District of Maryland

Baltimore, Maryland – Donte Maurice Johnson, age 30, of Baltimore, Maryland, pleaded guilty on June 30, 2015, to two commercial robberies and to using and brandishing a firearm during a crime of violence.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Anthony W. Batts 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, Johnson robbed a grocery on Claremont Avenue in Baltimore.  Johnson held a shotgun to the store owner’s head and demanded money.  A co-conspirator stood inside the door as a look-out.  The robbers took between $600 and $700.

On November 25, 2013, Johnson and the co-conspirator 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.  Donte 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.   The co-conspirator 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 Johnson and the co-conspirator 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.

Johnson and the government have agreed that if the Court accepts the plea agreement Johnson will be sentenced to between 183 and 198 months in prison.  U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 2, 2015 at 2:15 p.m.  Johnson remains 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 – Sandra Nixon, a/k/a “Lisa Hart,” age 52, of Silver Spring, and Kenneth Dawson, age 52, of Niceville, Florida, pleaded guilty today to conspiring to defraud the United States.

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

"Ms. Nixon and Mr. Dawson unlawfully manipulated the federal contracting process, a system the public expects to be fair and transparent, and that the Defense Department relies upon to support our men and women in uniform," said Robert Craig, Special Agent in Charge for the DCIS, Mid-Atlantic Field Office.  "The Defense Criminal Investigative Service, its law enforcement partners, and the U.S. Attorney's Office are committed to maintaining the integrity of the contracting process through the identification and investigation of those alleged to have abused it."

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

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

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

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

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

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

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

Sandra Nixon and the government have agreed that if the Court accepts her plea agreement, Nixon will be sentenced to six months in prison followed by three years of supervised release. Kenneth Dawson faces a maximum sentence of five years in prison. Sandra Nixon and Dawson also agree to pay restitution of at least $750,000. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Sandra Nixon on October 2, 2015 at 9:30 a.m. and for Kenneth Dawson on October 30, 2015 at 10:00 a.m.

Mark Nixon, age 54, of Silver Spring, Maryland, pleaded guilty on June 15, 2015 to the conspiracy and to acts affecting a personal financial interest.  Mark Nixon and the government have agreed that if the Court accepts his plea agreement, Nixon will be sentenced to 42 months in prison followed by three years of supervised release.  Mark Nixon also agrees to forfeit and pay restitution of at least $750,000.  Mark Nixon is scheduled to be sentenced on September 18, 2015 at 9:30 a.m.

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

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

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Nathaniel Lightford, a/k/a “Taboo,” age 35, of Windsor Mill, Maryland, today to 135 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin and cocaine, in connection with his supervision of street distributors belonging to a group known as “Coppin Court” which operated in the Cherry Hill section of Baltimore.

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

According to his plea agreement, since at least 2003, Lightford was a main supplier of drugs to the Coppin Court group in the down the hill section of Cherry Hill.  From 2003 to 2005, Lightford supplied a group of Coppin Court members who ran a shop referred to as the “Purple City” with crack cocaine and heroin, and stored his drugs in a stash house located at 800 Bethune Road in Cherry Hill. In 2005, Lightford supplied heroin to a highly successful heroin shop run by members of Coppin Court. And on at least one occasion in 2012 or 2013, Lightford supplied at least one Coppin Court member with crack cocaine and heroin at Lightford’s music studio, which is located in nearby Brooklyn.

On July 5, 2013, in the 900 block of Bethune Road, Lightford stabbed a Coppin Court member in his back with a knife.

Lightford has also supplied the Coppin Court group with firearms, including at least one assault-type weapon. Lightford stored the firearms in locations around the Coppin Court area so that members could access the guns for their protection from a rival gang or from robbery.

Because Lightford supplied both narcotics and firearms to the members of Coppin Court, he was viewed and operated as a supervisor of the street distributors. During his participation in the drug conspiracy Lightford admitted to distributing between three and 10 kilograms of heroin, and between 840 grams and 2.8 kilograms of cocaine base.

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

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Justin Jose Snow, a/k/a “J.O.,” age 22, of Baltimore today to 15 years in prison followed by five years of supervised release for his role in a conspiracy to rob three cell phone stores in which Snow used a firearm.

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; and Chief Gary Gardner of the Howard County Police Department.

According to his plea agreement and court documents, Justin Snow, his brother Johnny Snow, their cousin Taylor Snow and Arkeene Redditt-Abrams planned to steal cash, cell phones and other electronic devices, and then sell the stolen merchandise. Prior to June 17, 2014, the defendants had shoplifted two to three cell phones at a time from stores and sold them, but decided that they could make more money by robbing cell phone stores of larger quantities of cell phones.

On June 17, 2014, the defendants used a car rented by Taylor Snow to travel to an AT&T store on Dual Highway in Hagerstown.  Taylor Snow entered the store to conduct surveillance.  Justin Snow then entered the store brandishing a gun and directed the store employee to get on the floor. Johnny Snow stood near the door and Redditt-Abrams remained in the car parked outside.  When the defendants realized the store had cameras, they fled in the waiting car.

A few hours later the defendants drove to an AT&T store in Ellicott City, Maryland. Redditt-Abrams entered the store to “case” it.  After he left, the Snows entered with Justin Snow again brandishing a gun. They stole cash, cell phones and tablet computers worth more than $18,000.  Surveillance video at an adjoining gas station captured images of Taylor Snow’s car at the gas pumps and while it was parked in front of the AT&T store.  The video showed the defendants leaving the car and entering the store, and a short time later, running from the store and getting back into the car.

After Johnny Snow’s arrest, on June 24, 2014, Justin and Taylor Snow traveled to Mechanicsburg, Pennsylvania, where Justin used a gun to rob a T-Mobile store of cash, cell phones and tablet computers.  Police responding to the scene saw their car and pulled it over.  They noticed that Justin Snow appeared to be changing his clothes while sitting in a passenger seat, and recognized clothing that matched witness descriptions of clothing worn by the robbers.  At this point, Taylor Snow, who was driving, pulled away and a high speed chase reaching speeds of up to 100 mph ensued.  As the robbers’ car approached an exit of Route I-81, it abruptly pulled over.  Justin and Taylor Snow were arrested.  A search warrant was executed for the car and police seized 28 unopened boxes each containing a cellphone stolen from the store.

Johnny Devon Snow, age 20; Taylor Yvonne Snow, age 23; and Arkeene Antoyn Redditt-Abrams, a/k/a “Duke,” age 26, all of Baltimore, previously pleaded guilty to their roles in the robberies.  Johnny Snow was sentenced on June 4, 2015 to 150 months in prison. Taylor Snow was sentenced to nine years in prison.  Redditt-Abrams is scheduled to be sentenced on August 15, 2015.

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

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Kamran Ashfaq Malik, age 35, of Upper Marlboro, Maryland today to two years in prison, followed by five years of supervised release, for unlawfully exporting semi-automatic rifles, parts and accessories to Pakistan.

The sentence 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 (HSI).    

Malik owned and operated a pizza shop in Upper Marlboro, and maintained a second residence in Lahore, Pakistan. Co-defendant Waleeb Aftab worked at the pizza shop. According to Malik’s plea agreement, between September and October 2012, Malik purchased, or caused to be purchased, approximately 48 AR-15 100 round dual drum magazines from various firearms and related accessories dealers.  In order to take advantage of the lack of magazine capacity restrictions in Virginia, some of the purchases were made by Malik under the name, Virginia address and bank account of an associate.  In other instances Malik provided a false commercial shipping address in Springfield, Virginia.

Between October and November 2012, Malik shipped or caused Aftab and others to ship, several illegal shipments of firearms and firearms parts and accessories to Lahore, Pakistan.  In order to conceal the unlawful export of defense items, which are controlled for export, Malik placed false return addresses and names on the packages, as well as falsely identified the contents of the packages, and falsely declared the contents to be of nominal value. Malik directed Aftab to do the same.

On November 28, 2012, during a routine airport security screening in Dubai, United Arab Emirates, one of the packages was found to contain firearm parts and accessories that are prohibited from export to Pakistan without an export license, including: two lower receivers of a semi-automatic rifle, two rifle bolt carriers, rounds of magazines, an optical gun sight and an LED rail mounted flashlight with laser. The defendants never obtained the required licenses to export such items.

On March 7, 2013, after arriving at JFK Airport from Pakistan, Malik’s cell phone and laptop computer were subjected to a border search.  Malik’s cell phone contained pictures of AR-15 style semi-automatic rifles and magazines, in some cases in the hands of individuals.  The pictures were taken at locations near his residences in Pakistan and Maryland. A text message was also found on Malik’s phone that referenced the tracking number of the shipment detained in Dubai.

On March 6, 2014, Malik dropped off a package for shipment to Pakistan. Malik provided a false address and falsely identified the contents as “screw holders and metal screws.” Immigration and Customs Enforcement agents intercepted the package, which was found to contain 28 .223 caliber bolt carriers. Those items are regulated for export. Malik never sought nor obtained a valid export license for those items.

Malik received numerous export warnings regarding the export restrictions on firearms and related accessories.  A notice of these export restrictions were contained on the firearms transaction records for various weapons purchased by Malik between 2012 and 2013, including the purchase of the Colt M-4 whose lower receiver was confiscated in Dubai.  In addition, the shipping invoice receipts for the various shipments to Pakistan completed by Malik, or Aftab acting at his direction, contained an export notice and signature block for the shipper certifying that the identifying information for the package was accurate and that it was being shipped in accordance with U.S. export regulations.

Co-defendant Waleed Aftab, age 23, also of Upper Marlboro, pleaded guilty to the same charge and was sentenced to time served of one year.

United States Attorney Rod J. Rosenstein praised Baltimore HSI for their work in the investigation and thanked Assistant United States Attorney Christine Manuelian, who prosecuted the case.

Greenbelt, Maryland – Norman D. West, age 48, of Hyattsville, Maryland and Washington, D.C. pleaded guilty today to conspiracy to commit theft of public money in connection with a fraudulent tax refund scheme.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Jeffrey S. DeWitt, Chief Financial Officer of the Washington, D.C. Office of Tax and Revenue, Criminal Investigation Division; and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.

According to West’s plea agreement, West is a musician and operated a putative tax preparation business known as “Flash Cash Financial,” or “Flash Cash,” which had a purported business address in Baltimore, Maryland. 

West and his co-conspirators obtained the personal information of “recruits” which West used to file false tax returns in order to generate a fraudulent refund.  West initially marketed his scheme using flyers placed in low income areas and the relied upon word of mouth.  West paid a co-conspirator a $100 referral fee per recruit. West and his co-conspirators obtained the identities of at least 197 individuals. Using the personal information of those individuals, West made up the rest of the tax returns in order to generate refunds. West listed false wages, falsely claimed educational tax credits, and falsely claimed earned income tax credit.

West filed 197 federal tax returns that claimed $391,553 in fraudulent tax refunds, all of which was issued by the IRS.  In addition, West filed 28 fraudulent returns with the District of Columbia, which generated an additional $16,668.30 in fraudulent refunds.  All of the refunds were deposited in bank accounts opened by West in the name of Flash Cash.  West paid the recruits a small portion of the fraudulent refunds, usually about $500, and kept the rest for himself and his co-conspirators.

The total tax loss is $408,221.30, which is the amount West is required to pay in restitution as part of his plea agreement.  West faces a maximum sentence of five year in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 21, 2015 at 1:00 p.m.

United States Attorney Rod J. Rosenstein commended the IRS-CI, the Washington, D.C. Office of Tax and Revenue, Criminal Investigation Division, and the Department of Treasury Office of Inspector General for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Eric Maurice Clanton, age 35, of Edgewood, Maryland today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.

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; Harford County Sheriff Jeffrey R. Gahler; Chief Henry Trabert of the Aberdeen Police Department; Bel Air Police Interim Chief Jack Meckley; Chief Teresa Walter of the Havre de Grace Police Department; and Harford County State’s Attorney Joseph I. Cassilly.

According to his plea agreement, as part of an investigation into cocaine trafficking, the Harford County Narcotics Task Force intercepted cellular telephone calls and text messages from members of a drug trafficking organization operating in Harford County.  Based on the intercepted calls and texts, Eric Clanton was identified as a member of the organization.

For example on August 26, 2014, investigators intercepted a series of text messages between Clanton and a co-conspirator in which they discussed Clanton and a courier traveling to Philadelphia, Pennsylvania, to obtain cocaine.  Clanton also discussed which source of supply to use.  On September 27, 2014, Clanton and a courier traveled to Philadelphia to meet with a cocaine source of supply.  An intercepted conversation between the source and Clanton revealed that Clanton had paid the source $63,410, but owed the source another $190.  Based on Clanton’s conversation with the source, law enforcement believes Clanton purchased approximately two kilograms of cocaine, since the cost of a kilogram of cocaine at that time was $30,000 to $35,000.

On October 6, 2014, Clanton and a courier again traveled to Philadelphia to meet the same source of supply.  The vehicle operated by Clanton was stopped on its return to Maryland.  A search of the vehicle recovered approximately 1.25 kilograms of cocaine.

Clanton admits that he made numerous trips to Philadelphia to obtain cocaine, which was then transported to Harford, Cecil and Baltimore Counties, where Clanton and other members of the conspiracy redistributed the drugs.  During his participation in the conspiracy, Clanton was responsible for the distribution of at least five kilograms of cocaine.

United States Attorney Rod J. Rosenstein praised HSI Baltimore and Harford County Narcotics Task Force, comprised of members of the Harford County Sheriff's Office, Maryland State Police, Aberdeen Police Department, Bel Air Police Department, Havre de Grace Police Department and the Harford County States Attorney’s Office.  Mr. Rosenstein thanked Assistant U.S. Attorney Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland –Peter Flynn, age 61, of Silver Spring, Maryland pleaded guilty today to possessing child pornography.

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

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

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

Flynn and the government have agreed that if the Court accepts the plea agreement Flynn will be sentenced to between 24 and 78 months in prison.  U.S. District Judge George Jarrod Hazel has scheduled sentencing for October 19, 2015 at 10:00 a.m.

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

United States Attorney Rod J. Rosenstein commended the Maryland State Police Internet Crimes Against Children Task Force and HSI Baltimore for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Conor M. Mulroe of the U.S. Department of Justice, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Cornelius Westly Jennings, Jr., age 27, of Washington, D.C., today to 111 months in prison, followed by five years of supervised release, for a conspiracy to rob two businesses and for using a firearm during a crime of violence.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Michael E. Scott of the Mount Rainier Police Department; and Maryland Attorney General Brian E. Frosh.

According to Jennings’ plea agreement, on May 31 and September 19, 2012, Jennings and his co-conspirators committed three robberies of fast food restaurants.   Jennings’ role in the conspiracy included driving his co-conspirators to the robbery site, conducting surveillance of the businesses prior to the robberies, planning the robberies with his co-conspirators, knowing that at least one co-conspirator would be armed with a gun, entering the businesses and participating in the robberies, and receiving a portion of the proceeds of the robberies.

