District of Maryland

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.

 

Baltimore, Maryland – A federal grand jury has indicted Eric Wayne Grinder, age 36, of Westminster, Maryland, with three counts of production of child pornography and two counts of possession of child pornography. The indictment was returned on April 26, 2017.

 

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Sheriff James T. DeWees of the Carroll County Sheriff’s Office.

 

According to the indictment, from June 2013 through August 2016, Grinder allegedly sexually abused a now 10-year old minor, and produced images of himself and the minor engaged in sexually explicit conduct. Further, Grinder used electronic communications devices to store and obtain visual depictions of minor victims engaged in sexually explicit conduct.

 

Grinder faces a maximum sentence of 30 years in prison for each of count of production of child pornography and a maximum of 20 years in prison for each count of possession of child pornography. An initial appearance has been scheduled in U.S. District Court in Baltimore on Thursday, May 4, 2017.

 

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.

 

United States Attorney Rod J. Rosenstein commended HSI, the Maryland State Police, the Carroll County Sheriff’s Office, and the Carroll County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul Riley and Paul Budlow, who are prosecuting the case.

 

Gang Member Allegedly Shot and Killed Three-Year-Old Girl in Turf Battle; Authorities Aim to “Catch the Killer and Dismantle his Gang”

 

Baltimore, Maryland – A federal grand jury has returned an indictment charging seven alleged members of the Old York Money Gang, an alleged drug trafficking organization (DTO) operating in the Waverly Way section of Baltimore, with conspiracy to distribute and possess with the intent to distribute controlled substances. One defendant is charged with using a gun to kill an innocent bystander. The indictment was returned on April 25, 2017, and unsealed today upon the arrest of the defendants.

 

The indictment charges the following defendants, all of Baltimore:

 

Terrell Plummer, a/k/a Rell, age 28; Davonte Rich, a/k/a Chopper, age 22;

Trevon Beasley, a/k/a Tre, age 23;

Tyrone Jamison, a/k/a Ty, age 23; Davin Lawson, a/k/a D, age 25; Calvin Watson, a/k/a Monster, age 26; and

Tyron Brown, a/k/a Boobie, age 26.

 

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Commissioner Kevin Davis of the Baltimore Police Department.

 

“Exceptional police officers and prosecutors worked tirelessly and creatively to catch the killer and dismantle his gang because they care about saving lives,” said U.S. Attorney Rod J. Rosenstein. “The indictment alleges that an armed drug dealer killed McKenzie Elliott, which is no surprise because most murders in Baltimore are committed by armed drug dealers who belong in prison.”

 

“The loss of any life is heartbreaking to a family member, but to see this level of callous disregard for human life, especially when it leads to the loss of an innocent child, is wholly unacceptable,” said ATF Baltimore Special Agent in Charge Daniel L. Board. “ATF will remain steadfast in our partnerships with the Baltimore City Police Department and the USAO to combat these blatant and vicious attacks against our communities.”

 

 

"This case rocked not only the Waverly community, but the entire city of Baltimore," said Baltimore Police Commissioner Kevin Davis. "McKenzie should be in school, running around with her friends and doing everything a six-year-old does, but instead, her life was cut short by a coward with a gun. This case exemplifies the strength of our federal partnerships and our resolve to go after those who choose to harm citizens, especially our most vulnerable."

 

According to the 16-count indictment, the defendants were members and associates of the Old York Money Gang (OYMG), a violent drug trafficking organization operating in the Waverly Way neighborhood in the northeastern district of Baltimore since January 2014. Crimes committed by the gang include murder, robbery, extortion, burglary, and narcotics trafficking. A neighborhood gang, OYM generally limits its membership to persons that originate from or live in the Waverly Way neighborhood, and excludes outsiders. The gang represents their association through social and digital media in which members and associates identify themselves by hand signals forming the letters “OY” or written labels of “Old York Money Gang” or OYMG.

 

The indictment alleges that the defendants sold heroin, powder and crack cocaine, and marijuana in their territory in Waverly Way and elsewhere. The defendants and their associates controlled, maintained, and defended drug territories called “shops” and permitted only OYMG members to sell drugs in these shops. Any non-OYMG members who wished to distribute drugs in these shops would be violently attacked. The defendants agreed to defend their territory. In order to maintain and increase their power, they agreed to commit murder and assaults against anyone who posed a threat to their organization or who invaded their territory.

 

In the summer of 2014, Plummer allegedly carried a firearm defend OYMG territory and collect drug debts. On July 31, 2014, Plummer, Rich and other OYMG members allegedly violently attacked three victims who had entered OYMG territory to support a friend who was engaged in a dispute with the sister of an OYMG member. In this incident, an OYMG member stabbed one of these victims.

 

The three victims returned to the same OYMG drug shop on August 1. In order to protect OYMG territory, Plummer allegedly shot multiple rounds at the vehicle carrying the three victims. One of the rounds hit a victim in the head but did not kill him. Another bullet missed the three victims and killed a three year-old girl named McKenzie Elliott.

 

If convicted, the defendants each face a maximum sentence of 40 years in prison for the drug conspiracy. Plummer faces a maximum sentence of death or life in prison for possession of a firearm in furtherance of a drug trafficking conspiracy in which death results and a maximum of life imprisonment in prison for using, brandishing, and discharging a firearm during a drug trafficking crime. Beasley, Lawson, Jamison, Watson, Plummer, and Brown also face a maximum of 20 years in prison for each count of distribution of heroin, powder cocaine and/or crack cocaine. Rich also faces a maximum of 5 years in prison for distribution of marijuana. The defendants are expected to have an initial appearance later today 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.

 

United States Attorney Rod J. Rosenstein commended the ATF and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys David Metcalf and Robert R. Harding, who are prosecuting the case.

 

Baltimore, Maryland – On April 25, 2017, U.S. District Judge James K. Bredar sentenced Delray Jamare Randall, a/k/a “Black,” age 35, of Odenton, Maryland to eight years in prison followed by two years of supervised release for engaging in the business of dealing in firearms and conspiracy.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Commissioner Kevin Davis of the Baltimore Police Department; Acting Chief, Major Scott Baker of the Annapolis Police Department; and Chief Tim Altomare of the Anne Arundel County Police Department.

 

“Experience shows us that illegally trafficked firearms are destined to wind up in the hands of criminals and be used in acts of violence that devastate our communities,” said ATF Special Agent in Charge Daniel L. Board. “ATF is the federal agency responsible for supporting and regulating the legal flow of firearms through commerce, but when we become aware of individuals who seek to illegally introduce firearms into our neighborhoods, which may eventually be used to perpetrate violence… make no mistake, we will take action.”

 

During his guilty plea, Randall admitted that from late 2014 and up to December 12, 2015, Randall and another person engaged in the business of dealing in firearms without a license, and that each participated in and assisted the other’s firearms activities. Randall also admitted that he agreed and conspired with other persons to engage in the business of dealing in firearms without a license.

 

In the days leading up to December 12, 2015, an undercover informant, acting on instruction from federal investigators, maintained communication with Randall. The informant communicated to Randall that he had firearms for sale and would be in the Baltimore area on December 12, 2015. Randall expressed an interest in meeting with the informant and made statements (in both text message format and during recorded phone voice calls) that Randall was lining up other persons who were either going to purchase firearms from Randall or whom Randall would introduce to the informant for the purpose of engaging in firearms purchases. Randall stated that he was lining people up for such transactions and inquired with the informant about the availability and price of firearms.

 

On December 12, 2015, Randall came to a hotel and met with the informant. Unknown to Randall, the room in which Randall and the informant met was under law enforcement surveillance, and Randall’s interactions and conversations were video and audio-recorded. During the meeting, Randall examined various firearms and purchased and made a down payment for four firearms. Randall was immediately arrested before he left the room.

 

While he was in the hotel room, Randall took photographs of the firearms with his cell phone, and sent photographs of those firearms to his customers. Randall engaged in text communications with his own customers in which he discussed possible prices for which the customers could purchase the firearms. Randall knowingly possessed the aforementioned firearms.

 

United States Attorney Rod J. Rosenstein commended the ATF and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael Hanlon and Philip Selden, who prosecuted the case.

 

Baltimore, Maryland – On Friday April 21, 2017, U.S. District Judge George L. Russell, III sentenced Yasmine Young, age 29, of Baltimore, Maryland to 66 months in prison, followed by five years of supervised release for bank fraud and narcotics conspiracy. Judge Russell also ordered Young to pay $326,487.11 in restitution.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.

 

According to her plea agreement, from July 2014 through October 2014, while employed at a financial institution, Young used her employee access to target customer accounts with high dollar balances. Without permission and a business purpose, she printed screen shots of the account holders’ personal information and copies of checks that had previously been written and processed. Young provided these screen shots to co-schemers.

 

Using the screen shots provided by Young, co-schemers called into the financial institution’s banking system and were able to bypass the verification protocols. The co-schemers ordered checks from these accounts and forged them in order to cash them or deposit them into various accounts. The financial institution identified 22 victims, all of whom had high dollar balances and all of whom had fraudulent checks drawn on their accounts. The scheme has resulted in a loss to the financial institution of over $300,000.

 

While awaiting trial on this charge, from November 2015 through January 2016, Young and co-defendant Kaemarr Antonio Cox with others conspired to distribute marijuana. On January 12, 2016, DEA in Maryland received information from DEA in San Diego, California regarding a suspicious United Parcel Service (UPS) parcel that was in route for an apartment in Windsor Mill, Maryland.

 

On January 14, 2016, a detective interdicted the parcel where a narcotics dog alerted to the parcel for illegal narcotics. DEA found 11 pounds of marijuana inside. The parcel was repackaged and delivered by an undercover detective to Windsor Mill where Young accepted the package. Later that day DEA knocked and announced their presence at the door to execute a state search and seizure warrant. Young came to the front window, but did not open the door. Forced entry was made and members of the entry team took Young and Cox, the only subjects in the residence into custody.

 

Cox advised that the marijuana that was delivered was his. At the time, Young was on release post-indictment and pending trial on the federal fraud charges. Young’s release conditions required that she live in the Windsor Mill apartment where the search warrant was conducted and that she not commit any new crimes. Young subsequently had her release conditions violated, was detained in federal prison and pled guilty to fraud and aggravated identity theft charges in April 2016.

 

Cox pled guilty to narcotics conspiracy and brandishing a weapon in furtherance of a drug trafficking crime and is scheduled to be sentenced by Judge Russell on July 14, 2017 at 9:30 a.m.

 

United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Drug Enforcement Administration, the Baltimore City Police Department, and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lauren Perry and Sandra Wilkinson, who prosecuted the case.

Baltimore, Maryland – On April 21, 2017, a federal jury convicted Benjamin Bland, age 41, of Richmond, Virginia, of conspiracy to commit wire fraud, wire fraud, and social security fraud.

 

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

 

According to evidence presented at his five day trial, Bland was the owner and registered agent of a company headquartered in Richmond, Virginia that hosted a website that purported to provide individuals with a legal means to start a new credit file through the issuance of a “secondary credit number.” Bland falsely told his customers that these “secondary credit numbers” were “100% legal” and issued “by lawyers.” However, Bland had invented the term “secondary credit number,” there were no lawyers involved with his business, and the “secondary credit numbers” were actually social security numbers that had been previously issued to other individuals, predominantly children.

 

According to the trial evidence, one of the primary purposes of the fraud scheme was to obtain bank loans, private loans, auto loans, and lines of credit using the stolen social security numbers, counterfeit social security cards, and personal identity information (“PII”) of actual persons to create a false (improved) credit score.

 

The trial evidence also established that Bland obtained and sold the misappropriated social security numbers to Michael Westbrook and at least 20 others located throughout the country, whom Bland called his “affiliates.” These “affiliates” in turn sold those numbers to buyers. For an additional fee, Bland would provide fraudulent social security cards bearing the stolen number and the name of the “buyer.” Bland also provided fraudulent driver’s licenses to the “customers.” These items were provided so that “customers” could defraud banks and other lenders by drawing upon lines of credit using the stolen social security numbers.

 

According to the trial evidence, Bland compromised the social security numbers of at least 1,500 people during the conspiracy. The majority of the stolen social security numbers belonged to children all over the United States.

 

A co-conspirator, Michael Westbrook, also pled guilty to conspiracy to commit wire fraud and aggravated identity theft. He is awaiting sentencing.

 

Bland faces a maximum sentence of 20 years in prison on each of the wire fraud counts and a maximum of 10 years in prison on each of the social security fraud counts. Senior U.S. District Judge J. Frederick Motz has scheduled sentencing for July 14, 2017 at 10:00 am.

 

United States Attorney Rod J. Rosenstein commended HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lauren Perry and Aaron Zelinsky, who are prosecuting the case.

