District of Maryland

Baltimore, Maryland – U.S. District Judge George J. Hazel sentenced Charles Riley, Jr., age 45, of Salisbury, Maryland, today 20 years in prison, followed by 10 years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine and for two counts of possession with intent to distribute cocaine. Judge Hazel enhanced Riley’s sentence based on his previous federal drug conviction and the amount of drugs involved in the conspiracy. Riley was convicted on December 11, 2014, after a three day trial.

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; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; and Wicomico County State’s Attorney Matthew Maciarello.

“Mr. Riley was responsible for trafficking a large amount of cocaine throughout the Salisbury area in a very short amount of time,” said Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office.  “DEA and our law enforcement partners put an end to Mr. Riley's drug trafficking days. A new day has dawned for Mr. Riley - from a jail cell in a federal prison,” added Tuggle.

The government proved at trial that Riley distributed over 15 kilograms of cocaine in less than two months.  Riley distributed approximately 10 kilograms of that amount while on pretrial release on state drug charges.

According to trial testimony and his co-defendants’ plea agreements, from July 2013, through August 27, 2013, Riley conspired with David Wayne Nelson, Royce Levi Brown, Charles Rudolph White and others to distribute cocaine.  During the investigation, DEA and the Wicomico County Narcotics Task Force initiated wire taps on cellular telephones belonging to the conspirators and executed search warrants at multiple locations, including residences associated with Riley, Brown, Nelson and White.  Law enforcement overheard and observed the conspirators engage in drug transactions.  During the investigation, law enforcement identified Riley as a source of supply for Brown, who redistributed the cocaine to Nelson.  Brown also purchased cocaine from White.

In late July 2013, law enforcement intercepted telephone conversations and text messages in which Brown told Riley that he was delivering – or had already delivered – large cash payments.  The payments to Riley were for kilograms of cocaine that Riley had previously “fronted,” or provided on consignment, to Brown.  On August 16, 2013, Riley retrieved a package containing almost 500 grams of cocaine from a residence in Salisbury.  Riley was seen on videotape retrieving the package and was in possession of the package later that afternoon, when he was arrested on state drug charges.  According to evidence presented at trial, following his arrest Riley discussed the package with Brown, who in turn discussed it with other co-conspirators.

According to trial testimony, on August 16, 2013, law enforcement executed a search at Riley’s home and recovered drug paraphernalia including a cocaine press, a scale, money counter, and drug packaging material.  Law enforcement also recovered a loaded AK-47 and a loaded 9mm handgun, as well as ammunition.

According to testimony at his trial, early on August 21, 2013, Riley parked a Jeep Grand Cherokee containing between nine and 10 kilograms of cocaine, in Brown’s yard.  On August 27, 2013, a search of the vehicle recovered 5.5 kilograms of cocaine.  A subsequent search of Brown’s home recovered an additional two kilograms of cocaine that Brown had removed from the Jeep and hidden in a backpack in his bedroom.

Co-conspirators David Wayne Nelson, age 32, of Salisbury, Maryland, was sentenced to 140 months in prison; Royce Levi Brown, age 31, of Mardela Springs, Maryland, was sentenced to four years in prison; and Charles Rudolph White, age 34, of Salisbury, was sentenced to 37 months in prison.

United States Attorney Rod J. Rosenstein commended the DEA and the Wicomico County Narcotics Task Force comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department and the Wicomico County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Peter J. Martinez and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland - Krist Koranteng, age 33, of Burtonsville and Laurel, Maryland, pleaded guilty today to a mail and wire fraud conspiracy, and to money laundering, in connection with a scheme in which the conspirators pretended to be romantically interested in the victims in order to cause the victims to wire, deposit, and mail money to Koranteng’s business.  The total losses to the victims, including elderly individuals, as a result of the scheme are more than $1.1 million. Koranteng also pleaded guilty to violating his supervised release for a previous federal drug conviction.

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 Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.     

According to his plea agreement, between September 2012 and February 2014, Koranteng and others executed a scheme in which the conspirators searched online dating websites to initiate romantic relationships with men and women, including several elderly individuals, in order to obtain money from those individuals.  Members of the conspiracy used phone calls, emails, and text messages to form romantic relationships with the victims.

According to the plea agreement, to execute the scheme, the conspirators used a number of false stories and promises to convince the victims to give money to the members of the conspiracy, including: stories about investing in fake gold that required payments for shipping and storage; fictitious sick family members who needed money; fake hospital bills; and fake plane trips to visit the victims.  Members of the conspiracy convinced the victims to mail checks to Kristsons LLC, a corporation that Koranteng created and controlled, or to wire money into bank accounts held in the name of that corporation, which Koranteng also controlled.

To conceal the scheme from the victims, the conspirators created false documents, including false certificates of origin certifying the existence of gold bars, and false documentation creating the impression that the gold bars were being stored at a safe house for a fee. 

Koranteng disbursed the money that he received from the victims by transferring money to other accounts, by withdrawing sums of money, and by writing checks to other individuals.  For example, on May 30, 2013, Koranteng transferred by wire $39,039.88 from one of his business’ bank accounts to another account, with the knowledge that the transaction involved the proceeds of a criminal offense.

Koranteng was regularly in communication with his co-conspirators immediately following a victim’s transfer of money into Koranteng’s business bank accounts. For example, on February 20, 2013, a victim transferred $25,000 into Koranteng’s business bank account in Maryland.  That same day, Koranteng’s co-conspirator sent an email to Koranteng that included two attachments: a receipt for that victim’s wire transfer; and a purported agreement indicating the victim believed she was investing in gold bars by transferring the money to Koranteng.

In addition to receiving money from the victims during the conspiracy, Koranteng also used a false name to order and send roses to one victim. Shortly thereafter, that victim mailed a check in the amount of $65,000 to Koranteng’s business in Maryland, which Koranteng deposited.

As part of his plea agreement, Koranteng will be required to pay restitution of $1,171,657, which represents the full amount of the victims’ losses.

Koranteng’s participation in the wire and mail fraud conspiracy violated the terms of his supervised release for a 2013 conviction for conspiracy to distribute and possess with intent to distribute heroin.

Koranteng faces a maximum sentence of 20 years in prison for the conspiracy to commit mail and wire fraud; and a maximum of 10 years in prison for money laundering.  Koranteng also faces a maximum of three years in prison for violating his federal supervised release.  U.S. District Judge Paul W. Grimm has scheduled sentencing for July 2, 2015, at 9:30 a.m.  Koranteng remains detained pending sentencing.

United States Attorney Rod J. Rosenstein praised the FBI, U.S. Secret Service and Montgomery County Police Department for their work in the investigation, and thanked the Ohio Attorney General’s Office for its assistance.  Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and David I. Salem, who are prosecuting the case.

Baltimore, Maryland – The former Chief Executive Officer (CEO) of Baltimore Behavioral Health (BBH), William Kristen Hathaway, age 52, of Ellicott City, Maryland pleaded guilty today to failing to pay to the IRS more than $2.4 million in payroll taxes deducted from the paychecks of BBH employees, and to stealing more than $53,000 from the BBH employee benefit plan.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.

“As chief executive officer of a primary ‘charitable’ organization funded by the government to treat Baltimore drug addicts, William Kristen Hathaway paid lucrative salaries to his family members while cheating the IRS and the employee pension plan,” said U.S. Attorney Rod J. Rosenstein. “This case highlights the need for close oversight of organizations that receive public funds.”

“Hathaway abused his position of trust at Baltimore Behavioral Health,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Through manipulation and theft, Hathaway’s scheme left the American taxpayers and the employees of Baltimore Behavioral Health with the tab for his greed.”

“Mr. Hathaway’s fraudulent actions hurt the livelihood of BBH employees, and he should be held accountable,” stated 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.  “My office remains committed to investigating these types of crimes, and we will continue to work diligently with our law enforcement partners to ferret out corrupt individuals.”

 According to Hathaway’s plea agreement, he was the CEO for BBH, a tax-exempt organization that provided treatment to people with drug addictions and mental disorders.  Hathaway exercised significant control over many aspects of BBH’s business affairs, including managing the company’s financial accounts and overseeing the employee payroll process, which included calculating the withholding of taxes and contributing to and maintaining employee benefit plans.  The Board of Directors for BBH was primarily comprised of Hathaway’s relatives, including his wife, his sister, and his mother.  Board members were paid a salary.

Hathaway admitted that from March 2009 through December 2011, he regularly deducted payroll taxes from all employees’ wages without forwarding the money to the IRS.  For example in the second quarter of 2009, Hathaway caused $344,112.26 in federal payroll taxes to be withheld from employees’ wages, but he elected not to pay that amount over to the IRS.  Hathaway admitted withholding a total of $2,495,779 in payroll taxes from March 2009 through December 2011, but instead of forwarding those funds to the IRS, he spent the money on company expenses.  For example, during the same period, Hathaway authorized a total of $2,730,752 in salaries to BBH officers, including himself, and contractual payments to an entity owned and operated by his mother and stepfather.

Hathaway also served as a fiduciary for the employee pension plan and was responsible for transferring employee contributions to the retirement plan, as well as any matching company contributions to the custodian of assets for the BBH employee pension plan.  Hathaway admitted that from September 2009 through April 2010, Hathaway diverted $53,530.07 in employee contributions to the BBH employee pension plan to pay company expenses, instead of transferring those funds to the custodian of assets.

Hathaway faces a maximum sentence of five years in prison for each of the two counts.   U.S. District Judge Richard D. Bennett has scheduled sentencing for June 18, 2015 at 3:00 p.m.

United States Attorney Rod J. Rosenstein commended the IRS – CI and the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for their work in the investigation and the Employee Benefits Security Administration for its assistance in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Martin J. Clarke, who is prosecuting the case.

Greenbelt, Maryland – George Joseph Grillo, age 64, of Upper Marlboro, Maryland pleaded guilty today to wire fraud and money laundering conspiracy arising from a scheme to make it appear that a minority business enterprise (MBE) performed work on Washington Suburban Sanitary Commission (WSSC) contracts, when in fact, the MBE had not performed the work.

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

 According to the plea agreement, in 2009 and 2010 a non-minority-owned water tank painting company (Company 1) obtained three contracts with the WSSC to paint and repair water tanks or equipment: the Falls Road standpipe contract, the Carole Highlands tank contract and the Hampshire Green contract. The combined value of the three contracts was $2,390,177.  Each contract required Company 1 to subcontract 28% or 29% of the contract’s value to certified MBEs or small local business enterprises.  The required percentage of the contract, which in this case totaled $679,965.20, was to be paid directly to the MBE.

According to his plea agreement, Grillo was a certified public accountant and from 2002 through 2014 was the chief financial officer of a minority business enterprise that operates as a construction company, and a recycling company. Since the 1980’s Grillo had performed accounting work for the owner of Company 1, including preparation of tax returns, payroll for the company, and financial statements.

Grillo admits that from 2010 to 2014, he conspired with others to make it appear that Company 1 met its minority subcontracting requirements on the WSSC contracts.

For example, the owner of Company 1 directed Grillo to send invoices from his minority-owned company indicating that the company had provided materials on two contracts. Grillo created invoices indicating that his company had provided $78,000 worth of materials on the Falls Road contract and $30,000 worth of materials on the Carole Highlands contract.  As directed by the owner of Company 1, these invoices were submitted to another minority subcontractor working with Company 1.  In fact, neither Grillo’s company, nor the other minority-owned subcontractor had purchased any materials related to these invoices. To make the fake invoices appear authentic, on June 30, 2011, a check was issued to Grillo’s company for $108,000.  On July 5, 2011, Grillo issued a check from his company to Company 1 for $106,920.

 In 2010, Grillo agreed that his company would serve as the MBE for Company 1 on the Hampshire Green contract.  In 2011, although Grillo’s company had not performed any work on the contract, Grillo caused his company to submit an invoice to WSSC for 28% of the Hampshire Green contract, or $57,504.88, to conceal the fact that Company 1 had not met its contractual obligation to subcontract 28% to an MBE.  Again, to make it appear that Grillo’s company had performed the work, Company 1 issued a check for $57,504.88 to Grillo’s company, and a short time later, Grillo’s company issued a check back to Company 1 for $58,291.81.

The conspiracy involved between $1 million and $2.5 million of laundered funds.

Grillo faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for June 29, 2015 at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended the FBI and IRS-CI for their work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney James I. Pearce and Assistant U.S. Attorney Mara Zusman Greenberg, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced David Dwayne Rudolph, age 33, of Capitol Heights, Maryland today to 24 years in prison, followed by five years of supervised release, for possession with intent to distribute crack and powder cocaine and marijuana; and for being a felon in possession of a firearm.  Judge Chuang also ordered that Rudolph forfeit four firearms and $9,432 in cash seized during the investigation, as well as a 2005 GMC Yukon used by Rudolph to facilitate his drug trafficking.

