U.S. Attorney.  To witness daily the courage and honor with which they serve is inspirational, and a source of pride to be part of such a dedicated profession that risks all in service to others. Thank you for your courage and your devotion to justice.”

In 2019, National Peace Officers Memorial Day falls on Wednesday, May 15.  The official dates for National Police Week are May 12 through May 18, although many events are taking place before or after those dates.  During National Police Week, we pay tribute to police officers who have died in the line of duty and give thanks to officers who faithfully protect and serve.

This year, according to the National Law Enforcement Memorial Fund, the names of 158 officers killed in the line of duty in 2018 will be engraved on the wall of the National Law Enforcement Officers Memorial in Washington, DC.  Sadly, two Maryland officers will be added to the Memorial this year:

Sergeant Mujahid Abdul Mumin Ramzziddin

Prince George's County Police Department, MD

Police Officer Amy Sorrells Caprio

Baltimore County Police Department, MD

Every day agents, officers, deputies, and troopers risk their lives to protect our communities.  For example, in April of 2019, a convicted felon was sentenced to 11 years in federal prison after his conviction of being a felon in possession of a firearm.  Court records show that two Baltimore police officers responding to a call for a man with a gun approached a suspect who produced a firearm.  In the ensuing struggle, the suspect shot and wounded one officer, but was quickly taken into custody without further violence.  That violent repeat offender will spend over a decade in federal prison, and the community is safer for the valiant efforts of those two police officers.

The successful collaborative efforts of federal, state, and local law enforcement are a testament to the diligence, courage, and dedication of its members.  Due to the extraordinary efforts of these professionals, violent individuals are removed from our neighborhoods.  For example, on October 31, 2018, Terrell Sivells of Baltimore was convicted for his role in a racketeering conspiracy that included eight murders and drug trafficking.  He was subsequently sentenced to life in prison.  Members of the Baltimore City and Anne Arundel County Police Departments, the FBI, ATF, and DEA, along with prosecutors from the U.S. Attorney’s Office and the Baltimore City State’s Attorney’s Office investigated and prosecuted Sivells, his brother Montana Barronette, and their fellow gang members for murder, drug distribution, armed robbery and witness intimidation.  They were part of a gang known as Trained To Go (TTG) that operated in the Sandtown neighborhood of West Baltimore, and was one of the most violent gangs in the City.

These cases are but two examples of the extraordinary work done by law enforcement officers and agents in Maryland.  During this week of national recognition, it is appropriate that we thank and honor these dedicated professionals.  It is even more important that we never forget their service, bravery, and sacrifice.

###

Baltimore, Maryland – William Lamont Holder, age 54, of Hanover, Maryland, pleaded guilty on May 14, 2019 to a federal wire fraud charge for stealing between $550,000 and $1.5 million of wine from his clients, primarily private collectors and commercial establishments.

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Anne Arundel County Police Chief Tim Altomare.

According to his plea agreement, William Lamont Holder was the sole owner and operator of Safe Harbour Wine Storage, LLC (“Safe Harbour”).  Through Safe Harbour, Holder stored and transported upscale wines for private collectors and commercial establishments.  In return for a monthly fee, Holder would arrange for the transportation of a customer’s wine to Safe Harbour’s storage facility in Glen Burnie, Maryland, where it would be inventoried and stored.  Holder did not possess a license to sell wine in the State of Maryland.  

From January 2013 through December 2017, Holder developed a scheme to obtain payments and wine from the customers of Safe Harbour for his own personal financial gain. Unbeknownst to his customers, he offered their wine for sale to wine retailers and brokers around the country, including in Napa, California, all the while continuing to collect the customers’ monthly storage fees and accept additional wine for storage.

Holder represented to potential third-party buyers that he was the lawful owner of the wine that he was offering to sell.  By e-mail and facsimile, he sent them lists of bottles of wine stored in his warehouse with detailed descriptions of the winery, vintage, and asking price.  After the buyers selected the bottles they wanted to purchase, Holder boxed and shipped the wine, and sent his bank account information.  After inspecting the shipment of wine, the buyers would either wire the money directly into Holder’s bank account or send a check.  Holder kept the proceeds from the sales and spent it on personal expenses.

