District of Maryland

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Suleiman Pasha, age 33, of Columbia, Maryland, today to eight years in prison, followed by three years of supervised release, in connection with a bribery and drug conspiracy in which he bribed letter carriers to divert packages of marijuana sent through the mail and deliver the packages to him and other co-conspirators.  Judge Motz also ordered Pasha to forfeit $14,700.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City Sheriff John Anderson.

According to his plea agreement, Pasha conspired with letter carriers Antoinette McDaniels and Hilary Gainey, paying them bribes in exchange for diverting packages containing marijuana and delivering those packages to him, and co-conspirators Gary Coleman and Cyril Boodoo.

Specifically, Pasha admitted that in February 2014 and April 2014, he approached Antoinette McDaniels and Hilary Gainey, respectively, while they were employed by the U.S. Postal Service as letter carriers, and offered to pay McDaniels and Gainey $100 per parcel if they would divert specific packages sent through the U.S. mail that contained marijuana, and deliver those packages to him and other co-conspirators. McDaniels and Gainey agreed to this arrangement.  Pasha introduced McDaniels and Gainey to Coleman and other co-conspirators, and directed McDaniels and Gainey to deliver certain packages to those co-conspirators as well. Pasha and his co-conspirators paid the letter carriers up to $100 for each parcel diverted and delivered to them.  According to court documents the packages were sent via the U.S. mail from Arizona, California, Florida, and elsewhere, to addresses along McDaniels’ route in Baltimore and Gainey’s route in Columbia, Maryland. 

Gainey and McDaniels delivered approximately 100 packages and 30 packages, respectively, to Pasha, Coleman and Boodoo. Gainey was paid a total of $10,000 by the co-conspirators and McDaniels was paid a total of $4,700 by the co-conspirators. Pasha admitted that during his participation in the conspiracy, between 100 and 400 kilograms of marijuana were distributed.

Gary Coleman, a/k/a “Short,” age 45, and Cyril Boodoo, age 55, both of Baltimore, Antoinette McDaniels, age 47, of Windsor Mill, Maryland, and Hilary Gainey, age 27, of Baltimore previously pleaded guilty to their roles in the conspiracy. Judge Motz sentenced Coleman to nine years in prison, Boodoo to six months in prison, and sentenced McDaniels and Gainey each to three years’ probation.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, DEA, Maryland State Police, Baltimore City Police Department and Baltimore City Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Jason D. Medinger, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Adedeji Ajala, age 36, of Baltimore, Maryland today to seven years in federal prison, followed by four years of supervised release, for conspiracy to import heroin.

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); Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.

According to the evidence presented at his six day trial, two international parcels, one sent in July 2014 to the name “Wayne Adams,” at an address on Whittier Avenue in Baltimore; and one sent in August 2014 to the name “Bobby Mills,” at 3814 Old Frederick Road in Baltimore, are associated with Ajala.  Both packages were intercepted by investigators, searched pursuant to a federal search warrant, and found to contain a total of approximately 382.5 grams of heroin. 

On August 12 and August 14, 2014, undercover postal inspectors placed calls to an individual, later identified as Ajala, to arrange for a controlled delivery of the Old Frederick Road package.  During those calls, Ajala portrayed himself as “Bobby Mills,” and inquired about the whereabouts and pickup of the Old Frederick Package.  According to trial testimony, Ajala provided fraudulent identity documents, including a driver’s license and social security card in the name of “Bobby Mills,” to a co-conspirator, so that the co-conspirator could pick up the Old Frederick Road package.

According to evidence presented at trial, Ajala drove the co-conspirator to the Carroll Station Post Office on August 15, 2014, to attempt to pick up the Old Frederick Road package.  The co-conspirator went inside to get the package and was arrested almost immediately.  Shortly thereafter, several investigators approached Ajala, who was sitting outside in his car. Ajala sped off, striking two unmarked police cars with officers inside, and then fled on foot down an alley. 

Witnesses testified that law enforcement recovered several cell phones from Ajala’s abandoned vehicle.  One of those phones, found on the driver’s side floor, contained both the tracking number for the Whittier Package and the tracking number for the Old Frederick Package.  That same cell phone showed the two incoming calls, in which the undercover postal inspectors had spoken with Ajala about that package.  Another phone, found in the center console, contained the full address found on the Old Frederick Package.   

United States Attorney Rod J. Rosenstein praised HSI Baltimore, U.S. Postal Inspection Service, and DEA for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew C. Sullivan and Christopher J. Romano, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Antoine Dewayne Savoy, age 35, of Lusby, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute powder and crack cocaine. 

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; 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 his plea agreement and other court documents, from January through July 2015, Savoy conspired with Colbert Juan Jones, Vincent Leo Fletcher, Troy Taishon Swann, and James Devwan Pixley, to distribute cocaine.  Jones sold cocaine to his customers, which included Savoy and Pixley.  Savoy and Pixley purchased cocaine from Jones several times a month and used at least half of that cocaine to manufacture crack cocaine, which they sold in smaller distribution quantities.  Savoy often retrieved the cocaine from a home in Prince Frederick, Maryland, from which Jones distributed narcotics.  Savoy would either meet Jones there and personally exchange money for the cocaine, or retrieve the cocaine from a hiding place known to Savoy and Jones.  Savoy would then leave cash in the hiding place, or arrange another time and place to provide money to Jones.

Jones obtained cocaine from Fletcher and other sources.  Fletcher obtained cocaine several times a month from Swann and other suppliers.  Fletcher distributed the cocaine to his customers for further distribution, and used some of the powder cocaine to manufacture crack cocaine, which he also distributed. 

Colbert Juan Jones, age 33, of St. Leonard, Maryland, and Vincent Leo Fletcher, age 29, of Clinton, Maryland, and James Devwan Pixley, age 26, of Waldorf, Maryland, were each previously sentenced to 10 years in prison. Troy Taishon Swann, age 39, of Waldorf, pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on July 11 2016 at 11:00 a.m.

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.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Darrell Lee, age 48, of Charlotte Hall, Maryland, today to184 months in prison followed by five years of supervised release for robbery, and for carrying and brandishing a gun during a robbery. Judge Grimm also ordered Lee to pay restitution of $24,791.50 and forfeit $19,987.

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; St. Mary’s County Sheriff Tim Cameron; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to his plea agreement, on June 18, 2014, Lee and Furman Troy entered a jewelry store in Charlotte Hall.  Lee brandished a gun at the store owner and Troy bound the victim with duct tape.  After obtaining the key to the jewelry counter from an employee, they stole jewelry worth approximately $8,890, cash, a laptop computer valued at approximately $2,100 and other items.

On June 22, 2014, Lee and Troy robbed a pharmacy in Mechanicsville, Maryland.  Again, Lee brandished a gun and Troy bound the employee with duct tape.  They stole cash and prescription bottles containing oxycodone, methadone, hydrocodone and endocet, valued at approximately $8,997.

Furman Troy, age 45, of Charlotte Hall, Maryland, pleaded guilty to his participation in the scheme and was sentenced to 12 years in prison. In addition, Michael Burgess, age 54, of Alexandria, Virginia, and Abdelrahim Ayyad, a/k/a Sahid, age 50, of White Plains, Maryland previously pleaded guilty to their roles in the robberies and await sentencing.

United States Attorney Rod J. Rosenstein commended the FBI, St. Mary’s County Sheriff’s Office and Maryland State Police for their work in the investigation, and recognized the St. Mary’s County State’s Attorney’s Office for its assistance in the case.  Mr. Rosenstein thanked Assistant United States Attorney Leah J. Bressack, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Alexander E. Agniadis, age 28, of Westminster, Maryland, today to 54 months in prison, followed by three years of supervised release, for distribution of heroin. An individual died after receiving heroin from Agniadis.  Judge Motz also ordered that Agniadis pay restitution of $6,743.41 to the victim’s family for the cost of his funeral and final arrangements.  There are no suspended sentences or parole in the federal court system.

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; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Jeffrey Spaulding of the Westminster Police Department; Carroll County Sheriff James DeWees; and Carroll County State’s Attorney Brian DeLeonardo.

According to Agniadis’ plea agreement, at approximately 3:30 p.m. on December 28, 2014, Agniadis distributed heroin to an individual in the vicinity of Medinah Circle in Westminster.  Text messages show that the individual contacted Agniadis to obtain heroin.  According to witnesses Agniadis and the individual met at about 3:30 p.m., and Agniadis gave the individual a small amount of heroin.  The individual was not in contact with his family or anyone else after that time and his phone reflects only unanswered calls and incoming texts from that time forward. The individual was found dead on January 5, 2015.  The Medical Examiner determined that the victim died of heroin intoxication.

As part of the investigation, in early January 2015, heroin was purchased from Agniadis.  On January 14, 2015, a search warrant was executed at Agniadis’ residence and law enforcement recovered 14 individually wrapped glassine bags containing heroin, and additional bags with heroin residue.

United States Attorney Rod J. Rosenstein commended the DEA and the Carroll County Drug Task Force comprised of the Maryland State Police, Westminster Police Department, Carroll County Sheriff’s Office and Carroll County State’s Attorney’s Office, for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorney Andrea L. Smith, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland –. U.S. District Judge Ellen L. Hollander sentenced Monika Michelle Hill, age 36, of Baltimore and Cockeysville, Maryland, to 10 years in prison, followed by five years of supervised release, for two separate fraud schemes, including conspiracy to commit bank fraud and wire fraud, and aggravated identity theft.  Judge Hollander also ordered Hill to pay restitution of $199,318 for the 2015 bank fraud case, and restitution of $105,899.16 in the 2013 wire fraud case. 

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 her plea agreement, between March 2013 and July 2014, Hill, was the leader of a scheme in which the defendants deposited counterfeit checks, drawn on the accounts of identity theft victims, into bank accounts opened by the defendants in the name of shell companies.  The defendants then withdrew the funds before the fraud could be detected.  Hill conspired with co-defendants Alysia Rascoe, Vance McKoy, Mark Peeples, Dorian Griffin and others to open 22 business bank accounts online, using the personal identifying information of identity theft victims.  The bank accounts were funded using forged checks bearing the bank account numbers and forged signatures of other identity theft victims. 

For example, Grant U Pleasure, LLC and Kersey’s Recovery, LLC were registered with the State of Maryland Department of Labor, Licensing and Regulation as businesses on March 12, 2014 and May 19, 2014, respectively.  The businesses each listed an identity theft victim as the managing member/owner, and used that person’s social security number and date of birth to open online bank accounts for the business.  The bank accounts listed the identity theft victim as the sole authorized signer on the account. 

Beginning on March 25, 2014, 31 counterfeit checks totaling $51,490 were deposited into three business banks accounts opened online in the name of Grant U Pleasure. A total of $52,433 was drawn out of those accounts by checks being cashed against funds in the accounts.  All of the deposited counterfeit checks were from an account belonging to identity theft victims. Hill deposited three of the counterfeit checks and Peeples deposited four counterfeit checks into the Grant U Pleasure bank accounts, each bearing the forged signature of a victim account owner.  Once the counterfeit checks were deposited, Hill provided checks to Griffin, Rascoe, Peeples, and others from the Grant U Pleasure accounts.  The checks were made out to them in amounts ranging from $1,500 to $1,800, and bore the forged signature of the purported managing member/owner of Grant U Pleasure. Griffin, Rascoe and Peeples cashed the checks, providing their driver’s licenses, fingerprints and signatures.  They typically kept about $200 of the proceeds for themselves and provided the rest to Hill and others.

Similarly, between June 3 and 5, 2014, eight counterfeit checks totaling $13,810 were deposited into the Kersey’s Recovery bank accounts. Hill deposited four counterfeit checks, including on June 4, 2014, immediately after entering her guilty plea in a separate federal fraud case, and while she was on pretrial release.  Hill then provided McKoy and others checks from the Kersey’s Recovery accounts that were made out to them in amounts ranging from $1,200 to $1,400, and bore the forged signature of the purported managing member/owner of Kersey’s Recovery.  After cashing the checks, McKoy and others received between $150 and $400, and provided the balance to Hill.

The loss to the bank as a result of the scheme was $179,808.76, the amount actually withdrawn.  The intended loss was $233,190.02, the total amount of the counterfeit checks deposited.

Mark Darnell Peeples, age 31, of Baltimore, pleaded guilty to conspiracy to commit bank fraud and to aggravated identity theft; Alysia Samon Rascoe, age 26, of Baltimore pleaded guilty to two counts of conspiracy to commit bank fraud and to aggravated identity theft; Christopher Vance McKoy, age 24, of Baltimore, pleaded guilty to two counts of conspiracy to commit bank fraud; and Dorian Maurice Griffin, age 20, of Baltimore, pleaded guilty to conspiracy to commit bank fraud and to aggravated identity theft.  U.S. District Judge Ellen L. Hollander has scheduled sentencing for McKoy on July 19, 2016 at 10:00 a.m., for Rascoe on July 20, 2016, for Peeples on August 23, 2016, both at 2:30 p.m., and for Griffin on October 21, 2016, at 10:00 a.m.

In the prior case, Hill conspired with Tavares Davon Miller, age 32, of Baltimore.  According to her plea agreement in that case, from September 25 through November 1, 2012, Miller acquired the identifying information of more than 10 victims, and used that information to fabricate driver’s licenses and credit cards in the names of those victims, but using the photograph of co-conspirator Monika Hill (where applicable).  Miller and Hill traveled to motorcycle dealerships and retail stores in Maryland, Delaware, Virginia and Pennsylvania, and used the fraudulent identification documents to purchase motorcycles and other merchandise, or apply for lines of credit at those stores.  Miller and Hill then loaded the motorcycles and merchandise into their vehicle and returned to Maryland.  Miller advertised the motorcycles and merchandise for sale over the internet, retaining the proceeds of the sales and paid Hill a fee for her services.  Miller was previously sentenced to 75 months in prison and ordered to pay restitution of 105,899.66.

