District of Maryland

 

JULY 3, 2017

FOR IMMEDIATE RELEASE                                                      Contact ELIZABETH MORSE

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

 

Greenbelt, Maryland – On June 27, 2017, U.S. District Judge George J. Hazel, sentenced Glenn K. Wilcott, age 55, of Gaithersburg, Maryland, to 5 years in prison, followed by 3 years of supervised release for aggravated identity theft and being a felon in possession of firearms and ammunition.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Richard Ingram of the Department of State, Diplomatic Security Service, Washington Field Office; Special Agent in Charge, Daniel L. Board of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Marshal Johnny Hughes of the United States Marshals Service; Special Agent Michael McGill of the Social Security Administration, Office of the Inspector General and the United States Citizenship and Immigration Services.

 

According to court documents, on or about April 12, 2014, Wilcott submitted via mail a U.S. Department of State passport renewal form to acquire a new passport in the name of Victim A because the original passport was set to expire on May 17, 2014. During the renewal process, passport adjudicators determined that there were several fraud indicators associated with the application, including a death report related to the Social Security number that Wilcott used in the application. This social security number belonged to Victim A, who died March 6, 2012.

 

According to his plea agreement, when law enforcement executed a search warrant on Wilcott’s residence, they recovered various firearms and ammunition including a .22 caliber pen gun. Wilcott had previously sustained a conviction for an offense punishable by more than one year of imprisonment, which made him ineligible to possess firearms and ammunition.

 

Acting United States Attorney Stephen M. Schenning commended the Department of State, Diplomatic Security Service, ATF, the Social Security Administration, the United States Marshal’s Office, and ICE. Mr. Schenning thanked Assistant U.S. Attorneys Jennifer Sykes and Thomas Windom who prosecuted the case.

 

June 30, 2017

FOR IMMEDIATE RELEASE                                                        Contact ELIZABETH MORSE

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

 

 

Greenbelt, Maryland – On Thursday, June, 29, 2017, U.S. District Judge Paula Xinis sentenced Justin Larson, age 30, of Gaithersburg, Maryland, to life in prison, for distribution of acetyl fentanyl, which resulted in death, as well as conspiracy to distribute narcotics, five counts of possession or attempted possession of a controlled substance and controlled substance analogue with intent to distribute, and one count of possession with intent to distribute and distribution of a controlled substance. Larson was convicted by a federal jury on January 25, 2017. The jury was not able to reach a verdict on a second count of distribution of acetyl fentanyl, resulting in death.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

 

According to the testimony at his three-week trial, from May 2014 through March 17, 2016, Larson conspired to distribute acetyl fentanyl, and furanyl fentanyl, a controlled substance analogue. The evidence showed that on May 9, 2014, Larson distributed acetyl fentanyl to an individual, resulting in the death of that individual.

 

Larson remains detained.

 

Acting United States Attorney Stephen M. Schenning praised HSI Baltimore, the FBI, U.S. Postal Inspection Service, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Schenning thanked Assistant United States Attorneys Kelly O’Connell Hayes and Erin Pulice, who prosecuted the case.

 

June 30, 2017

FOR IMMEDIATE RELEASE                                                              Contact ELIZABETH MORSE

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

 

 

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Steven B. Boyd, a/k/a “Gotti,” age 38, of Baltimore, to 16 years in prison, followed by 10 years of supervised release, for sex trafficking of a minor.

 

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

 

According to his plea agreement, an undercover enforcement operation conducted by Baltimore City Police officers during an investigation of sex trafficking of minors, identified Boyd as a pimp who caused two minor girls to engage in commercial sex acts for his own financial benefit. Boyd knew the two girls were under 18 years of age when he recruited them to work for him. During the investigation, five other women over the age of 18 were also identified as working for Boyd, including two women who traveled from other states to Maryland to work for Boyd.

 

According to his plea agreement, Boyd paid for hotel rooms for the women to engage in commercial sex acts. Forensic examination of Boyd’s phone, as well as information provided by the women and girls working for Boyd, showed that he also paid for online ads for the women and girls to engage in commercial sex acts. According to the girls and women working for him, Boyd took all the money they made from commercial sex acts. Boyd transported the girls and women on “outcalls,” taking to them to hotel rooms and residences to engage in prostitution, as well as transporting them to other states. Boyd provided the girls and women with telephones to communicate with him about their commercial sex activities.

 

Boyd remains detained.

 

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, the Baltimore City Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Zachary A. Myers and Rachel M. Yasser, who prosecuted the case.

 

 

 

 

June 28, 2017

FOR IMMEDIATE RELEASE                                                       Contact Bailey Drumm

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

 

DRUG COUNSELOR UNDER CONTRACT WITH U.S. PROBATION AND PRETRIAL SERVICES PLEADS GUILTY TO CONSPIRING TO OBSTRUCT JUSTICE

 

Licensed Drug Counselor Did Drugs with Federal Defendant, Helped him Obtain Drugs while in Jail, and Attempted to Conceal his Violations from Federal Judge

Baltimore, Maryland – A licensed drug counselor Jennifer Hamersky, a/k/a Jennifer Maroney a/k/a Jennifer Hurt, age 33, of Severn, Maryland, pled guilty to obstruction of justice and conspiring to conceal alleged violations of pretrial release by one of Hamersky’s clients who was a Federal pretrial defendant.

 

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; William F. Henry, Chief, U.S. Probation and Pretrial Services Office, District of Maryland; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.

 

According to the open plea agreement, Hamersky was a Clinical Professional Addictions Counselor, licensed by the State of Maryland’s Department of Health and Mental Hygiene and a contractor who provided services for United States Probation and Pretrial Service Office (“USPO”). Specifically, Hamersky worked with defendants in the United States District Court for the District of Maryland, including mental health and substance abuse counseling, and urinalysis testing.

 

Person A, who was on pretrial release under the supervision of USPO, met Hamersky in September 2015, when she conducted an initial substance abuse screening as part of his pretrial release supervision. Hamersky recommended and USPO concurred, that Person A attend individual and group counseling sessions and submit to random urinalysis testing..

 

Hamersky served as Person A’s pretrial release substance abuse and mental health counselor from September 2015 through February 2016, and again from August 2016 through February 2017, with a break due to Person A’s incarceration. Hamersky was responsible for communicating Person A’s compliance with pretrial release conditions regarding potential violations involving counseling and urinalysis testing to USPO.

 

Court documents show that Hamersky conspired with a co-conspirator, whose initials are A.S., who was a defendant on federal supervised release. The conspiracy involved obstruction of justice in an effort to conceal from USPO officers and U.S. Magistrate and District Court Judges, Person A’s violations of his conditions of release. The violations include use of narcotic drugs or other controlled substances; failure to appear for urinalysis testing; and failure to appear for counseling sessions.

 

Specifically, court documents show that Hamersky included false information and material omissions in Person A’s monthly treatment reports which were submitted to USPO, and that she provided false information to Person A’s attorney and USPO regarding Person A’s compliance with conditions of release. In November of 2016, Hamersky submitted to USPO Person A’s urinalysis testing log that Hamersky knew had the forged initials of the urinalysis collector on reports in order to make it appear that Person A had participated in urinalysis testing, when in fact, he had not. To facilitate these false submissions, both Hamersky and her co-conspirator A.S., communicated with Person A to have him sign and complete the required urinalysis testing log for submission to USPO.

 

According to the open plea, between October 2015 and through February 2017, Hamersky and her co-conspirator A.S. conspired to prevent the communication to a law enforcement officer or judge of the United States information relating to violations of Person A’s conditions of release. Hamersky also used narcotic drugs, including using Oxycodone, with Person A.

 

While Person A was incarcerated at the Chesapeake Detention Facility, Hamersky facilitated his obtaining narcotic drugs for his personal use, then sent a report to Person A’s attorney to be used in court, which she knew contained false representations.

 

On January 24, 2017, Hamersky discussed with her co-conspirator A.S. how to conceal from Person A’s USPO officer the fact that Person A had missed a urinalysis test. The Defendant then called Person A’s USPO and left a voice message, falsely indicating that Person A had not missed his urinalysis test.

 

Acting United States Attorney Stephen M. Schenning commended the Federal Bureau of Investigation, U.S. Probation and Pretrial Services Office, and Drug Enforcement Administration for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Rachel Miller Yasser, who prosecuted the case.

JUNE 28, 2017

FOR IMMEDIATE RELEASE                                          Contact Bailey Drumm

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

 

WOMAN SENTENCED TO 34 MONTHS IN PRISON FOR AGGRAVATED IDENTITY THEFT SCHEME

 

Used the Personal Information of Victims to Perpetrate a Fraud Scheme

 

 

Greenbelt, Maryland – On June 26, 2017, U.S. District Judge Deborah K. Chasanow sentenced Michelle Renee Marshall, 47, of Washington, D.C., to 34 months in prison followed by three years of supervised release for aggravated identity theft and wire fraud. Marshall was also ordered to pay $27,671.03 in restitution.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation Division, Washington, D.C. Field Office.

 

According to court documents, September 2013 and September 2014, Marshall represented to six different victims that she could assist them in preparing and filing federal and state tax returns. She then obtained the victims’ personally identifiable information, which she used to prepare and file their tax returns. However, the victims never received the requested tax refunds. Without authorization from the victims, Marshall instead directed tax refunds into bank accounts she controlled.

 

In total, Marshall intended to obtain $67,713 from the IRS and the states of Maryland and Virginia. Marshall did, in fact, obtain $27,671 through this scheme.

 

Acting United States Attorney Stephen M. Schenning thanked the Internal Revenue Service – Criminal Investigation Division. Mr. Schenning commended Assistant U.S. Attorneys Erin B. Pulice and Leah J. Bressack who prosecuted the case.

JUNE 27, 2017

FOR IMMEDIATE RELEASE                                               Contact ELIZABETH MORSE

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

 

 

Baltimore, Maryland – On June 27, 2017, U.S. District Judge Marvin J. Garbis sentenced Andrew Bennett, age 37, of Tampa, Florida to 30 months in prison, followed by 36 months of supervised release, for a wire fraud conspiracy and for paying illegal gratuities to a government official, in connection with the award of more than $53 million in federal government contracts. Judge Garbis also ordered Bennett to pay forfeiture and restitution in the amount of $500,000.00

 

Co-conspirator John Wilkerson, age 51, of Moultrie, Georgia was previously sentenced to five years in prison, followed by three years of supervised release. James T. Shank, who was separately charged and has pled guilty, was a Program Manager at the United States Navy’s Space and Naval Warfare (SPAWAR) Systems Center.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Commander of the Air Force Office of Special Investigations (OSI); Special Agent in Charge Robert Craig, Special Agent in Charge, Robert E. Craig Jr, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office; and U.S. Small Business Administration Acting Inspector General Mike Ware.

 

According to Bennett’s plea agreement, he was a program manager for Advanced C4 Solutions, or AC4S, from 2005 until 2011. AC4S was an information technology company headquartered in Tampa, Florida. In 2011, Bennett left AC4S and went to work for Co-conspirator Wilkerson at Superior Communications Solutions, Inc. (SCSI). According to co-conspirator Shank’s indictment, from August 28, 2006 until he retired on June 30, 2011, Shank was employed as a Program Manager at the United States Navy’s Space and Naval Warfare (SPAWAR) Systems Center. Shank worked with agencies within the Department of Defense to procure telecommunications equipment, software, and related services. According to his plea agreement, Wilkerson was a Department of Defense Account Manager for Iron Bow Technologies, LLC (Iron Bow), which provided IT consulting and other services to government and industry customers. Wilkerson was also part-owner and operated Superior Communications Solutions, Inc. (SCSI).

 

From September 2009 through August 2012 Bennett conspired with Wilkerson, to give them and the companies they worked for and/or owned an unfair competitive advantage in obtaining government contracts. Court documents state that Wilkerson offered, and Shank accepted, employment with SCSI while Shank was still a government employee and while he was taking official actions that benefited Wilkerson. In addition, Wilkerson paid Shank $86,000 in the year after Shank retired from government service, funneling the payment through two other companies in order to conceal the source of the funds.

 

According to Bennett’s plea agreement, Shank improperly shared information with Bennett and Wilkerson, and worked with them to structure the government contracts so as to give their companies an unfair advantage over other potential bidders.

 

For example, according to Bennett’s indictment, Bennett and Wilkerson developed a request for proposal (RFP) for DO27, a contract to supply labor services for an Air Force technology project, including for overall project management services, so that AC4S would win the contract. On June 10, 2010, DO27 was awarded to AC4S in the amount of $18,332,738.10. Wilkerson provided Bennett with a quote for labor for the installation of specific technology on behalf of SCSI that was less than the quote he had previously submitted on behalf of Iron Bow as their sales representative. After SCSI was selected as a subcontractor on DO27, it subcontracted with Iron Bow to provide most of the labor SCSI was supposed to provide under DO27 for the installation of the technology. Wilkerson was able to earn income from the work Iron Bow employees were doing by having SCSI act as a middleman and charging a mark-up on Iron Bow’s work. Bennett and Wilkerson then directed an SCSI employee to create false invoices supposedly documenting the hours SCSI employees spent working on DO27, which were submitted to AC4S and paid by the United States government. SCSI received $6,794,432.98 on DO27 out of the $18 million AC4S received for providing labor for the project.

