District of Maryland

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced James Webb, Jr. age 42, of Perry Hall, Maryland today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute cocaine and heroin.

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; Commissioner Kevin Davis of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.

According to information presented to the court at Webb’s plea and sentencing hearings, from May through November 2015, Webb distributed cocaine and heroin which he obtained from co-conspirators in Houston, Texas.  The co-conspirators made regular trips from Houston to Baltimore, bringing with them kilograms of cocaine and heroin, and then returning to Houston with the cash proceeds of those sales.

As a result of the DEA investigation, which included a court-ordered wiretap on Webb’s cellphone, on November 8, 2015, Webb was arrested and a search warrant was executed at Webb’s stash house in Parkville, Maryland.  From that location, investigators recovered a hydraulic press intended for the repackaging of narcotics, packaging material, and other paraphernalia associated with drug distribution.  From a storage unit in the basement of this apartment building, investigators seized more than five kilograms of cocaine and more than one kilogram of heroin.  The co-conspirators had brought these drugs to Webb from Houston and they had left the stash house to return to Houston just prior to the searches conducted by police.

At today’s hearing, the government argued that during the course of the conspiracy, Webb obtained more than 15 kilograms but less than 50 kilograms of cocaine (including its equivalent in heroin) which was intended for distribution.

United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department and Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Joshua T. Ferrentino, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – A federal jury today convicted Raymond Idemudia Aigbekaen, age 29, of Amityville, New York, for conspiracy to commit sex trafficking, sex trafficking of a minor and other charges related to the trafficking of a 16 year-old female for prostitution in Maryland, Virginia, and New York.

The conviction 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 Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Harford County Sheriff Jeffrey R. Gahler and the Harford County Child Advocacy Center (HCCAC); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police;.

According to information presented at his nine-day trial, from late February through April 12, 2015, Aigbekaen and his co-defendant, Marcell Greene, trafficked a 16 year-old girl for prostitution. On April 12, 2015, the victim called 911 from a motel room in Bel Air, Maryland.  Members of the Harford County Child Advocacy Center responded and the victim eventually advised that she had been taken to Virginia and Maryland from New York by two men, one named Marcell and another named “Raymond” who was Nigerian.  The victim advised that commercial sex ads of her were posted on a webpage, and that she engaged in commercial sex acts with prostitution dates.  Law enforcement was able to identify Aigbekaen as the person who rented the hotel room where victim was staying. 

Items, such as tissues and used condoms, were recovered from the trash cans of the hotel room used by Aigbekaen, Greene and the victim on April 11-12, 2015.  Some of these items were found to contain DNA evidence, including DNA evidence that matched the co-defendant, Greene.  Aigbekaen was determined to be a potential contributor to stains on the victim’s underwear.  Hotel records also show that Aigbekaen also rented rooms on March 30, 2015 to April 1, 2015 and from April 2, 2015 to April 4, 2015.  Hotel records also showed that Aigbekaen rented rooms at other hotels in Maryland and Fredericksburg, Virginia and Virginia Beach, Virginia.

Law enforcement were able to locate internet prostitution advertisements advertising the victim for prostitution using Aigbekaen’s email accounts.  These advertisements were posted in the Long Island, New York, Maryland, and Virginia areas in February and March 2015.  At least some of these advertisements listed Aigbekaen’s phone number. Photos of the victim that were used in the ads were also found on Aigbekaen’s computer.  Finally, historical cell site records for Aigbekaen’s phones showed him travelling in Maryland and Virginia and puts him in vicinity of Maryland and Virginia hotels that were used when the victim was engaging in commercial sex acts.

As a result of this conviction, upon his release from prison Aigbekaen 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).

Aigbekaen faces a minimum mandatory sentence of 10 years in prison and a maximum of life in prison.   U.S. District Judge James K. Bredar has scheduled sentencing for February 7, 2017, at 10:00 a.m.  Aigbekaen remains detained.

Marcell Greene, age 28, of Wyandanch, New York, previously pleaded guilty to conspiracy to commit sex trafficking and sex trafficking of a minor. Greene also faces a minimum mandatory sentence of 10 years in prison and a maximum of life in prison.   U.S. District Judge James K. Bredar has scheduled sentencing for Greene on October 14, 2016, at 3:00 p.m.  Greene remains detained.

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, the Harford County Sheriff’s Office, Harford County Child Advocacy Center, Maryland State Police, FBI, for their work in the investigation and thanked U.S. Customs and Border Protection – New York for its assistance.  The HCCAC is a task force comprised of the Harford County Sheriff’s Office, Maryland State Police – Bel Air Barrack, Aberdeen, Bel Air, and Havre de Grace Police Departments, Harford County State’s Attorney’s Office, Harford County Department of Social Services – Child Protective Services, and Family and Children’s Services of Central Maryland, which investigates allegations of child maltreatment while also providing services and resources for the abused child and his/her family. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Matthew J. Maddox, who are prosecuting the case.

Baltimore, Maryland - A federal grand jury has returned an indictment charging 24 defendants with a racketeering conspiracy involving their participation in the gang activities of Murdaland Mafia Piru (MMP), which allegedly operated in Northwest Baltimore and Baltimore County. MMP members allegedly engaged in criminal activities in furtherance of the gang, including narcotics trafficking, murder, attempted murder, assault, extortion, obstruction of justice, witness intimidation and retaliation, and money laundering. 

The superseding indictment was returned on September 22, 2016 and unsealed today upon the arrest of the defendants.  Led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), over 150 law enforcement officers participated in today’s operation, arresting seven defendants from this indictment.  Agents executed 12 search warrants and seized five firearms, a taser and a small quantity of heroin and marijuana.  A total of 17 defendants are in custody.  ATF is still searching for seven of the defendants.  Anyone having information can call the ATF 24/7 hotline at 1-888-ATF-TIPS (1-888-283-8477) or send an email to ATFTips@atf.gov .  You can also send a text anonymously via the “ReportIt” mobile app (www.reportit.com) using the ATF Baltimore Field Division as the location.

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

“Most shootings in Baltimore are committed by drug dealers, and conspiracy cases get their attention,” said U.S. Attorney Rod J. Rosenstein. “We can reduce violence by prosecuting members of gangs that foment violence.”        

According to the indictment, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that operates on the streets and in correctional facilities in Maryland and elsewhere.  For many years, MMP has controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, Woodlawn, and Walbrook Junction. 

MMP is descended from the Tree Top Piru (TTP) subset of the Bloods gang.  MMP gang paperwork, states that the 2008 federal indictment of the TTP Bloods gang “destroyed” TTP.  Several former TTP members took advantage of the power vacuum created by the federal indictment and formed MMP in TTP’s stead.  Although MMP adopted some of the same practices as TTP, it developed its own unique ideology—in particular, an association with the terminology and symbols of the Italian Mafia, and a preoccupation with money and murder.

According to the indictment, MMP is organized hierarchically, with Dante Bailey, known as “the Don,” at the top and various subordinates underneath. There are also MMP units corresponding to different geographic regions or prisons, each consisting of a “Boss,” an “Underboss,” and various “Capos,” “Lts,” and “soldiers.”  MMP members are required to follow certain rules of conduct. Members who violate these rules are subject to disciplinary measures or “sanctions,” ranging from fines or work assignments for minor violations, to physical beatings or stabbings for more serious violations, to murder for the most serious violations. MMP members enhance their status within the gang by carrying out acts of violence against rivals; for instance, members can earn a “lightning bolt” tattoo for “killing for the Mob.”  Prospective members of MMP were required to successfully complete an initiation process and recite an oath of loyalty called the “Omerta Code.”  MMP members were required to pay dues to the gang consisting of a portion of the proceeds of their criminal activities, and they were subject to reprisal for failing to do so.  MMP members and associates use gang-related terminology, symbols, and tattoos.  They frequently identify with the letter “M,” which is the first letter of “Murdaland,” “Mafia,” and “Mob”; with the color red, which is the color of the Bloods gang; and with the number “5200,” which is a reference to the 5200 block of Windsor Mill Road.  MMP members could “earn” gang tattoos, including an “M” for taking the MMP oath, a lightning bolt for committing murder in furtherance of the gang, and a pink rose for the wife of an MMP member. 

The indictment alleges that members and associates of MMP operated street-level drug distribution “shops” in various locations in Baltimore City and distributed heroin, cocaine, and crack cocaine, among other controlled substances.  Non-members who wished to sell drugs in MMP’s territories were forced to pay a “tax” or were targeted for violence by MMP members.  MMP’s primary drug shops were located in the 5200 block of Windsor Mill Road (which MMP considered to be its headquarters), and at the intersection of Gwynn Oak Avenue and Liberty Heights Avenue.  The drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, which made it easily accessible to drug customers driving from western Maryland and neighboring states.  It was not unusual for MMP members and associates to sell over a kilogram of drugs per week at this location, which could translate to over $100,000 in drug revenue per week.

According to the indictment, MMP members and associates purchased, maintained, and circulated weapons and firearms for use in criminal activity by MMP members.  They frequently obtained firearms from drug customers in exchange for drugs. MMP members and associates used violence, threats of violence, and intimidation to prevent victims and witnesses from cooperating with law enforcement against members of MMP about criminal acts committed by MMP.

The indictment alleges that MMP members and associates concealed the illegal source of funds by purchasing automobiles and other valuable property through nominees.  MMP members and associates also gambled drug proceeds at casinos in and around Maryland, or simply funneled drug proceeds through casinos to launder the money by making it appear as though they had won the money gambling.

Further, the indictment alleges that MMP members and associates attempted to assume control over legitimate businesses that operated in MMP’s drug territories, including a gas station in the 5200 block of Windsor Mill Road.  MMP members and associates frequently stashed drugs and firearms on the premises of the gas station and made drug sales at the gas pumps or within the store itself. MMP allegedly used social media websites to assert its claim to particular drug territories, intimidate rival gangs and drug traffickers, enhance MMP’s status, and enhance individual members’ status within the gang.  MMP members and associates posted photographs and rap videos to these social media websites in which they flaunted firearms and threatened to kill those who stood in the way of the gang.

The indictment charges the following defendants in the racketeering conspiracy:

Dante Bailey, a/k/a “Gutta,” “Almighty,” and “Wolf,” age 37, of Windsor Mill, Maryland; Dontray Johnson, a/k/a “Gambino,” “Bino,” and “Tray,” age 31, of Windsor Mill; Adrian Jamal Spence, a/k/a “Spittle,” “SP,” and “AJ,” age 29, of Baltimore; William Banks, a/k/a “Trouble,” age 27, of Baltimore; Randy  Banks, a/k/a “Dirt,” age 38, of Baltimore; Ayinde Deleon, a/k/a “Murda,” and “Yin,” age 31, of Baltimore; Dominick Wedlock, a/k/a “Rage,” and “Nick,” age 29, of Baltimore; Jamal Lockley, a/k/a “T-Roy,” and “Droid,” age 37, of Baltimore; Dwight Jenkins, a/k/a “Huggie,” and “Unc,” age 48, of Baltimore; Jacob Bowling, a/k/a “Jakey,” “Ghost,” and “Fred,” age 30, of Gwynn Oak, Maryland; Corloyd Anderson, a/k/a “Bo,” age 33, of Owings Mills, Maryland; Melvin Lashley, a/k/a “Menace,” age 26, of Baltimore; Devon Dent, a/k/a “Tech,” age 26, of Gwynn Oak; William Jones, a/k/a “Bill,” and “Smalls,” age 27, of Baltimore; Jarmal Harrid, a/k/a “J-Rock,” and “PJ,” age 27, of Gwynn Oak; Jamal Smith, a/k/a “Mal,” and “Lil Mal,” age 25, of Gwynn Oak; Tiffany Bailey, a/k/a “Tiff,” age 31, of Windsor Mill; Takuma Tate, a/k/a “Oop,” and “Ook,” age 37, of Baltimore; Maurice Pollock, a/k/a “Reese,” age 22, of Baltimore; Shakeen Davis, a/k/a “Creams,” age 22, of Baltimore; Charles Blackwell, a/k/a “Ci-Bo,” and “Lil Charlie,” age 21, of Woodlawn, Maryland; Kenneth Torry, a/k/a “Kenny,” age 39, of Owings Mills; Delante Lee, a/k/a “Tay Tay,” age 21, of Baltimore; and
Jay Greer, a/k/a “Champagne,” “Montana Gold,” and “Slick,” age 24, of Baltimore.

All but Spence are also charged with conspiracy to distribute narcotics. 

All 24 defendants face a maximum sentence of life in prison for the racketeering conspiracy. All but Spence also face a mandatory minimum of 10 years and a maximum of life in prison for the drug conspiracy.  D. Bailey, Johnson, Spence, W. Banks, Jenkins, and Torry also face gun charges. D. Bailey, Johnson, T. Bailey, Lockley, Pollock, Lee, Jenkins, and Bowling also face related drug distribution charges. The defendants arrested today are expected to have initial appearances in U.S. District Court in Baltimore. The defendants already in custody will be scheduled for an initial appearance at a later date.

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 praised the ATF, Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Christina Hoffman, Jason D. Medinger, and Daniel C. Gardner, who are prosecuting the case.

MURDERLAND MAFIA

DEFENDANT

NICKNAME

COUNTS

Dante BAILEY

Gutta

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

15  Felon in Possession of Firearms and Ammunition

18  Possession with Intent to Distribute Heroin

Dontray JOHNSON

Gambino

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

  4  Possession with Intent to Distribute Heroin

  5  Felon in Possession of Ammunition

  8  Discharging Firearm in Furtherance of Drug Trafficking Crime

Adrian Jamal SPENCE

Spittle

  1  RICO Conspiracy

  6  Felon in Possession of Firearm and Ammunition

William BANKS

Trouble

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

  3  Discharging Firearm in Furtherance of Drug Trafficking Crime

28  Felon in Possession of Firearms and Ammunition

*Randy BANKS

Dirt

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

Ayinde DELEON

Murda

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

Dominick WEDLOCK

Rage

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

Jamal LOCKLEY

T-Roy

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

  9  Distribution of Cocaine Base

Dwight JENKINS

Huggie

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

16  Distribution of Heroin

17, 19, 21  Distribution of Heroin and Cocaine Base

22  Distribution of Cocaine Base (28+ grams)

23  Felon in Possession of Firearm and Ammunition

24  Distribution of Heroin and Cocaine Base (28+ grams)

Jacob BOWLING

Jakey

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

20, 25  Distribution of Cocaine Base

26, 27  Distribution of Cocaine Base (28+ grams)

Corloyd ANDERSON

Bo

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

Melvin LASHLEY

Menace

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

Devon DENT

Tech

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

William JONES

Smalls

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

Jarmal HARRID

J-Rock

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

*Jamal SMITH

Mal

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

*Tiffany BAILEY

Tiff

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

18  Possession with Intent to Distribute Heroin

*Takuma TATE

Oop

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

Maurice POLLOCK

Reese

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

10, 11, 12  Distribution of Heroin

*Shakeen DAVIS

Creams

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

Charles BLACKWELL

Ci-Bo

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

*Kenneth TORRY

Kenny

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

  7  Felon in Possession of Firearm and Ammunition

*Delante LEE

Tay Tay

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

13, 14  Distribution of Cocaine Base

Jay GREER

Slick

  1  RICO Conspiracy

  2  Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)

*Indicates defendants not arrested.

 

 

Greenbelt, Maryland – Two defendants have been arrested on federal indictments charging them with aggravated identity theft and related counts arising from separate fraud schemes. Michelle Renee Marshall, age 46, of Washington, D.C., was arrested on Monday September 19, 2016, and to had her initial appearance today.  She will have a detention hearing in U.S. District Court in Greenbelt at 3:00 p.m. today before U.S. Magistrate Judge Thomas DiGirolamo.  Carlton W. Stuart, age 59, of Bowie, Maryland, was arrested and had his initial appearance on Friday, September 16, 2016.  Stuart was released under the supervision of U.S. Pretrial Services.  The indictments were returned in August and unsealed upon the defendants’ appearance in U.S. District Court in Maryland.

The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Drew Grimm of the U.S. Office of Personnel Management - Office of Inspector General.

Marshall’s indictment alleges that between April and September 2014, Marshall represented to two victims that she would assist them in preparing and filing their federal income tax returns with the IRS.  According to the indictment, Marshall obtained the victims’ PII, which she used to prepare and file their tax returns, with the tax refunds supposedly directed to the victims’ bank accounts.  However, the victims never received any tax refunds.  The indictment alleges that the tax returns directed the over $17,000 in tax refunds owed to the victims into bank accounts controlled by Marshall, not into the victims’ bank accounts.

