District of Maryland

Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Regan Christopher Tsoi-A-Sue, age 29, of Washington, D.C., today to 30 months in prison followed by five years of supervised release for bank fraud and aggravated identity theft arising from a scheme to fraudulently obtain money from customer bank accounts.  Judge Grimm also entered an order that Tsoi-A-Sue pay restitution of $87,350.

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

According to his plea agreement, Tsoi-A-Sue worked at Capital One as a relationship banker, at a branch on Wisconsin Avenue in Washington, D.C.  He was assigned a unique user ID and password which allowed him to access and change customer accounts on Capital One’s computer system.

From September 9, 2011 to April 22, 2013, Tsoi-A-Sue fraudulently linked four temporary debit cards and one debit card of a closed bank account (the Debit Cards) in Capital One’s computer system to open bank accounts belonging to other persons.  He also changed the pin number or increased the daily withdrawal limit, or both, of the Debit Cards.  Tsoi-A-Sue then made and attempted to make transactions with the Debit Cards to withdraw funds from ATMs.

For example, on October 27, 2012, Tsoi-A-Sue fraudulently linked a Capital One Debit Card belonging to a closed bank account, to another Capital One savings account.  On December 9, 2012, he used the Capital One Debit Card to withdraw $500 from the savings account at an ATM. 

During the course of the scheme, Tsoi-A-Sue fraudulently withdrew $87,350.

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 HSI Baltimore for its work in the investigation and thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jeffrey Brian Cohen, age 40, of Reisterstown, Maryland, today to 37 years in prison followed by three years of supervised release for wire fraud, aggravated identity theft, making false statements to an insurance regulator and obstruction of justice.  Judge Quarles also entered an order requiring Cohen to pay restitution of $137 million, and will order forfeiture.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division.

U.S. Attorney Rod Rosenstein stated, “The evidence demonstrated that Jeffrey Cohen was a chronic con artist who was planning to commit murder to prevent his fraud schemes from coming to light.”

“Cohen’s substantial criminal conduct may have benefited him short-term, but now Cohen is being held accountable for his criminal actions,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.  “Today's sentencing stands as an example that IRS-CI, along with the U.S. Attorney’s Office and our law enforcement partners, will continue to investigate and prosecute crimes involving financial fraud.”

“Postal Inspectors are proud to have worked with our federal law enforcement partners to end a widespread insurance fraud affecting businesses all over the U.S.,” stated Inspector In Charge David Bowers of the U.S. Postal Inspection Service. “But we are just as proud that the investigation may have prevented more dangerous activities from occurring.”

After four days of trial, Cohen pleaded guilty to the offenses on June 5, 2015. According to his plea agreement, Cohen acted as the president and chairman of the board of a Delaware corporation Indemnity Insurance Corporation RRG (Indemnity).  Cohen previously controlled a District of Columbia corporation called Indemnity Insurance Corporation of DC, Risk Retention Group (Indemnity-DC), which was a predecessor entity to Indemnity.  Both companies were located in Sparks, Maryland, and provided general liability insurance, liquor liability insurance, and excess liability insurance coverage to their customers, which were individuals and companies involved in the entertainment industry, such as nightclubs, concert tours, and special events.  Both companies operated in several states, including Maryland.

The Delaware Insurance Commissioner and the DC Insurance Commissioner were charged by law with the responsibility of protecting insurance policyholders and the general public by regulating insurance companies and risk retention groups and their products to ensure among other things, that insurance companies and risk retention groups had the ability to pay claims.

Cohen admitted that from January 2008 to the fall of 2013, Cohen obtained insurance premiums by falsely representing the financial status of Indemnity and other Cohen controlled entities to some policyholders, a rating agency, independent financial auditors, the DC Insurance Commissioner and the Delaware Insurance Commissioner.

Specifically, Cohen created false financial documents, including bank statements, letters of credit, and confirmations of bank account balances.  Cohen transmitted some of these false documents to A.M. Best in order to obtain financial ratings for Indemnity and Indemnity-DC that were not based on the companies’ true financial condition. Cohen then touted the A.M. Best ratings to potential policyholders, policyholders, and regulatory agencies. Cohen also transmitted false emails, management representation letters, financial statements, and other documents to the auditing firms Marcum and BDO, so the auditors would provide an unqualified audit opinion on Indemnity-DC and Indemnity financial statements that Cohen knew were false. Cohen used the name and identity of a bank official to create a false bank confirmation.

According to court documents, as of 2013, Cohen paid himself more than $96,000 a month.  He lived in a multi-million dollar house in Florida, and maintained homes at different points in Phoenix, Reisterstown and Baltimore Maryland.  He purchased luxury cars including a Bentley and Aston Martin.   

To conceal the true financial condition of the companies, Cohen transmitted fraudulent audited and unaudited financial statements for Indemnity-DC and Indemnity to the DC Insurance Commissioner and the Delaware Insurance Commissioner. Cohen also made false statements to representatives of the Delaware Insurance Commissioner in June 2012.  

According to court documents, more than 5,000 policyholders paid more than $100 million in premiums for coverage that was illusory because Cohen’s companies never had sufficient capacity to cover its loss exposure.  Many of these policyholders suffered additional harm when the fraud scheme collapsed in 2013.  These policyholders had to purchase new policies to protect themselves, or were left without new policies, risking self-insurance or potential bankruptcy.  The government also presented evidence to the Court regarding individuals who suffered substantial injuries and/or death due to the actions of Indemnity’s insured.  Multiple victims, and/or their estates’ representatives, failed to receive appropriate compensation because Indemnity could not perform under its insurance policies.  The Court made a factual finding that the actual losses caused by the fraud scheme exceeded $100 million.  

The Delaware Insurance Commissioner began civil proceedings against the Cohen companies in June 2013.  In October 2013, two attorneys referred Cohen’s criminal offenses to federal authorities.  On February 20, 2014, after a hearing in the Delaware insurance litigation and in an effort to prevent one of the attorneys from communicating with federal law enforcement, Cohen turned to the attorney and stated: “Now I’m coming after you. You’re next.” According to court documents, during a deposition in connection with the Delaware insurance litigation, Cohen made a motion to a witness as if he was pointing a gun and shooting it.  

According to the Court’s findings, it was probable that Cohen meant to harm a judge in the Delaware insurance litigation, two attorneys who brought Cohen’s criminal conduct to the attention of the U.S. Department of Justice, and a Delaware government official.  From May to June 2014, Cohen searched online terms involving the victims’ home addresses, ammonium nitrate bombs, other bombings and explosions, and how to assemble bombs.  In June 2014, he purchased 50 pounds of ammonium nitrate.  He also purchased a sophisticated $25,000 rifle with 200 rounds of ammunition from a specialty firearms manufacturer, and $550 worth of fuses and incendiary ammunition.  He practiced with his newly purchased rifle at a firing range.  Cohen bought night vision binoculars for more than $3,500. 

The government presented evidence that on June 17, 2014 he activated a prepaid bank card in the name of “Bill Ward.”  On June 19th, he sought to obtain the cash value of a life insurance policy that was less than a year old (he later received a check in the mail for $250,000).  In mid-June, he purchased personal information about the individuals he was targeting, including their personal residences, family members and phone numbers.  On June 20, Cohen created, printed, and used directions to travel from Baltimore to the homes of a Delaware government official and the Delaware judge.  While at one of the public official’s home, Cohen took notes, including “get real estate listing for scouting,” “not much cover must be night,” and “do it late – after dusk.”  During this trip, he made audio recordings in which he stated that he “was driving to Delaware to scout out how [he could] attack” these two individuals; he had “methodically planned” his “recon” trip; there are individuals who “kill because of the necessity” and “look at the killing as for the greater good.” He noted that killing should not be viewed as wrong because “killing culls the weak.”

The government also presented evidence that on June 23, Cohen created a last will and testament and transferred all his personal property.  Shortly before his arrest, Cohen searched the internet for additional information about bombs, the public officials’ homes, estate sales and depression.

When agents executed arrest and search warrants on June 25, 2014 on Cohen and his residence, they found the $25,000 rifle in his garage and, in addition to the other items described above, a backpack containing wigs, masks, a false moustache, gas masks, several knives, wire garrotes, strike spikes and camouflage pants.  They also found a military style vest, rifle scopes and accessories, ammunition for guns, bolt cutters and a GPS device.  A notebook contained the following writings:  “Always carry a loaded 45 for the end.  Have to carry at all times.” 

United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore, IRS – Criminal Investigation and U.S. Postal Inspection Service - Washington Division for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Joyce K. McDonald, who prosecuted the case.

Greenbelt, Maryland – Dwayne Scott, age 55, of Baltimore, Maryland, pleaded guilty today to copyright infringement in connection with his reproduction and distribution of copyrighted works, including movies.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Kevin Davis of the Baltimore Police Department.

According to his plea agreement, Dwayne Scott was a corporate officer and registered agent of Hard Times Discount Clothing and Accessories in Baltimore.  On four occasions between September 11, 2012 and August 6, 2015, law enforcement executed search warrants at Hard Times.  On each occasion, law enforcement seized large numbers of CDs and DVDs of copyrighted works, which Scott had reproduced and distributed without the permission of the copyright holders.  Scott admitted selling CDs and DVDs of copyrighted works for profit.

Specifically, on September 11, 2012, members of the Baltimore Police Department executed a search warrant at Hard Times in connection with a stolen property investigation. Subsequently, on January 29, 2014 and February 3, 2015, an undercover officer purchased DVDs from Hard Times.  Each of the DVDs contained copyrighted movies that Scott had reproduced and distributed without permission. On April 16, 2014, February 24, 2015 and August 6, 2015, HSI Special Agents executed federal search warrants at Hard Times.  In the back room of the business law enforcement found hundreds of CDs and DVDs containing copyrighted works which Scott had illegally reproduced and distributed.  In addition, law enforcement located laptop computers actively downloading copyrighted movies from internet file sharing programs.

Scott faces a maximum sentence of five years in prison for copyright infringement.  As part of his plea agreement, Scott will also be required to pay restitution of $15,001 and to forfeit the computers, hard drives, cell phones, CDs and DVDs, and other items seized during the search warrants.  U.S. District Judge Paul W. Grimm has scheduled sentencing for April 11, 2016, at 9:30 a.m.

The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force).  The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.         

HSI manages the IPR Center, one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the HSI-led IPR Center, visit www.IPRCenter.gov.

United States Attorney Rod J. Rosenstein thanked HSI Baltimore and the Baltimore Police Department for their work in the investigation and thanked the Motion Picture Association of America for its assistance.  Mr. Rosenstein praised Assistant U.S. Attorney Nicolas A. Mitchell, who is handling the case.

Baltimore, Maryland – Elbert Darell Crump, age 47, of Towson, Maryland pleaded guilty today to robbery.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, on January 14, 2015 Crump entered the Dollar Tree on Joppa Road in Towson, wearing a mask covering part of his face.  Crump pointed a semi-automatic handgun at a cashier and demanded money.  Crump took cash out of the register drawer, a dollar from a nearby customer, and fled.

On January 20th, Crump entered the Gino’s Burgers and Chicken Restaurant on LaSalle Road in Towson.  Crump produced a firearm and demanded money from the employees. When the manager/employee had difficulty opening a cash register, Crump struck the manager in the head with the firearm, knocking him to the ground. Another employee helped the manager open the cash registers and Crump took the cash. A video recording shows Crump pointing the firearm in the direction of some of the customers as well as the employees.

The next day on January 21, 2015, Crump entered the Toys ‘R Us store on Putty Hill Avenue in Towson, wearing a ski mask on his face.  Crump pointed a gun at a cashier and demanded money.  The cashier ran out the front door.  Crump pointed his gun at another employee, forcing the employee to open eight cash registers and put the cash into a bag.  During this time, several customers and employees called 911.  Police from Baltimore County responded quickly and surrounded the store. Several customers who were inside fled the store and were moved to safety by the police. Crump attempted to leave by the front and then the back of the store, but returned inside once he saw all the police outside.

Baltimore County tactical officers and hostage negotiators arrived. Police were advised by fleeing customers that Crump was armed and that customers remained inside. Crump asked two customers to help him hide and handed them about $400. Crump hid in a large box on a shelf.  The customers who received the money left the store, told police where Crump was hiding and gave the police the money. Tactical officers and canine officers subsequently entered the store and located Crump, hiding in a large box on a shelf. A 24 hour search of the store took place before the .380 caliber handgun was located in the baby section inside a bag with $1,650 taken by Crump from all of the registers.

Video recordings of all three robberies identified Crump as the robber.  The firearm was registered to Crump’s girlfriend with whom Crump was staying.  Clothes worn by Crump during the robberies were found at their residence.

Crump had previously been convicted of at least one crime of violence and one drug offense.

Crump and the government have agreed that if the Court accepts the plea agreement Crump will be sentenced to 20 years in prison.  U.S. District Judge Ellen L. Hollander has scheduled sentencing for March 4, 2016.

United States Attorney Rod J. Rosenstein commended the Baltimore Police Department, FBI and Baltimore County State’s Attorney's Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Charles Henry Crocker, age 45, of Phoenix, Maryland, today to 10 years in prison followed by 25 years of supervised release for possessing child pornography. Judge Bennett ordered that upon his release from prison, Crocker 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 Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, on July 18, 2003, Crocker was convicted of possession of child pornography in federal court in Florida, sentenced to 27 months in prison and ordered to register as a sex offender.

On April 25, 2015, an undercover Baltimore County Police detective connected to the internet and downloaded a movie file that was being made available by an internet user.  The file contained a visual depiction of a minor engaging in sexually explicit conduct.  Further investigation revealed that Crocker had made the file available.

On May 1, 2015, Baltimore County Police officers executed a search warrant at Crocker’s residence and seized a laptop, desktop computer and two external hard drives.  Crocker admitted that he began looking at child pornography a couple years after being release from prison from his prior conviction.  Previews of the electronic devices revealed several videos.  A subsequent forensic review of the devices revealed additional videos.  The videos included between 300 and 600 images of child pornography, including those involving prepubescent females.

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, Baltimore County Police Department, FBI and Baltimore County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney David P. Kehoe, and Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

 

Greenbelt, Maryland – A federal jury convicted George Jack Smith, age 28, of Burtonsville, Maryland, late yesterday for possession with intent to distribute phencyclidine (PCP), illegal possession of a firearm by a previously convicted felon; and using, carrying and discharging a weapon in connection with drug trafficking.                  

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to evidence presented at the five day trial, on December 1, 2013, Smith got into a vehicle outside an apartment complex in the 9300 block of Cherry Hill Road in College Park, Maryland, in order to sell PCP to the vehicle’s occupants.  One of the vehicle’s occupants pulled out a knife.  Smith got out of the car and fired a gun in the direction of the vehicle as it drove away.  One of the bullets broke a pane of glass at the entrance to the apartment building.

Witnesses testified that a short time later, Smith got into a taxi, which was stopped by law enforcement at the apartment complex.  Smith was ordered out of the cab and taken into custody.  Law enforcement recovered the following items from the pockets of Smith’s jacket: a vial containing ¾ ounce of PCP; a loaded .380 caliber pistol, which had been reported stolen; and a .38 caliber revolver with five spent rounds.

