District of Maryland

Also Possessed Over 8,000 Images and Videos of Child Pornography

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Laiton Blake Witkowski, age 42, of Stockton, Maryland, today to 16 years in prison, followed by lifetime supervised release, for producing and possessing child pornography. Judge Hollander also ordered that upon his release from prison Witkowski must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to his plea agreement, on October 8, 2013, Witkowski used a file sharing network which enabled a law enforcement officer to download from Witkowski’s computer. After further investigation, a search warrant was executed at his residence on February 6, 2014. Computers, hard drives, other electronic devices and approximately 455 CDs and DVDs were seized, all containing, or were used to produce and store, child pornography. A computer, eMachine and electronic notebook alone contained 8,000 images and 100 videos of child pornography. The CDs and DVDs also contained thousands of images and videos of child pornography, including images and videos involving prepubescent minors, and depicting sadism, masochism and other violence.

Further analysis revealed that Witkowski had produced images and videos of child pornography of two girls in August to September of 2009. The girls were approximately 10 and 12 years old at the time. In some images one victim appears to be sleeping, and in other images, the other victim is using the bathroom, or sitting at a computer with Witkowski standing behind her in sexually explicit poses.

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

United States Attorney Rod J. Rosenstein commended HSI Ocean City, Worcester County Sheriff’s Office, Maryland State Police Internet Crimes Against Children Task Force (ICAC) and the Worcester County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr., sentenced Craig Okeido Anderson, a/k/a “Snap,” “Sir Chill,” King Hundredgrand,” and “Yung Royalty,” age 25, of Catonsville, Maryland, today to seven years in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition, which Anderson brandished in connection with his prostitution business. Anderson had four prior assault convictions and was prohibited from possessing a firearm or ammunition.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Gary Gardner of the Howard County Police Department; Anne Arundel County Police Chief Tim Altomare; and Howard County State’s Attorney Dario Broccolino.

According to his plea agreement, from February 1, 2012, through October 3, 2013, Anderson was a pimp who persuaded, enticed and coerced women to travel interstate, and transported women interstate, with the intent that they engage in prostitution. Anderson recruited women whom he met in public and over the internet to work for him as prostitutes. Anderson had the women advertise their services on websites that marketed commercial sex workers. Anderson routinely took all of the money the women earned by engaging in prostitution. Anderson provided the women with drugs and alcohol to facilitate the prostitution. Anderson used aliases in advertisements and on a website to promote himself and his prostitution enterprise to women and commercial sex customers.

In August 2012, Anderson purchased a semi-automatic rifle and an extended magazine, loaded with 7.62mm ammunition. Between August 2012, and his arrest on October 3, 2013, Anderson stored the firearm in a vehicle he used to transport prostitutes who worked for him and brandished the firearm in relation to his prostitution activities, including threatening a drug dealer who attempted to cheat some of Anderson’s prostitutes in a drug deal, and threatening a commercial sex customer who would not leave during an encounter with one of Anderson’s prostitutes.

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Howard County Police Department, Anne Arundel County Police Department and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Zachary A. Myers and Paul E. Budlow, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge George Jerrod Hazel sentenced Charles Johnson, age 20, of Beltsville, Maryland, and Madani Ilara Tejan, age 32, of Upper Marlboro, Maryland, today to 51 months in prison and 68 months in prison, respectively, each followed by three years of supervised release, for robbing a convenience store in Waldorf, Maryland,.

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

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

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

Donnell Edward Harris, age 21, of Burtonsville, Maryland, previously pleaded guilty to the robbery and to brandishing a gun during the robbery. Harris is scheduled to be sentenced on March 20, 2015 at 9:00 a.m.

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

Robbed Over a Dozen Convenience Stores, Gas Stations and Restaurants in Five Months, Including Three 7-Elevens in Just Two Hours

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Anthony Akrah Morris, age 25, of Burtonsville, Maryland, today to 505 months in prison followed by five years of supervised release for conspiring to commit robbery, two counts of robbery and two counts of brandishing a firearm during a robbery. Judge Grimm also ordered Morris to pay restitution of $3,375.

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

According to evidence presented during the five day trial, Morris committed three robberies on May 19, 2012, two robberies on May 31, 2012 and one robbery on July 21, 2012. Morris would observe the target businesses before the robberies, plan the robberies with his co-conspirators, participate in the robberies and divide and receive a portion of robbery proceeds. During the robberies, Morris and his conspirators partially hid their faces with cloths or a mask. In all six robberies, Morris stole proceeds from the business, while a co-conspirator brandished a firearm. In two of the robberies, Morris struck 7-Eleven employees when they were not moving fast enough to open the cash registers.

Specifically, at 3:05 a.m. on May 19, 2012, Morris and a co-conspirator entered the 7-Eleven store at 1927 Rhode Island Avenue, NE, Washington, D.C. While a co-conspirator brandished a firearm, Morris took money from the cash register and they escaped. They similarly robbed two other 7-Eleven stores later that morning: one at 4:16 a.m., located at 1927 Rhode Island Avenue, NE, Washington, D.C. where they stole $100 from the cash register; and the other at 5:03 a.m., located at 3004 Forestville Road in Forestville, Maryland, where they stole $80.

In similar fashion, Morris and two co-conspirators robbed another 7-Eleven store at 1:05 a.m. on May 31, 2012, located at 12009 Laurel Bowie Road, Laurel, Maryland. Morris jumped over a counter while a co-conspirator brandished a firearm. The co-conspirator ordered customers to the floor. Morris took approximately $340 from the store cash register. Morris and a co-conspirator also took $475 worth of cigarettes from the store. One of the co-conspirators took money and items from customers, including an Apple iPhone from a female customer. The co-conspirators fled from the store in a vehicle driven by another co-conspirator.

Shortly thereafter, at 2:59 a.m., Morris and two of his co-conspirators entered a McDonald’s restaurant located at 15569 Old Columbia Pike in Burtonsville. One of the co-conspirators brandished a firearm at persons inside the restaurant. Morris and his co-conspirators forced employees to open the the restaurant’s safe from which they took $1,400 in cash. They fled in a getaway vehicle driven by another co-conspirator.

On July 21, 2012, Morris and another co-conspirator entered a McDonald’s restaurant located at 4950 South Dakota Avenue, NE Washington, D.C. One of the co-conspirators brandished a firearm at persons inside the restaurant. Morris and his co-conspirator took $1,380 of store funds and fled the store. A Metropolitan Police Department crime scene technician recovered a partial palm print from the restaurant’s counter, and an FBI forensic examiner matched it to a palm print from a fingerprint card belonging to Morris.

Based on evidence presented at today’s sentencing hearing, Judge Grimm found that Morris committed seven additional armed commercial robberies, including two in which Morris pistol whipped a store employee.

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

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Katherine Noelle Nash, age 27, of Burtonsville, Maryland, today to eight years in prison followed by a lifetime of supervised release for transporting and possessing child pornography. Judge Chasanow ordered that upon her release from prison, Nash must register as a sex offender in the place where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

According to her plea agreement, on September 8 and 9, 2013, Nash distributed nine videos depicting prepubescent minors engaged in sexually explicit conduct to an undercover officer using a file sharing program.

On October 23, 2013, a search warrant was executed at Nash’s residence and law enforcement seized two computers and other digital media. One of the computers contained 12 images and a video file documenting Nash’s sexual abuse of a prepubescent female child, as well as sexually explicit conversations with another individual regarding the child. In addition, Nash possessed 37 files containing child pornography, including files that Nash had downloaded from the internet and distributed to the undercover officer. The second computer contained approximately 190 images and videos depicting children 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, Montgomery County Police Department and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kelly O. Hayes and Kristi N. O’Malley, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Benjamin K. Bray, age 30, of Davidsonville, Maryland, to eight years in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to being a felon in possession of an explosive device.

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 Chief Marc S. Bashoor of the Prince George’s County Fire/EMS.

According to his plea agreement, from at least January 2011 through December 2012, Bray conspired with John Frank Jenkins and others to distribute oxycodone. Bray and his co-conspirators presented forged prescriptions for oxycodone pills to different pharmacies approximately twice a week from the spring of 2011 through the summer of 2012. Bray and his co-conspirators consumed some of the pills and sold the rest. During the conspiracy, Bray began to use and distribute heroin as a cheaper substitute for the oxycodone, selling heroin to pay for the heroin he used.

In November 2012, Jenkins refused to sell oxycodone to one of his drug customers, resulting in an argument. After the argument, Jenkins built two pipe bombs which he intended to use to blow up the drug customer’s vehicle. Bray supplied the black powder for the pipe bombs.

Another drug customer owed Jenkins $50 for oxycodone that Jenkins had supplied in June 2012. On December 18, 2012, Bray and Jenkins were out of heroin and needed money to purchase heroin. Jenkins contacted the customer, but could not collect the debt. Bray and Jenkins carried one of the pipe bombs to the customer’s home. Bray placed the pipe bomb on the front porch and lit the fuse. The bomb exploded, damaging the front door. The drug customer was sleeping in the bedroom adjacent to the door at the time of the explosion.

John Frank Jenkins, age 31, of College Park, Maryland was previously sentenced to 121 months in prison followed by 14 months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and oxycodone; and to 10 years in prison for making an explosive device and being a felon in possession of an explosive device. The sentences are to be served concurrently. Judge Grimm also ordered Jenkins to pay restitution of $475.

United States Attorney Rod J. Rosenstein praised 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 U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Michael Lee Kelly, age 34, of Baltimore, today to 45 months in prison followed by four years of supervised release for bank fraud conspiracy and aggravated identity theft arising from a scheme to buy luxury vehicles using the personal identity information of others. On January 6, 2015, Judge Bennett sentenced co-conspirator Michael Christopher Marshall, age 35, also of Baltimore, who was the leader of the scheme, to 61 months in prison followed by four years of supervised release for the same offenses.

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

According to their plea agreements, from December 2009 to November 2010, Kelly and Marshall selected automobiles to buy from Maryland dealerships. They used the identities of others to finance the purchase of the vehicles because they knew that they would not qualify for financing using their own identities. In some cases, others were willing to allow the defendants to use their identities. In other cases, the defendants used stolen identity information, a counterfeit identification document and an imposter posing as the victim to complete the purchases.

For example, in December 2009, Marshall used the identity of another whose identity was stolen to purchase a 2007 Mercedes S550 from a car dealer in Owings Mills, Maryland.

In May of 2010, Marshall asked Kelly to find an individual who was about the same age as another man whose identity had been stolen. Kelly recruited his uncle, Guillermo Torres, to pose as this victim, and obtained a counterfeit identification bearing the personal identity of the victim but the picture of Torres. On May 28, 2010, Kelly drove Torres to a car dealer where Torres waited outside while Kelly selected a 2007 Mercedes S-550 and completed an application to purchase the car. Torres then signed as the victim and used the counterfeit driver’s license to obtain financing. On that same date, Marshall and Kelly drove Torres to another auto dealer where Torres again posed as the victim and provided the counterfeit driver’s license in order to obtain financing of a 2008 BMW and a 2009 Audi S5.

During Marshall’s participation in the conspiracy, he and his co-conspirators obtained or attempted to obtain between $400,000 and $1 million in financing, and defrauded between 10 and 50 individuals and financial institutions. During Kelly’s participation in the conspiracy, he and his co-conspirators obtained or attempted to obtain between $200,000 and $400,000 in financing, and defrauded at least 10 individuals and institutions.

Guillermo Torres, age 50, of Owings Mills, previously pleaded guilty to his participation in the scheme and is scheduled to be sentenced on January 15, 2015 at 3:00 p.m.

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

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

Claimed False Deductions, Business Losses and First Time Homebuyer Credits on Federal Tax Returns

Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Judianne Horn, age 44, of Owings Mills, Maryland today to 33 months in prison followed by one year of supervised release for aiding in the preparation of false tax returns.