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 Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted both cases.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Donta Betts, age 20, of Baltimore, today to 15 years in prison, followed by five years of supervised release, 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. 

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 J. Mosby.   

“Donta Betts engaged in arson, looting, assault and other mayhem during the Baltimore riots,” said U.S. Attorney Rod J. Rosenstein. He threw rocks at the police near Mondawmin Mall; tried to destroy police cars; stole from a pharmacy, a liquor store and a shoe store; and set off a homemade bomb. Ten weeks later, he tried to murder a woman over a $20 drug dispute, then he conspired to get her to sign a false affidavit. We caught him only because police and prosecutors spent many hours reviewing video and audio recordings. It may sound like a story arc from a TV series, but it is real life in Baltimore.”

On April 27, 2015, riots and widespread looting erupted in Baltimore.  Among the affected businesses, the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore was looted and burned. According to his plea agreement, Betts participated in the looting at the CVS. Betts is captured on surveillance video entering the store through its main front entrance and removing merchandise from the store.

By 5:44 p.m., riot participants had placed an assemblage of metal propane cylinders and charcoal briquettes near the main entrance to CVS, between West North Avenue and a line of police officers that had formed across the 2500 block of Pennsylvania Avenue.  In an effort to deter the line of police officers from advancing to stop the looting of the CVS, Betts set fire to a roll of toilet paper and placed it on top of the propane cylinders and charcoal briquettes.  Betts then squirted lighter fluid onto the burning roll of toilet paper atop the incendiary materials. Betts’ face and full body are shown squirting lighter fluid onto the incendiary materials in still photographs, some of which were published by local and national news media. Betts then fled, and at approximately 5:58 p.m., a large flame exploded from the improvised incendiary device, resulting in flying debris of large metal fragments from the propane cylinders and blast effects felt by nearby bystanders.

During the investigation, ATF learned that in addition to making the incendiary device, the scope of Betts’ participation in the April 27th riots included: throwing objects at police in the vicinity of Mondawmin Mall; attempting to tip over MTA and police vehicles while encouraging others to join him; attempting to destroy a police cruiser by placing flammable material in the fuel filler pipe and igniting the material; and stealing from the CVS, a liquor store in Baltimore, and a shoe store at Mondawmin Mall.  Betts’ involvement in the riots is documented in surveillance footage and still photographs.

In an unrelated case, on July 2, 2015, Betts shot and attempted to kill an individual who had previously purchased heroin from him.  According to the plea agreement, Betts expected to be paid $40 for the heroin, but the individual only paid him about $20.  On the morning of July 2, 2015, Betts saw the individual in the driver’s seat of a vehicle with a passenger in southwest Baltimore. Betts approached the vehicle with a gun in his hand and shot at the individual, intending to kill the victim in retaliation for having been cheated in the prior drug transaction.  The victim managed to drive away and was treated at the Shock Trauma Center at University of Maryland Hospital for severe injuries to her left leg. Betts was arrested for the shooting on July 7, 2015 and charged in state court with attempted first degree murder and other offenses, and detained.

On July 18 and July 19, 2015, while he was detained, Betts made calls to a friend. During the call on July 19, which was recorded by the Maryland Department of Public Safety and Correctional Services, Betts provided the name of the shooting victim and asked his friend to relay that information to associates of Betts and to instruct them to obtain a signed affidavit from the victim stating that Betts did not shoot her.  During the same call, Betts admitted that he did shoot the victim. 

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. Trevon Green, age 23, of Baltimore, is charged with malicious destruction of property by fire, for allegedly setting fire to a food store on North Monroe Street.  Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, faces federal charges for obstruction of firefighters during a civil disorder. Darius Raymond Stewart, age 22, of Baltimore, pleaded guilty to malicious destruction of property by fire, arising from the arson of a liquor store. Stewart is scheduled to be sentenced on August 3, 2016.  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, 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 Attorneys Matthew J. Maddox and Sandra Wilkinson, who are prosecuting the case.

Baltimore, Maryland –James Cicala, age 55, of Columbia, Maryland pleaded guilty today to interstate travel with intent to engage in a sexual act with a minor. 

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); 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. During their conversations, Cicala referred to himself as “Daddy.”  Cicala promised to take “Sydney” on a shopping trip and to bring a pair of earrings which “Sydney” had picked out at Cicala’s request. According to the plea agreement, the meeting was initially scheduled for August 1, 2015.  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 with her Aunt and was unable to get away. 

The texting continued and Cicala again made arrangements to meet Sydney on August 15, 2015, in Berlin.  Many 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 the promised earrings, and cell phone batteries for the phone “Sydney” has told him she used.  On August 17, 2015, Cicala was placed on administrative leave by the Department of Justice.

Cicala faces a maximum of 30 years in prison followed by up to lifetime of supervised release for traveling interstate to have sex with a minor.  U.S. District Judge Ellen L. Hollander scheduled sentencing for August 25, 2016, at 10:00 a.m.

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

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

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Cornell Harvey, a/k/a “Little Head,” age 29, of Baltimore, today to 262 months in federal prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.  Harvey’s federal sentence will be served concurrent to the two life sentences he received on state charges for an unrelated murder in Cherry Hill.

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.

“Disputes between rival drug gangs lead to many shootings and murders in Baltimore City,” said U.S. Attorney Rod J. Rosenstein.  “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”  

According to his plea agreement, from at least 2007 to 2013 Harvey was a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.”  UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.

Harvey admitted that as a member of UDH he sold crack cocaine, heroin and other narcotics with UDH members.  In addition to selling drugs, Harvey admitted that on October 5, 2010, he and co-defendant Dominic Evans committed an armed robbery of two individuals who were selling marijuana in the area, but who were not UDH members.  After stealing $150 from one of the victims, Harvey began to shoot at the two individuals.  One of the victims was shot once and survived his wound, but the other victim, who was shot at least three times, died from her wounds.  The murder was captured on CCTV.  A Baltimore City jury acquitted Harvey and Evans of this murder.

Finally, on January 29, 2011, at approximately 1:30 am, Harvey, and other gang members were arrested riding around Cherry Hill in a stolen 1997 green Cadillac Seville.  Upon trying to stop the vehicle, a chase ensued, and all four occupants bailed out in the rear of the 2800 block of Bookert.   Harvey was chased by an officer who saw him toss a fully loaded 9mm .357 handgun.  Officers also recovered from the vehicle: a box containing 39 rounds of .38 special ammunition; a plastic bag containing 33 rounds of 9mm ammunition; a ski mask; and a glove.

According to Harvey’s plea agreement, the green Cadillac Seville was stolen late on January 27, 2011, after the victim was approached by three men as he was filling the vehicle at a gas station at North Avenue and McCulloh Street, in Baltimore City.  After giving the three men a ride, the victim was ordered out of the vehicle at gunpoint in the 1800 block of Eutaw Place, where he was shot and left for dead. 

Throughout the course of Harvey’s involvement in the UDH drug conspiracy Harvey knew that the conspiracy involved between 840 grams and 2.8 kilograms of crack cocaine and between 3 and 10 kilograms of heroin.

Co-defendant Dominic Evans, a/k/a “FlatLine,” age 25, of Baltimore, previously pleaded guilty to his role in the racketeering conspiracy and was sentenced to 30 years in prison.

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 are prosecuting this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Moses Wood Brown, Jr., age 38, of Hillcrest Heights, Maryland, today to 162 months in prison followed by five years of supervised release for possession with intent to distribute cocaine base and possession of a firearm in furtherance of a drug trafficking crime.  Judge Chasanow also ordered Brown to forfeit $42,758, a firearm, ammunition and a bulletproof vest.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Cathy L. Lanier of the Metropolitan Police Department; and Chief Hank Stawinski of the Prince George’s County Police Department.

According to his plea agreement, on four occasions from September 12 to December 18, 2013, Brown provided Cornelius Jackson with a total of 201.9 grams of crack cocaine, commonly referred to as crack cocaine, for which Jackson paid a total of $9,100.

On February 20, 2014, law enforcement executed a search warrant at Brown’s residence and seized three plastic bags containing a total of approximately 881.5 grams of cocaine base; a plastic container of Inositol which is frequently used as a cutting agent for cocaine; $42,758; a bullet proof vest and 150 rounds of .40 caliber ammunition; two plastic bags containing a total of approximately 193.9 grams of powder cocaine; a semiautomatic pistol loaded with fourteen 9 millimeter rounds of ammunition in the magazine and one round in the chamber; and narcotics paraphernalia, including a digital scale, used for the processing and cooking of powder cocaine into crack cocaine.

Brown admitted that he used his residence to manufacture and distribute crack cocaine.

In a separate proceeding, Cornelius Maurice Jackson, a/k/a “Buddy Love” and “Buddy,” age 43, of Washington, D.C., was sentenced to 11 years in prison for conspiring to distribute and possession with intent to distribute cocaine base.  Judge Chasanow also ordered Jackson to forfeit $9,100.

United States Attorney Rod J. Rosenstein commended the DEA, Metropolitan Police Department and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Kelly O. Hayes and Ray D. McKenzie, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Raymond Mykale Goodridge, age 21, of Baldwin, Maryland, today to 210 months in prison, followed by 25 years of supervised release, for production of child pornography in connection with images and videos he made of two minor boys, both engaged in sexually explicit conduct.  Judge Garbis also ordered that upon his release from prison Goodridge 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, Baltimore Field Office; Harford County Sheriff Jeffrey R. Gahler; Chief James W. Johnson of the Baltimore County Police Department; Harford County State’s Attorney Joseph I. Cassilly; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, Goodridge was friends with the mother of a prepubescent boy.   Goodridge spent time alone with the boy, spending the night at the boy’s home in Dundalk, Maryland.  The boy also spent the night at Goodridge’s home. In May 2014, when Goodridge was alone with the boy at the boy’s house, Goodridge used his cell phone to produce four photos which depict the boy partially naked.  The photos focused on the boy’s genitals.

Goodridge was also friends with the mother of a 13 year old boy, who lived in Harford County.  Goodridge and the 13 year old boy spent time together alone.  In May 2014, Goodridge used a camera phone to surreptitiously take a video of the boy, intending to capture images of the boy engaging in sexually explicit conduct.  The video captured the boy changing clothes and in various states of undress, included fully naked, and his genitals. 

In February 2015, law enforcement seized digital devices belonging to Goodridge from his former residence, including a laptop and hard drive, which contained more than 600 images and videos of minors engaged in sexually explicit conduct.  Numerous files portrayed prepubescent children engaged in sex acts with adults.  The hard drive also contained the images and videos Goodridge produced of the two boys.

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, Baltimore County Police Department, and the Harford County and Baltimore County State’s Attorney’s Offices for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

Baltimore, Maryland – A federal grand jury today returned an indictment charging Stanislav “Steven” Yelizarov, age 26, of Pikesville, Maryland, with using, carrying and discharging a firearm during a crime of violence, resulting in death.    

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

According to the indictment, on December 26, 2009, Yelizarov allegedly shot and killed a man during a commercial robbery.

Yelizarov faces a maximum sentence of death or life in prison.  An initial appearance has not yet been scheduled in U.S. District Court in Baltimore. Yelizarov is currently in prison serving a sentence on unrelated state and federal 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 County Police Department and Baltimore City Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.

Greenbelt, Maryland –Jose Antonio Jaramillo, age 54, of Lusby, Maryland, pleaded guilty today in federal court to production of child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) 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 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 engaged in or attempted to engage in, 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. 

As part of his plea agreement, 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).

Jaramillo and the government have agreed that if the Court accepts the plea agreement Jaramillo will be sentenced to between 15 and 19 years in prison, followed by up to a lifetime of supervised release.  U.S. District Judge Paul W. Grimm has scheduled sentencing for September 21, 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 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 are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Jeffrey Carl Franklin, age 29, of Greenbelt, Maryland, today to 102 months in prison, followed by three years of supervised release, for carjacking and being a felon in possession of a gun. 

The sentence 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’s Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; Maryland Attorney General Brian E. Frosh; Chief Alan Goldberg of the Takoma Park Police Department; Chief Ronald A. Pavlik, Jr. of the Metro Transit Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Chief Earl L. Cook of the Alexandria (City) Police Department.

According to his plea agreement, on February 8, 2012, Franklin, David Peebles, and another co-conspirator drove to the Manchester Road area of Silver Spring, Maryland, where they spotted an individual parking a 2008 Infiniti.  As the individual got out of the vehicle, two of the co-conspirators approached the individual.  At gunpoint, the two co-conspirators demanded the keys to the car, took the victim’s keys, and then drove away in the Infiniti. 

On March 2, 2012, law enforcement officers executed a search warrant at Franklin’s residence in Greenbelt, Maryland.  Officers seized a .380 caliber pistol loaded with six rounds of ammunition in Franklin’s bedroom. Franklin knew that he was prohibited from possessing a firearm or ammunition as a result of a previous felony conviction.

David Nathaniel Peebles, age 32, of Washington, D.C., previously pleaded guilty to his role in the conspiracy and was sentenced to eight years in prison for carjacking and being a felon in possession of a gun.  Another member of the conspiracy, Samuel Damien Bynum, age 26, of Washington, D.C., pleaded guilty and was sentenced to 207 months in prison for conspiring to use a gun during carjackings, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition. 

