District of Maryland

Greenbelt, Maryland – A federal jury convicted Charles W. Parker, Jr., age 49, of College Park, Maryland, today of conspiring to file false federal income tax returns and six counts of filing false tax returns.

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

“Criminal conspiracies involving fraudulent refund schemes victimize our nation’s honest taxpayers,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.  “Today’s guilty verdict is a reminder that IRS-CI will remain vigilant in our investigation of these schemes and work with prosecutors to combat this type of criminal conduct.”

According to evidence presented during the trial, from March to June 2009, Parker recruited clients for co-conspirator Penny Jones.  Jones, a resident of Idaho, was a tax return preparer who prepared tax returns falsely reporting the amount of taxes withheld and purportedly paid to the IRS.  Parker collected financial information from the client and provided the information to Jones for the preparation of the false tax returns. Parker paid Jones to prepare false tax returns for Parker and others.  For example, Parker paid Jones $3,000 on March 19, $750 on March 31, and $2,450 on April 13, 2009 to prepare false returns for himself and others.  Parker mailed the false tax returns to the IRS for tax years 2005 to 2008, claiming large tax refunds to which the taxpayers were not entitled.

On May 26, 2009, after Parker paid Jones to prepare a false tax return for two co-conspirators who were residents of Atlanta, Parker and Jones caused the IRS to issue a tax refund to the co-conspirators of $1,723,693. On June 3, 2009, Parker emailed the co-conspirators directing them to wire funds to Parker’s bank account.  The next day, the co-conspirators transferred $182,370 into Parker’s account.

Parker and his co-conspirators caused the IRS to issue two fraudulent tax refunds totaling $2,007,568. In 2013, Jones was sentenced to 120 months in prison for her role in a scheme to help individuals obtain fraudulent tax refunds from the IRS.

Parker faces a maximum sentence of 10 years in prison for the conspiracy, and a maximum sentence of five years in prison for each of the six counts of filing a false tax return.   U.S. District Judge Roger W. Titus has scheduled sentencing for March 28, 2016 at 11:00 a.m.

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

Baltimore, Maryland – David B. Pick, age 47, of Bowie, Maryland, pleaded guilty today to making false statements arising from a real estate closing.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; and Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General.

Pick was a loan originator responsible for preparing loan applications, obtaining documentation to support the representations in loan applications, presenting loan applications to financial institutions for funding and working with financial institutions to close loans.

In 2005, Pick sought a $900,000 construction loan from a mortgage lender to purchase and construct a residence at 1206 Tilghmans Landing Way in Annapolis.  The residence was to be constructed by Richland Homes, Inc., owned and operated by Timothy Ritchie.

According to his plea agreement, on March 10, 2005, Pick falsely represented on the loan application that he received $1,250 in monthly rent from “Georgia Brown” to rent property on Clam Cove Court in Rock Hall, Maryland.  In fact, no individual named Georgia Brown occupied the property or paid rent to Pick.

Relying on the false loan application, the lender agreed to fund the construction loan on the condition that Pick personally pay the required down payments, closing costs and prepaid expenses, and that Pick did not have any agreement with Ritchie or Richland Homes, as the seller, that was not disclosed to the lender.

On March 21, 2005, Pick and Ritchie signed a settlement statement, and Pick also signed a borrower’s affidavit, falsely stating the Pick paid $63,901.63 at the closing, when in fact, Pick contributed no cash to the closing.  The funds owed by Pick were instead deducted from Richland Homes’ proceeds from the sale.  The lender, which would not have approved the loan without Pick paying the full $63,901.63, suffered a loss of $383,178.

Pick faces a maximum sentence of 30 years in prison.  U.S. District Judge Richard D. Bennett scheduled his sentencing for February 10, 2016.

In related cases arising from their participation in similar transactions, John L. Davis, age 53, of Chestertown, Maryland, a settlement agent, previously pleaded guilty to conspiracy to commit mail fraud and wire fraud, and is scheduled to be sentenced on January 19, 2016 at 3:00 p.m.  Timothy L. Ritchie, age 44, of Annapolis, Maryland has pleaded guilty to making false statements involving his purchase of three lots in St. Michaels, Maryland.  Ritchie is scheduled to be sentenced on January 14, 2016, at 10:00 a.m.

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.

United States Attorney Rod J. Rosenstein commended the FHFA - OIG and FDIC – OIG for their work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney Kevin V. Di Gregory and Assistant U.S. Attorney Kathleen O. Gavin, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Max Wagenblast, age 35, of Arlington, Virginia, late on November 9, 2015, to two years in prison, followed by three years of supervised release, for wire fraud in connection with a scheme to steal over $5 million from his company.  Judge Chuang also ordered Wagenblast to pay a fine of $25,000.

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

According to the his plea, Wagenblast was employed as an asset manager for a Bethesda company (the company) that was the second largest Special Servicer of commercial real estate mortgages in the United States.  As a Special Servicer, the company was responsible for administering defaulted commercial mortgage loans and the real estate securing foreclosed loans.  The company performed this service on behalf of the Real Estate Mortgage Investment Conduit (“REMIC”) trust that held the mortgage loans on behalf of the certificate holders of the trust.  In its capacity as a Special Servicer, the company collected borrower payments and property cash flow and remitted them to the REMIC trust, which was responsible for distributing those funds to the certificate holders.  Wagenblast oversaw both the loans and properties that acted as security for the loans serviced by the company, including the application and utilization of funds generated by the properties he managed.

Wagenblast admitted that he redirected a portion of the funds collected from the properties he managed into the bank accounts of three limited liability companies he controlled.  Those redirected funds should have been sent to the company and then forwarded to the REMIC trust bank accounts.  Wagenblast obtained these funds in three ways: by sending fake invoices to the property managers and directing them to wire the funds for payment into one of the bank accounts Wagenblast controlled; by creating fake service contracts and again directing the property managers to wire the funds for payment into one of the bank accounts Wagenblast controlled; and by sending the property managers an email requesting that all wires in excess of $10,000 be sent to a bank account Wagenblast controlled.

The company conducted a search of Wagenblast’s work computer and found documents detailing the fraudulent activity, including a spreadsheet detailing each diverted funds transaction that listed the amount taken, the property from where the funds originated, the date of the transaction and the bank account into which the funds were directed.  From September 2012 through September 2013, Wagenblast caused over $5 million to be wire transferred into bank accounts he controlled

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 FBI for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Peter Flynn, age 61, of Silver Spring, Maryland today to 45 months in prison, followed by 15 years of supervised release, for possessing child pornography.  Judge Hazel also ordered Flynn to pay a fine of $12,500.

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

Flynn is a former special education teacher in Montgomery County.  According to his plea agreement, on April 3, 2014, a Maryland State Police Corporal was conducting an online investigation into individuals sharing child pornography on a file sharing network.  The MSP Corporal downloaded approximately 205 images and videos of children engaged in sexually explicit conduct that Flynn made available through the file sharing network.

On September 30, 2014, law enforcement executed a search warrant at Flynn’s residence and seized two computers from his basement.  Flynn also agreed to be interviewed and admitted that law enforcement would find child pornography on his computer.  A subsequent forensic analysis revealed approximately 28,785 images and 795 videos of child pornography and child erotica on the two computers, the majority of which constituted child pornography.  Some of the images documented the sexual abuse of prepubescent children, including bondage and violence.

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 Maryland State Police Internet Crimes Against Children Task Force and HSI Baltimore for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

Baltimore, Maryland – Igor Yasinov, age 26, of Baltimore, Maryland, pleaded guilty on November 6, 2015,  to a robbery conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a 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, Yasinov was part of a conspiracy to rob a Pikesville jewelry store.  Specifically, in the fall of 2012, a co-conspirator devised a plan to commit an armed robbery of a jewelry store, known to be owned and operated by members of the Russian community of Northwest Baltimore.

A co-conspirator recruited Yasinov, Peter Magnis, Grigoriy Zilberman and others to participate in the robbery.  In preparation for the robbery, on December 25, 2012, Yasinov and others committed a burglary of a residence in Baltimore, during which they stole a shotgun and semiautomatic handgun.  The handgun was used in the robbery of the jewelry store on January 16, 2013. 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. Yasinov participated in the obtaining of two rental vehicles for use during the crime.

According to Yasinov’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.  Early in the morning on January 16, 2013, as the employee was driving from Zilberman’s home, Yasinov, Magnis and two other co-conspirators driving in one of the rental cars 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. According to the plea agreement, once at the location, Yasinov 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, while Yasinov and Magnis stayed with the employee.  While they were with the employee, Yasinov and Magnis brandished a sawed-off shotgun.  Additional co-conspirators 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. Yasinov received more than $5,000 for his role in the crimes.

Yasinov 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 branishing a firearm in relation to a crime of violence. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 8, 2016 at 9:30 a.m.

Grigoriy (Greg) Zilberman, age 24, of Owings Mills, Maryland, and Peter Aleksandrov Magnis, age 27, of Hydes, Maryland, previously pleaded guilty to their roles in the robbery conspiracy and are scheduled to be sentenced on December 18, and December 22, 2015, 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 – William Sylvia, age 71, of Hagerstown, Maryland, pleaded guilty today to possession of child pornography.

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

According to Sylvia’s plea agreement, in approximately 1995, Sylvia was convicted of raping a child in Massachusetts, and sentenced to 7 to 10 years’ incarceration.  On September 3, 2004, in the Circuit Court of Berkeley County, West Virginia, Sylvia was convicted of sexual abuse by a parent, custodian or guardian, and of third degree sexual abuse, and was sentenced to one to five years in prison.

Sylvia admitted that from April 1, 2013 through July 13, 2014, he used a computer to send, receive and collect child pornography.  For example, on April 1, 2013, Sylvia sent another user six visual depictions of minors engaging in sexually explicit conduct. On September 4, 2014, law enforcement obtained a search warrant for Sylvia’s email account which revealed emails sent and received by Sylvia that included attachments of child pornography.

During the time of this investigation, Sylvia was a registered sex offender living at a motel in Hagerstown.  On February 20, 2015, a search warrant was executed at Sylvia’s residence at the motel and law enforcement seized a desktop computer, camera, flash drive and other digital media.  A forensic examination of the desktop computer and the flash drive recovered additional images of minors – including prepubescent minors – engaged in sexually explicit conduct.

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

Sylvia and the government have agreed that if the Court accepts the plea agreement Sylvia will be sentenced to 10 years in prison followed by a lifetime of supervised release.  U.S. District Judge George L. Russell III has scheduled sentencing for January 29, 2016 at 11:30 a.m.

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow who prosecuted the case.

Baltimore, Maryland – Ricky Tolson, age 45, of Baltimore, Maryland pleaded guilty today to robbery.

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; Commissioner Kevin Davis of the Baltimore Police Department; Chief Gary Gardner of the Howard County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, from June 7 to June 20, 2015, Tolson entered the following eight businesses located in Maryland demanding money from their employees: Ramada Inn in Pikesville, Roland Park Exxon Gas station on Falls Road in Baltimore, Shell Gas station on Smith Avenue in Baltimore, Sunoco Gas station in Pikesville, SF Mini Mart in Clarksville, BP Gas station in Lutherville, Cricket Store in Owings Mills and the Game Stop on Old Court Road in Baltimore.

In each robbery Tolson made it appear to the employees that he had a gun, but after his arrest on June 24, 2015, he told investigators that he did not have a gun. Tolson fled from five of the robbery scenes with approximately $2,915 in cash. He fled from another two scenes with an undetermined amount of cash, and fled the BP gas station before he stole any money.

Tolson and the government have agreed that if the Court accepts the plea agreement Tolson will be sentenced to 15 years in prison.  U.S. District Judge J. Frederick Motz has scheduled sentencing for January 5, 2016 at 2:15 p.m.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County State’s Attorney’s Office, Baltimore County Police, Baltimore City Police, Howard County Police and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Curtis R. Martin, Jr., age 55, of Baltimore, Maryland, today to 8 years in prison, followed by three years of supervised release, for wire fraud.  Martin previously pleaded guilty a scheme to defraud a business of more than $132,000. At today’s sentencing hearing the government presented evidence of additional fraud schemes committed by Martin and Judge Bennett found that the total loss as a result of Martin’s fraud schemes was $1,572,195.  Judge Bennett entered an order requiring Martin to pay restitution in the full amount of the loss, $1,572,195.  In addition, Judge Bennett ordered that Martin perform a total of 300 hours of community service during his supervised release – 100 hours each year.     

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.

According to his plea agreement, while Martin was serving the final portion of a 162-month federal prison sentence at a halfway house in Maryland in the summer of 2010, he incorporated Oledix Technologies, LLC.  Martin assumed the positions of President and Chief Executive Officer (CEO) of Oledix.  On December 23, 2010, Martin was released from the halfway house and began serving a three-year term of supervised release.  In the fall of 2011, Martin acquired office space for Oledix Technologies in downtown Baltimore, and began hiring employees.  Oledix operated from this space until it was evicted for non-payment of rent at the end of June, 2012.

Martin represented that Oledix Technologies was in the business of selling video teleconferencing equipment that employed LED touchscreen technology, and that The Oledix Store was a retail outlet for Oledix Technologies. In fact, neither company did any significant amount of business.  It’s operations in 2011 – 2012 were largely funded by money provided by a woman with whom Martin was romantically involved; by charges incurred on corporate credit cards obtained by Martin; and by financing obtained by Martin on behalf of Oledix from financing and leasing companies, including New Century Financial.  New Century Financial (NCF) is a Texas company in the business of accounts receivable financing. Accounts receivable financing permits a business to obtain loans from a lender or financing company based upon outstanding invoices issued to customers, but for which payment is not yet due under the terms of the invoice.  An accounts receivable financing company agrees to provide financing that is less than the full face value of the invoice.  The business receiving the financing instructs its customer to make the payment owed on the invoice to the financing company, which retains the difference between the amount financed and the full face value of the invoice as its profit.

According to the statement of facts, on April 11, 2012, Martin submitted an on-line application for financing to NCF which falsely represented and inflated the monthly sales of Oledix Technologies.  In support of the financing application, Martin submitted additional fraudulent documents, including bank statements, financial reports, and sales summaries, that presented a false and misleading picture of the financial position of Oledix Technologies.