 

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael L. Fischer, age 42, of Toledo, Ohio, today to 10 years in federal prison, followed by 20 years of supervised release, for travel with intent to engage in illicit sexual conduct. Fisher traveled from Ohio to Maryland to engage in sexual activity with a fifteen-year-old girl.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation - Baltimore; Special Agent in Charge Stephen D. Anthony of the Federal Bureau of Investigation – Cleveland, Ohio; Commissioner Kevin Davis of the Baltimore Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

 

According to his plea agreement, in the summer of 2014, Fischer and the victim met online and communicated using chat rooms, social media, and telephone during the summer and fall of 2014. The victim told Fischer that she was 15 years old from their earliest communications, and prior to Fischer meeting the victim in person. In August and early September 2014, Fischer travelled from Ohio to Maryland and engaged in sexual activity with the girl. On September 19, 2014, Fisher and his wife travelled from Ohio to Maryland and picked the girl up near her home in the early morning of September 20, 2014. Fischer and his wife then transported the girl to Fischer’s home in Toledo. At the time, Fisher’s wife was not aware that Fisher had been engaging in sexual conduct with the victim. Between September 20 and 26, 2014, Fischer engaged in sexual conduct with the victim in Ohio.

 

On September 23, 2014, the Fischers were contacted by law enforcement regarding the victim’s whereabouts. According to his plea agreement, prior to meeting with law enforcement, the Fischers dropped the victim off at a store in Toledo. Fischer lied to law enforcement officers that he did not know where the victim was and suggested to law enforcement that he believed she may be in Florida. After the meeting, Fischer transported the victim from Ohio to Brighton, Michigan, and left the victim with one of his relatives. She was recovered by law enforcement officers two days later.

 

The 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.

 

The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children.

 

United States Attorney Rod J. Rosenstein commended the FBI Baltimore, Cleveland, Ohio and Detroit, Michigan Field Offices, the Baltimore Police Department, Maryland State Police, and the Toledo Child Exploitation Task Force for their work in the investigation, and thanked the Brighton, Michigan Police Department, the Livonia, Michigan Police Department and the Michigan State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Ayn B. Ducao, who prosecuted the case.

Baltimore, Maryland – Jason Wayne Hines, age 37, formerly of Cumberland, Maryland, pleaded guilty today to sexually exploiting a child to produce child pornography.

 

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg.

 

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

 

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

 

As part of his plea agreement, Hines must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

 

Hines and the government have agreed that if the Court accepts the plea agreement Hines will be sentenced to between 17 ½ and 25 years in prison, followed by a lifetime of supervised release. U.S. District Judge Richard D. Bennett has scheduled sentencing for July 18, 2017, at 3:00 p.m.

 

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

 

United States Attorney Rod J. Rosenstein commended HSI-Baltimore, Maryland State Police, and Allegany County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Sandra Wilkinson, who are prosecuting the federal case.

Baltimore, Maryland – Four Baltimore men, all members of a Baltimore drug trafficking conspiracy pleaded guilty this week to conspiring to distribute crack cocaine. Tarik Brooks, age 41, pleaded guilty today; Jermaine Epps, age 42, pleaded guilty on April 4, 2017, and Terry Downs, age 24, and Theodore Smith, age 41, pleaded guilty on April 3, 2017.

 

After their guilty pleas, U.S. District Judge James K. Bredar sentenced Epps and Downs to 108 months in prison, and 60 months in prison, respectively, each followed by four years of supervised release. Brooks was sentenced to 151 months in prison, followed by five years of supervised release.

 

The guilty pleas and sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Commissioner Kevin Davis of the Baltimore Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police Department.

 

According to their plea agreements, the defendants were part of a drug distribution conspiracy that operated an open-air drug market near the 600 block of Glenwood Avenue in the Woodbourne-McCabe neighborhood in Baltimore. Members of the conspiracy distributed the organization’s signature orange-top vials of crack cocaine in that location, as well as other locations in Baltimore. Members of the conspiracy purchased powder cocaine, which they converted to crack cocaine. Some members of the conspiracy also sold large quantities of heroin. The conspirators used residences in and around North Baltimore as stash houses to cut, package and store these narcotics. Some members of the conspiracy routinely carried firearms and committed acts of violence in furtherance of the organization’s activities.

 

Epps and Downs were street lieutenants of the organization’s open-air drug market, and oversaw the sale of crack cocaine to customers. Smith was in charge of overseeing and managing the distribution of crack cocaine at the street shop, collecting proceeds from sales, making sure the organization had a sufficient supply of cocaine, and cooking powder cocaine into crack. On April 28, 2016, Downs was overheard by law enforcement requesting more “shirts” from a co-defendant, which is code for packages of orange-top vials of crack cocaine. Downs and the co-defendant were then recorded by law enforcement meeting outside a nearby stash house where they exchanged a bag containing crack cocaine. On June 1, 2016, an undercover officer approached Epps to purchase 12 vials of crack cocaine. Epps arranged for the undercover officer to purchase the crack cocaine from a lower level street hitter, who Epps supervised.

 

Brooks was in charge of packaging orange-top vials of crack cocaine for the organization, which were then distributed to street lieutenants who oversaw the street shop and open-air drug market. Law enforcement intercepted text messages in which Brooks discussed the number of vials of crack cocaine that were ready to be distributed. In addition, law enforcement intercepted text messages Smith exchanged with another conspirator discussing purchasing cocaine for the organization for $38,000 per kilogram.

 

On June 16, 2016, law enforcement seized over 1,100 orange-top vials of crack cocaine from a stash house on Craig Avenue that was used by the organization. On September 1, 2016 law enforcement seized narcotics from another stash house on Reese Street, including 130 grams of raw heroin, 15 grams of crack cocaine, 36 grams of diluted heroin, and 20 orange-top vials of crack cocaine. That same day, law enforcement seized 230 grams of heroin from a bar operated by Smith and used by the organization to conduct drug trafficking operations. Also on September 1, 2016, law enforcement seized a loaded .40 caliber handgun from Epps’ residence that was purchased by, and registered to, Epps’ girlfriend.

 

Co-defendant Asante Leroy Marshall, age 23, of Baltimore, previously pleaded guilty and was sentenced to 50 months in prison.

 

Judge Bredar has scheduled sentencing for Smith on August 15, 2017 at 10:00 a.m.

 

United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – A federal criminal complaint was filed today charging Maryland State Senator Nathaniel Thomas Oaks, age 70, of Baltimore, Maryland, with honest services wire fraud for allegedly accepting illegal payments in exchange for using his official position or influence to benefit an individual on business-related matters. Oaks’ initial appearance is scheduled today at 4:00 p.m. before U.S. Magistrate Judge Mark J. Coulson in U.S. District Court in Baltimore, Maryland.

 

The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.

 

According to the affidavit filed in support of the criminal complaint, 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 affidavit, on March 16, 2016, the CHS discussed paying Oaks for his assistance. The affidavit alleges that, in the Spring and Summer of 2016, Oaks knowingly sent two letters on his official Maryland House of Delegates letterhead supporting the Project. The letters allegedly contained false statements about Oaks’ relationship to the CHS and Oaks’ involvement and knowledge of the Project. The CHS paid Oaks $10,300 for his assistance.

 

Further, the affidavit alleges that September 22, 2016, the CHS made another $5,000 cash payment to Oaks in exchange for Oaks filing a bond bill with the Maryland Department of Legislative Services (DLS) requesting $250,000 for the Project, which Oaks filed later that same day. On November 21, 2016, the CHS received a forwarded email from Oaks that had been sent to Oaks by a DLS employee, attaching a 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.

 

If convicted, Oaks faces a maximum sentence of 20 years in prison for honest services wire fraud.

 

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.

 

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kathleen O. Gavin and Leo J. Wise, who are prosecuting the case.

 

Greenbelt, Maryland – A federal grand jury has indicted Kyle Stephen Thompson, age 31, of Burtonsville, Maryland, on 18 counts of production of child pornography. The indictment was returned late on April 5, 2017.

 

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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.

 

According to the indictment, from May 9, 2015, to January 28, 2017, Thompson allegedly engaged in sexually explicit conduct with three minors, in order to produce visual depictions documenting the abuse.

 

Investigators believe that Kyle Thompson may have befriended women who have young girls in order to gain access to those girls. Anyone who may have information regarding inappropriate or criminal activity committed by Thompson, or possible victims of Thompson, is asked to contact the Baltimore FBI at 410-265-8080.

 

If convicted, Thompson faces a mandatory minimum of 15 years in prison and up to 30 years in prison for each of the 18 counts of production of child pornography. Thompson is currently detained on related state charges. Thompson’s initial appearance in U.S. District Court in Greenbelt has not yet been scheduled.

 

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

 

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

 

United States Attorney Rod J. Rosenstein commended the FBI, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O'Connell Hayes and Kristi N. O’Malley, who are prosecuting the federal case.

Greenbelt, Maryland – Jamal Ulysses Green, age 24, of no fixed address, pleaded guilty today to a commercial robbery and to using, brandishing and discharging a firearm during a crime of violence.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief David B. Mitchell of the University of Maryland Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

 

According to his plea agreement, on September 6, 2016, Green and a co-conspirator robbed the University of Maryland University College Inn and Conference Center (UMUC). Green, who was armed and was not wearing a mask, approached a security guard and advised the guard that he was making a delivery to UMUC. The guard followed Green to the loading dock, where Green grabbed the security guard. The security guard fought back. During the altercation Green fired his gun, but did not strike the guard.

 

Shortly after that, Green’s co-conspirator, wearing a mask and brandishing a handgun, entered the security office of UMUC demanding money and ordering the occupants to the ground. During this time, the security guard involved in the physical altercation with Green on the loading dock returned to the Security Office. As the security guard returned to the Security Office, the co-conspirator appeared in the doorway and fired his gun at the security guard, striking the security guard in the upper left arm, with the bullet going through his/her arm, and lodging next to the security guard’s spine. The injury to the security guard required emergency medical attention. A few seconds later, Green entered the security office. Green and his co-conspirator took three safes from the security office, and fled the area.

 

Prince George’s County Police Department’s (PGPD) K-9 Unit and Air One helicopter unit responded to 911 emergency calls, and performed a search for the two suspects. Several hours later, a K-9 unit tracked to a wood line directly across the street from the UMUC loading dock. PGPD K-9 found Green in the woods adjacent to the wood line, hiding in overgrown shrubs and trees. Green matched the physical description of the unmasked person seen in the UMUC security video, and was wearing clothing similar in color as one of the suspects who committed the robbery.

 

Two of the safes taken from the UMUC Security Office were located in the immediate vicinity of where Green was hiding. A third, larger safe, that Green was seen on video carrying out of the security office, was found near the loading dock area concealed amongst trees, next to a.40 caliber semi-automatic pistol. The pistol had a magazine in it, and was loaded with seven rounds of .40 caliber ammunition. The caliber of the firearm was the same as the shell casing found by the loading dock where the security guard was involved in the physical altercation with Green. A forensic analysis of the magazine recovered from the firearm revealed a fingerprint that matches Green’s fingerprint.

 

Green was arrested and subsequently charged in Prince George’s County District Court with several criminal offenses. Green was detained, at the Prince George’s County Correctional Center (PGCCC). By PGCCC policy, any calls made to or from inmates are recorded. Prior to any conversation, the inmate and the person calling the inmate are advised that the conversation is being recorded. On September 7, 2016, Green made a recorded call to an unidentified male during which he admitted that he fired his gun, but did not hit anybody.

 

Green faces a maximum sentence of 20 years in prison for the robbery, and a mandatory 10 years and up to life in prison, consecutive to any other sentence imposed, for using, brandishing and discharging a firearm during a crime of violence. U.S. District Judge George J. Hazel has scheduled sentencing for July 12, 2017 at 2:00 p.m.

 

United States Attorney Rod J. Rosenstein commended the FBI, University of Maryland Police Department, Prince George’s County Police Department, and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Nicolas A. Mitchell, who prosecuted the case.

Baltimore, Maryland – David Odom, age 53, of Chicago, Illinois pleaded guilty today to a wire fraud conspiracy arising from a scheme to defraud lenders from February to August 2011 in order to obtain financing for a movie. Co-conspirator Darryl Wesley Clements, age 50, of Detroit, Michigan, previously pleaded guilty to wire fraud conspiracy. Rodney Patrick Dunn, age 40, of Elkridge, Maryland, pleaded guilty to receipt of a bribe by a bank official.

 

The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Eric M. Thorson, Inspector General for the Department of the Treasury.

 

According to the plea agreements for the defendants, Rodney Dunn was a vice president and a bank loan officer. In 2009, Dunn met Clements. Dunn believed that Clements was a broker for cash lenders and attempted to raise loan funds through Clements and other loan brokers for an athletic complex in the Newport News area of Virginia. Dunn subsequently agreed that if he received a telephone message where he did not recognize the caller’s name, he would text or telephone Clements with the caller’s information and permit Clements to return the telephone call posing as “Rodney Dunn, bank officer.” Dunn believed he would obtain from Clements valuable contacts with professional athletes that would catapult his career change into sports agency. Clements also promised to pay Dunn for his assistance.

 

David Odom owned CityScope Productions, LLC, and was seeking financing to produce the movie “Season Tickets.” Odom met Clements through an attorney in New York. Clements created documents falsely stating that CityScope had permanent financing of $13 million for the movie from Bridge Capital and The Shah Group, and that the funds were held in escrow at a bank in Baltimore, where Dunn was employed. In fact, there was no such financing, and there were no escrow funds held at the bank. The false documents further stated that CityScope needed a $2.5 million bridge loan to complete the financing for the movie.