According to Stuart’s indictment, he did not notify the U.S. Office of Personnel Management (OPM) of Victim A’s death on June 4, 2012.  As a result, between July 2012 and March 2016, OPM continued to make monthly federal retirement and survivor annuity payments to Victim A, totaling $142,490.90.  The indictment alleges that Stuart repeatedly forged Victim A’s signature on U.S. Treasury checks mailed to the victim as part of the retirement annuity, depositing the forged checks into the victim’s bank account.  Further, the indictment alleges that Stuart repeatedly forged Victim A’s signature on checks drawn from the victim’s bank account and made payable to Stuart.

If convicted, the defendants face a mandatory minimum of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft.   In addition, Marshall faces a maximum sentence of 20 years in prison for wire fraud; and Stuart faces a maximum of 10 years in prison for theft of government property. 

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

The 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 OPM – OIG for its investigation of Stuart and IRS-CI for its investigation of Marshall.  Mr. Rosenstein thanked Assistant U.S. Attorney Leah J. Bressack, who is prosecuting both cases, and Assistant U.S. Attorney Erin Pulice who is also prosecuting Marshall.

Baltimore, Maryland –Chief U.S. District Judge Catherine C. Blake sentenced Davon Sanford, a/k/a “Chronic,” age 33, of Baltimore, to 30 years in prison, followed by five years of supervised release, after Sanford pleaded guilty today to discharging a firearm during a crime of violence, resulting in death.    

The plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.

According to his guilty plea, in March of 2012 a physical altercation took place in the vicinity of West Patterson Park Avenue and Chase Street in Baltimore, Maryland.  One of the participants to this altercation was Gregory Parker.  In the days following the altercation, an individual arranged with Tavon Slowe to kill Gregory Parker.  The agreed price for the murder was $5,000.

On March 16, 2012, at approximately 2:30 p.m., Slowe drove his silver Honda Accord to meet the individual.  Davon Sanford was seated in the front passenger seat.  The individual told Slowe where Parker could be found and described Parker as wearing a blue floppy (“Gilligan-style”) hat.  Less than 90 minutes later, Gregory Parker was shot multiple times by Davon Sanford with a 9mm semi-automatic pistol in the 2300 block of East Chase Street in Baltimore City.  Fourteen shell casings were found at the scene.  Parker was wearing a blue floppy “Gilligan” hat when he was shot and killed. 

According to witnesses, the “shooter” fled northbound on Bradford Street and got into a silver vehicle.  Video surveillance shows Sanford, wearing a green hooded sweatshirt with white lettering across the front, running from the murder scene and getting into the silver Honda Accord driven by Slowe.  Law enforcement recovered photographs from the cell phone of an associate that show Davon Sanford wearing the same green hooded sweatshirt with white lettering across the front, as he wore during the murder. 

Tavon Slowe, age 24, of Baltimore, previously pleaded guilty to charges related to two murder for hire contracts. If the Court accepts the plea agreement, Slow will be sentenced to between 23 and 27 years in prison. Chief Judge Blake has scheduled Slowe’s sentencing for October 4, 2016 at 10:00 a.m.

United States Attorney Rod J. Rosenstein praised the FBI, Baltimore Police Department, Safe Streets Task Force and Baltimore State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Joshua T. Ferrentino, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Michael Francis Chaney, age 72, of Whiteford, Maryland, today to five years in federal prison, followed by five years of supervised release, for possession and distribution of child pornography. Judge Motz also ordered that upon his release from prison Chaney 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 Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to his plea agreement, over the course of several years Chaney used several email addresses to both send and receive images of child pornography. On February 6, 2015, a search warrant was executed at Chaney’s residence and his laptop, external hard drive, and other digital media were seized.  Forensic analysis of the items revealed that all had images depicting minors engaged in sexually explicit conduct, including prepubescent minors, and minors engaged in sadistic and/or masochistic conduct or other depictions of violence. There were approximately 1,941 videos and 23,381 image of child pornography which had been downloaded from internet websites.  Chaney admitted that he sought child pornography on the internet and actively traded the images and videos with others, distributing them via the internet.

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 and the Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the federal case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Roy Lee Tolbert, age 43, of Washington, D.C., today to 10 years in federal prison, followed by five years of supervised release, for the armed robbery of a diamond store in Queenstown, Maryland.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent Kevin Perkins of the Federal Bureau of Investigation; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Queen Anne’s County Sheriff Gary Hofmann; and Queen Anne’s County State’s Attorney Lance G. Richardson.  

According to the facts agreed to at the plea hearing, on May 19, 2013, Roy Lee Tolbert, entered a diamond store in Queenstown wearing a ball cap, wig, fake beard, sunglasses, an oversized suit jacket, jeans, and dark colored shoes. Tolbert went to the back of the store, removed a handgun from his waistband and pointed it at employees of the store, demanding the diamonds that were in the display case.  An employee complied with his demands and Tolbert stole approximately 59 engagement-style diamond rings worth an estimated $362,000, placing them into a gray backpack that he was wearing over his stomach.

The robbery was witnessed by an off-duty Maryland State Police sergeant, who provided Tolbert’s description to a 9-1-1 operator, then followed Tolbert as he left the store.  The State Police sergeant saw Tolbert run behind a building to a waiting motorcycle.  Tolbert removed his disguise and placed it into the backpack, then put on a black and neon motorcycle helmet and a black and neon motorcycle jacket.  The State Police sergeant continued to follow Tolbert and saw him flee onto a section of Nesbit Road in Grasonville, Maryland, that is a dead-end street.  The State Police Sergeant blocked the road until uniformed troopers arrived on the scene.  They located Tolbert running through a nearby open field.  Tolbert was able to reach the wood line in the area and escape capture.  Found hidden on the property of a nearby residence was the motorcycle, the motorcycle helmet and jacket, and the disguise worn by Tolbert in the robbery. 

Tolbert’s DNA was recovered from the fake beard and helmet.  The owner of the motorcycle, which had been reported stolen in 2010, was Tolbert’s girlfriend.  In July 2013, she had filed a request for a protection order, in which she mentioned that Tolbert had a gun, and further described him in a confrontation “pacing the lot with something silver in his hand”.  This matches the description of the weapon used during the robbery, which was a semi-automatic handgun with a silver slide.

Tolbert told another person that he committed the robbery, and showed this individual the diamonds.  Tolbert also offered to sell diamonds to a co-worker. 

United States Attorney Rod J. Rosenstein praised the FBI, Maryland State Police, Queen Anne’s County Sheriff’s Office, and Queen Anne’s County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorney Bonnie S. Greenberg, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge George Jarrod Hazel sentenced Paul Raymond Gray, a/k/a “PJ,” age 35, of Lusby, Maryland, today to 66 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute powder and crack cocaine, two counts of distribution of crack cocaine, and being a felon in possession of a firearm.  On September 6, 2016, Judge Hazel sentenced Kamau Muata Lumumba, age 53, also of Indian Head to five years in prison, followed by five years of supervised release, for his participation in the crack cocaine conspiracy.

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; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; Charles County Sheriff Troy Berry; St. Mary’s County Sheriff Tim Cameron; and Calvert County Sheriff Mike Evans.

According to their plea agreements and other court documents, from August 2011 through June 2015, Gray conspired with others, including Lumumba, to distribute crack cocaine.  During the course of the conspiracy, Gray obtained powder cocaine from a number of sources, including through an intermediary whom Gray and Lumumba knew as “Jazz” or “Jazzy.”  Gray generally purchased one or two ounce quantities of cocaine several times a month.  Gray used the powder cocaine to manufacture crack in the kitchen of the mobile home the he owned, using cutting agents to increase the volume of crack for sale.  Over the course of the conspiracy several co-conspirators, including Lumumba, lived in the mobile home with Gray.  Gray, Lumumba and the other co-conspirators who lived at the mobile home distributed powder and crack cocaine from that location to a variety of customers.  When Gray was not at the mobile home Lumumba regularly sold crack for Gray and received a portion of the profits for his assistance.  On occasion Lumumba also transported money and picked up drugs for Gray related to their drug trafficking.

Gray admitted that he also possessed firearms and ammunition during the conspiracy, although he was prohibited from doing so due to several previous felony convictions in Charles County, including convictions for assault and unlawful possession of firearms.

According to Lumumba’s plea agreement, on May 22, 2015, after Gray learned that his drug trafficking was the subject of an active investigation, Gray called Lumumba and instructed him to remove incriminating evidence from the trailer and surrounding property, which Lumumba did.  The evidence removed included containers in which Gray stored and cooked crack cocaine and several scales used by Gray and Lumumba to weigh their narcotics.  After removing the incriminating evidence, Lumumba moved out of the trailer and fled Charles County in an effort to avoid apprehension by law enforcement.  In August 2015, Lumumba learned that he and Gray had been indicted and Lumumba continued to make efforts to evade law enforcement.  On April 14, 2016, the U.S. Marshals tracked down and arrested Lumumba.

United States Attorney Rod J. Rosenstein praised the ATF, DEA, Prince George’s County Police Department, Maryland National Capital Park Police, Prince George’s County Division, and the Charles, St. Mary’s and Calvert County Sheriffs’ Offices for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Michael T. Packard and Leah J. Bressack, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – A federal grand jury indicted five defendants on charges arising from a scheme whereby physicians and administrative personnel associated with a Maryland pain management practice agreed to refer urine specimens to a testing lab for evaluation in return for $1.37 million in kickbacks:

Sandeep Sherlekar, age 51, of Germantown, Maryland, Atif Babar Malik, age 46, of Germantown, Muhammad Ahmad Khan, age 43, of Pakistan, Mubtagha Shah Syed, age 49, of Jersey City, New Jersey, and
Konstantin Bas, age 40, of Brooklyn, New York.

The indictment also charges Sherlekar, Malik and Khan with conspiring to defraud the IRS, and Sherlekar and Malik are further charged with health care fraud and making false statements on patient medical records. The indictment was returned on June 28, 2016 and unsealed today.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Scott Rezendes of the Office of Personnel Management – Office of Inspector General.

Sherlekar and Malik were physicians trained in pain management and Sherlekar was also trained in anesthesiology. The two merged their Maryland pain management practices in February 2009 to create Advanced Pain Management Services, LLC (APMS), first in Frederick, Maryland, and expanding to multiple offices in Maryland.  Starting in August 2010, APMS began doing business under the name of American Spine Center, LLC (APMS/ASC) and the APMS entity was thereafter used in submitting bills for medical services. Khan was the CEO of APMS/ASC and co-conspirator Vic Wadwha was its CFO.

Bas was the owner and CEO of a medical testing laboratory principally located in Linden, New Jersey.  Syed was a marketing agent who solicited medical practices to submit blood and urine specimens to the medical laboratory for testing.   Bas also owned a company which provided pharmaceuticals and medications; and a third company which provided medical and surgical supplies, including orthotic devices. 

Kickback Scheme

APMS/ASC required patients who were prescribed pain relief medications to submit urine samples for testing in order to monitor the levels of pain medication or other narcotics in their bodies.  From spring 2011 to August 2012, APMS/ASC typically generated approximately 700 to 1,000 urine samples each month which were sent to an outside lab for testing.

According to the 36 count indictment, starting in February 2011, Bas agreed to pay kickbacks to the principals of APMS/ASC in return for the referral of APMS/ASC patients to his companies for the testing of urine samples, for back braces, and for pain creams.  Syed is charged with facilitating the referrals-for-kickbacks arrangement, and receiving 5% of the proceeds of the agreement.   

From the time the kickback payments commenced in June 2011 until the end of the scheme in August 2012, Bas caused his companies to pay kickbacks totaling approximately $1.37 million to Sherlekar, Malik, Khan and Wadhwa.  Out of the total amount of the kickback payments, the indictment charges that Sherlekar and Malik received approximately $244,000 each, Khan received approximately $400,000, and the balance of the kickback payments were retained by Wadhwa. 

All five defendants face a maximum sentence of five years in prison for conspiring to violate the Anti-Kickback Act.  Sherlekar and Malik also face five years in prison on each of 12 counts of soliciting and receipt of unlawful remuneration in violation of the Anti-Kickback Act. 

Defrauding the IRS

The indictment charges that from January 2009 to the end of 2013 Sherlekar, Malik and Khan conspired to defraud the IRS by not reporting as income cash payments received by APMS/ASC, and by filing false corporate tax returns that overstated the practice’s expenses and understated its revenues. 

Specifically, the indictment charges that Sherlekar, Malik, Khan and Wadhwa caused cash payments received from patients to be collected without being recorded in the APMS/ASC accounting records, and provided fraudulent accounting records to an accountant to use in preparing inaccurate tax returns for APMS and its related entities.  The indictment further charges that Sherlekar and Malik caused Wadhwa: to collect and distribute unrecorded cash payments; and to purchase luxury items such as expensive jewelry on their behalf, including an engagement ring and a watch purchased for Malik’s benefit in October 2010, with over $10,000 in cash skimmed from the business receipts of APMS.  Sherlekar, Malik, Khan and Wadhwa also caused their accountant to falsely inflate corporate expenses, to shift revenue between different APMS-related entities, and to file false individual income tax returns on behalf of both Sherlekar and Malik. 

Sherlekar, Malik and Khan face a maximum sentence of five years in prison for conspiring to defraud the IRS.

Health Care Fraud

APMS/ASC provided diagnostic or therapeutic nerve blocks and injections and other surgical procedures related to spinal conditions, which may be provided in conjunction with anesthesia services.  If two providers are present during a surgical procedure, and one performs the surgical procedure and the other administers the anesthesia, then the anesthesiologist may separately bill for the anesthesia service.  However, if a surgeon or anesthesiologist is alone in the procedure room and administers the anesthesia service while also performing the surgical procedure, then the anesthesia service may not be billed separately, but instead is included within the fee for the surgical procedure. 

The indictment charges that from January 2010 to the summer of 2012, only one physician at APMS/ASC performed both the spinal injection and administered the anesthesia.  On certain specified occasions, Sherlekar caused separate bills to be submitted for the surgical and anesthesia procedures as if both a surgeon and an anesthesiologist had been present.  For example, on one occasion in January 2012, with Malik’s consent, Sherlekar caused patients’ medical records to reflect that Malik had also been present for the procedure when, in fact, he was in New Jersey at the time. 

Sherlekar and Malik face a maximum sentence of 10 years in prison for health care fraud.  Malik faces a maximum sentence of five years in prison for making false statements relating to health care matters.

No court appearance has been scheduled for the defendants. 

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. 

Vic Wadhwa, age 39, of Frederick, Maryland, previously pleaded guilty to his participation in the kickback scheme and awaits sentencing.

United States Attorney Rod J. Rosenstein commended the FBI, Department of Health and Human Services – OIG, IRS - Criminal Investigation, Defense Criminal Investigative Service and Office of Personnel Management – OIG for their work in the investigation.  Mr. Rosenstein also thanked Assistant U.S. Attorneys Jefferson M. Gray and Sean Delaney, who are prosecuting the cases.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Jose Antonio Jaramillo, age 55, of Lusby, Maryland, today to 17 years in federal prison, followed by 15 years years of supervised release, for production of child pornography.  Judge Grimm also ordered that upon his release from prison, Jaramillo 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 Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Clark E. Settles of HSI Washington D.C.; Calvert County Sheriff Mike Evans; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to his plea agreement, from at least December 2014 through July 2015, Jaramillo, posing as a teenaged male named “Tommy James,” “Thomas James Jones,” or “Thomas James,” used email, applications on cellular phones and social media sites to induce, coerce and entice more than five minor female victims between the ages of 13 and 16 to send him sexually explicit images of themselves over the internet. 

Jaramillo admitted that, using the “Tommy James” persona, he had or attempted to have sexually explicit conversations with at least 14 minor females and induced at least seven victims to produce sexually explicit images and videos of themselves and transmit those images to Jaramillo. 

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 and Washington, D.C, the Calvert County Sheriff’s Office, and the Maryland State Police Internet Crimes Against Children Task Force for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Ray D. McKenzie and Kristi N. O’Malley, who prosecuted the case.

Baltimore, Maryland – A federal grand jury charged Sean Hill, age 26, of Baltimore, today to with 11 counts of commercial robbery committed over a three month period.  The indictment was returned on September 20, 2016.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Chief Gary Gardner of the Howard County Police Department.

According to the 11-count indictment, from November 13, 2015 to January 6, 2016, Hill robbed six check cashing stores, three motels, a shoe store, and a garage.  Specifically, the indictment alleges that Hill robbed the following Baltimore stores:  Dolfield Money Center on Dolfield Avenue; Ace Cash Express stores on Patapsco, Clifton (twice), and Greenmount Avenues; America’s Cash Express on York Road; Payless Shoe Source on Liberty Road; Motel 6 on Whitehead Court; Gwynns Falls Auto on Gwynns Falls Parkway; and the Knights Inn on Security Boulevard.  Hill also allegedly robbed the Holiday Inn on Washington Boulevard in Jessup.