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

According to her plea agreement, from 2007 to at least 2010, Horn prepared approximately 3,000 tax returns for clients. Horn was self-employed and operated a tax preparation business out of her home in 2007 and again in 2010. In 2008 to 2009, Horn was employed at two other tax preparation businesses located in Owings Mills and Randallstown, Maryland. In all these years, Horn filed federal tax returns which she knew included false deductions or false business losses, thus generating a larger tax refund than the client was otherwise lawfully entitled. Horn admitted that 42 of these tax returns were false and that the total tax loss generated by the fraudulent tax returns is $281,764.

Additionally, Horn also filed numerous false tax returns which claimed that the client was entitled to the first time home buyer credit. The credit was designed for persons who purchased a new home after April 8, 2008, and before May 1, 2010 and who did not own a home in the prior three years. A qualified taxpayer could receive a credit of up to $8,000. On at least five tax returns, Horn claimed that the taxpayer qualified for this credit, when in fact the taxpayer had not purchased a home at all. Horn directed the full $8,000 credit to a bank account she controlled.

United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation, and thanked Assistant U.S. Attorneys David I. Sharfstein and Gregory R. Bockin, who prosecuted the case.

Transported Heroin and Cocaine from Chicago to Baltimore

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Garry DeJesus Rojas, age 43, of New York, New York, today to 121 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin and cocaine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; Porter County, Indiana Sheriff David Reynolds; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Colonel Joseph R. Fuentes, Superintendent of the New Jersey State Police.

According to Rojas’ plea agreement, since at least 2012, Rojas was responsible for transporting kilograms of heroin and cocaine from suppliers in Chicago to his Baltimore-based customer, and transporting the proceeds from prior drug sales from Baltimore to Chicago. To complete the exchanges, Rojas would swap vehicles with his Baltimore-based customer, take that vehicle to Chicago to obtain narcotics and deliver proceeds from prior narcotics sales, then swap vehicles again when he returned.

On December 15, 2012, investigators tracked Rojas, driving a vehicle with Maryland license plates, to a hotel in Chicago. Rojas gave the keys to the vehicle to two other individuals who loaded the vehicle on a car carrier. Law enforcement subsequently executed a traffic stop on the car carrier. Following a K-9 alert to the presence of narcotics in the vehicle Rojas had been driving, law enforcement searched the vehicle and recovered $50,000 in cash from a hidden compartment in the roof, which were the proceeds of narcotics transactions.

On January 22, 2013, law enforcement again tracked Rojas to Chicago. Investigators saw Rojas load a suitcase into the trunk of a car with New York license plates, then drive to several locations in Chicago. As Rojas drove out of Chicago, law enforcement executed a traffic stop. After a K-9 alerted for the presence of narcotics, law enforcement searched the vehicle and recovered bags containing approximately 4 kilograms of cocaine and 2.8 kilograms of heroin.

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

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Bamba Omar Saine, age 24, of Columbia, today to four years in prison, followed by five years of supervised release, for conspiring to participate in a racketeering conspiracy, in connection with 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.

Saine was identified as an associate 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 their plea agreements, Saine and co-defendant Christopher McGann are members of “Cut Throat Committee,” or “CTC,” a Bloods set founded by Kenneth Ragan-Armstrong and others who are either associated with and/or members of the Bloods. Saine and McGann began associating with the CTC in approximately 2010, and McGann has “CTC” tattooed on his body. Among his gang activities, Saine participated in the armed robberies of drug dealers with fellow gang members, including Christopher McGann. Fellow gang members, including Ragan-Armstrong, referred McGann to others to purchase firearms on multiple occasions, and McGann then used these firearms or those belonging to other gang members during armed robberies. McGann shared his firearms with other gang members, including Saine, who used firearms belonging to McGann in several robberies. McGann and Sained shared the drug proceeds of the robberies among themselves and with other gang associates.

Beginning in at least the spring of 2011, Saine and McGann began selling marijuana, including to fellow gang members. Intercepted telephone calls reveal McGann and Saine’s marijuana sales to gang member Giovanni Wright, as well as references by other gang members to “re-upping” from Bamba or Saine. “Re-up” refers to replenishing a supply of drugs. When McGann was arrested in February 2013 for marijuana distribution, Saine retrieved McGann’s firearm from a hidden location for safe keeping.

Christopher Lloyd McGann, a/k/a “Toker,” age 23, of Columbia, Maryland, was sentenced on December 19, 2014, to eight years in prison for the racketeering conspiracy and for possession and use of firearms in furtherance of a crime of violence.

To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland was sentenced to 205 months in prison, after admitting that he committed at least three armed robberies of individuals in which drugs, cash and/or other items were stolen; assaulted others; and sold crack cocaine, oxycodone and other drugs. Johnson also prostituted females, including a minor.

Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, was sentenced to 193 months in prison after admitting that he founded “Cut Throat Committee,” or “CTC,” a gang whose members are associated with and/or members of the Bloods gang. Ragan-Armstrong committed at least two armed robberies of individuals in which drugs, cash and/or other items were stolen. During one of the robberies, a home invasion in Laurel, Maryland, he pistol whipped the victim on the head resulting in serious bodily injury. Ragan-Armstrong regularly sold drugs, primarily marijuana. During his two day sentencing hearing, witnesses also testified about Ragan-Armstrong’s participation in a sexual assault that occurred in December 2010 at an apartment in Catonsville, Maryland. The Court credited the evidence of the sexual assault when it imposed Ragan-Armstrong’s sentence.

Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, admitted that he 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 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. Wright has agreed to be sentenced to 18 years in prison at his sentencing scheduled for January 16, 2015.

Co-defendants 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.

Anthony Preston, a/k/a “40,” or “Tone,” age 27, of Laurel, Maryland, admitted to directing or participating in at least 4 assaults, including an April 20, 2013 assault of a former gang member with a knife and mace in a convenience store. Preston is seen on the store’s surveillance video hitting the girlfriend of the gang member in her face and attempting to spray her with mace. Bystanders, including a young child, were injured by the mace. Preston was later overheard by law enforcement admitting to the assault and stating that if he’d had his gun, he would have killed the man. Preston also was a leader in drug trafficking, selling drugs, including crack cocaine and oxycodone, as early as 2007. Preston, who was previously convicted of armed robbery and attempted armed robbery, has agreed to be sentenced to 20 years in prison at his sentencing scheduled on February 6, 2015.

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.

Committed Three Bank Robberies While on Supervised Release for Previous Gun Convictions

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Dillian Nathaniel Tucker, age 36, of Greenbelt, Maryland, today to 92 months in prison, followed by three years of supervised release, for three bank robberies. Judge Messitte also ordered Tucker to pay restitution of $10,108.

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 Tucker’s plea agreement, on April 6, Tucker drove himself and co-defendant Reginald Lasley to a SunTrust bank in Landover, Maryland. Lasley entered the bank, presented the teller with a note demanding money and took $4,810. Lasley got into the black van being driven by Tucker and they left the scene. On April 9 Tucker drove himself and Lasley to a Sun Trust Bank in Upper Marlboro, Maryland, in the same black van. Lasley again presented the teller with a note demanding money and stole $5,370, leaving the area in the van driven by Tucker.

Two days later, on April 11, 2012, Tucker drove himself and Lasley in the same black van to the M&T Bank, in Largo, Maryland. Tucker entered the bank, approached a teller window, and asked for change. Tucker then exited the bank and advised Lasley to enter the bank to rob it. Several minutes later, Lasley entered the bank and handed the teller a note demanding money. The teller complied and Lasley stole $1,390. Lasley exited the bank, got into the black van, and Tucker drove away from the bank.

Later on April 11, 2012, Prince George’s County police officers saw the black van and attempted to pull it over. Tucker, who was still driving the van, made a quick U-turn and attempted to flee. After a short chase, Tucker stopped the van, and Tucker and Lasley attempted to run away. Police officers caught and arrested Tucker immediately. Lasley was caught later that day, and law enforcement officers recovered from Lasley a robbery demand note and the money stolen earlier from the M&T Bank. Officers also recovered from the black van another robbery demand note and the hat and shirt that Lasley wore during the M&T bank robbery.

Tucker committed each of the robberies while on supervised release in connection with firearm convictions in the Superior Court for the District of Columbia.

U.S. District Judge Peter J. Messitte previously sentenced Reginald Anthony Lasley, age 42, of Silver Spring, Maryland, to a total of 18 years in prison - 16 years for the robbery of a store and three bank robberies and an additional two years in prison for violating his supervised release in connection with previous federal bank robbery convictions. Judge Messitte also ordered Lasley to pay restitution of $29,150.

United States Attorney Rod J. Rosenstein praised the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Adam K. Ake, who prosecuted the case.

Committed at least five Bank Robberies Between June 7 and June 24, 2013

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Dallas Eric Dunmore, age 48, of Washington, D.C., today to 163 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; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Maryland Attorney General Brian E. Frosh.

According to their plea agreements, Dallas Dunmore, Derrick Hart and Teddy McCain robbed or attempted to rob banks in Maryland and Virginia. In each robbery Dallas Dunmore entered the bank and handed the teller a note demanding money. On one occasion, the note also stated that he had a gun, while on two other occasions Dunmore told the teller that he or another conspirator had a gun. McCain waited outside during each robbery. Hart also waited outside during the robberies, except on June 19, 2013, when Hart entered the bank with Dallas Dunmore and another conspirator.

The total proceeds from the five robberies in which Dunmore participated are $5,370; and the total proceeds from the six robberies in which Hart and McCain participated are $8,437.

Co-conspirators Derrick Hart, age 43, of District Heights, Maryland, and Teddy McCain, age 55, of Germantown, Maryland, previously pleaded guilty to bank robbery and McCain was sentenced to six years in prison. Hart is scheduled to be sentenced on July 31, 2015, at 9:00 a.m.

United States Attorney Rod J. Rosenstein praised the FBI; Prince George’s and Montgomery County Police Departments; the Arlington, Fairfax, and Alexandria, Virginia Police Departments; and the Maryland Attorney General’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas Mitchell and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General, who are prosecuting the case.

Baltimore, Maryland – Gary Clark Steciuk, age 39, of Buffalo Grove, Illinois and Heber Springs, Arkansas, pleaded guilty today to mail fraud in connection with a scheme to defraud his clients of more than $2.6 million.

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

According to his plea agreement, Steciuk was a stockbroker, who worked primarily out of his home in Buffalo Grove. Steciuk was authorized to sell securities, such as stocks, bonds, option, mutual funds and variable annuities. In approximately 2009, Steciuk established a business, College Funding Solutions, ostensibly to provide investment advice to clients interested in investing and saving for college expenses, and opened a business bank account in the name of the business.

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

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

There were at least 18 victims of the scheme, including Steciuk’s step-grandmother and mother-in-law, as well as elderly and vulnerable victims. The total loss resulting from the fraudulent scheme is approximately $2,686,025.07. Steciuk’s plea agreement requires him to pay restitution in that amount and to forfeit all money, property, or assets of any kind derived from or acquired as a result of his illegal activities.

Steciuk and the government have agreed that if the Court accepts the plea agreement Steciuk will be sentenced to 105 months in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for March 27, 2015 at 10:00 a.m. Steciuk remains detained.

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

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

Previously Convicted for Possession of Child Pornography in Anne Arundel County

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Donald P. Blair, age 56, of Dundalk, Maryland, today to 10 years in prison followed by 10 years of supervised release for possession of child pornography. Judge Quarles ordered that upon his release from prison, Blair must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to Blair’s plea agreement, in 2013, HSI New Orleans was investigating an email account that was sending and receiving child pornography. The investigation revealed that Donald Blair was sharing child pornography with the individual whose email account was being investigated. On July 8, 2013, a search warrant was executed at Blair’s home and law enforcement seized two hard drives and several flash drives, all of which contained images depicting minors engaged in sexually explicit conduct. In addition, Blair knowingly possessed 288 images of minors engaged in sexually explicit conduct on a desktop computer. In 2006, Blair was convicted for possession of child pornography in Anne Arundel County.