 

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

 

Dunn communicated by telephone with Clements when a prospective lender called Dunn at the bank to verify the funds in the escrow accounts, so that Clements could return the telephone call, pose as Dunn, and verify the existence of the escrow accounts and their balances. Odom sought financing from multiple lenders including an unsuccessful attempt thwarted by the prospective lender’s local counsel in Baltimore. Among other things, Clements created a fictitious bank statement for a purported escrow account which Odom admitted he sent to a prospective lender.

 

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

 

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

 

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

 

Odom and Clements face a maximum sentence of 20 years in prison at their sentencings, which U.S. District Judge George L. Russell III has scheduled for July 27, 2017 at 11:30 a.m. and April 28, 2017 at 9:30 a.m., respectively. Rodney Dunn faces a maximum sentence of 30 years in prison at his sentencing, which Judge Russell has scheduled for June 9, 2017, at 9:30 a.m.

 

Today’s announcement is part of the efforts undertaken in connection with the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’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.

 

United States Attorney Rod J. Rosenstein commended the FBI, SIGTARP, and the Treasury Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Joyce K. McDonald and Rachel M. Yasser, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Adebola Opeyemi Adeniyi, age 32, a Nigerian citizen living in Baltimore, today to 42 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud in a stolen identity refund fraud (SIRF) scheme. Adeniyi admitted that the conspirators defrauded the IRS by using the personal identifying information (PII) of individual victims to obtain over $655,000 in fraudulent tax refunds. Judge Motz also entered an order requiring Adeniyi to pay restitution of $550,000.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.

 

According to his plea agreement, from October 17, 2013 through March 17, 2015, Adeniyi and his co-conspirators filed false tax returns, arranging for the electronic transfer of the fraudulently obtained tax refunds to prepaid debit cards. Adeniyi also obtained victims’ account information from the 2013 Target Store data breach, which he and other participants in the scheme used to re-encode the magnetic strips of payment cards in their possession. Adeniyi and other participants used the debit cards loaded with SIRF funds and the re-encoded payment cards to purchase money orders, which the conspirators cashed at check cashing businesses. Adeniyi shared the cash proceeds with other participants in the scheme. The total value of money orders purchased with SIRF funds and cashed by Adeniyi or at his direction was at least $665,635. The total value of money orders purchased with account information compromised during the Target Store data breach and cashed at Adeniyi’s direction was at least $80,500. At least $100,874 in SIRF funds were loaded onto prepaid debit cards for which co-conspirator Mayowa Towobola provided account numbers and security codes to Adeniyi and other participants in the scheme, and the total value of fraudulently obtained money orders cashed by Towobola was at least $58,524. In text messages found on Adeniyi and Towobola’s cell phones, seized during searches executed on July 21, 2015, they discuss loading a total of at least $1,237,358 in fraudulently obtained funds onto various prepaid debit cards.

 

Further, Adeniyi admitted that he used some of the money orders obtained from the two schemes to: purchase vehicles at auctions in Maryland, and arrange for their shipment to purchasers in Nigeria; and to engage in currency exchange transactions, exchanging U.S. currency for Nigerian currency at competitively low rates.

 

Co-conspirators Mayowa Olabiyi Towobola, age 26, a resident of Parkville, Maryland, and Hafis Omowonuola Oladokun, age 39, of Owings Mills, Maryland, previously pleaded guilty to their involvement in the wire fraud conspiracy and were sentenced to 33 months in prison, and two years in prison, respectively. Judge Motz also ordered Towobola to pay restitution $159,398. Adeolu Adeola Solabu, age 25, of Baltimore, also pleaded guilty and is scheduled to be sentenced on April 14, 2017, at 11:00 a.m.

 

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 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.

 

United States Attorney Rod J. Rosenstein commended HSI-Baltimore, IRS-CI and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew J. Maddox and Paul E. Budlow, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Charles Ulysses Bowman-Bey, a/k/a “Big Flock,” age 24, of Upper Marlboro, Maryland, today to 45 months in prison, followed by three years of supervised release for being a felon in possession of firearms and possession with intent to distribute Alprazolam.

 

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

 

“Charles Bowman-Bey realized too late that ‘the streets don’t love anybody,’ as he wrote in his letter to the world, apologizing for his life of crime and his music videos glorifying drug dealing and gang violence,” said U.S. Attorney Rod J. Rosenstein. “His letter should be required reading for young drug dealers.”

 

According to his plea agreement, on October 19, 2016, law enforcement executed a search warrant at Bowman-Bey’s residence and recovered: a loaded 5.7x28mm semiautomatic handgun, equipped with a laser sight; a .40 caliber semiautomatic handgun; a .380 caliber semiautomatic handgun; rounds of ammunition of various calibers; a loaded drum-style extended magazine; a .40 caliber extended magazine; $5,561 in cash; 94 tablets of Alprazolam, as well as some ground-up Alprazolam; and a digital scale.

 

Bowman-Bey admitted that he possessed the Alprazolam to distribute to others and that the $5,561 in cash was the proceeds of his drug dealing. Bowman-Bey also admitted possessing the firearms in furtherance of his drug trafficking, as well as for protection. Bowman-Bey had a previous felony conviction and was prohibited from possessing firearms and ammunition.

 

United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael T. Packard and Thomas J. Sullivan, who prosecuted the case.

Baltimore, Maryland – Jason David Young, a/k/a Bird, J Bird, and Chris, age 33, of New Carrollton, Maryland, pleaded guilty today to illegal possession of firearms and to enticing and coercing women to travel across state lines to engage in prostitution.

 

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Gary Gardner of the Howard County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Howard County State’s Attorney Dario Broccolino; and Prince George’s County State’s Attorney Angela D. Alsobrooks .

 

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

 

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

 

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

 

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

 

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

 

Young and the government have agreed that if the Court accepts the plea agreement Young will be sentenced to 20 years in prison, followed by five years of supervised release. U.S. District Judge George L. Russell III has scheduled Young’s sentencing for June 16, 2017, at 2:00 p.m. Young has been detained since his arrest in October 19, 2015.

 

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

 

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

 

United States Attorney Rod J. Rosenstein commended HSI-Baltimore, Howard County, Prince George’s County and Montgomery County Police Departments, and the Howard County and Prince George’s County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein recognized the U.S. Marshals Service, Knox County (TN) Sheriff’s Office and Prince William County (VA) Police Department for their assistance and thanked Assistant U.S. Attorneys Zachary A. Myers and Patricia C. McLane, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jeffrey Jackson, age 51, formerly of Baltimore, Maryland today to seven years in prison, followed by five years of supervised release, for the armed robbery of a post office.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division.

 

“Although these types of crimes are rare, our employees and customers can rest assured that Postal Inspectors will always continue to pursue justice for criminals who would jeopardize their safety,” said Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division. He continued, “We extend sincere gratitude to our law enforcement partners who assisted in bringing this investigation to a successful resolution.”

 

According to his plea agreement, on August 3, 2011, Jackson and another man robbed the Perry Point U.S. Post Office in Cecil County, Maryland at gunpoint. One robber vaulted the counter and ordered the Postmaster to open the cash drawer. After taking cash from the drawer, both robbers forced the Postmaster to open the safe, and the robbers removed additional cash and money orders. The Postmaster was forced into a utility closet and instructed to stay there for five minutes or the robbers would kill the Postmaster. Postal inspectors determined that in addition to cash, approximately 60 blank postal money orders were stolen.

 

Many of the postal money orders were negotiated at locations in and around Baltimore. Postal Inspectors interviewed several individuals who negotiated the stolen and altered postal money orders. One of those individuals admitted receiving the stolen postal money orders from “Jeff,” whom the individual identified in a photograph as Jeffrey Jackson. Jackson provided that individual with details about the robbery that could only have been known to someone that was at the robbery.

 

An eyewitness to the robbery subsequently identified Jackson in a photo lineup. That person had come in to the Post Office during the robbery. There was no one behind the counter. A minute later, Jackson came out of a back room and told the witness to come back later because the Postmaster was “too busy to help right now.” The eyewitness left and immediately went to the Perry Point Veterans Administration (VA) Police Department to report the suspicious activity. Postal Inspectors and Perry Point VA Police responded to the robbery.

 

After Jackson’s arrest on unrelated state burglary charges, Jackson contacted police to say he had information about the postal robbery at Perry Point. Jackson was interviewed by Postal Inspectors and provided non-public information about the post office robbery that could only have been known by the robbers. As a result of the robbery, the loss to the USPS was approximately $19,700 in cash and negotiated stolen postal money orders.

 

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service for its work in the investigation and thanked the VA Office of Inspector General, Perry Point VA Police Department, Perryville Police Department, and Maryland State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson, Paul E. Budlow and Rachel Miller Yasser, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Rodney Levon Davis, age 47, of Upper Marlboro, Maryland, today to 121 months in prison, followed by three years of supervised release, for robbery, and for using, brandishing, and discharging a firearm during the robbery of a fast food restaurant in Prince George’s County.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

 

According to his plea agreement, on December 24, 2014, Davis approached a fast food restaurant on Landover Road in Hyattsville, Maryland wearing a hooded jacket and an “Iron Man” mask. At the entrance, Davis brandished a revolver at an employee. The victim stated that he did not have a key to the safe and that the manager was not present. Davis shoved the revolver into the victim’s back and threatened to shoot the victim if the victim didn’t comply with his demands. Davis then hid behind a brick wall and waited for the manager to return to the restaurant.

 

Once the manager arrived, Davis used the revolver to enter the restaurant and directed the victim, manager and several other employees into the manager’s office. Davis demanded that the manager open the safe, from which Davis stole money.

 

While the employees were in the manager’s office, Davis discharged the revolver. He also sprayed lighter fluid on the wall and floor, and ignited the lighter fluid. Davis and the employees rushed out of the office to the front of the restaurant. Davis removed additional money from the cash registers and fled. The manager chased after Davis and Davis fired at least two shots, which struck the side of the restaurant.

 

Davis got into his vehicle and drove away. Prince George’s County police attempted to stop Davis’ vehicle, but Davis led them on a high speed chase. Eventually, Davis stopped his vehicle in the middle of the intersection of Marlboro Pike and Nova Avenue in Prince George’s County. Officers arrested Davis and seized the “Iron Man” mask, a bag containing $2,095, a revolver which contained three spent cartridges and three live rounds, and bottles of lighter fluid. Approximately $73 stolen from the restaurant was not recovered.

 

Davis subsequently admitted that he robbed the restaurant because he was upset that his employment with that restaurant had been terminated.

 

United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Menaka S. Kalaskar, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Harry Crawford, age 57, of Baltimore, Maryland, on March 28, 2017, to 12 years in prison, followed by three years of supervised release. Crawford previously pleaded guilty to collection of a debt by extortionate means from victim David Wutoh; conspiracy to commit health care fraud; and conspiracy to defraud the United States, for not reporting income from the health care fraud scheme on his taxes.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief James W. Johnson of the Baltimore County Police Department.

 

According to his plea agreement, Crawford owned, and was President and CEO of RX Resources and Solutions (RXRS), a durable medical equipment provider located in Randallstown, Maryland. Beginning in 2012, co-defendant Matthew Hightower worked as a delivery driver for RXRS.

 

According to his plea agreement, in 2013 Crawford approached Hightower to facilitate a loan to Crawford’s longtime friend, David Wutoh. Wutoh promised Hightower an enormous rate of return. In exchange for $15,000 in cash, Wutoh would pay Hightower $20,000 within a short period of time. Crawford also loaned Wutoh at least $6,000 of his own money. Wutoh did not pay either man back the money he had borrowed, as a result, from May through September 2013, Crawford and Hightower used cellular telephones and electronic messaging to harass, threaten, and coerce Wutoh to repay the loans.

 

For example, according to the plea agreement, on June 7, 2013, Wutoh sent an electronic message to Crawford stating, “Battery dying.” Crawford responded, “You will be also. Stop playing with people’s money.” On September 13, 2013, Crawford sent an electronic message to Wutoh telling him to put him in his will. Wutoh responded to Crawford, “you are.” As of September 21, 2013, Wutoh had not repaid Crawford or Hightower all of the money he borrowed from them.

 

According to Crawford’s plea agreement, on the evening of September 21 and the early morning hours of September 22, 2013, Hightower traveled from West Baltimore to East Baltimore County in the area of Wutoh’s home. At about 2:50 a.m. on September 22, 2013, Wutoh was shot in the living room of his home, by an assailant who fired multiple shots through the front window. According to the plea agreement and evidence presented in court, moments later, Hightower answered a phone call on a phone registered in another person’s name. Records showed the phone was located in close proximity to the house where Wutoh was murdered.

 

During interviews conducted with Crawford by law enforcement officers investigating the murder, Crawford never disclosed Hightower’s outstanding loan to Wutoh, nor Crawford’s efforts to have Wutoh repay it. When asked directly whether Hightower had any reason to harm Wutoh, Crawford said, “No.”

