District of Maryland

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced William Terrance Proctor, a/k/a “Boobie,” and “Booby,” age 32, of Lexington Park, Maryland, today to 78 months in prison followed by three years of supervised release for aiding and abetting the theft of a firearm, possession of an unregistered firearm, unlawful sale of a firearm to a prohibited person; and receipt, possession and transportation of contraband cigarettes.

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

According to his plea agreement, on October 27, 2012, individuals who stole approximately 48 firearms from a gun shop in Lexington Park transported the guns to Proctor’s residence.  Knowing that the guns were stolen, Proctor agreed to store the guns at his house.  Thereafter and until June 2014, Proctor arranged for the sale of approximately 45 of the stolen firearms.

On March 20, 2014, Proctor sold a rifle for $1,000 which had a barrel measuring less than 16 inches. From April to June, 2014, Proctor sold seven more firearms in exchange for contraband cigarettes – that is, cigarettes for which the applicable Maryland cigarette taxes were not paid. Of those seven firearms, two were stolen during the 2012 theft from the Tackle Box. Proctor knowingly sold them to an individual who had been previously convicted of a felony. Proctor then sold most of the contraband cigarettes.

On June 27, 2014, Proctor was arrested in Maryland in connection with his attempt to sell an eighth firearm in exchange for contraband cigarettes.

United States Attorney Rod J. Rosenstein commended the ATF, St. Mary’s County and Charles County Sheriffs’ Offices and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston, who prosecuted the case.

Greenbelt, Maryland – A federal grand jury indicted Leroy T. King, Jr., age 54, of Bryans Road, Maryland, today on charges arising from a scheme to fraudulently obtain at least $60,000 in disability travel benefits.

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

According to the eight count indictment, King was a U.S. Postal Service city carrier at the Capitol Heights, Maryland post office.  On September 24, 2004, King was injured, which qualified him for compensation benefits provided to federal government employees for disability due to personal injury sustained while in the performance of duty.  King returned to work in 2008, but remained eligible to receive disability benefits for medical benefits and for travel to and from medical treatment for that injury.

The indictment alleges that from November 2009 to March 2015, King repeatedly sought and received reimbursement for travel expenses allegedly incurred in connection with trips to and from medical treatment that King claimed had occurred, when, in fact, no medical treatment had been provided on the dates for which King sought reimbursement.  King allegedly mailed reports to the Department of Labor’s Office of Worker’s Compensation Programs (OWCP) falsely stating that King had driven his vehicle to and from the Southern Maryland Processing and Distribution Center in Capital Heights Maryland, for purposes of medical treatment.

The indictment alleges that King fraudulently obtained at least $60,000 from OWCP as reimbursement.

King faces a maximum sentence of 20 years in prison for mail fraud; and five years in prison for making false statements.  No court appearance has been scheduled for King.

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

United States Attorney Rod J. Rosenstein praised the Department of Labor - OIG and U.S. Postal Service - OIG for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Hollis Weisman and Special Assistant United States Attorney Nicholas Patterson, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Jay Maurice Tharps, age 33, of Capitol Heights, Maryland, today to 17 years in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition, possession with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime. Judge Grimm found that Tharps was a career offender based on three drug and gun convictions.

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

According to his plea agreement, on April 11, 2013, Prince George’s County police officers executed a search warrant at Tharps’ residence and seized a loaded handgun with an obliterated serial number; a loaded semi-automatic pistol with an obliterated serial number; another loaded semi-automatic pistol that had been reported stolen; a loaded revolver; a semi-automatic rifle which was found near a high capacity loaded magazine; numerous ammunition; 84 grams of marijuana; and 15 grams of cocaine.  Prior to this time, Tharps had been convicted of three felonies for drug and gun violations, and was thus prohibited from possessing firearms and ammunition.

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

Greenbelt, Maryland - U.S. District Judge Deborah K. Chasanow sentenced Yogesh K. Patel, age 48, of Gaithersburg, Maryland, today to 21 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a scheme to fraudulently obtain more than $2.6 million in federal government contracts through a Small Business Administration (SBA) program designed to assist disadvantaged businesses.  Judge Chasanow also entered an order that Patel forfeit $554,541.07.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations; and Mary L. Kendall, Deputy Inspector General, Department of the Interior.

According to his plea agreement and court documents, Patel owned 91% of United Native Technologies, Inc. (UNTI), which purported to perform information technology services to the government and commercial clients.  In 2005, Patel applied for and was granted certification as a socially and economically disadvantaged owned business under SBA’s program.  In addition to a broad scope of assistance from SBA, participants in the program can receive sole source government contracts that are reserved for socially disadvantaged owned companies.

In 2007, Patel met co-defendant Wesley Burnett at a business conference in Costa Rica. Burnett, who was not a member of any economically or socially disadvantaged group, had experience constructing and maintaining barriers at military and government installations.  Patel and Burnett agreed that they would use UNTI to bid on SBA set aside contracts for barrier-related work. Burnett would perform the work under the contracts and would pay Patel 4.5 percent of the value of the contracts. In preparing a bid for a contact at Andrews Air Force, which was ultimately awarded to UNTI, Burnett and Patel exchanged emails in June 2011 in which they made statements indicating that they knew this arrangement was illegal.

In 2011, Patel met N.P.  They agreed to a fraudulent pass-thru arrangement similar to the one Patel had entered into with Burnett.

From October 2010 to July 2013, UNTI was fraudulently awarded $2,682,430 in set-aside U.S. government contracts.

In 2011, 2012 and 2013, Patel falsely certified to the SBA that no outside entity or individual provided financial support to UNTI when in fact Burnett and N.P. provided financial support to UNTI; and that Patel ran UNTI full-time, when in fact he did not because he was receiving disability compensation from the Social Security Administration in each of those years.

From November 2012 to October 2013, Patel received $973,407.37 in government funds under the fraudulently obtained set-aside contracts.  Patel kept a portion of these funds and turned the majority of them over to Burnett.  Prior to November 2012, payments under contracts went to Burnett, who provided a portion of the funds to Patel.

Wesley Burnett, age 46, of Hermosa Beach, California, previously pleaded guilty to his role in the scheme.  Burnett was sentenced to 42 months in prison and ordered to forfeit $694,893.99.

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, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.

United States Attorney Rod J. Rosenstein praised the SBA OIG, U.S. Air Force Office of Special Investigations, and the Department of the Interior, OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Sean R. Delaney, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Deborah K. Chasanow today sentenced Keith Willie Reed, age 26, of Washington, D.C., and Tobias Richard Dyer, age 23, of Upper Marlboro, Maryland, each to 20 years in prison followed by 5 years of supervised release, after they pleaded guilty to robbery and interstate transportation of stolen vehicles, in connection with an armored car robbery.

The sentences and guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; and Chief Cathy L. Lanier of the Metropolitan Police Department.

According to their plea agreements and court documents, Reed, Dyer and others robbed an armored car employee on December 11, 2012, as the employee was carrying money from a business establishment to the armored transport vehicle.  Specifically, on December 11, 2012, Reed, Dyer, and other perpetrators stole a 2012 Nissan Altima, and a 2002 Dodge Ram truck. Reed, Dyer other perpetrators transported the Altima from the District of Columbia to Maryland and Virginia. The Dodge Ram was transported by Reed, Dyer, and other perpetrators from Maryland to the District of Columbia.

Reed, Dyer and other conspirators traveled in the stolen Nissan Altima to the 6300 block of Livingston Road in Oxon Hill, Maryland, armed with firearms, in order to rob an armored car employee.  The robbers exited the Nissan Altima and shot the employee while he was carrying $2,350 in cash from a store to the armored truck parked outside the store. The robbers took the bag containing the money being carried by the employee, and stole the employee’s gun.  The robbers then got back into the stolen Nissan Altima and drove away.

The armored car employee was shot, sustaining life-threatening bodily injury.

Prior to their guilty pleas in Maryland, Reed and Dyer were convicted of similar crimes in a federal case in the Eastern District of Virginia and were each sentenced to 60 years in prison. The Maryland sentence is concurrent to the Virginia sentence.

United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and, the Metropolitan Police Department and the Takoma Park Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Special Assistant U.S. Attorney Matthew L. Paeffgen, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Bradley Newman, age 30, of Walkersville, Maryland today to two years in prison, followed by three years of supervised release, for distribution and possession with intent to distribute methylone.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Special Agent in Charge Shawn Ellerman of the Drug Enforcement Administration, Baltimore District Office; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Frederick Police Department Chief Edward G. Hargis.

According to his plea agreement, on four occasions between October 2012 and January 2013, Bradley Newman distributed methylone to a confidential source, for profit.  Each transaction was recorded by audio, video, or both.  The substances obtained from Newman were tested and found to contain methylone and Newman admitted that he was selling a controlled substance.

Specifically, on October 11, 2012, Newman sold approximately 53 grams of methylone to the confidential source for $2,000, which was paid to Newman the following day.  Subsequently, on November 1, 2012, Newman sold approximately 54 grams of methylone to the confidential source for $2,000; on December 6, 2012, Newman sold approximately 83 grams of methylone to the confidential source for $3,000; and on January 31, 2013, Newman sold approximately 85 grams of methylone to the confidential source for $3,000 (divided into two payments of $1,500 each).  In all, Newman possessed with intent to distribute approximately 275 grams of methylone.

United States Attorney Rod J. Rosenstein praised DEA, HSI Baltimore and the Frederick Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew C. Sullivan and Robert R. Harding, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Eliot Knecht Friedman, age 57, is a resident of Pikesville, Maryland today to two years in prison, followed by 20 years of supervised release, for possession of child pornography. Judge Bredar ordered that upon his release from prison, Friedman 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).  Freidman is a former contract employee at the National Security Agency.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Stephen E. Vogt 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 Friedman’s plea agreement, on June 27, 2014, a Baltimore County police detective was conducting an investigation regarding child pornography located an IP address on the a file sharing network that was sharing files suspected of depicting children engaged in sexually explicit conduct.  The detective downloaded files containing child pornography that were being shared from that IP address.  Records showed that Friedman was the subscriber for that IP address and Baltimore County detectives obtained a search warrant for the residence.

On July 22, 2014, members of the Baltimore County Police Department executed the warrant at Friedman’s residence.  Law enforcement seized a desktop computer, five external hard drives and digital media.  More than 150,000 images of child pornography, including images and videos of prepubescent minors, were subsequently found on the computer and other media associated with Friedman.       

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Tyran Antwain Lane, age 23, of New Carrollton, Maryland, today to 13 years in prison, followed by three years of supervised release, for conspiracy, armed robbery and brandishing a firearm during a crime of violence, related to the robberies of cell phone stores.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Mark A. Magaw of the Prince George’s County Police Department.         

According to his plea agreement, from January 29, 2013 through July 4, 2014, Lane was part of a conspiracy to rob cell phone stores in Anne Arundel, Baltimore and Montgomery Counties, along with co-defendants Donald Scott Deans, and Parris Benjamin Chisholm.  The conspirators robbed a total of 10 stores during the course of the conspiracy and Lane actively participated in seven of those robberies.

Specifically, Lane, Dean Chisholm, and others, planned and organized the theft of cash, credit cards, cell phones, portable electronic communications devices, and tablet computers from businesses, their employees and customers. Lane, Dean and Chisholm then sold the stolen property for cash.  According to their plea agreement and other court documents Lane, Dean or Chisholm used and brandished a gun to intimidate the employees during the robberies. In at least seven of the armed robberies the defendants used duct tape or other items to restrain employees and trash bags to carry the stolen items. The defendants used Chisholm’s car to travel to and from the robberies and to transport the stolen property and guns used during the robberies until Chisholm’s arrest on March 26, 2013.  After Chisholm’s arrest, Lane and Deans committed at least four additional robberies, including two in Virginia.

Cell phone records show that Lane, Dean, Chisholm and others involved in the robberies and/or the sale of the stolen items communicated by cell phone calls and text messages before and after the robberies.  In addition, Lane, Dean and Chisholm were all captured on surveillance video at least once during the robbery spree.

Chisholm was arrested on March 26, 2013, after he used a rock to break the front window of a cell phone store in the 7700 block of Belair Road in Baltimore County, and stole four cell phones.  Police pulled him over and recovered new and used rolls of duct tape, clothing, and hats similar to those described by victims of the previous robberies from the car.  The stolen cell phones were also recovered from the car.  Video from the victim store recorded Chisholm as he committed the robbery.         

Donald Scott Deans, age 23, of Largo, Maryland and Parris Benjamin Chisholm, age 24, of Millersville, Maryland, previously pleaded guilty to their participation in the robberies. Chisholm was sentenced to 16 years in prison and Deans is scheduled to be sentenced on October 2, 2015, at 2:00 p.m.  Deans remains detained.

United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County, Montgomery County, and Prince George’s County Police Departments, for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, Jr., who is prosecuting the case.

Baltimore, Maryland – A federal grand jury has returned a superseding indictment that adds a seventh defendant to the six already charged in connection with a conspiracy to rob a jewelry store.  The superseding indictment also adds a home invasion robbery to the carjacking and kidnapping charges included in the original indictment.  The superseding indictment was returned on July 28, 2015 and unsealed today.

The following individuals are charged in the superseding indictment:

            Stanislav (Steven) Yelizarov, age 25, of Pikesville, Maryland
            Alexsey (Losha) Sosonko, age 34, of Owings Mills, Maryland;             Igor Yasinov, age 25, of Baltimore;             Grigoriy (Greg) Zilberman, age 24, of Owings Mills;             Peter Magnis, age 27, of Hydes, Maryland;             Marat (Mike) Yelizarov, age 26, of Pikesville; and
            Sorhib Omonov, age 27, of Baltimore (new defendant).

