District of Maryland

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Steven Andrew Young, age 39, of Baltimore, today to 12 years in prison followed by four years of supervised release, after Young pleaded guilty today to conspiracy to distribute and possession with intent to distribute heroin.

The plea and sentence were 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, from at least January to May 2014, Young obtained large quantities of heroin which he and others broke down and packaged for street-level distribution. Law enforcement officers saw Young using a vehicle during suspected drug transactions, and saw Young selling drugs out of a home on Greencrest Road in Baltimore.

On May 23, 2014, investigators executed search warrants for the vehicle and house, and seized a loaded semi-automatic handgun, two plastic bags containing approximately 47 grams of heroin, 3,700 empty gelatin capsules used to package heroin for street-level distribution, and several large bags of cutting agent.

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

United States Attorney Rod J. Rosenstein commended the DEA, 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 Christopher Flagg and Assistant United States Attorney Christopher Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – Max Wagenblast, age 35, of Arlington, Virginia, pleaded guilty today to wire fraud in connection with a scheme to steal over $5 million from his company.

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

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

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

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

Wagenblast faces a maximum sentence of 20 years in prison and a fine of $250,000 for wire fraud.  U.S. District Judge Theodore D. Chuang scheduled his sentencing for July 20, 2015, at 11:00 a.m.

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.

Greenbelt, Maryland - Russell Edward Johnson, age 23, of Lusby, Maryland, pleaded guilty today to distributing heroin to a person who died as a result of ingesting the heroin.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Laura Martin.

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

Johnson and the government have agreed that if the Court accepts the plea agreement, Johnson will be sentenced to between 10 and 12 years in prison.  U.S. District Judge Paul W. Grimm has scheduled sentencing for June 18, 2015, at 1:00 p.m.

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

Greenbelt, Maryland – A federal grand jury has indicted Jeffrey Sean Nazari, age 44, of Silver Spring, Maryland, on charges of distributing a controlled substance analogue resulting in death, possession with intent to distribute a controlled substance analogue, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.  The indictment was returned today.

The indictment 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; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.     

According to the four count indictment and court documents, on January 4, 2015, Nazari allegedly distributed acetyl fentanyl, a controlled substance analogue that he represented to be heroin, to an individual who subsequently died as a result of using the substance.  As part of the investigation into that death a search warrant was obtained for Nazari’s residence.  The indictment alleges that on January 7, 2015, Nazari possessed acetyl fentanyl with the intent to distribute it, and illegally possessed a .380 caliber handgun.

Nazari faces a mandatory minimum sentence of 20 years and up to life in prison for distribution of acetyl fentanyl with death resulting; a maximum of 20 years in prison for possession with intent to distribute a controlled substance analogue; a minimum of five years, consecutive to any other sentence, and up to life in prison for possession of a firearm in furtherance of a drug trafficking crime; and up to 10 years in prison for being a felon in possession of a firearm.  No court appearance has been scheduled.  Nazari is currently detained on related state charges.

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

United States Attorney Rod J. Rosenstein praised the DEA, Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Nicolas A. Mitchell, who are prosecuting the case.

Greenbelt, Maryland –Wilmer Argueta, a/k/a “Chengo,” 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 an assault, attempted murder and extortion.

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; Special Agent in Charge William Winter 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 the statement of facts filed with his plea agreement, from 2009 until at least 2012, Argueta was a member and leader of the Peajes Locos Salvatrucha clique of MS-13. Argueta and MS-13 members in the Peajes clique and other MS-13 cliques 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.

Argueta admitted that on January 3, 2010, he and other MS-13 members attempted to kidnap and assault two victims in the area of East-West Highway and Riggs Road.  After the two victims fled in different directions, several MS-13 members allegedly caught one of the victims in a nearby wooded area and sexually assaulted her as retribution for associating with a rival gang.

According to the plea agreement, on January 13, 2011, Argueta attended a Peajes clique meeting with co-defendant Roni Arriola-Palma and other MS-13 members near the Greenbelt Metro Station.  Another MS-13 member spoke at the meeting, criticizing members of the clique for not committing enough violent crimes on behalf of MS-13, and encouraging clique members to find rival gang members and commit acts of violence against them.

After the meeting ended, Argueta and other MS-13 members got into a mini-van being driven by 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, where they continued to assault him.  Arriola-Palma drove the mini-van around Hyattsville, eventually parking near a dead end in the vicinity of Chillum Manor Road.  After Arriola-Palma stopped the mini-van, Argueta and several other MS-13 members kicked, stabbed and choked the victim.  Since the victim was wearing heavy winter clothing, Argueta, Arriola-Palma and other MS-13 members forcefully stripped the victim of all clothing, in order to stab the victim.  After the assault, two MS-13 members dragged the victim into the woods, where one of the gang members strangled the victim with his belt.  When they returned from the woods, they informed the other members that the victim was dead.  Arriola-Palma then drove the group of MS-13 members away from the scene.  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 a weekly or bi-weekly “rent” or “tax,” which gang members collected from the victim.  Argueta admitted that he ordered other MS-13 associates to relay the death threats to the victim, and contacted the victim himself on multiple occasions to arrange extortion payments.  Argueta picked up payments himself, and sent other MS-13 members, including Arriola-Palma, to pick up extortion payments on his behalf.  Argueta also used “Facebook,” “Gmail,” and text messaging to relay the extortion demands to the victim.

According to his plea, from September to November 2011, Argueta ordered a “greenlight,” which is an order to kill, from inside Prince George’s County Corrections Facility on a victim who planned to testify against him in Circuit Court for Prince George’s County.  During the conspiracy, Argueta contacted co-defendant Francisco Hernandez from the Prince George’s County Corrections Facility and instructed Hernandez to relay to other MS-13 members that the victim now had a “greenlight” on him.  Members of the Peajes Clique of MS-13 acted on this “greenlight,” shooting the victim on November 15, 2011.

Argueta faces a maximum sentence of life in prison.  U.S. District Judge Roger W. Titus has scheduled sentencing for August 4, 2015, at 2:00 p.m.  Argueta remains detained pending sentencing.

Francisco Hernandez, age 21, and Roni Arriola-Palma, age 24, both of Hyattsville, previously pleaded guilty for their roles in the racketeering conspiracy and are scheduled to be sentenced at 10:00 a.m. on June 29 and June 30, 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

Greenbelt, Maryland – A criminal complaint was filed today in U.S. District Court in Maryland charging Ronald Anderson, age 48, of Suitland, Maryland, with kidnapping, murder, using and discharging a firearm during a crime of violence, and causing death by use of a firearm during a crime of violence.

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; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Director Eric Patterson of the Federal Protective Service, Department of Homeland Security.

According to the affidavit filed in support of the criminal complaint, on April 9, 2015 Anderson abducted victim 1 at gun point from the 1800 block of 3rd Street, NE, Washington, D.C.  Anderson drove victim 1 to the rear of his apartment complex in Suitland, Maryland.  On the way, he called another person (victim 2) and asked her to meet him at his apartment.  When Anderson and victim 1 arrived at the apartment complex, Anderson parked next to victim 2’s vehicle.  Anderson exited his car and approached the driver’s side of victim 2’s vehicle.  Victim 2 saw that victim 1 was crying and victim 1 mouthed words to victim 2 asking for help.  Victim 1 got out of Anderson’s vehicle and into victim 2’s Honda CRV.  Victim 2 sped off with victim 1.  Anderson got back into his car and pursued the CRV at a high rate of speed.

Victim 2 fled to the U.S. Census Bureau building at 4600 Silver Hill Road in Suitland, because she knew there were armed security officers there.  As victim 2 drove into the Census Bureau complex, Anderson continued to pursue the CRV.  As Anderson continued to chase her, Victim 2 crashed the Honda CRV into a light pole near two armed security officers, including Officer 1. Anderson stopped his vehicle behind the Honda CRV and exchanged gunfire with Officer 1, striking Officer 1 once in the chest.  Anderson fired additional rounds at a second officer, but did not hit that officer.  Anderson then fled from the Census Bureau in his dark colored Honda Accord.  Prince George’s County Police Officers responded to the Census Bureau for a shooting in progress.  Upon arrival, police officers located Officer 1, suffering from a gunshot wound.  Officer 1 was transported to the Prince George’s County Hospital Center where he was pronounced dead.

Later that evening, Metropolitan Police Department (MPD) officers saw Anderson driving the Honda Accord and attempted to make a traffic stop.  Anderson continued to flee, and fired numerous times at MPD officers.  The pursuit concluded in the vicinity of 11th and H Street, NE in Washington DC. Anderson continued to fire at law enforcement. MPD officers returned fire, striking Anderson multiple times. One MPD officer was struck in the leg.  Anderson and the MPD officer were transported to the hospital for treatment.  Anderson had identification on him and his identity was further confirmed by a comparison of fingerprints taken from Anderson at the hospital.  Law enforcement saw a .45 caliber handgun in plain view in the Honda Accord.

If convicted, Anderson faces a maximum sentence of death or life in prison. An initial appearance has not been scheduled.  Anderson continues to undergo medical treatment and remains detained on related charges filed in the Superior Court for the District of Columbia.

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 FBI, Prince George’s County Police Department, Metropolitan Police Department, and the Federal Protective Service of the National Protection and Programs Directorate, Department of Homeland Security for their work in the investigation and thanked the U.S. Attorney’s Office for the District of Columbia for its assistance.  Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Bryan E. Foreman, who are prosecuting the case.

Greenbelt, Maryland – Jason Miskiri, age 39, of Silver Spring, Maryland pleaded guilty today to conspiring to possess with intent to distribute more than 1,000 kilograms of marijuana.

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

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

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

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

Miskiri used the drug proceeds to open the Society Lounge, an upscale nightclub located on Georgia Avenue in Silver Spring, Maryland. At the time the night club opened ,  Miskiri received as much as $1 million in cash for each load of marijuana that he obtained from the Mullings DTO and sold in Maryland.

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

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

Miskiri has agreed to forfeit all of his interest in Society Lounge, and to pay taxes for 2009 to the present.

Miskiri faces a maximum sentence of life in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for September 14, 2015 at 2:00 p.m.          

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

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

Greenbelt, Maryland – A federal jury convicted Kenneth Wayne Watford, age 55, of Bowie, Maryland, today of conspiring to commit wire fraud, four counts of wire fraud and attempted wire fraud, three counts of credit card fraud and attempted credit card fraud, and four counts of aggravated identity theft in connection with the wire and credit card fraud offenses.  Watford’s fraud schemes involved using the stolen identities of others to purchase expensive cars and obtaining credit cards in Watford’s businesses’ names backed by other people’s credit.  After being charged with the first scheme, and while on federal pre-trial supervision, Watford also used another victim’s stolen identity to obtain and use a credit card to make purchases exceeding $14,300.

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Chief J. Thomas Manger of the Montgomery County Police Department, and Chief John Nesky of the Bowie Police Department.

According to evidence presented at his six day trial, Watford, Flinton Newton and Juan Carlos Willis obtained the identity information of credit-worthy individuals, created false identity documents in the names of those individuals, and then posed as those individuals at automotive dealerships in order to apply for vehicle financing.  Watford and his coconspirators filled out credit applications with dealers in Maryland and Virginia, and then used the extended credit to purchase, or attempt to purchase, expensive cars without any intention of making payments on the loans.

On June 23, 2012, Watford, Willis and a coconspirator posing as an identity theft victim used the victim’s identity to complete and submit a credit application for $77,450 in financing to purchase a 2011 BMW 750 at BMW of Silver Spring, Maryland.

On June 29, 2012, Watford used the victim’s identity to apply for an American Express business credit card account in the name of Annie M’s Groceries, a business entity Watford had registered in North Carolina the previous year.  Evidence presented at trial also revealed that Watford, Willis and the unidentified co-conspirator also attempted to purchase two Cadillac Escalades using the same victim’s credit from Capitol Cadillac in Greenbelt.  

On July 19, 2012, Newton and Willis returned to Capitol Cadillac in Greenbelt.  On that day, Newton posed as a second victim whose identity he had fraudulently obtained, to apply for $80,663 in financing to purchase a 2013 Cadillac Escalade in the second victim’s name. Watford had provided Willis with access to a business auto insurance policy he had established in the name of Annie M’s Groceries, a company which Watford claimed to have owned.  Willis used this online access to Watford’s insurance policy to obtain proof of insurance in support of the vehicle purchase.

