District of Maryland

A federal grand jury returned an indictment yesterday charging an alleged MS-13 member residing in Arlington, Virginia with conspiracy to participate in a racketeering enterprise, conspiracy to distribute controlled substances, and conspiracy to interfere with interstate commerce by extortion. 

The indictment was announced by Acting Assistant Attorney General John P. Cronan; Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Special Agent in Charge Andre Watson of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Director in Charge Andrew W. Vale of the FBI Washington Field Office; Special Agent in Charge Karl C. Colder of the U.S. Drug Enforcement Agency (DEA); Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

Luis Arnoldo Flores-Reyes, aka Maloso and Lobo, 37, is charged in a four-count superseding indictment that alleges that from at least 2015 through January 2018, he was a member and associate of the Sailors Clique of MS-13 and that he engaged in a racketeering conspiracy that included extortion, drug trafficking, murder and a conspiracy to commit murder. The defendant is also charged with drug trafficking conspiracy and conspiracy to interfere with interstate commerce by extortion. Flores-Reyes is in custody. 

According to the indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. Eleven other individuals were previously charged in this case with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, drug trafficking conspiracy and conspiracy to interfere with interstate commerce by extortion.

For a period of time beginning at least in 2015 through in or about 2017, members of the Sailors Clique, including Flores-Reyes, are alleged to have extorted owners of illegal businesses in the Langley Park and Wheaton areas of Maryland, with the extortion proceeds being sent to El Salvador to benefit MS-13. In addition, between 2015 and 2018, members of the Sailors clique, including Flores-Reyes, are alleged to have trafficked narcotics, including marijuana and cocaine in Langley Park, Maryland, with the proceeds benefiting the gang. 

More specifically, in January 2018, Flores-Reyes gave directions to members of MS-13 in Houston, Texas that they should purchase a gun and shoot rival gang members who were believed to have killed a member of MS-13. On or about Jan. 28, 2018, members of MS-13 in Houston, Texas shot at and attempted to kill suspected rival gang members while Flores-Reyes and other MS-13 members, including MS-13 members in El Salvador, monitored the shooting by phone. 

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

Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Daniel C. Gardner of the U.S. Attorney’s Office for the District of Maryland are prosecuting this case.

                                                                         

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                   at (410) 209-4885

 

Greenbelt, Maryland – A federal grand jury returned an indictment yesterday charging an alleged MS-13 member residing in Arlington, Virginia with conspiracy to participate in a racketeering enterprise, conspiracy to distribute controlled substances, and conspiracy to interfere with interstate commerce by extortion.

The indictment was announced by Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Acting Assistant Attorney General John P. Cronan; Special Agent in Charge Andre Watson of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Director in Charge Andrew W. Vale of the FBI Washington Field Office; Special Agent in Charge Karl C. Colder of the U.S. Drug Enforcement Agency (DEA); Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

Luis Arnoldo Flores-Reyes, a/k/a “Maloso” and “Lobo”, 37, is charged in a four-count superseding indictment that alleges that from at least 2015 through January 2018, he was a member and associate of the Sailors Clique of MS-13 and that he engaged in a racketeering conspiracy that included extortion, drug trafficking, murder and a conspiracy to commit murder. The defendant is also charged with drug trafficking conspiracy and conspiracy to interfere with interstate commerce by extortion. Flores-Reyes is in custody. 

According to the indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.  Eleven other individuals were previously charged in this case with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, drug trafficking conspiracy and conspiracy to interfere with interstate commerce by extortion.

For a period of time beginning at least in 2015 through in or about 2017, members of the Sailors Clique, including Flores-Reyes, are alleged to have extorted owners of illegal businesses in the Langley Park and Wheaton areas of Maryland, with the extortion proceeds being sent to El Salvador to benefit MS-13.  In addition, between 2015 and 2018, members of the Sailors clique, including Flores-Reyes, are alleged to have trafficked narcotics, including marijuana and cocaine in Langley Park, Maryland, with the proceeds benefiting the gang.

More specifically, in January 2018, Flores-Reyes gave directions to members of MS-13 in Houston, Texas that they should purchase a gun and shoot rival gang members who were believed to have killed a member of MS-13.  On or about Jan. 28, 2018, members of MS-13 in Houston, Texas shot at and attempted to kill suspected rival gang members while Flores-Reyes and other MS-13 members, including MS-13 members in El Salvador, monitored the shooting by phone.

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

Acting United States Attorney Stephen M. Schenning commended the HSI, FBI, DEA and Prince George’s County, Hyattsville, and Montgomery County Police Departments for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys William D. Moomau and Daniel C. Gardner and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section who are prosecuting this Organized Crime Drug Enforcement Task Force case.

 

                                                                            

FOR IMMEDIATE RELEASE                               Contact ELIZABETH MORSE

www.justice.gov/usao/md                                             at (410) 209-4885      

 

Greenbelt, Maryland -  Transport Logistics International Inc. (TLI), a Maryland-based company that provides services for the transportation of nuclear materials to customers in the United States and abroad, agreed to resolve criminal charges in connection with a scheme that involved the bribery of an official at a subsidiary of Russia’s State Atomic Energy Corporation and to pay a $2 million criminal penalty.  Three individuals have been charged for their alleged roles in the bribery scheme.  

Acting U.S. Attorney Stephen M. Schenning of the District of Maryland, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Principal Deputy Inspector General April G. Stephenson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington, D.C. Field Office made the announcement.

TLI entered into a deferred prosecution agreement (DPA) with the Department in connection with a criminal information filed in the District of Maryland charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).  In the DPA, TLI and the Department agreed that, because of the company’s financial inability to pay the penalty calculated under the U.S. Sentencing Guidelines, the appropriate criminal penalty is $2 million.  As part of the agreement, TLI also committed to cooperate fully with the Department’s ongoing investigation, and to continue to implement a compliance and ethics program designed to prevent and detect violations of the FCPA and other anti-corruption laws throughout its operations.  In reaching the resolution with the Department, TLI received full credit for its substantial cooperation with the Department’s investigation and for engaging in remedial measures, including terminating the employment of all employees engaged in the misconduct.

“Bribery of foreign officials not only distorts markets and undermines democratic institutions; it can also pervert the incentives of those who are in a position to safeguard the public, as it did in this case involving the transportation of nuclear material,” said Acting Assistant Attorney General Cronan.  “Today’s resolution, along with the related charges against the corporate executives and the Russian official in this matter, underscore the Department’s continued commitment to holding both companies and individuals accountable for their roles in corruption-related crimes and for breaching the public’s trust.”

“The Department of Energy remains committed to ensuring the integrity of our contractors and subcontractors, as well as providing the nation transparency, accountability, and security when it comes to safe and reliable transport of sensitive materials,” said Principal Deputy Inspector General Stephenson.  “We appreciate the efforts of the FBI, the Justice Department’s FCPA Unit and the U.S. Attorney’s Office in pursuing this matter and will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”

“Today’s charges reflect the determination and ability of the FBI to investigate and prosecute companies that engage in foreign corrupt business practices, regardless of how sophisticated or far-flung the scheme may be,” said Assistant Director in Charge Vale.  “No entity is above the law and those that try to perpetrate a similar scheme will be pursued by the FBI.”

According to admissions and court documents, beginning in at least 2004 and continuing until at least 2014, TLI conspired with others to corruptly pay more than $1.7 million to offshore bank accounts associated with shell companies, at the direction of, and for the benefit of, Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation.  The bribe payments were made to help TLI secure improper business advantages and obtain and retain business with TENEX.   In order to effectuate and conceal the bribe payments, TLI executives and others caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided.  TLI then wired payments for those purported services to shell companies in Latvia, Cyprus and Switzerland to further the bribery scheme. 

On June 17, 2015, TLI co-president Daren Condrey pleaded guilty to conspiracy to violate the FCPA and commit wire fraud.  On Aug. 31, 2015, Mikerin pleaded guilty to conspiracy to commit money laundering involving violations of the FCPA, and Mikerin was sentenced to 48 months in prison on Dec. 15, 2015.  On Jan. 12, an 11-count indictment was unsealed against TLI co-president Mark Lambert, which charged Lambert with one count of conspiracy to violate the FCPA and to commit wire fraud, seven counts of violating the FCPA, two counts of wire fraud and one count of international promotion money laundering.  The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The cases against TLI and Lambert are assigned to U.S. District Court Judge Theodore D. Chuang of the District of Maryland. 

The case is being investigated by DOE-OIG and the FBI.  Assistant Chiefs Ephraim Wernick and Christopher J. Cestaro and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorneys David I. Salem and Michael T. Packard of the District of Maryland, are prosecuting the case.

The Criminal Division’s Office of International Affairs provided significant assistance in this matter.  The Department also thanks its law enforcement colleagues in Switzerland, Latvia and Cyprus for providing valuable assistance with the investigation and prosecution of the case.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

 

A federal jury today convicted Raul Ernesto Landaverde-Giron, aka Humilde and Decente, of Silver Spring, Maryland of conspiracy to participate in a racketeering enterprise in connection with his gang activity as a member of La Mara Salvatrucha, or MS-13.  Landaverde-Giron was also found guilty of murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; discharging a firearm during a crime of violence and murder resulting from the discharging of a firearm during a crime of violence.

The conviction was announced by Attorney General Jeff Sessions; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County, Maryland, Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville City Police Department; Chief Edward Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

“With more than 10,000 members across 40 U.S. states, MS-13 is one of the deadliest gangs in America,” said Attorney General Sessions. “That’s why the Trump administration and this Department of Justice have worked aggressively to dismantle this vicious gang and take its members off of our streets. Maryland in particular has suffered terribly because of MS-13’s campaign of rape, murder, and extortion. Today’s conviction is another victory for the American people against this uniquely barbaric gang, and I want to thank everyone who played a role in making it possible, especially Homeland Security Investigations, Prince George’s and Montgomery County police, Hyattsville police, and the Assistant U.S. Attorneys and Department of Justice Trial Attorneys who prosecuted the case. MS-13 thinks that they are targeting us—but we are targeting them.”
 
According to the indictment, MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland.  MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang.  One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.  MS-13 imposes “greenlights,” or orders to be killed, on members or associates who betray the gang by cooperating with law enforcement or violating significant gang rules.

According to evidence presented at the three-week trial, from at least 2012 through at least 2016, MS-13 members planned and committed numerous crimes, including murders and attempted murders in Prince George’s County and Frederick County.  Gang members also extorted owners of illegal businesses, among other crimes. Landaverde-Giron was a member of the MS-13 Normandie Locos Salvatrucha Clique.

Trial evidence showed that on Nov. 30, 2013, Landaverde-Giron, along with two other Normandie Clique members, murdered an individual in Frederick, Maryland, who had fled El Salvador to escape a greenlight imposed by MS-13 members in El Salvador.  After a co-conspirator recognized the victim in Frederick, Normandie Clique members called an MS-13 leader in prison in El Salvador to confirm the greenlight was still in effect.  A co-conspirator then lured the victim to a wooded area in Frederick, where he shot the victim in the head and Landaverde-Giron and another co-conspirator stabbed the victim in the face and neck.  Landaverde-Giron was promoted within the Normandie Clique for his participation in this murder.

Landaverde-Giron faces a mandatory sentence of life in prison for murder in aid of racketeering.  U.S. District Judge Peter J. Messitte has scheduled sentencing for June 13.  Landaverde-Giron remains detained.

In addition to this conviction, five of the seven defendants charged in this case have previously pleaded guilty to their roles in the racketeering conspiracy. 

HSI Baltimore, Frederick Police Department, Prince George’s County Police Department, Hyattsville City Police Department, Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office assisted in the investigation and prosecution.  The case was prosecuted by Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland.
 

                                                                              

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                    at (410) 209-4885

 

Greenbelt, Maryland – A federal jury today convicted Raul Ernesto Landaverde-Giron, a/k/a “Humilde,” a/k/a “Decente,” of Silver Spring, Maryland of conspiracy to participate in a racketeering enterprise in connection with his gang activity as a member of La Mara Salvatrucha, or MS-13.  Landaverde-Giron was also found guilty of murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; using, carrying and discharging a firearm during a crime of violence; and murder resulting from the use, carrying and discharging of a firearm during a crime of violence.

The conviction was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Attorney General Jeff Sessions; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County, Maryland, Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville City Police Department; Chief Edward Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

“With more than 10,000 members across 40 U.S. states, MS-13 is one of the deadliest gangs in America,” said Attorney General Sessions. “That’s why the Trump administration and this Department of Justice have worked aggressively to dismantle this vicious gang and take its members off of our streets. Maryland in particular has suffered terribly because of MS-13’s campaign of rape, murder, and extortion. Today’s conviction is another victory for the American people against this uniquely barbaric gang, and I want to thank everyone who played a role in making it possible, especially Homeland Security Investigations, Prince George’s and Montgomery County police, Hyattsville police, and the Assistant U.S. Attorneys and Department of Justice Trial Attorneys who prosecuted the case. MS-13 thinks that they are targeting us—but we are targeting them.”

According to the indictment, MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.  MS-13 imposes “greenlights,” or orders to be killed, on members or associates who betray the gang by cooperating with law enforcement or violating significant gang rules.

According to evidence presented at the three-week trial, from at least 2012 through at least 2016, MS-13 members planned and committed numerous crimes, including murders and attempted murders in Prince George’s County and Frederick County.  Gang members also extorted owners of illegal businesses, among other crimes. Landaverde-Giron was a member of the MS-13 Normandie Locos Salvatrucha Clique.

Trial evidence showed that on November 30, 2013, Landaverde-Giron, along with two other Normandie Clique members, murdered an individual in Frederick, Maryland, who had fled El Salvador to escape a greenlight imposed by MS-13 members in El Salvador.  After a co-conspirator recognized the victim in Frederick, Normandie Clique members called an MS-13 leader in prison in El Salvador to confirm the greenlight was still in effect.  A co-conspirator then lured the victim to a wooded area in Frederick, where he shot the victim in the head and Landaverde-Giron and another co-conspirator stabbed the victim in the face and neck.  Landaverde-Giron was promoted within the Normandie Clique for his participation in this murder.

Landaverde-Giron faces a mandatory sentence of life in prison for murder in aid of racketeering.  U.S. District Judge Peter J. Messitte has scheduled sentencing for June 13, 2018, at 9:30 am.  Landaverde-Giron remains detained.

In addition to this conviction, five of the seven defendants charged in this case have previously pleaded guilty to their roles in the racketeering conspiracy. 

Acting United States Attorney Stephen M. Schenning commended HSI Baltimore, Frederick Police Department, Prince George’s County Police Department, Hyattsville City Police Department, and Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office, for their work in the investigation and prosecution.  Mr. Schenning thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan, and Trial Attorney Francesca Liquori with the Justice Department’s Organized Crime and Gang Section, who are prosecuting the case.

 

 

FOR IMMEDIATE RELEASE                              CONTACT ELIZABETH MORSE

www.justice.gov/usao/md                                           at (410) 209-4885

                                                                                 

Baltimore, Maryland – United States Marvin J. Garbis sentenced Donald Russell, age 53, of Waldorf, Maryland today to five years in prison, followed by three years of supervised release for his participation in a drug conspiracy in connection with the operation of purported pain management clinics that were actually “pill mills.” Eleven co-conspirators previously pleaded guilty to the same charge.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Chief Gary Gardner of the Howard County Police Department; Charles County Sheriff Troy Berry; St. Mary’s County Sheriff Tim Cameron; Chief Hank Stawinski of the Prince George’s County Police Department; Calvert County Sheriff Mike Evans; Chief Peter Newsham of the Washington DC Metropolitan Police Department; Commissioner Darryl DeSousa of the Baltimore Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Colonel Gary T. Settle, Superintendent of the Virginia State Police.        