If convicted, Hill faces a maximum sentence of 20 years in prison on each of the 11 counts.  No court appearance has been scheduled for Hill in U.S. District Court in Baltimore.  Hill is 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 the FBI, Baltimore City, Baltimore County and Howard County Police Departments for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney John W. Sippel, Jr., who is prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jose Miguel Tapia, age 30, of Baltimore, to five years in prison, followed by five years of supervised release, for bank fraud and aggravated identity theft arising from several schemes in which Tapia fraudulently obtained over $130,000.  Chief Judge Blake also entered an order requiring Tapia to pay restitution in the full amount of the victims’ losses, which is $132,548.85.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.

According to Tapia’s plea agreement, from October 2010 through November 2014, Tapia devised multiple schemes to defraud financial institutions.  For example, during the time of the fraud Tapia obtained the personal identification information of an individual, which Tapia used to gain access to the victim’s credit accounts.  Tapia then made purchases totaling approximately $41,000 against the victim’s credit cards.  In addition, Tapia submitted fraudulent applications for the financing of automobiles, using the personal information of the victim in order to qualify for the loans and to purchase the vehicles.  Tapia obtained and attempted to obtain vehicles worth approximately $38,000, including a 2011 Infinity G37X luxury vehicle, which Tapia purchased on October 9, 2014, using the social security number of the victim.

From September through November 2014, Tapia and others posed as account holders of two businesses in order to gain access to their business accounts at a home improvement store.  Once he gained access to the accounts, he made purchases on the accounts, and changed the phone numbers and passwords for the accounts without the knowledge and consent of the business owners.  Tapia made a total of approximately $48,000 in unauthorized purchases at the home improvement store against the business accounts of the victims.  To extend the scheme and have access to more credit, Tapia obtained the financial account information of a hotel.  Tapia withdrew approximately $45,000 from bank accounts owned by the hotel, which he used to pay down the account balances of the victim businesses at the home improvement store.  Tapia also posed as an employee of the hotel to open an account at a phone store in Fullerton, Maryland, then charged approximately $2,800 against that account, which was billed to the victim hotel.

Finally, Tapia gained access to Verizon account information of employees at a university in Baltimore, which he used to obtain approximately $9,199 in smartphones, and other goods and services.

The total actual loss to the victims as a result of Tapia’s fraudulent activities was $132,548.85.

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 - Baltimore Field Office and Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.

Baltimore, MD –U.S. Attorney Rod Rosenstein and Maryland Attorney General Brian Frosh joined state and federal officials throughout the country in proclaiming the week of September 19th as “Heroin and Opioid Awareness Week” to bring attention to the epidemic of heroin and opioid-related overdose deaths in Maryland.

Opioid and heroin addiction and abuse across the nation is rampant. In Maryland alone, heroin-related deaths increased by over 200% from 2011 to 2015, rising from 247 to 748. There has also been an alarming spike in deaths from fentanyl, rising 105% during the first quarter of 2016 as compared to the same time in 2015. The increases in overdose deaths are not just seen in Maryland’s larger cities – they have been reported throughout the state, including western and central Maryland and the Eastern Shore.

“Heroin and Opioid Awareness Week gives us the chance to educate the public about the dangers of heroin and opioid abuse, and strategies to stop this epidemic that is killing our children, friends, and neighbors,” said U.S. Attorney Rod Rosenstein.  “We will continue to work closely with our law enforcement partners to prosecute those who are putting these drugs on our streets, and to build community coalitions to fight this epidemic.”

“Raising awareness is just one step in addressing this widespread, complex epidemic in our State,” said Attorney General Frosh. “Opioids are highly addictive and extremely dangerous, altering the users’ brain permanently, even after just one use. Our goal is to educate as many people as possible so that we save lives, and prosecute those that traffic illegal heroin into Maryland. Addiction to opiates is dangerous, whether obtained through prescriptions or on the street.”

Every heroin overdose in Maryland is being investigated as a homicide, in an effort to identify the distributor. Together with the Drug Enforcement Agency and the State’s Attorneys of Maryland, the Maryland Attorney General’s Office and the U.S. Attorney’s Office are developing a best practices model on gathering evidence required for criminal prosecution.

The Organized Crime Unit of the Attorney General’s Office has prioritized combatting the heroin epidemic by focusing on dismantling the most dangerous drug organizations across the State.  Since its inception in 2015, the Organized Crime Unit has indicted over 50 drug traffickers – from the traffickers who knowingly distribute fatal doses of heroin – usually cut or mixed with fentanyl – to the violent trafficking organizations that profit off of addicted individuals. The Unit, in coordination with local, state, and federal prosecutors and law enforcement agencies, is currently investigating dozens more and is committed to continuing to aid in the fight against this tragic epidemic. 

Many people become addicted to legally prescribed opiates, but switch to heroin, fentanyl or other drugs, when they can no longer obtain their prescription. A 2014 national survey found an estimated 1.4 million people in the U.S. abused a prescription painkiller for the first time that year. Approximately one in five high school seniors reports misusing prescription drugs at least once.

The U.S. Attorney’s Office and Maryland Attorney General’s Office will continue to work with federal, state and local law enforcement as well as medical and public health authorities, community groups and concerned citizens to develop a coordinated response across all elements of government. Our enforcement efforts are much more effective when they are part of a larger strategy that seeks to educate potential drug users and prevent their involvement with opioids in the first place.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Evans Appiah, a/k/a Sean Carter, age 28, of Silver Spring, Maryland, on September 12, 2016, to seven years in prison, followed by four years of supervised release, for conspiracy, mail and wire fraud, and aggravated identity theft arising from an internet romance scheme in which the victims were defrauded of more than $300,000.  Judge Hazel also ordered Appiah to forfeit and pay restitution of $303,800.11, the total amount of the loss.  Appiah has been detained since Judge Hazel ordered that he be immediately taken into custody following the jury’s guilty verdict on May 4, 2016.

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 James Murray of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to testimony at his six day trial, Appiah and his co-conspirators searched online dating websites and initiated romantic relationships with male and female victims in order to obtain money from them.  The relationships began with emails and instant messaging and escalated to telephone calls and primarily text messages.  After gaining the victims trust, Appiah and his co-conspirators began asking for money for a variety of reasons, often invoking false stories and promises to convince the victims to send them money. 

According to evidence presented at trial, from December 2013 through June 2015, Appiah opened and maintained accounts in order to receive money from the victims.  Once the victims had deposited the funds requested by Appiah and the co-conspirators into the accounts controlled by Appiah, he disbursed the money by transferring it to other accounts, withdrawing cash, and by purchasing goods for shipment to co-conspirators outside of the United States.  At least eleven confirmed victims were defrauded of more than $300,000.

Appiah also used the name and identifying information of one victim in particular, while depositing one of the victim cashier’s checks into his own bank account.

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 U.S. Secret Service and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom and Special Assistant U.S. Attorney Jennifer L. Wine, who prosecuted the case.

Defendant Admitted to Shooting and Killing an Individual Believed to Be a Rival Gang Member 

A Hyattsville, Maryland, man pleaded guilty today, just before trial, to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder.

Assistant Attorney General Leslie R. Caldwell 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 Hank Stawinski of the Prince George’s County, Maryland, Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.

Luis Guzman-Ventura, aka Casper, 22, pleaded guilty before Senior U.S. District Judge Roger W. Titus of the District of Maryland to conspiracy to participate in a racketeering enterprise.  He is scheduled to be sentenced on Jan. 4, 2017.

MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Prince George’s County, Montgomery County and Frederick County, Maryland.  In pleading guilty, Guzman-Ventura admitted that he was a member of MS-13 and and associate of the MS-13 Weedons Clique.

According to his plea agreement, from at least 2010 through 2013, Guzman-Ventura conspired with members and associates of MS-13 to engage in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation.

Specifically, Guzman-Ventura admitted that on Dec. 5, 2012, he was the front-seat passenger in a vehicle being driven by another MS-13 member, Jose Rodriguez-Nunez, and Guzman-Ventura shot at three individuals believed to be rival gang members, killing one and wounding another.  After the shooting, Rodriguez-Nunez and Guzman-Ventura fled the scene to avoid being identified, according to their plea agreements.

Rodriguez-Nunez, aka Killer, 27, also of Hyattsville, previously pleaded guilty to being the driver in this drive-by shooting and is scheduled to be sentenced on Jan. 9, 2017.  Guzman-Ventura and Rodriguez-Nunez remain detained pending sentencing. 

In total, 10 defendants have pleaded guilty and three have been convicted at trial for their roles in the racketeering conspiracy.

HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department and the Prince George’s County State’s Attorney’s Office investigated the case.  The Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit provided assistance in the investigation.  Trial Attorney Catherine Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan are prosecuting this case.

Greenbelt, Maryland –Luis Guzman-Ventura, a/k/a “Casper,” age 22, of Hyattsville, Maryland, pleaded today, just before the first day of trial, to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder.                

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell 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 Hank Stawinski of the Prince George’s County Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

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

According to his plea agreement and court documents, from at least 2010 through 2013, Guzman-Ventura conspired with members and associates of MS-13 to engage in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation. During that time, Guzman-Ventura was a member and associate of MS-13 and of the Weedons Clique of MS-13.

Specifically, Guzman-Ventura admitted that on December 5, 2012, he was the front seat passenger in a vehicle being driven by another MS-13 member, Jose Rodriguez-Nunez.  They were driving in the Lewisdale area of Prince George’s County, looking for rival gang members.  Guzman-Ventura admitted that he had a hand gun and shot at three individuals believed to be rival gang members, killing one and wounding another.  After the shooting, Rodriguez-Nunez drove away from the scene.  When police stopped the vehicle a short time later, Guzman-Ventura got out of the vehicle and ran away.

Guzman-Ventura and the government have agreed that if the Court accepts the plea agreement, Guzman-Ventura will be sentenced to between 312 and 360 months in prison.  U.S. District Judge Roger W. Titus has scheduled sentencing for January 4, 2017.  Guzman-Ventura remains detained pending sentencing.

Jose Rodriguez-Nunez, a/k/a “Killer,” age 27, of Hyattsville, Maryland, previously pleaded guilty to being the driver in this drive-by shooting and is expected to be sentenced to between 216 and 240 months in prison at his sentencing, scheduled on January 9, 2017, at 10:00 a.m.  Rodriguez-Nunez also remains detained. 

In addition, eight other defendants have pleaded guilty and three have been convicted at trial for their roles in the racketeering conspiracy.

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department; and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, 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 William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Catherine Dick with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.

Greenbelt, Maryland – A federal jury today convicted Jemel Maurice Lyles, a/k/a Michael Anderson, Anthony Alva and Tony Alva, age 35, of Beltsville, Maryland, for conspiracy to commit wire fraud, wire fraud and money laundering, arising from a scheme in which he fraudulently received $72,000 from a victim after falsely promising to assist the victim to obtain $1 million in financing for a day care center.

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.

According to court documents and evidence presented at his five-day trial, co-conspirator Stephen Courtney Evans introduced Victim 1 to Lyles, whom he identified as “Michael Anderson.” The victim was looking for capital to finance a day care center. Lyles communicated with the victim by email or telephone under the alias of Michael Anderson, the CFO of Capital Group Holdings.  Lyles and Evans falsely represented that CGH was a financial services business and for a fee, could obtain a Standby Letter of Credit (SBLC) for the victim.  Lyles agreed to sell the victim a $1 million SBLC in exchange for a 7.2% fee of the total amount, or $72,000.  According to trial testimony, Lyles falsely represented that the victim could use the SBLC as collateral to obtain a non-recourse loan (a loan that the victim would not be required to pay back) from another financial institution.

The evidence showed that Lyles falsely told the victim that Hampstead Private Finance Group Limited (HPFG) would provide the victim with an $800,000 non-recourse loan, using the $1 million SBLC as collateral.  According to witness testimony, Lyles communicated with the victim using a purported HPFG email address, which Lyles created to perpetrate the scheme, and the alias “Tony Alva,” the Chief Financial Officer of Hampstead Private Finance Group, which at that time was a defunct entity.  Using the Alva alias, Lyles falsely confirmed to the victim that HPFG would accept the  $1 million SBLC, which the victim was to obtain from CGH, as collateral on an $800,000 non-recourse loan.

According to evidence presented at trial, after receiving the victim’s $72,000 fee for the SBLC, Lyles took the money for his personal use, including the purchase of a Land Rover, and payment of past due rent.  Lyles (as Anderson) continued to assure the victim that a $1 million SBLC had been purchased and that the transaction was being processed.  Lyles (as Anderson) also falsely told the victim that he would return the victim’s $72,000 fee.

Lyles faces a maximum sentence of 20 years in prison and a fine of $250,000 for the conspiracy, and for wire fraud; and a maximum of 10 years in prison for each of the two counts of money laundering.  U.S. District Judge Deborah K. Chasanow has scheduled his sentencing for January 23, 2017, at 9:00 a.m.

Co-conspirator Stephen Courtney Evans, age 50, of Manassas, Virginia, previously pleaded guilty to his role in the scheme and is scheduled to be sentenced on November 7, 2016, at 10:00 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 Ray D. McKenzie and Thomas M. Sullivan, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced registered sex offender Gary Scott Conway, age 45, of Havre de Grace, Maryland, today to 20 years in prison, followed by lifetime supervised release.  Conway pleaded guilty to transporting child pornography, and admitted a 20 year history of sexually abusing at least eight minor victims, including infants and a severely autistic, non-verbal child. Judge Motz ordered that upon his release from prison Conway 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).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; the Federal Bureau of Investigation, Idaho Office; Ada County (Idaho) Sheriff Stephen Bartlett; Harford County Sheriff Jeffrey R. Gahler and the Harford County Child Advocacy Center; and U.S. Marshal Johnny Hughes.

According to court documents and testimony at today’s sentencing hearing, Conway has 10 previous criminal convictions, including sexual abuse of a minor and failing to register as a sex offender.  Conway’s collection of child pornography numbered over 3,100 images and 319 videos, which Conway collected on the internet.  According to the statement of facts in his plea agreement, from October 2014 to July 2015, Conway used an internet chat website to communicate with adults and minor children. Conway admitted that during live video chats on the website, Conway directed teenage boys to masturbate or display their genitalia, and also broadcast videos of himself masturbating to the teenage boys.  Beginning on March 30, 2015, he uploaded child pornography to an internet-based file storage service (the service).

On May 29, 2015, representatives from the service notified the National Center for Missing and Exploited Children that Conway’s account contained at least 35 videos of child pornography.  After an investigation determined that the files were uploaded from Conway’s residence, on July 8, 2015, the Harford County Sheriff’s Office executed a search warrant at the residence.  Investigators seized a desktop computer and other digital media.  Forensic analysis of the computer revealed at least 350 images of child pornography, including depictions of prepubescent children engaged in sexual acts. 

Conway’s internet file storage service account was examined pursuant to a search warrant, and was found to contain approximately 3,174 unique images and 319 unique videos of child pornography.  The graphic and disturbing videos and images depicted prepubescent boys and girls, engaged in sexual acts with adult men, including oral sex and anal sex, and other images of sadistic conduct against children.

On July 14, 2015, Conway fled Maryland. Conway was a registered sex offender having been convicted in 2004 in the Circuit Court for Harford County, Maryland of a sexual offense involving 15 year old victim, and was sentenced to 10 years in prison, all of which was initially suspended.  When he left Maryland, Conway failed to notify the Maryland Sex Offender Registration authorities, as required by law.  He travelled to Virginia, Tennessee, New Mexico, Arkansas, Oklahoma, Texas, California, Arizona and Idaho.

Conway stayed at a resort in Sedona, Arizona for 12 days, never notifying state authorities of his sex offender status. During that time, two families at the resort complained to the local authorities that Conway made inappropriate sexual advances toward their teenage sons.  After being questioned by Sedona Police, Conway left Sedona before his resort reservation was completed.  Conway went to an amusement park in California, then to Idaho, where he stayed for more than three weeks, never notifying the state authorities of his sex offender status.  He was arrested in Idaho on August 26, 2015. 

After his arrest, Conway told law enforcement that on a previous visit to the amusement park he discovered a peephole in a men’s bathroom stall, which allowed him to see the genitalia of children using the nearby stall.  He had hoped the peephole still existed, but it did not.  Conway admitted that as a medical professional in the Navy, he once performed oral sex on a male patient while the patient was sedated.  He also admitted to sexually molesting a severely autistic, non-verbal boy while the victim was 11 to 13 years old; having sexual contact on multiple occasions with an eight year old girl; sexually molesting two infants, one of which was the child of a Navy colleague whom he was babysitting; fondling two boys between the ages of nine and 10 years old while playing with them in and around a pool; and engaging in sex acts with two different 15 year old boys who he met online.