Smith had at least two previous felony drug convictions and a conviction for robbery conspiracy, all in Montgomery County Circuit Court, and was therefore prohibited from possessing firearms or ammunition.

Smith faces a maximum of  20 years in prison for possession with intent to distribute PCP, a maximum of 10 years in prison for being a felon in possession of a firearm, and a mandatory minimum of 10 years and up to life in prison for using, carrying and discharging a firearm during a drug trafficking crime.  U.S. District Judge Paul W. Grimm has scheduled sentencing for April 1, 2016, at 2:00 p.m.

United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Nicolas A. Mitchell and Kristi N. O’Malley, who are prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jeffrey Poole, age 40, of Parkton, Maryland, today to 42 months in prison followed by three years of supervised release for bank fraud and aggravated identity theft arising from a seven year scheme to access a client’s bank account.  Chief Judge Blake also entered an order requiring Poole to pay restitution of $160,000.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.

According to his plea, Poole met the victim when he provided landscaping services.  He helped set up the victim’s new computer for on-line banking and gained access to the victim’s personal identity and financial information.  Shortly thereafter, Poole used the victim’s identity to establish a PayPal account for the victim, without the victim’s knowledge.  Poole used the victim’s personal and financial information to link the victim’s PayPal account to the victim’s checking account, so that payments made with or money transferred from the victim’s PayPal account would be automatically drawn from the victim’s bank account.

From April 2007 through January 2014, Poole repeatedly logged onto the victim’s PayPal account and made purchases for himself.  He also initiated money transfers from the victim’s PayPal account into his own PayPal account.  He then transferred the victim’s funds to his own bank accounts.

As a result of the scheme, Poole fraudulently obtained or attempted to obtain over $244,000.

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 for its work in the investigation and thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Don Juan Campbell, a/k/a “Flav,” “Flava Flav,” and “Flay,” age 32, of Laurel, Maryland, today to 130 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), cocaine, crack cocaine, and heroin, and for possession of a firearm in furtherance of a drug trafficking crime. Judge Titus also entered an order requiring Campbell to forfeit $117,632, seized during a search of his residence and storage unit, as proceeds of the drug conspiracy, as well as four firearms and ammunition.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.  

According to his plea agreement, from 2005 until at least June 2013, Campbell conspired with others to distribute cocaine, crack cocaine and PCP in the Riverdale area of Prince George’s County, Maryland. Campbell and other conspirators used apartments in Riverdale as a base of operations for storing and distributing narcotics. In addition to selling PCP, heroin, cocaine and crack cocaine to drug customers, Campbell also supplied drugs to co-conspirators, including Lorenzo Jackson, Dwayne Haywood, Andre Lyons, Michael McCree, and Marcus Moss, who would re-distribute the drugs to their own customers.  

On June 11, 2013, law enforcement agents executed a search warrant at Campbell’s residence in Laurel.  During the search, agents recovered approximately 237 grams of crack cocaine, 173 grams of powder cocaine, and 54 grams of heroin.  Also found in Campbell’s residence was a 9 millimeter handgun, $22,052 in cash, and drug paraphernalia including cooking and cutting agents used to manufacture narcotics.  That same day, a search warrant was executed on a storage unit in Suitland, Maryland, that was used by Campbell. Law enforcement agents recovered $95,580 in cash, $300 of which turned out to be counterfeit. 

On June 11, 2013, law enforcement agents executed search warrants at Lyons’ and Moss’ residences in Riverdale, Maryland.  At Lyons’ residence agents recovered approximately 460 grams of heroin, 318 grams of cocaine base, and 1,200 grams of PCP.  Also found in Lyons’s residence was a loaded .40 caliber semiautomatic pistol; a loaded .380 caliber semiautomatic pistol; and $15,310 in cash. At Moss’s residence agents recovered digital scales, PCP, and a loaded .40 caliber semiautomatic pistol that belonged to Campbell.

All eight defendants charged in the conspiracy have pleaded guilty to the roles in the drug distribution organization. Lorenzo Jackson, Dwayne Haywood, Michael McCree, and Marcus Moss all pleaded guilty and have been sentenced to up to 57 months in prison.  Andre Lyons is scheduled to be sentenced on January 21, 2016, at 9:00 a.m.

United States Attorney Rod J. Rosenstein praised ATF, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Nicolas A. Mitchell, who are prosecuting the case.

Baltimore, Maryland – Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, was arrested on federal charges today for obstruction of firefighters during a civil disorder and for aiding and abetting arson, in connection with a fire at CVS during the civil disturbance in Baltimore on April 27, 2015. The federal indictment was returned on December 1, 2015 and unsealed late on December 3, 2015.

“Anyone who considers harming people or property during a riot should know that we can track them down and send them to prison,” U.S. Attorney Rod J. Rosenstein said. "Federal law enforcement agencies are working closely with local police and prosecutors to investigate crimes committed during the Baltimore riots."

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; Maryland State Fire Marshal Brian Geraci; and Baltimore City State’s Attorney Marilyn J. Mosby.

According to the two count indictment, on April 27, 2015, riots erupted in Baltimore and at approximately 6:30 p.m. the Baltimore City Fire Department (BCFD) was notified of a fire at the CVS Pharmacy located at 2509 Pennsylvania Avenue, which is adjacent to the intersection of Pennsylvania Avenue and West North Avenue in Baltimore. Several BCFD engines were dispatched to suppress and extinguish the fire at the CVS. Firefighters deployed fire hoses to provide water in those efforts and to protect firefighters inside and near the building. Throughout the course of BCFD’s fire suppression and extinguishment efforts, rioting continued in the vicinity of CVS Pharmacy.

One hose was attached to a hydrant near the intersection of Pennsylvania and West North Avenues.  As the firefighters deployed the hose, the indictment alleges that Butler stood on top of the hose.  Once the hose was attached to the hydrant and the water was flowing into the hose, Butler allegedly punctured the hose twice using a sharp object - first near its attachment to the fire hydrant and then on a section of the hose that extended along the ground across Pennsylvania Avenue. Both punctures released a high-pressure stream of water from the hose and rendered the hose inoperable.  As a result, the efforts to put out the fire at the CVS were impeded and delayed. 

Butler faces a maximum sentence of five years in prison for obstruction of firefighters during a civil disorder, and a maximum of 20 years in prison for arson.  An initial appearance is expected to be held on Monday, December 7, 2015, in U.S. District Court in Baltimore, but no time has been scheduled. 

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

Federal prosecutors previously have charged three other defendants for arson crimes committed during the Baltimore riot on April 27, 2015. Donta Betts, age 19, of Baltimore, is charged with attempted arson of a police cruiser, civil disorder and unlawful making of a destructive device. Darius Raymond Stewart, age 21, of Baltimore, is charged with malicious destruction of a commercial building for allegedly setting fire to a liquor store on West North Avenue. Raymon Carter, age 24, 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. 

The investigation into this and other 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.

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, Maryland State Fire Marshal’s Office and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Philip A. Selden and Matthew J. Maddox, who are prosecuting the case.

Baltimore, Maryland – U.S. Attorney Rod J. Rosenstein announced that financial collections in criminal and civil actions in Fiscal Year (FY) 2015 in the District of Maryland reached $155,566,462.75.  The U.S. Department of Justice keeps statistics on a fiscal year basis, closing the books each September 30.

Attorney General Loretta Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015.  The more than $23 billion in collections in FY 2015 represents nearly seven and a half times the appropriated $2.93 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.           

“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch.  “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver.  I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”

“Thanks to the hard work and dedication of employees of the U.S. Attorney’s Office and our partner agencies, funds recovered far exceed the cost of operating the office,” said Maryland U.S. Attorney Rod J. Rosenstein. “We will continue to hold accountable anyone who seeks to profit from illegal activities.”

According to statistics from the Department of Justice, the U.S. Attorney’s Office for the District of Maryland in FY 2015 collected $136,419,084.26 in criminal debts owed to the U.S. government and to federal crime victims, including restitution, criminal fines and felony assessments. 

The statistics show that the $19,147,378.49 collected in civil actions in Maryland, include affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws, and debts collected on behalf of several federal agencies, including the U.S. Department of Education, Housing and Urban Development, Health and Human Services, Internal Revenue Service, and Small Business Administration.

Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $14,429,540.47 in cases pursued jointly with these offices.  Of this amount $429,088.54 was collected in criminal actions and $14,000,451.93 was collected in civil actions, including cases resolved under the False Claims Act on behalf of victim agencies such as the Department of Health and Human Services, Department of Defense and the Department of Education.  These cases include the successful resolution of United States ex rel. Roman v. Education Affiliates, Inc., United States ex rel Stoneham v. Pole Zero, Inc. and investigations of DRS Technical Services, Inc. and Foundation Health Services, Inc.  Additionally, the District of Maryland collected civil penalties under the Controlled Substances Act on behalf of the Drug Enforcement Administration from its investigation of Value Drug, Inc.

The U.S. Attorneys’ offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, labor and controlled substance laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.           

In addition, the U.S. Attorney’s Office for the District of Maryland, working with partner agencies and divisions, collected $16,708,177 in asset forfeiture actions in FY 2015.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. 

For more information, the Department’s Annual Statistical Reports on prior fiscal years can be found on the internet at: http://www.justice.gov/usao/reading_room/foiamanuals.html.

Baltimore, Maryland – Marat Yelizarov, age 28, of Pikesville, Maryland, pleaded guilty today to conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a home invasion robbery, carjacking and kidnapping.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.         

According to his plea agreement, Yelizarov was part of a conspiracy to rob a Pikesville jewelry store.  In the course of the conspiracy, Yelizarov participated in an armed home invasion robbery designed to obtain firearms for use in the later robbery of the jewelry store.

Specifically, on July 22, 2012, Yelizarov, Zilberman and other conspirators robbed a home in Reisterstown, Maryland.  Zilberman was familiar with the layout of the home, having been there as a guest on a number of occasions.  Zilberman knew that the residents of the home owned firearms and he had handled and fired some of the weapons.  After conducting surveillance of the home for several days prior to the robbery, at 2:30 a.m. on July 22, 2012, Yelizarov, Zilberman and their co-conspirators traveled to the home in Reisterstown.  Dressed all in black and wearing ski masks and latex gloves, Zilberman and his co-conspirators entered the home through the unlocked garage door.  A co-conspirator was armed with a handgun when they entered the residence.  Yelizarov, Zilberman and another conspirator grabbed long guns and carried them throughout the home.  A resident of the home was asleep when the four robbers entered his bedroom and woke him up, pointing guns at him and shining flashlights in his eyes. A co-conspirator beat the resident when he tried to resist while Yelizarov began to tie up the resident with a belt and a cord.  For approximately one hour the robbers ransacked the home looking for firearms and other valuables. After the robbers left, the resident was able to free himself and call police.  The resident was taken to the hospital for treatment of his injuries. Among the items stolen from the house were 10 long guns (rifles and shotguns), a crossbow, a laptop computer and jewelry. Numerous electronic devices including computers and televisions were destroyed during the robbery. The value of the items stolen was approximately $10,000.

A co-conspirator devised a plan to commit an armed robbery of a jewelry store, and recruited Yelizarov, Igor Yasinov, Peter Magnis, Grigoriy Zilberman and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits.  Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee.

According to Yelizarov’s plea agreement, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts.  While the employee was at Zilberman’s home, Yelizarov, Yasinov, Magnis and two other conspirators met at the residence of a sixth conspirator to prepare for the kidnapping and robbery, including preparing the firearms and donning masks and gloves. Yelizarov and one of the conspirators then drove to Zilberman’s home in order to alert the other conspirators of the employee’s departure.  Early in the morning on January 16, 2013, Yelizarov and the other conspirator followed the employee from Zilberman’s home for a while, and then stopped.  Yelizarov was aware that co-conspirators planned to abduct the employee to obtain keys and information to gain entry to and rob the jewelry store. Meanwhile, Yasinov, Magnis and two other co-conspirators driving in a rental car obtained by Yasinov, used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, Yasinov, Magnis and the other co-conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location. Once at the location, Yasinov, Magnis, and the co-conspirators continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., two co-conspirators drove the employee’s vehicle from the remote location to the jewelry store. Yasinov and Magnis stayed with the employee. Yelizarov and another co-conspirator were stationed near the jewelry store to act as “look-outs.”  Two co-conspirators entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location.  The employee was then placed back into the trunk of his car and driven to another location, where he was left.  The employee was able to kick his way out of the trunk through the back seat of his car.

On January 18, 2013, one of the conspirators sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant.  On January 19, 2013, the conspirator traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000.  On January 21, 2013, the conspirator returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. Yelizarov received cash for his role in the crimes.

On January 25, 2013, one of the conspirators was arrested in Buffalo, New York, and contacted Yelizarov, who agreed to assist in cleaning out the conspirator’s residence and disposing of evidence related to the jewelry store robbery, including a gun, laptop computer, ammunition, the GPS device, and other evidence of the crimes.

Yelizarov faces a maximum sentence of 20 years in prison for the robbery conspiracy; a maximum of life in prison for kidnapping; and a minimum mandatory sentence of seven years, and a maximum of life in prison for brandishing a firearm in relation to a crime of violence. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 9, 2016, at 9:30 a.m.

Grigoriy (Greg) Zilberman, age 24, of Owings Mills, Maryland, and Peter Aleksandrov Magnis, age 27, of Hydes, Maryland, and Igor Yasinov, age 26, of Baltimore, previously pleaded guilty to their roles in the robbery conspiracy and are scheduled to be sentenced on December 18, 2015, December 22, 2015, and March 8, 2016, respectively.

United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.

Baltimore, Maryland – A federal grand jury indicted five residents of Maryland on charges arising from a bank fraud scheme:

Monika Michelle Hill, age 36, of Cockeysville, Mark Darnelle Peeples, age 31, of Baltimore, Dorian Maurice Griffin, age 20, of Baltimore, Alysia Samon Rascoe, a/k/a “Alysia Simone Roscoe”, age 26, of Baltimore, and
Christopher Vance McKoy, age 24, of Baltimore.

The indictment was returned on November 12, 2015 and unsealed upon the arrests of three defendants: Hill, who has been detained; Rascoe, who has been released; and McKoy, who is released and scheduled for arraignment on Friday, December 4, 2015 at 10:45 a.m.  Peeples and Griffin remain at large.

The indictment 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 the 18 count indictment, from March 2013 to July 2014, members of the conspiracy would acquire account information and either alter checks to change the payee, or use the information from the check to create counterfeit checks to a new payee. The defendants negotiated fraudulent, stolen, altered and counterfeit checks at branch offices of financial institutions.

The indictment alleges that the defendants created and registered businesses using the identities of others, and opened bank accounts at a bank using the names of these businesses which did not exist other than on paper.  The defendants used the identities of identity theft victims or their own identities as the account signatories.  They deposited fraudulent, stolen, altered and counterfeit checks into these bank accounts, and then withdrew funds from the accounts by writing checks in their own names.

The indictment alleges that during the course of the scheme, the defendants fraudulently obtained or attempted to obtain over $230,000 from the financial institutions and individual victims, and that they actually received more than $170,000.

