District of Maryland

Baltimore, Maryland – A federal jury convicted Kenneth Ray Graham, age 38, of Baltimore, today for attempting to commit an armed robbery, possessing and discharging a weapon in furtherance of a crime of violence, and possession of a firearm by a convicted felon.

The guilty verdict 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.

“ATF is committed to working with our state and local law enforcement partners to bring violent criminals to justice,” said ATF Special Agent in Charge William P. McMullan. “Today’s guilty verdict demonstrates our unwavering dedication to the investigation and prosecution of those individuals who choose to commit violent robberies of the citizens of Maryland.”

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

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

Graham faces a maximum sentence of 20 years in prison for the attempted robbery; a mandatory minimum of 10 years, and up to life in prison for possessing and discharging a weapon in furtherance of a crime of violence; and 10 years in prison for being a felon in possession of a firearm.  U.S. District Judge William D. Quarles, Jr. scheduled sentencing for May 13, 2015, at 1:00 p.m.  Graham remains in federal custody.

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

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Marion Lee Martin, Jr., age 58, of Potomac, Maryland, today to 85 months in prison followed by a lifetime of supervised release for receiving child pornography. Judge Grimm ordered that upon his release from prison, Martin 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 Chief J. Thomas Manger of the Montgomery County Police Department.

According to his plea agreement, in January 2013, Martin uploaded files to his internet cloud account which depicted real children engaged in sexually explicit conduct.  On May 8, 2013, a search warrant was executed at his residence and a large number of digital devices and removable media, some of which contained child pornography, were seized.  Martin admitted that he had been collecting images of children since approximately 1977, and his sexual interest was in girls, including the ages of nine to 11.

Martin also told law enforcement that he worked in a photo lab at a local CVS store and would also copy, for his own personal collection, images of children that customers would drop off for processing. Evidence seized during the May 8 search revealed video files depicting prepubescent and pubescent girls taken in a CVS store.

On October 30, 2013, Martin admitted to law enforcement that he had been using his cell phone to take videos of girls, clothed, at the store where he worked; and that he had bought a new laptop and cell phone since the May 2013 search of his home.  A second search warrant was executed at his home in January 2014.  Three laptops, five tablets, seven cameras, 24 memory cards, a Google Glass device and other digital media storage devices were seized.

Martin had at least tens of thousands of images and videos of child pornography and child erotica images and videos stored on the digital devices and removable media seized from both searches of his home.  Some of the images and videos depicted real children engaged in sexually explicit conduct.

The case was investigated by the FBI-led Maryland Child Exploitation Task Force, created in 2010 to combat the sexual exploitation of children, with members from 10 state and federal law enforcement agencies.

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 Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas Mitchell, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Osmin Alfaro, age 39, a native of El Salvador residing in Rockville, Maryland, late yesterday to 46 months in prison, followed by five years of supervised release, for failing to register as a sex offender and for illegally re-entering the U.S. after conviction for a felony. Judge Grimm ordered that upon his release from prison, Alfaro will be subject to deportation, but while he is in the United States, 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; U.S. Marshal Michael Hughes of Washington, D.C.; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

“I commend the Superior Court Sex Offender Investigations Squad for their hard work and tireless hours spent on apprehending Alfaro,” said U.S. Marshal Michael Hughes. "We will continue to use all available assets to combat such crimes and keep our streets safe."

According to his plea agreement, on July 2, 2004, Alfaro was convicted of a sexual offense in the Montgomery County Circuit Court and ordered to register as a sex offender.  Alfaro initially registered as a sex offender in Montgomery County in 2005, but subsequently moved and did not update his sex offender registration to reflect his change of residence.  Alfaro was deported to El Salvador on August 15, 2008, after pleading guilty to failure to register as a sex offender.   

The U.S. Marshals Service learned that Alfaro illegally re-entered the United States sometime before March 2010 and from that time until approximately February 1, 2014, Alfaro resided in Maryland but did not update his registration as a sex offender.  During that time, Alfaro was not registered as a sex offender anywhere, and he repeatedly traveled between Maryland and the District of Columbia.  After being apprehended by the U.S. Marshals Service and ICE on April 29, 2014, Alfaro was taken into ICE custody.

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

United States Attorney Rod J. Rosenstein commended the U.S. Marshals Service and HSI Baltimore for their work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney James I. Pearce, of the U.S. Department of Justice, Criminal Division, and Assistant U.S. Attorney Michael T. Packard, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced David Kelley, age 46, of Richmond, Texas today to 18 months in prison followed by three years of supervised release for the unlawful export of arms and munitions, specifically, night vision devices.

The sentence was 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). 

According to his plea agreement, Kelley ran a business named "Optical Solutions and More" that sold night vision and other military-style items, primarily over eBay.  Kelley entered into distributor agreements with night vision manufacturers in which he acknowledged that he was aware of restrictions known as the International Traffic in Arms Regulations (ITAR) which prohibited the unlicensed export of U.S. munitions list items, including the export of night vision devices using Generations 2 and newer technology.

            After entering into these agreements, Kelley discussed circumventing ITAR restrictions with foreign customers who responded to his internet listings.  Between May 2011 and February 2012, Kelley made approximately 60 shipments containing

ITAR-restricted weapons parts and night vision devices destined for customers in 24 countries, including Argentina, Australia, Russia, the Philippines, United Kingdom and Japan. To disguise the ITAR violations, Kelley variously labeled these shipments as "toys," "toy blocks," "spotting scope," and "monocular parts."  In exchange for these shipments, Kelley collected over $140,000 in 150 separate PayPal transactions.

In September 201l, an undercover HSI agent located in Baltimore posed as a buyer from New Zealand and contacted Kelley to ask if Kelley would export an ATN Generation 4 Monocular Night Vision Device.  Kelley acknowledged in an email that such an export violated ITAR and demanded additional payment for risking prosecution. On October 24, 2011, Kelley exported the device, which is designated as a defense article on the U.S. munitions list, to New Zealand, without first obtaining a license from the State Department.

United States Attorney Rod J. Rosenstein praised ICE Baltimore for its work in the investigation and thanked Assistant U.S. Attorney Adam K. Ake, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Tavon White, a/k/a Bulldog and Tay, age 37, of Baltimore, today to 12 years in prison followed by three years of supervised release for racketeering conspiracy arising from his running of operations of the Black Guerilla Family (BGF) gang inside the Baltimore City Detention Center (BCDC).

In connection with his federal guilty plea, White also pleaded guilty to a state charge of attempted murder, for which he received a sentence of 20 years in prison, served concurrent to his federal sentence.                           

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

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

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. 

According to his plea agreement, White has been a member of the BGF since 2000 and was in pretrial custody at BCDC from 2009 to 2013.  He became the lieutenant commander of the BGF at BCDC and then the commander in 2011.  Throughout his years at BCDC, White was 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.  Fellow BGF inmates and co-defendants also directed smuggling and often worked in concert with White.

White admitted that he was personally involved in sexual relationships with and impregnated four CO’s.    Outside the prison facility, White and his closest BGF allies frequently used other people, including several co-defendants, to obtain contraband, hold it or deliver it to correctional officers for smuggling.

Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers.  Thirty-five defendants pleaded guilty; eight defendants went to trial and one defendant has 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 – Chief U.S. District Judge Catherine C. Blake sentenced Sean Wilson, age 46, of Randallstown, Maryland today to 11 years in prison followed by five years of supervised release for conspiracy to distribute and possess with the intent to distribute heroin.

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

“The sentence today of Sean Wilson emphasizes the proactive work that the Drug Enforcement Administration and our law enforcement partners undertake every day to stop the flow of drugs from entering the Baltimore metropolitan area,”  stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “This case was a multi-jurisdictional operation which targeted a large scale Drug Trafficking Organization (DTO) with direct ties from Mexico to Baltimore. The tentacles of this DTO spread near and far. DEA’s investigation of this DTO was a long-term, highly complex effort that could not have been accomplished without the assistance of our local partners.” 

According to his plea agreement, from at least September 2013 to June 30, 2014, Wilson conspired with Fred Brooks and others to distribute heroin in Baltimore.  DEA investigators in New Orleans, Louisiana and Baltimore identified Wilson as a heroin distributor in Baltimore supplied by Brooks.

Wilson coordinated with Brooks to obtain heroin from a Mexican source of supply.  Wislon distributed the heroin to co-conspirators in Maryland by way of Chicago, Illinois. The heroin arrived in the Chicago area in car batteries containing approximately four to five kilograms of heroin. Maryland-based members of the conspiracy traveled to the Chicago area to retrieve the heroin.  Chicago-based members of the conspiracy traveled to Maryland to deliver the heroin and retrieve money for prior heroin deals. Some of these transactions were coordinated by Brooks and Wilson.

Law enforcement intercepted phone calls and text messages in which Wilson discussed payment for drugs and arranged drug transactions with co-conspirators.  After learning that a money transaction would be occurring on June 30, 2014, law enforcement located a stash location in Pikesville, Maryland that was used by the conspirators.  Investigators saw Wilson enter the stash location and leave a short time later.  Later that day, law enforcement executed search warrants and seized 10 kilograms of heroin, a money counter, and $464,283 from the stash location; and $74,980 and a hydraulic press used to package heroin from Wilson’s residence

During the course of the conspiracy, Wilson was responsible for the distribution of at least 30 kilograms of heroin.

Fred Douglas Brooks, age 47, of Houston, Texas, is facing federal drug charges in New Orleans.

United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department; Baltimore County Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney Christopher Flagg, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, and Assistant U.S. Attorney A. David Copperthite, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – A federal jury convicted five defendants today for participating in a racketeering conspiracy and drug conspiracy, involving the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC):

Former Correctional Officers:   Ashley Newton, age 31, of Baltimore, and
Travis Paylor, age 27, of Baltimore.

Inmates: Joseph Young, a/k/a Monster, age 32, of Baltimore, and 
Russell Carrington, a/k/a Rutt, age 34, of Baltimore.                                     

Former Contract employee with DPSCS: Michelle McNair, age 24, of Baltimore.

Young, McNair and Newton were also convicted of money laundering conspiracy. The jury acquitted former correctional officers Clarissa Clayton, age 25, of Brooklyn Park, Maryland; Riccole Hall, age 27, of Glen Burnie; and Michelle Ricks, age 45, of Edgewood, Maryland of all charges.

The convictions 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.

“This case exposed rampant crime and corruption inside jailhouse walls, which spawns more crime in the streets,” said U.S. Attorney Rod J. Rosenstein. “Continued vigilance will be needed to make sure that jails help prevent crime instead of facilitating it.”

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

According to court documents, the Black Guerilla Family (BGF) has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.

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

According to trial evidence, Newton had sexual relationships with two BGF inmates, and smuggled pills, marijuana and tobacco for Duron Young, a/k/a Pinkey.  During the conspiracy, Newton smuggled pills for Pinkey almost daily.  She also opened cells doors of inmates for BGF members, which resulted on at least one occasion in the beating of an inmate by the BGF.  Newton also warned the BGF of upcoming prison searches by correctional officers.  Newton arranged for money to be sent to inmates and facilitated phone conversations between inmates, including calls from other prisons to BGF leader Tavon White.

In 2012, Michelle McNair, who worked in a jail kitchen as a contract employee, smuggled marijuana, pills and other contraband into BCDC to repay BGF leader Tavon White and in exchange for Green Dot transfers of funds. McNair also smuggled marijuana to BGF inmate Jamar Anderson inside BCDC.  McNair also transferred contraband from one facility to another within the jail.

