District of Maryland

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Shawn Hearn, age 42, of Baltimore, Maryland today to 151 months in prison, followed by three years of supervised release, for possession with intent to distribute approximately 10 kilograms of heroin.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.

According to his plea agreement, on September 25, 2014, the Baltimore Police Department Ceasefire unit executed a search warrant at Hearn’s home in the 2500 block of Oakley Avenue, in Baltimore.  Hearn drove up in his vehicle, but was stopped prior to entering the home. Hearn was shown a copy of the signed search warrant, and then stated, “yeah, I got something.”  When asked by the officers, what he had, Hearn replied, “some heroin.”  Hearn took the officers to his bedroom and directed the officers to the location in the room where officers recovered approximately 10 kilograms of heroin and approximately $825,000 in cash.  The street value of the heroin was approximately $10 million.  The officers also recovered various items used in the processing of heroin for distribution including approximately 70 bars of mannite, a heroin diluent.

 According to court documents, in 2000 Hearn was also convicted of a federal drug trafficking charge.  In that case Hearn was in possession of approximately 1.5 kilograms of cocaine, as well as 80 grams of crack cocaine.  Hearn was sentenced on December 6, 2000 to 110 months in prison, followed by four years of supervised release, which he completed in 2011.

United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney James T. Wallner, who prosecuted the case.

Baltimore, Maryland - A federal grand jury has returned three indictments charging a total of 16 individuals with drug conspiracy and other charges for operating purported pain management clinics that the indictments allege were actually “pill mills.” The indictments were returned on May 20, 2015, and unsealed late yesterday upon the arrest of eight defendants.  In addition to yesterday’s arrests, agents executed search warrants at 14 locations, including clinics, pharmacies and residences.

The indictments were 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; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Chief Gary Gardner of the Howard County Police Department; Charles County Sheriff Troy Berry; St. Mary’s County Sheriff Tim Cameron; Chief Mark A. Magaw of the Prince George’s County Police Department; Calvert County Sheriff Mike Evans; Chief Cathy L. Lanier of the Metropolitan Police Department; and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police. 

“Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper medical supervision and without valid medical need,” said U.S. Attorney Rod J. Rosenstein.  “Abuse of oxycodone is one of our most significant drug enforcement challenges, and it is a direct cause of the epidemic of heroin overdose deaths.”

“These indictments, search warrants, and subsequent arrests show that DEA is dedicated to dismantling “pill-mill” operations.  When prescriptions are obtained through rogue pain management clinics and then sold on the streets, it creates and feeds a new generation of users and addicts,” stated DEA Special Agent in Charge Karl C. Colder.  “These addicts will continue to abuse the illegal prescriptions, or switch to a cheaper and more potent drug; heroin.  DEA and its partners will continue to work vigilantly to stop this dangerous trend,” stated SAC Colder.

“Prescription drug diversion schemes undermine public health and divert Medicare and Medicaid funds meant to pay for legitimate health care,” said Special Agent in Charge Nick DiGiulio, of the U.S. Department of Health and Human Services, Office of Inspector General.  “Today’s arrests show the commitment of the Office of Inspector General and our law enforcement partners to protecting both the public’s health and the integrity of federal health care programs.”

Each of the three indictments alleges that the owners operated the purported pain management clinics as “pill mills,” which routinely engaged in the practice of prescribing and dispensing controlled substances - primarily oxycodone - outside the scope of professional practice and without a legitimate medical purpose. The owners kept the profits from the pill mill operations and from the sales of oxycodone in cash.  According to the indictments, the owners recruited “distributors” and “runners” to visit their clinics so that they would profit from the cash fees charged for an office visit.  Runners are recruited - usually by a distributor - to enter pill mill clinics with fictitious complaints of pain in order to obtain prescriptions for oxycodone and other controlled substances.  Typically, runners filled the prescription and gave the oxycodone tablets they received to the distributor.  Runners were typically paid in either cash or oxycodone tablets for their services.  The distributors then generally sold the pills for a profit.

The indictments allege that the owners of the pill mill clinics required runners to have certain “paperwork,” generally an MRI report and a prescription history, which would be kept in the patient’s file to support a false claim that there was a medical need for the prescription of oxycodone.  The owners or other conspirators created false paperwork for runners who were unable to obtain MRI reports or prescription histories that would provide a basis for requesting a prescription for oxycodone.  Conspirators took steps to circumvent the state prescription drug monitoring programs (PDMPs) in order to ensure that runners and distributors would not be prevented from obtaining multiple prescriptions from different doctors at the same time. For example, conspirators directed distributors and runners to fill prescriptions in Washington, DC, which did not have an active PDMP, or in states other than Maryland that had active PDMP systems (such as Delaware and Virginia)   because individual state PDMPs were not connected so prescriptions filled in those states would not show up in the Maryland PDMP system.  Members of the conspiracies also kept track of which pharmacies had supplies of oxycodone and were willing to fill prescriptions for runners.

 

U.S. v. Russell Et Al. Criminal No. 15-0288

This indictment charges the following 13 individuals with conspiracy to distribute and possess with intent to distribute oxycodone:

Donald Russell, age 51, of Waldorf, Maryland; Bruce Kevin Lewis, age 52, of Deale, Maryland; Danielle Silberstein, age 31, of Waldorf; Peter Snyder, age 34, of Ocean City, Maryland; Robert Long, age 34, of Mechanicsville, Maryland; Jamie Davis, age 28, of LaPlata, Maryland; Ronald Tennyson, age 32, of Mechanicsville; Terrell Downing, age 25, of New Carrollton, Maryland; John Fields, age 62, of Temple Hills, Maryland; Ronald Rust, age 44, of Alexandria, Virginia; Ronald Kans, age 41, of LaPlata; Walter Moffett, age 51, of Chestertown, Maryland; and
Melissa Catlett, age 38, of King George, Virginia.

The indictment alleges that from February 2014 through May 2015, Russell and Lewis owned and operated PG Wellness Center, LLC (PG Wellness), and A Plus Pain Clinic, LLC (A Plus Pain), purported pain management clinics located in Oxon Hill, Maryland and Washington, D.C., respectively.  According to the indictment, PG Wellness and A Plus Pain were actually pill mills.  The indictment alleges that defendants Silberstein, Snyder, Long, Downing, Rust, Kans, and Moffett each acted as distributors who brought a number of runners to the clinics.  Davis and Tennyson allegedly were runners and worked with Long to fund additional visits to pill mill clinics and distribute the pills obtained during those visits.  According to the indictment Fields was a runner who dealt directly with Russell to obtain oxycodone pills and distribute them, and co-defendants Silberstein and Catlett regularly purchased bulk quantities of oxycodone pills from Russell.

The indictment also charges Russell, Fields, and Moffett with health care fraud for submitting or causing to be submitted health insurance claims seeking reimbursement for fraudulent prescriptions, in that the prescription was not for a legitimate medical need.  Further, the indictment seeks the forfeiture of $1,200,000, several vehicles and bank accounts. This estimates that, during one month of operation, A Plus Pain and PG Wellness would see at least four hundred patients, each receiving at least 100 oxycodone 30 mg pills, a total of 40,000 pills.  The street value of each pill is estimated at $30 per pill, the equivalent of $1,200,000.

U.S. v. Mori and Dalton, Criminal No. 15-0287

This indictment charges Alex Mori, age 29, of Nanjemoy, Maryland, and Thomas Dalton, age 29, of Waldorf, with conspiracy to distribute and possess with intent to distribute oxycodone.  The indictment alleges that from November 2013 through May 2015, Mori and Dalton operated First Priority Health Care, LLC, a purported pain management clinic located in Elkridge, Maryland.  According to the indictment, First Priority was a pill mill.  The indictment also seeks the forfeiture of $600,000 and property in Nanjemoy, Maryland. This estimates that, during one month of operation, First Priority would see at least two hundred patients, each receiving at least 100 oxycodone 30 mg pills, a total of 20,000 pills.  The street value of each pill is estimated at $30 per pill, the equivalent of $600,000.

U.S. v. Joyce Vercauteren, Criminal No. 15-284

This indictment charges Joyce Vercauteren, age 41, of Clinton, Maryland, with conspiracy to distribute and possess with intent to distribute oxycodone.  According to the indictment, from May 2014 through May 2015, Vercauteren owned and operated MPC Wellness Center, LLC (“MPC Wellness”), a purported pain management clinic located in Greenbelt, Maryland.  The indictment alleges that, in reality, MPC Wellness operated as a “pill mill.”  Further, the indictment seeks the forfeiture of $1,200,000, and a vehicle. This estimates that, during one month of operation, MPC Wellness would see at least four hundred patients, each receiving at least 100 oxycodone 30 mg pills, a total of 40,000 pills.  The street value of each pill is estimated at $30 per pill, the equivalent of $1,200,000.

 

The defendants in all three indictments face a maximum sentence of 20 years in prison and a $1 million fine for the drug conspiracy. Russell, Fields, and Moffett also face a maximum of 10 years in prison for health care fraud.

Russell, Lewis, Silberstein, Snyder, Mori and Vercauteren had initial appearances on May 27, 2015 in U.S. District Court in Baltimore and were detained, pending detention hearings scheduled today.  Rust also had his initial appearance on May 27, 2015 and was released under the supervision of U.S. Pretrial Services. Moffett will have his initial appearance today.  Kans and Fields are expected to turn themselves in and will also have an initial appearance later today.  Dalton, Long, Davis, Tennyson, Downing and Catlett are still being sought.

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 investigation is continuing and additional charges are expected.

United States Attorney Rod J. Rosenstein praised the DEA Tactical Diversion Squads from Baltimore and Washington DC., HHS-Office of Inspector General, Howard County Police Department, Charles County Sheriff’s Office, St. Mary’s County Sheriff’s Office, Prince George’s County Police Department, Calvert County Sheriff’s Office, Metropolitan Police Department, and Virginia State Police for their work in this pharmaceutical investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and Joshua Ferrentino, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – Gregory Cooper, 59, of Glenn Dale, Maryland, a former U.S. Postal Service contracting officer, pleaded guilty today to receiving bribes in connection with the awarding of contracts to deliver the mail.

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

According to a factual stipulation filed with the court, Cooper engaged in a course of conduct that consisted of corruptly demanding, seeking, receiving, accepting, and agreeing to receive and accept a stream of benefits from a co-defendant who owned ER&R Transportation and MC&G Trucking LLC, which bid on and secured transportation contracts with the Postal Service for the delivery of the mails.  The stream of benefits to Cooper from the co-defendant included $15,900 in cash and the payment of a $7,355 tuition bill for Cooper’s daughter. Total payments to or benefitting Cooper amounted to nearly $26,000.

Cooper admitted that in exchange for these payments, he gave favorable consideration to bids submitted by ER&R Transportation and MC&G Trucking LLC for contracts with the Postal Service.  Specifically, as to the nine Postal Service contracts on which the co-defendant bid during the relevant time period, Cooper personally awarded three of those contracts to the co-defendant’s companies, and recommended to his superiors that the other six should likewise be awarded to those companies.  As a result, during the relevant time period, the co-defendant was successful in every bid placed with the Postal Service.

Cooper faces a maximum sentence of 15 years in prison for accepting a bribe as a public official.  U.S. District Judge George J. Hazel has scheduled sentencing for September 3, 2015 at 10:00 a.m.

U.S. Attorney Rosenstein and Assistant Attorney General Caldwell commended the U.S. Postal Service Office of the Inspector General for its work in the investigation.  The case is being prosecuted by Assistant U.S. Attorney Arun G. Rao and Trial Attorneys Maria Lerner and Mark Cipolletti of the Criminal Division’s Public Integrity Section.   

Baltimore, Maryland – U.S. District Judge Richard D. Bennett has sentenced three co-defendants in a Baltimore area drug conspiracy.  Guy Bordes Agnant, Jr., age 38, of Laurel, Maryland was sentenced today to 10 years in prison, followed by five years of supervised release, for attempted possession with intent to distribute cocaine. On May 27, 2015, Judge Bennett sentenced Antoine DeMarr Washington, age 42, of Washington, D.C. and Donte Eugene Taylor, age 39, of Baltimore, to 12 years in prison and five years in prison, respectively, each followed by five years of supervised release. Washington and Taylor had previously pleaded guilty to attempted possession with the intent to distribute cocaine and heroin.