Finally, the indictment alleges that from September 24, 2013 to July 2014, Hill was on pretrial release in federal court in Baltimore in case no. 13-0248 ELH, when she conspired to commit bank fraud, and committed bank fraud and aggravated identity theft, as described above.  

All of the defendants face a maximum sentence of 30 years in prison for conspiring to commit bank fraud and for bank fraud and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft.  Hill also faces a maximum sentence of 10 years in prison for committing these offenses while on pre-trial release. 

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

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 the Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” age 50, of Keymar, Maryland, today to a year and a day in prison followed by three years of supervised release for two fraud schemes and tax evasion. Judge Motz entered an order requiring Joanne Tucker to pay restitution totaling $2,092, 961, specifically, $1.6 million for employee benefit fraud, and $492,961 to the IRS for tax evasion.  As part of her plea agreement, Tucker will also be required to forfeit $30 million and her residence in Keymar.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Marc I. Machiz, Director of the Philadelphia Regional Office of the Labor Department’s Employee Benefits Security Administration; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Small Business Administration Inspector General Peggy E. Gustafson; and Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations.

According to her plea and court documents, Joanne and her husband, Shaun Tucker, were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation from 2007 to 2010.  Quantell and Intaset provided labor services to federal government agencies.  In 2010, the Tuckers sold Intaset, but continued to influence its operations.

Federal Procurement Fraud

From 2007 to 2013, the Tuckers and their co-conspirators made false representations to the government regarding the eligibility of Quantell and Intaset for small business, Service Disable Veteran Owned Small Business and other set-aside contracts, including the 2007 Camp Lejeune contract, 2007 Battle Creek, Michigan contract, 2008 Andrews Air Force Base contract, 2008 Beale Air Force Base contract, 2011 Langley Air Force Base contract and 2011 Camp Lejuene contract. The Tuckers and their co-conspirators falsely represented the past revenues, ownership, controlling officers, distribution of profits, location and other key attributes of Quantell and Intaset to multiple federal agencies.  When bid protests were lodged by competing firms, the Tuckers and co-conspirators prepared and submitted false responses.  The Tuckers’ actions prevented other companies, which the government meant to support with set-aside contracts, from providing contracting services to the federal government.

The Tuckers used the money from the government contracts for their own personal benefit, including: building, purchasing and leasing a 5,000 square foot residence in Swanton, Maryland; additions to property in Taneytown, Maryland, including a personal residence, gym, bar and break room equipped with high definition TVs, top of the line weight equipment, video games and combat wrestling equipment; additions to their residence in Keymar; a 45 foot sailboat named “Quantell;” 2008 Audi A8; 2011 BMW; and mortgage payments related to real estate, watercraft and vehicles.

The Tuckers and their co-conspirators used aliases and false identities to communicate with the U.S. Department of Defense (DOD) in order to falsely portray the past performance of Quantell.  They created a fake corporate entity named Staff-It with a fake period of performance from 2005 to 2008 involving more than $12 million of work by Quantell for Staff-It, and falsely indicated that Quantell was supplying service workers at military treatment facilities for Staff-It.  Then they created phone lines and had conspirators participate in false phone conversations with DOD representatives so as to deceptively win the 2011 Camp Lejeune contract.  The Tuckers and their co-conspirators carried out similar schemes with respect to other past performances, establishing internet phone lines to spoof the location of businesses, and labeling the phone lines based on the fake company contact person.

As a result of the procurement fraud conspiracy, the full value of the contracts awarded to Quantell and Intaset based on the false representations was at least $30 million.

Employee Benefit Fraud

The service contracts awarded by the United States to Quantell and Intaset, as well as the McNamara-O’Hara Service Contract Act (SCA), required Quantell and Intaset to provide bona-fide health and welfare benefits to their service contract employees hired to work for the federal government. 

Quantell and Intaset had previously used FCE Benefits Administrators, Inc. (FCE) as a third party administrator, to help fulfill their obligations under the SCA.  FCE used the SCA funds to create ERISA Plans for Quantell and Intaset.  In July 2009, Shaun Tucker sent letters to FCE and the trustees of employee retirement plans so that he could obtain approximately $285,000 from the existing retirement plans into which the SCA money had previously been paid. The letters falsely claimed that Quantell and Intaset were transferring money to another health and welfare plan, when in fact the Tuckers knew that the money was instead being transferred into a bank account Joanne Tucker had asked a relative to open.  Joanne Tucker caused such money to be spent on the Tuckers’ vacation home in Western Maryland and other personal benefits.

In a related fraud, the Tuckers lied to employees of Quantell and Intaset, to FCE and to multiple federal agencies, regarding the compliance of Quantell and Intaset with the SCA, so that the Tuckers and their co-conspirators could divert more than $1 million in SCA monies paid by the government to Quantell and Intaset under service contracts for their own personal benefit. The Tuckers and their co-conspirators used shell companies and companies that they were associated with to conceal the diversion of SCA funds to them.  The Tuckers falsely told employees that they would be receiving health and welfare benefits, when in fact the money was being diverted to buy luxury vehicles, and make improvements on the Tuckers’ residences.

As a result of the fraud involving employee benefits, more than $1.6 million of the SCA funds were fraudulently diverted for the co-conspirators’ benefit from at least 350 individual employees.

Tax Fraud

Finally, the Tuckers attempted to evade income tax due of $492,961 for tax years 2009, 2010 and 2011.

Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” age 50, of Keymar, Maryland, previously pleaded guilty to his participation in the fraud schemes and was sentenced on November 20, 2015 to eight years in prison. Judge Motz also entered an order that Shaun Tucker forfeit $30 million and his residence in Keymar; and pay restitution of $1.6 million for the employee benefit fraud, and $492,961 to the IRS for tax evasion.

In a related case, co-conspirator Jonathan Mickle, age 43, of Asheville, North Carolina, formerly of Taneytown, Maryland, pleaded guilty on June 25, 2015 to conspiracy to commit wire fraud and tax fraud in connection with the fraud schemes.  Judge Motz has scheduled sentencing for Mickle for February 19, 2016, at 9:30 a.m.

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

United States Attorney Rod J. Rosenstein commended the U.S. Department of Labor –OIG/Office of Labor Racketeering and Fraud Investigations; IRS – Criminal Investigation; U.S. Department of Labor - Employee Benefits Security Administration; DCIS; SBA Office of Inspector General; and Air Force Office of Special Investigations for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Jason Miskiri, age 40, of Silver Spring, Maryland today to two years in prison followed by three years of supervised release for conspiring to possess with intent to distribute more than 1,000 kilograms of marijuana. Judge Titus also entered an order that Miskiri forfeit all of his interest in Society Lounge.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.           

 According to his plea agreement and court documents, Miskiri obtained marijuana from several sources for distribution in Maryland.  Miskiri was arrested in March 2009 in Texas after purchasing 209 pounds of marijuana that he intended to transport to Maryland.

Miskiri was also the largest customer of a drug trafficking organization headed by Garfield Mullings (Mullings DTO) that shipped large quantities of marijuana from California to Maryland.  On numerous occasions from 2010 to 2012, Miskiri gave money to the Mullings DTO to buy marijuana in California and Arizona, which was shipped using commercial shipping companies to Miskiri in Maryland.  He also received marijuana on consignment, and paid for it once it was sold.  Initially, some of the shipments were sent to Island Flavors Restaurant in Laurel, Maryland, which Miskiri owned and operated.  From August 31, 2010 to May 20, 2011, 8,690 pounds of freight, including marijuana, was delivered to the restaurant.  After May 20, 2011, Miskiri continued to pick up large quantities of marijuana from the Mullings DTO at other locations.

In 2012, Miskiri obtained marijuana from other Texas sources with whom he met in Prince Georges County, Maryland.

Miskiri used the drug proceeds to open the Society Lounge, an upscale nightclub located on Georgia Avenue in Silver Spring, Maryland.

Miskiri did not file a personal tax return for any of the years in which he was engaged in the drug trafficking activity.

During his participation in the drug conspiracy, Miskiri was found to be responsible for the distribution of between 3,000 and 10,000 kilograms of marijuana.

In a separate case, Garfield Mullings, age 41, of Hyattsville, Maryland, and five others previously pleaded guilty to conspiring to distribute 100 kilograms or more of marijuana. U.S. District Judge J. Frederick Motz sentenced Mullings on May 29, 2014 to five years in prison and entered an order that Mullings forfeit $12,190,000.

United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA and the Maryland State Police for their work in the investigation, and thanked the Houston, Texas Police Department and the Texas Department of Public Safety for their assistance.  Mr. Rosenstein thanked Assistant United States Attorneys Matthew C. Sullivan and Evan T. Shea, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Stanley Downey, age 49, formerly of New York, today to 74 months in prison, followed by five years of supervised release, for bank fraud conspiracy and aggravated identity theft, arising from a scheme to use of stolen credit and debit card information to manufacture counterfeit credit cards used to buy merchandise and services. Judge Quarles also entered an order requiring Downey to pay restitution of $126,318.99.

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; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Chief Ross C. Buzzuro of the Ocean City Police Department; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Newport News Police Chief Richard W. Myers; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to his plea agreement, from at least January 1, 2012, through his arrest in August, 2013, Stanley Downey conspired with his brother William Downey, Michael Crew, Navee Diaz, Jason Evans, and others to manufacture counterfeit debit and credit cards bearing stolen and unauthorized credit and debit card account numbers then use the counterfeit cards to purchase goods and services.

Stanley Downey became involved in the scheme through others who knew the leader, Michael Crew, also known as “Black.”  Black had an embossing machine and he made credit cards using altered gift cards and the credit card and debit card numbers of real people.  The stolen card numbers were embossed on the gift cards, along with the name or alias of the person who would be using the cards. 

Stanley Downey admitted that he primarily purchased counterfeit cards from Black, who provided the cards directly or through others, such as Navee Diaz and William Downey.  Stanley Downey purchased a large number of cards and conducted a large number of transactions.  For example, on January 2 and January 4, 2012, Stanley Downey and a co-conspirator used a counterfeit credit card to purchase approximately $5,738.70 in merchandise at a business in Baltimore County.  Stanley and William Downey sometimes traveled together out of state to conduct transactions with the counterfeit credit cards when things got too “hot” in Maryland.  Stanley Downey was traveling with his brother to Pittsburgh when the two of them were stopped by law enforcement outside Cumberland, Maryland on September 12, 2012.  Stanley Downey provided a false name and a counterfeit driver’s license in that name to law enforcement.  At the time of the stop, both William and Stanley Downey had over 60 counterfeit cards in their possession which were embossed with real account numbers belonging to victims and with the names “S Downey” and “W Downey.”

Stanley Downey also traveled with others to various places to use the counterfeit cards.  For example, on October 10, 2012, Stanley Downey and a woman were arrested in Las Vegas and had 48 counterfeit credit cards in their possession, which they had been using to make purchases in Las Vegas and elsewhere.  On August 13, 2103, Stanley Downey was arrested in New York for using counterfeit credit cards.  He was convicted and began serving his sentence, but was subsequently transferred to Maryland to answer to these charges.  

During his participation in the conspiracy, Stanley Downey and his co-conspirators obtained or attempted to obtain extensions of credit from financial institutions of between $400,000 and $1 million, using the financial account numbers of real people.  More than 250 individuals and institutions were defrauded by the scheme. 

Michael Crew, age 55, of Owings Mills, and Jason Evans, age 32, of Millsboro, Delaware previously pleaded guilty to the same charges and were sentenced to nine years in prison and four years in prison, respectively, and were each ordered to pay restitution of $126,318.99.  Navee Diaz, a/k/a India, age 40, of Owings Mills, Maryland was sentenced to 76 months in prison, and was also ordered to pay restitution of $126,318.99.  William Downey, age 43, of Gwynn Oak, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to five years in prison. 

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

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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 the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service; Howard County, Baltimore City, Baltimore County, Howard County, Ocean City and Newport News Police Departments, HSI Baltimore and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Hosie Hopkins, age 49, of Baltimore, today to 10 years in prison followed by three years of supervised release for possession with intent to distribute narcotics. Judge Quarles also entered an order that Hopkins forfeit a semi-automatic handgun and ammunition which Hopkins was prohibited from possessing as a result of two previous drug convictions.

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

According to his plea agreement, on April 22, 2014, Baltimore Police detectives saw Hopkins leave a dwelling in Baltimore City, go to another location in Baltimore City, remove a plastic bag from under his shirt/dip area, and place the bag under a wooden deck at a vacant house.  Thereafter, officers found the plastic bag under the deck, which contained five gelatin capsules of heroin.

Police arrested Hopkins and executed a search warrant at the house Hopkins had left earlier that day.  Police seized packaging material for narcotics including ziplock bags and vials; ziplock bags containing heroin cutting substances; and several gel capsules of heroin.

Additionally, the government stated at sentencing that a firearm was seized by police during the execution of the search warrant.  That firearm was the subject of the Court’s forfeiture order.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Michael C. Hanlon, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Marden Gonzalez, age 20, of Hyattsville, Maryland, today to seven years in prison, followed by three years of supervised release, for carjacking and for being a felon in possession of a firearm. 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Larry M. Brownlee, Sr. of the Maryland National Capital Park Police, Prince George’s County Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to Gonzalez=s plea agreement, on February 17, 2015, at 1:00 p.m. Gonzalez approached the victim, who was stopped at a red light at the intersection of East-West Highway and Ager Road in Hyattsville.  Gonzalez pointed a loaded .380 caliber pistol at the victim and demanded the victim’s car.  The victim got out of the car and Gonzalez got in and drove away in the victim’s car.

A few minutes later, a Maryland Park Police officer spotted the stolen car at the intersection of Queens Chapel and Chillum Roads in Hyattsville.  Park Police and Prince George’s County Police officers pursued Gonzalez through snowy streets.  After sideswiping several parked cars, Gonzalez crashed the victim’s car headfirst into a parked car.  The law enforcement vehicles pursuing Gonzalez slid in the snow when they attempted to brake, resulting in a crash.  Three officers were injured and one was taken to a hospital.  Gonzalez bailed out of the victim’s car and ran away, still carrying the loaded pistol.  Officers located and arrested Gonzalez in the semi-enclosed back porch of a nearby house, and recovered the gun.

Gonzalez had previously been convicted of a felony and as a result, was prohibited from possessing a firearm or ammunition.

United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Maryland National Capital Park Police and the Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Lindsay Eyler Kaplan and William D. Moomau, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles sentenced Richard Alan Blank, Jr., age 44, of LaVale, Maryland, today to 30 years in prison, followed by lifetime supervised release, for two counts of sexually abusing a minor to produce child pornography, and for possession of child pornography. A federal jury convicted Blank on July 2, 2015.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and by Allegany County State’s Attorney Michael O. Twigg, Colonel William M. Pallozzi, Superintendent of the Maryland State Police, Allegany County Sheriff Craig Robertson, Cumberland Police Chief Charles H. Hinnant, Frostburg Police Chief Royce C. Douty, Frostburg University Chief of Police Cindy R. Smith, as part of the Allegany County Combined Criminal Investigations Task Force (C3I).

According to evidence presented at Blank’s four-day trial, on May 30, 2014, Blank used a minor to engage in sexually explicit conduct in order to produce images documenting the sexual abuse of the minor.  A search conducted by law enforcement on June 2, 2014 revealed that Blank possessed images documenting the sexual abuse of the minor female on his cellular phone.

