District of Maryland

Used Forged Receipts and Invoices in Seven-Year Scheme to Claim Reimbursements for Mislabeled Personal Expenses and Obtain Duplicate Reimbursements

Greenbelt, Maryland – Paul Dunham, age 59, and his wife, Sandra Dunham, age 58, of Northampton, England, formerly of Montgomery County, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme in which they requested reimbursement from their employer for mortgage payments on time shares in Barbados, luxury bedding for their home, a dog sofa and other personal expenses to their employer. Paul Dunham also pleaded guilty to money laundering.

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

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

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

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

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

As a result of the lengthy scheme, $1 million in actual losses were incurred. Paul and Sandra Dunham have agreed to forfeit and pay restitution of $1 million.

Paul Dunham faces a maximum sentence of 20 years in prison for the conspiracy and money laundering. Sandra Dunham and the government have agreed that if the Court accepts the plea agreement, Sandra Dunham will be sentenced to 60 days of incarceration. U.S. District Judge Paul W. Grimm has scheduled sentencing for both defendants for January 29, 2015, at 1:30 p.m.

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

Allegedly Robbed Stores in Virginia and in
Anne Arundel, Baltimore and Montgomery Counties in Maryland

Baltimore, Maryland - A federal grand jury has indicted Parris Benjamin Chisholm, age 24, of Millersville, Maryland; Donald Scott Deans, age 22, of Largo, Maryland; and Tyran Antwain Lane, age 22, of New Carrollton, Maryland, on charges related to the robberies of 10 cell phone stores. The second superseding indictment was returned on December 2, 2014, and unsealed today upon the arrest of Lane. The second superseding indictment adds Lane as a defendant and adds additional robberies discovered during the ongoing investigation.

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; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to the 18-count second superseding indictment, from January 29, 2013 through July 4, 2014, the defendants participated in a conspiracy to rob cell phone stores in Anne Arundel, Baltimore and Montgomery Counties, as well as Alexandria and Springfield, Virginia.

The indictment alleges that the defendants planned and organized the theft of cash, credit cards, cell phones, portable electronic communications devices, and tablet computers from businesses, their employees and customers. The defendants planned to sell the stolen property. According to the indictment, the defendants conducted surveillance at the businesses prior to the robberies in order to determine whether it was an appropriate establishment to rob. In nine of the 10 robberies, the indictment alleges that the defendants used and brandished a gun to intimidate the employees during the robberies. The defendants and others allegedly used duct tape to restrain employees and used plastic trash bags to carry the stolen cellphones and electronic devices from the premises. The defendants used Chisholm’s car to travel to and from the robberies and to transport the stolen property and guns used during the robberies

The defendants each face a maximum sentence of 20 years in prison on the conspiracy and each of the robbery counts, and a minimum of seven years in prison, consecutive to any other sentence, and up to life in prison for possessing and brandishing a firearm in relation to a crime of violence. Lane has his initial appearance today in U.S. District Court in Baltimore and was detained pending a detention hearing scheduled for Friday, December 12, 2014 at 11:30 a.m. before U.S. Magistrate Judge Beth P. Gesner. Chisholm and Deans previously had their initial appearance and were detained pending trial.

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

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

Fled to California After 2010 Arrest in Baltimore

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Joseph Jesus Guadagnoli, age 33, of Baltimore, Maryland, on December 5, 2014, to 15 years in prison, followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute between 1,000 and 4,000 kilograms of marijuana, and possession of a firearm in furtherance of drug trafficking. Judge Titus ordered Guadagnoli to forfeit $6,000 in postal money orders and four guns and ammunition seized from his home, and ordered him to pay a money judgment in the amount of $2,370,000, the value of the property derived from or otherwise involved in the marijuana conspiracy.