Specifically, on May 31, 2012, Jennings, Anthony Akrah Morris, and Tiffany Edmundson, robbed a fast food restaurant located in the 15000 block of Old Columbia Pike in Burtonsville, Maryland.  The robbers wore masks and Jennings was armed with a handgun, which was brandished at employees in the store.  The co-conspirators forced employees to open the restaurant’s safe and stole $1,400 from the safe.  The robbers fled in a vehicle being driving by another co-conspirator who was acting as a lookout. Co-conspirator Chavez Tyrone Smith was also in the vehicle

On September 19, 2012, Jennings drove Morris and another co-conspirator to the same fast food restaurant in Burtonsville that he robbed on May 31, 2012.  Morris and the other co-conspirator, both armed with guns, entered to restaurant and brandished the guns at individuals inside the restaurant.  The co-conspirators forced employees to open the safe and stole $657 in cash, then fled to the vehicle in which Jennings was waiting.  Jennings then drove to another fast food restaurant in the 4000 block of Powder Mill Road in Beltsville, where Morris and the co-conspirator again robbed the restaurant, brandishing their firearms at persons in the restaurant.  Morris and the co-conspirator took $105 from the restaurant cash registers.  After forcing employees to open the safe, Morris and the co-conspirator stole another $900 from the safe.  The co-conspirators again ran to the car where Jennings was waiting and Jennings drove away.

Jennings admitted that he received a portion of the money stolen in the three robberies.

Anthony Akrah Morris, age 25, of Burtonsville, Maryland, was convicted after trial and sentenced to 505 months in prison for conspiring to commit robbery, two counts of robbery and two counts of brandishing a firearm during a robbery.  Chavez Tyrone Smith, age 36, of Washington, D.C., previously pleaded guilty to conspiracy to rob two businesses and to using a firearm during a crime of violence and was sentenced to 16 years in prison.  Tiffany Edmundson, age 26, of Greenbelt, Maryland, has pleaded guilty to her role in the conspiracy and is scheduled to be sentenced on September 15, 2015, at 1:00 p.m.

United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department, Montgomery County Police Department, Mount Rainier Police Department and the Maryland Attorney General’s Office for their work in the investigation.  Mr. Rosenstein praised the Prince George’s County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance and coordination. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.

Baltimore, Maryland – Jonathan Mickle, age 43, of Asheville, North Carolina, formerly of Taneytown, Maryland, pleaded guilty late yesterday to conspiracy to commit wire fraud, and to tax fraud, in connection with schemes to defraud the United States by illegally obtaining millions of dollars in federal contracts, and to defraud the employees of two Maryland corporations of their health and welfare benefits.

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

According to his plea agreement, from 2004 through 2012, Mickle worked for Quantell, Inc. and Intaset Technologies Corporation, headquartered in Carroll County, Maryland, but with offices in Garrett County, Maryland and elsewhere.  Quantell and Intaset provided labor services, including environmental science, engineering and information technology services, to federal and state agencies and the private sector.  Shaun Tucker, and his wife, Joanne Tucker, were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation.

Federal Procurement Fraud

During the course of Mickle’s employment, Quantell and Intaset obtained federal contracts and task orders.  Mickle’s responsibilities included task order proposals and during the time period August 2004 to July 2005, Mickle worked as the Chief Operating Officer of Quantell.  According to the plea agreement from at least 2005 to 2010, there were misrepresentations made by Quantell and Intaset, including that they were separate companies, in order for the companies to bid on federal government set-aside contracts designed to benefit small businesses.  If the companies had been treated as affiliated companies for contracting purposes, they would not have been eligible for the millions of dollars of small business contracts they obtained, including a 2011 multi-million dollar contract for work to be performed by Quantell at Camp Lejeune in North Carolina.  Mickle assisted in Quantell and Intaset bidding on, and securing, government contracts, even though he knew that the information put in those bids was false.  For example, by 2008 Mickle learned that the companies self-certified false information when bidding on government contracts, including false information about past revenue, the number of employees, the size and headquarters of the bidding company and the management and ownership of the bidding company.  Despite this knowledge, Mickle continued to work on the preparation of government contract bids.  As a result, Quantell and Intaset fraudulently obtained government contracts worth more than $10 million.

Employee Benefit Fraud

Many of the Quantell and Intaset contracts with the federal government were only available to companies that certified that they would use a portion of the money paid on the contract to provide bona fide health and welfare benefits to their employees pursuant to the McNamara-O’Hara Service Contract Act (SCA).  As a result, the service contract employees across the country that were hired by Quantell and Intaset were covered by the SCA.  From 2005 to 2008, SCA money paid to Quantell and Intaset under federal contracts was deposited into qualified employee health and welfare plans subject to the Employee Retirement Income Security Act (ERISA).  At this time, the ERISA plans had a third party administrator and trustees who were not associated with the Tuckers, Quantell, and Intaset.

According to Mickle’s plea agreement, beginning in 2008 the SCA funds were no longer contributed to the ERISA plans.  Instead, Mickle and his co-conspirators created various entities with no legitimate business purpose (the shell companies), that were used to divert the SCA funds for use by members of the conspiracy, including Mickle, instead of using the money for the benefit of the Quantell and Intaset employees.  Mickle and other co-conspirators made false statements that the shell companies were providing bona-fide health benefits and falsely representing that the employees were receiving all of the benefits to which they were entitled. The members of the conspiracy also created fake documents to support the financial transactions involving the SCA funds, including fake invoices. The conspirators had meetings to divide up the SCA funds on a periodic basis among themselves.

Mickle admitted that from 2007 through 2010, the conspirators illegally diverted at least $675,000 of employee benefit money for their personal use, victimizing more than 190 employees. Mickle personally obtained more than $100,000 from October 2008 to February 2010.  According to Mickle’s plea agreement, during the entire period of the conspiracy, including after Mickle left Quantell and Intaset, the members diverted approximately $1.6 million of employee benefit money for their personal benefit, causing harm to more than 250 victim employees.

Tax Fraud

Finally, Mickle acknowledged that he submitted a false joint tax return for the 2011 tax year, in which he reported that his taxable income was zero, and the amount of tax due was $830.  In fact, Mickle’s taxable income was $30,753, and the tax owed was $11,957.

Mickle faces a maximum sentence of 20 years in prison and a $250,000 fine or twice the gain or loss for the wire fraud conspiracy, and a maximum of three years in prison and a $100,000 fine for tax fraud.  U.S. District Judge J. Frederick Motz has scheduled sentencing for November 3, 2015, at 2:15 p.m.

Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” and his wife, Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” both age 49, of Keymar, Maryland, were previously charged for their roles in the scheme and are scheduled to go to trial in September, 2015.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

United States Attorney Rod J. Rosenstein commended the U.S. 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.

Baltimore, Maryland –Jasper Buck, age 59, formerly of Westminster, Maryland and elsewhere including Sanford and Lake Mary, Florida, pleaded guilty today to mail fraud arising from an investment fraud scheme in which Buck stole more than $1.96 million from clients.

The guilty plea 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 his plea agreement, Buck worked for mortgage companies, but held himself out to investors as an experienced investment advisor.  Buck admitted that from October 2006 through at least December 2014, he told his victims that he was a representative of Portfolio Financial Group (PFG).  Buck told the victims that PFG would loan money provided by the victims to borrowers who needed funds quickly or were unable to obtain traditional bank loans and were therefore willing to pay a higher interest rate on the loans.  In fact, there were no such borrowers, and Buck used the victims’ money for his own personal use or to further his fraud scheme.                      

Buck told his victims that there were other owners and employees of PFG.  However, bank accounts for PFG listed Buck as a signatory, and PFG’s addresses were listed as either Buck’s personal residence or shipping and packaging stores such as UPS.

Buck convinced some victims to invest all or a portion of their retirement savings often through loans taken out of the victims IRA or 401(k), or to refinance their home mortgages and use lines of credit, in order to invest the proceeds with Buck through PFG.  Buck promised the victims that they would receive a monthly return on their investments greater than the victims’ monthly loan payments.  In addition, he convinced some victims to move their retirement savings into an account with a self-directed IRA custodian for the purpose of then having those funds transferred to him.  Rather than investing the money turned over to him, Buck used some of the money on himself, as well as to pay other victims in order to convince those victims that their investments were earning the promised returns.

To conceal the scheme, Buck issued payments to some victims, using funds received from other victims, to convince them that their investments were earning the expected returns.  Buck made telephone calls and sent text messages and emails to victims making false statements regarding purported investments, to lull the victims into believing that their loan principal was safe and that their purported investments were sound.

Beginning in January 2014 when Buck had exhausted all of the victims’ funds in his PFG account and could no longer make any payments to the victims, he falsely represented that: there was no issue with PFG financially; PFG was updating software, or was slowed by new federal regulations, or was being sold to another company and no assets could be released until the sale was complete; victim money was in PFG’s possession, but Buck could not physically access it; or that Buck was pursuing legal action against PFG.

As a result of the scheme, Buck obtained at least $1,961,364 from the victims, which is the amount Buck is required to forfeit as part of his plea agreement.

Buck and the government have agreed that if the Court accepts the plea agreement Buck will be sentenced to 63 months in prison. U.S. District Judge George L. Russell III has scheduled sentencing for October 2, 2015.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

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

The Justice Department signed a settlement agreement today with Camp Bravo, a day camp that operates in Towson, Maryland, just outside Baltimore.  The settlement resolves allegations that Camp Bravo violated a child’s civil rights by denying her admission to the camp because she has epilepsy, in violation of the Americans with Disabilities Act (ADA).  Because the child would need emergency medication administered if she were to have a prolonged or acute repetitive seizure, Camp Bravo denied her admission.  Though the medication, Diastat, is designed to be administered by trained laypersons and could save the child’s life, Camp Bravo would not permit non-medical staff to administer the medication and later refused to permit the camp nurse to accompany the child on field trips or bus rides.  As a result, the child was not able to attend Camp Bravo for two consecutive summers.

Title III of the ADA prohibits discrimination on the basis of disability by private camps and child care programs.  Under the ADA, such entities must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability, unless a modification would fundamentally alter the nature of the goods and services.  It generally will be a reasonable modification required by title III of the ADA for certain public accommodations, such as camps and child care programs, to train laypersons to administer Diastat.

“Equal access to camps and child care programs is essential to children and parents across the country,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “These programs allow children with disabilities to learn and play with their peers and develop important social skills.  The Civil Rights Division will not allow the exclusion of children with seizure disorders where life-saving medication can be safely administered by trained laypersons.”

“Federal law prohibits businesses from discriminating against children with disabilities,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland.

Under the agreement, Camp Bravo will admit the child for all future camp sessions of the child’s choosing, as long as she is of eligible age, and will pay $8,000 to the family to compensate them for Camp Bravo’s failure to admit the child when she previously applied.  In addition, Camp Bravo will train its staff on the ADA and, if a child with epilepsy is enrolled in the camp, on epilepsy and seizures.  The camp will also adopt and enforce a nondiscrimination policy, as well as an emergency anti-seizure medication administration policy and procedure.  The department will monitor Camp Bravo’s compliance with the agreement for three years.

ADA enforcement is a top priority of the Justice Department’s Civil Rights Division.  Those interested in finding out more about this settlement or the obligations of camps and child care programs under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov.  ADA complaints may be filed online at http://www.ada.gov/complaint/.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced inmate Joseph Young, a/k/a Monster, age 33, of Baltimore, today to 15 years 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. Young 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.

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.

Evidence presented at trial showed that Young was a high-ranking BGF member and a rival of Tavon White within BGF while he was incarcerated at BCDC beginning in early 2012. Young was expected to replace Tavon White as BGF’s leader inside the jail. In October and November 2012, Young sold marijuana, prescription pills, cell phones and tobacco that correctional officers smuggled into the jail. Young directed another inmate, Cyrus Beads, to buy marijuana at $350 an ounce and package it in one-gram bags, which he would sell for $50 inside BCDC.  Young explained that they would make a $1,050 profit from each ounce.  Young had a romantic relationship with Raylanair Reese, who lived outside the jail and supplied Young with cell phones and Percocet pills. Evidence at trial also showed that Correctional Officer Kimberly Dennis was a major smuggler of contraband for Young.

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.

BGF leader Tavon White, age 37, previously pleaded guilty to his participation in the racketeering conspiracy and testified at the trial and was sentenced to 12 years in prison.  Inmate Russell Carrington, a/k/ Rutt, age 34, of Baltimore, also a leader in the BGF gang, was convicted after trial and sentenced to 210 months in prison.

To date, 21 of the correctional officers have been sentenced to up to 42 months in prison.  Outside supplier Raylanair Reese, age 33, and Correctional Officer Kimberly Dennis, age 27, both of Baltimore, pleaded guilty to their roles in the conspiracy and were sentenced to 34 months and two 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.

Baltimore, Maryland – Education Affiliates (“EA”), a for-profit education company based in White Marsh, Maryland, has agreed to pay $13,000,000 to the United States to resolve allegations that it violated the False Claims Act by submitting false claims to the Department of Education for federal student aid for students enrolled in its programs.

The settlement agreement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein; Principal Deputy Assistant Attorney General Benjamin Mizer of the U.S. Department of Justice Civil Division; U.S. Under Secretary of Education Ted Mitchell; and Inspector General Kathleen Tighe of the U.S. Department of Education Office of Inspector General; United States Attorney for the Southern District of Texas Kenneth Magidson; United States Attorney for the Northern District of Alabama Joyce White Vance; United States Attorney for the Southern District of Ohio Carter M. Stewart; and United States Attorney for the Middle District of Tennessee David Rivera.

“Students who apply for federal financial aid to attend trade and professional schools are required to show that they have the necessary skills to complete the educational program and work in the field,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland.  “This settlement resolves the government's allegations that Education Affiliates defrauded the government by changing students' test scores and enrolling students with invalid diploma mill high school 'diplomas' ordered online.”

“Today’s settlement is an excellent example of cooperation among multiple offices of the federal government to achieve a result that protects federal student aid funding and the interests of individual students,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “Schools have an obligation to live up to their commitment to the government and their students when they accept federal student aid funds.”          

EA provides post-secondary education training programs in a variety of healthcare and trade professions.  EA operates 50 campuses in the states of Maryland, Florida, Texas, Alabama and Ohio under various trade names, including All State Career, Fortis Institute, Fortis College, Tri-State Business Institute Inc., Technical Career Institute Inc., Capps College Inc., Driveco CDL Learning Center, Denver School of Nursing and Saint Paul’s School of Nursing, which provide post-secondary education training programs in several professions in the states of Alabama, Florida, Maryland, Ohio and Texas.   

The government alleged that employees at EA’s All State Career campus in Baltimore altered admissions test results so as to admit unqualified students, created false or fraudulent high school diplomas, and falsified students’ federal aid applications, and that multiple EA schools referred prospective students to “diploma mills” to obtain invalid online high school diplomas.  These allegations also led to criminal convictions of two All State Careers admission representatives, Barry Sugarman and Jesse Moore, and a test proctor, Jacqueline Caldwell.   

“The various cases that were settled here include numerous allegations of predatory conduct that victimized students and bilked taxpayers,” said Under Secretary Ted Mitchell of the U.S. Department of Education.  “In particular, the settlement provides for repayment of $1.9 million in liabilities ordered by Secretary of Education Arne Duncan that resulted from EA awarding federal financial aid to students at its Fortis-Miami campus based on invalid high school credentials issued by a diploma mill.  Secretary Duncan made clear that such abusive behavior would not be tolerated, and we will continue to work with the Justice Department and other federal agencies to ensure that postsecondary institutions face consequences when they violate the law.”