As a result of his conviction, Blank will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

Blank has been detained since his arrest.

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Allegany County Combined Criminal Investigations Task Force (C3I), comprised of the Maryland State Police, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Frostburg University Police Department and Allegany County State’s Attorney’s Office, for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Aaron S. J. Zelinsky, who prosecuted the case.

Baltimore, Maryland – Jarrod Terrell Hazelton, age 32, of Parkville, Maryland, a former employee at the Quarantine Road Landfill (Landfill), pleaded guilty today to conspiracy, and wire fraud, in connection with a scheme to unlawfully sell scrap metal from the Landfill and Northwest Transfer Station (NWTS), while falsely representing to the Baltimore Department of Public Works (DPW) that he was performing his job. 

On November 20, 2015, John Howard Brady, age 74, of Glen Burnie, was convicted after a five day trial of conspiracy and two counts of bribery in connection with a scheme in which Brady and other commercial haulers paid Department of Public Works (DPW) employees cash in return for allowing the haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees.

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; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

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

According to the evidence presented at Brady’s trial, Brady was a commercial trash hauler who owned and operated Brady’s Roll Off Service.  From July 2014, through May 1, 2015, Brady agreed to pay bribes to Tamara Washington, one of the DPW scale house operators, in exchange for she and the other scale house operators, not charging Brady a disposal fee for using the Landfill.  For example, on March 30, 2015, Brady paid a $2,000 cash bribe to Tamara Washington.  The bribes paid to the scale house operators saved Brady thousands of fees each month.  Brady either paid the operator through the outbound window at the scale house, or met the operators at an off-site location where he would pay a week’s worth of bribes or more.  Evidence at trial established that Brady’s company used the landfill dozens of times a year since 2007, resulting in a loss of approximately $560,000 in disposal fees for the City of Baltimore. 

In addition to the revenue generated by the collection of disposal fees, Baltimore City’s waste management system generates revenue by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities, including household appliances, steel cables, copper wires, car parts, computer parts, door and window frames. The City awards contracts to private salvage companies to purchase and remove such scrap metal from its trash collection facilities.  DPW employees at the Landfill and other trash collection sites are required to segregate the recyclable scrap metal from general refuse and place it in separate bins provided by the salvage companies.  The companies regularly pick up the scrap metal, weigh it and send a tonnage report to the City.  Based on predetermined prices per ton, the City sends an invoice to the companies requesting payment for the value of the scrap metal the companies removed during a given period of time. Salvaging by employees, also referred to as “junking,” was strictly prohibited and employees were put on notice that any salvaging of metal constituted theft of City property. 

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 proceeds of the sale of the stolen scrap metal to pay other DPW employees for their help 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 transported the scrap metal, using their personal pick-up trucks, to a private salvage company, frequently making multiple trips during a single, eight-hour work shift.  The sale of the stolen scrap metal for their personal benefit 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 claimed he had been working, when he was instead illegally collecting and selling the scrap metal, resulting in wages being paid to Hazelton for work he did not perform.  

Hazelton and Brady each face a maximum sentence of five years in prison for the conspiracy.  Hazelton also faces a maximum of 20 years in prison for wire fraud, and Brady faces a maximum of 10 years in prison for each of two counts of bribery.  U.S. District Judge Marvin J. Garbis has scheduled sentencing for Brady on February 16, 2016 at 10:00 a.m., and for Hazelton on February 17, 2016 at 11:00 a.m.

Former Baltimore City Department of Public Works (DPW) employees Tamara Oliver Washington and William Charles Nemec, Sr., both age 55; and Michael Theodore Bennett, age 47, all of Baltimore, previously pleaded guilty to their roles in the schemes and are awaiting sentencing.  Five other commercial trash haulers have also pleaded guilty.

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jeong Joon Moon, a/k/a Patrick Moon, age 47, of Germantown, Maryland, today to four years in prison followed by five years of supervised release for conspiring to commit bank fraud, bank fraud and destroying records in a federal investigation, arising from a scheme to defraud financial institutions who loaned money to small businesses.  Judge Quarles also entered an order that Moon forfeit $2,270,590.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; U.S. Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; and Matthew Alessandrino, Assistant Inspector General for Investigations, Federal Deposit Insurance Corporation.

Moon owned and operated JM Capital Solutions, Inc. and RNB Consulting, Inc., which were loan brokerage firms with offices located in Annandale and Springfield, Virginia. These firms specialized in securing loans for individuals to purchase or refinance small businesses in Maryland, Virginia, the District of Columbia and elsewhere.

Moon encouraged prospective borrowers to apply for business loans through the SBA’s Section 7(a) program, which authorizes SBA to help small businesses obtain financing by guaranteeing 75 to 90 percent of qualified loans made by commercial lenders. Small business owners are required to invest a certain amount of their own money into the business before they can qualify for the loan.  Moon compiled and submitted to lenders the documentation necessary to substantiate the borrowers’ equity injection and ability to repay loans guaranteed by SBA, as well as documentation needed for other commercial loans.

From 2006 to April 2014, Moon and others defrauded financial institutions by submitting false copies of the borrowers’ monthly bank statements to reflect more money than was actually in the borrowers’ bank accounts.  Moon and others also prepared and submitted false tax returns for the borrowers which inflated the borrowers’ income. The financial institutions relied on the false information to lend funds to the borrowers, which resulted in loan broker commissions being paid to JM Capital and RNB Consulting.

On July 12 and 15, 2013, Moon altered, destroyed or concealed documents relating to six loans guaranteed by SBA for six small businesses, intending to impede the federal investigation of such loans.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

United States Attorney Rod J. Rosenstein praised the SBA - OIG, U.S. Postal Inspection Service, FBI and FDIC - OIG for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Marty Clarke, who prosecuted the case.

Greenbelt, Maryland – Bertrand Awah Essem, age 27, of Beltsville, Maryland pleaded guilty today to conspiring to commit bank fraud.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge David G. Bowers 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, from October 2010 to July 2012, Essem recruited college students at the University of Maryland Eastern Shore, promising that they could make some easy money.  Essem told the recruits, to open a bank account, obtain a debit card and PIN number associated with that debit card, and provide that information to Essem. Essem told the recruits that money would be transferred into these accounts from The Home Depot.  The recruit would be required to withdraw the majority of the money and give that to Essem.  The recruit could keep a portion, in some cases as much as $300.  

After the recruits, including Stanley Nmesirionye and Dosis Feludu, opened the bank accounts, Essem collected the debit cards and PIN numbers and provided them to another co-conspirator.  

In furtherance of the scheme, a conspirator would order materials with Home Depot stores, supplying a victim’s stolen credit card number that was obtained through other means.  Within a few days, a conspirator canceled the order and requested that the refund be placed on the co-conspirator’s debit card, including the debit card numbers of co-conspirators recruited by Essem,                   

During the course of the fraud scheme, Essem collected $264,757.29 from the co-conspirators he recruited.  From December 13, 2010, to March 2011, a total of 69 refunds from The Home Depot were credited to bank accounts of individuals recruited by Essem.

Co-defendants Godfred Obeng, age 38, of Glen Allen, Virginia; Stanley Nmesirionye, age 24, of Owings Mills, Maryland, and Dosis Feludu, age 25, of Salisbury, Maryland, previously pleaded guilty to their participation in the fraud scheme and await sentencing.

Essem faces a maximum sentence of 30 years in prison and a fine of $1 million.  U.S. District Judge George J. Hazel scheduled his sentencing for February 5, 2016, at 9:00 a.m.

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

United States Attorney Rod J. Rosenstein commended the 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 is prosecuting the case.

Baltimore, Maryland – Heath Unkart, age 26, of Hanover, Pennsylvania pleaded guilty today to theft of government property.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division.

 From August 2014 to July 2015, Unkart was a security guard at SSA headquarters in Woodlawn, Maryland.  According to his agreement to plead guilty to the information, and had the case gone to trial, the government would have proven that Unkart stole electronic equipment, including Polycom audio/video units, an external hard drive, a projector, a camera and other items, from SSA headquarters while he was on duty. Unkart transported the equipment to his home and then placed many of the stolen items for sale on eBay.

For example, on March 30, 2015, Unkart sold three sets of stolen Polycom video conferencing equipment on eBay for $7,500 and on April 16, 2015, he sold an additional two sets of Polycom video conferencing equipment on eBay for $3,000.

On July 17, 2015, law enforcement agents executed a search warrant at Unkart’s home.  They seized numerous items, including two external hard drives, a projector, a Polycom camera, and three additional sets of Polycom conferencing units, all of which were missing from the SSA headquarters campus. In total, approximately $74,296.40 in stolen SSA equipment was recovered.

Unkart faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 4, 2016 at 2:15 p.m.

United States Attorney Rod J. Rosenstein commended the SSA – OIG for its work in the investigation and thanked Special Assistant United States Attorney Lauren E. Perry, on detail from the Social Security Administration, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Sandra Nixon, a/k/a “Lisa Hart,” age 52, of Silver Spring, Maryland today to six months in prison followed by three years of supervised release for conspiring to defraud the United States. Judge Garbis also entered an order requiring Nixon to pay restitution of $750,000.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.

Sandra Nixon was married to co-defendant Mark Nixon.  Mark Nixon was a civilian employee of the Department of Defense, and worked at the U.S. Army Research Laboratories (ARL) in Hampton, Virginia, and Aberdeen, Maryland. From 2008 to December 2010, Nixon was the director of the Vehicle Technology Directorate with ARL at Aberdeen Proving Ground. Co-defendant Kenneth Dawson was a longtime friend of the Nixons.

Sandra and Mark Nixon also had a financial interest and management role in the operation of Motile Robotics, Inc. (MRI), located in Joppa, Maryland; Atlantic Capital Enterprises (ACE); and Arrow Technical Incorporated (ATI).

Sandra and Mark Nixon reached an agreement with Kenneth Dawson to create and operate MRI.  Dawson had full time employment with two different defense contractors that required him to report to work at Eglin Air Force Base in Florida, where he lived.  In 2007, Dawson used his personal credit cards to pay for startup costs associated with MRI, and the Nixons reimbursed Dawson for these expenses.  Although Dawson was the supposed president of MRI, in reality, Sandra and Mark Nixon created MRI, provided significant input regarding its operation, and were in effect a silent and undisclosed partner, owner and co-president.  They helped operate MRI using the aliases “Lisa Hart” and "Paul Martin" in order to conceal their financial interest.

According to their plea agreements, in 2008, Mark Nixon determined that microsystem controls research was needed, including the fabrication of a small open-jet wind tunnel. Mark Nixon created and approved government documents that caused ARL to fund this research, and became the designated team leader for ARL on the research project.

In January 2009, the United States awarded a large defense contractor a task order to construct the open flow wind tunnel from February 2008 to 2011, worth approximately $3.6 million. Mark Nixon persuaded the defense contractor to use MRI as a subcontractor.  Mark Nixon also played an important role in the government awarding the defense contractor another task order to construct a closed circuit wind tunnel from January 2009 to 2011, for approximately $3.5 million, under which MRI was a subcontractor.  Mark Nixon provided the contracting officer with a technical evaluation of the contract and its cost, and acted as the government official overseeing and managing this work on a routine basis.

Pursuant to the conspiracy, the United States was billed for more than $35,000 in false labor charges by a relative of Sandra Nixon, who was characterized as an aerospace engineer.  In reality, the relative was a retired school employee.  Although Mark Nixon knew that he had a prohibited financial interest in MRI, he conducted a technical evaluation of MRI’s capabilities as a subcontractor, and approved the false invoices.

MRI received more than $5 million in federal funds under these task orders. Mark Nixon caused MRI to pay money to ATI, and ATI to pay ACE.  The three defendants personally benefited from over $750,000 sent to these companies. The Nixons personally received more than $400,000 as a result of the task orders awarded to MRI. 

Mark Nixon, age 55, of Silver Spring, Maryland, pleaded guilty on June 15, 2015 to his participation in the conspiracy and was sentenced to 42 months in prison.  Judge Garbis also entered an order requiring Nixon to pay restitution of $750,000.

Kenneth Dawson, age 52, of Niceville, Florida, also has pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on December 15, 2015 at 9:30 a.m.

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

United States Attorney Rod J. Rosenstein commended the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit, DCIS and FBI for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Harry M. Gruber and P. Michael Cunningham, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jesse David Kuchta, age 28, of Manchester, Maryland, today to 30 years in prison, followed by lifetime supervised release, for production and possession of child pornography. Judge Russell ordered that upon his release from prison, Kutcha 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 Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees; and Carroll County State’s Attorney Brian DeLeonardo.

According to Kuchta’s plea agreement, on May 14, 2014, a detective with the Carroll County Sheriff’s Office received a Cybertip from the National Center for Missing and Exploited Children concerning images depicting minors engaged in sexually explicit conduct that had been uploaded to a website.  Law enforcement identified Kuchta as the holder of the website’s accounts. On May 14, 2014, law enforcement executed a search warrant at Kuchta’s residence.

Kuchta arrived home during the search.  He admitted taking the images and videos of a minor female engaged in sexually explicit conduct and uploading them online.  Law enforcement seized a flash drive, two micro SD cards and two cell phones used to produce and possess the child pornography, as well as other items seen in the images and videos that Kuchta produced.

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police, 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 Ayn B. Ducao, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Reuben Benjamin Coleman, age 38, of Capitol Heights, Maryland, today to 130 months in prison followed by three years of supervised release for possessing a firearm in a school zone and possession with intent to distribute crack cocaine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to his plea agreement, on September 25, 2014, ATF Violent Crime Initiative Team agents and Prince George’s County police officers executed a search warrant at a residence in Capitol Heights where Coleman often stayed.  They seized a 9 mm pistol from Coleman’s bedroom, and a small bag containing 8.28 grams of crack cocaine from a Mercedes Benz that Coleman drove and had parked outside the residence.

Coleman admitted that from August 15 to 16, 2014, he transported the pistol to the residence via public roads that he knew or had reasonable cause to believe were within 1,000 feet of a school zone.

Coleman also admitted that he is a career offender based on two prior drug convictions.

United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Joseph R. Baldwin, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Damonan Irby, age 33, of Baltimore, Maryland today to 12 years in prison, followed by three years of supervised release, for possession with intent to distribute 3, 4-methylenedioxy-N-methylcathinone or MDMC.

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

According to Irby’s plea agreement, on October 17, 2014, law enforcement received information from a confidential source of information that a multi-kilogram shipment of the controlled substance 3, 4-methylenedioxy-N-methylcathinone or MDMC, known on the street as “Molly,” would be delivered to Baltimore City later that afternoon.  Information provided by the source was corroborated and independently verified by law enforcement.