The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt 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 the six count superseding indictment, from November 2012, through February 2, 2013, the defendants planned and organized the robbery of an Owings Mills jewelry store, in order to sell the stolen goods for cash.

The superseding indictment alleges that on July 22, 2012, S. Yelizarov, Sosonko, Zilberman, M. Yelizarov, and others committed an armed home invasion robbery and stole 10 firearms for use in future criminal activity.  During the robbery, the victim was bound and beaten with a handgun. On December 25, 2012, S. Yelizarov, Yasinov and others broke into a residence and stole two guns which they planned to use in the robbery of the jewelry store.  Prior to the robbery, the defendants 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.  According to the indictment, on January 16, 2013, as the employee was driving from Zilberman’s home, S. Yelizarov, Sosonko, Yasinov, and Magnis drove a rented SUV and used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, the defendants allegedly removed the employee from his car. S.Yelizarov, Sosonko, Yasinov, and Magnis forcibly bound and blindfolded the employee, put him into the trunk of his own car and drove him to a predetermined location.  According to the indictment, once at the location, S.Yelizarov, Sosonko, Yasinov, and Magnis brandished firearms and robbed the employee of the keys to the jewelry store and demanded the code to the jewelry store’s alarm system. The defendants threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. During the abduction and robbery the defendants allegedly wore masks and gloves to conceal their identities.

At approximately 3:52 a.m., the indictment alleges that S. Yelizarov and Sosonko drove the employee’s vehicle from the remote location to the jewelry store, where M. Yelizarov and Omonov were stationed nearby to act as “look-outs.”  S. Yelizarov and Sosonko allegedly used the employee’s key and the alarm code forcibly obtained from the employee to enter the jewelry store, where they stole jewelry, stones, and watches, valued at about $500,000.

The indictment alleges that over the next few days, S. Yelizarov sold a portion of the items stolen from the jewelry store, both in Maryland and in Brooklyn, New York, receiving in excess of $129,000 in cash, which S. Yelizarov divided among the conspirators and others.  According to the indictment, at the direction of S. Yelizarov, M. Yelizarov, Sosonko, and others removed guns and other evidence of the crimes from S. Yelizarov’s residence.

The defendants each face a maximum sentence of life in prison for the kidnapping conspiracy and the kidnapping and for carrying and brandishing a firearm in relation to a crime of violence. The defendants each face 15 years in prison for the carjacking; and 20 years in prison for the robbery conspiracy and for the robbery.  An initial appearance was held today for Omonov in U.S. District Court in Baltimore and he was detained pending a detention hearing scheduled for July 31, 2015, at 2:30 p.m. before U.S. Magistrate Judge Timothy Sullivan.  No court appearance on the superseding indictment has been scheduled for the remaining defendants.

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

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 – California-based medical device manufacturer NuVasive Inc. has agreed to pay the United States $13.5 million to resolve allegations that the company caused health care providers to submit false claims to Medicare and other federal health care programs for spine surgeries by marketing the company’s CoRoent System for surgical uses that were not approved by the U.S. Food and Drug Administration (FDA).  The settlement further resolves allegations that NuVasive caused false claims by paying kickbacks to induce physicians to use the company’s CoRoent System.  

The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Principal Deputy Assistant Attorney General Benjamin C. Mizer, of the Justice Department’s Civil Division; and Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Inspector General Jon Rymer of the U.S. Department of Defense, Office of Inspector General; and Inspector General Patrick E. McFarland of the Office of Personnel Management – Office of Inspector General.

“Health care providers need to be free to make medical decisions without improper influence by material or incentives from manufacturers,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland.  “A medical device manufacturer violates the law if it knowingly causes physicians to use its products for purposes that are not medically reasonable and necessary and to bill federal health insurance programs.”     

“The Justice Department is committed to holding medical device manufacturers accountable, which includes requiring that they follow all laws designed to ensure that medical devices are safe and effective,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “It is also imperative that manufacturers not improperly influence the selection of medical devices in order to ensure that these decisions are based on the needs and interests of patients, not on a physician’s own financial interests.”  

“Defrauding Medicare and Medicaid by paying kickbacks to physicians and promoting uses not covered by Federal health care programs will not be tolerated,” said Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).  “Settlements such as the one entered into today by NuVasive send a message to the medical device industry that such practices will be closely monitored.”

The United States alleged that between 2008 and 2013, NuVasive promoted the use of the CoRoent System for surgical uses that were not approved or cleared by the FDA, including for use in treating two complex spine deformities, severe scoliosis and severe spondylolisthesis.  As a result of this conduct, the United States alleged that NuVasive caused physicians and hospitals to submit false claims to federal health care programs for certain spine surgeries that were not eligible for reimbursement.     

The settlement agreement also resolves allegations that NuVasive knowingly offered and paid illegal remuneration to certain physicians to induce them to use the CoRoent System in spine fusion surgeries, in violation of the federal Anti-Kickback Statute.  The illegal remuneration consisted of promotional speaker fees, honoraria and expenses relating to physicians’ attendance at events sponsored by a group known as the Society of Lateral Access Surgery (SOLAS).  SOLAS was allegedly created, funded and operated solely by NuVasive, despite its outward appearance of independence.      

The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act by Kevin Ryan, a former NuVasive sales representative (United States ex rel. Kevin Ryan v. NuVasive, Inc. (D. Md.). The act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery.  As part of today’s resolution, Mr. Ryan will receive approximately $2.2 million.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $24.8 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.

The federal share of the civil settlement is $12,583,413.84, and the state Medicaid share of the civil settlement is $916,586.16.  The claims resolved by this settlement are allegations only, and there has been no determination of liability.

United States Attorney Rod J. Rosenstein commended HHS-OIG, the Department of Defense’s Office of the Inspector General and the Office of Personnel Management’s Office of Inspector General, for their work in the investigation and thanked the FDA’s Office of Chief Counsel and Office of Criminal Investigations for their assistance.  Mr. Rosenstein also recognized the work of the Civil Division’s Commercial Litigation Branch and the National Association of Medicaid Fraud Control Units in reaching this settlement.  Mr. Rosenstein thanked Assistant U.S. Attorney Thomas H. Barnard, Thomas F. Corcoran and Jason D. Medinger, and Senior Trial Counsel Colin Huntley of the U.S. Department of Justice’s Civil Division, who handled this matter.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Rory Slade Jenkins, age 55, of Hagerstown, Maryland today to 51 months in prison, followed by five years of supervised release, after Jenkins pleaded guilty to conspiracy to distribute and possess with intent to distribute oxycodone.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Assistant Special Agent in Charge Shawn Ellerman of the Drug Enforcement Administration, Baltimore District Office; Washington County Narcotics Task Force led by Washington County Sheriff Douglas Mullendore; and Frederick County Sheriff Charles A. “Chuck” Jenkins. 

According to his plea agreement, since at least April 2014, Jenkins conspired with others to distribute oxycodone in the Hagerstown area.  During the course of the conspiracy, Jenkins would travel to New York with a co-conspirator to obtain new supplies of oxycodone and other drugs.  Jenkins generally drove and was compensated for doing so.  Jenkins knew that they were traveling to New York to obtain oxycodone and other drugs.  Those drugs would then be broken up and redistributed in the Hagerstown area.  During the course of the conspiracy, Jenkins made more than 20 trips to Harlem with the co-conspirator, going up and back in the same day.  Jenkins also obtained bulk quantities of oxycodone pills from other sources, which he would distribute in the Hagerstown area.

Law enforcement overheard conversations between Jenkins and other conspirators in which Jenkins discussed traveling to New York to obtain new supplies of oxycodone, and other efforts to obtain oxycodone for distribution.  Over the course of the conspiracy, Jenkins admitted that he was involved in the distribution of at least 15,000 milligrams of oxycodone.

United States Attorney Rod J. Rosenstein praised the FBI, DEA, Washington County Narcotics Task Force, and Frederick County Sheriff’s Office, for their work in the investigation and thanked the Eastern Panhandle (WV) Safe Streets Task Force for its assistance.  Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark and Matthew C. Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge George L. Russell III  sentenced Denita Hill, age 27, of Baltimore, Maryland, to 42 months in prison, followed by two years of supervised release, for a scheme to defraud the City of Baltimore through the reissuance of fraudulent checks for pay and benefits. Judge Russell also ordered Hill to perform 200 hours of community service. A federal jury convicted Hill on March 4, 2015 of wire fraud conspiracy and two counts of aggravated identity theft, in connection with the scheme

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.         

According to evidence presented at trial, Hill was an accountant in the Finance Department of the City of Baltimore. Co-defendant Robert Johnson worked in the Consumer Relations Service of the U.S. Department of Veteran’s Affairs.

Baltimore City employees who leave their employment are entitled to a lump sum check of any pay and benefits for which they are qualified.  From July 11, 2013 to August 2, 2013, Hill and Johnson conspired to use the financial and identity information of former Baltimore City employees to obtain fraudulent employee benefit payout checks. Hill identified individuals who had received and cashed large lump sum payments and then obtained reissuance of such checks, as if they had not been received.  These duplicate checks were printed at the Baltimore City Finance Office, where Hill stole the checks.  Hill delivered the checks to Johnson, endorsed to him by Hill with the forged signature of the original payee.  Johnson endorsed and cashed the checks, deposited the proceeds into his bank account and used the funds for his benefit.

For example, on July 11, 2013, Johnson deposited a check made out to a victim in the amount of $14,741.09, and fraudulently endorsed by Hill to Johnson with the victim’s forged signature.  On July 31, 2013, Johnson deposited a check made out to a second victim in the amount of $58,485.91.  Again, the check was endorsed by Hill to Johnson with the second victim’s forged signature.  Both victims had previously received and cashed their initial lump sum payment checks and the duplicate checks were issued and endorsed to Johnson without their knowledge or permission.

After Johnson attempted to wire some of the funds to pay off an account at a different financial institution, Johnson’s bank was alerted to the suspicious transactions and referred the matter to the City of Baltimore Office of the Inspector General, who sought the assistance of the Finance Department in determining the authenticity of the endorsements. Hill was tasked with the investigation and notified Johnson of the problem.  Hill attempted to derail the investigation and obtain release of the funds by the bank by claiming to have spoken with the check recipients, whom she said confirmed that the endorsements were genuine. In fact, neither statement was true: Hill had not spoken to the victims, and they had not endorsed their checks over to Robert Johnson.  Meanwhile, Johnson’s bank had reversed the deposits and returned the funds to the City of Baltimore, leaving a large deficit in Johnson’s account balance.  Johnson obtained funds from Hill to repay the amount due.

Over the course of the conspiracy, Hill and Johnson fraudulently obtained approximately $75,000 all of which was ultimately recovered.

Robert Johnson, age 34, of Perry Hall, Maryland, previously pleaded guilty to his role in the conspiracy and was sentenced to a year and a day in prison followed by three years of supervised release, and ordered to serve 75 hours of community service.

United States Attorney Rod J. Rosenstein praised the Baltimore Office of Inspector General, Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine and Special Assistant U.S. Attorney Josh Felsen, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.

Baltimore, Maryland – A federal jury today convicted Cornell Louis Robinson, age 44, of Washington, D.C., on charges related to the armed carjacking of a couple who were about to enter their vehicle to go to the hospital because the woman was in labor.

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Annapolis Police Chief Michael A. Pristoop; and Anne Arundel County State’s Attorney Wes Adams.

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

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

Robinson faces a maximum sentence of 15 years in prison for carjacking; a maximum of life in prison for possession and brandishing a firearm in furtherance of a crime of violence; and a maximum of 10 years in prison for possession of a firearm and ammunition by a felon.   No sentencing date has been set for Robinson, who remains detained

Deverey Hasani-Jarod Kelley, age 25, of Glen Burnie, Maryland, previously pleaded guilty to his role in the crime and is scheduled to be sentenced on August 12, 2015 at 11:00 a.m. Kelley also remains detained.

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

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Bryan Turner, age 29, of Baltimore, to 15 years in prison followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute crack cocaine and heroin.  Turner is a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.

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

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

On August 5, 2011, Turner participated in the robbery of the Chesapeake Bank of Maryland in Arbutus, along with other UDH members.  Turner and others went into the bank and presented the teller with a note demanding money.  Turner and his associates stole $7,305, which was later divided between Turner and three other UDH members.

Turner admitted that as a member of UDH he sold crack cocaine, heroin and other narcotics with UDH members.  They sold the drugs from a house located on Giles Road, in the UDH area of Cherry Hill. At one point, Turner even lived in the residence. In addition to selling drugs from this location, co-defendant Antione White and others stored firearms at the house, which were used communally by other UDH members.  On March 8, 2011, officers executed a search warrant at a residence in the 2900 block of Cherryland Road.  Turner and other UDH members were arrested and law enforcement recovered $105 from the toilet, where a UDH member had attempted to flush it; a backpack with 406 vials containing almost 25 grams of crack cocaine; drug paraphernalia and packaging material.  Officers recovered $192 in cash and two Percocet pills from Turner.  On January 18, 2013, Baltimore City Police arrested White and other UDH members at the Giles Road residence and seized cocaine, drug paraphernalia and a loaded gun.