“Despite four prior state felony convictions, David Dwayne Rudolph was caught with an arsenal of loaded weapons and other tools of the drug trade,” said U.S. Attorney Rod J. Rosenstein. “If we want to continue reducing violent crime, we need to show zero tolerance for armed criminals.”

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 his plea agreement, on April 8, 2014, Prince George’s County Police officers executed a search warrant at a Forestville apartment used by Rudolph to store drugs.  The search recovered a semi-automatic handgun, 160 grams of crack cocaine, 115 grams of marijuana, and three digital scales and a glass container with cocaine residue.

On June 26, 2014, Prince George’s County Police officers executed an arrest warrant for Rudolph when he was driving his vehicle, a 2005 GMC Yukon.  Officers located $1,725 in cash, 39 bags containing a total of 17 grams of crack cocaine, and several cell phones in the car.  The next day, law enforcement executed a search warrant at Rudolph’s residence in Forestville.  During the search, officers recovered a bullet proof vest, approximately 690 grams of crack cocaine, 55 grams of powder cocaine, 1,205 grams of marijuana, and $7,707 in cash.  In addition, law enforcement recovered a .45 caliber pistol loaded with 12 rounds of ammunition, a 9mm pistol loaded with 16 rounds of ammunition, and a .32 caliber pistol loaded with 11 rounds of ammunition.  Rudolph had previous felony convictions and was prohibited from possessing a firearm or ammunition.

United States Attorney Rod J. Rosenstein praised the ATF and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack and Lindsay Eyler Kaplan, who prosecuted the case.

Baltimore, Maryland – Ilgar Rakhamimov, age 41, of Pikesville, Maryland, pleaded guilty today to conspiracy to receive, possess, sell and distribute over $6.6 million in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.   

According to their guilty pleas, Elmar Rakhamimov (no relation to Ilgar Rakhamimov) was the leader and organizer of the scheme, and he coordinated with Ilgar Rakhamimov and another conspirator to collect the money to purchase the contraband cigarettes, and to arrange for the storage and transportation of the contraband cigarettes to Brooklyn, New York.  Other members of the conspiracy included Zarakh Yelizarov, Salim Yusufov, Adam Azerman, Shamil Novakhov, and Ruslan Ykiew.  Elmar Rakhamimov, Ilgar Rakhamimov, and another conspirator purchased contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area.

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

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

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

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

Ilgar Rakhamimov faces a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes.  As part of his plea agreement, Ilgar Rakhamimov is also required to pay a $50,000 fine.  U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Ilgar Rakhamimov for June 11, 2015, at 1:00 p.m.

Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland, and his brother, Salim Yusufov, age 43, of Reisterstown, Maryland; Zarakh Yelizarov, age 52, and Adam Azerman, age 59, both of Pikesville; and Shamil Novakhov, age 58, and Ruslan Ykiew, age 39, both of Brooklyn, New York, previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.

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

Baltimore, Maryland – A former U.S. Postal Service (USPS) letter carrier, Antoinette McDaniels, age 46, of Windsor Mill, Maryland, pleaded guilty today to a bribery and drug conspiracy in which she accepted bribes to divert packages of marijuana sent through the mail and deliver the packages to co-conspirators.  Former USPS letter carrier, Hilary Gainey, age 26, of Baltimore, pleaded guilty to the same charges on March 6, 2015.

The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City Sheriff John Anderson.          

“The US Postal Inspection Service is determined to protect Postal employees and the US Mail from criminal misuse and unsafe elements,” said David M. McGinnis, Acting Postal Inspector in Charge of the U.S. Postal Inspection Service - Washington Division.  Inspector McGinnis continued, “Postal Inspectors will continue to team with our law enforcement partners to pursue those individuals who would endanger Postal employees and corrupt the US Postal Service to further their criminal enterprises.”

According to the their plea agreements, McDaniels and Gainey conspired with others who paid them bribes in exchange for diverting packages containing marijuana and delivering those packages to the co-conspirators.

Specifically, Gainey and McDaniels admitted that in December 2013 and January 2014, respectively, while they were employed by the U.S. Postal Service as letter carriers, they agreed to divert specific packages sent through the U.S. mail that contained marijuana, and deliver those packages to co-conspirators, in exchange for $100 per parcel. According to their plea agreements, the packages were sent via the U.S. mail from Arizona, California, Florida, and elsewhere, to addresses along McDaniels’ route in Baltimore and Gainey’s route in Columbia, Maryland.

During the course of the conspiracy Gainey and McDaniels delivered approximately 100 packages and 30 packages, respectively, to their co-conspirators, and were paid approximately $100 per delivery. In addition, McDaniels received a total of $1,700 from co-conspirators in the form of “loans” that they never requested to be paid back.  Gainey was paid a total of $10,000 by the co-conspirators and McDaniels was paid a total of $4,700 by the co-conspirators.  The total amount of marijuana distributed by McDaniels during the course of the conspiracy was between 80 and 100 kilograms.  During her participation in the conspiracy, Gainey is responsible for the distribution of between 100 and 400 kilograms of marijuana.

McDaniels and Gainey each face a maximum sentence of five years in prison for the bribery conspiracy and two years in prison for bribery.  McDaniel faces a maximum of 20 years in prison and Gainey faces a mandatory five years and up to 40 years in prison, for conspiracy to distribute and possess with intent to distribute marijuana.  U.S. District Judge J. Frederick Motz has scheduled sentencing for McDaniels on May 8, 2015, at 10:00 a.m. and for Gainey on June 5, 2015, at 9:30 a.m.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, DEA, Maryland State Police, Baltimore City Police Department and Baltimore City Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Jason D. Medinger, who is prosecuting the case.

Baltimore, Maryland – Charles A. Adegbesan, age 26, of Springdale, Maryland pleaded guilty today to conspiring to commit access device fraud.

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

According to his plea, on three occasions from July 11 to August 4, 2009, Adegbesan and co-conspirators were captured on surveillance cameras at Giant grocery stores in Salisbury, Maryland, and in Bear and Middletown, Delaware, using access device numbers belonging to 11 victims to make unauthorized purchases totaling $45,477.91.

On May 30, 2010, law enforcement officers executed a search warrant at Adegbesan’s residence and seized three debit cards and a credit card, all of which had been re-encoded with stolen access device numbers.

During the course of the conspiracy from May 2009 to May 2010, Adegbesan and his coconspirators were responsible for losses to over 50 victims totaling $125,687.61.

 Adegbesan has agreed to pay restitution of at least $125,687.61.

Adegbesan faces a maximum sentence of five years in prison and a fine of $250,000.  U.S. District Judge J. Frederick Motz scheduled his sentencing for June 11, 2015, at 10:30 a.m.

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

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

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Raymond Edward Gill, age 59, of Baltimore, today to 40 years in prison followed by five years of supervised release for armed bank robbery and brandishing a firearm during the robbery.

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

According to evidence presented during the four day trial, on August 27, 2013, Gill used a handgun to rob the Wells Fargo Bank in Catonsville, Maryland.  Gill waited in line for a teller window to become available and then pointed a revolver at the teller, demanding money.  The teller opened her cash drawer and provided $22,004.  Gill left the bank.

The bank manager followed Gill out to the parking lot, and saw him remove his shirt and walk away.  Baltimore County Police investigated the scene and seized the shirt, along with a hat and surgical mask.  Gill’s DNA was found on the hat and mask.  Bank surveillance videos showed views of Gill’s face, and the robbery itself.

Approximately a week later, Gill was arrested near his home.  On October 6, 2013, Gill was overheard on a jail call telling his sister to sell his gun.

Since age 24, Gill has been convicted three times for crimes arising out of the robberies of 12 banks, 10 of which were committed while on parole and supervised release.

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 Paul E. Budlow and Sean R. Delaney, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Gary Tyrone Kess, age 37, of Reisterstown, Maryland today to 12 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 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; Caroline County Sheriff Randy Bounds; and Caroline County State’s Attorney Jonathan Newell.

According to his plea agreement, in June 2014, Kess supplied heroin to an Eastern Shore drug trafficker.  On June 14, 2014, law enforcement observed a co-conspirator complete a transaction in Kess’ minivan.  On June 16, 2014, law enforcement intercepted a text message between the co-conspirator and Kess arranging a transaction for 150 grams of heroin.  The next day, the co-conspirator was observed briefly meeting with Kess.  On June 23, 2014, law enforcement saw Kess meet with the co-conspirator in the parking lot of a fast food restaurant in Severna Park, Maryland.  The co-conspirator entered Kess’ minivan and two minutes later exited the vehicle.  Shortly thereafter, Kess was stopped for a traffic violation.  After a canine alerted for the presence of narcotics, the vehicle was searched and law enforcement recovered 150 grams of heroin and $6,000 packaged in bank envelopes.

United States Attorney Rod J. Rosenstein praised the HSI Baltimore, and the members of the Caroline County Drug Task Force – the Maryland State Police, Caroline County Sheriff’s Office, and the Caroline County State’s Attorney’s Office, for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew C. Sullivan and Christopher J. Romano, who prosecuted the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Terrence Major, age 52, of Baltimore, today to 115 months in prison followed by three years of supervised release for robbing a fast food restaurant, pistol whipping and threatening to infect the cashier with AIDS.

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

According to his plea agreement, on October 3, 2013 Major walked into the restaurant in Linthicum Heights, Maryland, wearing a ski mask and a backpack.  He pointed a BB gun that resembled a Walther P22 pistol at the cashier and demanded money.  Major grabbed the cashier’s shirt collar and necklace, and pulled her to the front counter area.  He struck her across the face with the gun.  Major grabbed her by the head and pulled her forward, knocking off her glasses.

Major then demanded that the cashier open the register, and said that if she did not comply, she would never see her family again. The cashier replied that she could not open the register without a sale.  Major told her that she had three seconds to open the register or he would shoot her.  Major then withdrew a syringe from his pocket and squirted liquid on the counter, telling the cashier that the syringe was infected with AIDS and that he would stab her with it.

The cashier opened two cash registers, and Major took about $650.

United States Attorney Rod J. Rosenstein commended the FBI, Anne Arundel County Police Department and Anne Arundel 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 Ellen L. Hollander sentenced former correctional officers Kimberly Dennis, age 27, and Antonia Allison, age 29, both of Baltimore, Maryland to 24 months and 20 months in prison, respectively, each followed by two years of supervised release, for a racketeering conspiracy in which they smuggled drugs and other contraband for members of the Black Guerilla Family (BGF) gang inside several correctional facilities. Dennis was sentenced today and Allison was sentenced on March 10, 2015.

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

According to 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.                 

According to her plea, Kimberly Dennis worked as a Correctional Officer (CO) at Baltimore City Detention Center (BCDC) from 2006 to 2013.  She entered into personal and sexual relationships with two inmates who were members of the Black Guerilla Family (“BGF).  Dennis smuggled contraband, including marijuana, tobacco and prescription pills, into BCDC on behalf of BGF inmates, who would then sell that contraband to other BCDC inmates who were members of BGF.  Allison admitted she also smuggled contraband, including prescription pills and marijuana, into BCDC for eventual distribution by inmates with the BGF.  Dennis and Allison were aware of the inmates’ BGF affiliation and assisted in furthering the racketeering enterprise.  Dennis and Allison worked with other CO’s to assist in the smuggling and were aware that other co-defendants and correctional officers also smuggled contraband and were involved in sexual relationships.

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.

Inmate Tavon White, a/k/a Bulldog and Tay, age 37, of Baltimore was sentenced to 12 years in prison.

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 - Samuel Loring Morison, age 70, of Crofton, Maryland, pleaded guilty today to theft of government property, specifically, historical records related to his grandfather, Rear Admiral Samuel Eliot Morison.

U.S. District Judge William D. Quarles, Jr. also sentenced Morison today to two years’ probation with the conditions that: he not access any library or archives without the permission of his probation officer; and he cooperate with investigators and archivists in identifying any other government property in his possession.  In imposing the probationary sentence, Judge Quarles cited Morison’s failing health, his prior military service and his cooperation with investigators.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service (NCIS), Washington Field Office; and Acting Inspector General James Springs of the National Archives and Records Administration (NARA) - Office of Inspector General.       

“It's gratifying that NCIS could work with our law enforcement partners to identify and arrest the person responsible for these thefts , and thereby help preserve the illustrious history of the United States Navy,” said NCIS Special Agent in Charge Darrell Gilliard.