Members of the Baltimore Police Department and Homeland Security Investigations, Baltimore, established surveillance in the area of Northern Parkway and Harford Road, where the delivery was scheduled to take place. Law enforcement officers observed a silver Camaro, that matched the description supplied by the source, parked behind a restaurant in the 6600 block of Harford Road.  A short time later, law enforcement observed a vehicle, being operated by Irby, pull into the parking lot and park one car away from the Camaro.  Irby, carrying a grey shopping bag, got into the Camaro.  Law enforcement officers were able to observe the two individuals exchange packages.  At the conclusion of the exchange, Irby got out of the Camaro with a large black backpack in his hand.  Law enforcement officers, believing a narcotics transaction had just occurred, approached Irby and detained him.  The black backpack was found to contain four kilogram sized plastic bags containing an off white substance.  A search of the Camaro recovered the grey shopping bag that Irby had brought into the vehicle.  The bag contained three large bundles of cash, totaling $39,920.  A subsequent lab analysis of the drugs from the backpack revealed that the bag contained a total of 3,970 grams of MDMC.

United States Attorney Rod J. Rosenstein praised HSI Baltimore and Baltimore Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Christopher J. Romano and Jason D. Medinger, who prosecuted the case.

Greenbelt, Maryland – Aldair Garcia-Miranda, a/k/a “Callado” and “Poseido,” age 21, of Wheaton, Maryland, pleaded guilty today to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including a murder; attempted murder in aid of racketeering; and carrying, using, brandishing, and discharging a firearm during a crime of violence.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief Edward G. Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.  MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang and against rival gangs.

According to his plea agreement and court documents, from 2013 through at least 2014, Garcia-Miranda was a member of the Normandie clique of MS-13.  Garcia-Miranda and MS-13 members committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation.

Garcia-Miranda admitted that on November 30, 2013, he and another MS-13 member traveled to Frederick, Maryland, in order kill a person who had fled there from El Salvador when MS-13 in El Salvador had issued an order to kill that person. Garcia-Miranda and the other MS-13 member had in their possession a .380 caliber handgun that belonged to the Normandie clique.  An MS-13 member who had lived in Frederick and was familiar with the victim from El Salvador, communicated with the victim and lured him to a wooded area where Garcia-Miranda and the other MS-13 member met them. The victim was killed after the MS-13 member from Frederick shot the victim with the Normandie clique’s gun and Garcia-Miranda and the other MS-13 member stabbed the victim multiple times.  A .380 caliber bullet that was recovered from the victim during the autopsy matched a bullet recovered at the scene of a November 11, 2012 murder in the Hyattsville, Maryland, area.

Garcia-Miranda also admitted that on July 30, 2014, he and two other MS-13 members approached three people walking in the area of 30th Avenue in Hyattsville, Maryland.  Garcia-Miranda and other MS-13 members had traveled to that area with guns to search for and shoot suspected rival gang members who had harassed and tried to steal the bicycle of a person who was a friend of MS-13.  Garcia-Miranda and an MS-13 associate, each armed with a .380 caliber handgun, fired multiple shots at the three victims, striking one victim seven times and another victim once.  Five shell casings collected at the scene were fired from the same gun that fired the casings recovered at other crime scenes, including murders in Hyattsville on November 11, 2012 and February 28, 2013.

Garcia-Miranda faces a maximum sentence of life in prison for the racketeering conspiracy because it included a murder; a maximum of ten years in prison for attempted murder in aid of racketeering; and a mandatory minimum of 10 years and up to life in prison, consecutive to any other sentence, for using, carrying, brandishing and discharging a firearm during a crime of violence.  U.S. District Judge Peter J. Messitte has scheduled sentencing for February 24, 2016, at 9:30 a.m.

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

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced James Maurice McCants, age 42, of Baltimore, today to 92 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute crack cocaine.  Co-defendants Eddie Eusebio Mateo, age 31, of Pikesville, Maryland, cocaine and Robert Bookhamer, age 37, of Baltimore, pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine.  Mateo entered his plea today and Bookhamer entered his plea on November 17, 2015.

The sentence and guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Anne Arundel County Police Chief Tim Altomare.

According to McCants’ and Mateo’s plea agreements, from at least May 2013 through July 23, 2014, they were members of a conspiracy to distribute cocaine and crack cocaine in Baltimore and Anne Arundel County, Maryland.  Bookhamer was a member of the conspiracy from March to June 2014.  Other members of the conspiracy included Alex Raymond Valerio, Moises Rosario, Joseph Melendez, Keith Joseph Herring, Dartanon Antione Gaines, and others. 

According to their plea agreements McCants, Mateo and Bookhamer obtained cocaine from Valerio, Rosario and others.  McCants also obtained heroin from Valerio.  McCants and Bookhamer sold the drugs obtained from Valerio to their own customers, while Mateo distributed the drugs on behalf of Valerio to several of the conspiracy’s customers on behalf of Valerio. The conspirators were intercepted in telephone calls and text messages discussing their drug trafficking activities.  Law enforcement also observed the defendants meeting with Valerio to conduct drug transactions.

On May 20, 2014, investigators conducted a traffic stop of McCants’ vehicle after he had met with Valerio at Valerio’s residence.  Law enforcement recovered approximately 42.2 grams of crack cocaine from McCants’ front waistband area, which he admitted purchasing from Valerio.

On July 23, 2014, investigators executed a search warrant at Bookhamer’s home in Baltimore and recovered: $7,108 in cash; plastic bags with approximately 22 grams of cocaine; drug paraphernalia and packaging materials; a .45 caliber handgun with two magazines; a rifle with a large capacity magazine; a box of .45 caliber ammunition; and multiple cell phones.

On that same day investigators also executed a search warrant at Mateo and Rosario’s home in Pikesville, as well as a home in Glen Burnie, frequented by Mateo and utilized by Valerio to store and distribute drugs to other members of the conspiracy. At the Pikesville home investigators located: a six ton shop press, a dye press, five bundles of heroin (totaling approximately 11.7 grams), scales with cocaine reside, marijuana seeds, and twenty marijuana plants.  In the Glen Burnie home law enforcement recovered: two hydraulic presses; spoons with cocaine residue; drug paraphernalia including cutting agent and packaging material; a hand press; approximately 30.9 grams of cocaine; and $24,000 in cash.

McCants admitted that during his participation in the conspiracy, he conspired to distribute between 280 and 840 grams of crack cocaine.  Mateo and Bookhamer admitted that they were responsible for the distribution of between 500 grams and two kilograms of cocaine. 

Co-defendants Alex Raymond Valerio, age 35, of Glen Burnie; Moises Rosario, age 33, of Pikesville, Maryland; Joseph Melendez, age 28, of Brooklyn, New York; Keith Joseph Herring, age 27, of White Marsh, Maryland; and Dartanon Antione Gaines, age 36, of Owings Mills, Maryland,  previously pleaded guilty to their roles in the drug conspiracy.  Rosario was sentenced to two years in prison and the others are awaiting sentencing.  Three other defendants are pending trial.

Bookhamer and Mateo each face a maximum sentence of 20 years in prison.  Judge Motz has scheduled sentencing for Mateo on February 2, 2016 and for Bookhamer on March 11, 2016.

United States Attorney Rod J. Rosenstein commended the DEA and Anne Arundel County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” age 50, of Keymar, Maryland, today to eight years in prison followed by three years of supervised release in connection with defrauding the United States of over $30 million in obtaining government contracts, stealing over $1.6 million in employee benefits and evading taxes.  Judge Motz also entered an order that Shaun Tucker forfeit $30 million and his residence in Keymar; and pay restitution of $1.6 million for the employee benefit fraud, and $492,961 to the IRS for tax evasion.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Marc I. Machiz, Director of the Philadelphia Regional Office of the Labor Department’s Employee Benefits Security Administration; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Small Business Administration Inspector General Peggy E. Gustafson; and Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations.

“Shaun Tucker’s criminal actions deprived the federal contract employees of Quantell and Intaset of rightfully earned benefits under the Service Contract Act,” stated Special Agent in Charge Steven D. Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.  “This sentencing sends a clear message that this type of criminal activity is reprehensible and will be aggressively prosecuted.”

“Today's sentencing action brings an appropriate conclusion to a twisted web of lies, deceit, and greed,” said Robert Craig, Special Agent in Charge for the DCIS, Mid-Atlantic Field Office.  “For individuals to line their pockets and purchase lavish material goods through fraudulent contracts at the expense of disabled veterans and while our soldiers are in harm's way is both incomprehensible and completely unacceptable. DCIS and its law enforcement partners remain committed to bringing these unscrupulous individuals to justice and restoring faith in the government's contracting system.”

According to his plea and court documents, Shaun Tucker and his wife Joanne were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation from 2007 to 2010.  Quantell and Intaset provided labor services to federal government agencies.  In 2010, the Tuckers sold Intaset, but continued to influence its operation.

Federal Procurement Fraud

From 2007 to 2013, the Tuckers and their co-conspirators made false representations to the government regarding the eligibility of Quantell and Intaset for small business contracts, Service Disabled Veteran Owned Small Business contracts and other set-aside contracts, including: the 2007 Camp Lejeune contract; 2007 Battle Creek, Michigan contract; 2008 Andrews Air Force Base contract; 2008 Beale Air Force Base contract; 2011 Langley Air Force Base contract; and 2011 Camp Lejuene contract. The Tuckers and their co-conspirators falsely represented the past revenues, ownership, controlling officers, distribution of profits, location and other key attributes of Quantell and Intaset to multiple federal agencies.  When bid protests were lodged by competing firms, the Tuckers and co-conspirators prepared and submitted false responses.  The Tuckers’ actions prevented other companies, which the government meant to support with set-aside contracts, from providing contracting services to the federal government.

The Tuckers used the money from the government contracts for their own personal benefit, including: building, purchasing and leasing a 5,000 square foot residence in Swanton, Maryland; additions to property in Taneytown, Maryland, including a personal residence, gym, bar and break room equipped with high definition TVs, top of the line weight equipment, video games and combat wrestling equipment; additions to their residence in Keymar; a 45 foot sailboat named “Quantell;” 2008 Audi A8; 2011 BMW; and mortgage payments related to real estate, watercraft and vehicles.

The Tuckers and their co-conspirators used aliases and false identities to communicate with the U.S. Department of Defense (DOD) in order to falsely portray the past performance of Quantell.  They created a fake corporate entity named Staff-It with a fake period of performance from 2005 to 2008 involving more than $12 million of work by Quantell for Staff-It.  They falsely indicated that Quantell was supplying service workers at military treatment facilities for Staff-It.  Then they created phone lines and had conspirators participate in false phone conversations with DOD representatives so as to deceptively win the 2011 Camp Lejeune contract.  The Tuckers and their co-conspirators carried out similar schemes with respect to other past performances, establishing internet phone lines to spoof the location of businesses, and labeling the phone lines based on the fake company contact person.

The Tuckers admit that as a result of the procurement fraud conspiracy, the full value of the contracts awarded to Quantell and Intaset based on false representations was at least $30 million.

Employee Benefit Fraud

The service contracts awarded by the United States to Quantell and Intaset, as well as the McNamara-O’Hara Service Contract Act (SCA), required Quantell and Intaset to provide bona-fide health and welfare benefits to the service contract employees of Quantell and Intaset hired to do the work for the federal government.

Quantell and Intaset had previously used FCE Benefits Administrators, Inc. (FCE) as a third party administrator, assisting Quantell and Intaset in fulfilling their obligations under the SCA.  FCE used the SCA funds to create ERISA Plans for Quantell and Intaset.  In July 2009, Shaun Tucker sent letters to FCE and the trustees of employee retirement plans so that he could obtain approximately $285,000 from the existing retirement plans into which the SCA money had previously been paid. The letters falsely claimed that Quantell and Intaset were transferring money to another health and welfare plan, when in fact the Tuckers knew that the money was instead being transferred into a bank account Joanne Tucker had asked a relative to open.  Joanne Tucker caused such money to be spent on the Tuckers’ vacation home in Western Maryland and other personal benefits. 

In a related fraud, the Tuckers lied to employees of Quantell and Intaset, to FCE and to multiple federal agencies, regarding the compliance of Quantell and Intaset with the SCA, so that the Tuckers and their co-conspirators could divert more than $1 million in SCA monies paid by the government to Quantell and Intaset under service contracts for their own personal benefit. The Tuckers and their co-conspirators used shell companies and companies that they were associated with to conceal the diversion of SCA funds to them.  The Tuckers falsely told employees that they would be receiving health and welfare benefits, when they knew in fact that the money was being diverted to buy luxury vehicles, and make improvements on the Tuckers’ residences.

As a result of the fraud involving employee benefits, more than $1.6 million of the SCA funds was fraudulently diverted for the co-conspirators’ benefit from at least 350 individual employees.

Tax Fraud

Finally, the Tuckers attempted to evade income tax due of $492,961 for tax years 2009, 2010 and 2011.

Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” age 50, of Keymar, Maryland, previously pleaded guilty to her participation in the fraud schemes.  Joanne Tucker and the government have agreed that if the Court accepts her plea agreement, she will be sentenced to between six and 18 months in prison.  Joanne Tucker further agrees to pay forfeiture of at least $20 million, and forfeit her residence in Keymar.  Joanne Tucker also agreed to pay restitution of at least $1.6 million in connection with the employee benefit fraud, and $492,961 to the IRS for tax evasion.  Judge Motz has scheduled sentencing for Joanne Tucker for December 3, 2015, at 9:30 a.m.

In a related case, co-conspirator Jonathan Mickle, age 43, of Asheville, North Carolina, formerly of Taneytown, Maryland, pleaded guilty on June 25, 2015 to conspiracy to commit wire fraud and tax fraud in connection with the fraud schemes.  Judge Motz has scheduled sentencing for February 19, 2016, at 11:00 a.m.

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

United States Attorney Rod J. Rosenstein commended the U.S. Department of Labor –OIG/Office of Labor Racketeering and Fraud Investigations, IRS – Criminal Investigation, U.S. Department of Labor - Employee Benefits Security Administration, DCIS, SBA Office of Inspector General, and Air Force Office of Special Investigations for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Krist Koranteng, age 34, of Burtonsville and Laurel, Maryland, today to 33 months in prison, followed by three years of supervised release, for a mail and wire fraud conspiracy, and for money laundering, in connection with a scheme in which the conspirators pretended to be romantically interested in the victims in order to cause the victims to send money to Koranteng’s business.  Koranteng was also sentenced to five months in prison, consecutive to the fraud sentence, for violating his supervised release related to a previous federal drug conviction. Judge Grimm also entered an order requiring Koranteng to pay restitution of $1,171,657, which represents the full amount of the victims’ losses.

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

According to his plea agreement, between September 2012 and February 2014, Koranteng and others executed a scheme in which the conspirators searched online dating websites to initiate romantic relationships with men and women, including several elderly individuals, in order to obtain money from those individuals.  Members of the conspiracy used phone calls, emails, and text messages to form romantic relationships with the victims. 

According to the plea agreement, to execute the scheme, the conspirators used a number of false stories and promises to convince the victims to give money to the members of the conspiracy, including: stories about investing in fake gold that required payments for shipping and storage; fictitious sick family members who needed money; fake hospital bills; and fake plane trips to visit the victims.  Members of the conspiracy convinced the victims to mail checks to Kristsons LLC, a corporation that Koranteng created and controlled, or to wire money into bank accounts held in the name of that corporation, which Koranteng also controlled.

To conceal the scheme from the victims, the conspirators created false documents, including false certificates of origin certifying the existence of gold bars, and false documentation creating the impression that the gold bars were being stored at a safe house for a fee.  