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, Harford County Sheriff’s Office, Harford County Child Advocacy Center (HCCAC), Ada County (Idaho) Sheriff’s Office; and U.S. Marshal Service for their work in the investigation.  The HCCAC is a task force comprised of the Harford County Sheriff’s Office, Maryland State Police – Bel Air Barrack, Aberdeen, Bel Air, and Havre de Grace Police Departments, Harford County State’s Attorney’s Office, Harford County Department of Social Services – Child Protective Services, and Family and Children’s Services of Central Maryland, which investigates allegations of child maltreatment while also providing services and resources for the abused child and his/her family. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

Baltimore, Maryland - A federal grand jury has returned an indictment charging 21 defendants for being part of the Hillside Enterprise, a drug distribution conspiracy which operated for 14 years in the Cherry Hill section of Baltimore. The indictment alleges that member of the Hillside Enterprise committed acts of violence in order to fund their narcotics activities and intimidate others who would interfere with the enterprise. The indictment was returned on September 8, 2016 and unsealed today.  Thirteen defendants are in custody.  Law enforcement is still searching for eight of the defendants.            

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

“The most important thing law enforcement officers can do to stop violence is to make clear that killers will be held accountable,” said U.S. Attorney Rod J. Rosenstein. “Although the only crime charged in this indictment is a drug conspiracy, the allegations include 13 murders and 21 non-fatal shootings. Conspiracy cases are a valuable tool to put violent gangs out of business.”          

According to the indictment, beginning in at least early 2002, the Hillside Enterprise distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in the Cherry Hill Shopping Center, in other locations throughout Cherry Hill, and in west and southwest Baltimore City. The indictment alleges that members of the Hillside Enterprise used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization, including narcotics trafficking. Hillside members allegedly used residences in and around Cherry Hill to cut and package drugs for distribution, primarily heroin, powder cocaine, and crack. Only trusted members of the Hillside Enterprise were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, members used colored topped vials or colored the drugs with food coloring.  

The indictment alleges that members of the Hillside Enterprise routinely carried firearms, and committed home invasion and street robberies, and other acts of violence in furtherance of the organization’s activities, including shootings, beatings, murders, and other violence in order to intimidate others who would interfere with their narcotics trafficking.  Acts of violence were also committed to discipline members within the Hillside Enterprise for transgressions, real or perceived, against the conspiracy. According to the indictment, members of the Hillside Enterprise used gang signs to communicate and some had tattoos reflecting their allegiance to the conspiracy.

The indictment charges the following defendants:

*Travis Alewine, a/k/a Sticks, age 24; *Jerryan Burrell, a/k/a Rhino, age 31; *Leonard Chase, a/k/a Nard, age 22; *Deaven Cherry, a/k/a Gotti, age 29; Delonte Conley, a/k/a Tay, Ziggy, age 24; *Christopher Dukes, a/k/a Scarface, age 24; Michael Evans, a/k/a Pee Wee, age 22; *Marshon Floyd, a/k/a Killer, age 25; *Kevin Horsey, a/k/a What What, age 24; Marcus Johnson, a/k/a Black, age 25; *Keenan Lawson, a/k/a Blackface, age 24; Stevie Lawson, a/k/a GB, age 26; *Terrell Luster, a/k/a Relly, age 28; Cintront Lynn, a/k/a Stitch, Lil Cuz, age 20; Van McNutt, a/k/a Butt Butt, age 38; *Caesar Rice, a/k/a  Stinky, age 24; Devin Rodgers, a/k/a Donkey, Dick Butkus, age 21; Daniel Seawell, a/k/a  June Bug, age 20; Michael Truehart, a/k/a Papers, age 20; Robert White, a/k/a Beanhead, age 29; and
*Lemar Williams, a/k/a Mar; Tutta, age 25.

Eleven defendants (denoted by *) also face enhanced sentences for murder.  The indictment specifically alleges that: Burrell was involved in the murder of three persons; Floyd was involved in the murder of three persons; Williams was involved in the murder of three persons, Dukes, Horsey, Cherry, and Keenan Lawson were each involved in the murder of two persons; and Chase, Luster, Rice and Alewine were each involved in a single murder. Incidents of attempted murders and aggravated assaults are also alleged against these defendants and others named in the indictment.  Rodgers, Seawell, Stevie Lawson, and Lynn are alleged to have been involved in drug distribution but face no allegations of violent activities.

All 21 defendants face a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The defendants arrested today are expected to have initial appearances in U.S. District Court in Baltimore. The defendants already in custody will be scheduled for an initial appearance at a later date.

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. 

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 Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – Jose Rodriguez-Nunez, a/k/a “Killer,” age 27, of Hyattsville, Maryland, pleaded guilty late on September 7, 2016, to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder.                  

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell 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 Hank Stawinski of the Prince George’s County Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

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

According to his plea agreement and court documents, beginning in 2010, Rodriguez-Nunez conspired with members and associates of MS-13 to engage in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation. Rodriguez-Nunez was a member of MS-13 and an associate of the Weedons Clique of MS-13.

Specifically, Rodriguez-Nunez admitted that on December 5, 2012, he was the driver in a drive-by shooting in which another MS-13 member shot at three individuals believed to be rival gang members, killing one and wounding another.  Rodriguez-Nunez admitted that after the shooting he fled the scene to avoid being identified.

Rodriguez-Nunez and the government have agreed that if the Court accepts the plea agreement, Rodriguez-Nunez will be sentenced to between 216 and 240 months in prison.  U.S. District Judge Roger W. Titus has scheduled sentencing for January 9, 2017, at 10:00 a.m.  Rodriguez-Nunez remains detained pending sentencing.

In addition to Rodriguez-Nunez, eight other defendants have pleaded guilty and three have been convicted at trial for their roles in the racketeering conspiracy.

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department; and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, 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 William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Catherine Dick with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.

A Hyattsville, Maryland, man pleaded guilty to charges related to his participation in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder.

Assistant Attorney General Leslie R. Caldwell 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 Hank Stawinski of the Prince George’s County, Maryland, Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.

Jose Rodriguez-Nunez, aka Killer, 27, pleaded yesterday before Senior U.S. District Judge Roger W. Titus of the District of Maryland to conspiracy to participate in a racketeering enterprise.

MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Prince George’s County, Montgomery County and Frederick County, Maryland.  In pleading guilty, Rodriguez-Nunez admitted that he was a member of MS-13 and an associate of the MS-13 Weedons Clique.

According to his plea agreement, beginning in 2010, Rodriguez-Nunez conspired with members and associates of MS-13 to engage in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation.  Specifically, Rodriguez-Nunez admitted to his role as the driver in a drive-by shooting on Dec. 5, 2012, in which another MS-13 member shot at three individuals believed to be gang rivals, killing one and wounding another.  After the shooting, Rodriguez-Nunez fled the scene to avoid being identified, he admitted.

In addition to Rodriguez-Nunez, eight other defendants have pleaded guilty and three have been convicted at trial for their roles in the racketeering conspiracy.

HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department and the Prince George’s County State’s Attorney’s Office investigated the case.  The Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit provided assistance in the investigation. Trial Attorney Catherine Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau, Lindsay Eyler Kaplan are prosecuting this case.

Baltimore, Maryland – Taft Redd, age 45, of Baltimore, Maryland, pleaded guilty today to six commercial robberies committed between July 22 and August 18, 2015.    

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.

According to his plea agreement, in each robbery Redd entered the store, approached the register, displayed what appeared to be a black handgun, and demanded money.  Redd stole cash from each store and occasionally took merchandise as well. Specifically, on July 22 and August 18, 2015 Redd robbed the same convenience store located in the 5200 block of Harford Road in Baltimore; on July 22 Redd robbed a shoe store located in the 3200 block of Greenmount Avenue in Baltimore; July 29 and August 12, 2015 Redd robbed the same shoe store located in the 3900 block of Erdman Avenue in Baltimore; and on August 16, 2015 Redd robbed a fast food restaurant in the 2000 block of N. Broadway in Baltimore.

When Redd was arrested on August 19, 2015, he was in possession of a black BB gun that was the same weapon seen by witnesses in the six robberies. 

Redd and the government have agreed that if the Court accepts the plea agreement Redd will be sentenced to 10 years in prison.  U.S. District Judge Marvin J. Garbis has scheduled sentencing for November 9, 2016 at 11:00 a.m.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Matthew C. Sullivan, who is prosecuting the case.

Baltimore, Maryland – A federal grand jury has indicted Brian Keith Wallen, age 52, of Lutherville, Maryland, and Andrew Stafford, age 56, of Bel Air, Maryland with conspiracy to commit mail fraud and mail fraud arising from a nationwide fraudulent telemarketing scheme designed to ship unwanted and vastly over-priced light bulbs and cleaning supplies to thousands of businesses and non-profit organizations.  The indictment was filed on June 30, 2016 and unsealed today upon the arrest of Andrew Stafford.  Brian Keith Wallen was reported missing on April 28, 2016, and is still being sought by law enforcement.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division.

“Based in Maryland, the defendants allegedly cheated thousands of American businesses out of more than $50 million through a sophisticated scheme that involved sham sales of light bulbs and cleaning supplies,” said U.S. Attorney Rod J. Rosenstein. “According to the allegations, company employees followed a script that included sending unsolicited supplies, lying to victims, and repeatedly submitting fraudulent bills.”

According to the indictment, on March 24, 2003, Midway Industries, LLC and Johnson Distributing, LLC were incorporated in Maryland, each with the stated purpose to engage in the retail sale of light bulbs and cleaning supplies, among other activities.  Between July 22, 2008 and April 18, 2014, Wallen and another individual incorporated additional shell entities, in Maryland and Florida.  Midway, Johnson Distributing and the shell entities will be collectively referred to here as “Midway.”

According to the indictment, at different times the Midway companies were owned, in whole or in part by Wallen, who held the title of CEO.  Andrew Stafford held the title of President.  According to the indictment, Wallen and Stafford exercised supervision over the practices at Midway. 

The seven count indictment alleges that from 2007 through 2014, Wallen, Stafford, and the Midway co-conspirators fraudulently obtained millions of dollars from thousands of victim businesses by deceiving the businesses’ into paying exorbitant prices for light bulbs and cleaning supplies, as well as paying for products that the businesses never ordered.

Specifically, the indictment alleges that from about 2007 to 2014, Wallen, Stafford and other conspirators telephoned authorized representatives of businesses, who were often maintenance employees, on behalf of Midway companies. During these phone calls, the conspirators sought to conceal Midway’s true locations in Reisterstown, Maryland and in Florida.  According to the indictment, during the initial calls, Wallen, Stafford, and the conspirators promised national store gift cards to the authorized representatives to induce them to place initial orders, or to provide Midway with additional company information or personal information, like the authorized representatives’ home address and personal phone number.  The conspirators used the cell phone numbers and/or birthdays of the authorized representatives as “purchase order” numbers in order to lend legitimacy to later collections efforts. 

In addition, during the calls the conspirators allegedly made false statements, including: that the victim businesses had an existing business relationship with Midway; and that Midway would send a “half box” of light bulbs.  In fact, the “half box” was a deceptive technique used to understate the volume and price of shipments, and disguise unwanted future shipments.  Wallen, Stafford, and the conspirators allegedly did not divulge the price of any products, engaging in a practice called the “price blow-off,” falsely telling the victim business that they did not have the price in front of them, but that it would be at the corporate discount.  In fact, Midway did not offer a corporate discount.

As long as the victims continued paying the Midway invoices, in subsequent calls Wallen, Stafford, and the conspirators allegedly misrepresented that the balance of the victim’s order, or their “regular seasonal order” had recently been shipped, despite no order having been made by the victim business, and no actual shipment having yet been sent. The conspirators called authorized representatives under the guise of different Midway companies in order to repeat the process using a product other than light bulbs, often cleaning supplies.

The indictment further alleges that when the authorized representative could not be reached, Wallen, Stafford, and the conspirators would simply send the product and an inflated invoice to the victim, without the victim placing an order.  The conspirators referred to this practice as “just ship.” If the authorized representative had quit, been fired, or even passed away, the conspirators sent a product and inflated invoice to the victim business knowing that the victim would be unable to dispute the validity of the order. This practice was referred to by the Midway conspirators as a “down the road.”  The Midway conspirators regularly sought the approval of Wallen and Stafford, as their supervisors, to engage in the practices of “just ship,” or “down the road.”

According to the indictment, Wallen, Stafford, and the co-conspirators ordered the light bulbs and cleaning supplies from a company located in New Jersey (supplier).  They instructed the supplier to ship the products to the victim without an invoice, and to send the invoices directly to Midway.  Wallen, Stafford, and the conspirators then sent inflated invoices to the billing departments of the victims. The indictment alleges that the invoices sent to the victim businesses were regularly 900% above the prices Midway paid the supplier. After a victim had paid one invoice, Wallen, Stafford, and the conspirators sent invoices to the victim that were sometimes greater than 8,000% above the supplier’s prices. 

When victims did not remit payment, the indictment alleges that the collections department at Midway repeatedly called the victims in order to force them to pay the inflated invoices.  If the victim company continued to protest, the Midway collections department made false representations, including that an order had actually been placed with Midway, using as proof that the authorized representative had received a gift card, or provided his home address. 

If the victim threatened to contact law enforcement or the Better Business Bureau, Wallen, Stafford and the conspirators allegedly offered to revise the invoice to a discounted rate, or take back a product for either a “re-stocking fee” or “at cost,” which was still substantially greater than the cost of the products purchased from the supplier.

The indictment alleges that as a result of the fraud scheme, Midway sent fraudulent invoices to victim companies for more than $100 million and received more than $50 million in payments on those invoices.

Wallen and Stafford each face a maximum penalty of 20 years in prison for the mail fraud conspiracy and for each count of mail fraud. 

The guilty pleas of co-conspirators Robert Chesser, age 46, of Dundalk, Maryland; Brandon Johnston, age 38, of Catonsville, Maryland; Alan Landsman, age 36, of York, Pennsylvania; Steven Phillips, age 64, of Pikesville, Maryland; Brandon Riggs, age 34, of Baltimore; and Thomas Wishon, age 54, of Cockeysville, Maryland, were also unsealed today.  All six have all pleaded guilty to conspiracy to commit mail fraud in connection with their roles in the scheme, and are awaiting sentencing.

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

The FBI is offering a reward of up to $5,000 for information leading to the location and arrest of Brian Keith Wallen.  Anyone with information concerning Wallen's whereabouts is urged to call the Baltimore office of the FBI at 410-265-8080.

Anyone who believes they may have been a victim of this fraud scheme is asked to complete and submit this form Midway Victims Form to the email or mailing address on the form.  Additional information can be found at the U.S. Attorney's Office website.

United States Attorney Rod J. Rosenstein commended the FBI and U.S. Postal Inspection Service for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Sean R. Delaney and Harry M. Gruber, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Charles Dennis Bolden, Sr., age 69, of Baltimore, a former employee at the Quarantine Road Landfill (Landfill), today to 15 months in federal prison, followed by three years of supervised release for conspiring to commit two separate criminal schemes: one in which Department of Public Works (DPW) employees sought and accepted cash payments from commercial haulers in return for allowing the haulers to deposit trash at the Landfill without paying the required disposal fees (extortion scheme); and a second scheme in which DPW employees stole scrap metal from the Landfill for personal gain (the junking scheme).  

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

Extortion Scheme     

Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters at the Convenience Center located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with Baltimore City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located within the Landfill.  Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill. DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system.  The scale house operators reweigh each truck as it leaves the Landfill.  The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.

According to the statement of facts presented by the government to the court, Bolden, who was employed by DPW as a laborer at the Landfill, and other DPW employees sought and accepted cash payments from commercial haulers in return for allowing the commercial haulers to deposit trash at the Landfill without paying the required disposal fees.

On August 28, 2013, an FBI confidential source (CS) went to the Convenience Center and spoke with Bolden about the cost of dumping a truckload of trash at the Landfill.  Bolden told the CS that he and his “girls” at the scale house would have to be paid a “fair” amount of money in order for the CS to avoid paying the required disposal fee assessed at the scale house.  When the CS agreed to make the payment, Bolden said that the scale house “girl gonna wave you thru.”

The next day, Latonya Drinkard, a scale house operator, waved the CS past the scale house and allowed him to dump his truckload of trash without paying the required fee.  Afterwards, the CS paid Bolden $70 in cash, which Bolden explained was a lot less than what he and the scale house “girls” have charged others.  On September 12, 2013 and October 9, 2013, Drinkard allowed the CS to dump two more truckloads of trash without paying the required disposal fee. Bolden charged the CS $200 for each truckload. 