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

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

Conspirators Used Other Individuals’ Identities, False Income and Credit Information  to Induce Lenders to Provide Home Mortgage Loans

Greenbelt, Maryland – U.S. District Judge George Jerrod Hazel sentenced Annika Boas, age 37, of Mount Rainier, Maryland, today to 27 months in prison followed by five years of supervised release for conspiracy, wire fraud and making a false statement on a loan application, arising from a residential mortgage fraud scheme.

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

According to the evidence presented at her four day trial, from March 2007 to November 2008, Boas conspired with real estate agent Edgar Tibakweitira, Ayoub Luziga with whom Boas was in a relationship, and others to fraudulently obtain residential mortgage loans by making false statements during the loan application and approval process. The conspirators used stolen or false identity information, false documents – including W-2 forms, earnings and banks statements – and false credit information to induce lenders to provide mortgage loans to straw purchasers, such as Boas and others recruited by Luziga and Tibakweitira. As part of the scheme, Tibakweitira inflated the sales price of the property by creating false documents for repairs and renovations that were never made. After the settlement, the conspirators divided up the cash received for the purported repairs.

Witnesses testified that the conspirators obtained the identity information of a least four individuals without their knowledge. Boas and other conspirators assumed the identities of these individuals and acted as straw buyers to obtain the loans used to purchase the properties. The evidence showed that Boas assumed the identity of one of the victims using a fraudulent North Carolina driver’s license with the victim’s name but Boas’ photo, to pose as the victim at the settlement for two properties.

As a result of the conspiracy, Boas caused $511,147.06 in losses to federally-insured financial institutions.

Co-conspirators Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland and Ayoub Luziga, age 35, of Bowie, Maryland, have pleaded guilty to their roles in the scheme. Luziga was sentenced to 21 months in prison and ordered to pay restitution of $999,762. Tibakweitira awaits sentencing.

Five other conspirators have also pleaded guilty to their roles in the scheme, including: Tibakweitira’s wife Flavia Makundi, age 42, of Severn; Mokorya Cosmas Wambura, age 41, of Takoma Park, Maryland; Raymond Abraham, age 47, of Silver Spring, Maryland; Cane Mwihava and Abdallah Suleiman Kitwara, both age 43, of Bowie. Wambura was sentenced to five years in prison and ordered to pay restitution of $434,867.65. Abraham was sentenced to 33 months in prison and ordered to pay restitution of $999,762. Kitwara was sentenced to 15 months and ordered to pay restitution of $290,954. Makundi was sentenced to time served. Mwihava is scheduled to be sentenced on March 23, 2015.

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


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

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

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Ryan Gladden, a/k/a "Fats," age 27, today to 92 months in prison followed by three years of supervised release for conspiring to participate in a racketeering conspiracy, in connection with 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.

The defendant 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, Gladden was a resident of Wilkes Barre, Pennsylvania who played football on a semi-professional team in Scranton, Pennsylvania. He formerly resided in Baltimore City and Randallstown, Maryland. Gladden has been a member of the Bloods gang since 2006. He became a leader of the “Swann” set, a sub-group of the Bloods, and knew of violent crimes committed, or being planned by gang members, using guns and other dangerous weapons. He was also involved in drug trafficking in Pennsylvania, including marijuana and prescription pain pills.

To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland was sentenced to 205 months in prison, after admitting that he committed at least three armed robberies of individuals in which drugs, cash and/or other items were stolen; assaulted others; and sold crack cocaine, oxycodone and other drugs. Johnson also prostituted females, including a minor.

Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, was sentenced to 193 months in prison after admitting that he founded “Cut Throat Committee,” or “CTC,” a gang whose members are associated with and/or members of the Bloods gang. Ragan-Armstrong committed at least two armed robberies of individuals in which drugs, cash and/or other items were stolen. During one of the robberies, a home invasion in Laurel, Maryland, he pistol whipped the victim on the head resulting in serious bodily injury. Ragan-Armstrong regularly sold drugs, primarily marijuana. During his two day sentencing hearing, witnesses also testified about Ragan-Armstrong’s participation in a sexual assault that occurred in December 2010 at an apartment in Catonsville, Maryland. The Court credited the evidence of the sexual assault when it imposed Ragan-Armstrong’s sentence.

Anthony Preston, a/k/a “40,” or “Tone,” age 27, of Laurel, Maryland, admitted to directing or participating in at least 4 assaults, including an April 20, 2013 assault of a former gang member with a knife and mace in a convenience store. Preston is seen on the store’s surveillance video hitting the girlfriend of the gang member in her face and attempting to spray her with mace. Bystanders, including a young child, were injured by the mace. Preston was later overheard by law enforcement admitting to the assault and stating that if he’d had his gun, he would have killed the man. Preston also was a leader in drug trafficking, selling drugs, including crack cocaine and oxycodone, as early as 2007. Preston, who was previously convicted of armed robbery and attempted armed robbery, has agreed to be sentenced to 20 years in prison at his sentencing scheduled on February 6, 2015.

Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, admitted that he 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 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. Wright has agreed to be sentenced to 18 years in prison at his sentencing scheduled for January 16, 2015.

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 gang who directed and participated in, or had knowledge of, robberies committed by fellow gang members, sold guns, and dealt heroin and prescription pills, to and with fellow gang members.

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.

Fraudulently Copied Personal Information on Over 11,000 Clients

Baltimore, Maryland – Alexander Afonso, age 40, of Frederick, Maryland, pleaded guilty yesterday to identity theft.

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

According to his plea agreement, Afonso worked as an IT manager/systems administrator at Service Coordination, Inc. (SCI), a non-profit corporation principally located in Frederick, for approximately three months. SCI provides case management services to Marylanders with intellectual and developmental disabilities. SCI terminated Afonso’s employment on October 13, 2013, and informed Afonso that his authorization to access SCI’s computers systems had been revoked.

However, beginning on October 17, 2013, Afonso repeatedly accessed the computer systems of SCI remotely through the Internet, without authorization from SCI. Alfonso used the username and password of a current SCI employee who was on disability leave at the time. Afonso obtained information concerning the computer network of SCI, and copied personal identifying information data on 11,238 SCI clients, which he emailed from the current employee’s account to himself.

As a result of Afonso’s conduct, SCI spent $38,672 to retain forensic examiners to respond to the breach of its systems and restore the security of its systems. SCI also incurred $12,473 in printing and mailing required breach notifications to all affected clients. SCI has also been required to offer identity theft protection to all its affected clients, and has spent $63,712 for protection services accepted by affected clients. Finally, SCI also incurred significant costs in employee and executive team time which was redirected from SCI work to respond to the breach.

The total loss attributed to the fraudulent scheme is between $70,000 and $120,000.

Afonso faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge Marvin J. Garbis scheduled sentencing for March 23, 2015 at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney P. Michael Cunningham and Special Assistant U.S. Attorney Anthony V. Teelucksingh, who are prosecuting the case.

Stole Over $79,000 and Attempted to Murder a Witness Who Called 911

Greenbelt, Maryland – Four men have pleaded guilty to the armed robbery of employees who were transporting money in an armored truck, and to brandishing a firearm during a crime of violence. Antonio Lamar Cooper, age 27, of Washington, D.C.; Maurice Lorenzo Foreman, age 22, of Oxon Hill, Maryland; and Eugene Robert Watkins, age 22, of Washington, D.C., pleaded guilty late yesterday, the day before they were scheduled to go to trial. Co-defendant Juwan Armarni Watkins, age 21, of Washington, D.C. pleaded guilty on December 29, 2014.

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 Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

According to their plea agreements and court documents, on January 15, 2014 the defendants drove a stolen vehicle to a restaurant on Allentown Road in Morningside, Maryland. Outside the restaurant, two armored truck employees were transporting money from the restaurant. One of the defendants pointed a gun at an employee’s face, pushed her to the ground, placed his gun on the back of her head and took her gun. Another defendant pointed his gun at the second employee’s head and took his gun as well. The defendants, all or some of whom were wearing masks and brandishing firearms, robbed the employees of $72,106.54 in cash, $4,028.81 in checks, and personal property.

During their escape, a citizen who witnessed the robbery followed the defendants from the scene of the robbery, and called 911 while in pursuit. The defendants realized that the witness was following them and shot at the witness, hitting the windshield and body of the witness’ vehicle several times. During that shooting, the witness was struck in the face by glass and/or bullet fragments.

According to court documents, Prince George’s County Police officers pursued the defendants’ stolen vehicle into Washington, D.C. where the defendants got out of their vehicle and attempted to flee. With the assistance of a canine search initiated by Metropolitan Police officers, the defendants were subsequently arrested.

The defendants face a maximum sentence of 20 years in prison for interfering with interstate commerce by robbery; and a mandatory minimum of 10 years in prison, consecutive to any other sentence, and up to life in prison for using a firearm during the robbery. U.S. District Judge George Jarrod Hazel has scheduled sentencing for Cooper on March 16, 2015, at 9:30 a.m., for J. Watkins on March 20, 2015 at 1:30 p.m., for E. Watkins on April 28, 2015, and for Foreman on April 29, 2015, both at 9:30 a.m. All of the defendants remain detained.

United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Daniel C. Gardner, Michael T. Packard and William D. Moomau, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr., sentenced Davon Taylor, age 25, of Baltimore, today to 130 months in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute heroin.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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 his plea agreement, from July through November 2012, Taylor conspired with Shawn Jackson and others to obtain and distribute heroin in and around the Park Heights and Belvedere neighborhoods of Baltimore. During the conspiracy Taylor and others operated a street level drug distribution shop in those areas, dispensing street level and wholesale quantities of heroin to customers, some of who traveled from Pennsylvania to acquire the heroin. In September 2012, the DEA obtained a court-ordered wiretap on Shawn Jackson’s cell phones. Based on these intercepted conversations, law enforcement determined that Taylor was working as a “street hitter” for the organization. On several occasions, DEA intercepted conversations between Jackson and customers in Pennsylvania, who were traveling to obtain heroin. Jackson would direct Taylor, or another “hitter” to serve the Pennsylvania customer the requested quantity of heroin

As a result of his participation in the drug conspiracy, Taylor was responsible for the distribution of between one and three kilograms of heroin.

Shawn Jackson, age 25, of Baltimore, previously pleaded guilty to his role in the conspiracy and was sentenced to five years in prison.

United States Attorney Rod J. Rosenstein commended the DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James T. Wallner and Scott A. Lemmon, who prosecuted the case.

Also Used the Personal Information of Former Clients to Falsely Claim Them as Dependents on Current Clients’ Returns

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Julius Valentine Williams, age 61, of College Park, Maryland today to five years in prison, followed by three years of supervised release, for aiding and assisting in filing false tax returns, filing false tax returns, wire fraud and aggravated identity theft. Judge Grimm entered an order requiring Williams to pay restitution of $1 million.

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

“In preparing tax returns for his clients, Julius Valentine Williams added false deductions, expenses and credits to wipe out their tax liabilities and in many cases to claim fraudulent tax credits, so the IRS paid out tax revenue instead of collecting it,” said U.S. Attorney Rod J. Rosenstein. “Mr. Williams also filed fraudulent tax returns in his own name in his scheme to rip off the taxpayers.”

“While most tax return preparers provide excellent service to their clients, a few dishonest return preparers give the industry a black eye. IRS-CI works year round to investigate dishonest return preparers and protect the American taxpayer’s money,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Return preparers must comply with the same tax obligations as the clients that they serve. No one is above the law.”

According to his plea agreement, Williams was a tax return preparer who owned and operated Julius Williams Tax Service out of his home in College Park. During tax years 2007 through 2010, William prepared and submitted to the IRS more than 5,000 client individual tax returns. Many of Williams’ clients were from Jamaica and resided in the United States under a temporary worker program. At the end of their employment, they were required to return to their home countries. Williams admitted that when preparing tax returns for these clients, he added false items, such as false Schedule C businesses, false deductions, false Earned Income tax credits, and false education credits, in order to fraudulently increase the size of the refund to the client.