During his participation in the UDH drug conspiracy Turner was responsible for distributing in excess of 280 grams of crack cocaine and more than a kilogram of heroin.

Antione White, age 27, of Baltimore, previously pleaded guilty to his role in the conspiracy and was sentenced to 18 years in prison.

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Luis R. Valladares, age 52, of Hanover, Maryland, today to 18 months in prison, followed by three years of supervised release, for the fraud schemes.  Judge Quarles ordered Valladares to pay restitution of $487,000, the total amount of the victim’s losses in the mortgage fraud scheme.                          

The sentence 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.     

Valladares owned and operated two businesses, Amazing Cleaning and Amazing Contractors, which provided janitorial services and drywall repair to vacated commercial and residential apartments.

According to his plea agreement, in late 2006, Valladares applied for a loan to purchase a house in Miramar, Florida.  Valladares provided fake lease documents with forged signatures of one of his employees and the employee’s relatives, and three fake money orders to make it appear that he was collecting rent.  After obtaining a mortgage loan for $484,900, Valladares only made a few payments on the loan.  The home was foreclosed upon, resulting in a loss of approximately $250,000.

In late 2007, Valladares applied for two separate loans totaling $767,000 to buy a house in Hanover, Maryland.  At the closing, Valladares omitted the Florida house as a property he owned; and reported owning a rental property in Burtonsville, Maryland, which he didn’t own or receive rental income from.  In October 2014, the Maryland house was sold in a short sale for approximately $530,000, causing a loss of approximately $237,000.  The total loss as a result of the mortgage fraud scheme was $487,000.

Beginning in approximately 2003, Vallardares also engaged in tax fraud by substantially understating income on business and personal tax returns.  He diverted about $346,951 in third-party checks payable to the businesses to his personal accounts, and did not provide tax return preparers with information pertaining to these transactions.  As a result, income deposited into his personal account was not reported either on business or personal tax returns.

In 2005 and 2006, Vallardares also engaged in tax fraud by writing a series of company checks to his brother and his brother’s business, ostensibly for business expenses.  For nine of these checks totaling $152,000, his brother then endorsed the checks back over to Valladares or his then-wife, who deposited the checks into their personal bank account. They claimed these checks as business expenses on their tax returns.

Valladardes wired approximately $618,500 from a personal account to an account he controlled in Ecuador, and falsely claimed to IRS investigators that he was building apartment buildings in Ecuador as an investment.

The tax loss resulting from the tax fraud schemes totaled $292,277, for which Valladares remains liable.

After the IRS investigation had begun, Valladares left the United States for Ecuador in September 2011.  Charges against him were filed in federal court in Maryland in October 2011.  Valladares was arrested in September 2014 when he arrived in Aruba for his honeymoon, and he was returned to the United States for prosecution.

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/priorities_financialfraud.html.

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 IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Sean R. Delaney, who prosecuted the case.

Baltimore, Maryland –Gregory Wayne Gibson, age 63, of Cockeysville, Maryland pleaded guilty today to distribution of child pornography. 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 guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Special Agent in Charge Ivan Arvelo 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 has been involved in the collection and distribution of 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 admitted to 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 of those files revealed that the majority of these 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 anal penetration.          

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.         

As part of his plea agreement, 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).

Gibson faces a minimum mandatory sentence of five years in prison and a maximum of 20 in prison followed by up to lifetime of supervised release for distribution of child pornography.   U.S. District Judge Richard D. Bennett has scheduled sentencing for October 26, 2015 at 3:00 p.m.

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

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

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Kermit Clark, age 44, of Baltimore, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possession with intent to distribute five kilograms or more of cocaine, in connection with his participation in the Jenifer drug trafficking organization (Jenifer DTO).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Special Agent in Charge Shawn R. Ellerman 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; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.

“This investigation highlights how DEA Baltimore successfully conducts long-term complex investigations,” stated Acting ASAC Shawn Ellerman.  “The case stretched from Staten Island, New York to Houston, TX and I want to commend the agents for their careful and methodical work which resulted in the dismantling of a large scale drug trafficking organization that imported hundreds of kilograms of cocaine into the Baltimore area.” 

According to his plea agreement, from September 2012 to October 2014, the Jenifer DTO supplied Clark and others with kilogram-quantities of cocaine for distribution in and around the Baltimore-Washington metropolitan areas.  Clark became a member of the conspiracy to distribute more than five kilograms of cocaine.

The Jenifer DTO obtained its cocaine from suppliers in or around Houston, Texas.  The Jenifer DTO would transport money hidden in secret compartments in “courier vehicles” from Baltimore to Houston.  The cocaine was then transported from Houston to Baltimore in the Jenifer DTO’s courier vehicles.  In July 2013, a courier vehicle for the Jenifer DTO was intercepted in Arkansas that contained approximately 23 kilograms of cocaine hidden in a secret compartment.   Between August 2013 and October 2014, approximately 30 shipments of cocaine, concealed in secret compartments in the Jenifer DTO’s courier vehicles, were made to the Jenifer DTO.  On October 9, 2014, approximately 27 kilograms of cocaine were seized from one of the Jenifer DTO’s courier vehicles. .

Clark agreed that he was a member and co-conspirator of the Jenifer DTO, which was responsible for trafficking no less than 750 kilograms of cocaine from Houston to Baltimore from August 2013 to October 2014.

William Hegie, age 54, of Baltimore, previously pleaded guilty to his participation in the conspiracy and was sentenced to 10 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. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr., who prosecuted the case, 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 in this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” age 49, and his wife, Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” age 50, both of Keymar, Maryland, pleaded guilty today to charges in connection with defrauding the United States of over $30 million in connection with obtaining government contracts, stealing over $1.6 million in employee benefits and evading taxes.

The 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; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Marc I. Machiz, Director of the Philadelphia Regional Office of the Labor Department’s Employee Benefits Security Administration; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Small Business Administration Inspector General Peggy E. Gustafson; and Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations.

“The Tuckers’ fraudulent actions deprived the federal contract employees of Quantell and Intaset of rightfully earned benefits under the Service Contract Act,” stated Special Agent in Charge Steven D. Anderson, of the Washington Regional Office, U.S. Department of Labor - OIG, Office of Labor Racketeering and Fraud Investigations.  “My office remains committed to investigating these types of crimes, and we will continue to proactively work with our law enforcement partners to bring corrupt individuals and companies to justice.”

According to their pleas, the Tuckers were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation from 2007 to 2010.  Quantell and Intaset provided labor services to federal government agencies.  In 2010, the Tuckers sold Intaset, but continued to have influence on the operation of Intaset.

Federal Procurement Fraud

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

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

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

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

Employee Benefit Fraud

Moreover, the service contracts awarded by the United States to Quantell and Intaset, as well as the McNamara-O’Hara Service Contract Act (SCA), required Quantell and Intaset to provide bona-fide health and welfare benefits to the service contract employees of Quantell and Intaset hired to do the work for the federal government.  From 2008 to at least 2012, however, the Tuckers stopped contributing the SCA funds to any bona-fide health and welfare plan.  Instead, the Tuckers lied to employees of Quantell and Intaset, and to multiple federal agencies, regarding the compliance of Quantell and Intaset with the SCA, so that the Tuckers and their co-conspirators, including Jonathan Mickle, could divert at least $1.6 million in SCA monies paid by the government to Quantell and Intaset under service contracts for their own personal benefit.  The Tuckers and their co-conspirators used shell companies and companies that they were associated with to conceal the diversion of SCA funds to them.  The Tuckers falsely told employees that they would be receiving health and welfare benefits, when they knew in fact that the money was being diverted to buy luxury vehicles, make improvements on the Tuckers’ residences.

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

Tax Fraud

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

The Tuckers and the government have agreed that if the Court accepts the plea agreements, Shaun Tucker will be sentenced to eight years in prison and Joanna Tucker will be sentenced to between six and 18 months in prison.  Shaun Tucker further agrees to pay forfeiture of at least $30 million and Joanne further agrees to pay forfeiture of at least $20 million, and that their residence in Keymar is subject to forfeiture.  Both Tuckers also agree to pay restitution of at least $1.6 million in connection with the employee benefit fraud, and pay restitution to the IRS of $492,961 for tax evasion.  U.S. District Judge J. Frederick Motz has scheduled sentencing for both Tuckers for November 20, 2015, at 12:00 p.m.

In a related case, co-conspirator Jonathan Mickle, age 43, of Asheville, North Carolina, formerly of Taneytown, Maryland, pleaded guilty on June 25, 2015 to conspiracy to commit wire fraud and tax fraud in connection with the fraud schemes.  Judge Motz has scheduled sentencing for November 3, 2015, at 2:15 p.m.

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

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

Greenbelt, Maryland – A federal grand jury has indicted Francesca Daniele, age 48, of LaPlata, Maryland, today on wire fraud charges in connection with the misuse of her government credit card.

The indictment 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 Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch         

According to the three-count indictment and other court documents, Daniele was an employed as a program support assistant at the National Institutes of Health (NIH) from June 2013 to September 2014, when she was terminated.  As part of her employment, Daniele was authorized to purchase equipment from vendors and to administer contracts on behalf of NIH.  To perform her job, Daniele was issued a government credit card in her name, which was only to be used for official government purchases.

The indictment alleges that from July 12 through July 28, 2014, Daniele used her government credit card to make over $21,000 of personal purchases at retail stores and used her cell phone to contact the credit card’s customer service center to facilitate approval of those purchases.  According to court documents, Daniele purchased gift cards, electronics, and other personal items such as food and clothing.  The indictment further alleges that to conceal the scheme Daniele falsely reported that her credit card had been lost.

Daniele faces a maximum sentence of 20 years in prison for each of three counts of wire fraud.  No court appearance has been scheduled.  Daniele was arrested on June 30, 2015, in Las Vegas, Nevada on a related criminal complaint.  She was transferred to Maryland and had an initial appearance on July 23, 2015 in U.S. District Court in Greenbelt.  Daniele remains detained.

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

United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation.  Mr. Rosenstein 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.

Greenbelt, Maryland – A federal jury convicted former letter carrier Takisha Cole, age 33, of Washington, D.C. late on Friday, July 24, 2015 of possession with intent to distribute marijuana, use of a communications device to facilitate drug trafficking and bribery.

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General; Acting Postal Inspector in Charge David M. McGinnis 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 employed by the U.S. Postal Service as a letter carrier, assigned to a route serving the Silver Spring, Maryland area. Cole was responsible for delivering packages sent through the U.S. Postal Service to the appropriate addresses on her route.

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. Even though Prandy’s address was no longer on her postal route, 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.

The jury was unable to reach a verdict on the charge of conspiracy to distribute and possess with intent to distribute 100 kilograms or more of marijuana.

Cole faces a maximum sentence of five years in prison for possession with intent to distribute marijuana; four years in prison for use of a communications device to facilitate drug trafficking; and 15 years in prison for bribery.  U.S. District Judge Theodore D. Chuang has scheduled sentencing for October 19, 2015 at 2:00 p.m.

Michael Louis Prandy, age 39, of Silver Spring, Maryland previously pleaded guilty to his role in the conspiracy. Judge Chuang scheduled Prandy’s sentencing for August 4, 2015, at 9:30 a.m.

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 are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Jasonn A. Williams, age 36, of Jamaica, New York, today to 30 months in prison followed by three years of supervised release for conspiring to pass counterfeit $100 bills and conspiring to commit money laundering.  Judge Messitte also entered an order that Williams pay restitution of $18,600 and forfeit $22,462.88.

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

According to his plea agreement and court documents, from December 1, 2012 to April 29, 2013, Williams, Larry Barringer, Donte Barringer, Jamarr Little and others used counterfeit $100 bills to purchase inexpensive merchandise and receive change in genuine currency; to purchase money orders and prepaid money cards, including Greendot cards; and to purchase expensive merchandise, such as computers.  The conspirators exchanged the merchandise purchased with the counterfeit $100 bills for genuine U.S. currency and used the money orders and money cards purchased with the counterfeit bills to conduct other financial transactions.

Judge Messitte found that in the conspiracy to pass counterfeit money and in the money laundering conspiracy, the loss attributable to Williams exceeded $30,000.

Larry L. Barringer, age 54, of Baltimore, previously pleaded guilty to the counterfeiting and money laundering conspiracy and was sentenced to five years in prison.  Donte Barringer, age 37, and Jamarr Little, age 21, both of Washington, D.C., have also pleaded guilty to the counterfeiting conspiracy.  Little was sentenced to a year and a day in prison and ordered to pay restitution of $10,900.  Donte Barringer was sentenced to one year of probation and ordered to pay $18,600 in restitution.

United States Attorney Rod J. Rosenstein praised the U.S. Secret Service – Washington Field Office for its work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.

Baltimore, Maryland – Phillip Thomas McGowans, age 27, of Brooklyn, 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 Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Marilyn Mosby; Interim Commissioner Kevin Davis of the Baltimore Police Department; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.

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 from the business. 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 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.

McGowans and the government have agreed that if the Court accepts the plea agreement, McGowans will be sentenced to between 10 and 13 years in prison.  U.S. District Judge Richard D. Bennett scheduled sentencing for October 28, 2015, at 3:00 p.m.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore and Anne Arundel County Police Departments and Baltimore and Anne Arundel County 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 are prosecuting the case.

Greenbelt, Maryland – A federal grand jury has indicted Christopher C. Camut, age 52, of Baltimore, Maryland, on charges arising from a scheme to fraudulently obtain over $1.6 million from three companies at which he was employed as the chief financial officer.  The indictment was returned on June 15, 2015, and unsealed today at his initial appearance in federal court in Greenbelt.  Camut was released under the supervision of U.S. Pretrial Services.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.     