 

In February 2011, Bennett left AC4S and went to work for Wilkerson at SCSI. According to the plea agreement, Bennett received a $500,000 bonus when he joined SCSI, which was paid for by profit Wilkerson had earned on the Air Force contracts.

 

By March 2011, the Air Force project was incomplete and there were numerous contract disputes related to the project. Shank was directed not to take any other action related to the project without the approval of a senior manager. Nevertheless, in April 2011, Shank accepted more than $3.7 million worth of invoices that benefited SCSI without informing the senior manager. In May, 2011, after Shank accepted employment with SCSI, but was still working for SPAWAR, he allegedly approved more than $1.1 million worth of invoices that benefitted SCSI and Wilkerson.

 

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

 

Acting United States Attorney Stephen M. Schenning thanked Air Force OSI, Defense Criminal Investigative Service, and the U.S. Small Business Administration Office of the Inspector General for their work in the investigation. Mr. Schenning commended Assistant U.S. Attorneys Leo J. Wise and Philip A. Selden, who are prosecuting the case.

 

JUNE 26, 2017

FOR IMMEDIATE RELEASE                               Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                at (410) 209-4854

 

 

Baltimore, Maryland – The United States Attorney’s Office will host the first One-Stop Reentry Fair at the War Memorial in Baltimore City on Wednesday, June 28, 2017 from 10 a.m. until 3 p.m. The fair will bring together non-profits, service providers and state and local government organizations from across Baltimore to assist returning citizens to connect with resources.

Returning citizens, individuals who have completed their sentences and have been released from prison, will have access to information on transitional housing, shelters, substance abuse and mental health programs, GED and college courses, job training and job placement programs, food, clothing and infant assistance, identification and legal support and information on Parole and Probation.

 

According to an Open Society Foundation study, every year, over 10, 000 people are released from state or federal prisons in Maryland and approximately sixty percvent of those individuals return to Baltimore City.

 

In coordination with federal, state and local agencies and community service providers, the U.S. Attorney’s Office supports reentry initiatives as means of reducing recidivism and keeping communities safe.

 

“The mission of the United States Attorney’s Office is public safety as well as preventing crime. We believe providing access to resources and services will aid in assisting those with a criminal records from reoffending,” noted Acting United States Attorney Stephen M. Schenning.

 

Additionally, as part of a federal reentry initiative, the Maryland U.S. Attorney’s Office has published a list of governmental and private-sector agencies throughout Maryland that are available to assist people recently released from state and federal jails and prisons, announced Mr. Schenning. The resource list can be accessed through a link on the U.S. Attorney’s Office home page, at www.justice.gov/usao/md.

 

 

 

 

 

JUNE 26, 2017

FOR IMMEDIATE RELEASE                                                 Contact ELIZABETH MORSE

www.justice.gov/usao/md                                               at (410) 209-4854

 

 

 

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Wendy Collins, age 46, of Woodbine, Maryland, to 51 months in prison followed by three years of supervised release for wire fraud, in connection with a scheme in which she stole more than $4.5 million from her employer. Judge Garbis also ordered Collins to pay forfeiture and restitution in the amount of $4,273,749.83.

 

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 Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division.

 

According to her plea agreement and court documents, Collins worked at a national construction company (the “Company”) with projects throughout the United States. In 2010, Collins was promoted to Vice President of Administration, and was responsible for managing the Company’s finances, including payroll, accounting, petty cash, and health reimbursement account (HRA,) and overseeing payments to the Company’s subcontractors and employees. Collins also had access to the Company’s bank and credit card accounts, including multiple American Express credit card accounts.

 

Collins admitted that from April 2012 through September 2016, she stole money from the Company in several different ways. Specifically, Collins caused unauthorized withdrawals from the Company’s petty cash account and HRA account transfers to her personal accounts, totaling at least $367,435.52; used $3,814,578.17 in Company’s funds to pay the credit card bills for herself, family members and others; and caused unauthorized increases to her company bonus checks, totaling at least $164,970. In addition, Collins approved invoices related to payments for construction work to be completed at her residence with Company funds, and signed a $25,000 check from the Company’s funds to be paid to a family member’s business.

 

In some instances, in order to facilitate and conceal the unauthorized credit card charges, Collins created fraudulent expenses and accounting entries in the Company’s financial ledgers and internal credit card reports, which she then paid with the Company’s funds. To further her scheme, Collins “linked” the personal credit card accounts held by her, her family, and her friends, to the Company’s bank accounts so that automatic payments would be made by the Company’s bank account toward the balances owed on Collins’ personal credit card accounts and those associated with her family and friends. Collins, her family members, and her friends charged luxury items that were paid for with Company funds, including: more than $90,000 at Del Frisco’s Steak House; more than $90,000 at Ethan Allen, Williams Sonoma and Pottery Barn; more than $55,000 for Washington Redskins tickets; more than $14,500 at a Napa, California Vineyard as well as $1,400 for beauty products at Estee Lauder and Kiehl’s. Also purchased with the credit cards were: a Porsche 911 Carrera, a Porsche Macan GTS, a Mercedes-Benz G550, a Dodge Ram Truck, a Mazda CX-3, a Mazda MX-5 race car, as well as a Haulmark Trailer, using the Company’s funds.

 

Further, Collins admitted that she forged the signature of her longtime employer, the President of the Company, multiple times from 2014 through 2016, in order to conceal and complete the unauthorized increases to her bonus checks.

 

Acting United States Attorney Stephen M. Schenning commended the FBI and the U.S. Postal Inspection Service for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Evan T. Shea, who prosecuted the case.

 

 

 

 

JUNE 26, 2017

FOR IMMEDIATE RELEASE                     Contact ELIZABETH MORSE

www.justice.gov/usao/md                     at (410) 209-4854

 

Baltimore, Maryland – On Friday June 23, 2017, U.S. District Judge George L. Russell, III sentenced Alfred Musa, a/k/a “Gucci,” age 29, of Bladensburg, Maryland to 120 months in prison, followed by three years of supervised release for conspiracy to commit access device fraud, identification document fraud, and aggravated identity theft. Judge Russell also ordered Musa to pay $109,297.04 in restitution.

 

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); Superintendent of the Maryland State Police, Chief William M. Pallozzi; and Chief J. Thomas Manger of the Montgomery County Police Department.

 

According to his plea agreement, from October 2014 through August 2015, Musa conspired with others to obtain gift cards, cellular telephones, and goods from retailers by fraudulently obtaining access devices and driver’s licenses in the names, addresses, dates of birth, social security numbers, and other means of identification of real persons. Musa and his co-defendants used the means of identification of at least 90 real people and obtained over $250,000 in fraud proceeds.

 

Musa obtained personal identifying information of real people and used that information to obtain fraudulent driver’s licenses bearing the victim’s information and a co-conspirator’s photograph. Those driver’s licenses were used to open lines of credit at various retail stores, including Lowes Home Improvement, Nordstrom, and others across Maryland, Virginia, the District of Columbia and Delaware. Once the lines of credit were opened, Musa and the others used them to purchase gift cards as well as high end designer goods. The fraudulent driver’s licenses were also used at Apple stores to open lines of credit and purchase cellular telephones that were resold to a third party for a profit.

 

In November 2014 a search warranted was executed at Musa’s residence in Montgomery County, Maryland. During the execution of the search warrant, Musa hid in a trash chute to avoid detection. Fraud documents, including screen shots from Bank of America’s internal computer systems containing personal identifying information of several victims were recovered. A box of ammunition with Musa’s fingerprints was also recovered. Musa is prohibited from possessing firearms or ammunition based on a prior felony conviction.

 

In March 2015, Musa and co-defendant Abubakah Kromah used the identity of a law enforcement officer to open a line of credit at a Lowes in Glen Burnie, Maryland, then used that line of credit to purchase over $11,000 in gift cards at various Lowes stores. On March 26, 2015, Musa and Kromah were apprehended outside the Christiana Mall in Delaware after attempting to open new lines of credit in the law enforcement officer’s name at Nordstrom and Macy’s. When Musa was arrested, a credit application in the officer’s name as well as receipts of other fraud purchases were recovered from his vehicle.

 

Abubakah Chiko Kromah was also convicted of conspiracy to commit access device fraud and aggravated identity theft. On February 9, 2017, he was sentenced to 60 months imprisonment.

 

Co-defendant Terri Ashely Hooks was convicted of conspiracy to commit access device fraud and aggravated identity theft related to this scheme. On April 27, 2017, she was sentenced to 18 months imprisonment.

 

Co-defendant Jasmine Young was convicted of Bank Fraud and Aggravated Identity Theft related to this scheme. On May 10, 2017, she was sentenced to 66 months imprisonment.

 

Co-defendant Olayinka Amidatu Bangura, a/k/a “Amida,” was convicted of conspiracy to commit access device fraud and aggravated identity theft related to this scheme. On May 17, 2017, she was sentenced to 12 months and one day imprisonment.

 

Acting United States Attorney Stephen M. Schenning commended HSI Baltimore, the Maryland State Police, and the Montgomery County Police Department for their work in the investigation. Mr. Schenning also thanked Assistant U.S. Attorneys Lauren Perry and Sandra Wilkinson, who prosecuted the case.

 

 

 

FOR IMMEDIATE RELEASE                              Contact Elizabeth Morse

www.justice.gov/usao/md                               at (410) 209-4877

 

 

Baltimore, Maryland – On June 21, 2017, Greg Ramsey, 55, of Baltimore, Maryland, pled guilty to use of fire to commit wire fraud, malicious destruction of property by fire, and attempted witness tampering. Ramsey’s plea came on the third day of trial.

 

The conviction 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, United States Secret Service Special Agent in Charge Christopher Caruso, and Department of Homeland Security Special Agent in Charge Andre Watson.

 

According to his plea agreement, Ramsey and Teryaeva-Reed set three separate residences between October 2012 and August 2013, two in Baltimore, and one in Weatherly, PA. The fires 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, 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.

 

Ramsey’s sentencing hearing is scheduled for September 15, 2017, before the Honorable George L. Russell III.

 

Coconspirator Julia Teryaeva-Reed, 33, a citizen of Ukraine, previously pled guilty to use of fire to commit a federal felony, wire fraud, and malicious destruction of real property by fire. Coconspirator Tyesha Roberts, 38, of Baltimore, previously pled guilty to Attempted Obstruction of an Official Proceeding. Both are pending sentencing.

 

Acting United States Attorney Stephen M. Schenning commended the DCIS 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) 209-4877

 

Greenbelt, Maryland – On June 22, 2017, an MS-13 gang member was sentenced to 160 months in prison and three years of supervised release for conspiring and attempting to murder on behalf of the gang.

 

Attorney General Jeff Sessions, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephen Schenning of the District of Maryland, Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James Tom Kemp of the Greenbelt Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.

 

“Transnational criminal organizations like MS-13 cannot continue to devastate our communities and our children. They must be stopped. Today’s sentencing sends a warning to all gang and cartel members: we are coming for you,” said Attorney General Sessions. “This outcome shows how strong cooperation between federal, state and local law enforcement can help us win the fight against violent gangs. I applaud the efforts of the fine Assistant U.S. Attorneys and all the dedicated men and women who brought this violent criminal to justice.”

 

Celvin Eulice Ramos-Meija, aka “Cadejo,” 21, of Columbia, Maryland, was sentenced by U.S. District Judge Peter J. Messitte of the District of Maryland. Ramos-Mejia previously pleaded guilty to conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering.

 

MS-13 is an 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 U.S., operate throughout the U.S., including in Prince George’s County, Montgomery County, and Frederick County, Maryland. Members engage in racketeering activity including murder, extortion, robberies, obstruction of justice and other crimes. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.

 

According to his plea agreement, Ramos-Mejia admitted that for the purpose of maintaining and increasing his position in MS-13, he conspired with other MS-13 members to murder a victim that he and his co-conspirators had identified as a “chavala.”

 

Specifically, the Ramos-Mejia admitted that on June 6, 2016, he and other members and associates of MS-13 approached the victim in Greenbelt, Maryland. Ramos-Mejia admitted that he made an MS-13 sign in the face of the victim, and that he and his co-conspirators then began to attack the victim. According to the plea agreement, the victim survived the attack, but sustained multiple stab wounds and injuries, including lacerations to his abdomen, liver and diaphragm. The victim was hospitalized for 10 days as a result of the attack.