Later that evening, Newton and Willis drove to Mercedes-Benz of Silver Spring where Newton again posed as the second victim.  The men attempted to purchase a 2012 Mercedes-Benz CL550 and a 2009 Mercedez-Benz S550 for a total of $120,056.  They filled out credit applications to finance the entire purchase price, again using the victim’s identity and credit, and an insurance policy under the name of Annie M’s Groceries. The dealership manager, however, saw that the victim’s credit had just been used to purchase the Cadillac Escalade, so he notified Montgomery County Police, who responded and arrested Newton and Willis.

A subsequent search of Willis’ cell phone revealed text messages between Willis and Watford concerning the purchase and use of the BMW, as well as the victim’s personal information. On July 26, 2012, Watford was arrested while driving the BMW in Bowie. Inside the car were the victim's credit reports from three credit bureaus, and a social security card and driver’s license in the name of Watford’s alias, “Abdul Abrams.” Law enforcement executed a search warrant at Watford’s residence and seized credit reports and financial documents in the names of other victims.

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

After Watford was charged for the above scheme and released pending trial in 2013, he obtained the personal identifying information of a third victim.  Using that identity to guarantee the cards, Watford twice applied for credit cards in the name of a second business entity he controlled, Futranet Coaches of America.  Watford’s first attempt, an application to American Express in August 2013, was declined; however, in September 2013 Watford successfully used the third victim’s credit to obtain a $15,000 line of credit with Fleetcor, LLC, a credit-card issuer specializing in fuel cards.  During the next month, Watford ran up over $14,300 in purchases on cards issued on that account, including $13,000 paid to a former business associate who was holding several vehicles belonging to Watford as collateral on a large outstanding debt Watford owed him.  In addition to being found guilty of two counts of unauthorized credit card use and two counts of aggravated identity theft in conjunction with this post-release conduct, Watford was also found guilty of committing these offenses while on federal pre-trial release, which means that his sentences for these counts must run consecutive to his sentence on the automobile-related fraud charges.

The federal jury acquitted Watford of the charge of being a felon in possession of a gun.

Watford faces a maximum sentence of 20 years in prison for the conspiracy count; 30 years in prison for each wire fraud count; 10 years in prison for being a felon in possession of a firearm; 15 years in prison for each credit card fraud count; and a mandatory minimum of two years in prison consecutive to any other sentence for each aggravated identity theft count.  U.S. District Judge Peter J. Messitte scheduled sentencing for July 28, 2015, at 9:30 a.m.

Flinton Newton, age 34, of Bartlett, Tennessee previously pleaded guilty to his participation in the scheme and was sentenced to 42 months in prison for conspiring to commit wire fraud and aggravated identity theft.  Juan Carlos Willis, age 41, of Hyattsville, Maryland pleaded guilty to the same offenses on the day before his trial was scheduled to begin, and is awaiting sentencing.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

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

Baltimore, Maryland – Jesse David Kuchta, age 28, of Manchester, Maryland, pleaded guilty today to production and possession of child pornography.

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

According to Kuchta’s plea agreement, on May 14, 2014, a detective with the Carroll County Sheriff’s Office received a Cybertip from the National Center for Missing and Exploited Children (NCMEC) concerning images depicting minors engaged in sexually explicit conduct that had been uploaded to Photobucket, a free image and video hosting website.  Based on their investigation of the tip, law enforcement identified Kuchta as the holder of the Photobucket accounts and obtained a search warrant for his address in Manchester.  On May 14, 2014, law enforcement executed the search warrant.

During the search, Kuchta arrived at the home and spoke with investigators.  He admitted taking the images and videos of a minor female engaged in sexually explicit conduct and uploading them to his Photobucket accounts.  Law enforcement seized a flash drive, two micro SD cards and two cell phones used in the production, possession or transportation of child pornography, as well as other items of evidence that were seen in the images and videos that Kuchta produced.

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

Kutcha faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison for production of child pornography; and a maximum of 10 years in prison for possession of child pornography, each followed by up to lifetime of supervised release.  U.S. District Judge George L. Russell, III has scheduled sentencing for August 7, 2015 at 11:30 a.m.

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police, Carroll County Sheriff’s Office and Carroll County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Paul Anthony Philip III, age 31, of Glen Burnie, Maryland, today to four years in prison, followed by 15 years of supervised release, for possession of child pornography. Judge Blake ordered that upon his release from prison, Philip must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter 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 Philip’s plea agreement, during January and February 2014, Philip logged onto a website designed for video and file sharing.  On the website Philip described himself and offered to share child pornography in exchange for “hardcore” pornography involving fathers and daughters.  During that time, Philip admits that he received two emails, containing images of children engaged in sexually explicit conduct, including pre-pubescent children.  For example, on  January 29, 2014, Philip received an email containing two images depicting young toddlers subject to abuse and degradation and displayed in a lascivious manner.  Philip also sent emails with images of child pornography.  For example, on January 29, 2014, Philip sent an email which included two video files depicting young infants subjected to sadomasochistic activities.

On August 1, 2014, a search warrant was executed at Philip’s home and his cell phone was seized.  Philip admitted that he used his cell phone to access the internet in order to solicit, trade, download and view child pornography.  A forensic examination of Philip’s phone revealed 3783 digital images and videos, all of which contained visual depictions of minors engaged in sexually explicit conduct.  Many of the images included photographs of young children who are bound/restrained and subject to physical and sexual abuse.

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

United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore and the Baltimore Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Curlee Smittie, age 42, of Baltimore, today to 18 months in prison followed by three years of supervised release for wire fraud in connection with a scheme to defraud his bank and an automobile auction house. Chief Judge Blake also entered an order that Smittie pay restitution of $632,850.24.

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

According to his plea agreement, from April 2008 until January 2009, Smittie fraudulently obtained checks from an automobile auction company by buying cars he already owned, using the company’s short-term credit program.

The company operates auction houses for automobile dealers at locations throughout the United States.  Automobile dealers must be registered with the company to buy or sell automobiles at its locations.  An individual who wishes to sell an automobile must list the car for sale under the name of a registered automobile dealer.  Smittie was registered as a buyer and a seller under the company name Smittie Auto Brokers.

For buyers with an established track record of timely payment, such as Smittie, the company extended short term credit for purchases.  Under this arrangement, the company issued a check for the proceeds of the automobile sale to the seller of the automobile on the day of sale.  The buyer was allowed to take the automobile, with the promise to pay the purchase price to the auction company within two weeks.

Smittie admitted that he would list an automobile that he already owned for sale under the name of another registered automobile dealer.  Smittie then purchased the automobile in his own name or the name of Smittie Auto Brokers, using the auction company’s short term credit program.  Thus, Smittie was “selling” the car to himself using the company’s money.

As the person who had listed the car for auction, Smittie accepted the seller proceeds check from the company and deposited those checks into his business checking account.  When the time came for Smittie to repay the short term loan from the auction company, Smittie sold another car to himself in the same manner, and used the seller proceeds to pay the previous debt.

As a result of the scheme, from April 2008 until January 2009, Smittie received a total of $2,126,997.50 in seller checks from the auction company and deposited them into his bank account.

In January 2009, employees at the auction company learned of Smittie’s scheme and ordered its bank to stop payment on all checks to sellers from whom Smittie had purchased automobiles.  Once all of the checks that Smittie had recently deposited were reversed, the bank was left with a loss of $166,500.16.

When the auction company discovered Smittie’s scheme, Smittie owed the company $702,956.28 for automobiles that he had purchased using the company’s short term credit.  The company was able to recover $236,606.20 by repossessing some of the automobiles Smittie had purchased, but was left with a loss of $466,350.08.

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Robert Johnson, age 33, of Perry Hall, Maryland, today to a year and a day in prison followed by three years of supervised release, and ordered him to serve 75 hours of community service, for wire fraud conspiracy and aggravated identity theft related to a scheme to defraud the City of Baltimore through the reissuance of fraudulent checks for pay and benefits.

On March 4, 2015, a federal jury convicted co-defendant Denita Hill, age 26, of Baltimore, of wire fraud conspiracy and two counts of aggravated identity theft, related to the scheme.

The sentence and trial conviction were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.     

Johnson worked in the Consumer Relations Service of the U.S. Department of Veteran’s Affairs. Denita Hill was an accountant in the Finance Department of the City of Baltimore.

Baltimore City employees who leave their employment are entitled to a lump sum check of any pay and benefits for which they are qualified.  According to his guilty plea and court documents, from July 11, 2013 to August 2, 2013, Johnson and Hill used the financial and identity information of former Baltimore City employees to request fraudulent employee benefit payout checks. Hill identified individuals who had received and cashed large lump sum payments and then requested that such checks be reissued, as if they had not been received.  These duplicate checks were printed at the Baltimore City Finance Office, where Hill stole the checks.  Hill delivered the checks to Johnson, endorsed to him and purportedly signed by the original payee.  Johnson endorsed and cashed the checks, deposited the proceeds into his bank account and used the funds for his and Hill’s benefit.

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

After Johnson attempted to wire some of the funds to pay off an account at a different financial institution, Johnson’s bank was alerted to the suspicious transactions and referred the matter to the City of Baltimore Office of the Inspector General, who sought the assistance of the Finance Department in determining the authenticity of the endorsements. Hill was tasked with the investigation and notified Johnson of the problem.  Hill attempted to derail the investigation and obtain release of the funds by the bank by claiming to have spoken with the check recipients, who purportedly confirmed that the endorsements were genuine. In fact, neither statement was true.  Meanwhile, Johnson’s bank had reversed the deposits and returned the funds to the City of Baltimore, leaving a large deficit in Johnson’s account balance.  Johnson obtained funds from Hill to repay the amount due.

Over the course of the conspiracy, Johnson and Hill fraudulently obtained approximately $70,000 all of which was ultimately recovered.

Denita Hill faces a maximum sentence of 20 years in prison for the wire fraud conspiracy; and two years in prison, consecutive to any other sentence imposed, on each of two counts for aggravated identity theft.  Judge Russell has scheduled her sentencing for May 19, 2015 at 2:00 p.m.

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

Greenbelt, Maryland - U.S. District Judge George J. Hazel sentenced Janice McCumbie, age 45, of Marydel, Maryland, today to 37 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a scheme to steal over $1.2 million from a consulting company. Judge Hazel entered an order that McCumbie forfeit and pay restitution of $1,249,267.53, the loss resulting from her conduct.

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

According to her plea agreement, McCumbie worked for a global consulting business that had offices in Maryland and elsewhere.  Clients paid large retainers to secure consulting services.  The consulting company would issue refund checks to the clients in certain circumstances, including when a client’s retainer exceeded the amount of work that the consulting company actually performed or when the client made duplicate payments to the consulting company. McCumbie’s duties included coordinating client refunds.

Between June and December 2008, McCumbie caused the consulting company to issue six fraudulent refund checks totaling $121,081.22 to a co-conspirator in exchange for a share of the check proceeds.

From February 2009 to October 2013, McCumbie caused the consulting company to issue 42 false refund checks totaling $910,490.74 to co-defendant Leonard Smedley in exchange for a share of the check proceeds.  Similarly, from October 2010 to November 2013, McCumbie caused the consulting company to issue 17 false refund checks totaling $217,695.57 to her niece, co-defendant Amber Gayleard, who cashed the checks and shared the proceeds with McCumbie. Smedley and Gayleard were not clients of the consulting company.

Leonard Smedley II, age 35, of Capitol Heights, Maryland; Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania, and Brian Hooper, age 43, of Woodbridge, Virginia previously pleaded guilty to the conspiracy.  Judge Hazel sentenced: Hooper to 27 months in prison and ordered him to pay restitution of $1,031,571.96; Gayleard to 21 months in prison and ordered her to pay restitution of $217,695.57; and Smedley to 18 months in prison and ordered him to pay restitution of $910,490.74.

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

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Thomas Sean Tinsley, age 29, of Glen Burnie, Maryland today to 11 years in prison, followed by 35 years of supervised release, for sex trafficking of a minor. Tinsley is a registered sex offender, having previously been convicted of having sex with a minor female.

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 Tinsley’s plea agreement, in May 2013, Tinsley met a 15 year old runaway near the Gallery Mall in downtown Baltimore, and invited her to live with him at his residence - a motel on Caton Avenue in Baltimore.  Soon thereafter, Tinsley began having sex with the victim.

Tinsley encouraged the victim to engage in prostitution to pay for the motel room and to provide him with additional money.  The victim routinely met with prostitution clients and communicated with Tinsley regarding her client interactions, including the location of the commercial sex and the identity of her patrons.  Tinsley monitored the victim’s commercial sex activities and gave her instructions regarding her client interactions, including telling her to collect cash before the commercial sex.  Sometimes, Tinsley negotiated directly with prospective clients for commercial sex on behalf of the victim.         