In June 2012 he submitted a further request for financing to NCF and provided NCF with a fraudulent invoice which falsely represented that Oledix Techologies had sold Johns Hopkins Hospital/Hopkins Medical Center three “Oledix mobile telemedicine carts” at a cost of $174,200.  In August 2012, Martin submitted an additional fraudulent invoice to NCF claiming that Hopkins had purchased an additional six “Oledix Mobile Telemedicine Carts” for a total price of $332,550.  In fact, Oledix Technologies had not sold any equipment to Johns Hopkins Hospital or Hopkins Medical Center.  To carry out the scheme, Martin sent or caused to be sent to NCF fraudulent emails, purporting to be from a Hopkins doctor and from a Hopkins account manager, which falsely confirmed the validity of the Hopkins invoices.

Martin admitted that, based on his fraudulent representations, NCF provided a total of $132,470 to Martin for the invoices purportedly issued to Johns Hopkins.  Martin used the money for personal and business-related expenses.

The government presented evidence today that on May 4, 2012, NCF provided an additional $80,000 in financing to Martin based upon a fraudulent invoice Oledix had purportedly issued to Company 1.  Judge Bennett found that not only did Martin defraud NCF of the $80,000, but based on evidence presented by the government, Martin committed other frauds involving eight individual victims and entities, with losses totaling $1,492,195.

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 FBI for its work in the investigation and thanked the U.S. Probation Office for its assistance.  Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.

The Maryland U.S. Attorney’s Office announced several new supervisory appointments to fill vacancies flowing from the retirement in October of veteran federal prosecutor Barbara S. Sale. Sale served as an Assistant U.S. Attorney for 35 years and retired as chief of the Criminal Division. The U.S. Attorney’s Office named the criminal chief’s conference room in her honor.

“Maryland is fortunate to have a deep bench of exceptionally talented Assistant U.S. Attorneys who are dedicated to the goals of promoting justice, enhancing public safety and security, protecting government property and building confidence in law enforcement,” said U.S. Attorney Rod J. Rosenstein. “Barbara Sale earned universal admiration for her intelligence, fairness and devotion to public service. Our new supervisors and their colleagues will carry forward the proud legacy of the Maryland U.S. Attorney’s Office and maintain its commitment to excellence, integrity and achievement.”

CRIMINAL DIVISION CHIEF

James A. Crowell IV is the new chief of the U.S. Attorney’s Office Criminal Division, which includes 66 Assistant U.S. Attorneys and 12 full-time Special Assistant U.S. Attorneys statewide. Crowell has been a prosecutor for 15 years, including eight years as a Maryland Assistant U.S. Attorney (AUSA). He has served in the U.S. Army Reserves since 1994 and is now a major commanding a company of the 437th Civil Affairs Airborne Battalion. Crowell graduated in 1996 from Hampden-Sydney College, with a B.A. cum laude in History and French. He earned a J.D. in 1999 from Boston University School of Law, where he was note editor of the technology journal. From 1999 to 2001, Crowell was a law clerk to U.S. District Judge Charles A. Pannell, Jr. in the Northern District of Georgia. He joined the National Criminal Enforcement Section of the U.S. Justice Department’s Antitrust Division in 2001 through the Attorney General’s Honors Program, then moved in 2003 to the Public Integrity Section of the Department’s Criminal Division, where he supervised undercover investigations and prosecuted government contract fraud and bribery. He joined the Maryland U.S. Attorney’s Office in 2007. Crowell received the Attorney General’s Distinguished Service award in 2011. He won the U.S. Attorney’s fraud prosecution award in 2009 and the public corruption award in 2011.

SOUTHERN DIVISION SUPERVISORS

Arun Rao replaces Crowell as Chief of the U.S. Attorney’s Office’s Southern Division, which includes 21 Assistant U.S Attorneys and 5 full-time Special Assistant U.S. Attorneys who are responsible for federal criminal cases from Montgomery, Prince George’s, Charles, Calvert and St. Mary’s Counties. Rao has been a prosecutor for 12 years, including five years as a Maryland AUSA and two years as the Southern Division’s deputy chief. He earned a B.A. with high honors from the University of Virginia in 1998, majoring in Government and Foreign Affairs. Rao received his J.D. in 2001 from New York University School of Law, where he was on the moot court board. After law school, Rao worked for one year as an associate at Cravath, Swaine & Moore. He then clerked for Judge Julia Smith Gibbons of the U.S. Court of Appeals for the Sixth Circuit from 2002 to 2003. After completing his clerkship, Rao served as an Assistant District Attorney in Manhattan for four years. He was an AUSA for the Western District of Tennessee for three years before he transferred to Maryland in 2010. Rao also served on detail at the Office of the White House Counsel from 2012 to 2013 and as the Professional Responsibility Officer for the Southern Division.

Kristi O’Malley is the Principal Deputy Chief for the Southern Division. O’Malley has been a Maryland AUSA for five years. She earned a B.A. summa cum laude in International Relations from Claremont McKenna College in 1999. She then completed a year of course work at Moscow State University and worked for two years as a program analyst with the Justice Department’s Office of Overseas Prosecutorial Development, Assistance & Training. O’Malley received a J.D. in 2005 from the University of Virginia School of Law, where she was a member of the Order of the Coif, an editor of the international law journal and a winner of the moot court competition. She worked for one year as an associate at Latham & Watkins, then clerked for one year for U.S. District Judge Emmet G. Sullivan in Washington, DC. O’Malley returned to Latham & Watkins from 2007 until she joined the U.S. Attorney’s Office in 2010. O’Malley started in the Baltimore Major Crimes Section and later transferred to the Southern Division, where she has managed the Project Safe Childhood and law clerk programs and served as the civil rights coordinator. She won the U.S. Attorney’s fraud prosecution award in 2013.

Bryan Foreman is the Southern Division’s Deputy Chief for Litigation. Foreman has been a prosecutor for 25 years, including 18 years as a Maryland AUSA. Foreman earned a B.A. in Government from Georgetown University in 1984 and a J.D. from the University of Maryland in 1987. He was an attorney with the Office of General Counsel for the Securities & Exchange Commission from 1987 until 1990. From 1990 to 1995, Foreman was a trial attorney with the Justice Department’s Fraud Section and a member of the Dallas Bank Fraud Task Force.  Foreman then worked for two years as an AUSA for the District of Columbia before joining the Maryland U.S. Attorney’s Office in 1997. At the Maryland U.S. Attorney’s Office, Foreman was the Project Safe Childhood coordinator from 1998 to 2004 and the Computer Hacking and Intellectual Property coordinator from 2007 to 2011. He also served on detail as the First Assistant U.S. Attorney for the District of the Virgin Islands from 2011 to 2013.

SENIOR LITIGATION COUNSEL

Deborah A. Johnston has been reappointed to another term as Senior Litigation Counsel for the Southern Division, responsible for training AUSAs. Johnston has been a prosecutor for 32 years, including 21 years as a Maryland Assistant U.S. Attorney. She earned a B.A. in Economics from Catholic University in 1975 and a J.D. from Catholic University’s Columbus School of Law in 1978. Johnston was a law clerk to Prince George’s County Circuit Court Judge Audrey E. Melbourne for one year, then an Assistant State’s Attorney for Prince George’s County from 1979 to 1984. She served from 1984 to 1985 as an Assistant Public Defender for Prince George’s County, then worked from 1985 to 1988 as an associate with a private law firm. Johnston rejoined the Prince George’s County State’s Attorney’s Office in 1988 and served as Chief of the Homicide/Narcotics Unit and as Deputy State’s Attorney. Johnston joined the Maryland U.S. Attorney’s Office in 1994 and served as chief of the Southern Division from 1999 to 2001. She won the U.S. Attorney’s Barney Skolnik award for prosecuting of a case of unusual public significance in 2000, the U.S. Attorney’s Gary Jordan award for exemplary performance in 2006, and the Justice Department’s Director’s Award for superior performance in 1998 and 2001.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Gregory Cooper, 59, of Glenn Dale, Maryland, a former U.S. Postal Service contracting officer, today to 15 months in prison, followed by three years of supervised release, for receiving bribes in connection with the awarding of mail delivery contracts. Judge Hazel also entered an order that Cooper forfeit $25,931.76.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General.

According his plea agreement, in May 2015, Cooper had pleaded guilty to accepting more than $25,000 in bribes from a co-defendant who owned two companies that bid on and secured transportation contracts with the Postal Service for mail delivery.  Those bribes came in a variety of forms, ranging from fitness equipment delivered to Cooper’s Maryland home, $15,900 in cash, and the payment of a $7,355 tuition bill for Cooper’s daughter. Cooper admitted that in exchange for these payments, he gave favorable consideration to his co-defendant’s companies in the bidding process for nine Postal Service contracts, all of which were awarded to the co-defendant’s companies.

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

Baltimore, Maryland – A federal jury today convicted Mario Lamar Wair, a/k/a “Unda,” age 42, of Baltimore, for conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine; and for possession with intent to distribute cocaine and crack cocaine.

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

According to evidence presented at his four day trial, from no later than June 2013 through June 2014, Wair conspired with Kareem Moore, and others to distribute cocaine and crack cocaine in southwest Baltimore. Kareem Moore and other co-defendants operated a street-level drug shop that sold crack cocaine daily to customers.  Trial evidence showed that Wair supplied two to three ounces of cocaine to Moore, two to three times per week.  Moore cooked the cocaine into crack cocaine, which was then sold to other distributors and in user-quantity amounts to street level customers.

According to the trial evidence, Wair and his co-conspirators distributed 500 grams of cocaine and 280 grams of crack cocaine.

Wair faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life years in prison for the conspiracy; and a mandatory minimum of five years and a maximum of 40 years in prison for possession with intent to distribute cocaine and crack cocaine.  U.S. District Judge George L. Russell, III, scheduled sentencing for January 22, 2016, at 2:00 p.m.

Kareem Moore pleaded guilty before trial and is scheduled to be sentenced on January 6, 2016, a6 2:00 p.m.  Eight other co-defendants have also pleaded guilty to their participation in the conspiracy.

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

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced a former drug vendor on the Silk Road website, Sheldon Kennedy, age 25, of Lincoln, Nebraska, today to two years in prison, followed by three years of supervised release, for conspiracy to traffic in controlled substances, including cocaine.  Kennedy sold drugs via an online marketplace called Silk Road.  Silk Road served as an online, international marketplace for users to buy and sell controlled substances, false identifications, and other contraband over the Internet.

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); Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to his plea agreement, Kennedy, using an online nickname, made contact with buyers via Silk Road, accepted payment electronically through Silk Road, and shipped drugs via the United States Postal Service to buyers throughout the United States and in foreign countries. Kennedy paid a fee to the owner and operator of Silk Road, Ross William Ulbricht, for each transaction on the website. In 2012, federal agents in Maryland made several undercover purchases of drugs from Kennedy, which Kennedy shipped to Maryland. Kennedy also sold counterfeit currency and firearms.  For instance, in May 2012 an undercover agent purchased a Glock 26 pistol from Kennedy.  Kennedy disassembled the weapon and sent it to the undercover agent in two separate shipments to make it more difficult to detect.  He made both shipments from Nebraska to an undercover mailbox in Maryland.

On June 28, 2013, a federal search warrant was executed at Kennedy’s residence in Lincoln, Nebraska.  Kennedy was at home when the search warrant was executed and agreed to speak to law enforcement.  Kenney admitted to that he used an online alias to sell drugs, guns, and counterfeit currency on Silk Road, including cocaine, LSD, and several other synthetic and prescription controlled substances.  He also admitted that the chemicals and laboratory equipment in his residence were to manufacture phenazepam, a controlled substance.  During the execution of the warrant, agents recovered ten firearms and various controlled substances, including Barbital powder, Phenazepam, Ethylphenidate, Ketamine, Etaqualone, Xanax, Valium, and Heroin. Kennedy also admitted selling at least 38 grams of cocaine.

Ross Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” age 31, of San Francisco, California, was convicted in the Southern District of New York on charges related to his operation of the Silk Road website and sentenced to life in prison.

United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA, U.S. Postal Inspection Service, ATF, U.S. Secret Service and IRS-Criminal Investigation for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Paul E. Budlow, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Savino Braxton, age 58, of Baltimore, Maryland today to 20 years in prison, followed by five years of supervised release for possession with intent to distribute heroin. The sentence imposed today is consecutive to the six months Judge Bredar imposed during the trial for contempt. A federal jury convicted Braxton on July 23, 2015.

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

According to evidence presented at his four day trial, on August 18, 2009, Braxton sold 50 grams of heroin to a confidential source.  The source had previously paid Braxton $2,250 for the drugs. Both transactions occurred at an apartment used by Braxton on Goodnow Road in Baltimore.  Following the two drug related transactions, a federal search warrant was obtained for the apartment.  On September 2, 2009, Braxton was arrested after leaving the apartment and driving to a parking lot on Sinclair Lane.  Agents recovered 28 grams of heroin from the center console of Braxton’s vehicle.  Keys recovered from Braxton were used to enter the Goodnow Road apartment used by Braxton.  Agents recovered from the apartment: $4,270 in cash; a drug tally sheet bearing Braxton’s name; over 1 kilogram of heroin; and drug paraphernalia, including cutting agents, gel caps and scales.  Braxton was charged and has his initial appearance on September 3, 2009 and was released under the supervision of U.S. Pretrial Services.  Braxton absconded from supervision and was located and arrested on August 17, 2012.

According to court documents, Braxton was originally convicted of this charge on February 11, 2013, after pleading guilty, and was sentenced on June 17, 2013, to 138 months in prison.  Braxton appealed to the U.S. Court of Appeals and the judgment was overturned on appeal, leading to his retrial in July 2015.

In 1991, Braxton was sentenced to over 17 years in prison for possession with intent to distribute heroin in U.S. District Court in Baltimore.  He was released from prison in August 2006.

United States Attorney Rod J. Rosenstein praised the DEA and Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys John F. Purcell and Kenneth S. Clark, who prosecuted the case.

Baltimore, Maryland – Quentin Turgot Glenn, age 49, of Hanover, Maryland, who owned and operated Glenn Services, LLC, a trash hauling business, pleaded guilty today to conspiracy and bribery in connection with a scheme in which 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.

Jessie Lee Wilson, Jr., age 40, of Baltimore, who was employed by Glenn Services as a truck driver, pleaded guilty on October 30, 2015 to the conspiracy and bribery.