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; U.S. Marshal Johnny Hughes; Chief James W. Johnson of the Baltimore County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to his plea agreement, from at least 2008, until September 27, 2012, Guadagnoli conspired with Andrew Sharpeta, and others to distribute and possess with intent to distribute 1,000 kilograms or more of marijuana. Initially, Guadagnoli participated in the conspiracy by unloading shipments of marijuana at various warehouses throughout Baltimore, leasing a warehouse for this purpose, and distributing the bulk marijuana. Guadagnoli also transported marijuana to various locations in the eastern United States.

On March 18, 2009, DEA agents executed a search warrant at 3522 Hickory Avenue in Baltimore, Maryland, which was owned, leased, and utilized by members of the conspiracy, and which served as one center of operations for the narcotics trafficking organization. The items seized from the residence included more than 100 pounds of marijuana, $20,000 in cash, 31 cellular telephones, documents regarding the purchase of a Lancair IV-P aircraft for $450,000 by a co-conspirator, four money counters, tally sheets with balances over $1.5 million, and false identification documents. On the day the search warrant was executed, a member of the conspiracy came to the home of Guadagnoli and his then-girlfriend (now wife) Megan Veitch and asked them to go to the Hickory Avenue address to retrieve an airplane seat which had been removed from a plane that was being used to transport money and marijuana. Guadagnoli and Veitch went to the Hickory Avenue address and removed the airplane seat as well as some of the furniture.

On October 4, 2010, members of the Baltimore County Police Department executed a search warrant at a warehouse which had been leased by Guadagnoli. Guadagnoli and Veitch were arrested leaving the warehouse. Inside the warehouse, officers recovered approximately 600 pounds of marijuana in shipping containers which had been sent by a co-conspirator. Officers also discovered a sophisticated marijuana grow operation that involved over 400 marijuana plants.

After making bond, Guadagnoli and Veitch fled to California, where a co-conspirator assisted them in obtaining California driver’s licenses in false names to conceal their identities. Guadagnoli purchased a rural house in Mendocino, California, where he oversaw the cultivation of marijuana on the surrounding property. On September 27, 2012, Veitch and Guadagnoli were arrested on the Mendocino property. A search warrant was executed, and members of law enforcement recovered hundreds of marijuana plants and paraphernalia associated with the cultivation and harvesting of marijuana. In addition, from Guadagnoli’s home officers seized postal money orders totaling $6,000.00, a 9mm Ruger pistol, a Smith & Wesson A&P 15 semi-automatic .223 caliber rifle, a Marlin .22 caliber rifle, a Remington Arms Co. 12 gauge shotgun, a box of 9mm ammunition, a box of .22 caliber ammunition, marijuana, jars with concentrated cannabis, digital scales, five cellular telephones, a money counting machine and other drug paraphernalia.

Megan Veitch, age 32, of Baltimore and Andrew Sharpeta, age 39, of Avondale, Pennsylvania, previously pleaded guilty and were sentenced to 34 months and 63 months in prison, respectively

United States Attorney Rod J. Rosenstein praised the DEA, Montgomery County Police Department, Baltimore County Police Department, and Baltimore City Police Department for their work in the investigation, and thanked the Mendocino County, California Sheriff’s Office for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Mara Zusman Greenberg, who prosecuted the case.

 Used Stolen Identities to Purchase Expensive Cars

Greenbelt, Maryland – Juan Carlos Willis, age 41, of Hyattsville, Maryland pleaded guilty today to conspiring to commit wire fraud and aggravated identity theft in connection with a scheme to use the stolen identity of others to purchase expensive cars. Willis was scheduled to begin trial tomorrow.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service B Washington Field Office; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to his plea agreement, Willis, Flinton Newton and others obtained the identity information of credit-worthy individuals, created false identity documents in the names of those individuals, then posed as those individuals at automotive dealerships in order to apply for vehicle financing. Willis and his coconspirators filled out credit applications and obtained loans in the names of the identity theft victims to purchase, or attempt to purchase, expensive cars from dealers in Maryland and Virginia. They intended to either use the luxury vehicles themselves, or rent or sell them.