Company A, which is headquartered in Silver Spring, Maryland, is a non-profit organization dedicated to developing microbicides that can provide women in developing countries with protection against HIV infection.  Company B manufactures products for the medical industry. Company C develops medical countermeasures against biological and chemical threats, and has an office in Annapolis, Maryland.

According to the 16 count indictment, Camut was the chief financial officer for: Company A between August 2012 and August 2014; Company B between May 2010 and September 2011; and Company C between January 2007 and April 2010.  From January 2008 to May 2014, Camut created engagement letters, agreements and invoices to make it appear as if financial institutions had provided services to the companies.  He caused the companies to issue checks payable to financial institutions, which Camut then deposited into his personal bank accounts.

The indictment further alleges that Camut created agreements between coconspirator Kaitlyn Jones and Companies A, B and C, which falsely represented Jones’ profession.  Camut caused the three companies to transfer by wire and issue checks payable to Jones, although Jones performed no work for the companies.  Camut and Jones shared the proceeds received from the companies.

The indictment seeks forfeiture of at least $1,618,951, the amount of money Camut allegedly stole from the companies.

Camut faces a maximum sentence of 20 years in prison for conspiring to commit wire fraud and on each of 13 counts of wire fraud; and a mandatory minimum of two years in prison on each of two counts for aggravated identity theft consecutive to any other sentence imposed.

Kaitlyn Jones, age 48, of Reisterstown, Maryland, pleaded guilty to her participation in the conspiracy and awaits sentencing.

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

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David I. Salem, who are prosecuting the case.

Greenbelt, Maryland – A federal jury today convicted former attorney Saundra Lucille White, a/k/a Lucille Parrish-White and six variations of those names, age 57, of Lothian, Maryland, on charges of mail fraud, wire fraud, money laundering, and aggravated identity theft in connection with a scheme to defraud clients of at least $750,000.            

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Geary of the Treasury Inspector General for Tax Administration; Anne Arundel County Police Chief Tim Altomare; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to the evidence presented at White’s seven day trial, in March 2010, White agreed to assist Victim H to obtain guardianship for a relative (Victim M) who had been incapacitated by a stroke.  At White’s request Victim H provided White with an accounting of Victim M’s assets.  With White’s assistance, Victim H obtained guardianship of Victim M a short time later. Victim M died on January 7, 2011.  White was disbarred from the practice of law in the District of Columbia on January 20, 2011 and disbarred in Maryland on September 9, 2011.  White did not inform Victim H of her pending disbarment, nor did she tell Victim H that she was no longer a licensed attorney.

According to trial evidence, from March 2010 through May 2013, White created fraudulent tax notices that purported to be from the Internal Revenue Service, and demanded payment of taxes purportedly owed by Victim M and by a deceased relative of Victim M.  The notices required that payments be sent to an entity called Intel Realty Financial Services (IRFS) at a mailbox in Annapolis, Maryland, controlled by White.  White then mailed and faxed the fraudulent tax notices to Victim H, advising Victim H that in her role as legal guardian of Victim M, she was required to remit payments for these taxes to the address in the notice.  Once White obtained the checks sent by Victim H in response to the fraudulent tax notices, totaling $750,000, she deposited them in the bank accounts she opened in the names of IRFS and Victim M.  White withdrew the funds from the bank accounts, forging Victim M’s signature on checks made out to White, other entities controlled by White, a family member, or otherwise for White’s benefit.  White also obtained debit cards in Victim M’s name and attempted to obtain a Maryland driver’s license in the name of Victim M, but bearing White’s photograph. White used some of the money to purchase luxury items, including a $20,500 check used as a down payment for a 2011 Silver Volvo C70 hard-top convertible.

White faces a maximum sentence of 20 years in prison for each of three counts of mail fraud, one count of wire fraud, and two counts of money laundering; and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft.  U.S. District Judge Paul W. Grimm has scheduled his sentencing for January 25, 2016.

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 TIGTA, the Anne Arundel County Police Department, and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom and Special Assistant U.S. Attorney James I. Pearce of the U.S. Department of Justice, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Anthony Torrell Tatum, age 37, of Arlington, Virginia, today to 27 years in prison for conspiracy to distribute cocaine and heroin, possession of a gun in furtherance of a drug trafficking offense and money laundering conspiracy. Judge Chasanow previously entered an order requiring Tatum to pay a $108 million money judgment, and a forfeiture order for personal property seized during the investigation, including $328,700 in assorted jewelry, over $1 million in cash or deposited in bank accounts, and a luxury vehicle.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief of Police Robert D. MacLean of the U.S. Park Police; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to his plea agreement and court documents, from at least January 2011 through his arrest on September 6, 2013, Tatum conspired with Ishmael Ford-Bey and others to distribute cocaine and heroin in Prince George’s County, Washington, D.C. and Oxon Hill, Maryland.

In late 2010, law enforcement received information that Tatum was the source of supply of cocaine to a cooperating source and that Ford-Bey was providing Tatum and others with kilogram quantities of cocaine. Between April 2011 and January 2012, U.S. Park Police conducted undercover purchases of a total of 308 grams of crack cocaine from co-conspirator Terrin Anderson.  Anderson drove a vehicle registered to Ford-Bey to make some of the deliveries.

In May 2013, Tatum rented a storage unit in Fort Washington, Maryland using an alias. A search warrant was executed at the storage unit in August 2013.  Law enforcement seized a kilogram of cocaine wrapped in duct tape, 258 grams of cocaine contained in plastic baggies, 195 grams of heroin and an assault rifle with two magazines.

On September 6, 2013, law enforcement agents executed a search warrant at an apartment on Campbell Avenue in Arlington, Virginia and seized $7,823 in cash, a fake driver’s license bearing Tatum’s picture, expensive jewelry and clothing.  Tatum was present at the location and arrested.

Also that day, law enforcement agents executed a search warrant at a storage unit in Temple Hills, Maryland and seized digital scales, heroin, a handgun and ammunition.

On October 1, 2013, a search warrant was executed at the apartment of a co-conspirator that Tatum and Ford-Bey had been identified as visiting.  Agents located a safe which contained $823,640 in cash, several expensive watches, and jewelry. In addition, agents recovered scales, three heat sealers, a coffee grinder, a currency counter, and other drug paraphernalia, as well as approximately 350 grams of cocaine.  Latent fingerprints recovered from the heat sealers were identified as belonging to Tatum and Ford-Bey.

In an effort to disguise and hide their drug proceeds, Tatum and others created numerous business entities, including 1001 Solutions, Beauty International Supply, Inc. and Going Green Towing, which had little, if any, legitimate business. They set up bank accounts in the names of each business and deposited their drug proceeds into those business accounts.  For example, during four months in 2012, Tatum made over $93,000 in cash deposits and $45,000 in money order deposits into one business bank account. In another bank account, between November 2012 and February 2013, Tatum made over $90,100 in cash deposits or payments.

In March 2011, Tatum used drug proceeds to purchase a cashier’s check for $17,000 payable to a BMW dealership to buy a vehicle.  In October 2012, again using drug proceeds, Tatum bought a 2013 Volvo car; and in 2011, he bought a Land Rover for $60,013.  Tatum also used drug proceeds to buy expensive jewelry.

Four defendants, including Tatum, were convicted federally for their participation in the conspiracy.  Co-conspirators Ishmael Ford-Bey, age 40, of Mitchellville, Maryland; Terrin Tamal Anderson, age 29, of Waldorf, Maryland; and David Allen Jones, age 40, of District Heights, Maryland; previously pleaded guilty and were sentenced to 33 years in prison, 12 years in prison and 45 months in prison, respectively. Judge Chasanow also entered an order requiring Ford-Bey to pay a $108 million money judgment, and a forfeiture order for personal property, including luxury vehicles, jewelry and cash.

United States Attorney Rod J. Rosenstein commended the DEA, FBI, Prince George’s County Police Department, U.S. Park Police, U.S. Postal Inspection Service, IRS-CI, ATF and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – Mustafa Sharif, age 63, of Baltimore, 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. Adam Williams, Jr., age 52, of Randallstown, pleaded guilty to the same charges on July 17, 2015.

The plea agreements were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt 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, which is recorded on a computerized point-of-sale system.  To activate the system and record a particular transaction, DPW employees must enter the tag number of the truck and a corresponding billing code.  The scale house operators reweigh each truck as it leaves the Landfill.  The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.

According to his plea agreement, in 2005, Williams collected and hauled trash in his small dump truck when he learned from a friend that he could avoid paying the disposal fee if he paid a cash bribe to the scale house operators. After the friend introduced Williams to a scale house operator, none of the scale house operators, including Tamar Washington, charged Williams a disposal fee for using the Landfill. In 2006 Williams partnered with another individual to haul trash, and then operated his own hauling business from 2007 to 2015.  He paid a $100 bribe to the scale house operator for each trip he made to the Landfill, which saved him thousands of fees each month.  Williams either paid the operator through the outbound window at the scale house, or met the operators at an off-site location where he would pay a week’s worth of bribes or more.  From July 1, 2014 to May 1, 2015 alone, Williams paid more than $42,000 in bribe payments in lieu of paying the required waste disposal fees, which totaled approximately $120,000.

According to his plea agreement, in 2012, Sharif collected and hauled trash in his small dump truck when one day he was allowed to dump trash at the Landfill without paying the disposal fee.  Sharif told Williams about what had happened, and Williams explained that Sharif could avoid paying the disposal fee every time he dumped at the Landfill if he paid $100 in cash to the “girls” at the scale house, meaning Tamara Washington and another individual.  Thereafter, Sharif paid the bribes, either through Williams or directly to the scale house operators, which saved him thousands of dollars in disposal fees each month.  Sharif would meet one of the scale house operators off-site to deliver the weekly bribes, or he would drop it off in an envelope at their respective residences. From July 1, 2014 to May 1, 2015 alone, Sharif paid more than $42,000 in bribe payments in lieu of paying the required waste disposal fees, which totaled approximately $150,000.

Sharif has agreed to forfeit and pay restitution of $500,000 and Williams has agreed to forfeit and pay restitution of $900,000.

Sharif and Williams 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 Williams on October 21, and Sharif on November 6, 2015.

Former Baltimore City Department of Public Works (DPW) employee Tamara Oliver Washington, age 55, of Baltimore, pleaded guilty on July 2, 2015 to the conspiracy and to solicitation of bribes, and is scheduled to be sentenced on October 20, 2015, at 10:00 a.m.

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.

Baltimore, Maryland – Three Nigerian nationals were arrested today, charged by criminal complaint with fraud and aggravated identity theft in connection with two schemes using stolen personal identification information.  In addition to the arrests, more than 130 law enforcement officers from nine agencies executed 17 search warrants as part of this ongoing investigation.

Charged by criminal complaint are:

Omolaja Terry Iginla, age 25, of Laurel, Maryland; Mayowa Olabiyi Towobola, age 24, of Parkville, Maryland; and
Hafis Omowonuola Oladokun, age 38, of Owings Mills, Maryland.

The charges and arrests were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Kathryn Montemorra, Assistant Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office; and Chief James W. Johnson of the Baltimore County Police Department.

“Today’s enforcement sends a clear message to those who believe that the profit of cybercrime outweighs the risks of detection and capture,” said Ivan Arvelo, Acting Special Agent in Charge, HSI Baltimore. “The message is that you are not anonymous and you will be arrested.  As we have shown, HSI and its law enforcement partners will vigorously pursue those who steal, peddle, and abuse the private information of American consumers.”

“This has been a complex and important fraud investigation that illustrates the commitment and cooperation of law enforcement personnel at all levels. With patience and a sound investigation, we ensure that perpetrators of such fraud will not get away with ruining the lives of innocent people,” said Baltimore County Police Chief James Johnson. 

“Criminal conspiracies involving fraudulent refund schemes victimize our nation’s honest taxpayers,” said Kathryn Montemorra, Assistant Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.  “Today’s enforcement actions are a reminder that IRS-CI will remain vigilant in our investigation of these schemes and will continue to work with our law enforcement partners to combat this type of criminal conduct.”

According to the affidavit filed in support of the criminal complaint, the investigation began in 2013 when Iginla was initially arrested after accepting delivery for two fraudulent Ghanaian passports.  A search warrant executed at Iginla’s apartment recovered, among other items, an Apple iPod which was found to contain the personal identification information (PII) of more than 35,000 individuals, including names, dates of birth, social security numbers, addresses, telephone numbers and email addresses; named text files; account numbers and security codes for numerous Green Dot & other prepaid debit cards; business names, addresses, and associated EIN numbers; monetary loss values contained within “text files” associated with the PII of many of the probable identity theft victims residing throughout the United States; and a digital image of a social security card of a probable identity theft victim.  Digital forensic examination of an iOS address book uncovered from the laptop computers seized during the search revealed a contact for “Mayowa”, which is the first name of Towobola.  The cellular telephone number is subscribed in the name of Hafis Omowonuola Oladokun.