United States Attorney Rod J. Rosenstein commended the FBI; the Prince George’s County, Montgomery County, Takoma Park, Metro Transit, Alexandria and Metropolitan Police Departments; the Prince George’s County and Montgomery County State’s Attorney’s Offices; and the Maryland Attorney General’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and William D. Moomau, and Special Assistant Matthew L. Paeffgen, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Charles Jerome Wiggins, age 26, of Cottage City, Maryland, today to four years in prison followed by three years of supervised release for involuntary manslaughter and reckless driving.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.

 According to trial evidence, on December 12, 2013 at 2 a.m., Wiggins was driving a car on the Baltimore-Washington Parkway.  His wife, Kiana Wiggins, who had turned 34 that day, was in the front passenger seat, and his sister-in-law, Angel Barbour, age 21, was sitting in the back behind her.  His sister-in-law’s boyfriend was also sitting in the back seat.  Wiggins rear-ended a pickup truck that was driving in the same direction.  The truck went into the woods, and Wiggins’s car flipped over and skidded on its roof more than 200 feet.  The two women were killed.  Wiggins was found to have a blood alcohol level of .19%.

United States Attorney Rod J. Rosenstein commended the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Conor Mulroe, of the U.S. Justice Department, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Sergei William Noack, age 23, of West River, Maryland, today to 97 months in prison, followed by 25 years of supervised release, for possession of child pornography. Judge Russell also ordered that upon his release from prison Noack 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, Baltimore Field Office; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.

According to his plea agreement, on May 8, 2015, an Anne Arundel County Police Department investigator received two Cybertips from the National Center for Missing and Exploited Children that had been received from an internet service provider.  The tips involved an individual, later determined to be Noack, who had: uploaded to his computer an image depicting two prepubescent male minors engaging in sexually explicit conduct; and, sent a photo of a prepubescent minor to another individual and stated via chat that he was having sexual contact with the minor.

That same day, a search warrant was executed at Noack’s residence.  Investigators seized his desktop computer, two external hard drives, and his cell phone.  Noack advised law enforcement that he had thousands of images of child pornography on his computer, which he searched for and collected from the internet.  Noack admitted that he likes images and videos depicting bondage.  Noack admitted that he meets people online in websites and chat rooms, then moves to applications that conceal the identity of the user to trade child pornography files with those people.

A preliminary forensic examination of the seized items revealed at least eight videos and 90 images children engaged is sexually explicit conduct on the desktop computer and external hard drive, including numerous files that portray sadistic or masochistic conduct or other depictions of violence. One of the videos was surreptitiously recorded by Noack and depicted a minor prepubescent male using the bathroom in Noack’s home. Noack also stated that approximately two to three years earlier he was alone with a prepubescent minor who was visiting his home and that he touched the back and stomach of the prepubescent minor.  The minor was interviewed in 2015 and stated that Noack would give him a cookie to take off his shirt and then touched him on his bare chest and stomach.  The minor stated that Noack attempted to put his hands under the minor’s pants, towards his genitals, but the minor moved away.  In 2012, Noack sent frequent text messages to the minor, often declaring his love for the minor.

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, Anne Arundel County Police Department and Anne Arundel County Police Department for their work in the investigation and recognized Anne Arundel County Assistant State’s Attorney Anastasia Prigge, who handled the state prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the federal case.

Greenbelt, Maryland –U.S. District Judge Roger W. Titus sentenced Charles W. Parker, Jr., age 49, of College Park, Maryland, today to 97 months in prison, followed by three years of supervised release, for conspiring to file false federal income tax returns and six counts of filing false tax returns. A federal jury convicted Parker on November 10, 2015.  Judge Titus also entered an order requiring Parker to forfeit and pay restitution of $2,007,568.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Caroline D. Ciraolo, of the Justice Department’s Tax Division; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office.

According to evidence presented during the five day trial, from March to June 2009, Parker recruited clients for co-conspirator Penny Jones.  Jones, a resident of Idaho, was a tax return preparer who prepared tax returns falsely reporting the amount of taxes withheld and purportedly paid to the IRS.  Parker collected financial information from clients and provided the information to Jones for the preparation of the false tax returns. Parker paid Jones to prepare false tax returns for Parker and others.  Parker mailed the false tax returns to the IRS for tax years 2005 to 2008, claiming large tax refunds to which the taxpayers were not entitled. In a six month period, Parker caused the filing of 14 false tax returns that fraudulently claimed $7,753,940 in tax refunds.

Parker and his co-conspirators caused the IRS to issue two fraudulent tax refunds totaling $2,007,568. In 2013, Jones was sentenced to 12 years in prison for her role in a scheme to help individuals obtain fraudulent tax refunds from the IRS.

United States Attorney Rod J. Rosenstein praised the Tax Division and IRS-Criminal Investigation for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who prosecuted the case.

Baltimore, Maryland – Tavon Slowe, age 24, of Baltimore, Maryland, pleaded guilty today to charges arising from two murder for hire contracts. 

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

According to his plea agreement, in March of 2012, a fight occurred near West Paterson Park Avenue and Chase Street.  One of the participants was Gregory Parker.  A few days later, an individual was given a “contract” to kill Gregory Parker.  The individual arranged with Slowe to kill Gregory Parker for $5,000.

On March 16, 2012, the individual called Slowe on a cell phone and the two met in person, along with another person.  The individual told Slowe where the victim could be found and that the victim was wearing a blue floppy hat.  The two agreed that Slowe was to use his own gun, but that the individual would replace it after Parker had been killed.

Within about an hour after the meeting, Gregory Parker was shot multiple times with a .9mm semi-automatic pistol on East Chase Street in Baltimore City.  Fourteen shell casings were found at the scene.  Parker was wearing a blue floppy hat.  Video surveillance depicts the shooter running from the murder scene and getting into a car driven by Slowe.

In March 2013, at the direction of the FBI, the individual called Slowe from a jail phone and told Slowe that he had been sentenced to a lengthy incarceration period after being set up by a person he had known since he was four years old. Slowe agreed to commit a murder for money.  Slowe requested two guns to commit the murder. The individual told Slowe that another person would meet with Slowe to provide the money and guns.

On April 26, 2013, at the FBI’s direction, an undercover officer met with Slowe, and Slowe agreed to meet her again at a later date to receive the handguns and money.  Slowe was upset that he was not getting the handguns that day and would only be paid $3,000 up front, arguing that it is usually $5,000.

On April 29th, the individual spoke with Slowe and worked out details concerning the murder for hire.  Slowe stated that if the intended victim was not alone, Slowe would kill the other person as well.  Slowe also expressed concerns over the undercover officer because he did not know her.

On April 30, an arrest operation was planned in which the undercover officer was going to meet with Slowe and provide him the guns that he requested for the murder-for-hire. Slowe did not show up for this meeting. 

On August 8, 2013 Baltimore Police arrested Slowe on drug and gun charges, and Slowe was detained.

On February 4, 2014, at the direction of the FBI, the individual called Slowe’s half-brother to hire him for the same murder.  The individual had previously used the brother, in addition to Slowe, for murder-for-hire contracts in Baltimore.  The brother accepted this contract from the individual.  Later that same day, the brother received a recorded jail call from Slowe in which the brother explained that he received a call from the individual and that he was going to meet the individual’s girl that day.  Slowe cautioned his brother about the possibility of the “girl” being a police officer or “one of them.”  Additionally, Slowe admitted to taking the contract to kill, but that he did not show up on April 30, 2013 because he believed the “girl” was a police officer.

Slowe and the government have agreed that if the Court accepts the plea agreement, Slowe will be sentenced to 10 years in prison for the use of interstate commerce to facilitate the commission of a murder for hire, which will be served concurrently to a sentence of between 23 and 27 years in prison for conspiracy to use interstate commerce to facilitate the commission of a murder for hire that resulted in death.  Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for August 10, 2016 at 9:30 a.m.

Co-defendant Davon Sanford, a/k/a “Chronic,” age 33, of Baltimore, was indicted on the same charges.  His initial appearance and arraignment are scheduled for July 1, 2016. 

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 James K. Bredar sentenced Timothy Emeigh, age 52, of York Springs, Pennsylvania today to four years in prison, followed by one year of supervised release, for health care fraud arising from a scheme in which insurance providers and Medicare were fraudulently billed for tests interpreted by unlicensed personnel, and for tests and services which in fact had not been provided.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.

According to his plea agreement, Emeigh was a licensed x-ray technologist in Maryland. Emeigh was not a licensed physician.  Emeigh worked at Alpha Diagnostics Services beginning in 1993 as an x-ray technologist.  In 1997, he was named vice president of the company’s operations by Rafael Chikvashvili, the CEO and owner of Alpha Diagnostics.

Alpha Diagnostics was principally a portable x-ray supplier in Maryland, Delaware, Pennsylvania and Virginia.  However, Alpha Diagnostics also supplied or provided portable ultrasound tests, electrocardiograms (“EKGs”), echocardiograms and Holter monitors. The majority of its clients were nursing homes, whose patients Alpha Diagnostics tested. Alpha Diagnostics was headquartered in Owings Mills, Maryland with an office in Harrisburg, Pennsylvania.  Alpha Diagnostics was enrolled in the Medicare program. Medicare required that a licensed physician order and interpret the x-ray or other test, and render a formal report.

Nonetheless, in 1997, at Chikvashvili’s request, Emeigh began performing x-ray interpretations in lieu of a licensed physician or radiologist, and producing fraudulent reports using the names of actual physicians who had never seen the x-rays in question.  In 2003, as technology improved, Emeigh began interpreting medical tests and writing reports in the name of registered licensed physicians from his home using his home computer.  In addition to x-rays, Emeigh began interpreting and drafting fraudulent reports for ultrasounds and EKGs from his home, while traveling out of state, and at times, from overseas.  Sometimes Emeigh performed medical interpretations and transmitted x-ray images using a cell phone application. Emeigh maintained steady communication with Chikvashvili regarding the interpretation reports that he created from remote locations.

By 2010, Emeigh performed more than 70% of the x-ray interpretations, masquerading as a licensed radiologist or physician.  On an average month, more than 1,000 x-ray interpretations were conducted by Alpha Diagnostics in Maryland alone.  

Emeigh suggested to Chikvashvili that he transmit particularly difficult medical interpretations to actual licensed physicians. If a patient caregiver contacted Alpha Diagnostics to question any of the medical interpretation reports generated by Emeigh or other unlicensed Alpha Diagnostics personnel, Emeigh and Chikvashvili reassigned the diagnostic interpretation to an actual licensed physician for a second interpretation, who was not apprised of the first interpretation and conclusion.

Alpha Diagnostics would bill insurance providers for 2-view chest x-rays even where single-view x-rays had been ordered or performed.  Alpha Diagnostics routinely submitted insurance payment claims which exaggerated the number of anatomical views performed by its x-ray and ultrasound technologists; and for multiple transportation charges on occasions when multiple patients had been examined at the same facility. Alpha Diagnostics would routinely bill Medicare for “global” x-ray procedures (i.e., both professional and technical components), along with transportation and setup charges, for studies interpreted "in-house" by Emeigh or other unlicensed Alpha Diagnostics personnel.

From January 2007 through October 2012, the financial loss to Medicare alone for the misconduct described above was more than $2.5 million.

The owner of Alpha Diagnostics, Rafael Chikvashvili, age 69, of Baltimore, Maryland, was sentenced on June 15, 2016, to 10 years in prison, followed by two years of supervised release, for charges related to a health care fraud and wire fraud conspiracy resulting in the deaths of patients, as well as false statements and aggravated identity theft, related to a scheme to defraud Medicare and Medicaid of more than $6 million. Chikvashvili was convicted by a federal jury on February 17, 2016.

United States Attorney Rod J. Rosenstein praised the HHS- Office of Inspector General and FBI for their work in the investigation, and thanked Assistant U.S. Attorneys Leo J. Wise and P. Michael Cunningham, who prosecuted the case.

Baltimore, Maryland – Howard County gymnastics coach Paul Daniel Bollinger, age 56, of Windsor Mill, Maryland was charged by federal complaint today with possessing and distributing child pornography.

The complaint 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; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Baltimore County State’s Attorney Scott Shellenberger.

According to the affidavit supporting the complaint, on May 15, 2016, an undercover Baltimore County Police detective downloaded from the internet at least 10 movie files from Bollinger’s IP address that contained child pornography.

On May 25, 2016, investigators executed a state search warrant at Bollinger’s residence and seized a desktop computer, hard drives and other digital media which contained at least 47,130 images and videos of child pornography, child modeling and child erotica.  Next to Bollinger’s bed, detectives found over 100 pages of handwritten stories about “P” having sex with young children.

Bollinger was present during the execution of the search warrant and advised that he is a youth gymnastics coach and for over 30 years has coached hundreds of children.  Throughout the residence were pictures of young girls in gymnastics leotards.

Bollinger faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison for possessing child pornography; and a maximum sentence of 20 years in prison for distributing child pornography. An initial appearance is scheduled for today at 1:30 p.m. before U.S. Magistrate Judge Stephanie A. Gallagher in U.S. District Court in Baltimore.

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

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

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

Baltimore, Maryland – Marcell Greene, age 28, of Wyandanch, New York, pleaded guilty today to conspiracy to commit sex trafficking of a minor and to sex trafficking of a minor.

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); Harford County Sheriff Jeffrey R. Gahler; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and the Maryland Department of Human Resources, Child Protective Services.