In addition, Williams kept detailed lists of identification information of former clients who had returned to their home countries, including names, social security numbers and dates of birth. Williams then used that identification information, without the former clients’ knowledge or permission, to claim them as dependents on the income tax returns of current clients, in order to fraudulently increase the refunds on those returns.

Williams also filed false personal tax returns for tax years 2007 through 2010, in which Williams underreported his income from his tax business by a total of more than $1 million. As a result, the tax loss to the government was approximately $411,056, for those years. Williams also used the personal identification information of his former clients to fraudulently claim them as dependents on his personal income tax returns, which increased his refund and resulted in additional the taxes owed to the government.

As a result of the fraudulent tax returns prepared by Williams for his clients, and his own fraudulent returns, the total tax loss to the government is at least $1 million.

United States Attorney Rod J. Rosenstein praised the IRS-CI for its work in the investigation and thanked Assistant U.S. Attorneys Kelly O. Hayes and Sean R. Delaney, who prosecuted the case.

Defendant Must Forfeit Cash, Jewelry and Luxury Automobiles; Conspiracy Generated Total of $108 Million in Revenue

 

Greenbelt, Maryland – Anthony Torrell Tatum, age 36, of Arlington, Virginia, pleaded guilty late yesterday to drug and money laundering conspiracies, and possession of a firearm in furtherance of drug trafficking. As part of his guilty plea, Tatum consented to the entry of a $108 million forfeiture order, including luxury vehicles, jewelry and cash.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief of Police Robert D. MacLean of the U.S. Park Police; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

According to his plea agreement, from at least January 2011 through his arrest on September 6, 2013, Tatum conspired with others to distribute cocaine and heroin in Maryland and elsewhere. A co-conspirator, Ishmael Ford-Bey communicated with the drug supplier, who was located in California. The supplier shipped kilograms to Ford-Bey, using a truck driver to transport the cocaine. The same procedure was followed for each of the deliveries. The truck driver would communicate with the source in California and with Ford-Bey. After Ford-Bey took the boxes of drugs, a co-conspirator would usually drive up and deliver a box of money to the truck driver to be returned to the supplier in California.

On August 28, 2013, a search warrant was executed on a storage unit Tatum had rented in Fort Washington, Maryland, using an alias. Law enforcement agents located and seized, among other things, approximately one kilogram of cocaine wrapped in a white T-shirt, inside a black plastic bag, which was inside a cardboard box addressed to Tatum; approximately 258 grams of cocaine in three clear plastic bags, as well as multiple empty plastic bags, all found in the same cardboard box; approximately 195 grams of heroin in two clear plastic bags and approximately 6.9 grams of cocaine in one clear plastic bag, all found in a large black paper bag; a vacuum food sealer; a black 7.62x39 assault rifle, and two 7.62x39 magazines.

On September 6, 2013, a search warrant was executed at an apartment in Arlington, Virginia. In the apartment, law enforcement agents seized, among other things, $7,823 in cash; a Maryland Driver’s license in the name of the alias used by Tatum to rent the Fort Washington storage unit, but bearing Tatum’s picture; six cellular telephones; blank checks and business documents in the name of businesses used by Tatum to facilitate the drug and money laundering conspiracies; a book titled “Cover Your Tracks Without Changing Your Identity; How to Disappear Until You Want to Be Found”; and pieces of expensive jewelry and clothing. Tatum also was located at the apartment and arrested.

Also on September 6, 2013, a search warrant was executed on a storage unit used by the conspirators in Temple Hills, Maryland. Law enforcement agents seized, among other things, two digital scales with drug residue; approximately 0.083 grams of heroin recovered from a glass table top; a Glock 30 handgun, a ten round magazine, and.45 caliber ammunition; two boxes of ziplock bags; and a payment receipt for the storage unit in the name of Tatum.

On October 1, 2013, a search warrant was executed at the apartment of a co-conspirator that Tatum and Ford-Bey had been identified as visiting. Agents located a safe which contained $823,640 in cash, several expensive watches, and jewelry. In addition, agents recovered scales, three heat sealers, a coffee grinder, a currency counter, and other drug paraphernalia, as well as approximately 350 grams of cocaine. Latent fingerprints recovered from the heat sealers were identified as Tatum and Ford Bey’s.

In an effort to disguise and hide their drug proceeds, Tatum and others created numerous business entities, which had little, if any legitimate business. Tatum set up bank accounts in the name of each business and deposited drug proceeds into those business accounts. On September 6, 2013, warrants were executed on bank accounts in the name of Tatum or his businesses, resulting in the seizure of over $185,000. Tatum used drug proceeds to purchase a BMW, a 2013 Volvo, a 2010 Land Rover. Tatum also used drug proceeds to purchase expensive jewelry, including men’s watches.

Tatum faces a minimum mandatory sentence of 10 years in prison and up to life in prison for the drug conspiracy, a maximum of 20 years in prison for the money laundering conspiracy; and a mandatory minimum sentence of five years, consecutive to any other sentence, and maximum of life in prison for the gun charge. The government will recommend a sentence of 35 years in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for May 18, 2015 at 9:30 a.m.

Ishmael Ford-Bey, age 40, of Mitchellville, Maryland, previously pleaded guilty to nine counts of a superseding indictment charging him with conspiracy, possession with intent to distribute cocaine, using a phone to facilitate drug distribution, and money laundering. As part of his guilty plea, Ford-Bey also consented to the entry of a $108 million forfeiture order, including luxury vehicles, jewelry and cash. He is scheduled to be sentenced on March 5, 2015, at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended the DEA, FBI, Prince George’s County Police Department, U.S. Park Police and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Raymond Scott Vincent, age 47, of Gaithersburg, Maryland, yesterday to two days in prison and 60 days of home confinement as part of 18 months of probation, for a pattern and practice of knowingly hiring unauthorized aliens. Judge Grimm also ordered Vincent to perform 80 hours of community service, pay a fine of $36,000 and forfeit $42,262.60.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.

According to his plea agreement, Vincent was the owner of RSV Pools, a pool service company that provided lifeguards and pool maintenance to pools in the Washington, DC metropolitan area. From January 2009 through June 2013, RSV hired at least 12 unauthorized aliens. Vincent approved the employment of each unauthorized alien and knew that at least three of the individuals were not legally authorized to work when he approved them for employment. The other nine employees were legally authorized for employment when they were hired, but their work status expired and they continued employment with RSV, all with Vincent’s knowledge. Vincent approved paying four of the unauthorized employees in cash so that they did not appear on RSV’s books.

Vincent also permitted at least three of the unauthorized aliens to rent a company apartment in 2012 and 2013. Vincent profited, either directly or indirectly through RSV, from the unauthorized aliens’ rent payments.

In a related case, Judge Paul W. Grimm previously sentenced Milen Radomirski, age 34, a Bulgarian national residing in Germantown, Maryland, to two years in prison for visa fraud and ordered Radomirski to forfeit $100,000. Radomirski worked for RSV from 2003 to August 2013. As part of his employment, Radomirski recruited international workers that RSV could sponsor to work in the U.S. on H-2B visas and other short-term visas. Radomirski admitted that he fraudulently obtained more than 100 H-2B visas. An H-2B visa is a non-immigrant visa granted to citizens of other countries to work in the U.S. on a temporary basis. Although sponsored workers could not legally be employed by any other company, Radomirski knew that many of the visa beneficiaries would not work for his company at all, would only work at his company for a short period of time, or would work for other employers in addition to his company.

As part of Vincent’s plea agreement, neither he nor his company can apply for visas or work permits for any foreign workers for three years.

United States Attorney Rod J. Rosenstein praised the agencies participating in the Document Benefit Fraud Task Force - HSI Baltimore, Department of Labor – Office of Inspector General; U.S. Department of State’s Diplomatic Security Service and U.S. Citizenship and Immigration Services - for their work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.

Corruption of Letter Carriers a “Significant Vulnerability” for Postal Service

 

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced former U.S. Postal Service letter carrier Devona Ursula Charley, age 27, of Washington, D.C., today to a year and a day in prison, followed by 6 months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute marijuana, and a bribery conspiracy.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.

“The corruption of postal employees is a significant vulnerability in the system,” said U.S. Attorney Rod J. Rosenstein. “Through the coordinated efforts of the U.S. Postal Inspection Service and other law enforcement agencies, we are investigating several cases involving letter carriers who took bribes to divert shipments of illegal drugs.”

According to her plea agreement, from at least September 2013 through April 2014, Charley, a U.S. Postal Service letter carrier, conspired with Dominique Jones and others to distribute marijuana. In addition, Charley admitted that she received money to deliver mail packages to Jones that were addressed to other people. Charley knew that the packages contained marijuana.

Specifically, Charley provided Jones with addresses for the shipment of packages along her postal route. Charley agreed to deliver the packages to Jones even though they were addressed to another person. Her co-conspirators agreed to pay Charley $350 per package. Based on the information provided by Charley, packages containing marijuana were shipped to the addresses provided by Charley. When the packages arrived at the post office, Charley picked up the packages and texted Jones. Jones and an associate then met Charley along her mail route and Charley delivered the packages.

Based upon her role in the conspiracy, Charley is responsible for the distribution of between 40 and 60 kilograms of marijuana which was valued at between $70,000 and $120,000.

Dominique Jones, age 29, of Oxon Hill, Maryland, previously pleaded guilty to his role in the conspiracy and was sentenced to 54 months in prison.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service and Prince George’s County Police Department for their work in the investigation and thanked Assistant U.S. Attorney Deborah A. Johnston, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Brian McCloskey, age 42, of Baltimore today to 41 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud arising from a $20 million investment fraud scheme. Judge Motz ordered McCloskey to pay restitution of $15.850 million.

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

According to his plea agreement and court documents Brian McCloskey, who owned a real estate development business known as the McCloskey Group, LLC., and Patrick Belzner, a home builder who began working with McCloskey in late 2008 or early 2009, conspired with others to perpetrate a fraudulent investment scheme with losses to the victims of more than $15 million.

McCloskey and Belzner’s co-conspirators included Kevin Sniffen, a licensed attorney and escrow agent and Mervyn Phelan, who operated IAG Underwriters (IAGU) which 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.

Beginning in 2009 and continuing through June 2011, Belzner and McCloskey 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. Belzner and McCloskey falsely represented that the funds would be maintained in an escrow account under the control of Kevin Sniffen; 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, Belzner and McCloskey 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 Kevin 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.

Once the lenders transferred their funds into the escrow accounts, Belzner and/or McCloskey removed 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.

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; and Kevin Sniffen was sentenced to three years in prison and ordered to pay restitution of $15.85 million.

Mervyn A. Phelan, Sr., age 74, of Newport Beach, California, pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on January 23, 2015, at 2:45 p.m.

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.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Terrance Milik Marshall, age 41, of Scaggsville, Maryland, yesterday to eight years in prison, followed by three years of supervised release, for illegally possessing two firearms in a school zone.

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

According to Marshall=s plea agreement, on February 7, 2014, during a routine patrol, law enforcement observed Marshall’s vehicle idling an a non-residential area in Hyattsville, within 1,000 feet of a school. Marshall was sitting in the vehicle smoking a cigar. When the officer got out and approached Marshall’s vehicle, Marshall jumped out and refused to return to his vehicle. Marshall told the officer “I don’t want to talk to you. I’m leaving,” then locked his car using the key-fob, and took off running. The officer caught up with Marshall and detained him.

Upon returning to the vehicle, the officer shined his flashlight into the vehicle and saw a 9mm firearm with an extended magazine in an orange bag on the front passenger seat. Marshall was then placed under arrest. On February 6, 2014, Marshall had been parked in the school zone at the same location and had in his possession at that time a semiautomatic firearm. Both firearms were recovered from the orange bag, loaded with 30 and 15 rounds of 9mm ammunition, respectively.