The settlement agreement also resolves allegations related to EA schools in Birmingham, Alabama, Houston and Cincinnati, including violations of the ban on incentive compensation for enrollment personnel, misrepresentations of graduation and job placement rates, alteration of attendance records and enrollment of unqualified students.

“Using fake high school diplomas is a particularly insidious abuse of the federal student aid system,” said Inspector General Kathleen Tighe of the U.S. Department of Education Office of Inspector General.  “Students received only a worthless piece of paper.” Tighe commended the efforts of Office of Inspector General staff and Department of Justice attorneys whose outstanding investigative work led to this significant settlement.

The settlement resolves five lawsuits filed under the whistleblower provisions of the False Claims Act, which permit private citizens to sue on behalf of the United States and share in the recovery.  As part of this resolution, the five whistleblowers will receive payments totaling approximately $1.8 million.   

The settlements were the result of an investigation by the U.S. Attorney’s Office for the District of Maryland, the Justice Department’s Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Offices for the Southern District of Texas, Northern District of Alabama, Southern District of Ohio, and Middle District of Tennessee, the Department of Education and its Office of Inspector General, and the Federal Bureau of Investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Thomas F. Corcoran and Rebecca Koch who handled the Maryland cases.

The cases are captioned United States ex rel. Roman v. All State Career, Inc. and Education Affiliates, Inc., Civil Case No. JKB-10-1730 (D.Md.); United States ex rel. Thomas v. Education Affiliates, Inc., Civil Case No. JKB-14-332 (D.Md.); United States ex rel. Andrews v. Education Affiliates, Inc., et al., Civil Case No. H-13-2366 (S.D. Tex.); United States ex rel. Atkins, et al. v. Fortis Institute and Education Affiliates, LLC, Civil Case No. CV-14-1107-S (N.D. Ala.); and United States ex rel. McArthur, Gruff & Associates LLC v. Education Affiliates, Inc., Civil Case No. 1:14-CV-977 (S.D. Oh.).  The False Claims Act claims resolved by the settlement are allegations only and there has been no determination of liability.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Thomas Linwood Jones, age 45, of Baltimore, Maryland today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and cocaine.

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 Commissioner Anthony W. Batts of the Baltimore Police Department.

According to his plea agreement, DEA agents conducted an investigation of Jones’ drug distribution operation in 2013 and 2014.  From at least November 2013, Jones admitted that he conspired to distribute heroin and cocaine.  On January 14, 2014, law enforcement executed search warrants at locations associated with Jones, including a storage unit in Milford Mill, Maryland, Jones’ residence, a house used by Jones in Lochearn, Maryland, and Jones’ pick-up truck.  Law enforcement recovered $652,000 in cash, approximately 2.5 kilograms of heroin, approximately 5.5 kilograms of cocaine, a hydraulic kilogram press, cutting agent and digital scales.

During the course of the conspiracy, Jones admitted that he was responsible for the distribution of at least one kilogram of heroin and at least five kilograms of cocaine.

United States Attorney Rod J. Rosenstein praised the DEA and Baltimore Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Seema Mittal, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Antoine Wiggins, age 39, of Baltimore, to 126 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin. Judge Hollander also ordered Wiggins to forfeit a total of $141,901 in cash, a Rolex watch, diamond necklace, a boat and a vehicle, seized during the investigation.

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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.

According to court documents and information presented at his plea hearing, as part of an investigation into a drug trafficking organization that operated primarily in Baltimore City and Baltimore County, Wiggins was intercepted in telephone calls and other recordings arranging heroin transactions, and was also captured on surveillance video. Wiggins leased an apartment in the 1600 block of Whetstone Way in Baltimore, which was used by the organization as a transit point for couriers who were transporting heroin.  Law enforcement executed search warrants at Wiggins’ residence, as well as the Whetstone Way apartment, and recovered more than $132,000 in cash, heroin, money counters and other items.

Over the course of the conspiracy Wiggins was responsible for the distribution of between one and three kilograms of heroin.

A total of 12 defendants, including Wiggins, Anthony Miles, a/k/a “Bigs,” and “Fat Boy,” age 31, Enzo Blanks, a/k/a “Zo,” age 30, and Marlow Bates, a/k/a “Low,” age 33, all from Baltimore, have been convicted for the heroin distribution conspiracy.  Miles, Blanks and Bates were also sentenced to 10 years in prison for their roles in the conspiracy.

United States Attorney Rod J. Rosenstein praised the FBI, Baltimore Police Department and Baltimore County Police Department for their work in the investigation and thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland - Chief U.S. District Judge Catherine C. Blake sentenced Barry Stephen Robinson, age 65, of Accokeek, Maryland, today to a year and a day in prison, followed by three years of supervised release, in connection with a bribery scheme perpetrated in 2014 while Robinson was Chief of the Division of Transit and Marine Services of the Baltimore City Department of Transportation.  Chief Judge Blake also ordered Robinson to pay forfeiture in the amount of $20,000, of which all but $13,550 had already been seized.

The sentence was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City Inspector General Robert H. Pearre, Jr.; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.        

“Barry Stephen Robinson took a $20,000 bribe to cancel a $60,000 debt owed to Baltimore City, and a $70,000 bribe to allow the theft of city property worth $250,000,” said U.S. Attorney Rod J. Rosenstein. “This sort of corruption can occur when dishonest people are trusted to handle valuable government property.”

“Using his official position and the resources of Baltimore City, Robinson abused the trust placed in him in order to personally enrich himself,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.  “IRS-Criminal Investigation stands committed to weed out individuals, such as Robinson, who take the path to financial enhancement through greed and corruption at the expense of those they serve.”

Barry Robinson was Chief of the Division of Transit and Marine Services of the Baltimore City Department of Transportation and supervised Baltimore City’s “Circulator” and “Water Taxi” programs.  He had authority to approve contracts with advertisers and vendors and to purchase and pay for goods and services.

In the spring of 2013, Robinson received a check for $40,000 payable to the Baltimore City Director of Finance, in payment for advertising on Circulator buses.  Robinson returned the check and proposed that for $20,000 in cash, he would cancel the $40,000 debt to the city and provide written documentation that it had been paid.  The debtor declined the offer at that time.  In January 2014, Robinson renewed his offer to extinguish the debt to the City of Baltimore.  This time, he offered to cancel $60,000 of debt in return for $20,000 in cash.  From January 23 to March 11, 2014, Robinson received four cash payments of $5,000 each.  In return, Robinson provided a signed letter on Baltimore City letterhead falsely stating that the $60,000 debt had been paid.

Robinson also admitted that he stole and sold bus shelters belonging to the City for $70,000.  In 2011, Robinson arranged for Baltimore City to purchase 13 bus shelters from a Canadian company for $249,290.  On multiple occasions from May 2013 to March 2014, Robinson said since the city did not keep track of the shelters, he planned to sell them for his personal benefit.  On April 9, 2014, Robinson accepted $70,000, in return for the city’s bus shelters.

Seeking to disguise the source of the bribery proceeds, Robinson deposited the cash bribe payments he received into two bank accounts in the name of another person, and used a portion of the proceeds to install carpeting, televisions and a range hood in his home.

According to court documents, the intended loss to the City of Baltimore from Robinson’s schemes was approximately $310,000.

U.S. Attorney Rod J. Rosenstein praised the FBI, the Baltimore City Office of Inspector General and IRS-Criminal Investigation, for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Barbara S. Sale, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Deborah K. Chasanow sentenced Tonnie Deonte Floyd, age 23, of Washington, D.C., today to 222 months in prison followed by 5 years of supervised release for robbery, discharging a gun during the robbery and carjacking, in connection with an armored car robbery and a carjacking in which a victim was shot in the head and arm.

The sentenced was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge 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; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and by Chief Alan Goldberg of the Takoma Park Police Department.

According to his plea agreement and court documents, on October 26, 2012, Floyd, Anthony Cannon, and Marcellus Freeman, driving a stolen Jeep, followed a Garda Cash Logistics armored transport vehicle to the Cricket store located in the 1300 block of University Boulevard East, Takoma Park, Maryland. A Garda employee went into the store and picked up a bag containing $3,911.  As the employee returned to the armored truck, he was confronted by two co-conspirators with guns. The Garda employee dropped the money bag and at least one co-conspirator fired a gun at the employee. The employee shot back. One of the co-conspirators picked up the money bag.  The co-conspirators ran back to the stolen Jeep. As the co-conspirators drove away, the employee continued to fire his handgun at the Jeep, striking a tire and the back window. Floyd was wounded in the shoulder during the gunfire.

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

Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 24, also of Washington, D.C., previously pleaded guilty to robbery, discharging a gun during the robbery and carjacking.  Freeman and the government have agreed that if the Court accepts his plea agreement, Freeman will be sentenced to between 241 months and 30 years in prison at his sentencing on July 27, 2015 at 10:00 a.m.

A federal jury convicted Anthony Terrell Cannon, age 26, of Washington, D.C., on September 12, 2014 of conspiracy, robbery, carjacking, two counts of discharging a gun during a crime of violence and interstate transportation of a stolen vehicle. Cannon awaits sentencing.

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

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Anthony Preston, a/k/a “40,” or “Tone,” age 29, of Laurel, in Howard County Maryland, today to 19 years in prison, followed by five years of supervised release, for conspiring to participate in a racketeering conspiracy, and using and carrying a firearm during and in relation to a crime of violence, in connection with his membership in the Bloods gang operating primarily out of Howard County, Maryland.

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; Howard County Police Chief Gary L. Gardner; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.

According to his plea agreement, Preston was a member of the Bloods since at least 2007. Preston is a leader of the “Swann” set, a sub-group of the Bloods.  Preston achieved the rank of “O.Y.G” or “O.G.,” (Original Young Gangster or Original Gangster), terms used for a leader in the gang with authority over other Bloods members.

Preston and his co-defendants were identified as members of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department.  The investigation included four court ordered wiretaps on gang members’ cell phones. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.

The investigation began with an assault and robbery of an ATF confidential informant in Columbia, Maryland, on November 8, 2011.  The ATF was planning a controlled purchase of firearms from co-defendant and fellow gang member Michael Johnson, a/k/a “Ace,” a/k/a “Bloody Mike” after Johnson provided via text two photos of firearms, an assault rifle and a handgun, available for purchase by the CI.  Instead, Johnson directed other gang members to rob the CI.  Investigation revealed that Preston had been in contact with Johnson on the day of the robbery and was photographed holding the same rifle pictured in the texts sent to the ATF CI.

Among his criminal activities as a gang member, Preston admitted that he: attended gang meetings, supported incarcerated gang members, participated in discussion regarding gang sanctions, and planned and executed retaliation against others who he felt undermined his authority within the gang.  Preston also planned, participated and approved of acts of violence, and was a leader in drug trafficking to and with fellow gang members.  Preston, and his Bloods associates, regularly carried firearms in connection with and in furtherance of their unlawful acts.  Preston admitted to directing or participating in at least 4 assaults, including a March 18, 2012, assault over a drug debt during which Preston threatened to later return and “shoot up the place,” a February 21, 2013, attempted assault of an individual causing problems with members and associates of Preston’s set, an April 12, 2013, attempted assault of someone Preston described as a “fake Blood,” and an April 20, 2013, assault of a former gang member with a knife and mace in a convenience store.  The convenience store assault was captured on video, and Preston is seen hitting the girlfriend of the gang member in her face and attempting to spray her with mace.  Citizens, including a young child, were injured by the mace sprayed by Preston during the assault.  Preston was later overheard by law enforcement admitting to the assault and stating that if he’d had his gun with him Preston would have killed the man.

Preston also admitted that he began selling drugs, including crack cocaine and oxycodone, as early as 2007.  Between February and May 2013, Preston was intercepted on numerous wiretap calls with other co-defendants discussing narcotics sales. Two co-defendants each supplied Preston with at least 9000 mg of Oxycodone.

On May 8, 2013, law enforcement executed multiple search warrants and arrested approximately 20 individuals connected with the Bloods gang, including Preston.  A search warrant executed at Preston’s residence recovered, among other things, a .22 caliber revolver, with one live round of ammunition, brass knuckles, various prescription pills, marijuana, $1,222 in cash, and several cellular telephones.  Preston has prior convictions for armed robbery and attempted armed robbery, and, as a result, was prohibited from possessing a firearm.

To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Judge Russell has also sentenced co-defendants: Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, to 18 years in prison; Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland to 205 months in prison; Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, to 193 months in prison; Rouchell Chesson, a/k/a “Black,” age 31, of Washington, D.C., to 10 years in prison; Christopher Lloyd McGann, a/k/a “Toker,” age 23, of Columbia, Maryland, to eight years in prison; Ryan Gladden, a/k/a "Fats," age 27, of Wilkes Barre, Pennsylvania, was sentenced on January 7, 2015, to 92 months in prison; and David Jerome Robertson, age 23, of Columbia, Maryland to 81 months in prison.

Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Ajibola Erogbogbo, age 19, of Laurel, Maryland, today to 97 months in prison, followed by three years of supervised release, for robbery.                 

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 Richard McLaughlin of the Laurel Police Department; Anne Arundel County State’s Attorney Wes Adams; 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, Erogbogbo was a security guard at Six Flags amusement park in Largo, Maryland, and a student at Anne Arundel Community College.

On January 9, 2014, a prostitute posted an ad for sex on the internet and Erogbogbo arranged a “date” at a hotel in Linthicum Heights, Maryland.  Erogbogbo arrived wearing a vest that read “POLICE,” and had a metallic badge in one hand and a gun in the other. He told the prostitute that she was under arrest and instructed her to write her name and personal information on a yellow notepad he brought with him.  Erogbogbo then handcuffed the woman, took her driver’s license and asked about her involvement in prostitution. Erogbogbo removed the handcuffs and demanded money.  The woman responded that she did not have any cash. While Erogbogbo searched her belongings and the hotel room, the woman secretly sent a text message to another prostitute working in the same hotel, who knocked on the hotel door.

Erogbogbo answered the door, took out his gun and pointed it at the second prostitute.  He handcuffed both women.  When he couldn’t find any money, Erogbogbo ordered the second prostitute to write down her phone number and leave the hotel, leaving the initial prostitute with him.

Erogbogbo took the prostitute out to the side entrance of the hotel, telling her that she was going to jail.  As they headed towards his parked vehicle, the prostitute broke free and ran back to the front desk yelling for help.  The front desk attendant called 911.  Erogbogbo fled in his vehicle. Anne Arundel County Police responded and recovered surveillance video footage from the hotel showing Erogbogbo arriving at the hotel, entering the lobby wearing a vest and attempting to take the prostitute away from the hotel.

On January 11, 2014, Erogbogbo again phoned the prostitute after she posted a new commercial sex ad and attempted to arrange another “date.”  Based on the information provided by the prostitute, members of the Maryland Child Exploitation Task Force (MCETF) arrived in the area of the hotel and set up surveillance.  Erogbogbo, however, never appeared.

A third prostitute told MCETF members that she had arranged a “date” with Erogbogbo who called her after she had posted an online prostitution ad.  A fourth prostitute hid in the closet as a precaution.  When Erogbogbo arrived in the hotel room, he identified himself as a police officer and placed the prostitute in handcuffs.  Erogbogbo was wearing a vest that read “POLICE”, a law enforcement belt, a holstered gun on the right side and a second gun in a left-side drop holster.  Erogbogbo also showed her a metallic badge. When the fourth prostitute emerged from the closet, Erogbogbo demanded that they give him their prostitution money.  The prostitutes gave Erogbogbo a total of $1,400.  Erogbogbo returned $600 to the fourth prostitute and took $800 from the third prostitute.  Erogbogbo wrote a phone number on a piece of yellow paper, told the victims to call him if they needed future assistance from the police, removed the handcuffs and left.