 

Co-defendant Matthew Hightower, age 34, also of Baltimore, was convicted of extortion and the murder of David Wutoh on September 22, 2016, after a seven-day trial and sentenced to 380 months in prison. Health care fraud charges remain pending and a trial date has not been set.

 

Further, Crawford admitted that from 2010 through May 2014, he conspired with co-defendant Elma Myles, who was a biller at RXRS, to defraud Medicaid and other health benefit programs by having RXRS bill for adult incontinent supplies (diapers) that were never provided, overcharge for supplies actually delivered, and bill for supplies that were unneeded and had not been prescribed by a physician. Myles and Crawford lived together and were once domestic partners.

 

According to their plea agreements, Crawford and Myles used the personal identity information of clients to submit fraudulent claims to Medicaid and other health care benefits programs for disposable medical supplies that were not delivered to the beneficiary. In addition, Crawford and his co-conspirators delivered medical supplies to beneficiaries who did not need the supplies and whose physicians had not prescribed the supplies, even after the beneficiaries reported that they did not want or need the supplies. According to the plea agreement, a co-conspirator would sign or have someone else sign delivery tickets when deliveries had not actually taken place so that the records of RXRS would falsely document the delivery.

 

On February 4, 2014, federal agents executed a search warrant at RXRS and Crawford and Myles’s home. Agents recovered almost $60,000 in cash from a clothes bin beside the bed in Crawford’s room, and boxes of patient files from the house. A review of bank records shows that Crawford used the proceeds of the fraud directly for the accounts of RXRS, using a significant portion of the proceeds for his personal benefit, including mortgage payments, personal travel, restaurants, and social events. In addition, Myles had made a makeshift closet containing tens of thousands of dollars’ worth of clothing and designer shoes, including apparel for her then three-year-old granddaughter who competed in beauty pageants. From RXRS agents recovered emails documenting a criminal plan at the inception of RXRS, and fraudulent delivery tickets from December 2013 and January 2014.

 

An analysis of RXRS billing of Medicaid from 2007 through 2014 establishes that the loss to Medicaid just for incontinent supplies billed but not provided is approximately $1.2 million. A review of bank records shows that Crawford and Myles used the proceeds of the fraud directly for the accounts of RXRS, using a significant portion of the proceeds for their personal benefit, including clothing, personal cars, mortgage payments, payments to Myles’ daughter and to a business entity set up for the benefit of Myles’ daughter, to a private school for their granddaughter, personal travel, restaurants, and hosting social events. Finally, Crawford admitted that he conspired to defraud the United States by not reporting or paying taxes on the proceeds of the fraud. The IRS determined that Crawford owes $102,782.17 in federal taxes and $25,000 for state taxes for tax years 2010 through 2013. Judge Garbis ordered Crawford to pay restitution in those amounts.

 

On March 2, 2017, Judge Garbis sentenced Elma Myles, age 52, of Baltimore, to four years in prison, in connection with her role in a health care fraud scheme, aggravated identity theft, and conspiracy to defraud the United States for failing to file income tax returns. Judge Garbis also ordered Myles to pay restitution of $1,207,585.38 to Medicaid.

 

United States Attorney Rod J. Rosenstein commended the HHS-OIG, IRS, and Baltimore County Police Department for their work in the investigation, and thanked the Maryland Attorney General’s Office Medicaid Fraud Control Unit for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky, Judson T. Mihok, and Sandra Wilkinson, who are prosecuting the case.

 

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Muhammad Sarmad, age 41, of Nottingham, Maryland, to 18 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. At the sentencing on March 27, 2017, Judge Bennett also ordered that Sarmad pay restitution of $3,550,662.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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 food stamp program can be exploited by criminals like Muhammad Sarmad, who take advantage of the fact that the Department of Agriculture trusts retailers to actually provide food in return for taxpayer money,” said U.S. Attorney Rod J. Rosenstein.

 

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.

 

Sarmad, co-defendant Mohammad Irfan, and other family members owned and/or operated 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. All of the stores were authorized to accept SNAP, except the M&A Mart. According to their plea agreements, from October 2010 through at least July 2016, Sarmad, Irfan, and their co-conspirators exchanged EBT benefits for cash, in violation of the food stamp program rules. Sarmad, Irfan, and their co-conspirators 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. Since the M&A Mart was not authorized to accept SNAP, Sarmad or a co-conspirator would call one of the other stores to run the transaction at the other store and then hand out the cash at M&A Mart.

 

Sarmad, Irfan and their co-conspirators received instruction regarding the requirements and regulations of the food stamp program, including 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. Sarmad admitted that from October 2010 through August 2016, Sarmad and his co-conspirators obtained more than $3.5 million in payments for food sales that never occurred or were substantially inflated.

 

In addition to Sarmad and Irfan, nine other retail store operators have pleaded guilty to their roles in similar schemes to illegally redeem food stamp benefits in exchange for cash, and are awaiting sentencing. Three other defendants are scheduled to go to trial later this year.

 

Mohamad Irfan, age 59, of Baltimore, previously pleaded guilty to conspiracy to commit wire and food stamp fraud, and faces a maximum sentence of five years in prison. Judge Bennett has scheduled sentencing for Irfan on May 9, 2017 at 11:00 a.m. Irfan is detained pending sentencing.

 

United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Kathleen O. Gavin, who prosecuted Sarmad and Irfan.

Greenbelt, Maryland – A federal grand jury returned a second superseding indictment charging six men in connection with a conspiracy to participate in a racketeering enterprise known as the La Mara Salvatrucha, or MS-13. The indictment was returned on March 27, 2017 and charges the following defendants:
 

             Jose Augustin Salmeron-Larios, a/k/a Joseph Morales-Martinez, Angel Salvador Gutierrez,                 Yankee, and Kean, age 24, of Severn, Maryland;

Noe Coreas-Mejia, a/k/a Tsunami, age 20, of Langley Park, Maryland; Oscar Ernesto Delgado-Perez, a/k/a Indio and Complicado, age 28, of Gaithersburg, Maryland; Juan Carlos Espinal-Rapalo, a/k/a Chiki, age 19, of Gaithersburg;

Daniel Adonai Ramos-Romero, a/k/a Taylor Romero and Binga, age 20, of Gaithersburg; and

Kevin Henriquez-Chavez, a/k/a Loco and Crazy, age 22, of Washington Grove, Maryland.

 

All of the defendants are in custody.

 

The second superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief J. Thomas Manger of the Montgomery County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.

 

MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 cliques often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. In Maryland and the surrounding area, these cliques include Parkview Locos Salvatrucha (“PVLS”), Normandie Locos Salvatrucha (“NLS” or “Normandie”), Sailors Locos Salvatrucha Westside (“SLSW” or “Sailors”), Langley Park Salvatrucha (“LPS”), Weedoms Locos Salvatrucha (“Weedoms”), and Cabanas Locos Salvatruchas (“Cabanas”). To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controlla,” which translates to, “kill, steal, rape, control.”

 

MS-13 members and associates meet in their clique on a regular basis to discuss gang affairs and report on acts of violence committed by their members, with the goal of inciting and encouraging further violence. Any perceived indiscretions by members and associates or violations of rules are talked about at clique meetings and punishments or “violations” are issued. Violations often take the form of beatings by fellow members. More serious violations result in the issuance of a “greenlight.” A greenlight is an order and/or approval to kill.

 

According to the indictment, Salmeron-Larios was a member of the PVLS clique and a leader within MS-13 in Maryland. Corea-Mejia was a member and associate of the PVLS clique; Delgado-Perez was a member of the SLSW clique; and Espinal-Rapalo, Ramos-Romero and Henriquez-Chavez were members and associates of the Cabanas clique

 

The 11-count indictment alleges that from before 2015 through 2017, the defendants were members and associates of MS-13 who planned and committed murders, attempted murders and extortion. The defendants and other MS-13 members and associates agreed to purchase, maintain, and circulate weapons and firearms for use in criminal activity by MS-13 members. In addition, the defendants and other MS-13 members and associates received income from sources including extorting business persons, and drug distribution. Funds obtained through criminal activities were used for gang purposes such as obtaining weapons and providing support for MS-13 gang members, including those in prison in the United States and in El Salvador.

 

According to the indictment, on November 1, 2015, Espinal-Rapalo, Ramos-Romero, Henriquez-Chavez and another member of the Cabanas clique planned to kill a person that Espinal-Rapalo and other MS-13 members had previously robbed, because they believed the victim was associated with a rival gang. That same day, Espinal-Rapalo and Ramos-Romero lured the victim to a wooded area behind a school in Montgomery Village, where they each shot the victim, killing him.

 

The indictment further alleges that in November 2015, Salmeron-Larios and other MS-13 members and associates planned to kill an individual and lured that person to a location in Prince George’s County, under the guise that a female would be meeting the victim at that location. An MS-13 associate who was with Salmeron-Larios at the location attempted to kill the victim and another person on November 7, 2015. According to the indictment, on December 6, 2015, Coreas-Mejia and other MS-13 members and associates assaulted a victim as part of a disciplinary proceeding, where the victim was beaten by MS-13 members and associates while Coreas-Mejia counted. The indictment alleges that after the victim reported the assault to police, Coreas-Mejia and other MS-13 members lured the victim to a secluded area beneath an Interstate 495 overpass in the Silver Spring area, where they killed the victim. In June 2016, the indictment alleges that Delgado-Perez directed a MS-13 associate to lure a person to a wooded area in the Gaithersburg, Maryland, area of Montgomery County, where Delgado-Perez and MS-13 members and associates murdered the victim.

 

The indictment alleges that between January and December 2015, Coreas-Mejia and others extorted money from two victims, and from 2015 through 2016, Salmeron-Larios collected “rent” or extortion money from illegal businesses operating throughout Prince George’s County. Finally, Henriquez-Chavez is alleged to have threatened to kill a victim, and the victim’s family, if that person did not prove that they were not cooperating with law enforcement.

 

The defendants all face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise. Coreas-Mejia also faces life in prison for murder in aid of racketeering. All the defendants, except Delgado-Perez, also face a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering. Salmeron-Larios also faces: a maximum sentence of 10 years in prison each, for attempted murder in aid of racketeering, and for transfer of a firearm for use in a crime of violence; a mandatory 10 years in prison, consecutive to any other sentence, and up to life in prison, for using and carrying a firearm during a crime of violence; and a maximum of 20 years in prison for drug distribution conspiracy. Espinal-Rapalo and Ramos Romero each also face a maximum of 20 years in prison for conspiracy to use and carry a firearm during a crime of violence. Henriquez-Chavez also faces a sentence of 20 years in prison for witness tampering.

 

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

 

United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County Police Department, Montgomery County Police Department, Prince George’s County State’s Attorney’s Office, and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Montgomery County and Prince George’s County Departments of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Ray D. McKenzie, William D. Moomau and Lindsay Eyler Kaplan, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – Celvin Eulice Ramos-Meija, a/k/a “Cadejo,” age 21, of Columbia, Maryland, pleaded guilty today to conspiracy and attempted murder in aid of racketeering related to his membership in La Mara Salvatrucha, or MS-13.

 

The guilty plea announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief 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.

 

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

According to the plea agreement, from at least 2012 until at least 2016, Ramos-Mejia was a member and associate of the Sailors Locos Salvatrucha Westside (“SLSW,” or “Sailors”) clique of MS-13. In order to maintain and increase his position in MS-13, Ramos-Mejia admitted that he and other members and associates of MS-13 conspired to murder a victim that Ramos-Mejia and his co-conspirators had identified as a “chavala.”
 

Specifically, on June 6, 2016, Ramos-Mejia and other members and associates of MS-13 approached the victim in Greenbelt, Maryland. Ramos-Mejia made an MS-13 sign in the face of the victim, and then he and his co-conspirators began to attack the victim. Ramos-Mejia was armed with a knife and stabbed the victim during the attack. 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 ten days as a result of the attack.

 

Ramos-Mejia faces a maximum sentence of 10 years in prison each for the conspiracy, and for attempted murder in aid of racketeering. U.S. District Judge Peter J. Messitte has scheduled sentencing for June 22, 2017, at 9:30 a.m.
 

United States Attorney Rod J. Rosenstein and Acting Assistant Attorney General Kenneth A. Blanco commended HSI Baltimore, the Greenbelt and Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Rosenstein and Mr. Blanco thanked Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan, and Trial Attorney Francesca Liquori of the Justice Department’s Organized Crime and Gang Section, who are prosecuting the case.

A Columbia, Maryland, man pleaded guilty today to his participation in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including his participation in an attempted murder.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein 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.

Celvin Eulice Ramos-Meija, aka Cadejo, 21, Ramos-Mejia pleaded guilty before U.S. District Judge Peter J. Messitte in the District of Maryland to conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering.  Ramos-Mejia had been detained on related Maryland state charges since June 2016.  Sentencing is set for June 22, 2017.

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

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.  The defendant made an MS-13 sign in the face of the victim, and then he and his co-conspirators began to attack the victim.  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 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.  