According to court documents, “pill mills” routinely engage in the practice of prescribing and dispensing controlled substances - primarily oxycodone - outside the scope of professional practice and without a legitimate medical purpose. The owners kept the profits from the pill mill operations and from the sales of oxycodone in cash.  According to the indictments, the owners recruited “distributors” and “runners” to visit their clinics so that they would profit from the cash fees charged for an office visit.  Runners are recruited - usually by a distributor - to enter pill mill clinics with fictitious complaints of pain in order to obtain prescriptions for oxycodone and other controlled substances.  Typically, runners filled the prescription and gave the oxycodone tablets they received to the distributor.  Runners were typically paid in either cash or oxycodone tablets for their services.  The distributors then generally sold the pills for a profit.

According to the plea agreement, from February 2014 through May 2015, Russell and co-defendant Bruce Kevin Lewis, age 52, of Deale, Maryland, owned and operated PG Wellness Center, LLC (PG Wellness), and A Plus Pain Clinic, LLC (A Plus Pain), purported pain management clinics located in Oxon Hill, Maryland and Washington, D.C., respectively.  PG Wellness and A Plus Pain were actually pill mills. 

Russell was captured on numerous wiretap calls buying and selling oxycodone pills, or prescriptions for oxycodone pills, from persons who regularly visited the clinics and/or arranged for others to do so.  For example, on September 28, 2014, Russell and co-defendant Walter Moffett had a series of calls about Mr. Moffett bringing two patients to the clinic.

Russell worked with at least 62 different individuals who visited the clinics to obtain illicit oxycodone prescriptions.  These included codefendants Melissa Catlett, Terrell Downing, John Fields, Ronald Kans, Robert Long, Walter Moffett, Ronald Rust, Danielle Silberstein, Peter Snyder, and Ronald Tennyson.

According to the plea agreement, on or about October 31, 2014, Russell and Lewis discussed the profits reaped that month from their clinics: $4,400 - 4,500 from A Plus Pain and $48,000-50,000 from PG Wellness. They talked about hiding the money and discussed methods that regulatory authorities had used when examining other pill mill clinics.

Over the course of the conspiracy, Russell distributed at least 2,307,000 milligrams (2,307 grams) of oxycodone.

The following 11 individuals have pleaded guilty to the conspiracy: Bruce Kevin Lewis, age 55, of Deale, Maryland; Danielle Silberstein, age 34, of Waldorf; Robert Long, age 37, of Mechanicsville, Maryland; Jamie Davis, age 31, of LaPlata, Maryland; Ronald Tennyson, age 35, of Mechanicsville; Terrell Downing, age 28, of New Carrollton, Maryland; John Fields, age 65, of Temple Hills, Maryland; Ronald Rust, age 47, of Alexandria, Virginia; Walter Moffett, age 54, of Chestertown, Maryland; Ronald Kans, age 44, of LaPlata, Maryland; and Peter Snyder, age 37, of Ocean City, Maryland.

Acting United States Attorney Stephen M. Schenning praised the DEA Tactical Diversion Squads from Baltimore and Washington DC, HHS-Office of Inspector General, Howard County Police Department, Charles County Sheriff’s Office, St. Mary’s County Sheriff’s Office, Prince George’s County Police Department, Calvert County Sheriff’s Office, Metropolitan Police Department, Baltimore County Police Department, Baltimore City Police Department, and Virginia State Police for their work in this pharmaceutical investigation.  Mr. Schenning thanked Assistant United States Attorney Kenneth S. Clark who is prosecuting this Organized Crime Drug Enforcement Task Force case.

March 13, 2018                                                                                    

FOR IMMEDIATE RELEASE                               Contact ELIZABETH MORSE

www.justice.gov/usao/md                                         at (410) 209-4885      

 

Baltimore, Maryland – Takuma Tate, a/k/a “Oop,” a/k/a “Ook,” age 39, of Baltimore pleaded guilty today to conspiracy to participate in a racketeering enterprise known as Murdaland Mafia Piru (MMP) and conspiracy to distribute controlled substances. 

Tate was one of 26 alleged MMP gang members and associates charged in this case.  Thirteen of the 26 defendants indicted have pleaded guilty to their participation in the racketeering conspiracy. 

The plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives—Baltimore Field Division; Commissioner Darryl DeSousa of the Baltimore Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police Department.

According to court documents, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that for many years controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County.  MMP was modeled after the Italian Mafia. Members and associates of MMP operated street-level drug distribution “shops” in various locations in Baltimore City and distributed heroin, cocaine, crack cocaine, fentanyl, and marijuana, among other controlled substances. 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  frequently attracted drug customers driving from western Maryland and neighboring states. MMP members were required to pay dues to the gang consisting of a portion of the proceeds of their criminal activities, and they were subject to reprisal—and sometimes murder—for failing to do so.  Non-members who wished to sell drugs in MMP’s territories were forced to pay a “tax” or were targeted for violence by MMP members.  MMP members enhance their status within the gang by carrying out acts of violence against rivals; for instance, members can earn a “lightning bolt” tattoo for “killing for the Mob.” 

The 32-count second superseding indictment alleges that from at least 2011 through 2017, the defendants were members and associates of MMP who engaged in criminal activities in furtherance of the gang, including five murders, six attempted murders, assaults, abduction, witness tampering, and drug distribution resulting in nonfatal overdoses.  Tate admitted that he agreed with members of MMP to conduct and participate in the gang’s affairs through a pattern of racketeering activity that included offenses involving drug distribution.  He also agreed that it was reasonably foreseeable to him that between one and three kilograms of heroin and between 280 and 840 grams of cocaine base would be distributed by members of the conspiracy.

The following 13 defendants were charged in the superseding indictment unsealed on September 27, 2016, and charges remain pending against them in the second superseding indictment:

Dante Bailey, a/k/a “Gutta,” “Almighty,” and “Wolf,” age 37, of Windsor Mill, Maryland; Dontray Johnson, a/k/a “Gambino,” “Bino,” and “Tray,” age 31, of Windsor Mill; Adrian Jamal Spence, a/k/a “Spittle,” “SP,” and “AJ,” age 29, of Baltimore; Randy Banks, a/k/a “Dirt,” age 38, of Baltimore;Ayinde Deleon, a/k/a “Murda,” and “Yin,” age 31, of Baltimore; Jamal Lockley, a/k/a “T-Roy,” and “Droid,” age 37, of Baltimore; Jacob Bowling, a/k/a “Jakey,” “Ghost,” and “Fred,” age 30, of Gwynn Oak, Maryland; Corloyd Anderson, a/k/a “Bo,” age 33, of Owings Mills, Maryland; Devon Dent, a/k/a “Tech,” age 26, of Gwynn Oak; Tiffany Bailey, a/k/a “Tiff,” age 31, of Windsor Mill; Shakeen Davis, a/k/a “Creams,” age 22, of Baltimore; Sydni Frazier, a/k/a “Sid,” a/k/a “Perry,” age 26, of Baltimore; and Malcolm Lashley, a/k/a “Spook,” age 27, of Baltimore.

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

In addition to Tate, the following 12 defendants have pleaded guilty to their participation in the racketeering conspiracy:

William Banks, a/k/a “Trouble,” age 27, of Baltimore; Dominick Wedlock, a/k/a “Rage,” and “Nick,” age 29, of Baltimore; Dwight Jenkins, a/k/a “Huggie,” and “Unc,” age 48, of Baltimore; Melvin Lashley, a/k/a “Menace,” age 26, of Baltimore; Maurice Pollock, a/k/a “Reese,” age 22, of Baltimore; Delante Lee, a/k/a “Tay Tay,” age 21, of Baltimore; William Jones, a/k/a “Bill,” and “Smalls,” age 27, of Baltimore; Jarmal Harrid, a/k/a “J-Rock,” and “PJ,” age 27, of Gwynn Oak; Jamal Smith, a/k/a “Mal,” and “Lil Mal,” age 25, of Gwynn Oak; Charles Blackwell, a/k/a “Ci-Bo,” and “Lil Charlie,” age 21, of Woodlawn; Kenneth Torry, a/k/a “Kenny,” age 39, of Owings Mills; Jay Greer, a/k/a “Champagne,” “Montana Gold,” and “Slick,” age 24, of Baltimore.

Tate and the government have agreed that if the Court accepts the plea agreement Tate will be sentenced to 10 years in prison followed by five years of supervised release.  U.S. District Judge Catherine C. Blake has scheduled sentencing for June 19, 2018 at 9:15a.m.

Acting United States Attorney Stephen M. Schenning commended the ATF, 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. Schenning thanked Assistant United States Attorneys Christina A. Hoffman and Lauren E. Perry, who prosecuted the case.

Transport Logistics International Inc. (TLI), a Maryland-based company that provides services for the transportation of nuclear materials to customers in the United States and abroad, agreed to resolve criminal charges in connection with a scheme that involved the bribery of an official at a subsidiary of Russia’s State Atomic Energy Corporation and to pay a $2 million criminal penalty.  Three individuals have been charged for their alleged roles in the bribery scheme.  

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephen M. Schenning of the District of Maryland, Principal Deputy Inspector General April G. Stephenson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington, D.C. Field Office made the announcement.

TLI entered into a deferred prosecution agreement (DPA) with the Department in connection with a criminal information filed in the District of Maryland charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).  In the DPA, TLI and the Department agreed that, because of the company’s financial inability to pay the penalty calculated under the U.S. Sentencing Guidelines, the appropriate criminal penalty is $2 million.  As part of the agreement, TLI also committed to cooperate fully with the Department’s ongoing investigation, and to continue to implement a compliance and ethics program designed to prevent and detect violations of the FCPA and other anti-corruption laws throughout its operations.  In reaching the resolution with the Department, TLI received full credit for its substantial cooperation with the Department’s investigation and for engaging in remedial measures, including terminating the employment of all employees engaged in the misconduct.

“Bribery of foreign officials not only distorts markets and undermines democratic institutions; it can also pervert the incentives of those who are in a position to safeguard the public, as it did in this case involving the transportation of nuclear material,” said Acting Assistant Attorney General Cronan.  “Today’s resolution, along with the related charges against the corporate executives and the Russian official in this matter, underscore the Department’s continued commitment to holding both companies and individuals accountable for their roles in corruption-related crimes and for breaching the public’s trust.”

“The Department of Energy remains committed to ensuring the integrity of our contractors and subcontractors, as well as providing the nation transparency, accountability, and security when it comes to safe and reliable transport of sensitive materials,” said Principal Deputy Inspector General Stephenson.  “We appreciate the efforts of the FBI, the Justice Department’s FCPA Unit and the U.S. Attorney’s Office in pursuing this matter and will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”

“Today’s charges reflect the determination and ability of the FBI to investigate and prosecute companies that engage in foreign corrupt business practices, regardless of how sophisticated or far-flung the scheme may be,” said Assistant Director in Charge Vale.  “No entity is above the law and those that try to perpetrate a similar scheme will be pursued by the FBI.”

According to admissions and court documents, beginning in at least 2004 and continuing until at least 2014, TLI conspired with others to corruptly pay more than $1.7 million to offshore bank accounts associated with shell companies, at the direction of, and for the benefit of, Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation.  The bribe payments were made to help TLI secure improper business advantages and obtain and retain business with TENEX.   In order to effectuate and conceal the bribe payments, TLI executives and others caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided.  TLI then wired payments for those purported services to shell companies in Latvia, Cyprus and Switzerland to further the bribery scheme. 

On June 17, 2015, TLI co-president Daren Condrey pleaded guilty to conspiracy to violate the FCPA and commit wire fraud.  On Aug. 31, 2015, Mikerin pleaded guilty to conspiracy to commit money laundering involving violations of the FCPA, and Mikerin was sentenced to 48 months in prison on Dec. 15, 2015.  On Jan. 12, an 11-count indictment was unsealed against TLI co-president Mark Lambert, which charged Lambert with one count of conspiracy to violate the FCPA and to commit wire fraud, seven counts of violating the FCPA, two counts of wire fraud and one count of international promotion money laundering.  The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The cases against TLI and Lambert are assigned to U.S. District Court Judge Theodore D. Chuang of the District of Maryland. 

The case is being investigated by DOE-OIG and the FBI.  Assistant Chiefs Ephraim Wernick and Christopher J. Cestaro and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorneys David I. Salem and Michael T. Packard of the District of Maryland, are prosecuting the case.

The Criminal Division’s Office of International Affairs provided significant assistance in this matter.  The Department also thanks its law enforcement colleagues in Switzerland, Latvia and Cyprus for providing valuable assistance with the investigation and prosecution of the case.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

                                                                         

FOR IMMEDIATE RELEASE                                                      Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                                 at (410) 209-4885

 

Baltimore, Maryland – A federal grand jury has indicted Antonio Johnson, age 49, of Baltimore, Maryland, today on ten counts of Hobbs Act robbery. 

The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Darryl DeSousa of the Baltimore Police Department.

According to the 10-count indictment, between January 23, 2018 and February 12, 2018, Johnson robbed ten Baltimore restaurants at gunpoint. Johnson is currently detained.

Johnson faces a maximum sentence of 20 years in prison for the robberies. 

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. 

Acting United States Attorney Stephen M. Schenning commended the FBI and the Baltimore City Police Department for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Matthew DellaBetta who is prosecuting the case.

                                                                                

FOR IMMEDIATE RELEASE                              Contact ELIZABETH MORSE

www.justice.gov/usao/md                                         at (410) 209-4885

 

Baltimore, Maryland – On March 8, 2018, Stewart Sachs, age 66, of Reisterstown, Maryland, pleaded guilty to money laundering drug proceeds.

The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore Division; and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation.

According to his plea agreement, between November 2011 and February 2013, Sachs agreed to accept a total of $425,000 of narcotics trafficking proceeds.  Mr. Sachs acknowledged that the money was tainted but agreed to sell his real estate, as a front for laundering the drug proceeds.

On four separate occasions, Sachs met with undercover agents and agreed to transfer real estate owned by Limited Liability Companies (LLCs) to the undercover agents or anyone else that the undercover agents wanted and no one would know that the undercover agent owned the properties, in exchange for cash. 

The male undercover agent had represented himself to be a narcotics officer on numerous occasions.  However, Sachs executed the documents to transfer ownership of the LLC to one of the undercover agents. Sachs had one of his employees prepare four checks payable to the undercover agent for $25,000 each.  These checks represented the $100,000 overpayment, which the undercover agent said he needed to appear to be legitimate income.   During the meeting, special agents from the DEA and IRS arrested Mr. Sachs and recovered the $425,000.

Sachs faces a maximum sentence of twenty in prison.  U.S. District Judge Marvin J. Garbis has scheduled sentencing for June 25, 2018 at 2:15 p.m.

Acting United States Attorney Stephen M. Schenning commended the DEA and IRS-CI for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys James Warwick and Cassie Mathias, who are prosecuting the case.

                                                                                 

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                                 at (410) 209-4885

 

Baltimore, Maryland – On March 8, 2018, a federal jury convicted Corey Hammond, age 30, of Nottingham, Maryland of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.

