District of Maryland

                                                                      

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

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

 

 

Baltimore, Maryland – A federal jury has convicted Mohammed “Kofi” Kwaning, age 36, of Laurel, Mark Dennis, age 30, of Laurel, and Charles Mensah, age 30, of the Bronx, New York, of conspiracy to commit bank and wire fraud, as well as bank and wire fraud, and aggravated identity theft for 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. All three are lawful permanent residents of the United States and citizens of Ghana.

 

The verdict 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, Mohammed Kwaning acquired account information from the individual victims, to include the investment account management firms listed in the Superseding Indictment, as well as forged checks containing bank account information of both individual and corporate victims from across the United States.

 

Issah Mohammed then recruited individuals, to include Mark Dennis, Charles Mensah, Sandra Badu, Abayomi Davies, and Francis “Pino” Fosu, who registered corporate shell entities with the state of Maryland. The individuals Issah Mohammed recruited then set up bank accounts at multiple banking institutions in the names of these shell entities. Mohammed 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 Issah Mohammed, who then provided the checks to Mark Dennis, Charles Mensah, Sandra Badu, Abayomi Davies, and Francis “Pino” Fosu, 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.

 

Sentencing for Kwaning is set for February 16, 2018. Sentencing for Mensah and Dennis is set for January 19, 2018. All three defendants are detained pending sentencing. Issah Mohammed, Sandra Badu, Abayomi Davies, and Francis “Pino” Fosu had all previously pled guilty. Their sentencing hearings are to be scheduled.

 

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

 

 

Baltimore, Maryland – A federal grand jury has indicted four MS-13 members today on charges in connection with their MS-13 gang activities, including violent crimes in aid of racketeering, use, carry and possession of a firearm during and in relation to a crime of violence, and conspiracy to commit murder in aid of racketeering.

 

The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office;  Special Agent in Charge Daniel L. Board of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Office; Police Chief Tim Altomare of the Anne Arundel Police Department; States Attorney Wes Adams of the Anne Arundel State’s Attorney Office; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.

 

Charged in the three-count indictment is Fermin Gomez-Jimenez, 20;  Manuel Martinez-Aguilar, aka “El Lunatic” and “Zomb,” 19;  Moises Alexis Reyes-Canales, aka “Sicopita,” 19; and Marlon Cruz-Flores, 22, all of Annapolis, Maryland.

 

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 Anne Arundel County, 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.

 

According to indictment, on October 23, 2016 for the purpose of gaining entrance to and maintaining and increasing position in MS-13 the defendants conspired to and attempted to murder two victims in Annapolis, Maryland.

 

All of the defendants are currently detained on related state criminal charges.

 

The defendants face a maximum sentence of life in prison.  Initial appearances have 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. 

 

Acting U.S. Attorney Schenning and Acting Assistant Attorney General Blanco commended HSI Baltimore, ATF Baltimore, Anne Arundel Police Department, Anne Arundel State’s Attorney Office and the FBI for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Seema Mittal, Trial Attorney Matthew Hoff of the Organized Crime and Gang Section, as well as Special Assistant U.S. Attorney Samantha Mildenberg are prosecuting this case.

 

FOR IMMEDIATE RELEASE                                    Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4855

 

           

Baltimore, Maryland – A federal jury has convicted Antonio Shropshire, a/k/a Brill, B, and Tony, age 34, of Baltimore, Omari Thomas, a/k/a Lil’ Bril, Lil B, and Chewy, age 25, of Middle River, Antoine Washington, a/k/a Twan, age 27, of Baltimore, Alexander Campbell, a/k/a Munch, age 29, of Baltimore, and Glen Kyle Wells, a/k/a Lou, and Kyle, age 31, of Baltimore, on conspiracy to distribute and possession with intent to distribute heroin and cocaine relating to a drug trafficking organization in North Baltimore. Washington was additionally convicted of distribution of heroin resulting in death.

 

The verdict 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; Sheriff Jeffrey R. Gahler of the Harford County Sheriff’s Office; Chief Terrence B. Sheridan of the Baltimore County Police Department.

According to evidence at presented at trial, from 2010 until the dates of their arrests, Shropshire 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. 

Shropshire used residences within Baltimore, Maryland to process, cut, repackage and prepare heroin for distribution to customers, routinely carried firearms in furtherance of the conspiracy and conducted counter-surveillance of law enforcement in an attempt to prevent law enforcement from detecting the illegal activities carried out by the Shropshire DTO.   

In order to shield himself from law enforcement, Shropshire utilized various street dealers to distribute his heroin.  One of those street dealers was Defendant Thomas, who Shropshire instructed about the quality and price of heroin that Thomas should sell for Shropshire.  Shropshire also arranged for the sale of heroin with customers, but had street dealers distribute the heroin to the customers so Shropshire could avoid law enforcement surveillance. 

 Fourteen 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 Momodu Bondeva Kenton Gondo, a former member of the Baltimore Police Gun Trace Task Force (GTTF), provided sensitive law enforcement information to Shropshire and his co-conspirators in order to help the DTO. According to his plea agreement, Gondo admitted to providing protection, information and tips to Shropshire about how to avoid being arrested.  For example, on March 31, 2016, Gondo alerted Shropshire that the Drug Enforcement Administration had installed a GPS tracking device on his vehicle. Shropshire, under Gondo’s instruction, then removed the GPS device and placed it on another vehicle.

 During the course of the conspiracy, Defendant Washington proposed robbing and killing a rival drug dealer to Defendant Wells.  Defendant Wells agreed and recruited Gondo, who in turn recruited another former GTTF member, Jemell Rayam, who has pleaded guilty to racketeering in a separate case to place a GPS tracking device on the rival drug dealer’s car and rob him when he was away from his apartment.  On the day of the home invasion, Wells and Rayam broke into the apartment, and Rayam, upon discovering that the drug dealer’s girlfriend was asleep in bed, threatened to kill her if she did not tell him where her boyfriend kept his money.  Wells and Rayam ultimately stole 800 grams of heroin, which Wells sold, sharing the proceeds with Washington, Gondo and Rayam, $12,000, which they shared, a gun, which former GTTF members Gondo and Rayam gave to Wells, a known drug dealer, and a Rolex watch and other jewelry.

Shropshire, Washington, and Campbell each face a mandatory minimum of 10 years and up to life in prison for conspiracy to distribute at least one kilogram of heroin.  Gondo, Wells and Thomas each face a mandatory five years and up to 40 years in prison for conspiracy to distribute at least 100 grams of heroin.  Washington faces a mandatory minimum sentence of 20 years in prison for distribution of heroin resulting in death. Shropshire, Gondo, and Campbell also face a maximum penalty of 20 years in prison for possession with intent to distribute heroin and cocaine.

Sentencing is set for Shropshire on February 16, 2018, at 11 a.m., Washington on February 9, 2018, at 2 p.m., Campbell on February 16, 2018, at 9:30 a.m., Thomas, on February 15, 2018, at 9:15 am, and Wells on February 22, 2018, at 9:15 a.m. in U.S. District Court in Baltimore. All defendants were detained pending sentencing.

Acting United States Attorney Stephen M. Schenning commended the DEA, 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) 209-4855

 

Baltimore, Maryland – On October 27, 2017, following a thirteen-day trial, a federal jury convicted Atif Babar Malik, age 48, of Germantown, Maryland, on 26 felony counts arising from two criminal schemes that involved referring patients’ urine toxicology specimens to a New Jersey diagnostic testing lab in return for $1.376 million in kickbacks and fraudulently billing for anesthesia services provided in connection with spinal nerve block injections.  Malik was convicted on one count of conspiracy to violate the federal Anti-Kickback Act and the Travel Act; 12 counts of violating the Anti-Kickback Act; three counts of violating the Travel Act; six counts of health care fraud; and three counts of making false entries in patients’ medical records.    

 

Malik’s convictions were 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; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Drew Grimm of the Office of Personnel Management – Office of Inspector General.

 

Malik was one of six defendants who were charged in connection with the kickback or fraudulent billing schemes.  His practice co-owner and co-defendant Sandeep Sherlekar, age 52, of Germantown, Maryland, was also charged with participating in the referrals-for-kickbacks conspiracy and the fraudulent anesthesia billing scheme, as well as with making false entries in patients’ medical records.  Following the return of the original indictment in late June 2016, Sherlekar committed suicide shortly before his scheduled initial appearance and arraignment in early October 2016. 

 

Konstantin Bas, age 41, of Brooklyn, New York, the former owner and Chief Executive Officer of a Linden, New Jersey-based diagnostic testing lab known as Accu Reference; Mubtagha Shah Syed, age 50, of Jersey City, New Jersey, who worked as a marketer for Accu Reference; and Vic Wadhwa, 39, of Frederick, Maryland, the Chief Financial Officer (CFO) of Malik’s and Sherlekar’s medical practice, all previously pled guilty to charges of conspiring to violate the Anti-Kickback Act or to an individual charge of violating the Anti-Kickback Act, and are currently awaiting sentencing.  Muhammad Ahmad Khan, age 44, the Chief Administrative Officer of Drs. Malik’s and Sherlekar’s practice, who was also charged in connection with the kickbacks and Travel Act conspiracy, is a fugitive and is believed to be in Pakistan. 

       

Dr. Malik is a physician trained in pain management and Dr. Sherlekar was trained in both pain management and in anesthesiology. The two merged their pain management practices in February 2009 to create Advanced Pain Management Services, LLC (APMS), which initially had three offices in Maryland and one in New Jersey, but that later expanded to as many as ten offices.  In August 2010, APMS began doing business under the name of American Spine Center, LLC (APMS/ASC). Khan was the CEO of APMS/ASC and co-conspirator Vic Wadhwa was its CFO.

 

APMS/ASC physicians periodically required patients who were prescribed controlled substances as pain relief medications to submit urine specimens for testing as means of monitoring the levels of pain medication or other narcotics in their bodies.  According to evidence presented at trial, in the late winter of 2011, Accu Reference’s marketing agent Mubtagha Syed proposed to Khan and Wadhwa that APMS/ASC discontinue using its current testing lab and start referring its patients’ urine toxicology specimens to Accu Reference in return for the payment of kickbacks.  After Drs. Malik and Sherlekar approved the plan, which also came to include back braces from another Bas-controlled company, APMS/ASC began submitting all of its patients’ urine specimens to Accu Reference in April 2011.

 

Starting in the late spring of 2011 and continuing through the end of July 2012, APMS/ASC each month referred between 700 to as many as 1,300 patient urine specimens to Accu Reference for testing in return for the payment of kickbacks.  Accu Reference submitted claims for performing diagnostic tests on these specimens to Medicare and various private insurers for reimbursement, receiving in return approximately $4.4 million in payments.  After deducting its overhead expenses on the testing, Accu Reference split its profits 50/50 with Khan, Wadhwa, Sherlekar, and Malik.  (Syed also received a share of Accu Reference’s profits.)  From the time the kickback payments commenced in June 2011 until the end of the scheme in August 2012, Bas caused his companies to pay kickbacks totaling $1.376 million to Sherlekar, Malik, Khan and Wadhwa.  Khan and Wadhwa deceived Drs. Sherlekar and Malik about the full amount of the kickback payments Accu Reference was paying, however, and thus were able to retain more than 60% of the kickback payments for themselves.  Drs. Sherlekar and Malik each received approximately $240,000 in kickback funds before the scheme came to an end in the late summer of 2012.        

 

Among the services APMS/ASC provided to its patients were diagnostic or therapeutic nerve blocks and injections in connection with spinal conditions, which were often provided in conjunction with anesthesia.  If two physicians were present during a surgical procedure, with one performing the surgical procedure and the other administering the anesthesia, then the anesthesiologist could bill separately for the anesthesia service.  However, if a single surgeon or anesthesiologist was alone in the procedure room and administered the anesthesia while also performing the surgical procedure, then the anesthesia service could not be billed as a separate charge, but was instead treated as included within the fee established for the surgical procedure. 

 

According to evidence presented by the government at trial, during the period from January 2010 through the summer of 2012, it was relatively common for only one physician at APMS/ASC to both perform the spinal injection and administer the anesthesia.  In a number of these cases, APMS/ASC then submitted bills to Medicare and private insurers using a billing code that represented that two separate physicians had respectively provided the nerve block and the anesthesia, and as a result received a higher level of reimbursement.  For example, evidence presented by prosecutors demonstrated that on January 3, 2012, a date when Dr. Sherlekar alone provided both spinal injections and anesthesia to a large number of patients at APMS/ASC’s Frederick office, he advised Dr. Malik by text that “I am using your name today as surgeon as we have 34 procedures here [in Frederick] and 20 in Waldorf,” to which Malik responded “ok,” although he was seeing patients at his office in Hackettstown, New Jersey that day, more than 200 miles from Frederick.       

 

In addition to the kickback-related and health care fraud and false medical records charges that were at issue in this trial, the Court has severed out for a separate trial another count of the indictment that charged Drs. Malik and Sherlekar with conspiring to defraud the IRS by not reporting as income cash payments received by APMS/ASC, and by filing false corporate tax returns that overstated the practice’s expenses and understated its revenues.  This count is currently scheduled to go to trial in February 2018.

 

Malik faces potential maximum sentences of 10 years in prison for each of his six health care fraud convictions; five years in prison for conspiring to violate the Anti-Kickback Act and the Travel Act; five years in prison for each of the three Travel Act convictions and for the three counts of making false statements on patients’ medical records; and two years in prison for each of his 12 convictions on charges of soliciting and receiving health-care related kickbacks.  His actual sentencing range will be calculated using the Federal Sentencing Guidelines, however, and the Court will have a wide range of discretion in imposing sentence.      

 

Acting United States Attorney Stephen M. Schenning commended the FBI; the Department of Health and Human Services – Office of the Inspector General (HHS-OIG); the IRS - Criminal Investigation Division; and the Defense Criminal Investigative Service and the Office of Personnel Management – Office of the Inspector General (OPM-OIG) for their work on the investigation.  Mr. Schenning also thanked Assistant U.S. Attorneys Jefferson M. Gray and Sean R.  Delaney, who led the investigation and tried the case against Dr. Malik.

 

FOR IMMEDIATE RELEASE                                        Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                        at (410) 209-4855

 

Greenbelt, Maryland – United States District Judge George J. Hazel sentenced Dennis Morgan, age 52, of Baltimore, Maryland, to 18 months in prison, 6 months of which are to be served in a halfway house, followed by 5 years of supervised release, for Failure to Register as a Convicted Sex Offender. 

 

The sentence was announced by Acting United States Attorney Stephen M. Schenning; Marshal Johnny Hughes of the United States Marshals Service and Chief James A. Cervera of the Virginia State Police.

 

Morgan is required to register as sex offender by reason of a 1996 conviction for Attempted Sexual Battery in Florida.    Between August 2016 and November 2016, he both resided and worked within the district of Maryland. Throughout that time period, he knowingly failed register as a sex offender in the state of Maryland.

 

Acting United States Attorney Stephen M. Schenning commended the United States Marshals Service and Virginia State Police for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Nadia Prinz and Joseph Baldwin, who prosecuted this case.

 

 

FOR IMMEDIATE RELEASE                              Contact ELIZABTH MORSE

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

 

 

Greenbelt, Maryland – On October 24, 2017, United States District Judge George J. Hazel sentenced Vincent A. Grant, age 28, of Laurel, Maryland, to 58 months in prison after a jury found him guilty of conspiracy to commit access device fraud and one count of aggravated identity theft.  Judge Hazel earlier ordered the following sentences for Grant’s co-defendants -

James C. Stewart, III to 66 months in prison;

Derrick K. Shelton, II to 49 months in prison;

Jamal A. Moody to 48 months in prison; and

Quentin T. Stewart to 40 months in prison.