According to his plea agreement, from about February 2015 through April 12, 2015, Greene and a co-defendant advertised a 16 year old female on computer websites for commercial sex acts and transported her from New York to hotels in Virginia and Maryland to engage in commercial sex acts.  On April 12, 2015, the victim called 911 from a hotel in Bel Air, Maryland. The victim told responding members of the Harford County Sheriff’s Office and the Department of Social Services that Greene and another man had taken her from New York to Virginia and Maryland to engage in commercial sex acts.  The victim advised that on April 12, 2015, the day she called 911, she had something thrown at her because she refused to perform a specific sex act.  Law enforcement and a child protective services worker saw swelling and bruising to the victim’s right cheek and right temple.

The investigation revealed that Greene registered and paid for hotel rooms in several locations where the victim performed commercial sex acts.  Witnesses identified Greene as being in the area where the victim was engaging in commercial sex acts, and investigators uncovered texts between Greene and the co-defendant discussing commercial sex.

As part of his plea agreement, Greene 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).

Greene faces a minimum mandatory sentence of 10 years in prison and a maximum of life in prison for sex trafficking of a minor, and up to life in prison for the conspiracy, each followed by up to lifetime of supervised release.  U.S. District Judge James K. Bredar has scheduled sentencing for October 14, 2016 at 3:00 p.m.

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, Maryland State Police, and Maryland Department of Human Resources, Child Protective Services, for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Duaco, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Samuel R. VanSickle, age 52, of Accident, Maryland today to two years in prison followed by five years of supervised release for conspiring to commit bank fraud arising from three fraudulent bank loans in which VanSickle received proceeds from the sale of real property in Garrett County, Maryland, and Cheat Lake, West Virginia, totaling over $5.7 million. Judge Garbis also ordered VanSickle to forfeit and pay restitution of $2,755,102.50, and forfeit his interest in 40 properties held in his name or in the names of others that are located in Maryland, West Virginia and Pennsylvania, up to the value of $2,755,102.50.

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

VanSickle and co-defendant Louis Strosnider owned and developed property in Garrett County, Maryland. Strosnider operated Stony Brook Development Company, located in McHenry, Maryland,

According to his plea agreement, from December 2001 to May 2005, Strosnider fraudulently obtained real estate loans from banks to buy properties controlled, through aliases, by VanSickle.  VanSickle concealed from the lenders his role as seller of the properties and recipient of the sales proceeds through fictitious identities such as “Donald Blunt, Trustee for Gospel Church,” “Donald Blunt, Trustee for Freedom Church,” “Equity Exchange,” “Unity Mortgage,” “Jacob Aiken” and “Allen Helms.” The scheme also involved fictitious down payments, inflated collateral, and false contracts. 

For example, in 2002, VanSickle provided $600,000 for the purchase of Red Run, a restaurant and bed and breakfast which bordered on Deep Creek Lake in Garrett County, Maryland.  In April 2003, VanSickle caused Red Run to be transferred for $0 to “Donald Blunt, Trustee for Gospel Church” - a fictitious church with a fictitious trustee.  In February 2004, Strosnider signed a contract to buy Red Run from Gospel Church for $3 million.  The contract recited a fictitious $750,000 down payment.  Strosnider applied to a bank for a loan to complete the purchase of Red Run.  When the bank required additional collateral, VanSickle supplied a timber contract for land in Garrett County with a valuation signed by “Paul Walsh” of “Noble Forest Consultants.”  Both “Noble Forest Consultants” and “Paul Walsh” were fictitious.  The settlement for the sale of the property was conducted by attorney Angela Blythe.  Blythe failed to collect Strosnider’s funds to close the loan.  At VanSickle’s direction, Blythe paid over the sales proceeds of $1.6 million to “Unity Mortgage,” which was VanSickle.  “Unity Mortgage” did not, in fact, have a mortgage on Red Run.

VanSickle and Strosnider used similar fraudulent methods in Strosnider’s purchase from VanSickle of 5.87 acres on State Park Road, bordering Deep Creek Lake, and 116 acres of undeveloped land on Cheat Lake, West Virginia.

VanSickle received over $5.7 million in sales proceeds from the fraudulent transactions.   Strosnider defaulted on all three loans. As a result of the scheme, the loss to the financial institutions was $2,755,102.50, the amount of the loans minus the recovery from foreclosure and sale of the collateral.

Louis W. Strosnider, III, age 50, of Oakland, Maryland, previously pleaded guilty to his participation in the conspiracy and awaits sentencing. In a related case, Angela M. Blythe, age 52, of Oakland, Maryland, was convicted by a federal jury on October 9, 2015, after a nine day trial, of conspiring with VanSickle to commit bank fraud, bank fraud, and two counts of making a false statement to a bank.  U.S. District Judge William D. Quarles sentenced Blythe to a year and a day in prison, and entered an order requiring Blythe to forfeit $696,517 and pay restitution of $948,203.25.

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 praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Joyce K. McDonald and Philip A. Selden, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Jarrod Terrell Hazelton, age 33, of Parkville, Maryland, a former employee at the Quarantine Road Landfill (Landfill), today to two years in prison followed by three years of supervised release for conspiracy and wire fraud in connection with a scheme to unlawfully sell scrap metal from the Landfill and the Northwest Transfer Station, while falsely representing to the Baltimore Department of Public Works (DPW) that he was performing his job; and for filing a false tax return.  Judge Garbis also ordered Hazelton to pay restitution of $400,000.

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.

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 his plea agreement, from 2005 until May 2015, Hazelton, who was employed by DPW at the Landfill, and other DPW employees, including Michael Bennett and supervisor William Nemec, unlawfully collected and sold scrap metal for personal gain during work hours, while representing to DPW that they were doing the jobs for which they were being paid.  Hazelton was a leader in the scheme and coordinated the daily collection of scrap metal at the Landfill. 

Hazelton and other employees used part of the sale proceeds of the stolen scrap metal to pay other DPW employees for their help in locating, setting aside, collecting and loading the scrap metal onto their trucks.  Hazelton, Bennett and other employees at the Landfill used their personal cell phones to communicate when and where recyclable scrap metals were being dumped at the Landfill, and to coordinate their arrival at the private salvage yard.  Hazelton, Bennett and others uses their personal pickup trucks to transport the scrap metal to a private salvage company, frequently making multiple trips during a single, eight-hour work shift.

The sale of the stolen scrap metal resulted in a loss of revenue to the City of at least $400,000. 

In order to conceal the junking scheme, Hazelton and Bennett paid cash to Nemec and other supervisors to not report them for collecting and transporting the stolen scrap metal, and to authorize and submit false time and attendance records.  Hazelton prepared and submitted false time and attendance records which falsely claimed he had been working, when in fact, he was instead illegally collecting and selling the scrap metal, resulting in wages being paid to Hazelton for work he did not perform.

In addition, for tax years 2011 through 2015, Hazelton failed to report approximately $476,703 of income received from the illegal junking scheme.  For example, for tax year 2013, Hazelton reported $14,009 in total income to the IRS on his individual tax return, when Hazelton knew that he received $126, 293 of additional income that year from the illegal junking scheme.

Former DPW employees Tamara Oliver Washington, age 55, William Charles Nemec, Sr., age 56; and Michael Theodore Bennett, age 47, all of Baltimore, previously pleaded guilty to their roles in the schemes.  Nemec was sentenced to 78 months in prison, and Bennett to 46 months in prison.  Judge Garbis also ordered Bennett to pay restitution of $400,000.  Washington is scheduled to be sentenced on August 12, 2016, at 11:30 a.m.

Five other commercial trash haulers have also pleaded guilty and a sixth commercial trash hauler has been convicted by a federal jury, in connection with their participation in a scheme.  Four of these trash haulers have been sentenced: 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, to three years of probation, with the first year to be spent in community confinement; Adam Williams, Jr., age 53, of Randallstown, 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.

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.

Greenbelt, Maryland – U.S. Postal Service employee Doreen Allen, age 51, of Temple Hills, Maryland, pleaded guilty today to theft of government property arising from a scheme to fraudulently obtain over $25,000 in worker’s compensation benefits.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General;and Special Agent in Charge Robin Blake, of the Washington Regional Office, U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.

According to her plea agreement, Allen was employed by the United States Postal Service as a city carrier at the Capital Heights, Maryland, Processing and Distribution Facility.  On September 27, 2002, Allen filed an injury claim which qualified her for Worker’s Compensation.  Allen began receiving benefits in November 2002 from the Office of Worker’s Compensation Programs (OWCP), including reimbursement for travel expenses for medical treatment related to her injury.

Between July 2012 and September 2015, Allen received reimbursement for travel expenses for medical care related to one of her injury claims.  This compensation was based on vouchers that Allen submitted for 721 trips to receive medical care.  Allen admitted that approximately 27 of those trips were for medical care, while the remaining 694 were unrelated.  Allen submitted numerous forms to OWCP falsely certifying that she had driven round trip from her home in Temple Hills to a doctor’s office in Laurel, Maryland for medical treatment related to her injury. As a result, Allen fraudulently received $27,639.10 in travel reimbursements.

Allen faces a maximum sentence of 10 years in prison.  U.S. District Judge Paula Xinis scheduled Allen’s sentencing for September 13, 2016, at 9:30 a.m.

United States Attorney Rod J. Rosenstein commended the U.S. Postal Service, Office of Inspector General and U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Hollis R. Weisman, who is prosecuting the case.

Baltimore, Maryland – U. S. District Judge James K. Bredar sentenced the owner of Alpha Diagnostics, Rafael Chikvashvili, age 69, of Baltimore, Maryland, today to 10 years in prison, followed by two years of supervised release, for charges related to a health care fraud and wire fraud conspiracy resulting in the deaths of patients, as well as false statements and aggravated identity theft, related to a scheme to defraud Medicare and Medicaid of more than $6 million. Judge Bredar also ordered that Chikvashvili pay restitution and forfeit proceeds of the fraud, with the exact amount to be determined at a later date. Chikvashvili has been detained since his conviction by a federal jury on February 17, 2016.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.           

“The evidence showed that Rafael Chikvashvili failed to provide medical services to patients who needed them, and billed for services that he did not provide,” said U.S. Attorney Rod J. Rosenstein. “The jury found that two patients died because their X-rays were not reviewed by a qualified radiologist. Health care fraud has consequences, in money wasted and lives lost.”

According to the evidence presented at the two-and-a-half week trial, Chikvashvili formed Alpha Diagnostics Services, Inc., which later became Alpha Diagnostics, LLC, in 1993, and was the Managing Member, Authorized Official, Managing Employee, President and Chief Executive Officer for Alpha Diagnostics. Chikvashvili holds a PhD in mathematics, but was never a medical doctor or licensed physician. Timothy Emeigh was the Vice President in charge of Operations at Alpha Diagnostics and was a licensed radiologic technologist.

Alpha Diagnostics was a portable diagnostic services provider, principally of X-rays, but also provided ultrasound tests, and cardiologic examinations.  Alpha Diagnostics’ clients included nursing homes whose patients were covered by Medicare and Medicaid. Alpha Diagnostics operated in Maryland, Delaware, Pennsylvania, Virginia and the District of Columbia, but was headquartered in Owings Mills, Maryland, where Chikvashvili worked full time.

Based on the evidence, the jury found that from 1997 through October 2013, Chikvashvili conspired with others to defraud Medicare and Medicaid by: creating false radiology, ultrasound and cardiologic interpretation reports; by submitting insurance claims for medical examination interpretations that were never completed by licensed physicians; by falsely representing to Medicare and Medicaid, as well as to treating physicians, that the interpretations had, in fact, been completed by actual licensed physicians; by submitting insurance claims for radiology, ultrasound and cardiologic examinations (and their associated costs) that were never performed and/or were not ordered by the treating physician; and by submitting claims for transportation and other charges that Alpha Diagnostics was not entitled to receive.

According to witness testimony, Chikvashvili instructed his non-physician employees, including Emeigh, to interpret X-rays, ultrasounds and cardiologic examinations instead of licensed radiologists. For example, in June 2012, Emeigh traveled to Jamaica for a vacation.  The evidence showed that Chikvashvili directed Emeigh, through text messages and telephone calls, to view medical images using his personal laptop in his hotel room and then draft false physician interpretation reports.  Alpha Diagnostics personnel subsequently submitted false claims to Medicare for these images and fraudulent physician reports.

The evidence showed that Chikvashvili also caused employees to draft licensed physician’s examination reports.  Chikvashvili, in turn, caused a copy of the handwritten signature of the actual physician to be affixed to the report, or forged the physician’s signature himself, creating the appearance that a licensed physician had performed the medical interpretation.

According to the testimony provided at trial, two patients died because their X-rays were not interpreted by a qualified radiologist.  Instead, non-physician Alpha Diagnostics employees reviewed the images and failed to detect congestive heart failure. As a result of the incorrect reading the her chest X-ray, the first patient with congestive heart failure was not transferred to an acute care facility for treatment, as is standard medical practice, but remained in a rehabilitative nursing home. The patient died four days after unqualified Alpha Diagnostics personnel misinterpreted her chest X-ray.  Witnesses testified that had the patient been transferred, her symptoms could have been addressed. The second patient was scheduled to undergo elective surgery and the chest X-ray was a pre-operation test to determine if the patient could safely have surgery.  According to the evidence presented at trial, although the patient’s X-ray revealed mild congestive heart failure, the non-physician Alpha Diagnostics employee failed to detect it.  A patient in congestive heart failure is at an increased risk of bleeding during and after surgery. As a result of the incorrect reading of the chest X-ray, the patient was cleared for elective surgery and experienced significant bleeding after the elective surgery, and the worsening of her congestive heart failure.  Six days after unqualified Alpha Diagnostics personnel misinterpreted her chest X-ray, the patient died. 