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

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

Vincent Cooper, age 47, of Washington, D.C., was sentenced to 11 years in prison, for his participation in the drug conspiracy and co-defendant Tavon Alexander Louis Hopkins, age 38, of Baltimore also pleaded guilty and was sentenced to three years in prison.

On March 20, 2015, a federal jury today convicted co-defendants Jermaine Cannady, a/k/a “Main,” age 39; Cornell Dion Brown, a/k/a “Nelly,” age 29; Dominic William Parker, a/k/a “Nick,” age 30, all of Baltimore; and Ronald Timothy Sampson, a/k/a “Little Ronald,” age 35, of Windsor Mills, Maryland for conspiracy to distribute kilograms of cocaine and/or heroin, and for attempting to possess with intent to distribute cocaine and/or heroin. Each faces a mandatory minimum sentence of 10 years in prison and up to life in prison for conspiring to distribute and possess with intent to distribute cocaine and/or heroin, and for attempted possession with intent to distribute cocaine and/or heroin. Judge Bennett has scheduled sentencing for Sampson, Parker, Cannady and Brown on June 24, June 26, June 29, and June 30, 2015, respectively.

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

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Eric Goodall, age 44, of Temple Hills, Maryland today to 13 years in prison, followed by five years of supervised release, for two counts of possessing with intent to distribute one kilogram or more of phencyclidine (PCP), and illegal possession of ammunition by a convicted felon.  Judge Titus also ordered Goodall to forfeit $22,316 seized from his home, a 2013 Porsche Panamera and a 2005 Chevrolet van.

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 Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division

According to his plea agreement, on October 22, 2013, United States Postal Inspectors intercepted a suspicious Express Mail parcel addressed to a residence in Lanham, Maryland.  After obtaining a search warrant for the package, agents found an iced tea jug containing 128 ounces, or approximately 3.6 kilograms, of a PCP mixture.  The next day, agents saw Goodall arrive at the residence, park the Chevrolet van he was driving in the driveway and go into the home.  Agents then conducted a controlled delivery of the package to Goodall. After Goodall accepted the delivery of the package, law enforcement executed a search warrant at the residence and the Chevrolet van agents saw Goodall driving prior to the delivery.  Law enforcement recovered from the van a United States Postal Service receipt for an Express Mail parcel that Postal Inspectors had previously intercepted on August 13, 2013, in California.  That package was found to contain $80,000 in cash.  Goodall was arrested and provided an address in Temple Hills, Maryland, as his current address.

On October 23, 2013, after the controlled delivery, another parcel addressed to the Lanham residence was intercepted by Postal Inspectors.  That package also contained an iced tea jug containing 128 ounces, approximately 3.6 kilograms, of a PCP mixture.  On October 25, 2013, members of law enforcement executed a search warrant at Goodall’s Temple Hills residence and recovered $22,316 in cash, a scale, a grain alcohol bottle, and an iced tea jug with PCP residue.  In addition, inside the master bedroom, law enforcement found a box of .380 caliber ammunition.  Goodall had a previous felony conviction and was prohibited from possessing a firearm or ammunition.

United States Attorney Rod J. Rosenstein praised the FBI and U.S. Postal Inspection Service for their work in the investigation and thanked the Prince George’s County Police Department and Maryland State Police for their assistance.  Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Howard James Clem IV, a/k/a “Jamie,” age 34, of Pasadena, Maryland, today to nine years in prison, followed by lifetime supervised release, for conspiracy to distribute and receive child pornography, and for receipt and possession of child pornography. Clem has been detained since his conviction by a federal jury on January 28, 2015.

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 Anne Arundel County Police Chief Tim Altomare.

According to the evidence presented at Clem’s six day trial, Clem met Erin Elizabeth Mali in a mobile social networking and dating application in September 2012.  Many of the communications exchanged by Mali and Clem, and images Mali sent to Clem focused on graphic sexual conduct involving prepubescent minors.  Mali sent Clem images depicting prepubescent minors engaged in sexually explicit conduct, including a prepubescent female whom Mali and Clem identified by name.

According to witness testimony, on June 3, 2013, the social networking and dating application and website captured the images and communications exchanged by Mali and Clem, including child pornography, which caused a “cybertip” to be generated to the National Center for Missing and Exploited Children.  An investigation by the Anne Arundel County Police Department resulted in a search warrant being executed at Clem’s and Mali’s residences and on their social networking accounts.

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

Erin Elizabeth Mali, age 33, of Arnold, Maryland, previously pleaded guilty to conspiracy to distribute and receive child pornography, and to distribution of child pornography and was sentenced to seven years in prison and lifetime supervised release.

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 and Anne Arundel County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Leo J. Wise, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Theodore Chuang sentenced Christian Diamond Byrd, age 44, of Laurel, Maryland today to 15 years in prison followed by four years of supervised release for distribution of heroin.  Judge Chuang also ordered Byrd to forfeit $440,000, as the proceeds of his drug distribution.

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; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to his plea agreement, Byrd admitted that from May 2012 through September 2014 he regularly distributed heroin in 50 gram and 100 gram quantities.  For example, Byrd sold a confidential source 100 grams of heroin for $11,000 on June 11, 2014, and again on July 9, 2014.  On July 24, 2014, Byrd sold a confidential source 50 grams of heroin for $5,500.  Each transaction took place in Laurel, Maryland and was video and audio recorded.

On October 1, 2014, a search warrant was executed at Byrd’s residence and law enforcement recovered $31,400, including some of the money given to Byrd by the confidential source on June 11th.  Byrd was arrested on October 1, 2014 and agents seized approximately one gram of heroin and $8,510 in cash from Byrd.

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Gregg Lee Purbaugh, age 53, of Baltimore, and his business partner, Kenneth Trainum, age 46, also of Baltimore, today to 18 months in prison and a year and a day in prison, respectively, each followed by three years of supervised release, for conspiring to transport stolen nickel briquettes, which had been imported through the Port of Baltimore.  Judge Quarles also ordered each man to pay restitution of $1 million.

The sentences were 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).

According to their plea agreements, Purbaugh and Trainum opened Bear Creek Warehouse Company in 2006.  Their primary customer was an international mining company that shipped cargo containers of nickel to the Port of Baltimore from its mines outside the United States, then stored the nickel in the Bear Creek Warehouse.  Beginning in 2006, Purbaugh and Trainum began removing the mining company’s nickel from the warehouse, setting it aside to sell later.  In June 2006, Purbaugh approached a co-conspirator to sell the nickel in Pittsburgh, Pennsylvania.  The co-conspirator contacted the owner of a Pittsburgh scrap metal company who agreed to purchase the nickel from the co-conspirator.

Purbaugh sold the co-conspirator a total of 80,000 pounds of nickel worth approximately $1 million, for the scrap metal price of $8 per pound. Purbaugh arranged the delivery of the nickel with the co-conspirator and the scrap metal dealer.  Purbaugh then arranged for his driver, who lives near Pittsburgh, to drive a truck to the warehouse, which Trainum then loaded with the stolen nickel.  Each load typically contained 6,000 pounds of nickel and the shipments took place at least twice a year.  The co-conspirator paid Purbaugh in cash, which he divided with Trainum.

On November 2, 2011, agents from Homeland Security Investigations saw the driver enter the Bear Creek Warehouse parking lot.  Purbaugh unlocked a shipping container adjacent to the warehouse that contained unmarked sacks of nickel briquettes.  Trainum removed one of the sacks of nickel with a fork lift and loaded it onto the truck.  While Trainum was transferring a second bag of nickel, HSI agents intervened and secured the stolen nickel.  During the subsequent search, agents recovered 15 bags containing approximately 30,000 pounds of nickel which had been diverted from the mining company’s shipments.

United States Attorney Rod J. Rosenstein commended HSI Baltimore for its work in the investigation and thanked Assistant United States Attorneys Gregory R. Bockin and Martin J. Clarke, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Kenneth Ray Graham, age 38, of Baltimore, today to 382 months in prison, followed by five years of supervised release, for attempting to commit an armed robbery, possessing and discharging a weapon in furtherance of a crime of violence, and possession of a firearm by a convicted felon.  Graham was convicted by a federal jury on February 12, 2015.

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 evidence presented at Graham’s three day trial, on September 17, 2013, Graham attempted to force his way into a home in the Cherry Hill neighborhood of Baltimore and demanded money.  Witnesses testified that Graham fired three shots into the living room during the attempted robbery.  One of those bullets struck a nine year old boy.  Graham was previously convicted of a felony and as a result was prohibited from possessing a firearm.

Trial evidence included a shoe containing Graham’s DNA left at the robbery location and a matching shoe also containing his DNA along the escape route.  At the time of his arrest, Graham also had gunshot residue on his hand.

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

Greenbelt, Maryland - Richard A. Brennan, age 42, of Clarksburg, Maryland, pleaded guilty today to two counts of mail fraud, and to making a false statement on a tax return.

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; 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; and Maryland Attorney General Brian E. Frosh.

According to his plea agreement, until January 2009, Brennan was a licensed attorney in Maryland. In late 2005 or early 2006, Brennan established the Law Offices of Richard A. Brennan (LORAB) to perform debt settlement services. “Debt settlement” differed from “debt management” services.  In debt management, debtors continue to make payments on accounts on negotiated terms, while debt settlement involves allowing debt accounts to go delinquent and making a lump sum offer to settle the account.  While debt management services – and the fees that could be charged customers – were closely regulated in Maryland, debt settlement services were not.

The Maryland Attorney General’s Office and the Maryland Attorney Grievance Commission both received a high number of complaints from Brennan’s customers reporting that they were deceived by telemarketers who convinced them of the high probability of success by engaging Brennan and his debt settlement program, but who reported seeing little success in having their debts resolved.  When the clients complained to LORAB, their calls frequently went unreturned and they were typically told their payments would not be refunded as they constituted Brennan’s attorney fees.

In October 2007, Brennan agreed with the Maryland Attorney General’s Office to cease engaging in a number of business practices, including misuse and commingling of his clients’ funds.  Despite this agreement, Brennan continued to recruit new clients without making the disclosures required under the agreement with the Attorney General’s office, and omitting any mention of his restrictions under the agreement, which included a requirement that he maintain a surety bond in order to continue to provide debt settlement services.

To evade the restrictions in the agreement, Brennan changed his business entity name several times in quick succession, to include doing business for a few months as the Capital Law Group, then the Frederick Law Group and later as theMetro Law Group.  Brennan did so in an effort to keep new clients from researching the large numbers of complaints posted online about his practices, and also instructed telemarketers working for him to deny the new entities’ relationship with Richard Brennan.

In January 2009, Brennan surrendered his license to practice law by signing a joint petition with the Attorney Grievance commission.  In that document, Brennan admitted that he had used client trust money for purposes other than its intended use.  In June, 2009, Brennan appeared before the Circuit Court of Frederick County and acknowledged that he continued to debit funds from client bank accounts even after his surety bond had been revoked.  Brennan was ordered to pay a $2.58 million money judgment in restitution to clients from whom he collected money up until October 2007. The Court also briefly jailed Brennan for contempt after he failed to provide the Attorney General’s Office a list of clients or accounting for funds as he had promised.

Even after losing his license to practice and this judgment, Brennan continued to attempt to defraud debt clients.  On November 6, 2009, Brennan mailed an existing Frederick Law Group client a letter under the business entity name “International Debt Solutions.”  In that letter, Brennan acknowledged that Frederick Law Group’s “web site and call center have been closed” “[d]ue to unforeseen circumstances” and attempted to dissociate himself with that firm by claiming that that “[Frederick Law Group] has forwarded us your information.”  Brennan asked the client to fill out a new representation agreement, power of attorney, and electronic funds transfer authorization, which the victim returned by mail to an address two houses away from Brennan’s.   

Brennan’s debt management fraud scheme caused the loss of approximately $2.9 million to his clients between October 18, 2007, and 2010, and involved more than 250 victims.

Brennan also admitted that he filed false tax returns in 2006 and 2007, underreporting his income in both years. For example, in 2007, Brennan reported an adjusted gross income of negative $576,273.10 when he had unreported business receipts that year of at least $9,229,802. Additionally, Brennan received a total of $5,387 in tax refunds based on his knowingly false returns submitted for 2006 and 2007.  Brennan filed no tax returns for the tax year 2008, despite receiving over $6 million into business bank accounts he controlled. The total approximate tax loss to the United States is $297,087.