 

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

 

 

June 23, 2017

FOR IMMEDIATE RELEASE

www.justice.gov/usao/md

Contact ELIZABETH MORSE

(410) 209-4885

 

Greenbelt, Maryland – On June 23, 2017, U.S. District Judge George J. Hazel sentenced Hussain Abdullah, age 39 of Forestville, Maryland, to 60 months in prison, followed by 3 years supervised release, for conspiracy to commit wire fraud, aggravated identity theft, and being a felon in possession of a firearm, related to a scheme to use victims’ stolen identity information to obtain credit. The conspirators used the fraudulent credit cards to obtain money and merchandise. In addition, Abdullah was ordered to pay restitution in the amount of $225,588.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Brian J. Ebert of the United States Secret Service, Washington, D.C. Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Hank Stawinski of the Prince George’s County Police Department.

 

According to his plea agreement, Abdullah obtained and helped obtain the personal identifying information (PII) of others, without their knowledge or consent. From October 2014 through July 2016, Abdullah used the victim’s stolen personal information to create fake driver’s licenses in the names of the victims. As part of the conspiracy, Abdullah provided over 30 fake driver’s licenses to co-defendants Shazad Khan, Patricia Lynn Hiter, James Edward Foster, and others, and directed them to use the victims’ personal information to open instant credit cards in the victims’ names. Khan, Hiter, Foster, Shivers, and others used the fraudulent driver’s licenses to apply for credit at retail stores, and used the credit cards they obtained to purchase merchandise, including electronics and jewelry, and gift cards.

 

On September 30, 2016, Abdullah was arrested in Philadelphia, Pennsylvania, and law enforcement seized a backpack and suitcase belonging to Abdullah. Inside the suitcase law enforcement recovered a .45/.410 caliber handgun, which Abdullah had transported to Pennsylvania from Maryland a few days earlier. Abdullah was prohibited from possessing a firearm or ammunition due to a previous felony conviction.

 

Investigation showed that the handgun had previously been reported stolen during a residential robbery in Virginia. On October 1, 2016, law enforcement executed a search at Abdullah’s residence in Baltimore. During the search, law enforcement recovered a thumb drive containing approximately 799 documents bearing suspected victim names, including credit reporting information relating to those victims, and approximately 187 identification card templates bearing the photographs of 36 different suspects. A search of Abdullah’s suitcase recovered blank identification card stocks containing Virginia, Maryland, and Washington, D.C. holograms. Abdullah’s fingerprints were found on the card stock. Finally, law enforcement also recovered a phone with additional victim names, and a laptop computer containing the names of 32 victims.

 

The total loss to the card issuers was over $225,000, and the names of at least 65 victims – most of them Maryland residents - were used at retail stores without their permission. In addition, law enforcement has identified approximately 1,000 suspected victims based on their investigation of this scheme.

 

James Edward Foster, age 61, of Woodbridge, Virginia, previously plead guilty to the wire fraud conspiracy and aggravated identity theft and was sentenced to 16 months in prison and ordered to pay restitution in the amount of $100,180.44. Patricia Lynn Hiter, age 51, of Lawrenceville, Georgia also plead guilty to the wire fraud conspiracy and aggravated identity theft and was sentenced to 16 months in prison and ordered to pay restitution in the amount of $51,454.44.

 

Bland Shivers, age 50, of New Bern, North Carolina, previously plead guilty to the wire fraud conspiracy and aggravated identity theft and was sentenced to 16 months in prison and ordered to pay restitution in the amount of $18, 984.92.

 

Shazad Khan, age 56, of Baltimore, Maryland also has plead guilty and will be sentenced July 31, 2017. He faces a maximum sentence of 30 years in prison for wire fraud conspiracy, and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft.

 

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 sentencing 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’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 U.S. Secret Service National Capitol Region Multi-Agency Task Force, the Montgomery County Police Department and Prince George’s County Police Department for their investigation. Mr. Schenning thanked Assistant U.S. Attorneys Arun G. Rao who prosecuted the case.

 

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

Greenbelt, Maryland – A federal jury convicted Ana Maritza Gomez, age 44, of Hyattsville, Maryland, today on one count of conspiracy to commit mail and wire fraud and five counts of mail fraud arising from a scheme to defraud victims through a foreclosure rescue fraud scam.

Two co-defendants, Rene De Jesus De Leon, age 48, and Pedrina Rodriguez Bonilla, age 38, 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 conviction 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 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, as part of the conspirators program. 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 Ana Maritza Gomez is scheduled for October 12, 2017 , at 10:00 a.m. Sentencing for Rene De Leon is scheduled for September 7, 2017, at 1:00 p.m., and Pedrina Bonilla is scheduled for sentencing on September 7, 2017, at 10:00 a.m.

Each defendant faces a maximum sentence of 20 years in prison, 3 years of supervised release, and a $250,000 fine for each count.

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, U.S. Postal Inspection Service 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 are prosecuted the case.

 

 

June 23, 2017

FOR IMMEDIATE RELEASE

www.justice.gov/usao/md

Contact ELIZABETH MORSE

at (410) 209-4885

 

Baltimore, Maryland – Five men pleaded guilty this week, 4 on Baltimore City gun cases and one Anne Arundel County gun case. The guilty pleas were announced today by Acting United States Attorney Stephen M. Schenning.

 

The United States Attorney’s Office continues in its efforts to address the gun violence plaguing Baltimore area by using Federal Statutes prohibiting felons from possessing firearms.

 

Five defendants, listed below, pleaded guilty in 5 separate cases in United States District Court this week.

• Robert Butler, age 43, of Baltimore, Maryland

• Ryan King, age 25, of Baltimore, Maryland

• Demonte T. Jones, age 25, of Brooklyn, Maryland

• Calvin Thompson, age 38, of Baltimore, Maryland

• Craig Tucker, age 30, of Baltimore, Maryland

   

Acting United States Attorney Stephen M. Schenning said that the United States Attorney’s Office, through its Exile Program, will continue to pursue felons with guns who constitute a clear and present danger to the safety and welfare of the citizens of Baltimore. These guilty pleas reflect the ongoing commitment of the United States Attorney’s Office to address violent crime in the City of Baltimore and the District of Maryland.

 

Sentence proceedings for the five are pending. All five defendants continue to be detained.

 

Today, an MS-13 gang member was sentenced to 160 months in prison and three years of supervised release for conspiring and attempting to murder on behalf of the gang.       

Attorney General Jeff Sessions, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephen Schenning of the District of Maryland, Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James Tom Kemp of the Greenbelt Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.

“Transnational criminal organizations like MS-13 cannot continue to devastate our communities and our children. They must be stopped. Today’s sentencing sends a warning to all gang and cartel members: we are coming for you,” said Attorney General Sessions. “This outcome shows how strong cooperation between federal, state and local law enforcement can help us win the fight against violent gangs. I applaud the efforts of the fine Assistant U.S. Attorneys and all the dedicated men and women who brought this violent criminal to justice.”

Celvin Eulice Ramos-Meija, aka “Cadejo,” 21, of Columbia, Maryland, was sentenced by U.S. District Judge Peter J. Messitte of the District of Maryland. Ramos-Mejia previously pleaded guilty to conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering.

MS-13 is an 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 U.S., operate throughout the U.S., including in Prince George’s County, Montgomery County, and Frederick County, Maryland. Members engage in racketeering activity including murder, extortion, robberies, obstruction of justice and other crimes. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.

According to his plea agreement, Ramos-Mejia admitted that for the purpose of maintaining and increasing his position in MS-13, he conspired with other MS-13 members to murder a victim that he and his co-conspirators had identified as a “chavala.”

Specifically, the Ramos-Mejia admitted that on June 6, 2016, he and other members and associates of MS-13 approached the victim in Greenbelt, Maryland. Ramos-Mejia admitted that he made an MS-13 sign in the face of the victim, and that he and his co-conspirators then began to attack the victim. According to the plea agreement, the victim survived the attack, but sustained multiple stab wounds and injuries, including lacerations to his abdomen, liver and diaphragm. The victim was hospitalized for 10 days as a result of the attack.

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

June 19, 2017

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

 

Greenbelt, Maryland – On June 19, 2017, U.S. District Judge Paul W. Grimm sentenced Clarence Henry Andrews, age 28, of Silver Spring, Maryland, to 25 years in prison, followed by lifetime supervised release, for production of child pornography.

 

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; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

 

Andrews is a registered sex offender as a result of a 2011 conviction in Prince George’s County Circuit Court for fourth degree sex offense and second degree assault, in connection with his abuse of a nine-year-old boy in the bathroom of a church located in Laurel, Maryland.

 

According to his plea agreement, in March 2015, Andrews communicated with an 11-year-old male residing in Georgia, via a video game system, Skype, FaceTime, text messages, and telephone. During the course of the communications, Andrews promised to provide the male minor with Advanced Warfare, a video game, in exchange for sexually explicit images and videos of the victim. At times, Andrews invoked religion in order to persuade the minor to produce and share sexually explicit images and videos. Andrews admitted that between approximately 2013 and April 2015, Andrews – using similar means and pattern of conduct – attempted to coerce at least eight additional victims aged 16 and younger to produce images and videos of sexually explicit conduct.

 

In addition, Andrews admitted that between April 2013 and October 2014, Andrews befriended, through church, a family with an eight-to-nine-year-old female and a seven-to-eight-year-old male, residing in Maryland. Andrews visited the family’s home on several occasions. On one occasion Andrews took the female victim to a downstairs bathroom in the home, told her he would give her cash if she pulled down her pants, and touched and photographed the child’s buttocks. On other occasions while visiting the family, Andrews took the male victim to the downstairs bathroom, engaged in sexual conduct and photographed the child’s buttocks. In January 2017, Andrews was sentenced to a total of ten years imprisonment in Montgomery County Circuit Court for this conduct.

 

Also as part of his plea agreement, Andrews will be required to continue to 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 the FBI, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation, and thanked the Georgia Bureau of Investigation and the Butts County, Georgia, District Attorney’s Office for their assistance. Mr. Schenning thanked Assistant U.S. Attorneys Nicolas A. Mitchell and Menaka S. Kalaskar, who are prosecuting the federal case.

 

 

 

 

 

June 16, 2017

FOR IMMEDIATE RELEASE www.justice.gov/usao/md

Contact Elizabeth Morse at (410) 209-4885

 

Greenbelt, Maryland – A federal jury convicted defendant Olusola Olla, 50, of Greensboro, NC, on June 16, 2017, for conspiracy to commit money laundering and structuring financial transactions arising from a scheme to defraud vulnerable victims of millions of dollars. The following 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;

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

Babtunde Emmanuel Popoola, a/k/a “Emmanuel Popoola” and “Tunde Popoola, age 34, of Bowie, Maryland; his sister,

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

Adeyinka Olubunmi Awolaja, Jr., a/k/a “Yinka O. Awolaja, Jr.,” age 34, formerly of New Carrolltown, Maryland; and

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

 

The conviction 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 evidence presented at the 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 the defendants as a result of the false stories and promises, either by depositing money directly into drop accounts controlled by the defendants, or by checks sent to them. Payments from victims ranged from $1,720 to $50,000.

 

Olla 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.

 

Olla faces a maximum sentence of 20 years in prison for conspiring to commit money laundering and a maximum of 5 years in prison for structuring financial transactions. Sentencing has not yet been scheduled for Olla.

 

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 and thanked Assistant U.S. Attorneys Thomas P. Windom and Ray D. McKenzie, who are prosecuting the case.

 

 

FOR IMMEDIATE RELEASE                                                          CONTACT: Elizabeth Morse

Friday, June 16, 2017                                                                                  410-209-4885

www.justice.gov/usao-md

 

WASHINGTON – Sujit Raman of the U.S. Attorney’s Office in the District of Maryland was one of 179 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 33rd Director’s Awards Ceremony today in Washington D.C.

 

The District of Maryland was one of 35 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

 

In his prepared remarks, Deputy Attorney General Rosenstein told the awardees, “These 179 award recipients embody the best of the Department of Justice.… Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded. ”

Sujit Raman was recognized for his exceptional contributions to the briefing and argument of appellate cases and for his outstanding leadership in managing the appellate practice of the United States Attorney’s Office for the District of Maryland. Mr. Raman has played a pivotal role in developing and persuasively advocating the government’s positions on cutting-edge Fourth Amendment issues at the intersection of privacy, technology, and national security.

 

Acting United States Attorney Stephen M. Schenning noted “As a counselor to his colleagues and as an advocate in court, Mr. Raman is trusted for the quality of his advice, the integrity of his positions, and the exceptional and understated manner in which he represents the interests of the United States.”

 

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

 

 

FOR IMMEDIATE RELEASE www.justice.gov/usao/md

 

Contact Elizabeth Morse

at (410) 209-4885

 

Greenbelt, Maryland – Antonin DeHays, age 32, of College Park, Maryland, a historian, was charged by federal criminal complaint today with theft of government records from the National Archives and Records Administration (NARA).

The complaint was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Assistant Inspector General for Investigations Jason Metrick of the National Archives and Records Administration - Office of Inspector General.

Archivist of the United States David Ferriero stated, “The theft of our history should anger any citizen, but as a veteran I am shocked at allegations that a historian would show such disregard for records and artifacts documenting those captured or killed in World War II. Although we have increased our security measures in recent years, this case highlights the constant threat our records and artifacts face and why the security of the holdings of the National Archives is my highest priority.”