Evidence presented at trial showed that Young was a high-ranking BGF member, and a rival of Tavon White within BGF while he was incarcerated at BCDC beginning in early 2012. Young was expected to replace Tavon White as BGF’s leader inside the jail. In October and November 2012, Young sold marijuana, prescription pills, cell phones and tobacco that correctional officers smuggled into the jail. Young directed another inmate, Cyrus Beads, to buy marijuana at $350 an ounce and package it in one-gram bags, which he would sell for $50 inside BCDC.  Young explained that they would make a $1,050 profit from each ounce.  Young had a romantic relationship with Raylanair Reese, age 32, who lived outside the jail and supplied Young with cell phones and Percocet pills.  Reese pled guilty earlier.

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

The defendants face a maximum penalty of 20 years in prison for the racketeering and drug conspiracies.  Young, McNair and Newton also face a maximum sentence of 20 years in prison for the money laundering conspiracy.  Their sentencings have not been scheduled.

Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers.  Thirty-five defendants pleaded guilty; eight defendants went to trial and one defendant has died.

BGF leader Tavon White, age 37, previously pleaded guilty to his participation in the racketeering conspiracy and testified at the trial.  He is scheduled to be sentenced on February 9, 2015 at 11:00 a.m. Another BGF inmate, Derius Duncan, age 24 of Baltimore, is scheduled to be sentenced on February 11, 2015 at 11:00 a.m.

BGF members Jamar Anderson a/k/a “Hammer,” and Kenneth Parham, both age 24; and Jermaine McFadden, age 25, an associate of BGF; also pleaded guilty to the racketeering enterprise.  Parham was sentenced on February 24, 2014 to151 months in prison, McFadden was sentenced on March 12, 2014 to 140 months and Steven Loney, who was the BGF commander of the North Building of the jail was sentenced on January 14, 2014 to nine years in prison.

To date, at least eight of the correctional officers have been sentenced to up to 42 months in prison.  Chania Brooks, age 29, of Baltimore, is scheduled to be sentenced tomorrow, February 6, 2015. 

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

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

Greenbelt, Maryland – Michael Bogoslavski, age 33, of Cheverly, Maryland, was charged by complaint with transmitting in interstate commerce a communication containing a threat to injure another person.  The complaint was filed on February 3, 2015, and unsealed yesterday.  A detention hearing was held late yesterday afternoon and Bogoslavski was ordered to be detained pending trial.

The complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief Kim Dine of the U.S. Capitol Police; Chief H. Buddy Robshaw of the Cheverly Police Department; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Chief Mark A. Magaw of the Prince George’s County Police Department.

“Local and federal law enforcement agencies responded to the threat quickly and effectively,” said U.S. Attorney Rod J. Rosenstein.  “Their efforts in this case may have prevented a tragic outcome.”

“With the help of the Threats of Mass Violence state law passed last year, my office was able to work with Cheverly Police to detain Mr. Bogoslavski and obtain a warrant which led to the removal of firearms from his home,” said Prince George’s County State’s Attorney Angela D. Alsobrooks.  “I want to thank all of our law enforcement partners for their quick actions that removed Mr. Bogoslavski from our community and may have prevented a tragedy.”

According to the affidavit supporting the complaint, on February 2, 2015, a federal employee who worked in the U.S. Capitol Building reported to U.S. Capitol Police that earlier in the day, the employee had received text messages from Bogoslavski stating that he was planning to come to the employee’s work place with guns and shoot the employee and others.  While the employee was speaking with the Capitol Police, Bogoslavski called the employee’s cell phone and made additional threats to shoot others, and “to die suicide by cop.”

The affidavit alleges that the Capitol Police alerted law enforcement to locate Bogoslavski. The Cheverly Police Department responded to Bogoslavski’s residence where they took him into custody.  Bogoslavski was taken to a hospital and released the next day, whereupon he was arrested and detained in federal custody.

A search warrant was executed on February 2 at Bogoslavski’s home. Two loaded handguns were seized, along with additional rounds of ammunition. Further investigation revealed that after serving in the U.S. Army for over nine years, including two tours in Iraq and a tour in Afghanistan, Bogoslavski was released from duty.  He retired in March, 2013.

Bogoslavski faces a maximum sentence of five years in prison followed by three years of supervised release and a $250,000 fine.

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

United States Attorney Rod J. Rosenstein praised the U.S. Capitol Police, Cheverly Police Department, FBI, Prince George’s County State’s Attorney’s Office and Prince George’s County Police Department for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant United States Attorney Daniel C. Gardner and Special Assistant United States Attorney Nicholas J. Patterson, of the U.S. Department of Justice, National Security Division, who are prosecuting the case.

Baltimore, Maryland – On February 4, 2015, U.S. Magistrate Judge Timothy J. Sullivan sentenced Larry Eugene Harding, age 57, of Friendsville, Maryland, and Wallace A. Harward, age 58, of Forest Hill, Maryland, to pay a fine and restitution totaling $8,000 and $5,000, respectively, after the defendants pleaded guilty to violating Maryland black bear hunting regulations.  In addition, Magistrate Judge Sullivan sentenced Harding and Harward to five years of probation and ordered each to perform 25 hours of community service for the Maryland Department of Natural resources. During their probation, Harding and Harward are precluded from any guiding activity involving commercial hunting, and are precluded from personally hunting for three years.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police; and Honora Gordon, Regional Special Agent in Charge for the U.S. Fish and Wildlife Service.

“The combined penalties in this case represent one of the most substantial sentences for a Maryland wildlife poaching case in more than two decades,” said Colonel George F. Johnson of the Maryland Natural Resources Police.  “Because Maryland is a member of the Interstate Wildlife Violator Compact, Harding and Harward are also barred from hunting or guiding in 44 other states in the U.S. during the term of their suspensions.  In addition, Harward’s Maryland waterfowl outfitters license will be immediately revoked and he will be prohibited from renewing during the term of his license suspension,” added Superintendent Johnson.

According to their plea agreements, between 2008 and 2010, Harding who operated Harding’s Wild Mountain Herbs, Inc., and Harward, who operated Timber Creek Services, engaged in commercial hunting activities for American black bear, mostly in Garrett County, Maryland. Hunting for black bear is highly regulated in Maryland.  Restrictions included a prohibition on the use of bait to attract the bear, as well as requirements that hunters associated with each other on the same hunting permit remain within view of each other while hunting.

During the course of an undercover investigation by the Maryland Natural Resources Police and the U.S. Fish & Wildlife Service, law enforcement discovered that Harding and Harward were using bait to attract bears to locations where hunters – who had paid Harding and Harward to be guided in their pursuit of the bear – could more easily kill one of the animals.  The undercover officers also learned that the defendants were violating the Maryland regulations that required a sub-licensee on a black bear hunting permit to remain in visual contact with the licensee.

During the course of the investigation, undercover officers posed as clients, paying Harding and Harward for guided bear hunts. Their investigation found Harding and Harward were illegally baiting bears for paying clients, some of whom came from outside Maryland to hunt.

During the hunts, Harding and Harward placed apples to bait the black bears, then led the hunters to those locations. For example, on October 25, 2009, Harding directed the undercover officers to the Raven Rock area near Friendsville, showing them where the bears would likely show up the next day.  The following day, two hunters--one of them an undercover officer—taking part in a guided hunt led by Harding and Harward each killed a black bear over bait. The undercover officer shot his bear from a spot suggested by Harding, overlooking a pile of illegal bait. Harward also violated the terms of his hunting permit by remaining out of visual contact when the other hunter shot his bear.  The bears killed by the hunter and the undercover officer were subsequently taken to a cooler located in the building where Harding conducted his business.  Harding took photographs of the bears and the hunters, while Harward was recording the event with a video camera.  Inside the cooler where the bear carcasses and skins were placed, the undercover officers saw five plastic 25 gallon garbage cans full of apple skins and cores, consistent with the apple pieces in the bait pile seen by the undercover officers

United States Attorney Rod J. Rosenstein praised the Maryland Natural Resources Police and the U.S. Fish and Wildlife Service for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Paul Dunham, age 59, of Northampton, England, formerly of Montgomery County, Maryland, today to 4 years in prison, followed by three years of supervised release, for conspiring to commit wire fraud and for money laundering, in connection with a scheme in which he and his wife, Sandra Dunham, fraudulently requested reimbursement from their employer for purported business expenses, but were instead for mortgage payments on time shares in Barbados, luxury bedding for their home, a dog sofa and other personal expenses.  On January 29, 2015, Judge Grimm sentenced Sandra Dunham, age 58, to two months imprisonment, with a reduction of 42 days for time served, for the wire fraud conspiracy. Judge Grimm specified that the remaining 18 days of Mrs. Dunham’s sentence be served in home detention.  Judge Grimm also entered an order requiring the couple to forfeit and pay restitution of $1 million, the total losses incurred as a result of the scheme.

The sentences were 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 their guilty pleas, Paul and Sandra Dunham worked for PACE Worldwide which was located at various times in Maryland and North Carolina, and had a subsidiary in the United Kingdom named PACE Europe Ltd.   PACE produced parts for the repair and reworking of electronics for the military and others.  Paul Dunham held a number of executive positions, including president and chief operating officer.  Sandra Dunham was initially hired to work for the European subsidiary in the accounts department, and eventually became the director of sales and marketing for PACE Worldwide.  The Dunhams relocated from the United Kingdom to Maryland and then North Carolina, and were provided with corporate credit cards.

Between 2002 and 2009, Paul and Sandra Dunham fraudulently charged personal expenses to their corporate credit cards and submitted vouchers to PACE for reimbursement that falsely described the expenditures as business expenses.  For example, Paul Dunham represented that $3,007 had been spent on meals during business meetings, when in fact the money was spent on luxury bedding for his upscale North Carolina residence.  Sandra Dunham sought reimbursement for $8,397 which she represented as expenses incurred to cancel a vacation due to a business meeting, when these expenses were actually mortgage payments the couple made on two separate time share units the couple had purchased in Barbados.  Other personal expenses which were falsely described as business expenditures included personal legal fees, expensive furniture, a domed pet residence and a dog sofa.

The couple also fraudulently billed PACE Europe Ltd. for business expenses already paid by PACE Worldwide, obtaining duplicate reimbursements.

In addition, a substantial portion of the scheme involved Paul Dunham abusing a private position of trust to manage and direct others, including his secretary, in the execution of the scheme.  Moreover, in an attempt to conceal the scheme, Paul Dunham repeatedly forged receipts and invoices to create the false appearance that they were for business, rather than personal expenses.

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

Baltimore, Maryland – Derek Roberts, age 45, of Baltimore, Maryland, pleaded guilty today to conspiring to commit three armed robberies and using and brandishing a firearm during a crime of violence.  In total, Roberts admitted to acting as the gunman in four armed robberies.

The 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; and Baltimore County State’s Attorney Scott Shellenberger.

According to Roberts’ plea agreement, from September 2013 through October 11, 2013, Roberts conspired with Rodney Smith to commit armed robberies at a fast food restaurant, a drug store and a gas station.  Roberts also admitted robbing another store with co-conspirator Richard Bruzdzinski.

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

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

Roberts and the government have agreed that if the Court accepts the plea, Roberts will be sentenced to 228 months in prison.  U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for May 14, 2015 at 1:00 p.m.  Roberts remains detained.

Rodney Smith, age 51, and Richard Bruzdzinski, age 43, both of Baltimore, pleaded guilty to their roles in the robberies.  Smith is scheduled to be sentenced on April 23, 2015 at 9:30 a.m. and Bruzdzinski is scheduled to be sentenced on March 26, 2015 at 1:00 p.m.

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

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Marlow Bates, Jr., age 33, of Baltimore, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin. Bates was one of fourteen defendants indicted for conspiracy on September 24, 2013.

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.