 

Each of the defendants’ sentences included a 2-year consecutive mandatory minimum sentence for committing aggravated identity theft.

 

The sentences were 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 (DCIS); and Special Agent in Charge Jeffrey Thorpe of the DCIS - Cyber Field Office.

 

The defendants were found guilty of conduct occurring from July 2014 to May 2015, during which time the defendants used Bitcoin, a form of digital currency to purchase stolen credit and debit card numbers of individuals and businesses from foreign internet websites.  The defendants selected and purchased stolen credit and debit card numbers of individuals and businesses holding federal credit union accounts, and those with billing addresses in or near Maryland.  They bought magnetic strip card-encoding devices and software to re-encode credit, debit, and other cards with the stolen credit and debit card numbers.  The defendants then used the cards they fraudulently re-encoded to buy merchandise, including gift cards, electronic items, and luxury goods, from Army and Air Force Exchange Service stores on U.S. military bases, also known as PX stores, and other locations in Maryland and elsewhere.  They used the merchandise themselves or resold the merchandise to individuals they knew or through Craigslist postings.

 

James Stewart was convicted after trial on June 1, 2017, of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.  Vincent Grant was convicted of conspiracy to commit access device fraud and aggravated identity theft.  Derrick Shelton and Quentin Stewart pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft.  Jamal Moody pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft.

 

Moody, Shelton, James Stewart, and Grant were specialists, and Quentin Stewart was a former sergeant, all in the District of Columbia Army National Guard.

 

The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors.  This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.

 

Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

 

Acting United States Attorney Stephen M. Schenning commended the DCIS for its work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Bryan E. Foreman and Thomas P. Windom; Special Assistant U.S. Attorney Gustav William Eyler, of the U.S. Justice Department, Criminal Division - Fraud Section; and Trial Attorney Jessee Alexander-Hoeppner, of the U.S. Justice Department, Criminal Division - Fraud Section, who prosecuted the case.

 

FOR IMMEDIATE RELEASE                                    Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4855

           

Baltimore, Maryland – On October 25, 2017, a federal jury convicted Dontae Small, age 43, of Baltimore, Maryland on conspiracy, carjacking, and destruction of government property, after he rammed a stolen car into a security gate at the National Security Agency in Ft. Meade, Maryland.

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; Commissioner Kevin Davis of the Baltimore Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; Anne Arundel County Police Chief Tim Altomare, the National Security Agency Police and the Ft. George G. Meade Police Services Division.

According to evidence at presented at trial, on October 4, 2015, Small and his co-conspirators were riding in a white minivan in the Federal Hill neighborhood of Baltimore, looking for victims to rob.  At approximately 10:09 p.m. Small texted a male co-conspirator the following message: “Get the dude cpming down da st.I parked on smoking a pipe” [sic].

Three masked co-conspirators assaulted Victim 1 on Grindall Street in the Federal Hill neighborhood of Baltimore.   The carjackers pointed a silver handgun at the victim and robbed him of the keys to his car, a 2008 Acura TSX.  The conspirators then took the car.  On that same night, two of the conspirators approached Victims 2 and 3 a block away on Riverside Avenue, and brandished a silver handgun.  The robbers obtained an iPhone phone that had fallen from Victim 3’s pocket before fleeing.

On October 7, 2015, Small drove the stolen Acura to Arundel Mills Mall in Anne Arundel County, Maryland.  The Anne Arundel Police identified the car as stolen and set up surveillance.  When Small returned to the vehicle and unlocked it using Victim 1’s keys, the police attempted to arrest him.  Instead, Small took off over a curb in the parking lot, narrowly missing pedestrians and drove without his lights out of the Mall at a high rate of speed.   The police followed and Small engaged him in a high-speed pursuit, eventually turning into Ft. Meade and then crashing the car into a security gate protecting the National Security Agency.  Small then fled and hid in a nearby sewer for hours as security personnel and police attempted to find him.  The NSA was closed to essential personnel for a day while the search continued.  When Small emerged from the sewer the next morning, the police were able to arrest him after a brief foot chase and struggle.   

Small faces a sentence of 15 years in prison for carjacking; a maximum of 10 years in prison for destruction of government property; and a maximum of five years in prison for conspiracy.  Sentencing is set for 11:00 a.m. on February 6, 2018 in U.S. District Court in Baltimore.

Acting United States Attorney Stephen M. Schenning commended FBI, the Baltimore City Police Department, Baltimore City State’s Attorney’s Office, Anne Arundel County Police Department, National Security Agency Associate Directorate for Security and Counterintelligence (Office of General Counsel) and Ft. George G. Meade Police Services Division for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Paul Riley and Sandra Wilkinson, who are prosecuting the case and NSA attorney Hillary Hellmann for her assistance in the prosecution.

 

FOR IMMEDIATE RELEASE                                    Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4855

 

Baltimore, Maryland –A federal grand jury has returned a superseding indictment charging thirteen defendants with conspiring to distribute controlled substances. The superseding indictment, which was unsealed today, charges the defendants with distribution of heroin and cocaine. One defendant is also charged with possession of a firearm by a felon. One defendant is further charged with possession of a firearm in furtherance of a drug trafficking crime.

 

The indictment 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 Commissioner Kevin Davis of the Baltimore Police Department.

 

According to the three-count indictment, in November of 2016, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Baltimore Police Department initiated an investigation into the McRae and Bagley drug trafficking organization. Between January 2012 and October 18, 2017, the organization was allegedly responsible for distributing large quantities of heroin and cocaine at an open-air drug "shop" operating near 1100 North Montford Avenue in Baltimore, Maryland.

 

The following defendants are charged in the indictment unsealed today:

 

Rodney Addison, a.k.a. “Black,” a.k.a. “Freddy,” age 39, of Baltimore, Maryland;

Deandre Anderson, a.k.a. “Meatball,” age 22, of Baltimore, Maryland;

Kurt Atkins, age 55, of Baltimore, Maryland;

Jackie Bagley, a.k.a. “Bruce,” a.k.a. “Juice,” a.k.a. “Juicy,” age 38, of Baltimore, Maryland;

Vernon Bartee, age 51, of Baltimore, Maryland;

Johntae Brown, a.k.a. “Tipp,” age 19, of Baltimore, Maryland;

Dominic Durham, a.k.a. “Nick,” age 18, of Baltimore, Maryland;

Wilbur Forrester, a.k.a. “Man Man,” a.k.a. “Dreads,” age 38; of Joppa, Maryland;

Keith Johnson, a.k.a. “Tree,” age 46, of Baltimore, Maryland;

Antonio Jones, a.k.a. “Dre,” age 23, of Baltimore, Maryland;

Andrew Manuel, a.k.a. “Low Low, age 21, of Baltimore, Maryland;

Stancil McNair, a.k.a. “Deandre,” a.k.a. “Do-do,” age 20, of Baltimore, Maryland;

Ernest McRae, a.k.a. “Rat,” a.k.a. “Man Man,” age 37, of Baltimore, Maryland.

 

All of the defendants face a maximum of life in prison for the drug conspiracy charge with the exception of Manuel and Durham who face a maximum of 20 years in prison. McRae faces 15 to life on the felon in possession of a firearm charge. McNair faces a minimum of 5 years in prison to run consecutive with a maximum sentence of life for the possession of a firearm in furtherance of a drug trafficking crime.

 

Ten defendants have been detained. The whereabouts of Wilbur Forrester, Antonio Jones, and Dominic Durham are unknown.

 

Anyone who may have information on the whereabouts of Forrester, Jones or Durham is asked to contact the ATF- Baltimore Field office at 1(888) ATF-TIPS.

                                                           

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 ATF and Baltimore City Police Department for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Matthew DellaBetta and Mike Hanlon who are prosecuting the case.

 

                                                                             

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

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

 

 

Baltimore, Maryland – The United States Attorney’s Office has charged Daryl Christopher Wade, age 50, of Rosedale, Maryland, today on charges related to an extortion scheme.

 

The charges were 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 Acting Inspector General Stephen J. Lesniewski Jr. of the Baltimore City Office of Inspector General.

Wade has been a City of Baltimore employee since 1988 and is currently employed by the Baltimore City Department of Transportation (“DOT”) as a Construction Project Supervisor II within the DOT’s Street Cut Unit.  The DOT Street Cut Unit helps to monitor and administer fines associated with street cuts and street cut permits. According to the criminal complaint, Wade used his official position at City of Baltimore’s Department of Transportation to claim that he could void street cut fines in return for payments.

 

According to the affidavit in support of the criminal complaint, Wade accepted multiple cash payments, from a confidential human source (“CHS2”) in exchange for claiming that he could erasing his street cut fines.  Baltimore City street cut permits are required for companies who need to impede into a public street, alley, sidewalk, or other right-of-way for purposes of construction.  The street cut permits are valid for 120 days before they expire and a fine is assessed by DOT at $50 per day for each street cut not repaired past the expiration date. 

In March 2016, the criminal complaint alleges that an individual with the initials J.S., an owner of a Maryland construction and utilities company, was involved in attempting to broker bribe payments to Wade from the Vice President of a Virginia based construction company (“CHS1”).  CHS1’s company required street cuts within the City of Baltimore.  CHS1’s company provides all phases of underground utility construction and sewer rehabilitation throughout the east coast of United States.  At the time of J.S. and Wade’s attempt to broker bribe payments from CHS1’s company it had approximately $55 million in contracts with the City of Baltimore to restore and/or replace water and sewage lines throughout the City.  In November 2015 and February 2016, the Virginia company was also awarded approximately $36 million in contracts with the City of Baltimore to conduct sewer and waterline overhauls, including street cuts.  In order to complete those contracts, CHS1’s company conducted street cuts to reach water and sewer lines.

In January 2016, J.S. told CHS1 that CHS1’s company would be receiving $1.3 million in street cut fines from DOT in the near future.  J.S. then said he had a connection that could reduce the $1.3 million in fines by 80% to $260,000, if CHS1 paid 20%, ($52,000) to J.S.’s connection.  This offer was rejected by the Virginia based company.

The complaint also alleges that a second confidential human source (“CHS2”), who runs a plumbing and drain construction business in Baltimore, Maryland was previously fined approximately $17,000 for street cuts in Baltimore City.  In March 2016, CHS2 attended a Baltimore City street cut appeal hearing regarding the fine.  In attendance at the hearing were CHS2 and Baltimore City employees including Wade.  During the hearing, CHS2 explained to the attendees, that he was not responsible for acquiring permits for the work site and therefore should not be held liable for the fines.  Wade stopped the hearing, stating that he had heard enough and that the fines determination was on hold pending further review.  Wade then requested to speak with CHS2 outside the hearing.  Once outside the hearing, Wade explained to CHS2 that if CHS2 helped Wade that he would help CHS2.

On or about September 19, 2016, at the direction of law enforcement, CHS2 participated in a recorded telephone conversation with Wade, where CHS2 explained that he did not have money to pay the $17,000 fine.  Following this call, Wade met in-person with CHS2 and asked CHS2 “what is it worth to you?”  CHS2 understood that this meant that if he (CHS2) paid Wade, Wade would void the $17,000 fine.  CHS2 stated, it would be worth $5,000 for him to pay Wade to remove the fine. Wade explained that he had to also pay a female at the office to push the fine reduction paperwork through but accepted the $5,000 offer.  Wade told CHS2 that after making the $5,000 payment, CHS2 would not have to worry about any future fines. 

On September 22, 2016, CHS2 paid Wade the first $3,000 in cash.  Wade arrived at the meeting driving a Baltimore City issued government vehicle.  At the direction of Wade, CHS2 threw the $3,000 into Wade’s Baltimore City government vehicle.  After the money was in his Baltimore City government vehicle, Wade stated “you good for life with me . . . .” and later laughed and further stated to CHS2, “we in cahoots now . . . . ”

On or about September 28, 2016, CHS2 paid Wade the remaining $2,000 in cash, and that same day a $17,000 journal entry was posted to the Baltimore City Dynamics accounting system voiding the $17,000 in street cut fines for CHS2’s construction site.  The entry was made by a female Baltimore City employee and Baltimore City records indicate that the female employee is an accountant working at the Baltimore Bureau of Accounting and Payroll Services. 

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

 

Wade’s initial appearance is scheduled for today at 2:30 p.m. in United States District Court in Baltimore, Maryland in courtroom 3A.

 

Acting United States Attorney Stephen M. Schenning commended the FBI and Baltimore City Office of Inspector General for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Leo Wise, who are prosecuting the case.

                                                                                

FOR IMMEDIATE RELEASE                                          Contact BAILEY DRUMM

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

 

 

Greenbelt, Maryland – Sobeida Maria Laboy, age 47, of Germantown, Maryland was sentenced today by United States District Judge Peter J. Messitte to 27 months in prison, followed by three years of supervised release for bank fraud arising from a scheme to defraud the financial institution for which she worked of more than $1 million.  Laboy was also ordered to pay restitution in the full amount of the loss to the victims.

 

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.

 

According to her plea agreement, Laboy worked in the Chevy Chase branch office of a financial institution that offered online banking services to its customers and had affiliates that offered homes loans and other financial services.  Laboy admitted that from December 2007 through June 19, 2014, she created fraudulent invoices, which she submitted, along with check requests, for payment by her employer.  The invoices purported to be for services provided by a specific vendor. Laboy submitted the fraudulent invoices along with a check request form, stating that the check should be sent to her at her office in Chevy Chase.  Laboy forged the signature of another employee in the “approval” section of the form.  Instead of sending the checks for payment to the vendor, Laboy endorsed the checks with her own signature and deposited them into her personal bank accounts.

 

Over the course of the scheme, Laboy deposited at least 60 checks issued by her employer and made payable to the vendor.  Laboy deposited at least six additional checks either issued by her employer and made payable to other vendors, or issued by other vendors and made payable to her employer.  As a result of the scheme, Laboy fraudulently obtained at least $1,020,576.28

 

Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

 

Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Lindsay Eyler Kaplan and Nicolas A. Mitchell, who prosecuted the case.

 

October 18, 2017                                            

FOR IMMEDIATE RELEASE                                                                         Contact Bailey Drumm

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

 

 

 

Greenbelt, Maryland –Quantaz Lamar Shields, age 30, of Leonardtown, Maryland, was sentenced today by the United States District Judge Paul W. Grimm to 23 years of imprisonment for committing four armed robberies in St. Mary’s County, and brandishing a firearm during and in relation to those robberies. 

 

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, and Sheriff Tim Cameron of St. Mary’s County Sherriff’s Office.

 

According to the guilty plea and accompanying factual stipulation, between October 20, 2015 and October 28, 2015, the defendant entered multiple locations while brandishing a firearm and stole business proceeds and other items. On November 5, 2015, law enforcement executed a search warrant at a location associated with Shields and located a 9mm Beretta handgun with a magazine containing six 9mm live rounds that Shields had used during each of the armed robberies. Law enforcement also located a Samsung flip phone that was used to communicate with the codefendant, Trevone Butler, during one of the robberies. During another search warrant executed at Shields’s sister’s residence, law enforcement seized over $2,000 in U.S. currency hidden throughout the house. Prior to the warrant, law enforcement obtained a recorded conversation between Shields (who was incarcerated) and his sister, where Shields directed his sister to deposit money into his commissary account from money hidden in her shed.

 

Butler was previously sentenced on December 2, 2016 to 57 months imprisonment for his role in the robberies.

 

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

 

 

Sent to Baltimore and Washington media.

 

October 18, 2017                                          

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

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

 

Greenbelt, Maryland – On October 17, 2017, Prince George’s County Liquor Board official David Dae Sok Son, age 41, of Bowie, Maryland, pleaded guilty to an Information charging him with conspiracy, bribery, and obstruction of justice, in a scheme involving alcoholic beverage licenses in Prince George’s County, Maryland.