The guilty pleas 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 Northwest Transfer Station (NWTS) and the Landfill.  Baltimore City’s waste management system generates revenue for the City by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities.  The City contracts with private salvage companies to purchase and remove scrap metal from its trash collection facilities. DPW employees at the Landfill and NWTS are required to place the recyclable scrap metal in separate bins provided by the salvage companies.  The salvage companies regularly pick up the scrap metal and, based on predetermined prices per ton, the salvage companies pay the City for the value of the scrap metal.           

Baltimore 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 and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located farther within the Landfill.  Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.

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

According to facts agreed upon by Wilson and Glenn, at times when Wilson drove a truckload of trash to the Landfill, neither he nor Glenn Services was charged a disposal fee.  In return, Glenn Services paid scale house employees a bribe of $100 per truckload of trash.  After a certain number of unpaid trips, Glenn would arrange for himself or one of his drivers, including Wilson, to meet a scale house operator to pay the balance of the cash bribes.

In a recorded phone conversation on January 23, 2015, Wilson explained to a scale house employee why Glenn Services had not yet paid bribes on dozens of trips to the Landfill.  Wilson said he had tried to text the employee using coded language to arrange a meeting, and that he carried the bribery money around in his pocket for so long that he eventually tried to give it back to Glenn, but Glenn insisted that Wilson keep the money until the employee was ready to receive it.

In another recorded phone conversation with the employee on January 29, Wilson said he needed the “numbers for the dinner,” and the employee replied that Glenn Services still owed for 34 trips, or $3,400.  In a subsequent call, Wilson confirmed that in addition to paying this amount, Glenn would also pay for the few times Glenn Services was actually charged for dumping (at the FBI’s direction).

On February 1, 2015, Wilson met the employee at a parking lot on Edmondson Avenue in Baltimore City and gave the employee $2,500 in cash.  He said that Glenn would give her the rest later in the week, and complained about the times Glenn Services was actually charged a disposal fee, which was a “[c]ouple of them…was like 16, 1700 dollars.”

On April 21, 2015, in a series of phone calls and text messages, the employee told Wilson that Glenn owed for 39 trips since February 1, 2015, plus for five other trips, for a total of $4,400.  Wilson arranged a meeting between the employee and Glenn.

On April 23 and 24, Glenn met with the employee, providing a total of $4,000 in cash for 40 trips to the Landfill.  Also during the meetings, they agreed to deal directly with each other without going through Wilson or Tamara Washington, another DPW employee, and to try to meet more regularly every time Glenn’s drivers made 10 trips to the Landfill.

From July 1, 2014 to May 1, 2015, Wilson fraudulently gave and agreed to participate in giving DPW employees cash payments in lieu of paying waste disposal fees that totaled more than $5,000.

Glenn and Wilson face a maximum sentence of five years in prison for the conspiracy and 10 years in prison for bribery. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Glenn on January 15, 2016 at 9:30 a.m. and for Wilson on January 12, 2016, at 9:30 a.m.

Former DPW employees Tamara Oliver Washington, age 55, and William Charles Nemec, Sr., age 55, both of Baltimore; and commercial haulers Larry Lowry, age 61, of Orchard Beach, Maryland; Mustafa Sharif, age 63, of Baltimore; and Adam Williams, Jr., age 52, of Randallstown, have pleaded guilty to their participation in the bribery scheme. Nemec and another DPW employee, Michael Theodore Bennett, age 46, also of Baltimore, have pleaded guilty to a related “junking” scheme. Washington and Nemec have each agreed to the entry of an order to pay $6 million in restitution, and Bennett agreed to the entry of an order to pay restitution of $526,273.  Sharif, Williams and Lowry have agreed to the entry of an order to forfeit and pay restitution of $500,000, $900,000, and $350,000, respectively.

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, who is prosecuting the case.

Greenbelt, Maryland – Gavin Burns Smith, age 45, of New Port Richey, Florida, pleaded guilty today to selling misbranded drugs with the intent to defraud, in connection with the sale to bodybuilders of peptides which were not approved by the FDA for human use.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office.

“FDA’s system for the review and evaluation of prescription drugs is in place to ensure that only safe and effective drugs reach U.S. consumers,” said Glen A. McElravy, Acting Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Office.  “When individuals go outside that system, they place the health of consumers at risk “We will continue to bring to justice those who attempt to market drugs that have not been evaluated by FDA and do not meet FDA standards of protection.”

According to his plea agreement, from 2010 to April 2012, Smith owned and operated Precision Peptides, located in Lutz, Florida.  From April 2012 to May 2015, Smith owned and operated DNA Peptides, located in New Port Richey, Florida.  Smith placed advertisements on the companies’ websites and sold body-enhancing injectable drugs to individuals seeking to enhance their physiques.  These drugs were not approved by the FDA for use in humans.

On August 22, 2012, law enforcement executed federal search warrants at Precision Peptides and DNA Peptides.  At some time thereafter, Smith began operating DNA Peptides out of his residence and continuing to sell drugs using a different website to avoid detection by law enforcement.

Smith caused DNA Peptides and Precision websites to display numerous disclaimers stating that all products sold were for “research/laboratory use only.”  Additionally, prior to purchasing the products from the website, each customer was asked to certify that he or she read the disclaimer that the “chemicals/materials for sale here are . . . not intended for human ingestion.”  Smith used these disclaimers as a ruse to avoid FDA scrutiny.  He advertised his products and website extensively in bodybuilding magazines and conventions.  Smith hired professional bodybuilders to promote his products and to claim that they personally experienced results from taking certain products he sold.  He also provided information to customers, via the company websites and Facebook pages, on how to self-administer drugs, including recommended dosages and placement of the injections, in order to best produce the desired bodily enhancements.

The drugs Smith sold included Growth Hormone Releasing Peptide-2, Growth Hormone Releasing Peptide-6, Melanotan II, Growth Hormone Releasing Hormone, Ipamorelin, Human Growth Hormone Fragment, Mechano Growth Factor, and Dehydroepiandrosterone, none of which the FDA has approved for use in humans.

On seven occasions from November 21, 2011 to March 12, 2015, Smith sold misbranded drugs to an undercover officer and shipped those drugs from Florida to locations in Laurel, Columbia and Beltsville, Maryland. None of the drug shipments included any directions for use of the products.  Additionally, although the labels stated that the products were for research only, Smith intended that the products be consumed by humans.

Smith has agreed to the entry of an order requiring him to forfeit $2,102,684.06, the value of the misbranded drugs subject to seizure.

Smith faces a maximum sentence of three years in prison.  U.S. District Judge George J. Hazel has scheduled sentencing for January 26, 2016, at 9:30 a.m.

United States Attorney Rod J. Rosenstein commended the FDA Office of Criminal Investigations for its work in the investigation and thanked Assistant U.S. Attorneys James A. Crowell IV and Kelly O'Connell Hayes, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Sheree Lanet Brown, age 36, of Washington, D.C., today to 42 months in prison, followed by three years of supervised release, for being the leader of a scheme to defraud Target by using counterfeit checks to purchase over $485,000 in gift cards and merchandise.  Judge Chasanow also entered an order requiring Brown to forfeit and pay restitution of $485,000.

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

According to her plea, from September 2011 to November 2013, Brown conspired with Ebony Ruffin, Nichelle Rogers, and others to use counterfeit personal checks in various aliases and false identifications to fraudulently obtain Visa gift cards and other merchandise from Target stores in Maryland, District of Columbia, Virginia, West Virginia, Pennsylvania and North Carolina.  Brown was the leader of the conspiracy, as she created and printed the counterfeit checks, which she used to purchase Visa gift cards and merchandise from Target.  Brown kept the amount of the fraudulent checks below $300, to avoid triggering the additional scrutiny required by Target for checks over that amount. Brown also gave counterfeit checks to Ruffin and Rogers in exchange for Visa gift cards and merchandise they fraudulently obtained by using the counterfeit checks.  Brown and her co-conspirators used the gift cards to purchase gift cards and merchandise from other retailers, such as Nordstrom, later returning the merchandise for cash. Brown and her co-conspirators presented over 1,400 counterfeit checks as payment for merchandise and gift cards, resulting in a total loss to Target of at least $485,000.

For example, from October 6 through October 18, 2013, Brown and a co-conspirator presented false identification and nine counterfeit checks, totaling $2,589.85, at Target stores in Frederick, Hagerstown and Aberdeen, Maryland and in Plymouth Meeting, Pennsylvania, to purchase a total of 16 Visa gift cards and other merchandise.  On October 10, 2013, Brown redeemed three of the fraudulently obtained Visa gift cards at a Nordstrom store in Columbia, Maryland, to purchase three Nordstrom gift cards totaling $300.  Brown later returned the purchased merchandise at Nordstrom for cash.

Ebony Nicole Ruffin, age 29, of District Heights, Maryland, and Nichelle Nicole Rogers, age 28, of Washington, D.C., previously pleaded guilty to their participation in the scheme and were sentenced to 27 months in prison and 30 months in prison, respectively.  Ruffin was also ordered to pay restitution of $485,000.

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 for its work in the investigation and thanked Assistant U.S. Attorneys Kelly O'Connell Hayes and Thomas P. Windom, who prosecuted the case.

Baltimore, Maryland – Richard Smith, age 31, and Bruce Jeffries, age 36, both of Baltimore, Maryland each pleaded guilty today to conspiracy to distribute and possess with the intent to distribute heroin.

The guilty pleas 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 Baltimore City State’s Attorney Marilyn J. Mosby.

According to his plea agreement, beginning in at least January 2014 and continuing through December 10, 2014, Smith conspired with others to distribute heroin in Baltimore. According to Jeffries’ plea, he joined the conspiracy in August 2014. During the conspiracy, Smith and Jeffries met with co-conspirators to provide heroin for distribution by members of the conspiracy.  Smith was the supervisor of this conspiracy and was responsible for providing the heroin distributed by the co-conspirators.  Between September and November of 2014, law enforcement intercepted telephone conversations between Smith, Jeffries, and other conspirators.  During these calls, Smith and Jeffries were heard discussing the distribution and payment for various amounts of heroin.  Smith was also intercepted giving members of the conspiracy instructions regarding the distribution of narcotics.  On November 14, 2014, law enforcement executed a search warrant at a “stash” house used by members of the conspiracy. During the search, law enforcement recovered 400 gel capsules of heroin from inside the stash house, along with another 100 gel capsules of heroin from a co-conspirator.  This seizure precipitated intercepted phone conversations between Jeffries, Smith, and another co-conspirator regarding the seizure.

Smith and Jeffries agree that during their participation in the conspiracy, the conspirators were responsible for the distribution of between one and three kilograms of heroin.  To date, 12 co-conspirators, including Smith and Jeffries, have pleaded guilty to their roles in the heroin distribution conspiracy and one defendant has been sentenced to seven years in prison.  The remaining defendants are awaiting sentencing.

Smith and the government have agreed that if the Court accepts the plea agreement Smith will be sentenced to 12 years in prison.  Jeffries faces a mandatory minimum of five years and a maximum of 40 years in prison. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Smith and Jeffries on December 14 and December 15, respectively, each at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Matthew Hoff, a cross-designated Baltimore City Assistant State’s Attorney, part of the Baltimore initiative to combat violent crime, who is prosecuting the case.

Baltimore, Maryland – Malcomb C. Cork, age 55, of South Carolina, pleaded guilty today to causing more than $187,000 to be diverted from his employer’s bank account.

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

According to his plea agreement, from 2004 until mid-2012, Cork was the President of a Maryland company that distributed lawn and garden supplies.  Under the terms of his contract with the company, Cork also was permitted to operate a business he established called Medical Solutions, Inc. (MSI).  MSI executed a licensing agreement with Chemence LLC, a company that manufactured and distributed products, including a medical grade adhesive.  Under the agreement, MSI was required to pay Chemence $187,500 by July 1, 2011.  On that date, Cork wrote a check to Chemence for $187,500 drawn on his investment account, which was returned due to insufficient funds.

Cork admitted that on July 15, 2011, he directed subordinates to transfer $187,500 from the lawn and garden supply company’s operating account to an account in the name of Chemence LLC.  When the Chief Financial Officer (CFO) for the company, who was on vacation at the time of the funds transfer, returned and asked about the expenditure, Cork told the CFO that the funds were transferred to a trade show vendor with which the company was doing business.  Cork advised the CFO that he would obtain an invoice in support of the money transfer.  Despite repeated requests from the CFO, Cork never supplied an invoice to support the charge.  Eventually the company discovered that the payment was unrelated to its business and attempted – unsuccessfully – to recover the money.  Cork admitted that he knew he was not authorized to direct the funds transfer, but did so anyway for his own benefit.

Cork and the government have agreed that if the Court accepts the plea agreement Cork will be sentenced to no more than 15 months in prison.  Chief U.S. District Judge Catherine C. Blake has scheduled his sentencing for February 29, 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 FBI for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys P. Michael Cunningham and Aaron S. J. Zelinsky, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced David Chris Simms, age 39, of Suitland, Maryland, today to 130 months in prison, followed by five years of supervised release, for possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge 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 Simms’ plea agreement, on September 19, 2014, members of the Prince George’s County Police Department executed a search warrant at Simms’ residence.  During the search, officers recovered a .40 caliber, and a 9 mm handgun, each loaded with a 31 round extended magazine; two additional magazines loaded with .40 caliber and 9 mm ammunition; and an open box of 9mm ammunition. In addition, law enforcement recovered at least 28 grams of crack cocaine, approximately 1.4 kilograms of marijuana, $8,900 in cash, and heat sealer bags.  The guns and drugs were all found in Simms’ bedroom.  Officers also recovered $1,064 from Simms on the same day.  The cash seized from Simms and from his bedroom was proceeds of his drug trafficking business.

Simms had a previous felony conviction and was prohibited from possessing a firearm or ammunition.

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

Baltimore, Maryland – Franklin Albert Johnson, age 41, of, Westminster, Maryland, has been charged with attempted bank robbery and carjacking, in connection with the July 23, 2015, attempted robbery of a bank in Mt. Airy, Maryland, in which the alleged carjacking victim was forced to wear and carry purported explosive devices. The criminal complaint was filed on October 27, 2015 and unsealed on October 29, 2015 at Johnson’s initial appearance. Johnson remains detained.