“Marlow Bates, Jr., did not get the message after he was convicted in 2009,” said U.S. Attorney Rod J. Rosenstein. “Now he will spend the next decade in federal prison.”                                                                                                     

According to Bates’ plea agreement, Bates was intercepted over court-authorized wiretaps and other recordings arranging heroin transactions. In one of the recordings, Bates provided the co-conspirator with $7,000 for payment for heroin; in another, Bates stated that he distributed 50 grams of heroin a day. Bates was responsible for distributing between one and three kilograms of heroin.  Bates participated in the conspiracy while he was being supervised by a probation officer following his release from prison for a previous federal drug conviction.

In 2009, Bates was one of 24 defendants, including four correctional employees, indicted on federal charges for participating in the Black Guerilla Family gang. He pleaded guilty, admitting that he had conspired to distribute heroin and smuggle controlled substances into Maryland prisons, and was sentenced to serve 46 months in federal prison. Bates was released from federal custody on September 20, 2012.  On August 10, 2013, Bates was caught once again dealing heroin.

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

Baltimore, Maryland – Jonathan M. Sutton, age 36, of Chestertown, Maryland, pleaded guilty today to conspiring to unlawfully obtain firearms for a prohibited person.  Yesterday, Daniel P. Welch, age 36, of Crumpton and Chestertown, Maryland, the person for whom Sutton obtained the weapons, pleaded guilty to being a felon in possession of firearms.

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

According to their guilty pleas, Welch is a previously convicted felon and therefore is prohibited from possessing firearms.  Welch and Sutton have known each other since they were small children.  Between January 29, 2011 and January 31, 2014, Sutton obtained six firearms for Welch through private sellers and through “straw purchases” by Sutton from a federally licensed firearms dealer.  A “straw purchase” occurs when an individual, who is ineligible to lawfully purchase a firearm, such as a previously convicted felon, solicits another to conduct the transaction.  As part of the purchase, the middleman-buyer must complete the ATF Form 4473, which notifies the buyer that such purchases are unlawful. On the first page of the form, the buyer is asked: “Are 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.

Welch and Sutton admitted that on January 29, 2011, they visited four ATMs in Stevensville, Maryland, near a federally licensed firearms dealer, and Welch withdrew approximately $1,700 in cash.  Welch and Sutton then went to the firearms dealer and selected firearms for Sutton to purchase for Welch.  Sutton purchased a Smith & Wesson MP5-22, a Mossberg Persuada 500, and a Century Arms SKS.  Sutton completed Form 4473 indicating the he was the actual buyer of the firearms and was not acquiring the firearms for another person.  On February 1, 2011, Sutton picked up the guns, which he then transferred to Welch.  On February 11, 2011, Sutton purchased a Marlin rifle from the firearms dealer, again completing the Form 4473 and falsely indicting that he was buying the gun for himself.  In 2012, Sutton acquired a Remington Arms 597 and a Ruger Single Six, both .22 caliber, through private purchases.  Those guns were subsequently possessed by Welch.

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

Welch faces a maximum of 10 years in prison for being a felon in possession of a firearm, and Sutton faces a maximum sentence of five years in prison for the conspiracy.  Chief Judge Blake has scheduled sentencing for Welch on April 7, 2015 at 9:15 a.m., and for Sutton on April 16, 2015, at 9:00 a.m.

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr., sentenced Rodney Russell, age 52, of Baltimore, today to nine years in prison followed by five years of supervised release for conspiracy to distribute and possess with the intent to distribute heroin.

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

According to Russell’s plea agreement, beginning sometime in July 2012 and continuing through November 2013 and after, the Russell conspired with others to obtain and distribute heroin in and around the Park Heights and Belvedere neighborhood of Baltimore.  During the period of the conspiracy, the investigation showed that Russell was a member of the Black Guerrilla Family (BGF), and received money and drugs from the street level drug distribution shop operated by other members of BGF in the Park Heights and Belvedere neighborhood, as well as selling his own heroin at that location.

During the time of the conspiracy Russell is responsible for the distribution of between one and three kilograms of heroin.

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

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Saleh H. Fakhoury, age 49, formerly of Lutherville, Maryland, today to four years in prison, followed by nine months of home detention as part of three years of supervised release, for his participation in a scheme to destroy his Maryland home by fire to collect $3 million in insurance proceeds. Judge Bennett also ordered Fakhoury to pay restitution of more than $800,000.                    

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to his plea agreement and court documents, Fakhoury owned a home in Lutherville Maryland and in 2007, bought a second home in Florida.  By March 2009, Fakhoury owed over $200,000 to credit card companies, utilities and other service providers, as well as over $1.7 million to banks for the mortgages on the properties he owned.

Co-conspirator Hammoud worked for Fakhoury at Alfeo’s, a pizza restaurant owned by Fakhoury. Fakhoury and Hammoud schemed to destroy Fakhoury’s home in Lutherville by arson.  Fakhoury intended to collect the insurance and pay off his debts.  Fakhoury agreed to pay $70,000 to have his home set on fire: $20,000 to be initially paid to Hammoud; and later when the insurance money was received, $50,000 to be paid to others that Hammoud hired to set the fire.

On March 12 or 13, 2009, a fire was deliberately set at the Lutherville home.  The fire self-extinguished and minimal damage was sustained. On March 14, 2009, a second fire was deliberately set using paint thinner.  The home was completely destroyed. Fakhoury paid Hammoud the agreed upon $20,000 to have the house set on fire.

In September 2009, Fakhoury executed a sworn proof of loss to collect $3,155,197 in insurance.  The loss statement was false, in that it claimed items were destroyed or damaged in the fire when, in fact, the items were not consumed in the fire, and the fire was intentionally set.  The insurance company denied the claim, but paid $828,773 to the mortgagor of the Maryland home.

On December 2, 2011, Fakhoury filed a civil action against the insurance company in an effort to recover monies under the insurance policy, and claim over $3 million in compensatory damages.  As part of his plea agreement, Fakhoury has agreed to dismiss the lawsuit.

Hassan Hammoud, age 60, of Dundalk, Maryland pleaded guilty to his participation in the conspiracy and was sentenced to 63 months in prison, and ordered to pay restitution of $828,773.

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore County Police Department and IRS - Criminal Investigation for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Judson T. Mihok, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Ali Saboonchi, age 34, a U.S. citizen residing in Parkville, Maryland, today to two years in prison, followed by one year of supervised release, for conspiracy and seven counts of exporting American manufactured industrial products and services to Iran.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

       In 1995, the President of the United States imposed economic sanctions against Iran, including a trade embargo (the Iran Trade Embargo).  In order to implement the Iran Trade Embargo, the U.S. Department of the Treasury promulgated regulations that prohibit the export, sale or supply to Iran of any goods or services from the United States without prior authorization.

According to evidence presented during the two week trial, from November 2009 to 2013, Saboonchi conspired with others to evade the Iran Trade Embargo by exporting American manufactured industrial goods and services to Iranian businesses.  A co-conspirator, located in Iran, had Saboonchi in Maryland create and operate Ace Electric Company to obtain goods to be sent to Iran.  The co-conspirator, who operated businesses in Tehran, Iran and the United Arab Emirates (UAE), solicited purchase orders and business from customers in Iran for industrial parts and components manufactured in America, including:

• two cyclone separators, which are used in pipelines to separate impurities such as sand from liquids;
• six thermocouples, which are used to measure temperatures of liquids and gasses in industrial applications in the chemical and petrochemical fields;
• 10 stainless steel filter elements, which are used primarily in the oil and gas industry and can be used in water plants, hydrocarbon plants and nuclear plants;
• four bypass filters;
• three flow meters, which are used primarily in industrial applications to measure the flow of water but could be adjusted to measure other liquids and gasses;
• three actuator springs, which are used to control the flow rate of a liquid;
• numerous industrial parts, including hydraulic valves and connectors; and
• liquid pumps and valves, which have oil, gas, energy, aerospace and defense applications.

Trial evidence showed that Saboonchi obtained price quotes and paid for these items, and took delivery of most of the goods, which he then shipped to entities in the UAE and China provided by his co-conspirators in Iran.  The co-conspirators would repay Saboonchi for the goods and further arrange for the entities in the UAE and China to send the goods on to them and their customers in Iran. Saboonchi did not obtain authorization to export the products.

Co-defendants Arash Rashti Mohammad, Mehdi Mohammadi, and Ehsan Naghshinea are citizens and residents of Iran.  They were indicted, along with Saboonchi, on charges arising from the conspiracy, and are currently fugitives.

United States Attorney Rod J. Rosenstein praised the FBI and HSI Baltimore for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Christine Manuelian and Kristi O’Malley, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Tyrone Darnell Butler, a/k/a “Tye,” and “Bone,” age 44, of Mechanicsville, Maryland today to 10 years in prison: eight years in prison followed by four years of supervised release for conspiring to distribute and possession with intent to distribute cocaine base; and an additional two years in prison for violating his supervised release for a previous federal drug conviction.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and St. Mary’s County Sheriff Tim Cameron. 

According to a statement of facts to which Butler agreed in court, on four separate occasions from July to September 2010, Butler sold, or arranged with a co-conspirator to sell, a total of 36.8 grams of crack cocaine to a confidential source.

Previously on February 13, 2002, Butler was sentenced in federal court in Maryland to 70 months imprisonment followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine.  Butler’s period of supervised release

was scheduled to expire on March 15, 2011. On January 29, 2010, Butler engaged in conduct which resulted in a guilty plea in the Circuit Court for St. Mary’s County to negligent manslaughter, possession of controlled dangerous substances, attempting to elude police by failing to stop, and attempting to elude police in an official police vehicle.  Accordingly, Butler violated his terms of federal supervised release.

United States Attorney Rod J. Rosenstein praised the DEA and St. Mary’s County Sheriff’s Office for their work in the investigation and thanked Assistant U.S. Attorney Leah Jo Bressack, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Brian Hooper, age 42, of Woodbridge, Virginia, today to 27 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a scheme to steal over $1 million from a consulting company. Judge Hazel entered an order that Hooper forfeit and pay restitution of $1,031,571.96, the loss resulting from his conduct.

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

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

In 2008, Hooper introduced McCumbie to a co-conspirator, who was not a client of the consulting company. Between June and December 2008, McCumbie caused the consulting company to issue six fraudulent refund checks totaling $121,081.22 to the co-conspirator in exchange for a share of the check proceeds. The co-conspirator shared the proceeds from five of these fraudulent checks with Hooper and McCumbie.

In 2009, Hooper introduced McCumbie to defendant Leonard Smedley, who was also not a client of the consulting company. From February 2009 to October 2013, McCumbie caused the consulting company to issue 42 false refund checks totaling $910,490.74 to Smedley in exchange for Smedley sharing the check proceeds with Hooper and McCumbie.

Leonard Smedley II, age 35, of Capitol Heights, Maryland; Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania; and Janice McCumbie, age 45, of Marydel, Maryland; previously pleaded guilty to their participation in the conspiracy.  Smedley was sentenced to 18 months in prison and ordered to pay restitution of $910,490.  Gayleard was sentenced to 21 months and ordered to pay restitution of $217,695.57.  McCumbie is scheduled to be sentenced on March 12, 2015.        

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

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Nicholas Paul Pedone, age 41, of Abingdon, Maryland, today to 30 months in prison followed by a lifetime of supervised release for possessing child pornography. Judge Bennett ordered that upon his release from prison, Pedone must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to his plea agreement, in March 2013 an agent in the Violent Crimes Against Children Section of the FBI was reviewing the email account of a user that contained child pornography and saw that this user had been corresponding with Pedone by email. One of the user’s emails to Pedone contained two images depicting naked prepubescent and early pubescent males and females.

On October 18, 2013, the agent executed a search warrant on Pedone’s email account which revealed that Pedone had sent and received thousands of emails containing depictions of children engaged in sexually explicit conduct, and that the emails and image files were saved in Pedone’s email account. These emails were sent and received between Pedone and dozens of other email accounts.