James Springs, NARA's Acting Inspector General, stated, “Thefts from our nation’s historical record are an affront to all citizens, regardless of where those records are housed.  I appreciate the hard work of the U.S. Attorney’s Office, NCIS, and NARA OIG to insure that this behavior will not be tolerated.”

According to his plea agreement, on April 12, 2014, Morison allegedly offered to sell records relating to Rear Admiral (RADM) Morison’s work during World War II to the owner of a bookstore, who subsequently agreed to take possession of the records, place them on consignment through his shop, and sell them using eBay.  On May 12, 2014, special agents with the National Archives and Records Administration Office of Inspector General reviewed the historical records being offered for sale through eBay.  The special agents, assisted by the former curator of the Navy Archives determined that the records belonged to the Naval History and Heritage Command's Navy Archive, and were the property of the U.S. government.

On May 21, 2014, a search warrant was executed at Morison’s residence and approximately 34 boxes of government records and property stolen from the Navy Archives were seized. The investigation revealed that Morison was a part-time researcher at the Naval Historical Foundation from March 19, 2010, and had access to the records, known as the “Office Files of RADM Morison Papers.”  Morison was never given authority to remove the records from the Navy Archives.

Morison faces a maximum sentence of 10 years in prison for theft of government property. As part of his plea agreement, the government will ask the court to require that Morison be prohibited from visiting libraries and archives without prior approval from his probation officer.

United States Attorney Rod J. Rosenstein praised NCIS and the NARA Office of Inspector General for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney James G. Warwick, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Jeffrey Gregory, age 48, of Sparks, Maryland, today to 20 years in prison, followed by three years of supervised release, in connection with a scheme in which another individual engaged in “straw purchases” to obtain guns for Gregory, a previously convicted felon who was prohibited from possessing firearms.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to the facts presented at Gregory’s plea hearing, on three occasions from January 2008 through March 2009, Gregory went with his co-conspirator to have the co-conspirator engage in a “straw purchase” of a firearm on Gregory’s behalf.  Gregory was unable to purchase firearms himself because he had a prohibiting criminal conviction.  During each visit to the gun stores, the co-conspirator filled out federal and state paperwork, which federal firearms licensed dealers (FFLs) are required by federal law to prepare and maintain as part of each firearm sale.  

One of those forms, ATF Form 4473, notifies the buyer that purchasing a firearm on behalf of another person – a straw purchase - is unlawful.  In each form, the buyer is asked “[a]re you the actual transferee/buyer of the firearm ....?”  The question is followed by a warning in bold print that states: “Warning: You are not the actual buyer if you are acquiring the firearm(s) on behalf of another person.”  Finally, the buyer’s certification explicitly states that falsely answering “yes” to the actual buyer question is a crime punishable as a felony.

On each occasion that Gregory and the co-conspirator went to gun stores, Gregory provided the co-conspirator with money, told the co-conspirator what firearm she should obtain, and instructed the co-conspirator to represent herself as the true buyer, which the co-conspirator did.  For example, Gregory admitted that on July 8, 2008, the co-conspirator made false statements on a Form 4473 in order to purchase a Ruger .45 caliber firearm for Jeffrey Gregory from an FFL in Baltimore County, Maryland.  On July 17, 2008, the co-conspirator picked up the firearm from the dealer and gave the gun to Gregory.

On January 4, 2008, the co-conspirator made false statements on a Form 4473 in order to acquire a Springfield .40 caliber firearm, for Jeffrey Gregory.  On January 11, 2008, the co-conspirator picked up the firearm and gave it to Gregory.  According to court documents, that .40 caliber gun was used to commit a murder in Baltimore County.

Gregory was previously sentenced to 93 months in federal prison for unrelated charges: possession of a firearm by a convicted felon; and possession of a firearm in furtherance of drug trafficking.  In that case, Gregory brandished a handgun during a fight at a York Road restaurant.  The resulting investigation recovered the gun used during the fight, as well as another gun and drugs from Gregory’s home.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Michael C. Hanlon and Special Assistant U.S. Attorney Piper F. McKeithen, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.

Baltimore, Maryland – Zarakh Yelizarov, age 52, of Pikesville, Maryland, pleaded guilty today to a conspiracy to distribute over $6.6 million in contraband cigarettes.  Yelizarov’s role in the scheme was to help launder the proceeds of the conspiracy.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.   

According to his plea agreement, Yelizarov’s cousin, Elmar Rakhamimov, conspired with other family members and associates to receive, possess, sell and distribute contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. Rakhamimov, who was the leader and organizer of the scheme, purchased contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area.

According to his plea agreement, Yelizarov joined the conspiracy in October 2012. Prior to that time, the first nine contraband cigarette transactions were for cash, and the number of cigarettes and amount of cash increased. Yelizarov and Rakhamimov laundered the proceeds of the contraband cigarette sales through an international money laundering operation that wired funds from banks located in Latvia, Cyprus, Estonia, and New York, to a bank in Maryland, disguising the money as legitimate business payments for medical equipment or supplies.  During the course of the scheme, Yelizarov used his mobile phone to call his contacts and to discuss the amount and the timing of the wire transfers into the Maryland account.  Many of these calls were captured on a court ordered wiretap.

From December 27, 2012 through September 5, 2013, Yelizarov and Rakhamimov wired a total of $649,500 through 12 transactions.  Yelizarov and Rakhamimov received a fee of approximately 8% for the money laundering transactions, totaling $56,000.

Rakhamimov used his residence and his restaurant, Europe, to conduct the illegal transactions of contraband cigarettes and the money laundering.

Yelizarov faces a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes.  U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for July 14, 2015, at 1:00 p.m.

Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland; his brother, Salim Yusufov, age 43, of Reisterstown, Maryland; Adam Azerman, age 59, of Pikesville; and Shamil Novakhov, age 58, and Ruslan Ykiew, age 39, both of Brooklyn, New York, previously pleaded guilty to their roles in the scheme and are awaiting sentencing.

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Michael Crew, age 54, of Owings Mills, Maryland, today to nine years in prison followed by three years of supervised release, after Crew pleaded guilty to bank fraud conspiracy and aggravated identity theft, arising from his use of stolen credit and debit cards to manufacture counterfeit credit cards used to buy merchandise and services. Judge Quarles also entered an order that Crew pay restitution of $126,318.99, the amount of the actual loss to victims.

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

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

Generally the gift cards used to manufacture the counterfeit credit cards were shoplifted from stores.  For example, on June 13, 2012, Crew was arrested when he attempted to shoplift gift cards at the Shoppers Food Warehouse in Howard County. Crew received a citation and was released.

Crew generally did not use the counterfeit credit cards himself, but either sold them or had others use them.  Sometimes he told them what to purchase, such as gift cards, electronics and luxury linens which he resold.

On March 12, 2013, a search warrant was executed at Crew’s residence.  Dozens of counterfeit gift cards were recovered bearing stolen credit card numbers and, in some cases, the names of co-defendants; numerous receipts from items purchased with counterfeit cards, 122 blank plastic cards, computers, cell phones, notes with credit card account information, and a notebook containing credit card numbers.

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

To date, five other defendants have pleaded guilty to their participation in the scheme and await sentencing.

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

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

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

Greenbelt, Maryland – Ajibola Erogbogbo, age 19, of Laurel, Maryland, pleaded guilty today to robbery.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; Chief Richard McLaughlin of the Laurel Police Department; Anne Arundel County State’s Attorney Wes Adams; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

According to his plea agreement, Erogbogbo was a security guard at Six Flags amusement park in Largo, Maryland, and a student at Anne Arundel Community College.

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

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

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

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

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

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

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

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

Erogbogbo faces a maximum sentence of 20 years in prison and $250,000 fine.  U.S. District Judge Theodore D. Chuang scheduled sentencing for June 19, 2015 at 2:00 p.m.

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Phong Dinh Tran, a/k/a Randy Tran, age 40, of Gaithersburg, Maryland, today to 51 months in prison followed by three years of supervised release for conspiring to commit bank fraud arising from a scheme to use a straw purchaser to buy a liquor store.  Judge Quarles also ordered Tran to pay restitution of $950,000.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division.

According to his plea agreement, Tran created R&K Real Estate Investment, Inc. to buy Potomac Wine & Spirits, a liquor store in Hagerstown, Maryland.  Tran was the majority and controlling owner of R& K, and another individual owned a minority interest.  In May 2006, Tran and the minority shareholder signed agreements to buy the liquor store for $899,000 and the real estate that the store occupied for $400,000.

Tran sought Joon Park, a principal of Jade Capital & Investments, to broker a loan for the store’s purchase.  Tran and Park discussed obtaining a loan at PNC Bank that was guaranteed by the U.S. Small Business Administration (SBA).  Because Tran had significant debt from the purchase of residential properties, Park advised that Tran would not likely be approved for an SBA guaranteed loan.

Tran disclosed to Park that he could use a straw buyer for the loan.  Tran and Park agreed that they would falsely represent to PNC that the straw buyer would own and operate the liquor store.  Tran asked the straw buyer to apply for the loan and promised that he, Tran, would pay all the bills for the store and make the loan payments.  At the settlement for the sale of the liquor store on September 29, 2006, the straw purchaser falsely represented to PNC that he was the president of R&K.  The funds needed to close the transaction were provided by Tran, not the straw purchaser. PNC funded a loan of $950,000.

After the closing, Tran ran the liquor store.  On January 22, 2007 Tran sold a 50% stake in the store to another individual for $380,000.  During the sale, Tran represented to the individual that he owned 100% of the store.  In 2007, Tran stopped making loan payments to PNC and the loan went into default.

In a separate case, Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 44, of Falls Church, Virginia, previously pleaded guilty to his role in a bank fraud conspiracy arising from a scheme to fraudulently obtain numerous business loans guaranteed by the SBA, with resulting losses of over $100 million.  Park submitted false SBA loan applications on behalf of his clients from 2003 to 2011.  Judge Quarles sentenced Park on June 20, 2013 to 15 years in prison and ordered Park to pay a money judgment of $91,449,700.

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 SBA-OIG, FBI and U.S. Postal Inspection Service for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise and Sean Delaney, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Maxime Maiga, age 37, of Montgomery Village, Maryland, today to two years and a day followed by two years of supervised release for wire fraud and aggravated identity theft.  Judge Grimm also entered an order that Maiga forfeit $11,000 and pay $400,000 in restitution.

The sentence was 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 his plea, Maiga worked as a communication center associate at a Washington, D.C. credit union that provides financial services to individuals and their families associated with the World Bank Group and the International Monetary Fund, and offers consumer banking services.

On January 8, 2013, Maiga fraudulently accessed and viewed identification documents and financial information of two account members of the credit union who were foreign nationals.  A few days later, Maiga again fraudulently accessed the victim members’ identification documents and printed one of the victim’s passport and membership eligibility form. On January 22, 2013, Maiga sent the identity documents to a co-conspirator, who faxed a letter to the credit union, bearing a forged signature of the victim and an altered copy of the victim’s diplomatic passport.  The letter requested the password for the victims’ credit union online banking account.  Maiga and his co-conspirators used the password for online access to change the victims’ email address and phone number.

On February 12, 2013, Maiga fraudulently asked another credit union employee to access and print one of the victim’s tax withholding forms and the victims’ signature cards. The requested documentation was provided to Maiga.  The next day, he and his co-conspirators fraudulently requested monthly automatic recurrent wire transfers of $200,000 each from the victims’ credit union account to a co-conspirator’s account.  On February 14, 2013, a conspirator used the documentation Maiga had fraudulently obtained to pose as one of the victims and obtain $200,000 from the victims’ account.  An additional $200,000 was transferred on March 1, 2013 as a result of the fraudulent request for automatic recurrent transfers.

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

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

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

Baltimore, Maryland – Mucahid Calisir, age 29, a Turkish citizen who had been residing in Millsboro, Delaware; and Darya Tarasova, age 26, a Russian citizen who had been residing in Cambridge, Maryland, pleaded guilty to marriage fraud and passport fraud; and co-defendant Evgeniya Yarina, age 27, a Russian citizen currently residing in New York, pleaded guilty to conspiracy to commit marriage fraud on Friday, March 6, 2015, in connection with a scheme to obtain beneficial immigration status leading to U.S. citizenship. U.S. District Judge James K. Bredar sentenced Calisir to two months in prison followed by three years of supervised release.

Co-defendant Aleksandr Mavrin, age 27, a Russian citizen who had been residing in Frankford, Delaware, previously pleaded guilty to conspiracy to commit marriage fraud and was sentenced on March 2, 2015 to time served followed by one year of supervised release.

Calisir, Mavrin and Tarasova consented to deportation and will be removed from the United States. As a result of her conviction, Yarina may be subject to deportation.