On February 19, 2014, MCETF personnel met another prostitute who said that she too had been recently robbed by Erogbogbo.  Erogbogbo had made a “date” with this fifth prostitute from her online post.   When he arrived at her hotel room, he said that he was a police officer in the “Human Trafficking Unit.”  He showed a badge, and wore a ballistic vest with a “POLICE” patch, and carried a radio that he periodically spoke into.  He also carried a handcuff pouch, handcuffs and a gun in a leather holster.  After asking the woman several questions regarding her involvement in prostitution, Erogbogbo said that the “only way” to avoid arrest was to have sex with him. The woman at first refused.  When she would not take off her clothing, Erogbogbo threatened to put handcuffs on her.  He began having sex with her, but stopped when she became unresponsive.

The next day, the prostitute posted a new online prostitution ad under the direction of MCETF. Erogbogbo contacted her to make a “date.”  Although she had not told Erogbogbo her exact location, Erogbogbo soon walked into the hotel lobby en route to the “date.”   When Erogbogbo encountered the Laurel City Police in the lobby, he attempted to flee.  He was stopped by the police as he was attempting to re-enter his vehicle parked outside of the hotel.  Erogbogbo was wearing a gold Six Flags Loss Prevention badge and a Smith and Wesson replica BB gun, holstered on his belt.

Police searched Erogbogbo’s residence and vehicle and recovered handcuffs, radios, pepper spray, badge holders and a yellow notepad that contained names, driver’s license numbers, phone numbers and addresses of women, including the prostitutes previously described.

United States Attorney Rod J. Rosenstein commended the FBI, Anne Arundel County and Prince George’s County Police Departments, Laurel Police Department, Anne Arundel County and Prince George’s County State’s Attorney’s Offices and Maryland Child Exploitation Task Force for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant United States Attorneys Daniel C. Gardner and James A. Crowell IV, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced William Peters, age 64, of Glen Burnie, Maryland, today to 18 months in prison followed by three years of supervised release for conspiring to commit mail and wire fraud, and conspiring to commit money laundering.  Judge Motz also entered an order that Peters forfeit and pay restitution of $4 million.

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; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to his plea, Peters was a board member of a charity that provided financial support to Native American communities and individuals.  Peters and coconspirator Brian Brown, the former president of the charity, falsely represented that if the charity funded Charity One, Inc., a nonprofit corporation Brown created and controlled to effectuate the fraud scheme, Charity One would use the funds for scholarships for American Indians.  Peters and Brown, however, intended to use the funds for their own benefit.

Peters used his board membership position to cause the charity to execute a series of endowment agreements in which the charity agreed to fund Charity One with $1 million per year for five years.  Charity One purportedly agreed to maintain and invest the funds for scholarships for American Indians.

In fact, however, Peters and Brown distributed the proceeds of their fraud scheme to themselves. To do so, Peters created and controlled a corporation called August First, Inc., which he used to receive and distribute to himself $950,244 of the fraud proceeds.  Brown created and controlled a corporation called Aria Inc. to receive and distribute to himself $3,011,751 of the proceeds.  Peters and Brown falsely characterized the funds as consulting fees on their federal income tax returns filed for 2006 to 2009 in order to conceal the source of these funds.

Peters has agreed that the actual loss to the charity is $4 million.

Brian J. Brown, age 58, of Beaverton, Oregon previously pleaded guilty to his participation in the conspiracy and was sentenced in federal court in Oregon on May 7, 2015 to 37 months in prison.

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 and IRS Criminal Investigation for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Seth D. Uram for the District of Oregon and Jefferson M. Gray for the District of Maryland, who prosecuted the case.

Baltimore, Maryland – A federal grand jury indicted Robert “Meech” Tucker, age 23, of Baltimore, yesterday for being a felon in possession of a gun.

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; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Anthony W. Batts.    

“Police officers save lives when they detect, investigate and arrest armed criminals, and we are thankful for their proactive work,” said U.S. Attorney Rod J. Rosenstein. “People who throw bricks and bottles at police officers should be arrested and go to jail, just as they would if they attacked any other human being.”

According to the allegations in the federal indictment and documents filed in state court, on May 4, 2015, police, who were patrolling in the Pennsylvania Avenue/North Avenue section of Baltimore, the same area impacted by street riots several days earlier, noticed that Robert “Meech” Tucker was displaying characteristics of an armed gunman. When police approached Tucker, he ran and threw a Ruger Blackhawk .357 handgun to the ground, causing it to fire. Fortunately no one was hit by the bullet. When police caught Tucker, he repeatedly screamed as if he had been injured, but Tucker was not injured. Bystanders then threw bricks and bottles at police officers.

The U.S. Attorney’s Office sponsors statewide training seminars for police officers to identify characteristics of armed gunmen and safely investigate them.

Tucker faces a maximum sentence of 10 years in prison.  Tucker is presently in state custody.  His initial appearance in U.S. District Court in Baltimore has not yet been scheduled.

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

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Special Assistant United States Attorney Matthew Hoff, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Ronald Ross, age 27, of Baltimore, today to 10 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute heroin.

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

According to his plea agreement, from January to June 24, 2014, members of the conspiracy obtained bulk quantities of heroin and packaged the heroin for retail distribution. The prepackaged heroin was provided to Ross on a daily basis, who then sold the heroin to retail customers at an open-air drug “shop” in the vicinity of the intersection of Baltimore and Bentalou Streets in Baltimore.

During his participation in the drug conspiracy, Ross admitted that he and others distributed between 100 and 400 grams of heroin of heroin.

Co-defendants Eric Johnson, age 38, Keith Gilliam, age 21, Sara Jones, age 29 and Nicholas Jones, age 23, all of Baltimore, previously pleaded guilty to their participation in the conspiracy.  Johnson, Gilliam and Sara Jones are scheduled to be sentenced on July 23, 2015.  Nicholas Jones is scheduled to be sentenced on August 31, 2015.

United States Attorney Rod J. Rosenstein praised ATF, the Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Special Assistant U.S. Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Justin Alonza Jefferson, age 22, of Temple Hills, Maryland, today to seven years in prison, followed by 15 years of supervised release, for distribution of child pornography. Judge Chuang ordered that upon his release from prison, Jefferson 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).

Under the law, children who are abused to produce child pornography, and whose images are traded on the internet are entitled to restitution.  Judge Chuang also ordered Jefferson to pay restitution totaling $7,500 to three such identified victims, whose images were among the child pornography Jefferson possessed.

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 Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to Jefferson’s plea agreement, in December 2012, Jefferson uploaded files depicting children engaged in sexually explicit conduct.  On April 5, 2013, a search warrant was executed at Jefferson’s residence and law enforcement seized Jefferson’s laptop computer and an external hard drive, among other items.  Jefferson was interviewed and admitted that he had been collecting child pornography since he was 12 years old and that his laptop and external hard drive contained images and videos of child pornography.  A subsequent review of the laptop and external hard drive revealed approximately 8,000 image files and 800 movie files depicting minors engaged in sexually explicit conduct.  Jefferson further admitted that he traded child pornography via the internet.  A search warrant was executed for Jefferson’s email account and law enforcement seized numerous emails to and from Jefferson attaching image files of child pornography.

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Maryland State Police for their work in the investigation, and thanked the National Center for Missing and Exploited Children for its assistance.  Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell and Michael T. Packard, who prosecuted the case.

Baltimore, Maryland – A federal grand jury has indicted Lyneth Nyabiosi, age 49, and her husband, Willie Evans III, a/k/a “James Davies” and “James Davis,” age 53, both of Bear, Delaware, on charges arising from a scheme to falsely bill Nyabiosi’s employer, Sheppard Pratt Health Systems, for approximately $2.5 million for work purportedly performed by a company that the defendants secretly controlled.  The indictment was returned on June 16, 2015 and unsealed today following the arrest of the defendants.

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.     

Sheppard Pratt Health System is a private, non-profit health system in Maryland which offers mental health, substance use and special education services.  Sheppard Pratt’s main campus is located at 6501 North Charles Street, Towson, Maryland.  From November 2005 to September 2014, Nyabiosi was the director of the Health Information Management Department (HIM Department) of Sheppard Pratt.  The department was responsible for receiving, organizing and storing patient medical records. As the director, Nyabsiosi was the highest ranking employee in the HIM Department.

According to the eight count indictment, Nyabiosi and Evans controlled and operated an entity named Information Management Solutions Technology (IMST), which purported to specialize in record management.  On March 7, 2007, Nyabiosi, on behalf of Sheppard Pratt, entered into a contract with IMST to manage medical records for Sheppard Pratt, in violation of Sheppard Pratt’s conflict of interest policy.  From 2006 to October 2014, and to conceal the inherent conflict of interest, the defendants falsely represented to Sheppard Pratt and others that IMST was operated by an account representative named “James Davis” and “James Davies,” when in fact no such person was employed by IMST.

The indictment further alleges that from 2007 to August 2014, the defendants submitted over 150 false invoices requesting that Sheppard Pratt pay IMST approximately $2.5 million. The invoices requested payment for work which was never performed, or for excessively inflated amounts for the work that was actually performed.  For example, the invoices and other documents provided to Sheppard Pratt falsely represented that IMST stored and then shredded hundreds of thousands of boxes of sensitive medical records, when in fact IMST had stored substantially less.  Nyabiosi, nonetheless personally approved all of the false invoices, thus causing Sheppard Pratt to mail checks to IMST totaling approximately $2.5 million.  The defendants deposited the money in their bank account and used the money for personal expenditures, including loan and mortgage payments; home renovations and upgrades; personal wire transfers to Africa; and vehicle, food, clothing and entertainment expenses.

The indictment seeks forfeiture of $2.6 million, two residences located in Bear and Newark, Delaware and three vehicles.

The defendants face a maximum sentence of 20 years in prison for each of the eight counts of conspiring to commit mail fraud and mail fraud.  An initial appearance was held for Nyabiosi yesterday and for Evans today in U.S. District Court in Baltimore. The defendants were released on home confinement and under the supervision of U.S. Pretrial Services.

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

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorney David I. Sharfstein, who is prosecuting the case.

Baltimore, Maryland – A federal grand jury has indicted Harry Crawford, age 55, Elma Myles, age 51, and Matthew Hightower, age 33, all of Baltimore, Maryland, on charges related to a scheme to defraud Medicaid and other health care benefit programs out of at least $900,000.  The indictment was returned on June 3, 2015 and unsealed on June 17, 2015, upon the arrest of the defendants.  These charges are part of a nationwide takedown by Medicare Fraud Strike Force operations in 17 cities, including Baltimore.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Chief James W. Johnson of the Baltimore County Police Department.  

According to the three-count indictment, Crawford owned and operated RX Resources and Solutions (RXRS), a durable medical equipment provider located in Randallstown, Maryland. RXRS provided hospital beds, wheelchairs, and disposable medical supplies including adult incontinence products, diabetic test strips and wound care items. Crawford was President and CEO of RXRS. Myles worked at the company and was responsible, among other things, for billing health care benefit programs for supplies provided by RXRS. Beginning in 2012, Hightower worked as a delivery driver for RXRS.

The indictment alleges that from 2010 through May 2014, Crawford and Myles conspired to defraud Medicaid and other health benefit programs by billing for supplies that were never provided, or overcharging for materials actually delivered, and by billing for supplies that were unneeded and had not been prescribed by a physician.  The indictment alleges that Hightower joined the conspiracy in May 2012.

Specifically, the indictment alleges that the defendants used the personal identity information of clients to submit fraudulent claims to Medicaid and other health care benefits programs for disposable medical supplies that were not delivered to the beneficiary.  In addition, the defendants allegedly delivered medical supplies to beneficiaries who did not need the supplies and whose physicians had not prescribed the supplies, even after the beneficiaries reported that they did not want or need the supplies.  The indictment alleges that Hightower would sign or have someone else sign delivery tickets when deliveries had not actually taken place so that the records of RXRS would falsely document the delivery.  According to the indictment, Hightower provided the forged and fraudulent delivery tickets to RXRS as part of his duties.

The indictment seeks the forfeiture of $900,000, as the proceeds of the offense.

The defendants face a maximum sentence of 10 years in prison for the conspiracy and for health care fraud; and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft.  An initial appearance was held for all the defendants on June 17, 2015 in U.S. District Court in Baltimore.  The defendants were released under the supervision of U.S. Pretrial Services.

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

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.

Today’s enforcement actions resulted in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, as well as the three defendants charged in Maryland, for their alleged participation in Medicare and Medicaid fraud schemes involving approximately $712 million in false billings.

United States Attorney Rod J. Rosenstein praised the HHS-OIG and Baltimore County Police Department for their work in the investigation and thanked the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office and the Maryland Medicaid Fraud Control Unit for their assistance.  Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Aaron Zelinsky, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Sophia Jones, age 40, a Jamaican citizen residing in Montgomery Village, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute heroin and marijuana, possession with intent to distribute heroin, and using a phone in furtherance of drug trafficking.  Jones was convicted on January 24, 2014, after a 12-day jury trial.

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); Chief Mark A. Magaw of the Prince George’s County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police.

According to testimony at her trial, Jones was a member of a drug conspiracy which involved at least one kilogram of heroin and 100 kilograms or more of marijuana.  As part of the drug conspiracy, Jones’ co-conspirators transported drugs from Mexico into Texas and then on to Maryland.  For example, beginning in late July 2012, co-defendants Amir Ali Faraz and Javier Escobar-Bucerra, traveled from Texas to Maryland with heroin to sell.  A marijuana customer of Faraz’ introduced them to Harold Bartrum.  Bartrum was only interested in purchasing marijuana, but located a customer for the heroin.  Faraz and Escobar-Bucerra sold nine ounces of heroin through Bartrum to this individual and discussed with Bartrum returning to Maryland with marijuana.

In September 2012, Faraz and Escobar-Bucerra traveled to Maryland from Texas with at least one kilogram of white powder heroin and between 9 ounces and 2.2 pounds of black tar heroin.  Bartrum again assisted them in selling the heroin, arranging sales to several people, including Cecil McCalla. According to trial testimony, McCalla contacted his niece, Sophia Jones, who agreed to sell the heroin. During the investigation, Jones was intercepted in telephone conversations arranging for the distribution of heroin on at least four occasions. On October 7th and 11th Jones distributed a total of approximately 14 grams of heroin. On October 9th Jones distributed 50 grams of heroin and on October 15th she distributed between100 and 110 grams of heroin. Jones was also intercepted discussing efforts to obtain marijuana and Bartrum’s efforts to get marijuana from the Texas sources (Faraz and Escobar-Bucerra).

Amir Ali Faraz, age 46, of Laredo, Texas, was also convicted after trial and was sentenced to 20 years in prison for conspiracy to distribute heroin and marijuana, possession with intent to distribute heroin, using a phone in furtherance of drug trafficking and interstate travel to promote drug trafficking activities.

Javier Escobar-Bucerra, age 30, of Laredo, Texas; Harold Bartrum, age 44, of Hyattsville, Maryland; and Cecil Rex McCalla, age 50, of Adelphi, Maryland, pleaded guilty to their roles in the conspiracy.  Escobar Bucerra and Bartrum were each sentenced to 64 months in prison; and McCalla was sentenced to 140 months in prison.