The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Chief Gary Gardner of the Howard County Police Department.

According to the affidavit filed in support of the criminal complaint, on July 23, 2015, a man entered the bank while talking on a cell phone and carrying a briefcase.  He approached a bank employee and handed the employee the cell phone. He also opened the briefcase and displayed what appeared to be a homemade explosive device.  The bank employee immediately ordered the evacuation of the bank.  The suspected robber remained in the bank briefly, and was seen on bank surveillance video using a pair of scissors to remove a second apparent explosive that was attached to his person with duct tape. After the man removed the device from his body, he left the bank, but stayed at the scene and surrendered to police when they arrived.

The man told law enforcement that he had been operating as a “hack” (unlicensed taxi) near Lexington Market, in Baltimore City, and had picked up an unknown male customer (“UM”), subsequently identified as Johnson, who later forced him at gunpoint to wear what he believed was an explosive device, and to carry a second purported explosive device into the bank in the briefcase.  Johnson allegedly told the victim that he was going to rob a bank for him and that if he did as directed he would not be harmed.  Johnson dropped the victim off at the bank, and directed him to hand the cell phone to a bank employee. The victim entered the bank and gave the phone to a bank employee, who spoke with Johnson, who was already on the line.  Upon exiting the bank, the victim saw that Johnson was no longer parked in the parking lot, but was afraid he would return, so he walked across the street from the bank and waited for the arrival of the police, to whom he surrendered.  The victim’s vehicle, a Gold Hyundai Elantra, was recovered a short time later, parked near the Woodbine Inn. The two purported explosive devices were recovered and found to be inert.  An examination by the FBI Crime Lab found that the devices were carefully designed and constructed to look like actual explosive devices.

Johnson faces a maximum sentence of 20 years in prison for attempted bank robbery and a maximum of 20 years in prison for carjacking.

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

United States Attorney Rod J. Rosenstein commended FBI and Howard County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney John F. Purcell, who is prosecuting the case.

Greenbelt, Maryland – Francesca Maria Daniele, age 49, of LaPlata, Maryland, pleaded guilty today to wire fraud in connection with the misuse of her government credit card.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Elton Malone, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Special Investigations Branch.

In July 2014, Daniele worked at the National Institutes of Health (NIH), purchasing equipment from vendors and administering contracts on behalf of NIH.  To perform her job, Daniele was issued a government credit card.

According to her plea agreement, from July 12 through July 28, 2014, Daniele used her government credit card to fraudulently make approximately $21,830.19 of personal purchases at retail stores.  She used her cell phone to contact the credit card’s customer service center to facilitate approval of those purchases.  To conceal the scheme, Daniele falsely reported that her credit card had been lost.

Additionally, on October 15, 2014, Daniele opened a credit card account in the name of her minor child.  She used the credit card to buy a laptop computer, video game console, a ring and other items, all of which were shipped to a hotel room she rented under an assumed name.  Daniele did not pay for several of the items, resulting in a loss to the credit card company of approximately $508.48.

Daniele has agreed to the entry of an order requiring her to forfeit and pay restitution of at least $22,338.67, the total amount of loss resulting from her conduct.

Daniele faces a maximum sentence of 20 years in prison.  U.S. District Judge Theodore D. Chuang scheduled sentencing for March 8, 2016, at 10:00 a.m.

United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation, and thanked Assistant United States Attorney Thomas P. Windom and Trial Attorney Justin D. Weitz of the Justice Department’s Public Integrity Section, who are prosecuting the case.

Baltimore, Maryland – Brian Lee Long, age 48, of Rising Sun, Maryland 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; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Special Agent Ed Collins of the U.S. Army Criminal Investigation Command.

According to Long’s plea agreement, from April 8, 2001 through January 21, 2015, Long was employed at the Kirk U.S. Army Health Clinic at Aberdeen Proving Ground, initially as a paramedic, then as a supply technician at the Logistics Division.  Long admitted that from October 1, 2014 through December 31, 2014, he stole 73 laptop computers, 19 desktop computers and three monitors from the Logistics Division warehouse.

Long sold at least 19 of the stolen laptop computers and four of the stolen desktop computers to pawn shops for $18,400.  Long also provided four laptop computers to another person, who sold them to a pawn dealer.

The total loss to the government as a result of Long’s conduct was $40,000, which is the amount Long is required to forfeit as part of his plea agreement.

Long faces a maximum sentence of 10 years in prison for theft of government property.   U.S. District Judge George L. Russell, III has scheduled sentencing for February 12, 2016 at 9:30 a.m.

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

Baltimore, Maryland – Michael Resnick, a/k/a Michael Reznikov, age 54, and his wife, Alina Margulis, age 49, both of Brooklyn, New York, along with Daniel Alexander, age 53, of Pikesville, Maryland pleaded guilty today to conspiracy to distribute oxycodone and alprazolam. Margulis also pleaded guilty to money laundering, and Resnick also pleaded guilty to structuring currency deposits.

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

“State and federal authorities are working to shut down ‘pain clinics’ that are really just fronts for criminals who divert pharmaceutical drugs,” said U.S. Attorney Rod J. Rosenstein. “Michael Resnick and his wife Alina Margulis operated a clinic in which they hired Daniel Alexander to prescribe opioid drugs to people who had no medical need for the drugs. Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper oversight.”

“Those who facilitate the illegal use of controlled substances negatively impact our entire community and will be held accountable,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.

According to their plea agreements, in late 2010 and early 2011, Resnick and Margulis traveled to Florida to learn how to operate a pain clinic under the direction of co-defendant Gerald Wiseberg, who owned and operated Total Care Medical Center in Deerfield Beach, Florida. Wiseberg told Resnick that operating a pain clinic would be a lucrative business and that no medical experience was required.

By early 2011, Resnick, Margulis and Wiseberg agreed to open a similar pain management clinic in Maryland.  In March 2011, the defendants opened Healthy Life in Owings Mills.  Healthy Life later moved to larger space in Timonium, Maryland, until it closed on May 15, 2012.  Both Healthy Life locations attracted large and unruly crowds.  Customers caused disturbances outside the locations, used narcotics and engaged in narcotics transactions.  Over 80% of the customers who received a prescription from Healthy Life were from out of state, and approximately 97% of the customers received at least one prescription for oxycodone.

Wiseberg hired an individual to serve as the medical director at Healthy Life because Wiseberg believed that the individual would write prescriptions for narcotics to customers without a legitimate medical need. This individual resigned as the medical director in August 2011, when the Maryland Board of Physicians—the agency authorized to issue licenses to practice medicine in Maryland and to discipline licensees—initiated an investigation into the individual’s prescribing practices.  This investigation ultimately led the Maryland Board of Physicians to suspend the individual’s medical license.

In September 2012, Resnick, Margulis and Wiseberg hired another medical director, Daniel Alexander, because they believed that Alexander would likewise write drug prescriptions to customers without a legitimate medical need.  Specifically, Margulis told Alexander that Healthy Life only prescribed pills and did not offer any alternative therapies.  

In order to increase profits, Alexander spent a limited amount of time with each patient so that he could see a very large number of patients each day.  From September 2011 to March 2012, Alexander issued prescriptions to 627 patients on 946 separate office visits.  Of those 946 visits, the customer received a prescription for oxycodone 97% of the time, and a prescription for alprazolam 23% of the time, despite Alexander’s knowledge that many of the customers did not have a legitimate medical need for the drugs.  In a few instances, Alexander prescribed oxycodone to customers who he simultaneously discharged from Healthy Life, based on indications they were abusing illicit drugs.  Alexander was paid $150 an hour, and received a total of $30,000 for his activities in the scheme.

Just as with Total Care, Resnick, Margulis and Wiseberg, who were not doctors, established the standard operating procedures for Healthy Life, including which drugs the prescribing physician could prescribe and the maximum dosage amounts of these drugs.  Healthy Life also accepted cash payments in exchange for providing prescriptions for large amounts of oxycodone, alprazolam and other drugs, to customers who did not have a legitimate medical need for the drugs.

To maximize profits, they also encouraged the prescribing physicians to prescribe the maximum amount of oxycodone to each customer; and established that prescriptions would be written for 28-day cycles as opposed to 30-day cycles. Additionally, Margulis and Resnick handled complaints by Healthy Life customers who were unhappy with the prescriptions they received, particularly when a medical provider might prescribe less oxycodone than the customer wanted.  In those instances, Margulis and Resnick would intervene and ask the prescribing medical provider to reconsider, knowing it would lead the provider to give the customer what the customer wanted.

Margulis and Resnick knew when customers would fail a urinalysis screening, either because the customers had illicit drugs (such as cocaine) in their system or because their sample lacked any indication of oxycodone, thereby signaling they were diverting their previous prescription or taking more doses than indicated by their previous prescription and thereby causing them to run out of oxycodone before their next appointment.  Resnick and Margulis arranged that some of these customers who failed their urinalysis screen could simply retake the test at a later time so that the customers would continue to return to Healthy Life.      

Margulis and Resnick received 28% of the net profits from Healthy Life, obtaining a total of $280,000. Wiseberg received 30% of the net profits.  Margulis kept the accounting books for the business.  From June 2011 to April 2012, Margulis wrote monthly checks of $12,000 to an entity Wiseberg controlled. Additionally, Resnick and Margulis paid Wiseberg $165,000 in cash in 2011 for Wiseberg’s 30% share.

In order to evade currency transaction reporting requirements, Resnick and others at his direction deposited cash accumulated from customers in amounts less than $10,000 into several bank accounts for Healthy Life.  Resnick admitted that he engaged in a pattern of illegal structuring involving more than $100,000 in a 12-month period.

Resnick and Margulis have agreed to the entry of an order to forfeit $280,000, the amount of illicit profits they received from the scheme.  Alexander has agreed to the entry of an order to forfeit $30,000, the amount he was paid for his activities at Healthy Life.         

Resnick and Margulis face a maximum sentence of 20 year in prison for the drug conspiracy.  Margulis faces a maximum sentence of 10 years in prison for money laundering; and Resnick faces a maximum sentence of 10 years in prison for structuring currency deposits.  Alexander and the government have agreed that if the Court accepts his plea agreement, Alexander will be sentenced to between 36 and 72 months in prison.  Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for Margulis and Resnick for March 18, 2016 at 10:30 a.m. and noon, respectively, and sentencing for Alexander on March 25, 2016 at 10:30 a.m.

Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 82, of Boca Raton, Florida pleaded guilty on October 15, 2015 to his participation in the conspiracy and is scheduled to be sentenced on March 7, 2016 at 9:15 a.m.

United States Attorney Rod J. Rosenstein commended DEA, IRS-CI, Baltimore County Police Department and Baltimore County State’s Attorneys’ Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced David C. Andrews, age 52, of Salisbury, Maryland, today to 6 years in prison, followed by lifetime supervised release, for distribution of child pornography. Judge Bennett also ordered that Andrews must continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).  Andrews was already required to register as a sex offender due to his previous conviction for possession of child pornography.                                 

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 Worcester County Sheriff Reggie T. Mason, Sr.; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; and Wicomico County State’s Attorney Matthew Maciarello.

According to Andrews’ plea agreement, between May 28 and July 12, 2010, Andrews made files depicting children engaged in sexually explicit conduct available to others through a file sharing program installed on his computer.  On July 17, 2010, a Wicomico County Sheriff’s detective working on undercover investigations of individuals trafficking child pornography through the use of file sharing programs was able to download child pornography being shared using the internet account at Andrews’ residence.  A search warrant was executed at Andrews’ home and law enforcement located Andrews’ computer which contained 49 images and approximately 160 video segments of child pornography.  Andrews admitted that he collected and shared child pornography over the internet, including the video downloaded by the detective.  On October 12, 2011, Andrews pleaded guilty to possession of child pornography in Wicomico County Circuit Court.  The charge for possession of child pornography with intent to distribute was dropped.

Also according to Andrews’ plea agreement, on May 12, 2014, a Worcester County Sheriff’s Office detective was conducting an online investigation for individuals using file sharing software to share child pornography.  During the investigation, the detective downloaded a video from Andrews that depicted a prepubescent girl engaged in sexually explicit conduct. Investigators determined that the IP address associated with the account was assigned to Andrews’ residence.

On June 20, 2014, Andrews saw law enforcement officers conducting surveillance and photographing his home in preparation for obtaining a search warrant.  Andrews admitted that on June 22, 2014, he ran memory-wiping software on the hard drive and reinstalled the operating system, thereby deleting any files or images, including any files containing child pornography from his laptop.  When law enforcement executed a search warrant at Andrews’ home on June 24, 2014, they were initially unable to find any devices belonging to Andrews or that appeared to be associated with child pornography.  After locating Andrews’ laptop in the laundry room, investigators realized the hard drive had been removed.  Andrews directed the investigators to a truck tire in the back yard of the uninhabited house next door where law enforcement recovered a gallon zip lock bag containing the hard drive from the laptop, as well as a tablet computer.

Although a forensic examination of the laptop hard drive was not able to recover any images or files, a forensic analysis of the tablet recovered 142 images of child pornography. Andrews admitted that he attempted to delete the files in an attempt to conceal them from investigators.  Twenty-five of the images belonged to a series of child pornography whose victim(s) were previously identified by the National Center for Missing and Exploited Children.

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 Ocean City, Maryland, the Worcester County Sheriff’s Office, Maryland State Police, Wicomico County Sheriff’s Office, and the Wicomico 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 Aaron S. J. Zelinsky, who prosecuted the case.

Baltimore, Maryland – Dominic Evans, a/k/a “FlatLine,” age 25, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.

The guilty plea 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.

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

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

Evans admitted that as a member of UDH he sold crack cocaine, heroin and other narcotics with UDH members.  In addition to selling drugs, Evans admitted that he participated in a robbery on January 15, 2007, in which the victim was stabbed.  Evan also admitted that on October 5, 2010, he and a co-defendant committed an armed robbery of two individuals who were selling marijuana in the area, but who were not UDH members.  After stealing $150 from one of the victims, Evans’ co-defendant began to shoot at the two individuals.  One of the victims was shot once and survived his wound, but the other victim, who was shot at least three times, died from her wounds.  The murder was captured on CCTV.  A Baltimore City jury acquitted Evans and his co-defendant of this murder.