Holder and the government have agreed that, if the Court accepts the plea agreement, he will be sentenced to 18 months in federal prison.  U.S. District Judge Catherine C. Blake has scheduled sentencing for July 31, 2019 at 10:30 a.m. 

United States Attorney Robert K. Hur commended the FBI, and the Anne Arundel County Police Department for their work in this investigation.  Mr. Hur thanked Assistant U.S. Attorney Martin Clarke, who prosecuted the federal case.

# # #

Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging eight defendants with participating in a heroin and fentanyl distribution conspiracy allegedly operating in the Baltimore area since at least February 2018, as well as related charges.  The superseding indictment was returned on May 7, 2019, and unsealed May 9, 2019.  The following defendants are charged with conspiracy to distribute and possess with intent to distribute fentanyl, cocaine, and heroin:

Raheem Benjamin, age 26, of Baltimore;

Tyrone Milton Gholston, age 39, of Baltimore;

Daryl Hart, age 38, of Edgewood, Maryland;

Joshua Johnson, age 28, of Baltimore;

Ellison Mccrea, age 28, of Baltimore;

Raynard Minter, age 21, of Baltimore; Morranda Phimpisane, age 32, of Baltimore; and

April Wilkes, age 36, of Baltimore.

The superseding indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.

“More and more people are dying from fentanyl overdoses in Baltimore City and throughout the state,” said U.S. Attorney Robert K. Hur.  “We are continuing to do everything possible to reduce overdose deaths from fentanyl and from all opioids, by investigating and prosecuting those who distribute this poison in our community.”

In addition to the drug conspiracy, the seven-count superseding indictment charges Benjamin with possession of a firearm and ammunition by a prohibited person and with possession of a firearm in furtherance of a drug trafficking crime.  Gholston is charged with maintaining a drug-involved premises.  Hart, Minter, and Phimpisane are charged with possession with intent to distribute a mixture of fentanyl and heroin, and Johnson is charged with possession with intent to distribute fentanyl. 

If convicted, the defendants each face a minimum mandatory sentence of 10 years in prison and a maximum sentence of life in prison for the drug conspiracy.  Benjamin also faces a mandatory minimum of five years in prison, consecutive to any other sentence imposed and a maximum of 10 years in prison for being a felon in possession of a firearm and ammunition; and a maximum of life in prison for possession of a firearm in furtherance of a drug trafficking crime.  Hart, Minter, Phimpisane, and Johnson each face a maximum of 20 years in prison for possession with intent to distribute controlled dangerous substances.  

All of the defendants except Gholston have been arrested and are in federal or state custody.  Hart and Phimpisane had an initial appearance on May 9, 2019 in U.S. District Court in Baltimore, and were ordered to be detained pending detention hearings.  The six other defendants do not yet have an initial appearance scheduled. 

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

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 Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation and thanked the State’s Attorney’s Office for Baltimore City for its assistance.  Mr. Hur thanked Assistant U.S. Attorney Michael A. Goldsticker, who is prosecuting the case.

# # #

Baltimore, Maryland – U.S. District Judge Ellen Hollander today sentenced Alice Gardner, age 44, of Towson, Maryland, to 37 months in prison, followed by five years of supervised release, for conspiracy to commit wire and bank fraud, and aggravated identity theft.  On May 6, 2019, co-defendant Natasha Wyche, age 42, of Owings Mills, Maryland, was sentenced to three years in prison, followed by five years of supervised release, on the same charges.  Judge Hollander ordered both defendants to pay restitution in the amount of $170,837.

The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Chief Terrence B. Sheridan of the Baltimore County Police Department; Chief Lisa Myers of the Howard County Police Department; and Chief Michael Birmingham of the Maryland Motor Vehicle Administration (MVA) Investigative Division.