The guilty pleas and sentences were 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); Field Office Director Dorothy Herrera-Niles of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO); Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS), Baltimore District Office.

 According to their plea agreements, Calisir entered the United States in 2008, Yarina and Mavrin entered the United States in 2009, and Tarasova entered the United States in 2010.  Calisir Tarasova, Yarina, and Mavrin conspired to enter into marriages with U.S. citizens solely for the purpose of obtaining immigration status to which they would not otherwise be entitled.  Calisir and his co-defendants assisted each other in locating and identifying United States citizens with whom they could enter into these fraudulent marriages, generally in exchange for some economic benefit to the United States citizen.

For example, on December 30, 2010, Calisir entered into a fraudulent marriage with S.O., a United States citizen.  On April 11, 2011, co-defendant Tarasova married E.C., a United States citizen and co-defendant Mavrin married K.M., a United States citizen, on September 26, 2012, after being introduced to K.M. by Calisir. Yarina married H.P., a United States citizen on November 30, 2012. Following each of their marriages, the defendants submitted forms and applications to DHS, Immigration and Customs Enforcement, in which each fraudulently represented that their marriage to the U.S. citizen was a legitimate marriage when it was actually entered into so that the defendants each could receive beneficial immigration status.

In June 2013, Tarasova gave birth to a baby girl.  In October 2013 Tarasova submitted an application for a United States passport for the baby, which contained a false statement that E.C. was the father of the child, when in reality Calisir was the father of the baby.  Calisir assisted Tarasova in the submission of documents in support of the baby’s U.S. passport application.  

Judge Bredar scheduled sentencing for Tarasova on June 1, 2015 at 10:30 a.m., and for Yarina on May 27, 2015 at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended ICE ERO, HSI-Baltimore, the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service and U.S. Citizenship and Immigration Services for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.

Greenbelt, Maryland – Jessica Lee Warner, age 39, of Baltimore, pleaded guilty today to wire fraud and aggravated identity theft.

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

According to her plea, Warner was the bookkeeper for a company located in Montgomery County, responsible for electronically submitting employee payroll information to a payroll processing service.  From 2007 to December 2012, Warner fraudulently used her position as a bookkeeper to increase her salary, and write checks from her employer’s bank accounts to herself and others, forging the signature of an individual who had signatory authority on the company’s checking accounts. Warner deposited the forged checks into her own bank account.

Warner has agreed to pay restitution of at least $179,647.16, the amount she stole from her employer.

Warner faces a maximum sentence of 20 years in prison and a $250,000 fine for wire fraud, and a mandatory minimum of two years in prison consecutive to any other sentence for aggravated identity theft.  U.S. District Judge Paul W. Grimm scheduled her sentencing for August 31, 2015, at 9:30 a.m.

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

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

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and Leah Jo Bressack, who are prosecuting the case.

Baltimore, Maryland – Marc Joseph Punzalan, age 20, of Rockville, Maryland, pleaded guilty today to production of child pornography in connection with a scheme in which he met young girls through social media and internet chat rooms and convinced them to send him sexually explicit photographs of themselves. When the girls told him they no longer wanted to send the increasingly graphic images he requested, Punzalan threatened to post the images online and/or tell the girls’ friends and families.

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

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

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

Punzalan and the government have agreed that if the Court accepts the plea agreement Punzalan will be sentenced to 15 years in prison followed by up to lifetime supervised release.  U.S. District Judge J. Frederick Motz has scheduled sentencing for July 1, 2015 at 9:30 a.m.

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

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

Baltimore, Maryland - Kamran Ashfaq Malik, age 35, of Upper Marlboro, Maryland pleaded guilty today to unlawfully exporting semi-automatic rifles, parts and accessories to Pakistan.  Co-defendant Waleed Aftab, age 22, also of Upper Marlboro, pleaded guilty to the same charge on December 19, 2014.

The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).    

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

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

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

According to Aftab’s statement of facts, on December 1, 2012, just prior to boarding a flight at JFK International Airport in New York destined for Pakistan, Aftab was found to be in possession of a receipt reflecting the sale of six AR- 15 style semi-automatic rifle magazines that Malik purchased the previous September.

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

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

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

Malik and Aftab each face a maximum penalty of 10 years in prison for the unlawful smuggling of goods from the United States.  U.S. District Judge J. Frederick Motz has scheduled sentencing for Malik on June 26, 2015, at 9:30 a.m., and for Aftab on March 20, 2015, at 10:00 a.m.

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

Baltimore, Maryland – U.S District Judge J. Frederick Motz sentenced David Paschall, age 56, of Catonsville, Maryland, today to 90 month in prison followed by three years of supervised release for conspiring to distribute oxycodone and conspiring to commit bank burglary.  Judge Motz also entered an order that Paschall forfeit $500,000, his ownership interest in Paschall’s Auto Body Shop and his residence, three firearms and his vehicle.

Judge Motz sentenced David Paschall’s son, Chad Paschall, age 30, of Baltimore, on February 27, 2015 to 37 months in prison for the drug and burglar conspiracies, and entered an order that Chad Paschall forfeit $250,000.

The sentences 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; Howard County Police Chief Gary Gardner; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Tim Altomare; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Elton Malone, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department.

       “The sentence today of David Paschall and his son Chad should send a strong message to other individuals engaged in the illicit distribution of drugs, including prescription drugs,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office.  “Prescription drug trafficking in the Baltimore area is a growing problem and has led to heroin addiction in the area.  DEA, along with our federal, state and local partners, intends to aggressively combat this problem. We conducted a very complex investigation and due to the diligent work of all involved, the leaders of this drug trafficking organization will now spend time in a federal prison far from home.”

David Paschall operated Paschall’s Auto Body Shop, formerly located at 801 Desoto Road in Baltimore.  According to their plea agreements, it was widely known that the car shop served as a marketplace for an assortment of illegal narcotics, including oxycodone, cocaine and heroin.  David Paschall used more than five drug “brokers” to buy drugs almost every day at his shop which he would then either consume or sell for profit.  As a leader in the drug conspiracy, he supervised others in the distribution of the drugs.  In order to protect the drug conspiracy, David Paschall maintained many guns at the shop and sometimes carried a gun.  David Paschall admitted that he agreed to distribute oxycodone, cocaine and heroin from no later than 2010 to July 2013.

Chad Paschall was at the shop most every day, knew that the shop operated as a hub for drug sales and helped his father in brokering drug sales.

The defendants also admitted to committing commercial burglaries in Maryland, Virginia, West Virginia, and Pennsylvania.  The defendants conspired to steal cash, money orders, stamps, silver bars, jewelry, cigarettes, lottery tickets, prescription drugs, food, beverages, safes, laptop computers, cell phones, electronics, vehicles and other valuable items from gas stations, convenience stores, banks, credit unions and other commercial establishments.  The conspirators often stole or attempted to steal cash from ATMs. 

The conspirators usually cut power lines, telephone lines, cables and other wires before entering a business.  They used vise grips, sledgehammers, chopsaws, grinders and blow torches to enter the business, and then often waited – for several minutes or sometimes up to several hours – before ransacking the business of its valuable items. David Paschall admitted that he committed, or attempted to commit, dozens of commercial burglaries with one or more coconspirators.  For example, David and Chad Paschall used a forklift at a salvage or junk yard located on Hawkins Point Road in Baltimore to pile several junk cars next to a rear upstairs balcony. They climbed up the cars and broke into the office off the balcony.  They used the forklift to transport a safe from the office to the ground, where it was broken open and approximately $48,000 was stolen.

To date, 16 defendants charged in the drug and burglary conspiracies have pleaded guilty to their participation in the criminal activities. Fourteen of these defendants have been sentenced, with David Paschall receiving the longest sentence thus far.

United States Attorney Rod J. Rosenstein commended the DEA, Howard County Police Department, Baltimore County Police Department; Anne Arundel County Department, ATF, Department of Health and Human Services - Office of Inspector General; Coast Guard Investigative Service and Baltimore Police Department for their work in the investigation.  Mr. Rosenstein also praised the many local and state agencies in Virginia, West Virginia and Pennsylvania for their assistance in the investigation.

Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Andrea L. Smith, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Shannon Banks, age 42, of Cambridge, Maryland today to seven years in prison followed by three years of supervised release for being a felon in possession of three firearms and ammunition; and for possession with the intent to distribute cocaine.  Judge Hollander also ordered Banks to forfeit three guns and $389,189 in cash seized from his home and storage unit, nine televisions, jewelry, a Lincoln passenger car, an International “party bus,” $5,280 from a bank account, and his residence on Moose Lodge Road as constituting or being derived from the proceeds of his drug trafficking.

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; 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); Dorchester County Sheriff James W. Phillips, Jr.; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Dorchester County State’s Attorney William Jones.                 

According to his plea agreement, on April 11, 2014, law enforcement executed a search warrant at Banks’ home in the 5400 block of Moose Lodge Road in Cambridge.  During the search, agents seized: 233.7 grams of cocaine; $216,169 in cash; a loaded .45 caliber semi-automatic handgun with an obliterated serial number; a 12 gauge shotgun; and a hydraulic kilogram press.  On April 15, 2014, agents searched a storage unit belonging to Banks and recovered $173,020, a loaded .22 caliber handgun, and another hydraulic kilogram press.  Banks admitted that the cash recovered from his home and storage unit was the proceeds of drug trafficking.

United States Attorney Rod J. Rosenstein praised the DEA, FBI, HSI-Baltimore, Dorchester County Narcotics Task Force, Dorchester County State’s Attorney’s Office, the Maryland State Police, Somerset County Narcotics Task Force, the Worcester County Criminal Enforcement Team, and the Wicomico County Narcotics Task Force for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorneys Seema Mittal and Evan T. Shea, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Enzo Blanks, a/k/a “Zo,” age 29, of Baltimore, to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.  Judge Hollander also ordered Blanks to forfeit a vehicle and jewelry.

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, Blanks was intercepted in text messages, telephone calls and other recordings arranging heroin transactions. Through the investigation, law enforcement determined that, on average, individuals traveled from as far away as western Maryland to meet with Blanks every three days to purchase approximately 500 heroin pills at a time. On September 10, 2013, Baltimore Police officers performed a car stop of a vehicle being driven by Blanks.  Blanks was found to be in possession of 444 heroin gel caps.  During the arrest, Blanks consented to the search of his girlfriend’s apartment on West Madison Street, where the officers discovered more heroin, cutting agents, sifters, scales and a capping machine.  As a leader in the conspiracy, Blanks was responsible for the distribution of between one and three kilograms of heroin over the course of the conspiracy.

A total of 12 defendants, including Blanks, have been convicted for the heroin distribution 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.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Rebecca Lynn Biglow, age 42, of Gaithersburg, Maryland today to 44 months in prison followed by four years and 10 months of supervised release for mail fraud and aggravated identity theft in connection with a fraud scheme to obtain unemployment insurance benefits, and for violating terms of her supervised release imposed after she had served time in prison for a previous federal conviction for bank fraud.  Judge Chasanow also entered an order that Biglow pay forfeiture and restitution of $71,022, the total amount paid by DLLR on the four fraudulent claims.

The sentence 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; and Gordon Cooley, Commissioner of the Maryland Department of Labor, Licensing and Regulation’s (DLLR) Division of Financial Regulation.

"Rebecca Biglow filed fraudulent unemployment insurance claims while she was already under court supervision for a previous crime," said U.S. Attorney Rod J. Rosenstein.

According to her plea agreement, on September 9, 2009, Biglow submitted an unemployment insurance benefits claim to DLLR, claiming that she had worked from April 2008 to September 2009 for a home cleaning service company, earning wages totaling $23,390.  In fact, Biglow was incarcerated from October 2007 to August 2009, and had not worked for the company.  From September 2009 to January 2011, DLLR paid Biglow a total of $17,272 on this claim.

On May 20, 2011, Biglow submitted another claim for unemployment insurance benefits, stating that she had worked for an individual at a business where she earned wages totaling $36,042.18.  In fact, Biglow never worked for this individual.  From May 2011 to December 2012, DLLR paid Biglow a total of $29,670 on this second claim.

On May 31, 2013, Biglow submitted a third unemployment benefits claim using the name, social security number and date of birth of another individual.  Biglow falsely claimed that this individual had worked from June 2012 to May 2013 for a child care center, earning $54,370 in wages. From June to December 2013, DLLR paid a total of $13,330 on this claim.

Finally, on October 25, 2013, Biglow submitted a fourth unemployment benefits claim falsely stating that she had worked at a candle business, earning $36,798 in wages from February to October 2013.  From October 2013 to May 2014, DLLR paid Biglow $10,750 on this claim.     