During a recorded conversation on October 17, 2013, Drinkard asked the CS how much Bolden was charging the CS.  Upon learning that it was $200 per trip, the scale house operator agreed to waive the disposal fee for less money without Bolden’s involvement and stated, “Just call and let me know whenever you want to come in and I got you.”         

Illegal Junking Scheme

In addition to the revenue generated by the collection of disposal fees, Baltimore City’s waste management system generates revenue by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities, including household appliances, steel cables, copper wires, car parts, computer parts, door and window frames. The City awards contracts to private salvage companies to purchase and remove such scrap metal from its trash collection facilities.    

DPW employees at the Landfill and other trash collection sites are required to segregate the recyclable scrap metal from general refuse and place it in separate bins provided by the salvage companies.  The companies regularly pick up the scrap metal, weigh it and send a tonnage report to the City.  Based on predetermined prices per ton, the City sends an invoice to the companies requesting payment for the value of the scrap metal the companies removed during a given period of time. Salvaging by employees, also referred to as “junking,” was strictly prohibited and employees were put on notice that any salvaging of metal constituted theft of City property. 

According to the statement of facts presented by the government to the court, from 2005 to May 2015, Bolden and other Landfill employees falsely represented to the DPW that they were performing the jobs for which they were hired when, in fact, they used their paid positions during work hours to unlawfully collect, remove and sell scrap metal for personal gain.   

For most of the period, Bolden oversaw operations at the Convenience Center where residential trash was dumped.  Video recordings documented Bolden’s use of a front-end loader to separate salvageable metal from the general trash bins.  After setting aside a sufficient amount of such metal, Bolden would use his cell phone to contact other laborers, including Jarrod Hazelton and Michael Bennett, to pick up what he had collected.  Video footage showed Bolden helping to load the salvageable metals onto other employees’ pick-up trucks as well as his own.  Those employees, in turn, would sell the metal to salvage companies and share the proceeds of the sales with Bolden.  Sometimes the other laborers would meet with Bolden after hours to pick up his stolen metal and pay him.

The scrap metal that Bolden, Hazelton, Bennett and others stole and sold to private salvage companies resulted in a loss of revenue to the City totaling hundreds of thousands of dollars. 

In addition, video footage established that Bolden and other employees spent a significant part of almost every workday coordinating the search and collection of salvageable metals to steal.  Nonetheless, Bolden and other employees regularly signed and submitted daily time and attendance sheets falsely reflecting that they had fulfilled the hourly requirements of their respective paid positions when, in fact, they were routinely engaged in unauthorized “junking.”  As a result, Bolden received hourly wages every pay period for work he did not perform on behalf of the City.  More specifically, for calendar years 2013 and 2014, Bolden stole and conspired to steal salvageable metals and unearned wages from Baltimore City totaling more than $5,000 per year.

Former DPW employees William Charles Nemec, Sr., age 56; Tamara Oliver Washington age 56; and Michael Theodore Bennett, age 47, all of Baltimore, pleaded guilty to their roles in the scheme and were sentenced to 78 months, 18 months, and 46 months in prison, respectively. Judge Garbis also entered orders requiring Nemec and Washington to pay restitution of $6 million.  Jarrod Terrell Hazelton, age 33, of Parkville, Maryland, also pleaded guilty and was sentenced to two years in prison.  Judge Garbis ordered Bennett and Hazelton each to pay restitution of $400,000.  Latonya Drinkard, age 39, of Baltimore, also pleaded guilty and is scheduled to be sentenced on October 13, 2016.

Commercial trash hauler, John Howard Brady, age 74, was convicted by a federal jury in the bribery scheme, and sentenced to three years in prison.  The five remaining commercial trash haulers pleaded guilty to their participation in the bribery scheme. Quentin Turgot Glenn, age 50, of Hanover, Maryland, who owned and operated Glenn Services, LLC, a trash hauling business, was sentenced to three years in prison. Jessie Lee Wilson, Jr., age 41, of Baltimore, who was employed by Glenn Services as a truck driver, was sentenced to three years of probation, with the first year to be spent in community confinement. Adam Williams, Jr., age 53, of Randallstown, was sentenced to one year in prison; and Larry Lowry, age 61, of Orchard Beach, Maryland, to 30 months in prison.  Judge Garbis also ordered that Glenn pay restitution of $306,000; Williams pay restitution of $900,000; and Lowry pay restitution of $180,000. Mustafa Sharif, age 64, of Baltimore, awaits sentencing.

United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the cases.

Greenbelt, Maryland – A federal grand jury charged Richard Butler III, age 34, of Hyattsville, Maryland, with being a felon in possession of an explosive, transportation of explosive materials with intent to injure, and use of a destructive device during a crime of violence, in connection with a firebombing on March 4, 2016.  The indictment was returned on August 31, 2016.

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 Prince George’s County Fire/EMS Chief Marc S. Bashoor.

According to the three count indictment, on March 4, 2016, Butler manufactured one or more improvised incendiary bombs at a gas station on Landover Road in Hyattsville, then used those bombs to set fire to a victim’s apartment in Hyattsville.  The indictment alleges that Butler used the improvised incendiary bombs with the intent to kill or injure the victim and to destroy the building and property of the victim. Butler had previously been convicted of a felony and was therefore prohibited from possessing explosives.

Butler faces a maximum sentence of 10 years in prison for being a felon in possession of an explosive; 10 years in prison for transportation of explosive materials with intent to injure; and a mandatory minimum sentence of 30 years and up to life in prison for using an explosive device during a crime of violence.  An initial appearance has not yet been scheduled for Butler in U.S. District Court in Greenbelt.  Butler is currently detained on unrelated state charges in the District of Columbia.

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 Prince George’s County Fire/EMS for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Jennifer R. Sykes, who is prosecuting the case.

Greenbelt, Maryland – A federal grand jury has charged John S. Mattingly, age 70, of Charlotte Hall, Maryland, today for bank fraud in connection with a scheme to steal funds from St. Francis Xavier Catholic Church, while he was the pastor.  The indictment was returned on August 29, 2016, and unsealed today after Mattingly’s arrest.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, St. Mary’s County Sheriff Tim Cameron, and St. Mary’s County State’s Attorney Richard Fritz.

According to the 20-count indictment, Mattingly was ordained as a Roman Catholic priest in 1972 and was the pastor of St. Francis Xavier Catholic Church (St. Francis), in Leonardtown, Maryland, from 1994 until September 1, 2010, when he resigned.  While serving as a parish priest, Mattingly was paid a salary and stipend by St. Francis.

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

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

Mattingly faces a maximum sentence of 30 years in prison for each of the 20 counts of bank fraud.  An initial appearance was held today in U.S. District Court in Greenbelt.  Mattingly is released under the supervision of U.S. Pretrial Services

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, St. Mary’s County Sheriff’s Office, and St. Mary’s County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.

Greenbelt, Maryland –Francisco Zamora-Flores, age 25, of Silver Spring, Maryland, pleaded guilty today to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, attempted murder in aid of racketeering, and using, carrying, and discharging a firearm during a crime of violence.

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 Hank Stawinski of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Chief Douglas Holland of the Hyattsville Police Department.

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

According to his plea agreement and court documents, from about 2014, Zamora-Flores was a member of the Normandie Clique of MS-13.  MS-13 members committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation.

Zamora-Flores admitted that on July 30, 2014, he and four other members of MS-13 and the Normandie Clique were advised that three rival gang members had harassed and tried to steal the bike of a person who was a friend of MS-13. One of the co-conspirators drove Zamora-Flores and the other MS-13 members to the area of 30th Avenue in Hyattsville, where they saw three individuals walking north on the street.  Zamora-Flores admitted that he and another MS-13 member shot two of the individuals.  One victim was shot seven times, with wounds to his upper torso, right arm, and face.  The other victim had a gunshot wound to his right side.

Eleven .380 caliber shell casings fired from two different handguns were collected at the scene of the shooting. A firearms examiner determined that five of the shell casings were fired from the same gun used at other crime scenes including: murders that occurred on November 11, 2012 and February 28, 2013, in the Hyattsville area; an attempted murder that occurred on that on March 28, 2014, in Laurel, Maryland; and a murder that occurred on November 30, 2013 in Frederick, Maryland.  The other six shell casings were fired from another .380 caliber firearm that was recovered in Montgomery County, Maryland, on October 5, 2014.

Zamora-Flores faces a maximum sentence of life in prison for the racketeering conspiracy; a maximum of 10 years in prison for attempted murder in aid of racketeering; and a mandatory minimum of 10 years in prison, consecutive to any other sentence imposed, and up to life in prison for discharging a firearm during a crime of violence.  U.S. District Judge Peter J. Messitte has scheduled sentencing for December 9, 2016, at 9:30 a.m.

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County Police Department, Hyattsville Police Department, and Prince George’s County State’s Attorney’s Office and its Strategic Investigations Unit, for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, Prince George’s County Department of Corrections, and HSI Baltimore’s Operation Community Shield Task Force for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan, who are prosecuting this case.

Baltimore, Maryland – Ruben Uy Lim, age 53, of Parkville, Maryland, pleaded guilty today to receipt of child pornography.  Lim also admitted taking hundreds of videos of underage girls at swim meets, using a filter that allowed the camera to see through certain fabrics, including bathing suits.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, on November 17, 2015, Baltimore County Police detectives executed a search warrant at Lim’s residence and recovered electronic devices, including a hard drive.  A subsequent forensic examination of the hard drive revealed images and video files depicting prepubescent girls engaged in sexual acts, which had been received over the internet.

In addition, law enforcement recovered six video cameras and computer discs which contained hundreds of homemade videos dating back to 2004, which were taken at swim meets, on beaches and at water parks.  Lim took the videos using a filter that attached to the camera’s lens and allowed the camera to see through certain fabrics, including bathing suits.  Lim filmed middle and high school aged girls in such a way that their breasts and vaginal areas were visible in the recordings.  In the majority of the videos, Lim focused on the pubic area of the female swimmers.  Lim admitted that he traveled to swim meets around the country for the sole purpose of recording children using the special camera lens, which Lim referred to as the “X-Ray lens.”

As part of his plea agreement, Lim 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).

Lim and the government have agreed that if the Court accepts the plea agreement Lim will be sentenced to at least 10 years in prison, followed by 20 years of supervised release. U.S. District Judge George L. Russell III has scheduled sentencing for December 9, 2016 at 9:30 a.m. 

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the FBI, Baltimore County Policed Department and the Baltimore County State’s Attorney for their work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney Lauren E. Perry, who is prosecuting the federal case.

Baltimore, Maryland - A federal grand jury has returned nine separate indictments charging a total of 14 retail store operators for committing food stamp fraud and wire fraud in connection with schemes to illegally redeem food stamp benefits in exchange for cash.  The indictments allege the retailers received over $16 million in federal payments for transactions in which they did not provide any food, a fraud scheme commonly known as “food stamp trafficking.”  Stores allegedly split the proceeds with food stamp recipients. The indictments were unsealed today upon the arrests of the defendants. 

Over 300 members of law enforcement participated in the arrests and execution of a total of 26 search warrants at the stores and related locations this morning.  In addition, 46 bank accounts were seized.

The indictments were 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 Kevin Perkins of the Federal Bureau of Investigation. 

“The food stamp program is intended to put food on the tables of needy recipients, not to put money in the pockets of greedy criminals,” said U.S. Attorney Rod J. Rosenstein.  “Honest storeowners work hard to earn a profit by actually selling food, and food producers and distributors also benefit. People who play by the rules deserve to know that criminals who defraud them will be held accountable.”

“Far from being a victimless crime, the offenders in this investigation defrauded a combined amount of approximately $16 million from taxpayer funded programs,” stated Kevin Perkins, Special Agent in Charge of the FBI Baltimore Office. “These programs are intended to provide assistance for those in need—not a means of abuse or selfish enrichment. The FBI Baltimore Division, along with our federal, state and local partners, remain steadfast in our commitment to root out those who steal from taxpayers and defraud our government programs.”

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. 

The indictments allege that the defendants exchanged EBT benefits for cash, in violation of the food stamp program rules. The indictments allege that the defendants typically paid half the value of the EBT benefits in cash. To avoid detection, the defendants 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. As a result of unlawful cash transactions, the defendants obtained more than $16,482,270 in EBT deposits for transactions in which food sales never occurred or were substantially inflated. 

According to the indictments, the defendants listed below owned and/or operated stores in the Baltimore area that were authorized to accept SNAP.  The defendants received instruction regarding the requirements and regulations of the food stamp program, 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.

Walayat Khan, age 36, of Reisterstown, Maryland; and
Barbara Ann Duke, age 50, of Owings Mills, Maryland; Maria’s Market Place, 307 S. Broadway in Baltimore; and Royals Food Market, 921 E. Patapsco Avenue in Brooklyn, Maryland.  From October 2013 to June 2016, Khan and Duke allegedly obtained more than $1,486,118 in payments for food sales that never occurred.

Shaheen Tasewar Hussain, age 60, of Ellicott City, Maryland; Shop & Save, 301 Crain Highway South, Suite D, Glen Burnie, Maryland. From July 2014 through October 2015, Hussain allegedly obtained more than $778,183 in payments for food sales that never occurred.

Kelym Novas Perez, age 34, of Baltimore; and
Jose Remedio Gonzalez Reyes, age 50, of Baltimore; Kelym Grocery, 2734 Pennsylvania Avenue in Baltimore.  From August 2013 through March 2016, Perez and her husband, Gonzalez Reyes, allegedly obtained more than $879,500 in payments for food sales that never occurred.

Mulazam Hussain, age 54, of Windsor Mill, Maryland; Monroe Food Mart and Y&J Grocery in Baltimore. From March 2013 through July 2016 Hussain allegedly obtained more than $1,242,745 in payments for food sales that never occurred.

Mohammad Shafiq, age 50, of Gwynn Oak, Maryland; and his daughter, Alia Shaheen, age 24, of Baltimore; Quick Stop Convenience Store, 237 N. Patterson Park Avenue; New York Food Mart, 1201 N. Patterson Park Avenue; and Barclay Food Mart, 2454 Barclay Street, all in Baltimore; and Shafiq Corporation, 6929 Holabird Avenue, in Dundalk, Maryland.  From about October 2010 through July 2016, Mohammad Shafiq and his daughter, Alia Shaheen, allegedly obtained more than $3,712,353 in payments for food sales that never occurred or were substantially inflated.

Mohammad Irfan, age 59; and
Muhammad Sarmad, age 40, both of Nottingham, Maryland; New Sherwood Market, 6324 Sherwood Road in Northwood, Maryland; Martin Mart, 1504 Martin Boulevard in Middle River, Maryland; Rosedale Mart, 6326 Kenwood Avenue in Rosedale, Maryland; and M&A Mart 7400-A Belair Road in Baltimore.  From October 2010 through August 2016, Irfan and Sarmad allegedly obtained more than $3,550,662 in payments for food sales that never occurred. 

Mahmood Hussain Shah, age 57, of Catonsville, Maryland; and
Muhammad Rafiq, age 58, of Reisterstown; Corner Groceries, 1242 Darley Avenue in Baltimore. From October 2010 through August 2016, Shah and Rafiq allegedly obtained more than $1,610,556 in payments for food sales that never occurred.

Rizwan Pervez, age 38, of Essex, Maryland; M&N Mini Mart, 1846 W. North Avenue; and Mega Mart1, 1522 Ellamont Street, both in Baltimore. From April 2014 through July 2016, Pervez, allegedly obtained more than $1,689,511 in payments for food sales that never occurred.

Kassem Mohammad Hafeed, a/k/a Kassam Mohammad Hafeed, age 51, Baltimore; C&C Market, 4752 Park Heights Avenue in Baltimore.  From November 2010 through April 2013, Hafeed allegedly obtained more than $1,532,642 in payments for food sales that never occurred.

The defendants face a maximum sentence of 20 years in prison for each count of wire fraud; a maximum of five years in prison for conspiracy to commit food stamp fraud and wire fraud; and a maximum of five years in prison for food stamp fraud.  The defendants are expected to have initial appearances 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 praised the USDA Office of Inspector General and FBI for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Matthew C. Sullivan; Jason D. Medinger; Peter J. Martinez, Rachel M. Yasser, Kathleen O. Gavin, Aaron S.J. Zelinsky; Patricia C. McLane, and Sean R. Delaney, who are prosecuting these cases.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Diameter Akala, age 43, of Silver Spring, Maryland, Washington, D.C. and New York, today, to 90 months in federal prison, followed by three years of supervised release, for fraudulently obtaining over $1.4 million in unemployment benefits.  Judge Hollander also ordered that Akala pay $1,468,463.80 in restitution, approximately the amount obtained in unemployment benefits.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robin Blake, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division.