According to their plea agreements, from February 2013, through December of 2014, Gardner and Wyche conspired with Chris Jordan, Cynquetta Martin, and others to commit bank and wire fraud.  The conspirators would acquire the social security number (SSN) of a victim, often a minor child, then use that number on paperwork to purchase vehicles from car dealerships. 

For example, on December 4, 2012, Wyche went to a car dealership in Owings Mills, and applied for a vehicle loan to purchase a 2010 Acura TL using a victim’s SSN.  The approved loan was for $29,194.  On August 30, 2014, Wyche went to three car dealerships in Maryland, and applied for three vehicle loans to purchase a 2008 Honda Odyssey, a 2014 Hyundai Sonata, and a 2013 Toyota Corolla, using the SSN of a victim.  The approved loans were for $20,409, $29,368, and $21,247, respectively.

On November 24, 2014, Gardner went to two car dealerships and applied for two vehicle loans to purchase a 2009 Toyota Camry and a 2009 Lexus RX350, using the stolen SSN of a victim. The loans were approved for 12,631 and $22,704 respectively.  In addition, on December 6, 2014, Gardner went to another car dealership, and applied for a loan to purchase a 2015 Hyundai Sonata, using the SSN of a victim. The loan was approved for $32,947.          

The vehicles acquired would be sold by a co-defendant to unsuspecting buyers through an online marketplace.  The proceeds of the scheme, which total approximately $300,000, were split between Gardener, Wyche, and other co-defendants.

Chris Jordan, and Cynquetta Martin have pleaded guilty to their roles in the scheme.  No date has been set for their sentencing. 

United States Attorney Robert K. Hur commended the SSA Office of Inspector General, the Baltimore County Police Department, the Howard County Police Department, and the MVA Investigative Division for their work in this investigation.  Mr. Hur thanked Assistant U.S. Attorney Judson Mihok, and Special Assistant U.S. Attorney Michael Davio, who prosecuted the federal case.

# # #

Faces Nine Years In Federal Prison 

Baltimore, Maryland – Gari Terrell Miller, age 38, of Clinton, Maryland, pleaded guilty on May 9, 2019 to conspiracy to distribute and possess with intent to distribute fentanyl, and to possession with intent to distribute fentanyl.  Miller was one of the first defendants charged as part of the new federal-state initiative announced in December 2018 to combat the fentanyl crisis in Maryland.

Under this new initiative, titled the “Synthetic Opioid Surge,” or “SOS” for short, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system.  The U.S. Attorney’s Office will prosecute more cases involving fentanyl as a result of this new program.  The use of federal resources and statutes, which carry significant terms of imprisonment, is necessary to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl.

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer Moore of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police.

“State and federal law enforcement and prosecutors in Baltimore City are teaming up to arrest and prosecute those who peddle the deadly poison of fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur.  “As a result of our combined efforts, Gari Miller now faces federal prison time, where there are no suspended sentences and no parole, ever.  We must do everything we can to reduce overdose deaths from this drug and from all opioids.”

According to his plea agreement, on April 12, 2018, a Maryland Transportation Authority Police officer conducted a traffic stop near Conway Street in Baltimore, after observing Miller drifting between lanes and turning onto Conway Street without signaling.  During the stop, the officer smelled marijuana.  After the officer conducted a sobriety test, he searched Miller and recovered approximately $740 in cash and a white powdery substance that was 49 grams of fentanyl—enough to kill 24,500 people.  Law enforcement also recovered from Miller’s vehicle $3,300 in cash bound with rubber bands, and a drug ledger with weights, names and dollar amounts listed.  The ledger reflects, and Miller admits, that he sold 832 grams of heroin.

Miller further admitted that he conspired with others to distribute fentanyl and heroin in Maryland.  Miller had others assisting him with distributing narcotics and collecting the drug proceeds.