According to court documents, a confidential informant called law enforcement after Tinsley offered the victim to him to perform commercial sex acts for $100.  The FBI’s Crimes Against Children Task Force was alerted and law enforcement responded to Tinsley’s motel room, where they located the victim.

Inside the motel room were condoms, cell phones and prescription medication.  Law enforcement also recovered from the room Tinsley’s sex offender registry paperwork from a 2007 conviction, which listed the motel address as his “place of residence.”

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, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

Baltimore, Maryland - A federal grand jury has returned a superseding indictment against the owner of Alpha Diagnostics, Rafael Chikvashvili, age 67, of Baltimore, Maryland, adding four counts of  health care fraud resulting in serious bodily harm and death, as well as conspiracy and wire fraud, related to a scheme to defraud Medicare and Medicaid of more than $7.5 million.  The superseding indictment was returned late on April 9, 2015.  No court appearance has been scheduled yet for Chikvashvili on the superseding indictment, and he continues on release under the supervision of U.S. Pretrial Services.

The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.       

According to the indictment, Chikvashvili formed Alpha Diagnostics Services, Inc., which later became Alpha Diagnostics, LLC, in 1993, and always acted as Managing Member, Authorized Official, Managing Employee, President and Chief Executive Officer for Alpha Diagnostics. Chikvashvili holds a PhD in mathematics, but was never a medical doctor or licensed physician. Timothy Emeigh was the Vice President in charge of Operations at Alpha Diagnostics.  He was a licensed radiologic technologist.

Alpha Diagnostics was a portable diagnostic services provider, principally of X-rays, but also provided ultrasound tests, and cardiologic examinations.  Alpha Diagnostics operated in Maryland, Delaware, Pennsylvania, Virginia and the District of Columbia.  Alpha Diagnostics was headquartered in Owings Mills, Maryland, where Chikvashvili worked full time.

The 33-count superseding indictment alleges that beginning in 1997 through October 2013, Chikvashvili conspired with Timothy Emeigh and others to defraud Medicare and Medicaid by creating false radiology, ultrasound and cardiologic interpretation reports; by submitting insurance claims for medical examination interpretations that were never completed by licensed physicians; by falsely representing to Medicare and Medicaid, as well as to treating physicians, that the interpretations had, in fact, been completed by actual licensed physicians; and by submitting insurance claims for radiology, ultrasound and cardiologic examinations (and their associated costs) that were never performed, and/or which were in excess of the number of examinations ordered by the treating physician.

For example, in June 2012, Emeigh traveled to Jamaica for a vacation.  The superseding indictment alleges that Chikvashvili directed Emeigh, through text messages and telephone calls, to view medical images using his personal laptop in his hotel room and then draft false physician interpretation reports.  Alpha Diagnostics personnel subsequently submitted false claims to Medicare for these images and fraudulent physician reports.

The superseding indictment alleges that four patients died because their x-rays were not interpreted by a qualified radiologist.  Instead, Alpha Diagnostics employees reviewed the images and failed to detect congestive heart failure, pneumonia, and a large pelvic mass revealed in the images. The patients suffered serious complications, and ultimately died.  According to the indictment, had those images been correctly interpreted by a licensed radiologist, the medical treatment for those patients would have been different and/or their surgery avoided.

For example, on May 1, 2012, Alpha Diagnostics personnel took a chest X-ray of a patient who was scheduled to undergo elective surgery, to determine if the patient could safely have surgery.  The indictment alleges that the image was not interpreted by a qualified radiologist but instead, a non-physician Alpha employee attempted to interpret the image.  The employee reported the image as negative for any chronic conditions when in fact, the image revealed mild congestive heart. Based on the incorrect reading of the chest X-ray, the patient was cleared for the elective surgery, which resulted in significant complications and the worsening of the patient’s congestive heart failure. The patient died on May 7, 2012.  The indictment alleges that, if the chest X-ray had been properly interpreted, the patient would not have been cleared for surgery and would not have died at that time.  Subsequently, Alpha Diagnostics submitted a claim to Medicare falsely representing that a licensed radiologist had interpreted the patient’s chest X-ray.  Medicare paid Alpha Diagnostics $218.36 for this claim.

Further, according to the superseding indictment, Chikvashvili and Alpha Diagnostics routinely submitted insurance claims to Medicare and Medicaid that, among other things, exaggerated the services performed by its technologists or exceeded the services ordered by the treating physician; overcharged for transportation costs; and falsely represented that Alpha Diagnostics was properly overseen by supervising physicians.

Finally, the superseding indictment seeks forfeiture of at least $7.5 million, including two properties, luxury vehicles, bank and investment accounts, and a safe deposit box.

Chikvashvili faces a maximum sentence of life in prison for the conspiracy and for each of four counts of health care fraud resulting in serious bodily harm and death; 10 years in prison for each of seven counts of health care fraud; 20 years in prison for each of eight counts of wire fraud; a maximum of five years in prison for each of 11 counts of false statements relating to health care matters; and a mandatory two years, consecutive to any other sentence imposed, for two counts of aggravated identity theft. 

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.

Timothy Emeigh, age 51, of York Springs, Pennsylvania previously pleaded guilty to health care fraud and is awaiting sentencing.

United States Attorney Rod J. Rosenstein praised the HHS-OIG and the FBI for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and P. Michael Cunningham, who are prosecuting the case.

Baltimore, Maryland – Stephen H. Schaffner, age 34, of Greensboro, Maryland, pleaded guilty today to conspiring to sexually exploit a child and sexual exploiting a child, arising from the sexual abuse of a six week old baby who was born prematurely.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; United States Attorney for the Southern District of California Laura E. Duffy; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation - Maryland;  Acting Special Agent in Charge Robert Howe of the Federal Bureau of Investigation – San Diego Division; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Jeff A. Jackson of the Greensboro Police Department and Chief David A. Spencer of the Easton Police Department.

“Thankfully, most technology companies continue to honor federal search warrants and most cellular phones can be searched with a warrant,” said U.S. Attorney Rod J. Rosenstein.  “If telecommunications companies provide software and hardware that is immune from federal search warrants, pedophiles will be free to commit such egregious crimes with little risk of detection.”

According to his plea agreement, for over four years, Schaffner was a licensed associate counselor in Arizona, providing behavioral health and education services for children ages 11-17 whose lives and family relationships were in crisis, or who were struggling with mental health or substance abuse challenges.

Schaffner worked as a clinician in Easton, Maryland for 18 months, providing individual and family mental health counseling, including treatment for children and for sex offenders.  In 2011 and 2012, Schaffner attended trainings and conferences focused on the assessment, management and treatment of sex offenders.  On October 30, 2012, Schaffner sent an adult counseling client inappropriate text messages of a sexual nature.  In November 2012, Schaffner was fired from the practice where he worked, and his license was later suspended.

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

In late June 2014, Schaffner began communicating online with Michael Lutts who lived in California and worked as a pediatric nurse at a hospital in San Diego County.  On August 4, 2014, Lutts brought to his home a six week old baby boy, born prematurely, who was placed in his care as a foster child.  That evening, Lutts texted Schaffner images of the infant.

Over the next several hours, Schaffner exchanged numerous graphic and sexually explicit messages with Lutts about Lutts sexually abusing the infant. Schaffner directed Lutts to sexually abuse the infant to produce photos and videos. Lutts sent Schaffner images and videos with the infant, including images of the infant being sexually molested.  Schaffner and Lutts discussed Schaffner travelling to San Diego to rape the infant.

Law enforcement obtained a federal search warrant in April 2014 for an email address of a person who was distributing child pornography, which led them to other suspects who were transmitting child pornography.  On August 26, 2014, authorities obtained a search warrant for Michael William Lutts’s residence in San Diego, and seized a cell phone that contained images and videos of Lutts sexually molesting the infant.  Michael Lutts has pleaded guilty in federal court in the Southern District of California to three counts of sexual exploitation of a child and is scheduled to be sentenced on April 20, 2015.

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

Schaffner and the government have agreed that if the Court accepts the plea agreement Schaffner will be sentenced to 35 years in prison followed by up to a lifetime of supervised release. U.S. District Judge J. Frederick Motz scheduled sentencing for July 9, 2015 at 10:00 a.m.

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

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

Baltimore, Maryland – Issa Haddad, age 24, of Rockville, Maryland pleaded guilty today to conspiring to distribute and possess with intent to distribute 100 kilograms or more of marijuana, and conspiring to commit money laundering.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.

 According to his plea agreement, from March 2010 to April 10, 2014, Haddad provided addresses in Montgomery County, Maryland and elsewhere to which co-conspirators in California would ship marijuana.  Haddad and others received packages of marijuana in Maryland, and Haddad was responsible pursuant to the conspiracy for sending, receiving, and preparing for distribution between 400 and 700 kilograms of marijuana in Maryland.

Members of the conspiracy provided Haddad with bank account numbers into which the proceeds from the sale of the marijuana were deposited.  Haddad and others deposited cash in amounts less than $10,000 into the provided banks accounts which were controlled by co-conspirators. These deposits of less than $10,000 were structured to evade IRS reporting requirements and conceal from the government large cash transactions by narcotics dealers.

Haddad admitted that his role in the conspiracy involved the laundering of between $2.5 million and $7 million of drug proceeds.

Haddad has agreed to forfeit at least $2.5 million.

To date, seven defendants have pleaded guilty to their participation in the drug and/or money laundering conspiracies, and await sentencing: Bianca Rosales, age 26, of New York, New York, pleaded guilty on July 7, 2014; Raymond Dixon, age 27, of San Francisco, California, pleaded guilty on July 25, 2014; Alnisha Hooks, age 23, of Los Angeles, California, pleaded guilty on August 5, 2014; David Fahrali-Simonson, age 24, of San Francisco, pleaded guilty on February 20, 2015; Ramon Rodriguez-Cruz, age 28, of Silver Spring, Maryland, pleaded guilty on February 23, 2015; and Sebastian St. John, age 23, of Silver Spring, Maryland, pleaded guilty on March 26, 2015.

Haddad faces a maximum sentence of 40 years in prison for the drug conspiracy and 20 years in prison for the money laundering conspiracy. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 25, 2015 at 11:00 a.m.

United States Attorney Rod J. Rosenstein commended HSI Baltimore and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O. Hayes and Mara Zusman Greenberg, who are prosecuting the case.

Greenbelt, Maryland - A federal jury today convicted Alexsi Lopez, age 26, of Hyattsville, Maryland, of conspiracy and the violent robbery of a Hyattsville brothel that resulted in a rape and murder.

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter 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 the evidence presented at his six day trial, Lopez was associated with the MS-13 gang and knew his co-defendant, Ramon Miguel Cerros-Cruz through MS-13.  Evidence showed that Lopez and Cerros-Cruz familiarized themselves with the location and operation of brothels in the Hyattsville-Langley Park area of Prince George’s County, then planned the robbery of a Hyattsville brothel apartment.  According to trial testimony, on February 28, 2007, Lopez and Cerros-Cruz entered the brothel apartment armed with knives, and using force and violence, demanded money from the people within the brothel and searched the apartment for cash and items of value. Witnesses testified that Lopez and Cerros-Cruz bound one of the brothel’s employees, raped another employee and murdered a third person who arrived at the brothel during the commission of the rape and robbery, stabbing him multiple times when he resisted the demands of the defendants.  DNA evidence placed Lopez and Cerros-Cruz at the scene.

Lopez faces a maximum sentence of 20 years in prison for the conspiracy and for the robbery.  U.S. District Judge Paul W. Grimm has scheduled sentencing for August 24, 2015, at 1:00 p.m.

Ramon Miguel Cerros-Cruz, age 25, of Silver Spring, Maryland previously pleaded guilty and was sentenced of 10 years in prison for the robbery.

United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Prince George’s County Police Department for their work in the investigation and thanked the Prince Georges County Department of Corrections and the Maryland Department of Public Safety and Correctional Services for their assistance.  Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Daniel C. Gardner, who are prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Daniel P. Welch, age 36, of Crumpton and Chestertown, Maryland, to 10 years in prison followed by three years of supervised release. Welch, who was prohibited from possessing firearms because of his criminal record, obtained guns through straw purchases and theft.

“It is illegal to help a criminal get a gun,” said U.S. Attorney Rod J. Rosenstein.

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; Queen Anne’s County Sheriff R. Gary Hofmann III; Chief G. Adrian Baker of the Chestertown Police Department; and Queen Anne’s County State’s Attorney Lance G. Richardson.    