Subsequently, Alpha Diagnostics submitted claims to Medicare falsely representing that licensed radiologists had interpreted both patients’ chest X-rays.  Medicare paid Alpha Diagnostics $8.87 for the first claim and $218.36 for the second claim. 

The evidence showed that over the course of the conspiracy, Chikvashvili and Alpha Diagnostics received more than $6 million from fraudulent claims submitted to Medicare and Medicaid.

Timothy Emeigh, age 51, of York Springs, Pennsylvania previously pleaded guilty to health care fraud and is scheduled to be sentenced on June 17, 2016.

United States Attorney Rod J. Rosenstein praised the HHS-OIG and the FBI for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and P. Michael Cunningham, who prosecuted the case.

Greenbelt, Maryland – Donnell Calloway, age 30, of Washington, D.C., pleaded guilty today to robbery conspiracy, and possession of a firearm by a convicted felon.

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

 According to his plea agreement, on January 22, 2014, Calloway, Gregory Evans, and another co-conspirator robbed a liquor store in District Heights, Maryland.  After entering the store, Calloway stood by the door with a silver .45 caliber handgun. Evans jumped the counter and pointed a black handgun at store employees, demanding that they lay on the ground, while the third co-conspirator took money from the cash register.  Evans pointed his gun at an employee who opened the cash register, and Evans took money from that and another register.  Calloway, Evans, and their co-conspirator left the store with the money and escaped in a van.  A witness followed the van and reported a partial tag number to police.

The van was located by law enforcement in Prince George’s County where it was followed until it came to a stop in Washington D.C.  Responding officers saw the occupants exit the van and run away.  Officers apprehended Calloway and Evans after a foot chase. After his arrest, a search of Calloway recovered 45 small ziplock bags containing crack cocaine, which Calloway admitted he intended to distribute.  Officers also recovered the gun Calloway used during the robbery, a .45 caliber handgun with an obliterated serial number.  Calloway had a previous felony drug conviction and was therefore prohibited from possessing a firearm.

Calloway faces a maximum sentence of 30 years in prison.  U.S. District Judge Deborah K. Chasanow has scheduled sentencing for August 15, 2016 at 3:15 p.m.

Gregory Evans, age 30, of Washington D.C., previously pleaded guilty to his role in the robbery and was sentenced to 114 months in prison. 

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

Baltimore, Maryland – A federal grand jury indicted Dontae Small, age 42, an inmate at the Baltimore City Detention Center (BCDC) and Kimberly Duckfield, a/k/a “Sincere,” age 29, of Hagerstown, Maryland on charges arising from a scheme to defraud a financial institution through credit card fraud.

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 Commissioner Kevin Davis of the Baltimore Police Department.

According to the two count indictment, while an inmate at BCDC, Small unlawfully obtained and recorded the name and credit card number of the wife of a correctional officer at the BCDC.  Small then provided this information to Duckfield.  From January 4, 2016 to January 19, 2016, Duckfield used the credit card number to pay her telephone bill and buy goods and services.

Both defendants face a maximum sentence of 30 years in prison for bank fraud; and a mandatory minimum of two years in prison for aggravated identity theft consecutive to any other sentence.  Duckfield had her initial appearance last Friday and has been detained.  An initial appearance has not yet been scheduled for Small.

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.

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 and Baltimore City Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who is prosecuting the case.

Greenbelt, Maryland – Gary Alphonso Robinson, age 27, of Capitol Heights, Maryland, pleaded guilty today to the theft of eight firearms and possession of ammunition by a convicted felon.

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; Queen Anne’s County Sheriff Gary Hofmann; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Chief Hank Stawinski of the Prince George’s County Police Department.

According to his plea agreement, on July 27, 2015, Robinson robbed a federally licensed firearms dealer in Stevensville, Maryland.  Robinson entered the store by breaking a glass window and squeezing through the security bars.  Robinson smashed a display case and took a 9mm semi-automatic handgun, a .45 caliber semi-automatic handgun, a .44 caliber revolver, a .38 caliber revolver, and three .357 caliber revolvers.  He placed the guns in a bag, which he handed to a co-conspirator through the broken window.  A security video recorded Robinson’s actions and the DNA profile of blood recovered from the scene matched Robinson’s, as did a partial palm-print found on a piece of the broken glass.          

On September 17, 2015, a search warrant was executed at Robinson’s residence.  Law enforcement recovered 43 rounds of 9mm ammunition hidden in a shoe in Robinson’s bedroom closet. Robinson had a previous felony conviction and was prohibited from possessing firearms or ammunition.

Robinson faces a maximum sentence of 10 years in prison for each of the two counts: theft of firearms; and possession of ammunition by a convicted felon.  U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 12, 2016 at 12:30 p.m.

United States Attorney Rod J. Rosenstein commended the FBI, Queen Anne’s County Sheriff’s Office, Maryland State Police, and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Joseph R. Baldwin and Deborah A. Johnston, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Barbara Murphy, age 52, of Rocky Mount, North Carolina, today to 10 months in prison followed by three years of supervised release for bribing a contracting officer with the U.S. Postal Service in exchange for favorable treatment in connection with the awarding of contracts to deliver mail.  Judge Hazel ordered Murphy to begin serving her sentence today, and to forfeit $17,920.31.

The sentence 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; and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General.

According to a factual stipulation filed with the court, Murphy was the sole owner of ER&R Transportation and MC&G Trucking LLC, which she used to bid for and perform on transportation contracts with the U.S. Postal Service.  Murphy admitted that from January 2011 to July 2012, she bribed Gregory Cooper, a U.S. Postal Service contracting officer representative.  These bribes included cash paid directly into Cooper’s bank accounts, automobile loan payments, college tuition for Cooper’s daughter, five cell phone bill payments, an airline ticket and fitness equipment.

Murphy admitted that she provided these benefits in exchange for Cooper’s favorable treatment of her companies on U.S. Postal Service contracts.  Specifically, Cooper recommended to his superiors that 10 contracts on which Murphy bid be awarded to Murphy’s companies.  Additionally, Murphy admitted that Cooper provided her with advice on how to address specific issues that arose from her contract performance and drafted documents that Murphy provided to the U.S. Postal Service.

Gregory Cooper, age 60, of Glenn Dale, Maryland, previously pleaded guilty to his participation in the bribe scheme and was sentenced to 15 months in prison. Judge Hazel also ordered Cooper to forfeit $25,931.76.

U.S. Attorney Rosenstein and Assistant Attorney General Caldwell commended the U.S. Postal Service Office of the Inspector General for its work in the investigation.  The case was prosecuted by Assistant U.S. Attorney David I. Salem and Trial Attorneys Mark Cipolletti and Monique Abrishami of the Criminal Division’s Public Integrity Section.

Greenbelt, Maryland – Steven Edward Baker, age 41, of Kensington, Maryland, pleaded guilty today to producing child pornography.

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

 According to his plea agreement, on July 8, 2015, FBI agents interviewed Baker at his business, Action Signs, located in Vienna, Virginia.  Baker admitted that he had child pornography on both his work and home computers, and that he had been downloading child pornography for approximately 10 years.  He estimated that his child pornography collection was approximately one terabyte in size.

Further investigation of digital media items obtained from Action Signs and Baker’s residence revealed 45 images and seven videos of a girl under the age of 12, all constituting child pornography, and produced by Baker.  Baker produced the images and videos, including pictures taken at a park and what appears to be Baker’s home, from January 2008 to July 2013, using two cameras.  The images included close ups of the victim in various states of undress, including numerous close-ups of the victim’s genitalia, and showing Baker touching areas in and around her genitalia.

Additionally, over 50,000 images and 1,000 videos of child pornography were found on the digital media which were not produced by Baker, but were downloaded from the internet.  These images and videos depict real, prepubescent children engaged in sexually explicit conduct.

As part of his plea agreement, Baker 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).

Baker and the government have agreed that if the Court accepts the plea agreement, Baker faces between 15 and 24 years in prison followed by a lifetime of supervised release and a $250,000 fine.  U.S. District Judge Paul W. Grimm has scheduled sentencing for October 14, 2016 at 9:00 a.m.

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

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

Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Steven Jackson, a/k/a Cutty, age 25; and Alonzo Clea, a/k/a Zo, age 26, both of Baltimore, to 25 years in prison, and 10 years in prison, respectively, both followed by five years of supervised release, for conspiring to participate in a racketeering enterprise in connection with their gang activities as members of the “Up the Hill,” “Up da Hill” and “UDH” ( UDH) organization, which operates in the Cherry Hill section of Baltimore.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl 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.

“Many shootings and murders in Baltimore City involve disputes between rival gangs,” said U.S. Attorney Rod J. Rosenstein.  “Police and prosecutors are saving lives by holding accountable the criminals who turned Cherry Hill into a war zone.”  

According to their plea agreements, from at least 1997 to 2013, the UDH organization operated in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.”  UDH members have been in a violent dispute with both the “Coppin Court” and “Little Spelman,” which are organizations 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; the June 13, 2009 non-fatal shooting of Tavon Staley; and the August 9, 2009 murder of Charles Pratt.

Jackson admitted that on October 3, 2006, he shot a rival gang member in the 600 block of Cherry Hill Road; on August 8, 2007, he committed an armed robbery in the 800 block of W. Patapsco Avenue; and on January 22, 2011 he and another individual shot and killed rival Little Spelman gang member Harry Hicks, all in Baltimore.

Clea admitted that he possessed a firearm on November 10, 2008 near the 600 block of E. Patapsco; September 15, 2009 near the 5000 block of E. Monument; and July 19, 2014 near the 2800 block of Spelman Road, all in Baltimore.

To date, a total of 35 Cherry Hill gang members have pleaded guilty to their participation in the racketeering conspiracy.  Little Spelman gang member Davon Martin, age 26, admitted to drug dealing and the murders of two UDH gang members and was sentenced to 35 years in prison.  UDH member Dominic Evans, a/k/a “FlatLine,” age 25, admitted to drug dealing, two stabbings and to his participation in a murder, and was sentenced to 30 years in prison.

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 J. Frederick Motz sentenced Noel Erik Anshel, age 49, of Owings Mills, Maryland today to 46 months in prison followed by three years of supervised release for transporting stolen goods. Judge Motz also ordered Anshel to forfeit $551,000, including funds held in four PayPal accounts and six bank accounts, six properties in Baltimore purchased with proceeds from the scheme, and property seized from his pawn shop.

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; Chief Gary Gardner of the Howard County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.

According to his plea agreement, from January 1, 2010 to January 1, 2014, Anshel was part owner of Hilltop Cellular, a pawn shop located in the 5400 block of Reisterstown Road in Baltimore.  Anshel became the sole owner and manager of the shop from January 1, 2014 to August 12, 2015.

From at least January 1, 2010 to August 12, 2015, Anshel paid cash to more than five shoplifters in exchange for products stolen from retailers, including construction tools, pressure washers, kitchen appliances, electrical generators and consumer electronics.  The products were frequently new and still in the original box.  The shoplifters brought the stolen items to Hilltop Cellular, where Anshel purchased them for far less than the products’ retail value.  Anshel paid at least three of his “regular” shoplifters over $40,000 each for stolen products.

Anshel had a license to resell “second-hand” merchandise at Hillside Cellular, but would list the stolen items on eBay as new. 

In April 2014, Howard County Police officers followed an individual from a Home Depot store where the individual had stolen several items, to Hilltop Cellular where the individual sold the items to Anshel.  Investigators then entered the pawn shop and seized the stolen items. At that time, Anshel stated that, “90% of what I buy is stolen,” and “it’s the cost of doing business.”

Law enforcement subsequently executed a search warrant at Hilltop Cellular and seized a large amount of stolen property worth approximately $20,000.

The total estimated loss from the scheme is approximately $551,000.  Anshel used the proceeds of the scheme to purchase, among other things, six houses in Baltimore.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael P. Strange, age 56, formerly of Catonsville, Maryland, now of Greenville, South Carolina, today to 70 months in prison followed by 25 years of supervised release for distributing child pornography.  Judge Hollander ordered that upon his release from prison, Strange 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, in April 2015, a Maryland State Police investigator connected to the internet identified files containing child pornography that Strange had available for download.  On April 27, 2015, the investigator downloaded three video files depicting children engaged in sexually explicit conduct. 

A search warrant was executed at Strange’s residence in Catonsville on June 12, 2015, and law enforcement seized two laptops.   One laptop over 150 videos of child pornography, including the three videos downloaded on April 27, and the other laptop contained search terms indicative of child pornography.

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

United States Attorney Rod J. Rosenstein praised the HSI Baltimore and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Adrian Scott Little, age 55, of Baltimore, Maryland today to 18 months in prison followed by three years of supervised release for transporting stolen goods.  Judge Garbis ordered Little to forfeit the contents of several bank accounts and the large quantity of retail products seized from his warehouse and residence. 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and the United States Secret Service - Baltimore Field Office.  

According to his plea agreement, from at least December 2011 to March 2015, Little bought stolen consumer products from shoplifters to resell online on eBay and Bonanza.  The products included over-the counter medication, bath and beauty products and razor blades.  He also obtained similar products from other sources, including internet auction websites.

Little maintained a business warehouse where he removed anti-theft devices and stored the stolen items.  He also stored and shipped stolen items out of his home.     

Little obtained approximately $200,000 from the fraud scheme.