“Today's sentencing sends a clear message that there are serious consequences for those who conspire to defraud the U.S. Department of Labor's Unemployment Insurance program.  The Office of Inspector General remains committed to working with our law enforcement and state workforce agency partners to aggressively pursue those who exploit the Unemployment Insurance program by fraudulently obtaining funds intended for vulnerable American workers truly in need of unemployment benefits,” stated Robin Blake, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General.

“Government agencies and millions of Americans depend on the security and reliability of the US Postal Service for the processing and distribution of their government benefits.  When criminals misuse the US Mail to steal those benefits, Postal Inspectors are there to protect the mail, the programs, and the public from this type of fraud,” stated Terrence P. McKeown, Postal Inspector in Charge of the U.S. Postal Inspection Service - Washington Division.

According to his plea agreement, from 2012 to 2015, Akala and his co-conspirators caused the Maryland Department of Labor, Licensing and Regulation (DLLR) and the Pennsylvania Department of Labor and Industry (DLI), which administered the unemployment insurance benefit programs in their respective states, to issue fraudulent unemployment benefits in the names of individuals by submitting false applications for monetary benefits. Akala enlisted his friends and family members to join him in the scheme.

Members of the conspiracy obtained the personally identifying information (PII) of individuals, including Maryland residents.  Akala filed false documentation with DLLR and DLI in the names of fictitious companies, falsely stating that the fictitious companies employed and paid wages to actual individuals. In fact, no unemployment insurance taxes were ever paid to DLLR or DLI in the names of the fictitious companies.  Akala, electronically and by phone, filed claims in Maryland and Pennsylvania for unemployment benefits in his own name and the names of other individuals, falsely claiming that they previously worked for those fictitious companies. Akala used the PII of individuals who had given permission to have their information used, as well as many who did not.  Akala offered money to co-conspirators in exchange for PII.

Akala and other members of the conspiracy used residential mailing addresses of co-conspirators in Maryland, New York, the District of Columbia, Pennsylvania and Virginia to register and receive correspondence for the fictitious companies, and apply for and receive unemployment benefits in the form of prepaid debit cards.  In exchange for the use of their addresses, the co-conspirators received funds obtained through the fraud, typically a fraudulently obtained prepaid debit card. 

Co-conspirators Wilfred Mendez, Ferny Alexander Moreno Puente, Wilfredo Torres, his half-brother, Eric Gonzalez, co-conspirators Tawana McClain, Yaw Bempa-Boateng, and Carmen Benitez agreed to have Akala file fraudulent unemployment claims in their names.  Mendez, his mother Dulce Oleo, Moreno Puente and Torres also provided the personal identification information and/or addresses of other individuals to file additional false claims in the names of those individuals, and others. The co-conspirators used the fraudulently obtained unemployment benefits prepaid debit cards that were mailed directly to them or provided to them by Akala, at ATMs or stores in order to withdraw and use the funds.  Some of the cards were in their names, but some of the cards were in the names of other individuals. Generally, the conspirators kept a portion of the fraudulently obtained funds for themselves and provided the remainder to Akala.  The members of the conspiracy regularly contacted DLLR and DLI, falsely representing themselves either to be a representative of one of the fictitious companies or an individual entitled to unemployment benefits.  Akala moved between states to retrieve correspondence addressed to fictitious companies and individuals, including prepaid debit cards issued by DLLR and DLI.

Judge Hollander previously sentenced co-conspirators: Wilfred Mendez, age 21, of Bronx, New York; Ferny Alexander Moreno Puente, age 26, of Gaithersburg, Maryland; Yaw Bempa-Boateng, age 35, of Silver Spring, Maryland; Wilfredo Torres, age 36, of Alexandria, Virginia; Carmen Benitez, age 29, of Scranton, Pennsylvania; Dulce Oleo, age 39, of the Bronx, New York; Tawana McClain, age 51, of Washington, D.C.; and Eric Gonzalez, age 34, of Alexandria, Virginia, to between 33 months and a year and a day in prison.

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 Department of Labor – OIG and U.S. Postal Inspection Service for their work in the investigation, and praised the Maryland Department of Labor, Licensing and Regulation and the Pennsylvania Department of Labor and Industry for their assistance in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Sean R. Delaney, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Kimberly McIntosh, age 47, of Baltimore today to two years in federal prison, followed by three years of supervised release, for possession with intent to distribute heroin.

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; U.S. Marshal Johnny Hughes; and Chief William Henry of U.S. Probation.  

On August 23, 2011, McIntosh pleaded guilty to participating in the affairs of a racketeering enterprise, specifically the Black Guerilla Family (BGF). As part of her plea, McIntosh admitted that one of the purposes of BGF was to support incarcerated members of the gang, either through smuggling contraband, or providing monetary support. She was sentenced to five years in prison, followed by three years of supervised release.  On February 12, 2014, McIntosh was released from prison and began her term of supervised release.

According to her plea agreement, in June 2015, the Bureau of Prisons (BOP) Investigative Unit contacted McIntosh’s probation officer to report that she had sent over $4,000 to 36 different inmates, including several of the co-defendants from her BGF case.  The continued contact with felons was a violation of the conditions of her supervised release and a warrant was issued for her arrest.  Based on the information provided by BOP, law enforcement believed McIntosh was still involved in BGF and obtained a search warrant for her residence.  On October 20, 2015, McIntosh was arrested as she left her residence and the search warrant was executed. Law enforcement recovered three bags containing a hard brown substance, later determined to be 11 grams of heroin, approximately 70 gelatin capsules of heroin packaged for street level sale, cutting agents and other drug paraphernalia, from McIntosh’s bedroom.  In addition, law enforcement recovered hundreds of letters, photographs and correspondence between McIntosh and inmates at state and federal correctional facilities that were written or received by McIntosh during her period of supervised release.

United States Attorney Rod J. Rosenstein praised the DEA,U.S. Marshal Service and U.S. Probation for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney James T. Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael Toliver, age 40, of Baltimore, today to 15 years in federal prison, followed by three years of supervised release for a series of armed robberies.  Judge Hollander also entered an order requiring Toliver to pay restitution totaling $13,577.17.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department; and Chief Gary Gardner of the Howard County Police Department.

According to his plea agreement and court documents, from May 17 to June 4, 2014, Toliver and others robbed commercial businesses located in Baltimore, Baltimore County and Howard County at gunpoint. In several of the robberies co-defendant Marcus Gray stood at the door and acted as the lookout, while Toliver pointed a gun at employees and demanded money.  Toliver admitted to robbing the following stores in Maryland:

Exxon gas station, Forest Rd., Columbia, on May 17; Burger King, Rolling Mills Road, Dundalk, on May 17; Bob Evans, Wholesale Club Dr., Nottingham, on May 19; Safeway Food Stores, Harford Rd., Baltimore, on May 23; Dunkin Donuts, Reisterstown Rd., Baltimore on May 23; Sprint, Baltimore National Pike, Baltimore, on May 24; Royal Farms, Pulaski Highway, Baltimore, on May 31; BP gas station, Park Heights Ave., Baltimore, on May 31; Royal Farms, Southwick Dr., Baltimore, on May 31; and
Royal Farms, Edmondson Ave., Baltimore, on June 4.

During the Dunkin Donuts robbery on May 23, 2014, Toliver struck the manager in the head with a handgun, causing injury.  During the Sprint store and BP gas station robberies, Toliver fired his gun into the floor or ceiling, when the managers of each store did not open the store’s safe.

Law enforcement reviewed video recordings of the robberies and identified Toliver as one of the robbers.  On June 4, 2014, law enforcement arrested Toliver and executed a search warrant on his car.  They seized a handgun and ammunition, along with a BB gun, a SWAT vest and gloves. Gray was arrested the following day.  Law enforcement executed additional search warrants and seized from Toliver’s residence another handgun, ammunition, $3,780 in coins or cash, and clothing worn by Toliver during several robberies.  Subsequent investigation revealed that the gun seized from Toliver’s vehicle was the gun fired during the BP Gas station robbery.

Marcus Gray, age 42, of Baltimore, previously pleaded guilty to his participation in several of the robberies and awaits sentencing.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department, Howard County Police Department and Baltimore County, City and Howard County State’s Attorney=s Offices for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.

Greenbelt, Maryland – A federal grand jury charged Roy David Evans, Jr., age 31, of Essex, Maryland, for sexual exploitation of a minor to produce child pornography, coercion and enticement of a minor to engage in sexually explicit conduct; and for receipt and possession of child pornography.  The indictment was returned on August 22, 2016, and unsealed on August 24, 2016.

Evans had an initial appearance in U.S. District Court in Greenbelt on August 23, 2016, and was ordered to be detained following a detention hearing on August 24, 2016.

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 Chief J. Thomas Manger of the Montgomery County Police Department.

According to the six count indictment, and information presented at today’s detention hearing, Evans posted advertisements on Craigslist for young girls to contact him via email or via Kik, a messaging application where users can text, livecam, and send digital images and videos to one another.  Evans’ Kik username was “roddanger86.”  The indictment alleges that Evans enticed and coerced a minor victim to engage in sexually explicit conduct in order to produce images of that conduct.  Further, the indictment alleges that Evans then received videos of the victim engaged in sexually explicitly conduct via the internet.

Evans’ alleged victims ranged from ages 14 years old to 16 years old.  According to evidence presented in court, multiple victims, at the request of Evans and sometimes on their own, sent videos and images of sexually explicit conduct to Evans via Kik.  Evans also allegedly offered to pay cash to the victims in exchange for sexual activities.  At least one victim, a 14-year-old female, engaged in sexual intercourse and other sexual activities with Evans on at least three occasions. 

Based on their investigation, law enforcement believes there may be additional victims.  Anyone with information is asked to call HSI's tip line at 866-DHS-2ICE (1-866-347-2423), which is staffed around the clock by investigators.

Evans faces a mandatory minimum of 15 years and a maximum of 30 years in prison for production of child pornography; a mandatory minimum of 10 years and a maximum of life in prison for coercion and enticement of a minor; a mandatory minimum of five years and a maximum of 20 years in prison for receipt of child pornography; and a maximum of 10 years in prison for possession of child pornography.  For each count, Evans faces up to lifetime supervised release following his imprisonment.

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 Baltimore, and the Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kelly O'Connell Hayes, who is prosecuting the federal case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced James Cicala, age 55, of Columbia, Maryland today to seven years in prison, followed by 15 years of supervised release, for interstate travel with intent to engage in a sexual act with a minor. Judge Hollander also ordered that upon his release from prison Cicala 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 Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Worcester County Sheriff Reggie T. Mason, Sr.; and Special Agent in Charge Michael Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General.

According to his plea agreement, Cicala was a career employee at the U.S. Department of Justice, providing information technology support.  Cicala owned a beach house in Fenwick Island, Delaware.  From March 2015 through at least July 21, 2015, Cicala placed multiple ads in the Delaware, Maryland and District of Columbia editions of an online marketplace, seeking females to engage in “daddy-daughter” relationships.  On July 21, 2015, an undercover detective with the Worcester County Sheriff’s Office who was investigating child solicitation on the internet responded to Cicala’s ad entitled “Daddy’s Little Girl.” The undercover detective identified himself as “Sydney,” a 15 year old female, and Cicala identified himself as a male in his late 40’s.

Cicala and the undercover detective posing as “Syndey” exchanged messages for several weeks, eventually agreeing to meet to engage in sexually explicit conduct. On August 1, 2015, Cicala traveled from his beach house in Delaware to Berlin, Maryland, to meet “Sydney,” who did not show up, later claiming that she was unable to get away.  The texting continued and Cicala again made arrangements to meet Sydney on August 15, 2015, in Berlin. 

Virtually all of the conversations Cicala had with the undercover officer occurred using Cicala’s DOJ-issued phone or work computer, sometimes during work hours.  Cicala frequently attempted to engage “Sydney” in sexually explicit chat, instructing her to delete the message, and sent Sydney nude and partially nude photos of himself. However, throughout the text message exchanges “Sydney” refused to send sexually explicit photos or engage in sexually explicit chat. 

On August 15, 2015, Cicala traveled from his beach house in Delaware to Berlin, Maryland, to engage in sexual activity with “Sydney,” whom he believed to be a 15 year old girl.  He was arrested as he arrived at the meeting place.  He had his DOJ issued cell phone, which he had used for sending and receiving the texts with “Sydney.” In his SUV was bedding, pillows, a giftwrapped box with earrings Cicala had promised to bring “Sydney,” and cell phone batteries for the phone “Sydney” told him she used.  On August 17, 2015, Cicala was placed on administrative leave by the Department of Justice and is no longer employed by the agency.

At today’s hearing, Judge Hollander also signed a preliminary order of forfeiture for the vehicle in which Cicala traveled to have sex with the 15 year old, and its contents, including gifts he had purchased for the girl he thought he was meeting.  As part of his supervised release Judge Hollander ordered that Cicala have no access to the internet of any kind, including mobile devices, without approval from U.S. Probation and that he must participate in a sex offender treatment program as directed.

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 HSI Baltimore, Worcester County Sheriff’s Office and DOJ Office of the Inspector General for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.

Baltimore – A premier screening of a new documentary titled "Chasing the Dragon, The Life of an Opiate Addict," on Thursday, August 25, 2016 at 6:00 p.m. at the Community College of Baltimore County, Center for the Arts Building, 800 Rolling Road in Catonsville, Maryland.                 

The screening is sponsored by The Federal Bureau of Investigation (FBI) Baltimore Field Office, the Drug Enforcement Administration - Baltimore District Office, the U.S. Attorney's Office, Maryland Attorney General's Office and the Governor’s Office of Crime Control and Prevention.

“Attend the screening and watch the movie if you want to understand the heroin crisis and the extraordinary danger it poses,” said FBI Special Agent in Charge Kevin Perkins. “We need to prevent people from getting addicted to oxycodone and heroin, because treatment and prosecution cannot solve the problem.”

“As law enforcement has worked hard to address the prescription drug abuse epidemic, heroin has made a resurgence,” said DEA Special Agent in Charge Karl Colder. “We are at a critical point and need the support of our nation’s educators.”

The film was produced by the FBI and Drug Enforcement Administration (DEA) to educate high school students and young adults about the dangers of prescription drug and opioid abuse, and the tragic consequences of addiction.  The multi-agency goal is to promote the film to local educators and professionals who work with young people and encourage them to consider incorporating the film into their drug awareness program or curriculum.  THE EVENT IS OPEN TO THE MEDIA AND THE PUBLIC, so please share this information.

You can preview the two-minute trailer on YouTube at https://www.youtube.com/watch?v=yJQwfAQRRAE.  Also, here is a link to more information about documentary and the overall effort of the FBI and DEA to raise awareness about the national epidemic of heroin and prescription drug abuse:  https://www.fbi.gov/news/pressrel/press-releases/fbi-dea-release-documentary-film-addressing-heroin-prescription-drug-abuse.

Opening remarks will be provided by Dr. Sandra Kurtinitis, President, Community College of Baltimore County, Catonsville; Rod J. Rosenstein, United States Attorney for the District of Maryland; Special Agent in Charge Kevin Perkins, FBI Baltimore; Assistant Special Agent in Charge Don A Hibbert, DEA Baltimore; Brian Frosh, Maryland Attorney General; and Boyd Rutherford, Lieutenant Governor of Maryland.

The film screening will be followed by a panel discussion that will include representatives from law enforcement, health care, mental health, and recovery specialists. FBI Public Affairs Advisor Michael Kulstad will moderate the panel discussion.  Kulstad was a part of the FBI team that produced the video and has become a passionate advocate of promoting awareness and prevention nationwide.

The crisis involving prescription drug and opioid abuse is unlike any we have ever seen. Statistics show that deaths from opioid overdoses are one of the leading causes of accidental death in our country. In June of 2010, the CDC announced that 1 in 5 high school students had abused a prescription drug.

For more information, contact Dave Fitz at (410)277-6689 or Marcia Murphy at (410) 209-4854.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Calelah John Lattisaw, age 58, of New Carrollton, Maryland, today to three years in prison, followed by three years of supervised release, for wire fraud arising from a scheme to steal $110,107 in social security benefits. Judge Hollander ordered that Lattisaw be taken into custody immediately to begin serving his sentence.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division; and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.

According to his guilty plea, in February 1993, Lattisaw began receiving Supplemental Security Income through the Social Security Administration (SSA) for a disability.  In order to receive benefits, Lattisaw was required to report to SSA information regarding his income, resources and living arrangements. Lattisaw admitted that at the time of his application, he concealed from SSA that he was living with two other individuals, both of whom were also receiving SSA benefits.