According to his guilty pleas, Welch is a previously convicted felon and therefore is prohibited from possessing firearms.  Welch and co-defendant Jonathan Sutton have known each other since they were small children.  At Welch’s request, between January 29, 2011 and January 31, 2014, Sutton obtained six firearms for Welch through private sellers and through “straw purchases” by Sutton from a federally licensed firearms dealer.  A “straw purchase” occurs when an individual, who is ineligible to lawfully purchase a firearm, such as a previously convicted felon, solicits another to conduct the transaction.

Welch admitted that on January 29, 2011, he and Sutton visited four ATMs in Stevensville, Maryland, near a federally licensed firearms dealer, and Welch withdrew approximately $1,700 in cash.  Welch and Sutton then went to the firearms dealer and selected firearms for Sutton to purchase for Welch.  Sutton purchased a Smith & Wesson MP5-22, a Mossberg Persuada 500, and a Century Arms SKS.  Sutton completed the required forms indicating that he was the actual buyer of the firearms and was not acquiring the firearms for another person.  On February 1, 2011, Sutton picked up the guns, which he then transferred to Welch.  On February 11, 2011, Sutton purchased a Marlin rifle from the firearms dealer, again completing the required form and falsely indicting that he was buying the gun for himself.  In 2012, Sutton acquired a Remington Arms 597 and a Ruger Single Six, both .22 caliber, through private purchases.  Those guns were subsequently possessed by Welch.

Welch also admitted that on May 17, 2013, he broke into a neighbor’s home and stole an express pump action 20 gauge shotgun with a 21 inch barrel and other items.  On June 14, 2103, officers with the Queen Anne’s County Sheriff’s Office executed a search warrant at Welch’s residence in Crumpton and recovered items Welch had stolen from the neighbor, including the shotgun.  Welch had sawed off a portion of the barrel and removed the serial number.  During the search, officers also located the two firearms Welch received from Sutton in 2012. A subsequent search of Welch’s residence recovered the Marlin rifle from Welch’s bedroom.

Jonathan M. Sutton, age 36, of Chestertown, Maryland, pleaded guilty to conspiring to unlawfully obtain firearms for a prohibited person and is scheduled to be sentenced on April 16, 2015, at 9:00 a.m.

United States Attorney Rod J. Rosenstein praised the FBI, Queen Anne’s County Sheriff’s Office, Chestertown Police Department and the Queen Anne’s County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Zachary A. Myers, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jeffrey Anderson, age 36, of Upper Marlboro, Maryland, today to 11 years in prison, followed by five years of supervised release, for conspiring to distribute and possess with intent to distribute heroin.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; and Hagerstown Police Chief Mark Holtzman.

“This investigation, initiated by the Frederick County Sheriff’s Office (FCSO), was a cooperative effort between the FCSO, HSI and our law enforcement partners,” said Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  “As a result of the cooperative efforts of our federal, state and local law enforcement partners, a large scale, multi-jurisdictional heroin trafficking organization was dismantled.”

According to his plea agreement, beginning as early as September 2013, Anderson and co-conspirator Reginald Jones worked with Rahdel Sharbaan to obtain bulk quantities of heroin from sources in New York and transport that heroin to Maryland for further distribution.  Anderson would either travel to New York himself, or have Sharbaan and Jones bring the heroin and cutting agent to him in Maryland via commercial bus.  With co-defendant Shawn Malley’s assistance, Anderson used stash locations to store and cut the heroin, including a storage unit in Gambrills, Maryland, and Malley’s home.  Once diluted, Anderson sold the heroin in bulk to several Maryland-based dealers, including co-defendants William Robinson and Gary Barham on the Eastern shore of Maryland, and Amanda Jo Palmer in Western Maryland. According to their plea agreements, once Robinson, Palmer and Barham obtained drugs from Anderson they re-distributed the drugs in street-level quantities.  Jones used the drug proceeds from Anderson to pay the source in New York.

On May 15, 2014, investigators executed search warrants, seizing: 40.1 grams of heroin, cutting agents, packaging materials and paraphernalia from the storage unit; 49 grams of heroin from Anderson’s vehicle; $2,957 in cash, drugs, multiple cell phones and digital scales from Malley’s home; and four vehicles from other co-conspirators. 

Anderson admitted that during the time of the conspiracy at least one kilogram of heroin was distributed.

Six co-defendants pleaded guilty to their participation in the conspiracy and have been sentenced.  Gary Barham, age 52, of Easton, Maryland, was sentenced to 11 years in prison.  Co-defendants William Ulysses Robinson, age 39, of Grasonville, Maryland, was sentenced to six years in prison; Shawn Christopher Malley, age 25, of Crofton, Maryland, was sentenced to five years in prison; and Amanda Jo Palmer, age 33, of Hagerstown, Maryland, was sentenced to 29 months in prison.  Finally, Rahdel Sharbaan, age 32, and Reginald Jones, age 26, both of Bronx, New York, were sentenced to two years in prison, and a year and day in prison, respectively. 

United States Attorney Rod J. Rosenstein praised HSI-Baltimore, DEA, Frederick County Sheriff’s Office, Maryland State Police, Washington County Sheriff’s Office and Hagerstown Police Department for their work in the investigation and recognized the Maryland Natural Resources Police, St. Michael’s Police Department, Easton Police Department, Ocean City Police Department and Talbot County Sheriff’s Office for their assistance.  Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Vincent Cooper, age 47, of Washington, D.C., to 11 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.

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; and Commissioner Anthony W. Batts of the Baltimore Police Department.

 According to court documents and his plea agreement, Cooper conspired to distribute cocaine from at least November 2013 through August 2014.  During the time of the conspiracy, Cooper purchased a total of at least 14 kilograms of cocaine on four separate occasions.

On August 11, 2014, Cooper told a cooperating individual (CI) that he wanted to purchase seven kilograms of cocaine and one kilogram of heroin, but currently had the money to purchase six kilograms of cocaine.  According to court documents, Cooper instructed the CI to meet him at an apartment complex in Baltimore, where Cooper worked as a maintenance man.  Law enforcement saw Cooper and co-defendant Antoine Washington arrive at the apartment complex.  Washington was arrested in the parking lot.  Cooper was located coming up the basement stairs of the apartment complex.  Law enforcement found a key to the maintenance closet thrown near the stairs where Cooper was first seen by law enforcement. After obtaining consent to search the maintenance closet from the owner of the apartment complex, law enforcement recovered a brown paper bag containing $216,140 in cash.  Law enforcement also recovered $7,000 in cash from Washington’s car.

Four other co-defendants previously pleaded guilty to their participation in the scheme: Antoine DeMarr Washington, age 42, of Washington, D.C.; Guy Bordes Agnant, Jr., age 38, of Laurel, Maryland; Tavon Alexander Louis Hopkins, age 38; and Donte Eugene Taylor, age 39, both of Baltimore. All are awaiting sentencing.

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. U.S. District Judge Richard D. 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.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Brian Keith Swope, Jr., age 33, of Brooklyn Park, Maryland late yesterday to 70 months in prison followed by three years of supervised release for the arson of a pizza restaurant in Brooklyn Park.  Judge Hollander also ordered Swope to pay restitution of more than $100,000.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Allan C. Graves, Fire Chief of the Anne Arundel County Fire Department.

According to his plea agreement, on March 22, 2013, Swope learned that the owner of Pizza City restaurant had been arrested and remained in custody.  Swope and a co-conspirator used heroin together and planned to burglarize Pizza City, where Swope had previously worked.  Shortly after midnight on May 23, 2013, Swope and the co-conspirator used a tire iron to pry open the front door of Pizza City.  They took money from the cash register and other items from the store, then used the money to purchase heroin.  After using the heroin, Swope and the co-conspirator returned to Pizza City and stole numerous items, including computers, telephones, food and sodas.  They sold some of the stolen items and purchased more drugs with the money.  At the end of the evening, Swope and the co-conspirator again returned to Pizza City and set a fire to cover up their burglary by destroying the video surveillance system and any fingerprints left behind.  After setting the fire, Swope and the co-conspirator took a taxi back to Swope’s home, taking along many of the food items stolen from Pizza City.

As a result of the investigation of the arson fire at Pizza City, on May 23, 2013, law enforcement seized the food stolen from Pizza City at Swope’s home. Swope was arrested the next day.  Federal agents subsequently obtained a copy of a letter written by Swope attempting to obstruct the investigation by encouraging a witness to tell law enforcement that they had no information about the fire and burglary at Pizza City.  The letter also advised the individual to falsely allege misconduct by law enforcement, and falsely tell law enforcement that Swope had broken into Pizza City two days before the fire.

United States Attorney Rod J. Rosenstein praised the ATF and Anne Arundel County Fire Department, Fire Marshal Division, for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake, sentenced Tyrone Robert Bailey, age 28, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute 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; 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, Bailey was a member of a conspiracy to distribute cocaine.  As part of the conspiracy, Bailey obtained kilograms of cocaine from a New York supplier.  Law enforcement overheard 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.  Co-conspirator Lamont 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 was the phone Bailey used to talk to his co-conspirator.

Lamont G. Thomas, age 34, of Baltimore, pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on May 7, 2015, at 9:15 a.m.  Bailey and Thomas 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 – A federal grand jury returned a superseding indictment charging Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” and his wife, Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” both age 49, of Keymar, Maryland with stealing over $1.5 in employee benefits.  The original indictment charged the defendants with embezzling from employee benefit plans and tax evasion.  A superseding indictment was returned on March 24, 2015 and unsealed today, adding the charge of conspiracy to commit wire fraud.

The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Marc I. Machiz, Director of the Philadelphia Regional Office of the Labor Department’s Employee Benefits Security Administration; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.

The Tuckers were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation.  Quantell and Intaset provided labor services, including environmental science, engineering and information technology services, to federal and state agencies and the private sector.

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

 According to the six count indictment, from 2008 to March 2012, the Tuckers stopped contributing SCA funds to the ERISA plans.  Instead, the Tuckers diverted at least $1.2 million in SCA monies paid by the government to Quantell and Intaset under service contracts for their own personal benefit, instead of using the money for the benefit of the companies’ employees.  The Tuckers used shell companies and companies that they were associated with to conceal the diversion of SCA funds to them.  Shaun Tucker made false statements to the third party administrator and trustees for the ERISA plans, the Department of Labor (DOL) and the IRS concerning the health and welfare benefits provided to Quantell and Intaset employees, including falsely claiming that he was requesting plan to plan transfers of the remaining assets in the ERISA plans.  The Tuckers falsely told employees that they would be receiving health and welfare benefits, when they knew in fact that the money was being diverted to buy luxury vehicles, make improvements on the Tuckers’ home in Carroll County and construct a 5,000 square foot residence in Swanton Maryland.

The Tuckers also served as the plan administrators of both companies’ employee health and welfare plans, and as representatives of the plan sponsors, Quantell and Intaset. The indictment re-alleges that from 2009 to April 2010, the Tuckers further embezzled $284,999 from employee benefit plans when they caused checks to be issued from the companies’ plan funds, which they used for their personal benefit.  In 2010, Shaun Tucker falsely told representatives of DOL that there had been no transfers of any Quantell plan assets.  On November 8, 2010, Shaun Tucker submitted a form to DOL falsely certifying that all of the remaining assets from the Quantell plan had been transferred to a Quantell employee plan, while knowing that the Tuckers had instead used the funds for their personal benefit, including the construction of the home in Swanton.

Finally, the indictment re-alleges that the Tuckers filed a joint tax return for 2009 in which they falsely reported income of $180,251, when in fact they knew that their income was far in excess of that amount, upon which taxes were owed.

The indictment seeks the forfeiture of at least $1.5 million, the amount of loss resulting from the fraud scheme.  The indictment also seeks the forfeiture of the residence in Swanton and two vehicles.

The Tuckers face a maximum sentence of 20 years in prison and a $250,000 fine or twice the gain or loss for the wire fraud conspiracy, five years in prison and a fine of $250,000 for embezzling from an employee plan; and a maximum of five years in prison and a $100,000 fine for tax evasion.

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.

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

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

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Edward James Maycock, Jr., age 28, of Parsonsburg, Maryland, today to 16 years in prison followed by a lifetime of supervised release for distribution of child pornography. Judge Russell ordered that upon his release from prison, Maycock must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to his plea agreement, on November 8, 2013, Maycock uploaded files containing child pornography to a website.  After linking the IP address used to upload the files to Maycock’s residence, law enforcement executed a search warrant on February 6, 2014 and seized a notebook computer and several external hard drives from Maycock’s home which contained thousands of files depicting children, including prepubescent minors, engaged in sexually explicit conduct.  Some of the files included images of sadistic and masochistic conduct, or other depictions involving violence.  Maycock actively traded the child pornography files with other individuals via the internet.  The total volume of child pornography from Maycock’s computer and hard drives was roughly the equivalent of 1,000 gigabytes.