 

The guilty plea 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 Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Henry Stawinski III of the Prince George’s County Police Department.

 

Son was a Commissioner on the Prince George’s County Board of License Commissioners (“Liquor Board”) from 2005 through 2014.  During the 2015 Maryland legislative session, Son served as a liaison for the Prince George’s County Senate delegation. He returned to the Liquor Board later in 2015, as its Director.

 

As described in the affidavit filed in support of the criminal complaint and in the plea agreement, Son solicited and facilitated bribes, from lobbyists and business owners, including co-conspirators Young Jung Paig and Shin Ja Lee.  The bribe recipients were elected state officials, including then-County Councilman William Alberto Campos-Escobar (a/k/a “Will Campos”) and then-Delegate Michael Vaughn. 

 

For example, during a meeting on April 4, 2014, Son informed an FBI Confidential Human Source (“CHS”) that Campos needed $10,000 to pay an expense related to Campos’s campaign for Maryland State Delegate. Son told the CHS that Son had spoken with Campos about the CHS giving cash to Campos in exchange for Campos arranging for another grant to be awarded to a non-profit organization selected by the CHS.

 

On or about April 9, 2014, Son met the CHS at a coffee shop in Lanham, Maryland. Son told the CHS that Son had told Campos to “hook [the CHS] up” with the developer of a new business in the County, so that the developer would retain the CHS’s business services. Son explained to the CHS that the business owed Campos, because Campos obtained a tax benefit for the business. Son and the CHS then walked to the coffee shop’s parking lot, where the CHS’s vehicle was located.  The CHS then retrieved $3,000 in U.S. currency from the CHS’s vehicle.

 

On or about April 9, 2014, Son gave Campos the $3,000 in U.S. currency that Son had received from the CHS. Later on April 9, 2014, Campos sent a text message to the CHS that stated, “I owe you big time my man.”

 

Beginning in 2015, Son solicited and facilitated bribe payments from lobbyists and business owners who were interested in the “Sunday Sales Bill,” which established up to 100 Sunday liquor sales permits in Prince George’s County.  The bribes were intended to influence public officials in the performance of their official duties.  For example, in 2015, Son had asked Campos to assist in passing the Sunday Sales bill by talking to one of his colleagues about the bill; both subsequently voted in favor of the bill.  On April 22, 2015, after the passage of the bill, Son arranged a lunch between Campos, Paig, and Lee.  A lobbyist and attorney, Matthew Gorman, also attended.  During the lunch, Son told Campos to meet Paig in the men’s bathroom, saying that Paig was “… going to hook you up.”  In the men’s bathroom, Paig handed Campos an envelope containing a total of $4,000 cash, which constituted a bribe from Son, Paig, Lee, and Gorman.  In addition, on October 19, 2015, Son received a $4,000 bribe payment from a lobbyist for his assistance in ensuring that the lobbyist’s clients received Sunday Sales licenses. 

 

Lee and Paig subsequently talked to Son about getting beneficial legislation introduced related to the Sunday Sales bill and indicated that they would be willing to pay $50,000 to make that happen. Son spoke with Delegate Vaughn, who agreed to introduce legislation.  On November 10, 2015, Son arranged for Paig and Lee to meet with Vaughn so they could make a “down payment.”  After the meeting, law enforcement observed Paig and Vaughn get into Vaughn’s car, while Lee and Son waited in the parking lot.  Shortly after Paig got out of the car, Vaughn drove directly to a bank in the same shopping center.  Bank surveillance video shows Vaughn pulling a stack of cash out of his right pocket and handing it to the teller, and then doing the same from his left pocket.  Bank records show that Vaughn deposited a total of $4,000.

 

On December 17, 2016, after Son had been questioned by the FBI, he hand-wrote a letter to another subject of the FBI’s investigation informing the subject that Son had been “taken” by the “Feds” and was “wired” when he last visited the subject.  In the letter, Son also listed names of individuals who had “flipped,” or cooperated with the FBI.  Son further described devices used by the FBI for body wires and told the subject that the subject should assume meetings with Son were being recorded.  Son also laid out means by which the subject and Son could communicate secretly.

 

If convicted, Son faces a maximum sentence of five years in prison for the conspiracy, ten years in prison for bribery, and 20 years in prison for obstruction of justice. U.S. District Court Judge Paula Xinis has scheduled sentencing for January 22, 2018 at 10 a.m. in U.S. District Court in Greenbelt.

 

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, Menaka Kalaskar, Arun G. Rao, and James A. Crowell IV, 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 Shawn Penn, age 42, of Pasadena, Maryland, to one month in prison, followed by five months of home confinement and three years of supervised release for causing more than $40,000 in false claims to be submitted to the government.  Penn falsely represented to her employer that she was working as a security guard at a government facility, when she was actually elsewhere.  In addition, Judge Garbis ordered Penn pay restitution in the amount of $30,000.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.

 

According to the plea agreement, Penn worked full-time, during regular business hours, as an active duty U.S. Army Intelligence Officer at Fort Meade, Maryland. In addition, Penn worked as a contract employee performing security guard services for the U.S. Department of Defense in Anne Arundel County, Maryland. 

 

Penn performed her security guard services for a sensitive compartmented information facility (SCIF), which required that she hold a Top Secret-Sensitive Compartmented Information security clearance, possess a gun permit, and carry a government issued duty cell phone while on duty.  Penn’s work locations had surveillance cameras that monitored her workstation area, and areas inside and outside the building.  Penn’s duties included reviewing computer monitors with live video from security cameras, checking for alarms, monitoring the temperature in the facility and performing exterior security sweeps.

 

According to court documents, from September 2015 to August 2016, Penn regularly abandoned her workstation and falsely represented to her employer that she had been working as a security guard when she was actually elsewhere.  According to the statement of facts supporting the plea agreement, Penn’s false claims regarding her security work hours caused the government to pay more than $40,000 to her employers to which they and Penn were not entitled. 

 

In addition, on October 6, 2016, Penn falsely stated to investigators from the Defense Criminal Investigative Service that she had not abandoned her security guard duties until January 2016, when in fact, she had been abandoning her duties since at least September 2015. Penn falsely claimed that she “sat in her car,” was “across the street,” or “drove around the parking lot,” during her guard shifts, when Penn knew she was elsewhere during those shifts.

 

Acting United States Attorney Stephen M. Schenning commended the DCIS for its work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case.

 

 

                                                                           

FOR IMMEDIATE RELEASE                                       Contact ELIZABETH MORSE

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

Greenbelt, Maryland – On October 13, 2017, United States District Judge Roger W. Titus sentenced Charleston Harris a/k/a “Giovanni,” a/k/a “Leon Baye,” age 38, of Maryland to 14 years in prison followed by a lifetime of supervised release for conspiracy to engage in sex trafficking of a minor.

In addition, as part of the terms of his plea agreement, Harris has agreed to a judicial order of removal to Liberia at the time of his release.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andrew W. Vale of the Federal Bureau of Investigation – Washington office, Chief Henry P. Stawinksi III of the Prince George’s County Police Department, and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to court documents, beginning in or about April 2012, and continuing through in or about June 2015, in the District of Maryland and elsewhere, Harris managed and directed a large-scale prostitution business. Harris, with the assistance of co-conspirator, Phoebe Omwega and others, managed as many as eighteen prostitutes at a time and directed prostitution activities in Maryland, Virginia, Georgia, and Florida.

In 2012, Harris recruited a 17-year-old female to engage in prostitution under his direction. Between at least October and December 2012, the underage victim engaged in commercial sex acts in Maryland, Florida, and elsewhere. As part of their prostitution business, Harris, Omwega, and others utilized the social networking website "backpage.com" to advertise prostitution services for each of the women Harris employed. Harris also used several email accounts to communicate and direct the women who worked for him.

At the direction of Harris, women working for Harris, including the underage victim, typically charged between $100 and $200 for sexual services. Harris collected the prostitution proceeds, managed day-to-day activities by informing the women of when and where to meet "clients," instructed the women which city to travel to in order to engage in prostitution, and made hotel arrangements for the women.  Harris did not allow the women to retain any of the proceeds. The women were allowed to purchase food, clothing, and make other similar expenditures using their proceeds, and occasionally were required to track their spending and report it to Omwega.

Harris often recruited women to work for his organization by falsely stating that he and Omwega managed a modeling business in Atlanta, Georgia. Harris would confiscate the women’s clothes, cellphones, devices, keys to their vehicles, and identification documents, and would arrange for the women who worked for him to obtain false identification documents.

Harris indoctrinated new recruits into the organization by advising them of his rules. Principal among the rules was that the women were not allowed to speak with family members or law enforcement, often referred to as being "out of pocket." Harris also required the women to make a minimum of $1,000 per day and forced the women to continue to work if they failed to meet this quota. Harris enforced violations of the rules by threatening physical violence and, on occasion, physically assaulting the women who worked for him.

Acting United States Attorney Stephen M. Schenning commended the FBI, Prince George’s County Police Department, and the Maryland State Police for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorneys Erin B. Pulice, Ray D.  McKenzie, and Daniel Gardner, who prosecuted the case.

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

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

 

Baltimore, Maryland – On October 13, 2017, United States District Judge George L. Russell, III sentenced Leonard Chase a/k/a “Nard”, age 23, of Baltimore, Maryland, to 25 years in prison followed by five years of supervised release for conspiracy to participate in a racketeering enterprise including, but not limited to, the murder of Freddie King. Chase admitted that he was a member of Hillside, a drug trafficking organization that operated for 14 years in the Cherry Hill section of Baltimore.

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; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.

According to his plea agreement, from at least 2002, a group known as Hillside distributed powder and crack cocaine, heroin, oxycodone, and marijuana, primarily at the Cherry Hill Shopping Center and other locations throughout Cherry Hill. Members of Hillside used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution. Only trusted members of Hillside, such as Chase, were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, Chase and other Hillside members used colored topped vials or colored the drugs with food coloring.

Chase admitted that they distributed heroin, marijuana, cocaine, and other narcotics.

During Chase’s involvement in the Hillside drug conspiracy, it was reasonably foreseeable to him that the conspiracy involved between one and three kilograms of heroin, between 280 and 840 grams of crack cocaine, between five and 15 kilograms of powder cocaine, as well as marijuana and oxycodone.

Members of Hillside, including Chase, also committed acts of violence in order to fund their narcotics activities and intimidate others who would interfere with their narcotics trafficking. For example, on September 8, 2012, Chase, and other members of Hillside shot and killed Freddie King.

Since 2013, federal prosecutors have convicted at least 35 members of three other rival drug-dealing organizations that operated in Cherry Hill: “Up da Hill,” “Little Spelman,” and “Coppin Court.”

Acting United States Attorney Stephen M. Schenning praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Schenning thanked Assistant United States Attorneys Seema Mittal and Patricia C. McLane, 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 –On October 12, 2017, United States District Judge Roger W. Titus sentenced Ana Maritza Gomez, age 45, of Hyattsville, Maryland, to 30 months in prison followed by 3 years of supervised release for conspiracy to commit mail and wire fraud arising from a scheme to defraud victims through a foreclosure rescue scam. Judge Titus also ordered Gomez to pay $205,280.25 in restitution.

Two co-defendants, Rene De Jesus De Leon, age 49, and Pedrina Rodriguez Bonilla, age 39, both of Silver Spring, Maryland, have also pleaded guilty to conspiracy to commit mail and wire fraud for their involvement in the same scheme.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG); Chief Henry P. Stawinski III of the Prince George’s County Police Department; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to evidence presented at the six-day trial, from at least late 2011 to August 2015, Gomez and her co-conspirators claimed that they could help homeowners who wanted to modify their mortgage loans and prevent foreclosure of their homes. The conspirators sold the victims on a “principal reduction” program that included an upfront fee, typically between $3,000 and monthly payments for 10 to 15 years. Gomez and her co-conspirators told the victims to make monthly payments to the conspirators and to companies they controlled, in lieu of to the homeowners’ lenders. The companies controlled by Gomez’s co-conspirators were named Marketing Multiservices LLC and Innovative Solutions Services LLC.

According to the indictment and court documents, the conspirators mailed monthly invoices to the homeowner victims that falsely indicated that the “principal balance” was being paid down. Some of the victims paid Gomez in person each month at her residence; or some of the victims deposited their payments directly into bank accounts controlled by Gomez’s co-conspirators. The conspirators told the victims not to open any mail from their lenders and instead provide it to the conspirators. The conspirators did not, however, negotiate with lenders of behalf of the homeowners. Many of the victims lost their homes.

Sentencing for Rene De Leon is scheduled for December 14, 2017 at 10 a.m. and Pedrina Bonilla is scheduled for sentencing on December 13, 2017 at 9:00 a.m.

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.

Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

Acting United States Attorney Stephen M. Schenning commended the FHFA-OIG, HUD-OIG, U.S. Postal Inspection Service, Prince George’s County and Montgomery County Police Departments, and the Prince George’s County State’s Attorney’s Office for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorney Kristi N. O’Malley and Special Assistant United States Attorney Jolie F. Zimmerman, who prosecuted the case.

A Maryland man who bought, improved and sold residential real estate was sentenced to 36 months in prison announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Stephen M. Schenning for the District of Maryland.

 

According to the indictment and evidence presented for sentencing, David J. Simard, 58, purchased and sold real estate in Maryland and the Washington, D.C. metropolitan area since the mid-1980s.  In January 2008, Simard received notice that the Internal Revenue Service (IRS), in connection with an audit of his personal income taxes, had requested documents and information from third parties regarding his real estate transactions.  Less than one month after receiving this notice, Simard created Pegasus Home Corporation and began buying and selling properties in its name instead of his own.  From 2009 through 2010, Simard purchased and sold 96 properties in the name of Pegasus.  Simard attempted to conceal his ownership and control of Pegasus by falsely representing that his relative was the owner.  Simard had the same relative apply with the IRS for an employer identification number for Pegasus and used that number when buying and selling properties.  This caused the IRS to receive information falsely indicating that the relative owned Pegasus.  Simard also instructed the relative to open a bank account for Pegasus.  Simard did not file timely personal tax returns for tax years 2009 and 2010, despite earning income requiring him to file.  He also did not file timely corporate tax returns for Pegasus for the same years despite having an obligation to do so.  Simard last filed a timely personal income tax return in 1995.  The court found that Simard caused a tax loss of $1.5 million.

 

In addition to the term of prison imposed, U.S. District Judge Roger W. Titus ordered Simard to serve one year of supervised release and to pay a $10,000 fine.  Simard previously pleaded guilty on July 10 to obstructing the lawful functions of the IRS and failing to file personal and corporate income tax returns. 

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schenning thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael C. Vasiliadis and Kenneth C. Vert of the Tax Division, who prosecuted the case.

 

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

                                                                             

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

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

 

 

Baltimore, Maryland – On October 12, 2017, United States District Judge George L. Russell III sentenced David T. Odom, age 53, of Chicago, Illinois to 30 months in prison, followed by three years of supervised release for a wire fraud conspiracy arising from a scheme to defraud lenders in order to obtain bridge financing for a movie. Judge Russell also ordered Odom to forfeit up to $821,000 after the sale of the property and pay $700,000 in restitution.  

 

Co-conspirator Darryl Wesley Clements, age 50, of Detroit, Michigan, previously pleaded guilty to wire fraud conspiracy.  Rodney Patrick Dunn, age 40, of Elkridge, Maryland, pleaded guilty in a related case to receipt of a bribe by a bank official.

 

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; Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Eric M. Thorson, Inspector General for the Department of the Treasury.