Finally, Evans admitted that November 11, 2013, in the 100 block of South Monroe Street in Baltimore, he started a fight with another individual, produced a large 10” kitchen knife and began stabbing and slicing at the victim.  Evans took $50 from the victim.  The victim was taken to Shock Trauma with stab wounds to his head, upper back and hands.   The knife was recovered at the scene.  CCTV captured the assault. Approximately 7 minutes later, Evans walked into a hospital four blocks away, complaining of a slice wound to the palm of his left hand.  Evans pleaded guilty to this first degree assault in Baltimore City Circuit Court and was sentenced to 12 years in prison.

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

Evans and the government have agreed that if the Court accepts the plea agreement Evans will be sentenced to between 262 and 365 months in prison.  U.S. District Judge George L. Russell, III has scheduled sentencing for February 5, 2016, at 2:00 p.m.

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

Baltimore, Maryland – Christine Little, age 43, of Glen Burnie, Maryland pleaded guilty today to aiding in the preparation of false tax returns.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“IRS Criminal Investigation is determined to stop false tax refund schemes,” said Thomas Jankowski, IRS Criminal Investigation Special Agent in Charge, Washington D.C. Field Office.  “Ms. Little’s guilty plea sends the message that participation in refund fraud schemes does not pay and those who choose to engage in defrauding the government will be prosecuted.”

 According to her plea agreement, Little identified herself as the CEO of TNT Taxes.  From February to June 2011, she recruited taxpayers to use her services, purporting to specialize in business and individual taxes and “amendments.”

Little admitted that she prepared 29 false federal tax returns.  She placed information on the tax returns that did not reflect the information given by clients; falsely inflated withholdings and real estate taxes; and caused the returns to contain false personal property taxes, home mortgage interest and charitable deductions.

In April 2011, an undercover federal agent requested that Little prepare his individual federal tax return.  The tax return prepared by Little did not accurately reflect the information the agent supplied to her.  Instead, the tax return included false deductions and inflated withholding amounts, resulting in a fraudulent refund claim of more than $11,000.

Little admits that the loss resulting from the false tax returns she filed exceeded $330,000.

Little faces a maximum sentence of three years in prison.  U.S. District Judge George L. Russell, III has scheduled sentencing for February 5, 2016 at 9:30 a.m.

United States Attorney Rod J. Rosenstein commended the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case.

Baltimore, Maryland – Randy Jones, age 38, of Baltimore, pleaded guilty today to robbing a video game store, and admitted to four other robberies.

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; 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 his plea agreement and court documents, on September 24, 2014, Jones, co-conspirator Daryl Norris and another individual entered the Game Stop on Liberty Road in Baltimore, pointing fake guns, which appeared to be real, at an employee. The robbers demanded that the employee open the register, from which they took money.  The robbers forced the employee to show them a safe and game systems, and then bound him with zip ties. The robbers took the employee’s cell phone as well as cash and merchandise.

Jones admitted to committing four other robberies from August 26 to December 15, 2014 with Norris and/or others, using a similar modus operandi: Rainbow Clothing on Maiden Choice Lane in Baltimore; 7-Eleven on Pleasant Plains Road in Towson, Maryland; Metro PCS in Baltimore; and the same Game Stop store.

The total loss from the five robberies was $15,312.51.  Jones has agreed to the entry of an order requiring him to pay restitution in that amount.

Jones and the government have agreed that if the Court accepts the plea agreement, Jones will be sentenced to between 108 and 151 months in prison.  U.S. District Judge George L. Russell III scheduled sentencing for February 5, 2016, at 11:30 a.m.

Darryl Norris, age 37, of Baltimore, previously pleaded guilty to robbing the video game store, and admitted to six other robberies.  Judge Russell sentenced Norris on October 16, 2015 to nine years in prison.

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

Baltimore, Maryland –Taylor King Pepe, age 21, of Laurel, Maryland pleaded guilty today to an armed robbery conspiracy, and to aiding and abetting the brandishing and use of a gun during a crime of violence, arising from the robbery of an individual who was shot and killed.

The plea agreement 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; Chief Gary Gardner of the Howard County Police Department; and Howard County State’s Attorney Dario Broccolino.

According to his plea agreement, on January 23, 2014, Pepe, Desmick Lewis, Amanda McAdoo and Lauren Maready planned to rob the individual of Oxycodone pills.  Maready drove the conspirators to the location where McAdoo had arranged to meet the victim, purportedly to buy the pills from the victim.

When they arrived at the meeting place, Lewis hid behind a fence and McAdoo went to meet the victim in his car, while Pepe and Maready remained in her car.  Lewis approached the robbery victim’s car and began shooting. Upon hearing the shots, Pepe and Maready drove away, leaving Lewis and McAdoo.  The victim was discovered by Howard County Police a short time later, after his car had run into a tree.  There were bullet holes in the driver’s side window and the victim had been shot several times in the head.  He subsequently died.  The conspirators met a short time later near McAdoo’s residence in Laurel, close to where the shooting occurred.  Pepe told Maready to drive them to his friend’s home in Elkridge, Maryland, where Pepe and McAdoo went inside and discussed the robbery/murder. Maready then drove Pepe, McAdoo and Lewis to Lewis’ grandmother’s house in Columbia, Maryland.  Avery Terry and another person joined them later and they discussed the robbery/murder. Terry then drove Pepe, McAdoo and Lewis, along with the gun, to Pepe’s home.

On January 25, 2014, Pepe, McAdoo and Maready were arrested in connection with the robbery and shooting.  No search was conducted of Pepe’s residence at that time.  On January 26, 2014, knowing that the other conspirators had been arrested, Lewis went to Pepe’s residence, spoke to Pepe’s mother, and went down to the basement alone to retrieve an item.  Lewis texted Terry and the two men met at Lewis’ grandmother’s house. Law enforcement officers, who had set up surveillance at the residence, saw Terry trying to shield Lewis from view as they left the home and got into Terry’s car.  Police made a traffic stop and arrested Lewis.  A black .38 caliber revolver was recovered from Terry’s car.  The victim was killed with a .38 caliber revolver.

Pepe faces a maximum sentence of 20 years in prison for the robbery conspiracy; and a mandatory minimum of seven years and a maximum of life in prison for aiding in the discharge of a firearm during a crime of violence.  U.S. District Judge George L. Russell, III has scheduled sentencing for January 28, 2016 at 9:30 a.m.  Pepe remains in federal custody.

Avery Terry, age 23, of Laurel, pleaded guilty in U.S. District Court to the January 21, 2014 robbery of a CVS Pharmacy in Elkridge, Maryland, using and brandishing a firearm during that robbery, and to being an accessory after the fact to the January 23, 2014 robbery resulting in death.  Terry was sentenced to 181 months in prison.

Amanda McAdoo, age 20, of Laurel, Lauren Maready, age 20, of Highland, Maryland; and Desmick Lewis, age 23, of  Columbia, have all pleaded guilty in Howard County Circuit Court to their roles in the January 23, 2014 robbery and murder. They are awaiting sentencing.

United States Attorney Rod J. Rosenstein commended the ATF, Howard County Police Department and Howard County State’s Attorney’s Office, especially Assistant State’s Attorneys Brian Furlong and Devora Kirschner, for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant United States Attorney Sandra Wilkinson and Special Assistant United States Attorney Lauren E. Perry, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Gregory Wayne Gibson, age 63, of Cockeysville, Maryland, today to five years in prison, followed by 20 years of supervised release, for distribution of child pornography. Judge Bennett also ordered that Gibson 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).

For the past three to four years, Gibson was a volunteer youth group leader at a church in Baltimore County, working with children ages nine through eighteen.  Gibson also assisted with childcare at his wife’s unlicensed home daycare, which included infants.

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); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to Gibson’s plea agreement, he collected and distributed child pornography. In July 2014, a detective from the Baltimore County Police Department (BCPD) downloaded a file containing child pornography that Gibson had made available using a file sharing program. The video file depicted a prepubescent female engaged in sexually explicit conduct with an adult male.  On February 24, 2015, a BCPD detective again downloaded a video file made available by Gibson using a file sharing program, which depicted a minor female engaging in sexually explicit conduct.  On April 16, 2015, a search warrant was executed at Gibson’s residence and at his employer’s location in Baltimore City.  During the searches, investigator’s seized Gibson’s laptops and external hard drives, as well as two flash drives, all of which contained images and/or videos of child pornography.

Gibson voluntarily spoke to investigators and admitted using file sharing software to download child pornography.  Child pornography was found during a forensic examination of Gibson’s laptops, external hard drives and flash drives, including the videos downloaded by the BCPD detectives during the investigation. The electronic media contained in excess of 260,000 images and videos.  A preliminary review revealed that the majority of those files depicted minors engaging in sexually explicit conduct.  There were also a significant number of images of child erotica and of images and videos depicting infants and toddlers engaging in sex acts with adults, including images and videos depicting bondage and other acts.          

The forensic analysis of the digital evidence seized from Gibson’s residence and place of employment revealed that Gibson was acquiring images of child pornography as recently as five days before the state search warrant was executed.        

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, the 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. Attorney Paul E. Budlow, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Peter Wisniewski, age 52, of Huntingtown, Maryland, a physician in a Calvert County medical group, today to three years of probation for writing prescriptions for Oxycodone and Adderall in the names of three of his patients that he then kept for his own use. Judge Grimm also ordered Wisniewski to pay a fine of $40,000, which Wisniewski paid at today’s sentencing hearing.              

As required in his plea agreement, Wisniewski voluntarily surrendered his DEA controlled substances license and agreed that he would not practice medicine for at least two years.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Calvert County Sheriff Mike Evans.

According to his plea agreement, between March 2012 and April 2015, Wisniewski wrote prescriptions for Oxycodone and Adderall in the names of three elderly patients but kept the drugs for himself.  Wisniewski caused the pharmacy to fill the prescriptions, and he picked up the prescriptions without the knowledge or authorization of the patients in whose names he had written the prescriptions.  Wisniewski falsely represented to the pharmacy that as the prescribing physician he was collecting the prescriptions in order to deliver them to his elderly patients.

To conceal the scheme, Wisniewski created false entries in the medical files of the three patients in whose names he was writing the prescriptions.  During the scheme Wisniewski obtained more than 8,000 Oxycodone pills written in the names of those three patients.

The decision whether to allow Wisniewski to practice medicine at all in the future will ultimately be made by the state medical board.

United States Attorney Rod J. Rosenstein commended the Department of Health and Human Services Office of Inspector General and the Calvert County Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack and Lindsay Eyler Kaplan, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Ernest Thomas, a/k/a “EJ,” age 27, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and cocaine, in connection with his membership in a group known as “Coppin Court” which operated 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 J. Mosby.

According to his plea agreement, Thomas is a long-time drug distributor who has distributed heroin and crack cocaine with members of the Coppin Court group in the down the hill section of Cherry Hill.  Thomas obtained some of his narcotics from fellow Coppin Court member including one of the main narcotics suppliers, Nathaniel Lightford.

For example, on December 5, 2012, Thomas was observed on CCTV running in the down the hill section of Cherry Hill. Thomas ran down to an area near the playground, removed a plastic bag from the ground, took out small objects, and handed them to an individual who was subsequently stopped by police.  The police told the individual that he had just been observed buying drugs, and the individual removed a gel cap of heroin from his jacket.  Similar events took place with a second drug purchaser, who possessed two gel caps of suspected heroin.

During his participation in the drug conspiracy Thomas admitted to distributing between three and 10 kilograms of heroin, and between 840 grams and 2.8 kilograms of crack cocaine.

Nathaniel Lightford, a/k/a “Taboo,” age 35, of Windsor Mill, Maryland; Robert Sanders, a/k/a “Man,” age 28, and Danna Fraser, age 26, a/k/a “Stroke,” both of Baltimore, previously pleaded guilty to their roles in the conspiracy and were sentenced to 135 months in prison, 132 months in prison, and 70 months in prison, respectively.

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 McLane, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Karen Kimble, a/k/a “Karen Kimble-Mamah” and “Karen Mamah,” age 40, of Owings Mills, Maryland, to four years in prison followed by three years of supervised release for six counts of wire fraud, five counts of subscribing to a false tax return, five counts of aiding in the filing of a false tax return, four counts of aggravated identity theft and visa fraud.  Judge Quarles also entered an order that Kimble pay $84,411 in restitution to the IRS and $26,419.92 in restitution to the State of Maryland.

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 Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS), Baltimore District Office.

According to evidence presented to the court during the two day trial, Kimble falsely held herself out to others as a tax preparer with the skill and knowledge to prepare tax returns for others. From 2007 to 2012, Kimble falsely inflated credits and deductions on her personal and client tax returns in order to fraudulently increase the tax refund.  Kimble increased the mortgage interest deduction on her and her alleged husband’s tax returns, often nearly doubling the amount she could properly claim, claimed education credits where she had not incurred expenses and invented tens of thousands of dollars in unreimbursed job expenses, when she had none.

Kimble provided some of her clients with a tax return that did not reflect the false deductions and credits, nor did she inform these clients of the fraudulent deductions/credits.  She filed these fraudulent returns using their personally identifiable information.  Kimble directed that the tax refunds be mailed or directly deposited to her, or that some of the refund was to be sent to the taxpayer and some to Kimble. On other occasions, Kimble prepared tax returns for friends, and without their knowledge, falsely inflated the deductions to obtain a larger refund, which she passed directly on to her friends.

The fraud loss related to the scheme totals $181,786 in fraudulent federal and state tax refunds, none of which she reported as income on her own tax returns. After accounting for the allowable, legitimate refunds for each victim, the amount owed to the IRS is $84,411 and the amount owed to the State of Maryland is $26,419.92.

Additionally, on February 14, 2008, Kimble married a Ghanian citizen, knowing that the marriage was not valid because the Ghanian was not legally divorced from his first wife.  Kimble prepared and filed false documents in state court and with the USCIS, purporting to show that the Ghanian citizen had divorced before she married him.

United States Attorney Rod J. Rosenstein praised HSI Baltimore, IRS-Criminal Investigation and the USCIS Baltimore District Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who prosecuted the case.

Baltimore, Maryland – A federal grand jury has returned separate indictments charging John Wilkerson, age 51, of Moultrie, Georgia, and James T. Shank, age 68, of Perry, Georgia, with a wire fraud conspiracy and offering and accepting illegal gratuities, in connection with the award of more than $53 million in federal government contracts.  The indictment was returned on October 8, 2015, and unsealed on October 21, 2015.