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

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

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Demond Pinkney, a/k/a “Cal,” age 30, of Baltimore, today to 121 months in prison, followed by five years of supervised release, for conspiracy to distribute and possesses with the intent to distribute heroin and crack cocaine.

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

According to his plea agreement, since the late 1990s Pinkney has been distributing powder cocaine, crack cocaine and heroin in the Cherry Hill area of Baltimore.  Pinkney is a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.”  UDH members and associates have been in disputes with members and associates of organizations known as “Coppin Court” and “Little Spelman,” that are involved in criminal activity in the part of Cherry Hill known as “Down the Hill.”  UDH members and associates committed various crimes to include distribution of drugs, such as crack cocaine, heroin, cocaine and oxycodone. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in their part of Cherry Hill.  Some of these acts of violence include the January 22, 2011 murder of Little Spelman member Harry Hicks; the August 28, 2011 murder of Little Spelman member Dewayne Jones; and the January 20, 2012 murder of Little Spelman leader Dominic Hope.   Pinkney himself was shot on June 1, 2008, by persons from “Down the Hill,” leaving Pinkney paralyzed.  Pinkney continued his association with UDH, renting a stash house in the UDH area and selling narcotics.

In the earlier part of Pinkney’s drug distribution years, he sold crack cocaine with a group of individuals associated with “Down the Hill.”  Pinkney later became a member of the UDH group and as a teenager, sold crack and heroin for various UDH leaders.  Pinkney was a right-hand man to a UDH drug supplier for a period of time and later worked for a UDH member who supplied Pinkney with crack cocaine and heroin.  Throughout the course of Pinkney’s involvement in the UDH drug conspiracy, the conspirators distributed between three and 10 kilograms of heroin and at least 840 grams but less than 2.8 kilograms of crack cocaine.

In addition to distributing narcotics, Pinkney participated in two bank robberies with fellow UDH members.  In each robbery, Pinkney wrote the demand note used by the robbers and shared in the proceeds of the robberies.

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

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland,  today to 57 months in prison, followed by five years of supervised release, for conspiracy to commit wire fraud and aggravated identity theft, arising from a residential mortgage fraud scheme.  Judge Hazel also ordered Tibakweitira to pay restitution of $2,482,856.05.

Also today, Judge Hazel sentenced Nsane Phanuel Ligate, age 43, of Ashburn, Virginia, to five months in prison, followed by five months of home detention as part of three years of supervised release for conspiracy to commit wire fraud, in connection with a separate, but related mortgage fraud scheme.  Ligate was also ordered to pay restitution of $352,091.82.                  

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

According his plea agreement, from March 2007 to November 2008, Tibakweitira, who was a real estate agent, and his co-conspirators sought mortgages for properties at values in excess of the properties’ actual market values. Tibakweitira recruited his wife Flavia Makundi, and others, including Mokorya Cosmos Wambura, Cane Mwihava and Annika Boas, to act as straw purchasers of homes.

Tibakweitira admitted that he procured inflated appraisals and created false addendums to the sales contracts requiring large amounts of loan proceeds to be disbursed for renovations or repairs. The defendants used stolen or false identities, false documents – including W-2 forms, earnings statements, and bank statements – and false credit information to induce lenders to provide residential mortgage loans to the straw buyers. Co-conspirator Carmen Johnson, through her company CJ Lending, created fictitious lines of credit for the straw buyers to fraudulently enhance their credit worthiness.  Large amounts of the proceeds of the fraudulently obtained loans were disbursed from escrow accounts to Destiny Property Management, LLC and Destiny Property Management Company, which were shell companies owned by Tibakweitira, for repairs and renovations that were never made to the properties.  These funds were paid to the defendants.  The defendants did not make or stopped making the mortgage payments and allowed the properties, including 10 properties located in Severna Park, Baltimore, Hyattsville and Silver Spring, to go into foreclosure.

As a result of the conspiracy, lenders provided over $3.5 million for fraudulently obtained loans, which resulted in losses of almost $2.5 million to the lenders, the Federal Housing Administration which insured some of the loans, and the Federal National Mortgage Corporation (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), who purchased some of the loans in the secondary mortgage market.

In the second scheme, between April and July 2008, real estate agent Nsane Phanuel Ligate conspired with Carmen Johnson and others in a similar mortgage fraud scheme involving two properties in Baltimore, resulting in losses to HUD and the lender of $352,091.58.

Tibakweitira co-conspirators Flavia Makundi, age 43, of Severn Park, Maryland, Ayoub Luziga, age 36, of Bowie, Maryland, Raymond Abraham, age 48, of Silver Spring, Maryland, Mokorya Cosmas Wambura, age 42, of Takoma Park, Maryland, Abdallah Suleiman Kitwara, age 44, of Bowie, Maryland, pleaded guilty to their roles in the first scheme.  Luziga was sentenced to 21 months in prison and ordered to pay restitution of $999,726.  Kitwara was sentenced to 15 months in prison and ordered to pay $290,954 in restitution.  Abraham was sentenced to 33 months in prison and ordered to pay $999,726 in restitution.  Makundi was sentenced to time served.  Annika Boas, age 37, of Mount Rainier, Maryland, was convicted after trial. Boas was sentenced to 27 months in prison and ordered to pay restitution of $511,147.

Ligate co-conspirators Cane Mwihava, age 44, of Bowie, Maryland, Larry Johnson, age 58, of Capital Heights, and Gladyness Silaa, age 36, of Bowie, Maryland also pleaded guilty to their roles in the second mortgage fraud scheme.  Larry Johnson was sentenced to eight months in prison consecutive to the current sentence he is serving on an unrelated case and ordered to pay restitution of $352,091.  Silaa was sentenced to six months home detention and ordered to pay $378,602 in restitution.  Mwihava was sentenced to six months home detention and ordered to pay $352,091 in restitution.

Carmen Johnson, age 48, of Gambrills, Maryland, was convicted after trial for her participation in both schemes. Johnson is scheduled to be sentenced on June 3, 2015 at 10:00 a.m.

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

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

Baltimore, Maryland - Cesar Raphael Barretto, age 44, of Severn, Maryland, pleaded guilty today to wire fraud, in connection with a scheme to embezzle over $402,000 from the company where he worked.       

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

According to his plea agreement, Barretto was a territory manager for U.S. Foods, Inc., a company that distributed food and supplies to restaurants, hospitals, hotels, and other businesses.  Barretto worked out of the U.S. Foods office in Severn, where he was responsible for helping customers place orders for U.S. Foods products.  Barretto transmitted customer orders to the company electronically.  The orders were then sent to a regional distribution center where they were picked up by the customer, or picked up and delivered to the customer by Barretto.  In addition, Barretto tracked the sales of products in his region and was responsible for collecting the balances due on customers’ invoices.  When Barretto received a payment from a customer, he deposited it into the U.S. Foods bank account and emailed the company a collection report, which credited the customer’s account.

According to his plea agreement, from June 2010 through July 2012, Barretto defrauded one of U.S. Food’s customers, American Pollo Restaurant Group, by diverting over $402,000 in payments he received on their account to pay for cases of food that Barretto ordered for himself under the account of another U.S. Foods customer, a bakery located in Langley, Maryland, without that customer’s knowledge.

Specifically, Barretto admitted that he ordered cases of food from U.S. Foods for his own personal use, using the bakery customer’s account.  Barretto made sure those products were delivered to the US Foods’ warehouse in Severn, Maryland, where he could pick them up in his car.  Barretto paid for the unauthorized purchases by diverting a portion of the payments received from American Pollo to the bakery customer’s account.  In collection reports emailed to U.S. Foods, Barretto falsely listed some of American Pollo’s payments as credits to the bakery customer’s account, thereby paying off the outstanding balances created in that account by Barretto’s unauthorized purchases.  After Barretto picked up the products he purchased with embezzled funds, he sold them at a discounted price to a restaurant in Laurel, Maryland, in exchange for cash.

Over a two-year period, Barretto paid for more than 300 unauthorized food purchases from US Foods by creating and submitting false collection reports that transferred approximately $402,000 in collection payments from American Pollo to the bakery customer’s account.

As part of his plea agreement, Barretto will be required to pay restitution of $402,680, the full amount of the victim’s losses.

Barretto faces a maximum sentence of 20 years in prison for wire fraud.  U.S. District Judge George L. Russell, III, has scheduled sentencing for July 23, 2015, at 9:30 a.m.

United States Attorney Rod J. Rosenstein praised the U.S. Secret Service for its work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Michael Wesley Lee, a/k/a “King,” or “King P,” age 31, of Odenton, Maryland, today to 13 years in prison followed by five years of supervised release, for use of an interstate facility to promote a prostitution business, and conspiring to commit sex trafficking by force and fraud.  Judge Motz also ordered that, upon his release from prison, Lee 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).              

Also today, Judge Motz also sentenced co-defendant Robert Downing, a/k/a “Luck,” and “Shamrock,” age 46, also of Odenton, to 46 months in prison followed by three years of supervised release for use of an interstate facility to promote a prostitution business.

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 and Anne Arundel County Police Chief Tim Altomare.

According to their plea agreements, from at least 2012 to his arrest in August 2013, Lee used social media websites to entice females to prostitute for him.  Downing worked for Lee.  The defendants used the internet to recruit women, and to advertise sex services.  The defendants rented hotel rooms to house the women and to serve as a place to prostitute.  The defendants used prepaid gift and debit cards to pay for the rooms.

More specifically, after Lee had transported a female, “J,” from New York to prostitute in Maryland, on February 23, 2013, Lee and Downing accompanied “J” to the Maryland Live! casino in Anne Arundel County.  The defendants are seen on video cameras watching “J” unsuccessfully solicit prostitution customers in the casino.  At some point, Downing left the casino; and later, Lee and “J” also left.  The two walked to Lee’s car in the casino’s garage.  Video cameras recorded Lee yelling and scolding the woman, and then striking her head repeatedly with a closed fist.  Lee grabbed her by the hair and ripped off her wig, and violently shoved her when she tried to shield her body against the car.  Police arrived and arrested Lee.  Downing arrived at the scene and took “J” back to his home.  On February 25th, Downing drove “J” to a local hotel so that she could earn money by prostituting – money that would help pay Lee’s bail.  “J” escaped when Downing left briefly.  Ultimately, “J” refused to press charges, and the state assault charges were dismissed against Lee a few months later and he was released from custody.

In August 2013, Lee used a social media website to lure another woman, “S,” from St. Louis, Missouri to Baltimore to prostitute.  Lee bought a bus ticket for “S,” who arrived in Baltimore on August 10.  When Lee picked her up at the bus station, he told her that he was a pimp.  He took “S” to a hotel in Linthicum Heights, Maryland and demanded her identification card.  “S” was intimidated by Lee’s size and demeanor, so she gave him her identification card and worked as a prostitute.  Lee told her that she needed to reimburse him for the bus ticket and that she had to pay a $1,000 initiation fee.  He transported “S” from Maryland to New Jersey to prostitute.  After two weeks of working for Lee as a prostitute, “S”, who wanted to get away, called an ambulance on August 26, 2013, regarding pain she was having in her vaginal area, and reported her situation to the EMTs upon their arrival. Lee was arrested that day.

Further, in August 2013, Lee tried to persuade “M,” an exotic dancer in Baltimore, to prostitute for him. “M” agreed to meet Lee at a hotel room believing that she was going to dance at a private party. When Lee attempted to prostitute her, she tried to leave the room, but Lee stopped her.  Subsequently, “M” overheard Lee on the phone with a man who Lee said was from Florida and was driving up to meet “M.”  “M” became scared about being made to have sex or being taken out of state.  “M” contacted her friends by text message and her father ultimately called 911.  At the same time, “M” devised a plan whereby she told Lee she was thirsty.  When Lee gave her money to get a soda in a nearby vending machine, “M” began running away from the hotel.  She heard Lee running behind her.  Lee chased her until she was able to hop a fence behind the hotel.  By the time the police arrived at the hotel as a result of the 911 call, “M” was already safe.

After Lee was arrested on August 26, 2013, Downing began pimping “MS” for Lee while Lee was in jail.  Lee had previously lured “MS” to engage in prostitution and had transported her to Ocean City to prostitute.  At the time of Lee’s arrest, “MS” was in the hospital being treated for a serious medical condition.  Downing picked “MS” up from the hospital upon her discharge in September and immediately installed her at a hotel.  “MS” and Downing traveled to New York and New Jersey so that “MS” could prostitute.  At times, Downing drove “MS” to methadone clinics for treatment.