 

David Odom owned CityScope Productions, LLC, and was seeking financing to produce the movie “Season Tickets.”   Odom met Darryl Clements through an attorney in New York. Clements created documents falsely stating that CityScope had permanent financing of $13 million for the movie from Bridge Capital and The Shah Group, and that the funds were held in escrow at a bank in Baltimore, where Dunn worked as a bank officer.  Dunn had agreed with Clements that when prospective lenders attempted to verify the existence of the escrow accounts, Dunn would text or telephone Clements with the caller’s information and permit Clements to return the telephone call posing as “Rodney Dunn, bank officer.”  Dunn believed he would obtain from Clements valuable contacts with professional athletes that would catapult his career change into sports agency.  Clements also promised to pay Dunn for his assistance.

 

In order to carry out the fraud scheme, Clements also created email accounts which appeared to belong to Dunn and The Shah Group, but which Clements actually controlled.  In February 2011, Dunn purchased five cashiers’ checks from his employer bank, each for $20 and made payable to Clements. Clements then altered the checks so that they totaled $4 million, the payees were individuals and entities affiliated with the movie, and “The Shah Group,” was the remitter.  Clements provided the altered checks to Odom/CityScope.  Odom knew that the checks were fraudulent since in fact, no one had been paid.  Clements also fraudulently placed Dunn’s forged signature on escrow agreements and proof of funds statements, which Clements emailed to Odom, so that Odom could furnish those fraudulent documents to prospective lenders.     

 

Odom sought financing from multiple lenders including an unsuccessful attempt thwarted by the prospective lender’s local counsel in Baltimore.  Among other things, Clements created a fictitious bank statement for a purported escrow account, which Odom admitted he sent to a prospective lender.

 

In a telephone call on May 9, 2011, Clements posed as Dunn and fraudulently verified the account numbers and balances of the phony escrow accounts to an official of a California company which specialized in providing bridge financing for movies (California finance company).  On the same day, the California finance company loaned $2.5 million to CityScope and transmitted the funds by wire, specifying that the funds were to be used solely for movie expenses. 

 

In early 2011, Odom’s house was sold in a foreclosure proceeding to the mortgage lender, and Odom was faced with moving or eviction. Odom admitted that he used the bridge loan funds to spend $821,000 to purchase his home back from the lender, approximately $60,000 to buy two cars, approximately $6,000 to take his family on the "Exotic Western Caribbean Cruise" by Carnival Cruise, approximately $90,000 in transfers to family members, and another approximately $75,000 in personal expenses.  Odom also paid some pre-production movie expenses.  Clements received $200,000 from the bridge loan proceeds.  Dunn received only the promise of money.

 

Odom did not repay the bridge loan.  The California finance company prepared to have the bank repay the loan from the purported escrow account, leaving messages for Dunn at the bank, which he then passed on to Clements.  Clements, posing as Dunn, falsely told the company that the loan repayment had been sent to CityScope, and Odom said that CityScope had not received the funds and sent a demand letter to the Baltimore bank.  When the California finance company was not repaid the loan, it sued Odom and others to recover its loan. Because of the allegations contained in the civil suit, Odom believed that criminal charges would be brought against Clements, and he told Clements his fears. Clements was engaged in another loan fraud and received proceeds of $4 million. In August 2011, Clements transferred $2 million to CityScope, which Odom used to partially repay the California finance company.

 

On April 28, 2017, Clements was sentenced to 18 months in the custody of the Bureau of Prisons, and on September 8, 2017, Dunn was sentenced to 30 weekends of incarceration and a fine of $2,000.

 

Today’s announcement is part of the efforts undertaken in connection with the Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

 

Acting United States Attorney Stephen M. Schenning commended the FBI, SIGTARP, and the Treasury Inspector General for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys Joyce K. McDonald and Rachel M. Yasser, who prosecuted the case.

 

                                                                          

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

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

 

Baltimore, Maryland – Jay Edward Wilkins, age 47, of Stoney Beach, Maryland, pleaded guilty today to wire fraud and aggravated identity theft stemming from a scheme to defraud his employer of more than $700,000. 

 

The plea 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 the guilty plea and accompanying factual stipulation, Wilkins was the Chief Financial Officer (CFO) of Revolution, a Baltimore business. Beginning in 2014, Wilkins started improperly diverting corporate funds for his own personal use. As the CFO, Wilkins had access to the personal identifying information, including names, dates of birth, social security numbers, and addresses, of current and former Revolution employees. Over a three-year fraud, Wilkins repeatedly logged into the Revolution payroll account, and changed the direct deposit information for multiple employees, causing the payroll company to send more than $700,000 in fraudulent payroll payments to himself.

 

In addition, Wilkins failed to report a significant portion of the money he obtained from the fraud on his annual tax returns filed with the IRS for the 2014, 2015, and 2016 calendar years.  Wilkins faces a maximum sentence of 20 years in prison for the count of wire fraud and 2 years in prison for the count of aggravated identity theft. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 23, 2018.

 

Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorney’s Harry Gruber and Paul Riley, who are prosecuting the case.

 

 

FOR IMMEDIATE RELEASE                                          Contact ELIZABETH MORSE

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

 

Baltimore, Maryland – Detective Momodu Bondeva Kenton Gondo, age 34, of Owings Mills, Maryland, pleaded guilty today to one count of racketeering conspiracy and one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of a mixture or substance containing heroin.

 

The guilty plea 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.

 

Gondo joined the Baltimore Police Department on November 29, 2005 and was later assigned to the Gun Trace Task Force (GTTF), a division of the Baltimore Police Department. According to the plea agreement, Gondo schemed to steal money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, Gondo prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents. The false reports concealed the fact that Gondo and his co-conspirators had stolen money, property, and narcotics from individuals.

 

According to his plea agreement, beginning in 2015, Gondo robbed civilians he detained and in some cases arrested and stole money and drugs from them.  Gondo shared the proceeds with co-defendants Jemell Rayam, Wayne Jenkins, Daniel Hersl, Marcus Taylor, and others, and on other occasions, he kept all of the proceeds for himself. 

 

Gondo participated in eight robberies from March 2015 through July 2016. Gondo admitted that he was armed with his BPD service firearm during the robberies, that individual victims of the robberies were physically restrained to facilitate the commission of the offense, and that he authored false and fraudulent incident reports and other official documents in some cases in order to conceal his criminal conduct and otherwise obstruct justice.

 

On October 5, 2015, Gondo and his co-conspirators robbed a drug dealer after Gondo and Rayam placed a tracking device on the victim’s car without court authorization so that they could rob his apartment when he was not home.  Gondo acted as a look out while Rayam and Glen Kyle Wells entered the victim’s apartment.  Rayam and Wells stole a Rolex watch, a firearm, $12,000 to $14,000 in cash, and at least 800 grams of heroin.  After the robbery, Gondo and his co-conspirators split the money they had stolen.  Wells took the Rolex, the gun, and the drugs and sold some of the drugs.  Rayam also sold some of the drugs and shared proceeds with Gondo.

 

Gondo admitted to committing multiple robberies with Sergeant Thomas Allers.  For example, on March 11, 2015, Gondo, Rayam, and Allers searched a residence and discovered a large quantity of cash.  Rayam, Gondo and Allers each took some of the cash.  Gondo took between $8,000 and $10,000. 

 

Gondo admitted that he sold a seized gun and marijuana to a drug dealer.  In June 2016, Gondo, Rayam and Jenkins conducted a car stop and then went to the driver’s residence, without a warrant, and seized a 9mm handgun and a pound of marijuana.  After Jenkins directed the sale of the gun and marijuana in order to repay a debt Rayam owed Jenkins for drugs, Gondo arranged for an associate of his, a drug dealer, to buy the marijuana and handgun. 

 

On July 8, 2016, Gondo and his co-defendants Hersl and Rayam detained two victims after a car stop.  Gondo stole money from one of the victims. At Jenkins’s direction, Hersl, Rayam, and Gondo transported the two victims to a BPD office to interrogate them.  Jenkins told his co-conspirators to treat him like he was the U.S. Attorney.  After speaking with one of the individuals, Jenkins, Hersl, Gondo, and Rayam then transported both of the victims to their home and robbed them of $20,000.  Jenkins, Hersl, Rayam, and Gondo divided the $20,000. 

 

In a separate seven-count indictment, Gondo and five co-defendants were charged with conspiracy to distribute and possess with intent to distribute heroin as part of the Shropshire drug trafficking organization (DTO). According to the indictment, the conspirators primarily distributed heroin near the Alameda Shopping Center in Baltimore.  A jury trial against the five co-defendants, Antonio Shropshire, Antoine Washington, Glen Wells, Alexander Campbell, and Omari Thomas, is scheduled to begin October 16, 2017 in courtroom 1A.

 

Gondo provided sensitive law enforcement information to other conspirators in order to help the DTO and protect his co-conspirators. According to his plea agreement, Gondo admitted to providing protection, information and tips to his co-conspirator and co-defendant Antonio Shropshire about how to avoid being arrested.  For example, on March 31, 2016, Gondo alerted Shropshire, an alleged drug dealer, that the Drug Enforcement Administration had installed a GPS tracking device on his vehicle. Shropshire, under Gondo’s instruction, then removed the GPS device and placed it on another vehicle.

 

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

 

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

 

Gondo faces a maximum sentence of 40 years in prison for the narcotics conspiracy conviction, with a minimum mandatory of 5 years in prison.

 

Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, 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 – A federal grand jury returned a second superseding indictment on September 27, 2017 and it was unsealed today. The second superseding indictment charges the following defendants in connection with a conspiracy to participate in a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:

Carlos Roberto Tejada Cruz, a/k/a “Krusty,” age 20, of Beltsville, Maryland;

Kevin Alexis Hernandez-Guevara, a/k/a “Stop,” age 20, of Landover Hills, Maryland;

Rolando Aristides Juarez-Vasquez, a/k/a “Virus,” a/k/a “Daffy,” age 22, of Hyattsville, Maryland;

Jeffry Rodriguez, a/k/a “Hyper,” age 21, of Beltsville, Maryland;

Junior Noe Alvarado-Requeno, a/k/a “Insolente,” a/k/a “Trankilo,” age 20, of Landover, Maryland;

Michael Eduardo Contreras, a/k/a “Katra,” a/k/a “Insoportable,” age 22, of Silver Spring, Maryland;

Luis Fernando Orellana-Estrada, a/k/a “Pinguino,” age 18, of Hyattsville, Maryland; and

Donald Roberto Mendez-Lopez, a/k/a “Chuckie,” age 18, of Hyattsville, Maryland.

All of the defendants are in custody.

The second superseding indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Assistant Attorney General Kenneth A. Blanco; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Assistant Director in Charge Andrew W. Vale of FBI Washington Field Office; Special Agent in Charge of DEA Karl C. Colder;  Chief Henry P. Stawinksi 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.

 

According to the indictment, 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 Sailors Clique of MS-13.  The four count superseding 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 and gun trafficking, and extortions.

For a period of time beginning at least in 2015 through September 2017, the Sailors Clique is 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, members of the Sailors Clique allegedly trafficked narcotics, including marijuana and cocaine in Langley Park, Maryland, with the proceeds benefiting the gang.

More specifically, the superseding indictment alleges that on June 16, 2016, Alvarado-Requeno, planned with and directed other MS-13 members and associates to murder an individual who was thought to be a member of the rival 18th Street gang in Gaithersburg, Maryland.

On July 29, 2016, Tejada-Cruz, Hernandez-Guevara and other members and associates of MS-13 planned another murder. After luring the victim to a secluded location, Tejada-Cruz attempted to shoot the victim, and Tejada-Cruz and others stabbed the victim to death.

On March 27, 2017, Contreras arranged for members of the Sailors Clique to travel from Maryland to Lynchburg, Virginia where they murdered a victim in Bedford County.

The indictment further alleges that on August 9, 2016, Tejada-Cruz, Hernandez-Guevara and Rodriguez planned a drug deal to purchase marijuana. Hernandez-Guevara and Rodriguez attempted to steal the marijuana by brandishing a gun and knife, and in the course of the robbery shot and stabbed two individuals.

According to the indictment, on June 1, 2017, Juarez-Vasquez and other members and associates of MS-13 exchanged words with an individual in the Adelphi area of Maryland, and threw MS-13 gang signs. Juarez-Vasquez shot the victim in the head, killing him.

Alvarado-Requino, Tejada-Cruz, Hernandez-Guevara, and Juarez-Vasquez face a maximum sentence of life in prison.  Rodriguez, Contreras, Orellana-Estrada and Mendez-Lopez face a maximum sentence of twenty years in prison for conspiring to participate in a racketeering enterprise.  Tejada-Cruz and Hernandez-Guevara also face a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering.  Orellana-Estrada and Mendez-Lopez also face a maximum of twenty years in prison for conspiring to interfere with interstate commerce by extortion.

Contreras is also charged with conspiracy to distribute and possession with intent to distribute controlled substances, which carries a penalty of up to 20 years in prison. Orellana-Estrada and Mendez-Lopez have been charged with conspiracy to interfere with interstate commerce by extortion, which carries a possible sentence of 20 years in prison.

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

Acting United States Attorney Stephen M. Schenning thanked the FBI Washington Field Office, HSI, DEA, the Prince George’s County Police Department, the Hyattsville Police Department, the Montgomery County Police Department, the State’s Attorney’s Office of Prince George’s County, and the State’s Attorney’s Office of Montgomery County. Mr. Schenning also commended Assistant United States Attorneys William D. Moomau and Daniel C. Gardner of the United States Attorney’s Office for the District of Maryland 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 – Detective Jemell Lamar Rayam, age 37, of Owings Mills, Maryland, pleaded guilty today to one count of racketeering conspiracy including multiple robberies, and overtime fraud. 

 

The guilty plea 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.

 

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

 

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

 

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

 

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

 

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

 

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

 

On March 11, 2015, Rayam, Gondo and Sergeant A, as well as Sergeant A’s son, who was not a police officer, searched a residence and discovered a large quantity of cash.  Rayam, Gondo and a BPD Sergeant each took some of the cash.  Rayam took between $8,000 and $10,000.  Sergeant Thomas Allers has been charged in a separate indictment with Racketeering Conspiracy and Racketeering.  Allers is detained pending trial.

 

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

 

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

 

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

 

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

 

Rayam faces a maximum sentence of 20 years in prison. 

 

Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, 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 – Jayron Khalil Foster, age 21, of Riverdale, Maryland, was charged by federal criminal complaint on April 26, 2017 with production of child pornography. The complaint was unsealed today.

 

The complaint 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); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Henry P. Stawinksi III of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

 

According to the affidavit filed in support of the complaint, between at least August 2016 through January 2017, Foster allegedly engaged in sexually explicit conduct with a 7-year-old female, in order to produce visual depictions documenting the abuse. In April 2017, Maryland State Police (MSP) began investigating ten Cyber tips that were sent to the MSP Internet Crimes Against Children (ICAC) task force from the National Center for Missing and Exploited Children in reference to possible child pornography. On April 25, 2017, investigators executed a search warrant at Foster’s residence and seized a hard drive, which contained numerous images and videos depicting Foster engaged in sexually explicit conduct with the minor victim.

 

If convicted, Foster faces a mandatory minimum of 15 years in prison and up to 30 years in prison for each count of production of child pornography. Foster is currently detained in Prince George’s County on related state charges.

 

A complaint is not a finding of guilt. An individual charged by complaint 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 HSI, Maryland State Police, Prince George’s County Police Department, and Prince George’s County Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Kelly O’Connell Hayes, who is prosecuting the federal case.

 

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

 

 

Baltimore, Maryland – Today, Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.

 

In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.