Miller and the government have agreed that, if the Court accepts the plea agreement, Miller will be sentenced to nine years in federal prison.  U.S. District Judge Catherine C. Blake has scheduled sentencing for July 16, 2019 at 9:15 a.m. 

United States Attorney Robert K. Hur commended the DEA and Maryland Transportation Authority Police for their work in the investigation and thanked Baltimore State’s Attorney Marilyn Mosby and her office for their assistance.  Mr. Hur thanked Assistant U.S. Attorney Samika N. Boyd, who is prosecuting the case.

# # #

Baltimore, Maryland – Annette Elizabeth Jones, age 45, of Port Deposit, Maryland, pleaded guilty today to bank fraud in connection with a scheme to embezzle funds from the labor union where she worked.  Jones entered her guilty plea on May 7, 2019.

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards; and Inspector General Kim R. Lampkins, Special Agent in Charge, Mid Atlantic Field Office, of the U.S. Department of Veterans Affairs.

According to her plea agreement, Jones is the former Treasurer of the American Federation of Government Employees (“AFGE”) Local Union 331, which represents approximately 760 employees of the Department of Veterans Affairs (VA) Medical Center in Perry Point, Maryland.

As detailed in her plea agreement, Jones executed two fraud schemes through which she embezzled at least $82,180.73 from the Union.  First, from July 2012 through July 2015, Jones stole at least $80,944.80 in Union funds by forging her colleagues’ signatures on 335 Union checks that she wrote to herself and then cashed or deposited those checks at multiple financial institutions.  Second, from January 2014 through July 2015, Jones used a Union-issued credit card to pay for $1,235.93 in personal expenses using Union funds on 20 separate occasions.

Jones admitted that she took steps to conceal the scheme from the Union.  For example, not only did Jones have exclusive control of the Union’s checkbook, but she also maintained sole custody of a laptop computer that she was issued by the Union to manage its financial records on Union-purchased accounting software.  In that software, Jones frequently recorded false information regarding the business purpose of the fraudulent Union checks she forged and negotiated, or recorded no information at all about the business purpose of such checks.  Jones also provided false information about the Union’s finances to the Executive Board and the Union membership, caused reports to be submitted to the federal government that falsely certified the amount of money she received from the Union, and lied to the Union’s independent auditor.

Jones’ fraud was discovered in July 2015, when the Union’s Vice President overheard a phone call in which Jones attempted to purchase a smartphone for a family member using the credit card she had been issued to pay for Union expenses only.  The Vice President then reported the conversation to the Union’s President.  The President later conducted a search of Jones’s office and found two uncashed Union checks made payable to Jones on which it appeared that the President’s signature had been forged.  The Union President then met with the manager of the bank where the Union’s account was held, and reviewed each of the checks to Jones that had been drawn on the Union’s account during the preceding three months.  The Union President’s signature had been forged on all of them.  When the manager provided the President with copies of the Union’s monthly credit-card account statements, the President also discovered that Jones had made a number of personal charges on her Union-issued card. 

Jones was immediately removed from her position as Union Treasurer and resigned from the VA soon thereafter.  Although Jones had agreed to return her Union-issued laptop at the time she was removed as Treasurer, Jones admitted that she never returned it.

As part of her plea agreement, Jones will be required to pay restitution in the full amount of the loss, which the parties agree is $82,180.73.

Jones and the government have agreed that, if the Court accepts the plea agreement, Jones will be sentenced to two years in federal prison.  U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 10, 2019 at 1:00 p.m. 

United States Attorney Robert K. Hur commended the DOL and VA-OIG for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Matthew J. Maddox, who are prosecuting the case.

# # #

Baltimore, Maryland – Annette Elizabeth Jones, age 45, of Port Deposit, Maryland, pleaded guilty today to bank fraud in connection with a scheme to embezzle funds from the labor union where she worked.  Jones entered her guilty plea on May 7, 2019.

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards; and Inspector General Kim R. Lampkins, Special Agent in Charge, Mid Atlantic Field Office, of the U.S. Department of Veterans Affairs.