Koranteng disbursed the money that he received from the victims by transferring money to other accounts, by withdrawing sums of money, and by writing checks to other individuals.  For example, on May 30, 2013, Koranteng transferred by wire $39,039.88 from one of his business’ bank accounts to another account, with the knowledge that the transaction involved the proceeds of a criminal offense.

Koranteng was regularly in communication with his co-conspirators immediately following a victim’s transfer of money into Koranteng’s business bank accounts. For example, on February 20, 2013, a victim transferred $25,000 into Koranteng’s business bank account in Maryland.  That same day, Koranteng’s co-conspirator sent an email to Koranteng that included two attachments: a receipt for that victim’s wire transfer; and a purported agreement indicating the victim believed she was investing in gold bars by transferring the money to Koranteng. 

In addition to receiving money from the victims during the conspiracy, Koranteng also used a false name to order and send roses to one victim. Shortly thereafter, that victim mailed a check in the amount of $65,000 to Koranteng’s business in Maryland, which Koranteng deposited.

Koranteng’s participation in the wire and mail fraud conspiracy violated the terms of his supervised release for a 2013 conviction for conspiracy to distribute and possess with intent to distribute heroin.

United States Attorney Rod J. Rosenstein praised the FBI, U.S. Secret Service and Montgomery County Police Department for their work in the investigation, and thanked the Ohio Attorney General’s Office for its assistance.  Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and David I. Salem, who prosecuted the case.

Greenbelt, Maryland – Carlos Arnulfo Chacon Chacon, age 42, of Laurel, Maryland pleaded guilty today to charges arising from a fatal car crash in which the victim died after being in a coma for eight months.

The guilty plea 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 his plea agreement, at about midnight on February 1, 2014, Chacon Chacon was driving a Toyota Celica northbound on the Baltimore-Washington Parkway. Two motorists noticed that he was driving erratically, weaving across the road and leaving the travel lanes as he went onto the shoulder.  They called 911.  As one of the witnesses was speaking with the 911 operator, Chacon Chacon crashed his car into a Mitsubishi traveling northbound in the right lane, on a straight area of the highway.

The Mitsubishi went over a stone wall and then went airborne, striking a tree and causing its roof to collapse down into the passenger compartment.  Chacon Chacon’s car struck the stone wall, spun around, and struck the stone wall a second time, finally coming to rest partially in the highway, perpendicular to oncoming traffic.

At the accident scene, Chacon Chacon was able to walk away from his vehicle and spoke with police and emergency medical technicians.  He twice declined medical treatment and admitted to drinking six beers shortly before driving.  He was under the influence of alcohol.  A case of beer was in the back seat of his car. His car was not insured. 

Emergency medical services cut open the Mitsubishi and extracted the driver who sustained extreme head trauma and experienced cardiac arrest.  The driver remained hospitalized in a coma for nearly eight months and died on September 22, 2014.

Chacon Chacon faces a maximum sentence of one year in prison for manslaughter by vehicle – criminal negligence, and six months in prison for driving under the influence of alcohol, driving an uninsured vehicle, reckless driving failure to drive in a single lane.   U.S. District Judge Paul W. Grimm has scheduled sentencing for February 18, 2016.

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 Gustav William Eyler, of the U.S. Justice Department, who are prosecuting the case.

Baltimore, Maryland – Greg Ramsey, age 54, and his niece, Tyesha Towanda Roberts, age 37, both of Baltimore, have been charged by criminal complaint with conspiracy to obstruct and impede a federal investigation. Ramsey is also charged with malicious destruction of property by fire.  The charges arise from a scheme to impede a federal investigation into the arson of a building and two automobiles on August 26, 2013.  The criminal complaint was issued on November 9, 2015 and unsealed upon the arrest of the defendants.

The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Maryland State Fire Marshal Brian Geraci.   

According to the affidavit filed in support of the criminal complaint, Ramsey was employed by an individual who pleaded guilty to use of fire to commit a federal felony, wire fraud and malicious destruction of a property by fire, in connection with the August 26, 2013, arson of a home and two vehicles in the area of Walbrook Avenue in Baltimore.  During the investigation, phone records showed that a cellular phone used by Ramsey was in the vicinity at the date and time the fires were set and that he was in frequent contact with his employer during that time frame.  Ramsey was not aware of his former employer’s guilty plea. 

According to the criminal complaint, from September through November, 2015, Ramsey had several discussions with his former employer concerning how to shift the blame for the fires to another former employee.  Ramsey offered to have Roberts, whom he referred to as his sister, falsely testify and provide an alibi for Ramsey’s employer.  In addition, Ramsey offered to have someone kill a witness to prevent that witness from testifying at trial.  Roberts confirmed that she was willing to offer false testimony, and took $1,000 from a confidential source, as an initial payment.  On November 2, 2015, Ramsey and Roberts met with Ramsey’s former employer to discuss the particulars of Roberts’ false testimony.  Ramsey offered to plant his cell phone at the former employee’s residence whom they had previously discussed setting up for the arson.  During a discussion about possibly killing any witness testifying for the prosecution, Roberts offered that she knew people who would be willing to commit such a murder.

Ramsey and Roberts each face a maximum sentence of 20 years in prison for conspiring to impede a federal investigation.  Ramsey also faces a mandatory minimum sentence of five years and up to 20 years in prison for malicious destruction of property by fire.  Roberts was arrested late yesterday and had an initial appearance this afternoon before U.S. Magistrate Judge Beth P. Gesner in U.S. District Court in Baltimore.  She was detained pending a detention hearing scheduled for November 24, 2015.  Ramsey was arrested and had his initial appearance on November 13, 2015.  He was ordered to be detained pending trial.

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

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Maryland State Fire Marshal’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.

Baltimore, Maryland – Rashad Robertson, age 25, of Baltimore, pleaded guilty today to unlawful possession of Alprazolam, a prescription drug stolen during the looting on April 27, 2015 from the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore (CVS Pharmacy).

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Commissioner Kevin Davis of the Baltimore Police Department; and Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.

“Federal law enforcement agencies continue to work closely with local police and prosecutors to investigate crimes committed during the Baltimore riots,” said U.S. Attorney Rod Rosenstein.

On April 27, 2015, the CVS Pharmacy was looted and burned. According to his plea agreement, on June 17, 2015, Robertson unlawfully possessed a bottle of Aprazolam that he knew was stolen from the CVS Pharmacy during the April 27 riots.  The bottle contained 60 pills of Alprazolam and was found in Robertson’s bedroom.  Robertson did not have a prescription for the pills.

Robertson faces a maximum sentence of one year and a $1,000 fine. U.S. District Judge Ellen L. Hollander scheduled sentencing for January 22, 2016, at 10:00 a.m.

On November 17, 2015, Raymon Carter, age 24, of Baltimore, was sentenced to four years in prison for the federal crime of rioting on April 27, 2015, including the arson of the same CVS.  Judge Hollander also entered an order requiring Carter to pay restitution of $500,000.

On September 23, 2015, Robert “Meech” Tucker, age 23, of Baltimore, pleaded guilty in federal court to being a felon who possessed a gun on May 4 near the CVS Pharmacy that was burned during street riots the previous week.  A citizen notified police officers that a man was armed with a handgun in the Penn-North section of Baltimore. When approached by police officers, Tucker threw a loaded gun on the ground and it fired.  He then pretended to be injured. His actions incited misguided bystanders who attacked innocent police officers.

A federal grand jury has indicted Darius Raymond Stewart, age 21, of Baltimore, for malicious destruction of real property by fire, arising from the arson of a liquor store on West North Avenue during the April 27 riots.  A federal grand jury has also indicted Donta Betts, age 19, of Baltimore, for attempted arson of a police cruiser, obstructing law enforcement officers during a civil disorder and making a destructive device during the April 27 riots near the CVS Pharmacy.  Stewart and Betts have pleaded not guilty, and both remain detained.  An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

The federal crime of rioting, governed by Section 2101 and 2102 of Title 18 of the United States Code, applies when a defendant travels across a state line or uses a facility of interstate commerce, including a telephone, to participate in a civil disturbance involving acts of violence.

United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department and ATF for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Seema Mittal, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Nick Hornberger, age 47, of Baltimore, today to 11 years in prison followed by three years of supervised release for three counts of robbery.  Judge Bennett also entered an order requiring Hornberger to pay restitution of $612.

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

According to his plea agreement, on March 5, 2014, from 12:40 a.m. to 2:35 p.m. Hornberger robbed the following five stores, stealing a total of $162 from four of these stores:

Royal Farms, Dundalk Avenue, Baltimore County; Royal Farms, O’Donnell Street, Baltimore City; 7-11, Eastern Boulevard, Baltimore County; 7-11, Wise Avenue, Baltimore County; and
Dunkin Donuts, Kenwood Avenue, Baltimore County.

The following day, Hornberger robbed a pizza restaurant on Holabird Avenue in Baltimore County of $450.

In each robbery, the cashier or employee from whom Hornberger demanded money believed that Hornberger had a weapon, or was pointing a gun or assault rifle from inside of a white plastic bag.  Following his arrest, Hornberger identified himself in photos taken from video surveillance at each robbery.  A search warrant was executed at Hornberger’s motel room and a car used in the robberies.  Law enforcement seized a toy black assault style rifle stuffed inside a white plastic bag.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments and Baltimore City and County State’s Attorney’s Offices for their work in the investigation.  Mr. Rosenstein thanked Special Assistant United States Attorney Piper F. McKeithen, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, and Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Clarence Shipley, age 27, of Baltimore, to 70 months in prison, followed by three years of supervised release, for a racketeering conspiracy in connection with Shipley’s participation in the UDH organization, which operates in the Cherry Hill section of Baltimore.

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

According to his plea agreement, Shipley is 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.

Shipley admitted that as a UDH member he distributed heroin in the Giles/Fisk/Slater area of the UDH section of Cherry Hill. During his participation in the UDH drug conspiracy Shipley was responsible for distributing between 700 grams and one kilogram of heroin.   

In addition, Shipley participated in two bank robberies with fellow UDH members.  On July 19, 2011, Shipley and other UDH members robbed the Chesapeake Bank of Maryland branch located in the2200 block of Eastern Avenue in Baltimore.  On August 5, 2011, Shipley, Bryan Turner, and other UDH member robbed the Chesapeake Bank of Maryland branch in Arbutus.  In each robbery Shipley served as the getaway driver, while other gang members went into the bank and presented the teller with a note demanding money.  Shipley and his associates stole a total of $11,405, in the two robberies, which was later divided between Shipley and the other UDH members who participated in the robberies, including Bryan Turner. 

Defendants charged in the racketeering conspiracy - including others who are alleged to have participated in these bank robberies - are scheduled to go to trial on April 4, 2016.

Bryan Turner, age 29, of Baltimore, previously pleaded guilty to his role in the conspiracy and was sentenced to 15 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 and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Gerald Lee Banks, age 40, of Baltimore, today to 12 years in prison, followed by five years of supervised release, for conspiracy to commit sex trafficking by force, fraud and coercion.  Judge Bredar also ordered that upon his release from prison Banks will also be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to Banks’ plea agreement, from September through May 2013, Banks conspired with Travis Lamont Foote, a/k/a “Cash,” to commit sex trafficking by force, fraud, and coercion.

For example, in September 2012, Jane Doe 1, an 18 year old woman living in Florida, had dropped out of high school and was trying to get back into school or find employment. Foote contacted Jane Doe 1 on Facebook, using a female online identity he created, “Cash Treasure,” and told Jane Doe 1 that “she” knew someone who would be able to assist her.  Foote then reached out to Jane Doe 1, as a friend of “Cash Treasure,” and lured her to Baltimore stating that he could help Jane Doe 1 to get back into high school and get a diploma. After Jane Doe 1 agreed, Foote paid for an airline ticket for Jane Doe 1 to fly from Florida to Baltimore sometime in September.

Banks and Foote met Jane Doe 1 at the airport and drove her to a motel in Catonsville, where they had rented four rooms, three of which were occupied by other females.  It was then that Jane Doe 1 learned that Banks and Foote were running a prostitution business and that they expected Jane Doe 1 to work for them.  At first Jane Doe 1 refused, but eventually she began having sex with men for money, with all of the proceeds going to Banks and Foote.

During this time of the conspiracy, Banks and Foote used internet websites to advertise the women who worked for them, including Jane Doe 1, as available for prostitution. All of the proceeds were paid to Banks and Foote.  On November 14, 2012, an undercover detective from the Baltimore County Police Department Vice Unit scheduled a “date” with one of the prostitutes advertised by Banks and Foote.  The undercover detective met the woman at the agreed upon time and place and she was arrested.  Jane Doe 1 was also arrested and officers located and attempted to arrest Foote but he struggled and ran away.

On May 16, 2013, a Baltimore County Police officer conducted a traffic stop of a vehicle being operated by Banks, with Foote and an 18 year old female, Jane Doe 2, as passengers in the car.  Banks, Foote and Jane Doe 2 were arrested when officers recovered a plastic bag containing 16 smaller bags of crack cocaine.  Jane Doe 2 was listed in police records as a possible runaway and investigation showed that Jane Doe 2 began working as a prostitute for Banks and Foote in April 2013.  As a result of internet advertisements placed by Banks and Foote, Jane Doe 2 had approximately 100 “dates” with men to engage in commercial sex acts and all of the proceeds were paid to Banks.  Jane Doe 2 told law enforcement that earlier in May 2013, Foote beat and choked her when she tried to leave the motel after refusing a request from one of the men.  Banks stopped Foote from choking her, but was aware that Foote physically forced Jane Doe 2 back to the hotel room.

Shortly after his arrest on May 16, 2013, Banks made bail and was released.  Banks did not attend further court proceedings and an arrest warrant was issued in October 2013.  On January 9, 2014, federal charges were filed against Banks, who evaded authorities until his arrest in October 2014. Banks has been detained since his arrest.

Travis Lamont Foote, a/k/a “Cash,” age 31, of Baltimore, previously pleaded guilty to his role in the sex trafficking conspiracy and was sentenced to 12 years in prison.

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

Baltimore, Maryland – Derek Lamar Tompkins, age 20, of Upper Marlboro, Maryland pleaded guilty today to bank robbery and forcing a bank employee to accompany him without the employee’s consent; and to brandishing a firearm during a crime of violence.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief Timothy Bozman of the Princess Anne Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; and Chief James W. Johnson of the Baltimore County Police Department.

According to Tompkins’ plea agreement, from February through August 2014, Tompkins robbed three banks, stealing a total of $164,615.05. 

Specifically, on February 11, 2014, Tompkins entered the BB&T Bank in Princess Anne, Maryland, and passed the teller a note that read, “I have been watching you, I know you have $10,000 in cash.  Give me the money or I will shoot you or kill you.”  Fearing for her safety, the teller emptied her drawer, handing $1,539.05 to Tompkins who fled the bank.

On May 21, 2014, Tompkins and a second robber entered the M&T Bank located in Largo, Maryland.  The robbers went to the victim employee’s office and demanded money and told her that they had a weapon.  After the victim told them that she did not have any money, they ordered her to open the door to the teller line.  Tompkins and the other robber demanded money from two victim tellers, and ordered them to open a small safe. Tompkins and the second robber took approximately $84,120, and fled the bank. 