United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney David I. Salem and Special Assistant U.S. Attorney Jennifer Sykes, of the U.S. Department of Justice, Organized Crime and Gang Section, who prosecuted the case.

Baltimore, Maryland –Aaron G. Seltzer, age 38, of Trappe, Maryland, pleaded guilty today to wire fraud in connection with a scheme in which he converted funds intended for real estate investments to his personal use.

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

According to his plea agreement and court documents, Seltzer was a licensed Maryland attorney who handled real estate transactions and maintained an office in Crofton, Maryland. From January 2008, through 2010, Seltzer offered victims fraudulent investment opportunities then diverted the money intended for the investments for his own benefit. Seltzer obtained a total of $768,242 through seven fraudulent transactions. As part of his plea agreement, Seltzer is required to pay restitution in that amount.

For example, Seltzer offered to sell an investor 45% of an Anne Arundel County real estate company, claiming that he owned 100% of the stock, assets and liabilities of the company, when in fact, he did not. The investor sent a total of $92,000 to Seltzer, which Seltzer used for his own benefit. During the summer of 2009, Seltzer contacted a lawyer in New York and represented that a client of Seltzer’s was seeking a business loan. Seltzer proposed that the loan be secured by a mortgage on three commercial properties located in Virginia, purportedly owned by Seltzer’s client. The New York attorney assembled a group of investors to fund the loan. Seltzer presented the attorney with a fraudulent promissory note, which Seltzer falsely claimed was signed by a representative of his client. Seltzer further falsely represented that he had conducted the closing for the loan and presented the attorney with fabricated closing documents. On behalf of the investors, the attorney wired Seltzer $497,527 to fund the loan, which Seltzer diverted to his own benefit.

Seltzer was investigated by the Maryland Attorney Grievance Commission for his conduct in the scheme and was subsequently disbarred.

Seltzer faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge J. Frederick Motz has scheduled Seltzer’s sentencing for April 10, 2015, at 10:00 a.m.

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

Also Admits Facilitating a 16 Year Old Girl to Engage in Prostitution

 

Baltimore, Maryland –Richard Ho Lee, age 32, of Baltimore, pleaded guilty today to receipt of child pornography.

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

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

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

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

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

Lee and the government have agreed that if the Court accepts the plea agreement Lee will be sentenced to between five and 11 years in prison, followed by supervised release of between five and 11 years. As part of his plea agreement, Lee is required to forfeit property that was used or intended to be used to commit or to promote the commission of the offenses to which Lee has pleaded guilty. The property to be forfeited includes Lee’s home in the 600 block of South Wolf Street in Baltimore, two laptop computers and an external hard drive. District Judge J. Frederick Motz has scheduled sentencing for March 20, 2015, at 11:00 a.m.

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

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

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.

Baltimore, Maryland – Curlee Smittie, age 42, of Baltimore, pleaded guilty today to wire fraud in connection with a scheme to defraud his bank and an automobile auction house of more than $600,000.

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

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

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

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

Smittie admitted that to perpetrate the scheme, he would list an automobile that he already owned for sale under the name of another registered automobile dealer. Smittie then purchased the automobile in his own name or the name of Smittie Auto Brokers, using the auction company’s short term credit program. This created the appearance of an arm’s length transaction, when in fact, Smittie was merely “selling” the car to himself using the company’s money.

As the person who had listed the car for auction, Smittie accepted the seller proceeds check from the company, which was made out in the name of the automobile dealer that Smittie had used to list the automobile for auction. Smittie deposited those checks into his business checking account, held in the name of Smittie Enterprises, Inc. When the time came for Smittie to repay the short term loan from the auction company, Smittie sold another car to himself in the same manner, and used the seller proceeds to pay the previous debt.

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

In January 2009, employees at the auction company learned of Smittie’s scheme and ordered its bank to stop payment on all checks to sellers from whom Smittie had purchased automobiles. Once all of the checks that had been recently deposited into the Smittie Enterprises checking account were reversed, the bank was left with a loss of $166,500.16 because the balance in the Smittie Enterprises account was not sufficient to cover the reversed checks.

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

Smittie and the government have agreed that if the Court accepts the plea agreement Smittie will be sentenced to 18 months in prison. As part of his plea agreement, Smittie will also be required to pay restitution of $632,850.24. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for March 27, 2015 at 2:00 p.m.

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

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Duane Thomas Mobley, age 40, of Upper Marlboro, Maryland, today to nine years in prison, followed by three years of supervised release, for conspiring to rob a business and brandishing a firearm during a crime of violence, in connection with the May 22, 2013 armed robbery of a pizza restaurant.

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 State’s Attorney Angela D. Alsobrooks.

According to Mobley’s plea agreement, he conspired with Keith Dana Steedley, Jr. to rob a pizza restaurant in Largo, Maryland. Steedley went into the restaurant brandishing a shotgun, while Mobley stayed by the front door. Steedley pointed the shotgun at several employees and demanded money. Steedley took five dollars from a store employee and the cash register money drawer, which contained $90. Steedley and Mobley got into a vehicle and fled. Witnesses called 911 and provided a description of the getaway vehicle.

While responding to the 911 calls, a Prince George’s County Police Department (PGPD) officer saw a vehicle matching the description of the getaway car a few blocks from the restaurant. The officer saw the vehicle turn onto a dead end street and followed. As the officer turned into the street, he saw Steedley bail out of the passenger side of the vehicle and run into a wooded area. A K-9 search was conducted and Steedley was found hiding in the woods. A search of the area recovered forty-eight one dollar bills. Victims brought to the scene identified Steedley as the person who robbed them. A subsequent search of the vehicle recovered the shotgun used in the robbery, a starter’s pistol on the passenger floorboard, a money drawer from a cash register, and cash and receipts from the pizza restaurant. The vehicle was registered to Mobley.

The next morning a woman called 911 when she saw a man coming down the street shouting for help. The woman stated that the man – later identified as Mobley – was “taped up.” In an interview with PGPD officers, Mobley falsely claimed that he had been carjacked and kidnapped the night before and gave a written statement to police recounting his purported kidnapping. During the investigation of Mobley’s kidnapping, PGPD officers realized that Mobley was the registered owner of the vehicle used in the pizza restaurant robbery. After being questioned by police, Mobley admitted that he had been involved in the robbery and that his claim of being carjacked and kidnapped was false.

Telephone records also show several calls between Mobley and Steedley shortly before the robbery.

Keith Dana Steedley, Jr., age 29, of Germantown, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to 11 years in prison.

United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced David Chittams, age 34, of Lanham, Maryland, today to 92 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP).

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; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to Chittams’ plea agreement, between December 2012 and January 2013, Chittams conspired with Richard Brown and others to distribute PCP. Specifically, on three occasions between December 18, 2012 and January 16, 2013, Chittams was with Richard Brown when Brown distributed approximately 345 grams (over 12 ounces) of PCP to a cooperating witness, meeting the witness at the Capitol Heights Metro station to conduct the transactions.

On January 31, 2013, after observing Chittams entering the residence through the carport, agents executed a search warrant Chittams’ residence. During the search, law enforcement seized a plastic Gatorade bottle containing approximately 502 grams of PCP, starter fluid (which is commonly used as a PCP cutting agent), and a large box of empty bottles frequently utilized for PCP distribution, all of which were found in a shed in the carport. Chittams was arrested.

At least a portion of the PCP that Richard Brown distributed to the cooperating witness was supplied by Chittams. Based on his involvement in the conspiracy, Chittams was responsible for the distribution of between one and three kilograms of PCP.

Richard Brown, age 29, of Lanham, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to 10 years in prison.

United States Attorney Rod J. Rosenstein praised the DEA, ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Adam K. Ake and Arun G. Rao, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Kevin Sniffen, age 53, of Phoenix, Maryland, an attorney licensed in Maryland, today to three years in prison, followed by three years of supervised release, for conspiring to commit wire fraud arising from an investment fraud scheme. Judge Motz also ordered Sniffen to pay restitution of $15.85 million.

Judge Motz also sentenced Sean Krondak, age 46, of Irvine California, today to six months of home detention as part of three years’ probation for obstructing justice.

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

According to their plea agreements and court documents, Sniffen and Krondak were part of a fraudulent scheme carried out by Patrick Belzner and Brian McCloskey. 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. Krondak was employed as the Vice President – Loan Officer & Underwriting at IAG Underwriters, LLC, (IAGU) run by Mervyn Phelan. IAGU, which maintained an office in Newport Beach, California, was in the business of underwriting loan applications submitted by real estate developers and then locating project financing from banks and other financial entities. Gregory Grantham, an attorney, held the position of IAGU’s general counsel on a part-time basis as a contract employee. IAGU began working with the McCloskey Group trying to locate sources of financing for its projects in about 2009.

Beginning in 2009 and continuing through June 2011, Belzner and McCloskey 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. Belzner and McCloskey falsely represented that the funds would be maintained in an escrow account under the control of Kevin Sniffen, a licensed 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, Belzner and McCloskey promised to pay substantial rates of interest.

Beginning in about 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 Kevin 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 knowingly participated in the scheme by sending emails and other communications that he knew contained false information to victim lenders directly, or to Belzner, McCloskey and Sniffen for them 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.

After the scheme was exposed, Krondak assisted Phelan and Grantham in withholding and destroying relevant emails in response to federal grand jury subpoenas issued to IAGU and to Phelan and Grantham personally.

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. Brian McCloskey, age 42, of Baltimore, and Mervyn A. Phelan, Sr., age 74, of Newport Beach, California, each pleaded guilty to his role in the conspiracy and are both scheduled to be sentenced on December 23, 2014. 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.

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.

U.S. Attorney Warns that “Parents Must Be Relentless About Reading Children’s Text Messages and Checking Their Social Media Accounts

 

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Anthony Dennis Williams II, age 28, of Severn, Maryland, a former employee at the Fort Meade Youth Center, to eights years in prison, followed by three years of supervised release, for abusive sexual contact, and sexually abusing a minor.

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 Frank Robey, Director, U.S. Army Criminal Investigation Command (CID), Major Procurement Fraud Unit.

“Parents must to be relentless about reading children’s text messages and checking their social media accounts,” said U.S. Attorney Rod J. Rosenstein. “Keep your children’s passwords, read all of their incoming and outgoing messages, and take immediate action if they send or receive inappropriate messages.”

"We are very pleased with today's sentencing and will continue to do everything in our power to see predators like this brought to justice," said Special Agent Ed Collins with the U.S. Army Criminal Investigation Command. "We will continue to aggressively work shoulder to shoulder with our fellow law enforcement agencies to protect our most valuable and precious resource for the future -- our children."

According to his plea agreement, for about eight years prior to 2013, Williams was a counselor at the Fort Meade Child and Youth Services center. Williams also taught a program at the center called Passport to Manhood (P2M) which was a life course for juvenile males attending CYS. In this program, he went on annual overnight trips with some of the youth members.

During the summer of 2013, CID investigators learned that Williams may have had illegal sexual contact with at least one boy he met at the center. The boy’s mother found text messages between her son and Williams referencing sexual acts. When interviewed by officers of the Citrus County, Florida, Sheriff’s Office, and later by CID, the boy said he attended the center while in 7th grade and participated in the P2M programs. One day while at the center, Williams asked the boy to go to the attic of the center to get equipment. Once there, Williams asked the boy to take his clothes off. The boy refused. Williams put the boy’s hands on Williams’ genital area, and Williams then touched the boy’s genital area. Williams was about 25 years old, and the boy 12 years old, during this incident. Williams also sent the boy at least one photo of his exposed genital area.

In October 2013, FBI and CID agents interviewed Williams. Williams identified a second boy with whom he had contact at the center. This additional victim was interviewed, and stated that Williams took him to the center’s attic and solicited oral sex from him. They had oral sex on one occasion in the attic when the victim was in eighth grade. They also had anal sex on another occasion outside of Ft. Meade, when the victim was about 16 years old.