 

As part of the Project Safe Neighborhood initiative, the Governor’s Office of Crime Control and Prevention has received a $478,013 grant to implement a gun crime reduction plan in Prince George’s County. The County’s Project Safe Neighborhood program strategically develops a plan of action to provide clear direction for apprehension, prosecution, and intervention of gun offenders as well as the prevention and suppression of gun crime.

 

Prince George’s County Project Safe Neighborhood program involves partners from the State Attorney’s Office for Prince George’s County, Maryland Parole and Probation, Prince George’s County Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the University of Maryland's Institute for Governmental Service and Research to effectively address gun crime at every level of the criminal and judicial system. The County’s Project Safe Neighborhood approach works with established strategies of crime control and prevention such as Project EXILE, Violent Repeat Offenders list, Maryland Gun Center initiative and the Gun Offender Registry to name a few.

 

In a statement on the program, the Attorney General said:

 

"According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action. Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work. Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy. Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer."

 

The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:

 

-Additional Assistant United States Attorney Positions to Focus on Violent Crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.

 

-More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.

 

-Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions.  Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.

 

-Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others.  To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources. 

 

-Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts.  These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO. 

 

-Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year.  Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.

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

 

 

 

Baltimore, Maryland – Brian Arthur McCormick, age 57, of Annapolis, Maryland, pleaded guilty today to two counts of wire fraud stemming from a scheme to defraud victims through an advanced fee system.

 

The guilty plea 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 his plea agreement, McCormick provided forged bank statements to potential investors showing that one of his companies, Triton Structure Finance Group, LLC, (“Triton”) had an excess of $402 million. McCormick asked various investor victims to fund projects in exchange for a majority ownership of the project. He falsely promised that the victims would be compensated or would be fully refunded. However, McCormick stole their investment monies and used the funds on personal expenses.

 

In summer 2015, McCormick represented that Brittingham, a company incorporated in Louisiana, had been successfully trading medium term bank notes in Hong Kong since 2001 and had a number of bank guarantees and standby letters of credit totaling approximately $40 billion. Brittingham signed agreements with investors agreeing to split the profits 50-50 with the investors.  The investors signed an agreement with McCormick to split profits with McCormick with 20% for the Defendant and 80% for the investor. 

 

McCormick persuaded victims to invest through misrepresentations that he had personally invested his own funds with Brittingham.  In September 2015, one victim invested one million euros. Brittingham has not repaid any investor and has not paid out any profits.

 

McCormick faces a maximum sentence of 40 years in prison.  U.S. District Judge J. Frederick Motz has scheduled sentencing for December 7, 2017 at 2 p.m.

 

Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorneys Joyce McDonald and Sean Delaney who are prosecuting the case.

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

  

Baltimore, Maryland – On October 3, 2017, Eric Nathaniel Sammons, age 25, of Trappe, Maryland, pleaded guilty to two counts of production of child pornography. 

 

The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Superintendent of the Maryland State Police William M. Pallozzi and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office.

 

According to his plea agreement, between 2014 and 2016, Sammons sexually exploited four minors and produced images of the minors engaged in sexually explicit conduct.  Additionally, Sammons maintained a collection of child pornography on his digital devices. 

 

Prior to May 25, 2016, Sammons set up a hidden camera in the bathroom of a twelve-year-old male victim and recorded a series of 47 videos.

On approximately October 6, 2015, Sammons took a series of 32 photographs of Jane Doe 1, including images that depicted the child partially naked and in various poses.

From approximately May 26, 2016 through September 2016, Sammons was living in the detached garage to a residence in Caroline County. During this time he snuck into the bedroom of two female victims, ages 3 and 5, and produced 11 pornographic images of Jane Doe 2 and Jane Doe 3 engaged in sexually explicit conduct while they slept.

 

Sammons’ digital devices were forensically examined.  Investigators found images and videos of child pornography on the devices, and determined that his mobile phone, the digital camera and the video camera were used to produce the child pornography.  The devices contained the images Sammons produced of the victims as well as an additional 6 videos and over 3000 images of child pornography.   

 

Sammons faces a maximum sentence of 40 years in prison.  U.S. District Judge Richard D. Bennett has scheduled sentencing for January 11, 2018 at 3 p.m.

 

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

 

United States Attorney Stephen M. Schenning commended Homeland Security Investigations, the Talbot County Narcotics Task Force, Maryland State Police, and the States Attorney’s Office and Child Protective Service of Caroline and Talbot Counties for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorney Paul Budlow, 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 George J. Hazel sentenced Rodney Nelson, age 30, of Dunkirk, Maryland today to two years in prison, followed by three years of supervised release, for theft of government property. Judge Hazel deferred issuing a final order concerning restitution, but the parties’ plea agreement establishes that Nelson will have to pay back at least $311,874.84 to the Government. 

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Kim R. Lampkins of the Veterans Affairs Office of Inspector General, and Special Agent/Commander Adanto D’Amore of the Air Force Office of Inspector General.

  

According to his plea agreement, from October 2008 November 2013, Nelson worked as a civilian government pay technician with the 11th Comptroller Squadron at Joint Base Andrews. In this position, he was entrusted with access to civilian employees’ personally identifiable information, including social security numbers, dates of birth, and banking information.  In November 2013, Nelson left his job at Joint Base Andrews (“Andrews”) and took a similar position at the Veterans Affairs Medical Center (“VAMC”).

 

While employed at both Andrews and the VAMC, Nelson abused his positions within the Government to access payroll records and alter personally identifiable information associated with certain current and former government employees, all in an illegal and covert scheme through which he diverted U.S. Government money into his personal bank accounts. Nelson attempted to make it appear as if the money in question was paid to those current and former government employees. During the scheme, Nelson stole approximately $311,874.84 through manipulating payroll records of at least 14 individuals.

 

For example, Nelson accessed one former Government employee’s banking information and replaced the existing bank account with one of his personal bank accounts. Nelson then improperly added over 2,000 hours of time to that victim’s payroll records (for work the victim never performed), resulting in the Government making substantial direct deposit payments into Nelson’s personal bank account. 

 

Acting United States Attorney Stephen M. Schenning praised the Veterans Affairs Office of Inspector General and Air Force Office of Inspector General for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorneys Michael Packard and David Salem 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 George L. Russell III sentenced Jason David Young, a/k/a Bird, J Bird, and Chris, age 34, of New Carrollton, Maryland, to 20 years in prison, followed by five years of supervised release for illegal possession of firearms and for enticing and coercing women to travel across state lines to engage in prostitution.

 

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); Chief Gary Gardner of the Howard County Police Department; Chief Henry P. Stawinksi III of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Howard County State’s Attorney Dario Broccolino; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

 

According to his plea agreement, from September 2013 through October 2015, Young was a pimp and used physical, mental and emotional abuse and threats in order to cause women to engage in commercial sex acts for his financial benefit.  Young admitted that he transported the women across state lines to engage in prostitution.  In January 2015, Young drove two women to Tennessee to engage in commercial sex acts.  Young rented hotel rooms and posted several online advertisements to recruit customers.  Both women were arrested for prostitution following an undercover operation executed by the Knox County Sheriff’s Office.

 

On at least two occasions in 2014, Young was stopped by police and a gun was found in the car.  On each occasion, the woman traveling with Young claimed that the gun was hers.  One of the women later admitted to police that Young had given her the firearm, and that he routinely possessed firearms.  She stated that Young had the women take responsibility for the firearms if discovered by police. One of the guns, a 9mm handgun recovered on December 15, 2014, was stolen.

 

On February 12, 2015, the Prince George’s County Police Department arrested Young for a parole violation.  Young was outside of a local business that was owned by a friend. The owner consented to a search of the business and officers recovered a bag belonging to Young.  The owner also told police that he had seen Young with firearms, and when the owner saw police outside the shop, he hid the firearms above the ceiling tiles so Young would not get in trouble.  Investigators recovered the two .45 caliber handguns from the ceiling.  Both handguns had been stolen.

 

Investigation showed that all three of the stolen handguns had been taken from a prostitution customer, a gun collector who kept a gun safe on the same floor of his house as the master bedroom.  Young had gone to the house once with two of the women he trafficked, and the gun safe was not fully locked and closed.  Women who worked for Young twice stole firearms from the customer and provided them to Young.  A total of five firearms were stolen from the customer’s home.

 

Young took photos of the five firearms using his cell phone and sent them to other individuals.  The photos of the guns were taken inside the apartment Young provided to the women.  He controlled all of the women’s money and movements and threatened to beat them if they did not comply with his instructions.  Young’s cell phone contained images of the injuries resulting from a severe beating he inflicted on one of the women. In addition, Young provided the women with narcotics and withheld narcotics from addicted women in order to exert control over them.

 

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

 

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

 

Acting United States Attorney Stephen M. Schenning commended HSI-Baltimore, Howard County, Prince George’s County, and Montgomery County Police Departments, and the Howard County and Prince George’s County State’s Attorney’s Offices for their work in the investigation.  Mr. Schenning recognized the U.S. Marshals Service, Knox County (TN) Sheriff’s Office, and Prince William County (VA) Police Department for their assistance, and thanked Assistant U.S. Attorneys Zachary A. Myers and Patricia C. McLane, 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 Ellen L. Hollander sentenced Kendra Westmoreland, age 55, of Randallstown, Maryland, to two years in prison, followed by one year of supervised release for receiving and delivering an adulterated or misbranded device, in connection with her receipt and use of polydimethylsiloxane, which she misrepresented to customers as medical grade silicone. Judge Hollander also ordered Westmoreland pay a fine of $2,500.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.

 

According to her plea agreement, from October 2000 through October 4, 2015, Westmoreland received polydimethylsiloxane, a silicon-based organic polymer that she injected directly into the bodies of victim customers for money or some other payment.  Westmoreland intentionally defrauded and misled individuals by representing polydimethylsiloxane as “medical grade” silicone and approved for injecting directly into the human body. Westmoreland also indicated that she was medically licensed to perform the procedure. In fact, Westmoreland was never a licensed medical practitioner and silicone is not approved by the FDA for this purpose.

 

As a result of her representations, victim customers came to her residence, or to hotel rooms, to have polydimethylsiloxane injected directly into their buttocks and other places on their bodies, for larger and fuller buttocks or to shape other areas of their bodies. Westmoreland also traveled to other locations for the same purpose. Westmoreland typically charged customers $250 to $500 per session, and estimated that she had injected thousands of customers, who she claimed found her through word of mouth, or through her business website.  On October 4, 2015, a search warrant was executed at Westmoreland’s residence.  A room of her home was set up to resemble an operating room, including medical equipment and collages of photographs of individuals exposing their buttocks, representing a sampling of those who Westmoreland had injected with silicone. A forensic search of Westmoreland’s cellular phone revealed 126 individuals listed in her contacts as clients.  A financial audit of Westmoreland’s finances for the period from December 2011 to October 2015 revealed cash deposits of $227,994.01, and additional deposits of $48,801.06, for a total of $276,795.07.  The audit indicated no tax payments and no tax returns filed during that period.

 

Westmoreland admitted that she stored the polydimethylsiloxone in a plastic container that was not properly labeled for medical use. When injected into humans, liquid silicone is a medical device subject to the regulation of the Food and Drug Administration (FDA). Polydimethylsiloxane is not approved, exclusively or as a component, for body-contouring.  Polydimethylsiloxane is used in the manufacture of shampoos (to make hair shiny and slippery), food (as an antifoaming agent), caulking, lubricants, kinetic sand, and heat-resistant tiles. 

 

Acting United States Attorney Stephen M. Schenning commended the FDA Office of Criminal Investigations and Baltimore County Police Department for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorney Judson T. Mihok, who prosecuted the case.

                                                                       

FOR IMMEDIATE RELEASE                                                      Contact ELIZABETH MORSE

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

 

 

Baltimore, Maryland – On September 26, 2017, a federal grand jury indicted David Harris Lavine, age 58, of Rockville, Maryland, on charges of theft of bank funds by a bank officer and bank fraud and Lavine and Charles L. Tobias, age 56, Potomac, Maryland for conspiracy to defraud the Internal Revenue Service and tax evasion.

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; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service-Criminal Investigation; Assistant Inspector General Gerald Maye of the Federal Reserve Board Office of Inspector General and Special Agent in Charge Michael McGill of the Social Security Administration, Office of Inspector General.

 From March 2010 until January 2011, David Harris Lavine was the Acting President of CFG Community Bank.  From January 2011 until August 2011, Lavine was president of the bank affiliate, Capital Financial Ventures, LLC. According to the indictment, Lavine, while acting President, diverted $100,000 of bank funds to his own benefit.  The indictment also charges that while president of the bank affiliate, Lavine devised a scheme to defraud CFG Community Bank, a state member bank supervised by the Federal Reserve Board, through the re-finance of bank-owned mortgage loans and the diversion of loan proceeds to his personal benefit and the benefit of a friend.

According to court documents, Lavine used his position at Capital Financial Ventures to pose as the CEO/President of CFG Community Bank. For example, Lavine invited the borrowers of two loans with balances totaling over $7.5 million, to refinance those loans with other financial institutions for a lower mortgage and pay off CFG Community Bank.  At Lavine's direction, the settlement company sent the mortgage loan payoff not to CFG Community Bank but to another company so that Lavine could divert in excess of $775,000.   Lavine created false correspondence with the loan borrowers to provide to CFG Community Bank to conceal the diversion from CFG Community Bank.

According to the indictment, Lavine and Tobias owned Capital T Partners Brookfield, LLC, a Maryland limited liability corporation. In the fall 2011, Lavine and Tobias decided to realize a profit from a group of non-performing mortgages by fraudulently "donating" some of the mortgages to a charity as an in-kind donation and thereby receiving a valuable tax deduction for Capital T Partners Brookfield which would pass through to their personal income tax returns.  Lavine is also charged with tax evasion for two years for failing to report the monies he received through the bank offenses and using the fraudulent charitable contribution as a deduction.  Tobias is charged with tax evasion for failing to report income and also using the fraudulent charitable deduction.

The maximum possible penalties for the bank offenses are thirty years in prison and/or a $1 million fine per count and 5 years in prison and /or $250,000 per count for the tax charges.

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

Acting United States Attorney Stephen M. Schenning commended the IRS, FBI, the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau and SSA-IG for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorney Joyce K. McDonald who is prosecuting the case.

                                                                         

FOR IMMEDIATE RELEASE                                                      Contact ELIZABETH MORSE

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

 

 

Baltimore, Maryland –The Department of Justice has awarded a $750,000 grant to the Baltimore Police Department Community Collaboration Division to improve supervision strategies that will reduce recidivism rates in Baltimore City announced Acting United States Attorney Stephen M. Schenning. 

 

The objectives of the Smart Supervision Program are to improve supervision strategies that will reduce recidivism, promote and increase collaboration among agencies and officials who work in probation, parole, pretrial, law enforcement, treatment, reentry, and related community corrections fields and to develop and implement strategies for the identification, supervision, and treatment of “high-risk/high-needs” supervisees.

 

Since 2015, The Baltimore Police Department Community Collaboration Division (BPD-CCD) Reentry Program has created partnerships with service providers, local, state, and federal agencies. The mission of the BPD-CCD Reentry Program is to reduce recidivism rates in Baltimore City by providing case management and connecting offenders to service providers.

 

The Smart Supervision Program seeks to improve the capacity and effectiveness of community supervision agencies to increase parole and probation success rates and reduce the number of crimes committed by those under supervision, which would in turn reduce admissions to prisons and jails and save taxpayer dollars.

 

The Baltimore Police Department Community Collaboration Division was one of seven awardees across various jurisdictions in the United States. The Community Collaboration Division partnered with the Department of Public Safety and Correctional Services, Division of Parole and Probation and local service providers to expand evidence-based practices and principles to improve the delivery of probation and parole supervision strategies and practices.