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 (OSI); and U.S. Small Business Administration Inspector General Peggy E. Gustafson.

According to Shank’s indictment, from August 28, 2006 until he retired on June 30, 2011, he was employed as a Program Manager at the United States Navy’s Space and Naval Warfare (SPAWAR) Systems Center. Shank worked with agencies within the Department of Defense to procure telecommunications equipment, software, and related services.

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

Co-Conspirator 2 was a program manager for an information technology company, Advanced C4 Solutions, or AC4S, from 2005 until 2011.  In 2011, Co-Conspirator 2 left AC4S and went to work for Wilkerson at SCSI.

The indictments allege that from September 2009 through August 2012 Shank conspired with Wilkerson and Co-Conspirator 2, to give them and the companies they worked for and/or owned an unfair competitive advantage in obtaining government contracts. In exchange, the indictments allege that Wilkerson offered, and Shank accepted, employment with SCSI while Shank was still a government employee and while he was taking official actions that benefited Wilkerson.  In addition, Wilkerson allegedly paid Shank $86,000 in the year after Shank retired from government service, funneling the payment through two other companies in order to conceal the source of the funds.

According to the indictments, Shank improperly shared information with Wilkerson and Co-Conspirator 2, and worked with them to structure the government contracts so as to give their companies an unfair advantage over other potential bidders.

For example, according to the indictment, Shank, Wilkerson, and Co-Conspirator 2 developed a request for proposal (RFP) for DO27, a contract to supply labor services for an Air Force technology project, including for overall project management services, so that AC4S would win the contract. On June 10, 2010, DO27 was awarded to AC4S in the amount of $18,332,738.10.  Wilkerson provided Co-Conspirator 2 with a quote for labor on behalf of SCSI that was less than the quote he had previously submitted on behalf of Iron Bow as their sales representative. After SCSI was selected as a subcontractor on DO27, it subcontracted with Iron Bow to provide most of the labor SCSI was supposed to provide under DO27.  Wilkerson was able to earn income from the work Iron Bow employees were doing by having SCSI act as a middleman and charging a mark-up on Iron Bow’s work.  Wilkerson and Co-Conspirator 2 then directed an SCSI employee to create false invoices supposedly documenting the hours SCSI employees spent working on DO27, which were submitted to AC4S and paid by the United States government.  SCSI received $6,794,432.98 on DO27 out of the $18 million AC4S received for providing labor for the project.

Shank also initiated the procurement process on more than 11 delivery orders that purchased telecommunications equipment and furniture as part of the Air Force project.  Those delivery orders were issued to Iron Bow in 2010 and 2011.  Shank made sure that the delivery orders included telecommunications equipment and/or furniture that were assigned SCSI-specific part numbers, thereby guaranteeing that SCSI would receive revenue from the delivery orders.  The indictment alleges that SCSI received approximately $33 million of the $35 million paid to Iron Bow under the various furniture and equipment delivery orders.

In late 2010 or early 2011, Wilkerson offered Shank employment.  Shank did not disclose that fact to anyone at SPAWAR and did not recuse himself from any of the contracts that benefited Wilkerson. In February 2011, Co-Conspirator 2 left AC4S and went to work for Wilkerson at SCSI.  According to the indictment, Co-Conspirator 2 received a $500,000 bonus when he joined SCSI, which was paid for by profit Wilkerson had earned on the furniture contracts.

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

Shank and Wilkerson face a maximum sentence of 20 years in prison for a wire fraud conspiracy; and two years in prison for offering and accepting illegal gratuities.  Shank also faces a maximum sentence of 5 years for criminal conflict of interest. Wilkerson and Shank had initial appearances in the Northern District of Georgia on October 13 and 14, 2015, respectively, and have an initial appearance scheduled in U.S. District Court in Baltimore on October 23, 2015, 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 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 Air Force OSI and the U.S. Small Business Administration Office of Inspector General for their work in the investigation.  Mr. Rosenstein praised Assistant U.S. Attorney Leo J. Wise AND Philip A. Selden, who are prosecuting the case.

Greenbelt, Maryland – A federal grand jury indicted Charleston Harris, a/k/a “Giovanni,” and “Leon Baye,”, age 36, and Phoebe Omwega, a/k/a “Star,” and “Sparkles,” age 27 both of Washington, D.C. on charges of conspiracy, sex trafficking of a minor, and attempted sex trafficking of a minor. The indictment was returned on October 19, 2015 and unsealed today upon the arrests of the defendants.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to the three count indictment, from October 2012 through June 2015, Harris and Omwega conspired to recruit minor females and adult females, to engage in commercial sex acts.  Harris and Omwega benefited financially from the proceeds generated by prostitution, including prostitution services provided minor females.

The indictment alleges that Harris and Omwega created and posted advertisements on Internet websites that advertised adult females and minor females, for prostitution using fake names, false ages, and pictures of females different from the actual females being advertised. Harris and Omwega facilitated prostitution by directing and managing multiple adult females and minor females to engage in prostitution and collected prostitution proceeds directly from the females.  Harris allegedly used violence and threats of violence to coerce adult females and minor females into complying with Harris’s directions and rules, including that the females could not contact family members or other individuals outside Harris’s organization. The indictment alleges that Harris physically assaulted a minor female victim in December 2012 for violating his rules.

According to the indictment, Harris and Omwega arranged and paid for hotel rooms in which adult females and minor females, engaged in prostitution and transported the females, including minor females, to hotels and other locations in Maryland, Florida, and the District of Columbia to engage in prostitution.  Between 2013 and 2014, Harris used email accounts to recruit, direct, and communicate with females working for him.  On June 15, 2015, Harris attempted to recruit a minor female to work for him as a prostitute.

Harris and Omwega each face a mandatory minimum sentence of 15 years and up to life in prison for conspiracy to engage in sex trafficking of a minor; and a mandatory minimum of 10 years in prison and up to life in prison for sex trafficking of a minor.  Harris also faces a mandatory minimum of 10 years in prison and up to life in prison for attempted sex trafficking of a minor.  An initial appearance was held for Harris and Omwega today before U.S. Magistrate Judge Jillyn K. Schulze in U.S. District Court in Greenbelt.  Omwega and Harris were detained pending detention hearings scheduled for October 23, 2015 at 3:00 p.m. and October 26, 2015 at 2:00 p.m., respectively.

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

MCETF partners with 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.

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

Greenbelt, Maryland – A federal criminal complaint has been filed charging Jose Antonio Jaramillo, age 53, of Lusby, Maryland, with production, receipt and possession of child pornography, coercion and enticement of a minor to engage in illegal sexual activity, and transmission of obscene material to a minor. The criminal complaint was issued on October 20, 2015, and unsealed today.

The charges were 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) Baltimore; Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement, Homeland Security Investigations Washington D.C.; Calvert County Sheriff Mike Evans; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to the affidavit filed in support of the criminal complaint, from approximately May 2014 through July 2015, Jaramillo, posing as a minor male approximately 12 to 17 years old, “Tommy James,” a/k/a “Thomas James Jones” and “Thomas James,” used social media to communicate with as many as 20 minor female victims.  Jaramillo allegedly utilized several photographs to establish the “Tommy James” persona and either posted them on the “Tommy James” social media account or sent them to the minor females he communicated with online.  According to the affidavit, Jaramillo, using the “Tommy James” persona, engaged in sexually explicit conversations with the minor females and/or induced them to produce sexually explicit images and videos and transmit those images to Jaramillo.  The complaint alleges that during some of his conversations with the victims Jaramillo also transmitted sexually explicit photographs to the victims.

Jaramillo faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison for production of child pornography; a minimum mandatory sentence of 5 years in prison and a maximum of 20 years in prison for receipt of child pornography; 10 years in prison for possession of child pornography; a minimum mandatory sentence of 10 years in prison and a maximum of life in prison for coercion and enticement of a minor to engage in illegal sexual activity; and 10 years in prison for transmitting obscene material to a minor. An initial appearance was held today at 2:30 p.m. before U.S. Magistrate Judge Schulze in U.S. District Court in Greenbelt.  Jaramillo was detained pending a detention hearing scheduled for Thursday, October 22, 2015 at 4:00 p.m.

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.

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore and Washington, D.C, the Calvert County Sheriff’s Office, and the Maryland State Police Internet Crimes Against Children Task Force for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Ray D. McKenzie and Kristi N. O’Malley, who are prosecuting the case.

Greenbelt, Maryland – Nathaniel Wright, Jr., age 58, of Gaithersburg, Maryland pleaded guilty today to conspiring to distribute and possession with intent to distribute heroin.

The guilty plea 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 J. Thomas Manger of the Montgomery County Police Department.

According to his plea agreement, from at least June 2013 until his arrest in April 2015, Wright distributed heroin he had obtained from sources to heroin addicts.  Wright had multiple customers who would purchase between one-half to two grams from him a week.

On June 14, 2013, Wright sold an individual a gram of heroin for $100.  Later that evening and after ingesting the heroin, the individual died as a result of alcohol and narcotic intoxication.

Wright also admitted that on 16 occasions he sold a total of 22 grams of heroin to two confidential sources.

During his participation in the drug conspiracy, Wright was responsible for the distribution of between 400 and 700 grams of heroin.

Wright faces a maximum sentence of 20 years in prison.   U.S. District Judge Theodore D. Chuang has scheduled sentencing for February 1, 2016 at 2:00 p.m.

Ronald Bryant, a/k/a “Dean,” age 46, of Montgomery Village, Maryland; and Carlos Brandon Peoples, a/k/a “Los,” age 29, of Washington, D.C., previously pleaded guilty to their participation in the conspiracy and are scheduled to be sentenced on December 21 and November 2, 2015, respectively, both at 2:00 p.m.

United States Attorney Rod J. Rosenstein commended the ATF and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Mara Z. Greenberg, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Phillip Thomas McGowans, age 27, of Brooklyn, Maryland, today to 12 years in prison followed by three years of supervised release for robbery. Judge Bennett also entered an order that McGowans pay $2,214.60 in restitution.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Anne Arundel County Police Chief Tim Altomare; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Commissioner Kevin Davis of the Baltimore Police Department; Anne Arundel County State’s Attorney Wes Adams; and Baltimore City State’s Attorney Marilyn J. Mosby.

According to his plea agreement, on July 25, 2014, McGowans pointed a handgun at an employee at the Village Liquors store in Brooklyn, Maryland and demanded money.  McGowans fled with $800. On August 11, 2014, McGowan again robbed the same liquor store, pointing a handgun at employees.  McGowan fled with $1,149, a bottle of vodka and cigarettes.

McGowan also robbed the New York Fried Chicken store on East Patapsco in Baltimore City on August 19 and 30, 2014.  On both occasions, he pointed a weapon at an employee.  He fled with $200 on the first occasion and an undetermined amount on the second robbery.

United States Attorney Rod J. Rosenstein commended the Anne Arundel County and Baltimore Ciy Police Departments, FBI, and Anne Arundel County and Baltimore City State’s Attorney’s Offices for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Michael Hanlon, who prosecuted the case.

Baltimore, Maryland – Attorney General Loretta Lynch recognized 279 Justice Department employees and 33 individuals, including 14 members of Maryland law enforcement, with Attorney General Awards at a ceremony today in Washington DC. These annual awards recognize department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.  

“The individuals being honored today stand out within a department that holds all of its employees and partners to an extremely high standard of excellence,” said Attorney General Lynch.  “They have put in long hours, made immense sacrifices, and, in some cases, placed themselves in harm’s way.  They have taken on issues that once seemed intractable, and made progress on problems that once seemed impossible.  And their outstanding work is an inspiration to public servants everywhere.”

“The longstanding corruption at the Baltimore City Detention Center was brought to an end because of exceptional work by dedicated law enforcement professionals,” said U.S. Attorney Rod J. Rosenstein.

The Attorney General’s Award for Distinguished Service was awarded to a District of Maryland team for their outstanding efforts to end corruption at the Baltimore City Detention Center through the successful investigation and conviction of forty defendants charged in a racketeering conspiracy, including 24 correctional officers.  The investigation and prosecution revealed that Black Guerilla Family (BGF) gang members and associates bribed correctional officers at BCDC and related prison facilities to smuggle drugs, cell phones and other contraband. Correctional officers arranged favored treatment and privileges for imprisoned BGF gang members, and officers thwarted interdiction and law enforcement efforts against BGF inmates.  BGF members and associates held at BCDC had long-term sexual relationships with several correctional officers and impregnated them.  The team also worked closely with state correctional officials and other agencies to identify systemic weaknesses and develop effective reforms.  The shocking facts detailed in the charging documents prompted the state legislature to step in with enhanced oversight.  As a result of the case, correctional and law enforcement agencies developed new intelligence about prison corruption and a strategy about how to conduct criminal investigations behind bars.

The Attorney General’s Award for Distinguished Service was presented to:  Assistant U.S. Attorneys Robert R. Harding and Ayn B. Ducao, Legal Assistant Joanna B. Huber, all with the U.S. Attorney’s Office for the District of Maryland; FBI Supervisory Special Agents Wendy L. Hassett and John C. Hawkins; FBI Special Agents Karen R. Franks, Erika Jensen, Jeffrey P. Kramer, David D. Lee, and Sarah T. Lewis; FBI Intelligence Analyst Jody E. Zaruba; and FBI Task Force Officers Michael R. Corcoran from the Baltimore Police Department, Lynn G. Grant from the Prince George’s County Police Department, and Michael J. Baier formerly with the Baltimore Police Department and now with the Department of Public Safety and Correctional Services.

Baltimore, Maryland – The leader of the Jenifer drug trafficking organization (Jenifer DTO), Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 44, of Bowie, Maryland, pleaded guilty today to conspiring to distribute cocaine.

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; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.

“IRS Criminal Investigation is committed to its joint efforts with its local and federal law enforcement partners to ensure that drug trafficking organizations such as the Jenifer DTO are not successful in their illegal drug activities conducted in communities across the country,” said Thomas Jankowski, IRS Criminal Investigation Special Agent in Charge, Washington DC Field Office.