According to her plea agreement, Jones is the former Treasurer of the American Federation of Government Employees (“AFGE”) Local Union 331, which represents approximately 760 employees of the Department of Veterans Affairs (VA) Medical Center in Perry Point, Maryland.

As detailed in her plea agreement, Jones executed two fraud schemes through which she embezzled at least $82,180.73 from the Union.  First, from July 2012 through July 2015, Jones stole at least $80,944.80 in Union funds by forging her colleagues’ signatures on 335 Union checks that she wrote to herself and then cashed or deposited those checks at multiple financial institutions.  Second, from January 2014 through July 2015, Jones used a Union-issued credit card to pay for $1,235.93 in personal expenses using Union funds on 20 separate occasions.

Jones admitted that she took steps to conceal the scheme from the Union.  For example, not only did Jones have exclusive control of the Union’s checkbook, but she also maintained sole custody of a laptop computer that she was issued by the Union to manage its financial records on Union-purchased accounting software.  In that software, Jones frequently recorded false information regarding the business purpose of the fraudulent Union checks she forged and negotiated, or recorded no information at all about the business purpose of such checks.  Jones also provided false information about the Union’s finances to the Executive Board and the Union membership, caused reports to be submitted to the federal government that falsely certified the amount of money she received from the Union, and lied to the Union’s independent auditor.

Jones’ fraud was discovered in July 2015, when the Union’s Vice President overheard a phone call in which Jones attempted to purchase a smartphone for a family member using the credit card she had been issued to pay for Union expenses only.  The Vice President then reported the conversation to the Union’s President.  The President later conducted a search of Jones’s office and found two uncashed Union checks made payable to Jones on which it appeared that the President’s signature had been forged.  The Union President then met with the manager of the bank where the Union’s account was held, and reviewed each of the checks to Jones that had been drawn on the Union’s account during the preceding three months.  The Union President’s signature had been forged on all of them.  When the manager provided the President with copies of the Union’s monthly credit-card account statements, the President also discovered that Jones had made a number of personal charges on her Union-issued card. 

Jones was immediately removed from her position as Union Treasurer and resigned from the VA soon thereafter.  Although Jones had agreed to return her Union-issued laptop at the time she was removed as Treasurer, Jones admitted that she never returned it.

As part of her plea agreement, Jones will be required to pay restitution in the full amount of the loss, which the parties agree is $82,180.73.

Jones and the government have agreed that, if the Court accepts the plea agreement, Jones will be sentenced to two years in federal prison.  U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 10, 2019 at 1:00 p.m. 

United States Attorney Robert K. Hur commended the DOL and VA-OIG for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Matthew J. Maddox, who are prosecuting the case.

Baltimore, Maryland – Rody L. Bowden, age 40, of Prince George’s County, Maryland, pleaded guilty on May 7, 2019, to the federal charge of sex trafficking of a minor.  Bowden was a registered sex offender at the time of the offense.

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

“This is an egregious case because the defendant was already a twice-convicted sex offender and his victim was a 14- year old child,” said U.S. Attorney Robert K. Hur.  “This prosecution sends a powerful message that sex trafficking of children will not be tolerated in Maryland.  Rody Bowden is now facing at least 20 years in federal prison, where there are no suspended sentences and no parole - ever”

According to Bowden’s plea agreement, in late 2016 and early 2017, Bowden engaged in commercial sex acts with a 14-year-old ninth-grade student, including in Anne Arundel County motel rooms.  On January 4, 2017, Bowden recorded a video of the victim engaged in oral sex with him.  The next day, Bowden created an account on a streaming pornographic website and uploaded the video to his account, where it could be viewed by all of Bowden’s followers on the site.  On September 4, 2017, Bowden e-mailed a copy of the video to another account that he controlled.

Bowden was previously required to register as a sex offender, stemming from two convictions for third-degree sex offenses in Prince George’s County and Charles County.  Bowden has been detained since his arrest.