According to the affidavit filed in support of the complaint, between in or about October 2015 and on or about June 9, 2017, DeHays, a historian, repeatedly visited the National Archives at College Park, Maryland, and stole dog tags and other documents belonging to U.S. servicemen whose planes had crashed during World War II. DeHays sold the stolen dog tags on eBay. In addition, on at least one occasion, DeHays gave a stolen dog tag assigned to a Tuskegee Airman to a museum in Virginia, in exchange for an opportunity to sit inside a Spitfire airplane.

On June 9, 2017, investigators executed a federal search warrant at DeHays’s residence and seized six dog tags and other documents that had been stolen from National Archives at College Park.

If convicted, DeHays faces a maximum sentence of ten years in prison. An initial appearance was held for DeHays in U.S. District Court in Greenbelt on June 13, 2017.

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.

NARA Inspector General James Springs thanked all of the federal employees involved in this investigation, stating “Thefts from the Archives are thefts of history. We will work tirelessly to find those who would try to steal any record from the American people.”

Acting United States Attorney Stephen M. Schenning commended NARA – Office of Inspector General for their work in the investigation. Mr. Schenning also thanked Assistant United States Attorneys Nicolas A. Mitchell and Arun G. Rao, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Edward Tillinghast, age 47, of Chesapeake City, Maryland, today for production of child pornography.

 

The sentencing 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; and Cecil County State’s Attorney Steven Trostle.

 

According to his plea agreement, on May 17, 2016 Maryland State Police, Homeland Security Investigations (HSI) and the Elkton Police Department, executed a search warrant for the Defendant’s residence. The agents recovered several electronic devices. Tillinghast admitted he had viewed child pornography using his computers and had used peer-to-peer file sharing programs to obtain the child pornography. The total number of relevant images recovered is at least 600. The defendant also admitted to sexually abusing a minor victim over the past year. Images recovered from at least one of the defendant’s electronic devices showed that he had abused the minor victim starting when the minor victim was eleven years old.

 

As part of his plea agreement, Tillinghast 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 Homeland Security Investigations, the Maryland State Police and the Cecil County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Ayn Ducao, who prosecuted the federal case.

Gang Members Allegedly Committed Five Murders, Six Attempted Murders, Assaults, Abduction, Witness Tampering, And Drug Distribution Resulting in Overdoses

 

Baltimore, Maryland – A federal grand jury returned a second superseding indictment on June 1, 2017, charging two additional defendants with conspiracy to participate in a racketeering enterprise known as Murdaland Mafia Piru (MMP) and conspiracy to distribute controlled substances. The indictment also adds new charges against six of the defendants charged in the previous indictment, including murder charges against the gang’s alleged leader, Dante Bailey, a/k/a Gutta, and Dontray Johnson, a/k/a Gambino.

 

One of the defendants newly charged in the case is Sydni Frazier, a/k/a “Sid,” a/k/a “Perry,” age 25, of Baltimore, Maryland. The name of the second defendant remains under seal while law enforcement officers work on bringing the defendant into custody.

 

This brings to 26 the total number of alleged MMP gang members and associates charged in the case. Ten of the 24 defendants in the previous indictment have pleaded guilty to their participation in the racketeering conspiracy. Fourteen of the 24 remain in the second superseding indictment.

 

The second superseding 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; Commissioner Kevin Davis of the Baltimore Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.

 

According to the indictment, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that for many years controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County. MMP was modeled after the Italian Mafia. Members and associates of MMP operated street-level drug distribution “shops” in various locations in Baltimore City and distributed heroin, cocaine, crack cocaine, fentanyl, and marijuana, among other controlled substances. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from western Maryland and neighboring states. MMP members were required to pay dues to the gang consisting of a portion of the proceeds of their criminal activities, and they were subject to reprisal—and sometimes murder—for failing to do so. Non-members who wished to sell drugs in MMP’s territories were forced to pay a “tax” or were targeted for violence by MMP members. MMP members enhance their status within the gang by carrying out acts of violence against rivals; for instance, members can earn a “lightning bolt” tattoo for “killing for the Mob.”

 

The 32 count indictment alleges that from at least 2011 through 2017, the defendants were members and associates of MMP who engaged in criminal activities in furtherance of the gang, including five murders, six attempted murders, assaults, abduction, witness tampering, and drug distribution resulting in nonfatal overdoses.

 

For instance, the indictment alleges that on May 30, 2015, Shakeen Davis attempted to murder two victims in the gang’s territory in Northwest Baltimore by firing at least nine rounds at them with a 5.56x45mm caliber rifle. One victim suffered two graze wounds to his back, and both victims suffered cuts to their arms and hands from broken glass.

 

The indictment further alleges that on September 29, 2015, Dontray Johnson murdered an MMP member because he refused to pay gang dues Johnson was attempting to collect for Dante Bailey and his wife Tiffany Bailey. Dante Bailey approved the murder afterward in a recorded conversation, telling Johnson to continue enforcing the dues system even if it meant killing more people.

 

According to the indictment, on April 28, 2016, Dante Bailey and Jamal Lockley armed themselves and went looking to retaliate against members of a rival drug organization they believed were responsible for killing an MMP member. Bailey and Lockley drove to the rival drug organization’s territory, where they observed a victim who they suspected—wrongly—had been involved in the MMP member’s murder. Bailey shot the victim in the head, killing him. Lockley was the getaway driver.

 

The indictment further alleges that in August 2016, Dante Bailey directed the murder of a victim based on a belief that he was cooperating with law enforcement. On August 10, 2016, Sydni Frazier and one or more co-conspirators abducted, bound, and murdered the victim, and then attempted to set his body on fire. Later that day, Frazier fled from police and discarded the two murder weapons.

 

In addition, the indictment alleges that on January 8, 2017, Delante Lee attempted to murder a victim 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.

 

The two new defendants face a maximum sentence of life in prison for the racketeering conspiracy, as well as a mandatory minimum of 10 years and a maximum of life in prison for the drug conspiracy. Dante Bailey and Dontray Johnson face a mandatory minimum sentence of life in prison and the possibility of the death penalty for new charges of murder in aid of racketeering. Dante Bailey, Dontray Johnson, Corloyd Anderson, Shakeen Davis, Delante Lee, and Sydni Frazier also face new gun charges. Ayinde Deleon, Shakeen Davis, and Sydni Frazier also face new drug distribution charges.

 

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

 

The following 14 defendants were charged in the superseding indictment unsealed on September 27, 2016, and charges remain pending against them in the second superseding indictment:

Dante Bailey, a/k/a “Gutta,” “Almighty,” and “Wolf,” age 37, of Windsor Mill, Maryland; Dontray Johnson, a/k/a “Gambino,” “Bino,” and “Tray,” age 31, of Windsor Mill; Adrian Jamal Spence, a/k/a “Spittle,” “SP,” and “AJ,” age 29, of Baltimore; Randy Banks, a/k/a “Dirt,” age 38, of Baltimore; Ayinde Deleon, a/k/a “Murda,” and “Yin,” age 31, of Baltimore; Jamal Lockley, a/k/a “T-Roy,” and “Droid,” age 37, of Baltimore; Jacob Bowling, a/k/a “Jakey,” “Ghost,” and “Fred,” age 30, of Gwynn Oak, Maryland; Corloyd Anderson, a/k/a “Bo,” age 33, of Owings Mills, Maryland; Devon Dent, a/k/a “Tech,” age 26, of Gwynn Oak; Tiffany Bailey, a/k/a “Tiff,” age 31, of Windsor Mill; Takuma Tate, a/k/a “Oop,” and “Ook,” age 37, of Baltimore; Maurice Pollock, a/k/a “Reese,” age 22, of Baltimore; Shakeen Davis, a/k/a “Creams,” age 22, of Baltimore; Delante Lee, a/k/a “Tay Tay,” age 21, of Baltimore; and

The following 10 defendants were charged in the previous indictment and have pleaded guilty to their participation in the racketeering conspiracy:

 

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

Acting United States Attorney Stephen M. Schenning commended the ATF, Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Schenning thanked Assistant United States Attorneys Christina A. Hoffman, Lauren E. Perry, and Jason D. Medinger, who are prosecuting the case.

Used Cards Re-encoded with Stolen Credit/Debit Card Numbers to Buy Merchandise at Army and Air Force Exchange Service Stores and Elsewhere

 

Greenbelt, Maryland – On June 1, 2017, a federal jury found James Stewart, age 27, of District Heights, Maryland guilty of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The jury also found Vincent Grant, age 28, of Laurel, Maryland guilty of conspiracy to commit access device fraud and aggravated identity theft.

 

The convictions were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office (DCIS); and Special Agent in Charge Jeffrey Thorpe of the DCIS - Cyber Field Office.

 

According to evidence presented to the jury, from July 2014 to May 2015 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.

 

Coconspirators Derrick Shelton and Quentin Stewart previously pled guilty to conspiracy to commit wire fraud and aggravated identity theft. Coconspirator Jamal Moody pled 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.

 

Shelton, James Stewart, and Quentin Stewart face a maximum sentence of 20 years in prison for conspiring to commit wire fraud, and wire fraud. Grant and Moody face a maximum sentence of seven and half years in prison for conspiring to commit access device fraud. All five defendants also face a mandatory minimum of two years in prison for aggravated identity theft, consecutive to any other sentence imposed.

 

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.

41 kilograms of suspected heroin seized

 

Baltimore, Maryland – A federal criminal complaint was filed on June 1, 2017 charging three defendants with intent to distribute narcotics and conspiracy to distribute narcotics.

 

The criminal complaint was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.

 

The criminal complaint charges the following defendants:

 

Perry Brown, age 53, of Baltimore, Maryland;

Juan Olvera Morales, age 34, of St. Anthony, Idaho; and

Alfredo Manuel Nevares, age 41, of West Valley, Utah

 

According to the affidavit filed in support of the criminal complaint, beginning in October 2015, federal and state law enforcement began investigating drug trafficking activities of various persons. On May 30, 2017, investigators received confidential information concerning a possible drug transaction. Based on that intelligence, law enforcement began monitoring Brown. On May 31, 2017, at a truck stop in Jessup, law enforcement observed Brown, Morales, and Nevares, transfer multiple bags from a truck to a van. On the same day, 41 kilograms of suspected heroin was seized, and the three defendants were taken into custody.

 

If convicted of either conspiracy to distribute or possession with the intent to distribute narcotics, Brown, Morales, and Nevares faces a maximum sentence of 20 years in prison.

 

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

 

Acting United States Attorney Stephen M. Schenning commended the DEA for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Michael Hanlon, who is prosecuting the case. Mr. Schenning would also like to thank the following agencies for their cooperation and dedication to this investigation: Baltimore City Police Department, Baltimore City Sheriff's Office, Baltimore County Police Department, Immigration Custom Enforcement (ICE-ERO), Internal Revenue Service (IRS), and Maryland Transportation Authority Police (MTAP).

Baltimore, Maryland – A federal grand jury has indicted Maryland State Senator Nathaniel Thomas Oaks, age 70, of Baltimore, Maryland, with wire fraud, honest services wire fraud, and violations of the Travel Act for allegedly accepting illegal payments in exchange for using his official position or influence to benefit an individual on business-related matters. The indictment was returned on May 31, 2017.

 

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 affidavit in support of the criminal complaint filed previously, and the nine-count indictment returned on May 31, 2017, Oaks was a Maryland State Delegate representing District 41 (Baltimore City) from 1994 until being appointed to the Maryland Senate in February 2017, representing the same District.

 

The affidavit alleges that on September 21, 2015, a cooperating individual (the Cooperator) introduced Oaks to an FBI confidential human source (the CHS) who portrayed himself as an out-of-town businessperson interested in obtaining contracts in the City of Baltimore through a minority-owned business (the Company). The Company is a real business that is operated by a different cooperating defendant who is assisting the FBI with the investigation. The meeting took place at a restaurant in Pikesville, Maryland, and was consensually recorded by the Cooperator and the CHS. During the meeting, Oaks offered to assist the CHS with business development in Maryland.

 

During the months following the September 21, 2015 meeting between the CHS and Oaks, the CHS consensually recorded numerous telephone and in-person conversations with Oaks during which they discussed possible development and business-related opportunities that may be available to the CHS in Maryland. One such opportunity was a United States Department of Housing and Urban Development (HUD) project (the Project) that the CHS told Oaks that he was interested in developing in the City. Oaks told the CHS that he wanted to help with the HUD project.

 

According to the indictment, between the months of April 2016 and July 2016, Oaks issued two letters on his official House of Delegates letterhead to a person whom he believed to be a HUD official which contained materially false and fraudulent representations in order to assist the CHS in obtaining federal grant funds from HUD. The CHS paid Oaks $10,300 for his assistance.