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Joshua Francisco Miranda, age 29, of Waldorf, Maryland, today to eight years in prison, followed by five years of supervised release, for committing two bank robberies in March 2016. Judge Chuang also entered an order requiring Miranda to pay restitution of $7,800.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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, on March 23 and March 29, 2016, Miranda robbed banks in Accokeek and Fort Washington, Maryland, respectively. In each robbery Miranda entered the bank and gave the teller a note demanding $5,000. The notes also threatened that Miranda had a bomb which he would detonate if the teller did not comply with his demand. Surveillance footage and witness testimony showed that in each robbery Miranda had a wire coming out of one of his shirt sleeves. Miranda stole a total of $7,800 from the two banks. At the time of these robberies, Miranda was on parole and probation for three previous state robbery convictions.

 

United States Attorney Rod J. Rosenstein commended the FBI, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas M. Sullivan, who prosecuted the case.

Baltimore, Maryland – Wendy Collins, age 46, of Woodbine, Maryland, pleaded guilty today to wire fraud, in connection with a scheme in which she stole more than $4.5 million from her employer.

 

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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, Collins worked at a national construction company (the “Company”) with projects throughout the United States. In 2010, Collins was promoted to the Company’s Vice President of Administration, and was responsible for managing the Company’s finances, including payroll, accounting, petty cash, 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, William 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 Since 1851. 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.

 

As part of her plea agreement, Collins will be required to forfeit the vehicles and pay a money judgment of at least $4,273,749.83.

 

Collins faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge Marvin J. Garbis has scheduled sentencing for June 26, 2017 at 10:00 a.m.

 

United States Attorney Rod J. Rosenstein commended the FBI and the U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Philip A. Selden and Evan T. Shea, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Carl Javan Ross, age 30, of Essex, Maryland, today to 10 years in prison, followed by lifetime supervised release, for receipt and possession of child pornography. Judge Motz ordered that the federal sentence be consecutive to the state sentence Ross is currently serving for sexual abuse of a minor. Judge Motz also ordered that upon his release from prison, Ross 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). Ross was convicted by a federal jury on December 7, 2016, after 30 minutes of deliberation.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

 

According to the evidence presented at his three-day trial, on July 2, 2015, an undercover Baltimore County detective was conducting an online investigation looking for offenders sharing child pornography on certain file sharing networks. The detective downloaded two video files documenting the sexual abuse of prepubescent children from an IP address later identified as being used by Ross.

 

Trial testimony showed that law enforcement executed a search warrant at Ross’ residence on July 28, 2015, and recovered his laptop computer. A preview of the computer showed that it contained a user hash, which is a unique value assigned by the file sharing program, identical to that of the computer that shared the two videos of child pornography downloaded by the detective. In addition, investigators found search terms indicative of child pornography and digital images of child pornography.

 

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

 

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul E. Budlow and Paul Riley, who prosecuted the federal case.

Baltimore, Maryland – Rainier Ramos, age 50, of Bel Air, Maryland, pleaded guilty today to bribery in connection with his duties at the U.S. Army Public Health Command at Aberdeen Proving Ground.

 

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore 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 Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.

 

According to Ramos’ plea agreement, he was a civilian information technology professional at the U.S. Army Public Health Command at Aberdeen Proving Ground (APG). Beginning in 2009, Ramos solicited and accepted bribes from the owner and CEO of an information technology company headquartered in McLean, Virginia (the Company). Specifically, Ramos admitted that he sought and accepted, among other things, meals and drinks, rounds of golf, tickets to sporting events, and gift cards. The sporting events included courtside seats to Washington Wizards basketball games, football tickets and access to the company’s luxury suite for Washington Redskins games at FedEx field, tickets to the see the New Orleans Saints play at the Mercedes Benz Dome in New Orleans, and tickets to see the New Orleans Hornets basketball team in New Orleans. In exchange, Ramos admitted that he took official actions favorable to the Company and the owner in relation to the MEDCOM contract, which was worth more than $50 million.

 

For example, in exchange for bribes from the Company’s owner, Ramos sought contracting opportunities at APG in the spring and summer of 2010, that would allow the Company to develop a track record of performance, in order to increase the likelihood that the Company would be awarded the MEDCOM contract when it was recompeted in 2011. Ramos admitted that he took the following actions in exchange for bribes: influenced the award of a contract to the Company to deploy and configure 70 desktop and laptop computers at APG; recommended that the MEDCOM contract be reserved for companies that were part of the U.S. Small Business Administration 8(a) program, - a significant benefit to the Company as a certified 8(a) business; provided the owner of the Company with the winning proposal of the previous contractor on the MEDCOM contract, including pricing data, which was sensitive, proprietary information; and helped write the Statement of Work for the MEDCOM contract to increase the likelihood that the Company would be awarded that contract. On May 20, 2010, in an email to the owner of the Company, Ramos stated, “If there’s any way you can pull off a miracle and switch the 10 Eagles/Skins tickets you have already acquired for 10 Skins/Cowboys tickets, I’ll owe you some serious 8A business. . . . Thanks again for EVERYTHING.”

 

In August 2011, the solicitation for the MEDCOM contract was issued, and Ramos was selected as the Chairman of the Source Selection Board. In early 2012, Ramos recommended that the contract be awarded to the Company. After the Company was awarded the contract, Ramos approved invoices submitted by the Company under the contract. As of July 2016, the Company was paid almost $37 million by the U.S. government for invoices submitted under the MEDCOM contract.

 

Ramos faces a maximum sentence of 15 years in prison for bribery. As part of his plea agreement Ramos is required to pay a money judgment of at least $33,000, and pay restitution in the full amount of the victim’s losses. U.S. District Judge Richard D. Bennett has scheduled Ramos’ sentencing for July 12, 2017 at 2:00 p.m.

 

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.

 

United States Attorney Rod J. Rosenstein thanked the FBI, Army CID, and DCIS for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Olden Minnick, a/k/a “O,” age 55, of Clinton, Maryland, on March 21, 2017, to 14 years in prison, followed by five years of supervised release, on charges connected to a conspiracy to distribute heroin. Judge Chuang also ordered Minnick to forfeit $571,640, including high-end watches and jewelry.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Assistant Director in Charge Andrew W. Vale of the Federal Bureau of Investigation - Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.

 

According to the evidence presented at Minnick’s four-week trial, from June 2012 to December 3, 2014, Minnick conspired with Terrance Stanback, Sean Wilson, Christian Byrd, and others to distribute heroin. From at least June 1, 2014 to December 3, 2014, Minnick used residences in Clinton, Maryland and Capitol Heights, Maryland, for the distribution and storage of heroin and other controlled substances. Over the course of the conspiracy Minnick used cellular telephones to arrange for the distribution of heroin and was intercepted on several occasions in 2014 arranging to provide distribution quantities of heroin to Stanback and others.

 

Terrance Stanback, age 52, of Clinton, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to 30 months in prison, and ordered to forfeit $53,000 recovered during a search of his residence. Sean Wilson, age 46, of Randallstown, Maryland previously pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and was sentenced to 11 years in federal prison. Christian Byrd, age 45, of Laurel, Maryland, pleaded guilty to possession with intent to distribute heroin and was sentenced to 15 years in federal prison. Judge Chuang also ordered Byrd to forfeit $440,000, as the proceeds of his drug distribution.

 

United States Attorney Rod J. Rosenstein commended the DEA, FBI, and the Prince Georges County, Baltimore County, and Baltimore City Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – A federal grand jury has indicted Dr. Warren Gregory Belcher, age 58, of Salisbury, Maryland, with one count of corruptly endeavoring to impede the Internal Revenue Service (IRS) and six counts of filing false tax returns. The indictment was returned on March 20, 2017, and unsealed late on March 21, 2017.

 

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

 

According to the indictment, Dr. Belcher, operated a chiropractic business for nearly 20 years. During that time, he received income for chiropractic services from insurance companies, patients and other third parties, including another chiropractor in Baltimore. The indictment alleges that for the years 2009 through 2015, Belcher filed false individual income tax returns on which he failed to report that he operated a chiropractic business and falsely claimed that he had earned $0 in business income.

 

The indictment further alleges that between 2008 and 2015, Belcher submitted approximately 79 letters to insurance companies and other third parties in which he threatened that the companies could be subject to civil and criminal penalties for reporting his income to the IRS on a Form 1099-MISC. A Form 1099-MISC is a tax form that is used to report certain types of income to the IRS, including payments for services performed by someone who is not an employee and medical and health care payments. Belcher also made threatening statements to an accountant to prevent the accountant from reporting his income to the government. In addition, Belcher is alleged to have submitted approximately 68 fraudulent Forms 1099-MISC to the IRS on which he falsely claimed that the companies who reported his income to the IRS on Forms 1099-MISC for those years had paid him $0 in income. Finally, Belcher allegedly responded to notices from the IRS regarding additional taxes he owed for the years 2009 and 2011 and a penalty that the IRS assessed against him for filing a frivolous income tax return by sending letters to the IRS in which he falsely claimed that the IRS was violating the law by assessing and collecting his taxes.

 

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

 

If convicted, Belcher faces a statutory maximum sentence of three years in prison on each count of the indictment. Belcher is scheduled to have an initial appearance today in U.S. District Court in Baltimore.

 

U.S. Attorney Rosenstein and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, for their work in the investigation, and Assistant U.S. Attorney Sean R. Delaney and Trial Attorney Melissa S. Siskind of the Justice Department’s Tax Division, who are prosecuting the case.

A grand jury in Baltimore, Maryland returned an indictment on March 9, which was unsealed yesterday, charging a chiropractor with one count of corruptly endeavoring to impede the Internal Revenue Service (IRS) and six counts of filing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rod J. Rosenstein for the District of Maryland.

 

According to the indictment, Dr. Warren Gregory Belcher, a resident of Salisbury, Maryland, operated a chiropractic business for nearly 20 years. During that time, he received income for chiropractic services from insurance companies, patients and other third parties, including another chiropractor in Baltimore. The indictment alleges that for the years 2009 through 2015, Belcher filed false individual income tax returns on which he failed to report that he operated a chiropractic business and falsely claimed that he had earned $0 in business income.

 

The indictment further alleges that between 2008 and 2015, Belcher submitted approximately 79 letters to insurance companies and other third parties in which he threatened that the companies could be subject to civil and criminal penalties for reporting his income to the IRS on a Form 1099-MISC. A Form 1099-MISC is a tax form that is used to report certain types of income to the IRS, including payments for services performed by someone who is not an employee and medical and health care payments. Belcher also made threatening statements to an accountant to prevent the accountant from reporting his income to the government. In addition, Belcher is alleged to have submitted approximately 68 fraudulent Forms 1099-MISC to the IRS on which he falsely claimed that the companies who reported his income to the IRS on Forms 1099-MISC for those years had paid him $0 in income. Finally, Belcher is alleged to have responded to notices from the IRS regarding additional taxes he owed for the years 2009 and 2011 and a penalty that the IRS assessed against him for filing a frivolous income tax return by sending letters to the IRS in which he falsely claimed that the IRS was violating the law by assessing and collecting his taxes.

 

An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.

 

If convicted, Belcher faces a statutory maximum sentence of three years in prison on each count of the indictment, as well as a term of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Rosenstein commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Sean R. Delaney of the District of Maryland, 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 – Hussain Abdullah, age 39 of Forestville, Maryland, pleaded guilty on March 21, 2017, to 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.

 

Co-conspirators Shazad Khan, age 56, of Maryland, Patricia Lynn Hiter, age 51, of Lawrenceville, Georgia, and James Edward Foster, age 61, of Woodbridge, Virginia, previously pleaded guilty to the wire fraud conspiracy and aggravated identity theft.

 

The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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 their plea agreements, 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 Khan, Hiter, Foster, 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 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.

 

Abdullah and the government have agreed that if the Court accepts the plea agreement Abdullah will be sentenced to between 45 and 65 months in prison. U.S. District Judge George J. Hazel has scheduled sentencing for May 31, 2017 at 2:00 p.m.

 

Khan, Hiter, and Foster each face 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. Judge Hazel has scheduled the sentencing for Khan on July 31, 2017, at 9:30 a.m.; for Hiter on May 15, 2017, at 2 p.m.; and for Foster on June 21, 2017, at 9:30 a.m.

 

Bland Shivers, age 50, of New Bern, North Carolina, previously pleaded guilty to the wire fraud conspiracy and aggravated identity theft and is awaiting sentencing.

 

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.

 

United States Attorney Rod J. Rosenstein 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. Rosenstein thanked Assistant U.S. Attorney Arun G. Rao, who is prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Gbenga Ogundele a/k/a “Benson Ogundele,” age 58; of Laurel, Maryland, today to 234 months in prison, and sentenced his wife, Moji Popoola, a/k/a “Mojisola Oluwakemi Tin Popoola” and “Moji T. Popoola,” age 42, also of Laurel, to 18 months in prison, each followed by three years of supervised release, for conspiracies to commit wire fraud and money laundering arising from a scheme to defraud vulnerable victims of millions of dollars. Ogundele was also convicted of aggravated identity theft in connection with the scheme. Judge Grimm ordered that Mojisola Popoola’s supervised release is to be served in home detention. Judge Grimm also ordered Ogundele to forfeit $2,195,103.36, and ordered Mojisola Popoola to forfeit approximately $165,000 and to pay restitution of $34,100.