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

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

Baltimore, Maryland – David Lawrence Handel, age 26, of Columbus, Ohio pleaded guilty yesterday to drug trafficking charges in connection with the sale of drugs via Silk Road, an online, international marketplace for users to buy and sell controlled substances, false identifications and other contraband over the Internet.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

 According to his plea agreement, Handel contacted buyers of methylone, and other synthetic drugs via Silk Road.  Handel accepted payment electronically through Silk Road and shipped drugs via the U.S. Postal Service to customers in Maryland, throughout the United States and in foreign countries.

In 2012, federal agents in Maryland assigned to an Organized Crime Drug Enforcement Task Force made several undercover purchases of drugs, including methylone, from Handel.  Handel shipped the methylone to Maryland.

On August 21, 2012, U.S. Customs and Border Protection intercepted a package of synthetic drugs coming from China and addressed to Handel in Columbus, Ohio.  Handel picked up the package of synthetic drugs the next day from his local post office.  Federal agents arrested Handel after leaving the post office with the drugs. Handel also had a Glock firearm strapped to his ankle.  Another firearm was seized from his car.  Agents recovered additional drugs, including over 600 grams of methylone from Handel’s apartment, and three more firearms.

At the time of his arrest, Handel confessed to being a longstanding drug trafficker on the Silk Road website.  He admitted to buying the drugs from a supplier in China, and having them shipped to him via U.S. mail.  Handel admitted to spending $4,800 on his most recent shipment from China.

Handel faces a maximum sentence of 20 years in prison for conspiring to traffic drugs; and a minimum of five years and a maximum of life in prison for using and carrying a firearm in relation to drug trafficking.   Chief U.S. District Judge Catherine C. Blake scheduled sentencing for May 15, 2015 at 12:00 p.m.

In a similar case, on September 5, 2014 Chief Judge Blake sentenced a former drug vendor on the Silk Road website, Jacob Theodore George IV, age 33, of Edgewood, Maryland, to six years in prison for conspiracy to distribute and possess with intent to distribute drugs, including heroin.

United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA, U.S. Postal Inspection Service, U.S. Secret Service and IRS-Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who is prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – The Hachiuma Steamship Co., LTD pleaded guilty today to violating the Act to Prevent Pollution from Ships (APPS), arising from the failure to maintain an accurate oil record book concerning the illegal disposal of oil residue and bilge water overboard the cargo vessel M/V Selene Leader.  Chief U.S. District Judge Catherine C. Blake sentenced Hachiuma Steamship today to pay $1.8 million, and placed it on probation for three years during which it is to develop an environmental compliance program.

The plea and sentence were 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; and Coast Guard Captain Kevin Kiefer, Captain of the Port of Baltimore.

“The Coast Guard is trying to send a message to the maritime industry that environmental compliance is not optional and that deliberate violators will be apprehended.  The sentence fits the crime because it includes a requirement that these defendants develop and implement a comprehensive environmental compliance program that will be ensured by outside auditors.  Companies that get caught can expect a much closer look,” said Coast Guard Captain Kevin Kiefer, Captain of the Port of Baltimore.

The M/V Selene Leader 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.  Noly Torato Vidad was the chief engineer, and Ireneo Tomo Tuale was the first engineer on board the vessel.

According to the plea agreement, in January 2014, engine room crew members of the vessel 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 U.S. Coast Guard.

The M/V Selene Leader arrived in Baltimore on January 29, 2014 with an oil record book that failed to include entries reflecting the discharge of oily water and oily waste directly into the ocean.  The Coast Guard boarded the ship for inspection the next day.  During the inspection, Mr. Vidad tried to 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.  

Of the total $1.8 million penalty paid at today’s sentencing, $450,000 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, provided a video showing the illegal transfers of oily wastes and assisted in the Coast Guard’s investigation of the case.

Noly Torato Vidad, age 47, and Ireneo Tomo Tuale, age 63, both of the Philippines, previously pleaded guilty to their participation in the scheme and are scheduled to be sentenced in federal court in Baltimore on February 20 and March 3, 2015, respectively.

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.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Robert Rednowers, age 44, of Baltimore, today to 114 months in prison followed by three years of supervised release for bank 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 Rednowers’ plea agreement, he committed three bank robberies between November 21 and December 4, 2013.  In each robbery, Rednowers provided a note to the teller stating the he had a gun and threatening to shoot if the teller did not provide the money he demanded.

Specifically, Rednowers robbed the Suntrust Bank in Parkville, Maryland, on November 21, 2013, stealing $1,810; and robbed the M&T Bank on East Joppa Road on November 26, 2014 stealing $3,645 and again on December 4, 2013, stealing $4,150.  The surveillance photos from each robbery clearly depict Rednowers.

Rednowers was previously convicted on federal bank robbery charges in 2001.

United States Attorney Rod J. Rosenstein commended the FBI and 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 Bonnie S. Greenberg, who prosecuted the case.

Baltimore, Maryland - Jagveer Singh, age 55, of Clarksville, Maryland, pleaded guilty today to charges of securities fraud.

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

Singh was an investment advisor who provided investment advice and services to clients in Maryland through two companies he owned, A&S Financial Services, Inc. and later, Synergia Capital Management, LLC.  A&S provided financial planning, investment advice and tax services to affluent investors and small businesses.  Synergia provided consulting and advisory services in the areas of financial planning, investment advice and business development and management.  Both companies were located in Clarksville.

Singh has a Ph.D. in molecular biology, an MBA degree from The Johns Hopkins University, and worked as a licensed stockbroker from 2000 to 2002 at a large financial investment company.

Singh pleaded guilty to the one count indictment which charges that from January 2008 to June 2010, Singh altered a client’s monthly statements from an on-line brokerage firm that executes purchases and sales of securities, before providing those statements to the client, in order to conceal investment losses.  Singh increased the market value shown on the monthly statement for numerous securities.   In all, Singh altered over 24 monthly statements to hide between $224,747.34 and $53,186.76 in losses in any given month.  In addition, during the time when Singh was altering his client’s monthly statements, the account suffered a total loss of about $310,310.70.  During this time, Singh obtained $14,382.52 in commissions from the client.  

The government seeks forfeiture of $14,382.52, and restitution to Singh’s former client of $310,310.70. 

Singh faces a maximum sentence of 25 years in prison followed by three years of supervised release and a fine of $250,000.  U.S. District Judge George L. Russell III has scheduled sentencing for Singh on May 21, 2015 at 9:30 a.m.

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

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Ramon Ingram, age 28, of Baltimore, today to four years in prison, followed by five years of supervised release, for bank fraud and aggravated identity theft.  Judge Bennett also ordered Ingram to pay restitution of $191,958.39.

Judge Bennett sentenced co-defendants Quincy Jackson, age 27, and Marlon King, Jr., age 28, both of Baltimore, each to two years in prison, followed by five years of supervised, and ordered them to pay restitution of $225,626.32.  Jackson was sentenced on January 26, 2015 and King was sentenced on January 29, 2015.

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

According to his plea agreement and other court documents, from April 2012 through December 2013, Ingram conspired with co-defendants Quincy Jackson and Marlon King, Jr., to defraud financial institutions by using credit cards issued to customers of the financial institution, without the customers’ knowledge or permission, to purchase gift cards and other items at various retail locations.  Ingram recruited Jackson and King to participate in the scheme.

For example, on April 15, 2012, Ingram and Jackson entered a Rite Aid located on Shipping Place in Baltimore County, where Ingram used a Susquehanna Bank card and a USAA Bank credit card, each in the name of a different victim, to make purchases.            On June 19, 2012, Ingram and Jackson entered a Rite Aid located on W. Lexington Street in Baltimore, and Ingram fraudulently used a Discover credit card and a VISA credit card to make purchases.

On October 1, 2013, Jackson and King went to a department store located on Reisterstown Road in Baltimore, and fraudulently used a gift card to make purchases.  The gift card was purchased at a Rite Aid located on Padonia Road in Baltimore County, using a Susquehanna credit card belonging to another individual, without the victim’s knowledge or permission.

According to court documents, Ingram and his co-conspirators used the identities of over 250 victims to make fraudulent purchases.  The total loss caused by the conspiracy to Rite Aid was $191,958.39.

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, Baltimore Police Department and Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Zachary Myers, who are prosecuting the case.

Baltimore, Maryland – A federal grand jury indicted Jasper Buck, age 59, formerly of Westminster, Maryland and elsewhere including Sanford and Lake Mary, Florida, for mail fraud arising from an investment fraud scheme.  The indictment was returned on January 21, 2015 and unsealed today upon the arrest of the defendant.  An initial appearance is expected to be scheduled in federal court in the Middle District of Florida today.

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

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

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

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

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

As a result of the scheme, Buck obtained at least $1,961,364 from the victims. The indictment seeks forfeiture of at least this amount. 

Buck faces a maximum sentence of 20 years in prison and a $250,000 fine on each of the five counts of mail fraud.

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

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

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

Baltimore, Maryland – A federal jury convicted Howard James Clem IV, a/k/a “Jamie,” age 33, of Pasadena, Maryland, late yesterday for conspiracy to distribute and receive child pornography, and for receipt and possession of child pornography. U.S. District Judge Marvin J. Garbis ordered that Clem be immediately taken into custody.

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

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

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

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

Clem faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison for conspiracy to distribute and receive child pornography and for each of two counts of receipt of child pornography; and a maximum of 20 years in prison for possession of child pornography, each followed by up to lifetime of supervised release.   U.S. District Judge Marvin J. Garbis has scheduled sentencing for Clem on May 27, 2015 at 10:00 a.m.

Erin Elizabeth Mali, age 32, of Arnold, Maryland, previously pleaded guilty to conspiracy to distribute and receive child pornography, and to distribution of child pornography.  Mali is also detained and Judge Garbis has scheduled her sentencing for March 3, 2015, at 1:00 p.m.

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

United States Attorney Rod J. Rosenstein commended the FBI and Anne Arundel County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Leo J. Wise, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Travis Lamont Phelps, age 46, of Greenbelt, Maryland today to 25 months in prison followed by three years of supervised release for misuse of a social security account number and aggravated identity theft.  Judge Chasanow also ordered Phelps to pay restitution of $5,480.

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 - Office of Inspector General, Philadelphia Field Division; and Lt. Colonel Anthony C. Satchell, Acting Superintendent of the Maryland State Police. 

According to his plea agreement, Phelps was wanted in North Carolina for trafficking Ecstasy.  On January 8, 2014, when law enforcement went to Phelps’ apartment on Edmonston Road, Phelps identified himself as Christopher James Williams and provided Virginia and Maryland identification cards, as well as a social security card in that name.  The date of birth on the identification cards and the social security number belonged to Christopher James Williams, a real person who died in California in 1982.

Law enforcement interviewed Phelps, who admitted that he was not Christopher Williams and confirmed his identifying information, including his date of birth.  Phelps knew that he was wanted on an outstanding North Carolina warrant and admitted that he assumed the Williams identity after researching possible alternate identities on the internet and determining that Williams was deceased.  Phelps obtained the Maryland identification card in the Williams identity on December 12, 2013, after providing the social security number card, a birth certificate, and other documents in the Williams identity.

Between 2007 and the time of his arrest in 2014, Phelps also applied for credit from numerous companies in the Williams identity.  The total past due balance on those lines of credit at the time of his arrest was at least $5,480.

United States Attorney Rod J. Rosenstein praised the Social Security Administration - Office of Inspector General and the Maryland State Police for their work in the investigation and thanked Special Assistant U.S. Attorney Lauren E. Perry and Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the case.

Baltimore, Maryland - Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland, and his brother, Salim Yusufov, age 43, of Reisterstown, Maryland, pleaded guilty today to a conspiracy to traffic over $6.6 million in contraband cigarettes.  Rakhamimov also pleaded guilty to trafficking in contraband cigarettes and distribution of oxycodone.  Yusufov also pleaded guilty to health care fraud and to receipt and delivery of misbranded drugs.