On July 19, 2012, Willis and Newton went to Capitol Cadillac in Greenbelt. Newton posed as another person whose identity he had fraudulently obtained, to apply for $80,663 in financing to purchase a 2013 Cadillac Escalade in the victim’s name. Willis used online access to an insurance policy written on a co-conspirator’s business to obtain proof of insurance in support of the vehicle purchase.

Later that evening, Willis and Newton drove to Mercedes-Benz of Silver Spring where Newton again posed as the victim. The men attempted to purchase a 2012 Mercedes-Benz CL550 and a 2009 Mercedez-Benz S550 for a total of $120,056. They filled out credit applications to finance the entire purchase price, again using the victim’s identity and credit. Willis again presented the auto insurance policy in a co-conspirator’s business name in support of the vehicle purchases.

The dealership manager saw that the victim’s credit had just been used to purchase the Cadillac Escalade, so he notified Montgomery County Police, who responded and arrested Willis and Newton. Willis acknowledged that his role in the scheme was to locate vehicles and provide insurance information.

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

Willis faces a maximum sentence of 30 years in prison for the conspiracy and a mandatory minimum of two years in prison consecutive to any other sentence for aggravated identity theft. U.S. District Judge Peter J. Messitte scheduled sentencing for April 8, 2015, at 9:30 a.m.

Flinton Newton, age 34, of Bartlett, Tennessee previously pleaded guilty and was sentenced to 42 months in prison in connection with the scheme.

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

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

Failed to Pay Over $238,000 in Taxes on Over $900,000 Embezzled From his Company

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Ramon Anthony Jadra, age 47, of Westminster, Maryland, today to two years in prison, followed by two years of supervised release, for tax evasion in connection with a scheme to defraud his family-owned business of more than $900,000 over a four-year period. Jadra owned 54% of the company and other family members owned the remaining 46%. Jadra also paid restitution of $283,481, as required by his plea agreement.

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.

“Jadra perpetuated a scheme that was driven by greed and self-interest,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “He cheated both his own company by illegally diverting corporate funds to himself and the American taxpayer by evading paying taxes on the substantial income he earned from these actions. Today's sentencing should serve as a stark reminder to others that you can’t plunder a business and not expect to pay a price. In Jadra’s case, the price includes prison time.”

According to his plea agreement, Jadra was the president and majority shareholder of a family-owned business located in Reisterstown, Maryland, that manufactures parts for the defense and aerospace industries. Beginning in 2008, Jadra fraudulently diverted company funds to himself.

Jadra carried out his scheme by causing checks to be written on the company’s bank account in the names of actual businesses with which Jadra or his company had dealings in the past, but which were not owed the amounts shown on the checks. These checks totaled $495,950 between 2008 and 2011. To avoid triggering the requirement that banks file a currency transaction report in connection with financial transactions involving more than $10,000 in cash, Jadra caused all of the checks to be issued in amounts of $9,500 or less.

As part of this scheme, Jadra established a check cashing account at a liquor store in Reisterstown, where he cashed fraudulently obtained checks totaling $368,350. Jadra then deposited $316,585 of these funds, again in amounts less than $10,000, in a checking account he had established in the name of DIA Solutions, a shell company that did not actually conduct any business.

In the spring of 2010, Jadra implemented a new aspect of his scheme. Jadra falsely advised his father and his company’s controller that DIA Solutions, an independent consulting firm, was entitled to receive 5% of the payments the company received on a contract worth over $6 million, that DIA Solutions had helped it obtain. Jadra instructed the company’s controller to issue a check to DIA Solutions for 5% of every payment that the company received on this contract. DIA Solutions had not in fact provided any goods or services, nor played any role in obtaining the contract in question. Once Jadra received these checks, totaling $313,218.02, he deposited them into the DIA Solutions bank account and then converted the money to his personal use.

Finally, in 2010 and 2011, Jadra implemented a third aspect of his fraudulent scheme. The manufacturing processes of Jadra’s company generated quantities of scrap metal, which it sold to two other companies. However, Jadra withheld this information from the company’s controller, who believed the company had to pay to have the scrap metal hauled away from the plant. This enabled Jadra to intercept checks from the two businesses that were tendered to Jadra’s company to pay for scrap metal it had sold, deposit the funds in the DIA Solutions bank account, and convert these funds to his own use. In all, Jadra derived $91,249.75 from this aspect of his scheme.