According to the criminal complaint, the PII data recovered from the iPod found in Iginla’s apartment was forwarded to the IRS.  Analysis revealed that the stolen PII data recovered from the Apple iPod was used to file approximately 4,500 fraudulent tax returns with the IRS.  The attempted refund amount from these returns is approximately $13,025,000, and over $2,400,000 in refunds has been distributed by the IRS.  Investigation revealed that in some cases, tax refunds were transferred to Green Dot and other prepaid debit card accounts and the funds were then withdrawn from the accounts.  For example, a prepaid debit visa account found in Iginla’s files show that the account was activated on line in the name of D.S.  Within two day of its activation, that account received a direct deposit of a tax refund.  When interviewed, D.S. advised investigators that he had not filed federal tax returns for 2012 or 2013, nor had he applied for or possessed a prepaid visa debit card.  D.S. confirmed that the PII on the account was the same as his.  Prior to his interview with law enforcement, D.S. was not aware of being a victim of identity theft.

During the Iginla investigation, law enforcement became aware of a related investigation, originally initiated by the Baltimore County Police Department, regarding a fraud allegedly perpetrated by Oladokun, Towobola and others, which involved the re-encoding of victims’ debit card account numbers and the purchasing of money orders using PII stolen as a result of the Target Store data breach which occurred during November and December 2013.  Investigation revealed that victim debit card account numbers were re-encoded onto other unknown debit/credit cards, which were then used to purchase money orders and make automatic teller machine (ATM) withdrawals at various banks and retailers located in Baltimore County.  The money orders were then cashed by the conspirators at local check cashing stores.

Additionally, a review of financial records showed that many of the money orders cashed at the check cashing stores in Maryland were purchased with Green Dot prepaid debit card accounts using stolen PII.  Investigation revealed that Oladokun, Towobola and other co-conspirators have cashed approximately 1,105 third party money orders at one check cashing store, totaling approximately $737,373.

The defendants face a maximum sentence of 20 years in prison for wire fraud and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft.  The defendants all had an initial appearance today in U.S. District Court in Baltimore. Iginla and Towobola consented to detention and Olakodun was detained pending a detention hearing scheduled for Thursday, July 23, 2015 at 3:00 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.

United States Attorney Rod J. Rosenstein praised HSI-Baltimore, IRS-CI, and the Baltimore County Police Department for their work in the investigation and thanked the Baltimore City, Anne Arundel County, Montgomery County and Prince George’s County Police Departments, Maryland State Police and the U.S. Department of State, Diplomatic Security Service for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and Sandra Wilkinson, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Willie Jones, age 31, of Towson, Maryland, today to nine years in prison, followed by five years of supervised release, for two commercial robberies and for using and brandishing a firearm during a crime of violence.  Judge Hollander also ordered Jones to pay $750 in restitution.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt 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 his plea agreement, on November 2, 2013, Jones and co-conspirator Donte Johnson robbed a grocery on Claremont Avenue in Baltimore.  Jones stood inside the door of the store as a look-out while Johnson held a shotgun to the store owner’s head and demanded money.  The robbers took between $600 and $700.

On November 25, 2013, Jones and Johnson robbed a convenience store, located on Philadelphia Road in Baltimore.  Specifically, two employees were working at the counter area of the store and two men approached the counter.  Johnson pointed a shotgun at both employees and demanded that they open the registers.  In fear for their lives, the clerks complied.  Johnson reached over the counter and obtained money from one register.   Jones, who admitted that he knew Johnson would be using a gun during the robbery, walked behind the counter and retrieved money from another register.  The total loss to the store was $153.

Donte Johnson continued to rob the store’s customers.  As this was happening, a customer was able to leave the store and get into his vehicle, which was parked in the store’s parking lot.  He called 911 and waited for the robbers to exit.  The customer saw the robbers run across Philadelphia Road to the parking lot of a bar across the street, and enter a dark green Honda Civic.  The customer followed Jones and Johnson so he would be able to give directions to the police.  Once the robbers turned onto Square Ridge Road, the car stopped, and Donte Johnson fired one round from a shotgun at the customer in his vehicle.

Baltimore County Police detectives were able to locate the shotgun used in the convenience store robbery.  The shotgun had two unfired shotgun shells lying on the ground next to it and one fired shotgun shell casing loaded in the action of the gun.

Donte Maurice Johnson, age 30, previously pleaded guilty and is scheduled to be sentenced September 2, 2015 at 2:15 p.m. Jones and Johnson remain detained.

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

Baltimore, Maryland –Alberic Okou Agodio, age 30, of Bethesda, Maryland, pleaded guilty today to conspiracy, wire fraud, and aggravated identity theft, arising from a mortgage fraud scheme in which he used the names of immigrants and students, along with false financial information, to obtain approximately $3.8 million in home mortgage loans to buy approximately three dozen row houses in Baltimore, all of which are in default or foreclosure.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Olga Acevedo of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

“When we are made aware of individuals whose criminal conduct causes financial harm to the public and unnecessary risks to the FHA Insurance Fund we commit whatever resources are necessary to bring these individuals to justice and have them debarred from participation in government programs,” said Special Agent in Charge Cary Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General. “Mortgage fraud investigations can be very labor intensive and we would like to thank our law enforcement partners for their collaborative efforts.”

According to his plea agreement, Agodio agreed to purchase row houses in Baltimore City from co-conspirator Kevin Campbell, who had acquired the houses as part of his real estate business.  Agodio purchased the houses at prices far in excess of their actual market value.  In return, Campbell kicked back a substantial portion of the purchase price to Agodio, which Agodio used to pay for the down payments and closing costs for most of the properties; to pay a commission to the individuals whom he persuaded to allow him to use their names to purchase the properties (“the straw purchasers”); to pay referral fees to individuals who referred other straw purchasers to him; and to compensate himself for his participation in the scheme.  In all, from June 2009 to November 2010, Agodio purchased 35 row houses from Campbell.  The financing received on these transactions totaled approximately $3.8 million and Agodio received commission payments from Campbell in excess of $1.2 million.

To perpetrate the scheme, Agodio persuaded approximately three dozen immigrants and students to purchase the row houses under their names.  Although none of these “straw purchasers” had any experience in real estate transactions, nor the funds needed to buy the properties, Agodio told each straw purchaser that he would prepare the loan application; manage the property after its purchase by finding renters, collecting the rent and paying the mortgage; and would pay the straw purchaser $7,000 to $8,000 after the transaction closed.  He further promised to sell the property in three years and give the individual up to 80% of the sale proceeds.  Agodio also paid thousands of dollars in additional commissions to those straw purchasers who referred other individuals to him as potential buyers for similar transactions.

Agodio admitted that he falsely represented in the loan applications the straw purchasers’ assets and earnings, and that the property would be the primary residence of the purchaser.  Agodio also provided fraudulent earnings and bank statements for the purchasers, to document the false information provided in the loan application.  Agodio provided the necessary funds for the down payment and the buyer’s share of the closing costs, causing the settlement statement form to inaccurately reflect that the down payments and closing costs had been paid by the straw purchasers.

Following the closings, Agodio retained the keys to each property and assumed the responsibility for finding renters and making the required monthly mortgage payments.  The named purchasers never lived in the properties.  Agodio eventually allowed all of the mortgages to go into default.

After a fire occurred at one of the row house properties purchased through a straw purchaser Agodio falsely identified himself as the straw purchaser to the insurance company in order to collect $106,500 in insurance paid for the repair the property.  Agodio cashed the check, which was made out to the straw purchaser and the bank holding the mortgage, and used the funds for his own purposes.  Agodio did not notify the bank that the funds to make the repairs to the property had been received, nor did he arrange to make or pay for any repairs to the property.

Kevin Campbell, age 52, of Baltimore, previously pleaded guilty and is scheduled to be sentenced on September 11, 2015 at 9:15 a.m.

Agodio faces a maximum sentence of 30 years in prison for conspiracy and for wire fraud; and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge James K. Bredar has scheduled sentencing for October 22, 2015 at 11:00 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.

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 HUD- OIG, FDIC – OIG, FHFA - OIG and the FBI for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Rodney Smith, age 51, of Baltimore, Maryland, today to 10 years in prison, followed by three years of supervised release, for conspiring to commit three armed robberies and using and brandishing a firearm during a crime of violence. 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt 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 Smith’s plea agreement, from September 2013 through October 11, 2013, Smith conspired with Derek Roberts to commit armed robberies at a fast food restaurant, a drug store and a gas station.

According to their plea agreements, on the morning of September 15, 2013, Smith and Roberts went to a fast food restaurant in Rosedale, Maryland, and waited for an employee to arrive.  When the employee arrived to open the store Smith and Roberts approached him. Roberts pointed a loaded gun at the employee and pushed him into the store.  Roberts tied up the victim and demanded money from the cash register.  Roberts and Smith stole approximately $200 from the restaurant.  On September 27, 2013, Smith and Roberts robbed a drug store in Havre de Grace.  When two employees began closing the store, Roberts pointed a loaded gun at the employees and forced them into the store, where he and Smith tied up the victims and demanded money.  One of the victims opened the store safe and Smith took money from the safe.  Smith and Roberts stole $3,400 from the store, several cartons of cigarettes and a purse belonging to one of the victims. On October 3, 2013, Smith and Roberts drove from Maryland to a gas station in Fredericksburg, Virginia.  An employee let Smith and Roberts into the store and Roberts pointed a loaded gun at the victim.  Roberts instructed the victim to go to a back room and lay on the ground, and demanded money.  Smith and Roberts stole approximately $200, cartons of cigarettes and beer from the gas station.

Derek Roberts, age 45, of Baltimore, pleaded guilty to his role in the robberies and was sentenced to 19 years in prison.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and thanked Cecil County State’s Attorney Ellis Rollins, Baltimore City State’s Attorney Marilyn J. Mosby, and their offices for their assistance in the prosecution.  Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.

Baltimore, Maryland – Albert A. Firlie, age 67, of Severn, Maryland, pleaded guilty today to possession of child pornography. Firlie faces an enhanced sentence due to a 1991 child abuse conviction in Howard County, Maryland, involving the sexual abuse of a prepubescent minor female.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Acting Special Agent in Charge Ivan Arvelo 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 used the internet to locate and obtain child pornography.  In November 2007 and April 2009, Firlie created email accounts with Hotmail and Verizon, respectively, with a username that combined his first name with the first name of the victim in his child sex abuse case. A search of Firlie’s computers and email accounts reveal that Firlie was using internet search services in an attempt to locate the victim and her family as recently as late June 2014.

Between December 12, 2008 and December 26, 2014, Firlie uploaded approximately 120 videos depicting minors engaged in sexually explicit conduct to his account associated with both email addresses, utilizing 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 a Google “gmail” address, using a different website that also provided users with remote, “cloud,” storage for media files.  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, a federal search warrant was executed at Firlie’s residence. During execution of the warrant, investigators recovered a large number of computers and other digital storage media. Forensic examination of the seized media showed that Firlie was in possession of more than 600 images, including over 120 videos, depicting minors engaged in sexually explicit conduct.  The images included prepubescent minors and sadistic or masochistic conduct.

As part of his plea agreement, 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).

Firlie faces a minimum sentence of 10 years in prison and a maximum of 20 years in prison, followed by up to lifetime of supervised release, for possession of child pornography.   U.S. District Judge James K. Bredar has scheduled sentencing for October 19, 2015 at 2:00 p.m.

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

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

Baltimore, Maryland – A federal grand jury indicted Steven B. Boyd, a/k/a “Gotti,” age 36, of Baltimore, yesterday on charges of sex trafficking of a minor, sexual exploitation of a minor, and other charges related to his operation of an alleged prostitution business.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Interim Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.

According to the seven count indictment, beginning in at least July 2013, Boyd was a pimp who caused girls and women to engage in commercial sex acts for his own financial benefit.  The indictment alleges that Boyd recruited girls and women whom he met at hotels, other public places and online to work for him as prostitutes, including two girls who Boyd knew were under 18 years of age.  Five other women over the age of 18 worked for Boyd, including two women whom Boyd persuaded to travel from Ohio and California, to Maryland to work for Boyd.

The indictment alleges that Boyd would routinely take some or all of the money from the girls and women and keep it for himself.  Boyd provided the women with drugs, including “molly” and marijuana, as well as alcohol.  Boyd had the girls and women walk the “track,” also called the “blade” or the “strip,” areas of Baltimore and other city streets frequented by commercial sex workers and customers.  Boyd paid for online ads for the women and girls to engage in commercial sex acts.  Boyd transported the girls and women on “outcalls,” taking to them to hotel rooms and residences to engage in prostitution.  Boyd provided the girls and women with telephones to communicate with him about their commercial sex activities.

The indictment also alleges that Boyd used one of the minor girls to engage in sexually explicit conduct so that he could record a video.  In addition, the indictment alleges that on January 12, 2015, Boyd transported three of the women from Maryland to Georgia to engage in prostitution, returning to Maryland on January 14, 2015 to continue working for Boyd.

Boyd faces a mandatory minimum sentence of 10 years and up to life in prison for each of two counts of sex trafficking of a minor; a mandatory minimum of 15 years and up to 30 years in prison for sexual exploitation of a minor; a maximum of 20 years in prison for each of two counts of enticement to travel interstate to engage in prostitution; and a maximum of 10 years in prison for each of two counts of interstate transportation to engage in prostitution.  An initial appearance is scheduled for Boyd today at 1:30 p.m. before U.S. Magistrate Judge J. Mark Coulson in U.S. District Court in Baltimore.  Boyd is currently detained on state charges.

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

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 Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Rachel M. Yasser, who are prosecuting the case.