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; 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, and his brother, Salim Yusufov, 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. Salim Yusufov, who owned Health Way Pharmacy, received more than $81,000 in kickbacks for brokering the contraband cigarette transactions with the undercover FBI agent. These transactions included thousands of cartons of contraband cigarettes.  The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes).  The total tax evaded was more than $1 million.  

As part of the criminal scheme, Rakhamimov also distributed pills containing oxycodone, with a total weight of 96.45 grams.  The oxycodone and other drugs were distributed to the undercover FBI agent as partial payment for contraband cigarettes and in exchange for cash.  During the drug transactions, Rakhamimov received $356,123 in cash in exchange for the various drugs.

According to his plea agreement, Rakhamimov and a co-conspirator laundered the proceeds of the contraband cigarette sales through an international money laundering operation that wired funds from banks located in Latvia, Cyprus, and Estonia, to a bank in New York, disguising the money as legitimate business payments for medical equipment or supplies.  From December 27, 2012 through September 5, 2013, Rakhamimov and his co-conspirator wired a total of $681,450 through 12 such transactions.  Rakhamimov and his co-conspirator received a fee of approximately 8% for the money laundering transactions.

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

According to his plea agreement, Adam Azerman transported contraband cigarettes from Maryland to Brooklyn, using a van registered in his name.  Azerman picked up the cigarettes from Rakhamimov’s residence and other locations, then drove his van to Brooklyn, New York, where he met Shamil Novakhov and provided him with the keys to the van.  Novakhov admitted that he would take the van and return a few hours later, after he unloaded the contraband cigarettes into a nearby warehouse.  Novakhov’s nephew, Ruslan Ykiew, admitted that he would also 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.

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

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

Rakhamimov and Yusufov face a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes.  Elmar Rakhamimov also faces a maximum of 20 years in prison for distribution of oxycodone, and five years in prison for trafficking in contraband cigarettes. Salim Yusufov also faces a maximum of 10 years in prison for health care fraud, and one year in prison for receipt and delivery of misbranded drugs.  U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Rakhamimov and Yusufov for April 28 and April 30, 2015, respectively, each at 1:00 p.m.

Adam Azerman, age 59, of Pikesville, Maryland, and Shamil Novakhov, age 58, and Ruslan Ykiew, age 39, both of Brooklyn, New York, previously pleaded guilty today to conspiracy to traffic in contraband cigarettes 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 Ellen L. Hollander, sentenced Tony Derrell Bunch, age 32, of Baltimore, today to 110 months in prison followed by three years of supervised release for bank robbery.

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

According to Bunch’s plea agreement, between late March and mid-April 2014, Bunch engaged in a string of bank robberies in the Baltimore area.  In each robbery, Bunch presented the teller with a note stating that he had a gun and threatening to shoot if the teller did not comply with his demands for money.

Specifically, Bunch admitted that he robbed: the Wells Fargo Bank in the 6300 Block of York Road in Baltimore, on March 25, 2014, stealing $4,029.01; the Bay Bank in the 2600 block of Annapolis Road in Hanover, Maryland, on April 4, 2014, stealing $2,000; and the Wells Fargo Bank in the 4800 block of Eastern Avenue in Baltimore, on April 14, 2014, stealing $3,333.

After the robbery on April 4, 2014, Bunch left the demand note at the bank and forensic examiners were able to obtain a fingerprint.  The forensic examiners were able to match the print obtained from the note with a known print of Bunch.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Anne Arundel County Police Department; Howard County Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Darrius Carr, age 22, of Severn, today to 25 years in prison followed by a lifetime of supervised release for producing child pornography arising from his sexual assault of a toddler on March 7 and 11, 2014. Judge Hollander ordered that upon his release from prison, Carr 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; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.

According to his plea agreement, in March 2014, Carr did not have a place to stay.  Carr moved in with a family in order to provide daycare for the couple’s young children on March 6, 2014.

The next day, while the parents were at work, Carr was alone with the children.  During a four minute time span, Carr produced six photos and a video of himself and the girl engaged in sexually explicit conduct.

On March 11, 2014, Carr was again left alone with the children.  Carr produced another video of himself and the victim.  The video is a close up of the victim’s genitals, and during the video Carr touches her.

Additionally, since at least 2012, Carr used his email accounts, online storage accounts, and Instagram account to store and distribute child pornography.  The distributed files of child pornography included more than 600 images of prepubescent minors, and videos.    

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, Anne Arundel County Police Department and Anne Arundel 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.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Olusegun Adebiyi, age 42, of Lanham, Maryland, today to 39 months in prison followed by three years of supervised release for wire fraud and aggravated identity theft arising from a fraud scheme to obtain precious metals using stolen personal information of two victims.  Judge Chasanow also entered an order that Adebiyi pay $122,500 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; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to his plea, on July 3, 2013, Adebiyi and his co-schemers faxed a copy of a fraudulent Maryland driver’s license in the name of a victim to Gold Bullion International (GBI) to complete the process of opening a trading account.  Between July 23 and August 27, 2013, Adebiyi and his co-schemers fraudulently purchased precious metals from GBI worth $122,500 in the victim’s name, and caused GBI to deliver those precious metals to an address in Washington, D.C.  The payment was made by transferring money from the victim’s bank account without his knowledge.

Similarly, on September 26, 2013, Adebiyi and his co-schemers faxed a copy of a fraudulent Maryland driver’s license in the name of another victim to GBI to complete the process of opening a trading account in this second victim’s name.  The fax was sent from a store in College Park, Maryland and Adebiyi’s activities were captured on video.  Shortly thereafter, GBI requested that the documents be resubmitted.  On October 9, 2013, Adebiyi sent the same information to GBI from the same store which was also captured on video.  Thereafter, Adebiyi attempted to purchase precious metals worth $44,833.50 in the name of the second victim and attempted to cause GBI to deliver those items to an address in Washington, D.C.

On November 6, a controlled delivery of the precious metals to the Washington D.C. address was attempted through UPS.  Law enforcement observed the defendant drive into the area shortly before the delivery was scheduled.  The package was recalled because the delivery address was incomplete.  Law enforcement saw Adebiyi leave the area approximately 15 minutes after the package was recalled.  GBI, working with law enforcement, rescheduled the delivery for November 14, 2013. Law enforcement again observed Adebiyi drive into the area shortly before the delivery was scheduled.  The UPS driver went into the apartment building carrying a package and was observed exiting the building carrying the same package.  Law enforcement arrested Adebiyi as he was leaving and seized pieces of paper containing the UPS package tracking numbers for the November 14 delivery, the second victim’s identifying information and the UPS tracking numbers for the November 6 delivery.

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 FBI and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Lawrence Kutrelle White, age 29, of Ft. Washington, Maryland, today to three years in prison followed by three years of supervised release for being a felon in possession of a firearm and for theft of government property.

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

According to his plea agreement, on October 29, 2013, White, along with unknown co-conspirators, broke into three vehicles owned and operated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), causing approximately $1,180.70 in damages to the ATF vehicles.  White and his co-conspirators stole tactical vests, portable radios, a taser, night vision goggles, ammunition, rifle and pistol magazines loaded with ammunition, and other items belonging to ATF, worth at least $30,503.87.

In addition, White and the unknown co-conspirators stole approximately $650 worth of personal property belonging to ATF Special Agents.

On October 29, 2013, some of the property stolen from the ATF vehicles was found at a park in Bowie, Maryland.

On November 29, 2013, White, on a recorded jail call, directed another individual to retrieve a .40 caliber pistol belonging to White from a residence.  White had at least three prior felony theft convictions, which made him ineligible to possess a firearm and ammunition.

On January 6, 2014, members of law enforcement executed a search warrant at a home in Bowie and recovered some of the property stolen from the ATF vehicles.  The value of the stolen property that was recovered from the park and the home was approximately $19,772.33.

United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Nicolas A. Mitchell, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Mervyn A. Phelan, Sr., age 74, of Newport Beach, California, today to five years in prison, followed by three years of supervised release, for a wire fraud conspiracy, wire fraud and obstruction of justice from a $17.4 million investment fraud scheme.  Judge Motz ordered Phelan to forfeit and pay restitution of $17,414,000.

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

According to his plea agreement and court documents, Phelan and others were part of a fraudulent scheme carried out by Brian McCloskey and Patrick Belzner.  McCloskey owned a real estate development business known as the McCloskey Group, LLC.  Belzner, a home builder, began working with McCloskey in late 2008 or early 2009.  Mervyn Phelan operated IAG Underwriters (IAGU) which maintained an office in Newport Beach, California.  IAGU was in the business of underwriting loan applications submitted by real estate developers and then locating project financing from banks and other financial entities.  Phelan employed Gregory Grantham, an attorney who held the position of IAGU’s general counsel; and Sean Krondak who was the Vice President – Loan Officer & Underwriting. IAGU began working with the McCloskey Group to locate sources of financing for its projects in about 2009.

Beginning in 2009 and continuing through June 2011, McCloskey and Belzner persuaded a number of private lenders to loan funds to the McCloskey Group to establish that it had cash reserves or “liquidity” in connection with its efforts to secure funding for real estate development projects through IAGU.  McCloskey and Belzner falsely represented that the funds would be maintained in an escrow account under the control of Kevin Sniffen, an attorney and escrow agent in Baltimore County; that the funds would not be used for any other purpose; and that the money would be returned to the lender, either upon the funding of the loan or after a specified period of time.  In return for this temporary use of the lender’s funds, McCloskey and Belzner promised to pay substantial rates of interest.

Beginning in the late summer of 2010, Phelan and Grantham cooperated with Belzner and McCloskey in their scheme to defraud by (1) making false representations to help persuade lenders to make loans to the McCloskey Group in order to establish “liquidity”; (2) telling the lenders that the funds had to be placed in an escrow account controlled by Sniffen; and by (3) making false representations to dissuade previous escrow account lenders from demanding the return of their funds when the original time period established for the loan expired without the McCloskey Group obtaining financing for the project in question.  In particular, Phelan and Grantham repeatedly advised escrow account lenders that funding for a particular project was imminent when they knew this was not the case, and in one case falsely represented that they were holding millions of dollars in escrow funds tendered by one group of lenders. Krondak sent emails and other communications that he knew contained false information to victim lenders directly, or to Belzner, McCloskey and Sniffen to use in their contacts with the victim lenders.

Once the lenders transferred their funds into the escrow accounts, Belzner directed McCloskey, Sniffen, and other conspirators to remove those funds from the escrow accounts without the knowledge of the lenders.  Belzner and McCloskey then used the stolen funds to repay earlier loans to the McCloskey Group and to Belzner personally; to meet ongoing business expenses of the McCloskey Group; and to support Belzner’s life-style.  The total losses resulting from the scheme were approximately $20 million.

Phelan and Grantham also obstructed grand jury proceedings from September to December, 2012, while a grand jury in Maryland was continuing the investigation of the fraud scheme.  On September 26, 2012, FBI agents served Phelan and Grantham with grand jury subpoenas requiring the production of documents relating to the scheme.  By this time, it was publicly known that Belzner had been indicted for conspiracy to commit wire fraud.  Phelan and Grantham agreed that they would not produce certain emails in their possession, because those emails would reveal their cooperation with Belzner and McCloskey in the scheme.  The emails that Phelan and Grantham were willing to produce were provided to the FBI on November 19, 2012; incriminating emails were not produced or were deleted from their computers and compact discs.

Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Selbyville, Delaware, was sentenced to 15 years in prison for wire fraud conspiracy, wire fraud and tax evasion, and was ordered to pay $19.805 million in restitution.  Gregory E. Grantham, age 57, of Oceanside, California, was sentenced to five years in prison and ordered to forfeit and pay restitution of $17.4 million.   Brian McCloskey, age 42, of Baltimore, and Kevin Sniffen, age 53, of Phoenix, Maryland, were sentenced to 41 months in prison and three years in prison, respectively, and both ordered to pay restitution of $15.850 million.