The conviction was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore Field Office; Commissioner Darryl DeSousa of the Baltimore Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police.

Evidence presented at the four-day trial included intercepted coded cellular telephone calls in which Hammond discussed with another co-conspirator “2 Peyton Mannings,” which an expert Task Force Officer with the Drug Enforcement Administration (DEA) interpreted to mean a kilogram of cocaine.  Peyton Manning’s jersey was 18.  18 ounces of cocaine equals 504 grams or one-half a kilogram.    The jury also saw an intercepted text message from yet another co-conspirator which read:  “256000 total at 32000.”  Evidence at trial established the price of each kilogram of cocaine was valued at $32,000.  The text message, according to the sender of the text and who testified at trial, represented 8 kilograms: 256,000 divided by 32,000 equals 8.  Upon receiving the text, Hammond sent a text of his own, which read “Don’t Text. We already agreed.  We’re on the same page.”

During the course of the trial, the jury also saw evidence of a seizure of almost 15 kilograms of cocaine, along with more than $520,000 in cash seized from Hammond’s co-conspirators.

Hammond, who previously had been convicted of a narcotics related offense in Baton Rouge, Louisiana, is facing a minimum mandatory sentence of 20 years, without parole.

Acting United States Attorney Stephen M. Schenning commended the DEA, the Baltimore City and Baltimore County Police Departments for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Christopher J. Romano and Special Assistant United States Attorney Jeffrey Hann, who prosecuted the case.

 

                                                                          

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885      

Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced Marco DeCamillo, age 41, of Reading, Pennsylvania today to 12 months in prison, followed by three years of supervised release, for mail fraud stemming from the sales of misbranded body armor. Judge Blake also ordered DeCamillo to pay $124,000 in restitution.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Special Agent in Charge Marlon V. Miller of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Philadelphia and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.

According to his plea agreement, De Camillo was a former police officer in West Reading, PA. During his tenure as a police officer, DeCamillo also owned and operated a business called Mad Dragon Tactical (MDT).  MDT sold law enforcement tactical gear, including body armor rifle plates, primarily on auction and shopping websites.  DeCamillo, through MDT, sold approximately $169,000 worth of body armor that was falsely classified as certified by the National Institute of Justice (NIJ). The NIJ conducts ballistic testing on body armor.  

DeCamillo falsely claimed that certain MDT body armor shields would protect against armor piercing rounds, and that certain products were made with the more robust HY80 and A4600 Steel. DeCamillo used his status as a police officer to sell the misbranded body armor rifle plates, understanding that several of his buyers were in law enforcement and/or military or defense and were relying on DeCamillo’s representations regarding the quality and safety of his products.

According to the plea agreement, on December 17, 2015, a defense contractor and NIJ accredited laboratory (“victim lab”) contacted the FBI with a complaint regarding the misuse of one of their ballistic data test sheets by MDT.  The FBI verified that DeCamillo, through MDT, had advertised online a set of body armor plates with an altered ballistic test sheet from the victim lab that had been completed in 2013.  The original 2013 test sheet provided the results of ballistic testing on a ballistic test shield, not steel body armor plates as advertised by MDT.  FBI agents viewed several MDT listings online and observed photographs of altered ballistic test sheets uploaded to each listing. 

In January and February 2016, the FBI in Maryland set up controlled purchases of the body armor online from MDT through an undercover identity.  All three shipments purchased listed DeCamillo’s home address in West Reading, PA as the return address and were delivered from Pennsylvania to Maryland via US Mail.  Inside each package was a hard copy of the altered ballistic test sheet (originating from the victim lab).  The HY80 altered ballistic test sheet included an additional hand-written note in the bottom margin stating, “Note-During testing Armor plate stopped (2) .308 Armor piercing Black Tip AP and (3) 7.62x39 Chinese Steel Core Armor Piercing AP rounds.” 

Numerous ballistics sheets that had been fraudulently altered with “white out” or other redactions were recovered from DeCamillo’s residence during the execution of a search warrant by HSI.

DeCamillo was interviewed by HSI and the FBI and admitted that he knew that his MDT body armor was not NIJ certified. 

Acting United States Attorney Stephen M. Schenning commended HSI and the FBI for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Rachel M. Yasser who is prosecuting the case.

 

                                                                                  

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                   at (410) 209-4885

 

Baltimore, Maryland – Loren Park, a/k/a “Loren Yong Park,” age 50, formerly of Falls Church, Virginia was arrested on February 22, 2018 in South Korea and extradited to Maryland to face charges relating to bank fraud.

In 2011, a federal grand jury indicted Park and his brother Yong Park, of Falls Church, Virginia and Nick Park, of McLean, Virginia on charges of conspiring to commit bank fraud in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million.

The arrest was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation;  U.S. Marshal for the District of Maryland Johnny Hughes; and Small Business Administration Acting Inspector General Hannibal “Mike” Ware.

According to the 2011 superseding indictment, the Park brothers owned Jade Capital & Investments, LLC. Jade Capital was a loan brokerage company operated by Joon and Loren Park and specializing in securing loans for individuals interested in purchasing or refinancing small businesses in the Mid-Atlantic area. According to the 2011 indictment, Joon, Loren and Nick Park 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% - 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.

The indictment alleges that from February 2005 until October 2011, Joon, Loren, and Nick Park submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients. The indictment alleges that the packages contained fraudulent personal financial statements and/or monthly bank statements which overstated the net worth and equity injection of the borrowers and falsely enhanced the creditworthiness of the borrowers and their businesses.

The indictment alleges that Joon and Loren Park altered copies of the borrowers’ monthly bank statements to fraudulently reflect more money than was actually in the accounts; created false bank statements for accounts that did not exist; and provided some of the financial institutions with misleading summaries of the borrowers’ business experience in order to falsely enhance the borrowers’ ability to manage the business and make the required loan payment.

The indictment further alleges that Joon, Loren and Nick Park and Jade Capital supplied some financial institutions with fraudulent gift letters falsely representing the source of the borrowers’ down payments and equity injections. Also according to the indictment, Joon Park, Loren Park and Jade Capital submitted financial documentation to lenders that misrepresented the equity injection of the principal owners of 51 businesses that had applied for SBA-guaranteed loans. In addition, the defendants 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 indictment alleges that Joon Park submitted fraudulent documentation, including a personal financial statement and monthly bank statements in connection with an SBA loan application for a car wash business in which he was the principal owner.

Parks co-conspirators all pleaded guilty and were sentenced to the following:

Joon Park was sentenced to 188 months in prison; Nick Park was sentenced to 33 months in prison; Joo Hyuk “John” Lee was sentenced to three years in prison; Sang Hyun Kim was sentenced to three years in prison; In Jung Ham was sentenced to a year and a day in prison; and Seung E. Oh, a/k/a Sandy Oh was sentenced to 51 months in prison.

Park faces a maximum sentence of 30 years in prison for the conspiracy.  Park remains detained.

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. 

Acting United States Attorney Stephen M. Schenning commended the FBI, U.S. Marshals and SBA for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Marty Clarke and Leo Wise, who are prosecuting the case.

 

                                                                               

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                    at (410) 209-4885

 

Greenbelt, Maryland – A federal jury has convicted former Maryland State Delegate Michael Lynn Vaughn, age 60, of Bowie, Maryland, of bribery and conspiracy in connection with a scheme in which he accepted bribes in exchange for influencing the performance of his official duties.

The conviction was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.

Vaughn was a Maryland State Delegate from January 2003 until January 2017, representing District 24, which covered portions of Prince George’s County, Maryland, and was the Deputy Majority Whip and a senior member of the Economic Matters Committee.

According to evidence presented at trial, from January 2015 through April 2016, then-Delegate Vaughn conspired with former Prince George’s County Liquor Board Commissioner and later, Chief Liquor Inspector, David Dae Sok Son, liquor store owners Young Jung Paig, Shin Ja Lee, and others to advance and vote for favorable legislation in exchange for cash payments.

According to evidence presented at trial, Vaughn took over $15,000 in cash bribes from Paig, Lee, and others, in exchange for influencing and voting for the 2015 Sunday Sales Bill and the related 2016 Additional Sunday Permits Bill, both of which became Maryland laws.  The 2015 Sunday Sales Bill established up to 100 Sunday liquor sales permits in Prince George’s County for certain license holders.  The 2016 Additional Sunday Permits Bill raised the limit of Sunday liquor sales permits in Prince George’s County from 100 to 105.  On at least six occasions, then-Delegate Vaughn voted in favor of the bills in the Prince George’s County Delegation meetings, in the Economic Matters Committee, and on the floor of the Maryland House of Delegates.

Vaughn faces a maximum sentence of 10 years in prison for each of four counts of bribery and five years in prison for the conspiracy count. No sentencing date has been scheduled.

Acting United States Attorney Stephen M. Schenning commended the FBI, IRS-CI, and Prince George’s County Police Department for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Thomas P. Windom and Phil Selden, who prosecuted the case, and Menaka S. Kalaskar, who assisted in the prosecution.

 

                                                                             

FOR IMMEDIATE RELEASE                              Contact ELIZABETH MORSE

www.justice.gov/usao/md                                         at (410) 209-4885

 

Baltimore, Maryland – Roger Spears, age 36, of Baltimore, Maryland, pleaded guilty today to brandishing a firearm in furtherance of the conspiracy to possess with intent to distribute controlled substances.

The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore Field Office; and Commissioner Darryl DeSousa of the Baltimore Police Department.

According to his plea agreement, on June 21, 2016, Spears carried out an armed home invasion in Anne Arundel County where he encountered one of the victims and pistol-whipped him in the face. Spears then took the victim to the upstairs bedroom where two other victims slept. He held all the victims at gunpoint and demanded their property. Spears stole jewelry, heroin, Xanax (alprazolam), money, and a.40 caliber handgun. According to the plea agreement, Spears sold the heroin that he stole during the robbery and kept the handgun. 

On July 25, 2016, at around 9:20 p.m., Spears was engaged in drug trafficking and had hidden a stash of 18 bags of cocaine in a bag on the porch. At around that time, Spears left the location, but left the bag hidden on the porch. He later returned in a minivan as a passenger to retrieve  the narcotics. As the minivan drove away from the location, a Baltimore City Police Department patrol vehicle attempted to stop the vehicle. The minivan fled from the patrol car and the Spears threw the bag with the gun and cocaine out of a window. The minivan subsequently crashed into a curb and Spears fled on foot. Spears was arrested by officers a short distance away.

Spears and the government have agreed that if the Court accepts the plea agreement, he will be sentenced to fifteen years in prison followed by a lifetime of supervised release.  U.S. District Judge Richard D. Bennett has scheduled sentencing for May 29, 2018 at 2 p.m.

Acting United States Attorney Stephen M. Schenning commended the DEA and the Baltimore City Police Department for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.

 

                                                                           

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885      

 

Baltimore, Maryland – Piere Ceradoy, age 37, of Crofton, Maryland, pleaded guilty today to coercion and enticement of a minor.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

According to his plea agreement, between February 2016 and April 2017, Ceradoy repeatedly enticed a minor female to take photographs and stream live videos of herself engaging in sexually explicit conduct and send those images and videos to Ceradoy using a mobile phone and the internet.  During the course of the exploitation of the victim, Ceradoy frequently threatened to expose the victim by disseminating the explicit files, and regularly threatened to kill the victim and her family.  Ceradoy also sent images and videos of himself engaged in sexually explicit conduct to the victim. The victim was 13 years old.

Ceradoy engaged in this conduct after two convictions in 2014 relating to aggravated sexual abuse, sexual abuse, and abusive sexual conduct involving a minor. During this time, he was on parole for a sex offense conviction in the state of Washington, and was registered as a sex offender. 

Ceradoy and the government have agreed that if the Court accepts the parties’ plea agreement Ceradoy will be sentenced to 25 years in prison and will be placed on supervised release for life.  United States District Judge Marvin J. Garbis has scheduled sentencing for May 25, 2018 at 2:00 p.m. Ceradoy remains detained pending sentencing.

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.        

Acting United States Attorney Stephen M. Schenning praised HSI Baltimore, the Maryland State Police and the Franklinton, North Carolina Police Department, for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the case.

 

                                                                        

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885      

Baltimore, Maryland – On February 27, 2017, U.S. District Judge Marvin J. Garbis sentenced Saleh Stevens, age 45, of Owings Mills, Maryland, to 30 months in prison, followed by 3 years of supervised release.  Judge Garbis also ordered that Stevens pay over $3.4 million in restitution.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation; and U.S. Trustee Gerard R. Vetter of the Baltimore office of the United States Trustee Program.

In August 2014, Stevens pleaded guilty to stealing over $3,000,000 from his employer, Hanover Insurance. According to his plea agreement. Stevens was an attorney licensed to practice in Maryland and worked as a senior claims adjustor and bond claim attorney in the bond department of The Hanover Insurance Company regional office in Towson, Maryland. In this position, Stevens was responsible for reviewing and managing claims related to surety bonds. These bonds were generally for construction projects to assist with claims processing. Hanover employed CPA firm accountants and engineers to assist Hanover manage and resolve claims.

Beginning in December 2011, Stevens began to embezzle funds from Hanover’s special surety workout accounts. These accounts were established and funded with Hanover’s reserve funds. Using his position as a bond claim attorney, Stevens directed the outside CPA firms to issue checks from these Hanover special reserve accounts to the bank accounts of third-party entities that Stevens either controlled, or were controlled by his friends.

For example, Stevens approached his high school friend and offered to pay him $40,000 in exchange for opening a nominee company with a bank account. His friend then opened Lundy Lighting Supply, LLC, a fictional corporate entity, that did not have a physical location, conduct any business, have any employees, nor any customers. Stevens sent embezzled funds to this fictitious company and accounts.

In some instances, Stevens directed the owners of these third-party entities to issue checks to him for his personal benefit or directed Hanover CPAs to issue checks made payable to entities that he controlled. Stevens used these funds to purchase luxury automobiles, (including a 2008 Maserati and a 2009 Mercedes), and a fifty-foot yacht. Stevens also spent approximately $1,900,000 to fund for a NASCAR racing team.

In total, Stevens embezzled $3,119,129.22 from The Hanover Insurance Company.

Co-conspirator, Eric Myles Gordon, age 50, of Baltimore County, Maryland, was previously convicted of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, and falsification of records in bankruptcy, and was sentenced to 36 months in prison.

Acting United States Attorney Stephen M. Schenning commended the FBI, and the United States Trustee’s Baltimore Office for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorneys Judson T. Mihok and P. Michael Cunningham, who prosecuted the case.

 

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885

Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Michael Wayne Brown, age 40, of Landover, Maryland, today to 10 years in prison followed by three years of supervised release for firearm possession and firearm possession in a school zone.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Hank Stawinski of the Prince George’s County Police Department.

According to his plea agreement on July 14, 2016, members of the Prince George’s Police Department executed a search warrant at Brown’s home in Landover. The residence was located near two difference school zones – the William Paca Elementary School and the Pentecostal Evangelical Church. During the course of the search, law enforcement officers recovered five grams of marijuana $5,200 and a loaded .40 caliber handgun.

Brown knowingly possessed the handgun, which was manufactured outside of Maryland, and he was not licensed to deal, import, manufacture or collect firearms. He also knowingly possessed the firearm on the grounds or within 1,000 feet of a school zone.