Greenbelt, Maryland – A federal grand jury has indicted 14 members of the Simple City Criminal Organization (Simple City) for a $5 million racketeering conspiracy.  The indictment alleges that the members of the conspiracy engaged in criminal activity, including: the theft of vehicles, the sale and transportation of stolen vehicles and items stolen from vehicles including cell phones, computers, tablets and purses, among other items; fraud and identity theft committed using stolen credit and debit cards and check books; and commercial armed robberies and thefts from ATMs.  The indictment was returned on July 13, 2015 and unsealed today, upon the arrests of the defendants.  Approximately 140 law enforcement officers from four federal, state and local agencies executed 11 search warrants and arrested seven defendants.  Two defendants were already in custody on state and federal charges. Five defendants are still being sought.

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

The indictment charges the following defendants who are in custody:

            Jeff Crews, a/k/a “Fro,” age 24, of Washington, D.C.;

            Sylvia Price, a/k/a “Deez Nuts,” age 49, of Suitland, Maryland;

            Stefon Janey, a/k/a “Stef,” and “Stef Luva,” age 22, of Marlow Heights, Maryland;

            Kwasi Crichlow, age 21, of Washington, D.C.;

            Earl Ferguson, a/k/a “Frank,” age 32, of Upper Marlboro;

            Lamonte Henson, a/k/a “Tiggy,” and “Tiggy Stacks,” age 23, of Upper Marlboro;

            Michael Price, a/k/a “Mikey,” age 21, of Suitland;

            Jessica Rubio, a/k/a “Jazz,” age 38, of Washington, D.C.; and

            Shatei Tucker, a/k/a “Bootsie,” age 54, of Washington, D.C.

According to the indictment, Simple City has been operating in the Washington metropolitan area since at least 2009.  The conspirators met on a regular basis, and reported to the organization’s leadership, including Jeff Crews, Sylvia Price, and Stefon Janey, through the use of cell phones, texts and iMessages, and social media (such as Instagram). Members sought direction, instruction, and advice on how to commit crimes.  The leaders updated members on Simple City business and resolved disagreements regarding operations among members and associates.  Incarcerated members regularly communicated with outside members and associates to discuss Simple City matters and to plan future criminal activity. The conspirators trafficked firearms and shared the proceeds from their criminal activity.

According to court documents, Simple City usually started their crime sprees by committing “hop-in” style motor vehicle thefts or carjackings.  Hop-in thefts occur when a person leaves a running vehicle unattended and a member of the organization gets into the vehicle and drives away.  The conspirators typically parked the stolen vehicle on the side of a road or in a public parking lot until they believed that law enforcement was no longer actively looking for the vehicle.  The conspirators then used the stolen vehicle to commit other crimes, including thefts from autos, citizen robberies and burglaries targeting ATMs.  The conspirators then attempted to sell the stolen car.  Additionally, the conspirators sold any personal identification information (PII) and credit cards and debit cards they stole during the crime spree to another group within Simple City led by Sylvia Price. Sylvia Price’s group then allegedly used the PII and credit/debit cards to commit wire fraud, credit card fraud and aggravated identity theft.  Sylvia Price typically provided a portion of the proceeds to Crews for disbursement to other Simple City members – generally those members who were active participants in the thefts.  Any cash obtained during the crime spree was kept by the conspirators and stolen electronics were typically sold for profit.

For example, the indictment alleges that on June 23, 2014, Crews and a co-conspirator communicated by text message discussing whether Crews had stolen vehicles to sell to the co-conspirator.  Crews subsequently sent the co-conspirator three pictures of a stolen 2014 Mercedes by text message.  On September 5, 2014, a co-defendant sent Crews an iMessage that contained a photograph of two firearms, offering to sell Crews the two pictured firearms for $1,200.  On April 18, 2015, Crews, Janey and another person robbed a gas station in Beltsville, using a crowbar to forcibly enter the employee vestibule area and stealing cash from the register.  Further, Sylvia Price, Jessica Rubio, Shatei Tucker and others used stolen checks and credit cards to obtain cash and merchandise.

Finally, the indictment seeks the forfeiture of $5 million, believed to be the proceeds obtained from the racketeering activity.

The defendants face a maximum sentence of 20 years in prison for racketeering conspiracy.  An initial appearance was held for six of the arrested defendants today in U.S. District Court in Greenbelt.  Rubio, Crichlow, Janey and Crews were ordered detained pending detention hearings next week. Henson and Ferguson, who are currently in custody on other charges, will have an initial appearance on these federal charges at a later date.  No court appearance has been scheduled for Sylvia Price.

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

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

Baltimore, Maryland – A federal grand jury returned an indictment today charging Raymon Carter, age 24, of Baltimore, Maryland, with the arson of the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore, on April 27, 2015.

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

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

According to the indictment and court documents, on April 27, 2015, the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore was looted and burned.  On May 22, 2015, ATF released two still photographs of a suspect in the arson to the media and announced a $10,000 reward for information leading to the suspect’s identification, arrest and conviction.  The indictment alleges that Carter is the person who started the fire in the CVS.

Carter faces a mandatory minimum sentence of five years in prison, and a maximum of 20 years in prison for arson. No court appearance is scheduled at this time.

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

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

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Derek Roberts, age 45, of Baltimore, Maryland, today to 19 years in prison, followed by three years of supervised release, for conspiring to commit three armed robberies and using and brandishing a firearm during a crime of violence.  In total, Roberts admitted to acting as the gunman in four armed robberies.                        

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt 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 Roberts’ plea agreement, from September 2013 through October 11, 2013, Roberts conspired with Rodney Smith to commit armed robberies at a fast food restaurant, a drug store and a gas station.  Roberts also admitted robbing another store with co-conspirator Richard Bruzdzinski.

According to their plea agreements, on the morning of September 15, 2013, Roberts and Smith went to a fast food restaurant in Rosedale, Maryland, and waited for an employee to arrive.  When the employee arrived to open the store Roberts and Smith approached him. Roberts pointed a loaded gun at the employee and pushed him into the store.  Roberts tied up the victim and demanded money from the cash register.  Roberts and Smith stole approximately $200 from the restaurant.  On September 27, 2013, Roberts and Smith robbed a drug store in Havre de Grace.  When two employees began closing the store, Roberts pointed a loaded gun at the employees and forced them into the store, where he and Smith tied up the victims and demanded money.  One of the victims opened the store safe and Roberts took money from the safe.  Roberts and Smith stole $3,400 from the store, several cartons of cigarettes and a purse belonging to one of the victims. On October 3, 2013, Roberts and Smith drove from Maryland to a gas station in Fredericksburg, Virginia.  An employee let Roberts and Smith into the store and Roberts pointed a loaded gun at the victim.  Roberts instructed the victim to go to a back room and lay on the ground, and demanded money.  Roberts and Smith stole approximately $200, cartons of cigarettes and beer from the gas station.

In addition to the robberies with Smith, on October 2, 2013, Roberts robbed a store in Timonium, Maryland, with Richard Bruzdzinski.  The owner of the establishment recognized Brudzinski, who had been a customer of the store a few weeks earlier.  The owner opened the electronic door for Roberts and Bruzdzinski.  Immediately, Roberts drew a handgun, pointed it at the owner, and stated that a robbery was occurring.  Bruzdzinski drew a stun gun from his pocket.  The two men directed the owner and an employee to go to the office in the back of the store, then ordered the victims to the ground.  Roberts and Bruzdinski tied the hands of the victims with plastic zip ties.  Roberts and Bruzdzinski stole money, gold jewelry, coins, the owner’s Glock pistol, and the victims’ cell phones.

Rodney Smith, age 51, and Richard Bruzdzinski, age 43, both of Baltimore, pleaded guilty to their roles in the robberies.  Smith is scheduled to be sentenced on July 21, 2015 at 10:00 a.m. and Bruzdzinski was sentenced to 10 years in prison on March 26, 2015.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and thanked Cecil County State’s Attorney Ellis Rollins, Baltimore City State’s Attorney Marilyn J. Mosby, and their offices for their assistance in the prosecution.  Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jamar Williams, age 28, of Baltimore, Maryland today to 10 years in prison, followed by three years of supervised release, for possession with intent to distribute Dimethylone, a controlled dangerous substance.

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

According to his plea agreement, Baltimore Police officers on patrol observed Williams driving a car in the 4000 block of the Alameda.  The officers stopped Williams because he was not wearing a seat belt.  There was a strong odor of marijuana emanating from the vehicle and the occupants.  Williams did not provide the officer with a driver’s license and informed the officer that the vehicle was a rental car that had been rented in a relative’s name.  Williams could not legally operate the vehicle and the officers asked Williams and the two passengers to get out of the car.  Officers recovered a clear bag containing 14.06 grams of Dimethylone, a controlled dangerous substance, from underneath the front passenger seat.  Williams admitted that he possessed the Dimethylone with the intent to distribute it.

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 Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.

Baltimore, Maryland – A federal grand jury indicted three defendants on charges arising from the fraudulent purchase of seven properties in Baltimore, using fraudulent loan documentation and straw purchasers, resulting in losses of over $1.7 million:

      Cecil Sylvester Chester, age 68, of Mitchellville, Maryland;

      Michael Gerard Camphor, age 59, of Baltimore; and

      Christopher Andy Kwegan, age 58, of Randallstown, Maryland.

The indictment was returned on June 24, 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 Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.

“Mortgage fraud perpetrators steal from lenders that are induced to make loans that will never be repaid and damage neighborhoods when the resulting foreclosures drive down property values,” stated U.S. Attorney Rod J. Rosenstein.

Chester worked as an accountant from an office located on New Hampshire Avenue in Hyattsville, Maryland.  Camphor had worked as a real estate agent for a company and also operated a real estate consulting business called Ron Gerard LLC, a/k/a Ron Gerard & Associates.  Kwegan worked as a real estate agent for another company and also bought and sold residential properties on his own.

According to the 23 count indictment, from February 2008 to July 2009, the defendants identified houses in Baltimore that were for sale, many of which had been purchased and renovated by co-conspirator Andreas Tamaris.  Tamaris owned and operated a company that purchased and renovated row homes in the Highlandtown neighborhood of Baltimore City.  The three defendants set the purchase price for the properties to exceed their actual fair market value, thereby generating excess proceeds from the transactions from which they could profit.

Chester and Camphor persuaded individuals who were inexperienced with residential real estate transactions to allow them to use their names, identifying information and credit histories to purchase Baltimore row houses owned by Tamaris or otherwise located by the conspirators. The indictment alleges that Chester and Camphor advised these “straw purchasers” that they didn’t need to contribute funds for the down payment or closing costs to buy these properties. Chester and Camphor also advised that they would place tenants in the properties whose rent payments would cover the monthly mortgage payments after the transactions closed, and that Chester and Camphor would collect the rent, manage the tenants and make the mortgage payments.

Chester and Camphor are alleged to have provided false information about the straw purchasers’ employment, income and financial assets, as well as false and fraudulent supporting documentation to the mortgage loan brokers to enable the straw purchasers to qualify for home mortgage loans. Chester and Camphor falsely indicated to the mortgage loan brokers that the straw purchasers each intended to use the property as their primary residence following the purchase. Tamaris and other individuals, including Kwegan, supplied the funds needed for the down payment and closing costs on each of the transactions, and were in turn reimbursed from the loan proceeds at settlement.

The indictment alleges that following the settlement on each transaction in which they participated, the three defendants received substantial payments drawn from the proceeds of the loan. Few, if any, payments were made towards the mortgages, and each of the seven properties went into foreclosure, resulting in a loss of at least $1.7 million.

The indictment seeks forfeiture of at least $1,571,631 from Chester, $962,274 from Camphor and $242,500 from Kwegan.

All three defendants face a maximum sentence of 30 years in prison and a $250,000 fine for conspiring to commit wire and mail fraud and for wire fraud.  Chester and Camphor also face a maximum sentence of 30 years in prison and a $250,000 fine for mail fraud.   An initial appearance was held for Kwegan yesterday, and Camphor’s initial appearance is scheduled for 3:00 p.m. today, in U.S. District Court in Baltimore.  Chester is expected to have his initial appearance in federal court in New York today.

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 a related proceeding involving two of the properties at issue in the instant case, co-conspirator Andreas E. Tamaris, age 44, of Bel Air, Maryland, previously pleaded guilty to one count of conspiracy to commit mail and wire fraud, and awaits sentencing.

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/priorities_financialfraud.html.

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 , HUD OIG - Office of Investigations and the U.S. Secret Service for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Victor Maurice Cook, age 40, of Millersville, Maryland today to a total of seven years in prison.  Judge Motz sentenced Cook to five years in prison followed by five years of supervised release, for possession with intent to distribute cocaine, and two years in prison, consecutive to the five year sentence, for violating his supervised release from a previous drug conviction.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Special Agent in Charge Shawn Ellerman of the Drug Enforcement Administration, Baltimore District Office; and Anne Arundel County Police Chief Tim Altomare.

According to his plea agreement, on October 20, 2014, law enforcement officers received information that Cook would be engaged in a narcotics transaction in the vicinity of Route 2 and Arnold Road in Anne Arundel County.  At that location, agents saw Cook crossing over the center lane divide several times and speaking on a hand held telephone as he was driving.  Anne Arundel County Police detectives attempted to pull Cook over, but Cook continued driving, then tried to swerve into the detectives’ cars, striking one of them.  Officers continued following Cook through the parking lots of businesses and ultimately heading southbound on Route 2. When Cook approached a red light with cars stopped at the intersection, Cook drove his car over the curb to get around the traffic and avoid stopping at the intersection.  As he was driving, Cook threw a white plastic bag out of the passenger side window of his vehicle.  Agents recovered the bag, while other officers approached Cook’s stopped vehicle and ordered him out.  Cook struggled with the officers, but was ultimately removed from the vehicle, arrested and handcuffed.  The plastic bag was found to contain over a kilogram of cocaine.