 

On March 20, 2017, Judge Grimm sentenced Moji Popoola’s brother, Babatunde Emmanuel Popoola, a/k/a “Emmanuel Popoola” and “Tunde Popoola, age 34, of Bowie, Maryland, to 12 years in prison, on the same charges. Judge Grimm ordered Babatunde Popoola to pay restitution of $465,170.76. Ogundele and the Popoolas were convicted on November 18, 2016, after a 17-day trial.

 

In a related case, Funmilayo Joyce Shodeke, age 67, of Burtonsville, Maryland, pleaded guilty on March 22, 2017 to conducting an unlicensed money transmitting business, and was sentenced to 13 months’ probation, and ordered to forfeit $29,900.

 

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.

 

According to the evidence presented at trial, and co-conspirators’ plea agreements, 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.

 

Members of the conspiracy used false stories and promises to convince the victims to provide money to the conspirators, including fake hospital bills, plane trips to visit the victims, problems with overseas businesses and foreign taxes. Ogundele, the Popoolas, co-conspirators Olusegun Charles Ogunseye, Olufemi Wilfred Williams, Adeyinka Olubunmi Awolaja and others opened bank accounts, called “drop accounts,” in order to receive millions of dollars from the victims. The victims provided money to the defendants as a result of the false stories and promises, either depositing money directly into drop accounts controlled by the defendants, or by checks sent to the conspirators. The payments from victims ranged from $1,720 to $50,000. Ogundele, Babatunde Popoola, and others used victims’ names, bank account numbers or driver’s licenses in furtherance of the fraud scheme.

 

Ogundele, the Popoolas, Ogunseye, Williams, Awolaja and their co-conspirators dispersed money received from the victims by transferring funds to other accounts controlled by the conspirators, by obtaining cashier’s checks, and by writing checks to individuals or entities, in order to conceal the nature, source, and control of those assets.

 

Co-conspirator Victor Oyewumi Oloyede, age 42, of Laurel, Maryland, was also convicted at trial for his role in the fraud scheme. Oloyede was sentenced to 234 months in prison.

 

Co-conspirators Olusegun Charles Ogunseye, age 59 of Laurel, Maryland, Olufemi Wilfred Williams, age 28, of Owings Mills, Maryland, and Adeyinka Olubunmi Awolaja, Jr., age 34, of New Carollton, Maryland, each pleaded guilty to conspiracy to commit money laundering. Judge Grimm scheduled sentencing for Awolaja on June 12, 2017, for Ogunseye on July 25, 2017, and for Williams on July 27, 2017, all at 2:30 p.m.

 

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.

 

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who is prosecuting the case.

Baltimore, Maryland – Glenn R. Fischer, age 70, of Ellicott City, Maryland, pleaded guilty on March 21, 2017, to wire fraud and aggravated identity theft arising from a scheme to defraud businesses seeking insurance. Fischer admitted that he fraudulently collected more than $4.4 million in insurance premiums which he did not remit to an insurance company, causing losses in that amount to the victims who thought they were insured.

 

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.

 

According his plea agreement, from 2002 to about 2014, Fischer was a partner at TriArc Financial Services, Inc., (TriArc Services) which provided automotive and mortgage insurance products, including residual value insurance. Residual Value Insurance (“RVI”) helped companies leasing vehicles to consumers to manage the risk from decreases in the value of the vehicle during the term of an auto lease. RVI typically provided for payments to the owner of a leased vehicle if the value of the vehicle at the end of the lease was less than a certain amount specified in the terms of the insurance coverage when the lease began. In the early 2000s, RVI policies were widely issued by insurance companies and TriArc Services generated substantial revenue for the company and its partners, including Fischer, who served as insurance brokers for RVI products. In 2008 and 2009, in conjunction with the financial recession and changes in consumers’ desires for used automobiles, many insureds suffered substantial losses under RVI insurance policies.

 

Fischer admitted that from 2009 until 2014, he persuaded victim businesses to purchase RVI insurance coverage, which Fischer knew did not exist, so that Fischer could use a substantial portion of the victims’ insurance premiums for his personal benefit. Specifically, in the summer of 2009, Fischer created a Nevada corporation called TriArc Marketing Solutions (TriArc Solutions) and opened bank accounts for TriArc Solutions. During the course of the scheme, Fischer caused prospective insureds to believe that he that he was authorized to issue RVI policies on behalf of TriArc Services, a multinational property and casualty insurance company specializing in coverage for small to medium sized businesses, and one of that business’ subsidiaries. Fischer also concealed the creation and use of TriArc Solutions from his partners at TriArc Services.

 

Fischer created and sent false insurance coverage documents, fraudulent emails, premium invoices, lists of covered vehicles, and other documents to victim companies, causing them to falsely believe that they had purchased RVI insurance through Fischer. Fischer used the identity of an employee of a multinational property and casualty insurance company in furtherance of the fraud, including his name, title and purported signature on the declaration pages of the fake insurance policies. Fischer concealed from the employee and the company that Fischer was pretending to issue RVI insurance policies on behalf of the company.

 

Fischer collected more than $4.4 million in RVI insurance premiums from the victims, which he deposited into the TriArc Solutions bank accounts. Fischer and his relatives used the proceeds of the insurance premium payments for their personal benefit.

 

Fischer also admitted that he failed to report a significant portion of the money he obtained from the fraud on his annual tax returns for the 2009 through 2014 calendar years. The total income Fischer received but did not report to the IRS for these tax years exceeded $3.3 million, which generated a substantial tax loss to the United States.

 

As part of his plea agreement, Fischer will be required to forfeit all property constituting, derived from, or traceable to the proceeds of the fraud, including, but not limited to $4.4 million.

 

Fischer faces a maximum penalty of 20 years in prison for wire fraud, and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge George L. Russell has scheduled sentencing for June 9, 2017, at 11:00 a.m.

 

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.

 

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry M. Gruber and David Metcalf, who are prosecuting the case.

Greenbelt, Maryland – A federal grand jury has indicted three men for a kidnapping conspiracy in which the defendants allegedly lured the victim from New Jersey to Maryland, in order to kill the victim. The indictment was returned on March 20, 2017. The indictment charges the following individuals:

 

Neris Moreno-Martinez, a/k/a Jose Neris Moreno, Jr., age 19, of West New York, New Jersey;

Jose Israel Melendez-Rivera, age 19, of Montgomery Village, Maryland; and

Reynaldo Alexi Granados-Vasquez, age 21, of Gaithersburg, Maryland

 

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

 

“This indictment alleges a horrifically planned effort to lure a victim across multiple states into Maryland with the sole purpose of kidnapping and inflicting grotesque bodily harm,” said Andre R. Watson, Special Agent in Charge of HSI Baltimore. “HSI will continue to use its wide jurisdictional authorities and collaborate with state and local law enforcement to ensure that we shield Maryland-area communities from this type of violent criminal activity.”

 

According to the indictment, on October 1, 2016, Moreno created a social media account in the name of Shaila Smith. From that time until October 15, 2016, Moreno, and others acting at the direction of Moreno, posed as Shaila Smith and used the social media account to communicate with the victim. Pretending to be Shaila Smith, Moreno and his co-conspirators allegedly expressed a romantic interest in the victim and persuaded the victim to travel from New Jersey to Maryland to meet in person. Using the Shaila Smith social media account, Moreno and his co-conspirators instructed the victim when to travel to Maryland, what transportation service to use, and provided Melendez-Rivera’s address as the location where the victim should meet “Shaila Smith.”

 

The indictment alleges that on October 15, 2016, Moreno traveled from New Jersey to Maryland in order to kill the victim. According to the indictment, on October 15, 2016, Moreno, Melendez-Rivera and Granados-Vasquez killed the victim in a wooded area in Gaithersburg and buried the victim’s body in a shallow grave.

 

The defendants each face a maximum sentence of life in prison for the conspiracy. Reynaldo Granados-Vasquez had his initial appearance at 1:45 p.m. today before U.S. Magistrate Judge Charles B. Day, in U.S. District Court in Greenbelt and is detained. An initial appearance for Moreno and Melendez-Rivera has not yet been scheduled. They are currently detained on related state 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.

 

United States Attorney Rod J. Rosenstein commended HSI-Baltimore, the Montgomery County Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lindsay Eyler Kaplan and Daniel C. Gardner, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Travis Lee, age 31, of La Plata, Maryland, today to 75 months in prison, followed by three years of supervised release, for possession of unauthorized access devices and aggravated identity theft, as well as violating his supervised release in a previous credit card fraud case.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian J. Ebert of the United States Secret Service – Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.

 

According to his plea agreement on August 31, 2015, Lee traveled with Kenneth Clifton Williamson to a shopping mall area in Chevy Chase, Maryland, and taught Williamson how to make fraudulent purchases at department stores using the unauthorized debit, credit and gift cards Lee manufactured using stolen credit and debit information obtained from illegal online carding forums. Lee reprogrammed the credit and gift cards with alternate data, which provided access to individuals’ bank accounts for fraudulent, unauthorized purchases.

 

Williamson purchased approximately $1,155 in merchandise at a high-end department store in Chevy Chase using two Visa gift card, which Lee had encoded with stolen account information. Lee and Williamson then proceeded to a high-end department store in Washington D.C. and repeated the process, again purchasing approximately $1,155 in merchandise using similar fraudulent gift cards.

 

Law enforcement arrested Lee a few months later and recovered at least 185 gift cards from Lee. A search of the vehicle, which was the same one used by Lee and Williamson to travel to the department stores in August, revealed gift cards, sales receipts, clothing and other merchandise, a laptop computer portable wi-fi device, as well as items used to create gift and credit cards encoded with stolen account information, including an embosser and electronic encoder.

 

On October 31, 2015, law enforcement conducted a traffic stop of the vehicle Lee was driving and recovered at least 150 credit and gift cards, an embosser and other materials indicative of the manufacture of fraudulent credit cards and gift cards, including a laptop with a magnetic strip reader/writer.

 

On September 15, 2010, Lee was sentenced to five months in prison, followed by three years of supervised release, after being convicted of possession of counterfeit access devices in U.S. District Court for the Northern District of West Virginia. In December 2014, Lee’s supervised release was revoked and he was sentenced to 14 months in prison, followed by 22 months of supervised release. Lee was serving this term of supervised release when he committed the offenses in Maryland.

 

Kenneth Clifton Williamson, age 21, of Washington, D.C. previously pleaded guilty to his role in the scheme as was sentenced to four months in prison.

 

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Montgomery County Police Department, Electronic Crimes Unit for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jennifer R. Sykes and Thomas P. Windom, who prosecuted the case.

 

Baltimore, Maryland – Louis Frances Bradley, age 66, of Baltimore, Maryland, pleaded guilty on March 20, 2017, to production of child pornography. Bradley has four previous state convictions on charges related to the sexual exploitation of children.

 

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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).

 

Bradley faces a minimum sentence of 35 years and up to life in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for May 2, 2017 at 2:00 p.m.

 

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

 

United States Attorney Rod J. Rosenstein commended the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Paul Scovronski, age 28, of Wintersville, Ohio, today to 10 years in prison, followed by five years of supervised release, for armed bank robbery and for brandishing a firearm in relation to a crime of violence, in connection with two Maryland bank robberies. Judge Garbis also ordered Scovronski to pay restitution of $12,174.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Anne Arundel County Police Chief Tim Altomare; Chief Gary Gardner of the Howard County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Howard County State’s Attorney Dario Broccolino.

 

According to his guilty plea, on March 11, 2016, Scovronski robbed a bank in the 15000 block of Old Frederick Road in Woodbine, Maryland. Scovronski, wearing a mask over his face, sunglasses, a sweatshirt with the hood pulled up, and gloves, entered the bank waving a .22 caliber revolver, shouted “this is a robbery,” and ordered the customers and bank managers to get on the ground. Scovronski demanded the teller give him all the money in the drawer and in the vault. The teller gave Scovronski approximately $17,551 from the drawer. Scovronski placed the money in his sweatshirt and a red shopping bag, then ordered the employees to go to a back room and lay down on the ground. Scovronski then he fled.

 

Three witnesses, including an off duty Anne Arundel County police officer, saw Scovronski leave the bank still wearing his disguise. The officer and another person followed Scovronski through a field next to the bank. Scovronski saw that he was being followed and began to run, jumping a fence to get away. A large amount of stolen case dropped as Scovronski jumped the fence and began blowing in the wind all over the road. Approximately $8,460 was eventually recovered from the road. Scovronski headed toward a silver four door car parked on the side of the road, still being followed by the officer. The off duty officer drew his weapon and ordered Scovronski to stop. Scovronski pulled out a loaded revolver and pointed it in the air, as he opened the driver side door of the car with this other hand. Scovronski got into the car and drove away.

 

The off duty officer described the get-away vehicle to investigators and a Maryland State Police Trooper stopped the vehicle, which was traveling west bound on Route 70. The car was subsequently searched and law enforcement recovered: the sweatshirt, gloves, and mask Scovronski wore during the robbery, the loaded revolver, and $4,917 in cash, some of which still had the bank bands on it. Scovronski waived his rights and elected to speak with investigators. He admitted that he robbed the bank and identified himself in surveillance photos taken during the robbery.