Acting United States Attorney Stephen M. Schenning commended the ATF and Prince George’s County Police Department for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorney Jennifer Sykes and Trial Attorney Sarah Edwards of the Criminal Division’s Fraud Section, who prosecuted the case.

                                                                  

FOR IMMEDIATE RELEASE                              Contact ELIZABETH MORSE

www.justice.gov/usao/md                                         at (410) 209-4885

Baltimore, Maryland –A federal grand jury has indicted Eric D. Price, age 58, of Fayetteville, North Carolina for conspiracy to defraud the United States and wire fraud charges related to payments to him for a "no show" job on a sub-contract under contracts awarded by the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland.

The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.

According to the seven-count indictment, in March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. Task Orders 11, 77 and 115 were placed against this contract. John Kays had a leadership position as a civilian employee of the Army related to these task orders.

Matthew Barrow was the President and owner of MJ-6, LLC, a company which he and his wife formed in Ohio in 2008 to obtain military subcontracts. John Kays steered business on Task Orders 77, 11, and 115 to MJ-6.

According to the indictment, Kays and Barrow agreed that Price would be added to the MJ-6 payroll. Price's job was purportedly to directly support Kays.  Price purportedly worked remotely at Fayetteville, North Carolina while Kays worked at APG. From February 2010 thru February 2012, Price allegedly fraudulently received more than $100,000 in salary payments for a "no show" job at MJ-6 for which MJ-6 billed over $400,000 to the prime contractor, which was passed through to the United States Army. Kays certified and approved MJ-6's work, including Price's "no show" job. To facilitate the “no show” job, Price allegedly submitted false and fictitious status reports and invoices through MJ-6 to the prime contractor.

Price faces a maximum sentence of 5 years in prison for the conspiracy; and 20 years in prison for each wire fraud count. An initial appearance has not yet been 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. 

In connection with a larger bribery scheme involving John Kays and Barrow, Barrow pleaded guilty to paying John Kays and his wife Danielle Kays, also a government official, bribes of approximately $800,000, including $500,000 in cash.  John Kays pleaded guilty to receiving bribes of approximately $800,000 from Barrow. John Kays' sentencing proceeding is scheduled for April 3, 2018, at 9 am before Judge Catherine C. Blake.  Barrow's sentencing is set for April 20, 2018, at 2 pm before Judge George L. Russell, III.  Danielle Kays is presently serving an 18 month sentence; she pleaded guilty to conspiracy to defraud the United States and bribery. John Kays, Danielle Kays, and Matthew Barrow all graduated from West Point where they were classmates.

The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs.  The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.

Acting United States Attorney Stephen M. Schenning commended the DCIS, Army Criminal Investigation Command, and FBI for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Joyce K. McDonald and Harry M. Gruber, who are prosecuting the case.

 

                                                                       

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                                 at (410) 209-4885

Baltimore, Maryland – On February 26, 2018, a federal jury convicted Timothy Allen McNeal, age 31, of Baltimore, Maryland, on charges of armed robbery, conspiracy, and brandishing a firearm during a crime of violence.

The verdict was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Division; and Chief Gary L. Gardner of the Howard County Police.

According to evidence presented at trial, on August 4, 2016, McNeal and his brother, Markus Fields, age 28, of Baltimore, robbed the Howard County Education Federal Credit Union (HCEFCU) in Ellicott City, Maryland at gun point. Surveillance video captured the robbery, during which both Fields and McNeal entered the credit union wearing ski masks to cover their faces. Fields entered first carrying a black backpack. McNeal entered after, carrying a rifle-style long gun with a large magazine visible on the top.  McNeal pointed the gun at a bank teller and a customer, while Fields walked to another room. McNeal forced the victims to the ground at gunpoint and moved behind the counter. Fields opened the teller drawer and began rifling through it.  McNeal, after closing the bank door, walked back to a supervisor’s office down a short hallway.

McNeal pointed the gun toward the supervisor’s office, forcing the employee to exit the office and, ultimately, open the safe in the lobby. After opening the safe, she was ordered to the ground where she remained while the Fields and McNeal removed cash from the safe.

McNeal then reached into the backpack Fields was carrying, removed zip ties, and zip tied the supervisor and customer. Fields used the zip ties to restrain the teller’s hands behind her back. McNeal and Fields then left the HCEFCU by climbing out of a window. 

McNeal, Fields and their mother, an employee of the Howard County School District, were all account holders at the HCEFCU. On August 4, 2016, a few hours after the robbery, McNeal and Fields went to Wal-Mart and purchased two large televisions, paying over $350 in cash for each. On August 6, 2016, two days after the robbery, Fields purchased a maroon Lexus and paid $4,620 in cash. On August 8, 2016, McNeal posted a photograph of a maroon Lexus with the caption “we working.” On August 17, 2016, over $2,600 in overdue rent was paid on Fields and McNeal’s residence.  

During execution of a search warrant, law enforcement recovered black ski masks, clothing matching the clothing worn by McNeal during the bank robbery, banded cash, and cell phones from Fields and McNeal’s residence 

Co-defendant Fields pleaded guilty to Armed Bank Robbery on February 9, 2018 and is scheduled for sentencing on May 8, 2018. Judge Catherine C. Blake has set sentencing for May 30, 2018 for McNeal.

Acting United States Attorney Stephen M. Schenning commended the FBI, ATF, Howard County Police and the Howard County State’s Attorney’s office for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Lauren Perry and Burden Walker who prosecuted the case.

                                                                        

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885      

 

Baltimore, Maryland – United States District Judge Marvin J. Garbis sentenced Brian Kenneth McCort, age 41, of Aberdeen, Maryland today to five years in prison, followed by 25 years of supervised release, for distribution of child pornography. Judge Garbis ordered that, upon his release from prison, McCort must register as a sex offender in the place 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 Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service – Mid Atlantic; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to his plea agreement, on three occasions between June and July 2015, using a peer-to-peer (“P2P”) file-sharing program connected to the internet, an investigator with the Maryland State Police (MSP) downloaded numerous files of child pornography from the McCort’s computer.

On September 2, 2015, a federal search warrant was executed at McCort’s residence and investigators seized McCort’s laptop that contained at least 26 images and 213 videos depicting minors engaging in sexually explicit conduct. Additional digital storage devices were recovered including a flash drive containing at least 152 images and 17 videos depicting minors engaging in sexually explicit conduct. Some of the victims were as young as 2 years old.

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.        

Acting United States Attorney Stephen M. Schenning praised HSI Baltimore, DCIS, and the Maryland State Police for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Paul Budlow and Daniel Gardner who prosecuted the case.

                                                                        

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                   at (410) 209-4885

 

Baltimore, Maryland – A federal grand jury indicted Kenneth Brian Fischer, age 39, of Westminster, Maryland yesterday for using a facility of interstate commerce to attempt to entice a minor to engage in sexual activity.

The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Sheriff James T. DeWees of the Carroll County Sheriff’s Office; Colonel Edwin C. Roessler Jr. of the Fairfax County, Virginia Police; and the Fairfax County Commonwealth's Attorney’s Office.

According to the single count indictment, between August 31, 2017 and September 5, 2017, Fischer used electronic mail and text messaging to attempt to coerce a minor to meet him for sex.   Fischer faces a mandatory minimum of ten years in prison and a maximum of life. 

Fischer was previously arrested in Westminster, Maryland on related charges and has been in custody since September 13, 2017. His initial appearance in federal court is not yet scheduled. The case has been assigned to the Honorable Richard D. Bennett. 

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

This case was 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.

Acting United States Attorney Stephen M. Schenning commended the FBI, MSP, the Carroll County Sherriff’s Office, the Fairfax County Police, and the Fairfax County Commonwealth's Attorney’s Office for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Ayn M. Ducao who is prosecuting the case.

February 22, 2018                                                                            

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                   at (410) 209-4885

 

Baltimore, Maryland – A federal grand jury has indicted Steven M. Williams a/k/a “Brother Ray,” a/k/a “Ray”, age 38, and Harry E. Rivers a/k/a “Hakeem,” a/k/a “Pots,” age 28, both of Delaware, for sex trafficking of a child and by force, fraud, and coercion.  The indictment was returned on February 21, 2018.

The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Matthew Donnelly of the Elkton Police Department.

According to the indictment, Williams and Rivers were pimps, engaged in the business of recruiting, enticing, harboring, transporting, providing, obtaining, advertising, and maintaining by any means girls and women to engage in commercial sex acts. In July 2017, a female child, “Girl 1,” was a victim of these crimes. “Girl 1” was a resident of Delaware, had recently completed the eighth grade, and was 15 years old.

Williams and Rivers both face a maximum sentence of life in prison. An initial appearance has not yet been 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 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.        

Acting United States Attorney Stephen M. Schenning commended the FBI, the Elkton Police Department, 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 work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Patricia McLane and Zachary A. Myers, who are prosecuting the case.

 

 

FOR IMMEDIATE RELEASE                                    Contact ELIZABETH MORSE

www.justice.gov/usao/md                                             at (410) 209-4885

           

Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced Glen Kyle Wells, a/k/a Lou, and Kyle, age 31, of Baltimore to 188 months in prison followed by five years of supervised release  for conspiracy to distribute and possession with intent to distribute heroin relating to a drug trafficking organization in North Baltimore.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration; Special Agent in Charge Gordon Johnson of the FBI, Baltimore Field Office; Sheriff Jeffrey R. Gahler of the Harford County Sheriff’s Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.

According to evidence presented at trial, from 2010 until the dates of their arrests, Wells and his co-conspirators distributed multiple kilograms of heroin to customers throughout the Baltimore area. Members of the conspiracy, known to law enforcement as the Shropshire Drug Trafficking Organization (DTO), distributed narcotics in Northern Baltimore, primarily near the Alameda Shopping Center. The Shropshire DTO distribution of heroin caused overdoses, including fatal overdoses.  For example, on December 27, 2011, J.L. died as a result of the use of narcotics that were distributed by the DTO. 

The evidence presented at trial showed that Wells received protection from corrupt former detective Momodu Gondo.  Gondo provided information about the location of law enforcement so that Wells could avoid being targeted by the police and could continue his drug distribution.

Additional evidence presented at trial showed that Wells, Gondo, and former detective Jemell Rayam committed an armed home invasion of a rival drug dealer of the Shropshire DTO.  Wells and Rayam entered the drug dealer’s residence and a woman was inside the residence.  Rayam pointed a gun at the woman and demanded money.  Wells and Rayam stole 800 grams of heroin, a firearm, a watch, and $12,000 in cash.  Wells sold the gun and heroin.  Wells, Rayam, and Gondo split cash proceeds from the items that were taken during the armed home invasion.

Fourteen former heroin customers of the defendants testified at trial, many of whom became addicted to heroin after having been prescribed or taken prescription opioids, including a customer who suffered from multiple sclerosis, a customer who had injured herself in a high school gymnastics accident, and a customer who was prescribed opioid painkillers after surgery.  Together, these customers purchased more than 17 kilograms of heroin from the defendants over the course of the seven-year conspiracy.

Co-defendant Antonio Shropshire, a/k/a Brill, B, and Tony, age 34, has been sentenced to 25 years in prison. Omari Thomas, a/k/a Lil’ Bril, Lil B, and Chewy, age 25, of Middle River, Maryland, has been sentenced to 6 years in prison. Alexander Campbell, a/k/a Munch, age 29, of Baltimore has been sentenced to 15 years and 8 months in prison followed by 5 years of supervised release. Antoine Washington, a/k/a Twan, age 27, of Baltimore was also convicted at trial and awaits sentencing.

Acting United States Attorney Stephen M. Schenning commended the DEA, FBI, Harford County Sherriff’s Office and the Baltimore County Police Department for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted this Organized Crime Drug Enforcement Task Force case.

                                                                         

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                   at (410) 209-4885

Baltimore, Maryland – A federal jury has convicted Mahmood Hussain Shah, age 58, of Catonsville, Maryland, on charges of wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash.

Shah and his co-defendant Muhammad Rafiq, age 33, of Reisterstown, Maryland, operated Corner Groceries, on Darley Avenue in Baltimore, and from October 2010 through August 2016, obtained more than $1,610,556 in payments for food sales that never occurred.

The verdict was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture Office of Inspector General, Northeast Region.

The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet.  In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card.  Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.

Retailers must apply to and be approved by FNS to participate in the program.  Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers.  Retailers must bill the government only in return for providing approved food items. 

When Shah exchanged EBT benefits for cash, he typically paid the SNAP recipient half the value of the EBT benefits and kept the other half for himself. To avoid detection, Shah often debited the funds from the card in multiple transactions over a period of hours or days, or called a different store where the transaction was processed manually.

Shah faces a maximum sentence of 20 years in prison for the conspiracy. His sentencing date has been set for May 29, 2018.

Acting United States Attorney Stephen M. Schenning commended the FBI and USDA Office of Inspector General for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Sean R. Delaney and Paul E. Budlow, who prosecuted the case.

 

A Maryland gang member pleaded guilty today to his participation in a racketeering enterprise in furtherance of the activities of the gang known as La Mara Salvatrucha, or MS-13, including his participation in two conspiracies to commit murder.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephen M. Schenning of the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County, Maryland, Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief Edward Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy made the announcement.

Selvin Raymundo Salazar, aka “Inquieto,” aka “Little,” 26, pleaded guilty before the Honorable Judge Peter J. Messitte in the District of Maryland to conspiracy to participate in a racketeering enterprise.   

“Selvin Raymundo Salazar and his MS-13 clique terrorized communities in Maryland by committing senseless acts of violence,” said Acting Assistant Attorney General Cronan. “Today’s guilty plea makes plain the Department’s unwavering commitment to working with our federal, state, and local partners to use all lawful tools at our disposal to disrupt the significant threat that this violent and ruthless gang poses to our communities.”

“MS-13 is a transnational criminal organization that presents a direct public safety threat, not just to the Maryland-area communities we’ve been sworn to protect, but also to communities across the country,” said Special Agent in Charge Watson.  “Homeland Security Investigations is committed to investigating MS-13 criminal activities, collaborating with our local law-enforcement partners to crackdown on this international gang and ensuring that Maryland remains safeguarded from the violent crimes MS-13 commits.”

According to the plea agreement, MS-13 is a national and international gang composed primarily of immigrants or descendants of immigrants from El Salvador.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland.  MS-13 members are required to commit acts of violence within the gang and against rival gangs.  One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.

Pursuant to his plea agreement, Salazar admitted that from at least 2012 through at least 2014, he was a member and associate of the Normandie Locos Salvatrucha clique of MS-13.  Salazar admitted that on Feb. 28, 2013, and again on July 30, 2014, for the purpose of maintaining and increasing his position in MS-13, he and other MS-13 members conspired to murder victims that he and his co-conspirators had identified as chavalas.

Specifically, Salazar admitted that on Feb. 28, 2013, in the Lewisdale community of Prince George’s County, Maryland, he and members of the Sailors Locos Salvatrucha Westside clique of MS-13 traveled in a vehicle, searching for chavalas.  Salazar was armed with a .380 caliber handgun that belonged to the Normandie clique.  After observing an individual that he and his co-conspirators believed to be a chavala, a co-conspirator took the firearm from Salazar, and Salazar and a co-conspirator exited the car and approached the victim, who was standing with a companion.  Salazar’s co-conspirator took the handgun from Salazar and shot the victim as the victim’s companion ran away.  Salazar and his co-conspirator ran back to the vehicle and he and the occupants of the vehicle fled.  Salazar then returned the .380 caliber firearm to the Normandie clique. 