United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Prince George’s County Police Department, Maryland State Police and Virginia State Police, for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Russell Edward Johnson, age 24, of Lusby, Maryland, today to 11 years in prison followed by three years of supervised release for distributing heroin to a person who died as a result of ingesting the heroin.

The plea agreement 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; Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Laura Martin.         

“More people die of heroin overdoses than murder in Maryland,” said U.S. Attorney Rod J. Rosenstein. “Heroin dealers are selling death and despair.”

 According to his plea agreement, on July 18, 2013 in St. Leonard, Maryland, Johnson sold heroin to an individual who ingested the heroin.  A few hours later, Johnson again sold heroin to the individual.  The individual ingested the additional heroin, and died shortly thereafter.  The victim’s cause of death was determined to be heroin intoxication.

United States Attorney Rod J. Rosenstein praised the DEA, Calvert County Sheriff’s Office, and Assistant State’s Attorney Lisa Ridge of the Calvert County State’s Attorney’s Office, for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Daniel C. Gardner, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Chavez Tyrone Smith, age 36, of  Washington, D.C., today to 16 years in prison, followed by five years of supervised release, for a conspiracy to rob two businesses and for using a firearm during a crime of violence.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Michael E. Scott of the Mount Rainier Police Department; and Maryland Attorney General Brian E. Frosh.

According to Smith’s plea agreement, on May 21, 2012, Smith and his co-conspirators Anthony Akrah Morris, and Tiffany Edmundson, robbed a convenience store and a fast food restaurant.   Smith’s role in the conspiracy included conducting surveillance of the businesses prior to the robberies, planning the robberies with his co-conspirators, knowing that at least one co-conspirator would be armed with a gun, entering the businesses and participating in the robberies, and receiving a portion of the proceeds of the robberies.

Specifically, Smith, Morris and Edmundson robbed a convenience store in the 12000 block of Laurel Bowie Road in Laurel, Maryland.  Smith and the other robbers work masks partially covering their faces. Smith stood at the entrance of the store to watch for other customers or law enforcement.  Smith was armed with a gun.  Smith’s co-conspirators ordered customers to the floor and the robbers stole $340 from the store cash register and $475 worth of cigarettes from the store shelves.  Edmundson took a cell phone from a customer.  Smith and his co-conspirators fled in a vehicle being driven by another co-conspirator.

Approximately one hour later, Morris, Edmundson, and another of Smith’s co-conspirators, Cornelius Jennings, robbed a fast food restaurant located in the 15000 block of Old Columbia Pike in Burtonsville, Maryland.  The robbers wore masks and Jennings was armed with a handgun, which was brandished at employees in the store.  Smith’s co-conspirators forced employees to open the restaurant’s safe and stole $1,400 from the safe.  Smith and the robbers fled in a vehicle being driving by another co-conspirator who was acting as a lookout.

Smith admitted that he received a portion of the money stolen in the two robberies and that he provided the vehicle used to drive to and from the robberies.

Anthony Akrah Morris, age 25, of Burtonsville, Maryland, was convicted after trial and sentenced to 505 months in prison for conspiring to commit robbery, two counts of robbery and two counts of brandishing a firearm during a robbery.  Cornelius Jennings, age 27, of Washington, D.C., and Tiffany Edmundson, age 26, of Greenbelt, Maryland, have pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on June 25, 2015, at 9:30 a.m., and September 15, 2015, at 1:00 p.m., respectively.

United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department, Montgomery County Police Department, Mount Rainier Police Department and the Maryland Attorney General’s Office for their work in the investigation.  Mr. Rosenstein praised the Prince George’s County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance and coordination. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.

Baltimore, Maryland – Jeffrey Poole, age 40, of Parkton, Maryland, pleaded guilty today to bank fraud and aggravated identity theft arising from a seven year scheme to access a client’s bank account.

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

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

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

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

Poole faces a maximum sentence of 30 years in prison and a fine of $1 million for bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft consecutive to any other sentence imposed.  Chief U.S. District Judge Catherine C. Blake scheduled his sentencing for September 23, 2015, at 9:15 a.m.

Poole has agreed to pay restitution of $180,000 for the actual losses incurred by the victim.

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

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

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.

Greenbelt, Maryland - U.S. District Judge Deborah K. Chasanow sentenced Wesley Burnett, age 54, of Hermosa Beach, California, today to 42 months in prison followed by three years of supervised release for wire fraud conspiracy in connection with a scheme to fraudulently obtain more than $2.8 million in federal government contracts through a Small Business Administration (SBA) program designed to assist disadvantaged businesses.  Judge Chasanow also entered an order that Burnet forfeit $694,893.99.

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, Burnett owned and operated Confederate Group LLC and Total Barrier Works (TBW), which maintained and installed anti-terrorist systems and vehicle control equipment such as security barriers, bollards, gates, uninterrupted power systems and other perimeter security anti-terrorist equipment.

Burnett admitted that from 2007 until 2014, he falsely represented to the U.S. government that Confederate Group was a “Hispanic-American owned business,” a “minority owned business,” a “service disabled veteran owned business,” and a “small disadvantaged business,” in order to win federal contracts at military bases and federal buildings that were reserved for firms in those categories. In fact, Burnett was not a member of any racial or ethnic minority, was not a disabled veteran and was not a member of a socially disadvantaged group. As a result of these fraudulent representations, from 2008 through 2014 Confederate Group was awarded approximately $534,315 in contracts reserved for minorities and disabled veterans.

In order to bid on the contracts, Burnett recruited members of racial or ethnic minorities, service disabled veterans, or members of socially disadvantaged groups, and offered them a percentage of any contract he won using their companies’ name.  Burnett and TBW performed all of the work covered by the contract, then paid the owner of the company in whose name the contract had been awarded a fixed percentage of the gross value of the contract, usually between four and five percent.  To further this “pass thru” arrangement, Burnett falsely represented that TBW was a trade name for the minority owned company in whose name the contract had been awarded, when in fact TBW was a separate company.

For example, Yogesh K. Patel was the owner 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 minority or socially 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 minority or socially disadvantaged owned companies.

Burnett met Patel at a business conference and the two agreed to use UNTI to bid on SBA set aside contracts at federal government installations, including military bases and federal buildings, with Burnett, TBW and individuals at Burnett’s direction actually performing the work. Burnett also agreed to pay Patel approximately 4.5% of any contract awarded to UNTI.  From January 2010 and November 2013, UNTI was fraudulently awarded more than $1.8 million in set-aside U.S. government contracts, while the work on the contracts was actually performed by Burnett’s company and employees.

Burnett admitted that he had similar arrangements with the owner of a minority firm that did electrical and other work for government and commercial clients, and with the owner of a service-disabled veteran-owned small business. Burnett also fraudulently obtained the personal identifying information of a service-disabled veteran, which he then used when bidding on federal government contracts.

Yogesh K. Patel, age 47, of Gaithersburg, Maryland, previously pleaded guilty to his role in the scheme and awaits sentencing.

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 Roger W. Titus sentenced Raymond Bullette III, age 34, of Los Angeles, California, today to life in prison followed by 10 years of supervised release for conspiring to distribute large quantities of phencyclidine (PCP).  Bullette had previously been convicted of five felony drug offenses in California since 1999 and was on supervised probation at the time of the offense.

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; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to evidence presented during his four day trial, in 2010, Maryland PCP distributors Ricky Holloway, Shawn Anthony and Don Campbell traveled to Los Angeles and bought two gallons of PCP from Bullette for $20,000.  Bullette helped ship the PCP to Maryland.  Thereafter and at least until August 2013, Bullette regularly made multiple-gallon shipments of PCP - typically packaged in paint cans - to Holloway in Maryland, who would then distribute the PCP to other coconspirators and his own customers in Prince George’s County, Maryland and surrounding areas.

Holloway paid Bullette for the PCP by depositing cash in bank accounts Bullette controlled or, later, by shipping cash in bulk to California.  From September 2011 to September 2012, when their bank deposit method was compromised, Holloway arranged for $768,000 in cash deposits to be made in Maryland into Bullette’s accounts in payment for over 70 gallons of PCP.

On June 1, 2013, police in California came across a lab at which Bullette and two coconspirators were manufacturing PCP in the desert north of Los Angeles.  Bullette fled into the desert that night as he saw police approach, but left behind his car, phone, documents and sufficient precursor chemicals to manufacture up to another 70 gallons of PCP.

Ricky Holloway, age 31, of Bowie, Maryland, Shawn Anthony, age 35, of Landover, Maryland and Don Juan Campbell, age 34 of Laurel, Maryland, previously pleaded guilty to their roles in the drug conspiracy.  Holloway was sentenced to 14 years in prison.  Anthony was sentenced to five years in prison. Campbell is scheduled to be sentenced on June 30, 2015 at 1:00 p.m.

In related cases, Richard Brown, age 29, and David Chittams, age 34, both of Lanham, Maryland, pleaded guilty to conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), and were sentenced to 10 years and seven years in prison, respectively.  Kyle Daniels, age 36, also of Landover, pleaded guilty to distribution of PCP and illegal possession of a firearm and was sentenced to 51 months in prison.

Ricky Lee Holloway’s younger brother, Richaco Fernandis Holloway, age 24, of Camp Springs, Maryland, was previously sentenced to 57 months in prison for being a felon in possession of a gun.  According to testimony presented at Richaco Holloway’s two-day trial, on July 3, 2013, a music label belonging to Ricky Lee Holloway posted a video in which Richacho Holloway was filmed holding a .45 caliber handgun with an extended magazine.  The video was shot at a building that had been converted into a music studio and doubled as a distribution hub for Ricky Lee Holloway’s PCP distribution operation.  During a search conducted at the music studio during a takedown of Ricky Holloway’s PCP trafficking activity, agents recovered the firearm Richaco Holloway was filmed holding in the rap video.  Richaco Holloway was prohibited from possessing a firearm or ammunition due to a 2008 conviction in Prince George’s County Circuit Court for robbery with a deadly weapon and for which he was on parole.

United States Attorney Rod J. Rosenstein commended the FBI, DEA, Prince George’s County Police Department and the Los Angeles County Sheriff’s Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Adam K. Ake and Leah Jo Bressack, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – Mark Nixon, age 54, of Silver Spring, Maryland, pleaded guilty today to conspiring to defraud the United States and to acts affecting a personal financial interest.

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

"Today's guilty plea demonstrates our special agents' expertise and dedication to investigate and expose companies and government employees who engage in fraud," said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. "While the defendant may have thought he would get away with the criminal scheme, he was no match for the dogged determination and professionalism of our agents and their commitment to enforcing the law and rooting out those who attempt to steal from the U.S. Government."

"The guilty plea today by Mr. Nixon illustrates the lengths that some will go through to circumvent the government contracting process for personal gain," said Robert E. Craig, Jr., Special Agent in Charge for the Defense Criminal Investigative Service, Mid-Atlantic Field Office.  "DCIS and its law enforcement partners, along with the U.S. Attorney's Office, are committed to rooting out this behavior in order to ensure acquisition integrity and safeguard Department of Defense funds."

 Mark Nixon was a civilian employee of the Department of Defense, and worked at the U.S. Army Research Laboratories (ARL) in Hampden, Virginia, and Aberdeen, Maryland. From 2008 to December 2010, Nixon was the Director of Vehicle Technology Directorate with ARL at Aberdeen Proving Ground.

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

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

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

Nixon and a coconspirator had caused MRI to be created and provided significant input regarding the operation of MRI.  Nixon was in effect a silent and undisclosed partner, owner and co-president. Nixon also actively assisted with the operation of MRI using the alias "Paul Martin" on order to conceal their financial interest. Although Nixon knew that he had a prohibited financial interest in MRI, he conducted a technical evaluation of MRI’s capabilities as a subcontractor, and approved invoices listing false labor and materials charges.

MRI received more than $5 million in federal funds under these task orders. Nixon caused MRI to pay money to Arrow Technical, and Arrow Technical to pay Atlantic Capital. Nixon also had a financial interest in Arrow Technical and Atlantic Capital.  Nixon and two co-conspirators personally benefited from over $750,000 sent to these companies.

Nixon and the government have agreed that if the Court accepts the plea agreement, Nixon will be sentenced to 42 months in prison followed by three years of supervised release.  Nixon also agrees to forfeit and pay restitution of at least $750,000.  U.S. District Judge Marvin J. Garbis has scheduled sentencing for September 18, 2015 at 9:30 a.m.

An information filed on May 8, 2015 also charges Mark Nixon’s wife Sandra Nixon, a/k/a “Lisa Hart,” age 52, of Silver Spring, and Kenneth Dawson, age 52, of Niceville, Florida, with the same offenses arising from the conspiracy.  Both Sandra Nixon and Kenneth Dawson are scheduled to have their initial appearance and arraignment on June 30, 2015 at 2:00 p.m. and 11:00 a.m., respectively.

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

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

Baltimore, Maryland – U.S. District Judge George L. Russell sentenced Shawn Joseph Eisenstein, age 29, of Owings Mills, Maryland, today to 11 years in prison followed by supervised release for life, for possession of child pornography. Eisenstein was previously convicted of distribution of child pornography in Baltimore County and was required to register as a sex offender. Judge Russell ordered that upon his release from prison, Eisenstein must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge 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.

On May 28, 2008, Eisenstein was convicted in Baltimore County Circuit Court of distributing child pornography, and sentenced to five years’ incarceration, with three years and six months suspended.  Eisenstein was placed on three years of probation upon his release from prison and ordered to register as a sex offender.

According to his plea agreement, in July 2014, Eisenstein uploaded images containing child pornography to his email account.  Following the email provider’s discovery of the images, a search warrant for Eisenstein’s residence was executed on July 29, 2014.  Eisenstein admitted to using his cell phone and his email accounts to trade files of child pornography with people he met on an image board website.  He viewed the child pornography on his cell phone.

A Baltimore County computer forensic examiner subsequently found over 100 images on Eisenstein’s cell phone of children engaged in lewd and sexual activity.  In all, Eisenstein possessed over 600 images of child pornography, including pre-pubescent children and images portraying sadistic or masochistic conduct, or other depictions of violence.

Eisenstein further admitted that in October 2011, while still on probation for his previous conviction for distribution of child pornography, he used an email account to communicate with an undercover Baltimore County detective who represented himself as a 13 year old female.  During those conversations Eisenstein discussed meeting the “girl” to engage in sexually explicit conduct.

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

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

Greenbelt, Maryland – A federal grand jury indicted Gavin Burns Smith, age 44, of New Port Richey, Florida, on May 20, 2015 for selling misbranded drugs with the intent to defraud, in connection with the sale of peptides to bodybuilders which were not approved by the FDA for human use. The indictment was returned on May 20, 2015 and unsealed yesterday upon his arrest.

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

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

On August 22, 2012, law enforcement executed federal search warrants at Precision Peptides and DNA Peptides.  At some time between August 22, 2012 and March 2015, Smith began operating DNA Peptides out of his residence.

The indictment alleges that Smith caused DNA Peptides and Precision websites to display numerous disclaimers stating that all products sold were for “research/laboratory use only.”  Additionally, prior to purchasing the products from the website, each customer was asked to certify that he or she read the disclaimer that the “chemicals/materials for sale here are . . . not intended for human ingestion.”  Yet Smith allegedly intended that the products be used by consumers for bodybuilding purposes.