FBI and CID agents canvassed other patrons of the center and friends of Williams. One individual, who had worked with Williams at the center, advised that in years past her children hung out with Williams, and slept over at Williams’ house. The woman’s oldest son reported that some years earlier, when he was in elementary school and spent a night at Williams’ apartment in Odenton, Maryland, he woke in the middle of the night to what he thought was Williams grabbing him in the genital area. During another sleep-over at Williams’ house, the boy said he fell asleep on the floor, and woke up in a bed, and his bottom felt funny.

United States Attorney Rod J. Rosenstein praised the FBI and Army CID for their work in the investigation and thanked the Citrus County, Florida Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.

Allegedly Acquired DEA Government Credit Cards Which She Used to Obtain Over $115,000 in Cash

 

Greenbelt, Maryland – Keenya Meshell Banks, age 41, of Upper Marlboro, Maryland, was charged by criminal complaint with access device fraud, wire fraud and aggravated identity theft, in connection with a scheme to fraudulently obtain and use DEA government credit cards. Ms. Banks was arrested and had her initial appearance on December 18, 2014, in U.S. District Court in Greenbelt. She was released under the supervision of U.S. Pretrial Services.

The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael Tompkins of the Department of Justice Office of the Inspector General.

According to the affidavit filed in support of the criminal complaint, Banks worked as a DEA Program Manager in Northern Virginia, and was responsible for the approval and issuance of government credit cards to DEA employees. The affidavit alleges that from June 2010 through October 2014, Banks fraudulently acquired 33 DEA credit cards.

Specifically, Banks allegedly submitted applications that included the names and identifying information of individuals who did not work for DEA and therefore were not eligible to receive DEA government credit cards. On at least one occasion, Banks submitted an application that matched a current DEA employee. The employee never received the card and Banks allegedly used the personal information of the employee without the employee’s knowledge or approval. The credit cards were ordered by Banks via email, and the cards were sent to Banks via Federal Express or other mail, based on her certification on the applications.

The criminal complaint alleges that Banks used the cards at Automated Teller Machines in Maryland and Northern Virginia, withdrawing approximately $115,841.74 over the course of the scheme. No payment was ever made to the credit card issuer.

Banks faces a maximum sentence of 10 years in prison for access device fraud; 20 years in prison for wire fraud; and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft.

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

United States Attorney Rod J. Rosenstein praised the Department of Justice Office of Inspector General for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P. Windom, and Trial Attorneys Justin Weitz and Richard B. Evans from the U.S. Department of Justice, Public Integrity Section, who are prosecuting the case.

Conspirators Presented Over 1,400 Counterfeit Checks to Target Stores in Over Two Years, Resulting in a Loss of at Least $485,000

 

Greenbelt, Maryland – Ebony Nicole Ruffin, age 28, of District Heights, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to defraud Target Corporation.

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

According to her plea, from September 2011 to November 2013, Ruffin, Nichelle Rogers, Sheree Brown and others conspired to use counterfeit personal checks and false identifications to fraudulently obtain Visa gift cards and other merchandise from Target stores in Maryland, District of Columbia, Virginia, West Virginia, Pennsylvania and North Carolina. Ruffin and her co-conspirators presented over 1,400 counterfeit checks at Target stores as payments for merchandise and gift cards, resulting in a total loss to Target of at least $485,000.

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

Ruffin faces a maximum sentence of 20 years in prison and a fine of $250,000. U.S. District Judge Deborah K. Chasanow scheduled her sentencing for March 23, 2015, at 3:00 p.m.

Sheree Lanet Brown, age 35, and Nichelle Nicole Rogers, age 28, both of Washington, D.C., previously pleaded guilty to their participation in the scheme and are scheduled to be sentenced on April 24 and March 23, 2015, respectively.

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

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

Also Robbed Three More Convenience Stores at Gunpoint

 

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Brandon Ferrell, age 23, and Stephanie Amber Smith, age 24, both of Baltimore to 20 years in prison and thirteen years in prison, respectively, each followed by three years of supervised release, for the armed robbery of a convenience store on September 27, 2013, and possession of a firearm in furtherance of a crime of violence. The couple admitted that they committed three additional armed convenience store robberies two days later. Ferrell was sentenced on December 17, 2014 and Smith was sentenced today.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

According to their plea agreements, on September 27, 2013, Ferrell and Smith stole approximately $160 from a convenience store located in the 3500 block of Boston Street in Baltimore. Ferrell entered the store first, grabbed an iced-tea and walked to the counter. Then Smith entered the store, pointed a semi-automatic pistol at the clerk, and demanded money. Ferrell removed the money from the cash drawer located behind the counter. Ferrell and Smith then fled the store.

Ferrell and Smith robbed three other convenience stores at gunpoint on September 29, 2013.

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

Ship Captain Poached Hundreds of Thousands of Pounds of Striped Bass

 

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced William J. Lednum, age 41, of Tilghman Island, Maryland, today to a year and a day in prison, followed by six months of home detention as part of three years of supervised release, for conspiring to violate the Lacey Act and to defraud the United States through the illegal harvesting and sale of 185,925 pounds of striped bass. Judge Bennett also ordered Lednum to pay $498,293.40 in restitution to the State of Maryland for the damage caused to the Striped Bass fishery. In addition, Judge Bennett ordered Lednum to pay a fine of $40,000.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division Sam Hirsch; Secretary Joe Gill of the Maryland Department of Natural Resources (DNR); and Honora Gordon, Regional Special Agent in Charge for the U.S. Fish and Wildlife Service.

“We are very pleased with today's court decision,” said DNR Secretary Joe Gill. “This individual was stealing from Maryland citizens and law-abiding waterman. We are proud of the great work done by Maryland Natural Resources Police officers.”

According to his plea agreement, Lednum and his co-defendant, Michael D. Hayden, were “captains” on fishing vessels owned by them, William J. Lednum Fisheries, d/b/a, Michael D. Hayden, Jr., and Michael D. Hayden, Jr., Inc. The defendants also employed numerous “helpers” as part of this scheme, including, co-defendants Kent Sadler and Lawrence Daniel Murphy.

From at least 2007 to 2011, Lednum and Hayden engaged in a scheme to illegally poach at least 185,925 pounds of striped bass from the Chesapeake Bay in violation of Maryland regulations relating to harvest method, amounts, tagging, and reporting. In an effort to conceal their crimes, Lednum and Hayden admitted that they falsified paperwork related to their harvests and submitted those falsified documents to the State of Maryland. The State of Maryland in turn submits such paperwork to numerous Federal and interstate agencies responsible for setting harvest levels all along the eastern seaboard. Lednum and Hayden shipped and sold the striped bass to wholesalers in New York, Pennsylvania, Delaware and Maryland, receiving a total of $498,293.47 for the poached fish.

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

Co-defendants Michael D. Hayden, age 43, of Tilghman Island, Lawrence “Daniel” Murphy, age 37, of St. Michaels, Maryland, and Kent Conley Sadler, age 31, of Tilghman Island, previously pleaded guilty to their participation in the conspiracy. Murphy is scheduled to be sentenced on December 19, 2014, Sadler is scheduled to be sentenced on January 7, 2015 and Hayden is scheduled to be sentenced on February 27, 2015.

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

Took $20,000 to Cancel Debt Owed to City and Took $70,000 to “Sell” Government Property

 

Baltimore, Maryland - Barry Stephen Robinson, age 65, of Accokeek, Maryland, pleaded guilty today to two counts of bribery, and one count of money laundering, in connection with a bribery scheme perpetrated earlier this year while he was Chief of the Division of Transit and Marine Services of the Baltimore City Department of Transportation.

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

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

“The amount of money Barry Robinson admitted to accepting demonstrates his willingness to line his own pockets in exchange for his influence, and his actions are why many people distrust the government. Any public servant who puts a price on his or her position doesn’t have the greater good in mind and they should be held accountable,” said Steve Vogt, Special Agent in Charge of the Baltimore Division of the FBI.

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

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

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

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

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

Robinson faces a maximum sentence of 20 years in prison for money laundering and 10 years in prison on each of two bribery counts. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for March 27, 2015, at 10:00 a.m.

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

Brandished a Gun During the Robbery

 

Greenbelt, Maryland – Donnell Edward Harris, age 21, of Burtonsville, Maryland, pleaded guilty today to robbing a convenience store in Waldorf, Maryland, and to brandishing a gun during the robbery.

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

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

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

Johnson, age 20, of Beltsville, Maryland, and Madani Ilara Tejan, age 32, of Upper Marlboro, Maryland, previously pleaded guilty to the robbery.

Harris, Johnson and Tejan each face a maximum sentence of 20 years in prison for the robbery. Harris also faces a mandatory seven years, consecutive to any other sentence, and up to life in prison, for brandishing a gun in relation to a crime of violence. U.S. District Judge George Jerrod Hazel has scheduled sentencing for Harris on March 20, 2015, at 9:00 a.m. Johnson and Tejan are both scheduled to be sentenced on January 12, 2015, at 9:30 a.m. and 2:00 p.m., respectively.

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

Baltimore, Maryland – U.S. District Judge George L. Russell III, sentenced Frank Hill, age 30, of Baltimore, today to 12 years in prison followed by five years of supervised release for an armed commercial robbery and brandishing a firearm in relation to a crime of violence.

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

According to his plea agreement, on April 7, 2013, Hill and two co-conspirators went into a pizza restaurant in Severn, Maryland, with guns drawn. The three robbers each had a firearm, which they pointed at the employees, and demanded money. One of the robbers struck an employee in the back of the head with a firearm. The employees were then placed in a back room or the walk-in freezer, and their hands and feet were bound with duct tape. The robbers took approximately $2,078 in cash belonging to the restaurant. The business was shut down for a brief period of time in connection with the police department’s investigation of the robbery.
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On April 26, 2013, Hill provided two men with a car, as well as a handgun and a pistol grip shotgun, which the men then used to rob a liquor store on Bowleys Lane in Baltimore. The robbers approached an employee of the store and forced him inside the business. Once inside the liquor store, the robbers demanded money and the employee, in fear for his life, provided approximately $70,000 in cash and goods. Hill admitted he received proceeds from this robbery.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department, Anne Arundel County Police Department and Baltimore City 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.

Used Stolen Personal Identifying Information to Pose as the Victim, Change the Victim’s Online Password and Email Address, and Stop Delivery of Mail in Attempt to Avoid Detection

 

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Alimamy Barrie, age 31, of Beltsville, Maryland, today to 112 months and a day in prison followed by three years of supervised release for wire fraud, aggravated identity theft and committing an offense while on supervised release. Judge Grimm also ordered that Barrie pay $26,500 in restitution.

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; and Chief Edwin C. Roessler Jr. of the Fairfax County, Virginia, Police Department.

According to evidence presented during the seven day trial, in 2011, Barrie was arrested and charged in federal court in the Eastern District of Virginia with aggravated identity theft. On September 26, 2011, Barrie was placed on pretrial release, and notified by court order of the potential effect of committing an offense while on release. On October 3, 2011, Barrie pled guilty to conspiracy to commit wire and mail fraud, arising from a scheme similar to the one described below in which he defrauded T. Rowe Price and an individual. Barrie remained on release through June 1, 2012, when he reported to the Bureau of Prison. The sentence imposed today is consecutive to the four year sentence imposed in the Eastern District of Virginia.

From January 26 to February 13, 2012, while Barrie was on court supervision and purportedly cooperating with the FBI, Barrie devised a scheme to use the personal identifying information of another individual to fraudulently steal money from the victim’s banking and retirement accounts.

Specifically, in January 2012, Barrie and his associates obtained the victim’s name, date of birth, social security number, mailing address and email address from an individual in New York. The co-conspirator provided Barrie and his associates with numerous “sheets” of potential victims’ identifying information. Barrie and his associates were responsible for researching the victims in order to identify who had money and where that money was held. Once Barrie and his associates found a victim with significant funds, they downloaded the victim’s credit history using the internet. If money was obtained from the victim, each of the participants in the fraud would get a “cut” of the money.