As a result of the schemes, from 2008 to 2011, Jadra fraudulently converted $900,418 from the company, and failed to pay $283,481 in taxes on this fraudulently obtained money. According to court documents Jadra’s reported income during that same time period was more than $4 million. Jadra used the majority of the embezzled funds for largely unsuccessful on-line stock trading. Other embezzled funds were used as follows: $50,000 down payment on a new 2012 BMW 535i costing $73,775.70; $14,512.58 for home renovations; $7,500 to buy a boat trailer; $31,295 to buy a watercraft; and a $15,929 down payment on a new Harley Davidson MC Screamin’ motorcycle costing $48,416.82.

United States Attorney Rod J. Rosenstein praised the IRS- Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced William Simmons, a/k/a “Big Chew,” age 32, of Baltimore, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possesses with the intent to distribute heroin and crack cocaine.

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

According to his plea agreement, from 2002 through 2013, Simmons distributed crack cocaine and heroin in the Cherry Hill area of Baltimore. Simmons is a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates committed various crimes to include distribution of controlled dangerous substances, such as crack cocaine, heroin, cocaine and oxycodone. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.

For several years Simmons assisted a fellow UDH member, helping him to run drug distribution shops in the UDH area of Cherry Hill. On November 22, 2013, after a confidential informant purchased heroin from Simmons, Simmons and another UDH member were stopped in a vehicle in Anne Arundel County. The vehicle was searched and officers recovered 59 gel caps of heroin, weighing approximately 17.06 grams and a bag of cocaine, weighing approximately 29.68 grams. Throughout the course of Simmons’s involvement in the UDH drug conspiracy, the conspirators distributed between 3 and 10 kilograms of heroin and between 840 grams and 2.8 kilograms of crack cocaine.

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

 Robbed Businesses in Maryland, Virginia, West Virginia and Pennsylvania

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Carl Paschall, Sr., age 54, of Halethorpe, today to 66 months in prison, followed by three years of supervised release, for conspiring to commit bank burglary and arson of property used in interstate commerce. Judge Motz also ordered Paschall to forfeit $200,000.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief Gary Gardner of the Howard County Police Department; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to his plea agreement, from at least November 2010 until his arrest in July 2013, Carl Paschall, Sr. was the leader of a group that included his son, Carl Paschall Jr., Chad Paschall, Thomas Ellis, and Michael Johnson, who conspired to commit commercial burglaries in Maryland, Virginia, West Virginia, and Pennsylvania. Paschall, Sr. also conspired with defendants in a related case, David Paschall, Jr., Mark Johnson, Ronald Henderson and others, to commit the robberies. The conspirators stole cash, money orders, stamps, silver bars, jewelry, cigarettes, lottery tickets, prescription drugs, food, beverages, safes, laptop computers, cell phones, electronics, vehicles and other valuable items from gas stations, convenience stores, banks, credit unions and other commercial establishments during the night. The conspirators often stole or attempted to steal cash from ATMs.

The conspirators usually cut power lines, telephone lines, cables and other wires before entering a business. They used vise grips, sledgehammers, chop saws, grinders and blow torches to enter the business, and then often waited – for several minutes or sometimes up to several hours – before ransacking the business of its valuable items.

Carl Paschall, Sr. admitted that he committed, or attempted to commit, dozens of commercial burglaries and that the loss resulting from these burglaries exceeded $800,000.

On May 26, 2012, Carl Paschall, Sr. and his son, Carl Paschall, Jr. stole a white 2012 Ford E250 panel van from a rental car office in Martinsburg, West Virginia, which they used during three commercial burglaries committed on May 26th and 27th at businesses in West Virginia. On May 31, 2012, the conspirators drove the van to Newport Road in Woodbine, Maryland and parked the vehicle on the side of the road. The conspirators left some evidence of their crimes inside the stolen van, including stolen safes and lottery tickets. The applied an ignitable fluid inside the vehicle and set it on fire. Early in the morning on June 1, 2012, Howard County Fire and Rescue Department responded to the scene and encountered the van fully engulfed in flames. After extinguishing the fire, the remaining contents of the van were preserved for law enforcement.