United States Attorney Rod J. Rosenstein praised the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorneys Zachary A. Myers and Aaron S.J. Zelinsky, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced James Devwan Pixley, age 26, of Waldorf, Maryland, today to 10 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base and cocaine, and for possession of a firearm in furtherance of a drug trafficking crime.  Judge Chasanow also ordered Pixley to forfeit six firearms, a car and a trailer. 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl 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; Charles County Sheriff Troy Berry; Chief Hank Stawinski of the Prince George’s County Police Department; Acting Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; St. Mary’s County Sheriff Tim Cameron; and Calvert County Sheriff Mike Evans.  

According to his plea agreement and other court documents, from January through July 2015, Pixley conspired with others to sell primarily crack, but also cocaine and other illegal drugs, such as prescription painkillers.  Pixley obtained cocaine up to four times a month from co-defendant Colbert Jones, generally in four ounce increments for $1,700 per ounce. Pixley used the majority of that cocaine to manufacture into crack, which he cooked in his kitchen.  Pixley sold the cocaine to his customers at various locations including his residence and his mother’s home in Leonardtown, Maryland, which Pixley used as stash houses.

Pixley also possessed and sold firearms on several occasions, while selling drugs. He stored the firearms at his residence and his mother’s. A search warrant was executed on August 6, 2015, at his and his mother’s residences. Several firearms were seized, including a loaded 12 gauge shotgun from Pixley’s residence.

The investigation revealed that Pixley was responsible for the distribution of between 500 grams and 5 kilograms of cocaine, and between 280 and 840 grams of crack cocaine.

Co-defendants Troy Taishon Swann, age 39, of Waldorf; Antoine Dewayne Savoy, age 35, of Lusby, Maryland; Fletcher, age 29, of Clinton, Maryland; and Colbert Juan Jones, Jr., age 33, of St. Leonard, Maryland, previously pleaded guilty to their participation in the drug trafficking conspiracy. Fletcher and Jones were each sentenced to 10 years in prison.  Judge Chasanow has scheduled sentencing for Savoy on June 27, 2016 at 12:30 p.m. and for Swann on July 11, 2016 at 11:00 a.m.

United States Attorney Rod J. Rosenstein praised the ATF, DEA, Charles County Sheriff’s Office, Prince George’s County Police Department, Maryland National Capital Park Police, Prince George’s County Division, and the 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 – U.S. District Judge Paul W. Grimm sentenced Marvin Taaff, age 29, of Takoma Park, Maryland, today to 140 months years in prison followed by five years of supervised release for conspiring to possess with intent to distribute five kilograms or more of cocaine, cocaine base and 100 kilograms or more of marijuana. 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; Acting Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; Chief Antonio DeVaul of the Maryland National Capital Park Police, Montgomery County Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.  

According to his plea agreement, from April to October 2013, Taaff distributed cocaine base (crack cocaine) during several controlled purchases with a law enforcement source. Further investigation revealed that Taaff was a significant local distributor of marijuana, cocaine and cocaine base.  Taaff, who was a leader of the drug operation in Maryland, coordinated the shipments of controlled substances from sources within and outside Maryland, including Arizona.  He directed other members of his drug trafficking organization to provide locations to store and distribute drugs. 

On December 5, 2013, search warrants were executed at several locations in and around Prince George’s and Montgomery Counties, and in Tucson, Arizona, including Taaff’s residence and the residences of his co-conspirators.  Narcotics, drug paraphernalia, shipping materials, cash, and firearms were seized from locations associated with the conspiracy.  Law enforcement seized a .38 caliber revolver with an obliterated serial number and a loaded 9mm pistol; ammunition; a quarter ounce of suspected powder cocaine; and drug paraphernalia, from Taaff’s residence.

The investigation revealed that Taaff conspired with members of his drug trafficking organization to distribute over five kilograms of cocaine, between 196 and 280 grams of cocaine base, and at least 100 kilograms of marijuana.

Phillip Bingham, age 56, of Tucson, Arizona; Mahmood Hussain, age 31, of Laurel, Maryland; Fernando Gastellum-Rivas, age 43, of Tucson; and Annis Attar, age 30, of Largo, Maryland, previously pleaded guilty to their roles in the conspiracy and were sentenced to 11 years in prison, 10 years in prison, 42 months in prison, and 40 months in prison, respectively.

United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department, Maryland National Capital Park Police and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Lindsay Eyler Kaplan, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Jeff V. Hare, age 54, of Berlin, Maryland, today to 10 years in prison followed by five years of supervised release for armed bank robbery and brandishing a firearm during a crime of violence.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Worcester County Sheriff Reggie T. Mason, Sr.; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Worcester County State’s Attorney Beau Oglesby.

According his plea agreement, on March 13, 2015, Hare entered the BB&T branch located on Racetrack Road in Berlin, wearing a ski mask and brandishing a handgun. Hare told the bank tellers that he had a gun and was robbing the bank. Hare moved through the lobby from employee to employee, pointing the handgun at each employee and demanding money. Hare also demanded each teller give him their car keys and purse, but the tellers told Hare they did not have them available. Hare stole approximately $2,850 in cash from the bank.

Hare admitted that after robbing the tellers in the lobby, he found a bank employee who had locked herself in a back room of the bank. Hare forced open the locked door and demanded her car keys and her purse. The employee gave Hare her purse, which contained cash and personal effects, and the keys to her car. Hare fled in the stolen car, which he abandoned at a nearby business.

Hare was arrested later that evening at a residence in Ocean Pines, Maryland.  At the time of his arrest, Hare was still in possession of the money stolen from the bank.

Hare has been detained since his arrest. During that time, Hare attempted to impede the investigation of the armed bank robbery and carjacking by seeking to arrange for the disposal of evidence of the crimes.  On May 1, 2015, an associate of Hare visited him at the Worcester County Detention Center in Snow Hill, Maryland.  During that visit, Hare told his associate that he was being framed and that unidentified persons had a box of garbage that would incriminate him.  Hare asked the person to retrieve the box from his former residence in Ocean Pines.  On May 6, Hare called his associate and asked if he got rid of the “trash,” referring to the box Hare had asked the associate to retrieve.  The box contained the ski mask Hare wore during the robbery and carjacking, a .38 caliber revolver believed to have been used during the robbery, and the purse Hare stole from the bank employee, including her driver’s license.

United States Attorney Rod J. Rosenstein praised the FBI, Worcester County Sheriff’s Office, Maryland State Police and the Worcester County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant United States Attorneys Matthew J. Maddox and Zachary A. Myers, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Derek Anthony Davis, age 31, of Baltimore, Maryland today to 20 years in prison followed by five years of supervised release for robbery conspiracy and possession of a firearm by a convicted felon. 

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

According to his plea agreement, from June 17 to June 30, 2015, Davis and a co-conspirator committed five armed robberies of a hair academy on Dundalk Avenue North in Dundalk; a barber shop on Eastern Avenue in Baltimore; a beauty parlor on Reisterstown Road in Baltimore; a barber shop on Garrison Boulevard in Baltimore; and a hair salon on Edmondson Avenue in Baltimore.

During each robbery, Davis brandished a firearm.  Davis and his co-conspirator stole cash and products from employees, customers and the businesses.

While robbing the barber shop on Eastern Avenue, Davis demanded that an employee give him cash.  When the employee initially resisted, Davis yelled that the employee was going to be the reason they all got shot.

At least $1,208 was stolen during the robberies.

On July 29, 2015, a police officer saw Davis walking out of an alley in the 500 block of Normandy Avenue in Baltimore. Davis fled when he saw the officer.  When the officer caught up with him, Davis tossed a .22 caliber pistol onto a nearby porch roof.  Davis had previously been convicted of a felony and was prohibited from possessing a firearm.

Davis also admitted that he is an armed career criminal.       

United States Attorney Rod J. Rosenstein praised commended the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Seema Mittal, who prosecuted the case.

Baltimore, Maryland – Gary Scott Conway, age 45, of Havre de Grace, Maryland, pleaded guilty late yesterday to transporting child pornography.

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; the Federal Bureau of Investigation, Idaho Office; Ada County (Idaho) Sheriff Stephen Bartlett; Harford County Sheriff Jeffrey R. Gahler; and U.S. Marshal Johnny Hughes.

According to his plea agreement, Conway collected child pornography on the internet.  From October 2014 to July 2015, Conway used an internet chat website to communicate with adults and minor children.  Beginning on March 30, 2015, he uploaded child pornography to an internet-based file storage service.

On May 29, 2015, representatives from the internet-based file storage service notified the National Center for Missing and Exploited Children that Conway’s account contained at least 35 videos of child pornography.  The Harford County Sheriff’s Office investigated, determined that the files were uploaded from Conway’s residence, and executed a search warrant at the residence on July 8, 2015.  Investigators seized various digital media, including a desktop computer.  Forensic analysis of that 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 videos and images depicted prepubescent boys and girls engaged in sexual acts with adult men, including oral sex and anal sex.

On July 14, 2015, Conway took his wife’s vehicle and fled Maryland. Conway had previously been convicted in 2004 in the Circuit Court for Harford County, Maryland of sexual offense in the third degree for having oral sex with a 15 year old victim, and was sentenced to 10 years’ incarceration, all of which was initially suspended.  When he fled 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.

While in Arizona, Conway stayed at a resort in Sedona for 12 days.  During that time, he did not notify the state of Arizona of his sex offender status; and two families 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.  He travelled to Six Flags Magic Mountain in California, and then to Idaho.

Conway stayed in Idaho for more than three weeks, never notifying the state authorities of his sex offender status.  He was arrested in Idaho on August 26, 2015.

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.

As part of his plea agreement, Conway 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).

Conway faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 40 years in prison.  U.S. District Judge J. Frederick Motz scheduled sentencing for September 9, 2016 at 9:00 a.m.

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

United States Attorney Rod J. Rosenstein commended the FBI, Harford County Sheriff’s Office, Ada County (Idaho) Sheriff’s Office; and U.S. Marshal Service for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.

Baltimore, Maryland – Nicola Tauraso, age 81, of Frederick, Maryland pleaded guilty today to health care fraud.  

The guilty plea 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; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Colonel Robert K. "Ken" Ziegler Jr., Superintendent of the Maryland Natural Resources Police; Washington County Sheriff Douglas W. Mullendore; and Captain Paul “Joey” Kifer, Acting Chief of the Hagerstown Police Department.  

According to his plea agreement, from 1972 to 2007, Tauraso practiced as a pediatrician.  In 2009 he began a practice in pain management, located in Frederick, in which he saw an excessive number of patients and wrote prescriptions for certain drugs, particularly Oxycodone and Oxycontine, without determining if a medical need existed for these prescriptions.  For example, records of Tauraso’s prescriptions with only one pharmacist showed that in 2009 to 2010, he wrote 6,368 prescriptions, and that oxycodone accounted for the vast majority. 

Cash deposits and the number of prescriptions gradually increased through the beginning of 2010 and peaked in May 2010, when Tauraso had $251,673 in cash deposits.  Tauraso deposited approximately $821,358 in cash into his bank accounts in 2010, of which approximately $575,000 was transferred to a bank in Panama.

Law enforcement frequently observed three or four patients getting out of a car to enter Tauraso’s office.  Former employees told law enforcement that Tauraso would see approximately 80 patients in a usual eight hour day.

In June 2011, the Maryland State Board of Physicians revoked Tauraso’s medical license, after finding that Tauraso prescribed Oxycondone, oxycontin and other drugs to 17 patients without taking sufficient medical history, or performing a physical or other tests.

An insurance  investigator found that: 75% of the patients listed were being seen for lumbago, a non-descript diagnosed back injury, which is a red flag for drug diversion; the volume of medical claims was alarming; at least five patients were prescribed Oxycontin, Oxycodone, Xanax and Tramadol, which is a deadly medication combination; patients traveled from great distances including from Pasadena, Dundalk, Prince George’s County and outside Maryland in order to see Tauraso; and patients did not use insurance for doctor visits with Tauraso, but used insurance for their prescriptions.

At least seven pharmacists in the Frederick area stopped filling Tauraso’s prescriptions in 2009 and 2010 due to concerns that these prescriptions were not medically necessary.

Taursao admitted that the loss from his billings to Medicare and Medicaid and for fraudulent prescriptions was $350,000.

Tauraso has agreed to forfeit funds held in his Panamanian bank account, which is approximately $100,000.

Tauraso faces a maximum sentence of 10 years in prison. U.S. District Judge Marvin J. Garbis scheduled sentencing for August 8, 2016 at 10:00 a.m.

United States Attorney Rod J. Rosenstein praised the DEA, Frederick County Sheriff’s Office, Department of Health and Human Services – OIG, Maryland Natural Resources Police, Washington County Sheriff’s Office and the Hagerstown Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.

Greenbelt, Maryland – Monica Kendrick, age 47, of Walkersville, Maryland, pleaded guilty today to wire fraud arising from a scheme in which she embezzled money from her employer.

The guilty plea 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.

Kendrick has agreed to pay restitution of $271,921.06, the total amount of loss resulting from the scheme.

Kendrick faces a maximum sentence of 20 years in prison and a fine of $250,000.  U.S. District Judge Theodore D. Chuang scheduled sentencing for August 15, 2016, at 10:30 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 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 is prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 83, of Boca Raton, Florida today to three years in prison followed by three years of supervised release for conspiring to distribute oxycodone and other drugs. Chief Judge Blake also entered an order that Wiseberg forfeit $273,000.

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; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

“State and federal authorities are continuing to look at ways to shut down ‘pain clinics’ that are really just fronts for criminals who divert pharmaceutical drugs and hook a new generation of addicts,” said U.S. Attorney Rod J. Rosenstein. “Gerald Wiseberg traveled from state to state setting up clinics that prescribed opioid drugs to people who had no medical need for the drugs.”