“I’m excited that we received this grant based on the work of the Community Collaboration Division,” said Baltimore Police Commissioner Kevin Davis. “We have an obligation to focus on those rejoining our community to ensure resources are in place and available in order to put people on the right path for success.”  

                                                                     

FOR IMMEDIATE RELEASE                                                      Contact ELIZABETH MORSE

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

 

Baltimore, Maryland – A federal grand jury indicted Isabel FitzGerald, age 47, of Annapolis, Maryland, Kenneth Coffland, age 62, of Riva, Maryland, Steven Maudlin, age 59, of Indianapolis, Indiana, and James Pangallo, age 57, of Greenwood, Indiana, on charges related to a bribery conspiracy involving information technology contracts with the State of Maryland Department of Human Services, formerly known as the Department of Human Resources.

The indictment 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 the six-count indictment, from February 2007 through December 2014, FitzGerald held several offices in the State of Maryland government, including Department of Human Resources (DHR), Chief Information Officer (CIO), Executive Consultant to the DHR Secretary, DHR Deputy Secretary of Operations, and the Secretary of the Department of Information Technology.  In January of 2011, while serving as DHR CIO, FitzGerald incorporated Aeon Consulting and Technical Services Inc. (Aeon) in Maryland. In February 2012, she incorporated Aeon in Indiana.  Between 2009 and 2013, Kenneth Coffland held various positions on DHR contracts including with a contractor identified in the indictment as Company #1. Coffland incorporated Blue Northern Consulting, LLC (“Blue Northern”) in November 2012. 

Steven Maudlin was the CEO and majority shareholder of The Consultants Consortium Inc. (TCC), a small Indiana company that provided IT consulting services as a subcontractor. James Pangallo was the Chief Financial Officer, Principal, and shareholder in TCC.

In 2008, DHR awarded Company #1 two contracts through a competitive bidding process known as a Request for Proposal. One contract was a five-year, eight-month hosting contract that was worth up to approximately $129 million. The second contract was a five-year, six-month applications contract that was worth up to approximately $229 million.

According to the indictment, FitzGerald and Coffland received and agreed to receive a stream of financial benefits from Maudlin and Pangallo in exchange for FitzGerald’s performance of official acts for TCC’s benefit. 

Benefits to FitzGerald and Coffland

The indictment alleges that FitzGerald and Coffland solicited and demanded that, at various different times, Maudlin and Pangallo pay Coffland and FitzGerald one-third of TCC’s profits on specified subcontracts with Company #1. The defendants agreed that, in order to conceal the nature of these payments, TCC would pay FitzGerald under the guise of consulting work performed by Aeon, and Coffland under the guise of consulting work performed by Blue Northern.

    

While FitzGerald served as a consultant to the Secretary of DHR, in order to conceal the nature of payments from TCC to FitzGerald, TCC agreed to pay Aeon for purportedly providing and supervising the work of two workers identified in the indictment as Person #1 and Person #2.  However, both people had already been working under TCC’s supervision on that contract, and continued to be supervised by TCC employees, not by FitzGerald. 

           

In November 2012, shortly before FitzGerald began work as DHR Deputy Secretary of Operations, she directed Maudlin to transfer the Aeon contract covering the work of Person #1 to Coffland via Blue Northern.  In December 2012, TCC agreed to pay Blue Northern $20 per hour worked by Person #1. However, Coffland did not supervise Person #1, who continued to be supervised by TCC employees.

           

On February 25, 2013, Pangallo directed TCC to issue a $10,000 check to Blue Northern, and ordered a TCC employee to book the payment internally at TCC as consulting work.

 

Official Actions Taken By FitzGerald

The indictment alleges between October and December of 2011, FitzGerald and Mauldin negotiated an agreement whereby FitzGerald was compensated for using her influence to convince another Company #1 subcontractor on a $27.6 million DHR project (CARES Modernization) to further subcontract work under that project to TCC.

Between December 2011 and August 2013, FitzGerald allegedly caused Company #1 to issue a task order to TCC that had no specified work obligations in the approximate amount of $253,000 by threatening to use her influence to cause the DHR Secretary and Acting DHR CIO to withhold funding approval of the CARES Modernization project if Company #1 did not comply.  She also caused Company #1 to give a fixed price subcontract to TCC worth approximately $23.72 million over six years by threatening to use her influence to cause DHR not to renew Company #1’s prime hosting contract if Company #1 did not comply. In addition, FitzGerald directed a Company #1 executive to hire Coffland as the Hosting Director on the hosting contract at an annual salary, including bonuses, of approximately $500,000.

FitzGerald concealed her and Coffland’s financial agreements with TCC from high-ranking personnel in the government of the State of Maryland and DHR with whom she worked, including the DHR Secretary and the Acting DHR CIO.

The maximum possible penalty for conspiracy is 5 years imprisonment, a $250,000 fine, and 3 years supervised release; for Bribery Involving Agent of Program Receiving Federal Funds, the maximum penalty is 10 years imprisonment, $250,000 fine, and 3 years supervised release; for false statements, the maximum penalty is 5 years imprisonment, $250,000 fine, and 3 years supervised release.

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 for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorneys Sean R. Delaney and Jefferson M. Gray, who are prosecuting the case.

 

FOR IMMEDIATE RELEASE                              Contact ELIZABETH MORSE

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

 

 

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Dr. Jean-Francois Geschwind, age 53, of Westport, Connecticut, to one year and one day in federal prison, followed by three years supervised released for four counts of mail fraud arising from a multi-year scheme to unlawfully obtain travel expense reimbursements from his former employer, the Johns Hopkins University School of Medicine.  Judge Motz also ordered restitution of $583,484.31, which Geschwind paid in full. Geschwind was employed as a physician in the Division of Vascular and Interventional Radiology between 1998 and 2015. 

 

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; and Marilyn J. Mosby, the State’s Attorney for Baltimore City. 

 

According to his plea agreement, between 2007 and July 2015, Geschwind made material misrepresentations and omissions in travel expense statements that he submitted or caused to be submitted to the JHU-SOM, for the purpose of obtaining travel expense reimbursements to which he was not entitled.  During this time period, Geschwind submitted multiple travel expense statements for purported business expenses, when he knew that the claimed expenses were personal, such as family vacations and meals.  For example, during the summer of 2013, Geschwind obtained reimbursement from the JHU-SOM for a 13-day vacation to the United Kingdom and France by falsely representing that the he traveled to those locations to give lectures in connection with his work for the JHU-SOM.  As a result of Geschwind’s material misrepresentations, the JHU-SOM issued three separate checks that included reimbursements for his family vacation.

 

Geschwind also obtained reimbursement from the JHU-SOM for expenses that he knew had already been paid, or would later be paid, by a second (and in some cases a third) entity.  In seeking reimbursement for such expenses, Geschwind did not disclose to the JHU-SOM that he was seeking two (and in some cases three) reimbursements for the same expense. 

 

For example, between July 1 and July 5, 2015, Geschwind traveled to Japan to attend the Asia Pacific Primary Liver Cancer Expert (APPLE) meeting.  By the time he attended the APPLE meeting, Geschwind had joined the Yale School of Medicine faculty as Chair of the Department of Diagnostic Radiology.  Prior to his departure for the APPLE meeting, Geschwind arranged for reimbursement of his round-trip airfare to Japan by Company No. 1, a life-sciences company based in France.  Notwithstanding this arrangement, on May 8, 2015, Geschwind sought reimbursement for the same expense from the JHU-SOM but did not disclose that he had already sought reimbursement for his round-trip airfare from Company No. 1.  As a result of this material omission, the JHU-SOM issued a check to Geschwind that included reimbursement for his round-trip airfare to and from Japan. 

 

On or about June 22, 2015, Geschwind sought reimbursement from the Yale School of Medicine for the above-referenced round-trip airfare to Japan.  Geschwind did not disclose to Yale that he had already arranged for payment of the same expense by Company No. 1, or that he had in fact been reimbursed for that expense by the JHU-SOM.  On or about July 21, 2015, as a result of Geschwind’s material omissions, Yale University issued a check to Geschwind for the cost of the round-trip airline ticket. 

 

In July of 2015, Company No. 1 initiated a wire transfer to Geschwind’s Bank of America checking account that included reimbursement for his round-trip airline ticket to Japan.  Accordingly, as a result of the material omissions, Geschwind obtained three separate payments, from three separate entities, for the round-trip airfare to Japan in July of 2015.

 

Through the various methods identified above, Geschwind obtained money with an aggregate value of hundreds of thousands of dollars, in the form of travel expense reimbursements by the JHU-SOM. 

 

Johns Hopkins investigators in the Office of Hopkins Internal Audit (OHIA) conducted an extensive audit of Geschwind’s reimbursement requests and upon discovering he had requested and received significant sums of inappropriate payments, they referred the case to law enforcement. Hopkins investigators worked closely with authorities to assist with their investigation.

 

Geschwind is scheduled to self-surrender on December 4, 2017.

 

Acting United States Attorney Stephen M. Schenning commended the FBI and the Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorney Peter J. Martinez and Special Assistant United States Attorney Alexander Huggins, who prosecuted the case. 

 

                                                                     

FOR IMMEDIATE RELEASE                                                      Contact ELIZABETH MORSE

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

 

 

Greenbelt, Maryland – Baltimore, Maryland – On September 26, 2017, a jury convicted Troy Allen Lucas a/k/a “Troy Madron,” age 49, of Southwest Baltimore, Maryland of charges relating to the murder-for-hire of Robert Long, who was a cooperating witness in a case pending in the Circuit Court for Baltimore City.   

 

The conviction was announced by the Acting United States Attorney for the District of Maryland Steven 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.

 

“This investigation is the final chapter in an extended federal investigation resulting in several convictions and the exoneration of an innocent man who was wrongly convicted and sentenced to life in state prison,” said Acting United States Attorney Stephen M. Schenning.

 

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.

 

Judge Roger W. Titus scheduled sentencing for January 3, 2018, and Lucas faces a mandatory minimum sentence of life in prison for murder-for-hire conspiracy and use of interstate commerce facilities in the commission of murder-for-hire.  Lucas also faces a maximum life sentence for discharging the firearm during a crime of violence resulting in death.   

 

Jose Joaquin Morales, age 40, 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.

 

Stanley Needleman, age 75, of Baltimore, Maryland was convicted by guilty plea of underreporting $1.2 million in cash on his income tax returns and for failing to file federal forms disclosing the receipt of $10,000 in more or in cash from clients.  Needleman testified at both trials reference Morales’s confession to him about the DMI hit.

 

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.

 

                                                                         

FOR IMMEDIATE RELEASE                                                      Contact ELIZABETH MORSE

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

 

 

Baltimore, Maryland – United States District Judge George L. Russell, III sentenced Greg Ramsey, age 55, of Baltimore, Maryland, to 355 months in prison, followed by five years of supervised release, for use of fire to commit wire fraud, malicious destruction of property by fire, and attempted witness tampering.  Ramsey also was ordered to pay restitution in the amount of $1,081,606.90.  Judge Russell also sentenced Tyesha Roberts, age 29, of Baltimore, to five years of probation, for attempted obstruction of an official proceeding.  Roberts also was ordered to pay restitution of $1,000.  Judge Russell previously sentenced Ramsey’s co-conspirator Julia Teryaeva-Reed, age 33, a citizen of Ukraine, to 162 months for wire fraud, use of fire to commit a federal felony, and malicious destruction of real property by fire.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Daniel L. Board Jr., Baltimore City Police Commissioner Kevin Davis, Baltimore City Fire Chief Niles R. Ford, PhD, Maryland State Police Superintendent Colonel William M. Pallozzi, Maryland State Fire Marshal Brian Geraci, United States Secret Service Special Agent in Charge Christopher Caruso, and Department of Homeland Security Special Agent in Charge Andre Watson.

 

According to Ramsey’s plea agreement, Ramsey and Teryaeva-Reed set fire to three separate residences between October 2012 and August 2013, two in Baltimore, and one in Weatherly, Pennsylvania. One fire spread to adjoining residences and did substantial damage. Two of the residences were occupied at the time. In addition, the pair set two vehicles on fire in August of 2013 in the area of Walbrook Ave. and N. Dukeland Street, which spread to a nearby church. The fires were set in an effort to obtain money from insurance companies for the claims related to the fire damage.

 

Teryaeva-Reed was initially charged by the Baltimore City State’s Attorney’s Office and arrested at JFK airport as she was about to board a flight to Ukraine in 2013. In 2015, Ramsey planned to have a relative, co-defendant Tyesha Roberts, testify falsely for Teyaeva-Reed at trial for $2,000. Ramsey also plotted to assist in the murder of another witness. In November 2015, Ramsey produced a loaded .357 Ruger revolver, which was to be used for the murder, and he was arrested.

 

Acting United States Attorney Stephen M. Schenning commended the ATF for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Matthew J. Maddox, Judson T. Mihok, and Zachary Myers, who prosecuted the case.

 

                                                                              

FOR IMMEDIATE RELEASE                                      Contact ELIZABETH MORSE

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

 

 

Greenbelt, Maryland –Matthew Gorman, age 43, of Takoma Park, Maryland, pleaded guilty to an Information charging him with bribery involving an agent of a program receiving federal funds.

 

The guilty plea 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 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.

 

According to court documents, Gorman was an attorney and lobbyist, who represented clients in front of the Prince George’s County Board of License Commissioners (“Liquor Board”).  In 2013, Gorman paid then-Prince George’s County Council Member William Alberto Campos-Escobar, a/k/a “Will Campos,” a $2,000 bribe payment in exchange for Campos writing a letter to the Liquor Board recommending that Business A receive a liquor license.  In 2015, Gorman paid Campos a bribe in exchange for Campos placing a phone call to the Liquor Board on behalf of Business A.

 

By early 2015, Campos no longer was on the County Council and instead had been sworn in as a member of the Maryland House of Delegates.  According to court documents, Gorman, in conjunction with David Dae Sok Son, Shin Ja Lee, and Young Jung Paig, all of Maryland, paid a $4,000 bribe to Campos in exchange for Campos’s assistance in passing legislation that authorized the Liquor Board to issue certain liquor licenses permitting establishments to sell liquor on Sundays.  Lee and Paig owned liquor stores that stood to benefit from the Sunday liquor sales licenses.

 

Also in 2015, Gorman paid a $5,000 bribe to Campos in exchange for certain actions by Campos, including Campos testifying on behalf of Business B before the Montgomery County Board of License Commissioners.         

 

Gorman faces a maximum sentence of up to ten years in prison.

 

As part of the related investigation, other individuals, including those below, have pleaded guilty to related federal criminal offenses:

• On January 6, 2017, Will Campos pleaded guilty to conspiracy and bribery.
• On April 20, 2017, Young Paig pleaded guilty to bribery.
• On May 17, 2017, Shin Lee pleaded guilty to bribery.

 

Additionally, on January 4, 2017, David Son was charged by criminal complaint with conspiracy and bribery.

 

Gorman’s sentencing currently is scheduled for 10:00 a.m. on December 20, 2017, before Judge Paula Xinis in Greenbelt, Maryland.

 

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, Menaka S. Kalaskar, Arun G. Rao, and James A. Crowell IV, 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 Paul W. Grimm sentenced Olusola Olla, age 50, of Browns Summit, North Carolina, to four years in prison, followed by three years of supervised release, for conspiracy to commit money laundering and structuring arising from a scheme to defraud elderly victims of millions of dollars.  Olla also was ordered to forfeit and pay restitution in the amount of $349,095.  Judge Grimm also sentenced Adeyinka Awolaja, age 35, of Chicago, Illinois, formerly of New Carrollton, Maryland, to three years of probation, including two years of home confinement, for conspiracy to commit money laundering arising from the same scheme to defraud.  Awolaja also was ordered to forfeit and pay restitution of $145,045.75.