Carl Paschall, Jr., age 32, of Baltimore, previously pleaded guilty and was sentenced to 66 months in prison and was ordered to pay restitution of $200,000. Chad Paschall, age 28, of Baltimore; David Paschall, Jr., age 55, of Catonsville, Maryland; Mark Johnson, age 51, of Baltimore; Ronald Henderson, age 52, of Pasadena, Maryland; Thomas Daniel Ellis, age 24, and Michael Johnson, age 25, both of Baltimore, also pleaded guilty to their participation in the conspiracy. All are awaiting sentencing except Henderson, Ellis and Michael Johnson, who were sentenced to, 30 months in prison, a year and a day in prison, and three years of probation, respectively.

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

Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Andrea L. Smith, who are prosecuting this case.

Eight Other Veterans Convicted of Paying U.S. Army Veteran David Clark
Cash to Fraudulently Obtain Veteran Benefits

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced U.S. Army veteran David Clark, age 68, of Hydes, Maryland, the former Deputy Chief of Veterans Claims in the Maryland Department of Veterans Affairs, today to a year and a day in prison followed by two years of supervised release for extortion in connection with a scheme to fraudulently obtain over $1.4 million in veterans benefits. Chief Judge Blake also entered an order that Clark forfeit $1,406,774 and pay restitution of $1,284,399.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kim R. Lampkins of the Department of Veterans Affairs Office of Inspector General.

In January 2011, Clark retired from the Maryland Department of Veterans Affairs (MDVA) as the deputy chief for Veterans Claims. Clark’s duties included submitting claims and documentation on behalf of veterans in Maryland who appointed the MDVA to represent them in obtaining federal benefits from the Department of Veterans Affairs (VA). Clark also submitted documents to the Maryland State Department of Assessments and Taxation (SDAT) in support of veterans’ applications for property tax waivers.

According to his plea agreement, while serving as deputy chief of claims, Clark fraudulently obtained VA compensation for himself and at least 17 others, by submitting false documents to the VA purporting to show that the claimants had been diagnosed with diabetes, and in some cases that the claimanst had served in Vietnam when they had not. The claimants paid Clark half of the retroactive lump sum payment they received in cash, or some other amount of cash. These payments to Clark were made in unmarked envelopes at MDVA offices in Bel Air, Maryland; the Fallon Federal Building in Baltimore; and other locations.

In support of these claims, Clark submitted fake letters from doctors purportedly treating the veterans, which falsely stated that the claimants suffered from Type II diabetes. Clark used the names and addresses of real doctors who were unaware of his conduct. Each letter stated that the diagnosis of Type II diabetes had been made a year or more prior to the date of the letter, which entitled each claimant to a retroactive lump-sum payment. The letters also stated that the claimants were currently taking insulin, which increased the amount of compensation the VA paid the claimant.

Clark created counterfeit versions of a Defense Department form for himself and five others, which falsely stated that each had served in Vietnam. These forms also falsely stated that these individuals had received various awards and decorations for the Vietnam service, including that Clark himself had been awarded the Purple Heart Medal. These documents were submitted to the VA to provide false evidence that they qualified for compensation benefits for diabetes.

Clark also submitted false certifications to the SDAT on behalf of claimants that owned homes in Maryland, claiming that the filers were entitled to a property tax waiver due to a service-connected disability.

The total loss to the government caused by false submissions to the VA is $1,151,219 and the loss from the property tax evasion is $255,555, for a total loss of $1,406,774.

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 thanked the VA Office of Inspector General for its work in the investigation and praised Assistant U.S. Attorney Leo J. Wise, who prosecuted the case.