Further, Brennan knowingly possessed unregistered machineguns and short-barreled rifles and also engaged in the unlicensed manufacture of the machineguns.  Specifically, in February 2011, a search warrant executed at Brennan’s home in Clarksburg, Maryland, yielded evidence that Brennan unlawfully converted 10 semiautomatic rifles into fully automatic weapons, and modified another rifle so that it had a barrel length of less than six inches.  Brennan failed to register those modified weapons, as required by law.

Brennan faces a maximum sentence of 20 years in prison for mail fraud and a maximum of three years in prison for the tax charge. U.S. District Judge Theodore Chuang has scheduled sentencing for September 3, 2015, at 10:15 a.m.

United States Attorney Rod J. Rosenstein praised ATF, U.S. Postal Inspection Service, IRS-Criminal Investigation, and the Maryland Attorney General’s Office for their work in the investigation and thanked the Maryland Attorney Grievance Commission for its assistance.  Mr. Rosenstein thanked Assistant United States Attorneys Adam K. Ake and Joseph R. Baldwin, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Donnell Edward Harris, age 22, of Burtonsville, Maryland, today to 117 months in prison, followed by five years of supervised release, for robbing a convenience store in Waldorf, Maryland, and to brandishing a gun during the robbery.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Charles County Sheriff Troy Berry.

According to Harris’ plea agreement, on September 11, 2013, Harris, Charles Johnson and Madani Tejan robbed a convenience store on St. Ignatius Drive in Waldorf.  Harris brandished a firearm during the robbery and the conspirators forced the store employee at gunpoint to open the store’s cash register.  The robbers stole $90 in cash and several packs of cigarettes.

Harris also admitted that after he was arrested for the robbery and while he was incarcerated, he threatened to hurt co-conspirator Charles Johnson if Johnson did not lie to law enforcement by stating that he (Johnson) had brandished the firearm during the robbery.

Johnson, age 21, of Beltsville, Maryland, and Madani Ilara Tejan, age 33, of Upper Marlboro, Maryland, previously pleaded guilty to the robbery, and were sentenced to 51 months in prison and 68 months in prison, respectively.

United States Attorney Rod J. Rosenstein commended the ATF, Montgomery County Police Department and Charles County Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and Daniel Gardner, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr., sentenced Damien Riley, age 34, of Baltimore, Maryland, today to 210 months in prison, followed by three years of supervised release, for three counts of possession with intent to distribute heroin and one count of possession with intent to distribute cocaine.  Riley was convicted for those charges on February 9, 2015, after a six day trial.  At today’s sentencing hearing Judge Quarles found that Riley was a career offender, based on previous convictions for robbery and drug distribution.  In addition, Riley had a prior federal conviction for unlawful possession of ammunition by a convicted felon.

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 evidence presented at trial, on August 13, 2013, August, 19, 2013 and September 4, 2013, an undercover ATF Task Force Officer purchased a total of more than 10 grams of heroin and 1.7 grams of crack cocaine.  Riley provided the drugs in exchange for a total of $1,560 in premarked bills.  The transactions occurred in the 3300 block of West Cold Spring Lane in Baltimore and were observed by ATF agents.

Witnesses testified that on October 23, 2013, a search warrant was executed at Riley residence in the 2900 block of West Cold Spring Lane.  Law enforcement recovered a .357 caliber revolver loaded with five rounds of ammunition, 45 rounds of .357 caliber ammunition in a box, eight ziplock baggies of heroin, five cell phones, a digital scale, drug packaging material, a revolver speed loader, a firearm holster, and personal items belonging to Riley.

The jury was not able to reach a verdict on three other counts: possession with intent to distribute heroin; illegal possession of a ammunition by a convicted felon; and maintaining a place for the purpose of manufacturing, storing, distributing, and using any controlled substance. 

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 H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, and Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.

Baltimore, Maryland – Richard Drummond, age 38, of Hyattsville, Maryland pleaded guilty today to conspiracy to engage in money laundering.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

According to Drummond’s plea agreement, he conspired with others to launder the proceeds from the sale of marijuana.  The conspiracy distributed large quantities of marijuana in Maryland, Pennsylvania, Ohio and elsewhere, which generated hundreds of thousands of dollars in proceeds.  Richard Drummond’s role in the conspiracy was to gather proceeds from various locations and deliver the cash to his co-conspirators.  The proceeds were then deposited in various bank accounts, often in amounts exceeding $10,000, and transferred elsewhere to pay for the acquisition of additional drugs or to fund other activities by members of the conspiracy.  Drummond admitted that he laundered between $200,000 and $400,000.

For example, on September 10, 2013, Drummond drove from Maryland to Ohio and took delivery of a white trash bag from a man at a gas station in Cincinnati, Ohio.  Drummond then drove to a Family Dollar store and purchased a bag of rubber bands, and returned to his hotel. The following day, September 11, 2013, Drummond was stopped by officers of the Ohio Highway Patrol after he left Cincinnati.  When he was stopped by police, Drummond had $96,500 in cash, separated into bundles held together by rubber bands. Extra rubber bands were also found in the vehicle. Drummond then drove back to Maryland.  The next day Drummond met with a co-conspirator at a restaurant in Laurel, Maryland.

On October 31, 2013, Drummond traveled from California to Phoenix, Arizona with a co-conspirator.  After police conducted surveillance, the vehicle operated by Drummond was stopped and the police recovered approximately $58,000 in cash, along with approximately 27 cellular phones, and an airline boarding pass in the name of the co-conspirator.  Drug notations and tally sheets were also recovered, indicating that Drummond and his co-conspirator were engaged in the distribution of marijuana.

Drummond faces a maximum sentence of 20 years in prison for the money laundering conspiracy.  As part of his plea agreement, Drummond will also be required to forfeit the cash seized during the 2013 traffic stops, totaling $154,500, as well as any assets derived from, acquired as a result of, or used to facilitate the commission of the money laundering or drug distribution conspiracies.  U.S. District Judge Richard D. Bennett has scheduled sentencing for August 14, 2015 at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation and HSI-Baltimore for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – A federal grand jury has indicted six men in connection with a conspiracy to rob a jewelry store that included a carjacking and kidnapping.  The indictment was returned on May 12, 2015 and unsealed today.

The following individuals are charged in the indictment:

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

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

According to the six count indictment, from November 2012, through February 2013, the defendants planned and organized the robbery of an Owings Mills jewelry store, in order to sell the stolen goods for cash.

The indictment alleges that the defendants gathered intelligence, including conducting surveillance and the use of a GPS device that was attached to the car of an employee of the jewelry store, prior to the robbery in order to learn the employee’s travel routine and habits.  According to the indictment, on January 16, 2013, as the employee was driving from Zilberman’s home, S. Yelizarov, Sosonko, Yasinov, and Magnis drove a rented SUV and used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, the defendants allegedly removed the employee from his car, taking his car keys and the keys to the jewelry store. S.Yelizarov, Sosonko, Yasinov, and Magnis allegedly bound and blindfolded the employee, put him into the trunk of his own car and drove him to a predetermined location.  According to the indictment, once at the location, S.Yelizarov, Sosonko, Yasinov, and Magnis brandished firearms and demanded the code to the jewelry store’s alarm system.  During the abduction and robbery the defendants allegedly wore masks and gloves to conceal their identities.

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

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

The defendants each face a maximum sentence of life in prison for the kidnapping conspiracy and the kidnapping and for carrying and brandishing a firearm in relation to a crime of violence. The defendants each face 15 years in prison for the carjacking.  Initial appearances were held today for Sosonko and M. Yelizarov in U.S. District Court in Baltimore and they were detained pending detention hearings scheduled for May 26, 2015 and May 21, 2015, respectively. Zilberman is scheduled to have his initial appearance on May 21, 2015.  S. Yelizarov, Yasinov and Magnis are currently detained on unrelated state charges.  Their initial appearances on the federal indictment will be scheduled for some time in June.

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

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

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Michael P. Scudder, age 32, of Reisterstown, Maryland today to 18 months in prison followed by three years of supervised release for mail fraud in connection with a scheme in which he forged bulk mail forms, allowing him to mail over $1.6 million in bulk mail through the U.S. Postal Service for which postage had not been paid. Chief Judge Blake also entered an order that Scudder pay restitution to the U.S. Postal Service of $1,639,912.89.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division. 

Scudder owned and operated Precision Solutions, Inc., an Owings Mills-based company engaged in bulk mail marketing.  Precision Solutions brought its mail to a U.S. Postal Service mail entry facility, where the mail was weighed and counted to determine the total cost of postage.  The Postal Service then debited the cost from Precision Solutions’ advance deposit account.

Precision Solutions then obtained an additional discount on postage by transporting the mail from the mail entry facility to the Postal facility which is closest to the delivery addresses.  To do so, Precision Solutions was required to: bring a postage statement to the initial mail entry facility which details the type and weight of the mail, and the total number of pieces and containers in the mailing; and fill out a verification form for each mailing to be transported to the destination postal facility after verification, detailing among other things, the weight of the mail and number of containers. A copy of the verification form is kept at the initial mail entry facility, and the original is provided to Precision Solutions to present to the destination Postal facility as proof of payment. When Precision Solutions transports the mail to the destination Postal facility, it provides the mail and the original verification form to a Postal employee as proof of payment.

According to his plea agreement, Scudder executed his scheme to defraud the U.S. Postal Service by bringing only a small amount of mail to the initial mail entry facility for which a stamped and verified verification form was obtained.  Scudder would then modify the stamped, verification form to reflect that a much larger amount of mail had been paid for and was ready for shipment.  Scudder and his employees would use the forged verification form to present the larger amount of mail to the destination facility.

Scudder forged at least 120 verification forms, and he or his employees presented the forged forms at several Postal facilities in Maryland, Virginia, Pennsylvania and New Jersey.  From January to December 2012, the alterations allowed Precision Solutions to mail a total of over 8,860 trays of mail for which postage had not been paid, resulting in a loss of revenue to the U.S. Postal Service of $1,639,912.89.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division for its work in the investigation and thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jason Evans, age 32, of Millsboro, Delaware, today to four years in prison followed by five years of supervised release for  bank fraud conspiracy and aggravated identity theft, arising from the use of stolen credit and debit cards to manufacture counterfeit credit cards used to buy merchandise and services. Judge Quarles also entered an order that Evans pay restitution of $126,318.99, the amount of the actual loss to victims.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Chief Ross C. Buzzuro of the Ocean City Police Department; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Newport News Police Chief Richard W. Myers; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to his plea agreement, co-defendant Michael Crew had an embossing machine, and made credit cards using altered gift cards and the credit card and debit card numbers stolen from others. The stolen credit card account numbers were obtained from a variety of sources.  Once a valid number was obtained, Evans and his co-conspirators would use those numbers to derive other valid numbers, which they would confirm by calling customer service for the issuing financial institution. These numbers were used to manufacture counterfeit access devices bearing the stolen credit and debit card account numbers.  The counterfeit access devices were then used to make unauthorized purchases of goods and services.

In the fall of 2012, Crew’s embossing machine broke.  Crew asked Evans to help him get it fixed or replaced.  Ultimately, Evans, Crew and another member of the conspiracy traveled to Pittsburgh, Pennsylvania to obtain another embosser and pick up the repaired embosser.  Evans kept the repaired embosser as a backup initially. He used it to make counterfeit credit cards for himself and another co-conspirator.

On March 21, 2013, a search warrant was executed at Evan’s residence.  Law enforcement seized the embosser, counterfeit gift cards bearing stolen credit card numbers, computers, notes with credit card account information, and a list of credit card numbers.

During the conspiracy from March 2012 through the arrest of the final defendants on June 7, 2014, Evans and his co-conspirators accessed or attempted to access credit card accounts with credit limits of between $400,000 and $1 million, using the financial account numbers of real people.  More than 250 individuals and institutions were defrauded by the scheme.

Michael Crew, age 55, of Owings Mills, Maryland, was sentenced to nine years in prison after Crew pleaded guilty to bank fraud conspiracy and aggravated identity theft.  Four other defendants have pleaded guilty to their participation in the scheme and await sentencing.