The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution and sex trafficking by force and fraud, with members from 10 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 the Anne Arundel County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Patricia A. McLane, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Gabriel Vashon Seay, age 35, of Camp Springs, Maryland, today to 12 years in prison followed by five years of supervised release for possession with intent to distribute crack cocaine and possession of a firearm in furtherance of a drug trafficking crime.  Judge Chasanow also ordered that Seay forfeit a gun, ammunition and over $23,000 in cash seized from his home.

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

According to Seay's plea agreement, on February 12, 2014, law enforcement conducted a traffic stop of a vehicle driven by Seay.  During the stop, Seay informed the officers that he did not have a valid license.  In addition, Seay was found to have an open warrant from Dougherty County, Georgia, for violation of probation in relation to a prior conviction.  Seay was placed under arrest and during a subsequent search law enforcement officers recovered 26.95 grams of cocaine base from Seay.

Also on February 12, 2014, law enforcement officers executed a search warrant at Seay’s residence. Officers recovered a loaded 9mm semi-automatic pistol, a fully loaded 30-round magazine, and a bulletproof vest.  In addition, throughout Seay’s apartment the officers recovered the following controlled substances:  87.35 grams of crack cocaine; 452.36 grams of powder cocaine; 331.9 grams of 3,4-Methylenedioxymethcathinone (Methylone); 32.96 grams of heroin; and 31.74 grams of marijuana.  Law enforcement also seized $23,013 in cash, a digital scale, a grinder, a hydraulic press, and packaging materials.

Seay further admitted that he maintained his residence as a premise for the purpose of manufacturing and distributing a controlled substance.

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

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Colette Lee, age 49, of Baltimore, today to 18 months confinement, followed by three years of supervised release for making false statements to obtain federal employee compensation benefits. Judge Garbis also entered an order that Lee pay restitution of $244,912.65, the loss suffered by the Postal Service and the Department of Agriculture.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Inspector General William E. Johnson, Jr. of the Maryland Department of Human Resources.

            “Taxpayers foot the bill for phony disability claims by government workers,” said U.S. Attorney Rod J. Rosenstein.  “Postal employee Colette Lee filed a fraudulent disability claim in 2007 and kept the scam going for seven years until she was caught.  This case is an insult to taxpayers and honest government employees.” 

According to her plea agreement, from 2003 to 2014, Lee worked for the U.S. Postal Service as a letter carrier and then became a mail handler.

In May 2007, February 2008, August 2009 and October 2009, Lee submitted claims for disability for a work-related injury under the Federal Employees’ Compensation Act (FECA).  Lee failed to disclose relevant parts of her medical history on a questionnaire she submitted on June 19, 2003 at the start of her Postal Service employment, including that: she had an active injury claim; had been previously treated in the emergency room; had been in physical therapy programs; and had CT scans.  Lee also failed to disclose to medical professionals who evaluated her injury and potential treatment and assessed her possible return to work that Lee had a prior medical history that included injuries from at least four motor vehicle accidents that pre-dated her claims for FECA benefits.  Lee was also involved in a motor vehicle accident not related to her Postal Service employment in September 2009, after she submitted claims for FECA benefits.

From May 17, 2007 through January 24, 2014, Lee received wage payments and FECA benefits for her alleged work-related injuries.

On August 23, 2012, Lee was interviewed regarding her claimed physical limitations and capability to return to work.  Lee denied that she had any injuries prior to working for the Postal Service; stated that she had only been in one vehicle accident; stated she could not open her car door with her right hand; claimed that she drove her vehicle with her left hand while keeping her right hand down, needed to take breaks every 20 to 25 minutes, and could not use both hands to turn the steering wheel; advised that she could not grasp items with her right hand and had to ask people for assistance when shopping; and stated that she could not play with her son.

Surveillance conducted from December 2010 to February 4, 2014 showed Lee engaging in activities inconsistent with what she reported during the August interview.  Agents observed Lee opening and unlocking her car door with her right hand, driving her vehicle at times with only her right hand, driving long periods without breaks, using her right hand to lift herself into a van, using both hands to maneuver the steering wheel, grasping items with her right hand, talking on her cell phone with her right hand, shopping by herself while grabbing items and unloading items without any assistance, and playing with children while running, walking, lifting, bending, and riding a bike.  Insurance records also showed that Lee had prior injuries from motor vehicle accidents that she did not report during the August 23, 2012 interview.

Additionally, Lee admitted that she applied for food stamp benefits, which are funded by the Department of Agriculture, in 2010, 2011 and 2012, without disclosing that she was receiving FECA benefits.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Service Inspector General’s Office, U.S. Department of the Treasury Inspector General’s Office; and Maryland Department of Human Resources Inspector General’s Office for their work in the investigation.  Mr. Rosenstein commended the National Insurance Crime Bureau for their assistance in the investigation, and thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.

Greenbelt, Maryland – William Terrance Proctor, a/k/a “Boobie,” and “Booby,” age 31, of Lexington Park, Maryland, pleaded guilty today to aiding and abetting the theft of a firearm, possession of an unregistered firearm, unlawful sale of a firearm to a prohibited person; and receipt, possession and transportation of contraband cigarettes.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Charles County Sheriff Troy Berry; St. Mary=s County Sheriff Tim Cameron; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

“ATF worked hand-in-hand with our local counterparts to uncover a calculated scheme involving the theft and subsequent sale of numerous firearms,” stated ATF Special Agent in Charge William P. McMullan. “The law enforcement community in Southern Maryland strives to protect the public and prevent firearms from getting into the hands of criminals.  We will continue to work to ensure that all of those responsible for the theft of these firearms are brought to justice.”

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

On March 20, 2014, Proctor sold for $1,000 a rifle which had a barrel measuring less than 16 inches. And from April to June, 2014, Proctor sold seven firearms in exchange for contraband cigarettes – that is, cigarettes for which the applicable Maryland cigarette taxes were not paid.  Proctor then sold all of the contraband cigarettes.

On June 27, 2014, Proctor was arrested in Maryland when he attempted to sell an eighth firearm in exchange for contraband cigarettes.

Proctor faces a maximum sentence of 10 years in prison on the gun charges and five years for receiving and transporting contraband cigarettes. U.S. District Judge Paul W. Grimm has scheduled sentencing for August 3, 2015 at 2:00 p.m.

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

Baltimore, Maryland – A federal grand jury has indicted David Edward Weatherholtz, age 55, of Berlin, Maryland, on charges of producing and possessing child pornography, and attempting to entice minors to engage in sex.  The indictment was returned on March 24, 2015 and unsealed today upon his arrest.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Worcester County Sheriff Reggie T. Mason, Sr. and Worcester County State’s Attorney Beau Oglesby.

According to the six count indictment, from 2008 to 2012, Weatherholtz coerced a minor to engage in sex to produce images of child pornography. On December 16, 2014, Weatherholtz is alleged to have possessed a computer hard drive and a laptop containing child pornography.

The indictment further alleges that from December 3 to 16, 2014, Weatherholtz used electronic mail and text messaging to attempt to coerce minors to engage in sex.

Weatherholtz faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for each of three counts of producing child pornography; life in prison, with a minimum mandatory sentence of 10 years in prison, for attempted enticement; and 10 years in prison on each of two counts for possession of child pornography.  An initial appearance was held this afternoon in U.S. District Court in Baltimore.  Weatherholtz was detained pending a detention hearing scheduled for April 3, 2015 at 11:30 a.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.

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, Worcester County Sheriff’s Office, Worcester County State’s Office’s Office  and the Internet Crimes Against Children Task Force for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Gary Clark Steciuk, age 39, of Buffalo Grove, Illinois and Heber Springs, Arkansas, today to 105 months in prison followed by three years of supervised release for mail fraud in connection with a six year scheme to defraud his clients of their retirement funds.  Judge Hollander also entered an order that Steciuk pay restitution of $2,386,025.07, the amount stolen from at least 18 victims.

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

Steciuk was a stockbroker who worked primarily out of his home in Buffalo Grove.  Steciuk was authorized to sell stocks, bonds, options, mutual funds and variable annuities.  In approximately 2009, Steciuk established a business, College Funding Solutions, ostensibly to provide investment advice to clients interested in investing and saving for college expenses.

According to his plea agreement, from May 2008 to August 2014, Steciuk embezzled funds from his clients’ investment accounts.  These accounts were funded with client retirement funds and were maintained by the issuers of the annuities.  Steciuk used a variety of methods to embezzle the funds.  For example, Steciuk submitted forged forms at the firm that issued the annuities to change his clients’ address to a post office box in Hampstead, Maryland that Steciuk controlled.  Steciuk then directed the firm to send funds from his clients’ accounts by check to the Maryland post office box.  Steciuk forged the clients’ signatures on the back of the check, which were in the clients’ names, and deposited the checks into bank accounts he controlled.  In addition, Steciuk created unauthorized loans from the clients’ annuities for his benefit; used forged transfer forms and forged checks to make unauthorized withdrawals; and in some cases, liquidated the annuities in their entirety and stole the proceeds.

Steciuk used the proceeds of the scheme to support a lavish lifestyle, including purchasing multiple homes for himself and others, as well as to support his extramarital affairs.

There were at least 18 victims of the scheme, including Steciuk’s step-grandmother and mother-in-law, as well as elderly and vulnerable victims.  The total loss resulting from the fraudulent scheme is approximately $2,686,025.07.

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Gregory R. Bockin, who prosecuted the case.

Baltimore, Maryland – A federal grand jury has indicted Curtis R. Martin, Jr., age 55, of North Potomac, Maryland, on charges related to a scheme to defraud a business of more than $212,000.  In addition, the indictment charges Martin with making false statements to his probation officers.  The indictment was returned on March 18, 2015, and unsealed on March 26, 2015, upon Martin’s arrest.       

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

According to the 14-count indictment, Martin purported to operate technology companies, including Oledix Technologies, LLC and The Oledix Store, LLC, as their President and Chief Executive Officer (CEO).  Martin represented that Oledix Technologies was in the business of selling video teleconferencing equipment that employed LED touchscreen technology, and that The Oledix Store was a retail outlet for Oledix Technologies. In fact, neither company did any significant amount of business.

According to the indictment, Martin, through false and fraudulent representations, obtained a total of approximately $212,455 between May and August 2012, from New Century Financial (NCF), a company that provides account receivable financing.  Martin allegedly used the funds for personal and business-related expenses.

Accounts receivable financing permits a business to obtain loans from a lender or financing company based upon outstanding invoices issued to customers, but for which payment is not yet due under the terms of the invoice.  An accounts receivable financing company agrees to provide financing that is less than the full face value of the invoice.  The business receiving the financing instructs its customer to make the payment owed on the invoice to the financing company, which retains the difference between the amount financed and the full face value of the invoice as its profit.

The indictment alleges that that Martin submitted an on-line application for financing to NCF that falsely represented and inflated the monthly sales of Oledix Technologies.  In support of the financing application, Martin submitted additional fraudulent documents, including bank statements, financial reports, and sales summaries, that presented a false and misleading picture of the financial position of Oledix Technologies.  Finally, Martin provided NCF with fraudulent invoices which falsely represented that Oledix Techologies had sold electronic devices relating to video teleconferencing capabilities to Company 1 at a cost of $159,000, and had sold Johns Hopkins Hospital/Hopkins Medical Center three “Oledix mobile telemedicine carts” at a cost of $174,200.  Martin submitted an additional fraudulent invoice to NCF claiming that Hopkins had purchased an additional six “Oledix Mobile Telemedicine Carts” for a total price of $332,550.  The indictment alleges that Oledix Technologies actually owed money to Company 1, and had not sold any equipment to Johns Hopkins .  To carry out the scheme, Martin allegedly sent or caused to be sent to NCF fraudulent emails, purporting to be from a Hopkins doctor and from a Hopkins account manager, which falsely confirmed the validity of the Hopkins invoices.

The indictment further alleges that from July 2011 through July 2013, Martin made false statements to his probation officers.  During that time, Martin was on supervised release for a 2010 federal conviction in the Eastern District of California.  As part of his supervised release, Martin was required to provide his probation officer with a monthly report detailing personal, employment and financial information.  Martin certified that the information provided on the forms was correct.  The indictment alleges that Martin made false statements on the forms he provided to his probation officer, including where and with whom he was living, where he was employed, and that he was not a party to any lawsuit.