 

Further, the indictment alleges that on September 22, 2016, the CHS paid Oaks $5,000 in exchange for Oaks’ agreement to file a bond bill request with the Maryland Department of Legislative Services (DLS) seeking $250,000 in state funds for the Project. Oaks filed the bill request with DLS later that day. On November 21, 2016, Oaks forwarded an email to the CHS that had been sent to him by DLS. The email attached the draft of the bill to establish a $250,000 bond to be used for the project.

 

All the money paid to Oaks by the CHS was supplied by the FBI and the meetings were recorded using audio/video recording equipment.

 

Oaks faces a maximum sentence of 20 years in prison for each count of wire fraud; 20 years in prison for honest services wire fraud; and five years in prison for each count of the Travel Act. An initial appearance has not yet been been scheduled in U.S. District Court in Baltimore.

 

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 its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Kathleen O. Gavin and Leo J. Wise, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Santos Jovany Quintanilla, age 37, of Lutherville-Timonium, Maryland today to 25 years in prison, followed by a lifetime of supervised release, for production of child pornography.

 

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; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Terrence B. Sheridan of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

 

According to his plea agreement, from 2010 through 2015, beginning when the victim was five years old, Quintanilla sexually abused a young girl, producing images of himself and the victim engaged in sexually explicit conduct. Multiple instances of abuse occurred when Quintanilla visited the home of the victim’s father. On several occasions, Quintanilla was left alone to watch the victim and her younger sister when their father left the house. During these times, Quintanilla sexually abused the victim and took photographs documenting the abuse. Quintanilla transferred the photographs to his laptop computer.

 

In addition, Quintanilla used text messages to ask the victim for additional explicit photographs of herself. When he obtained those photographs, he viewed them and then deleted them. In March 2015, Quintanilla contacted the victim via Facebook and sent her a photograph of a fifty-dollar bill along with the message: “Do you want it? Do you want me to come over?”

 

In addition to photographs of the victim engaged in sexually explicit conduct, Quintanilla also took and possessed 40 images of child pornography, including sexually explicit pictures of a pre-pubescent male.

 

Acting United States Attorney Stephen M. Schenning commended the FBI, HSI-Baltimore, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Aaron S. J. Zelinsky and Paul E. Budlow, who prosecuted the case.

Ceradoy was convicted of possession of child pornography in 2005 and attempted sexual exploitation of a minor in 2014

 

Baltimore, Maryland – A federal grand jury has charged Piere Ceradoy, age 36, of Crofton, Maryland, for production and advertisement of child pornography, coercion and enticement, cyberstalking, transfer of obscene material, and for engaging in this conduct while a registered sex offender. The indictment was returned on May 23, 2017. He was also ordered to be detained following a detention hearing held on May 25, 2017.

 

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

 

According to the seven count indictment, and information presented at the detention hearing, Ceradoy met a minor victim on social networking apps in the spring of 2016, within months of being released from prison in Washington for his conviction on attempted sexual exploitation of a minor.

 

The victim told Ceradoy she was 13, and Ceradoy immediately initiated sexually explicit discussions. Ceradoy enticed the victim to engage in sex acts, and received videos and photos of the victim engaged in these acts. He also threatened to post the explicit photos on the internet and to send them to the victim’s family, and Ceradoy threatened to kill the victim and members of her family.

 

Ceradoy faces a mandatory minimum of 15 years and a maximum of 30 years in prison, followed by a lifetime of supervised release for each counts of production and advertising of child pornography; a mandatory minimum of 10 years and a maximum of life in prison, followed by a lifetime of supervised release for coercion and enticement; a maximum of 10 years, followed by three years of supervised release for cyberstalking; a maximum of 10 years, followed by three years of supervised release for transfer of obscene matter to a minor; and 10 years consecutive to all the charges stated above, excluding cyberstalking, for being a registered sex offender, followed by a lifetime of 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.

 

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 for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.

Morales is currently under indictment in Guatemala for alleged serious human rights offenses, including those committed at Dos Erres massacre

 

Baltimore, Maryland – Jose Ortiz Morales, age 55, of Hyattsville, Maryland, pleaded guilty on May 25, 2017, to attempted unlawful procurement of naturalization charges.

 

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

 

According to his plea agreement, 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, the defendant 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, including at Johns Hopkins University in Baltimore, Maryland. He applied for and was granted Lawful Permanent Resident (LPR) 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 faces a maximum sentence of 10 years in prison. U.S. District Judge Marvin J. Garbis has scheduled sentencing for September 8, 2017 at 2:15 p.m.

 

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 is prosecuting the case, and trial attorney Christine Duey, of the Department of Justice’s Human Rights and Special Prosecutions Section.

A man pleaded guilty today in U.S. District Court for the District of Maryland to mail fraud, 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, 43, 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 returns that reported, among other falsities, that West was entitled to claim as dependents on his return two individuals who were not in fact his dependents. West knew that he was not entitled to claim these individuals as 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 in furtherance of the scheme.

Sentencing is scheduled for Sept. 18, 2017. West faces a statutory maximum sentence of twenty years in prison, a period of supervised release, restitution and monetary penalties.

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Stephen M. Schenning commended special agents of IRS–Criminal Investigation and Treasury Office of the 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 are prosecuting the case.

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

Greenbelt, Maryland – On May 23, 2017, U.S. District Judge Theodore D. Chuang sentenced Anatoly Samgorodsky, age 65, of Sarasota, Florida to 18 months in prison, followed by three years of supervised release, for conspiracy to bribe a public official. Judge Chuang also ordered Samgorodsky to pay a $25,000 fine and restitution in the amount of $70,000.

 

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 his plea agreement, Samgorodsky was a metallurgy consultant and part owner of a metallurgical research company located in Long Island City, New York. Between August 2014 and December 2015, Samgorodsky and co-conspirators entered into what they believed to be a $3.4 million Department of Energy (DOE) funded research contract, but was in fact, a pretextual contract arranged by the Federal Bureau of Investigation (FBI).

 

During the course of negotiating the contract, Samgorodsky and co-conspirators negotiated the specifics of a bribe to be paid to a public official who worked at DOE, who unbeknownst to Samgorodsky, was cooperating with the FBI. In September 2014, Samgorodsky requested the public official’s assistance with obtaining government or private sectors contracts to benefit his company. During the same month, at the direction of FBI investigators, the public official contacted Samgorodsky. In a recorded conversation, Samgorodsky relayed his company’s interest in obtaining new clients and contracts, and how he would reward the public official for helping him. The public official subsequently introduced Samgorodsky and a co-conspirator to an undercover FBI agent posing as a DOE employee. Samgorodsky and his co-conspirators eventually agreed to pay a bribe of approximately $80,000 in installments to the undercover FBI agent.

 

Between June 2015 and August 2015, Samgorodsky and his co-conspirators received a total of $263,500 in progress payments from the FBI under the alleged contract. Samgorodsky and his co-conspirators then agreed to convert a portion of these funds into cash, and pay the undercover agent in installments of $5,000 and $10,000 in June and July 2015, respectively, and $2,500 on September 3, 2015.

 

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

Baltimore, Maryland – John Theis, age 40, of Sparrows Point, Maryland, pleaded guilty today to receipt of illegal gratuities and impersonation of a United States officer.

 

The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Mark Tasky of the Department of Homeland Security (DHS), Office of Inspector General (OIG); Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

 

According to his plea agreement, from January 2015 through his resignation in September 2015, Theis worked at the Department of Homeland Security, United States Citizenship & Immigration Services (USCIS) in Baltimore, Maryland. Theis was an Immigration Services Officer (ISO), whose duties and responsibilities included adjudicating immigration and citizenship cases and granting permanent residence status. Theis was required to obtain approval for any outside employment and no such requests had been submitted by Theis seeking or gaining such approval.

 

From 2014 and through his departure from federal service, Theis accepted cash in return for promising favorable immigration adjudications for a number of aliens. On one occasion, while working at USCIS, Theis advised an alien on the documents needed for a green card approval. Additionally, Theis took photos of the applicant’s case file from a USCIS database. In exchange, Theis received approximately $500 from the alien applicant.

 

Beginning in December of 2014 through February 2015, Theis and a co-conspirator agreed to work together in an immigration business to assist immigrants with getting their paperwork approved through USCIS. Theis would do presentations at an immigration program known as Deferred Action for Parents of Americans and Lawful Permanent Residents (DAPA). There, Theis would wear clothes that identified him as an immigration officer in order to influence new clients into paying him for assistance with immigration paperwork.

 

In April 2015, Theis went on disability leave after making false statements about his ability to work. He also took various forms of paid leave and never returned to the USCIS.

 

On September 29, 2015, Theis resigned from government service and left for Brazil in October 2015. He continued to do immigration work in Brazil while holding himself out to be a special agent with Immigration and Customs Enforcement (ICE) until his return to the United States and arrest in December 2016.

 

The approximate value of gratuities Theis received was over $15,000. He also received over $1,600 in disability benefits to which he was not entitled.

 

Theis faces a maximum sentence of two years in prison for receipt of illegal gratuities and a maximum sentence of three years in prison for impersonation of a United States officer. U.S. District Judge George L. Russell has scheduled sentencing for August 8, 2017 at 9:30 a.m.

 

Acting United States Attorney Stephen M. Schenning commended DHS OIG, Immigration and Customs Enforcement, Office of Professional Responsibility, USCIS, FBI, and IRS for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Sandra Wilkinson and Paul E. Budlow, who are prosecuting the case.

Baltimore retailers ordered to pay over $7 million cumulatively for defrauding the Food Stamp Program

 

Baltimore, Maryland – In August 2016, a federal grand jury returned nine indictments charging 14 retail store operators in the greater Baltimore area with food stamp fraud and wire fraud in connection with obtaining over $16 million from the United States Department of Agriculture by illegally trading food stamp benefits for cash. Twelve of the fourteen charged defendants have pleaded guilty, and two defendants were sentenced this week to federal prison.

 

Today, U.S. District Judge Richard D. Bennett sentenced Mohammad Shafiq, age 51, of Baltimore, Maryland to 46 months in prison, followed by three years of supervised release. Judge Bennett ordered Shafiq to pay restitution in the amount of $3,712,353.00.

 

In a separate sentencing hearing held on May 18, 2017, Judge Bennett sentenced Mohammad Irfan, age 59, of Baltimore County, Maryland, to 51 months in prison, followed by three years of supervised release. Judge Bennett also ordered Irfan to pay restitution in the amount of $3,550,662.00.

 

The sentences were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.

 

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

 

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

 

Although charged in separate and unrelated schemes, Shafiq and Irfan engaged in similar conduct to defraud the SNAP program.

 

According to two separate plea agreements, from October 2010 through at least July 2016, Shafiq, Irfan and co-conspirators exchanged EBT benefits for cash, in violation of the food stamp program rules. They typically paid half the value of the EBT benefits in cash. To avoid detection, they often debited the funds from the card in multiple transactions over a period of hours or days, or called a different store where the transaction was processed manually.

 

Shafiq and Irfan owned and/or operated stores in the Baltimore area that were authorized to accept SNAP. The defendants received instruction regarding the requirements and regulations of the food stamp program and were aware that only eligible food items could be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.

 

Shafiq and his family members owned and operated four stores: Quick Stop Convenience Store, 237 N. Patterson Park Avenue; New York Food Mart, 1201 N. Patterson Park Avenue; and Barclay Food Mart, 2454 Barclay Street, all in Baltimore; and Shafiq Corporation, 6929 Holabird Avenue, in Dundalk, Maryland. From October 2010 through July 2016, Shafiq himself, and by and through his family members obtained more than $3.7 million in payments for food sales that never occurred or were substantially inflated.

 

Irfan and his family members also owned and/or operated four stores: New Sherwood Market, 6324 Sherwood Road in Northwood, Maryland; Martin Mart, 1504 Martin Boulevard in Middle River, Maryland; Rosedale Mart, 6326 Kenwood Avenue in Rosedale, Maryland; and M&A Mart 7400-A Belair Road in Baltimore. From October 2010 through August 2016, Irfan and his co-conspirators obtained more than $3.5 million in payments for food sales that never occurred or were substantially inflated.

 

Two retail store operators have previously been sentenced to federal prison. On March 27, 2017, Muhammad Sarmad was sentenced to 18 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $3,550,662. On April 27, 2017, Shaheen Tasewar Hussain was sentenced to 30 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $778,183.00.

 

The defendants listed below have all pleaded guilty and are awaiting sentencing:

 

Walayat Khan, age 37, of Reisterstown, Maryland;

Barbara Ann Duke, age 51, of Owings Mills, Maryland;

Kelym Novas Perez, age 35, of Baltimore;

Jose Remedio Gonzalez Reyes, age 51, of Baltimore;

Mulazam Hussain, age 55, of Windsor Mill, Maryland;

Alia Shaheen, age 25, of Baltimore;

Mahmood Hussain Shah, age 58, of Catonsville, Maryland;

Muhammad Rafiq, age 32, of Reisterstown;

Rizwan Pervez, age 39, of Essex, Maryland; and

Kassem Mohammad Hafeed, a/k/a Kassam Mohammad Hafeed, age 51, Baltimore

 

Acting United States Attorney Stephen M. Schenning commended the USDA Office of Inspector General and FBI for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Rachel M. Yasser and Kathleen O. Gavin, who separately prosecuted Shafiq and Irfan.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced David Edward Weatherholtz, age 57, of Berlin, Maryland today to 36 years in prison, followed by a lifetime of supervised release, for production of child pornography. Judge Hollander also ordered that Weatherholtz pay a total of $105,471.12 in restitution to the victims and ordered that Weatherholtz forfeit certain property, including his interest in the commercial real estate property located at 12600 Marjan Lane, Ocean City, MD 21842.