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

The indictment alleges that Smith sold misbranded drugs to an undercover officer and shipped those drugs to various locations in Laurel, Columbia and Beltsville, Maryland on seven occasions from November 21, 2011 to March 12, 2015.

The indictment seeks forfeiture of $2,102,684.06, the value of the misbranded drugs subject to seizure.

Smith faces a maximum sentence of three years in prison, one year of supervised release, and a $250,000 fine.  An initial appearance is scheduled for Smith before Magistrate Judge Jillyn K. Schulze in U.S. District Court in Greenbelt on June 30, 2015 at 1:45 p.m.

United States Attorney Rod J. Rosenstein commended the FDA Office of Criminal Investigations for its work in the investigation and thanked Assistant U.S. Attorney Kelly O. Hayes, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Robert Sanders, a/k/a “Man,” age 28, of Baltimore, today to 11 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin and cocaine base (crack), in connection with his membership in a group known as “Coppin Court” which operated in the Cherry Hill section of Baltimore.

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

According to his plea agreement, Sanders, who is associated with a criminal organization in Cherry Hill known as “Hillside,” as well as “Coppin Court,” is a long time narcotics distributor who has distributed crack cocaine and heroin with members of Coppin Court in Cherry Hill.  Sanders has also been associated with other “Down the Hill” individuals selling drugs.  Sanders sold crack cocaine out of an apartment located on Round Road in Cherry Hill.  Sanders also committed robberies.

Additionally, on February 5, 2003 in the 2800 block of Winwood Court in Cherry Hill, Sanders used a gun to shoot and injure an individual associated with the Up Da Hill group, a rival drug trafficking organization.  Sanders possessed this gun in connection with his ongoing drug trafficking activities.

During his participation in the drug conspiracy beginning in at least 2003, Sanders was found to be responsible for the distribution of between one and three kilograms of heroin, and between 280 and 840 grams of crack.

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

Baltimore, Maryland – William Eugene Simms, age 62, of Oakland, Maryland pleaded guilty today to theft of government property.

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

 According to his plea agreement, in July 2009, Simms applied for SSA disability benefits, claiming that he was unable to work due to a back injury.  In April 2010, Simms began working at an automobile salvage business and did not report this return to work to the SSA.  In August 2010, Simms began receiving SSA disability benefits and stopped working for a few months.  Within three months, the automobile salvage business rehired Simms, and he began working full time moving aluminum bales.  The business paid Simms in cash to conceal his work from the SSA.  Simms also worked odd jobs elsewhere, including scrapping metal.

Simms did not report any of his work to SSA and as a result, from August 2010 to March 2015, Simms fraudulently received $60,890 in disability benefits.

Simms faces a maximum sentence of 10 years in prison and a $250,000 fine. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 15, 2015 at 11:00 a.m.

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

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Juan Carlos Willis, age 41, of Hyattsville, Maryland late yesterday to 61 months in prison followed by three years of supervised release for conspiring to commit wire fraud and aggravated identity theft in connection with a scheme to use the stolen identity of others to purchase expensive cars.

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

According to his plea agreement, Willis, Kenneth Watford, Flinton Newton and others obtained the identity information of credit-worthy individuals, created false identity documents in the names of those individuals, then posed as those individuals at automotive dealerships in order to apply for vehicle financing.Willis and his coconspirators filled out credit applications and obtained loans in the names of the identity theft victims to purchase, or attempt to purchase, expensive cars from dealers in Maryland and Virginia.They intended to either use the luxury vehicles themselves, or rent or sell them.

On June 23, 2012, Willis, Watford and a coconspirator used the identity of another person to complete and submit a credit application for $77,450 in financing at BMW of Silver Spring, Maryland, to purchase a 2011 BMW 750. On July 26, 2012, Watford was arrested while driving the BMW in Bowie, Maryland. Inside the BMW were the victim’s credit reports from three credit bureaus.  

On July 19, 2012, Willis and Newton went to Capitol Cadillac in Greenbelt.Newton posed as another person whose identity he had fraudulently obtained, to apply for $80,663 in financing to purchase a 2013 Cadillac Escalade in the victim’s name.Willis used online access to an insurance policy written on Watford’s business to obtain proof of insurance in support of the vehicle purchase.

Later that evening, Willis and Newton drove to Mercedes-Benz of Silver Spring where Newton again posed as the victim.The men attempted to purchase a 2012 Mercedes-Benz CL550 and a 2009 Mercedez-Benz S550 for a total of $120,056.They filled out credit applications to finance the entire purchase price, again using the victim’s identity and credit.Willis again presented the auto insurance policy in Watford’s business name in support of the vehicle purchases.

The dealership manager saw that the victim’s credit had just been used to purchase the Cadillac Escalade, so he notified Montgomery County Police, who responded and arrested Willis and Newton. Willis acknowledged that his role in the scheme was to locate vehicles and provide insurance information.

The total attempted loss as a result of the fraudulent scheme was between $400,000 and $1 million.

Flinton Newton, age 34, of Bartlett, Tennessee previously pleaded guilty in connection with the scheme and was sentenced to 42 months in prison.Following a six day trial, Kenneth Watford, age 55, of Bowie, was convicted by a federal jury on April 16, 2015 of conspiring to commit wire fraud, three counts of wire fraud, attempting to commit wire fraud, four counts of aggravated identity theft, possessing a firearm by a convicted felon, credit card fraud and two counts of attempted credit card fraud.Watford is scheduled to be sentenced on July 28, 2015 at 9:30 a.m.

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

United States Attorney Rod J. Rosenstein praised the Secret Service, U.S. Postal Inspection Service and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Adam K. Ake and Special Assistant United States Attorney James I. Pearce, who prosecuted the case.

Baltimore, Maryland - A federal grand jury returned a racketeering indictment charging 14 defendants for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (BGF).  The indictment, which was returned on June 3, 2015 and unsealed today, charges 14 alleged BGF gang members with conspiring to violate federal racketeering and drug trafficking laws.  Two defendants also are charged with conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering.  Four defendants are also charged with using a gun in relation to violent crimes; and one defendant also faces charges of drug trafficking, possession of a gun in furtherance of drug trafficking and illegal possession of a gun.

This brings to 118 the total number of alleged BGF members and associates indicted in federal court since April 2009.

The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt, Federal Bureau of Investigation; Acting Assistant Special Agent in Charge Shawn R. Ellerman of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts, Baltimore Police Department; Chief Gary Gardner of the Howard County Police Department; and Baltimore City State’s Attorney Marilyn Mosby.

“Federal, state and local agencies have joined to target leaders and key members of violent gangs operating in Baltimore City,” said U.S. Attorney Rod J. Rosenstein. “Today’s indictment alleges that the Black Guerilla Family gang is an organized criminal enterprise with leaders and members who deal drugs and commit violent crimes. Anyone who joins a criminal gang can be held accountable for all crimes committed by fellow gang members.”                                                       

The following defendants, all of Baltimore unless otherwise specified, are charged in the indictment unsealed today:

            Timothy Michael Gray, a/k/a “Mike Gray,” “Uncle Mike,”  “MG,” and “M”, age 47,

            Robert Nedd, a/k/a “Pizza,” and “P,” age 44,

            Mark Bazemore, a/k/a “Uncle Mark,” age 30,

            Marshall Spence, “a/k/a “Uncle M,” age 33,

            Irvin Vincent, a/k/a “O,” and “O-dog,” age 26, of Hanover, Maryland;

            Glendrict Frazier, a/k/a “Glen” and “Uncle Glen,” age 51,

            Timothy Hurtt, a/k/a “Uncle Tim,” and “Tim,” age 44,

            William Harrington, a/k/a “Boosie” and “Boosey,” age 34,

            Tyrone Franklin, a/k/a “Bones,” age 35,

            Troy Kellam, a/k/a “G,” age 29,

            Calvin Palmer, a/k/a “C,” age 21,

            Davon Robinson, a/k/a “Veeto,” age 26,

            Michael Smith, Jr., a/k/a “Mikey,” “Lil Mike,” and “Mik,” age 29, and

            Daquan Burman, a/k/a “Day-Day,” age 20.

According to the nine count indictment, the 14 defendants are members and associates of the BGF, or “Jamaa,” the Swahili word for family, “J” for short, a nationwide gang operating in prisons and on the streets of cities throughout the United States.  Founded in California in the 1960s, BGF appeared in the Maryland correctional system in the 1990s.  Although still a prison gang, BGF is involved in criminal activity, including murder, robbery, extortion, narcotics trafficking, obstruction of justice, and witness intimidation throughout communities in Baltimore City, in Maryland, and elsewhere.

All 14 defendants are charged in the superseding indictment with conspiring to conduct the affairs of BGF through a pattern of criminal activity from at least 2012 to the present, including: narcotics trafficking, murder; extortion; robbery, and retaliation against a witness or informant.  All 14 defendants are also charged with conspiracy to distribute heroin, cocaine base (crack), cocaine and oxycodone.  The defendants are alleged to have distributed drugs to customers in the Baltimore area, including the area of Pratt and Payson Streets, a BGF-controlled drug shop at Baltimore and Catherine Streets, and on Lemmon Street, all in Baltimore City. Vincent is also alleged to have distributed wholesale quantities of heroin to a coconspirator, who then sold the heroin for Vincent to customers in Howard County, Maryland.

More specifically, the indictment alleges that Gray was the city-wide commander of BGF on the streets of Baltimore since 2013.  Gray and Hurtt collected money from BGF gang members and commanders who controlled BGF drug shops throughout Baltimore.  Between September and December 2013, Gray sanctioned the murder of a BGF gang member, then watched as another BGF gang member fired several shots at the victim attempting to kill him.  Gray also sanctioned the murder of second BGF member, a/k/a “Newbie.”  In May of 2014, Gray allegedly authorized the shooting of Victim 3, and in June of 2014, authorized the murder of “Gutter,” an unknown person.

The indictment further alleges that on three separate occasions, Vincent distributed heroin to other heroin distributors which caused the death of three of the distributors’ customers, who died from “heroin and oxycodone intoxication” on November 14, 2013; “heroin intoxication” on December 4, 2013; and “morphine and fentanyl intoxication” on May 1, 2014.

According to the indictment, on March 10, 2014, after confirming with Bazemore that an order still existed to kill Victim 3, Harrington shot the victim in Baltimore, and was driven from the location by Burman. On May 25, 2014, Harrington advised Palmer that Victim 3 was trying to have Harrington sanctioned, while in jail, for shooting him.  On May 27, 2014, Harrington was assaulted in jail by other BGF members for shooting Victim 3.

The indictment alleges that on June 15, 2014, Robinson ordered an unindicted coconspirator to assault Palmer who was being sanctioned by Victim 5.  The next day, Kellam and Franklin murdered Victim 5.

The indictment further alleges that on September 11, 2014, Spence murdered BGF gang member Victim 6, a minor, by firing multiple gun shots, including one to the victim’s face, in Baltimore. From September to November 2014, in a telephone conversation between Spence and a minor, Spence allegedly threatened and intimidated the minor, who was a witness in the investigation into the homicide of Victim 6.  Spence and a fellow BGF gang member discussed the murder of witnesses who were involved with the investigation into the homicide of Victim 6.

The defendants face a maximum sentence of life in prison on the racketeering and drug conspiracies.  Harrington and Bazemore also face a maximum sentence of 10 years in prison for conspiring to commit murder in aid of racketeering and 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.  Gray, Bazemore, Frazier and Hurtt also face a maximum sentence of 20 years in prison for conspiring to use and carry a gun in relation to a crime of violence and drug trafficking.  Vincent faces a maximum sentence of 20 years in prison for possession with intent to distribute heroin, a mandatory minimum of 10 years in prison consecutive to any other sentence and a maximum sentence of life in prison for possessing a gun in furtherance of a drug trafficking crime and 10 years in prison for being a felon in possession of a gun.

The defendants are expected to have their initial appearance in U.S. District Court in Baltimore this afternoon.                                                      

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.

Mr. Rosenstein praised the FBI, DEA, Baltimore City and Howard County Police Departments and Baltimore State’s Attorney’s Office for their assistance in this investigation and prosecution.  Mr. Rosenstein also commended the Anne Arundel County and Baltimore County Police Departments for their assistance in the investigation.

United States Attorney Rod J. Rosenstein thanked Baltimore City Assistant State’s Attorneys Traci Robinson, Charles Blomquist and Matthew Hoff for their work in the investigation and prosecution, and Assistant United States Attorneys James T. Wallner and Clinton J. Fuchs, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – A federal grand jury has returned two indictments charging 18 defendants with conspiring to distribute cocaine and heroin, and possession with intent to distribute the drugs. The indictments were returned on June 3, 2015 and unsealed today upon the arrest of the defendants, and the execution of search warrants at 29 residences and two businesses.

The first indictment charges 14 defendants in connection with drug trafficking operations conducted primarily at or near the housing complex in the 14000 block of Bel Pre Drive, Silver Spring. The second indictment charges four defendants with drug trafficking operations conducted primarily at or near a music studio located in the 7900 block of Cryden Way, District Heights, Maryland.

The indictments 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 J. Thomas Manger of the Montgomery County Police Department; Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service, Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief T. N. Treschuk of the Rockville City Police Department; Captain Timothy Lloyd of the Hackensack (New Jersey) Police Department; and Montgomery County State’s Attorney John McCarthy.

“An intensive investigation of drug dealing and related violence in the vicinity of Bel Pre Square yielded these allegations that much of the criminal activity in the area is related to an organized group of drug dealers,” said U.S. Attorney Rod J. Rosenstein. “Working together, local and federal authorities can help bring safety and security to Maryland neighborhoods by prosecuting criminals who deal drugs and foment violence. Surveillance and wiretaps were essential to gather the evidence.”

U.S. v. Frederick Davis, et al., No. 15-CR- 00317

According to the four count indictment and court documents, the FBI and Montgomery County Police Department identified a crack cocaine and heroin distribution operation led by defendant George Gee.  Gee and his distribution network primarily operated in Bel Pre Drive housing complex and the surrounding area from at least June 2014 to June 3, 2015. They allegedly used the housing complex as an open-air drug market where traffickers routinely conducted hand-to-hand drug transactions. Gee allegedly directed and supplied several local drug distributors operating in the housing complex and conducted hand-to-hand drug transactions with local distributors.  Drugs and drug proceeds were stored at the residences of some of the defendants.

The following defendants are charged in this indictment with conspiring to distribute cocaine base (crack), five kilograms or more of cocaine, and heroin:

Frederick J. Davis, age 31, of Gaithersburg, Maryland,

William T. Fergerson, a/k/a “Fats,” age 42, of Silver Spring, Maryland,

George Earl Gee, age 37, of Beltsville, Maryland,

Tiki Harmon, age 42, of Burtonsville, Maryland,

Amir Bey-Jones, a/k/a “Meano,” age 41, of Silver Spring,

Keenan Jones, age 54, of Silver Spring, Jovan Brian Lancaster, a/k/a “Juvie,” age 30, of Maryland,

Greg Milden, age 40, of Cliffside, New Jersey,

Joseph Miles, age 62, of Westerport, Maryland,

Brandon Richardson, age 30, of Silver Spring,

Alfonso Salazar, age 38, of Maryland,

Ryan Snowden, age 30, of Laurel, Maryland

Sonya Darby Thomas, a/k/a “Peaches,” age 37, of Gaithersburg, and

Rayvon Walls, age 25, of Indian Head, Maryland.