This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

United States Attorney Rod J. Rosenstein thanked the FBI and IRS – Criminal Investigation for their work in the investigation.  Mr. Rosenstein praised Assistant U.S. Attorneys Jefferson M. Gray and Kathleen Gavin, who prosecuted the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Kier Hicks, a/k/a “Mouse,” age 41, of Baltimore, today to 94 months in prison followed by three years of supervised release for bank fraud conspiracy and aggravated identity theft, arising from a scheme to use personal identity information to open instant credit accounts at retail stores and buy high value merchandise. Chief Judge Blake also entered an order that Hicks pay restitution of $194,674.60.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Lt. Colonel Anthony C. Satchell, Acting Superintendent of the Maryland State Police; and Chief Gary Gardner of the Howard County Police Department.

According to his plea agreement, from May 8 to August 17, 2012, Hicks obtained compromised identity information from individuals over the internet, and paid for the information by sending money transfers to Eastern European countries.  Hicks then obtained credit reports for the identities.

Hicks recruited individuals whom he knew and either took pictures of them or had them provide passport photos.  He used these photos to create counterfeit identification documents, usually state driver’s licenses from the state where the individuals resided. These counterfeit licenses contained the personal identity information of the victim, but the pictures of his co-conspirators.  In addition, he manufactured a counterfeit credit card bearing the embossed name of the victim.

Hicks provided his workers with the counterfeit driver’s licenses and credit cards, as well as information about the victim.  Initially, new recruits “shadowed” an experienced participant for about a week to learn the scheme before they began to conduct transactions themselves.  Co-defendants Ashley Avery, Tyrone Gregg, and at least three other individuals worked with Hicks. They used the identity information and counterfeit documents to apply for store “instant credit” accounts.  If approved, they immediately purchased items up to the credit limit allowed.  Some of the items purchased were given to Hicks, and some were retained by the co-conspirators. Hicks resold the fraudulently purchased items at a discount and gave his co-conspirators a percentage of the money he received.

During the course of the conspiracy, Hicks and his co-conspirators obtained credit in excess of $400,000, using the identity information of more than 50 institutional and individual victims.  The Court determined at today’s sentencing that the scheme resulted in an actual loss of $194,674.60.

Hicks also made counterfeit identifications for others engaged in separate fraud schemes, including individuals prosecuted in U.S. v. Bratton-Bey, et al., Case No. 12-CR-04621, with actual losses of over $1.2 million, and U.S. v. Lavon Caldwell, Case Nos. 07-CR-00293 and 13-CR-04180, with actual losses of approximately $50,000.

Tyrone Kevin Gregg, age 45, of Baltimore; and Ashley Nicole Avery, age 28, of Baltimore, previously pleaded guilty to their participation in the scheme.  Gregg was sentenced to 54 months in prison and ordered to pay restitution of $139,990.45.  Sentencing is scheduled for Avery on March 11, 2015 at 11:00 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 U.S. Secret Service, Baltimore and Howard County Police Departments and the Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.

Baltimore, Maryland – A federal grand jury has indicted Angela M. Blythe, age 51, of Oakland, Maryland, on charges of conspiracy, bank fraud and making a false statement to a bank.  The indictment was returned on December 16, 2014, and unsealed today.

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

According to the four count indictment, Blythe was an attorney licensed to practice in Maryland and West Virginia, with an office in Oakland, Maryland.  The indictment alleges that Blythe, who also acted as a settlement attorney for real estate transactions, participated in a scheme with Samuel R. VanSickle, to defraud financial institutions.  Specifically, the indictment alleges that Blythe prepared deeds, mortgages and notes for VanSickle in false identities, then recorded those fraudulent documents in the official land records of Garrett County, Maryland and Preston County, West Virginia, which concealed VanSickle’s ownership and control of the properties.  Blythe also allegedly conducted property settlements in which VanSickle participated as buyer, seller and/or borrower through the use of false identities, which Blythe concealed from the lenders. The indictment alleges that Blythe failed to conduct the settlement transactions as described on the settlement statement and paid over the seller’s proceeds as VanSickle directed.

The indictment also seeks the forfeiture of $1,725,000, alleged to be proceeds of the scheme to defraud the bank.

Blythe faces a maximum sentence of 30 years in prison for the conspiracy and for the bank fraud; and 30 years in prison for each of two counts of making a false statement to a bank.  An initial appearance has not yet been scheduled.

Samuel R. VanSickle, a/k/a “Donald Blunt,” “Jacob Aiken,” “Allen Helms,” “Paul Walsh,” and “William Hall, Attorney,” age 50, of Accident, Maryland, and Louis W. Strosnider, III, were previously indicted by a federal grand jury on conspiracy and bank fraud charges in a related case.  VanSickle is scheduled to go to trial on March 16, 2015.  On August 7, 2014, Strosnider pled guilty to conspiracy to commit bank fraud and is scheduled for sentencing on April 9, 2015.

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

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Joyce K. McDonald, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Jeffrey L. Shipley, age 48, of Millersville, Maryland today to 20 months in prison followed by three years of supervised release for stealing and destroying mail while employed as a postal employee.  Judge Hollander also entered an order that Shipley pay $19,358.75 in restitution.

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

 According to his plea agreement, Shipley worked as a postal service carrier beginning in 1993.  From about 2005 to March 10, 2014, Shipley stole and embezzled mail.  Shipley was a letter carrier at the Brooklyn Carrier Annex from 1994 to January 2007, at the Parkville Branch until August 2007, and at the Catonsville Carrier Annex from August 4, 2007 to 2014.

Shipley embezzled mail that he was entrusted to deliver on his assigned route, and stole mail directly from the Catonsville Carrier Annex that was not part of his assigned route.  Shipley also took Postal Service property, including stools, mail bags, signs and a mirror, valued at over $500.

Agents executed a search warrant at Shipley’s residence on March 10, 2014 and at a storage facility that he rented in Glen Burnie on April 18, 2014.  Agents seized 20,413 pieces of mail, including gift cards and credit cards.  Agents also seized 55 gift cards and 15 credit cards which were located separately from the stolen and embezzled mail, along with prescription bottles of medicine, checks, passports, a U.S. citizenship and immigration card, jewelry, clothes, books, a Nook, sunglasses and other items.

The total loss resulting from the scheme is over $10,000 and involved over 250 victims.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Service - OIG for its work in the investigation and thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Greenbelt, Maryland – A federal grand jury indicted Peter Flynn, age 61, of Silver Spring, Maryland on Wednesday, January 21, 2015 for distributing and possessing child pornography.  Flynn was arrested today and is scheduled to have his initial appearance in federal court at 1:30 p.m. in Greenbelt today.

The indictment 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; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

Flynn is a special education teacher at Bethesda Chevy Chase High School. According to the two count indictment, on April 3, 2014, Flynn distributed child pornography, and on September 30, 2014 he possessed child pornography.

Flynn faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison for distributing child pornography; and a maximum sentence of 10 years in prison for possessing child pornography, followed by up to a lifetime of supervised release. 

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

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

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

Baltimore, Maryland – James Robert Hensler, age 24, of Dundalk, pleaded guilty late yesterday to aiming the beam of a laser pointer at an aircraft.

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

“The FBI has aggressively investigated numerous people who have pointed lasers at aircraft since Congress passed the law in 2012,” said Stephen Vogt, FBI Special Agent in Charge of the Baltimore Division.  “People may think of this as a harmless prank, but pointing a laser at a pilot creates an undeniable danger for everyone on board that aircraft.  We ask the public to contact us with any information they may have about similar incidents.”

Chief James Johnson of the Baltimore County Police Department stated, “I am glad that this case has come to a positive conclusion and Mr. Hensler is being held accountable. Pointing a laser pointer at any aircraft is a serious matter, as it threatens the lives of those on the aircraft as well as people on the ground. In this incident, the crew of the Baltimore County Police helicopter was lucky that the use of the laser pointer did not lead to a tragic loss of life.”

According to Hensler’s plea agreement and other court documents, on September 30, 2014, a Baltimore County Police helicopter was flying over the area of Patapsco High School when the cockpit was illuminated twice by a green laser beam.  Two flight officers in the helicopter put a spotlight on the person whom they saw illuminate the cockpit and called for ground units to respond.  Arriving ground units saw Hensler in the area and questioned him.  Hensler denied having anything to do with the laser.  The flight officers directed the ground officers to a location where they had seen Hensler put his hand prior to the ground officers’ arrival.  The responding officers located and seized the laser pointer.  After being shown the laser pointer, Hensler admitted that he had used the laser pointer to hit the helicopter because he wanted to see how far the laser could shine.

Hensler faces a maximum of five years in prison, followed by three years of supervised release, and a $250,000 fine.  U.S. District Judge Ellen L. Hollander has scheduled sentencing for March 25, 2015.

United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Harvey E. Eisenberg, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr., sentenced Master Giddins, age 26, of Baltimore, today to 210 months in prison, followed by three years of supervised release, for bank robbery and for conspiring to commit three bank robberies. Judge Quarles also ordered Giddins to pay restitution of $10,099. Giddins was convicted by a federal jury on October 3, 2014.  Judge Quarles found that Giddins was a career offender based on previous convictions for first degree assault, a firearms violation, and a federal arson conviction.

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; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.

According to the evidence presented at Giddins’ four day trial, on September 25, 2013, Giddins robbed the M&T Bank on West Baltimore Street in Baltimore.  Giddins was wearing women’s clothing and a long black wig. Giddins handed a note to the teller stating that he had a bomb and demanded money.  Giddins told the teller to put the money in a black and white polka dot cosmetic bag which Giddins gave the teller.  The teller put cash and a GPS tracking device in the cosmetic bag and handed it to Giddins.  Giddins fled the bank but discarded the tracking device out the car window.  A woman co-conspirator drove Giddins’ car away from the bank.

On September 26, 2013, Giddins provided his car to two women co-conspirators in order to rob another bank.  The women robbed the 1st Mariner Bank in Owings Mills, stealing $3,100.  The women wrote a note similar to the one used by Giddins the day before; the same woman co-conspirator drove Giddins’ car; and the woman who went into the bank wore the same long black wig and used the same black and white polka dot cosmetic bag as Giddins.  According to trial testimony, the proceeds of the robbery were split between Giddins and the two women.

On September 27, 2013, Giddins again provided his car to the two co-conspirators to commit a bank robbery at the Baltimore County Savings Bank located in the 500 Block of Eastern Avenue in Baltimore County.  The two co-conspirators were joined by a third woman.  The same woman drove Giddins’ car and the other two women entered the bank, wearing wigs.  The two women each gave a teller a note claiming that they had a bomb and demanded money.  The tellers provided each of the robbers with cash and a dye pack.  The two robbers got into the car driven by the third co-conspirator.  One of the dye packs exploded when the robbers left the bank.  The other dye pack exploded in the car and the women threw it out of the car, along with the wigs and some other items, which were later recovered.  Police stopped the car, recovered evidence from the car and the scene, and arrested the women.   

Giddins went to Baltimore County Police headquarters to get his car back.  When he arrived, Giddins was questioned by police about the September 25th robbery.  Giddins told the police that he was at his state probation officer’s office and then went to work.  Witnesses testified that Giddins did not meet his probation officer on September 25, 2013, nor did he work that day.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Debra L. Dwyer, who prosecuted the case.