 

The sentences were 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.

 

According to evidence presented at Olla’s 11-day trial, from January 2011, to May 18, 2015, members of the conspiracy searched online dating websites to initiate romantic relationships with vulnerable male and female individuals.  They phoned, emailed, texted, and used internet chat messenger services to form romantic relationships with the victims, who lived in Maryland and around the country. 

 

Witnesses testified that members of the conspiracy used false stories and promises to convince the victims to give them money, including fake hospital bills, plane trips to visit the victims, and problems with overseas businesses.  Olla and co-conspirators opened bank accounts, called “drop accounts,” that received millions of dollars from the victims.  Testimony at trial showed that victims provided money to Olla and Awolaja as a result of the false stories and promises, either by depositing money directly into drop accounts controlled by the defendants, or by sending checks to them.  Payments from victims ranged from $1,720 to $50,000.

 

Olla, Awolaja, and the co-conspirators dispersed money received from the victims by transferring funds to other accounts they controlled, by obtaining cashier’s checks, and by writing checks to individuals or entities, all done to conceal the nature, source, and control of those assets.  Relatedly, many of the currency transactions were “structured,” or designed to avoid the filing of currency transaction reports, which financial institutions are required to file with the Internal Revenue Service for currency transactions exceeding $10,000.

 

The following co-defendants were previously convicted at trial or pleaded guilty:

 

Gbenga Benson Ogundele, a/k/a “Benson Ogundele,” age 58, of Laurel, Maryland;

Victor Oyewumi Oloyede, age 42, of Laurel, Maryland;

Olusegun Charles Ogunseye, a/k/a “Charles O. Ogunseye,” age 58, of Laurel, Maryland;

Babatunde Emmanuel Popoola, a/k/a “Emmanuel Popoola” a/k/a “Tunde Popoola, age 34, of Bowie, Maryland;

Mojisola Tinuola Popoola, a/k/a “Mojisola Oluwakemi Tin Popoola” and “Moji T. Popoola,” age 42, of Laurel, Maryland; and

Olufemi Wilfred Williams, a/k/a “Wilfred Olufemi Williams” and “Femi Williams,” age 26, of Owings Mills, Maryland.

 

The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.

 

Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 United States Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

 

Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation and thanked Assistant United States Attorneys Thomas P. Windom, Ray D. McKenzie, and Leah Jo Bressack, 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 Se Chang Moon, a/k/a Warren Moon, age 50, formerly of Montgomery County, Maryland, to 39 months in prison, followed by five years of supervised release, for bank fraud and aggravated identity theft, arising from schemes in which the defendant told victims that he would help them to refinance loans on their respective homes.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); and Chief J. Thomas Manger of the Montgomery County Police Department.

 

According to court documents, Moon represented to victims that he was a loan officer and that he would help them obtain financing on their respective homes. Moon requested and obtained over 30 different payments from Victim A totaling over $300,000 for this purpose. Victim A transferred money to Moon believing that Moon was using the money to refinance the loan on Victim A’s home. Moon provided Victim A with phony documents relating to the purported refinance, including fraudulent “pre-approval letters.” Instead, Moon kept the money that Victim A paid to Moon for Moon’s personal use.

 

With respect to Victims B, C and E, after obtaining the victims’ personal information, purportedly to obtain refinancing, Moon used the victims’ personal information without their knowledge or permission, to obtain loans in their names. Moon then directed the loan proceeds into bank accounts controlled by Moon.

 

United States District Judge Paul W. Grimm also ordered Moon to pay restitution in the amount of $652,542.07 and entered an order of forfeiture in the amount of $499,937.07.

 

Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 United States attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.

 

Acting United States Attorney Stephen M. Schenning commended the FHFA-OIG and the Montgomery County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Erin Pulice, who prosecuted the case.

 

 

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

 

 

Greenbelt, Maryland – On September 13, 2017, U.S. District Judge Paula Xinis sentenced Sidney J. Charles, Jr., age 50, of Levelland, Texas, to two years in prison followed by three years of supervised release for wire fraud. The District Court also entered orders of forfeiture and restitution in the amount of $249,706.30.

 

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 the plea agreement, starting in or around August 2009, Charles founded The Borrowing Station, LLC (“The Borrowing Station”), a Nevada limited liability company with its principal place of business in Bowie, Maryland. From at least October 2009 through at least July 2011, Charles served as the president and chief executive officer of The Borrowing Station. Charles marketed The Borrowing Station as an established investment firm that offered significant returns on investments.

 

From at least October 2009 through at least July 2011, The Borrowing Station, acting through its officers, employees, and agents, including Charles, orchestrated and operated a scheme to solicit investors with false promises of high rates of guaranteed return on their investments. Charles, did not generate any material revenue for the investors, used funds from later investors to make payments to earlier investors, and used investor funds to enrich himself.

 

Between at least October 2009 through at least July 2011, in the District of Maryland and elsewhere, The Borrowing Station, through Charles and others, solicited and accepted more than $250,000 from at least 17 individuals and entities for the purpose of participating in a pooled investment vehicle that traded off-exchange leveraged or margined foreign currency contracts (“forex” or “foreign currency”). As part of the scheme to defraud, Charles solicited and accepted these monies for the ostensible purpose of participating in a pooled investment vehicle that traded off-exchange leveraged or margined forex. The subsequent loss of those funds resulted in substantial financial hardship to at least one of the investors.

 

Charles falsely advertised The Borrowing Station as an established, successful, and safe investment firm. The Borrowing Station website stated, for example, that The Borrowing Station “is an established company in the United States, specializing in Retirement and Education Savings.”

 

In addition, Charles solicited investors directly and through a website, www.earn25percent.com, a The Borrowing Station website, with false promises that investors could earn substantial investment returns such as 25% per year or 10% per month. Charles also falsely claimed that pool participant funds were guaranteed against trading losses.

 

The Borrowing Station did not make these returns or guarantee against trading losses, as Charles had falsely represented. Rather, Charles paid pool participants with other pool participants’ funds rather than from any funds generated by trading forex, and deposited only a portion of pool participant funds into actual trading accounts. Charles also hid trading losses from pool participants, including substantial losses resulting from unsuccessful forex trades. Charles used pool participant funds to pay for personal expenses, to make purported profit or commission payments to other pool participants, and to fund Borrowing Station’s operations.

 

In order to lull the participants, Charles and at least one other individual, both of whom were signatories on The Borrowing Station’s bank account, issued checks drawn on behalf of The Borrowing Station to pool participants that represented purported monthly returns or returns on investment. The amount of the funds that each check paid typically approximated the return of 10% per month that Charles, directly and through others, had promised pool participants. Charles issued these false profit checks and other materially false communications to pool participants in order to conceal the trading losses, the misappropriation of pool participant funds, and the fraudulent scheme.

 

Charles and others failed to disclose to pool participants and prospective pool participants that their claims of experience and success in trading forex were false and that there was no basis for their representations that pool participants could earn investment returns of 25% per year or 10% per month. Charles failed to disclose that he and others traded only a portion of pool participant funds. Charles failed to disclose to pool participants that Charles used pool participant funds for his personal expenses. In execution of the scheme to defraud, Charles used or caused to be used wire communications in interstate commerce.

 

Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Thomas M. Sullivan and Sujit Raman, who prosecuted the case.

 

FOR IMMEDIATE RELEASE                                             Contact ELIZABETH MORSE

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

 

 

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Timothy West, age 43, of Temple Hills, Maryland to 21 months in prison for mail fraud in connection with a stolen identity refund fraud scheme.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

 

According to documents filed with the court, from approximately November 2011 through March 2013, Timothy West, along with others, engaged in a scheme to file fraudulent tax returns with the Internal Revenue Service (IRS) claiming refunds to which they were not entitled. On two separate occasions, West hired a tax return preparer in Temple Hills, Maryland, to prepare fraudulent returns falsely claiming, among other things, that two individuals were his dependents. As part of the scheme, West and others then used these false tax returns as templates to prepare and file hundreds of additional fraudulent tax returns with the IRS seeking more than $413,000 in refunds. West caused a tax loss of approximately $284,706 as a result of his actions as part of the scheme.

In addition to the term of prison imposed, U.S. District Judge Paul W. Grimm ordered West to serve three years of supervised release and to pay $284,706 in restitution to the IRS.

Acting U.S. Attorney Schenning and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation and Treasury Office of Inspector General, who conducted the investigation, and Assistant U.S. Attorney Erin Pulice and Trial Attorneys William Guappone and Thomas F. Koelbl of the Tax Division, who prosecuted the case.

A 43-year-old man was sentenced in the District of Maryland to 21 months in prison for mail fraud in connection with a stolen identity refund fraud scheme, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Stephen M. Schenning for the District of Maryland.

 

According to documents filed with the court, from approximately November 2011 through March 2013, Timothy West, along with others, engaged in a scheme to file fraudulent tax returns with the Internal Revenue Service (IRS) claiming refunds to which they were not entitled. On two separate occasions, West hired a tax return preparer in Temple Hills, Maryland, to prepare fraudulent returns falsely claiming, among other things, that two individuals were his dependents. As part of the scheme, West and others then used these false tax returns as templates to prepare and file hundreds of additional fraudulent tax returns with the IRS seeking more than $413,000 in refunds. West caused a tax loss of approximately $284,706 as a result of his actions as part of the scheme.

 

In addition to the term of prison imposed, U.S. District Judge Paul W. Grimm ordered West to serve three years of supervised release and to pay $284,706 in restitution to the IRS.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schenning thanked special agents of IRS Criminal Investigation and Treasury Office of Inspector General, who conducted the investigation, and Assistant U.S. Attorney Erin Pulice and Trial Attorneys William Guappone and Thomas F. Koelbl of the Tax Division, who prosecuted the case.

 

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

 

FOR IMMEDIATE RELEASE                                                      Contact ELIZABETH MORSE

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

 

 

Greenbelt, Maryland – On September 15, 2017, U.S. District Judge Theodore D. Chuang sentenced Grigory Trosman, age 78, of Damascus, Maryland to 18 months in prison, followed by six months of home-confinement and three years of supervised release, for conspiracy to bribe a public official. Judge Chuang also ordered Trosman to pay a $75,000 fine and restitution in the amount of $469,287.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Director in Charge Andrew Vale of the Federal Bureau of Investigation, Washington Field Office, Criminal Division; and Deputy Inspector General for Investigations John Dupuy of the Department of Energy, Office of Inspector of General.

 

According to his plea agreement, Trosman was an employee of the United States Department of Energy (DOE), working as a Program Manager at the DOE Germantown, Maryland facility. In his position as Program Manager, Trosman had specific duties and influence related to DOE programs and funding on international nuclear safety programs-including programs related to United States financial and technological support for nuclear reactors in Ukraine.

 

From 2004 through 2014, Trosman, sought, received, and accepted monies in various forms in return for being influenced in the performance of his official duties. These monies included wire transfers, cash and checks, as well as sponsorship for a visa for Trosman’s wife, allowing her to travel to, and work in, the United States and to attempt to obtain residence in the United States. During this time, Trosman accepted at least $469,287 in bribes in exchange for official acts performed as a public official at the DOE.

 

From approximately 2002 through March 2014, Trosman used his official position in various capacities to assist co-conspirators and various companies to obtain access to federal research funding and contract work in Lithuania, Russia, and Ukraine. Trosman also used his official government-funded foreign travel to Ukraine to promote his co-conspirators’ companies’ technology and capabilities and to obtain financial backing for the company's foreign operations.

 

Two other defendants, Anatoly Samgorodsky, age 65, of Sarasota, Florida, and Anatoly Fedorovsky, age 57, of Fair Lawn, New Jersey, have pleaded guilty and both have been sentenced. Samgorodsky was sentenced to 12 months, 1 day in federal prison followed by one years of supervised release and Fedorovsky was sentenced to 18 months in federal prison followed by one year of supervised release. Samgorodsky was also ordered to pay a $25,000 fine and $70,000 in restitution; Fedorovsky was ordered to pay a $15,000 fine and was ordered to forfeit $7,000.
 

Acting United States Attorney Stephen M. Schenning commended the FBI and the DOE Office of Inspector General for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case.

 

 

 

FOR IMMEDIATE RELEASE                                                         Contact ELIZABETH MORSE www.justice.gov/usao/md                                                                   at (410) 209-4811

 

Baltimore, Maryland –Delante Lee, a/k/a “Tay Tay,” age 22, of Baltimore, Maryland, pleaded guilty today in federal court to his participation in a racketeering conspiracy and drug trafficking conspiracy related to his involvement in the street gang Murdaland Mafia Piru, or MMP.

 

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; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.

 

MMP, also known as the “Mob” or “Mobsters,” was a violent subset of the Bloods gang that operated in Maryland and elsewhere beginning in or about 2011. It was modeled after the Italian Mafia, and was organized hierarchically with a “Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. For many years, MMP controlled the drug trade in large swaths of Northwest Baltimore City. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from western Maryland and neighboring states. MMP’s members used violence and threats of violence—including murder—to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.

 

According to the plea agreement, Lee was an associate of MMP who agreed with members to conduct and participate in the gang’s affairs through a pattern of racketeering activity that included conspiracy to commit murder and offenses involving drug distribution.

 

Lee admitted that on April 14 and April 21, 2016, he distributed crack cocaine to a confidential informant working for law enforcement near the intersection of Liberty Heights Avenue and Gwynn Oak Avenue. In a recorded conversation on April 21, 2016, Lee said he was going to purchase “four and a half ounces” of cocaine for $4,200 later that day. Lee also said he had raw heroin for sale at $90 per gram.

 

According to the plea agreement, on January 8, 2017, while a fugitive from justice in the case, Lee attempted to murder an individual because he lingered on MMP’s drug turf after being asked to leave. Lee chased the victim into oncoming traffic, firing multiple shots at him and striking him once in the arm. Shortly afterward, Lee shot himself as he was attempting to put away the gun. When medical personnel and law enforcement officers arrived on the scene, Lee refused to provide his name. In a search of his person, officers recovered a yellow-top vial of crack cocaine.

 

Lee faces a maximum sentence of life in prison on Counts One and Two and a mandatory minimum sentence of ten years in prison on Count Two. The Honorable Catherine C. Blake has scheduled sentencing for November 2, 2017 at 9:15 a.m.

 

The following eleven co-defendants previously pleaded guilty in the case:

 

William Banks, a/k/a “Trouble,” age 27, of Baltimore;

Dominick Wedlock, a/k/a “Rage,” a/k/a “Nick,” age 29, of Baltimore;

Dwight Jenkins, a/k/a “Huggie,” a/k/a “Unc,” age 48, of Baltimore;

Melvin Lashley, a/k/a “Menace,” age 26, of Baltimore;

William Jones, a/k/a “Bill,” a/k/a “Smalls,” age 27, of Baltimore;

Jarmal Harrid, a/k/a “J-Rock,” a/k/a “PJ,” age 27, of Gwynn Oak;

Jamal Smith, a/k/a “Mal,” a/k/a “Lil Mal,” age 25, of Gwynn Oak;

Maurice Pollock, a/k/a “Reese,” age 22, of Baltimore;

Charles Blackwell, a/k/a “Ci-Bo,” a/k/a “Lil Charlie,” age 21, of Woodlawn, Maryland;

Kenneth Torry, a/k/a “Kenny,” age 39, of Owings Mills; and

Jay Greer, a/k/a “Champagne,” a/k/a “Montana Gold,” age 24, of Baltimore.