 

As part of his guilty plea, Scovronski also admitted that on February 19, 2016, he robbed a bank in the 12000 block of Chestnut Branch Way in Clarksburg, Maryland. In that robbery, Scovronski demanded money from the teller and kept his right hand inside his jacket, implying that he had a weapon. Scovronski stole approximately $8,000.

 

United States Attorney Rod J. Rosenstein commended the FBI, Anne Arundel County Police Department, Howard County Police Department, Maryland State Police and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who prosecuted the case.

Baltimore, Maryland – A federal grand jury has indicted licensed drug counselor Jennifer Hamersky, a/k/a Jennifer Maroney and Jennifer Hurt, age 33, of Severn, Maryland, and Anthony Evans Owings Seen, a/k/a Tony, age 31, of Glen Burnie, Maryland, for conspiring to conceal alleged violations of pretrial release by one of Hamersky’s clients. The indictment was returned on March 16, 2017.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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 seven-count indictment, Hamersky is a licensed Clinical Professional Addictions Counselor in Maryland. Hamersky’s employer is contracted to provide mental health and substance abuse assessments and counseling, and urinalysis testing, for pretrial offenders and supervised release defendants under the supervision of the United States Probation and Pretrial Services Office (USPO) in Maryland. Seen, who is on supervised release under the supervision of USPO, met Hamersky in August 2015, when she conducted Seen’s initial substance abuse diagnostic assessment for USPO.

 

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 of counseling and urinalysis testing to USPO.

 

The indictment alleges that Hamersky and Seen conspired to, and obstructed 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 alleged in the indictment include: use of narcotic drugs or other controlled substances; failure to appear for urinalysis testing; and failure to appear for counseling sessions.

 

Specifically, the indictment alleges 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. Hamersky allegedly forged or caused to be forged the initials of the company urinalysis collector on reports in order to make it appear that Person A had participated in urinalysis testing, when in fact, he had not. In addition, the indictment alleges that Hamersky falsely represented to the company urinalysis collector that Person A’s USPO officer had authorized Person A’s removal from the urinalysis testing list, and had authorized Hamersky to collect urinalysis samples from Person A. According to the indictment, Seen also obtained Person A’s signature on reports to make it appear that Person A had attended urinalysis testing and counseling sessions, when in fact, Person A had not attended the testing or sessions.

 

According to the indictment, from October 2015 through at least February 2016, while Person A was under Hamersky’s supervision, Hamersky and Person A engaged in repeated sexual encounters, and used narcotic drugs or other controlled substances together. While Person A was incarcerated, Hamersky allegedly purchased, and delivered to the detention facility electronics, clothing, and other items for Person A’s benefit. The indictment alleges that Hamersky also paid for and caused money orders to be sent for the purchase of narcotic drugs or other controlled substances used by Person A while he was incarcerated. After Person A’s release from detention in May 2016, Hamersky and Person A allegedly ceased their sexual encounters, although Hamersky continued to counsel Person A as part of his conditions of pretrial release. The indictment also alleges that from September 2016 through February 2017, Hamersky and Seen had a sexual relationship.

 

Hamersky and Seen each face a maximum sentence of five years in prison for the conspiracy; a maximum of 20 years in prison for each count of obstruction of justice; and a maximum of five years in prison for each count of making a false document. Hamersky also faces a maximum of five years in prison for making a false statement. The defendants each had an initial appearance this afternoon 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.

 

United States Attorney Rod J. Rosenstein commended the FBI, USPO, and DEA for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Philip A. Selden and Rachel Miller Yasser, who are prosecuting the case.

 

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Edward Leon Samuel, Jr., age 50, of Baltimore, Maryland , on March 16, 2017, to 13 years in prison, followed by five years of supervised release, for possession with intent to distribute heroin and cocaine, and for possession of a firearm in furtherance of a drug trafficking crime.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Kevin Davis of the Baltimore Police Department.

 

According to his plea agreement, Samuel distributed heroin and cocaine in Baltimore City. On February 2, 2016, members of the DEA and Baltimore City Police Department executed a search warrant at Samuel’s residence and recovered 171 grams of heroin and 25.8 grams of cocaine, which Samuel admits he intended to distribute to his customers. Law enforcement also recovered three loaded firearms, including a .40 caliber handgun, a 9mm handgun with no serial number, and a 454 revolver with no serial number. Samuel admits that he possessed the firearms to further his drug trafficking activities.

 

United States Attorney Rod J. Rosenstein praised the DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Derek E. Hines and Christopher J. Romano, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Rondell McLeod, age 23, of Washington, D.C., on March 15, 2017, to 11 years in prison, followed by five years of supervised release, for two armed commercial robberies and for using and brandishing a firearm during a crime a violence. Judge Titus also ordered McLeod to pay restitution of $10,568.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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; and Acting Chief Peter Newsham of the Metropolitan Police Department.

 

According to his plea agreement, between March 28 and April 1, 2016, McLeod conspired with Tyrell Bailey and Steven Mosby to rob cellular phone stores in Bethesda and Forestville, Maryland. In both the March 28 and April 1 robberies, McLeod entered the store to commit the robbery and brandished a firearm at store employees, while Mosby was the get-away driver. Bailey participated in the April 1st robbery, entering the store with McLeod to commit the robbery. McLeod and his co-conspirators stole cash, cellular phones and other high-end electronics, with a total value of approximately $30,658.

 

After the second robbery on April 1, 2016, a witness who saw the robbers drive away from the store called 911 and provided a description of the car. The witness followed the vehicle for some distance before losing sight of the vehicle. A Prince George’s County Police plain clothes officer in an unmarked car saw the getaway vehicle a short time later speeding, driving on the shoulder of the road, and driving through a red light. A marked Prince George’s County Police vehicle was able to start following the getaway car. Prince George’s County Police officers were also conducting aerial surveillance of the pursuit and saw McLeod and his co-conspirators flee from the vehicle. The aerial officers noticed that McLeod was gripping his waistband consistent with someone who was concealing a firearm. The aerial officers directed pursuing foot officers to the rear delivery door of a business that McLeod had entered, and McLeod was arrested. Officers found a loaded .40 caliber handgun on the ground where McLeod had been laying and recovered a cellular telephone from McLeod.

 

Tyrell Bailey, age 20, and Steven Walter Mosby, age 26, both of Washington, D.C., were also arrested after the chase on April 1, 2016. On December 13, 2016, Bailey pleaded guilty to robbery, and to using, carrying and brandishing a firearm during a crime of violence. Bailey and the government have agreed that if the Court accepts the plea agreement Bailey will be sentenced to seven years and one day in prison. Judge Titus has scheduled sentencing for Bailey on March 21, 2017 at 10:00 a.m. On December 15, 2016, Mosby pleaded guilty to a robbery conspiracy and is scheduled to be sentenced on May 10, 2017 at 9:00 a.m.

 

United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, and the Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Michael T. Packard, who prosecuted the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced William H. Steinhaus IV, age 34, of Brunswick, Maryland, today to 25 years in prison, followed by lifetime supervised release, for sexual exploitation of a child to produce child pornography. Judge Blake also ordered that, upon his release from prison, Steinhaus must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation; Frederick County Sheriff Charles A. “Chuck” Jenkins; Frederick County State’s Attorney J. Charles Smith; and Acting Chief Peter Newsham of the Metropolitan Police Department.

 

According to his plea agreement, between December 8 and 9, 2014, Steinhaus had a number of sexually explicit conversations on Kik, an instant messaging application, with other Kik users regarding their shared sexual interest in prepubescent children. Steinhaus took pictures using his iPhone or iPad of a two year old girl engaged in sexually explicit conduct and distributed them to approximately 25 other Kik users.

 

Steinhaus admitted that during those two days, he and another Kik user exchanged approximately 290 messages, including a discussion as to how Steinhaus could best sexually abuse the toddler. Also on December 8, 2014, Steinhaus and a second Kik user exchanged approximately 293 messages. Steinhaus sent both users images of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating to the first user “That’s where tw[sic] assault will happen,” and to the second, “That’s where the assault is going to happen.”

 

According to his plea agreement, between December 8 and 9, 2014, Steinhaus exchanged approximately 419 messages on Kik with an undercover law enforcement officer, whom Steinhaus had emailed earlier on December 8, 2014. Steinhaus sent the undercover officer approximately 30 pictures he had taken of the toddler, several of which contained images of the child and Steinhaus engaged in sexually explicit conduct.

 

Through emergency legal requests, on December 9, 2014, officers identified Steinhaus as the subscriber to the Kik and Yahoo accounts used to communicate with the undercover officer. Officers began surveillance of Steinhaus’ residence in advance of the execution of a search warrant. During the surveillance, Steinhaus began sending the undercover officer images of himself with the victim in the background. Steinhaus told the undercover officer that he would be alone with the victim and would continue the sexual abuse of the child. Officers used a ruse to get Steinhaus out of the residence. Steinhaus came out of the house with his iPhone, and the officers identified themselves. Steinhaus fought with the officers as they tried to secure his iPhone, but they were able to secure and access the device. Steinhaus was arrested and the victim was rescued by the officers.

 

Nine of the Kik users to whom Steinhaus sent photographs of the victim were arrested and charged – seven of them federally. Of the federal defendants, five have pleaded guilty to distribution, possession, or transportation of child pornography and two other have charges pending. Three of the convicted defendants were sentenced to between five and 10 years in federal prison and the two defendants are awaiting sentencing.

 

As part of his plea agreement in the federal case, Steinhaus pleaded guilty to related charges filed against him in the Circuit Court for Frederick County, Maryland, and is scheduled to be sentenced on those charges on March 21, 2017, at 9:00 a.m.

 

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

 

United States Attorney Rod J. Rosenstein commended the FBI, Frederick County Sheriff’s Office, Frederick County State’s Attorney’s Office and Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Barry Terry, age 39, of Baltimore, Maryland, today to 15 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.

 

According to the evidence presented at his two-day trial, in the summer of 2015 a Baltimore City Watch camera operator saw Terry walking through a Baltimore City park with what appeared to be a gun in the waistband of his pants. The operated directed Baltimore Police officers to the location. When officers approached Terry to investigate, Terry fled, throwing something in the direction of a clothes donation box. Terry was apprehended and police located a loaded pistol where Terry had thrown the object as he was running away.

 

As a result of seven previous felony convictions, Terry was prohibited from possessing a firearm or ammunition.

 

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Patricia C. McLane and Zachary B. Stendig, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Christopher Zane Ordiway, age 43, of Drayden, Maryland, today to 10 years in prison, followed lifetime supervised release, for possession of child pornography. Ordiway admitted to engaging in sexual activity with a minor victim and possessing photos of that sexually explicit conduct. Judge Titus also ordered that, upon his release from prison, Ordiway 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).

 

In U.S. District Court in Baltimore, Santos Jovany Quintanilla, age 37, of Lutherville-Timonium, Maryland, pleaded guilty today to two counts of sexually abusing a minor to produce child pornography.

 

The sentence and guilty plea were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

 

According to Ordiway’s plea agreement, from 2012 through 2014, Ordiway engaged in sexual activity with a minor female and possessed digital photographs documenting the abuse. The photos were found on Oridway’s cellular telephone on January 21, 2016, during a forensic analysis of the phone by an HSI examiner. Even though Ordiway had attempted to delete the photographs, the forensic analysis was able to recover thumbnails of the photographs that remained on the phone.

 

According to Quintanilla’s 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, on at least one occasion, took photographs documenting the abuse.

 

Quintanilla admitted that in 2015 he sent text messages to the victim asking her to take off her clothes and send Quintanilla photographs of her body. On March 30, 2015, Quintanilla contacted the victim, who was 10 years old at that time, via Facebook. Quintanilla sent the victim a photograph of a $50 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 pictures of a pre-pubescent male’s genitalia.

 

As part of his plea agreement, Quintanilla will be required 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).

 

Quintanilla faces a minimum mandatory sentence of 15 years and up to 30 years in prison for each of two counts of production of child pornography. U.S. District Judge J. Frederick Motz has scheduled sentencing for May 31, 2017 at 9:30 a.m. Quintanilla remains detained pending sentencing.

 

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

 

United States Attorney Rod J. Rosenstein commended HSI Baltimore, and the Maryland State Police for their work in the Oridway case; and the FBI, HSI-Baltimore, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the Quintanilla investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Joseph R. Baldwin and Daniel C. Gardner who prosecuted the Ordiway case, and Assistant U.S. Attorneys Aaron S. J. Zelinsky and Paul E. Budlow, who are prosecuting the Quintanilla case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Jerryan Burrell, a/k/a Rhino, age 31, of Baltimore, today to 20 years in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute heroin, powder and crack cocaine, marijuana, and oxycodone. On March 8, 2017, Judge Russell sentenced Devin Rodgers, a/k/a Donkey and Dick Butkus, age 21, of Baltimore, to 10 years in prison, followed by five years of supervised release, on the same charge. Burrell and Rodgers admitted that they were members of Hillside, a drug distribution conspiracy which operated for 14 years in the Cherry Hill section of Baltimore.