 

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); Worcester County Sheriff Reggie T. Mason, Sr.; Worcester County State’s Attorney Beau Oglesby; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

 

According to his plea agreement, from at least August 1990 through his arrest in 2015, Weatherholtz had sexual contact and/or sexual intercourse with at least four minors.

 

On December 3, 2014, an undercover detective with the Worcester County Sheriff’s Office responded to a sexually explicit ad placed on an internet website. Records obtained from the website identified Weatherholtz as the person who posted the advertisement and further indicated that the ad was one of many posted by Weatherholtz from 2009 to December 2014 for the purpose of meeting young males interested in sex.

 

Weatherholtz and the undercover detective exchanged emails and text messages, in which the detective identified himself as a 13-year-old deaf white male who lived with his aunt in Snow Hill. Weatherholtz sent the detective two video files by text messages. In the first video file Weatherholtz depicted himself greeting the purported 13-year-old deaf male, and in the second video file he pretended to be the 13-year-old deaf male greeting Weatherholtz.

 

Weatherholtz arranged to meet the purported 13-year-old male at a restaurant in Snow Hill on December 16, 2014, and indicated that he would bring the boy back to his residence. When Weatherholtz arrived at the meeting location, he was taken into custody. A search warrant was also executed at his home and law enforcement seized numerous computers, hard drives, and other media storage devices. Subsequent forensic analysis of those items recovered numerous still photographs and a video of Weatherholtz engaged in sexually explicit conduct with a minor male victim.

 

On August 17, 2016, an employee at a building formely owned by Weatherholtz found a box on the property that was addressed to “Aaron Weatherholtz” – the defendant’s dog. Inside the box were photos of minor males engaged in sex acts; sheets of paper called “official progress charts” that depicted dated, hand-traced outlines of erect male penises; CDs and DVDs; and two VHS-compatible camcorder cassette tapes. A review of that material revealed three other minor male victims engaged in sexually explicit conduct.

 

Acting United States Attorney Stephen M. Schenning commended HSI Baltimore, Worcester County Sheriff’s Office, Worcester County State’s Attorney’s Office, Maryland State Police, and the Internet Crimes Against Children Task Force for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Ayn B. Ducao and Paul A. Riley, who prosecuted the case.

Baltimore, Maryland – Kevin Graham Conlon, age 30, of Cockeysville, Maryland, pleaded guilty on May 15, 2017, to production of child pornography and cyberstalking.

 

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; and Chief Terrence B. Sheridan of the Baltimore County Police Department.

 

According to his plea agreement, between 2014 and January 2017, Conlon induced four minor females and two minor males to take photographs and videos of themselves engaging in sexually explicit conduct and send those images and videos to Conlon using fictitious online social networks. Conlon created fictitious accounts using the identities of some of the victims, and distributed the child pornography he induced them to create in order to entice the others to produce and send him sexually explicit images and videos. Conlon also used various online accounts to engage in a course of conduct that was intended to cause the victims and their families substantial emotional distress.

 

Colon faces a mandatory minimum sentence of 15 years and up to 30 years in prison for production of child pornography and five years in prison for cyberstalking. U.S. District Judge J. Frederick Motz has scheduled sentencing for July 25, 2017 at 10:00 a.m.

 

Acting United States Attorney Stephen M. Schenning commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.

Greenbelt, Maryland – Caleb Andrew Bailey, age 31, of Waldorf, Maryland, pleaded guilty in federal court today to illegal possession of unregistered machine guns, unregistered short-barreled rifles, unregistered destructive devices, and possession of child pornography charges.

 

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; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; and Charles County Sheriff Troy Berry.

 

According to the plea agreement, on May 5, 2016, Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) Special Agents executed federal search warrants at adjoining properties in Waldorf, Maryland associated with the Defendant. At the Defendant’s residence, law enforcement located, among other items, an underground bunker containing machine guns, machine gun manufacturing parts and devices, firearms, explosives, unregistered short-barreled rifles and destructive devices; covert recording devices; and child pornography on electronic devices seized inside and outside the residence, including one electronic device located within the underground bunker and other items moved from the Defendant’s bedroom at his residence and hidden in the woods by a minor victim at the direction of Bailey. At his parents’ residence, in the Defendant’s bedroom, law enforcement recovered an electronic device that contained internet searches indicative of child pornography.

 

During the execution of the search warrant on May 5, 2016, a 17-year-old minor was present at Bailey’s residence. The minor admitted that Bailey instructed the minor to remove a Panasonic Toughbook laptop, a Sony camera, and a Seagate external hard drive from Bailey’s residence and cover them with leaves by a footbridge in the woods behind the residence. Law enforcement recovered these items.

 

On May 17, 2016, the Department of Homeland Security, Homeland Security Investigations conducted a forensic analysis of Bailey’s electronic devices. The forensic analysis revealed that Bailey used hidden cameras to surreptitiously record videos of the victims in the bathroom of Bailey’s recreational vehicle, with the focus of those videos on the victims’ genitals. Bailey also physically transported the hidden cameras outside of Maryland to various hotels at which he stayed with the victims while competing in ATV races. In total, Bailey recorded over 100 videos capturing the genitals of the victims between March 2014 and January 2016. Bailey also created screen captures of portions of some of the videos that Bailey recorded of the victims. The screen captures depict the victims nude with their genitals exposed. Bailey saved these videos and video screen captures on the Seagate hard drive recovered during the execution of the search warrant at the Defendant’s residence on May 5, 2016. The forensic analysis also revealed that Bailey possessed other images and videos of child pornography on various electronic devices, including a hard drive located within his bunker, that do not appear to have been produced by him, including depictions of prepubescent minors and depictions of sadistic or masochistic conduct involving minors (bondage). Bailey’s collection of child pornography included more than 280 images and 54 videos depicting children engaged in sexually explicit conduct.

 

As part of his plea agreement, Bailey 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).

 

Bailey and the government have agreed that if the Court accepts the plea agreement Bailey will be sentenced to between 120 and 324 months in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 30, 2017 at 9:00 a.m.

 

Acting United States Attorney Stephen M. Schenning commended ATF Baltimore Field Division, HSI Baltimore, U.S. Postal Inspection Service - Washington Division and Charles County Sheriff’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Jennifer R. Sykes, Kristi N. O’Malley, and Thomas P. Windom, who are prosecuting the case.

Baltimore, Maryland – A federal grand jury has indicted Susan Anderson, age 56, of Elkton, Maryland, on charges related to a murder-for-hire. The indictment was returned on May 11, 2017.

 

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 indictment, Anderson allegedly paid someone to commit a murder.

 

Anderson faces a maximum sentence of 10 years in prison for the use of interstate commerce facilities in the commission of murder-for-hire; and 20 years for solicitation to commit a crime of violence.

 

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 U.S. Attorney David D. Metcalf, who is prosecuting the case.

 

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Melissa Strohman, age 54, of Nottingham, Maryland today to three years in prison, followed by three years of supervised release, for six-year scheme to steal over $1.8 million from bank customers at the bank where she worked as the Senior Vice President and Bank Secrecy Act Officer. Judge Bennett also ordered Strohman to pay restitution in the amount of $1,611,108.73.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Patti Tarasca, Special Agent in Charge, New York Region, Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.

 

According to her plea agreement, from April 2010 through July 2016, Strohman as the Senior Vice President at a federal savings bank in Maryland, which had branches in Pikesville and Highlandtown, was responsible for managing the bank’s savings department, including overseeing deposits and Individual Retirement Accounts for every customer. In addition, as the bank’s Bank Secrecy Officer, Strohman was responsible for filing Currency Transaction Reports and Suspicious Activity Reports for any transactions that were deemed to be suspicious or potentially illegal.

 

Strohman admitted that she used her position of trust at the bank to cause more than 200 unauthorized transfers and withdrawals of funds from six customers’ bank accounts to pay for mortgages, credit card bills and property tax bills associated with Strohman and her family members. Three of the six victim customers were at least 80 years old, and for two of the accounts the customers were deceased.

 

For example, Strohman used her supervisory override function on the bank’s electronic banking system to facilitate unauthorized transfers between the victim customers’ accounts to accounts associated with Strohman; forged the signature of one victim customer in order to complete an unauthorized transaction from that person’s bank account to an American Express account associated with Strohman; and caused unauthorized transfers of funds between the victim customers’ accounts to replace the monies Strohman stole and to conceal those thefts.

 

Acting United States Attorney Stephen M. Schenning commended FDIC Office of Inspector General and FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Evan Shea, who prosecuted the case.

Greenbelt, Maryland – On May 10, 2017, U.S. District Judge Theodore D. Chuang sentenced Mario Finesse Wright, a/k/a Super and Finesse, age 29, of Harrison, New Jersey, to 96 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute drugs. The following additional individuals, including three of Wright’s family members were part of the conspiracy:

 

Nikko Taylor Wright, age 26, of Germantown, Maryland;

Clayton Dion Hollywood Wright, a/k/a Hollywood, and Harrison Wright, age 23, of New Jersey;

Maximillan Kabir Bradford Wright, age 22, of New Jersey;

Shahryar Talebi-Nejad, a/k/a Skeet, age 28, of North Potomac, Maryland;

Matthew Joseph Hochman, a/k/a Greasy, age 28, of Gaithersburg, Maryland;

Daniel Rocco Famulare, age 29, of Gaithersburg, Maryland;

Brandon Alexander Ade, age 25, of Germantown, Maryland;

Arian Siasi, a/k/a The Prince of Persia, age 26, of Silver Spring, Maryland;

Ilya Bechutsky, age 30, of Boyds, Maryland; and

Terrence Devon Taylor, a/k/a Scoop, and T, age 28, of Clinton, Maryland.

 

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

 

According to his plea agreement, from at least March 2014 to May 2016, the defendants conspired to distribute heroin and cocaine in several states, including New Jersey and Maryland. Over a period of years, three New Jersey-based brothers, Mario, Clayton, and Max Wright, supplied their Maryland-based brother, Nikko Wright, with large quantities of heroin and cocaine, which Nikko Wright in turn distributed to a network of dealers in the Maryland and Washington, D.C., metropolitan area. Notably, two of the Maryland-based dealers involved in this conspiracy have admitted that heroin they distributed resulted in overdose deaths in Maryland.

 

All of the charged members of this conspiracy have pled guilty. In addition to Mario Wright, two others have been sentenced: Matthew Joseph Hochman was sentenced to 63 months in prison and Clayton Dion Hollywood Wright was sentenced to 66 months in prison. The remaining defendants are scheduled for sentencing in the coming weeks and months.

 

Acting United States Attorney Stephen M. Schenning commended the DEA and the Montgomery County Police Department for their work in the investigation, and in particular praised the DEA’s multi-jurisdictional efforts in this investigation, which included substantial efforts of agents based in both Maryland and New Jersey. Mr. Schenning also recognized the Bureau of Alcohol, Tobacco and Firearms, the United States Marshal Service, Calvert County Police Department, Howard County Police Department, and Prince George's County Police Department for their assistance. Mr. Schenning thanked Assistant U.S. Attorneys Michael T. Packard and Ray D. McKenzie, who are prosecuting this Organized Crime Drug Enforcement Task Force case, and also thanked their colleagues in the U.S. Attorney’s Office for the District of New Jersey, who provided valuable support to the prosecution team.

Baltimore, Maryland – On May 10, 2017, Matthew Barrow, age 43, of Toledo, Ohio, pleaded guilty to bribery charges related to contracting at the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland.

 

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

 

According to his plea agreement, in March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. Former Army officials John and Danielle Kays each had leadership positions related to this contract. From September 2006 through April 2011, a series of task orders for services pursuant to the contract were placed.

 

John and Danielle Kays were civilian employees who represented the Army on these types of multi-year contracts. From January 2011 until his resignation from government service in July 2014, John Kays held the position of Deputy Project Manager for Mission Command, in effect the number two position for Mission Command. From June 2009 through June 2012, Danielle Kays was the Deputy Director of the Technical Management Division, and from 2012 until her resignation from government employment in October 2015, Danielle Kays was the Product Director of Common Hardware Systems. Barrow was the President and owner of MJ-6, LLC, a company which he and his wife formed in Ohio in 2008 to obtain military subcontracts. From June 2008 through August 2010, Barrow was also employed as a procurement manager by a glass company in Ohio.