Salazar further admitted that on July 30, 2014, in Hyattsville, Maryland, he and at least two other members or associates of the Normandie clique of MS-13 approached three victims.  According to Salazar, two of his co-defendants pulled out firearms and shot one of the victims  seven times, causing wounds to the victim’s upper torso, right arm and face.  The second victim sustained a gunshot wound to his right side.  Salazar further stated that, prior to the shooting, he and his co-conspirators had been informed by an associate of MS-13 that the victims were chavalas.  

Five of the shell casings recovered from the scene of the July 30, 2014 shooting were linked to fired casings recovered at other MS-13-related crime scenes, including the Feb. 28, 2013 shooting described above; a murder that took place in Hyattsville, Maryland on Nov. 11, 2012; and a shooting that took place in Laurel, Maryland on March 28, 2014. 

Two of Salazar’s co-defendants remain charged in the third superseding indictment with various racketeering violations and multiple violent crimes, including murder.  The trial of one of the remaining defendants is scheduled to commence on Feb. 20.  An indictment is merely an allegation.  Those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

Salazar is scheduled to be sentenced on May 23.

HSI Baltimore, the Prince George’s County Police Department, the Frederick County Police Department, the Hyattsville City Police Department, the Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office investigated the case.  Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan are prosecuting the case. 

FOR IMMEDIATE RELEASE                              Contact ELIZABETH MORSE

www.justice.gov/usao/md                                         at (410) 209-4885

Greenbelt, Maryland – A Maryland gang member pleaded guilty today to his participation in a racketeering enterprise in furtherance of the activities of the gang known as La Mara Salvatrucha, or MS-13, including his participation in two conspiracies to commit murder.

Acting U.S. Attorney Stephen M. Schenning of the District of Maryland; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County, Maryland, Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief Edward Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy made the announcement.

Selvin Raymundo Salazar, aka “Inquieto,” aka “Little,” 26, pleaded guilty before the Honorable Judge Peter J. Messitte in the District of Maryland to conspiracy to participate in a racketeering enterprise.  

“Selvin Raymundo Salazar and his MS-13 clique terrorized communities in Maryland by committing senseless acts of violence,” said Acting Assistant Attorney General Cronan. “Today’s guilty plea makes plain the Department’s unwavering commitment to working with our federal, state, and local partners to use all lawful tools at our disposal to disrupt the significant threat that this violent and ruthless gang poses to our communities.”

According to the plea agreement, MS-13 is a national and international gang composed primarily of immigrants or descendants of immigrants from El Salvador.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland.  MS-13 members are required to commit acts of violence within the gang and against rival gangs.  One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.

Pursuant to his plea agreement, Salazar admitted that from at least 2012 through at least 2014, he was a member and associate of the Normandie Locos Salvatrucha clique of MS-13.  Salazar admitted that on Feb. 28, 2013, and again on July 30, 2014, for the purpose of maintaining and increasing his position in MS-13, he and other MS-13 members conspired to murder victims that he and his co-conspirators had identified as chavalas.

Specifically, Salazar admitted that on Feb. 28, 2013, in the Lewisdale community of Prince George’s County, Maryland, he and members of the Sailors Locos Salvatrucha Westside clique of MS-13 traveled in a vehicle, searching for chavalas.  Salazar was armed with a .380 caliber handgun that belonged to the Normandie clique.  After observing an individual that he and his co-conspirators believed to be a chavala, a co-conspirator took the firearm from Salazar, and Salazar and a co-conspirator exited the car and approached the victim, who was standing with a companion.  Salazar’s co-conspirator took the handgun from Salazar and shot the victim as the victim’s companion ran away.  Salazar and his co-conspirator ran back to the vehicle and he and the occupants of the vehicle fled.  Salazar then returned the .380 caliber firearm to the Normandie clique. 

Salazar further admitted that on July 30, 2014, in Hyattsville, Maryland, he and at least two other members or associates of the Normandie clique of MS-13 approached three victims.  According to Salazar, two of his co-defendants pulled out firearms and shot one of the victims  seven times, causing wounds to the victim’s upper torso, right arm and face.  The second victim sustained a gunshot wound to his right side.  Salazar further stated that, prior to the shooting, he and his co-conspirators had been informed by an associate of MS-13 that the victims were chavalas.  

Five of the shell casings recovered from the scene of the July 30, 2014 shooting were linked to fired casings recovered at other MS-13-related crime scenes, including the Feb. 28, 2013 shooting described above; a murder that took place in Hyattsville, Maryland on Nov. 11, 2012; and a shooting that took place in Laurel, Maryland on March 28, 2014. 

Two of Salazar’s co-defendants remain charged in the third superseding indictment with various racketeering violations and multiple violent crimes, including murder.  The trial of one of the remaining defendants is scheduled to commence on Feb. 20.  An indictment is merely an allegation.  Those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

Salazar is scheduled to be sentenced on May 23.

HSI Baltimore, the Prince George’s County Police Department, the Frederick County Police Department, the Hyattsville City Police Department, the Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office investigated the case.  Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan are prosecuting the case. 

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                                 at (410) 209-4811

Baltimore, Maryland – On February 12, 2018 a federal jury has convicted Detective Daniel Thomas Hersl, age 47, of Joppa, Maryland and Detective Marcus Roosevelt Taylor, age 30, of Glen Burnie, Maryland for racketeering conspiracy and racketeering offenses, including robbery and overtime fraud.

The conviction was announced by Acting United States Attorney Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson 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; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Sheriff Jeffrey R. Gahler Harford County Sheriff’s Department.

Hersl and Taylor were convicted of racketeering conspiracy, racketeering, and Hobbs Act Robbery. The two defendants were acquitted of possession of a firearm in furtherance of a crime of violence.

According to evidence presented at the three-week trial, Hersl and Taylor stole money, property and narcotics from victims, some of whom had not committed crimes; swore out false affidavits; submitted false official incident reports; and engaged in large-scale over time and attendance fraud.

In some cases, there was no evidence of criminal conduct by the victims; the officers stole money that had been earned lawfully. In other instances, narcotics and firearms were recovered from arrestees. In several instances, the defendants did not file any police reports. The amounts stolen ranged from $200 to $200,000. 

Count One, racketeering conspiracy, charged 14 acts of robbery and extortion violations committed by Hersl and Taylor in 2015 and 2016 when they were officers in the police department’s Gun Trace Task Force, a specialized unit created to investigate firearms crimes. 

Count Two, a substantive racketeering charge, alleged those crimes as well as 16 acts of robbery and extortion committed by Hersl and Taylor beginning in 2015, before they joined the task force.

Count Three and Five, charged Taylor and Hersl, respectively with Hobbs Act Robbery and Extortion.

Count Four and Six, charged Taylor and Hersl, respectively with Possession of a Firearm in Furtherance of a Crime of Violence

It was proven at trial that Hersl and Taylor stole money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, the defendants prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents.

The following six co-defendants had all previously pleaded guilty to federal racketeering charges;

            Sergeant Thomas Allers, age 49, of Linthicum Heights, Maryland

            Detective Momodu Bondeva Kenton Gondo, a/k/a GMoney and Mike, age 36,

            of Owings Mills, Maryland;

            Detective Evodio Calles Hendrix, age 32, of Randallstown, Maryland;

            Sergeant Wayne Earl Jenkins, age 37, of Middle River, Maryland;

            Detective Jemell Lamar Rayam, age 37, of Owings Mills;

            Detective Maurice Kilpatrick Ward, age 37, of Middle River.

Hersl and Taylor each face 20 years in prison for racketeering conspiracy, 20 years in prison for racketeering, and 20 years in prison for Hobbs Act Robbery.  

Sentencing dates for Hersl and Taylor have not yet been scheduled.

Acting United States Attorney Stephen M. Schenning commended the FBI, DEA, Baltimore County Police Department, and Harford County Sheriff’s Department for their work in the investigation. Acting U.S. Attorney Schenning also thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted this Organized Crime Drug Enforcement Task Force case.

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885

 

Baltimore, Maryland – Four Maryland men have been indicted in connection with a conspiracy to commit murder in aid of racketeering and murder in aid of racketeering:

Daniel Flores-Ventura, a/k/a “Necio,” age 24, of Aspen Hill, Maryland;

Vilas Sail Argueta-Bermudez, a/k/a “Happy,” a/k/a “Little Happy,” a/k/a “Enchilada,” age 31, of Aspen Hill , Maryland;

Willians Ernesto Lovos-Ayala, a/k/a “Tigre,” age 25, of Woodbridge, Virginia; and

Michael Campos-Lemus, a/k/a “Humilde,” age 24, of Aspen Hill, Maryland.

All of the defendants are in custody.

The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigrations and Customs Enforcement – Homeland Security Investigations, Baltimore Field Office; Special Agent in Charge Gordon Johnson of FBI, Baltimore Field Office; Chief Barry M. Barnard of Prince William County, Virginia Police; and Chief Edward Hargis of the Frederick Police Department.

According to the indictment, the defendants allegedly engaged in murder conspiracy and committed a murder on July 16, 2015 in Montgomery County, Maryland. The victim had been reported missing on July 18, 2015 and his body was found on September 29, 2015 in Woodbridge, Virginia.

MS-13 is a national and international gang composed primarily of immigrants or descendants of immigrants from El Salvador.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.  The defendants were allegedly members of the Uniones and Molinos Clique of MS-13.  The two count indictment alleges that from at least 2015 through September 2017, the defendants were members and associates of MS-13 who planned and committed murders, drug trafficking and extortions.

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.

Acting United States Attorney Stephen M. Schenning thanked HSI, the FBI, the Prince William Police Department and the Frederick Police Department. Mr. Schenning also commended Assistant United States Attorneys Kenneth Clark and Clinton Fuchs and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section who are prosecuting this case.

                                                                         

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885

 

Baltimore, Maryland – United States District Judge George L. Russell has sentenced Mark Dennis, age 30, of Laurel, to 27 months in prison, and Charles Mensah, age 32, of the Bronx, New York, to 30 months in prison, followed by 5 years of supervised release for conspiracy to commit bank and wire fraud, bank and wire fraud, and aggravated identity theft. The charges stem from a scheme to defraud in 2014, which attempted to steal nearly $1.4 million in funds from the personal, retirement, and business accounts of various victims. The Court also ordered each man to pay over $229,000 in restitution. Both men are lawful permanent residents of the United States and citizens of Ghana.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement - Homeland Security Investigations, Baltimore Office; and Police Chief Terrence B. Sheridan of the Baltimore County Police.

According to evidence at presented at the 10-day trial, in 2014, co-defendant Mohammed Kwaning acquired account information from the individual victims, as well as forged checks containing bank account information of both individual and corporate victims from across the United States.

Mohammed then recruited individuals, including Dennis and Mensah, who registered corporate shell entities with the state of Maryland. The individuals Mohammed recruited then set up bank accounts at multiple banking institutions in the names of these shell entities. Kwaning then either directed that the funds from the compromised accounts be wired into those bank accounts or provided altered or fabricated checks from compromised accounts to Mohammed, who then provided the checks to Dennis and Mensah, to be deposited into those bank accounts. After doing so, those same individuals would attempt to withdraw as much of the stolen funds before the banks discovered that the source of the funds were compromised accounts.

Some of the accounts were compromised by individuals who called into investment firms pretending to be the actual account holders, and then eventually providing enough correct answers in order to reset the password for the account. Individuals also hacked the emails of victims and, posing as the account holders, requested funds be wired from their retirement accounts to the bank accounts of the shell corporations controlled by the conspirators. The loss attempted over the course of nine months was over $1.3 million; the conspirators were able to withdraw over $229,000 of stolen funds, which they then split amongst themselves.

Kwaning was also found guilty at trial and his sentencing hearing is pending. Badu, Mohammed, Davies, and Fosu had all previously pleaded guilty. Badu was sentenced to 6 months, and the remaining sentencing hearings are pending.

Acting United States Attorney Stephen M. Schenning commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Paul E. Budlow and Judson T. Mihok, who prosecuted this case.

                                                                             

FOR IMMEDIATE RELEASE                              Contact ELIZABETH MORSE

www.justice.gov/usao/md                                         at (410) 209-4885

 

Greenbelt, Maryland – Mehlek Dawveed, age 51, of Olney, Maryland, pleaded guilty today to wire fraud stemming from the filing of fraudulent tax returns, in which he received one fraudulent refund of more than $970,000.

The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation.

 According to his plea agreement, from 2011 through 2014 Dawveed filed fraudulent Income Tax Returns for 2010 and 2011 that resulted in him receiving a refund in the amount of $977,558. Upon receipt of the funds, Dawveed wired the money from a bank in Kansas City, Missouri to his account in Maryland.

Using part of the fraudulently obtained funds, Dawveed paid the remaining $83,837 balance on the mortgage for his residence in Olney, Maryland and deposited a $250,000 check into a bank account controlled by Dawveed’s wife. Dawveed wrote several other checks into accounts controlled by him or close associates and wrote checks to various individuals and family members and for his own personal expenses.

On February 18, 2012, Dawveed filed a fraudulent Income Tax Return for 2011 in which he requested a refund in the amount of $1,324,961. This falsely requested refund was not issued. On February 27, 2012, Dawveed then filed a 2010 Form 1040X, Amended U.S. Individual Income Tax Return, where he changed his taxable interest income from $1,486,902 to $0 and stated: “we now beckon you to accept our humblest apology for the ‘Unintentional Errors’ made during our 1040 filing for Tax Year 2010 for they were not done with ‘Malicious Intent.’”  The form falsely stated:  “In ‘Good Faith’ we submitted a Payment of $5,000,000 Million Dollars to the IRS on January 31, 2012 in hopes of settling the remaining ‘Debt’ from our 1040 Tax Filing for Year 2010.”  No such $5,000,000 payment was ever made.

As part of the plea agreement, the Court will enter a forfeiture order for the fraudulently received funds as well as his Olney residence, which he paid off with the fraudulent tax refund money.

Dawveed faces a maximum sentence of 20 years in prison.  U.S. District Judge George J. Hazel has scheduled sentencing for May 21, 2018 at 2 p.m.

Acting United States Attorney Stephen M. Schenning commended the IRS for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney’s Kelly O. Hayes and Sean R. Delaney who are prosecuting the case.

 

 

                                                                         

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885      

 

Greenbelt, Maryland –United States District Judge George J. Hazel sentenced Andrew Dean Bailey, age 32, of Germantown, Maryland, today to 10 years in prison, followed by three years of supervised release, for possession with intent to distribute cocaine and being a felon in possession of a firearm. 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Mark P. Sroka of the Gaithersburg Police Department.

According to his plea agreement, on March 23, 2017, law enforcement officers executed a search warrant at Bailey’s residence in Germantown, Maryland, where they located a firearm, ammunition, narcotics, narcotics paraphernalia, and cash.  Among other things, officers seized a loaded .40 caliber handgun, additional .40 caliber rounds of Winchester ammunition, and approximately 96 grams of cocaine, 3 grams of alprazolam, and 1 gram of morphine pills.  Officers also seized $15,900 in drug-trafficking proceeds.

Bailey admitted that he intended to sell the cocaine found in his apartment, and that he possessed that loaded .40 caliber handgun in order to protect his drugs and drug-trafficking proceeds.