Cook also violated his supervised release from a 2001 federal drug conviction for which he served a 12 year sentence.  Cook was serving five years of supervised release for this conviction when he was arrested in October 2014.

United States Attorney Rod J. Rosenstein praised the DEA and Anne Arundel County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Andrea L. Smith, who prosecuted this Organized Crime Drug Enforcement case, as well as Cook’s previous drug case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Stephen H. Schaffner, age 35, of Greensboro, Maryland, today to 35 years in prison, followed by supervised release for life, for a conspiracy to sexually exploit a child, and for sexual exploitation of a six week old baby who was born prematurely, in order to produce images documenting the abuse. Judge Motz also ordered that upon his release from prison Schaffner 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; United States Attorney for the Southern District of California Laura E. Duffy; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation - Maryland;  Special Agent in Charge Eric Birnbaum of the Federal Bureau of Investigation – San Diego Division; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Jeff A. Jackson of the Greensboro Police Department and Chief David A. Spencer of the Easton Police Department.

“The defendant was caught because in 2014, police were still able to obtain a warrant and find images on a cell phone,” said U.S. Attorney Rod J. Rosenstein.  “Companies now market encrypted devices that are immune from search warrants and allow pedophiles to molest children and trade photographs with little risk of detection, even when a federal judge finds that there is probable cause and issues a court order. Law enforcement officials have a responsibility to alert law-abiding citizens about the consequences of ‘going dark,’ so they will not be surprised when police cannot obtain evidence of serious crimes.”

According to his plea agreement, for over four years, Schaffner was a licensed associate counselor in Arizona, providing behavioral health and education services for children ages 11-17 whose lives and family relationships were in crisis, or who were struggling with mental health or substance abuse challenges.  Schaffner also worked as a clinician in Easton, Maryland for 18 months, providing individual and family mental health counseling, including treatment for children and for sex offenders.  In 2011 and 2012, Schaffner attended trainings and conferences focused on the assessment, management and treatment of sex offenders.  On October 30, 2012, Schaffner sent an adult counseling client inappropriate text messages of a sexual nature.  In November 2012, Schaffner was fired from the practice where he worked, and his license was later suspended.

Schaffner admitted that beginning in 2004, he collected child pornography he obtained from the internet.  Thousands of images and videos of minors engaged in sexually explicit conduct were located on digital devices, storage media and online accounts seized from Schaffner.  In his electronic communications, Schaffner repeatedly expressed a sexual interest in boys from “age zero” up, and his desire to commit violent sexual abuse against infants, including making the children cry during the abuse, and injuring or killing children in the course of sexual abuse.  He discussed ways to ensure that the children did not report the abuse, including drugging or killing the children.

According to his plea agreement, in late June 2014, Schaffner met Michael Lutts online.  Lutts lived in California and worked as a pediatric nurse at a hospital in San Diego County. Schaffner and Lutts communicated electronically using their cellular phones. On August 4, 2014, Lutts brought home a six week old baby boy, born prematurely, who was placed in his care as a foster child.  Lutts texted images of the infant to Schaffner.

Over the next several hours, Schaffner exchanged numerous graphic and sexually explicit messages with Lutts about Lutts sexually abusing the infant. Schaffner directed Lutts to sexually abuse the infant in specific ways, to produce photos and video that Lutts was to send to Schaffner. Lutts sent Schaffner images and videos with the infant, including images documenting the sexual abuse of the infant.  Schaffner and Lutts also discussed Schaffner travelling to San Diego to rape the infant.

According to court documents, the abuse of the infant was discovered when a federal investigation of individuals transmitting child pornography led authorities to obtain a search warrant for Michael William Lutts’s residence in San Diego on August 26, 2014.  During that search, law enforcement seized a cell phone that contained images and videos of Lutts sexually molesting the infant.  Michael Lutts pleaded guilty in federal court in the Southern District of California to three counts of sexual exploitation of a child and is scheduled to be sentenced on October 13, 2015.

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’s Baltimore and San Diego offices, the Maryland State Police Interstate Crimes Against Children Task Force (ICAC), the San Diego, California ICAC, Greensboro Police Department, and Easton Police Department for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorney Alessandra P. Serano from the Southern District of California who is prosecuting the case against Michael Lutts, and Assistant U.S. Attorney Zachary A. Myers from Maryland, who is prosecuting the case against Stephen Schaffner.

Baltimore, Maryland – David C. Andrews, age 52, of Salisbury, Maryland, pleaded guilty today to distribution of child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo 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.

As part of his plea agreement, Andrews must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).  In addition, Andrews will be required to pay restitution to any identified victims used to produce the child pornography Andrews distributed.

Andrews and the government have agreed that if the Court accepts the plea agreement Andrews will be sentenced to between 70 and 87 months in prison.  U.S. District Judge Richard D. Bennett has scheduled sentencing for October 27, 2015 at 3:00 p.m.

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore 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. Attorney Zachary A. Myers, who is prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Evan Anthony Peek-Austin, age 39, of Landover, Maryland, to 11 years in prison, followed by five years of supervised release, for conspiring to commit the robbery of a drug dealer, for using and brandishing a firearm during a crime of violence, and for carjacking.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to his plea agreement, on April 11, 2014, Peek Austin and his co-conspirators Shawn Delonte Allen and Joel Varela Linares, entered the victim’s residence and awaited his arrival.  As the victim arrived home, Allen approached the victim from behind and forced him at gunpoint into the residence.  After zip-tying the victim’s hands, Austin, Linares and Allen questioned the victim about the location of drugs and drug proceeds.  The robbers thought the victim was in possession of heroin imported from Guatemala or proceeds from heroin sales. Austin, Allen, and Linares each had a handgun and threatened to kill the victim if he did not produce the drugs or drug proceeds.  While questioning the victim, Allen brandished his gun.  When the victim claimed that he did not have drugs or drug proceeds, Linares placed a knife to the victim’s neck and Allen struck the victim in the head with a handgun. Allen also heated a metal spoon and placed the hot spoon on the victim’s wrists, demanding the victim tell them the location of the drugs and money.

Austin and his co-conspirators move the victim to the basement where Austin secured the victim’s feet with plastic zip ties. Allen again heated a metal spoon and placed the hot spoon on the victim’s hands and face, while Austin, Allen and Linares continued to demand that the victim tell them the location of the drugs and money.   The victim finally told Austin and his co-conspirators that his American friend had the drugs and money and the robbers allowed the victim to call his friend, who was, in fact, a Special Agent with Homeland Security Investigations.  The victim arranged to meet with the agent and told Austin and his co-conspirators that his friend would have approximately 10 kilograms of heroin.

Allen and Linares instructed the victim to drive them to the meeting location in Beltsville, Maryland.  Linares told the victim that Austin would remain at the victim’s home to wait for the victim’s family and that Austin would harm the victim’s family if the victim did not comply with their instructions.  Austin later met up with Allen, Linares and the victim at the meeting location.  Once the HSI agent arrived, the victim met the agent and told him that Austin and his co-conspirators were going to kill him.  As the HSI agent and the victim left, Allen got out of the car and brandished his gun.  Linares entered another vehicle and pursued the agent’s car until he was stopped by Prince George’s County Police officers.  Meanwhile, Austin and Allen fled the meeting location in a Honda Prelude and were pursued by law enforcement.  They eventually ran away and Allen was subsequently apprehended by police.  Austin approached two people in a pick-up truck, brandished his gun and carjacked the truck.  Austin drove away in the truck, but was shortly trapped in the area by a gate. Austin then got out of the truck and ran.  Austin was later caught by police.

A subsequent search of the Honda Prelude, which was registered to Austin, recovered $5,000 in cash, a black ski mask, black hat, black pellet gun, black single strap backpack containing zip ties and white gloves, and a wallet containing Austin’s identification documents.

Shawn Delonte Allen, age 40, of Waldorf, Maryland and Joel Varela Linares, age 25, of Washington, D.C., previously pleaded guilty to their roles in the robbery.  Allen was sentenced to 150 months in prison and Linares is scheduled to be sentenced on August 18, 2015 at 10:30 a.m.

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

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Antonio Lamar Cooper, age 28, and Juwan Armarni Watkins, age 22, both of Washington, D.C., yesterday to 241 months in prison, and 210 months in prison, respectively, for interfering with interstate commerce by the armed robbery of employees who were transporting money in an armored truck, and using a firearm during the robbery.  On July 6, 2015, Judge Hazel sentenced Maurice Lorenzo Foreman, age 24, of Oxon Hill, Maryland, and Eugene Robert Watkins, age 23, of Washington, D.C., to 255 months in prison, and 14 years in prison, respectively, for the same crimes.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

According to their plea agreements and court documents, on January 15, 2014 the defendants drove a stolen vehicle to a restaurant on Allentown Road in Morningside, Maryland.  Outside the restaurant, two armored truck employees were transporting money from the restaurant. One of the defendants pointed a gun at an employee’s face, pushed her to the ground, placed his gun on the back of her head and took her gun.  Another defendant pointed his gun at the second employee’s head and took his gun as well.  The defendants, all or some of whom were wearing masks and brandishing firearms, robbed the employees of $72,106.54 in cash, $4,028.81 in checks, and personal property.

During their escape, a citizen who witnessed the robbery followed the defendants from the scene and called 911 while in pursuit.  The defendants realized that the witness was following them and shot at the witness, hitting the windshield and body of the witness’ vehicle several times.  During that shooting, the witness was struck in the face by glass and/or bullet fragments.

According to court documents, Prince George’s County Police officers pursued the defendants’ stolen vehicle into Washington, D.C. where the defendants got out of their vehicle and attempted to flee.  With the assistance of a canine search initiated by Metropolitan Police officers, the defendants were subsequently arrested.

United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Daniel C. Gardner, Michael T. Packard and William D. Moomau, who prosecuted the case.

Greenbelt, Maryland – Shaun Valente, age 30, of Montgomery Village, Maryland, pleaded guilty today to distribution of child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS).

According to Valente’s plea agreement, from at least March 2013 through September 2014, Valente used his computer to distribute and to receive child pornography.  On February 26, 2014, Dropbox, an online storage platform, reported to the National Center for Missing and Exploited Children (NCMEC) that images documenting the sexual abuse of minors had been uploaded to Valente’s Dropbox account. Valente admitted that he also received and distributed images depicting minors engaged in sexually explicit conduct through email.

On September 12, 2014, HSI Special Agents executed a search warrant at Valente’s residence and seized a notebook computer, cellular phone and flash drives that contained more than 4,000 images and 175 videos depicting children engaged in sexually explicit conduct.  The  child pornography included images of prepubescent children, and material that portrayed sadistic or masochistic conduct, or other depictions of violence.

According to his plea agreement, on March 22, 2005, Valente was convicted in Montgomery County Circuit Court for sexual abuse of a minor and a child pornography offense, for which he was sentenced to four years in prison, with all but 18 months suspended.

As part of his plea agreement, Valente 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).

Valente and the government have agreed that if the Court accepts the plea agreement Valente will be sentenced to 198 months in prison.  U.S. District Judge Paul W. Grimm has scheduled sentencing for November 19, 2015 at 9:00 a.m. Valente remains detained.

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 for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Kristi N. O’Malley and Joseph R. Baldwin, who are prosecuting the case.

Greenbelt, Maryland – A federal grand jury returned a superseding indictment today charging the following defendants, all of Maryland, in connection with a conspiracy to participate in a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:

Aldair Garcia-Miranda, a/k/a “Callado” and “Poseido,” age 21, of Wheaton,

Selvin Raymundo Salazar, a/k/a “Little” and “Inquieto,” age 23, of Wheaton, and

Raul Ernesto Landaverde-Giron, a/k/a “Decente” and “Humilde,” age 25, of Silver  Spring.

All of the defendants are in custody.

“Transnational criminal gangs inflict violence and fear upon our community,” said Ivan Arvelo, Acting Special Agent in Charge Baltimore, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations.  “Enforcement of gang-related crimes is a high priority for our agency. We appreciate opportunities to collaborate with our law enforcement colleagues to bring these violent criminals to justice.”         

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

MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland, with a presence in Frederick.  The defendants were members of the Normandie Clique of MS-13.  For a period of time beginning at least in late 2013 or early 2014, Garcia-Miranda and Salazar served as leaders of the Normandie Clique in the area of Prince George’s County and Montgomery County.

The four count indictment alleges that from at least prior to 2012 through 2014, the defendants were members and associates of MS-13 who planned and committed murders, attempted murders and extortion.

More specifically, on February 28, 2013, Salazar and other MS-13 members allegedly shot and killed an individual suspected of being a member of a rival gang.

The indictment further alleges that on November 30, 2013, MS-13 members, including Garcia-Miranda and Landaverde-Giron, armed themselves with knives and a gun in order kill a person who had fled from El Salvador to Frederick, Maryland to escape an order to kill by MS-13 in El Salvador.  They lured the victim to a wooded area between Greenwall Place and Hoke Place in Frederick, shot him in the head and stabbed him multiple times, killing him.