On January 30, 2012, after receiving the identifying information for the victim, Barrie called Fidelity Investments, where the victim maintained a 401(k) retirement account, and posed as the victim. Barrie provided the victim’s personal information and then inquired about the balance of the retirement account. Upon learning that the account had $1,020,160.40, Barrie described the account as a “treasure” and a “paradise.”

During this same call, Barrie, still pretending to be the victim, informed the Fidelity representative that the victim’s account access had been blocked online, and asked for help in resetting the online account access password. The Fidelity representative sent the password reset link to the victim’s legitimate email address, which was the email address associated with the victim’s Fidelity account at the time. Within minutes, Barrie accessed the victim’s email account online.

Approximately 45 minutes later, Barrie created a fraudulent email address, logged onto the victim’s Fidelity account and changed the legitimate email address to the fraudulent one he had created, so that the victim would not receive any email notices from Fidelity regarding withdrawals made to the victim’s account. For the same reason, Barrie also requested the U.S. Postal Service to stop delivery of the victim’s mail.

On February 1, 2012, a co-conspirator opened checking and savings accounts at a JP Morgan Chase Bank branch in New York in the victim’s name using the victim’s personal identifying information. That same day, another associate in Indianapolis, Indiana established an electronic funds transfer link between the victim’s Fidelity retirement account and the fraudulent Chase bank accounts. An unknown associate thereafter requested a transfer of $210,403.61 from the victim’s Fidelity retirement account to one of the Chase bank accounts.

The next day, Barrie or an associate contacted the victim’s place of employment, pretending to be the victim. The caller verified the victim’s full social security number and the last four digits of the victim’s Wells Fargo bank account. The caller purportedly wanted to verify that the victim’s salary was directly deposited to the Wells Fargo account. Barrie thereafter ordered blank checks for three of the victim’s Wells Fargo accounts and had those checks sent to an address in Washington, DC. Three individuals thereafter cashed $26,500 worth of checks drawn on the victim’s Wells Fargo accounts. A fourth individual attempted to cash a $9,500 check, but was not successful. Barrie admitted that he and his associates drew these fraudulent checks in case the electronic transfer did not go through, so that he and his associates would get at least some money from the scheme.

On February 13, 2012, Barrie again called Fidelity posing as the victim, and again stated that online access to his account had been blocked and he needed help resetting his password. Barrie reset the password online. However, the victim had previously contacted Fidelity that day and requested that the electronic transfer be stopped, which Fidelity was able to do.

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

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Fairfax County, Virginia, Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O'Connell Hayes and Daniel C. Gardner, who prosecuted the case.

Items From Two Robberies Committed Two Days Earlier Were Also Found in Defendant’s Home

 

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Thomas Mims, age 53, of Baltimore, today to 15 years in prison, followed by eight years of supervised release, for robbery and using a firearm during a robbery. Judge Quarles also ordered Mims to pay $400 in restitution.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Baltimore City State’s Attorney Gregg L. Bernstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to his plea agreement, on February 3, 2014, Mims walked into a Rite-Aid on Belair Road in Baltimore, gestured towards his waistband to suggest that he was armed and demanded money from the cashier. The cashier ran away. After first trying to run after her, Mims ran from the store and drove away.

Later that day, Mims entered a retail store, also on Belair Road, and demanded money from an employee who was holding a cash register drawer at the customer service desk. Mims lifted his shirt to display the butt of a handgun. The employee ran away with the drawer into a back office. Mims then approached a cashier and demanded money from her register. The cashier saw Mims holding the gun in his hand. Mims also demanded that a customer give him her purse. When the customer’s fiancé intervened by pushing Mims away, Mims pointed the gun at the customer and pulled the trigger. The gun did not fire.

Mims left the store and pointed his gun at another customer in the parking lot, demanding her purse. When that customer did not immediately comply, Mims snatched her purse, ran to his vehicle and drove away.

Later that day, Mims entered a store on Erdman Avenue in Baltimore and displayed his gun, demanding money from the cashier. The cashier gave him $400 from the register. Mims demanded more money and when the cashier said there was none, Mims put his finger on the trigger of the gun and told the cashier she better not have lied to him. Mims then fled and drove away.

Witnesses called 911. Baltimore police officers soon located Mims’ vehicle and attempted to perform a traffic stop, but Mims sped off. Police trapped Mims’ vehicle in a cul-de-sac. As officers approached on foot, Mims sped toward them in his car. As a result, one officer shot Mims in the arm. Several minutes later the chase ended and Mims was arrested.

Police executed search warrants for Mims’ house and car. They seized a loaded handgun, two ski masks, and clothing worn by the suspect in a robbery at a Subway restaurant two days earlier on February 1, 2014, along with items stolen from an earlier robbery at Walgreens, also on February 1.

United States Attorney Rod J. Rosenstein commended the Baltimore City State’s Attorney’s Office, FBI and Baltimore Police Department for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer and Special Assistant United States Attorney Piper F. McKeithen, a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced John David White, age 42, of Waldorf, Maryland today to 248 months in prison, followed by four years of supervised release, for conspiracy to possess with intent to distribute cocaine and heroin, possession and attempt to possess with intent to distribute cocaine and heroin, maintaining a drug-involved premises and possession of a firearm in furtherance of a drug trafficking crime.

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; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Chief Mark A. Magaw of the Prince George’s County Police Department; Charles County Sheriff Troy Berry; and Chief Mark Fronterotta of the Inglewood, California Police Department.

According to evidence presented at the six-day trial, from at least August 2010 through June 6, 2013, White purchased illegal narcotics in California and shipped the drugs to Maryland for distribution. During this time period, White sent shipments from the East Coast to California via FedEx and private freight carriers. In April 2011, law enforcement intercepted one of the shipments and found $30,000 in vacuum sealed packaging. The evidence further established that from August 2010 through May 2013, White sent 25 shipments, weighing at least 140 pounds each, from California to Maryland, through several private freight carriers.

On May 28, 2013, law enforcement intercepted a crate shipment from California to a self-storage facility in Hyattsville, Maryland. Hidden inside a toaster oven within the crate were two bricks of cocaine weighing over two kilograms. The next day, a freight shipping company delivered the crate to the storage unit which was leased to White and a company that he controlled called City Urban. Later that same day, White arrived at the storage facility, unlocked his storage unit, pushed the crate inside and then closed his storage unit. As White attempted to leave the storage facility, he was arrested.

Law enforcement executed a search warrant on May 30, 2013 at White’s storage unit and found several empty crates; packaging material; two digital scales; metal measuring spoons, one of which had heroin residue; and three plastic bags containing approximately 185 grams of heroin. Law enforcement later executed a search at White’s residence on June 6, 2013, and seized $7,967; a .45 caliber pistol; ammunition; drug paraphernalia that contained heroin residue; and numerous cell phones, at least two of which contained text messages, in coded language, regarding the purchase and sale of narcotics.

United States Attorney Rod J. Rosenstein praised the DEA, Maryland Transportation Authority Police, Prince George’s County Police Department, Charles County Sheriff’s Office and Inglewood, California, Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Nicolas Mitchell and Adam Ake, who prosecuted the case.

Failed to Report Over $875,000 in Income for Tax Years 2006 through 2009

 

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Alexsander Korotitsky, age 54, of Reisterstown, Maryland today to six months in prison followed by six months of home detention as part of one year of supervised release, for filing false income tax returns. Judge Bennett sentenced Alexsander’s wife, Luba Korotitsky, age 50, also of Reisterstown, to one year of probation on the same charge. Judge Bennett also ordered the Korotitskys to pay restitution of $272,268.67.

The sentences were 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 William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.

According to their plea agreements, the Korotitskys each received income from separate sources that they deposited into their jointly held personal account, as well as other accounts, and failed to disclose that income to their income tax return preparer. As a result, the Korotitskys filed false income tax returns for tax years 2006 through 2009.

Luba Korotitsky is a 50% owner of a hair salon business. She diverted gross receipts from the hair salon business into the couple’s joint bank account, as well as an account in her name. Luba Korotitsky admitted that she provided the return preparer with the business bank account statements, but not with her personal bank statements.

Alexsander Korotitsky failed to report income he received from an installment sale contract related to the sale of his business, A&A Medical Supply, in 2006. He also failed to report substantial income he received from an associate through an account the associate controlled in the name of A&A International. Alexsander Korotitsky invested money in A&A International for the purchase and subsequent sale of vehicles abroad, and kept the profits of the sales. He also received income in the A&A International bank account from foreign owned businesses, wrote himself checks from the A&A International account, and used the account to pay personal expenses, such as the couple’s mortgage.

The investigation of the Korotitskys began during an investigation of an arson at the home of Saleh Fakhoury, when law enforcement learned that Korotitsky was a possible business partner of Fakhoury in a local pizzeria business. Korotitsky’s name appeared as an owner on the bank account for Fakhoury Enterprises. Over $215,000 was deposited in the Fakhoury Enterprises account from June 3, 2008 to February 2009, mostly checks from or for the benefit of the Korotitskys.

A search of the Korotitskys home on May 5, 2010, recovered over $70,000 in cash, as well as their 2008 and 2009 tax returns, which reflected that they had only $4,192 in taxable income in 2008 and no taxable income in 2009. A financial investigation by the IRS followed for tax years 2006 through 2009.

Investigation showed that the Korotitskys lived a lavish lifestyle, which was inconsistent with their reported income. The Korotitskys took cruises to Europe in 2006 and 2007; purchased expensive jewelry, including a $29,000 Patek Phillipe watch; and purchased luxury automobiles including a BMW and two Lexus. Alexsander Korotitsky used other people’s personal and business bank accounts to pay for his living expenses, cars, jewelry and vacations, and during the investigation maintained some level of control over at least eight companies’ business checking accounts.

A bank deposit analysis indicated that the Korotitskys had a total of $875,382.48 in unreported income for tax years 2006 through 2009. In April 2013, the couple filed amended tax returns for those years, which included checks totaling $66,184 as restitution to the IRS. However, the amended tax returns reflected that Alexsander Korotitsky earned the income from his wife’s beauty salon, not from any of the businesses which he was associated with, so the amended returns were also false.

The federal tax loss is approximately $230,688 and the Maryland tax loss is $41,580.67, resulting in a total of $272,268.67 owed by the defendants.

United States Attorney Rod J. Rosenstein praised the IRS-CI and ATF for their work in the investigation and thanked Assistant U.S. Attorney Sandra Wilkinson, who prosecuted the case.

As a Result of Previous Felony Convictions Was Prohibited From Possessing Guns or Ammunition

 

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Leonard Eugene King, age 35, of Fort Washington, Maryland, today to 10 years in prison, followed by four years of supervised release, for being a felon in possession of a firearm, and for possession with intent to distribute controlled substances, including powder and crack cocaine and marijuana.

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 Maryland Attorney General Douglas F. Gansler.

According to King’s plea agreement, on October 9, 2013, Prince George’s County Police officers executed a search warrant at King’s residence. Officers recovered two handguns, approximately 60 grams of cocaine and crack cocaine, four grams of marijuana, scales, baggies, drug paraphernalia and approximately $6,000 in cash. Some of the cocaine was found in the pocket of a pair of King’s pants, packaged for distribution. Additional cocaine, also packaged for distribution, was found in an air duct. A 9mm pistol, loaded with 17 rounds of ammunition was located in the basement wall and a .32 caliber pistol was located in the master bedroom.

King had two previous felony convictions for drug offenses and a conviction for a crime of violence, and was prohibited from possessing guns or ammunition.

United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.

Negotiated a Deal to Submit Patients’ Urine Samples to a Testing Lab That Paid Over $1.3 Million in Kickbacks to His Employer

 

Baltimore, Maryland – Vic Wadhwa, age 38, of Frederick, Maryland, pleaded guilty today to soliciting and receiving kickbacks in return for referrals at lab tests from a medical practice.