In addition, Lattisaw took steps to hide additional income and assets from SSA. Specifically, in 1997, Lattisaw was living with his sister-in-law, S.L., who died on November 23, 1997.  At the time of her death S.L. was receiving Social Security Survivor Benefits, as well as a D.C. pension, administered by the U.S. Treasury.  Both benefits were paid by direct deposit to her bank account.  Prior to her death, Lattisaw was added as a co-signor to S.L.’s bank account under the name John. H. Lattisaw, using the social security number of another individual, B.K.  Neither SSA, nor the U.S. Treasury were advised of S.L’s death.  Although Lattisaw knew that he had no legal entitlement to S.L.’s beneifts, he withdrew virtually all of the SSA and pension benefits from S.L.’s account via ATM withdrawals and debit purchases.  Lattisaw did not advise SSA of this additional income, and because he had used an alias and the SSN of another person on the bank account, any check run by SSA to locate additional income would have been unsuccessful.

In 2003, while Lattisaw was receiving S.L.’s benefits and his own SSI benefits, Lattisaw married an elderly woman, M.B.  Shortly after marrying M.B., Lattisaw attempted to sell her home, but her family blocked the sale and had the marriage annulled.  In 2006, Lattisaw moved M.B. out of her nursing facility and into the home he shared with his girlfriend.  Lattisaw remarried M.B. and became power of attorney over one of her bank accounts and the co-signor on another bank account, again using his alias, John H. Lattisaw, and B.K.’s SSN.  M.B. died on June 11, 2006 at Lattisaw’s home.  Five days later, Lattisaw liquidated a certificate of deposit at one of M.B’s accounts and withdrew $161,000.  Lattisaw subsequently deposited those funds into a new account opened in the name of his alias, using B.K.’s SSN.  Lattisaw did not report the change in his living conditions, nor this additional income to SSA.

Had SSA been aware of Lattisaw’s income, resources, or living arrangements, he would not have qualified for SSI benefits.  Between 2000 and 2015, Lattisaw received $110,107 in SSI benefits to which he was not entitled.

United States Attorney Rod J. Rosenstein commended the Social Security Administration - Office of Inspector General and U.S. Department of the Treasury - Office of Inspector General for their work in the investigation and thanked Special Assistant U.S. Attorney Lauren E. Perry and Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Trevon Green, age 23, of Baltimore, today to 70 months in federal prison, followed by three years of supervised release, for the arson of a Baltimore food market in connection with the April 27, 2015, riots in Baltimore. Green also admitted that he participated in the looting of a liquor store and assaulted the store’s owner. 

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; Maryland State Fire Marshal Brian Geraci; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.           

“Trevon Green was not a protester, he was a criminal who enjoyed committing gratuitous violence,” said U.S. Attorney Rod J. Rosenstein. “He looted a liquor store and kicked the defenseless store owner in the head, then he set fire to a food market. We caught him because police and prosecutors spent time reviewing recordings from cameras throughout the city.”

On April 27, 2015, riots and widespread looting erupted in Baltimore following the funeral of Freddie Gray.  According to his plea agreement, Green participated in the rioting.  In the later afternoon of April 27, 2015, Green engaged in the looting at a liquor store located in the 2200 block of W. North Avenue. Green is captured on video leaving the store with a box of merchandise from the store.  Green stopped briefly to have a conversation with a woman outside the liquor store.  One of the owners of the store, who had previously been punched in the face, was crouching near his vehicle, just behind where Green was standing, watching the looting of his store.  After Green was done speaking with the woman, he turned, and without provocation or speaking a word, Green kicked the store owner in the face.  As a result, the owner crumpled to the street, suffering an injury to his face.

Just prior to 8:25 p.m., Green proceeded to the market located in the 1500 block of North Monroe Street in Baltimore.  Green was recorded on cell phone video with two other men near the broken front window of the market.  Green is recorded telling the other men to light the store on fire, as one of the men lit the contents of a garbage can on fire, then threw the can with its contents ablaze through the broken front window.  Others depicted on the video confirmed that the store was on fire and the video captured flames in the front of the store.  On the video recording, Green states that he and the others were setting the store on fire for Freddie Gray.  The damage to the store from the fire and looting is at least $334,894.16.  As part of his plea agreement, Green has agreed to the entry of a restitution order in the full amount of the victims’ losses.

During the investigation, ATF released video from the arson of the liquor store in an attempt to identify the perpetrators of the arson, as well as the assaults on the owner of the store. (link to the video: https://www.dvidshub.net/video/428956/assault-true-religion#.ViU1Wv3oteU) Multiple tips were received from the public identifying Green as one of the individuals assaulting the liquor store owner, which assisted law enforcement in identifying Green in the video from the subsequent arson of the market.

Green has been detained since his arrest.

The investigation into arsons that occurred on April 27, 2015, is continuing.  Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.

Federal prosecutors previously have charged four other defendants for arson crimes committed during the Baltimore riots on April 27, 2015. Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, pleaded guilty to the federal indictment charging him with obstruction of firefighters during a civil disorder, and is scheduled to be sentenced on September 20, 2016.  Darius Raymond Stewart, age 22, of Baltimore, pleaded guilty to malicious destruction of property by fire, arising from the arson of a liquor store and was sentenced to five years in federal prison. Donta Betts, age 20, of Baltimore, was sentenced to 15 years in federal prison for making a destructive device in connection with the April 27, 2015, riots in Baltimore and, in an unrelated case, for discharge of a firearm in furtherance of a drug trafficking crime on July 2, 2015. Raymon Carter, age 25, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.

United States Attorney Rod J. Rosenstein praised the ATF, Office of the State Fire Marshal, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Judson T. Mihok, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced, John Howard Brady, age 74, of Glen Burnie, to three years in prison, followed by three years of supervised release, for conspiracy and two counts of bribery in connection with a scheme in which Brady and other commercial haulers paid City of Baltimore Department of Public Works (DPW) employees cash in return for allowing the haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees. Brady was convicted on November 20, 2015, after a five day trial. Judge Garbis also ordered that Brady pay restitution, with the exact amount to be determined at a later date.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

The DPW’s Bureau of Solid Waste is responsible for managing Baltimore City’s waste management services, including overseeing citizen drop-off centers, such as the NWTS and the Landfill.  Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge.  Individuals or companies commercially hauling trash that have registered their vehicles with the City must obtain Landfill permits. Commercial haulers of trash must also pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.  DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system.  The scale house operators reweigh each truck as it leaves the Landfill.  The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.

According to the evidence presented at Brady’s trial, Brady was a commercial trash hauler who owned and operated Brady’s Roll Off Service.  Beginning in approximately 2002, Brady agreed to pay bribes to the DPW scale house operators, including Tamara Washington and William Nemec.  In exchange, the scale house operators did not charge Brady a disposal fee for using the Landfill.  For example, on March 30, 2015, Brady paid a $2,000 cash bribe to Tamara Washington, which represented about 20 trips to the landfill when Brady was allowed to dump for free.  The bribes paid to the scale house operators saved Brady thousands of fees each month.  Brady either paid the operator through the outbound window at the scale house, or met the operators at an off-site location where he would pay a week’s worth of bribes or more.  Evidence at trial established that Brady’s company used the landfill dozens of times a year since 2002, resulting in a loss of more than $1,000,000 in disposal fees for the City of Baltimore.    

Former Baltimore City Department of Public Works (DPW) employees William Charles Nemec, Sr., age 56, and Tamara Oliver Washington age 56, both of Baltimore, pleaded guilty to their roles in the scheme and were sentenced to 78 months to 18 months in prison, respectively. Judge Garbis also entered orders requiring Nemec and Washington to pay restitution of $6 million.  A total of six Baltimore Department of Public Works (DPW) employees and six commercial trash haulers, including Brady, Nemec, and Washington, have been convicted in federal court for this scheme, and/or a second scheme in which DPW employees stole scrap metal from the Landfill for personal gain.

United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General, and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke and Leo J. Wise, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Jonathan J. Lewin, age 46, of Pikesville, Maryland, today to five years in federal prison, followed by 12 years years of supervised release, for receiving and possessing child pornography. Judge Garbis also ordered that upon his release from prison Lewin 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 Kevin Perkins of the Federal Bureau of Investigation; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.

According to information presented to the court at the plea hearing, Lewin admitted that prior to May 16, 2014, he received child pornography from a file sharing network and that on May 16, 2014, Lewin made child pornography publicly available to other users of a file sharing network using an internet account assigned to his residence.  On May 26, 2014, a law enforcement officer engaged in undercover internet investigations for offenders publicly sharing child pornography located a device used by Lewin, which was accessing the internet.  The undercover officer downloaded several files that Lewin was sharing over the internet which depicted sexually explicit images of nude prepubescent girls.

On June 12, 2014, law enforcement officers executed a search warrant at Lewin’s home and recovered numerous electronic devices, including an external hard drive, two thumb drives, a tablet computer, a custom built desk top computer, and several cloud accounts.  Forensic examination of the computer and other electronic devices revealed thousands of images of child pornography, including the images downloaded by the undercover officer.

Additionally, the forensic examination revealed that Lewin used his cell phone camera to take hundreds of voyeuristic images of young females in public places including the zoo, grocery stores, and parks. Many of these images included zoomed in images of prepubescent female children’s buttocks and appeared to be taken while Lewin was following the children around a park or store.  Lewin added sexually explicit text banners to some of these voyeur images. It is clear from the images that the subjects were unaware that they were being followed or photographed. These images were stored on Lewin’s computer and other devices and sorted into individual folders, often by location.

One recurring subject of Lewin’s voyeuristic photographs was a prepubescent female child, age 14, with whom Lewin was acquainted. Lewin had photographs of this girl that were extracted from her and her mother’s social media, without their knowledge and were cropped and zoomed so that she was the focus of the image. Lewin also had photographs of her taken from inside her home and photographs of her exiting a vehicle that Lewin was driving which focused on her backside and buttocks. Lewin saved the images of this child on his computer and other devices in a folder titled in her name. 

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, HSI Baltimore and Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Sandra K. Wilkinson and Special Assistant United States Attorney Lauren E. Perry, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge J. Frederick Motz sentenced Ronnie Candelario, age 32, of Edgewood, Maryland, today to 41 months in prison, followed by three years of supervised release, after Candelario pleaded guilty to the possession of an unregistered silencer. 

The guilty plea and sentence 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 (ATF) - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Harford County Sheriff Jeffrey R. Gahler.

According to his plea agreement, from at least April until June 2016, Candelario manufactured and sold AR-15 style assault rifles in Maryland without a license.  Between April 15 and June 16, 2016, a confidential source working with the ATF purchased six automatic and semi-automatic assault rifles as well as two silencers from Candelario, typically meeting in a gas station parking lot to complete the transactions.  The source told Candelario that the firearms he was purchasing were for resale in New York.  Candelario told the source that he was manufacturing the guns and silencers that he sold and that he had other customers for whom he was manufacturing AR-15 style firearms.  Candelario did not have any guns or silencers registered to him.

On June 22, 2016, ATF agents executed a search warrant at Candelario’s residence in Edgewood and recovered items used to manufacture firearms and silencers, including: boxes of AR-15 lower receivers; a fuel filter with an adapter used in the assembly of silencers; AR-15 magazines and rifle sights with boxes; and vices, a drill press, and other tools.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Harford County Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Kenneth Clark, who prosecuted the case.

Greenbelt, Maryland – Sylvia Price, a/k/a “Deez Nuts,” age 50, of Suitland, Maryland pleaded guilty today to conspiring to participate in a racketeering conspiracy and to aggravated identity theft, in connection with her activities in the Simple City Criminal Organization (SCCO), a racketeering enterprise engaged in fraud and related activity, including vehicle theft and interstate transportation of stolen property.  Specifically, Sylvia Price admitted that she engaged in fraudulent financial transactions, using the identities of over 230 victims, with losses to the victims of SCCO’s activities of at least $453,900.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to her plea agreement, from at least 2009 to July 2015, Price and her conspirators met on a regular basis, and planned criminal activity, including vehicle theft, the interstate transportation of stolen property, identity theft and credit/debit card fraud.  The SCCO received money and income from those criminal activities.

For example, Sylvia Price received stolen pocketbooks containing checks, credit and debit cards, and other forms of identification, such as driver’s licenses, from other members of SCCO.  Price and other conspirators used the stolen items to conduct fraudulent financial transactions. The money obtained from those transactions was given to Price, who then provided a portion to another SCCO member, to divide with the co-conspirators who stole the pocketbooks.  Law enforcement intercepted communications between Price and another SCCO member in which they discuss providing handbags stolen from automobiles to Price. 

On July 16, 2015, law enforcement agents executed a search warrant at Price’s home in Suitland and recovered checkbooks and means of identifications of individuals who had reported their vehicles stolen, or had reported a theft of those items from their vehicle.  In addition, law enforcement recovered 95 women’s designer handbags worth approximately $53,000, as well as gift cards totaling approximately $1,180.

As part of her plea agreement, Sylvia Price will be required to forfeit and pay restitution of at least $453,900, the full amount of the victims’ losses.

Sylvia Price faces a maximum sentence of 20 years in prison for the racketeering conspiracy, and a mandatory sentence of two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge George J. Hazel has scheduled sentencing for November 21, 2016, at 2:30 p.m.

Co-defendants Stefon Janey, a/k/a “Stef,” and “Stef Luva,” age 23, of Marlow Heights, Maryland, Jessica Rubio, age 38, of Washington, D.C. previously pleaded guilty to their participation in the racketeering conspiracy.  Rubio also pleaded guilty to aggravated identity theft.  Judge Hazel sentenced Janey to 27 months in prison, and Rubio to 40 months in prison.

United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department, Montgomery County Police Department and the members of the Washington Area Vehicle Enforcement Unit for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Nicolas A. Mitchell, who are prosecuting the case.

Greenbelt, Maryland – A federal grand jury returned a second superseding indictment charging Anthony Darnell Boyd, Jr., a/k/a Tony Fortune, Tone Tone, Big Tony, Jermaine Jefferson, and Paul Dreber, age 37, of Capitol Heights, Maryland, with two counts of being a felon in possession of firearms.  The indictment also charges Boyd, Bianca Desirea Williams, a/k/a Bianca Boyd, Chocolate, Mahogany, and Katrina Watson, age 22, also of Capitol Heights; Natalie Ragsdale Goetschius, a/k/a London, age 22, of Baltimore, Maryland; and David D’Von Frazier, a/k/a Peanut, age 24, of Bladensburg, Maryland, with conspiracy to tamper with evidence and obstruct a federal proceeding. 

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief Earl L. Cook of the Alexandria, Virginia Police Department.

According to the three count indictment, on July 21, 2016, law enforcement executed a search warrant at Boyd’s residence in Capitol Height, where he lived with Williams, and recovered two loaded 9 millimeter semi-automatic pistols and three additional rounds of 9 millimeter ammunition.  Boyd was arrested and charged with being a felon in possession of firearms and ammunition (as charged in the previous indictments and in count one of this second superseding indictment). 

After his arrest, Boyd was detained and subsequently housed at the Chesapeake Detention Facility (“CDF”) in Baltimore, Maryland, under the name “Jermaine Jefferson,” the name Boyd previously had given to law enforcement in connection with a prior felony conviction and under which Boyd served a sentence of imprisonment exceeding one year for that prior felony conviction.

Between July 22 and August 6, 2016, while Boyd was held at CDF, he made numerous calls to Williams, Goetschius, and Frazier through his inmate telephone account.  The calls were recorded, as are all jail calls per CDF policy.  According to the indictment, during those calls Boyd, Williams, Goetschius, and Frazier conspired to tamper with evidence and to obstruct the government’s ongoing investigation.  Specifically, the indictment alleges that the defendants attempted to conceal additional firearms owned by Boyd.  Those firearms, a 7.62 millimeter caliber, semi-automatic rifle, two .357 caliber revolvers (one with an obliterated serial number), a 12 gauge shotgun, a 9 millimeter semi-automatic pistol, and assorted rounds of ammunition, were recovered and are charged in count two of the second superseding indictment.  The indictment further alleges that, in an effort to obstruct the investigation, the defendants submitted a document to the Court falsely claiming that Goetschius owned and possessed the firearms recovered from Boyd’s home on July 21, 2016.