Gee, Snowden, Richardson, Salazar and Miles are also charged with possession with intent to distribute controlled substances. The indictment seeks forfeiture of $400,000.

U.S. v. Vincent Collins, et al., No. 15-CR-00316

According to the two count indictment and court documents, the FBI and the Montgomery County Police Department identified a heroin and cocaine distribution operation led by Anthony Niles.  Niles primarily operated out of a music studio in Districts Heights.  Niles allegedly directed and/or supplied several local drug distributors operating in Prince George’s County and the surrounding area from at least February 2015 to June 3, 2015.  The indictment charges the following defendants with conspiring to distribute heroin and cocaine:

Vincent Collins, age 36, of Oxon Hill, Maryland,

Sierra Lynch, age 37, of Beltsville, Maryland,

Anthony Niles, age 36, of Bowie, Maryland, and

Abdul Hakim Sauda, age 30, of Laurel, Maryland.

Niles and Sauda are also charged with possession with intent to distribute heroin and cocaine.

According to court documents, Harmon and Snowden worked at a barber shop on Old Columbia Pike in Burtonsville where they stored drugs and drug proceeds. The indictment seeks forfeiture of $280,000.

All 18 defendants face a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for the drug conspiracy. Gee, Snowden, Richardson, Salazar, Miles, Niles and Sauda also face a maximum sentence of 20 years in prison for distributing drugs.  The initial appearances of the defendants are scheduled to begin this afternoon at 2:00 p.m. in U.S. District Court in Greenbelt.

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, the Montgomery County Police Department, NCIS, Prince George’s County Police Department and the Rockville and Hackensack (New Jersey) Police Departments for their work in the investigation.  Mr. Rosenstein commended the Bergen County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance, and thanked Assistant United States Attorneys Daniel C. Gardner and Joseph R. Baldwin, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Ishmael Ford-Bey, age 40, of Mitchellville, Maryland, late yesterday to 33 years in prison, followed by 10 years of supervised release, for conspiracy, possession with intent to distribute cocaine, using a phone to facilitate drug distribution, and money laundering. Judge Chasanow had previously 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.

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 court documents, from at least January 2011 through his arrest on August 16, 2013, Ishmael Ford-Bey conspired with Anthony Tatum and others to distribute cocaine. The drugs were often sold in different locations 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.  As a result of wire taps on conspirators’ cell phones law enforcement overheard numerous conversations with Ford-Bey discussing and arranging drug transactions.  Agents observed Ford-Bey providing conspirators with drugs in exchange for cash.

On August 15, 2012, the Texas Department of Public Safety stopped a refrigerated box truck that was transporting thirteen boxes, each containing approximately ten kilograms of cocaine.  The boxes were to be delivered to Ford-Bey in Temple Hills, Maryland.  A controlled delivery of the boxes was arranged.  On August 17, 2012, law enforcement established surveillance at the meeting location in Marlow Heights, Maryland.  A few minutes after the truck arrived at the meeting location, a vehicle registered to Ford-Bey at a Mitchellville address arrived at the location.  Law enforcement observed the truck driver and Ford-Bey unloading the drugs into Ford-Bey’s vehicle. As Ford-Bey left the area, he was pursued by law enforcement officers. Ford-Bey abandoned the vehicle in the median on I-495 and ran away.  Agents recovered Ford-Bey’s vehicle, the cocaine, cell phones, and other evidence from the vehicle.

Based upon review of the documents in the vehicle and further investigation, agents identified another residence for Ford-Bey located in the 2400 block of Pennsylvania Avenue, NW, in Washington, DC.  On the evening of August 17, 2012, officers were at the Pennsylvania Avenue address and saw Ford-Bey in the lobby. Ford-Bey fled dropping a bag that contained prepaid cellphones and other items.  Agents were unable to locate Ford-Bey.  A search warrant of the residence resulted in the seizure of watches and jewelry, and a loaded Glock handgun.  Agents also seized two other vehicles - a 2003 Audi and a 2011 Maserati, both registered to Ford-Bey.

Ford-Bey was arrested on August 16, 2013, during a traffic stop of a vehicle being driven by Ford-Bey’s girlfriend.  A Maryland State Trooper ran the tag and determined the vehicle was registered in the name of the driver and Ford-Bey. When the trooper asked Ford-Bey for identification, he identified himself as Jason Green and presented a New Jersey driver’s license in that name. The trooper pulled up the warrant photograph for Ford-Bey, positively identified him as Ford-Bey, and placed him under arrest.

On October 1, 2013, a search warrant was executed at the apartment of a co-conspirator that Ford-Bey and co-conspirator Anthony Tatum 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 Ford-Bey and Tatum.

In an effort to disguise and hide their drug proceeds, Ford-Bey, Tatum and others created numerous business entities, 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.  Between 2008 and 2011, Ford-Bey deposited drug proceeds into business bank accounts he owned or controlled.  Ford-Bey used drug proceeds to purchase a 2007 Lexus for his girlfriend, a 2011 Land Rover vehicle for $65,749.  Ford-Bey also purchased jewelry and used the drug proceeds to pay rent for his apartment and for travel expenses, among other things.

The government contends that over the course of the conspiracy Ford-Bey distributed approximately 1,710 kilograms of cocaine.

Four defendants, including Ford-Bey were convicted federally for their participation in the conspiracy.  Co-conspirators 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 12 years in prison and 45 months in prison, respectively. Anthony Torrell Tatum, age 36, of Arlington, Virginia, also pleaded guilty and is scheduled to be sentenced on July 7, 2015.

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 – After four days of trial, Jeffrey Brian Cohen, age 39, of Reisterstown, Maryland, pleaded guilty late today, to wire fraud, aggravated identity theft, making false statements to an insurance regulator, and obstruction of justice.

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); Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division.

U.S. Attorney Rod Rosenstein stated, “Jeffrey Cohen carried out a massive fraud scheme for which he finally will be held accountable.”

According to his plea agreement, Cohen acted as the president and chairman of the board of a Delaware corporation Indemnity Insurance Corporation RRG (Indemnity).  Cohen previously controlled a District of Columbia corporation called Indemnity Insurance Corporation of DC, Risk Retention Group (Indemnity-DC), which was a predecessor entity to Indemnity.  Both companies were located in Sparks, Maryland, and provided general liability insurance, liquor liability insurance, and excess liability insurance coverage to their customers, which were individuals and companies involved in the entertainment industry, such as nightclubs, concert tours, and special events.  Both companies operated in several states, including Maryland. From 2008 through 2012, Indemnity insured more than 3,000 policyholders, and collected over $100 million in premiums.   

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

Cohen admitted that he obtained and attempted to obtain money from insurance policyholders and potential insurance policyholders of Indemnity-DC and Indemnity based on financial ratings, financial audits, and insurance regulatory approvals that Cohen fraudulently obtained.  Beginning in January 2008, and continuing until the fall of 2013, Cohen defrauded insurance policyholders and prospective insurance policyholders in order to obtain more than $100 million in insurance premiums, by falsely representing the financial status of Indemnity-DC, Indemnity, and other Cohen controlled entities to insurance policyholders, prospective insurance policyholders, the rating agency A.M. Best, to independent auditors, the DC Insurance Commissioner, and the Delaware Insurance Commissioner.

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

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

The Delaware Insurance Commissioner instituted civil proceedings against the Cohen companies in June 2013.  In October 2013, two attorneys referred Cohen’s criminal offenses, including the false statements to an insurance regulator offense to which he’s pleading guilty, to federal authorities.  On February 20, 2014, Cohen threated one of the attorneys who had referred his case in an effort to prevent the attorney from communicating with federal law enforcement concerning the crimes Cohen committed in the operation of his insurance companies.

Cohen faces a maximum sentence of 20 years in prison for each of the wire fraud and obstruction of justice counts, 15 years in prison for making false statements to an insurance regulator, and a mandatory two years, consecutive to any other sentence, for aggravated identity theft.  U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for August 6, 2015, at 10:00 a.m.  Cohen remains detained.

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

Baltimore, Maryland – Following an investigation of firearms trafficking in Baltimore City, a federal grand jury has indicted five defendants in three separate cases, on firearms related charges including: unlawful possession of an unregistered firearm; possession of a firearm and/or ammunition by an illegal alien, possession and sale of a stolen firearm and being a felon in possession of a firearm. The indictments were returned on June 3, 2015, and unsealed upon the arrest of the defendants.

The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Anthony W. Batts of the Baltimore Police Department.                      

“These cases resulted from an intensive ATF investigation of firearms trafficking in Baltimore City,” said U.S. Attorney Rod J. Rosenstein. “Federal agents are working with police and prosecutors to stop the flow of guns into Baltimore.”

According to their indictments David Boj-Perez, a/k/a “David Salomon Boj,” and “Daniel,” age 31; Estelle Julia Lewis, age 28; and Philip Samuel Simmons, age 39, all of Baltimore, illegally possessed an unregistered firearm, specifically, a sawed-off 12 gauge shotgun.  They each face a maximum sentence of 10 years in prison.

In a separate indictment, Kevin Mauricio Guzman Rivera, age 21, and Raymond Escobar, a/k/a “Ray,” age 35, both of Baltimore, are charged with possession of a firearm by an illegal alien, and being a felon in possession of a firearm, respectively, in addition to drug conspiracy and related charges. Rivera faces a maximum sentencing of 10 in prison for possession of a firearm by an illegal alien.  Escobar also faces a maximum of 10 years in prison for being a felon in possession of a firearm. Rivera and Escobar also face a maximum sentence of 20 years in prison for possession with intent to distribute controlled substances, and for the drug conspiracy. 

The defendants had an initial appearance in U.S. District Court in Baltimore.  Boj-Perez and Escobar are detained.  Rivera was already in custody and remains detained. Simmons and Lewis were detained pending detention hearings scheduled for Monday, June 8, 2015.

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, HSI-Baltimore, and Baltimore Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Kenneth S. Clark and Special Assistant U.S. Attorney Christopher Flagg, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who are prosecuting these Organized Crime Drug Enforcement Task Force cases.

Baltimore, Maryland – Avery Terry, age 23, of Laurel, Maryland, pleaded guilty today to commercial robbery, using and brandishing a firearm during a crime of violence, and accessory after the fact to a second robbery resulting in death.                    

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Gary Gardner of the Howard County Police Department; and Howard County State’s Attorney Dario Broccolino.

According to Terry’s plea agreement, on January 21, 2014, Terry and another individual robbed the CVS Pharmacy in Elkridge, Maryland, at gun point stealing approximately $200.  A store video camera recorded the robbery, including the distinctive clothing worn by the robbers.  The gun used during the robbery belonged to Terry, who texted a picture of himself holding the handgun two days before the robbery.  Terry had a previous felony conviction for drug distribution and was prohibited from possessing a gun or ammunition.

On January 26, 2014, Howard County Police executed an arrest warrant for the suspected shooter in a January 23, 2014 robbery and homicide of a drug dealer.  Law enforcement saw Terry the suspected shooter leaving the alleged shooter’s home.  The two got into Terry’s car.  Police conducted a traffic stop and arrested the suspected shooter.  A black .38 caliber revolver (different from the gun used in the CVS robbery) was found under the driver’s seat where Terry was driving.  Ammunition was also found in Terry’s car.

A Howard County detective who was investigating the CVS robbery was also participating in the execution of the arrest warrant that day.  The detective noticed clothing in Terry’s car that matched the distinctive clothing worn by the robbers.  After being advised of his rights, officers interviewed Terry regarding the gun found in his car.  A search warrant was also executed at Terry’s home and law enforcement recovered a mask and other clothing matching that worn by one of the CVS robbers.

After Terry’s arrest, Howard County Police monitored Terry’s jail calls, including a call in which he asked his mother to get his employer to provide a false alibi for him at the time of the CVS robbery.  Terry’s mother called the employer and asked him to provide the alibi, but the employer refused and promptly reported the call to police.  Cell site data from Terry’s phone revealed that it was used to send calls or data through a cell tower location near the CVS Pharmacy at the time of the robbery.

Subsequent investigation revealed additional information concerning Terry’s knowledge of the January 23, 2014, robbery/homicide.  Call records show that between January 21 and January 26, 2014, Terry had frequent and regular telephone communication with two individuals charged with that crime.  The alleged shooter is facing murder charges in Howard County Circuit Court. A second alleged co-conspirator is charged federally for his role in the robbery and murder.  In addition, Terry admitted that at the time of the suspected shooter’s arrest in Terry’s car, they were attempting to get rid of the murder weapon.

Terry faces a maximum penalty of 20 years in prison for the robbery, a mandatory minimum sentence of seven years and up to life in prison for using and brandishing a firearm during a crime of violence, and a maximum of 10 years in prison for being an accessory after the fact.  U.S. District Judge George L. Russell, III has scheduled sentencing for September 11, 2015, at 2:00 p.m.

United States Attorney Rod J. Rosenstein commended the ATF, Howard County Police Department and Howard County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Zachary A. Myers, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge George Jerrod Hazel sentenced Carmen Johnson, age 48, of Gambrills, Maryland, late yesterday to 57 months in prison followed by five years of supervised release for conspiracy, wire fraud and making a false statement on a loan application, arising from two residential mortgage fraud schemes.  Judge Hazel also entered an order that Johnson pay $2,315,660.94 in restitution.

 The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; Acting Special Agent in Charge James Murray of the United States Secret Service – Washington Field Office; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

According to the evidence presented at her seven day trial, in the first scheme, which operated from March 2007 to November 2008, Johnson conspired with real estate agent Edgar Tibakweitira and others to fraudulently obtain residential mortgage loans by making false statements during the loan application and approval process. In the second scheme, witnesses testified that between April and July 2008 Johnson conspired with real estate agent Nsane Phanuel Ligate and others in a similar mortgage fraud scheme involving two properties in Baltimore.

Johnson owned and operated CJ Lending and its predecessor Able Estate & Company, which provided credit repair services.  Witnesses testified that in both schemes Carmen Johnson reported to credit bureaus and provided her fellow co-conspirators with false credit histories showing backdated lines of credit that were used to convince lenders to give mortgage loans. As part of both schemes, Johnson’s co-conspirators used stolen or false identity information, false documents – including W-2 forms, earnings and banks statements – and false credit information to induce lenders to provide mortgage loans to straw purchasers.  Johnson’s co-conspirators also inflated the sales prices of the properties by creating false documents for repairs and renovations that were never made.  After the settlement, the conspirators divided up the cash received for the purported repairs.

As a result of both schemes, losses to financial institutions totaled $2,309,646.

Co-conspirators Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland, Flavia Makundi, age 42, of Severn Park, Maryland, Ayoub Luziga, age 35, of Bowie, Maryland, Raymond Abraham, age 48, of Silver Spring, Maryland, Mokorya Cosmas Wambura, age 42, of Takoma Park, Maryland, Abdallah Suleiman Kitwara, age 44, of Bowie, Maryland, have pleaded guilty to their roles in the first scheme. Tibakweitira was sentenced to 57 months in prison and ordered to pay restitution of $2,482,856.05. Luziga was sentenced to 21 months in prison and ordered to pay restitution of $999,726.  Kitwara was sentenced to 15 months in prison and ordered to pay $290,954 in restitution.  Abraham was sentenced to 33 months in prison and ordered to pay $999,726 in restitution.  Annika Boas, age 37, of Mount Rainier, Maryland, was convicted after trial and sentenced to 27 months in prison and ordered to pay restitution of $511,147.  Makundi was sentenced to time served.