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; Howard County, Baltimore City, Baltimore County, Ocean City and Newport News Police Departments, HSI Ocean City and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Tamera L. Fine, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles Jr. sentenced Maryland attorney Don F. Lindner, age 61, of Severna Park, Maryland, today to a year and a day in prison, followed by one year of supervised release, for filing a false tax return.  Judge Quarles also entered an order requiring Lindner to pay restitution of $341,730 to the IRS for the tax years 2007 to 2011, which is the total amount of taxes he owed as a result of falsely reporting gross receipts and rental expenses.

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

According to his plea, Lindner practiced law in Glen Burnie, Maryland, and treated his law practice as a sole proprietorship. For his tax returns for 2007 and 2011, Lindner omitted $1,230,614 of gross receipts from his law practice.  Lindner also maintained a rental property.  Lindner falsely reported on his tax returns that he paid over $82,700 in repairs on the rental property during the same tax years, when in fact no repairs were done, thereby fraudulently decreasing his purported taxable income.

United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney David I. Sharfstein, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced the owner of Health Way Pharmacy, Salim Yusufov, age 43, of Reisterstown, Maryland, today to 12 months home confinement as part of four years’ probation, for a conspiracy to traffic over $6.6 million in contraband cigarettes, health care fraud, and receipt and delivery of misbranded drugs. Judge Quarles also ordered Yusufov to forfeit $200,000.

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; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.   

“Distribution of unapproved foreign drugs presents a real danger to U.S. consumers especially barbiturates, which are potentially addictive prescription drugs," said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “We will continue our work to keep such illegal medicines out of the U.S. marketplace and help bring to justice those who would circumvent FDA requirements and place the public health at risk.”

According to his guilty plea, Salim Yusufov, conspired with his brother, Elmar Rakhamimov, and other family members and associates to receive, possess, sell and distribute contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. Rakhamimov, who was the leader and organizer of the scheme, purchased contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area. Salim Yusufov received more than $81,000 in kickbacks for brokering the first nine of the contraband cigarette transactions with the undercover FBI agent. These transactions included thousands of cartons of contraband cigarettes.  The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $5.85 per package of cigarettes ($58.50 per carton of cigarettes).  The total tax evaded was more than $1 million.  

Salim Yusufov also admitted that he illegally provided unapproved prescription drugs from Germany and Eastern Europe and sold them to customers. Corvalol, also referred to Corvalolum, and Valocordin, is not approved by the FDA for distribution in the United States, although it is sold in Eastern European countries, where it is used to treat elevated blood pressure and as a tranquilizer and sedative. Valocordin and Corvalol contain large amounts of phenobarbital, a prescription drug regulated by the FDA. According to his plea agreement, from July 23, 2010 through July 14, 2011, Yusufov, who is not a licensed pharmacist, imported and distributed Valocordin, dispensing the drug without a prescription.

In addition, Yusufov admitted to defrauding Medicare and Medicaid by causing Health Way Pharmacy to bill for prescriptions and/or prescription refills that the pharmacy did not provide to customers.  One of the ways Yusufov did this was by intentionally failing to reverse claims for payment submitted to Medicare when customers did not pick up or otherwise receive refills.  A second way that Yusufov defrauded Medicare and Medicaid was by providing drugs other than those prescribed, while still invoicing Medicare or Medicaid for the prescribed medication.

Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland, and seven other co-conspirators have been convicted for their roles in the scheme and are awaiting sentencing.

United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office for its assistance in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.

Greenbelt, Maryland – A federal jury convicted Valentina Elebesunu, age 49, of Temple Hills, Maryland late yesterday of conspiracy to commit an armed robbery, and robbery, of an armored truck.

The guilty verdict 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 Mark A. Magaw of the Prince George’s County Police Department.

Elebesunu was the branch manager at a Bank of America located at 3413 Kenilworth Avenue in Hyattsville, Maryland.  According to evidence presented at the five day trial, between mid-November and November 21, 2012, Elebesunu conspired with Damione Lewis – a security guard at the bank, Delacey Brown, Taurian Miller, Adriane Baldwin and Barrington Turner to rob an armored truck that serviced the bank branch.  Trial evidence showed that Elebesunu had provided Lewis with inside information about the precise amount of funds scheduled to be picked up by the armored truck.  Lewis, in turn, provided that information to the other co-conspirators.

On November 21, 2012, an armored car employee picked up $272,956.17 from the bank. Elebesunu and Lewis were working their respective jobs at the bank at the time.  Elebesunu’s co-conspirators were in vans outside the bank.   As the employee was taking the money from the bank to the armored truck, Elebesunu’s co-conspirators approached the employee brandishing firearms, took the money bags to their vans and drove away.  The robbery proceeds were later divided between Elebesunu and her co-conspirators.

Elebesunu faces a maximum sentence of 20 years in prison for the conspiracy and the robbery counts.  U.S. District Judge George J. Hazel has scheduled sentencing for August 25, 2015 at 10:00 a.m.

Damione Lewis, age 36, of New Carrolton, Maryland; Delacey Kinte Brown, age 38, of Landover, Maryland; and Taurian Devon Miller, age 30, and Adrian Baldwin, age 29, both of Washington, DC; and Barrington Turner, age 35, of Forestville, Maryland; have all pleaded guilty to their roles in the robbery.  Lewis is scheduled to be sentenced on June 25, 2015 and the remaining four defendants have been sentenced to between 51 and 96 months in prison.

United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department and other members of the Cross Border Task Force for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.

Baltimore, Maryland – Paul Milton Laney, age 61, of Silver Spring, Maryland pleaded guilty today to committing two bank robberies within three days.

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 Chief J. Thomas Manger of the Montgomery County Police Department.

According to Laney’s plea agreement, on February 18, 2014, Laney entered a bank in the 13000 block of Georgia Avenue in Silver Spring and demanded that the teller put money in a plastic bag that he threw over the counter.  The victim teller was frightened and didn’t immediately comply.  Laney then leapt up onto the counter, took money directly from the register and stuffed the money into the plastic bag, stealing approximately $2,920.  As Laney was leaving, a bank employee approached Laney and attempted to stop him.  Laney stated, “If you take another step closer, I’ll blow your head off.”  The employee stepped away and allowed Laney to exit the bank.

On February 21, 2014, Laney entered a bank in the 8700 block of Georgia Avenue in Silver Spring, approached one of the tellers, threw a plastic bag over the counter and stated, “This is an armed robbery.  I want all your $100s and $50s.”  The teller was frightened and was slow to put money in the bag.  Laney leaned over the counter and revealed a large kitchen knife inside his jacket and threated to kill the teller.  The teller then removed approximately $999 from the register, placed the cash in the bag and handed it to Laney, who exited the bank.

Laney faces a maximum sentence of 20 years in prison for each of the two counts of bank robbery.  U.S. District Judge Peter J. Messitte has scheduled sentencing for August 19, 2015 at 9:30 a.m.

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

Greenbelt, Maryland – Carlos Beltran-Flores, aka “Joker,” age 23, of Hyattsville, Maryland, pleaded guilty today to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including murder, attempted murder, assault, extortion and robbery; and carrying, 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; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.

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

According to his plea agreement and court documents, from 2009 until at least 2013, Beltran-Flores was a member of the Peajes Locos Salvatrucha clique of MS-13.  Beltran-Flores and MS-13 members committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation.

Beltran-Flores admitted that on September 3, 2010, he and another MS-13 member assaulted and robbed a victim in the area of New Hampshire Avenue in Hyattsville.  On November 15, 2010, Beltran-Flores and other MS-13 members robbed two other victims in the area of Jamestown Road in Hyattsville, and one member stabbed the victims.

On January 10, 2011, Beltran-Flores and other MS-13 members murdered a person they believed was a rival gang member, and attempted to murder another purported rival gang member, in the parking lot of the former Shoppers Food Warehouse on University Boulevard in Hyattsville. The group repeatedly punched, kicked, and stabbed the victims, one of which survived the attack.  Beltran-Flores helped plan the attack and afterwards, hid the murder weapons in a nearby park.

On January 13, 2011, after attending a Peajes clique meeting at which a member criticized other MS-13 members for not committing enough violent crimes, Beltran-Flores, co-defendant Wilmer Argueta, and other MS-13 members got into a mini-van driven by co-defendant Roni Arriola-Palma. Near the Fort Totten Metro Station, they saw a person they believed was an associate of a rival gang.  Argueta and other MS-13 members attacked the victim and dragged him back into the mini-van.  Beltran-Flores and others continued to assault him, at times attempting to use a seat belt to strangle the victim.  Arriola-Palma eventually parked near a dead end in the vicinity of Chillum Manor Road.  Beltran-Flores, Argueta, and others kicked, stabbed and choked the victim. They forcefully stripped the victim of all of his heavy winter clothing in order to stab him.  After assaulting the victim near the mini-van, they dragged the victim into the woods, where they left him for dead, and fled. The victim survived the attack.

From March to November, 2011, members of the Peajes clique threatened to kill a fellow MS-13 gang member unless he paid them.  Beltran-Flores arranged the extortion payments using Facebook and text messaging to relay the extortion demands to the victim. Beltran-Flores picked up several extortion payments, and sent other members to pick up payments on his behalf.

From September to November 2011 and while incarcerated in the Prince George’s County Corrections Facility, Argueta ordered MS-13 members to kill a victim who planned to testify against him in state court.  Acting on this order to kill, Beltran-Flores and two others drove to the victim’s house on November 15, 2011, and spotted the victim in front of his house.  Beltran-Flores shot at the victim several times from the moving car, striking the victim once in the chest.  A short car chase ensued during which Beltran-Flores threw the gun out of the car.  He was arrested with the two other MS-13 members.  The victim survived the attack.

Beltran-Flores and the government have agreed that if the Court accepts the plea agreement, Beltran-Flores will be sentenced to between 20 and 40 years in prison.  U.S. District Judge Roger W. Titus has scheduled sentencing for November 13, 2015, at 9:00 a.m.  Beltran-Flores remains detained pending sentencing.

Francisco Hernandez, age 22, Roni Arriola-Palma, age 25, and Wilmer Argueta, age 23, all of Hyattsville, Maryland, previously pleaded guilty for their roles in the racketeering conspiracy and are scheduled to be sentenced on June 29, June 30, and August 4, 2015, respectively.

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County and Montgomery County Police Departments, the Prince George’s County State’s Attorney’s Office, the Takoma Park Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Kevin L. Rosenberg with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.

Baltimore, Maryland – Gilbert Stokes, age 46, of Baltimore, Maryland, pleaded guilty today to the December 12, 2013 armed robbery of a Windsor Mill, Maryland, convenience store.  Stokes also admitted to the attempted armed robbery of a hotel on December 6, 2013, and to the armed robbery of a fast food restaurant on December 23, 2013.

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

According to Stokes’ plea agreement, on December 6, 2013, he entered a hotel on W. Madison Street in Baltimore, displayed a gun to the hotel clerk and demanded money.  The clerk advised that the only money on hand at the hotel was in the safe and the clerk did not have a key to the safe.  Stokes fled without obtaining any money.  After reviewing hotel surveillance video Baltimore Police detectives identified Stokes as the robber and the victim clerk identified Stokes from a photo array.

On December 12, 2013, Stokes entered a convenience store in Windsor Mill and brandished a handgun at two victims.  The victims were able to hide in the store and Stokes stole multiple packs of cigarettes and left the store.  The vehicle Stokes used to flee was identified by witnesses at the scene and subsequently located by police.  Recovered from under the front seat was a .357 Magnum revolver that matched the firearm seen in the store’s surveillance video.  A witness identified Stokes as the person who brandished the gun and committed the robbery.

Stokes also admitted that on December 23, 2013, he robbed a fast food restaurant on N. Howard Street in Baltimore, brandishing a weapon and demanding money.  Stokes stole approximately $200 from the register and fled.  Officers located Stokes on Greene Street, ducking near a vehicle.  Stokes was seen throwing an object under the vehicle.  Law enforcement recovered a .17 caliber BB-gun from under the vehicle and $190 from Stokes.  The victims were brought to the scene of the arrest and positively identified Stokes as the person who committed the armed robbery.