Bowden and the government have agreed that if the Court accepts the plea agreement, Bowden will be sentenced to between 20 and 25 years in federal prison.  U.S. District Judge Catherine C. Blake has scheduled sentencing for July 30, 2019 at 9:15 a.m. 

This case was investigated by 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.

Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form.  Both are staffed around the clock by investigators.

United States Attorney Robert K. Hur commended HSI for its work in the investigation.  Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers, who is prosecuting the case.

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Baltimore, Maryland – A federal grand jury has indicted Michael Nana Baako, age 50, a native of Ghana residing in Fulton, Maryland, on the federal charges of passport fraud, falsely claiming U.S. citizenship, and illegal voting by an alien.  Baako was a physician who practiced in hospitals in Maryland and maintained his own clinic, Biazo Healthcare.  The indictment was returned on May 1, 2019, and was unsealed at his initial appearance today.

The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Edwin Guard of the U.S. Department of State’s Diplomatic Security Service (DSS) Washington Field Office.

According to the indictment, since at least 2001, Baako and R.A.A., also born in Ghana, have lived together in Howard County, Maryland and are the parents of two minor children.  Baako and R.A.A. entered the United States legally after obtaining a visa in 1995.  In 1996, Baako applied for certification of his Ghanian medical education in the United States through the Educational Commission for Foreign Graduates.  In 1998, Baako married a U.S. citizen in Virginia, who filed a petition for Baako to become a naturalized United States citizen.  On June 20, 2000, the petition was denied after immigration officials concluded that Baako’s marriage was a “sham” marriage entered into for the sole purpose of obtaining immigration benefits.  In 2001, Baako was licensed to practice in Maryland as a physician.

The indictment alleges that on November 29, 2005, Baako registered to vote in Maryland, swearing that he was a United States citizen, and subsequently voted in 10 elections between November 7, 2006 and November 6, 2018.  

Further, the indictment alleges that on April 17, 2007, and September 16, 2009, respectively, Baako and R.A.A. submitted passport applications on behalf of their minor children, in which Baako falsely claimed that he was a citizen of the United States, born in Hillsborough, North Carolina.  On April 22, 2008, Baako allegedly submitted an application for a United States passport for himself in which he falsely claimed that he was born in North Carolina, as were both of his parents.  As part of his passport application, Baako allegedly provided an affidavit purporting to be from a family friend, falsely stating that this person was one of the first people to see Baako after his birth and was present at a subsequent naming and baptism ceremony for Baako at a Hillsborough, North Carolina church.  Baako was issued a U.S. passport on April 29, 2008, which he allegedly used for international travel on several occasions. That passport included the false information that Baako was a citizen of the United States born in North Carolina.  According to the indictment, on July 31, 2012, Baako and R.A.A. submitted a passport renewal application on behalf of their first child, in which Baako falsely stated that he was a citizen of the United States.  On February 20, 2018, Baako allegedly filed a passport renewal application for his own passport, again falsely stating that he was a U.S. citizen born in North Carolina.  Baako was interviewed by Department of State officials on April 22, 2010, and on June 12, 2018.  The indictment alleges that in both interviews Baako falsely stated that he was born in Hillsborough, North Carolina.  The indictment alleges that in the 2018 interview Baako also falsely stated that he never applied for any immigration benefit with U.S. immigration authorities, nor submitted documents in an attempt to become a naturalized United States citizen.

If convicted, Baako faces a maximum sentence of 10 years in prison for each of four counts of passport fraud; a maximum of three years in prison for false claim to U.S. citizenship; and a maximum of one year in prison for each of three counts of illegal voting by an alien.  At today’s initial appearance in U.S. District Court in Baltimore/ Greenbelt, U.S. Magistrate Judge Stephanie Gallagher ordered that Baako be detained pending a detention hearing scheduled for May 10, 2019, at 11:45 a.m.

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 Robert K. Hur commended the State Department’s DSS for its work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Zachary A. Myers and Daniel A. Loveland, who are prosecuting the case.

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