According to his plea agreement and court documents, from September 2012 until his arrest in October 2014, Kedrick Jenifer was the head of the drug organization.  He directed the collection and transportation of money from Baltimore to Houston, Texas. The Jenifer DTO would hide money in secret compartments in “courier vehicles” that were transported from Baltimore to Houston.  Jenifer would then fly to Houston and obtain kilograms of cocaine from a source of supply.  The cocaine was transported from Houston to Baltimore in the courier vehicles, and Jenifer would return to Baltimore via commercial air carrier.

In September 2012, Texas State Police stopped a courier vehicle in Chambers County, Texas.  Law enforcement officers discovered approximately 30 kilograms of cocaine hidden in secret compartments within the vehicle.  Phone records reveal that one of the persons in the courier vehicle was in contact with Jenifer prior to, the day of, and after the car stop.

In July 2013, a courier vehicle loaded on a car-carrier at Jenifer’s direction was intercepted in Arkansas.  The vehicle contained approximately 23 kilograms of cocaine hidden in a secret compartment.

Between August 2013 and October 2014, Jenifer directed approximately 30 shipments of cocaine concealed in secret compartments in the courier vehicles. After a courier vehicle would return to Baltimore from Houston, Jenifer was seen operating the hidden compartments in the courier vehicle and supplying other members of the Jenifer DTO with cocaine at their distribution location at RCH Plaza in west Baltimore.

Jenifer and/or another member of the Jenifer DTO also made approximately 16 trips to Woodbridge, Virginia to deliver kilograms of cocaine to co-defendant Thomas Simmons.

On October 9, 2014, approximately 27 kilograms of cocaine were seized from one of the Jenifer DTO’s courier vehicles.

Jenifer agreed that he was responsible for the distribution of no less than 450 kilograms of cocaine between August 2013 and October 2014.

According to previously filed court documents, Jenifer owns World Fed Apparel, Inc., a clothing store in Baltimore.  Jenifer is also a co-owner of Flavor Factory, LLC, which is believed to own an ice cream franchise in Baltimore. At the time of Jenifer’s arrest, the government seized, among other things, a 2013 Rolls Royce Ghost valued at $296,000, a 2014 Ferrari 458 Italia valued at $271,000, other high-end vehicles owned by Jenifer, and large sums of money from his residence and other locations.

Jenifer and the government have agreed that if the Court accepts the plea agreement, Jenifer will be sentenced to 20 years in prison. Jenifer has also agreed to the entry of an order requiring him to forfeit three properties in Baltimore and one in North Miami, Florida, as well as a boat.  U.S. District Judge Richard D. Bennett scheduled sentencing for January 26, 2016 at 10:00 a.m.

Co-conspirators Brooke Renee Lunn, a/k/a “Brooke Thomas” and “Brooke Renee,” age 49; William Hegie, age 55; Kermit Clark, age 45; and Elroy Johnson, age 49, all of Baltimore, and Thomas Simmons, age 38, of Hampton, Virginia, previously pleaded guilty to their participation in the conspiracy.  Each were sentenced to 10 years in prison except Lunn, who was sentenced to 12 years in prison.

United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation and Baltimore City and County Police Departments for their work in the investigation, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance.  Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr. and Special Assistant United States Attorney Matthew Hoff, a cross-designated Baltimore City Assistant State’s Attorney, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Michael Eugene Aldridge, age 42, of Hampstead, Maryland, today to 10 years in prison, followed by lifetime supervised release, for distribution and possession of child pornography. Judge Garbis also ordered that, upon his release from prison, Aldridge 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; and Carroll County Sheriff James DeWees.

According to Aldridge’s plea agreement, he covertly took videos of minor females, including while they were undressed, to produce child pornography.  Aldridge distributed the videos to others to encourage those individuals to produce child pornography and exchange the images and videos with Aldridge. In an online conversation Aldridge had with an individual in California, the other individual discusses his abuse of a seven year old female and his plans to videotape the abuse during an upcoming visit.  Aldridge encouraged the individual to send him video of the abuse and suggested sexually explicit conduct for the other individual to engage in with the child.  Aldridge also suggested giving the child drugs to induce a deeper sleep.

On June 26, 2014, a search warrant was executed at his residence and Aldridge was interviewed by law enforcement.  During the interview, Aldridge admitted that he viewed and distributed child pornography.  A search of Aldridge’s email account recovered two images of child pornography.  A forensic analysis of his cell phone recovered 15 images depicting minors engaged in sexually explicit conduct.

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, and Carroll County Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Albert A. Firlie, age 67, of Severn, Maryland, today to 135 months in prison followed by supervised release for life for possessing child pornography. Judge Bredar enhanced Firlie’s sentence based upon a 1991 child abuse conviction in Howard County, Maryland involving the sexual abuse of a prepubescent girl. Judge Bredar also ordered that upon his release from prison, Firlie 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; Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; 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; and Anne Arundel County Police Chief Tim Altomare.

According to Firlie’s plea agreement, beginning no later than October 2003, Firlie obtained child pornography from the internet.  In November 2007 and April 2009, he created email accounts with a username that combined his first name with the first name of the victim in his child sex abuse case. Firlie used the internet to try to locate the victim and her family as recently as June 2014.

From December 12, 2008 to December 26, 2014, Firlie uploaded approximately 120 videos depicting minors engaged in sexually explicit conduct, using a website that provided users with remote “cloud” storage for media files.  On September 13, 2014, Firlie attempted to upload 51 videos depicting minors engaged in sexually explicit conduct to another email address, using a different website that also provided users with the remote storage.  That website detected the use of its cloud services for the storage of child pornography and reported the matter to the National Center for Missing and Exploited Children, who in turn reported the matter to the U.S. Postal Inspection Service.

On February 3, 2015, investigators executed a search warrant at Firlie’s residence recovered a large number of computers and other digital storage media which contained over 600 images, including over 120 videos depicting minors engaged in sexually explicit conduct.  The images included prepubescent minors and sadistic or masochistic conduct.

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 U.S. Postal Inspection Service, HSI-Baltimore, Maryland State Police and Anne Arundel County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Christopher V. Johnson, age 24, formerly of New York, today to 102 months in prison, followed by five years of supervised release, for bank fraud conspiracy and aggravated identity theft.  Judge Bredar also entered an order requiring Johnson to pay restitution of $155,515.33.

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 Brian Murphy of the United States Secret Service - Baltimore Field Office; U.S. Marshal Johnny Hughes; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Fairfax County, Virginia, Police Chief Edwin C. Roessler, Jr.; Easton Police Department Chief David A. Spencer; Anne Arundel County Police Chief Tim Altomare; and Talbot County State’s Attorney Scott G. Patterson.

According to Johnson’s plea agreement, from at least the winter of 2012 through July 2014, Johnson conspired with Wanisha D. Coates, Lakriesha Coates, Domenique Miller, Sheardwood Michel, Shamika Earle and others to create counterfeit credit cards, using stolen or otherwise compromised credit and debit card numbers belonging to others.  They encoded the stolen account information onto credit and stored value cards which were then used to obtain money and credit from banks and credit unions.  These proceeds were used to buy consumer products, including designer shoes by Gucci, Louis Vuitton and Christian Louboutin, and designer clothes from Neiman Marcus.

 On November 2, 2012, Johnson and Wanisha and Lakriesha Coates used altered credit cards to make fraudulent purchases at a Target in Fairfax, Virginia.  Johnson was arrested and convicted in Fairfax County, Virginia for credit card fraud.  Wanisha Coates was also arrested and charged in Fairfax County, but failed to appear for her court hearing.  A bench warrant was issued for her arrest.

On April 2, 2013, Johnson and Wanisha Coates were stopped by a Maryland State Trooper for a traffic violation in Centreville, Maryland.  The Trooper smelled burnt marijuana and searched the vehicle, seizing several gift cards, credit cards and “ReloadIt” stored value cards that were altered and rewritten with compromised account information.

On January 11, 2014 Easton Police officers arrested Johnson and Miller after they tried to buy multiple gift cards at a Staples store in Easton.  A number of credit cards fraudulently re-encoded with stolen or compromised account information were seized, along with a small amount of marijuana.  Miller advised police that his girlfriend was staying at an Easton motel.  Officers arrived at the motel room and were overwhelmed by the odor of raw and burnt marijuana as they entered.  Present inside the room were the girlfriend and Wanisha Coates. Coates identified herself as “Wanda C. Redd,” who is in fact her mother.  Officers seized 44 credit or stored value cards, many of which had been fraudulently altered.  Johnson had used one of the fraudulently altered cards to make over $200 in purchases at a drug store in Easton.  Of the 108 cards seized from Johnson, Miller and Coates on January 11, approximately 88 were found to be rewritten with stolen credit card/bank card account information.  Many of the cards had been altered so that the last four digits appearing on the front of the card matched the last four digits of the stolen account number rewritten on the magnetic strip of the card.  

Johnson was released from custody in Talbot County on January 12, 2014.  That same day, someone logged-in to Johnson’s account and unsuccessfully attempted to remotely erase the date on Johnson’s iPhone, which was in the custody of law enforcement.

On March 13, 2014, Anne Arundel County Police responded to a call from a man at a motel in Linthicum, Maryland, later identified as Johnson, who said he had been cut in the face with a knife by Wanisha Coates.  Police found Johnson and Coates outside of their motel room attempting to leave.  Police seized approximately 27 credit and gift cards, some visibly altered, and a device for reading, erasing and writing data on magnetic strips of credit cards. At least 13 of the seized credit cards and gift cards had been reencoded with account information that did not match the numbers appearing on the front of the cards.

Between June 30 and July 7, 2014, Johnson, Michel and another conspirator made numerous purchases in New Jersey using fraudulently reencoded credit and stored value cards.  On July 14, 2014, Johnson was driving in Lyndhurst, New Jersey, when a police officer attempted to pull him over.  When the officer got out of his patrol car, Johnson pulled away and police gave chase.  After Johnson struck a small tree, police ordered him out of the vehicle, but Johnson accelerated in reverse, sideswiping a police vehicle and drove for several blocks before bailing out of the car.  Johnson ran through several back yards before being arrested by officers.  Johnson was charged and officers seized marijuana, a tablet computer, two cell phones, a receipt for a $624 wire transfer, and numerous credit and gift cards, at least one of which was visibly tampered with.  Johnson’s New Jersey state charges are still pending.

On July 23, 2014 the U.S. Marshals Service Regional Fugitive Task Force located Coates, who had fled from federal pretrial supervision in June 2014, at a motel in Belleville, New Jersey.  Task force officers arrived at the motel room, which smelled strongly of burnt marijuana, and arrested Coates.  Officers seized marijuana, a credit card embossing device, electronics, and approximately 100-150 stored value cards or credit cards, some of which had been fraudulently re-encoded with stolen credit card information.

On March 10, 2015, while Johnson was an inmate at the Chesapeake Detention Facility in Baltimore, he made several calls to Earle.  Johnson was being held there pending his initial appearance and arraignment on his federal charges.  During the calls, which were recorded, Johnson asked Earle if she was with Michel, and if she would get him money orders for his commissary account.  During the call, Johnson told Earle to purchase the money orders with gift cards obtained using stolen credit card account information.  Earle advised that she already had three $100 money orders purchased with fraudulently obtained gift cards.  Johnson asked Earle to try to get another gift card purchased with stolen credit card information, in order to get him another money order.  In a later call, Johnson asked Earle to get him money orders for $85 because they cleared into his commissary account faster. Earle confirmed that Michel was with her and they would get additional money orders for Johnson.

Earle and Michel were arrested on March 12, 2015, after engaging in numerous fraudulent transactions using cards encoded with stolen credit card information at a department store in Towson, Maryland.  At the time of their arrest, Michel possessed 26 fraudulently reencoded cards and Earle possessed 15 fraudulently reencoded cards.  Earle also had four money orders in Johnson’s name – three for $100 and one for $85.  The money orders had all been purchased with prepaid debit cards that had been purchased using stolen credit card information.

The loss attributable to Johnson during the course of the conspiracy is between $120,000 and $200,000, and involves more than 250 victims.

Co-conspirator Sheardwood H. Michel, age 26, of St. Albans, New York, and Shamika C. Earle, age 25, of Deer Park, New York, pleaded guilty to their roles in the scheme and are scheduled to be sentenced on October 26 and 27, respectively.

Wanisha D. Coates, age 26, and Lakriesha Coates, age 25, both of Baltimore, Domenique R. Miller, age 21, of Newnan, Georgia, previously pleaded guilty to their participation in the scheme and were sentenced to four years in prison, a year and a day in prison, and time served, respectively.

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 HSI Baltimore, U.S. Secret Service, U.S. Marshals Service, Easton Police Department, Maryland State Police, Anne Arundel County Police Department, Fairfax (Virginia) County Police Department, Talbot County State’s Attorney’s Office and the U.S. Marshals Service Regional Fugitive Task Force for their work in the investigation and related prosecution.  Mr. Rosenstein praised the Fairfax County (Virginia) Commonwealth’s Attorney’s Office and Lyndhurst (New Jersey) Police Department for their assistance in the investigation and prosecution.   Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced former letter carrier Takisha Cole, age 33, of Washington, D.C. today to 21 months in prison followed by three years of supervised release for possession with intent to distribute marijuana, use of a communications device to facilitate drug trafficking and bribery.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General; Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.

From at least March 2011 through September 2014, Cole was a letter carrier for the U.S. Postal Service, assigned to a route serving the Silver Spring, Maryland area.

According to court documents and evidence presented at Cole’s five-day trial, from at least May 2013 through August 13, 2014, Michael Prandy paid Cole to use her position as a letter carrier to obtain and deliver packages containing marijuana to Prandy.  The packages were sent from California and elsewhere and mailed via USPS to Prandy’s residence in Silver Spring.  In August 2013, Prandy’s address was removed from Cole’s postal route. Nevertheless, Cole continued to pick up his packages at the Silver Spring Postal Annex and deliver them to Prandy’s residence on McAlpine Road.  According to trial testimony, in return for delivering the packages, Prandy paid Cole $50 to $100 per package, which he placed in an envelope and left in the mailbox at his residence for Cole to pick up.

Michael Louis Prandy, age 39, of Silver Spring, Maryland previously pleaded guilty to his role in the conspiracy and was sentenced to 33 months in prison.