Stokes and the government have agreed that if the Court accepts the plea agreement Stokes will be sentenced to 18 years in prison.  U.S. District Judge George L. Russell, III, has scheduled sentencing for August 21, 2015 at 11:00 a.m.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Special Assistant United States Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney, part of the Baltimore initiative to combat violent crime, and Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.

Baltimore, Maryland – Ryan C. Anton, age 42, of Elverson, Pennsylvania, pleaded guilty today to travel with intent to engage in illicit sexual conduct.

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

According to his plea agreement, in July, 2014, as part of an investigation of individuals who were targeting minors online for sexual exploitation, an undercover Baltimore City Police detective placed an ad on the internet.  On July 23, 2014, Anton initiated text messaging with the undercover detective.  Anton believed that the detective was a 14 year old, hearing-impaired girl named Heidi who was in the 10th grade.  After a series of exchanges of sexually-explicit text messages over a period of weeks, including the solicitation of pornographic images from “Heidi,” Anton relayed that he was on a bus to Baltimore, provided the bus number and attempted to convince “Heidi” to board the bus.

Baltimore City Police detectives assisted by HSI agents boarded the bus and arrested Anton.  Anton admitted that the plan was for “Heidi” to get on the bus with him to travel to Washington, D.C. where he had booked a hotel room to have sex.

As part of his plea agreement, Anton 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).

Anton and the government have agreed that if the Court accepts the plea agreement, Anton will be sentenced to seven years in prison followed by 10 years of supervised release.  U.S. District Judge Richard D. Bennett has scheduled sentencing for August 6, 2015 at 3:00 p.m.

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

United States Attorney Rod J. Rosenstein commended the HSI Baltimore and Baltimore Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Jimile Williams, age 29, of Baltimore, today to 219 months in prison followed by three years of supervised release for robbery and using a firearm during the robbery.  Judge Motz also entered an order that Williams pay restitution of $15,235.

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

According to his plea agreement, on October 27, 2012, Williams and co-defendant Lydell Pittman entered a cell phone store on Security Boulevard in Baltimore, pointed a handgun at a clerk’s face and demanded money.  One of the robbers ordered the clerk to lie on the floor while the other took approximately $400 from the store.  Pittman’s fingerprint was recovered from behind the counter of the store.

That same day, Williams and Pittman robbed an employee at a dry clean store on Reisterstown Road in Baltimore.   One of the robbers pointed a gun at the clerk while the other stole $835 from the cash registers. Several witnesses identified Williams and Pittman from video footage of the robbery, as well as the robbers’ getaway vehicle.

On November 16, 2012, Williams and Pittman robbed a check cashing store on Windsor Mill Road in Baltimore.   They pointed a gun at an employee, and told him to get down or he would die. They took $14,000 from two lock boxes and a cash register.  Further investigation placed Pittman’s car at the store at the time of the robbery.

Lydell Pittman, age 24, of Baltimore, previously pleaded guilty to his participation in the robberies and was sentenced to 181 months in prison.

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

Baltimore, Maryland - Fifteen employees of the United States Attorney’s Office and three law enforcement officers were honored today with the Office’s most prestigious awards. At a ceremony held to announce the awards this morning at the U.S. Courthouse in Baltimore, the United States Attorney also welcomed 14 new Assistant U.S. Attorney and other employees who have joined the Office since last year.                   

Maryland U.S. District Judge George L. Russell, III served as the keynote speaker for the event. Judge Russell was a Maryland Assistant U.S. Attorney from 1994 to 1999 and from 2002 to 2007.

“These award recipients accomplished superb results while respecting our high ethical and professional standards,” commented U.S. Attorney Rod J. Rosenstein.  “As the U.S. Attorney’s Office works with our partners to promote the rule of law, punish criminals, deter crime and protect government property, it is essential to maintain our commitment to excellence, integrity and achievement.”

During the annual ceremony, the U.S. Attorney encourages prosecutors to heed the advice of Robert H. Jackson, while serving as Attorney General in 1940: “’A sensitiveness to fair play and sportsmanship is perhaps the best protection against the abuse of power, and the citizen’s safety lies in the prosecutor who tempers zeal with human kindness, who seeks truth and not victims, who serves the law and not factional purposes, and who approaches his task with humility.’”

Annual Awards

The following awards were announced for accomplishments over the past year:

Gary Jordan Award

Recipient:        Andrea L. Smith

Gary P. Jordan served with distinction for many years as an Assistant U.S. Attorney, as First Assistant from March 29, 1987 until his death on October 25, 1996, and as interim U.S. Attorney in 1993. This is an honorary award presented annually to an Assistant U.S. Attorney for exemplary performance that demonstrates the highest traditions of the office: integrity, ingenuity, dedication to public service and fairness.

Barnet D. Skolnik Award

Recipients:      Ayn B. Ducao
                         Robert H. Harding

Barnet D. (Barney) Skolnik was an Assistant U.S. Attorney who led teams that prosecuted numerous white collar criminals and corrupt public officials in the 1970s, including Vice President Spiro T. Agnew. This is an honorary award presented annually to one or more Assistant U.S. Attorneys who demonstrate outstanding professionalism, determination and creativity in a case of unusual public significance.

Employee of the Year Award

Recipient:        Christopher W. Seybolt

The Employee of the Year Award recognizes sustained superior performance and outstanding achievements by a non-attorney employee. The award also recognizes the recipient's professionalism, dedication and comprehensive knowledge in their area of expertise.

Pete Twardowicz Award

Recipients:      Carrie I. Dayton
                         Eric S. Nye
                         Julie A. Pitocchelli              

The Pete Twardowicz Award was established in honor of Eugene P. (Pete) Twardowicz, who rendered many years of outstanding service to the U.S. Attorney’s Office as an IRS criminal investigator and a Special Investigator for this Office. This award recognizes law enforcement agents or officers for outstanding cooperation and achievement while working with the U.S. Attorney’s Office on a significant case.

Excellence in Civil Advocacy

Recipient:        Tarra Deshields-Minnis

The U.S. Attorney’s Award for Excellence in Civil Advocacy, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding advocacy in civil litigation.

Excellence in Prosecution of Fraud

Recipients:      Kathleen O. Gavin
                         Judson T. Mihok
                         David I. Sharfstein
                         Leo J. Wise

The U.S. Attorney’s Award for Excellence in Prosecution of Fraud, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting fraud.

Excellence in Prosecution of Violent Crime

Recipient:        Daniel C. Gardner
                         William D. Moomau

The U.S. Attorney’s Award for Excellence in Prosecution of Violent Crime, established in 2007, is presented annually an Assistant U.S. Attorney for outstanding work in prosecuting violent crime.

Excellence in Prosecution of Organized Crime

Recipient:        David I. Sharfstein
                         James G. Warwick

The U.S. Attorney’s Award for Excellence in Prosecution of Organized Crime, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting organized criminal activity.

Excellence in Legal Support

Recipient:        Christine M. Minor

The U.S. Attorney’s Award for Excellence in Legal Support, established in 2007, is presented annually to one or more non-attorney employees for outstanding work in support of the mission of the U.S. Attorney’s Office.

Outstanding Contributions to a Law Enforcement Initiative

Recipient:        Harvey E. Eisenberg

The U.S. Attorney’s Award for Outstanding Contributions to a Law Enforcement Initiative, established in 2007, is presented annually to one or more employees for outstanding work in support of an initiative of the U.S. Attorney’s Office.

Carl S. Lackl Award

Recipient:        Alison Palencia

The Carl S. Lackl Award for Exemplary Perseverance and Fortitude in Pursuit of Justice was established in 2008 in honor of Carl Stanley Lackl, Jr. Mr. Lackl witnessed a murder in Baltimore in 2006 and agreed to testify against the suspect he identified. After the suspect was arrested by police and charged in state court with the murder, he used a contraband cellular telephone to contact co-conspirators and arranged to murder Mr. Lackl, who was shot to death outside his house in front of his daughter. All of the conspirators were convicted on federal charges.

New Employees

In addition, the U.S. Attorney welcomed new employees who joined the office last year. Assistant U.S. Attorneys: Jane Andersen, Sean Delaney, Molissa Farber, Joshua Ferrentino, Daniel Gardner, Lindsay Kaplan, Rebecca Koch, Sarah Marquardt, Ray McKenzie, Patricia McLane, Michael Packard, Matthew Phelps, Matthew Sullivan, and Aaron Zelinsky.  Special Assistant U.S. Attorneys: Gustav Eyler, Shelly Glenn, David Kehoe, Conor Mulroe, Matthew Paeffgen, Lauren Perry and Jennifer Wine. Non-Attorney Staff: Jasmine Burnett, Allison Crandle, Adaliah Davis, Vincent DeVivo, Tiffany Dorsey, Imani Gaddy, Carrie Hannon, Joanna Huber, Rebecca Johnson, Luis Martinez, Berclyn Mitchell, Morgan Murphy, John Russo, Joshua Schnitzlein, Elizabeth Singer, Joyce Thaden, and Matthew Wells.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Robert Collins, age 49, of Baltimore, Maryland, today to 125 months in prison followed by five years of supervised release for robbery, attempted robbery, and carrying and brandishing a firearm during a 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.

According to his plea agreement, on December 15, 2013, Collins walked into the New York Fried Chicken Restaurant at 542 E. Patapsco in Baltimore.  He pointed a handgun at the cashier, demanded that the register be opened and took about $290.

That same day, Collins walked into the Italiano’s Restaurant at 2229 Washington Boulevard in Baltimore.  He pointed a handgun at a cashier and demanded money.  The cashier refused to cooperate.  Collins grabbed three iPhones belonging to other Italiano’s employees and fled.  Collins was apprehended and the three iPhones were recovered.  Additionally, a .380 caliber pistol was found near Collins.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Scott A. Lemmon, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Sharmaine Christopher Diggs, age 35, of Baltimore, today to 20 years in prison followed by five years of supervised release for robbery, and two counts of using and brandishing a firearm during a robbery.  Judge Russell also entered an order that Diggs pay restitution of $19,000.

Late yesterday, following a six day trial, a federal jury convicted Diggs’ co-defendant Paul Chance, age 28, of Baltimore, Maryland, of conspiring to commit robbery, three counts of robbery, four counts of possessing and brandishing a firearm in furtherance of robbery, and being a felon in possession of a firearm.

The sentence and conviction 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 James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Marilyn Mosby; Baltimore Police Commissioner Anthony W. Batts;  Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County Police Chief Tim Altomare.

According to Diggs’ plea agreement, on March 29, 2013, Diggs and Chance arrived at the Ashland Café on York Road in Cockeysville, Maryland.  Both brandished semi-automatic handguns at the owner, who they forced inside his business and bound his hands with duct tape.  They threatened to shoot the owner if he did not provide money, and pistol-whipped him.  The defendants took $4,000 and a .45 caliber weapon that was in the kitchen safe, and another $15,000 from a downstairs safe.  The robbers then forced the owner into the walk-in freezer, and left.

On May 3, 2013, Diggs and another co-conspirator came back to rob the café a second time.  Diggs wore a mask and carried a duffle bag and a handgun.  The café’s employees called the police. The robbers’ vehicle was stopped a short distance away.  Diggs fled, but was located an hour later in the woods.  Detectives executed a search warrant and recovered the duffle bag containing a ski mask, duct tape and the handgun and ammunition that was stolen in the first robbery.

According to trial testimony, Chance, armed with a firearm, also robbed the following businesses: Pizza Hut on Annapolis Road in Severn, Maryland on April 7, 2013; the Hobbit Liquor Store on Bowleys Lane in Baltimore on April 26, 2013; and attempted to rob the Olive Garden on Perry Hall Boulevard in Baltimore on April 29, 2013.  The jury also found that on April 19, 2013, Chance possessed a semi-automatic rifle and a pump action shotgun.  Because of a prior felony conviction, Chance was prohibited from possessing a firearm.

Judge Russell has scheduled sentencing for Paul Chance on August 24, 2015, and he faces a mandatory minimum sentence of 82 years in prison.

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

Baltimore, Maryland – Baltimore City Police officer Maurice Lamar Jeffers, age 47, of Savage, Maryland, has been charged by criminal complaint with theft of government property and stealing property as a federal officer.  The criminal complaint was returned on Friday, May 8, 2015 and unsealed today.