“This pill mill operator case shows the complexity of the drug abuse cycle and how law enforcement must take a multi-tiered approach in dealing with prescription drug abuse and the connected abuse of heroin”, stated Assistant Special Agent in Charge Don A. Hibbert. “When users of prescription medications, especially opiate derivatives like oxycodone, become abusers of the medication, they often find themselves switching from oxycodone to a cheaper drug such as heroin.  In doing so, a new generation of heroin addicts are created, which leads to an increase in cases of heroin overdoses we see every day in this nation.”

According to his plea agreement, from March 2010 through February 2011, Wiseberg owned and operated Total Care Medical Center, a pain management clinic located in Deerfield Beach, Florida. Although Wiseberg was not a medical doctor, he established the standard operating procedures for the clinic, including which drugs the prescribing physician could prescribe and the maximum dosage amounts of these drugs.  As a result, Total Care accepted cash payments in exchange for providing prescriptions for large amounts of controlled substances, including oxycodone and alprazolam, to customers who did not have a legitimate medical need for the drugs.

In late 2010 and early 2011, two co-conspirators, Michael Resnick and his wife Alina Margulis, traveled to Florida to learn how to operate a pain clinic like Total Care. By early 2011, Wiseberg, Resnick and Margulis agreed to open a similar pain management clinic in Maryland.  They opened Healthy Life, with Wiseberg as an investor, consultant and operator of the business. Wiseberg interviewed and hired medical directors at Healthy Life, specifically because he believed they would write prescriptions for narcotics to customers without a legitimate medical need.

Healthy Life first opened in Owings Mills, Maryland, and in October 2011, moved to a larger office in Timonium, Maryland.  Both Healthy Life locations attracted large and unruly crowds.  While outside the locations, customers caused disturbances, used narcotics, and engaged in narcotics transactions.  Over 80% of the customers who received a prescription from Healthy Life were from out of state.  Approximately 97% of the customers who received prescriptions from Healthy Life received at least one prescription for oxycodone.

From June 2011 through April 2012, Resnick and Margulis paid Wiseberg $12,000 a month for his role at Healthy Life.  Wiseberg also received cash payments for his 30% share of the net profits from Healthy Life.  In 2011 alone, those cash payments totaled $165,000.

Wiseberg also pleaded guilty to a charge filed in the Southern District of New York for conspiring to distribute oxycodone and other drugs.  In that case, Wiseberg conspired with others to recruit patients from pain clinics to fill their prescriptions at specific pharmacies owned and controlled by Wiseberg’s co-conspirators.  Wiseberg admitted that he knew the prescriptions were not for a legitimate medical purpose, but that the pharmacies would honor the prescriptions because his co-conspirators had staffed the pharmacies with pharmacists who would fill such prescriptions.  Wiseberg and his co-conspirators required that patients filling prescriptions for oxycodone and other narcotics submit another prescription for a non-controlled substance at the same time.  Wiseberg knew that these patients would pay substantially marked-up prices for oxycodone, and purchase additional non-controlled substances they did not need, in order to receive the painkillers.

Michael Resnick, a/k/a Michael Reznikov, age 55, and his wife, Alina Margulis, age 49, both of Brooklyn, New York, previously pleaded guilty to conspiracy to distribute oxycodone and alprazolam. Margulis also pleaded guilty to money laundering, and Resnick also pleaded guilty to structuring currency deposits. Resnick and Margulis have agreed to the entry of an order to forfeit $280,000.  Resnick and Margulis await sentencing.

Physician William Crittenden III, age 52, of Kensington, Maryland, who served as a medical director at Healthy Life, was convicted at trial of conspiring to distribute oxycodone and alprazolam, and eight separate counts of unlawfully distributing oxycodone. Crittenden also awaits sentencing.

United States Attorney Rod J. Rosenstein commended the DEA Baltimore District Office and New Jersey Field Division, IRS, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office, for their work in these investigations. Mr. Rosenstein expressed his appreciation to U.S. Attorney Preet Bharara for the Southern District of New York, and Assistant U.S. Attorneys Edward Diskant, Daniel Tehrani, and Shawn Crowley, who handled the New York prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who prosecuted the Maryland case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 24, of Washington, D.C., today to 308 months in prison followed by five years of supervised release for robbery, discharging a gun during a robbery and carjacking, in connection with an armored car robbery and a carjacking in which a victim was shot in the arm and head.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; 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 J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Alan Goldberg of the Takoma Park Police Department; Montgomery County State’s Attorney John McCarthy; and Prince George’s County State’s Attorney Angela D. Alsobrooks.  

“We are pleased with the sentence,” said Chief Alan M. Goldberg of the Takoma Park Police Department. “The defendants in this case were involved in several violent crimes throughout the Washington, D.C. area. They displayed a total disregard for life while committing serious crimes. This sends a clear message to criminals that through a coordinated effort from our regional and federal partners, that this behavior has consequences.”

According to his plea agreement and court documents, on October 26, 2012, Freeman and co-conspirators Anthony Cannon and Tonnie Floyd who were riding in a stolen Jeep, followed an armored transport truck to a store located on University Boulevard East in Takoma Park, Maryland. An employee got out of the armored truck, walked into the store and picked up a bag containing $3,911.  As the employee returned to the armored truck, he was confronted by two co-conspirators with guns. The employee dropped the money bag and at least one co-conspirator fired a gun at the employee. The employee shot back. One of the defendants picked up the money bag.  They ran back to the stolen Jeep. As the defendants drove away, the employee continued to fire his handgun at the Jeep, striking a tire and the back window. Floyd was wounded in the shoulder during the gunfire.

The defendants left the Jeep in a neighborhood nearby because it had a flat tire as a result of the shooting.  They saw a man entering a vehicle, and shot the man in the arm and head, causing permanent and life-threatening bodily injury, then stole his vehicle.  The defendants drove the vehicle into the District of Columbia, where they set it on fire.

Police evidence personnel recovered blood containing DNA of Floyd from the back seat of the Jeep.  Floyd went to a hospital that day in the District of Columbia for medical treatment of his gunshot wound. Freeman’s finger and palm prints were found on the money bag left in the Jeep.

Co-conspirator Anthony Terrell Cannon, age 26, of Washington, D.C., was convicted at trial conspiracy, robbery, carjacking, and two counts of discharging a gun during a crime of violence, and interstate transportation of a stolen vehicle.  Judge Chasanow sentenced Cannon on May 27, 2016 to 75 years in prison. Judge Chasanow ordered that 50 years of his sentence is to be served consecutive to the 60 year sentence Cannon previously received in the U.S. District Court for the Eastern District of Virginia for other crimes.  Cannon has also been sentenced to life in prison in the Prince George’s County Circuit Court.

Tonnie Floyd, age 23, of Washington, D.C., previously pleaded guilty to robbery, and discharging a gun during the robbery and carjacking and was sentenced to 222 months in prison.

United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department, the Takoma Park Police Department and the Prince George’s County and Montgomery County State’s Attorney’s Offices for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who prosecuted the case.

Baltimore, Maryland – A federal jury convicted Mark Bazemore, a/k/a Uncle Mark, age 31; and Michael Smith, Jr., ak/ka Mikey, Lil Mike and Mik, age 30, both of Baltimore, and Timothy Hurtt, a/k/a Uncle Tim and Tim, age 45, of Baltimore County, today for participating in a racketeering conspiracy and drug conspiracy related to their membership in the Black Guerilla Family (BGF) gang.  Bazemore and Hurtt were also convicted of conspiring to use and carry a firearm in relation to a crime of violence and a drug trafficking crime.  Bazemore was also convicted of conspiring to commit murder in aid of racketeering; attempted murder in aid of racketeering; and carrying, brandishing and discharging a firearm in relation to a crime of violence.

The convictions 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; Baltimore Police Commissioner Kevin Davis; Chief Gary Gardner of the Howard County Police Department; Howard County State’s Attorney Dario Broccolino; and Baltimore City State’s Attorney Marilyn Mosby.

"If we want to stop the killing in Baltimore, we need to remove the killers from Baltimore," said U.S. Attorney Rod J. Rosenstein.

“These convictions are significant and are as a result of our on-going local, state and federal effort to combat violence in our communities,” said FBI Baltimore Special Agent in Charge Kevin Perkins. “This investigation and resulting convictions is proof again that the Baltimore Safe Streets Task Force is making a significant difference; there is a lot of work to do, but FBI Baltimore and our partners are committed in the fight against violent crime.”

“This is a verdict for the citizens of Baltimore to show these violent gang members that we will stop at nothing to prosecute them to the fullest extent of the law,” said Baltimore Police Commissioner Kevin Davis. “I hope this guilty verdict sends a message to those who continually harm our communities that we will work collectively to disrupt your illegal activity and organizations.”

According to court documents, the Black Guerilla Family (BGF) is a nationwide gang operating in prisons and on the streets of cities throughout the United States.  BGF is involved in criminal activity, including murder, robbery, extortion, narcotics trafficking, obstruction of justice and witness intimidation in Baltimore, in Maryland, and elsewhere. The evidence showed that the defendants and other BGF members regularly paid dues to BGF and discussed gang business at meetings, including: the sanctioning of BGF members; the identities of individuals suspected of cooperating with law enforcement and actions to be taken against them; and the commission of future crimes.

According to trial evidence, Bazemore, who was a BGF leader, issued sanctions on several fellow BGF members, including the attempted murder of one BGF member who was shot on March 10, 2014, and the murder of another member who was killed on June 16, 2014. Between September and December 2013, co-defendant Timothy Gray, who was the Baltimore “city-wide” commander of BGF, sanctioned the murder of a BGF member by Hurtt and a co-conspirator. Also, Hurtt and Gray provide armed protection in a BGF drug deal.   Bazemore, Smith and Hurtt collected dues from BGF members who were dealing drugs in the area of Pratt and Payson Streets, a BGF controlled open-air drug shop in Baltimore.  In addition to collecting dues, the defendants conspired to operate street-level drug shops throughout Baltimore where they distributed heroin.

The defendants face a maximum penalty of life in prison for the racketeering and drug conspiracies.  Bazemore and Hurtt also face a maximum penalty of 20 years in prison for conspiracy to use and carry a firearm in relation to a drug trafficking crime. Bazemore also faces a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering, and life in prison for using, carrying, brandishing and discharging a firearm in relation to a crime of violence. U.S. District Judge James K. Bredar has scheduled sentencing for November 14, 2016 at 10 a.m.

Timothy Michael Gray, a/k/a “Mike Gray,” age 48, of Baltimore, previously pleaded guilty to the racketeering conspiracy and is scheduled to be sentenced on November 16, 2016, at 10:00 a.m. Ten other co-defendants pleaded guilty to their roles in the conspiracies and are scheduled to be sentenced between November 15 and 21, 2016.

United States Attorney Rod J. Rosenstein praised the FBI; Baltimore City and Howard County Police Departments; and Baltimore City and Howard County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James T. Wallner and Clinton Fuchs, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Leslie Okyere, age 33, of Hyattsville, Maryland today to 66 months in prison followed by five years of supervised release for conspiring to commit bank fraud, using an unauthorized access device and aggravated identity theft. Judge Hazel also ordered Okyere to pay restitution of $1,040,646.14.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.

According to his plea agreement and court documents, co-defendant Bertrand Essem recruited college students to open a bank account and obtain a debit card and PIN number associated with that debit card. After the recruits opened the bank accounts, Essem collected the debit cards and PIN numbers and gave them to Okyere.  

Okyere kept the recruited individuals’ bank account information in a portfolio book, along with a handwritten list of telephone numbers for numerous The Home Depot stores located throughout the country, and a handwritten schedule listing the days of the week followed by dollar figures alongside the recruited individuals’ names and their debit card numbers.  At the same time, Okyere obtained individual victims’ stolen credit card information from several sources, including co-defendant Godfred Obeng.

For example, sometime in 2012, Okyere recuited Obeng to fraudulently access the credit card information for cardholders from Obeng’s employer, Capital One Bank.  Okkyere received approximately 538 text messages from Obeng containing stolen account numbers, cardholders’ names and addresses for the cardholders. 

On numerous occasions Okeyere ordered construction materials from The Home Depot stores by phone in amounts ranging from $2,500 to $8,000, using a victim’s stolen credit card number as payment. Within a few days, Okyere called to cancel the order and requested that the refunds be sent to the debit card account numbers and bank accounts in the name of the recruited individuals. From June 2010 to January 2014, a total of approximately 173 refunds from unauthorized credit card purchases at The Home Depot were credited to bank accounts of recruited individuals.

The recruits, including Stanley Nmesirionye and Dosis Feludu, would be required to withdraw the majority of the money from the bank account and give that to Essem or to the person by whom they were recruited.  The recruit could keep a portion, in some cases as much as $300, and a significant portion of the refunded money was given to Okyere.

The court determined at today’s hearing that the total loss attributable to Okyere’s conduct arising from the fraudulent scheme was $1,040,646.14.

Bertrand Awah Essem, age 28, of Beltsville, Maryland; Stanley Nmesirionye, age 25, of Owings Mills, Maryland; Dosis Feludu, age 26, of Salisbury, Maryland; Gideon Turkson age 25, of Burtonsville, Maryland and Godfred Obeng, age 39, of Glen Allen, Virginia, previously pleaded guilty to their participation in the fraud scheme.  Obeng was sentenced on April 14, 2016 to three years in prison and ordered to pay restitution of $338,548.45.  Essem was sentenced on February 5, 2016 to 27 months in prison and ordered to pay restitution of $264,757.29.  Feludu, Nmesirionye and Turkson were each sentenced to a day in prison.  Feludu was ordered to pay restitution of $71,221.82, Nmesirionye to pay $57,255.85 and Turkson to pay $52,953.13.