Prior to March 23, 2017, Bailey had been convicted of a crime punishable by more than one year of imprisonment (and his civil rights had not been restored), which prohibited him from legally possessing firearms or ammunition.

Judge Hazel ordered the forfeiture of the $15,900, the handgun and the ammunition.

Acting United States Attorney Stephen M. Schenning praised the DEA, Montgomery County Police and Gaithersburg Police for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Michael Packard and Timothy Hagan who prosecuted the case.

 

                                                                        

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                                 at (410) 209-4885

 

Greenbelt, Maryland – A federal grand jury has indicted Thai national, Apichart Srivaranon, age 32, of Patumthanee Province, Thailand, on charges related to a conspiracy, between 2012 and 2016, to unlawfully export arms and munitions from the United States to Thailand and witness tampering. The indictment was returned on November 9, 2016, and was unsealed on January 23, 2018, upon the arrest of Srivaranon in Las Vegas, Nevada.

The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Ashan M. Benedict Special Agent in Charge for New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF.)

The case against Srivaranon is assigned to U.S. District Court Judge George J. Hazel of the District of Maryland.

According to the five-count indictment, Srivaranon obtained firearm parts in the United States that are and were listed on the United States Munitions List and exported them to Thailand without having first obtained the required license or written authorization from the Directorate of Defense Trade Controls, an office in the United States Department of State.

In furtherance of the conspiracy, Srivaranon purchased firearms parts online from United States gun manufacturers.  These firearms parts included key components for AR-15 and M-16 military-style assault rifles.  Srivaranon then had the firearms parts sent to addresses in the United States where his co-conspirators lived, visited, or conducted business, including Ohio, New York, Maryland and Nevada.  Srivaranon recruited his co-conspirators, often Thai women who were living in the United States for the first time as au pairs and, in one instance, a University of Maryland college student, through social media.  Upon receipt of the munitions, Srivaranon directed his co-conspirators to repackage the parts and falsely label United States Postal Service (USPS) Customs forms.  Srivaranon also directed his co-conspirators to falsely declare the contents of these packages upon shipment, listing the contents as spare parts, bicycle parts, fishing parts, or toy parts, and then ship them to Thailand via the USPS and private shipping companies.  To avoid detection, Srivaranon instructed his co-conspirators to alternate the frequency and addresses of shipments, as well as the estimated value of the contents of the shipments.

In addition, following the detection of one of Srivaranon’s co-conspirators, an au pair in New York, the co-conspirator advised Srivaranon that the ATF was investigating their conduct.  Srivaranon responded and advised this co-conspirator to tell the ATF that she had never sent any firearms “barrels” to Thailand.  Srivaranon also contacted the Chief Operating Officer of an American firearms manufacturer with which Srivaranon had previously placed multiple firearms parts orders, and asked that the Chief Operating Officer delete Srivaranon’s order history from the manufacturer’s database. 

Srivaranon is charged with: (1) conspiring to violate the Arms Export Control Act (“AECA”), 22 U.S.C. § 2778, and 18 U.S.C. § 554, in violation of 18 U.S.C. § 371; (2) three substantive AECA violations for attempts to export firearms parts to Thailand in September 2013 and October 2013; and (3) tampering with a witness, in violation of 18 U.S.C. § 1512(b)(3).  Srivaranon faces a maximum sentence of five years in prison for the conspiracy; and a maximum sentence of twenty years in prison for unlawfully attempting to export arms and munitions and witness tampering.  An initial appearance has been scheduled for today at 11:45 a.m. in the U.S. District Court in Greenbelt.

The Justice Department’s National Security Division, Counterintelligence and Export Control Section (CES) and the Criminal Division’s Office of International Affairs (OIA) have both provided significant assistance in this matter. The Department also thanks Thailand’s Department of Special Investigation for providing valuable assistance with the investigation and prosecution of the case.

Acting United States Attorney Stephen M. Schenning commended ICE-HSI, the ATF and the U.S. Customs and Border Protection for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Bryan Foreman who are prosecuting the case.

 

                                                                       

FOR IMMEDIATE RELEASE                              Contact ELIZABETH MORSE

www.justice.gov/usao/md                                         at (410) 209-4885

 

Baltimore, Maryland – Integral Consulting Services, Inc. has agreed to pay the United States $505,838.00 to settle False Claims Act allegations that it submitted false claims to the United States by inflating certain indirect cost rates in connection with work performed on a Department of the Army contract. 

The civil settlement was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal and Civil Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army CID.

Integral Consulting Services, Inc. (“ICS”) is a Maryland-based company that provides IT solutions to federal government agencies and commercial organizations.  The services ICS provides range from biometric technologies to enterprise IT management and development of software applications.  In 2012, ICS was awarded an Army contract, W911W5-12-D-0002, under which it was required to provide the Army’s National Ground Intelligence Center’s Biometric Intelligence Program with identity intelligence analysis support.   

The civil settlement agreement resolves allegations that from on or about May 1, 2012 through June 27, 2014, ICS took costs and expenses it and its employees incurred in connection with litigation arising out of a teaming agreement with another contracting company and included the costs and expenses in the General and Administration (“G&A”) indirect cost pool that was spread amongst ICS’s various government contracts, including Army Contract Number W911W5-12-D-0002, and submitted to the United States government.  The inclusion of such costs had the effect of inflating the claims paid by the Army to ICS.

The civil settlement resolves United States ex rel. Amit Dalal v. Integral Consulting Services, Inc., Civ. No. GJH-14-2529 (D. Md.), a lawsuit filed by a relator under the whistleblower provision of the False Claims Act.  The Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the recovery by the United States. As part of the civil resolution, the relator will receive approximately $92,315.   

The claims resolved by the settlement were allegations only about which there has been no judicial finding of liability, and Integral denies liability.

Acting United States Attorney Stephen M. Schenning commended the DCIS and the Army Major Procurement Fraud Unit for their work in the investigation and thanked Assistant U.S. Attorneys Sarah Marquardt and Tarra DeShields who handled this case.

 

                                                                        

FOR IMMEDIATE RELEASE                              Contact ELIZABETH MORSE

www.justice.gov/usao/md                                         at (410) 209-4885

 

Washington D.C. / Greenbelt, Maryland – Two area men have been arrested in an investigation that led to the seizure of firearms, ammunition and narcotics at various locations in the District of Columbia and Maryland, including a barbershop and surrounding property in Southeast Washington.

The charges were announced today by Acting United States Attorney Stephen M. Schenning, United States Attorney Jessie K. Liu; Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Special Agent in Charge Daniel L. Board, Jr., of the Bureau of ATF - Baltimore Field Division; Peter Newsham, Chief of the Metropolitan Police Department (MPD); and Henry P. Stawinski III, Chief of the Prince George’s County, Maryland Police Department.

On Feb. 1, 2018, law enforcement agents from ATF, MPD and the Prince George’s County Police Department executed search warrants on three locations and five vehicles linked to a seven-month investigation into alleged drug trafficking from the Next Level Cuts barbershop and surrounding property in the 2400 block of Martin Luther King, Jr. Avenue SE.  The searches led to the seizure of firearms, ammunition, and quantities of narcotics.

The investigation established that drug traffickers would use the barbershop and adjoining property as a stash location for the trafficking of narcotics. A search at that location led to the seizure of more than $7,000 in cash, more than 800 grams of PCP, more than 300 grams of heroin, boxes of Suboxone strips, three firearms, and ammunition.

As a result of the search warrants, Anthony Fields, 44, of Washington, D.C., was arrested and charged in a criminal complaint filed in the U.S. District Court for the District of Columbia with drug trafficking offenses. As a result of a subsequent search warrant executed in Prince George’s County, James Venable, 46, of Fort Washington, Md., was arrested by Prince George’s County officers on narcotics and firearms charges.

The charges in criminal complaints are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

In announcing the arrests and seizures, Acting United States Attorney Stephen M. Schenning, United States Attorney Liu, Special Agent in Charge Chittum, Special Agent Board, Chief Newsham, and Chief Stawinski commended the work of those who are investigating the case. They also acknowledged the efforts of those who are handling the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Christopher Macchiaroli, and from the U.S. Attorney’s Office for the District of Maryland, including Assistant U.S. Attorney Jennifer Sykes.

                                                                        

FOR IMMEDIATE RELEASE                              Contact ELIZABETH MORSE

www.justice.gov/usao/md                                         at (410) 209-4885

 

Greenbelt, Maryland – On January 31, 2018, Stanley Eugene Green, Jr., age 42, of Takoma Park, Maryland, pleaded guilty to Distribution of Heroin, and Possession of Firearms in Furtherance of a Drug Trafficking Crime.  The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr., of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Baltimore Field Division; and Police Chief Antonio DeVaul of the Takoma Park Police Department.

According to his plea agreement, between in or about February 2015, and continuing through April 27, 2017, in the District of Maryland and elsewhere, Green, together with others, distributed, conspired to distribute, and possessed with intent to distribute heroin and fentanyl.  During the conspiracy, Green obtained distribution quantities of heroin (that contained fentanyl), and redistributed those drugs to users in Montgomery County, Maryland, and elsewhere.

In August 2016, law enforcement officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Takoma Park Police Department received information from a confidential informant about narcotics distribution in Takoma Park, Maryland, specifically 636 Houston Court, Takoma Park, Maryland (an apartment complex with multiple residential units).  Between August 2016 and April 2017, ATF and local law enforcement identified and investigated someone named “Rico” who was selling heroin (later found to contain fentanyl).  Law enforcement identified “Rico” as Green.

In late January 2017, a victim who obtained heroin from Green suffered an overdose and required emergency medical attention.  The victim fell into a coma and thereafter required hospitalization and physical rehabilitation, and was hospitalized for approximately 2½ months.

United States District Judge George J. Hazel has scheduled the sentencing for April 5, 2018. 

As part of his plea agreement, Green will be required to forfeit the firearms and ammunition seized during the search of his residence, as well as the $37,592.00.

Acting United States Attorney Stephen M. Schenning praised the ATF Baltimore Field Division, Takoma Park Police Department, and Montgomery County Police Department for their work in the investigation. He also recognized the assistance Harford County Sheriff’s Office and the Drug Enforcement Administration gave to the lead investigating agencies. Mr. Schenning thanked Assistant United States Attorney Thomas M. Sullivan, who is prosecuting the case.

 

                                                                    

FOR IMMEDIATE RELEASE                              Contact ELIZABETH MORSE

www.justice.gov/usao/md                                         at (410) 209-4885

 

Greenbelt, Maryland – United States District Judge Deborah J. Chasanow sentenced Jason Andre Armstrong, age 43, of Leonardtown, Maryland to 10 years in prison followed by three years of supervised release for being a felon in possession of a firearm.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Sheriff Timothy K. Cameron of the St. Mary’s County Sheriff’s Department; and Richard Fritz of the St. Mary’s County State’s Attorney’s office.

According to his plea agreement, on March 5, 2016, Armstrong entered a residence in Lexington Park, Maryland, demanded money from the occupants and threatened them with a handgun. Armstrong then left the residence, got into the rear driver’s side passenger seat of a vehicle, and the vehicle drove away.  Shortly after receiving a description of the vehicle, St. Mary’s County Sheriff’s officers stopped the vehicle and arrested Armstrong. 

Officers recovered a 9mm caliber semi-automatic pistol from underneath the driver’s seat on the rear passenger side. The pistol was reported stolen in 1995 from a federally licensed firearms store in St. Mary’s County, Maryland. After the officers advised Armstrong of his rights on the scene, Armstrong admitted that he possessed the firearm.

On April 20, 2005, in St. Mary’s County, Maryland, Armstrong was convicted of robbery. As a felon, Armstrong was prohibited from possessing a firearm.           

Acting United States Attorney Stephen M. Schenning commended the FBI, the St. Mary’s County Sheriff’s Department and the St. Mary’s County State’s Attorney’s Office, for their work in the investigation and prosecution.  Mr. Schenning thanked Assistant U.S. Attorney Kelly Hayes, who prosecuted the case.

                                                                          

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885      

 

Baltimore, Maryland – On January 30, 2018, United States District Judge James K. Bredar sentenced Joseph R. Dominici, age 31, of Annapolis, Maryland to four years in prison, followed by three years of supervised release for wire fraud and aggravated identity theft. The wire fraud charges stem from a telemarketing scheme to defraud real estate professionals around the country who paid to advertise on websites owned by Dominici. The aggravated identity theft charges stem from a scheme to use stolen credit card information to create and use fraudulent “cloned” credit cards.

On January 31, 2018, Judge Bredar sentenced Christina O. Price, age 23, of Bowie, Maryland to one year in prison followed by one year of supervised release, for her role in the credit card fraud scheme. Carlos Ledbetter, age 31, formerly of Annapolis, Maryland, was previously sentenced to six months in prison for his role in the credit card fraud, followed by four years of supervised release.

The sentences were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Christopher Caruso of the United States Secret Service - Baltimore Field Office; Chief Timothy J. Altomare, Anne Arundel County Police Department; and Anne Arundel County State’s Attorney Wes Adams.

According to court documents, Dominici owned and operated JJ&M Enterprises, LLC, a business based in Annapolis, Maryland, operating to provide leads to real estate professionals seeking to advertise their services to potential homebuyers. Dominici registered two websites which he and JJ&M used to conduct business: BuyerHomeSite.com and FreeHomeFind.com.

The websites purported to contain active listings of homes for sale, and allowed potential homebuyers to browse home listings in a selected geographic area.  The websites also represented to realtors or loan officers that they could pay to become a “preferred expert” in each of the geographic regions that they chose.  If a prospective home buyer (user) searched the websites for properties in an area where a real estate professional had paid to become the “preferred expert,” the websites displayed an ad that included the real estate professional’s photograph and contact information.  For a monthly fee of approximately $299, the websites would grant a real estate professional exclusive access to all leads generated on the websites associated with the real estate professional’s assigned geographic area. 

From March 2014 to October 2015, Dominici represented to real estate professionals that such leads included personal information provided by a potential homebuyer, where in fact, the leads sent to the real estate professionals contained fictitious information created by Dominici and individuals employed by JJ&M. Dominici created fictitious identities, including names, email addresses and cell phone numbers.  He provided cell phones to a JJ&M employee which had the name and phone number of a fictitious identity taped to the back.  Dominici also posted false and duplicative “testimonials” from “satisfied” customers on the websites. 

Dominici had employees make unsolicited telephone sales calls to many thousands of real estate professionals located all over the United States.  Dominici provided JJ&M employees with scripts and talking points to use in soliciting real estate professionals to pay to become the “preferred expert” for their area on the websites. As a result of these sales calls, more than 1,000 real estate professionals agreed to pay approximately $299 per month to be advertised as preferred experts.

As a result of this telemarketing fraud scheme, Dominici obtained more than $895,568.31 from real estate professionals.  As part of Dominici’s sentence, Judge Bredar also ordered forfeiture of Dominici’s funds in thirteen bank accounts.

In addition to the telemarketing fraud scheme, Dominici also engaged in a credit card fraud scheme, using stolen account information he obtained from corrupt restaurant servers and from a black marked “carding” website to create “cloned” credit cards. Christina Price, then a server at a restaurant in Gambrills, Maryland, used electronic devices known as “skimmers” to fraudulently obtain the credit card information of restaurant customers who paid by credit card.  Price then provided this stolen customer information to Dominici, who used special equipment to encode the stolen account information onto new “cloned” credit cards. Dominici and Carlos Ledbetter, then an employee of JJ&M, used the “cloned” cards to purchase goods and services, primarily gift cards that can be used like cash. The credit card fraud scheme victimized a number of financial institutions and dozens of individuals, resulting in losses of approximately $29,280.13.