On August 18, 2014, Tompkins and a second robber entered the First Mariner Bank in Owings Mills, Maryland, wearing masks and hoods.  Tompkins was wielding a 9 mm handgun, which he and the second robber passed brandished as they passed the gun back and forth between them.  The robbers ordered the tellers to open their drawers, and Tompkins ordered one of the employees, at gun point, to get the key and move to the area where the vault was located.  Once at the vault, Tompkins ordered her to open the vault and then he removed cash from the vault.  Tompkins and the second robber then ordered the bank employees into the vault and closed the door.  The robbers fled the bank in two separate vehicles with $78,956 of the bank’s money.

Police in the area were able to identify and stop the vehicle Tompkins had fled in on August 18.  From the vehicle, officers located a large amount of cash (with First Mariner straps), the 9 mm handgun used during the robbery, as well as clothes, a pair of gloves, a mask, and two hooded sweatshirts, all of which matched the description of the items worn during the armed bank robbery.  After being advised of his rights, Tompkins admitted that he participated in the armed robbery of the First Mariner, that he had entered with the handgun, and that he was the one who had entered the vault with the victim employee to get the money.  

A subsequent trace of the 9 mm handgun showed that it had been stolen from an off duty Metropolitan (DC) Police Officer in Washington, DC, on May 6, 2014. 

Tompkins faces a minimum sentence of 17 years in prison, and up to life in prison for forcing the employee to accompany him during the bank robbery and for brandishing a firearm during the robbery.  U.S. District Judge James K. Bredar has scheduled sentencing for February 16, 2016 at 11:00 a.m.

United States Attorney Rod J. Rosenstein commended the FBI, Princess Anne Police Department, Prince George’s County Police Department, and the Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok and Aaron S. J. Zelinsky, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Raymon Carter, age 24, of Baltimore, Maryland, today to four years in prison, followed by three years of supervised release, for the federal crime of rioting on April 27, 2015, including the arson of the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore.  Judge Hollander also entered an order requiring Carter to pay restitution of $500,000.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Maryland State Fire Marshal Brian Geraci.

“Ordinary citizens concerned about their neighborhood helped to catch Raymon Carter after he participated in the riot on April 27, 2015,” said U.S. Attorney Rod J. Rosenstein. 

According to his plea agreement, on April 27, 2015, Carter used a telephone to discuss his plans to go to the scene of the riots that erupted across Baltimore following the funeral of Freddie Gray.  Carter walked to the area of North and Pennsylvania Avenues, in the vicinity of the CVS Pharmacy located at 2509 Pennsylvania Avenue, where he was captured on video watching the rioting activity around him, including rioters setting small fires.

Looters broke through the main doors of the CVS and began removing merchandise and pharmaceuticals.  Surveillance video shows Carter entering the CVS at 5:28 p.m. Carter used an open flame to illuminate the pharmaceuticals on the shelves. At 5:30 p.m. the video shows Carter unsuccessfully attempting first to move, and then to open, the pharmaceutical safe.

Carter is then seen on surveillance video going to and from the southeast corner of the sales floor – which the investigation showed was the area of origin of the fire - three separate times between 6:15 p.m. and 6:19 p.m.  Carter admitted that his intent was to start a fire and that he used paper products from that area of the store to set the fire.  At 6:19:34 p.m., the third time Carter is seen going to that corner of the store, he moves out of camera view, behind the shelves. Carter’s efforts to light a fire were successful and at 6:19:57 p.m. a flash of light can be seen on the video.  After the flash of light, Carter reappears on the surveillance video from behind the shelves and is seen running away from the area toward the CVS exit.  Flames in the southeast corner of the store become visible on the surveillance video at 6:22:19 p.m.  Fourteen seconds later Carter is seen walking towards the exit while looking back at the fire, and the looters are seen running toward the exit.  No other individual is seen on the surveillance video in the area of the fire from the time of the flash of light until Carter exits the store. 

The Baltimore Fire Department was called to the CVS at 6:28 p.m.  When firefighters arrived at the store, heavy smoke was seen venting from the main entry doors and the roof.  The Baltimore Police Department established riot lines in an attempt to control the crowds while the firefighters worked to extinguish the fire. 

Carter was subsequently identified by citizens after the ATF released two still photographs from the surveillance videos to the media and announced a $10,000 reward for information leading to the suspect’s identification, arrest and conviction.  On June 29, 2015, the ATF released a wanted poster for Carter and received a hotline tip on July 1, 2015 concerning Carter’s location.  ATF agents located, and after a foot chase, arrested Carter.  At the time of his arrest, Carter had little in his pockets except two black lighters. The total loss for the building alone as a result of the fire is estimated at $1.1 million.

The federal crime of rioting, governed by Section 2101 and 2102 of Title 18 of the United States Code, applies when a defendant travels across a state line or uses a facility of interstate commerce, including a telephone, to participate in a civil disturbance involving acts of violence.

The investigation into this and other 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.

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Maryland State Fire Marshal’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Sandra Wilkinson, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Rolf Ramelmeier, age 79, of Sykesville, Maryland today to two years in prison followed by three years of supervised release for mail fraud and money laundering in connection with a 10 year scheme to defraud Northrop Grumman Corporation.  Judge Motz also entered an order requiring Ramelmeier to forfeit $11,238,519, and pay restitution of $11,740,925.

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.

Ramelmeier owned and operated JADM. Inc., selling or brokering natural gas sales, out of his residence.  JADM’s sole client for many years was the Northrop Grumman Corporation.  JADM supplied natural gas to several Northrop Grumman facilities l in Linthicum, Maryland. Ramelmeier obtained the gas from a supplier, such as UGI Energy Services (UGI) or PEPCO.  BG&E transported the gas from UGI or PEPCO to the Northrop Grumman facilities.  JADM would then invoice Northrop Grumman each month, and Northrop Grumman would pay JADM.

According to his plea agreement, from at least 2003 to December 2013, Ramelmeier overcharged Northrop Grumman for the natural gas delivered to the Linthicum facilities.  Ramelmeier concealed this scheme by falsifying invoices and other documents, and by using a false corporate identity and bank accounts that he maintained in the names of shell entities.

Specifically, Ramelmeier represented himself as a gas broker and led the UGI or PEPCO personnel to believe that their company was entering into sales contracts directly with Northrop Grumman when, in fact, Northrop Grumman had no knowledge of these agreements.  The contracts required UGI and PEPCO to submit their invoices to Northrop Grumman by mail to a post office box in Roanoke Rapids, North Carolina, and by e-mail to Ramelmeier at JADM. In fact, Northrop Grumman had no such post office box.  Rather, at Ramelmeier’s direction, an associate opened that post office box using the name “Northrop Sensors.”  The associate regularly retrieved the mail from the post office box, including the invoices from PEPCO and UGI, and forwarded that mail to Ramelmeier. Ramelmeier created invoices on JADM letterhead which charged the real Northrop Grumman for more than the amount of natural gas that UGI or PEPCO had invoiced.  Northrop Grumman then paid JADM on the inflated JADM invoices, first by check and then, in more recent years, by wire transfer to JADM’s bank account.

Ramelmeier transferred those Northrop Grumman payments from the JADM account into a bank account that he held in the name of a shell company with no assets or business. He then transferred all or most of the funds again into an account he had opened in the name of Northrop Group Sensor Division (NGS Div.) with an address at the post office box in Roanoke Rapids. Ramelmeier used NGS Div. checks to pay UGI or PEPCO for their original invoices, deceiving those companies into believing that they were being paid by Northrop Grumman.  Ramelmeier kept the difference between the original amount invoiced by UGI and PEPCO, and the amount that Northrop Grumman paid based on JADM’s inflated invoice, for his own personal use and benefit.

As a result of the fraudulent scheme, Ramelmeier caused Northrop Grumman to pay him at least $11,238,519 for natural gas that was never actually provided.

In December 2013, Northrop Grumman noticed some unusual charges by JADM for natural gas purportedly used at one of the Linthicum locations, which Ramelmeier falsely claimed was a JADM billing error. Ramelmeier offered to credit Northrop Grumman for the overcharge.  Suspicious of Ramelmeier’s explanation, Northrop Grumman hired a consulting firm to analyze the invoices.  The consulting firm compared the amounts of gas delivered per JADM’s invoices to BG&E’s records, and determined that between 2003 and 2013, JADM overcharged Northrop Grumman by $11,238,519.

On May 16, 2014, Northrop Grumman representatives confronted Ramelmeier about the overcharges.  Ramelmeier falsely claimed that the billing errors occurred because corrupt employees doing the billing for JADM had engaged in embezzlement.  In fact, JADM had no employees.  Ramelmeier also falsely claimed that he could not provide Northrop Grumman with his billing records because his company computer files were corrupted.

On May 19, the first business day following his confrontation with the Northrop Grumman representatives, Ramelemeier used $82,626.54 of the fraud proceeds to pay off the entire mortgage balance on his residence.  The next day, the post office box in Roanoke Rapids was closed.

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Kathleen O. Gavin and Richard C. Kay, who prosecuted the case.

Greenbelt, Maryland - A federal grand jury indicted Anthony Nwagbara Daniels, a/k/a “Tony Daniels,” age 59, of Silver Spring, Maryland, today on wire fraud charges arising from a scheme to defraud the United States by fraudulently obtaining a government contract.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office; and U.S. Small Business Administration (SBA) Inspector General Peggy E. Gustafson.

Daniels was the Chief Executive Officer of Danison, Inc., a general contracting company he formed in 2004. Danison had no full-time employees besides Daniels, but occasionally employed temporary help for construction-related jobs. On November 14, 2009, Danison was certified by the U.S. Small Business Administration (SBA) as an 8(a) Program business. In order to qualify for the 8(a) Program, businesses must be at least 51-percent owned and controlled by socially and economically disadvantaged individuals. Participants in the 8(a) Program were eligible to bid on sole source government contracts that were reserved for companies in the 8(a) Program. 

According to the five-count indictment, from 2011 through 2014 Daniels engaged in a scheme to defraud the U.S. government.  Specifically, in 2011, the U.S. Air Force sought a contractor for a demolition contract on Joint Base Andrews (JBA).  The indictment alleges that Daniels formed an agreement with Individual A whereby Daniels’ company, Danison, would bid on the JBA demolition contract, and would subcontract with Individual A’s company to perform substantially all of the work on the contract. Individual A’s company had demolition experience, but was not eligible to bid on the project because the company’s annual revenues were too high. On September 29, 2011, JBA accepted Danison’s bid of $1,160,683.43 and awarded the contract to Danison.

The indictment alleges that Daniels emailed Air Force personnel, falsely assuring them that Danison was the prime contractor and was performing the majority of the work on the JBA demolition contract. In fact, Individual A’s company performed the work and Individual A prepared false invoices for electronic submission to the United States through Danison as if Danison had performed the work.  Daniels approved and caused the submission of each invoice to the United States for payment. Daniels knew that the invoices were false because they failed to disclose that Individual A’s company performed the work and Daniels’ company was simply a pass-through for the billing.  Daniels further knew that the invoices included costs and expenses for payment that were false.    

Finally, the indictment seeks the forfeiture of at least $1,158,387.74, including $367,378.82 seized from bank accounts maintained by Daniels.

Daniels faces a maximum sentence of 20 years in prison for each of five counts of wire fraud.  An initial appearance has not yet been scheduled. 

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

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

United States Attorney Rod J. Rosenstein thanked the Air Force Office of Special Investigations, DCIS, and the SBA Office of Inspector General for their work in the investigation.  Mr. Rosenstein praised Assistant U.S. Attorneys David I. Salem and Thomas H. Barnard, who are prosecuting the case.

Baltimore, Maryland – Maria Felix-Pichardo, age 25, of Baltimore, pleaded guilty today to use of an interstate commerce facility in the commission of a murder-for-hire.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division (ATF).

According to her plea agreement, in May 2015 Feliz-Pichardo contacted a confidential informant (CI) working for ATF and asked the CI to find someone who would kill the wife of her baby's father.  The CI said he could refer Feliz to a professional killer, and subsequently introduced Feliz-Pichardo to an undercover ATF agent (UC) posing as the purported “hitman.”

Between June and July 2015, Feliz-Pichardo and the UC communicated via cellphone and text message about the planned murder and met in-person several times at locations in Baltimore City.  During these meetings, Feliz-Pichardo promised to pay the UC $2,000 to murder the intended victim, and provided the victim’s address and license plate number. Feliz-Pichardo also provided a picture of the victim and suggested how the murder should be committed.  Each of these meetings was arranged by cellphone and text messaging.  Feliz-Pichardo also used her cellphone to research the victim on social media sites and to provide the pictures of the victim to the UC.

On July 13, 2015, Feliz-Pichardo met the UC, provided $700 to commit the murder and promised to provide an additional $1,300 once the murder was complete.  Feliz-Pichardo was then arrested and subsequently interviewed.  During that interview, Feliz-Pichardo admitted to contracting the UC to kill the intended victim.

Felix-Pichardo faces a maximum sentence of 10 years in prison.   U.S. District Judge James K. Bredar has scheduled sentencing for February 18, 2016.

United States Attorney Rod J. Rosenstein commended ATF and thanked Assistant U.S. Attorney Clinton J. Fuchs, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Cornell Louis Robinson, age 44, of Washington, D.C., today to 15 years in prison followed by three years of supervised release for charges related to the armed carjacking of a couple who were about to enter their vehicle to go to the hospital because the woman was in labor.  A federal jury convicted Robinson on July 29, 2015.

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; Annapolis Police Chief Michael A. Pristoop; and Anne Arundel County State’s Attorney Wes Adams.

 According to evidence presented during Robinson’s three-day trial, on March 2, 2014, at approximately 4:30 a.m. Robinson, co-defendant Devery Kelley, and others approached two individuals on Copeland Street in Annapolis, Maryland, as they were getting into their car.  The victims were planning to go to the hospital because the woman was in labor. The male victim fled from the car and called the police. Witnesses testified that Robinson and Kelley were both armed and forced the woman at gunpoint to accompany them to an apartment building nearby, demanding money.  The woman repeatedly told them that she was in labor and did not have the key to the apartment, only the car key.  Robinson and other robbers took her, continuing to hold her at gun point, and tried to get her to open an apartment.  The victim again told the robbers that she did not have a key to the apartment.  When it became clear that she could not get into the apartment, Robinson took the key to the car and left in the victim’s car.

The robbers, driving the stolen car, were followed by officers from the Annapolis Police Department. Witnesses testified that at the corner of Tyler Avenue and Hilltop Lane a handgun was thrown out of the window of the car, but was recovered by police.  On Tyler Avenue Robinson and Kelly both got of the car and ran away, but were arrested nearby.

Deverey Hasani-Jarod Kelley, age 25, of Glen Burnie, Maryland, pleaded guilty to his role in the crime and was sentenced to five years in prison.

United States Attorney Rod J. Rosenstein commended the FBI, Annapolis Police Department, and Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorneys Bonnie S. Greenberg and Patricia C. McLane, who prosecuted the case.