United States Attorney Rod J. Rosenstein commended the U.S. Postal Service -OIG, the U.S. Postal Inspection Service and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Ray D. McKenzie, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Darryl Green, a/k/a “Showboat,” age 47, of Baltimore, Maryland, today to 12 years in prison, followed by three years of supervised release for a robbery conspiracy and for committing a 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; Chief James W. Johnson of the Baltimore County Police Department; Interim 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 Green’s plea agreement, in March 2014, Green and co-defendant Antwan Travers planned to commit an armed robbery at a pharmacy 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. 

Green and Travers also attempted to rob a grocery store in Reisterstown, Maryland, 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.”  Green stole about $5,000 from the supermarket. According to Travers’ plea agreement, he 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. 

Antwan Travers, age 45, of Baltimore, previously pleaded guilty to his role in the robberies and is scheduled to be sentenced on November 16, 2015 at 3:00 p.m.

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 Attorneys Bonnie S. Greenberg and Joshua Ferrentino, who are prosecuting the case.

Baltimore, Maryland – A federal grand jury has indicted six defendants on fraud and identity theft charges involving a scheme to fraudulently obtain unemployment insurance benefits:

Diameter Jeffrey Akala, age 42, of Silver Spring, Maryland;

Wilfred Mendez, age 21, of Bronx, New York;

Eric Gonzalez, age 33, of Alexandria, Virginia;

Tawana McClain, age 50, of Washington, D.C.;

Ferny Alexander Moreno Puente age 23, of Gaithersburg, Maryland;

Wilfredo Torres, age 35, of Alexandria, Virginia.

The indictment was returned on October 13, 2015 and unsealed today.  Three other defendants have pleaded guilty to their participation in the scheme:

Dulce Oleo, age 38, of the Bronx, New York;

Yaw Bempa-Boateng, age 35, of Silver Spring, Maryland; and

Carmen Benitez, age 29, of Scranton, Pennsylvania.

The indictment and guilty pleas were 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; and Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division.

“Today's guilty pleas send a strong message that schemes to defraud the unemployment insurance program will not be tolerated,” stated Steven Anderson, Special Agent in Charge, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations in Washington, DC.  “The Office of Inspector General will continue to work cooperatively with our law enforcement partners to aid in the identification and prosecution of individuals engaged in these types of crimes.

According to the 11 count indictment, from March 2012 to May 2015, the defendants caused the Maryland Department of Labor, Licensing and Regulation (DLLR) and the Pennsylvania Department of Labor and Industry (DLI), which administered the unemployment insurance benefit programs in their respective states, to issue unemployment benefits in the names of individuals by submitting false applications for monetary benefits for their own personal use and benefit.

The indictment alleges that members of the conspiracy obtained the personal identities of other individuals, including Maryland residents.  Akala filed false documentation with DLLR and DLI in the names of fictitious companies.  The filings falsely stated that the fictitious companies employed and paid wages to actual individuals. In fact, no unemployment insurance taxes were paid over to DLLR or DLI in the names of the fictitious companies.

According to the indictment, members of the conspiracy fraudulently used residential mailing addresses of co-conspirators in Maryland, New York, the District of Columbia, Pennsylvania and Virginia to register and receive correspondence for the fictitious companies, and apply for and receive prepaid debit cards containing fraudulently obtained unemployment benefits.  In exchange for the use of their addresses, the co-conspirators received funds obtained through the fraud, typically in the form of a fraudulently obtained prepaid debit card.  Members of the conspiracy regularly contacted DLLR and DLI, falsely representing themselves either to be a representative of one of the fictitious companies or an individual entitled to unemployment benefits.  Akala moved regularly between different states in order to retrieve correspondence addressed to fictitious companies and individuals, including prepaid debit cards issued by DLLR and DLI.

The co-conspirators used the prepaid debit cards at ATMs or stores in order to withdraw and use approximately $1,468,463.80 in fraudulently obtained unemployment insurance benefits. The indictment seeks forfeiture of at least that amount.

Akala, Mendez, Gonzalez, McClain, Moreno Puente and Torres face a maximum sentence of 20 years in prison for conspiring to commit wire fraud and for wire fraud.  Akala and Mendez also face a mandatory minimum sentence of two years in prison for aggravated identity theft consecutive to any other sentence imposed. Moreno Puente and Torres are expected to have their initial appearances today in federal court in Virginia, and Gonzalez is expected to have his initial appearance today in federal court in Greenbelt.  Akala is detained pending a detention hearing scheduled for October 20, 2015 at 2:30 p.m.  McClain and Mendez were released under the supervision of pretrial services.

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

In related cases, Bempa-Boateng, Benitez and Oleo have pleaded guilty to their participation in the conspiracy. Bempa-Boateng admitted that he initially agreed to have a co-conspirator file unemployment claims in his name, and eventually filed multiple false claims on his own behalf. Benitez agreed to use a Maryland unemployment insurance card and debit cards that the co-conspirator obtained for her through false means, to fraudulently withdraw benefits funds.  Oleo admitted that she provided the conspirator with personal identifying information of others in order to file false unemployment claims; and personally used at least 10 fraudulently obtained unemployment insurance cards.  Bempa-Boateng, Benitez and Oleo have each agreed to the entry of an order to pay restitution and forfeiture of $801,710.40; $388,378 and $191,122, respectively.

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

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

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

Baltimore, Maryland –Lyneth Nyabiosi, age 50, and her husband, Willie Evans III, a/k/a “James Davies” and “James Davis,” age 53, both of Bear, Delaware, pleaded guilty today to conspiring to commit mail fraud arising from a scheme to falsely bill Nyabiosi’s employer, Sheppard Pratt Health Systems, for approximately $2.5 million for work purportedly performed by a company that the defendants secretly controlled.

The guilty pleas were 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.

Sheppard Pratt Health System is a private, non-profit health system in Maryland which offers mental health, substance use and special education services.  Sheppard Pratt’s main campus is located in Towson, Maryland.  From November 2005 to September 2014, Nyabiosi was the director of the Health Information Management Department (HIM Department) of Sheppard Pratt.  The department was responsible for maintaining patient medical records. As the director, Nyabsiosi was the highest ranking employee in the HIM Department.

According to their plea agreements, Nyabiosi and Evans controlled and operated an entity named Information Management Solutions Technology (IMST), which was designed to appear as an independent third party contractor, but was in fact created by the defendants to execute the fraud scheme.  On March 7, 2007, Nyabiosi, on behalf of Sheppard Pratt, entered into a contract with IMST to manage medical records for Sheppard Pratt.  Nyabiosi never informed Sheppard Pratt that she and her husband were affiliated with IMST, in violation of Sheppard Pratt’s conflict of interest policy. To further hide their affiliation with IMST, Evans signed the contract on behalf of IMST as “James Davies,” a purported regional account representative at IMST.  Thereafter, Evans continued to represent himself to Sheppard Pratt staff as “James Davis,” an account representative, even though no such person was ever affiliated with IMST.

From 2007 to 2014, the defendants submitted over 180 false invoices requesting that Sheppard Pratt pay IMST for work which was never performed, or for excessively inflated amounts for the work that was actually performed.  For example, IMST picked up at most approximately 2,863 boxes of patient records from Sheppard Pratt for short-term storage, yet the invoices falsely represented that IMST had picked up over 500,000 boxes of patient records. Other invoices and documents provided to Sheppard Pratt falsely represented that IMST had picked up and was storing 20,270 boxes of records from the company Iron Mountain, when in fact, IMST never picked up a single box.  And on two separate occasions in 2009, the defendants sent invoices to Sheppard Pratt for purported work on a project to digitize older patient records.  The defendants paid a third party company $26,395 to complete the work, but they billed Sheppard Pratt $546,510.

Nyabiosi personally approved all of the false invoices, causing Sheppard Pratt to mail checks to IMST totaling $2,742,791.  The defendants deposited the money in their bank account for their personal use.

In September 2014, the law firm representing Sheppard Pratt contacted “James Davis” using IMST contact information provided by the defendants.  On September 4, 2014 and September 14, 2014, counsel for Sheppard Pratt met with Evans, who falsely represented himself to be “James Davis” and never revealed himself to be Nyabiosi’s husband.  Evans falsely told the law firm that he, “James Davis,” alone owned IMST and was in charge of running the business.

The defendants have agreed to the entry of an order to forfeit and pay restitution of $2,742,791, and to forfeit two residences located in Bear and Newark, Delaware and three vehicles.

The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail fraud.  U.S. District Judge James K. Bredar has scheduled sentencing for Nyabiosi and Evans for February 4 and 5, 2016, respectively, both at 9:30 a.m.

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorney Rachel M. Yasser, who is prosecuting the case.

Baltimore, Maryland – A federal grand jury indicted William H. Steinhaus IV, age 33, of Brunswick, Maryland, yesterday for sexual exploitation of a child and distributing child pornography.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Frederick County Sheriff Charles A. “Chuck” Jenkins; Frederick County State’s Attorney J. Charles Smith; and Chief Cathy L. Lanier of the Metropolitan Police Department.

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

The indictment alleges that during those two days, Steinhaus and another Kik user exchanged approximately 290 messages.  They discussed how Steinhaus could best sexually abuse the toddler.  Steinhaus sent the user images of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating “That’s where tw[sic] assault will happen.”

Also on December 8, 2014, Steinhaus and a second Kik user allegedly exchanged approximately 293 messages.  Steinhaus sent pictures of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating “That’s where the assault is going to happen.”

According to the indictment, between December 8 and 9, 2014, Steinhaus and a third Kik user exchanged approximately 419 messages.  Steinhaus sent approximately 30 pictures he had taken of the toddler, several of which contained images of the child and Steinhaus engaged in sexually explicit conduct.

Steinhaus is presently in state custody following his arrest on December 9, 2014 on related charges filed in Frederick County Circuit.

Steinhaus faces a mandatory minimum sentence of 15 years in prison and a maximum of 30 years in prison on each of two counts for sexual exploitation of a child; and a mandatory minimum sentence of five years in prison and a maximum of 20 years in prison on each of four counts for distributing child pornography.  An initial appearance is expected to be scheduled for October 30, 2015 at 11:00 a.m. in U.S. District Court in Baltimore.

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

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, Frederick County Sheriff’s Office, Frederick County State’s Attorney’s Office and Metropolitan Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jasper McWilliams, age 48, of Dundalk, Maryland today to 10 years in prison, followed by five years of supervised release, for possession with intent to distribute cocaine and crack cocaine, and for possession of a firearm in furtherance of a drug trafficking crime.

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

According to his plea agreement, on March 19, 2015, law enforcement officers executed a search warrant at McWilliams’ residence.  Officers recovered a total of 533.37 grams of powder cocaine and 69.78 grams of crack cocaine from the home, packaged in a number of plastic bags. In addition, officers recovered a loaded Taurus 9mm handgun from a locked safe underneath McWilliams’ bed. The locked safe also contained $15,160 in drug proceeds.  Elsewhere in McWilliams’ bedroom, the officers recovered drug paraphernalia, including a digital scale, a metal can with a false bottom, a metal grinder, and an at-home marijuana drug test kit.

United States Attorney Rod J. Rosenstein praised the Baltimore County Police Department for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Morris Thweatt, age 47, of Silver Spring, Maryland today to 80 months in prison followed by three years of supervised release for three bank robberies.  Judge Grimm also entered an order that Thweatt forfeit and pay restitution of $22,773, the total amount that he stole.

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 Chief Mark A. Magaw of the Prince George’s County Police Department. 

According to his plea agreement, Thweatt robbed three banks in Silver Spring, wearing various disguises, and handing the bank tellers notes that stated that he had a bomb.

On June 10, 2014, Thweatt told a teller at Capital One Bank located on Tech Road that he had an explosive device, and demanded money.  The “device” was in fact a canister with a radio wire.  Thweatt stole $4,500 and fled.

On July 2, 2014, Thweatt told a teller at Capital One Bank located on University Boulevard that he was going to light a device he was carrying on fire.  The “device” was in fact a plastic bag with an electrical wire wrapped in aluminum foil attached to the bag.  Thweatt stole $8,075 and fled.

On July 22, 2014, Thweatt threatened a teller at Bank of America located on Colesville Road with a fake improvised explosive device, stating that he was going to blow the place up.  Thweatt stole $10,198 and fled.

United States Attorney Rod J. Rosenstein praised the FBI and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Daniel C. Gardner, who prosecuted the case.

 

Baltimore, Maryland – A federal grand jury has indicted James Cicala, age 54, of Columbia, Maryland for interstate travel with intent to engage in a sexual act with a minor.  The indictment was returned on October 8, 2015, and unsealed today upon the arrest of Cicala

The indictment 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); Worcester County Sheriff Reggie T. Mason, Sr.; and Special Agent in Charge Michael Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General.

According to the indictment, on August 15, 2015, Cicala traveled from his beach house in Delaware to Berlin, Maryland, to engage in a sexual act with a 15 year old girl.  According to a search warrant affidavit filed in connection with the investigation, on July 21, 2015, an undercover detective with the Worcester County Sheriff’s Office who was investigating child solicitation on the internet responded to an ad entitled “Daddy’s Little Girl.” The person posting the ad stated that they were interested in meeting someone for a “Daddy/Daughter Relationship.”  The undercover detective identified himself as a 15 year old female, and the poster identified himself as a male in his late 40’s.

The poster and the undercover detective exchanged messages for several weeks, eventually agreeing to meet to engage in sexually explicit conduct. During their conversations, Cicala refers to himself as “Daddy.”  According to the affidavit, on August 15, 2015, law enforcement attempted to identify the owner of the telephone number used to text messages to the undercover detective and learned that the number belonged to the Department of Justice.  Many of the conversations Cicala allegedly had with the undercover officer occurred using Cicala’s DOJ-issued phone or work computer, sometimes during work hours.

Cicala was arrested on August 15, 2015, as he arrived at the location where he was to meet the 15 year old girl in order to engage in sexually explicit conduct.  Cicala had traveled from his beach house in Delaware to the meeting place in Berlin, Maryland.  On August 17, 2015, Cicala was placed on administrative leave by the Department of Justice, where he worked in IT, and all electronic devices assigned to him were secured.

Cicala faces a maximum of 30 years in prison followed by up to lifetime of supervised release for traveling interstate to have sex with a minor.   An initial appearance is scheduled for today at 3:15 p.m. before U.S. Magistrate Judge Timothy J. Sullivan in U.S. District Court in Baltimore.

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

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

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