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

According to his plea agreement, Wadhwa was the chief financial officer of a group of pain management clinics located in central Maryland. The group’s clinics required its patients who have been prescribed pain relief medications to submit urine samples for testing in order to monitor the levels of pain medication or other narcotics in their bodies. The group’s clinics generated hundreds of urine samples each month, which were sent to an outside lab for testing.

In March 2011, Wadhwa and others at the group’s clinics decided to shift the group’s testing business to a laboratory testing company in New Jersey, after learning that the lab testing company was willing to pay a kickback for every urine sample that the group of clinics submitted for testing. Wadhwa negotiated the arrangement, whereby the lab company promised to pay kickbacks equal to half of its profit, after accounting for expenses, for every urine sample that the group of clinics submitted for testing.

The group of clinics submitted urine samples for testing to the lab company from approximately March 2011 to August 2012. During this time, the lab company received total reimbursement payments of $4,033.846.70 from private insurers, Medicare and the Federal Employees Health Benefit Program for lab tests ordered by the group of clinics.

Between the time the kickback payments commenced in July 2011 and the end of the scheme in July 2012, the lab company paid the group of clinics a total of $1,376,540.85 in kickbacks. Out of this amount, Wadhwa received approximately $459,245.

The investigation is ongoing.

Wadhwa faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge Marvin J. Garbis has scheduled sentencing for April 2, 2015 at 2:30 p.m.

United States Attorney Rod J. Rosenstein commended the FBI and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jefferson M. Gray and Sean R. Delaney, who are prosecuting the case.

Greenbelt, Maryland - A federal grand jury has indicted Carla Carter, former deputy director of the Prince George’s County Housing Authority, and her husband, Raymond Carter, both age 53, of Mitchellville, Maryland, on charges related to a scheme to fraudulently receive $109,823 in rental subsidy payments from the Housing Authority. The indictment was returned on December 8th and unsealed today upon the defendants’ initial appearance.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

“When we learn of individuals in a HUD-funded position of public trust who abuse that position for personal enrichment, we vigorously investigate these individuals to make sure they are brought to justice,” said Cary Rubenstein, Special Agent in Charge, HUD OIG. “We wish to thank our law enforcement partners at the FBI and the Maryland U.S. Attorney's Office for their steadfast efforts.”

According to the 15-count indictment, Carla Carter was deputy director of the Prince George’s County Housing Authority (Housing Authority) from July 2007 through February 2012. From June through October 2008, she also served as the acting director of the Prince George’s County Department of Housing and Community Development (DHCD), the parent agency of the Housing Authority. Carla and Raymond Carter owned properties in Prince George’s County that were registered in HUD’s Section 8 Housing Choice Voucher Program (HCV Program). The HCV Program is a federal program assisting low-income families, the elderly and the disabled to afford decent, safe and sanitary housing in the private rental market. The program is administered by the Housing Authority.

The indictment alleges that from October 2007 through December 2012, the Carters conspired to defraud HUD and the Housing Authority to obtain rental subsidy payments for the properties they owned in Bowie and Capitol Heights. During most of this period, Carla Carter was an employee with the Housing Authority who formulated policy and influenced decisions with respect to Housing Authority programs. To disguise the scheme and their ownership of the properties, the Carters are alleged to have falsely identified a co-conspirator as the owner and landlord of the properties, and caused the Housing Authority to make rental subsidy payments to the co-conspirator.

The indictment alleges that from about March to at least September 2008, the Carters caused the Housing Authority to issue monthly checks from the HCV Program payable to the coconspirator. From October 2008 to February 2012 the Carters caused the Housing Authority to make direct deposits into a bank account in the name of the coconspirator. The defendants then allegedly redirected those funds into a bank account they controlled, fraudulently obtaining a total of $109,823.98 from the Housing Authority.

According to the indictment, on May 5, 2008, and April 18, 2011, Carla Carter submitted a false financial disclosure statement to the Prince George’s County Board of Ethics that failed to disclose her ownership of the properties. In 2008 or 2009, Carla Carter allegedly asked an employee of the Housing Authority and the DHCD to change the listed owner of one of the properties in DHCD’s computer records from “Carla Carter” to “Raymond Carter,” and to change the listed landlord of that property from “Carla Carter” to the name of the coconspirator.

Carla and Raymond Carter each face a maximum sentence of 20 years in prison for conspiring to commit wire fraud, 13 counts of wire fraud, and conspiring to commit money laundering. The defendants had their initial appearance this morning in U.S. District Court in Greenbelt and were released under the supervision of U.S. Pretrial Services.

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

United States Attorney Rod J. Rosenstein praised the HUD-OIG and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bryan E. Foreman and Nicolas Mitchell, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Orlando Nunez DeLeon, a/k/a “Alberto Ando,” age 37, of New York today to four years in prison followed by two years of supervised release for conspiring to distribute and possess with intent to distribute a kilogram or more of heroin, in connection with a distribution ring that operated in Cecil County, Maryland, Delaware, Pennsylvania and New York.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge David G. Dongilli, Philadelphia Division of the DEA; Cecil County Sheriff Scott Adams; Chief Matthew Donnelly of the Elkton Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cecil County State’s Attorney Ellis Rollins; and Colonel Nathaniel McQueen, Jr. of the Delaware State Police.

According to his plea agreement, from at least January 2013, DeLeon’s co-conspirators obtained bulk kilogram quantities of heroin from a Pennsylvania-based distributor and others. Co-conspirator Jorge Ayala-Pizzaro and others took the heroin to an apartment in New York where DeLeon and up to 10 others cut it and re-packaged it for sale to customers in Maryland and Delaware, including Rachine Garnett.

Beginning in January 2013, the Cecil County Drug Enforcement Task Force and DEA obtained a court-authorized wiretap on phones used by DeLeon’s co-conspirators. DeLeon is overheard in numerous conversations discussing: the labeling of heroin and its quality; preparing the heroin for customers; the people working to cut the heroin; and the transportation of the heroin.

On August 15, 2013, investigators executed a search warrant at an apartment in the Bronx, New York, where they found DeLeon and several others. They seized over a kilogram of heroin, some of which had already been repackaged into logs and some of which was in the process of being packaged. Over the course of the conspiracy, DeLeon knew that members of the conspiracy would distribute at least 10 kilograms of heroin.

Approximately 100 agents and officers from 11 law enforcement agencies assisted in the arrests of the defendants and searches of residences and vehicles associated with the defendants in Maryland, Delaware, Pennsylvania, and New York on August 15, 2013. Six co-defendants have pleaded guilty to their participation in the drug conspiracy, including Rachine Huron Garnett, a/k/a “Sheen,” “Red,” “Ray,” and “Blockhead, age 38, of Elkton, Maryland; and Michael Roberts, a/k/a “Spook,”, age 37,of New Castle, Delaware; and Jorge Ayala-Pizzaro, Jr., age 25, of Philadelphia, Pennsylvania. Garnett, Roberts and Ayala-Pizzaro were each sentenced to 10 years in prison for their roles in the conspiracy.

United States Attorney Rod J. Rosenstein praised the DEA, Cecil County Drug Task Force, and Delaware State Police for their work in the investigation. Mr. Rosenstein also recognized the U.S. Attorney’s Offices in the District of Delaware, Southern District of New York and the Eastern District of Pennsylvania, the Office of the Special Narcotics Prosecutor for the City of New York and the New York Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and James G. Warwick, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Rouchell Chesson, a/k/a “Black,” age 31, of Washington, D.C., today to 10 years in prison followed by three years of supervised release for conspiring to participate in a racketeering conspiracy in connection with 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.

The defendant 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 investigation included four court ordered wiretaps on gang members’ cell phones. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.

According to his plea agreement, Chesson was a leader in the “Tree Top Piru” or “TTP” set of the Bloods gang, and an associate of Blood gang members since at least 2011. Chesson directed and participated in, or had knowledge of, robberies committed by fellow gang members, sold guns, and dealt heroin and prescription pills, to and with fellow gang members. Chesson provided gang documents to new gang members, instructed them to memorize the gang rules and then destroy the documents, sanctioned TTP members for unauthorized conduct and granted membership into TTP.

To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies, as a result of the two year long investigation by the ATF and Howard County Police Department into Bloods/CTC gang activity in Howard County. Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland was sentenced to 205 months in prison, after admitting that he committed at least three armed robberies of individuals in which drugs, cash and/or other items were stolen; assaulted others; and sold crack cocaine, oxycodone and other drugs. Johnson also prostituted females, including a minor.

Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, was sentenced to 193 months in prison after admitting that he founded “Cut Throat Committee,” or “CTC,” a gang whose members are associated with and/or members of the Bloods gang. Ragan-Armstrong committed at least two armed robberies of individuals in which drugs, cash and/or other items were stolen. During one of the robberies, a home invasion in Laurel, Maryland, he pistol whipped the victim on the head resulting in serious bodily injury. Ragan-Armstrong regularly sold drugs, primarily marijuana. During his two day sentencing hearing, witnesses also testified about Ragan-Armstrong’s participation in a sexual assault that occurred in December 2010 at an apartment in Catonsville, Maryland. The Court credited the evidence of the sexual assault when it imposed Ragan-Armstrong’s sentence.

Anthony Preston, a/k/a “40,” or “Tone,” age 27, of Laurel, Maryland, admitted to directing or participating in at least 4 assaults, including an April 20, 2013 assault of a former gang member with a knife and mace in a convenience store. Preston is seen on the store’s surveillance video hitting the girlfriend of the gang member in her face and attempting to spray her with mace. Bystanders, including a young child, were injured by the mace. Preston was later overheard by law enforcement admitting to the assault and stating that if he’d had his gun, he would have killed the man. Preston also was a leader in drug trafficking, selling drugs, including crack cocaine and oxycodone, as early as 2007. Preston, who was previously convicted of armed robbery and attempted armed robbery, has agreed to be sentenced to 20 years in prison at his sentencing scheduled on February 6, 2015.

Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, admitted that he 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 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. Wright has agreed to be sentenced to 18 years in prison at his sentencing scheduled for January 16, 2015.

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.

Store Employee Shot and Killed During the Robbery

 

Baltimore, Maryland - A federal grand jury today has indicted Robin Tyrone Smith, age 26, formerly of Glen Burnie, Maryland, on robbery and gun charges related to the armed robbery of an Exxon Station convenience store on August 7, 2014.

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; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Anne Colt Leitess.

“Partnerships led to this indictment, and we will continue to work together to hold accountable anyone who participated in this heinous act,” said Anne Arundel County Police Chief Timothy J. Altomare. “Hopefully, this sends a strong message to bad guys out there that we will form partnerships and utilize whatever resources are necessary to ensure that we bring about justice.”

According to the indictment and court documents the Exxon Station convenience store located at 7898 Ridge Road in Hanover, Maryland was robbed on August 7, 2014. The robber, who was captured on video surveillance, was armed with a gun and shot the store clerk during the robbery. The store clerk died at the scene. The indictment alleges that Smith is the person who committed the robbery of the Exxon and shot the employee.

According to court documents, investigators learned that the day before the Exxon robbery, a burglary occurred at an apartment located across the street from Smith’s residence. Items taken during the burglary included a .45 caliber Springfield Armory XD 45 firearm, .45 caliber hollow point ammunition, an X-box gaming system and games for the system. A review of the Exxon video established that the gun used in the robbery was the same model as was stolen in the apartment burglary the day before. Some of the stolen X-box games were pawned at a store located in the Arundel Mills Mall by an individual providing a Maryland State Identification card in the name of Robin Tyrone Smith. Video surveillance from the store shows a male wearing the same clothing as the person who committed the Exxon robbery. The investigation is continuing.

Smith faces a maximum sentence of 20 years in prison for the robbery; and life in prison for brandishing and discharging a firearm during a crime of violence. An initial appearance in U.S. District Court in Baltimore has not yet been scheduled. Smith remains detained on related state charges.

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

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