Nsane Phanuel Ligate, age 42, of Ashburn, Virginia, Cane Mwihava, age 43, of Bowie, Maryland, Larry Johnson, age 58, of Capital Heights, and Gladyness Silaa, age 36, of Bowie, Maryland have also pleaded guilty to their roles in the second mortgage fraud scheme.  Larry Johnson was sentenced to eight months in prison consecutive to the current sentence he is serving on an unrelated case and ordered to pay restitution of $352,091.  Silaa and Mwhihava were each sentenced to six months home detention, and Ligate was sentenced to five months home detention.

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 praised HUD-OIG, FHFA-OIG, Treasury OIG, U.S. Secret Service and HSI Baltimore for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin Di Gregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Johnny Devon Snow, age 20, today to 150 months in prison, followed by three years of supervised release, for his role in the armed robberies of three 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; and Chief Gary Gardner of the Howard County Police Department.

According his plea agreement, from May 1, 2014 through June 24, 2014, Johnny Snow, his brother Justin Snow, their cousin Taylor Snow and Arkeene Redditt-Abrams conspired to rob three cell phone stores.  The defendants planned to steal cash, cell phones and other electronic communications devices, and tablet computers; and that they planned to sell the stolen merchandise.  As part of the plan, the defendants determined which firearms were used in the commission of the robberies; conducted surveillance of the targeted stores; wore face masks, hooded jackets and gloves to conceal their identities; and used plastic trash bags to carry the stolen items from the stores.

Specifically, on June 17, 2014, the defendants used a car rented by Taylor Snow to travel to an AT&T store on Dual Highway in Hagerstown.  Taylor Snow entered the store to to find out how many people were in the store and whether there were any security cameras.  She was talking on ta cell phone as she entered.  Less than a minute later Johnny and Justin Snow entered the store, and Justin Snow brandished a firearm in an attempt to rob an employee of the store. Johnny Snow stood near the door and Redditt-Abrams remained in the car, which was parked outside.  The defendants realized the store had cameras, left the store and fled in the waiting car.

A few hours later the defendants drove the rented car to an AT&T store in Ellicott City, Maryland. Redditt-Abrams entered the store to “case” it.  After he left the Snows entered the store, with Justin Snow again brandishing a gun. They stole cash, cell phones and tablet computers worth more than $18,000.  Surveillance video at an adjoining gas station captured images of Taylor Snow’s car at the gas pumps and while it was parked in front of the AT&T store.  The video showed Redditt-Abrams entering and leaving the store, then shows three people exiting the car and entering the store.  A short time later three people run from the store and get back into the car.

Further, after Johnny Snow’s arrest on June 24, 2014, Justin and Taylor Snow traveled to Mechanicsburg, Pennsylvania, where they used a gun to rob a T-Mobile store of cash, cell phones and tablet computers.

Justin Jose Snow, a/k/a “J.O.,” age 22; Taylor Yvonne Snow, age 22; and Arkeene Antoyn Redditt-Abrams, a/k/a “Duke,” age 26, all of Baltimore, previously pleaded guilty to their roles in the robberies.  Taylor Snow was sentenced to nine years in prison.  Justin Snow is scheduled to be sentenced on June 30, 2015 and Redditt-Abrams is scheduled to be sentenced on August 15, 2015.  They remain detained.

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

Greenbelt, Maryland – Michelle Lee Davis, age 37, of Laurel, Maryland pleaded guilty today to criminal contempt.

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; and Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office.

Davis was an employee of the U.S. Probation and Pretrial Services for the District of Maryland from February 1998 to October 2014.  In recent years, including in April 2014, Davis served as an administrative technician with the Pretrial Services office in Greenbelt, in which she conducted record and criminal history checks of new defendants, scheduled initial appearances with a U.S. magistrate judge, and opened and closed files related to defendants on pretrial release.

According to her plea agreement, on March 24, 2014 a magistrate judge ordered the sealing of an indictment that charged two defendants with a drug conspiracy. The initial appearance of one of the charged defendants was held on April 15, 2014, at which time Davis learned of the defendant’s identity.  Davis did not disclose to her supervisors or colleagues that she knew the defendant.  During two telephone conversations that day, Davis disobeyed and resisted the court order sealing the indictment by disclosing the existence and details of the sealed indictment and the identity of the defendant charged in the sealed indictment, to an acquaintance of Davis and the defendant.

U.S. District Judge Peter J. Messitte has scheduled sentencing for September 18, 2015 at 9:30 a.m., at which time Davis faces a sentence of a fine or imprisonment, or both, within the court’s discretion.

United States Attorney Rod J. Rosenstein commended the FBI and DEA for their work in the investigation.  Mr. Rosenstein praised the U.S. Probation and Pretrial Services for their assistance in the investigation, and thanked Assistant U.S. Attorneys Kelly O. Hayes and Arun G. Rao, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Stanley Duryea Johnson, age 60, of Baltimore today to 20 years in prison followed by three years of supervised release for robbery and using a gun during the robbery.  Judge Garbis also entered an order that Johnson pay restitution of $93,000.

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; Anne Arundel County Police Chief Tim Altomare; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, on June 18, 2013, a driver of a prescription drug van was waiting for a pharmacy to open at a parking lot on Reisterstown Road in Baltimore.  The van contained $93,000 worth of pharmaceutical drugs, which the driver planned to deliver at a number of locations that day.  Johnson approached the van, ordered the driver to move to the passenger seat, and began driving the van.  Johnson eventually left the driver on the side of the road and drove off in the van.

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

Greenbelt, Maryland – A federal grand jury has indicted the following defendants on charges arising from a bank fraud scheme:  

Brian Edward Diggs, a/k/a “Bryan Diggs” and “Big Poppa,” age 43, of Brandywine, Maryland; Patricia Yvonne Diggs, a/k/a “Patricia Yvonne Johnson,” and “Patricia Yvonne Holmes,” age 48, of Brandywine Maryland; Rechelle Deborjah Fowler, a/k/a “Rechelle Fowler-Jones,” and “Daisy Fowler,” age 45, of Waldorf, Maryland; Brian Dominique Wilson, age 23, of Brandywine; Robert Anthony Fitzgerald Lathan, age 37, of Accokeek, Maryland; and
Derrick Kwan Byas, Jr., age 26, of Baltimore.

The indictment was returned on April 29, 2015 and partially unsealed today upon the arrests of four defendants.

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

“The defendants allegedly submitted fake documents and false information to obtain car loans, defrauding lenders of more than $1 million,” said U.S. Attorney Rod J. Rosenstein. “The defendants also allegedly agreed to sell vehicles to other people and took their money but did not provide the cars. The charge of ‘aggravated identity theft” – using someone else’s identity to commit a crime – carries a mandatory sentence of two years in federal prison, in addition to the penalty for the fraud offense.”

Brian Diggs owned Big Boi Auto Sales LLC, Showcase Auto Sales, Inc., Car Wiz, Inc. and Auto Dupo of Waldorf LLC.  Robert Lathan owned Total Computer Solutions, Inc. 

According to the two count indictment, from January 2009 to April 29, 2015, the defendants and others created shell entities purporting to be legitimate businesses, including the businesses identified above.  The defendants applied for vehicle loans with financial institutions and lenders using false information as to employment history at the shell entities, addresses, dates of birth and social security numbers.  They created and submitted fake documents, such as lien releases, utility bills, paystubs, letters of recommendation and a police report. The defendants often applied for vehicle loans on the same vehicle with different lenders.  They sold the vehicles, obtained money from the sales and then did not provide the vehicles to the buyers.  They deposited the loan funds into bank accounts and cashed loan checks at liquor stores.  The defendants failed to pay the vehicle loans, which often resulted in the vehicles being repossessed by the lenders.

As a result of the scheme, the lenders lost over $1 million.

The defendants face a maximum sentence of 30 years in prison for conspiring to commit bank fraud and a mandatory minimum of two years in prison for aggravated identity theft consecutive to any other sentence.  An initial appearance was held today for Fowler, Wilson and Lathan in U.S. District Court in Greenbelt and they were released under the supervision of U.S. Pretrial Services. Patricia Diggs also had an initial appearance today and was detained pending a detention hearing on Thursday, June 4, 2015.  Byas remains detained on state charges.  Brian Diggs is expected to have an initial appearance on June 3, 2015.

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

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

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and Joseph R. Baldwin, who are prosecuting the case.

Baltimore, Maryland – A federal grand jury has returned two indictments charging five Baltimore City Department of Public Works (DPW) employees and six commercial trash haulers with conspiracy and other charges, including bribery and theft, related to two schemes to defraud the City of Baltimore through the operation of the DPW waste management services.  Two employees are charged in both indictments.  The indictments were returned on May 28, 2015 and unsealed today.

“The first indictment alleges that trash haulers paid bribes to landfill employees in exchange for not charging dumping fees, which cheated the city of almost $6 million. The second indictment charges that landfill employees stole scrap metal that the city would have sold for almost $1 million,” said U.S. Attorney Rod J. Rosenstein. “The Baltimore City Inspector General brought these allegations to the attention of federal authorities and assisted in the investigation.”

The first indictment alleges that over a 14-year period three DPW employees solicited and accepted cash payments from at least six private commercial haulers in return for not charging them or their companies the required disposal fees for trash dumped at the Baltimore City Quarantine Road Landfill. The second indictment alleges that over a 9-year period four DPW employees falsely represented on their daily time sheets that they were performing the jobs for which they were hired when, in fact, those employees used their paid positions to engage in a private enterprise for personal gain by selling scrap metal dumped at Baltimore City trash collection sites.

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

The Department of Public Works’ Bureau of Solid Waste

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 Quarantine Road Landfill (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, also referred to as a “tipping fee.”  The disposal fee applies to the net weight of the trash deposited at the Landfill.

U.S. v. Washington, Et Al., Criminal No. MJG-15-0303

The 44-count indictment alleges that from approximately 2001 until May 2015, DPW employees sought and accepted cash payments from commercial haulers in return for allowing the commercial haulers to deposit trash at the Landfill without paying the required disposal fees.

The indictment charges:

            Tamara Oliver Washington, age 54, of Baltimore;             Williams Charles Nemec, Sr., age 55, of Baltimore;             Charles Dennis Bolden, Sr., age 68 of Baltimore;             Adam Williams, Jr., age 52, of Randallstown;             Mustafa Sharif, age 63, of Baltimore;             Larry Lowry, age 61, of Orchard Beach, Maryland;             Quentin Turgot Glenn, age 49, of Hanover, Maryland;             Jessie Lee Wilson, Jr., age 40, of Baltimore;             John Howard Brady, age 73, of Glen Burnie.

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. Nemec was initially employed by the DPW as a scale house operator at the Landfill and Northwest Transfer Station, and then later promoted to solid waste supervisor.  Bolden was employed as a laborer at the Landfill. 

Williams, Sharif, Lowry, Glenn, and Brady all had commercial trash hauling businesses in Maryland. Wilson was employed by Glenn.

Specifically, the indictment alleges that the DPW employees allowed the commercial haulers to enter the Landfill with truckloads of trash – sometimes multiple times a day - without activating the computerized truck scales and point-of-sale system, ensuring that there would be no record of the commercial haulers’ use of the Landfill.  In exchange, the commercial haulers paid cash bribes to the DPW Employees, ranging from approximately $50 to $100 per Landfill visit. According to the indictment, the bribes were delivered on a daily or weekly basis to the DPW employees in folded paper through the scale house window or dropped off in envelopes at designated times and places outside the Landfill. The DPW employees allegedly divided the cash payments from the commercial haulers among themselves.  The payments were approximately 20% to 30% of what the commercial haulers would have otherwise had to pay to use the Landfill.  The indictment alleges that when the commercial haulers’ trucks drove onto the outbound scale after dumping their loads of trash, DPW employees handed the truck drivers fraudulent receipts, usually in the form of white scrap paper or a blank receipt, to maintain the pretense that the trucks had been weighed and appropriately charged for using the Landfill. 

The indictment alleges that the ongoing relationship between the commercial haulers and DPW employees resulted in a loss of revenue to the DPW and the City of Baltimore of approximately $6,000,000.   

The defendants each face a maximum sentence of five years in prison for the conspiracy; and all but Bolden also face a maximum of 10 years in prison for each count of bribery. Washington, Nemec and Bolden face a maximum of 20 years in prison for each count of extortion.

U.S. v. Hazelton, Et Al., Criminal No. MJG-15-0302          

The 18-count indictment alleges that from approximately 2005 through March 2015, Jarrod Terrell Hazelton, age 32, of Parkville, Maryland; Michael Theodore Bennett, age 46, of Baltimore; Bolden and Nemec, conspired to unlawfully sell scrap metal from the Landfill and NWTS, while falsely representing to DPW that they were performing the jobs for which they were hired.         

The defendants are all employed by DPW at either the Landfill or the NWTS.  According to the indictment, the defendants and others used their personal cell phones during work shifts to let each other know when and where recyclable scrap metals were being dumped at the Landfill and NWTS. Hazelton and Bennett used their personal pick-up trucks during work hours to collect the scrap metal and transport it to a private salvage company, frequently making multiple trips during an eight-hour work shift. Hazelton and Bennett sold the scrap metal for as much as $300 per truckload, resulting in a loss of revenue to the City totaling approximately $893,000.

Hazelton and Bennett allegedly used part of the proceeds of the sale of the scrap metal to pay a fee to Bolden and other DPW employees for their help locating, setting aside, collecting and loading the scrap metal onto their trucks.  According to the indictment, Hazelton and Bolden also paid Nemec in return for allowing them to collect and transport scrap metal from the Landfill. The indictment alleges that the defendants prepared and submitted false time and attendance records, which claimed they had been working, when they were instead illegally collecting and selling the scrap metal, called “junking.”  For Hazelton and Bennett, this allegedly resulted in approximately $60,000 in wages being paid to them for work they did not perform. 

The indictment charges Hazelton with filing false tax returns for tax years 2011 through 2014, by failing to report a total of $537,554 in income.  Bennett is charged with failing to file tax returns for tax years 2011, 2012, and 2013, even though he had reportable income of at least $180,834, $152,494, and $146,154, respectively.

Finally, the indictment seeks the forfeiture of $953,000, alleged to be the value of the property stolen or obtained by fraud.

The defendants each face a maximum sentence of five years in prison for the conspiracy. Hazleton, Bennett and Nemec each face a maximum of 20 years in prison for wire fraud; and Hazleton, Bennett and Bolden also face a maximum of 10 years in prison for each count of theft from a government program. Hazleton faces a maximum of three years in prison for each of four counts of subscribing to a false tax return and Bennett faces a maximum of one year in prison for each of three counts of failure to file a tax return.

An initial appearance is scheduled at 2:30 p.m. today for Brady, Williams, Sharif, and at 3:00 p.m. for Glenn, Lowry, and Wilson in U.S. District Court in Baltimore.  Washington, Nemec, Bolden, Hazelton, and Bennett had an initial appearance on the charges in their previous criminal complaints, and are released under the supervision of U.S. Pretrial Services. They are expected to be arraigned on the charges in the indictments in the next few weeks.

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, 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.