 

From August 2008 to June 2014, John and Danielle Kays agreed to take official actions favorable to Barrow and MJ-6 in return for Barrow paying them a total of approximately $800,000. Specifically, the Kays used their official positions to add MJ–6 as a subcontractor acceptable to the Army, to steer potential employees for government contractors to work for MJ-6, to approve MJ-6 employees to work on various TOs, and to approve the pay rates, status reports, and travel reimbursements for MJ-6 employees. The Kays steered subcontracts worth approximately $21 million to MJ-6.

 

In order to conceal their corrupt relationship Barrow caused the glass company he worked for to purportedly enter into contracts and make payments to Transportation Logistics Services, LLC, a company incorporated by John Kays; and later made payments to the Kays in cash, which Barrow allegedly withdrew from his personal accounts and from MJ-6 accounts. Barrow withdrew the money in amounts less than $10,000 to avoid bank reporting requirements. To further conceal the scheme, John and Danielle Kays made false statements on the government ethics forms that they were required to file by failing to disclose the cash payments received from Barrow.

 

Barrow faces a maximum sentence of 15 years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for January 12, 2018, at 11 a.m.

 

John and Danielle Kays have been indicted and are pending trial.

 

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

 

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

Greenbelt, Maryland – On May 10, 2017, U.S. District Judge George J. Hazel sentenced Adarryl Hayes, a/k/a Prince, a/k/a Crummy, age 23, of Washington D.C., to 10 years in prison, followed by 10 years of supervised release, for sex trafficking of two minors.

 

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 Chief Hank Stawinski of the Prince George’s County Police Department.

 

According to his plea agreement, from February 1, 2016 through February 24, 2016, Hayes recruited a 14-year old minor (Victim 1) and a 17-year old minor (Victim 2) to engage in commercial sex acts. Hayes used a website to advertise prostitution services for both victims.

 

Hayes directed Victim 1 and Victim 2 to communicate with clients and potential clients that called. Hayes would rent and transport the victims to hotels throughout Maryland to meet with their clients. After each date, the victims gave the prostitution proceeds to Hayes. Hayes did not allow Victim 1 to retain any of the proceeds, but would purchase condoms, food, clothing, toiletries, and other necessities for Victim 1.

 

On February 24, 2016, an undercover officer with Prince George’s County Police Department contacted the telephone number on the advertisement for Victim 1. The undercover officer and Victim 1 agreed to a price. Victim 1 directed the undercover officer to a hotel in Capitol Heights, Maryland. After asking if Victim 1 was alone, Victim 1 let the undercover officer know that Victim 2 would also be in attendance; the undercover officer agreed for a price for both victims. After arriving at the hotel room and Victim 1 accepting the money, the undercover officer identified himself as a police officer.

 

Immediately following the undercover operation, Hayes was located in the hotel parking lot where he was placed under arrest.

 

Acting United States Attorney Stephen M. Schenning commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Theodore Gerald Reiss, age 81, of Halethorpe, Maryland today to 90 months in prison, followed by a lifetime of supervised release, for distribution of child pornography.

 

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; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Terrence B. Sheridan of the Baltimore County Police Department.

 

According to his plea agreement, on August 17, 2015, Reiss used a personal computer to distribute, in a peer-to-peer network, a file containing a video of minors engaged in sexually explicit conduct. Additionally, during a search of Reiss’s home on September 9, 2015, investigators found Reiss in possession of various electronic devices and CDs that were later found to contain 291 videos and 29 still images of child pornography.

 

Acting United States Attorney Stephen M. Schenning commended the FBI, HSI, and the Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the case.

 

Sold $500,000 Worth of Designer Sunglasses and Other Items Stolen from Shopping Mall Kiosks

 

Baltimore, Maryland – On May 8, 2017, U.S. District Judge Richard D. Bennett sentenced Brian Nelson Halsey, age 52, of Westminster, Maryland, formerly of Dundalk, Maryland to 57 months in prison, followed by three years of supervised release, for a scheme to sell property stolen from shopping mall kiosks online.

 

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 Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

 

According to his plea agreement, from October 7, 2014 through March 29, 2016, Halsey used online accounts opened in different names and identities to sell stolen items, including designer sunglasses, and shipped the items nationwide from his home in Dundalk, Maryland.

 

Specifically, Halsey’s co-conspirator, William Albert Engel, broke into kiosks and stores in shopping malls in Cape Girardeau, Missouri; Fairview Heights, Illinois; Wilmington, North Carolina, and Myrtle Beach, Columbia, and Florence, South Carolina, and stole merchandise which he brought to Halsey in Maryland. Halsey sold the property through an online market, and used the U.S. Postal Service and commercial carriers to ship the stolen property to the buyers. Halsey provided cash from the sale of the stolen property to Engel and also helped to finance Engel’s travel expenses to other states to commit thefts in order to obtain more property for sale. Halsey maintained multiple online market accounts, online payment accounts, and bank accounts under different names and identities during the scheme.

 

On August 28, 2015, law enforcement searched Halsey’s residence and recovered over $200,000 worth of stolen designer sunglasses, as well as a printing and labeling system, and a large number of documents related to selling sunglasses through an online market. Law enforcement also recovered lock-pick kits and numerous atlases and street maps.

 

Halsey admitted that more than five individuals participated in the scheme, helping Halsey to package and ship the stolen sunglasses, providing their identification information to Halsey to set up bank and online accounts, and/or assisting in the thefts. Halsey organized the sale of items online and their shipment to buyers outside Maryland. The estimated loss from the scheme was approximately $500,000.

 

Engel has pleaded guilty and is scheduled to be sentenced on June 5, 2017, at 3:00 p.m.

 

Acting United States Attorney Stephen M. Schenning commended the FBI and Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.

 

 

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Joseph Goldman, age 35, of Baltimore, Maryland today to one year and a day in prison, followed by three years of supervised release, for possessing unregistered firearms and for making a firearm.

 

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 (ATF) - Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.

 

According to his plea agreement, on December 19, 2016, while executing a search warrant at Goldman’s home as part of an investigation by Baltimore Police Department, law enforcement discovered a cache of suspected illegal firearms and contacted ATF for assistance.

 

The following firearms were recovered from Goldman’s residence and seized by law enforcement: from behind the couch in the first floor living room, a 556 short barrel AR-15 long gun with a silver 6.5 inch silencer attached; from Goldman’s bedroom, a 12 gauge short barrel shotgun and two semi-automatic pistols; and 20 rounds of ammunition, a machine vice, miscellaneous gun parts and tools.

 

Goldman admitted to making and possessing firearms in violation of the National Firearms Act (“NFA”). Specifically, Goldman sawed off the barrel of the shotgun, made a short barreled rifle without a serial number, and made a silencer for the rifle. Despite knowing the length of the firearms and the purpose of the silencer, Goldman did not register these items with the National Firearms Registration and Transfer Record.

 

Acting United States Attorney Stephen M. Schenning commended ATF, FBI, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

 

Baltimore, Maryland – Heather Wagoner, age 31, of Buchanan, Virginia, pleaded guilty today to a sex trafficking conspiracy involving a sixteen year old girl.

 

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; and Chief Edward G. Hargis of the Frederick City Police Department.

 

According to her plea agreement, Wagoner and a co-conspirator conspired to engage in sex trafficking of a minor who was 16 years old at the time. From October 15, 2014 through December 19, 2014, Wagoner and her co-conspirator used the internet to solicit individuals for prostitution in Maryland. Wagoner instructed the victim to engage in sexual acts and provided condoms.

 

For two weeks in December 2014, the victim resided with Wagoner at various hotels in West Virginia and Maryland. Wagoner received calls from customers inquiring about the victim, and then relayed the information to her co-conspirator who facilitated the victim’s “date” with the customers. Wagoner and the victim would split the proceeds from the dates, and Wagoner would use some of her proceeds to pay her co-conspirator for driving the victim.

 

On December 19, 2014, detectives, acting in an undercover capacity, contacted the phone number provided on the website for the victim and spoke with Wagoner. The detectives arranged a meeting at a hotel in Frederick, Maryland, where investigators subsequently identified the victim as a minor and arrested the co-conspirator.

 

On the same day, investigator’s obtained a search warrant for the co-conspirator’s phone, which indicated numerous communications between the co-conspirator and Wagoner regarding sex trafficking of the victim. After police seized the co-conspirator’s phone, Wagoner continued to text the co-conspirator regarding the conspiracy to sex traffic the victim. Investigators arrested Wagoner on July 1, 2016.

 

Wagoner and the government have agreed that if the Court accepts the plea agreement Wagoner will be sentenced to eight years in prison, followed by a lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for July 20, 2017, at 10:00 a.m.

 

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

 

Acting United States Attorney Stephen M. Schenning commended the FBI and Frederick City Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Aaron S.J. Zelinsky, who is prosecuting the case.

 

Baltimore, Maryland – On May 5, 2017, U.S. District Judge Ellen L. Hollander sentenced Michael John Bickel, age 26, of Aliquippa, Pennsylvania to 35 years in prison, followed by a lifetime of supervised release, for production of child pornography.

 

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.

 

Bickel is currently incarcerated in the Pennsylvania State Department of Corrections institution SCI Dallas in Dallas, Pennsylvania. According to his plea agreement, between September 24, 2013 through January 1, 2015, in the District of Maryland, Bickel, sexually abused and produced images of minors engaged in sexually explicit conduct.

 

In March 2015, after being arrest by law enforcement authorities in Washington County, Pennsylvania, Bickel disclosed that in addition to at least three local children he had sexually abused in Pennsylvania, he also sexually abused two minors during visits he made to Howard County, Maryland.

 

Bickel was prosecuted by authorities in Washington County, Pennsylvania, for child sex offenses he committed in that jurisdiction with children other than the two victims in Howard County, Maryland. He is currently serving a state sentence in Pennsylvania of between 59 and 118 years, for which he is expected to serve a minimum term of 59 years.

 

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

 

Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Michael P. Cunningham, who prosecuted the case.

 

Greenbelt, Maryland – Christopher Dame, age 50, of Gaithersburg, Maryland pleaded guilty on May 3, 2017, to theft of government property. Dame, a former Visual Information Specialist for the National Institutes of Health’s (NIH) Medical Arts Division located in Bethesda, Maryland, admitted to stealing NIH property and selling it online without authorization.

 

The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Elton Malone of the Department of Health and Human Services Office of the Inspector General; and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.

 

According to his plea agreement, Dame was responsible for designing, printing, and displaying decorative and informational materials in NIH buildings, as well as directing his colleagues to place purchase orders of printing ink for the Medical Arts Division. At no point did Dame have authority to remove NIH property from the main campus or sell NIH property.

 

Dame admitted that from January 3, 2013, through January 12, 2017, he regularly stole medical research equipment, photography equipment, and printing supplies belonging to NIH, and sold such items through an e-commerce corporation, enriching himself. also deceived his colleagues into purchasing surplus ink for NIH, with the intent to ultimately steal the ink and sell it online. During the relevant time period, Dame stole over four hundred items belonging to NIH. As part of his plea agreement, Dame will be required to pay restitution in the full amount of the loss, which is $75,613.14.

 

Dame faces a maximum sentence of 10 years in prison. U.S. Magistrate Judge Timothy J. Sullivan has scheduled sentencing for September 6, 2017, at 2:30 p.m.

 

Acting United States Attorney Stephen M. Schenning commended the Department of Health and Human Services Office of the Inspector General for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Michael T. Packard, and Trial Attorney Simon J. Cataldo from the Department of Justice, Public Integrity Section, who are prosecuting the case.

 

Greenbelt, Maryland – On May 1, 2017, John S. Mattingly, age 71, of Charlotte Hall, Maryland, pleaded guilty to bank fraud in connection with a scheme to steal funds from St. Francis Xavier Catholic Church, while he was the pastor.

 

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, St. Mary’s County Sheriff Tim Cameron, and St. Mary’s County State’s Attorney Richard Fritz.

 

According to his plea agreement, Mattingly was ordained as a Roman Catholic priest in 1972 and was the pastor of St. Francis Xavier Catholic Church (St. Francis), in Leonardtown, Maryland, from 1994 until September 1, 2010, when he resigned. While serving as a parish priest, Mattingly was paid a salary and stipend by St. Francis.

 

From September 2006 through September 2010, Mattingly fraudulently deposited checks from parishioners made payable to St. Francis and to the St. Vincent de Paul Society, which were intended by the St. Francis parishioners to be charitable donations, into a bank account he controlled. In order to conceal the scheme, Mattingly falsely represented that that the checks he deposited into his bank account would be used for charitable purposes and/or church maintenance and renovations. Mattingly did not use the charitable contributions from the St. Francis parishioners for their intended purposes, but instead transferred the fraudulently obtained funds from his bank account to his personal individual retirement account. He also wrote unauthorized checks from the St. Francis bank account payable to himself and deposited those checks into his personal individual retirement account.

 

Mattingly fraudulently deposited more than 500 checks, totaling at least $76,000, written by more than 135 parishioners and made payable to St. Francis or the St. Vincent de Paul Society, and not to Mattingly.