Acting United States Attorney Stephen M. Schenning commended the U.S. Secret Service, Anne Arundel County Police Department, HSI Baltimore, Prince George’s County Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Zachary A. Myers and Special Assistant U.S. Attorney Angela Tang, who prosecuted the case.

 

                                                                           

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885        

Greenbelt, Maryland – On January 29, 2018, United States District Judge George J. Hazel sentenced Demetrius Murray, age 23, of Silver Spring, Maryland to 21 years in prison, followed by a lifetime of supervised release, for Production of Child Pornography.  Judge Hazel also ordered forfeiture of electronic devices seized from Murray and used by Murray to produce and store child pornography.  Murray is also required to register as a sex offender.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI);  and Sheriff Terry Thompson of the Weber County, Utah, Sheriff’s Office.

 

According to his plea agreement, Murray contacted an eleven-year-old boy in Utah, Victim A, through Xbox Live and then through a private chat on KIK, an internet-based chat service.  Murray and Victim A at some point switched to Skype, an internet-based chat and video streaming service.  Murray streamed pictures of himself masturbating to the boy over Skype.  Victim A created a video of himself masturbating, which depicted child pornography, and sent the video to Murray as part of a text message.  Murray, after receiving the video, converted it into six still-frame pictures and sent the pictures back to Victim A.  Victim A’s mother learned of Murray’s interaction with her son and reported Murray’s conduct to the National Center for Missing and Exploited Children (“NCMEC”).

 

As a result of the NCMEC Cybertip, HSI agents and officers from the Montgomery County Police Department executed a search warrant at Murray’s home in January 2016.  Agents recovered more than 600 images and more than 400 videos depicting minors, the vast majority of which depicted child pornography.

 

Forensic examination of Murray’s iPhone seized during the search showed that in May and June 2015, Murray had engaged in text messaging with a boy, Victim B, who lived in Alabama.  Victim B told Murray that he was 14 years old.  Nevertheless, Murray requested that Victim B send pictures of his body and pictures of himself masturbating.  Victim B sent the requested pictures.  When Murray learned that Victim B had a four-year-old relative, Victim C, Murray requested that Victim B send pictures of Victim C performing oral sex on Victim B.  Victim B sent the pictures, which depicted child pornography.

 

Acting United States Attorney Stephen M. Schenning praised HSI, the Montgomery County Police Department, and the Weber County Utah Sheriff’s Office for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Joseph Baldwin, who prosecuted the case.

 

                                                                        

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885      

 

Greenbelt, Maryland – On January 26, 2018, United States District Judge Paula Xinis sentenced Margie Lou Franz, age 73, of Warfordsburg, Pennsylvania to 21 months in prison, followed by three years of supervised release, for wire fraud. Xinis also ordered Franz to pay $970,964.76 in restitution. 

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; and Rene Febles, Deputy Inspector General for Investigations for the Federal Housing Finance Agency, Office of Inspector General.

  

According to her plea agreement,  Franz managed the day-to-day operations of a title company (Title Company A) located in Laurel, Maryland where she prepared paperwork for settlements (including HUD-1s and disbursement statements), conducted settlements, controlled the escrow account, and conducted banking transactions.

  

From at least June 2013 through November 2014, instead of disbursing funds as required by the HUD-1s for those real estate transactions, Franz transferred money through wires or checks to herself and other individuals not listed on the HUD-1s, paid outstanding debts on prior transactions for which Franz had not made proper disbursements, or paid off loans to individuals from whom Franz had previously borrowed money to cover shortfalls in Account 3542. Franz caused at least $970,964.76 in combined losses.

 

In June 2013, Franz used the Title Company A to handle the closing of her house in Annapolis, Maryland.  At the time of the sale of the property, there were three liens on the property, however Franz only disclosed one of the loans. At the time of the closing, the buyers believed that the property was only encumbered by one lien that would be paid off as part of the transaction as reflected on the HUD-1.  The disbursement statement, prepared by Franz, also reflected that a payment was made to the bank. 

 

On June 12, 2013, Franz caused a wire of approximately $502,949.51 to be sent from the buyer’s lender to the Title Company A, with the understanding that a portion of the loan from the bank was supposed to be used to pay off the existing lien on the property. Franz never actually disbursed any money from Title Company A’s escrow account.  Instead, Franz issued a $100,000 check to her husband and a $77,724.65 check jointly to her and her husband.

 

From June 2013 through January 2015, Franz continued to make monthly payments on the existing lien on the property held by Citibank to hide the fact that the lien had not been paid off when the buyers bought the property.  By January 2015, however, Franz could no longer keep up with the payments and the bank sent a foreclosure notice to buyers. 

 

In October 2014, an individual in Derwood, Maryland hired Title Company B to refinance their home loan.  As part of the closing, Title Company B was to pay off five existing liens, held by three separate banks. In October 2014, Franz contacted Employee 1 at Title Company B and instructed Employee 1 to wire a large portion of the proceeds from the individuals refinancing to Title Company A’s escrow account and then permit Franz to handle the disbursements.  This arrangement was contrary to the instructions in the HUD-1 settlement statement for the refinancing.  Neither Franz nor Employee 1 sought Individual 1’s permission for this new arrangement.  Franz told Employee 1 that Franz needed the money in Title Company A’s escrow account for a few days to cover some costs and that Franz then would pay the liens held by CitiMortgage and Chase.

 

Employee 1 made two separate wire transfers from Title Company B’s escrow account to Title Company A’s escrow account.  On October 6, 2014, Franz caused Title Company B to wire $328,277.36 from a Virginia bank to a North Carolina account held by Title Company A.  On October 23, 2014, Franz caused Title Company B to wire $121,751.67 from another Virginia bank to a North Carolina account held by Title Company A.  Franz did not pay off the existing liens on Individual 1’s properties.  Instead, Franz paid off some of the existing debts on prior transactions and paid off some loans Franz had taken for prior shortfalls. 

 

Acting United States Attorney Stephen M. Schenning praised Federal Housing Finance Agency, Office of Inspector General for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorney’s Kristi O’Malley and Kelly O’Connell Hayes, who prosecuted the case.

 

                                                                        

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE www.justice.gov/usao/md                                                     at (410) 209-4885

 

 

Baltimore, Maryland – Acting United States Attorney Stephen M. Schenning announced that the District of Maryland collected $122,236,532.64 in criminal and civil actions in Fiscal Year 2017.  Of this amount, $12,749,554.70 was collected in civil actions and $109,486,977.94 was collected in criminal actions.  

 

Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $36,033,331.72 in cases pursued jointly with these offices.    Of this amount, $35,737,378.12 was collected in civil actions and $295,953.60 was collected in criminal actions.         

             

Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.      

 

The statistics show that the $12,749,554.70  collected in civil actions in Maryland, include affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations. These recoveries reflect civil enforcement actions for violations of federal health, safety, civil rights or environmental laws, and debts collected on behalf of several federal agencies, including the Department of Defense, the Department of Treasury, U.S. Department of Health and Human Services, and the Drug Enforcement Administration.

 

These cases include the successful resolution of False Claims Act investigations against AC4S, Inc., to settle allegations that it submitted inflated invoices to the government for work performed at Joint Base Andrews; Comprehensive Health Services, Inc., to settle allegations that it knowingly double-charged for vision screenings and electrocardiograms when those costs were included in the bundled contract price for medical exams performed for IRS Special Agents; and Dr. Hitesh Patel and Dr. Darab Hormozi to settle allegations that they billed false claims to Medicare.  Additionally, the District of Maryland collected civil penalties under the Controlled Substances Act on behalf of the Drug Enforcement Administration from its investigation of Cardinal Health for failing to report suspicious orders of controlled substances to the DEA.

 

The U.S. Attorneys’ Offices, along with Department of Justice litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department of Justice Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

 

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

 

Additionally, the U.S. Attorney’s office in the District of Maryland, working with partner agencies and divisions, collected $9,876,957 in asset forfeiture actions in FY 2017.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

 

 

 

                                                                           

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885      

 

 

Baltimore, Maryland – On January 25, 2018, United States District Judge James K. Bredar sentenced Brian Shumate, age 50, of Edgewood, Maryland to 31 years in prison, followed by a lifetime of supervised release for the sexual exploitation of children.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.

According to court documents, between 2013 and 2015, Shumate used online sites to find and communicate with minors as young as 13.  Shumate initiated sexually explicit communication with the female victims and sent images of his genitals to them.  He then pressured the victims to take photographs of themselves engaging in sexually explicit conduct. Shumate would misrepresent himself online and would initially pretend to be a teenage boy. In some instances, after corresponding with his victims for a time, Shumate would disclose his real age and threaten the victims and their families, unless the victims continued to send him content.

After being convicted for traveling to Pennsylvania in 2004 to have sex with a 12-year-old female who he asked to call him “daddy,” Shumate served a seven-year prison sentence.  Upon his release in 2012, he violated his parole on three separate occasions, was convicted for failing to register as a sex offender, and was subsequently arrested on May 22, 2014.  

In June 2014, while in the Harford County Detention Center, Shumate called an acquaintance who informed him that the FBI was asking about his phone and social network accounts, including email and Facebook.  The acquaintance also told Shumate that the FBI wanted access to Shumate’s phone and tablet.  Shumate instructed the acquaintance to delete specific numbers and images from the phone (the numbers and images were all females), and to wipe the phone of all content.

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.        

 

Acting United States Attorney Stephen M. Schenning praised the FBI for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow who prosecuted the case.

 

 

                                                                          

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885      

 

 

Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced Patrick Brian Mobley, age, 42, of Dallas, Texas today to 96 months in prison, followed by five years of supervised release for conspiracy to distribute crystal methamphetamine. 

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Karl C. Colder of the Drug Enforcement Agency - Washington Division Office; Superintendent of the Maryland State Police Colonel William M. Pallozzi; and Chief of Police U. Renee Hall of the Dallas Police Department.

Also charged in the conspiracy were Jeffrey Saunders Harrington, age 48, of Severn, Maryland; Bernard Thomas Mozdenski, age 42, of Fort Worth, Texas; and Charles Todd, age 35, of Glen Burnie, Maryland. Mozdenski was previously sentenced to six years in prison; Harrington was previously sentenced to 70 months in prison; and Todd was sentenced to 64 months in prison. Each prison sentence will be followed by five years of supervised release.

According to court documents Mobley sold quantities of crystal methamphetamine and gamma-hydroxybutric acid, a controlled substance also known as GHB, to co-conspirators and customers in various regions of the United States.  Using the business names “PBMobes” and “CloudMobes,” Mobley also maintained a website advertising and listing prices for various quantities of crystal methamphetamine under the guise of marketing cloud storage. During the course of the conspiracy, Mobley sold and shipped at least 15 kilograms of crystal methamphetamine to co-conspirators, who then distributed quantities of the drugs to others.

Between October 2015 and February 2017, Harrington placed orders for quantities of crystal methamphetamine with Mobley. These payments made for the drugs included more than 40 cash deposits totaling more than $60,000. Mobley shipped approximately 55 packages containing more than two kilograms of crystal methamphetamine to Maryland.  From this supply, Harrington sold and distributed the crystal methamphetamine to customers in Maryland.

 

On February 16, 2017, law enforcement intercepted a package in Maryland that had been sent from Mobley in Dallas, Texas to Harrington’s residence in Severn, Maryland.  After a controlled delivery of the package to Harrington’s residence and the arrests of Harrington and Todd, law enforcement executed a search warrant at the house. Inside the house, investigators found several small plastic baggies containing crystal methamphetamine, bundles of unused plastic baggies, several digital scales, and other evidence of drug distribution. A subsequent examination of Harrington’s cell phone revealed text messages between Harrington and Todd during the week prior to their arrest in which the two discussed illegal drug sales and purchasing a re-supply of drugs.

 

Undercover law enforcement subsequently placed an order for two ounces of crystal methamphetamine from Mobley and interdicted the package on February 25, 2017. Mobley was arrested on March 9, 2017, in Dallas, Texas. During the search of his residence, investigators found package delivery service documents, quantities of crystal methamphetamine and other suspected controlled substances in plastic baggies and other containers, a digital scale with white residue, and various equipment and materials used for packaging controlled substances.  A Hi-Point 9mm semiautomatic pistol and a magazine containing eight rounds of 9mm ammunition was found in a locked safe.

 

Mozdenski was subsequently arrested while attempting to deliver a quantity of crystal methamphetamine to Mobley’s residence in Dallas. 

 

Acting United States Attorney Stephen M. Schenning praised the DEA for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Matthew Maddox who prosecuted the case.

 

 

 

FOR IMMEDIATE RELEASE                                    Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885

           

 

Baltimore, Maryland –A federal jury has convicted three defendants for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (BGF) gang’s Greenmount Avenue Regime.  Gerald Thomas Johnson, a/k/a Geezy, and Gzy Tha Prince, age 35; Kenneth Jones, a/k/a, K-Slay, and Slay, age 30; and Marquise McCants, a/k/a Digga, age 25, all of Baltimore, Maryland, were convicted of conspiring to violate federal racketeering and drug trafficking laws.

 

Johnson was also convicted of conspiracy to commit murder in aid of racketeering, murder in aid of racketeering, possession of ammunition by a felon and possession with intent to distribute crack cocaine.  McCants was convicted of possession of a firearm by a felon.

 

The following six co-defendants, also members of the BGF gang, had all previously pleaded guilty to conspiring to violate federal racketeering and drug trafficking laws;

 

Wesley Jamal Brown, a/k/a Shike White and Wes, age 25

David Albert Hunter, a/k/a Lil Dave, and Dave, age 30;

Montel Harvey, a/k/a Telly, Telephone, and Big Head, age 25;

Kenneth Lee Faison, a/k/a Roscoe, age 28;

Joseph Laurence Bonds, a/k/a/ Joe, and Yo Gotti, age 36; and

Norman Tyrone Handy, a/k/a Lil Norm, and Norm, age 23.

 

The conviction was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Darryl De Sousa of the Baltimore Police Department; Maryland Attorney General Brian E. Frosh; and Baltimore City State’s Attorney Marilyn Mosby.

 

“This case is emblematic of the ability of federal prosecution, using tolls such as RICO, to go after the violent gangs plaguing Baltimore City. The federal agents and task force officers worked long hours with the AUSAs to build this case which resulted in a successful outcome,” said Acting United States Attorney Stephen M. Schenning.

 

“These convicted defendants are ruthless gang members, who acted with a total disregard for the sanctity of human life.  Make no mistake, their cowardice behavior and violent criminal acts terrorized our communities,” said Daniel L. Board, Jr., ATF Baltimore Field Division Special Agent in Charge. “But today’s verdict is true justice for the involved victims and their families, and the citizens of Baltimore. This result is the culmination of nearly two years of relentless, dedicated work by ATF Baltimore, the Baltimore City Police Department and our formidable partnership with the United States Attorney’s Office.”