The indictment seeks forfeiture of $212,455, believed to be the proceeds of the fraud scheme.

Martin faces a maximum sentence of 20 years in prison for each of nine counts of wire fraud, and a maximum of five in prison for each of five counts of making a false statement.  Martin had his initial appearance on March 26, 2015 and is detained.

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

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked the U.S. Probation Office for its assistance.  Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced inmate Russell Carrington, a/k/ Rutt, age 34, of Baltimore, and a leader in the Black Guerilla Family (BGF) gang, today to 210 months in prison, followed by six years of supervised release, for a racketeering and drug conspiracy that included the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).  Carrington was convicted on February 5, 2015, after a lengthy trial.

Earlier this week, Judge Motz sentenced former correctional officers Jennifer Owens, a/k/a O and J.O., age 31, of Randallstown, Maryland; Milshenna Peoples, age 29, of Baltimore; and Javonne Lunkin, age 28, of Baltimore, each to a year and a day in prison, followed by three years of supervised release.  Owens, Peoples and Lunkin pleaded guilty to a racketeering conspiracy arising from their participation in the smuggling of drugs and contraband for members of BGF inside BCDC.

In a related proceeding, U.S. District Judge Ellen L. Hollander sentenced Tyesha Mayo, age 31, of Baltimore, on March 26, 2015, to 15 months in prison, followed by three years of supervised release. Mayo also pleaded guilty to the racketeering conspiracy, admitting that she supplied drugs to the COs which the COs then smuggled into the jail.

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; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS); Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Marilyn J. Mosby.

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

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

Carrington was a BGF leader incarcerated in BCDC who sold Percocet pills which COs smuggled into the jail for him.  Carrington had a sexual relationship with a correctional officer, who helped Carrington finance his drug operations by keeping Green Dot cards for him. In 2012, Carrington introduced Tavon White and a correctional officer to a source of supply for Percocet pills.  He also attempted to recruit other correctional officers to smuggle contraband into BCDC.  Former prison employee Michelle McNair also helped Carrington with his drug operations, but quit after Carrington failed to pay her.

Former correctional officers Owens, Peoples and Lunkin admitted that while they worked at BCDC, they helped smuggle contraband into the jail, including tobacco, marijuana, and prescription drugs, on behalf of and for further distribution by BGF members. The defendants knew that by smuggling contraband into BCDC, they furthered the racketeering enterprise of BGF.

Owens and Peoples entered into personal and sexual relationships with inmates who were BGF gang members.  For example, Owens admitted that she had a personal and sexual relationship with BGF gang leader Tavon White while he was an inmate at BCDC and has two children by White.  Owens had “Tavon” tattooed on her neck.  Peoples admitted that she also had personal and sexual relationships with inmates who were BGF members. Owens, Peoples and Lunkin were aware of other COs who were involved in smuggling and who had sexual relationships with inmates.

Outside the prison, Owens frequently obtained contraband from Tyesha Mayo and other co-defendants.  Mayo obtained Percocet, Xanax, Suboxone and marijuana from co-conspirators for distribution to COs.  Tavon White funded the drug purchases and paid Mayo for her services by means of Green Dot money transfers and by cash payments provided by co-conspirators outside the prison.

Inmates and BGF members Tavon White, a/k/a Bulldog and Tay, age 37, and Jamar Anderson, age 24, both of Baltimore, were sentenced to 12 years in prison and 121 months in prison, respectively.  Michelle McNair, age 24, of Baltimore, a former contract employee with the Department of Public Safety and Correctional Services, was convicted at trial for the racketeering and drug conspiracies, as well as a money laundering conspiracy.  McNair is awaiting sentencing.

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

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

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

Baltimore, Maryland –Darrick Jerome Greer, age 25, of Owings Mills, Maryland, pleaded guilty today to being a felon in possession of a firearm.

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 Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Colonel William M. Pallozzi, Acting Superintendent of the Maryland State Police.

According to his plea, on September 26, 2014, Greer was driving a vehicle that was stopped by a Maryland State Police trooper.  The trooper discovered that Greer possessed a loaded .380 caliber semi-automatic handgun, which had been stolen from its originally registered owner.

At the time, Greer was on release, pending sentencing in a bank fraud case in which he used the personal identifying information of over 50 individuals, resulting in a total loss to two banks of $183,846.96.

Greer had previously been convicted of a felony and therefore was prohibited from possessing a firearm or ammunition.  In addition, Greer’s conditions of release precluded his committing any federal, state or local offenses.

Greer faces a maximum sentence of 10 years in prison.  U.S. District Judge J. Frederick Motz has scheduled Greer’s sentencing for June 3, 2015, at 9:30 a.m.

On November 21, 2014, Judge Motz sentenced Greer to 42 months in prison for bank fraud and aggravated identity theft and ordered Greer to pay restitution of $183,846.96.

United States Attorney Rod J. Rosenstein commended the ATF, Secret Service and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney P. Michael Cunningham, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Richard Bruzdzinski, age 43, of Baltimore, today to 10 years in prison followed by five years of supervised release for committing an armed robbery, 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; 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 his plea agreement, on October 2, 2013, Bruzdzinski and co-conspirator Derek Roberts robbed a store in Timonium, Maryland.  The owner of the establishment recognized Bruzdzinski, who had been a customer of the store a few weeks earlier.  The owner opened the electronic door for Bruzdzinski and he and Roberts entered the store.  Immediately, Roberts drew a handgun, pointed it at the owner, and stated that a robbery was occurring.  Bruzdzinski drew a stun gun from his pocket.  The two men directed the owner and an employee to go to the office in the back of the store, then ordered the victims to the ground.  Bruzdinski and Roberts tied the hands of the victims with plastic zip ties.  Bruzdzinski and Roberts stole money, gold jewelry, coins, the owner’s Glock pistol, and the victims’ cell phones.

Derek Roberts, age 45, of Baltimore, previously pleaded guilty to his role in this robbery, as well as three other robberies.  Roberts and the government have agreed that if the Court accepts the plea, Roberts will be sentenced to 228 months in prison.  Judge Quarles has scheduled sentencing for May 14, 2015 at 1:00 p.m.  Roberts remains detained.

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

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Erin Elizabeth Mali, age 32, of Arnold, Maryland, today to seven years in prison followed by a lifetime of supervised release for conspiracy to distribute and receive child pornography, and for distribution of child pornography. Judge Garbis ordered that upon her release from prison, Mali must register as a sex offender in the place where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Anne Arundel County Police Chief Tim Altomare.

According to her plea agreement and testimony at the trial of co-defendant Howard James Clem IV, Mali met Clem 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.

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 Mali’s and Clem’s residences and on their social networking accounts.  Law enforcement recovered the SD card on which many of the images Mali distributed to Clem were stored.  In addition, law enforcement recovered the images and communications Mali and Clem exchanged from searches of their mobile social networking and dating application.  Mali admitted that she knew the minors depicted in the images were all under 16 years old.

On January 29, 2015, Howard James Clem IV, a/k/a “Jamie,” age 33, of Pasadena, Maryland, was convicted after a six-day trial for conspiracy to distribute and receive child pornography, and for receipt and possession of child pornography. Upon his conviction, Judge Garbis ordered that Clem be immediately taken into custody. Clem faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison for conspiracy to distribute and receive child pornography and for each of two counts of receipt of child pornography; and a maximum of 20 years in prison for possession of child pornography, each followed by up to lifetime of supervised release.   Judge Garbis has scheduled sentencing for Clem on May 27, 2015 at 10:00 a.m.

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

United States Attorney Rod J. Rosenstein commended the 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.

Baltimore, Maryland – Shawn Joseph Eisenstein, age 28, of Owings Mills, Maryland, pleaded guilty today to possession of child pornography. Eisenstein was previously convicted of distribution of child pornography in Baltimore County and was required to register as a sex offender.

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 William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to Eisenstein’s plea agreement, on May 28, 2008, in the Circuit Court for Baltimore County, Maryland, Eisenstein was convicted of distribution of child pornography, and was sentenced to five years’ incarceration, with three years and six months suspended.  Eisenstein was placed on three years of probation upon his release from prison and was also ordered to register as a sex offender.

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

During the search warrant, investigator’s seized Eisenstein’s cell phone, which was forensically examined by a Baltimore County Computer Forensic Examiner (CFE), and found to contain over 100 images of children engaged in child pornography.  In all, Eisenstein possessed over 600 images of child pornography, including pre-pubescent children and images portraying sadistic or masochistic conduct, or other depictions of violence.

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

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

Eisenstein and the government have agreed that if the Court accepts the plea agreement Eisenstein will be sentenced to 11 years in prison followed by up to a lifetime of supervised release.  U.S. District Judge George L. Russell has scheduled sentencing for June 12, 2015, at 2:00 p.m.

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

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

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced former U.S. Postal Service station manager Richard Lewis Wright, III, age 47, of Baltimore, today to 40 months in prison followed by three years of supervised release for bribery in connection with a scheme to obtain U.S. Postal Service contracts in exchange for bribe payments.  Judge Hollander also entered an order that Wright forfeit and pay restitution of $501,791.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

According to his plea agreement and court documents, Wright was the USPS station manager of the Waverly Station in Baltimore.  Co-defendant Kimberly Parnell was the USPS station manager of the Pikesville Station in Pikesville, Maryland.  As a station manager, Wright and Parnell had authority to contract for landscaping, snow removal and cleaning services at the post offices they managed, and bill those services to USPS for payment.

Beginning in 2007 for Wright and 2010 for Parnell, and continuing until July 2013, Wright and Parnell created, approved and submitted inflated invoices for maintenance work allegedly performed at their post offices. They split the proceeds with the providers of the services, including Shane Anderson and others.

For example, Wright and Parnell initially accepted bribes from a co-conspirator who owned a landscaping company.  In July 2013, after becoming increasingly frustrated with the co-conspirator’s slow payment of bribes, Parnell recruited Shane Anderson, who operated a landscaping company in Baltimore called Youthful Minds Lawn Care.  The co-conspirators agreed that Wright and Parnell would submit inflated invoices from Youthful Minds Lawn Care for landscaping services in exchange for a percentage of the proceeds paid to Youthful Minds by the USPS.

Similarly, beginning in August 2010, Wright also solicited and received bribes from Ladeena Sketers-Anderson, who operated Keep U Clean cleaning service.  Sketers-Anderson received USPS payments, approved by Wright for services allegedly provided at Wright’s Post Office.  Sketers-Anderson then issued checks to a cleaning company owned by Wright, which Wright cashed.

In all, Wright submitted $591,791 worth of invoices in exchange for bribes.

Kimberly A. Parnell, age 44, and Shane Anderson, age 38, both of Baltimore, and Ladena D. Sketers-Anderson, age 47, of Randallstown, Maryland, previously pleaded guilty to their roles in the scheme. Parnell, who admitted to submitting$50,470 worth of invoices in exchange for bribe payments, was sentenced to 20 months in prison.  Both Shane Anderson and Ladena Sketers-Anderson were sentenced to 15 months in prison.

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

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

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Derrick Chapman, age 22, of Baltimore, today to 179 months in prison, followed by three years of supervised release, after Chapman pleaded guilty today to carjacking.

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

According to his plea agreement, on August 1, 2013, Chapman approached a man who was alighting from his vehicle in the 3400 block of Mayfield Avenue in Baltimore and forcibly demanded his car keys and money.  Although Chapman was wearing a mask that partially covered his face, the victim recognized him.  Chapman threatened the victim, and ordered him to run away.  Chapman drove off in the victim’s car.

Several minutes later, Baltimore Police officers saw the stolen vehicle in the 4100 block of Parkside Drive in Baltimore.  They tried to initiate a traffic stop, but the vehicle sped off, crashed into several cars and rolled over. Baltimore Police officers arrested Chapman and recovered the mask. Chapman was identified by the victim car owner.

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

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Nichelle Nicole Rogers, age 28, of Washington, D.C., today to 54 months in prison followed by three years of supervised release for conspiring to commit wire fraud and aggravated identity theft, in connection with a scheme to defraud Target Corporation.  Judge Chasanow also sentenced Ebony Nicole Ruffin, age 28, of District Heights, Maryland, today to 27 months in prison followed by three years of supervised release for the wire fraud conspiracy in connection with the scheme.  Judge Chasanow entered orders that Rogers and Ruffin each forfeit and pay restitution of $485,000.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office.