Boyd faces a maximum sentence of 10 years in prison for each of the gun charges.  The defendants each face a maximum sentence of 20 years in prison for conspiracy to tamper with evidence and obstruct a federal investigation.  Boyd is scheduled to have an initial appearance and arraignment on August 24, 2016, in U.S. District Court in Greenbelt and he remains detained.  No court appearance has been scheduled for Williams, Goetschius, and Frazier who remain detained on related 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 the FBI Washington and Baltimore Field Offices, the Prince George’s County Police Department and Alexandria, Virginia Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Ray D. McKenzie, who is prosecuting the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Vinnie Lysander Taylor, a/k/a “T,” age 44, of Wilmington, North Carolina, Pennsylvania and Georgia, today to 14 years in federal prison, followed by three years of supervised release, for receiving and selling industrial grade silicone, but representing to customers that it was medical grade silicone.  A client died as a result of receiving such injections.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Prince George’s County State’s Attorney Angela D. Alsobrooks; Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief J. Thomas Manger of the Montgomery County Police Department.

“FDA regulates medical devices to protect the public from potentially dangerous complications and side effects. Industrial-grade silicone that is injected into individuals’ bodies can cause serious bodily injury or death,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations’ Metro Washington Field Office. “FDA’s OCI will continue to work with our law enforcement partners to bring to justice those who offer such dangerous products to the public.”           

Taylor admitted that from at least 2008 through December 16, 2014, he administered silicone injections into the buttocks of customers who wanted larger or fuller buttocks. Taylor, who was not a licensed medical practitioner, falsely represented to customers and victims to whom he administered liquid silicone injections that the procedure was safe and that he used medical grade silicone, when in fact the silicone was not medical grade silicone. Taylor administered the injections in hotel rooms in Prince George’s County, Maryland, St. Louis, Missouri, Arlington, Virginia, and elsewhere. Taylor charged between $800 and $1000 for the initial injections and between $350 and $800 for subsequent injections. When used in this fashion, liquid silicone is a medical device subject to regulation by the FDA.

In Maryland, between at least 2012 and December 2014, Taylor administered silicone injections to more than 10 individuals, representing to each victim that he used medical grade silicone and that it was safe.  In fact, Taylor did not use medical grade silicone, but used polydimethylsiloxane, a common silicone product used in commercial applications such as foods, lubricating oils, sealants and shampoos.

On March 20, 2014, Taylor injected silicone into the buttocks of a victim.  After the victim left the hotel she began having breathing difficulties.  On March 22, 2014, the victim checked herself into the hospital and two days later, she died.  An autopsy determined that the cause of death was acute and chronic respiratory failure due to a foreign substance causing a pulmonary embolization.  The medical examiner ruled the manner of death to be a homicide.  A clear viscous fluid removed from the victim’s buttocks during the autopsy was determined to be polydimethylsiloxane.

According his plea agreement, from approximately 2008 through December 2, 2014, Taylor purchased 152 gallons of food grade liquid silicone. Taylor stored the liquid silicone in plastic bottles that were not labeled nor approved by the FDA for that purpose.  Therefore, the liquid silicone was adulterated and misbranded.  The 152 gallons of silicone equates to 3,196 sessions.  At $500 per treatment, Taylor’s mid-range fee, proceeds from the illegal injections total at least $1,598,000.

As part of his plea agreement, Taylor has agreed to plead guilty to a criminal information filed in Prince George’s County Circuit Court, admitting that his conduct resulted in the death of the victim in March 2014.  In exchange, the Prince George’s County State’s Attorney’s Office dismissed first degree murder charges which were pending against Taylor.

Taylor remains detained.

United States Attorney Rod J. Rosenstein praised the FDA Office of Criminal Investigations’ Metro Washington Field Office, the Prince George’s County Police Department, Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston and William D. Moomau, who prosecuted the case.

Baltimore, Maryland – PNC Bank N.A. has agreed to pay the United States $9.5 million to settle claims under the False Claims Act in connection with the issuance of loans guaranteed by the U.S. Small Business Administration (SBA).  PNC is a national banking association with its principal offices located in Pittsburgh.

The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; U.S. Small Business Administration Inspector General Peggy E. Gustafson; and SBA General Counsel Melvin F. Williams, Jr.

“Banks that are trusted to make loans backed by the SBA have a duty to apply proper lending standards, because the United States is obligated to pay when federally-backed loans default,” said U.S. Attorney Rod J. Rosenstein. “The government will vigorously pursue lenders that fail to enforce reasonable lending standards and stick the taxpayers with the bill for bad loans.”

“This case is the latest example of the significant, positive results achieved through the combined efforts of the SBA and the Department of Justice to uncover, and forcefully address, civil fraud committed in connection with SBA's lending programs,” said SBA General Counsel, Melvin F. Williams, Jr.  “Rooting out, and vigorously pursuing, instances of civil fraud committed by those who participate in the lending programs of SBA is among the highest priorities of this Agency.”

“The SBA Office of Inspector General will aggressively investigate wrongdoing in SBA programs,” said Inspector General Peggy E. Gustafson.  “SBA’s loan programs are designed to provide eligible small businesses access to capital to finance and grow their businesses, and SBA’s preferred lenders have a responsibility to apply prudent lending standards in making these loans.” 

The SBA Act allows banks to partner with the SBA to make loans to qualified small businesses. Participants in the SBA’s Preferred Lenders Program (PLP), like PNC, have authority to make and close these loans without obtaining the prior approval of the SBA.  Banks are required to comply with terms and conditions, including SBA regulations, standard operating procedures (“SOPs”), and prudent lending standards, when making loans under the Preferred Lenders Program.  In the event a borrower defaults on the loan, SBA guarantees to repay the lender 75% of the balance of the loan.

As a PLP lender, PNC approved 74 SBA-guaranteed loans that were brokered by Jade Capital & Investments LLC (“Jade Capital”) through its principals, including Joon Park (“Park”).  Beginning in 2006, certain Jade Capital loans went into default.  PNC submitted guaranty claims to SBA for payment for many of the defaulted loans.  The SBA approved the claims for 24 loans and paid PNC the SBA-guaranteed portion of the unpaid balance of the loans at the time of default, minus any recovery from the liquidation of business assets.

The U.S. Attorney’s Office for the District of Maryland subsequently prosecuted Joon Park and others associated with Jade Capital, for conspiring to commit bank fraud in connection with a scheme to fraudulently obtain business loans guaranteed by the SBA, with resulting losses of over $100 million. Joon Park and other defendants admitted in plea agreements that they created and submitted false and fraudulent documents to secure PNC’s loan approval.  For example, Joon Park and others used computer software programs to alter bank statements, and created false management resumes, profit/loss figures, and gift letters, among other documents.  PNC in turn approved the loans based on the documentation provided by Joon Park and others.  Joon Park and five other defendants were convicted for their roles in the scheme and sentenced to federal prison.

The United States contends that it has civil claims against PNC with regard to the Jade Capital Loans for failing to adhere to requirements as a PLP lender, including demanding adequate bank and IRS tax records from the borrowers, ensuring that the borrowers had the ability to repay the loans, and failing to apply prudent lending standards.  Moreover, PNC sought payment on SBA guarantees even though PNC should have known that SBA requirements to recover on the guarantees were not met.  

U.S. Attorney Rod J. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Roann Nichols, the SBA Office of Inspector General and the SBA Office of General Counsel for the collaboration that resulted in the settlement announced today. The claims settled by this agreement are allegations only; there has been no determination of liability. Criminal charges against Jade Capital and its co-owner Loren Park, who is a fugitive, are still pending. 

Greenbelt, Maryland – A federal jury convicted Olden Minnick, a/k/a “O,” age 53, of Clinton, Maryland, today on charges connected to a conspiracy to distribute heroin and marijuana.

The guilty verdict 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 Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.                               

According to the evidence presented at his four-week trial, from June 2012 to December 3, 2014, Minnick conspired with Terrance Stanback, Sean Wilson, Christian Byrd, and others to distribute heroin and marijuana.  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.

Minnick faces a mandatory minimum sentence of 10 years in prison, and a maximum of life in prison, as well as a fine of up to $10 million.  U.S. District Judge Theodore D. Chuang has scheduled sentencing for Minnick on December 7, 2016 at 10:30 a.m.    

Co-defendant Terrance Stanback, age 52, of Clinton, Maryland, pleaded guilty to his role in the conspiracy on the day before trial and is scheduled to be sentenced on October 14, 2016 at 10:00 a.m.  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 are prosecuting this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – U.S. District Judge George Jarrod Hazel sentenced Bryan Leneil Tiggle, age 32, of Accokeek, Maryland, late on August 15, 2016, to 10 years in federal prison, followed by four years of supervised release, for conspiracy to possess with intent to distribute cocaine and 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; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Hank Stawinski of the Prince George’s County Police Department.

According to their plea agreements, between April and May 2015, Tiggle and co-conspirator Sean Michael Midgette conspired to rob a drug dealer.  On April 8, 2015, Tiggle met with an undercover ATF agent and agreed to rob a cocaine dealer’s stash house, then split the 12 kilograms of stolen cocaine.  Tiggle told the undercover agent that he would bring another individual to the next meeting to discuss the robbery. On April 29, 2015, Tiggle brought Midgette to meet with the undercover agent and discuss the details of the robbery.  Tiggle and Midgette stated that they would re-package the stolen drugs before selling their portions, and offered to help the undercover agent to sell his share of the cocaine as well.

On May 8, 2015, the undercover agent spoke with Tiggle and Midgette by telephone and the conspirators confirmed that they were ready to commit the robbery.  Tiggle and Midgette drove together to meet the undercover agent at an agreed upon location.  Midgette and Tiggle confirmed to the undercover officer that they were armed and Midgette put a duffle bag containing the guns in the back seat of the undercover agent’s vehicle.  Tiggle rode with the undercover agent while Midgette followed in another vehicle.  Tiggle and Midgette were subsequently arrested by law enforcement. 

From the duffle bag, law enforcement recovered a 9 millimeter semi-automatic firearm, a .45 caliber semi-automatic pistol with an obliterated serial number, a black body armor vest, and 64 rounds of ammunition.  From Tiggle and Midgette’s vehicle officers recovered three black hoodies, gloves and a black balaclava.  A search warrant executed at Midgette’s residence also recovered digital scales, and drug packaging materials.

Sean Michael Midgette, age 33, of Upper Marlboro, Maryland, previously pleaded guilty and was sentenced to 101 months in prison.

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 Special Assistant U.S. Attorney Matthew L. Paeffgen and Assistant U.S. Attorney Thomas M. Sullivan, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Monica Kendrick, age 47, of Walkersville, Maryland, today to 27 months in federal prison, followed by three years of supervised release, for wire fraud arising from a scheme in which she embezzled money from her employer. Judge Chuang also ordered Kendrick pay restitution of $271,921.06, the total amount of loss resulting from the scheme.

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

According to her plea agreement, In May 2014, Kendrick was hired as the office and finance administrator for a non-profit organization located in Silver Spring, Maryland, which acted as a trade association for the herbal products industry.  Almost immediately after being hired, Kendrick began stealing money from the company.  From May 2014 to November 2015, Kendrick wrote over 80 unauthorized checks from the company and deposited the fraudulent checks into a bank account.  She then withdrew the illicit proceeds from the account.

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 and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Michael Smith, a/k/a Lil Mikey, age 23, of Baltimore, to 24 years in federal prison, followed by five years of supervised release, for conspiring to participate in a racketeering enterprise in connection with his gang activities as a member of the “Up the Hill,” “Up da Hill” and “UDH” (UDH) organization, which operates in the Cherry Hill section of Baltimore.

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

According to his plea agreements, from at least 1997 to 2013, the UDH organization operated in the Cherry Hill area of Baltimore.  UDH members have been in a violent dispute with both the “Coppin Court” and “Little Spelman” organizations, which are involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” or “Down da Hill.”  In addition to selling drugs, UDH members have also committed murders, assaults and robberies.

Some of these acts of violence include the August 28, 2011 murder of Little Spelman member Dewayne Jones; the January 20, 2012 murder of Little Spelman leader Dominic Hope; and the August 19, 2009 murder of Charles Pratt.

Smith admitted that he shot and killed rival gang member Charles Pratt on August 9, 2009 in the 600 block of Cherry Hill Road.  Smith also admitted that on August 17, 2009, in the 1700 block of E. Lafayette Avenue he possessed a gun that he used in a shootout with another individual earlier that day.  An individual was hit in the crossfire and suffered a minor injury.  The firearm possessed by Smith was the same gun that was used in a shooting on June 13, 2009; was used to shoot and kill Charles Pratt; and was discharged on August 12, 2009.

Smith also knew that UDH members sold narcotics throughout the neighborhood.  During his involvement in the conspiracy, it was foreseeable to Smith that UDH was responsible for the distribution of at least one kilogram of heroin, five kilograms of cocaine, 280 grams of crack cocaine, and marijuana.

A total of 35 Cherry Hill gang members have pleaded guilty to their roles in the racketeering and/or narcotics distribution conspiracies, as well as to other violent crimes.

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. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced former Baltimore City Department of Public Works (DPW) employee Tamara Oliver Washington, age 56, of Baltimore, today to 18 months in federal prison, followed by three years of supervised release, for conspiracy and solicitation of bribes.  The charges stemmed from a 14 year scheme in which Washington and other DPW employees sought and accepted cash payments from commercial trash haulers in return for allowing the commercial haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees.  Judge Garbis also entered an order requiring Washington to pay restitution of $6 million.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

The DPW’s Bureau of Solid Waste is responsible for managing Baltimore City’s waste management services, including overseeing citizen drop-off centers, such as the Northwest Transfer Station (NWTS) and the Landfill.  The waste management system generates revenue for the City by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities.  Baltimore contracts with private salvage companies to purchase and remove scrap metal from its trash collection facilities. DPW employees at the Landfill and NWTS are required to place the recyclable scrap metal in separate bins provided by the salvage companies.  The salvage companies regularly pick up the scrap metal and, based on predetermined prices per ton, the salvage companies pay the City for the value of the scrap metal.           

Baltimore residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge.  Individuals or companies commercially hauling trash that have registered their vehicles with the City and obtained Landfill permits, as well as Baltimore residents with larger loads, must deposit their trash in an open area located further within the Landfill.  Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.

According to her plea agreement, Washington was a DPW employee assigned to the scale house at the Landfill.  DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system.  To activate the system and record a particular transaction, DPW employees must enter the tag number of the truck and a corresponding billing code.  The scale house operators reweigh each truck as it leaves the Landfill.  The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.

Beginning in 2001, about three months after getting hired as a scale house operator at the Landfill, Washington started accepting bribe payments from small haulers in lieu of charging them the full disposal fee for using the Landfill.  Beginning in 2002, about one year after being hired, Washington started accepting bribe payments from large haulers of trash in lieu of charging them the full disposal fee for using the Landfill.  Washington and other scale house employees accepted $100 bribe payments from some haulers for each truckload of trash dumped at the Landfill. Washington participated in the bribery scheme for more than fourteen years, until her arrest in May 2015. 

Washington and others concealed the bribery scheme by not entering a truck’s registration number into the computerized scale system, which meant the transaction was not recorded.  Consequently, the transaction would not appear on the scale house’s daily logs and the commercial hauler would not be billed for using the Landfill on that particular occasion.  To maintain the pretense that the trucks had been weighed and the disposal fee paid, Washington and others would hand the truck drivers fake or blank receipts when they crossed the outbound scale.  In return, the commercial haulers either paid the $100 bribe through the outbound window at the scale house or met with Washington or another scale house operator at an off-site location to pay a week’s worth of bribes or more.  The commercial haulers always paid the $100 bribes in cash. 

By paying the $100 bribes in lieu of the disposal fees, these haulers saved their businesses thousands of dollars each month, which, in turn, cost the City of Baltimore more than $6 million in revenue.  From July 1, 2014 through May 1, 2015 alone, Washington accepted on her own behalf, and on behalf of other DPW employees, more than $40,000 in bribe payments from one individual in return for not charging the individual or his company the required waste disposal fees, which totaled approximately $120,000 during that period of time. 

Six Baltimore Department of Public Works (DPW) employees and six commercial trash haulers have been convicted in federal court for this scheme, and/or a second scheme in which DPW employees stole scrap metal from the Landfill for personal gain.   

United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General, and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Martin J. Clarke and Leo J. Wise, who prosecuted the case.

Baltimore, Maryland – Brian Nelson Halsey, age 52, of Westminster, Maryland, formerly of Dundalk, Maryland, pleaded guilty today to interstate transportation of stolen goods in connection with a scheme to sell property stolen from shopping mall kiosks online.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

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

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

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

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

Halsey faces a maximum sentence of 10 years in prison.  As part of his plea agreement, he will also be required to pay restitution in the full amount of the victims’ losses.  U.S. District Judge Richard D. Bennett has scheduled sentencing for November 15, 2016 at 3:00 p.m.  Halsey remains detained.

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