Biglow was on supervised release during the time she submitted these false claims, after having served time in prison for a previous bank fraud scheme.

United States Attorney Rod J. Rosenstein praised the Department of Labor – OIG and DLLR for their work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Michael D. Hayden, age 43, of Tilghman Island, Maryland, today to 18 months in prison, followed by six months of home detention as part of three years of supervised release, for conspiring to violate the Lacey Act and defraud the United States through the illegal harvesting and sale of 185,925 pounds of striped bass. At today’s hearing Judge Bennett found that Hayden obstructed justice during the investigation, which increased his sentence.  Judge Bennett ordered that Hayden pay $498,293.47 in restitution to the State of Maryland for the damage caused to the striped bass, as well as a $40,000 fine.  

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division John C. Cruden; Secretary-designee Mark Belton of the Maryland Department of Natural Resources (DNR); and Honora Gordon, Regional Special Agent in Charge for the U.S. Fish and Wildlife Service.

“Mr. Hayden is being held justly accountable for his role at the head of a conspiracy to plunder protected striped bass from the Chesapeake Bay,” said Assistant Attorney General Cruden. “The Justice Department, working closely with our state partners, will continue to protect these shared resources for the law abiding watermen of the Bay with vigorous prosecution of those who do not follow the law.”

“I commend the men and women of the Natural Resources Police who, with our federal partners, are committed to upholding the laws that protect Maryland's fish and wildlife,” said Mark Belton, Secretary-designate of the Maryland Department of Natural Resources.  “And I thank the citizens who came forward with tips to aid this extensive investigation.”

According to his plea agreement and court documents, Hayden was a “captain” on fishing vessels owned by him and his company, d/b/a, Michael D. Hayden, Jr., and Michael D. Hayden, Jr., Inc.  Hayden and co-defendant William J. Lednum also employed numerous “helpers” as part of this operation, including co-defendants Kent Sadler and Lawrence Daniel Murphy.

From at least 2007 to 2011, Hayden and his co-conspirators illegally harvested at least 185,925 pounds of striped bass from the Chesapeake Bay in violation of Maryland regulations relating to harvest method, amounts, tagging and reporting.  To conceal their crimes, Hayden and his co-conspirators falsified paperwork submitted to the State of Maryland relating to their harvests.  The state in turn submits such paperwork to federal and interstate agencies responsible for setting harvest levels all along the eastern seaboard.  Hayden and his co-conspirators shipped and sold the illegally harvested striped bass to wholesalers in Maryland, New York, Pennsylvania and Delaware who paid them a total of $498,293.47.

The investigation in this case started in February 2011 when the Maryland Department of Natural Resources found tens of thousands of pounds of striped bass snagged in illegal, anchored nets before the season officially reopened.  The conspirators were seen on the water in the vicinity of the illegal nets. The subsequent investigation unveiled a wider criminal enterprise for which Hayden was sentenced today.

Co-defendants William J. Lednum, age 41, of Tilghman Island, Lawrence “Daniel” Murphy, age 37, of St. Michaels, Maryland, and Kent Conley Sadler, age 31, of Tilghman Island, previously pleaded guilty to their participation in the conspiracy. Lednum was sentenced to a year and a day in prison and ordered to pay a $40,000 fine and restitution of $489,293.47; Murphy was sentenced to three years’ probation and ordered to pay a $10,000 fine and $30,000 in restitution; and Sadler was sentenced to 30 days in prison to be served on the weekends from January 30, 2015 to May 17, 2015.  Sadler was also ordered to pay a $5,000 fine and $20,000 in restitution.

United States Attorney Rod J. Rosenstein praised the Maryland Department of Natural Resources and U.S. Fish and Wildlife Service for their work in the investigation.  Mr. Rosenstein thanked Todd W. Gleason and Shennie Patel of the Department of Justice’s Environmental Crimes Section, and Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced former correctional officer Derrick Jones, age 41, of Aberdeen, Maryland, today to 20 months in prison, followed by 18 months of supervised release, for racketeering conspiracy arising from their participation in the smuggling of drugs and contraband for members of the Black Guerilla Family (BGF) gang inside the Baltimore City Detention Center (BCDC). Judge Hollander also sentenced Linnard Wortham, a/k/a “Stu,” age 29, of Pikesville, Maryland, to 10 years in prison, followed by five years of supervised release, for the racketeering conspiracy and for possession with intent to distribute crack cocaine.  Judge Hollander is expected to sentence the defendants in this case who pleaded guilty and did not testify at trial.

Also today, U.S. District Judge J. Frederick Motz sentenced former correctional officer Katera Stevenson, a/k/a KK, age 24, of Baltimore, to two years in prison, followed by three years of supervised release, for her role in the racketeering conspiracy.  Last week, Judge Motz sentenced former correctional officers Danielle Forrest, age 28, to 21 months in prison; and Jasmin Jones, a/k/a/ J.J., age 24, and Tanierdra Finch age 26, both of Baltimore, each to a year and a day in prison.  Judge Motz also sentenced former CO Vivian Matthews to six months of home detention and outside supplier Teshawn Pinder to time served, each followed by three years of supervised release.  Judge Motz is sentencing the defendants in this case who pleaded guilty and testified at trial, as well as the defendants convicted at the trial.

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 Mosby.

“I have a strong relationship with the U.S. Attorney’s Office and look forward to working with them and the FBI  to continue weeding out corruption,” said Stephen T. Moyer, Secretary of the MD Department of Public Safety and Correctional Services.

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 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.

Former correctional officers Katera Stevenson, Derrick Jones, Danielle Forrest, Jasmin Jones, Tanierdra Finch, and Vivian Matthews 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. Derrick Jones also admitted to smuggling cell phones to BGF members.  Vivian Matthews supplied prescription pills to associates of Tavon White, including Tyesha Mayo, to be smuggled into BCDC.  The defendants knew that by smuggling such contraband into BCDC, they furthered the racketeering enterprise of BGF.

Stevenson, Forrest, Finch and Jasmin Jones also entered into personal and sexual relationships with inmates who were BGF gang members.  For example, Stevenson had a sexual relationship with BGF leader Tavon White, by whom she had a child. Stevenson had “Tavon” tattooed on her wrist. Jasmin Jones and Finch had sexual relations with BGF member Jamar Anderson, for whom they also smuggled contraband. On behalf of BGF leaders White and Jamar Anderson, Jasmin Jones also opened cells to allow gang members to mingle on the tier, and she warned of impending searches by prison officers. Danielle Forrest admitted that she had sexual relations with inmates who were BGF leaders. At the direction of one of those inmates Forrest met outside suppliers to obtain contraband, which she smuggled into BCDC.  Forrest also managed payments for drugs using her Green Dot account on behalf of those inmates.

Wortham admitted that he supplied contraband, including marijuana, that was smuggled into BCDC.  Wortham gave the contraband to COs who then smuggled the contraband to BCDC inmates, including Derius Duncan and Jamar Anderson.  Law enforcement executed a search warrant at Wortham’s residence on November 20, 2013 and seized crack cocaine, marijuana, drug paraphernalia and $4,000.

Teshawn Pinder picked up contraband from sources outstide BCDC on behalf of Jamar Anderson and held the items until COs recruited by Anderson could pick them up and smuggle them into BCDC.  Pinder also facilitated payment for the drugs, purchasing “Money Paks” for Anderson and transmitting the numbers to him or loading them herself onto Green Dot cards.

Tavon White, a/k/a Bulldog and Tay, age 37, of Baltimore was sentenced to 12 years in prison; Jamar Anderson, age 24, of Baltimore, was sentenced to 121 months in prison; Jermaine McFadden, age 26, of Baltimore, was sentenced to 140 months in prison; and Derius Duncan, age 28, of Baltimore, was sentenced to five years in prison, for their participation in the racketeering conspiracy.  Outside supplier Tyesha Mayo pleaded guilty and 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 - U.S. District Judge Richard D. Bennett sentenced Shawna Michelle Gunter, age 37, of Annapolis, Maryland, late yesterday to three years in prison followed by three years of supervised release, which includes six months of home detention with electronic monitoring, for wire fraud and aggravated identity theft in connection with a scheme to pose as a physician’s assistant to obtain employment, diagnose and treat 137 infants and children, and write over 400 prescriptions, all without a medical license.  Judge Bennett also entered an order that Gunter pay restitution of $53,530.39.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Lt. Colonel Anthony C. Satchell, Acting Superintendent of the Maryland State Police; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Secretary-designee Mark Belton of the Maryland Department of Natural Resources.

“Shawna Michelle Gunter fraudulently posed as a licensed physician’s assistant, treating patients and writing prescriptions, although she had no medical training,” said U.S. Attorney Rod J. Rosenstein.         

According to her plea agreement, in June 2013, Gunter worked as a surgical assistant in a doctor’s office in Maryland.  She told the doctor that she needed a $7,800 loan for emergency repairs to her septic system, when in fact she was remodeling her boyfriend’s house.  Despite receiving this money, on June 21, 2013, Gunter stole a check from the doctor and forged the doctor’s signature on the check for $14,400.  When confronted, she admitted the theft and was fired.  These funds, totaling $22,200, have not been repaid.

Gunter searched for another job and learned that a prior acquaintance, a pediatrician who had offices in Centreville and Chestertown, Maryland, was looking for a physician’s assistant.    Gunter falsely told the doctor that she had just graduated from Howard University with a degree as a physician’s assistant.  Gunter faxed a false resume to the doctor.  The doctor hired Gunter with the understanding that she would provide documentation of her education, Maryland physician assistant’s license and DEA certification reflecting her authority to issue prescriptions.

Gunter began work for the pediatrician as a physician’s assistant on July 5, 2013.  She was immediately asked for the documentation.  Knowing that she was not licensed as a physician’s assistant in Maryland, Gunter provided a forged physician’s assistant certificate bearing the license number of an actual physician’s assistant, as well as an altered copy of that individual’s DEA controlled substance registration certificate.  She also provided a fabricated diploma, purportedly from Howard University.  

Gunter began seeing pediatric patients without direct supervision on August 18, 2013.  From August 19 to 29, Gunter diagnosed and treated 137 infants and children, including for sick visits, ADHD follow-ups, newborn visits and routine physicals. During this time, Gunter issued over 400 prescriptions for controlled substances.

Gunter’s provision of unlicensed and unqualified medical care resulted in the pediatrician’s practice unwittingly submitting hundreds of false claims for Medicaid coverage, and the payment of $19,668.19 in fees on those false claims.

United States Attorney Rod J. Rosenstein praised the Maryland State Police, HSI Baltimore, Department of Health and Human Services OIG and Maryland Natural Resources Police for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Tamera L. Fine and Zachary A. Myers, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Nicholas Haxall Johnson, age 24, of Towson, Maryland, today to 42 months in prison followed by 20 years of supervised release for possessing child pornography. Judge Quarles ordered that upon his release from prison, Johnson 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; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, in September 2013, a Baltimore County Police detective who was using a computer observed that Johnson had files containing child pornography available for download on the internet.  The investigator downloaded approximately 150 image files, many of which contained child pornography.

On October 4, 2013, law enforcement officers executed a search warrant at Johnson’s residence.  They seized Johnson’s laptop and external hard drive which contained more than 250,000 images, the majority of which depicted minors engaged in sexually explicit conduct.  Hundreds of prescription pills, including Adderall and Ritalin pills, were recovered from a safe, along with a glass pipe, plastic baggies, drugs and three grinders.

Further investigation of Johnson’s computer revealed that he created an online persona of a 15-year old male which he used to communicate with 13 and 14-year old girls.  Johnson discussed sexual topics with the young girls and encouraged them to send him nude photos of themselves.

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.  Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

Baltimore, Maryland - Department of Defense contractor Tangible Software, Inc., owned and operated by Energy Management and Security Solutions, LLC since 2011, has agreed to pay the United States between $500,000 and $1.05 million to resolve allegations under the False Claims Act that the company submitted false claims to the Department of Defense under prior ownership from 2008 to 2011.

The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) - Mid-Atlantic Field Office;  Acting Inspector General Jim Gribble of the Defense Information Systems Agency (DISA); and General Services Administration (GSA) Deputy Inspector General Robert C. Erickson.

This settlement resolves allegations that Tangible Software submitted claims for reimbursement of costs associated with contracts with the GSA and Defense Information Systems Agency involving information technology support and services, knowing that the requested reimbursements of costs exceeded what Tangible Software actually paid for the services. There has been no judicial finding of liability and Tangible Software denies liability.

“Defense contractors are required to bill for costs actually incurred, and to be truthful in the claims they submit to federal agencies," said United States Attorney for the District of Maryland Rod J. Rosenstein.