The criminal complaint 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 Commissioner Anthony W. Batts of the Baltimore Police Department.      

“The affidavit alleges that agents carried out an undercover operation and obtained a video recording of the defendant stealing cash while he believed he was executing a search warrant,” said U.S. Attorney Rod J. Rosenstein. “I want to thank the officers of the Baltimore Police Department and other agencies that assisted in this investigation.”

According to the criminal complaint, Jeffers has been a sworn member of the Baltimore Police Department for the last 12 years, and is currently assigned as a Task Force Officer (TFO) to the U.S. Marshals’ Capital Area Regional Fugitive Task Force (CARFTF).  As a TFO, Jeffers received special deputation to execute arrest and search warrants supporting the federal task force.  Jeffers is responsible for locating and arresting offenders who have active local and federal arrest warrants and assisting in locating individuals for other jurisdictions and agencies upon request.

The criminal complaint alleges that Jeffers stole approximately $3,000 on March 10, 2015, while Jeffers was on official business as a TFO for CARFTF.  According to the affidavit filed in support of the criminal complaint, law enforcement conducted a covert operation in which agents rented a hotel room and set up surveillance equipment. Law enforcement also placed $3,200 in cash throughout the room – a portion of the money was placed in pain view and the rest was hidden.

At the direction of law enforcement involved in this investigation, Jeffers and other members of CARFTF were told that the subject of a fictitious drug investigation was staying at the hotel room. Jeffers and CARFTF members were directed to secure the subject and the hotel room so that law enforcement could later execute a search warrant in the subject’s hotel room.

According to the criminal complaint, Jeffers and another CARFTF member went to the hotel room to secure it.  After Jeffers and the other TFO conducted a security check of the room the other TFO left to report that the room was secured.  According to the criminal complaint, after the other TFO left, audio and video surveillance captured Jeffers searching the room and placing the money into his pants pockets.  After Jeffers and the other CARFTF members left, law enforcement involved in this investigation conducted an inventory of the hotel room.  As seen on the video, the prerecorded funds that had been planted in the hotel room – totaling $3,000 – were gone. The stolen cash was not submitted as evidence, as it should have been if it had been lawfully seized.     

Jeffers faces a maximum sentence of 10 years in prison for each of the two theft counts.  An initial appearance was held on May 8, 2015, in U.S. District Court in Baltimore. Jeffers was released under the supervision of U.S. Pretrial Services.

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

United States Attorney Rod J. Rosenstein praised the Baltimore FBI Public Corruption Task Force, which includes Agents and law enforcement officers from the IRS, the Baltimore Police Department, the Prince George’s County Police Department and the Baltimore FBI, for their work in the investigation, and recognized the U.S. Marshals Service for its assistance. Mr. Rosenstein thanked Assistant United States Attorney David I. Sharfstein, who is prosecuting the case.

Baltimore, Maryland – Nick Hornberger, age 33, of Baltimore, pleaded guilty today to three counts of robbery.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Anthony W. Batts.

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

Royal Farms, Dundalk Avenue, Baltimore County;

Royal Farms, O’Donnell Street, Baltimore City;

7-11, Eastern Boulevard, Baltimore County;

7-11, Wise Avenue, Baltimore County; and

Dunkin Donuts, Kenwood Avenue, Baltimore County.

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

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

Hornberger and the government have agreed that if the Court accepts the plea agreement, Hornberger will be sentenced to between 60 to 151 months in prison.  U.S. District Judge Richard D. Bennett has scheduled sentencing for August 25, 2015 at 3:00 p.m.

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Earl Hamman Musheer, age 60, of Baltimore, today to 10 years in prison followed by five years of supervised release for conspiring to possess with the 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; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Baltimore Police Commissioner Anthony W. Batts.

According to his plea agreement, Musheer had a co-conspirator retrieve packages containing a total of at least five kilograms of cocaine from a store in Baltimore County, Maryland.  The cocaine was destined for sale in and around Baltimore.

On November 6, 2014, DEA investigators became aware that a suspicious package was in route to the store.  When the parcel was delivered a couple days later to the store, the investigators detected a strong odor emanating from the box.  A drug detection dog alerted on the parcel, indicating the presence of a controlled substance.  The investigators subsequently opened the parcel pursuant to a search and seizure warrant.  The parcel contained more than five kilograms of cocaine, which has a wholesale value of roughly $150,000.  After obtaining a second warrant authorizing the installation of a tracking device within the parcel, the investigators inserted the tracking device and returned the package to the store.

On November 10, 2014, the co-conspirator retrieved the package, and was observed driving to meet Musheer in Baltimore City.  Musheer placed the package in his own car, after which both were arrested.  At the time of his arrest, Musheer had over $40,000 in cash and numerous pre-paid cell phones in his car.

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 Joshua T. Ferrentino, who prosecuted the case.

U.S. Attorney Rod J. Rosenstein sent the following message to police officers serving in Baltimore City today:

During National Police Week, we pay tribute to police officers who have died in the line of duty and give thanks to officers who faithfully protect and serve.

In particular, I want to express my gratitude to every police officer who serves with honor and integrity in Baltimore City. Criticism of your department, whether or not justified, should not obscure the good that so many of you do every day. The murder rate in Baltimore City fell dramatically over the past decade, along with most types of crime, thanks in large part to superb work by outstanding officers of the Baltimore Police Department. You have saved many lives.

Some criminals have taken advantage of recent events. Although many agencies are working on long-term solutions, only the Baltimore Police Department can stop criminals from harming victims today. Good police work is essential to hold criminals accountable and deter them from committing more crimes and creating more victims.

Baltimore City police officers have one of the most challenging and most important jobs in Maryland. Thank you for your courage and for your devotion to justice.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Traci Lynette Cure, age 46, of Silver Spring, Maryland today to 18 months in prison followed by a year of supervised release for conspiracy in connection with issuing fraudulent driver’s licenses and duplicate vehicle titles.

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 Milton Chaffee, Administrator of the Maryland Motor Vehicle Administration - Investigation and Security Services Division. 

Cure worked at the Maryland Motor Vehicle Administration in Upper Marlboro, Maryland beginning in 1997, and served as a customer agent/lead worker from 2007 until September 4, 2013.

According to her plea agreement, from November 2011 to August 2013, a co-conspirator paid Cure at least $5,500 to issue fraudulent driver’s licenses for the co-conspirator and others, and fraudulent duplicate vehicle titles.  Cure received approximately $40 for each of at least 120 duplicate vehicle titles she fraudulently produced, and $100 for each of at least seven driver’s licenses she fraudulently issued.  Cure produced driver’s licenses bearing the photos of the co-conspirator and others, and the names of real people, including victims who were citizens of Colombia and Puerto Rico.

United States Attorney Rod J. Rosenstein praised HSI Baltimore and MVA - Investigation and Security Services Division for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Shawn Delonte Allen, age 40, of Waldorf, Maryland today to 150 months in prison followed by five years of supervised release for conspiring to commit the robbery of a drug dealer and for using and brandishing a firearm during a crime of violence.

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

According to his plea agreement, on April 11, 2014, Allen and his co-conspirators Evan Anthony Peek-Austin and Joel Varela Linares, entered the victim’s residence and awaited his arrival.  As the victim arrived home, Allen approached the victim from behind and forced him at gunpoint into the residence.  After zip-tying the victim’s hands, Allen, Linares and Austin questioned the victim about the location of drugs and drug proceeds.  The robbers thought the victim was in possession of heroin imported from Guatemala or proceeds from heroin sales. Allen, Linares and Austin each had a handgun and threated to kill the victim if he did not produce the drugs or drug proceeds.  While questioning the victim, Allen brandished his gun.  Allen also heated a metal spoon and placed the hot spoon on the victim’s hands and face, demanding the victim tell them the location of the drugs and money.  The victim finally told Allen and his co-conspirators that his American friend had the drugs and money and the robbers allowed the victim to call his friend, who was, in fact, a Special Agent with Homeland Security Investigations.  The victim arranged to meet with the agent and told Allen and his co-conspirators that his friend would have approximately 10 kilograms of heroin.

Allen and Linares instructed the victim to drive them to the meeting location in Beltsville, Maryland.  Once the HSI agent arrived, the victim met the agent and told him that Allen and his co-conspirators were going to kill him.  As the HSI agent and the victim left, Allen got out of the car and brandished his gun.  Linares entered another vehicle and pursued the agent’s car until he was stopped by Prince George’s County Police officers.  Allen and Austin fled the meeting location and were pursued by law enforcement.  They eventually ran away and Allen was subsequently apprehended by police.

Evan Anthony Peek-Austin, age 39, of Landover, Maryland, and Joel Varela Linares, age 25, of Washington, D.C., previously pleaded guilty to their roles in the robbery and are scheduled to be sentenced on June 19, 2015 at 10:00 a.m. and May 28, 2015 at 10:30 a.m., respectively.

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

Baltimore, Maryland – U.S. District Judge William D. Quarles Jr. sentenced Donte Walter Robinson, age 36, of Baltimore, today to 14 years in prison followed by five years of supervised release for conspiring to distribute five or more kilograms of cocaine, and robbery. Judge Quarles also ordered Robinson to pay restitution of $75,186.

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; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore Police Commissioner Anthony W. Batts.

According to his plea agreement, on December 13, 2010, Robinson and others robbed a pharmaceutical delivery truck.  Robinson obtained a U-Haul as the get-away vehicle.  Three co-conspirators waited for the pharmaceutical delivery truck to arrive at a pharmacy on West Pratt Street in Baltimore.  When the driver got out of the truck and opened the rear door, two co-conspirators jumped into the truck and pointed a loaded gun at the truck driver.  They tied the driver’s hands behind his back and continued to hold a gun on him.  One of the co-conspirators stayed in the back with the driver while the other drove the truck, with Robinson driving the U-Haul behind them.  They drove to the 2000 block of Annapolis Road in Baltimore where they transferred the pharmaceuticals, worth a total of $75,186, to the U-Haul. 

Additionally, on six occasions from January to May, 2011, Robinson flew with other co-conspirators from Baltimore to McAllen, Texas to transport one to two kilograms of cocaine, per trip, back to Maryland on behalf of a drug dealer.  Robinson knew that the cocaine was to be distributed in Maryland.

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

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Bernardo Lloyd, age 48, of Silver Spring, Maryland late yesterday to 63 months in prison, followed by three years of supervised release, for involuntary manslaughter connected to a fatal crash on the Baltimore-Washington Parkway.

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

According to testimony at his four day trial, on January 31, 2012, about 2 p.m., Bernardo Lloyd was driving a black Lexus on the Baltimore-Washington Parkway in Cheverly, Maryland, at a high rate of speed, keeping pace with a black Nissan.  Both vehicles were passing other southbound vehicles, changing lanes abruptly to get around the other vehicles.  Other vehicles had to take evasive action as Lloyd passed them.  Lloyd and the driver of the Nissan appeared to be racing each other.   Lloyd was traveling at about 100 miles per hour.  The posted speed limit in that area is 45 mph.

The victim was driving a Ford F150 pickup truck in the center lane of the highway, when Lloyd struck the pickup truck from the rear.  As a result of the crash, the truck rolled over several times and came to a stop on its roof in the center lane.  The victim died at the scene from head and neck trauma as a result of the crash.     Lloyd’s Lexus bounced to a stop off the highway on the right side.  Lloyd and his passenger were transported to the hospital, where both were treated for minor injuries and released.

United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant U.S. Attorney Nicholas J. Patterson, who prosecuted the case.

Baltimore, Maryland –Navee Diaz, a/k/a India, age 40, of Owings Mills, Maryland pleaded guilty today to bank fraud conspiracy and aggravated identity theft, arising from a scheme to use of stolen credit and debit card information to manufacture counterfeit credit cards used to buy merchandise and services.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Chief Ross C. Buzzuro of the Ocean City Police Department; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Newport News Police Chief Richard W. Myers; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to her plea agreement, starting before January 1, 2011 and continuing through June 2014, Diaz conspired with co-defendants William Downey, Michael Crew and others to manufacture counterfeit debit and credit cards bearing stolen and unauthorized credit and debit card account numbers, then use the counterfeit cards to purchase goods and services.  Diaz initially became involved in the scheme when her friend, Downey, introduced her to Crew, with whom she became romantically involved.  Crew had an embossing machine, and made credit cards using altered gift cards and the credit card and debit card numbers stolen from others. The stolen credit card account numbers were obtained from a variety of sources.  Once a valid number was obtained, Diaz and other co-conspirators would use an algorithm to derive other valid numbers, which they would confirm by calling customer service for the issuing financial institution. These numbers were used to manufacture counterfeit access devices bearing the stolen credit and debit card account numbers.