 

According to the evidence presented at the two-month trial, the defendants were members of an organization known today as the BGF Greenmount Regime, a violent set, or “bubble,” of BGF.  During the early years in which it operated, the gang called itself the Young Guerilla Family, or YGF, and consisted mostly of younger people who lived in the 2200, 2300, and 2400 blocks of Barclay Street and Guilford Avenue. YGF members sold drugs throughout the Greenmount Avenue corridor and committed murders, shootings, and armed robberies.

 

In about mid-2007, YGF members took the BGF oath and became the BGF Greenmount Regime.  According to evidence presented at trial, the BGF Greenmount Regime continued to sell drugs and commit violent acts, including murders, shootings and robberies, and by mid-2013 controlled the roughly rectangular area bordered by Greenmount Avenue to the east; Guilford Avenue to the west; 25th Street to the north; and Federal Street to the south, as well as certain offshoots east of Greenmount Avenue, including Mund Park and Cokesbury Avenue.

 

Beginning in 2005, Johnson supplied drugs to the YGF members for further distribution and was the leader of YGF.  During the conspiracy, the defendants distributed powder and crack cocaine, heroin, ecstasy, marijuana, and oxycodone.  BGF Greenmount Regime members and associates purchased, maintained and circulated weapons and firearms for use in criminal activity by BGF members.

 

In addition, the defendants committed acts of violence, including seven murders, shootings, stabbings, a home invasion robbery and other armed robberies.  The violent acts were intended to further the gang’s activities, including intimidating witnesses to prevent them from cooperating with law enforcement, protecting the gang’s drug territory, financing the dues paid to BGF, and enforcing gang rules.

 

For example, on January 9, 2007, Jones and another YGF member shot and killed an individual. Johnson authorized the killing of this individual in his capacity as a leader of YGF because the victim was rumored to be cooperating with law enforcement and Johnson believed the victim had stolen drugs from him. McCants also attempted to murder another individual on February 4, 2017, shooting them multiple times in the legs and back.

 

Johnson, Jones and McCants face a maximum sentence of life in prison on the racketeering and drug conspiracies.  Johnson also faces a maximum sentence of 10 years in prison for conspiring to commit murder in aid of racketeering and life in prison for murder in aid of racketeering. In addition, Johnson faces a maximum sentence of 20 years in prison for possession with intent to distribute crack cocaine, and 10 years in prison for being a felon in possession of ammunition.

 

Sentencing has been scheduled for Johnson on April 20, 2018 at 2 p.m.; McCants on May 9, 2018 at 2 p.m.; and Jones on May 10, 2018 at 2 p.m. in the United States District Court in Baltimore, Maryland.                                                    

 

Acting United States Attorney Stephen M. Schenning commended the ATF, FBI, Baltimore City Police Department, Maryland Attorney General’s Office, and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Peter J. Martinez and Christina Hoffman, who prosecuted the case.

 

                                                                           

FOR IMMEDIATE RELEASE                                                      Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                                 at (410) 209-4885

 

 

Greenbelt, Maryland – A federal grand jury has indicted George Sambuca a/k/a “Jack Yates,” a/k/a “Steven Thompson,” age 32, of Henderson, Nevada, today on charges related to a scheme to defraud customers by mislabeling drugs and distributing anabolic steroids. The indictment was returned on November 15, 2017, and unsealed upon the arrest of the Sambuca.

 

The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; and Special Agent in Charge Mark S. McCormack of the Food and Drug Administration - Office of Criminal Investigations, Metro Washington Field Office.

 

According to the four-count indictment, Sambuca distributed the anabolic steroids, Testosterone, Nandrolone, Stanozolol, Oxandrolone, and Oxymetholone, all of which are Schedule III controlled substances. Sambuca mislabeled these drugs as “TEST SUSTANON 350MG,” “DBOL 5g” and “SUSTANON 350MG/ML . . . 100cc” and sent them from his residence in Nevada to Maryland on two separate occasions, conducting his business under the name of “Dynasty Labs.”

 

Sambuca faces a maximum of 10 years imprisonment for each of the two counts of Distribution of Anabolic Steroids and a maximum of 3 years imprisonment for each of the two counts of Introduction of Misbranded Drugs into Interstate Commerce with Intent to Defraud and Mislead.  Sambuca had an initial appearance on January 19, 2018, in U.S. District Court for the Eastern District of Pennsylvania, where he was arrested and ordered detained. An initial appearance has not yet been scheduled in Greenbelt, Maryland.

 

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. 

 

Acting United States Attorney Stephen M. Schenning commended the FBI and the FDA-OCI for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Kelly Hayes who is prosecuting the case.

 

                                                                          

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885      

 

 

Baltimore, Maryland – United States District Judge Catherine C. Blake has sentenced Kimberly Duckfield a/k/a “Sincere,” age 31, of Hagerstown Maryland to two years in prison followed by one year of supervised release after Duckfield pleaded guilty to aggravated identity theft.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Darryl De Sousa of the Baltimore City Police Department; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS); and the National Security Agency Police.

According to her plea agreement, Duckfield was married to her co-defendant, Dontae Small.  Small was convicted by a federal jury in November 2016 for carjacking and destruction of government property.  Small fled from police and drove the carjacked vehicle into the gates of the National Security Agency, causing a massive shutdown, in October 2015. 

 

On January 4, 2016, officers from DPSCS Intelligence Division searched Small’s cell and found two inmate manufactured knives, commonly referred to as “shivs,” in the light fixture.   Unknowingly, one of the officers had dropped his debit card in the cell, though it was returned to him shortly after the search.   Small provided the stolen debit card number to Duckfield who then used the card to make fraudulent charges.  On March 23, 2016, a federal search warrant was executed at Duckfield’s home in Hagerstown, where agents found and seized the items purchased with the stolen card as well as the phone and tablet used to commit the fraud. Duckfield was ordered to pay restitution to the bank in the amount of $286.

 

Small is scheduled for sentencing in the carjacking case at 10:00 a.m. on May 1, 2018 before United States District Judge James K. Bredar, and for trial in the fraud and identity theft case on April 16, 2018 at 9:30 a.m. before Judge Blake.

 

Acting United States Attorney Stephen M. Schenning commended FBI, BPD, DPSCS and the NSA Police for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Sandra Wilkinson and Paul Riley, who are prosecuting the case.

 

 

                                                                       

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885

 

Greenbelt, Maryland –Carlos DeAngelo Bell, 30, of Waldorf, Maryland pleaded guilty today to 10 counts of Sexual Exploitation of Minors for the Purpose of Producing Child Pornography. 

The plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Charles County State’s Attorney Anthony B. Covington, Sr.; Sheriff Troy D. Berry of the Charles County Sheriff’s Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore.

 

According to the plea agreement, from the period of January 1, 2014 to December 22, 2016, Bell used and coerced minors to engage in sexually explicit conduct for the purpose of producing child pornography.  Bell is charged with committing this offense against ten minors.  During the relevant period, Bell was employed as an Instructional Assistant in Charles County Public Schools, and a track and field coach at a Charles County Public High School.

 

Under the terms of the plea agreement, attorneys for the Unites States will recommend that Bell serve a term of imprisonment of 150 years.  United States District Judge Paul W. Grimm has scheduled sentencing for March 27, 2018.

 

Acting United States Attorney Stephen M. Schenning thanked the Charles County State’s Attorney’s Office, the Charles County Sheriff’s Office, the Maryland State Police, and HSI.  Mr. Schenning also commended Assistant United States Attorneys Timothy F. Hagan and Joseph R. Baldwin of the United States Attorney’s Office for the District of Maryland, who are prosecuting this case.

 

                                                                           

FOR IMMEDIATE RELEASE                              Contact ELIZABETH MORSE www.justice.gov/usao/md                                         at (410) 209-4885

 

 

Baltimore, Maryland – On January 22, 2018, Idialyon Helm, age 21, of Baltimore, Maryland, pleaded guilty to one count of forcible assault on a federal employee, a United States Postal Service (USPS) letter carrier, and one count of brandishing a firearm in connection with a crime of violence—here, the forcible assault.  In connection with his plea agreement, he also specifically admitted to one additional armed robbery, as well as an attempted armed robbery.

 

The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; and Commissioner Darryl De Sousa of the Baltimore Police Department.

 

According to his plea agreement, on December 29, 2016, at between 10:00 and 10:15 AM, Helm robbed a USPS letter carrier at gunpoint while the letter carrier was on his route in the 3100 block of Chesterfield Avenue in Baltimore City, Baltimore, Maryland, 21213, taking the victim’s wallet and smart watch, among other things. 

 

Helm was indicted for forcible assault on a federal employee and brandishing a firearm in connection with a crime of violence.  In pleading guilty to those charges, Helm also acknowledged that he committed two other robberies/attempted robberies just days before the robbery of the letter carrier.  According to his plea agreement, on December 25, 2016, at approximately 1:30 in the afternoon, Helm approached a male victim outside of a convenience store on Caton Avenue in Baltimore, pointed a silver handgun at him, and stole his shoes—a pair of Ugg Boots. Later that afternoon, Helm also attempted to rob a female victim at an M&T Bank ATM on Belair Road in Baltimore.  He approached her, pointed a silver handgun at her, and said “Give me what you got.”  In response, she fled and observed Helm get into a silver Infiniti SUV and drive away. 

 

Helm and the government have agreed that if the Court accepts the parties’ plea agreement Gregg will be sentenced to a total of 10 years in prison for the forcible assault and for brandishing a firearm.  U.S. District Judge Richard D. Bennett has scheduled sentencing for March 19, 2018 at 3:00 p.m. Helm remains detained pending sentencing.

 

Acting United States Attorney Stephen M. Schenning commended the United States Postal Inspection Service and the Baltimore City Police Department for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Paul Riley and Judson Mihok who are prosecuting the case.

 

                                                                          

FOR IMMEDIATE RELEASE                              Contact ELIZABETH MORSE

www.justice.gov/usao/md                                         at (410) 209-4885

 

DEDICATION CEREMONY IN MEMORY OF DEBORAH A. JOHNSTON

 

Baltimore/ Greenbelt, Maryland - The United States Attorney’s Office for the District of Maryland has the distinct honor of announcing the dedication of the main conference room in the Greenbelt Office of the Southern Division in memory of its former Chief, Deborah Ann Johnston. The dedication will take place Friday, January 19, 2018 at 4 p.m. at the United States Attorney’s Office in Greenbelt, steps away from the office where Debbie worked until her untimely death on November 1, 2017, at the age of 64. 

 

Deborah Ann Johnston was born in Reading, Pennsylvania. She graduated from Holy Name High School in Reading, Penn. in 1971. After high school, she attended Catholic University, where she graduated with a B.A. in Economics, followed by her J.D. Debbie served as a judicial law clerk in the Circuit Court for Prince George's County. Debbie began her career at the Prince George’s County State’s Attorney’s Office in 1988 and was eventually promoted to Chief of the Homicide/Narcotics Unit and then named Deputy State’s Attorney. During her time at the State’s Attorney’s Office, Debbie successful prosecuted high-profile defendants including Kirk Bruce, and Alphonso Quinn.

 

In November 1994, Debbie began her career at the United States Attorney’s Office for the District of Maryland. Highly decorated and honored, during her 23 years in federal service, she served as Chief  of the Southern Division of the United States Attorney’s Office, as Associate Deputy Attorney General in the United States Department of Justice, and as Senior Litigation Counsel for now Deputy Attorney General Rod J. Rosenstein.

 

Debbie’s cases at the United States Attorney’s Office included dismantling narcotics organizations and prosecuting large multi-defendant drug cases such as Borda, Osorio, Nicholson, Bivins, Hernandez, Changtin, Minnick, Paulette Martin and Omar Steele et al.  Though Debbie’s work in narcotic cases was legendary, she also expertly handled capital murder, drug diversion, kidnaping, and fraud cases.  Her last trial, in January 2017, resulted in the conviction of a well-known Philadelphia criminal defense attorney for money laundering and obstruction of justice. 

 

Indeed, some of Debbie’s notable prosecutions included her work on death penalty cases which led who to the successful prosecution of the sole two death row defendants in the District of Maryland, ensuring that the interests of the United States were fully vindicated.   One of those cases, against Dustin Higgs and Willis Mark Haynes involved the notorious execution of three innocent young girls found dead in the Beltsville Agricultural Research Center in 1996. 

 

Debbie’s sustained exceptional performance in the most complex and difficult cases over the years was unmatched.   She worked tirelessly, putting in long hours, and seven-day work weeks.  She was the epitome of a dedicated public servant. 

 

Debbie was the first active prosecutor and the second female trial lawyer in Maryland to be offered fellowship in the Maryland Chapter of the American College of Trial Lawyers, whose membership is offered "only by invitation, after careful investigation, to those experienced trial lawyers who have mastered the art of advocacy and whose professional careers have been marked by the highest standards of ethical conduct, professionalism, civility and collegiality."

 

Debbie also spent years teaching criminal procedure for undergraduate students at the University of Maryland, where she was highly regarded and sought by students interested in pursuing a career in law enforcement.  

 

Debbie’s trial skills were well known.   She had instant credibility with judges and juries.  Though a zealous advocate for the United States, Debbie’s reputation was as a fair and honorable litigant.

 

Debbie is greatly missed by family, friends and colleagues.  The United States Attorney’s Office celebrates her life and her contribution to the community through the naming of the Deborah A. Johnston conference room.

 

                                                                           

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                                 at (410) 209-4885

 

 

Greenbelt / Baltimore, Maryland – United States District Judge Roger W. Titus sentenced Troy Allen Lucas a/k/a “Troy Madron,” age 49, of Baltimore, Maryland to two life sentences and a consecutive ten year sentence in prison for the murder-for-hire of Robert Long.  At the time of his death, Long was a cooperating witness in several cases pending in 2007 and 2008 in the Circuit Court for Baltimore City.

 

The sentence was announced by the Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

 

According to evidence presented at the two-week trial, Lucas was a member of "Dead Man Inc." (DMI), a criminal street and prison gang.  Lucas symbolized his allegiance to DMI while in prison in 2007 by having a large tattoo of a hangman’s noose around his neck and on his chest.    

 

Jose Morales solicited Lucas and his now deceased brother to kill Morales’s employee, Robert Long, in order to retaliate for Long’s cooperation with the police and to prevent Long from testifying against Morales.  Morales paid Lucas in cash and cocaine to kill Long.  The federal case focused on the use of cellular telephones with the intent to have Long murdered and the evidence showed that Lucas and Morales used cell phones to contact one another regarding Long’s cooperation and Long’s whereabouts.  Minutes after the murder, Lucas called Morales to advise that the “job” was done.

 

Long was shot twice in the head on March 24, 2008, in an open area behind Traci Atkins Park in southwest Baltimore known as the “Lumber Yard.”  The evidence presented at trial showed that Long was shot with a .25 caliber handgun at close range and that Lucas used, carried, and discharged the gun that caused Long’s death.

 

Jose Joaquin Morales, age 42, of Baltimore, Maryland, was convicted at trial by a federal jury for using a cell phone to arrange the murder-for-hire of Robert Long, and was sentenced to life in prison on December 9, 2013.

 

The prosecution of Morales resulted in the exoneration of Demetrius Smith, who was serving life in state prison for the murder -- a crime he did not commit. 

 

Acting United States Attorney Stephen M. Schenning commended the DEA, Maryland Transportation Authority Police and Maryland State Police for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorneys Sandra Wilkinson and Martin Clarke, who prosecuted this Organized Crime Drug Enforcement Task Force case.