“This Tangible Software case is a prime example of how DISA IG works to detect and prevent fraud schemes within the Agency and recuperate funds for the U.S. government,” said DISA Acting Inspector General, Jim Gribble.

“GSA contracts need to be executed in the best interest of American taxpayers,” said GSA Deputy Inspector General Robert C. Erickson.

As part of the settlement, Tangible Software has agreed to make additional payments above a minimum settlement payment of $500,000, depending on the financial performance of the company over the next five years and the outcome of a shareholder lawsuit Tangible Software has initiated against its prior management that oversaw the period of misconduct.  The investigation was aided by the new ownership disclosing alleged misconduct by the prior ownership.

The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government's recovery.  The civil lawsuit was filed in the District of Maryland and is captioned United States ex rel. Michael Bradle v. Tangible Software, Inc.  As part of today’s resolution, Mr. Bradle will receive a minimum of $80,000 from the settlement.

The settlement was a result of an investigation by the U.S. Attorney's Office for the District of Maryland, DCIS, Defense Information Systems Agency - Inspector General's Office, and GSA - Inspector General's Office.  Mr. Rosenstein commended the Defense Contract Audit Agency for their assistance in the investigation.  The investigation was handled by Assistant U.S. Attorney Thomas Barnard.

Baltimore, Maryland - Stewart Mark Twayne Harris, age 38, of Silver Spring, Maryland, pleaded guilty today to bank fraud, money laundering and aggravated identity theft.

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

According to his plea, in April 2009, Harris applied for a $1,666,700 loan from a commercial lender for the purported purpose of using loan proceeds to purchase a commercial glass company.  The loan was to be guaranteed by the Small Business Administration (SBA).  To secure the business loan, Harris submitted a loan application and purported tax returns in which he falsely represented the social security number of another individual to be his own.  He also submitted false bank statements in which he used the stolen identity of a second victim, and an equity statement which falsely represented the amount of paid receipts and other cash injection into the business he was to purchase.

Based on this false documentation, the SBA and the lender approved the loan, with the SBA guaranteeing 89.99% of the loan amount.  On June 26, 2009, the lender disbursed $1,591,666 to Harris. From June to October, 2009, in order to conceal the loan proceeds, Harris deposited and withdrew the proceeds into different bank accounts he controlled.  On October 1, 2009, Harris withdrew part of the funds to make a deposit and down payment on the purchase of a home in Brandywine, Maryland.

Harris defaulted on the loan on January 5, 2011.  SBA paid the lender approximately $1,515,918.90 in satisfaction of its loan guarantee.

In April 2012, Harris filed a voluntary petition for bankruptcy.  In his petition to the bankruptcy court, Harris failed to declare the commercial lender as a creditor, and failed to disclose that he was an officer or director, and owner of five percent or more, of the glass company.

Harris has agreed to pay restitution of at least $1,666,700, and forfeit the residential property located in Brandywine, Maryland.

Harris faces a maximum sentence of 30 years in prison for bank fraud, 20 years in prison for money laundering and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft.  U.S. District Judge J. Frederick Motz scheduled his sentencing for June 12, 2015, at 10:00 a.m.

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

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

United States Attorney Rod J. Rosenstein commended the SBA- OIG and SSA – OIG for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom, who is prosecuting the case.

Baltimore, Maryland – Stanley Duryea Johnson, age 60, of Baltimore, pleaded guilty today to robbery and using a gun during the robbery.

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

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

Johnson and the government have agreed that Johnson is a career offender, and that if the Court accepts the plea agreement, Johnson will be sentenced to 20 years in prison. U.S. District Judge Marvin J. Garbis scheduled sentencing for June 3, 2015 at 9:30 a.m.

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

Greenbelt, Maryland - A federal grand jury has returned a superseding indictment against Sean Aude Gallman, age 38, of Upper Marlboro, Maryland, and his brother Eric Maurice Gallman, age 41, of Huntersville, North Carolina, late yesterday, adding conspiracy to commit wire fraud, mail fraud, aggravated identity theft and money laundering charges arising from a scheme in which they filed 30 fraudulent tax returns seeking refunds of over $204 million.

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

“The IRS allegedly sent $16 million to two criminals who filed bogus tax returns claiming ‘refunds’ that were not owed,” said U.S. Attorney Rod J. Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the United States Treasury.”

“As millions of U.S. taxpayers prepare to honestly file their returns, the Tax Division, working with its law enforcement partners, remains committed to prosecuting those individuals who seek to abuse and manipulate our nation’s tax system for personal gain,” said Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.

“The American tax system is designed to fund vital government services to people in this country,” said Special Agent in Charge Thomas J. Kelly.  “It is not a slush fund for thieves and fraudsters. Those who illegally target our nation’s tax dollars for personal financial gain could face criminal prosecution and lengthy prison sentences."         

The six count superseding indictment alleges that Sean and Eric Gallman established trusts and business entities, and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.

The indictment alleges that in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930.  Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds.  After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.

The indictment further alleges that from January 2013 to March 23, 2014, Sean Gallman filed an additional 19 fraudulent tax returns for 2012 or 2013, in the name of numerous purported trusts and business entities, seeking $200,924,949 in refunds.  On March 16, 2014, Eric Gallman filed a fraudulent tax return for 2013 in the name of a business entity, seeking a refund of $275,548.  And from February 2013 to March 2014, the defendants together filed eight fraudulent tax returns for 2012 or 2013 in the name of purported trusts and business entities, seeking $42,091,389 in refunds.

Altogether, the defendants are alleged to have filed a total of 30 fraudulent tax returns seeking refunds totaling $204,971,904, for which the IRS paid two refunds totaling $16,512,492.

The indictment seeks forfeiture of the two refunds paid by the IRS; $11,529,954 seized from numerous bank accounts; foreign currency, and gold and silver coins, seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland, North Carolina and South Carolina; and two Mercedes-Benz vehicles and a Hyundai vehicle.

The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail and wire fraud, conspiring to commit money laundering, and mail fraud.  Sean Gallman also faces a maximum sentence of 20 years in prison for an additional count for mail fraud and for money laundering; and a mandatory minimum of two years in prison consecutive to any other sentence imposed for 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.

United States Attorney Rod J. Rosenstein praised the Tax Division and IRS-Criminal Investigation for its work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Thomas P. Windom and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who are prosecuting the case.

Baltimore, Maryland – Maryland attorney Don F. Lindner, age 61, of Severna Park, Maryland, pleaded guilty today to filing a false tax return.

The plea agreement 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.

"As tax season approaches, this case should be a reminder to everyone about the consequences of tax fraud," said U.S. Attorney Rod J. Rosenstein.

“As an attorney, Mr. Lindner is well educated regarding his federal income tax obligations, making his actions even more egregious,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.  “Today’s plea should be a warning to others that IRS Criminal Investigation is focused on those that intentionally underreport taxable income.”

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

Lindner has agreed to pay restitution of $341,730 to the IRS for the tax years 2007 to 2011, which is the total amount of taxes he owed as a result of falsely reporting gross receipts and rental expenses.

Lindner faces a maximum sentence of three years in prison and a fine of $250,000. U.S. District Judge William D. Quarles Jr. scheduled sentencing for May 13, 2015, at 10:00 a.m.

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

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Travis Wetzel, age 36, of Frederick, Maryland today to 42 months in prison followed by three years of supervised release for wire fraud and money laundering in connection with a fraudulent scheme to take $1,282,224 from an elderly client’s annuity account. Judge Blake also entered an order that Wetzel forfeit and pay restitution of $1,282,224.

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.

Wetzel processed financial distribution documents for an investment advisory firm located in Rockville, Maryland.  In 2009, Wetzel was promoted to branch operations manager.  According to his plea agreement, from July 2010 to September 2012, Wetzel took advantage of his position of trust and embezzled a total of approximately $1,282,224 from an annuity account of an elderly client without the client’s knowledge, and used the money for his personal benefit. Wetzel knew that the client was elderly, whose age and physical condition facilitated repeatedly taking money from the client’s account.

Wetzel also laundered some of the money he took by transferring the money to other bank accounts he controlled.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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 FBI for its work in the investigation and thanked Assistant United States Attorneys David Salem and Leah J. Bressack, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced John Wharton, age 74, of Baltimore, late on Friday, February 20, 2015 to one year and a day in prison followed by three years of supervised release for conspiring to defraud the federal government of social security benefits, making a false statement in regard to social security benefits, and two counts of theft of government property. Judge Hollander also entered an order that Wharton forfeit and pay restitution of $172,731.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.

According to evidence presented at trial, John Wharton lived with his wife Joeann Wharton, except for a few brief periods of time.  John Wharton knew that Joeann applied for disability benefits with the SSA, falsely stating that she was separated from John Wharton.  Based on that false claim, she was approved for disability benefits with the diagnosis of mental retardation.  From May 1997 to December 2012, Joeann fraudulently received not less than $106,613 in disability benefits. 

Trial evidence showed that in 1993, Joeann applied with SSA and was approved for disability benefits as a representative payee for the couple’s then-minor son.  Although she was required by SSA to spend the SSI benefits for their son on his care and support, John and Joeann hid the benefits from him. From January 1996 to December 2004, Joeann unlawfully received over $36,000 in disability benefits as representative payee for their son. Although Joeann provided a written statement to SSA in which she falsely claimed that her son was living with her, the son testified at trial that he had not lived with his parents since the mid-1990’s, and he had to work two jobs to make ends meet during most of the period when his mother was collecting disability benefits on his behalf.  

In late 2000, Joeann Wharton signed the couple’s son up for benefits as a disabled adult on John Wharton’s Title II record, which would entitle their son to benefits in addition to his disability benefits, if he was disabled and unable to work—which he was not.  Between 2001 and 2004, Joeann received at least $15,121 in Title II benefits for their son, none of which she spent for his care or support.  The son testified at trial that he was also unaware of these benefits. Prior to 2004, SSA became aware of his work activity and assessed an overpayment of $10,328 against him, which he paid to SSA despite never receiving the benefits in the first instance.  He paid back the overpayment from wage and income tax refund garnishments.  When he called his parents to complain, they both disclaimed any knowledge of the benefits paid in his name.

After the death of one of the Whartons’ daughters, Joeann applied and was approved to be representative payee for their two granddaughters in May 2002, who at that time were seven and nine years old.  In July 2011, Joeann forged a granddaughter’s signature on a check from SSA that she then deposited into her personal account.  From June 2009 to August 2012, Joeann received $50,152 in SSA survivor’s benefits as representative payee for her two granddaughters, despite the fact that both granddaughters had moved into their aunt’s house no later than June of 2009.  The granddaughters testified at trial that from 2002 to 2009, their grandparents sometimes did not provide them food, and never provided clothing and school supplies.  The granddaughters also testified that while living with their grandparents, they were required to spend most of their time in their room, and were not allowed to enter the office, kitchen or living room.  Joeann and John Wharton concealed Joeann’s receipt of the survivor’s insurance benefits from their granddaughters, and failed to spend the benefits for their care and support as required by SSA.

Twice in August 2012, John and Joeann Wharton appeared together at an SSA office in Towson and made false statements that their granddaughters continued to reside with them.  At her initial appearance and arraignment on February 22, 2013, Joeann falsely claimed to U.S. Pretrial Services that she occupied the upper floors of her home, while John Wharton lived exclusively in the basement.  A subsequent search of the home revealed that the Whartons resided together in the home.

John Wharton previously pleaded guilty to theft of government property in connection with his scheme to collect a second set of Title II retirement benefits under the alias “James L Wharton,” for which he received more than $30,000 in benefits after April 2010.  He received these benefits while also collecting retirement benefits under his true name and social security account number.  At trial, John Wharton was convicted by the federal jury of conspiring to defraud the federal government of social security benefits, making a false statement in regard to social security benefits and a second count of theft of government property.

Joeann Wharton, age 61, of Baltimore, was convicted by the federal jury of the conspiracy, making a false statement in regard to social security benefits, social security benefit fraud, and two counts of theft of government property.  Judge Hollander sentenced Joeann Wharton on February 12, 2015 to five years of probation, and entered an order that she forfeit and pay restitution of $155,783.          

United States Attorney Rod J. Rosenstein praised the SSA – OIG and HHS - OIG for their work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney Paul K. Nitze and Assistant United States Attorney Judson T. Mihok , who prosecuted the case.

Baltimore, Maryland – A federal grand jury has indicted Alberic Okou Agodio, age 30, of Bethesda, Maryland, on charges arising from a mortgage fraud scheme in which he used the names of immigrants and students, along with false financial information, to obtain approximately $3.8 million in home mortgage loans to buy approximately three dozen row houses in Baltimore, all of which are in default or foreclosure. The indictment was returned on February 18, 2015 and unsealed today upon his arrest.