Baltimore, Maryland – A federal grand jury has indicted Michael L. Fischer, age 42, of Toledo, Ohio, for transportation of a minor with intent to engage in criminal sexual activity. The indictment was returned on December 18, 2014, and unsealed today. Fischer had his initial appearance in Maryland today and is detained pending trial. Fischer has been detained since his arrest on Friday, December 19, 2014, in Toldeo, Ohio. An arraignment has been scheduled for Michael Fischer on February 6, 2015, in U.S. District Court in Baltimore.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation - Baltimore; Special Agent in Charge Stephen D. Anthony of the Federal Bureau of Investigation – Cleveland, Ohio; Commissioner Anthony W. Batts of the Baltimore Police Department; and Lt. Colonel Anthony C. Satchell, Acting Superintendent of the Maryland State Police.

According to the indictment, Fischer and the victim communicated using chat rooms, social media, and telephone during the summer and fall of 2014. Fischer was told by the victim that she was 15 years old, prior to Fischer meeting the girl in person. The indictment alleges that in August and September 2014, Fischer travelled from Ohio to Maryland and engaged in sexual activity with the girl. The indictment alleges that after travelling from Ohio to Maryland to pick up the girl, on September 20, 2014, Fischer and another person transported the girl to Fischer’s home in Toledo. Between September 20 and 26, 2014, Fischer engaged in sexual conduct with the victim in Ohio.

According to the indictment, on September 23, 2014, Fischer was contacted by law enforcement regarding the victim’s whereabouts. The indictment alleges that Fischer denied knowing where the girl was and suggested to law enforcement that he believed she may be in Florida. According to the indictment, on September 24, 2014, Fischer dropped the girl off at a store in Toledo before meeting with law enforcement. During the meeting, Fischer again denied knowledge of the girl’s whereabouts. After the meeting, Fischer allegedly transported the girl from Ohio to Brighton, Michigan, and left the girl with one of his relatives.

Fischer faces a minimum mandatory sentence of 10 years in prison and a maximum of life in prison followed by up to lifetime of supervised release for transportation of a minor to engage in criminal sexual activity.

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

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

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

United States Attorney Rod J. Rosenstein commended the FBI Baltimore, Cleveland, Ohio and Detroit, Michigan Field Offices, the Baltimore Police Department, Maryland State Police, and the Toledo Child Exploitation Task Force for their work in the investigation, and thanked the Brighton, Michigan Police Department, the Livonia, Michigan Police Department and the Michigan State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who is prosecuting the case.

Purchased More Than 30 Kilograms of PCP Worth over $700,000

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Ricky Lee Holloway, age 31, of Bowie, Maryland, today to 14 years in prison, followed by five years of supervised release, for distributing more than 30 kilograms of phencyclidine (PCP).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to his plea agreement, beginning no later than September 2011, Ricky Lee Holloway conspired with others to distribute and possess with intent to distribute PCP and other controlled substances in Prince George’s County, Maryland, and its surrounding area. A co-conspirator manufactured PCP, which he would package and ship to Holloway and other coconspirators in Maryland. Beginning no later than 2011 and continuing through at least September 2012, the co-conspirator supplier established bank accounts at various national banks and sent Holloway ATM cards by which Holloway could access the accounts. Holloway and other co-conspirators deposited cash into those accounts to pay for shipments of drugs that the co-conspirator supplier sent to Maryland. Holloway and other local coconspirators sent the co-conspirator supplier over $700,000 for drug shipments using this method of payment. In exchange, Holloway received more than 30 kilograms of PCP, which he then redistributed in Maryland and the surrounding area.

As part of his plea agreement, Holloway will forfeit two 2007 Mercedes Benz sedans, and a 2007 Chevrolet Corvette that were either purchased with proceeds of the conspiracy or are forfeitable as substitute assets.

Co-defendants Gary Antonio Green, age 35, of Temple Hills, Maryland, and Jesse Fletcher, age 26, of Landover, Maryland, pleaded guilty to their roles in the drug conspiracy. Green was sentenced to five years in prison on January 14, 2015, and Fletcher is scheduled to be sentenced on January 26, 2015, at 2:00 p.m. Co-defendant Raymond Bullette III, age 34, of Los Angeles, California, was convicted of conspiracy to distribute PCP after a four day trial and is scheduled to be sentenced on April 20, 2015, at 9:30 a.m.

In related cases, Richard Brown, age 29, and David Chittams, age 34, both of Lanham, Maryland, pleaded guilty to conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), and were sentenced to 10 years and seven years in prison, respectively. Shawn Anthony, age 35, of Landover, Maryland, pleaded guilty to distribution of PCP and was sentenced to five years in prison. Kyle Daniels, age 36, also of Landover, pleaded guilty to distribution of PCP and illegal possession of a firearm and was sentenced to 51 months in prison.

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

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

Also Admitted to a Shooting in Baltimore City

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander, sentenced Mukengi Wilson, age 41, of Towson, Maryland, today to 15 years in prison followed by five years of supervised release for possessing with intent to distribute crack; being a felon in possession of a firearm; and attempting to tamper with a witness.

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

According to Wilson’s plea agreement, on October 5, 2013, law enforcement officers saw Wilson engage in several hand-to-hand drug transactions at a narcotics shop operating at the intersection of East Lafayette and North Montford Avenues in Baltimore. In each transaction, Wilson received cash from the customer in exchange for drugs. Two officers wearing vests labeled “POLICE” approached Wilson in a vehicle. When Wilson saw the officers, he attempted to flee. He threw small objects to the ground from his left hand, and reached into his waistband and removed a clear plastic bag and threw it to the ground. The officers arrested Wilson and recovered the items from the ground. The small objects from Wilson’s left hand were two zip lock baggies containing crack cocaine. The clear bag contained nineteen zip lock baggies, each of which contained crack cocaine.

After his arrest, Wilson spoke with officers and informed them that there was a gun in the basement in his girlfriend’s house at 2301 East Lafayette Street. He stated that the residents of the house did not know that the gun was there. Wilson also drew a map showing the location of the gun. Officers went to the house and were given consent to search the house. One of the officers went to the basement and found a 9mm semiautomatic handgun in the location indicated by Wilson in the hand-drawn map. The gun was loaded with one round of ammunition in the chamber and three rounds of ammunition in the magazine. The hammer of the gun was cocked. Wilson had previously been convicted of a felony and was prohibited from possessing a gun or ammunition.

In addition, from the time of Wilson’s federal indictment on November 13, 2013 until a superseding indictment was returned on May 21, 2014, Wilson, who was detained pending trial, made repeated telephone calls to a witness, encouraging the witness to give false testimony in U.S. District Court. The telephone calls were made on recorded, monitored jailhouse telephone systems.

Wilson also admitted that on September 23, 2013, he shot at a man referred to as “Love,” after the man sped through the intersection of East Lafayette and North Montford Avenues. Although the vehicle crashed, “Love” was able to drive away.

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

Falsified Home Buyers’ Information to Generate Fraudulent Loan Applicationsin Order to Collect Commissions, Origination and Broker’s Fees

Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Emeka Udeze, age 39, of Bowie, Maryland, today to 37 months in prison followed by five years of supervised release for conspiring to commit wire fraud in connection with two separate mortgage fraud schemes. Judge Messitte also entered an order that Udeze pay restitution and forfeit $2,098,378, the amount of actual losses suffered by the mortgage lenders as the result of the minimum of 20 transactions Udeke brokered in furtherance of the fraud schemes.

The sentence 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; Special Agent in Charge Fran Mace of the Federal Deposit Insurance Corporation, Office of Inspector General; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development, Office of Inspector General; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Michael Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief Gary Gardner; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Howard County State’s Attorney Dario Broccolino.

According to his plea and court documents, Udeze was a licensed mortgage broker who worked at various companies, including Newgate Mortgage, owned by co-defendant Shola Risikat Balogun, and EWA Mortgage. Udeze also registered a Maryland company called E&T Consulting, Inc., which he claimed was established to provide general services.

Udeze admitted that in both schemes, he submitted fraudulent mortgage loan applications for buyers, inflating the buyer’s income and creating bogus employment information in an effort to qualify these individuals for loans that they otherwise were unqualified to secure. In some cases, no mortgage payments were made and the property went swiftly into default. In other cases, the borrowers attempted to make mortgage payments for a period of time until they could no longer make payments.

In the first scheme, from at least 2006 through at least December 2008, Udeze, Balogun, Daniel Ofei and others contacted individuals who wished to purchase homes. The buyers, who typically had moderate to low incomes, provided the conspirators with accurate income and employment information. Udeze and others then submitted fraudulent loan applications on behalf of the buyers, inflated the buyer=s income and created bogus employment information in an effort to secure the loan. Udeze, Balogun and others collected origination fees, commissions, yield spread premiums and broker=s fees from each loan that closed. In all, Newgate Mortgage was responsible for originating nearly 100 fraudulent transactions, causing millions of dollars of losses to lending institutions.

In a separate scheme, from May 2009 to January 2010, Udeze conspired with Bonnie Kreamer, Nieshia Williams and Rhonda Scott to arrange for individuals to buy and sell real estate so they could improperly obtain money from the transactions. The co-conspirators used many fraudulent techniques, including: short sales in which the property would be sold for a higher price than the seller was aware of; sales of properties not owned by the seller; multiple sales of the same property at the same time; the seller and/or buyer were shown different settlement statements and the conspirators used the difference in sales price to enrich themselves; and money that should have been paid to lien holders was instead disbursed to the co-conspirators, including shell companies created by Udeze and others in order to disguise that the money was really for their benefit. This fraud scheme involved at least 25 victims, including lenders, sellers and buyers of real estate, title insurance companies and lien holders, who incurred losses of over $3 million.

Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 49, of Riva, Maryland; Shola Risikat Balogun, age 48, of Upper Marlboro; Rhonda Scott, age 53, of Oxon Hill, Maryland; Daniel Ofei, age 40, of Bowie, Maryland; Nieshia Williams, age 35, of Fort Washington, Maryland; Gregory Green, age 50, of Waldorf, Maryland; and Demetrius Peete, age 47, of Manassas, Virginia, each previously pleaded guilty to their roles in the fraud schemes. Kreamer, who was responsible for the daily operations at Sanford Title, was sentenced on to 51 months in prison, and ordered to pay restitution of $2,499,048 to the victims and forfeit $4.8 million. Scott was sentenced to 30 months in prison and ordered to forfeit $2.7 million and pay restitution of $703,000. Balogun, who organized the mortgage fraud scheme involving Newgate Mortgage, was sentenced to 37 months in prison and ordered to pay restitution and forfeit $1,352,378. Ofei, was sentenced to 37 months in prison and ordered to pay restitution of $5,950,000. Williams was sentenced to 27 months in prison and ordered to forfeit $3.1 million and pay restitution of $1,445,593. Peete was sentenced to a year and a day in prison and ordered to pay restitution of $394,908 and forfeit $1.5 million. Green was sentenced to three months in prison and ordered to pay restitution of $404,596.

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

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

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, FDIC and HUD-OIG for their work in the investigation of the first scheme; and the FBI, DOJ OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation of the second scheme. Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the first case, and Assistant United States Attorney Harry Gruber and Special Assistant United States Attorney Colleen McGuinn assigned to this case from the Howard County States Attorney’s Office, who prosecuted the second case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, today to 18 years in prison followed by five years of supervised release for conspiring to participate in a racketeering conspiracy, discharging a firearm in furtherance of a crime of violence and the unlawful transfer of firearms, in connection with his membership in the Bloods gang operating primarily out of Howard County, Maryland.

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

Wright was identified as a member of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department. 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.

According to his plea agreement, Wright was a member of the Bloods since at least 2010. Wright supported fellow incarcerated gang members, participated in gang meetings and discussions regarding gang sanctions, and planned retaliation against gang members suspected of cooperation.

For example, on February 22, 2012, Wright and a co-defendant robbed a rival gang member at gunpoint. In January 2013, Wright fired a gun at a victim’s residence as he and another co-defendant drove by in a truck. Two innocent bystanders were outside and their car was damaged in the shooting. Wright also sold firearms with and to fellow gang members who were prohibited from possessing the firearms.