According to their plea agreements, from September 2011 to November 2013, Rogers and  Ruffin used counterfeit personal checks and false identifications to fraudulently obtain visa gift cards and other merchandise from Target stores in Maryland, District of Columbia, Virginia, West Virginia, Pennsylvania and North Carolina. The co-conspirators presented over 1,400 counterfeit checks at Target stores, including stores in Frederick, Bowie, and Waldorf, Maryland, as payments for merchandise and gift cards, resulting in a total loss to Target of at least $485,000.

Rogers and Ruffin used the visa gift cards to buy items from Target for themselves, and to buy merchandise from other retailers, such as Nordstrom, later returning the merchandise for cash.

Rogers used or caused to be used the stolen identification of a real person on the counterfeit checks and presented this means of identification to Target cashiers to complete at least 350 transactions.

On November 9, 2013, Rogers was arrested by Prince William County (Virginia) Police officers for shoplifting at a Nordstrom Rack in Woodbridge, Virginia.  Police seized 27 counterfeit checks in her possession.  Rogers had previously attempted to use counterfeit checks and false identifications at other stores, and she had four receipts from a Target store which indicated that she had purchased 12 visa gift cards via counterfeit checks that day.

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

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorneys Kelly O'Connell Hayes and Thomas P. Windom, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Asem Elgawhary, 73, of Potomac, Maryland today to 42 months in prison for accepting $5.2 million in kickbacks to manipulate the competitive bidding process for state-run power contracts in Egypt.  Judge Chasanow also ordered Elgawhary to forfeit $5.2 million.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office.

Elgawhary, the former principal vice president of Bechtel Corporation and general manager of a joint venture operated by Bechtel and an Egyptian utility company pleaded guilty on Dec. 4, 2014, to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws.

From 1996 to 2011, Elgawhary was assigned by Bechtel—a U.S. corporation engaged in engineering, construction and project management—to be the general manager at Power Generation Engineering and Services Company (PGESCo), a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company, known as EEHC.  PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC.  According to his plea agreement, Elgawhary admitted to accepting a total of $5.2 million from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process.  One of the power companies, Alstom S.A., together with a Swiss subsidiary, pleaded guilty on Dec. 22, 2014, to violations of the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay bribes to foreign officials, including Elgawhary, in various countries. 

As Elgawhary admitted in his plea agreement, he attempted to conceal the kickback scheme by routing the payments through various off-shore bank accounts, including Swiss bank accounts, under his control.  Elgawhary also sent various documents and “Representation Letters” to Bechtel executives and members of the PGESCo Board of Directors, falsely certifying that he had no knowledge or suspicion of any fraud at PGESCo, and that there were no possible violations of law or regulations that should have been considered for disclosure in PGESCo’s financial statements.  Elgawhary also admitted that, in a further attempt to conceal the scheme, he made misrepresentations to counsel for Bechtel when he was interviewed in April 2011.

Elgawhary further admitted to obstructing and interfering with tax laws by failing to report any of the kickback payments as income for the tax years 2008 through 2011 and providing false information about foreign bank accounts.

Elgawhary, a dual U.S. and Egyptian citizen, was arrested on a criminal complaint when he flew into the United States on Nov. 26, 2013, and was indicted on Feb. 10, 2014. 

United States Attorney Rod J. Rosenstein thanked the FBI and IRS-CI for their work in the investigation.  U.S. Attorney Rosenstein also recognized the significant assistance provided by the Criminal Division’s Office of International Affairs, and law enforcement counterparts in Switzerland, Germany, Italy, Saudi Arabia and Cyprus.  Mr. Rosenstein praised Assistant U.S. Attorney David I. Salem and Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section, who prosecuted the case.

Baltimore, Maryland - A federal grand jury has returned a superseding indictment charging eight new defendants with racketeering conspiracy, drug and gun charges related to their gang activities as members and associates of the UDH or “Up Da Hill” organization, which operates in the Cherry Hill section of Baltimore. The superseding indictment, which was returned on March 18, 2015, and unsealed on March 20, 2015, also adds new charges against four defendants charged in the original indictment.

The superseding indictment charges the following defendants:

Steven Jackson, a/k/a Cutty, age 24, of Baltimore;

Asim Benns, a/k/a Seem, age 31, of Baltimore;

Clarence Shipley, a/k/a Mook, age 27, of Baltimore;

Gregory Sykes-Bey, age 21, of Baltimore;

*Elijah Sykes-Bey, a/k/a LaLa, age 20, of Baltimore;

*Cornell Harvey, a/k/a Little Head, age 27, of Baltimore;

*James Scott, a/k/a Mook Day, age 23, of Essex, Maryland;

*Lamont Jones, a/k/a Butt Juice, age 22, of Baltimore;     

*Dominic Evans, a/k/a Flatline, age 25, of Baltimore;

*Michael Smith, a/k/a Lil Mikey, age 22, of Baltimore;

*Donte Thornton, a/k/a Tay, age 30, of Baltimore; and

*Alonzo Clea, a/k/a Zo, age 25, of Baltimore.

* - indicates new defendant charged in this indictment.

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

All 12 defendants are charged in a racketeering conspiracy as well as in a conspiracy to distribute heroin, powder and crack cocaine, and marijuana as members of the “UDH” organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.”

According to the superseding indictment, the members of UDH were part of a racketeering enterprise and protected their power, territory and profits through the use of violence, threats of violence, intimidation, robbery, narcotics trafficking and obstruction of justice. The superseding indictment alleges that UDH members have also committed murders, attempted murders, assaults, carjackings, obstruction of justice and robberies. Specifically, the superseding indictment alleges that, beginning in 2004, UDH members committed six murders of rival gang members and/or drug dealers, and shot nine other individuals. In addition, the superseding indictment alleges that members of UDH committed home invasion, street and bank robberies in order to fund their narcotics activities.

All 12 defendants face a maximum sentence of life in prison.  All are detained pending trial.

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

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

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Anthony Miles, a/k/a “Bigs,” and “Fat Boy,” age 30, of Baltimore, late on March 20, 2015, to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.  

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.

According to his plea agreement, as part of an investigation into a drug trafficking organization that operated primarily in Baltimore City and Baltimore County, Miles was intercepted in text messages, telephone calls and other recordings arranging heroin transactions. On numerous occasions a cooperating witness drove Miles to locations in the Baltimore area to meet co-conspirators.  At the meetings, Miles delivered heroin to the co-conspirators and collected payment for the drugs.  For example on February 15, 2013, after delivering heroin to at least three co-conspirators and collecting money, Miles reportedly raised up a large stack of cash, holding it with both hands, and screamed that he just made $20,000 in an hour.

Over the course of the conspiracy Miles was responsible for the distribution of more than one kilogram of heroin.  Miles’ participation in the heroin conspiracy violated the conditions of his supervised release for a previous federal drug conviction.

A total of 12 defendants, including Miles, Enzo Blanks, a/k/a “Zo,” age 29, and Marlow Bates, a/k/a “Low,” age 33, both of Baltimore, have been convicted for the heroin distribution conspiracy.  Blanks and Bates were also sentenced to 10 years in prison for their roles in the conspiracy.

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

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Jennifer Rodriguez, age 41, of Hyattsville, Maryland today to a year and a day in prison followed by three years of supervised release for a fraud conspiracy arising from the filing of 283 false tax returns.  Judge Motz entered an order that Rodriguez pay restitution of $983,382, the amount of fraudulent tax refunds paid by the IRS.

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.

“The sole objective of Ms. Rodriguez’s identity theft scheme was to unjustly enrich herself at the expense of the American taxpayer,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.  “Today's sentencing of Ms. Rodriguez should serve as a stark reminder to others that criminal behavior comes with a cost, prison time.”

According to her plea agreement, Rodriguez owned Latin Multi Services, a tax preparation service located in Silver Spring, Maryland.  From October or November 2010 to January 2012, Rodriguez filed false income tax returns using the stolen identities of Puerto Rico residents.  The stolen identities of families, including minor children, were obtained from a co-conspirator residing in Puerto Rico.  Rodriguez falsely listed the tax payers’ home addresses as her own home address in Maryland, or variations of her business address.  These tax returns also included fabricated income and deductions.  All of the fraudulent returns requested refunds to be deposited in bank accounts that Rodriguez or a co-conspirator controlled.

Over the course of the scheme, Rodriguez filed 283 false tax returns which caused IRS to pay $983,382 in fraudulent refunds.

United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.

Baltimore, Maryland – A federal jury today convicted 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.

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

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

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

The defendants each face 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. U.S. District Judge Richard D. Bennett has scheduled sentencing for Sampson, Parker, Cannady and Brown on June 24, June 26, June 29, and June 30, 2015, respectively.

Four co-defendants previously pleaded guilty to their participation in the scheme to distribute five or more kilograms of cocaine: Antoine DeMarr Washington, age 42, of Washington, D.C.; Guy Bordes Agnant, Jr., age 38, of Laurel, Maryland; Tavon Alexander Louis Hopkins, age 38, of Baltimore; and Vincent Cooper, age 47, of Washington, D.C.  Donte Eugene Taylor, age 39, of Baltimore also pleaded guilty to his role in the scheme. All are awaiting sentencing.

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.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Richard Ho Lee, age 33, of Baltimore, today to five years in prison, followed by 11 years of supervised release, for receipt of child pornography. Judge Motz also ordered that upon his release from prison, Lee must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).  In addition, Judge Motz entered an order requiring that Lee to forfeit property that was used or intended to be used to commit or to promote the offenses to which Lee has pleaded guilty. The property to be forfeited includes Lee’s home in the 600 block of South Wolf Street in Baltimore, two laptop computers and an external hard drive.

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

According to Lee’s plea agreement, on five occasions in September and October of 2011, while Lee and the victim were in Baltimore, Lee purchased sex from T.F. At the time, T.F. was representing to patrons that she was 19 when, in fact, she was 16.  On October 31, 2011, Lee paid for a bus ticket for T.F. to travel to Panama City, Florida, where Lee met her.  Lee took the victim to a condo he had rented in Panama City.  Upon arriving in Panama City, T.F. told Lee that she was only 16 years old. According to the statement of facts, Lee continued to have sex with T.F., and encouraged her to engage in prostitution.  From about December 22, 2011 to January 4, 2012, Lee placed at least 15 advertisements for the victim in the “escorts” and “body rubs” sections of an adult website.  Lee used his personal credit card to pay for the advertisements.  Lee took provocative photographs of T.F. in lingerie and underwear that he had purchased for her and attached some of the photos to the advertisements.  Lee rented a second condominium where T.F. had sex with customers and agreed to provide Lee with a percentage of her earnings.

On January 9, 2012, Lee purchased a bus ticket for T.F., which she used to travel from Florida back to Maryland. In January 2012, Lee produced a counterfeit North Dakota state driver’s license for T.F., which indicated that she was 22 years old.  In May 2012, Lee took provocative photographs of T.F. inside his residence in Baltimore.

In June 2012, federal agents recovered Lee’s laptop computers and an external hard drive which contained over 600 images of child pornography, including images that depicted minors that are less than twelve years old and portrayed sadistic and masochistic conduct. Further, the laptop contained templates designed to be used for the production of counterfeit state driver’s licenses.

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, Baltimore County Police Department, Baltimore City Police Department and the Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Rodney Sylvester Wiggins, age 28, of Baltimore, today to 292 months in prison, followed by five years of supervised release, for robbery, brandishing a gun during the robbery and being a felon in possession of a gun and ammunition.

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; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.

“Rodney Wiggins did not get the message that we have zero tolerance for gun crime after his previous state armed robbery convictions, and now he will be exiled to federal prison for the next 24 years,” said U.S. Attorney Rod J. Rosenstein. “Hopefully others will get the message before it is too late.”

According to evidence presented at his bench trial and other court documents, on February 2, 2013, a husband and wife checked into a Glen Burnie hotel before embarking on a vacation cruise.  Wiggins rode up the same elevator as the couple.  Shortly after, Wiggins knocked on their room door claiming to be a maintenance employee.  Wiggins pointed a gun at the husband and demanded money, keys, credit cards and cell phones.  Wiggins threatened to shoot the couple.  The husband handed Wiggins $200 and Wiggins left.

The husband reported the robbery to the hotel’s front desk.  A hotel employee saw Wiggins on a security monitor walking down a stairwell and leaving the hotel.  The employee called 911, walked outside, saw Wiggins crossing a highway toward another hotel, and gave Wiggin’s location to 911.  Minutes later, police arrived, arrested Wiggins and seized a loaded handgun and $210.

Wiggins had previously been convicted of a felony and was prohibited from possessing a gun and ammunition.    

United States Attorney Rod J. Rosenstein commended the ATF, Anne Arundel Police Department and Anne Arundel State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Scott A. Lemmon, who prosecuted the case.