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

Agodio was the founder and principal employee of A&O Consulting, LLC, which provided accounting and business consulting services; and AORE Investments, Inc., which Agodio described as a real estate firm based in Bethesda, Maryland.

According to the 16 count indictment, from June 2009 to November 2010, Agodio persuaded approximately three dozen immigrants and students who lived in the Maryland suburbs of Washington, D.C. to purchase row houses in Baltimore under their names.  None of these “straw purchasers” had any experience in real estate transactions, nor the funds needed to buy the properties.  Agodio told each straw purchaser that he would prepare the loan application; manage the property after its purchase by finding renters, collecting the rent and paying the mortgage; and would pay the straw purchaser $7,000 to $8,000 after the transaction closed.  He further promised to sell the property in three years and give the individual up to 80% of the sale proceeds.  Agodio also paid thousands of dollars in additional commissions to those straw purchasers who referred other individuals to him as potential buyers for similar transactions.

The indictment further alleges that Agodio falsely represented in the loan applications the straw purchasers’ assets and in many cases, their earnings as well.  Agodio provided the necessary funds for the down payment and the buyer’s share of the closing costs, causing the settlement statement form to inaccurately reflect that the down payments and closing costs had been paid by the straw purchasers.

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

During the course of this scheme, Agodio and his co-conspirators obtained approximately $3.8 million in home mortgage loans to buy the row houses.  A co-conspirator who owned the row houses paid Agodio an undisclosed kickback from the proceeds he received from the title company on each transaction, totaling over $1.2 million.  Agodio used these funds to reimburse himself for making the down payments and closings costs, to pay the promised amount to the straw purchasers and to keep a substantial commission for himself.

The indictment also alleges that a fire occurred at one of the row house properties purchased through a straw purchaser.  He falsely identified himself as the straw purchaser to the insurance company in order to collect $106,500 in insurance paid for the repair the property.

The indictment seeks forfeiture of $3,925,841.

Agodio faces a maximum sentence of 30 years in prison for conspiring to commit wire fraud, on each of nine counts for wire fraud, and for mail fraud; 20 years in prison on each of three counts for money laundering; and a mandatory minimum of two years in prison consecutive to any other prison term on each of two counts for aggravated identity theft. Adogio had his initial appearance in federal court in Baltimore at 2:30 p.m. today.

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

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

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

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

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Noly Torato Vidad, age 47, of the Philippines, the Chief Engineer of the cargo vessel M/V Selene Leader, to eight months in prison, followed by one year of supervised release, for obstruction of justice and violating the Act to Prevent Pollution from Ships (APPS).

The sentence was announced by U.S. Attorney Rod J. Rosenstein; Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division John C. Cruden; and Coast Guard Captain Kevin Kiefer, Captain of the Port of Baltimore.

Vidad was the Chief Engineer and Ireneo Tomo Tuale was the first engineer on board the vessel, which was operated by Hachiuma Steamship Co, LTD, a Japanese company, between August 2013, and the end of January 2014.  The M/V Selene Leader transported vehicles to and from ports in the United States, including the Port of Baltimore.

According to his plea agreement and other court documents, in January 2014, engine room crew members of the M/V Selene Leader, under the supervision of Vidad and Tuale, transferred oily wastes between oil tanks on board the ship using rubber hoses and then illegally bypassed pollution control equipment and discharged the oily wastes overboard into the ocean.  Before such waste can be discharged into the sea, the law requires that it must first pass through an oil water separator, and the operation must be recorded in the vessel’s oil record book for inspection by the United States Coast Guard.  

When the Coast Guard boarded the vessel in Baltimore on January 31, 2014, Mr. Vidad tried to obstruct the Coast Guard’s investigation and hide the illegal discharges of oil by falsifying the oil record book, destroying documents, lying to Coast Guard investigators, and instructing subordinate crew members to lie to the Coast Guard. 

The Hachiuma Steamship Co., LTD previously pleaded guilty to violating the Act to Prevent Pollution from Ships (APPS), arising from the failure to maintain an accurate oil record book for the M/V Selene Leader.  As ordered by Chief U.S. District Judge Catherine C. Blake Hachiuma Steamship paid a $1.8 million penalty, $450,000 of which was made payable to the National Fish and Wildlife Foundation to fund projects benefitting the Chesapeake Bay, and $250,000 was awarded to a whistleblower on board the M/V Selene Leader who alerted the Coast Guard about the illegal activities on board the vessel.  The company was also placed on probation for three years during which it is to develop an environmental compliance program.

Ireneo Tomo Tuale, age 63, also of the Philippines, previously pleaded guilty to his participation in the scheme and is scheduled to be sentenced in federal court in Baltimore on March 3, 2015.

United States Attorney Rod J. Rosenstein and Assistant Attorney General John C. Cruden praised the Coast Guard Investigative Service for its work in the investigation and thanked Special Assistant U.S. Attorney David P. Kehoe, of the Environmental Crimes Section of the U.S. Department of Justice, and Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.

Greenbelt, Maryland – A federal jury convicted Carmen Johnson, age 48, of Gambrills, Maryland, today on charges of conspiracy, wire fraud and making a false statement on a loan application, arising from two residential mortgage fraud schemes.

 The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; 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 to the evidence presented at her seven day trial, in the first scheme, which operated from March 2007 to November 2008, Johnson conspired with real estate agent Edgar Tibakweitira and others to fraudulently obtain residential mortgage loans by making false statements during the loan application and approval process. In the second scheme, witnesses testified that between April and July 2008 Johnson conspired with real estate agent Nsane Phanuel Ligate and others in a similar mortgage fraud scheme involving two properties in Baltimore.

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

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

Johnson faces a maximum sentence of 30 years in prison on each of two conspiracy counts; 30 years in prison for each of 12 counts of wire fraud affecting a financial institution; and 30 years in prison on each of 10 counts of false statement on a loan application.  U.S. District Judge George Jarrod Hazel has scheduled sentencing for June 3, 2015, at 10:00 a.m.

Co-conspirators Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland, Flavia Makundi, age 42, of Severn Park, Maryland, Ayoub Luziga, age 35, of Bowie, Maryland, Raymond Abraham, age 48, of Silver Spring, Maryland, Mokorya Cosmas Wambura, age 42, of Takoma Park, Maryland, Abdallah Suleiman Kitwara, age 44, of Bowie, Maryland, have pleaded guilty to their roles in the first scheme.  Luziga was sentenced to 21 months in prison and ordered to pay restitution of $999,726.  Kitwara was sentenced to 15 months in prison and ordered to pay $290,954 in restitution.  Abraham was sentenced to 33 months in prison and ordered to pay $999,726 in restitution.  Annika Boas, age 37, of Mount Rainier, Maryland, was convicted after trial and sentenced to 27 months in prison and ordered to pay restitution of $511,147.  Makundi was sentenced to time served.  Tibakweitira is scheduled to be sentenced on March 23, 2015.

Nsane Phanuel Ligate, age 42, of Ashburn, Virginia, Cane Mwihava, age 43, of Bowie, Maryland, Larry Johnson, age 58, of Capital Heights, and Gladyness Silaa, age 36, of Bowie, Maryland have also pleaded guilty to their roles in the second mortgage fraud scheme.  Larry Johnson was sentenced to eight months in prison consecutive to the current sentence he is serving on an unrelated case and ordered to pay restitution of $352,091.  Silaa was sentenced six months home detention and ordered to pay $378,602 in restitution.  Ligate and Mwihava are scheduled to be sentenced on March 16, 2015 and March 23, 2015, respectively. 

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 are prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Arnold Threet, age 50, of Baltimore today to 10 years in prison, followed by three years of supervised release, for bank robbery.  Chief Judge Blake also ordered Threet to pay restitution of $8,935.         

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

According to his plea agreement, on July 5, 2013, Threet and another individual robbed the First Mariner Bank in the 9800 block of York Road in Cockeysville, Maryland.  Both robbers wore masks.  They entered the bank and yelled for the people inside to get down.  One of the robbers grabbed a teller, pushed what appeared to be a gun into her shoulder and ordered her to the ground. The other robber ordered another bank employee to walk from her desk toward him and get down on the ground.  He then ordered her to crawl back to her desk area.  The robbers stole $8,935.

A witness saw Threet in a parking lot near the bank and observed what appeared to be a black handgun in the waistband of Threet’s pants.  Police officers stopped Threet’s vehicle and he was arrested.  A search of the vehicle recovered the clothing, gloves and a pellet gun which are seen in the video of the bank robbery.  Threet admitted that he committed the robbery and knew that the pellet gun would be used during the robbery.

United States Attorney Rod J. Rosenstein praised the FBI and Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Bonnie S. Greenberg, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Heather Lynn Carter, a/k/a “Hunnilyn,” age 30, of Columbia, Maryland, to 63 months in prison, followed by five years of supervised release, for conspiring to participate in a racketeering conspiracy, and possession of a firearm in furtherance of a crime of violence, in connection with her membership in the Bloods gang operating primarily out of Howard County, Maryland.

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

According to her plea agreement, since 2007, Carter was romantically involved with Anthony Preston, a known Bloods leader of the “Swann” set operating in Howard County, Maryland.  As a result of this relationship, and at Preston’s behest, Carter became a female member of the Bloods, otherwise known as a “Ruby,” starting in the fall of 2007.  Carter has a “Ruby” tattoo, as well as a five-pointed star tattoo, both of which symbolize her association with the Bloods.

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

The investigation began with an assault and robbery of an ATF confidential informant (CI) in Columbia, Maryland, on November 8, 2011.  The ATF was planning a controlled purchase of firearms from co-defendant and fellow gang member Michael Johnson, a/k/a “Ace,” a/k/a “Bloody Mike” after Johnson provided via text two photos of firearms, an assault rifle and a handgun, available for purchase by the CI.  Instead of selling the guns, Johnson directed other gang members, including Bryan Mays, to rob the CI.

Among her gang activities, Carter dealt prescription pills and crack cocaine.  She referred oxycodone customers to Preston, as well as sold oxycodone herself.  She also sold crack cocaine at Preston’s behest, and later provided crack cocaine to Johnson, who was dealing crack with Preston.  Carter was present when Bloods members carried firearms and committed acts of violence.  For example, on February 22, 2012, Carter was present when Johnson and co-defendant Giovanni Wright assaulted and robbed at gunpoint a rival gang member outside the home of Johnson’s baby’s mother.  Carter continued her association with, and participation in, the Bloods after witnessing this assault.  She also subsequently maintained a firearm belonging to a gang member in her home.

In addition, Carter obstructed justice by lying to federal law enforcement to assist Johnson, a fellow gang member, in evading arrest on a federal warrant.  On February 28, 2012, agents went to Carter’s residence in an attempt to arrest Johnson on charges related to the 2011 robbery of the ATF CI.   Carter told the agents that she last saw Johnson “a few days ago,” and that she had no means of contacting him.  Toll records reflect that Carter called Johnson on his cell phone shortly after agents left.  That same day, law enforcement went to a motel in Hanover, Maryland to look for Johnson.  Law enforcement confirmed with the clerk that Heather Carter had rented a room earlier that day and that Carter was accompanied by Johnson.  Johnson never returned to the hotel.  Based on the phone records between Carter and Johnson, Carter told Johnson that law enforcement was on the way to the hotel and Johnson was able to evade arrest.  Despite daily efforts, law enforcement could not locate and arrest Johnson until over a week later, on March 9, 2012. 

As a “Ruby,” Carter was responsible for relaying communications, both online and telephone, from incarcerated Bloods to Bloods on the street.  Carter, for example, was responsible for allowing Johnson, once arrested on March 9, 2012, to communicate to other gang members and associates via Facebook, mail, and telephone while he was in jail.   These communications related to organizing gang hierarchy, dividing up territory, collecting drug proceeds, and directing gang activity.  Carter also encouraged and collected money from other gang members to support Johnson and other incarcerated Bloods.  Carter also participated in, and facilitated, conversations between Johnson and other gang members regarding smuggling contraband into the facility.

On May 8, 2013, a search warrant was executed on Carter’s residence and evidence relating to her drug trafficking and gang association was recovered, including a .22 caliber revolver, loaded with six rounds of .22 caliber ammunition, which belonged to Giovanni Wright.         