 

Mattingly and the government have agreed that if the Court accepts the plea agreement he will be sentenced to home detention from six to 18 months. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for July 31, 2017 at 10:00 a.m.

 

Acting United States Attorney Stephen M. Schenning commended the FBI, St. Mary’s County Sheriff’s Office, and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.

 

Baltimore, Maryland – On May 1, 2017, U.S. District Judge Catherine C. Blake sentenced Sean Stanley Jackson, age 44, of Baltimore, Maryland to eight years in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud and money laundering charges as the leader of a scheme to defraud auto dealers in Anne Arundel, Howard, Baltimore and Montgomery counties and nation-wide financial lenders. Judge Blake also ordered Jackson to pay forfeiture and restitution in the amount of $692,587.63.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.

 

According to his plea agreement, from January 2010 to February 2016, Jackson, and his co-Defendants Erika P. Ryles, and Walter J. Perry, III conspired to make false representations on loan applications to lenders in order to obtain loans to purchase vehicles from dealers, for which they were not financially qualified. Jackson and his co-conspirators organized and registered shell entities, including The Black Group LLC, which they used to make false representations in loan applications. For example, the conspirators falsely represented that The Black Group was a legitimate, thriving business with millions of dollars in annual revenues. To support their false representations, the defendants created fake documents, including paystubs, bank account statements, utility bills and corporate tax returns and schedules for the shell entities, which they submitted with auto loan applications, and to banks and other lenders.

 

On December 5, 2013, Jackson sent a message to Ryles asking her to create a fake bank account statement showing specific deposits and balance, which she did. Jackson and another co-conspirator, who was an elderly family member, then used the fraudulent bank statement to apply for loans on behalf of The Black Group on two different 2014 Ford F450 trucks, a Chevrolet Express Van, and a 2009 Audi A8. After obtaining more than $246,349 to purchase the four vehicles, Jackson and the co-conspirator defaulted on the loans, causing losses to the lender. In June 2014, Ryles again prepared false bank statements at Jackson’s request. Jackson and the co-conspirator then used the false bank statement in support of a loan application to purchase a 2006 5900i International Dump Truck. After receiving the financing to purchase the dump truck, Jackson and the co-conspirator again defaulted on the loan, causing a loss to the lender.

 

Jackson also used The Black Group to launder proceeds he obtained from the sale of a 2012 Chevrolet Avalanche. On May 10, 2012, Jackson submitted a false loan application and obtained $63,067.38, to finance the purchase of a 2012 Chevrolet Avalanche. After a few months, Jackson stopped making payments on the loan and the lender attempted to repossess the vehicle, but was unsuccessful since Jackson did not live at the address he provided on the loan application. Jackson continued using the vehicle. On November 29, 2014, Jackson went to a title shop in Maryland and presented a Mississippi title for the Avalanche which reflected that the vehicle had been sold to The Black Group on November 24, 2014, by the original owner, Thomas Mack, and that the vehicle did not have any outstanding liens. In order to conceal the true ownership of the vehicle, Jackson used the Mississippi title to obtain a Maryland MVA title on the Avalanche in the name of The Black Group. On December 15, 2014, Jackson, acting as a representative of The Black Group, sold the Avalanche to a car dealership in Maryland for $34,000, receiving a check in that amount made payable to The Black Group.

 

The next day, Jackson directed Perry to open two bank accounts representing that Perry owned a company called “Black Group,” and had Perry deposit the check from the sale of the Avalanche into one of those accounts. On December 18, 2014, at Jackson’s direction, Perry use the funds in that account to purchase three cashiers’ checks totaling $23,000, each made payable to Jackson. In addition, Perry withdrew $8,000 in cash and gave the money to Jackson. On January 9, 2015, Jackson had Perry purchase the Avalanche from the dealership where he’d sold it. At Jackson’s direction, Perry applied for a loan to purchase the vehicle, falsely stating that he was president of the Black Group LLC. Jackson provided Perry with two fake pay stubs, which Perry used as part of his loan application.

 

Acting United States Attorney Stephen M. Schenning commended the IRS - Criminal Investigation and Baltimore County and City Police Departments for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Dana J. Brusca, who prosecuted the case.

 

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Louis Frances Bradley, age 66, of Baltimore, Maryland today to 35 years in prison, followed by a lifetime supervised release, for production of child pornography. Bradley has four previous state convictions on charges related to the sexual exploitation of children.

 

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 Commissioner Kevin Davis of the Baltimore Police Department.

 

According to his plea agreement, between 2014 and 2016, Bradley paid numerous women in the Philippines to take sexually explicit photos of prepubescent females and send the images to Bradley using social media. Bradley also paid the women to expose their genitals to Bradley using video streaming programs.

 

Bradley created two social media accounts and used the accounts to become “friends” with hundreds of young women who lived in the Philippines. Many of the women “friended” by Bradley had prepubescent children or access to prepubescent children. Bradley asked the women to send sexually explicit images of prepubescent females under their care in exchange for money. Bradley admitted that he sent 120 payments to at least 17 payees in the Philippines, totaling $8,291. At least six of the recipients sent Bradley images or videos of children engaged in sexually explicit conduct in exchange for the payments.

 

As part of his plea agreement, Bradley must continue to 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 the FBI and Baltimore Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

 

 

Baltimore, Maryland – On April 27, 2017, U.S. District Judge Richard D. Bennett sentenced Shaheen Tasewar Hussain, age 61, of Columbia, Maryland to 30 months in prison, followed by three years of supervised release, for conspiracy to commit food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Bennett also ordered Hussain to pay restitution in the amount of $778,183.00.

 

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

 

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

 

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

 

Hussain was the owner of Safe #7, Inc. d/b/a Shop & Save (hereinafter sometimes referred to as “the store” or “Shop & Save”), which was a convenience store located at 301 Crain Highway South, Suite D in Glen Burnie, Maryland. Hussain, through the store, participated in the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the Food Stamp Program.

 

According to her plea agreement, from July 2011 through August 2016, Hussain redeemed EBT benefits at the Shop & Save in exchange for cash in violation of the food stamp program rules and regulations. Hussain paid individuals presenting SNAP benefits cash in exchange for their benefits and kept up to 50 percent of the benefits for the store. As a result of these unlawful transactions, Hussain obtained more than $778,183 in EBT deposits for food sales that never actually occurred. Hussain knew that exchanging cash for EBT benefits was in violation of the laws, rules and regulations regarding the food stamp program and that she was not entitled to the EBT deposits made by FNS into the bank account for Safe #7, Inc.

 

In September 2011, months after being permanently disqualified from the SNAP program for violating FNS regulations, Hussain used a straw owner to submit an application to license Shop and Save to participate in the food stamp program. FNS approved the form which had been signed by another individual other than Hussain and licensed Shop & Save as a SNAP retailer. Hussain, however, subsequently operated Shop & Save.

 

Hussain was observed by law enforcement working the cash register and personally trafficking SNAP benefits in exchange for giving reduced cash payments to EBT cardholders. Between April 2015 through September 2015, agents working in an undercover capacity entered Shop and Save multiple times and asked to sell food stamp benefits in exchange for cash. Hussain was working behind the register each time and agreed to the transactions. For example, on April 14, 2015, Hussain swiped the undercover agent’s SNAP benefit EBT card twice, charging $75.02 for the first transaction and $25.60 on the second transaction just seconds later for a total of $100.62. In exchange, the Defendant gave the undercover agent $60 in cash.

 

On each of the occasions, Hussain did not sell the undercover agent any eligible food items. Hussain also broke up these transactions into increments of less than $100, because she knew that transactions over $100 for such a small store would likely alert law enforcement that she was trafficking SNAP benefits in exchange for cash.

 

On August 30, 2015, law enforcement executed a search warrant at Shop & Save. Officers discovered that the vast majority of the food items at the store were expired, covered in dust, spoiled by pests, and not amenable for human consumption.

 

Acting United States Attorney Stephen M. Schenning praised the USDA Office of Inspector General and FBI for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Jason D. Medinger and Kathleen O. Gavin, who prosecuted the case.

Baltimore, Maryland – On April 27, 2017, U.S. District Judge Marvin J. Garbis sentenced John Wilkerson, age 51, of Moultrie, Georgia to five years in prison, followed by three years of supervised release, for a wire fraud conspiracy and for paying illegal gratuities to a government official, in connection with the award of more than $53 million in federal government contracts. Judge Garbis also ordered Wilkerson to pay forfeiture and restitution in the amount of $9,441,340.11.

 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Commander of the Air Force Office of Special Investigations (OSI); Special Agent in Charge Robert Craig, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office; and U.S. Small Business Administration Acting Inspector General Mike Ware.

 

According to his plea agreement, Wilkerson was a Department of Defense Account Manager for Iron Bow Technologies, LLC (Iron Bow), which provided IT consulting and other services to government and industry customers. Wilkerson was also part owner and operated an information technology company, Superior Communications Solutions, Inc. (SCSI).

 

Andrew Bennett, who was separately charged and has pled guilty, was a program manager for an information technology company, Advanced C4 Solutions, or AC4S, from 2005 until 2011. In 2011, Bennett left AC4S and went to work for Wilkerson at SCSI.

 

James T. Shank, who was separately charged and has pled guilty, was a Program Manager at the United States Navy’s Space and Naval Warfare (SPAWAR) Systems Center

 

From September 2009 through August 2012 Wilkerson, Bennett and Shank conspired to steer government contracts at Joint Base Andrews to companies affiliated with Wilkerson and Bennett. After the award of the contracts, Wilkerson offered, and Shank accepted, employment with SCSI while Shank was still a government employee and while he was taking official actions that benefited Wilkerson. In addition, Wilkerson paid Shank $86,000 in the year after Shank retired from government service, funneling the payment through two other companies in order to conceal the source of the funds. Wilkerson also hired Bennett and paid him a $500,000 bonus using proceeds from the fraud scheme.

 

For example, Shank, Wilkerson, and Bennett developed a request for proposal (RFP) for DO27, a contract to supply labor services for an Air Force technology project, including for overall project management services, so that AC4S would win the contract. On June 10, 2010, DO27 was awarded to AC4S in the amount of $18,332,738.10. Wilkerson provided Bennett with a quote for labor on behalf of SCSI that was less than the quote he had previously submitted on behalf of Iron Bow as their sales representative. After SCSI was selected as a subcontractor on DO27, it subcontracted with Iron Bow to provide most of the labor SCSI was supposed to provide under DO27. Wilkerson was able to earn income from the work Iron Bow employees were doing by having SCSI act as a middleman and charging a mark-up on Iron Bow’s work. Wilkerson and Bennett also directed an SCSI employee to create false invoices supposedly documenting the hours SCSI employees spent working on DO27, which were submitted to AC4S and paid by the United States government. SCSI received $6,794,432.98 on DO27 out of the $18 million AC4S received for providing labor for the project.

 

Shank also initiated the procurement process on more than 11 delivery orders that purchased telecommunications equipment and furniture as part of the Air Force project. Those delivery orders were issued to Iron Bow in 2010 and 2011. Wilkerson took multiple items of commercially available furniture, bundled them together and assigned them an SCSI specific number and a price that included a significant mark up over what SCSI paid the furniture manufacturer for the items. Shank then submitted to SPAWAR contracting officers a purchase order asking for authority to buy the bundle of furniture that bore the SCSI specific part number. SCSI received approximately $33 million of the $35 million paid to Iron Bow under the various furniture and equipment delivery orders. Wilkerson charged the United States a 25 percent markup on furniture purchased under these two purchase orders, resulting in a profit to him of more than $6 million.

 

In addition, from 2010 until his retirement in June 2011, Shank falsely certified that the United States government received more than $1 million worth of goods under the W91QUZ-07-D-0010 contract that the government did not in fact receive.

 

In late 2010 or early 2011, Wilkerson offered Shank employment. Shank did not disclose that fact to anyone at SPAWAR and did not recuse himself from any of the contracts that benefited Wilkerson. In February 2011, Bennett left AC4S and went to work for Wilkerson at SCSI. Bennett received a $500,000 bonus when he joined SCSI, which was paid for by profit Wilkerson had earned on the furniture contracts.

 

Shank accepted employment with SCSI in May 2011, but was still working for SPAWAR when he approved more than $1.1 million worth of invoices that benefitted SCSI and Wilkerson.

 

Between July 2011 until August 2012, Wilkerson paid Shank approximately $86,000. The funds that Wilkerson paid Shank were funneled through T&M Communications, LLC, a company owned by T.R., a senior executive at SCSI, who ultimately paid out the funds to Shank. Further, in some instances funds paid to Shank were also funneled through Decision Point Technologies, LLC, another company owned by Wilkerson. Shank did no work for Decision Point Technologies or T&M Communications in that time period.

 

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

 

Acting United States Attorney Stephen M. Schenning thanked Air Force OSI, DCIS, and the U.S. Small Business Administration Office of Inspector General for their work in the investigation. Mr. Schenning commended Assistant U.S. Attorneys Leo J. Wise and Philip A. Selden, who are prosecuting the case.