Baltimore, Maryland – Robin McClosky Andrews, age 51, of Glen Burnie, Maryland pleaded guilty today to conspiring to distribute and possess with intent to distribute oxycodone.

The guilty plea 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; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.

 According to her plea agreement, from 2009 until 2012, Andrews stole prescription slips from a doctor she worked for, and wrote fraudulent prescriptions for oxycodone in a number of different names.   Her husband had individuals fill the prescriptions at pharmacies and provide him with the pills. The individuals were generally paid $100 for each prescription they filled.  The oxycodone pills were then sold to co-defendant Michael Cudnik and others.

The investigation identified more than 350 fraudulent prescriptions were written.  Most of the prescriptions were for 90 Percocet 10 milligram pills, totaling 300,000 milligrams of oxycodone. Accordingly, Robin Andrews was found to be responsible for the distribution of at least 300,000 milligrams of oxycodone.

Robin Andrews faces a maximum sentence of 20 years in prison.   U.S. District Judge J. Frederick Motz has scheduled sentencing for February 2, 2016 at 9:30 a.m.

Michael Joseph Cudnik, age 57, of Baltimore, has pleaded guilty to his role in the conspiracy and is scheduled to be sentenced.  Robin Andrews’ husband passed away on October 21, 2015.

United States Attorney Rod J. Rosenstein commended the HHS Office of Inspector General, DEA and FBI for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced the former chief executive officer (CEO) of Baltimore Behavioral Health (BBH), William Kristen Hathaway, age 52, of Ellicott City, Maryland, today to 24 months in prison and six months of home detention, followed by three years of supervised release, for failing to pay to the IRS more than $2.4 million in payroll taxes deducted from the paychecks of BBH employees, and for stealing more than $53,000 from the BBH employee benefit plan. Judge Bennett also entered an order requiring Hathaway to pay restitution of $2,495,799 to the IRS and $915,576 to the Comptroller of the State of Maryland.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.

“As chief executive officer of a primary ‘charitable’ organization funded by the government to treat Baltimore drug addicts, William Kristen Hathaway paid lucrative salaries to his family members while cheating the IRS and the employee pension plan,” said U.S. Attorney Rod J. Rosenstein. “This case highlights the need for close oversight of organizations that receive public funds.”

“Hathaway abused his position of trust at Baltimore Behavioral Health,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Through manipulation and theft, Hathaway’s scheme left the American taxpayers and the employees of Baltimore Behavioral Health with the tab for his greed.”

“Hathaway’s fraudulent actions hurt the livelihood of BBH employees. Today’s sentencing sends a clear message that this type of fraudulent activity is reprehensible and individuals committing these types of acts will be held accountable.” stated Special Agent in Charge Steven D. Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.

 According to Hathaway’s plea agreement, he was the CEO for BBH, a tax-exempt organization that provided treatment to people with drug addictions and mental disorders.  Hathaway exercised significant control over many aspects of BBH’s business affairs, including managing the company’s financial accounts and overseeing the employee payroll process, which included calculating the withholding of taxes and contributing to and maintaining employee benefit plans.  The Board of Directors for BBH was primarily comprised of Hathaway’s relatives, including his wife, his sister, and his mother.  Board members were paid a salary.

Hathaway admitted that from March 2009 through December 2011, he regularly deducted payroll taxes from all employees’ wages without forwarding the money to the IRS.  For example in the second quarter of 2009, Hathaway caused $344,112.26 in federal payroll taxes to be withheld from employees’ wages, but he elected not to pay that amount over to the IRS.  Hathaway admitted withholding a total of $2,495,779 in payroll taxes from March 2009 through December 2011, but instead of forwarding those funds to the IRS, he spent the money on company expenses.  For example, during the same period, Hathaway authorized a total of $2,730,752 in salaries to BBH officers, including himself, and contractual payments to an entity owned and operated by his mother and stepfather. 

Hathaway also served as a fiduciary for the employee pension plan and was responsible for transferring employee contributions to the retirement plan, as well as any matching company contributions to the custodian of assets for the BBH employee pension plan.  Hathaway admitted that from September 2009 through April 2010, Hathaway diverted $53,530.07 in employee contributions to the BBH employee pension plan to pay company expenses, instead of transferring those funds to the custodian of assets.

United States Attorney Rod J. Rosenstein commended the IRS – CI and the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for their work in the investigation and the Employee Benefits Security Administration for its assistance in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Martin J. Clarke, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Kurtis Kelvin McGill, age 55, of Baltimore today to 11 years in prison followed by three years of supervised release for bank robbery. 

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; and Commissioner Kevin Davis of the Baltimore Police Department.  

According to his plea agreement, on August 27, 2014, McGill told a teller at the Wells Fargo Bank on Fort Avenue in Baltimore City that he had a weapon and demanded “two straps of 50s and two straps of 100s.” McGill took approximately $8,000 from the teller and drove away. McGill was subsequently identified as the robber from the bank’s surveillance video, a surveillance video at a nearby store and by a bank employee.

At the time of the robbery, McGill was on supervised release for a previous federal bank robbery conviction.

United States Attorney Rod J. Rosenstein praised FBI and Baltimore Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.

Baltimore, Maryland – Michael L. Montague, age 65, formerly of Gwynn Oak, Maryland, pleaded guilty today to using a mobile phone to entice a minor to engage in sexual activity and to receipt of 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; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to Montague’s plea agreement, from February 16 through March 26, 2014, Montague used his mobile phone to contact Boy 1. Montague knew Boy 1, and knew that Boy 1 was 12 years old at the time of their communications. Montague used a mobile application to contact Boy 1 using a number different from the telephone number assigned to Montague’s phone. Using this disguised phone number, Montague contacted Boy 1 and claimed to be “Gail,” a classmate of victim’s. Posing as “Gail,” Montague engaged in sexually explicit text and email communications with Boy 1.

Montague, posing as “Gail” wrote to Boy 1 that she knew Montague, and that Boy 1 should send pictures of himself to Montague, and Montague would send Boy 1 pictures of “Gail.” “Gail” told Boy 1 that Montague had very nice pictures of “Gail” that Boy 1 should ask Montague to see. “Gail” suggested that Boy 1 seek permission to stay with Montague for a weekend so that “Gail” and Boy 1 could meet for a sexual encounter. “Gail” also told Boy 1 that she could get Montague to make a sexual video of her, and that then Boy 1 should let Montague make a sexual video with Boy 1.  Montague also sent messages to Boy 1 posing as a male classmate of Boy 1 who also knew Montague and “Gail.”

Forensic examination of Montague’s phone revealed sexually explicit communications with Boy 1, sexually explicit images and videos Montague sent to Boy 1, and a sexually explicit image that the victim sent to Montague.

On May 19, 2009, Montague was convicted in the Circuit Court for Baltimore County, Maryland, of child abuse and a third degree sex offense, for his sexual abuse of two girls, and was sentenced to three years in prison.  Upon his release from prison, Montague was required to register as a sex offender.  As part of this plea agreement, Montague will be required to continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

Montague faces a minimum mandatory sentence of 10 years in prison and a maximum of life in prison for enticing a minor to engage in sexual activity; and a minimum mandatory sentence of 15 years in prison and up to 40 years in prison for receipt of child pornography, each followed by up to lifetime supervised release. U.S. District Judge James K. Bredar has scheduled sentencing for February 19, 2016, at 11:00 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, HSI Baltimore, Maryland State Police Internet Crimes Against Children Task Force, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Antwan Travers, age 45, of Baltimore, Maryland, today to 15 years in prison, followed by three years of supervised release for charges arising from his participation in a conspiracy to commit three armed robberies of commercial establishments. Judge Bennett also entered an order requiring Travers to pay restitution of $6,000.

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

According to Travers’ plea agreement, in March 2014, Travers and co-defendant Darryl Green planned to commit an armed robbery at a pharmacy located in the 6600 block of Security Boulevard in Baltimore. According to his plea agreement, on March 19, 2014, Travers drove Green to the store and waited outside as the getaway driver.  Green entered the store and asked an employee about medication for pink eye.  At the time, the employee was holding her two-month old baby.  The employee’s husband was also in the store. Green pointed a long-barreled BB pistol at the employee and her baby and said, “I’m going to kill the baby.”  He then ordered the employee to move towards the cash register.  The employee and her husband activated a loud panic alarm, and Green fled the store.  Travers drove Green away from the pharmacy. 

Travers admitted that he and Green attempted to rob a grocery store on March 27, 2014.  Travers drove Green to the supermarket. Green entered the store and asked a store employee about purchasing a Keno card.  Green then pointed a handgun at the employee and demanded money from the register.  Green said, “You better make it quick or I’m going to shoot you.”  Travers drove away before Green could escape.  Green attempted to run away, but he was quickly caught by members of the Baltimore County Police Department.  Officers found the gun that Green had used during the robbery, a loaded .380 caliber handgun with an obliterated serial number, near the location where Green was arrested.  Officers also found the stolen money, about $5,000, in a plastic bag.

Travers also admitted that he was the getaway driver in the February 16, 2014 robbery of a store in the 6600 block of Security Boulevard.  In that robbery, Travers drove an unknown male to the store. The man brandished a firearm and demanded that the store employee empty the cash register and the safe.  The man stole approximately $6,000.

Darryl Green, age 48, of Baltimore, previously pleaded guilty to his role in the robberies and was sentenced on 12 years in prison.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg and Joshua Ferrentino, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Theresa Darlene Snead, age 56, of Suitland, Maryland today to 18 months in prison, followed by three years of supervised release, for theft of government property in connection with a scheme to steal over $115,000 in social security benefits. Judge Chasanow also entered an order requiring Snead to pay restitution of $115,388.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.

According to Snead’s plea agreement, between May 1986 and her death on January 10, 2003, Individual A received monthly retirement benefits from the Social Security Administration (SSA).  At the time of her death, Individual A was living with Snead.  Individual A’s death was not reported to SSA.  Between January 2003 and March 2014, when the benefits were terminated, SSA continued to mail Individual A’s monthly benefits check to Snead’s address in Suitland.

Snead admitted that after Individual A’s death she cashed the SSA checks at a local liquor store, using an identification card bearing Individual A’s name, but Snead’s photograph.  Snead signed the back of each check in Individual A’s name. SSA paid a total of $115,388 in retirement benefits after Individual A’s death.  Snead admitted that she knew she was not entitled to these benefits.

United States Attorney Rod J. Rosenstein commended the SSA Office of Inspector General for its work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney Lauren Perry and Assistant U. S. Attorney Lindsay Eyler Kaplan, who prosecuted the case.

Greenbelt, Maryland – A former waiter at an Annapolis restaurant, Andrew Anamanya, age 25, of Glen Dale, Maryland pleaded guilty today in connection with his role in stealing customers’ credit card information, as part of a conspiracy to commit access device fraud.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Chief Murray “Jay” Farr of the Arlington County, Virginia Police Department.

According to Anamanya’s plea agreement, while working as a waiter at an Annapolis restaurant, Anamanya was approached by two co-conspirators and agreed to use a credit card reading device, known as a “skimmer,” to steal credit and debit card information.  The co-conspirators supplied Anamanya with the skimmer and when Anamanya’s customers paid their bills using credit or debit cards, Anamanya secretly swiped their cards through the skimmer. A few days later, Anamanya met with his co-conspirators and gave them the skimmer he had used in return for another skimmer.  From July through October 2009, Anamanya repeated this process, compromising the credit card information of approximately 12 individuals.  One of the co-conspirators transferred the data from the skimmer onto a laptop computer and then re-encoded the information onto other debit cards.  Those fraudulently re-encoded cards were then used to make purchases at retail stores in the Washington, D.C. metropolitan area, the Eastern Shore of Maryland, and Delaware.   

The total loss reasonably attributable to Anamanya’s conduct was $10,153.81.  Four other co-conspirators have pleaded guilty to their roles in the scheme and are awaiting sentencing.  A sixth defendant is scheduled to go to trial on November 17, 2015.

Anamanya faces a maximum sentence of five years in prison.  U.S. District Judge Peter J. Messitte has scheduled sentencing for March 30, 2016, at 9:30 a.m.

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Prince George’s County Police Department, Maryland State Police, and the Arlington County, Virginia Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Wilfred T. Azar, III, age 54, formerly of Queenstown, Maryland, today to 63 months in prison followed by three years of supervised release, for securities fraud and filing a false tax return.  Judge Quarles also entered an order that Azar must perform 100 hours of community service while on supervised release, and pay restitution of $7,219,362 to the victim investors and $469,936 in restitution to the IRS.             

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Deputy Assistant Attorney General Bruce M. Salad for the Tax Division of the Department of Justice; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.

“Today’s sentencing reaffirms IRS Criminal Investigation is diligent in unraveling the fraudulent financial transactions of those who scheme to defraud investors and U.S. taxpayers,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.  “In partnership with our law enforcement partners, we will continue to pursue those who engage in this type of conduct in order to protect the integrity of our financial system.”

In 1999, Azar became president and majority owner of Empire Corporation and exercised complete control over the operations of Empire. Empire Corporation owned Empire Towers Corporation. Empire Towers Corporation’s primary asset was Empire Towers, a 10 story office building in Glen Burnie, Maryland.

According to Azar’s plea agreement and court documents, by January 2006, Empire Corporation could no longer pay its expenses and was effectively insolvent.  By 2007, Empire Towers Corporation had exhausted its lines of credit from lending institutions.

From January 2006 to April 2010, Azar caused Empire Corporation to sell bonds to 64 individual investors for more than $7 million.  While many of the bonds were titled “registered,” the bonds were not registered with either the U.S. Securities and Exchange Commission (SEC) or the state of Maryland.  In addition, Azar falsely told investors that Empire Corporation was in good financial health and that the company generated enough revenue to pay the promised 10 percent annual rate of return.  Azar falsely represented that the money invested would be used for a specific renovation project or other capital improvement at the Empire Towers office building.  Azar failed to inform investors that he used most of the money raised from previous bond sales for his own personal purposes. Although the bonds were issued by Empire Corporation, Azar diverted millions of dollars of proceeds from the bond sales to his own bank account and the bank accounts of other companies that he controlled.

During the period of the fraud, Azar misappropriated approximately $7,219,362 in investor proceeds raised through the sale of bonds.  Azar used the bond proceeds: to purchase a $100,000 Aston Martin luxury automobile; to pay the $3,000 monthly mortgage on his primary residence; to pay $51,000 to an Azar trust; to purchase Baltimore Ravens season tickets for $17,298; and to pay $25,389 in country club dues.  In addition, Azar charged over $420,000 to a credit card paid by Empire Management Services, including daily living expenses, lavish vacations, and university tuition for one of his children.  Azar also diverted more than $1.07 million in Empire funds as “loans” to other unrelated businesses he controlled which were never repaid, and another $3.31 million to make lulling payments.

Finally, Azar filed to report approximately $1,959,250 of embezzled income on his 2009 tax return, thereby avoiding $469,936 in federal income taxes.

The SEC has also filed a complaint against Azar and another individual in connection with the scheme, and that case is pending.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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, visit www.stopfraud.gov.

United States Attorney Rod J. Rosenstein praised the Tax Division, IRS-CI and the SEC for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke and Trial Attorney Kenneth C. Vert of the Justice Department’s Tax Division, who prosecuted the case.