On May 8, 2013, law enforcement executed multiple search warrants and arrested approximately 20 individuals connected with the Bloods gang, including Wright. A search warrant was executed at Wright’s residence and firearms and ammunition were seized.

To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Most recently, co-defendant Ryan Gladden, a/k/a "Fats," age 27, of Wilkes Barre, Pennsylvania, was sentenced on January 7, 2015, to 92 months in prison. Gladden has been a member of the Bloods gang since 2006 and became a leader of the “Swann” set, a sub-group of the Bloods. Co-defendant Rouchell Chesson, a/k/a “Black,” age 31, of Washington, D.C., was sentenced on December 12, 2014 to 10 years in prison. Chesson was a leader in the “Tree Top Piru” or “TTP” set of the Bloods. Christopher Lloyd McGann, a/k/a “Toker,” age 23, of Columbia, Maryland, was sentenced on December 19, 2014, to eight 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 William D. Quarles, Jr. sentenced Brian P. Davis, age 50, of Dundalk, Maryland, today to 210 months in prison, followed by lifetime supervised release, for distribution of child pornography. Judge Quarles ordered that upon his release from prison, Davis must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). In 1998, Davis was convicted of the sexual abuse of a minor in the Circuit Court of Baltimore County and as a result was required to register as a sex offender.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to Davis’ plea agreement, in 2005 he began using a file sharing network to search for, receive and distribute child pornography. Such networks are used to exchange and share files directly between computer users. On November 24, 2013, an undercover Baltimore County Police detective used a computer connected to the internet to conduct an investigation into the sharing of child pornography. The detective downloaded an image depicting a minor engaging in sexually explicit conduct from a user who was making files containing child pornography available for others to download. The user sharing files was subsequently identified as Davis and a search warrant was executed at Davis’ residence on December 11, 2013. When officers from the Baltimore County Police Department entered the residence to conduct the search, they found Davis’ desk top computer in the basement. The computer was on and running a file sharing network. A detective conducted a forensic preview of the computer and located images depicting children engaged in sexually explicit conduct. A full forensic examination of the computer found more than 600 images of child pornography, including images depicting prepubescent 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, HSI Baltimore, Maryland State Police Internet Crimes Against Children Task Force, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who prosecuted the case.

AccuPay Owners Allegedly Stole Money Designated for IRS and Maryland Tax Agency

Baltimore, Maryland – A federal grand jury indicted Beverly Carden, age 53, and her husband Kevin Carden, age 54, both formerly of Bel Air, Maryland, yesterday on charges arising from a scheme to steal at least $2.5 million from their clients and the IRS.

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

“The indictment alleges that the defendants falsely told clients that their money was being used to pay their taxes, when in fact the defendants were stealing it,” said U.S. Attorney Rod J. Rosenstein. “Customers who hire payroll services companies expect that they will not have to worry, but this case is a reminder that people always need to be vigilant when they trust someone with their money.”

The defendants owned and operated AccuPay, Inc., a payroll service company located at 206 E. Churchville Road in Bel Air. Part of the payroll services that AccuPay offered to its clients was to complete and file federal and state tax returns, collect the funds from the clients to pay the taxes, and then pay those taxes to the taxing authorities. Beverly Carden oversaw all aspects of AccuPay’s business. Kevin Carden was responsible for inserting the clients’ payroll information into software that generated tax forms to be filed with the taxing authorities and for paying the clients’ employment taxes.

According to the 16 count indictment, from 2006 to March 2013, the defendants withdrew from the clients’ funds the full amount of taxes owed, but then paid the taxing authorities only a portion of such funds, fraudulently retaining at least $2.5 million for themselves. The defendants misrepresented to their clients that those funds had been paid to the relevant taxing authorities.

The indictment alleges that in order to keep the clients unaware that their taxes were not fully paid, Kevin Carden changed the address listed for certain clients to the address for AccuPay, without the clients’ consent, causing all future IRS correspondence, including notices of underpayment, to be sent to AccuPay rather than the client. In the instances in which clients received notice from the taxing authority that they had not paid the taxes they owed in full, the defendants falsely advised the clients that the underpayment was due to a mistake by the taxing authority, an error made by AccuPay employees or the software AccuPay used to file tax returns.

The indictment further alleges that to contact the IRS about her clients’ employment tax issues without her clients’ knowledge, Beverly Carden affixed or caused to be affixed client signatures on IRS power of attorney forms without the clients’ permission.

In late 2011, the defendants allegedly sent their clients a letter introducing a new chief financial officer (CFO) at AccuPay who was to audit all tax deposits and filings for all tax clients back to 2009 for compliance and correctness. The letter stated that the CFO was an Ivy League graduate with degrees in both accounting and law, who had over 30 years experience as a CPA, was formerly a special investigator with the New Jersey Attorney General’s office, as well as a former IRS Special Agent. The CFO was not identified by name. Beverly Carden made a similar representation in a letter to the office of a U.S. Congressman in which she attempted to explain difficulties that AccuPay was having with the IRS. Although the defendants did hire a CPA who was a former IRS revenue agent and former investigative auditor for the New Jersey Attorney General’s Office, who had attended but not graduated from an Ivy League institution, that individual was hired to prepare the defendants’ personal tax returns and AccuPay’s corporate tax returns – not to audit any payments or filings made on behalf of AccuPay’s clients.

Finally, the indictment alleges that the defendants filed a false individual tax return for 2011 in which they substantially understated their income, that Kevin Carden filed a false individual tax return for 2012 in which he substantially understated his income, and Beverly Carden failed to file a tax return for 2012.

The indictment seeks forfeiture of at least $2.5 million.

The defendants face a maximum sentence of 20 years in prison for conspiracy to commit mail and wire fraud; 20 years in prison on each of three counts of mail fraud and five counts of wire fraud; 10 years in prison for conspiracy to commit money laundering and on each of three counts of money laundering; three years in prison on each of two counts for filing a false tax return and one year for failing to file a tax return. The defendants are expected to have their initial appearances in federal court in Florida today and tomorrow.

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

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

United States Attorney Rod J. Rosenstein commended the IRS - Criminal Investigation and FBI for their work in the investigation. Mr. Rosenstein praised the Bel Air Police Department for their assistance in the investigation, and thanked Assistant U.S. Attorney Evan T. Shea, who is prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Kevin Robinson, age 53, of Washington, D.C., today to 210 months in prison, followed by lifetime supervised release, for transporting a minor to engage in sex. Judge Titus also ordered that, upon his release from prison, Robinson 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; Chief of Police Robert D. MacLean of the U.S. Park Police; 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, on October 18, 2013, Robinson drove a nine year old girl and her parents to their home from a dental appointment, and dropped the parents off. Robinson then drove with the girl and other passengers to his girlfriend’s house, where he dropped off the other passengers. Robinson drove the girl to the Beltsville Agricultural Research Center (BARC) in Greenbelt, Maryland where he worked.

They entered his office and the girl began playing games on Robinson’s computer. Robinson then told the victim to remove her clothes. Robinson licked the victim’s chest and bit her breast, cutting the skin and causing a mark. Robinson attempted to have sex with her and the victim told him to stop. The victim put her clothes back on and they left BARC.

Once in his vehicle, Robinson told the victim to perform oral sex, which she did. Robinson then drove the victim back home. The victim told her parents what happened. The parents called the police. The victim was taken to the hospital. DNA analysis identified Robinson’s saliva on the victim’s breast.

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

United States Attorney Rod J. Rosenstein commended the U.S. Park Police and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis Weisman, who prosecuted the case.

Drugs Sold for Bodybuilding Enhancements Were Not Approved for Human Consumption

Greenbelt, Maryland – Gregory Tamborello, age 65, of Lutz, Florida, pleaded guilty today to selling misbranded drugs, in connection with the sale of bodybuilding drugs to consumers which were not approved by the FDA for human use.

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

“We will aggressively pursue those who endanger the public health by distributing unapproved and potentially unsafe drugs,” said Antoinette V. Henry, Special Agent in Charge, FDA’s Office of Criminal Investigations. “We will remain vigilant in protecting the public from the purveyors of these illegal and dangerous products.”

According to his plea agreement, from March to August 2012, Tamborello owned and operated Precision Peptides, located in Lutz, Florida, through which he sold body-enhancing injectable drugs to individuals seeking to enhance their physiques. These drugs were not approved by the FDA for use in humans.

Tamborello sought buyers for his drugs by placing ads in bodybuilding magazines and websites, promoting his business at bodybuilding conferences and by offering drugs for sale on his website. His website displayed numerous disclaimers stating that all products sold were for “research/laboratory use only.” Additionally, prior to purchasing the products from the website, each customer was asked to certify that he or she read the disclaimer that the “chemicals/materials for sale here are . . . not intended for human ingestion.” Yet Tamborello intended that the products be used by consumers for bodybuilding purposes, and knew that consumers were in fact using them for that purpose.

The drugs Tamborello sold included Mechano Growth Factor, Myostatin Propeptide, and T3 (Liothyronine), none of which the FDA has approved for use in humans.

On May 8, 2012, an undercover federal agent ordered drugs from Tamborello’s website. Tamborello shipped two vials of “mechano growth factor,” a vial each of “Myostatin Propeptide,” “Delta Sleep Inducing Peptide,” “T3 (Liothyronine),” “DHEA,” and three vials of “Sildenafil Citrate” to Columbia, Maryland. Tamborello provided no directions for use of the drugs or adequate warnings on the packages.

From March to August 2012, Precision Peptides generated at least $210,000 in revenue.

Tamborello faces a maximum sentence of one year in prison and a $100,000 fine. U.S. District Judge George J. Hazel has scheduled sentencing for April 17, 2015 at 9:30 a.m.

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

Obtained Kilograms of Cocaine from Arizona and Texas

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Shawn Malone, age 32, of Baltimore, today to 14 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine.

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

According to Malone’s plea agreement, beginning in at least 2010 and continuing until June of 2013, Malone, conspired with Travis Gaines, Antoine Bolden, Karl McDonald and others, (collectively the Malone Drug Trafficking Organization (DTO)) to obtain cocaine from sources of supply in Arizona and Texas and distribute the cocaine in the Baltimore area. Malone would have couriers flown or driven to the border to take possession of the cocaine and the couriers would either drive or take commercial buses back to Baltimore with the cocaine. Once in Baltimore, the cocaine would be distributed to wholesale customers, some of whom would convert the cocaine to crack cocaine for street level distribution. After the cocaine was sold, Malone used some of the same couriers to transport the money to pay for the drugs back to the sources of supply.

During the Spring of 2013, the DEA intercepted telephone calls and text messages of members of the Malone DTO. During the investigation, law enforcement was able to interdict, in Frederick, Maryland, approximately 1.5 kilograms of cocaine from a courier as she traveled from Arizona to Baltimore by commercial bus. On June 6, 2013, law enforcement executed search warrants at locations in the Baltimore metropolitan area and recovered approximately 250 grams of cocaine, as well as packaged crack cocaine, from the main stash house of the organization.

Malone and other members of this DTO used the proceeds from the cocaine trafficking activities to purchase houses in the Baltimore area. Malone used additional drug proceeds to rehabilitate these houses, and either rent and/or sell the houses in an effort to launder the drug proceeds.

As a result of his participation in the drug conspiracy Malone was responsible for the distribution of between 50 and 150 kilograms of cocaine.

Co-conspirators, Travis Gaines, age 34, Karl McDonald, age 30, and Antoine Bolden, age 37, all of Baltimore, pleaded guilty to their roles in the conspiracy and were sentenced to 130 months, 151 months and 84 months in prison, respectively.

United States Attorney Rod J. Rosenstein praised the DEA and Baltimore Police Department for their work in the investigation and thanked Assistant U.S. Attorney James T. Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.