Crew sold the counterfeit credit cards and recruited others, including Diaz, to go out and make purchases on Crew’s instructions. Ultimately, Diaz began to provide cards to others and to take and fulfill orders for items purchased with the counterfeit cards.  Diaz recruited others into the scheme, obtained cards as needed from Crew and co-defendant Jason Evans, and even manufactured cards herself.  She exchanged dozens of text messages each day taking orders, arranging for cards and workers, and conducting other business of the conspiracy.  Diaz went out shopping with the cards on a daily basis, with and without other workers in the scheme.

During her participation in the conspiracy, Diaz and her co-conspirators obtained or attempted to obtain extensions of credit from financial institutions of between $200,000 and $400,000, using the financial account numbers of real people.  More than 250 individuals and institutions were defrauded by the scheme.

Diaz and the government have agreed that if the Court accepts the plea agreement Diaz will be sentenced to 76 months in prison.  U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for July 14, 2015 at 10:00 a.m.  At the time of her sentencing, Diaz will also be required to pay restitution in the full amount of the victims’ actual losses, currently computed to be $126,318.99.

Michael Crew, age 55, of Owings Mills, previously pleaded guilty to the same charges and was sentenced to nine years in prison and ordered to pay restitution of $126,318.99.  William Downey, age 43, of Gwynn Oak, Maryland, his brother, Stanley Downey, age 49, formerly of New York, and Jason Evans, age 32, of Millsboro, Delaware, also pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on July 30, 2015, June 23, 2015, and May 20, 2015, respectively, all at 1:00 p.m.  Diaz and the Downey brothers remain detained pending sentencing.

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

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

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

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake, sentenced Lamont George Thomas, age 34, of Baltimore, Maryland, today to 10 years in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.  Judge Blake enhanced Thomas’ sentence after finding he was a career offender based on three previous felony drug convictions.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore City State’s Attorney Marilyn J. Mosby.

According to his plea agreement, from December 2013 through April 2014, Thomas was a member of a conspiracy to distribute cocaine.  As part of the conspiracy, Thomas obtained kilograms of cocaine from a New York supplier.  Law enforcement overheard co-defendant Tyrone Bailey discussing drug activity over court-ordered wiretaps on a co-conspirator’s phones.

For example, on March 10, 2014, Bailey was overheard telling a co-conspirator that he was traveling to New York that day to obtain cocaine. As Bailey returned from New York, Maryland State Police conducted a traffic stop of Bailey’s pick-up truck for speeding.  Thomas was driving the vehicle and Bailey was the front seat passenger.  After a K-9 alerted to the presence of narcotics, law enforcement located an electronically controlled false compartment in the seat back of the rear bench seat.  The compartment contained approximately 4.2 kilograms of cocaine.  Law enforcement recovered $1,600 in cash and multiple cell phones from Bailey.  One of the cell phones recovered was the phone Bailey used to talk to his co-conspirator.

Tyrone Robert Bailey, age 28, of Baltimore, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to 10 years in prison. Thomas and Bailey have been detained since their arrest on March 10, 2014.

United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department, Maryland State Police, and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Christopher J. Romano 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 prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U. S. District Judge Richard D. Bennett sentenced William Hegie, age 54, of Baltimore, to 10 years in prison followed by five years of supervised release for conspiring to distribute five or more kilograms of cocaine, in connection with his participation in the Jenifer drug trafficking organization (Jenifer DTO).

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.

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

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

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

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

Baltimore, Maryland - Wilfred T. Azar, III, age 53, formerly of Queenstown, Maryland, pleaded guilty today to securities fraud and filing a false tax return.

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

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

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

From January 2006 to April 2010, Azar caused Empire Corporation to sell bonds to over 50 individual investors for more than $7 million.  While many of the bonds were titled “registered,” the bonds were not registered with either the U.S. Securities and Exchange Commission (SEC) or the state of Maryland.  In addition, Azar falsely told investors that Empire Corporation was in good financial health and that the company generated enough revenue to pay the promised 10 percent annual rate of return.  Azar falsely represented that the money invested would be used for a specific renovation project or other capital improvement at the Empire Towers office building.  Azar failed to inform investors that he used most of the money raised from previous bond sales for his own personal purposes. Although the bonds were issued by Empire Corporation, Azar diverted millions of dollars of proceeds from the bond sales to his own bank account and the bank accounts of other companies that he controlled.

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

During 2009, Azar embezzled approximately $1,959,250 in Empire funds, which he failed to report as income on his tax return.  This resulted in a tax loss to the government of $469,936.

Azar faces a maximum sentence of 20 years in prison for securities fraud, and a maximum of three years in prison for filing a false tax return. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for August 12, 2015, at 10:00 a.m.

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

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

United States Attorney Rod J. Rosenstein praised the IRS-CI, FBI and SEC for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory Bockin and Trial Attorney Kenneth Vert of the Justice Department’s Tax Division, who are prosecuting the case.

Greenbelt, Maryland – A federal jury convicted Gary Warren Hancock, Jr., age 37, of Temple Hills, Maryland, today of robbery, brandishing a firearm during the robbery and being a felon in possession of a gun and ammunition.

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

According to evidence presented during the six day trial, on May 2, 2013, Hancock entered the Pizza Hut restaurant at 1290 Crain Highway NW, Bowie, Maryland, pointed a handgun at an employee and demanded the opening of a safe.  When the employee said he could not open the safe, Hancock demanded money from the cash register.  The employee complied.  Hancock fled on a motorcycle.

A Bowie City Police Department officer happened to be on patrol just outside the Pizza Hut at the time, and was alerted by witnesses to the robbery. The officer saw Hancock fleeing on the motorcycle and gave chase. After a pursuit, Hancock crashed the motorcycle and was arrested.  Law enforcement officers recovered the stolen money and a loaded firearm.

Hancock had previously been convicted of numerous felonies, including carjacking, kidnapping and attempted robbery, and was thus prohibited from possessing a firearm and ammunition.

Hancock faces a maximum sentence of 20 years in prison for the robbery; a mandatory minimum sentence of seven years in prison and a maximum of life in prison for using a firearm during the robbery; and a mandatory minimum sentence of 15 years and a maximum sentence of life in prison for being a felon in possession of a gun and ammunition.  U.S. District Judge George J. Hazel has scheduled sentencing for August 11, 2015 at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended the ATF, Bowie and Prince George’s County Police Departments and the Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Michael T. Packard, who are prosecuting the case.

Baltimore, Maryland – Luis R. Valladares, age 52, of Hanover, Maryland, pleaded guilty today to mail fraud, admitting that his fraud schemes resulted in total losses of approximately $779,277.

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

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

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

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

As a result of the mortgage fraud scheme, Valladares has agreed to pay restitution of $487,000, the total amount of the victims’ losses.

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

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

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

The tax loss resulting from the tax fraud schemes totaled $292,277.

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

Valladares faces a maximum sentence of 20 years in prison.  U.S. District Judge William D. Quarles, Jr. scheduled his sentencing for July 29, 2015, at 1:00 p.m.

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

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

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

Greenbelt, Maryland –James Davis, age 56, formerly of Washington, D.C., pleaded guilty today to conspiring to commit robbery, robbery of money belonging to the United States, carrying and  brandishing a firearm during a robbery, and being a felon in possession of a firearm.

The plea agreement 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; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Chief Mark A. Magaw of the Prince George’s County Police Department and Chief Douglas Holland of the Hyattsville Police Department.

According to his plea agreement, on August 8, 2013, Davis and co-conspirator Recardo Beatty drove to the Hyattsville Post Office.  Beatty first entered the post office to scout the inside.  Davis then entered, while Beatty waited outside in their getaway vehicle.  Davis pointed a long black paintball gun at an employee.  The employee and another employee fled from their cash registers, while Davis grabbed money and money orders out of the register.  Davis and Beatty fled in their vehicle.

On August 15, 2013, the pair traveled to the Glut Food Co-Op in Mt. Rainer, Maryland.  As Beatty waited outside in the vehicle, Davis entered the store, walked behind a counter where an employee was working and displayed a paintball gun.  Davis ordered the employee to open the cash register and Davis removed money.  Davis and Beatty fled in their vehicle.

On September 17, 2013, Davis and Beatty traveled to the Dollars and Sense store in Brentwood, Maryland and entered the store together.  Davis demanded that an employee open a cash register, from which he took money and a cash box.  Beatty, who was armed with a firearm, saw another employee approach a store exit door.  A fight ensued, and the employee was hit on the head.  Davis and Beatty fled the store in their vehicle.

On the same day as the Dollars and Sense robbery, officers recovered the firearm from Beatty that was used in the robbery.  The next day, September 18, 2013, officers executed a search warrant at Beatty’s residence where Davis was staying, and recovered a paintball gun and clothing used in the robberies.

Davis had previously been convicted of a felony and was thus prohibited from possessing a firearm.

Davis and the government have agreed that if the Court accepts the plea agreement, Davis will be sentenced to 16 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for August 12, 2015 at 10:00 a.m.

Recardo Beatty, age 50, of Washington, D.C., previously pleaded guilty to his participation in the robberies and awaits sentencing.

United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service and the Prince George’s County and Hyattsville Police Departments for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Leah Jo Bressack and Special Assistant United States Attorney Matt Paeffgen, who are prosecuting the case.

Greenbelt, Maryland – A federal grand jury today indicted Michael Andrew Davila, age 26, of Berwyn Heights, Maryland, Elsie Liseth Pazmino, age 28, also of Berwyn Heights, and John David Hamlett, age 32, of Laurel, Maryland, for conspiracy to engage in sex trafficking of a minor, sex trafficking of a minor, and transportation of a minor for prostitution.

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

According to the three count indictment, between January and March 2015, the defendants conspired to, and did, have the victim, who was under the age of 18, engage in commercial sex acts.

Specifically, the indictment alleges that Davila enticed the victim to engage in prostitution and created and posted advertisements on the Internet that advertised the victim for prostitution.  According to the indictment, the advertisements used a false name and age for the victim and included pictures of another female, not the victim.  Davila and Pazmino allegedly answered text messages and calls from clients seeking to engage in sexual acts with the victim and arranged “dates” for the victim with those clients.  According to the indictment, Davila and Pazmino arranged and paid for hotel rooms in which the victim engaged in prostitution.  The defendants allegedly transported the victim to locations within and outside Maryland to engage in prostitution and benefited financially from the proceeds of the victim’s prostitution.

The defendants face a maximum sentence of life in prison. Davila, Pazmino and Hamlett were previously charged by criminal complaint.  After an initial appearance on the charges in the criminal complaint, Davila and Hamlett were ordered to be detained and Pazmino was released under the supervision of U.S. Pretrial Services.  No date has been set for the defendants’ initial appearance and arraignment on the indictment.

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

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

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

MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders.  Members include federal, state and local law enforcement, as well as victim service providers and local community members.  For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.

United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation and thanked the Anne Arundel County Police Department for its assistance.  Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Conor Mulroe, who are prosecuting the case.

Baltimore, Maryland – Michael Eugene Aldridge, age 42, of Hampstead, Maryland, pleaded guilty today to distribution and possession of child pornography.

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

According to Aldridge’s plea agreement, he covertly took videos of minor females, including while they were undressed, to produce child pornography.  Aldridge distributed those videos to others to encourage them to engage in the production of child pornography and exchanges the images and videos with Aldridge. On June 26, 2014, a search warrant was executed on his residence and Aldridge was interviewed by law enforcement.  During the interview, Aldridge admitted that he viewed and distributed child pornography.  A search of Aldridge’s email account recovered two images of child pornography.  A forensic analysis of his cell phone recovered 15 images depicting minors engaged in sexually explicit conduct.