 

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 Attorney’s Christina Hoffman, Lauren E. Perry, and Jason D. Medinger, who are prosecuting 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 Calum Thomas, age 20, and Christian Thomas, age 21, both of Annapolis, Maryland, on charges related to a scheme to Distribute and Possess with Intent to Distribute Controlled Substances and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. The indictment was returned on September 7, 2017, and was unsealed on September 14, 2017.

 

The indictment 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; Chief Timothy J. Altomare of the Anne Arundel County Police; and Anne Arundel County State’s Attorney Wes Adams.

 

According to the three-count indictment, the defendants allegedly distributed heroin, cocaine, and marijuana in and around Annapolis, Maryland. In addition, it is alleged that they robbed and attempted to rob other drug traffickers and their customers of drugs and drug proceeds, as well as burglarized residences to steal drugs.

 

The federal charge include overt acts to further the drug trafficking operation, to include the homicide of a 55-year-old man that occurred on January 2, 2017 in Annapolis, Maryland. The defendants allegedly utilized a Hermann Weihrauch, .357 caliber Magnum, model EA/R, six-shot revolver. The victim had no ties to illegal activity.

 

The defendants face a maximum sentence of 20 years in prison for the conspiracy. Christian Thomas faces a mandatory minimum sentence of seven years imprisonment, up to life, for possessing and brandishing a firearm in furtherance of a drug trafficking crime. Calum Thomas faces a mandatory minimum sentence of five years imprisonment, up to life, for possessing a firearm in furtherance of a drug trafficking crime. Detention hearings will be held today at 2 p.m. in U.S. District Court in Baltimore. Both defendants remain 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 ATF, Anne Arundel County Police and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Daniel C. Gardner and Special Assistant U.S. Attorney Christine Goo who are prosecuting the case.

 

 

FOR IMMEDIATE RELEASE                                                 Contact ELIZABETH MORSE

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

 

Greenbelt, Maryland – On September 12, 2017, U.S. District Judge Paula Xinis sentenced Reginald Cecil Duckett, age 49, of Washington, D.C., to seven years in federal prison, followed by three years of supervised release, for conspiracy to distribute phencyclidine (PCP).

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Director in Charge Andrew W. Vale of Federal Bureau of Investigation, Washington Field Office; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County Sheriff Melvin C. High; and Chief Peter Newsham of the District of Columbia Metropolitan Police Department.

 

According to his plea agreement, Duckett purchased PCP from co-conspirators and then redistributed the PCP to others. Duckett discussed particular transactions via telephone, including the distribution of multiple ounces of PCP. Duckett’s telephone calls were intercepted pursuant to a court order.

 

Duckett is one of nine co-conspirators charged in the case. Four co-defendants have so far pleaded guilty and will be sentenced later: Alexander Patton, Jr., Mitchell Brooks, Jermaine Washington, and Robert Beasley.

 

Acting United States Attorney Stephen M. Schenning commended the FBI, the Prince George’s County Police Department, the Prince George’s County Sheriff’s Office, and the Metropolitan Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Joseph Baldwin who is prosecuting the case.

 

FOR IMMEDIATE RELEASE                                                    Contact ELIZABETH MORSE

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

 

Baltimore, Maryland – A federal grand jury returned two superseding indictments charging 14 defendants with racketeering at the Eastern Correctional Institution in Westover, Maryland. The superseding indictments charged 6 correctional officers (COs), 4 inmates and 4 outside “facilitators,” for their roles in the conspiracy, which allegedly involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison. The indictments were returned on September 12, 2017, and made public today.

 

The superseding indictments were 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 Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services.

 

According to the superseding indictments, the Eastern Correctional Institution (ECI) is the largest state prison in Maryland, operating since 1987 near Westover, in Somerset County, on Maryland’s Eastern Shore. ECI is a medium-security prison for men built as two identical compounds (East and West) on 620 acres, and housing more than 3,300 inmates. The East and West Compounds are further divided into Housing Units, 1 through 4 in the West and 5 through 8 in the East.

 

The first superseding indictment covers the West Compound at ECI and charges 6 defendants, including 2 COs, 1 ECI inmate, and 3 outside suppliers or “facilitators.” The second indictment covers the East Compound at ECI and charges 8 defendants, including 4 COs, 2 ECI inmates and 2 facilitators.

 

The superseding indictments allege that from in or about 2014, until in or about October 5, 2016, the COs smuggled contraband into ECI, including narcotics, cell phones, pornographic DVDs, and tobacco. These items were distributed by inmates, and the COs managed the proceeds of the sales. The “going rate” for a CO to smuggle contraband into ECI was $500 per package, although some COs charged more and some COs charged less. According to the superseding indictments, inmates and facilitators paid COs for smuggled contraband in cash, money orders, and through PayPal. Inmates were able to use contraband cell phones to pay COs directly using PayPal from within ECI. Inmates also received payments from other inmates for contraband through PayPal, often with the assistance of facilitators.

 

The superseding indictments allege that the defendants conspired to smuggle and traffic in narcotics within ECI, including marijuana and synthetic cannabinoids (otherwise known as “K2”), buprenorphine, commonly referred to as “Suboxone, and other contraband, including cell phones, pornographic videos, and tobacco, in order to expand their criminal operations. Inmates acted as both wholesalers and retailers of contraband and in the process made profits that far exceeded the profits that could be made by selling similar drugs on the street. For example, defendant inmates could purchase Suboxone strips for $3 each and sell them inside ECI for $50 each, or for a profit of more than 1000 percent.

 

According to the superseding indictments, although COs and other ECI employees were required to pass through security screening at the entrance to ECI, defendant COs were able to hide contraband on their persons. Further, COs took breaks during their shifts and returned to their cars to retrieve contraband. Once the COs had the smuggled contraband inside the facility, they delivered it to: inmates in their cells; clerks’ offices, which were private offices within each housing unit where an inmate clerk worked; the officers’ dining room where officers could interact with inmate servers and kitchen workers; and pre-arranged “stash” locations like staff bathrooms, storage closets, laundry rooms, and other places where contraband could be hidden and then later retrieved by inmates.

According to the superseding indictments, the defendants who were members of gangs sought and received contraband and payment from inmates who were not members of gangs in order to receive protection for their contraband trafficking activities.

Each defendant faces a maximum sentence of 20 years in prison for the racketeering conspiracy, and for conspiracy to distribute and possess with intent to distribute drugs.

 

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

 

The Acting U.S. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist the three-year investigation.

 

United States Attorney Schenning commended the FBI, U.S. Postal Inspection Service, Department of Public Safety and Correctional Services, the Baltimore Police Department, and Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

 

West Compound Indictment

 

Correctional Officers:

Rozlyn Bratten, age 32, of Snow Hill, Maryland; and

Kimberly Rayfield, age 38, of Crisfield, Maryland.

 

Inmates:

Ternell Lucas, age 43; and

Demario King, age 38.

 

Facilitators:

Leondrus Higgins, age 30, of Salisbury, Maryland; and

Chavia Savage, age 24, of Salisbury and Baltimore.

 

East Compound Indictment

 

Correctional Officers:

Sherima Bell, age 38, of Pocomoke, Maryland;

Jocelyn Byrd, age 40, of Salisbury;

Jessica Vennie, age 28, of Crowley, Texas; and

Robert Waters, age 33, of Salisbury.

 

Inmates:

Sean Smith, age 26; and

Alvin Williams, age 36.

 

Facilitators:

Eugene Bowen, age 52, of Salisbury, Maryland; and

Dameshia Vennie, age 35, of West Palm Beach, Florida.

 

 

 

 

FOR IMMEDIATE RELEASE                                                Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                          at (410) 209-4855

 

Greenbelt, Maryland –On September 11, 2017, Khyre Deangelo Wilson, age 24, of Temple Hills, Maryland, pleaded guilty in federal court to transport and receipt of firearms purchased outside his state of residency.

 

The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Special Agent in Charge Arron J. Graves of the Bureau of Alcohol, Tobacco, Firearms and Explosives – Washington Field Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.

 

According to Wilson’s plea agreement, on April 3, 2016, Wilson attempted to purchase three firearms from a federal firearm licensee (FFL) at a gun show in Fayetteville, North Carolina. The FFL refused to sell the firearms to Wilson when an employee noticed that Wilson indicated on an ATF Form 4473 that he was not purchasing the firearms for himself. The employee noticed that Wilson went to two other FFLs at the gun show to purchase firearms.

 

Two other FFLs at the Fayetteville, North Carolina gun show each sold Wilson two firearms. The firearms included a .45 caliber pistol, a 9mm pistol, a .40 caliber pistol, and a Zastava 7.62mm pistol. Wilson provided a North Carolina address on the ATF Form 4473 in connection with his purchases. The ATF investigated and determined that Wilson did not reside at the address he provided.

 

Wilson then transported the firearms he had purchased to the state of Maryland. Wilson was not, and never has been, a licensed importer, manufacturer, dealer, or collector of firearms. Wilson was aware that it was illegal to use a false address to purchase the firearms and to transport them to the state of Maryland.

 

Wilson faces a maximum sentence of five years in prison. Sentencing is scheduled for November 13, 2017 at 2:00 p.m.

 

Acting United States Attorney Stephen M. Schenning commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Joseph Baldwin, who is prosecuting this case.

 

FOR IMMEDIATE RELEASE                                                  Contact ELIZABETH MORSE

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

 

Baltimore, Maryland – On September 11, 2017, U.S. District Judge Richard D. Bennett sentenced Jason Wayne Hines, age 37, of Cumberland, Maryland, to 23 years in prison, followed by a lifetime of supervised release, for the production of child pornography. Judge Bennett ordered Hines to pay restitution of $10,400, as well as special assessments totaling $5,100.

 

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) in Baltimore; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg.

 

According to his plea agreement, on January 29 and February 1, 2016, during an undercover investigation, Maryland State Police officers downloaded two videos of minors engaged in sexually explicit conduct from Hines’ computer, which he was sharing over the internet. On May 3, 2016, a search warrant was executed at Hines’ residence. An on-scene forensic analysis of Hines’ laptop computer recovered images and videos depicting minors engaged in sexually explicit conduct. Hines was arrested on state criminal charges for distribution and possession of child pornography.

 

Forensic examination of Hines’ computers, storage media, and cell phone seized during the search revealed over 1,000 images and over 50 videos of child pornography. Hines’ internet search history also showed an interest in sexual activity with minors. Investigators recovered 23 images created between October 3, 2015 and February 28, 2016, and five videos from Hines’ smartphone. The five videos did not have create dates, but depicted Hines sexually abusing a prepubescent female as she was sleeping. The images recovered from the phone also document Hines’ sexual abuse of the child.

 

As part of his plea agreement, Hines 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).

 

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 HSI-Baltimore, Maryland State Police, and Allegany County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Judson T. Mihok and Sandra Wilkinson, who prosecuted the federal case.

 

 

FOR IMMEDIATE RELEASE                                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                                     at (410) 209-4855

 

Baltimore, Maryland – On September 8, 2017, Stanislav “Steven” Yelizarov, age 27, of Pikesville, Maryland, pleaded guilty in U.S. District Court to one count of Use, Carry and Discharge of a Firearm During and in Relation to a Crime of Violence Causing the Death of Another. The victim of the 2009 murder was Wayne Ruder.

 

The guilty plea 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 Kevin Davis of the Baltimore City Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police.

 

A summary of the facts that the government would prove beyond a reasonable doubt at trial noted that Yelizarov was a serial burglar of homes in Baltimore County. The victim, Wayne Ruder, owned a jewelry store on Reisterstown Road in Baltimore City. Ruder’s business bought and sold precious metals and stones, and engaged in business throughout Maryland, Washington D.C., Virginia and Pennsylvania. In March 2009, Yelizarov burglarized the home of an acquaintance and during the course of that burglary, stole a large diamond engagement ring, valued at more than $22,000. Yelizarov sold the diamond to Ruder for approximately $9,000 cash. Yelizarov later came to believe that the diamond was worth significantly more and that Ruder had cheated him.

 

In April 2009, Yelizarov burglarized the home of another acquaintance, and stole a number of firearms and accessories, including a Llama handgun that was equipped with a suppressor and had been converted to fire .22 caliber ammunition. Following the burglary, Yelizarov searched for and purchased .22 subsonic ammunition.

 

In addition, the government was prepared to prove that in early December 2009, Yelizarov told Ruder that he had people from New York who were looking to sell a large amount of gold. Yelizarov and Ruder communicated frequently over the next days and weeks regarding the transaction, which Ruder reported was going to involve over $30,000 worth of gold. On December 25, 2009, Ruder agreed to meet Yelizarov at his store the following day. On December 26, 2009, after a number of phone calls between Yelizarov and Ruder, Yelizarov drove to the store and went in the front door. Using the stolen Llama equipped with a suppressor and loaded with .22-caliber subsonic ammunition, Yelizarov shot Ruder at the store entrance, and then continued to shoot him as he fled to the back of the store. In total, Yelizarov shot Ruder 15 times, including 3 shots to his back and 10 shots to his head. After killing Ruder, Yelizarov took Ruder’s bank bag, which typically contained between $15,000 and $30,000 of cash.

 

Subsequent to the robbery and murder, Yelizarov dismantled and disposed of the Llama handgun in a quarry near Yelizarov’s residence.

 

Yelizarov faces a maximum sentence of life in prison. U.S. District Judge Marvin J. Garbis has scheduled sentencing for December 21, 2017 at 10 a.m.

 

Acting United States Attorney Stephen M. Schenning commended the FBI, Baltimore City Police and Baltimore County Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Aaron Zelinsky who assisted the investigation and U.S. Attorneys Paul Budlow and Daniel Gardner who are prosecuting the case.

 

 

 

 

FOR IMMEDIATE RELEASE                                                    Contact ELIZABETH MORSE

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

 

 

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Jose Ortiz Morales, age 55, of Hyattsville, Maryland today to 11 and a half months in prison for attempted unlawful procurement of naturalization charges.

 

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).

 

Accordingy to his plea agreement, in 1980, Morales joined the Guatemalan Army and became a member of a Special Forces military unit known as the Kaibiles. The Kaibiles were involved in serious human rights offenses during the time period in which Morales was a member. The military unit of approximately 20 Special Forces soldiers is alleged to have participated in the massacre of over 200 unarmed villagers in the small hamlet of Dos Erres, Guatemala. The massacre occurred on December 6, 1982, when the soldiers indiscriminately killed innocent men, women and over 100 children. Many of the women were raped by the soldiers before they were forced to walk at gun point to a well in the center of the village, where they were bludgeoned in the head with a hammer, and their bodies thrown into the well. Those villagers who did not die of the blow to their head were killed when a soldier fired a weapon and threw a grenade into the well. Morales is under indictment in Guatemala for his alleged participation in these war crimes.

 

In August 1988, Morales entered the United States by crossing the international border from Mexico into Texas illegally. He travelled to the Maryland, Virginia, and District of Columbia area, where he resided and legally worked for many years. He applied for and was granted Lawful Permanent Resident (LPR) status in 1990.

 

On July 13, 2006, Morales sought U.S. citizenship by submitting the N-400 naturalization application to the U.S. Citizenship and Naturalization Services (CIS). On the N-400 and during a CIS official interview, Morales falsely claimed under oath that he was not a part of any group reportable to CIS, when, in fact, he was a member of the Kaibiles and sought to conceal his involvement with that military unit. This false representation was material to the immigration authorities who were deciding Morales’ application for United States citizenship.

 

Morales pleaded guilty on May 25, 2017.

 

Acting United States Attorney Stephen M. Schenning commended HSI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case, and trial attorney Christine Duey, of the Department of Justice’s Human Rights and Special Prosecutions Section.