According to the indictment, on July 30, 2014, Garcia-Miranda, Salazar and other MS-13 members traveled to the 5700 block of 30th Avenue in Hyattsville, Maryland with guns to search for and shoot suspected rival gang members and others who were believed to have taken property from an MS-13 associate.  They arrived at a nearby location where three individuals were walking.  Garcia-Miranda and an MS-13 associate, while in the company of Salazar, fired multiple shots from handguns at the three victims, striking one victim seven times and another victim once.

All three defendants face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise.  Garcia-Miranda and Salazar also face a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering, and for attempted murder in aid of racketeering; and a mandatory minimum of 10 years in prison consecutive to any other sentence and a maximum sentence of life in prison for using a gun to conspire to commit murder in aid of racketeering and attempted murder in aid of racketeering.

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

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

Baltimore, Maryland – A criminal complaint has been filed charging Raymon Carter, age 24, of Baltimore, Maryland, with the arson of the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore, on April 27, 2015.

The criminal complaint 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 Anthony W. Batts of the Baltimore Police Department; and Maryland State Fire Marshal Brian Geraci.  

“To paraphrase Winston Churchill, civilized people cannot remain impartial between the firefighter and the arsonist,” said U.S. Attorney Rod J. Rosenstein. “There is no excuse for callously destroying property, endangering peoples’ lives and damaging their livelihood. We must never confuse peaceful protests with riots. Many honorable Baltimore residents are stepping up to hold vandals accountable and protect the city.”

“Those committing arson took advantage of our city when we were most vulnerable.  Carter’s alleged actions caused over $1 million of damage to this community,” said Commissioner Anthony Batts of the Baltimore Police Department.  “Thanks to the hard work of the ATF and our detectives our hope is that we will never have to do this again. We owe a tremendous debt to the community that helped us to identify him. Thank you to our residents.”

On April 27, 2015, the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore was looted and burned.  On May 22, 2015, ATF released two still photographs of a suspect in the arson to the media and announced a $10,000 reward for information leading to the suspect’s identification, arrest and conviction.  According to the affidavit filed in support of the criminal complaint, tips to the ATF Arson Hotline revealed that the suspect was Raymon Carter.

The criminal complaint was filed on June 25, 2015, and on June 29, 2015, the ATF released a “wanted” poster asking the community for information leading to the location and apprehension of Carter.  Carter was arrested yesterday and the complaint was unsealed today.

According to the affidavit, surveillance video from inside the store shows the looters running around the store in a frenzy to steal merchandise.  Unlike the looters, Carter is seen on surveillance video going to and from the southeast corner of the sales floor – which is the area of the origin of the fire - three separate times between 6:15 p.m. and 6:19 p.m.  The third time Carter is seen going to that corner of the store, he moves out of camera view, behind the shelves.  The time on the video is 6:19:34 p.m. At 6:19:57 p.m. a flash of light can be seen on the video, which is believed to be the ignition of the fire.  After the flash of light, Carter reappears on the surveillance video from behind the shelves and at 6:20:06 p.m. is seen running away from the area toward the CVS exit.  No other individual is seen on the surveillance video in the area of the fire from the time of the flash of light until Carter exits the store.  At 6:22:05 Carter is seen back in the store.  Flames in the southeast corner of the store become visible on the surveillance video at 6:22:19 p.m.  Fourteen seconds later Carter is seen walking towards the exit while looking back at the fire, and the looters are seen running toward the exit.  The Baltimore Fire Department was dispatched to the scene at 6:28 p.m.  According to the affidavit, two still photographs of Carter were extracted from video taken outside the CVS and were used in the reward flyer.

According to the affidavit, the CVS sustained approximately $1.3 million in damages.

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

 Carter faces a mandatory minimum sentence of five years in prison, and a maximum of 20 years in prison for arson.  An initial appearance was held today in U.S. District Court in Baltimore.  Carter was detained pending a detention hearing before U.S. Magistrate Judge Stephanie A. Gallagher on Tuesday, July 7, 2015 at 2:00 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.

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

Baltimore, Maryland – Former Baltimore City Department of Public Works (DPW) employee Tamara Oliver Washington, age 55, of Baltimore, pleaded guilty today to conspiracy and to solicitation of bribes in connection with a 14 year scheme in which DPW employees sought and accepted cash payments from commercial haulers in return for allowing the commercial haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt 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.

“Corrupt public employees rip off the taxpayers and undermine everyone’s faith in government,” said U.S. Attorney Rod J. Rosenstein.

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 further within the Landfill.  Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.

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

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

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

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

Washington has agreed to pay restitution of $6 million.

Washington faces 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 October 20, 2015, at 10:00 a.m.

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

Baltimore, Maryland – A federal jury convicted Richard Alan Blank, Jr., age 44, of LaVale, Maryland, today for two counts of sexually abusing a minor to produce child pornography, and for possession of child pornography.

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

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

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

Blank faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison, followed by up to lifetime of supervised release, for each of the two counts of production of child pornography, and a maximum of 10 years in prison for possession of child pornography.   U.S. District Judge William D. Quarles has scheduled sentencing for October 1, 2015, at 1:00 p.m.  Blank remains detained.

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

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Marc Joseph Punzalan, age 21, of Rockville, Maryland, today to 15 years in prison followed by a lifetime of supervised release for producing child pornography in connection with a scheme in which he met young girls through social media and internet chat rooms and convinced them to send him sexually explicit photographs of themselves. When the girls told him they no longer wanted to send the increasingly graphic images he requested, Punzalan threatened to post the images online and/or tell the girls’ friends and families.

Judge Motz also ordered that Punzulan pay restitution of $10,000, and that upon his release from prison, Punzalan 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 and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

According to Punzalan’s plea agreement, from January 2012 through January 2014, he contacted four minor female victims between 12 and 16 years of age, and persuaded them to send him sexually explicit photographs of themselves, using cell phone applications, and internet social media and chat messaging sites.  Punzalan assumed the identity of at least one minor victim and used that victim’s identity to convince other minor females to send him sexually explicit images.

Each of the victims informed Punzalan at different points that she no longer wished to send him sexually explicit images.  Punzalan responded to each girl by threatening to send the images to the victim’s family and friends or publicly post the images if the victim did not send him more images depicting increasingly graphic sexual conduct.  Punzalan created social media accounts in the victims’ names and posted images he had received of the victims on those accounts.

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

Baltimore, Maryland – Four defendants were sentenced to at least 10 years in prison in connection with a conspiracy to distribute cocaine and/or heroin, for attempting to possess with intent to distribute cocaine and/or heroin, and committing these crimes while on supervised release from previous federal convictions.  All four defendants were convicted on March 20, 2015, after a nine day trial.  Five other defendants previously pleaded guilty to their roles in the conspiracy.

U.S. District Judge Richard D Bennett sentenced Cornell Dion Brown, a/k/a “Nelly,” age 29, of Baltimore on June 30, 2015, to 12 years in prison, followed by five years of supervised release, for conspiracy to distribute cocaine and heroin, and for attempting to possess with intent to distribute cocaine.                          

On June 29, 2015, Judge Bennett sentenced Germaine Cannady, a/k/a “Jermaine Cannady,” and “Main,” age 39, to a total of 18 years in prison: 16 years in prison, followed by six years of supervised release, for the drug conviction; and two years in prison, consecutive to the sentence for the drug conviction, for violating his supervised release from two previous federal convictions.  On June 26, 2015, Judge Bennett sentenced Dominic William Parker, a/k/a “Nick,” age 30, of Baltimore, to a total of 151 months in prison; 121 months in prison, followed by five years of supervised release, for the drug conviction; and an additional 30 months in prison for violating his supervised release from a previous federal conviction.

On June 25, 2015, Judge Bennett sentenced co-defendant Ronald Timothy Sampson, a/k/a “Little Ronald,” age 35, of Windsor Mills, Maryland, to a total of 13 years in prison: eight years in prison, followed by eight years of supervised release, for his role in the drug conspiracy; and five years in prison, consecutive to the sentence imposed for the drug conspiracy, for violating his supervised release from a previous federal conviction.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Assistant Special Agent in Charge Shawn Ellerman of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Anthony W. Batts of the Baltimore Police Department.

 At the nine-day trial, the government argued that on August 11, 2014, each of the defendants agreed to purchase kilogram amounts of cocaine and/or heroin from a cooperating individual (CI).  Law enforcement had previously seized 25 kilograms of cocaine and six kilograms of heroin from a concealed compartment in a motor home that the CI used to transport the drugs from California to Maryland.  The defendants agreed to meet the CI in the parking lot of a Baltimore area mall to complete the drug transaction.  The telephone calls with the defendants arranging the transactions were recorded.

Witnesses testified that Brown and co-defendant Tavon Hopkins were arrested after they arrived to pick up the four kilograms of cocaine Brown had agreed to purchase from the CI.  At the time of their arrest, law enforcement recovered $157,000 in cash from a bag in their vehicle.  Cannady and Parker were also arrested when they arrived at the meeting location to pick up the cocaine and heroin requested by Cannady.  No cash was recovered from Cannady and Parker, although the CI explained that they were usually provided with heroin and cocaine without payment up front.  Cannady and Parker had in their possession multiple cell phones and a police scanner.

According to evidence presented at trial, Sampson indicated that he wished to purchase cocaine and heroin.  Sampson told the CI that he was calling up his buyers to get as much money as possible to give to the CI for the purchase of the cocaine and heroin.  When Sampson met the CI to complete the drug transaction, he was also arrested.  Law enforcement seized $10,500 after a search of Sampson and his vehicle.

According to court documents and their plea agreements, on August 11, 2014, Guy Agnant, Jr., Donte Taylor, and Antoine Washington were contacted by a cooperating individual (CI) concerning their desire to obtain drugs.  As a result of the call from the CI, Agnant indicated to the CI that he wanted to purchase five kilograms of cocaine and Taylor indicated a desire to purchase cocaine and heroin. Agnant and Taylor went to meet the CI and were arrested.  Washington traveled with co-defendant Vincent Cooper to meet the CI in order to purchase five kilograms of cocaine and one kilogram of heroin.  Law enforcement saw Washington and Cooper arrive at the arranged meeting place and they were arrested.  Between Washington and Cooper they had with them more than $223,000 to purchase the drugs.

Guy Bordes Agnant, Jr., age 38, of Laurel, Maryland was sentenced to 10 years in prison, for attempted possession with intent to distribute cocaine. Judge Bennett sentenced Antoine DeMarr Washington, age 42, of Washington, D.C. and Donte Eugene Taylor, age 39, of Baltimore, to 12 years in prison and five years in prison, respectively. Washington and Taylor had previously pleaded guilty to attempted possession with the intent to distribute cocaine and heroin. Vincent Cooper, age 47, of Washington, D.C., was sentenced to 11 years in prison, for his participation in the drug conspiracy and Tavon Alexander Louis Hopkins, age 38, of Baltimore also pleaded guilty and was sentenced to three years in prison.

United States Attorney Rod J. Rosenstein commended the FBI, DEA and Baltimore Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced former correctional officer Ashley Newton, age 31, of Baltimore, today to 51 months in prison, followed by three years of supervised release, for participating in a racketeering conspiracy and drug conspiracy, involving the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC), and for money laundering conspiracy. Newton was convicted on February 5, 2015, after a more than two month long jury trial.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS); Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Marilyn Mosby.

“Correctional officers were in bed with inmates, in violation of the first principle of prison management,” said U.S. Attorney Rod J. Rosenstein.

“We remain committed to protecting the public, our employees, and the inmates by aggressively rooting out corruption. We applaud the work of the U.S. Attorney and all of our law enforcement partners in this ongoing effort,” said Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services.

According to trial testimony and court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.  Tavon White and other BGF leaders and members incarcerated at BCDC were involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (COs), who received payments, gifts, or a share of the profits.

According to evidence presented at trial, Newton was a correctional officer (CO) at the BCDC who smuggled contraband into the jail for distribution by BGF inmates. In return, Newton and other COs received payments, gifts or a share of the profits.

According to trial evidence and other court documents, Newton smuggled drugs and other contraband for a succession of BGF leaders starting as early as 2008.  She had long-term sexual relationships with at least two BGF inmates, including Duron Young, a/k/a Pinky.  Newton smuggled pills, marijuana and tobacco for Young, and during the conspiracy, Newton smuggled pills for Pinky almost daily.  Newton also opened cells doors of inmates for BGF members.  For example, on May 19, 2011, Newton opened a grill that allowed a large number of BGF inmates to attack and repeatedly stab an inmate. In 2012, Young became angry at another inmate, whose offense was that he was transporting a lot of contraband around the prison for people other than Young.  Newton opened the door of the inmate’s section to permit Young to go in with another BGF gang member and beat up the inmate.  Newton also warned the BGF of upcoming prison searches by correctional officers.  Newton arranged for money to be sent to inmates and facilitated phone conversations between inmates, including calls from other prisons to BGF leader Tavon White.

This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators.  Investigations are continuing.

Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers.  Thirty-five defendants pleaded guilty and five defendants were convicted after trial.  Three defendants were acquitted and one defendant died.

To date, 22 of the correctional officers, including Newton, have been sentenced to up to 51 months in prison.

BGF leader Tavon White, age 37, pleaded guilty to his participation in the racketeering conspiracy and testified at the trial and was sentenced to 12 years in prison.  Inmates and leaders in the BGF gang, Russell Carrington, a/k/ Rutt, age 34, and Joseph Young, a/k/a Monster, age 33, both of Baltimore, were convicted after trial and sentenced to 210 months in prison and 15 years in prison, respectively.

U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.

United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.