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

Aldridge faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison, for distribution of child pornography; and a maximum of 10 years in prison for possession of child pornography, followed by up to lifetime of supervised release.   U.S. District Judge Marvin J. Garbis has scheduled sentencing for July 28, 2015, at 9:00 a.m.

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

United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Maryland State Police, and Carroll County Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Greenbelt, Maryland – A federal jury convicted Sam Rafic Ghanem, age 45, of Springfield, Virginia, today for attempting to illegally export defense articles, specifically firearms parts and accessories, to Lebanon, and for smuggling goods from the United States.

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

 Ghanem, a naturalized U.S. citizen born in Lebanon, owned and operated Washington Movers International, also known as Washington Movers, Inc., a freight forwarding business located in District Heights, Maryland.

According to evidence presented at his five day trial, beginning October 3, 2013, Ghanem sought to export guns and accessories to Lebanon through his shipping company that were provided to him by an FBI source.  Ghanem knew that the weapons and accessories were designated as defense articles and required an export license, which Ghanem never sought or obtained.  In addition, those items are prohibited from export to Lebanon.  The specific items Ghanem attempted to export included: seven 9mm semi-automatic pistols; three .40 caliber semi-automatic pistols; 10 AR-15 .223 caliber semi-automatic rifles; and 18 advanced combat optic gun sights.

According to trial evidence, on November 21, 2013, Ghanem told the source to pay him $3,000 for the cost of purchasing salvaged vehicles which would be used to export the firearms and accessories.  Ghanem texted the source his bank account number and at the direction of law enforcement, the source deposited $3,000 into Ghanem’s account.  Ghanem purchased the salvaged vehicles and arranged for them to be cut up.  Ghanem concealed the weapons and other items within the doors and cut-up parts of the salvaged vehicles, which were then loaded into a shipping container.  Ghanem advised the source that the shipping container would be loaded with the remaining car parts and transported to the Port of Baltimore for shipment to Lebanon on December 23, 2013.  Ghanem was subsequently arrested.

Ghanem faces a maximum sentence of 20 years in prison for attempting to illegally export defense articles, and 10 years in prison for smuggling. U.S. District Judge Roger W. Titus has scheduled sentencing for August 12, 2015 at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended the FBI and Homeland Security Investigations Washington, D.C., for their work in the investigation and thanked U.S. Customs and Border Protection for its assistance.  Mr. Rosenstein thanked Assistant U.S. Attorneys Christine Manuelian and Joseph R. Baldwin, who are prosecuting the case.

Baltimore, Maryland - Sharon Harrison, age 48, of Rosedale, Maryland, pleaded guilty today to embezzling more than $1.3 million from four non-profit organizations for which she worked and which received federal funding.

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; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General; and Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General.

“Non-profit organizations that receive federal funds have a legal duty to use them for the intended purpose,” said U.S. Attorney Rod J. Rosenstein.  “Sharon Harrison helped herself to federal funds intended to provide services for disadvantaged children and homeless families in Baltimore.”

According to her plea agreement Sharon Harrison was a bookkeeper or fiscal manager for the following non-profit groups, all of which received federal funds to assist in their mission:

Health, Education, Advocacy, Life Inc. (HEAL) from 2005 to March 2011; Between Friends, Inc. from September 2008 to November 2011; Jobs, Housing & Recovery, Inc. (JHR) from May 20, 2013 to February 12, 2014; and Reservoir Hill Improvement Council (RHIC) from December 2012 to February 2014.

HEAL and JHR provided services for the homeless in Baltimore City.  Between Friends assisted disadvantaged children to find foster homes and provided services to the children and their foster families.  RHIC assessed community needs, developed and implemented solutions on issues common to the Reservoir Hill Community in Baltimore.

Over the course of her employment at HEAL, RHIC, JHR and Between Friends, Harrison embezzled over $1.3 million. Specifically, Harrison admitted that she embezzled: $226,888.34 from HEAL; $784,781.17 from Between Friends; $161,750.14 from JHR; and $133,178.04 from RHIC.  As part of her plea agreement, Sharon Harrison agreed to the entry of a restitution order for the full amount of the victim’s losses, $1,306,797.70.

Sharon Harrison faces a maximum sentence of 10 years in prison for federal program theft.  U.S. District Judge J. Frederick Motz has scheduled sentencing for June 30, 2015, at 11:00 a.m.

United States Attorney Rod J. Rosenstein praised the FBI, HUD-OIG and Baltimore Office of Inspector General, for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.

Baltimore, Maryland – A federal jury today convicted Nikolay Zakharyan, age 24, of Owings Mills, Maryland, for conspiracy to receive, possess, sell and distribute over $6.6 million in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid.  Nikolay’s father, Artur Zakharyan, age 54, of Reisterstown, pleaded guilty before trial to his participation in the conspiracy.

The conviction and guilty plea 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 James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.        

According to their guilty pleas, Elmar Rakhamimov was the leader and organizer of the scheme, and he coordinated with Ilgar Rakhamimov (no relation) and Artur Zakharyan to collect the money to purchase the contraband cigarettes, and to arrange for the storage and transportation of the contraband cigarettes to Brooklyn, New York.  Elmar Rakhamimov, Ilgar Rakhamimov, and Artur Zakharyan purchased contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area.

According to court documents and testimony at the five day trial, Artur Zakharyan recruited his son, Nikolay Zakharyan, to participate in the scheme. Nikolay Zakharyan assisted in the unloading, accounting, bagging, moving and loading of the master cases of contraband cigarettes.  Nikolay Zakharyan traveled to the home of Elmar Rakhamimov to assist during no less than 10 deliveries of contraband cigarettes.  Nikolay Zakharyan unloaded the cases of cigarettes from the truck into Elmar Rakhamimov’s garage and counted the number and types of cigarettes delivered to ensure that the delivery was complete.  Nikolay Zakharyan also traveled to Elmar Rakhamimov’s home in the days following the delivery of the cigarettes to load them into the vehicle used to transport the contraband cigarettes to Brooklyn, New York.

Other members of the conspiracy included Zarakh Yelizarov, Salim Yusufov, Adam Azerman, Shamil Novakhov, and Ruslan Ykiew.

The first transaction occurred at Chesapeake Monuments, a business owned by Ilgar Rakhamimov, on December 11, 2011, when Elmar Rakhamimov and Ilgar Rakhamimov purchased 20 master cases of contraband cigarettes in exchange for $18,000 in cash.  After the first transaction, the contraband cigarettes were delivered to and stored at the home of Elmar Rakhamimov in Owings Mills.  Prior to each transaction, Elmar Rakhamimov, Ilgar Rakhamimov, and Artur Zakharyan discussed the transaction on the phone, and frequently met at Elmar Rakhamimov’s home to discuss the purchase and compile and count the money for the transaction.

The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes).  The total tax evaded over the course of the conspiracy was more than $2.5 million. 

Following many of the deliveries, the conspirators met at Elmar Rakhamimov’s residence to discuss moving the cigarettes to Brooklyn, New York where the cigarettes were sold at a profit to individuals in New York, who further distributed the contraband cigarettes.  The cigarettes were often transported from Maryland to New York by Adam Azerman, who delivered them to Shamil Novakhov, a relative of Ilgar Rakhamimov.  Ilgar Rakhamimov brought Novakhov into the conspiracy, and was the primary contact with Novakov throughout the conspiracy. Novakhov’s nephew, Ruslan Ykiew, also would travel from New York to Maryland to obtain contraband cigarettes and transport them to his uncle in New York.  Ykiew initially stored the cigarettes in a restaurant he owned.  At Novakhov’s request, in 2012 Ykiew rented a warehouse for the storage of the contraband cigarettes.  Ilgar Rakhamimov and his co-conspirators paid $30 for each carton of contraband cigarettes, and sold them to buyers in New York for approximately $41 - $45 per carton.

Yelizarov and Elmar Rakhamimov laundered the proceeds of the contraband cigarette sales through an international money laundering operation that wired funds from banks located in Latvia, Cyprus, Estonia, and New York, to a bank in Maryland, disguising the money as legitimate business payments for medical equipment or supplies. From December 27, 2012 through September 5, 2013, Yelizarov and Rakhamimov wired a total of $649,500 through 12 transactions. 

As part of his plea agreement, Artur Zakharyan is required to forfeit $50,000 believed to be proceeds of the offense, $11,947 and a 1 troy ounce gold bar seized from Zakharyan’s belongings on December 17, 2013, and four troy ounce gold bars and a gold coin seized from his home on December 11, 2013.

Artur and Nikolay Zakharyan each face a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes.  U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Artur Zakharyan for July 9, 2015, at 1:00 p.m. and for Nikolay Zakharyan on July 29, 2015 at 10:00 a.m.

Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland, and his brother, Salim Yusufov, age 44, of Reisterstown, Maryland; Ilgar Rakhamimov, age 41, Zarakh Yelizarov, age 52, and Adam Azerman, age 60, all of Pikesville, Maryland; and Shamil Novakhov, age 59, and Ruslan Ykiew, age 40, both of Brooklyn, New York, previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.

United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office for its assistance in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.

Greenbelt, Maryland – A federal grand jury has indicted Anthony Lamont Payne, age 27, of District Heights, Maryland, today on charges of second degree murder arising from a fatal car crash.  The indictment was returned yesterday and unsealed today upon his arrest.

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

The one count indictment alleges that Payne killed the victim on March 20, 2015.  The charge arises from a fatal car crash on the Baltimore-Washington Parkway.

Payne faces a maximum sentence of life in prison.  An initial appearance was held at 4:00 p.m. today in U.S. District Court in Greenbelt.  Payne was detained under the supervision of U.S. Pretrial Services, pending a detention hearing to be held on April 30, 2015 at 12:30 p.m.

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 U.S. Park Police for its work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Conor Mulroe, who are prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Parris Benjamin Chisholm, age 24, of Millersville, Maryland, today to 16 years in prison, followed by three years of supervised release, for armed robbery and brandishing a firearm during a crime of violence, related to the robberies of cell phone stores.

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

According to his plea agreement, from January 29, 2013 through his arrest on March 26, 2013, Chisholm participated in the armed robberies of five cell phone stores in Anne Arundel, Baltimore and Montgomery Counties, along with co-defendants Donald Scott Deans, and Tyran Antwain Lane.

Specifically, Chisholm, his co-defendants, and others, planned and organized the theft of cash, credit cards, cell phones, portable electronic communications devices, and tablet computers from businesses, their employees and customers. Chisholm and his co-defendants then sold the stolen property for cash.  According to his plea agreement and other court documents Chisholm or his co-defendants used and brandished a gun to intimidate the employees during the robberies. In at least three of the armed robberies the defendants used duct tape to restrain employees and trash bags to carry the stolen items. The defendants used Chisholm’s car to travel to and from the robberies and to transport the stolen property and guns used during the robberies.  Cell phone records show that Chisholm, his co-defendants and others involved in the robberies and/or the sale of the stolen items communicated by cell phone calls and text messages before and after the robberies.

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

Donald Scott Deans, age 23, of Largo, Maryland; and Tyran Antwain Lane, age 23, of New Carrollton, Maryland, previously pleaded guilty to their participation in the robberies.  Deans is scheduled to be sentenced on April 24, 2015, at 9:15 a.m., and Lane is scheduled to be sentenced on July 31, 2015 at 11:30 a.m.

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

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Heather Lynn Koons, age 33, of Hagerstown, Maryland today to 37 months in prison, followed by three years of supervised release, for distribution of heroin to an individual, resulting in his death from a heroin overdose. Judge Bennett also ordered Koons to pay restitution of $3,484 to the victim’s family.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Washington County Sheriff Douglas W. Mullendore.

According to her plea agreement, on October 19, 2012, Koons distributed approximately one gram of heroin to two individuals.  One of the individuals, Daniel Shorten, died later that evening of a heroin overdose.  Following Shorten’s death, Koons and the other individual exchanged text messages and had a series of phone conversations about the overdose. During one of the phone calls Koons instructed the individual to delete text messages from her phone and to refrain from contacting Koons for two weeks.  During a recorded phone conversation on October 23, 2012, Koons admitted that she distributed heroin to Shorten and the other individual prior to Shorten’s death.

United States Attorney Rod J. Rosenstein praised the DEA and Washington County Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted the case.