To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Judge Russell has sentenced co-defendants Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland, and Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, to 205 months in prison and 18 years in prison, respectively. Bloods gang member Bryan Alexander Mays, a/k/a “Bam Bam,” “Boomar,” and “G,” age 24, of Columbia, Maryland was sentenced to102 months in prison for conspiring to commit robbery and using a gun during a crime of violence, for his participation in the robbery of the ATF CI.  Anthony Preston, a/k/a “40,” or “Tone,” age 27, of Laurel, Maryland, pleaded guilty to conspiring to participate in a racketeering conspiracy, and using and carrying a firearm during and in relation to a crime of violence, and is awaiting sentencing. Preston and the government have agreed that if the Court accepts the plea agreement, Preston will be sentenced to 20 years in prison.

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

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Rasan Byrd, age 39, of Houston, Texas today to 14 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute cocaine and marijuana.

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

According to his plea agreement and court documents, Byrd supervised the Arizona-based activities of a drug conspiracy in which large quantities of cocaine and marijuana were obtained in Arizona and shipped to Maryland.  Byrd supervised several workers who weighed the drugs and then wrapped the cocaine and marijuana in plastic containers to avoid detection by law enforcement. He oversaw the delivery of drugs to a shipping company in Scottsdale, Arizona, which forwarded the drugs to his associates in Baltimore and other destinations on the east coast.

As a result of extensive surveillance, on April 22, 2013 law enforcement officers executed a search warrant at the residences of co-conspirators Harold and Josef Byrd, and Jerome Castle, as well as at a commercial building at 5819 Moravia Road in Baltimore that was used to store deliveries of drugs shipped from Arizona.  Law enforcement seized 10 kilograms of cocaine from the residences of Josef and Harold Byrd; and approximately 350 pounds of marijuana shipped by Rasan Byrd from Arizona that had just been delivered to the commercial building.  Jerome Castle was conducting counter-surveillance during the marijuana delivery at the commercial building and fled from police in a pick-up truck. Castle took the police on a high-speed chase at speeds exceeding 100 miles per hour, and was arrested only after he crashed his vehicle into other vehicles parked in a used car lot in Harford County.  Rasan, Harold and Josef Byrd were also arrested, along with Maurice Jones.

In Arizona, over 500 pounds of marijuana and 16 kilograms of cocaine were seized from the shipping company.  Between 2009 and April 22, 2013, approximately 88 shipments containing cocaine and marijuana were sent under the supervision of Rasan Byrd and others to the commercial building in Baltimore.

Brothers Harold Alexander Byrd, age 27, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 35, of Owings Mills, Maryland, previously pleaded guilty to their roles in the conspiracy and were each sentenced to 10 years in prison.

Jerome Adolfo Castle, a/k/a Dontwon Burris, age 37, a Jamaican citizen residing in Pikesville, Maryland, previously pleaded guilty to his role in the conspiracy and was sentenced to 14 years in prison. Castle was also ordered to forfeit $57,997 in cash, his interest in seven Baltimore properties, jewelry valued at more than $411,000, 98 pairs of men’s shoes, two laptop computers and an I-Pad, seven firearms and ammunition, as well as six vehicles, including a 2009 Jaguar XF Premium.

Maurice Jones, age 60 of Baltimore, also has pleaded guilty to his role in the conspiracy and was sentenced to seven years in prison.

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

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Wanisha D. Coates, age 25, of Baltimore, today to four years in prison followed by five years of supervised release for bank fraud conspiracy and aggravated identity theft.

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

According to her plea, from at least the winter of 2012 to July 2014, Coates and others created counterfeit credit cards, using stolen or otherwise compromised credit and debit card numbers belonging to others.  They encoded the stolen account information onto credit and stored value cards which were then used to obtain money and credit from banks and credit unions.  These proceeds were used to buy consumer products, including designer shoes by Gucci, Louis Vuitton and Christian Louboutin, and designer clothes from Neiman Marcus.

 On November 2, 2012, Coates and her co-conspirators used altered credit cards to make fraudulent purchases at a Target in Fairfax, Virginia.  Coates was arrested and prosecuted in Fairfax County, Virginia for credit card fraud.  She failed to appear for her court hearing, and a bench warrant was issued for her arrest.

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

On January 11, 2014 Easton Police officers arrested co-conspirator Domenique Miller and another co-conspirator after they tried to buy multiple gift cards at a Staples store in Easton.  A number of credit cards fraudulently re-encoded with stolen or compromised account information were seized, along with a small amount of marijuana.  Miller advised police that his girlfriend was staying at an Easton motel.  Officers arrived at the motel room and were overwhelmed by the odor of raw and burnt marijuana as they entered.  Present inside the room were the girlfriend and Coates. Coates identified herself as “Wanda C. Redd,” who is in fact her mother.  Coates was arrested.  Officers seized 44 credit or stored value cards, many of which had been fraudulently altered.  Coates appeared at the Talbot County District Court for a hearing relating to this incident, and again assumed the identity of Wanda Redd. 

On March 13, 2014, Anne Arundel County Police responded to a call from a man at a motel in Linthicum, Maryland who said he had been cut in the face with a knife by Coates.  Police found Coates and the man outside of their motel room.  Police seized approximately 27 credit and gift cards, some visibly altered, and a device for reading, erasing and writing data on magnetic strips of credit cards.

On May 22, 2014, the Virginia state case against Coates was dismissed and Coates was taken into federal custody on charges of access device fraud.  She was transported to federal court in Baltimore for an initial appearance, and ordered released on the condition that she reside at a halfway house awaiting additional court proceedings.  She was also ordered not to leave Maryland.  However, on June 4, 2014, Coates left the halfway house for a physical examination and never returned.  A federal arrest warrant was issued, based on her absconding from court ordered supervision at the halfway house.

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

The loss attributable to Coates during the course of the conspiracy is between $120,000 and $200,000 and involves up to 49 victims.

Domenique R. Miller, age 20, of Newnan, Georgia, previously pleaded guilty to his participation in the scheme and awaits sentencing.

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

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

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

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Antione White, age 26, of Baltimore, today to 18 years in prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.

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

White was known as an “enforcer” in the UDH group who was responsible for committing robberies on behalf of the group, possessing firearms and shooting at rivals. White admitted that he committed armed robberies with fellow UDH members and possessed firearms which were used by the UDH organization to shoot rivals and protect their territory.  On May 25, 2012, White was pulled over while driving a vehicle with his girlfriend and two other UDH members.  Officers found a 380 semi-automatic handgun loaded with five 9mm rounds with an obliterated serial number under the driver’s seat. Ballistics comparisons revealed that this gun matched the cartridge casings recovered from the May 11, 2012 scene of the shooting of Little Spelman member Warren Jones a/k/a Pluck, in the 800 block of Bridgeview Road in Cherry Hill.  White admitted to two shootings in which the victims, one of whom was a rival gang member, were wounded.

White admitted that as a member of UDH he also sold crack cocaine, heroin and other narcotics with UDH members.  White sold the drugs from a house located on Giles Road, in the UDH area of Cherry Hill, where White and others also stored firearms, which were used communally by UDH members.  On January 18, 2013, Baltimore City Police arrested White and other UDH members at the Giles Road residence and seized cocaine, drug paraphernalia and a loaded gun.

During his participation in the UDH drug conspiracy, White was responsible for distributing in excess of 840 grams of crack cocaine.

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 and Seema Mittal, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jimoh Babatunde Aderomilehin, age 24, of Randallstown, Maryland, today to five years in prison followed by five years of supervised release for bank fraud conspiracy and aggravated identity theft.  Judge Bennett also ordered Aderomilehin to pay restitution of $468,534.42.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.

According to his plea, from September 2010 to March 2011, Aderomilehin deposited counterfeit checks into bank accounts of his co-conspirators and withdrew the funds before the checks were returned as fraudulent. Generally, Aderomilehin gave the funds to a co-defendant and received a small portion as his share.  Aderomilehin was recruited into the scheme through other participants and in turn, he recruited others to allow the group to use their bank accounts to deposit checks.  After the fraud was discovered by the bank, they were supposed to claim their accounts had been used without their knowledge so that the bank would bear the loss. 

In addition to this scheme, Aderomilehin became aware that two other co-conspirators were operating a credit card fraud scheme in which workers in local restaurants and hotels were "skimming" credit cards. An associate was re-encoding the credit cards with the skimmed numbers. Initially, Aderomilehin drove others around as they used the counterfeit credit cards. Soon Aderomilehin began using the counterfeit credit cards to purchase items himself. Eventually, the associate sent Aderomilehin cards with his name on them, but with stolen numbers.

 Later, Aderomilehin learned how to create the counterfeit credit cards himself. He recruited restaurant employees to "skim" credit cards. He then used the numbers they stole to create counterfeit credit cards. He and others traveled to North Carolina, Pennsylvania, Georgia and other areas to use the counterfeit credit cards.

During the course of both conspiracies involving the counterfeit checks and re-encoded credit cards, Aderomilehin and his co-conspirators obtained or attempted to obtain between $400,000 and $1 million from, or using the identities of, more than 250 victims.

Eight defendants have pleaded guilty to date to their participation in the schemes and have been sentenced to up to 56 months in prison.

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

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

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jermel Henderson, age 38, of Gwynn Oak, Maryland, to 9 years in prison followed by three years of supervised release for robbing a bank in Glen Burnie.  Judge Blake also ordered Henderson to pay $1,766 in restitution.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; Commissioner Anthony W. Batts of the Baltimore Police Department; and Anne Arundel County State’s Attorney Anne Wes Adams.

According to his plea agreement, on October 11, 2013, Henderson demanded cash from a teller at the TD Bank located at 7926 Crain Highway in Glen Burnie, Maryland. After receiving $1,971from the teller, Henderson demanded that all bank employees get on the ground.  Henderson then fled.  A dye pack that was included in the cash that Henderson took exploded a short distance from the bank, and $205 was later recovered from that location.

Anne Arundel County Police detectives learned that Henderson was the fifth customer to enter the bank that day and that a cleaning crew had cleaned the bank the previous night.  They also saw from the bank’s video surveillance that Henderson had placed his left hand down on the counter in front of the tellers while demanding the money.  Henderson was not wearing gloves, and it had been raining that day.  An Anne Arundel County crime scene technician lifted a wet, latent palm print from the bank counter, and the print was identified as Henderson’s.

The teller identified Henderson from photos as the robber.  On November 8, 2013, Baltimore City Police officers arrested Henderson for an unrelated incident.  During an interview, Henderson told Anne Arundel County Police detectives, “I’m guilty no matter what I tell you.”  Henderson also told them that he had previously been found guilty of a bank robbery in Baltimore and served federal prison time.  

Judge Blake had sentenced Henderson in 1996 to 70 months in prison for a previous bank robbery.

United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County and Baltimore Police Departments and Anne Arundel County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Ayn B. Ducao, who prosecuted the case.

Baltimore, Maryland – Robert Downing, a/k/a “Luck,” and “Shamrock,” age 46, and Michael Wesley Lee, a/k/a “King,” or “King P,” age 31, both of Odenton, Maryland, pleaded guilty today to use of an interstate facility to promote a prostitution business. Lee also pleaded guilty to conspiring to commit sex trafficking by force and fraud.                      

The guilty pleas 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 was a pimp who used social media websites to entice females to prostitute for him.  Downing worked for Lee.  The defendants used the internet to recruit women to work as prostitutes, and to advertise sex services.  The defendants rented hotel rooms to house the women and to serve as a place to prostitute, which they paid for with prepaid gift and debit cards.

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 a 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 assault charges were dismissed against Lee a few months later.

Also in August 2013, Lee used a social media website to lure a 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.

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.

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

The defendants and the government have agreed that if the Court accepts the plea agreement, Lee will be sentenced to 13 years in prison followed by five years of supervised release, and Downing will be sentenced to 46 months in prison.  U.S. District Judge J. Frederick Motz has scheduled sentencing for March 30, 2015.

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

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

United States Attorney Rod J. Rosenstein commended the FBI and 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 are prosecuting the case.

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jason Lewis Schwamberger, age 39, of Baltimore, today to three years in prison, followed by 20 years of supervised release. Judge Russell ordered that upon his release from prison, Schwamberger 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; and Lt. Colonel Anthony C. Satchell, Acting Superintendent of the Maryland State Police.

According to his plea agreement, on two occasions in May 2013, an investigator with the Maryland State Police downloaded files containing child pornography that Schwamberger made available through a file sharing program.  On September 13, 2013, a search warrant was executed at Schwamberger’s residence and law enforcement seized his desktop computer, two external hard drives, a thumb drive and numerous CDs and DVDs.  A subsequent forensic examination of the seized items revealed that the file sharing program had been used to download child pornography and there were more than 1,000 images and 180 video files depicting minors engaged in sexually explicit conduct,

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

United States Attorney Rod J. Rosenstein commended the FBI and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.