 

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.

 

“Although the only crime charged in this case is a drug conspiracy, the allegations against the Hillside group includes 13 murders and 21 non-fatal shootings,” said U.S. Attorney Rod J. Rosenstein. “Conspiracy cases are a valuable tool to put violent gangs out of business.”

 

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

 

Burrell and Rodgers admitted that they distributed heroin, marijuana, cocaine and other narcotics. According to the plea agreements, video recordings show that Burrell and Rodgers were in the Hillside stash houses, along with other Hillside members.

 

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

 

Members of Hillside, including Burrell, also committed acts of violence in order to fund their narcotics activities and intimidate others who would interfere with their narcotics trafficking. For example, on January 16, 2011, Burrell and another Hillside member committed an armed robbery with a loaded .22 caliber handgun with an obliterated serial number. Acts of violence were also committed to discipline members within the Hillside Enterprise for transgressions, real or perceived, against the conspiracy.

 

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

 

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – Correctional Officer Thomas Leimbach, age 32, of Pocomoke City, Maryland, pleaded guilty on March 9, 2017, to his participation in a racketeering conspiracy operating at the Eastern Correctional Institution in Westover, Maryland.

 

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

 

According to his plea agreement and court documents, the Eastern Correctional Institution (ECI) is the largest state prison in Maryland, operating near Westover, in Somerset County, on Maryland’s Eastern Shore. During the conspiracy, Leimbach was a Correctional Officer (CO) at ECI.

 

Leimbach admitted that he accepted bribes from inmates to smuggle contraband into ECI, including narcotics, cell phones and tobacco. Leimbach worked with other COs to smuggle contraband into the prison. On June 5, 2014, law enforcement intercepted a call from an inmate to his sister, in which they discuss whether their mother “took care of that today.” That same day, Leimbach was arrested after the inmate’s mother delivered contraband to Leimbach. Leimbach was searched and had in his possession 75 Suboxone strips and $375 in cash.

 

Leimbach faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge James K. Bredar has scheduled sentencing for Leimbach on June 29, 2017 at 10:00 a.m.

 

The U.S. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist the three-year investigation. U.S. Attorney Rosenstein also recognized the efforts of the Maryland Prison Task Force which has brought together federal, state and local agencies in meetings to generate reforms in prison procedures and facilitate joint investigations of prison corruption and prison gangs. Mr. Rosenstein thanked the members of the Maryland Prison Task Force and the other agencies who assisted in this investigation and prosecution.

 

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

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Odere Suleitopa, age 33, a Nigerian national residing in Brooklyn, New York, today to 63 months in prison, followed by three years of supervised release, for 18 counts of wire fraud and five counts of aggravated identity theft arising from a three-year credit card fraud scheme. A federal jury convicted Suleitopa on October 27, 2016, after a four-day trial. Judge Motz entered an order requiring Suleitopa to pay restitution of $140,000, and to forfeit over $1,000 and cellular telephones seized during the investigation.

 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Easton Police Department Chief David A. Spencer; and Talbot County State’s Attorney Scott G. Patterson.

 

According to the evidence presented at his four day trial, Suleitopa obtained credit cards with his name embossed on them, but with the account numbers that had been stolen. The magnetic strip on the fraudulent cards were disabled. Suleitopa went to retail stores and used the fraudulent cards to purchase gift cards and merchandise. The evidence showed that on October 29, 2015, Suleitopa completed three fraudulent transactions in Alexandria, Virginia, totaling $5,814.08. Between November 9 and November 17, 2015, the evidence showed that Suleitopa completed 26 transactions using the fraudulent credit cards – eight in Delaware, and 18 in Easton and Denton, Maryland. The total purchases were over $44,000.

 

On December 23, 2015, Suleitopa made over $4,000 of purchases of high end electronics and gift cards at a retail store in in Gardner, Massachusetts, using the fraudulent credit cards. He was arrested on January 13, 2016, after returning to the same store and attempting to make additional purchases with the fraudulent cards.

 

Over the course of the scheme, which spanned eight states from New Hampshire to Georgia, more than 15 victims had their credit card accounts compromised and losses were in excess of $190,000.

 

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.

 

United States Attorney Rod J. Rosenstein commended HSI-Baltimore, the Easton Police Department, and Talbot County State’s Attorney’s Office for their work in the investigation, and recognized the Gardner, Massachusetts Police Department, the Spartanburg County and Berkeley County (South Carolina) Sheriff’s Offices, and the Summerville, South Carolina Police Department for their assistance in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Menaka Kalaskar, who prosecuted the case.

 

Baltimore, Maryland – A federal grand jury has indicted five men on charges of conspiracy to possess, conceal and sell stolen firearms; conspiracy to commit a commercial robbery; and using, carrying and brandishing a firearm during and in relation to crime of violence, in connection with the armed robbery of a federally licensed firearms dealer. The indictment was returned on March 8, 2016.

 

The indictment charges the following defendants, who are all from Baltimore:

 

David Wise, a/k/a Rambo and Rampage, age 22; Raymond McCullough, a/k/a Troop, age 33; Reginald Smith, a/k/a Young Loc and Loc, age 24; Tavon Hawkins, a/k/a G and Tay, age 34; and
Lerron Sheppard, a/k/a D-Loc, age 23.

 

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.

 

“Keeping illegal firearms from hitting the streets of Baltimore is ATF’s number one priority,” said ATF Special Agent in Charge Daniel L. Board. The men and women of the ATF Baltimore Field Division will relentlessly pursue any criminals who attempt to acquire or distribute stolen weapons and we will utilize all of our resources to ensure that they are held accountable for their violent and dangerous actions.”

 

According to the seven-count indictment, from August 2016 through September 2016, the defendants conspired to rob a bait, tackle and gun store in Dundalk, Maryland, that was a federally licensed firearms dealer. As part of the conspiracy, the defendants planned to use firearms and a stolen vehicle to commit the robbery. The indictment alleges that on August 5, 2016, the defendants, brandishing firearms, robbed the store, stealing 36 firearms, including three assault rifles and silencers, cash, a computer and monitor, credit cards and a cellular phone. The defendants fled in the vehicle they had stolen to use during the robbery to an apartment in Baltimore, where they divided the cash and firearms among themselves. The indictment alleges that from time of the robbery until March 8, 2017, the defendants possessed, concealed, stored, sold and otherwise disposed of the stolen firearms.

 

Each of the defendants faces a maximum sentence of 10 years in prison for the firearms conspiracy; 20 years in prison for the commercial robbery conspiracy; 20 years in prison for the commercial robbery; and a mandatory minimum of seven years and a maximum of life in prison for using and brandishing a firearm during a crime of violence. Wise, McCullough and Smith also face 10 years in prison for being a felon in possession of a firearm.

 

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

 

United States Attorney Rod J. Rosenstein commended the ATF, FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney David Metcalf, who is prosecuting the case.

Greenbelt, Maryland – A federal grand jury has indicted former Maryland State Delegate Michael Lynn Vaughn, age 59, of Bowie, Maryland, for a bribery conspiracy in connection with a scheme in which he allegedly accepted bribes in exchange for influencing the performance of his official duties, as well as for stealing campaign funds. The indictment was returned on March 6, 2017, and unsealed late on March 7, 2017. Vaughn’s initial appearance is scheduled today at 1:00 p.m. before U.S. Magistrate Judge William B. Connelly in U.S. District Court in Greenbelt, Maryland.

 

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.

 

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

 

The indictment alleges that from January 2015 through April 2016, Vaughn conspired with former Prince George’s County Liquor Board member and later, Chief Liquor Inspector, David Dae Sok Son, liquor store owners Young Jung Paig, Shin Ja Lee, and others in order to enrich himself personally, in exchange for Vaughn performing and agreeing to perform favorable official action.

 

Specifically, the indictment alleges that Vaughn took over $10,000 in cash bribe payments from Paig, Lee, and others, in exchange for influencing and voting for the Sunday Sales Bill, which established up to 100 Sunday liquor sales permits in Prince George’s County for holders of Class A licenses and Class B licenses with an off-sale privilege; and the Additional Sunday Permits Bill, which raised the limit of Sunday liquor sales permits in Prince George’s County from 100 to 105, and authorized the additional five permits “only to holders of a Class B beer, wine, and liquor license with an off-sale privilege that acquired the license on or after January 1, 2016.” Vaughn voted in favor of the bills, which benefitted Paig and Lee’s liquor stores, in the Economic Matters Committee, and in the Maryland House of Delegates.

 

Further, the indictment alleges that from 2012 through 2016, Vaughn diverted money donated to his campaign finance committee, Friends of Michael Vaughn (FOMV), for his personal use. A candidate, such as Vaughn, is prohibited from personally making disbursements from a political committee established to promote his candidacy. According to the indictment, Vaughn withdrew campaign funds from the FOMV account to use for personal expenses, including electronically transferring money from the FOMV campaign account directly to Vaughn’s personal bank account, making payments to his personal American Express credit card account, and making payments of his personal income tax to the Internal Revenue Service. In addition, Vaughn allegedly received campaign contributions, deposited them into the FOMV account, and then converted them to his personal use without identifying the contributions on campaign finance reports made to the Maryland State Board of Elections. For example, from June 10, 2015, through November 10, 2015, at least 25 checks totaling approximately $11,175, were deposited into the FOMV account but not reported on the FOMV campaign finance report. As with the other amounts deposited into the FOMV account, the funds from these checks were then withdrawn by Vaughn and converted for his personal use. The indictment alleges that Vaughn caused the filing of fraudulent campaign finance reports with the Maryland State Board of Elections in order to conceal the scheme from FOMV and the FOMV campaign contributors. For example, as of January 14, 2015, the campaign finance report filed with the Maryland State Board of Elections showed a balance in the FOMV account of $64,462.44. The indictment alleges that the expenditures identified in the report did not include substantial cash withdrawals made by Vaughn, and that the account actual balance on that date, according to bank statements, was only $1,654.36.

 

If convicted, Vaughn faces a maximum sentence of five years in prison for the conspiracy; a maximum of 10 years in prison for each of four counts of bribery; and a maximum of 20 years in prison for each of three counts of wire fraud.

 

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

 

United States Attorney Rod J. Rosenstein commended the FBI, IRS-CI, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom, Menaka S. Kalaskar, and Arun G. Rao, who are prosecuting the case.

Baltimore, Maryland – A federal grand jury has returned an indictment charging eleven alleged members of a drug trafficking organization (DTO), with conspiracy to distribute and possess with the intent to distribute heroin, cocaine and crack cocaine. The indictment was returned on March 7, 2017.

 

The indictment charges the following defendants:

 

Terrell Allen, a/k/a Fat Relly and Chino, age 43, of Baltimore; Lawrence Trogdon, a/k/a Bucky, age 34, of Dundalk, Maryland;

Laroy Weaver, a/k/a Jones and Rell, age 34, of Baltimore;

Brandon Brown, a/k/a Ball, age 27, of Baltimore; Delanie McCloud, a/k/a D-money, age 31, of Baltimore; Deangelo Rouzer, a/k/a Wacky, age 35, of Gwynn Oak, Maryland;

Trey Allen, age 24, of Baltimore;

Valleria Rice, a/k/a Muk, age 26, of Baltimore;

Michael Grant, age 37, of Baltimore;

Dantre Hill, age 21, of Baltimore; and

Mavrreck Boone, a/k/a Rocie, age 24, of Baltimore.

 

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Commissioner Kevin Davis of the Baltimore Police Department.

 

“Drug-dealing organizations are responsible for most of the murders and shootings in Baltimore,” said U.S. Attorney Rod J. Rosenstein.

 

“There is no room in Baltimore for individuals who have no regard for the safety of our communities and who disrupt the lives of law-abiding citizens. This case and its thousands of hours of investigative work represents the second phase of multiple planned enforcement efforts targeting the individuals and organizations that foment the violence that continues to plague our city,” said Danny Board, ATF Baltimore Field Division Special Agent in Charge.

 

According to the indictment and the previously filed criminal complaint, from June 2016 through February 22, 2017, the Allen DTO allegedly sold heroin, cocaine and crack cocaine from open-air drug shops in Baltimore City, including in the Latrobe Homes housing complex. According to the affidavit, an ongoing feud between the Allen DTO and a rival drug organization resulted in one of the defendants being shot.

 

As noted, the defendants were previously charged by a federal criminal complaint. Six of the defendants were arrested on February 22, 2017, two were already in custody on state charges, and one was arrested since then. In addition to the arrests on February 22, 2017, search warrants were executed at six locations believed to be connected to the conspiracy, including the residences of several of the alleged conspirators. Two defendants remain at large.

 

If convicted, the defendants each face a maximum sentence of 40 years in prison. Seven of the defendants have had their initial appearances and five have been detained pending trial. Two of the defendants have been released under the supervision of U.S. Pretrial Services. No court appearance has been scheduled yet on the indictment.

 

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

 

United States Attorney Rod J. Rosenstein commended the ATF and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Clinton J. Fuchs and David Metcalf, who are prosecuting the case.