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. Postal Inspection Service and U.S. Department of the Treasury – OIG for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.

Greenbelt, Maryland – A South Carolina man pleaded guilty to a criminal information charging conspiracy to defraud the United States for the purpose of obstructing the functions of the Internal Revenue Service (IRS), announced U.S. Attorney Rod J. Rosenstein of the District of Maryland and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to information presented in court, Menachem Shoham, age 67, of Rockville, Maryland, conspired with several family members and with Martin Lack, a former asset manager at a firm in Zurich, to maintain undeclared offshore bank accounts in order to conceal assets and income from the IRS.  Lack pleaded guilty in 2014 to a charge of conspiracy to defraud the United States.

“In today’s plea, Menachem Shoham admitted to conspiring to defraud the IRS through the use of undeclared offshore bank accounts, secretly tapping into the funds through large cash withdrawals abroad and employing credit cards directly linked to the accounts to pay personal expenses,” said Acting Deputy Assistant Attorney General Goldberg.  “This case is another step in the department’s ongoing efforts, along with its partners in the IRS, to actively investigate and prosecute the illegal use of offshore bank accounts, not just in Switzerland, but around the world.”

“No matter how you attempt to disguise your income, one is still legally required to pay taxes on it,” said Special Agent in Charge Thomas Jankowski of IRS-Criminal Investigation (CI) Washington, D.C., Field Office.  “Today’s plea is a reminder that IRS Criminal Investigation is committed to following the money trail across the globe and will not be deterred by sophisticated financial transactions.”

As part of the conspiracy, Shoham and his family members traveled both within the United States and to the Bahamas, the United Kingdom and Switzerland in order to meet with Lack and obtain at least $379,930 in cash withdrawals from their offshore accounts.  The co-conspirators further obtained credit cards linked to their offshore accounts as an additional means of accessing the funds while at the same time concealing them from the IRS.  Shoham and his family members also provided false information to their tax return preparers in order to conceal the ownership and control of the offshore accounts.

For the years 2005 to 2010, Shoham filed false U.S. individual income tax returns with the IRS on which he failed to report his offshore bank accounts.  For the years 1999 to 2010, Shoham was required to file annual Reports of Foreign Bank and Financial Accounts (FBARs) with the IRS; however, despite maintaining account balances which at times exceeded $500,000, Shoham failed to file the required FBARs.  As a result of the conspiracy, Shoham caused a tax loss to the United States of $36,287.

At his August 15 sentencing, Shoham faces a statutory maximum sentence of five years in prison.  He also faces monetary penalties and restitution.

U.S. Attorney Rosenstein and Acting Deputy Assistant Attorney General Goldberg commended the IRS-Criminal Investigation, who investigated the case, and Senior Litigation Counsel Mark F. Daly and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney David Salem of the District of Maryland, who are prosecuting this case.

Used Secret Foreign Accounts to Hide over $500,000 in Funds and Avoid Paying Taxes

A South Carolina man pleaded guilty to a criminal information charging conspiracy to defraud the United States for the purpose of obstructing the functions of the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rod J. Rosenstein of the District of Maryland.

According to information presented in court, Menachem Shoham, 67, conspired with several family members and with Martin Lack, a former asset manager at a firm in Zurich, to maintain undeclared offshore bank accounts in order to conceal assets and income from the IRS.  Lack pleaded guilty in 2014 to a charge of conspiracy to defraud the United States.

“In today’s plea, Menachem Shoham admitted to conspiring to defraud the IRS through the use of undeclared offshore bank accounts, secretly tapping into the funds through large cash withdrawals abroad and employing credit cards directly linked to the accounts to pay personal expenses,” said Acting Deputy Assistant Attorney General Goldberg.  “This case is another step in the department’s ongoing efforts, along with its partners in the IRS, to actively investigate and prosecute the illegal use of offshore bank accounts, not just in Switzerland, but around the world.”

“No matter how you attempt to disguise your income, one is still legally required to pay taxes on it,” said Special Agent in Charge Thomas Jankowski of IRS-Criminal Investigation (CI) Washington, D.C., Field Office.  “Today’s plea is a reminder that IRS Criminal Investigation is committed to following the money trail across the globe and will not be deterred by sophisticated financial transactions.”

As part of the conspiracy, Shoham and his family members traveled both within the United States and to the Bahamas, the United Kingdom and Switzerland in order to meet with Lack and obtain at least $379,930 in cash withdrawals from their offshore accounts.  The co-conspirators further obtained credit cards linked to their offshore accounts as an additional means of accessing the funds while at the same time concealing them from the IRS.  Shoham and his family members also provided false information to their tax return preparers in order to conceal the ownership and control of the offshore accounts.

For the years 2005 to 2010, Shoham filed false U.S. Individual Income Tax Returns, Forms 1040, with the IRS, on which he failed to report his offshore bank accounts.  For the years 1999 to 2010, Shoham was required to file annual Reports of Foreign Bank and Financial Accounts (FBARs) with the IRS; however, despite maintaining account balances which at times exceeded $500,000, Shoham failed to file the required FBARs.  As a result of the conspiracy, Shoham caused a tax loss to the United States of $36,287.

At his Aug. 15 sentencing, Shoham faces a statutory maximum sentence of five years in prison.  He also faces monetary penalties and restitution.

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Rosenstein commended special agents of IRS-CI, who investigated the case, and Senior Litigation Counsel Mark F. Daly and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney David Salem of the District of Maryland, who are prosecuting this case.

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

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced James Charlton Davis, III, age 57, of Anderson, South Carolina, today to six years in prison followed by five years of supervised release for wire fraud arising from an elaborate scheme to defraud his employer of at least $240,000. Judge Chuang also ordered Davis to pay restitution of $240,000.

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

According to his plea agreement, from May 7, 2012 to March 13, 2013, Davis was the director of the electrical division for a small company in Landover, Maryland that provided construction and preconstruction services to federal agencies.  When applying for his job, Davis falsely represented that he had earned a Ph.D. from the Massachusetts Institute of Technology (MIT), when in fact Davis had not attended MIT.  Part of his duties as director was to develop new business for the company.

Davis falsely told company executives that he knew executives at several corporate entities, and that he was pursuing contracts with these corporate entities. Davis created and falsely registered online domain names that closely resembled legitimate domain names associated with several of these corporate entities.  Davis used these falsely-registered domains to send emails to himself and others at his employer to legitimize the fictional contracts he claimed to obtain on his employer’s behalf.  Davis also assumed the identity of an individual who investigation revealed was a contractor with a technology company.  Davis had previous interactions with this individual during his previous employment.

In July 2012, Davis told his employer that he had procured contracts with the technology company, headquartered in San Jose, California, to construct cell towers in Alpharetta, Georgia.  Davis communicated with himself via email using the stolen identity of the individual, in connection with fictitious contracts with the tech company, and with other corporate entities for supposed upgrades to their data centers.  Davis represented that he was working with this individual to perform these contracts.  For several of the contracts, Davis sent communications to himself and/or others at his employer, or caused others at his employer’s company to send emails to various personas he had created—some of whom appear to refer to actual employees of the corporate entities with whom Davis claimed to be negotiating contracts.

Related to his supposed efforts to obtain and perform contracts with these corporate entities, Davis traveled extensively and incurred bills for expensive dinners and accommodations.  Davis sought and obtained reimbursement from his employer for travel, meals, equipment and labor costs.  In fact, however, Davis did not pursue any legitimate business and did not have interactions with any of these corporate entities on behalf of his employer.

Because of Davis’s fraudulent emails, his employer believed that demand for its services had grown exponentially.  As a result, his employer stopped pursuing additional contracts, sought larger lines of credit and hired additional personnel. 

In March of 2013, his employer learned of the fraud scheme when none of the invoices being submitted to these corporate “clients” - the fictional contacts at these companies - were being paid.  Davis’s employer started contacting these “clients” independently, and they all confirmed that they had no business dealings with Davis’s employer or with Davis. 

In determining his sentence, the court considered the defendant’s 30 year criminal history, including six previous convictions for theft and making false statements.

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Thomas M. Sullivan and Ray D. McKenzie, who prosecuted the case.

Baltimore, Maryland – Assistant U.S. Attorneys Michael C. Hanlon and William D. Moomau, and Law Enforcement Coordinator Steven J. Hess of the U.S. Attorney’s Office in the District of Maryland, were three of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.

The District of Maryland was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

Hanlon, Moomau and Hess were recognized for superior performance in prevention and reentry activities for their Project Safe Neighborhoods program which includes a personalized deterrence message to repeat offenders, while offering them assistance and community reintegration services.  Hanlon, Moomau and Hess organize and conduct meetings for ex-offenders, known as call-ins, in Baltimore, Prince George’s County, and other areas throughout the state, in cooperation with federal agencies, local police, prosecutors, state parole and probation officers, community groups and non-governmental organizations.  The awardees research the participants’ criminal histories to develop individual risk assessments, which are shared with the participants during the meeting, while also making the participants aware of services that are available to assist them.  Since 2009, Hanlon, Moomau and Hess have conducted approximately 46 call-ins across the state, reaching an estimated 700 violent repeat offenders.

"The call-in programs are an effective way to communicate a deterrent message directly to the persons most likely to reoffend,” said U.S. Attorney Rod J. Rosenstein. “We warn them about the consequences of getting caught with a gun or drugs, and we offer opportunities for them to pursue legitimate employment.” 

In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges.   From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases.  And the citizens of our country are safer because of their work.”

“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.

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

Baltimore, Maryland – Dorian Maurice Griffin, age 20, of Baltimore, pleaded guilty today to conspiracy to commit bank fraud and to aggravated identity theft. Four co-defendants have previously pleaded guilty to the scheme, in which the defendants deposited counterfeit checks drawn on the accounts of identity theft victims into bank accounts opened by the defendants in the name of shell companies.  The defendants then withdrew the funds before the fraud could be detected.

The guilty plea 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 his plea agreement, between February 2014 and July 2014, Griffin conspired with lead defendant Monika Hill, Mark Peeples, Alysia Rascoe, Christopher McKoy, and others to open 22 business bank accounts online, using the personal identifying information of identity theft victims.  The bank accounts were funded using forged checks bearing the bank account numbers and forged signatures of other identity theft victims. 

For example, Grant U Pleasure, LLC was registered with the State of Maryland Department of Labor, Licensing and Regulation as businesses on March 12, 2014.  The business listed an identity theft victim as the managing member/owner, and the defendant used that person’s social security number and date of birth to open online bank accounts for the business.  Shortly thereafter, the co-conspirators deposited counterfeit checks into the accounts, and withdrew the funds before the fraudulent checks were detected.

Specifically, beginning on March 25, 2014, 31 counterfeit checks totaling $51,490 were deposited into three business banks accounts opened online in the name of Grant U Pleasure. A total of $52,433 was drawn out of two of those accounts by checks being cashed against funds in the accounts.  All of the deposited counterfeit checks were from an account belonging to three identity theft victims. Hill and Peeples deposited a total of seven counterfeit checks into the Grant U Pleasure accounts, each bearing the forged signature of a victim account owner.  Once the counterfeit checks were deposited, Hill provided checks to Griffin, Rascoe, Peeples, and others drawn on the Grant U Pleasure accounts.  The checks were made out to them in amounts ranging from $1,500 to $1,800, and bore the forged signature of the purported managing member/owner of Grant U Pleasure. Griffin and his co-defendants cashed the checks, providing their driver’s licenses, fingerprints and signatures.  They typically kept about $200 of the proceeds for themselves and provided the rest to Hill and others.  Between March 26 and April 8, 2014, Griffin cashed 11 checks drawn on the Grant U Pleasure accounts totaling $19,345. 

Over the course of the conspiracy, Griffin cashed a total of 30 checks in this same manner, drawn on nine shell corporations with business band accounts.  The total amount of checks cashed by Griffin alone was $47,455.

The loss to the bank as a result of the scheme was $179,808.76, the amount actually withdrawn.  The intended loss was $233,190.02, the total amount of the counterfeit checks deposited.

Griffin faces a maximum sentence of 30 years in prison for conspiracy to commit bank fraud, and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft.  U.S. District Judge Ellen L. Hollander has scheduled sentencing for Griffin on October 21, 2016, at 10:00 a.m.

Lead defendant Monika Michelle Hill, age 36, of Baltimore and Cockeysville, Maryland, pleaded guilty to three counts of conspiracy to commit bank fraud, aggravated identity theft, and to committing these offenses while on pre-trial release in another fraud case.  Hill and government have agreed that if the Court accepts her plea agreement, Hill will be sentenced to 10 years in prison.  Mark Darnell Peeples, age 31, and Alysia Samon Rascoe, age 26, both of Baltimore pleaded guilty to conspiracy to commit bank fraud and to aggravated identity theft.  Judge Hollander has scheduled sentencing for Peeples on August 23, 2016 and for Rascoe on July 20, 2016, both at 2:30 p.m. Christopher Vance McKoy, age 24, of Baltimore, pleaded guilty to two counts of conspiracy to commit bank fraud. McKoy and the government have agreed that if the Court accepts his plea agreement McKoy will be sentenced to between 21 and 27 months in prison. Judge Hollander has scheduled sentencing for McKoy on July 19, 2016 at 10:00 a.m.

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

Today’s announcement is part of the efforts undertaken in connection with the 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 Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Matthew J. Maddox, who are prosecuting the case.