Baltimore, Maryland - The United States Attorney’s Office has clarified its February 18, 2014 press release concerning a civil settlement dated February 14, 2014 with medical billing company Engage Medical, Inc., its owner Sanjay Puri and three medical practices. The parties agreed to pay a total of $3,340,979 to settle civil claims that they had overbilled the Government for nuclear stress tests.

There was, however, no finding of liability, and Mr. Puri denied liability. The claims settled by the agreement were allegations. As the agreement stated, the parties settled to “avoid the delay, uncertainty, inconvenience and expense of protracted litigation.” Mr. Puri agreed as part of the settlement to “cooperate fully” with any ongoing investigation.

Robbed Eight 7-Eleven Stores in 18 Days

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Bryant Smith, age 26, of Baltimore, to 20 years in prison, followed by three years of supervised release, for robbery and using a gun in furtherance of the robbery.

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

According to his plea agreement, from December 1 to 18, 2013, Smith and co-defendant John Robinson robbed eight 7-Eleven Stores using a loaded revolver. The stores were located in Baltimore on Boston Street, Holabird Avenue, West 33rd Street, Belair Road, Reisterstown Road, Harford Road, Frederick Road and Pulaski Highway. In each of the robberies, Robinson wore a mask and pointed the gun at the store employee, demanding money. Robinson or Smith, who was also masked, would take other items as well, such as cigarettes and lottery scratch-off tickets. On some occasions, Smith and/or Robinson would order the store employee to lie on the floor.

Co-defendant John Robinson, age 34, of Baltimore, was sentenced to 20 years in prison on August 1, 2014, on the same charges.

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

Must Forfeit $108 million in Cash, Jewelry and Luxury Automobiles As Part of His Plea

Greenbelt, Maryland – Ishmael Ford-Bey, age 40, of Mitchellville, Maryland, pleaded guilty today 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 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; 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; Acting 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 court documents, from at least January 2011 through his arrest on August 16, 2013, Ishmael Ford-Bey conspired with others to distribute cocaine in Maryland and elsewhere. On August 15, 2012, the Texas Department of Public Safety stopped a refrigerated box truck that was transporting thirteen boxes, each containing approximately ten kilograms of cocaine. The boxes were to be delivered to Ford-Bey in Temple Hills, Maryland. A controlled delivery of the boxes was arranged. On August 17, 2012, law enforcement established surveillance at the meeting location in Marlow Heights, Maryland. A few minutes after the truck arrived at the meeting location, a vehicle registered to Ford-Bey at a Mitchellville address arrived at the location. Law enforcement observed the truck driver and Ford-Bey unloading the drugs into Ford-Bey’s vehicle. As Ford-Bey left the area, he was pursued by law enforcement officers. Ford-Bey abandoned the vehicle in the median on I-495 and ran away. Agents recovered Ford-Bey’s vehicle, the cocaine, cell phones, and other evidence from the vehicle.

Based upon review of the documents in the vehicle and further investigation, agents identified another residence for Ford-Bey located in the 2400 block of Pennsylvania Avenue, NW, in Washington, DC. On the evening of August 17, 2012, officers were at the Pennsylvania Avenue address and saw Ford-Bey in the lobby. Ford-Bey fled dropping a bag that contained prepaid cellphones and other items. Agents were unable to locate Ford-Bey. A search warrant of the residence resulted in the seizure of watches and jewelry, and a loaded Glock handgun. Agents also seized two other vehicles - a 2003 Audi and a 2011 Maserati, both registered to Ford-Bey.

As a result of wire taps on conspirators’ cell phones law enforcement overheard numerous conversations with Ford-Bey discussing and arranging drug transactions. Agents observed Ford-Bey providing conspirators with drugs and leaving with the drug payment.

On October 1, 2013, a search warrant was executed at the apartment of a co-conspirator that Ford-Bey had been identified as visiting. Agents located a safe which contained $823,640 in cash, several 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 Ford Bey’s and another conspirator.

Ford-Bey was arrested on August 16, 2013, during a traffic stop of a vehicle being driven by Ford-Bey’s girlfriend. A Maryland State Trooper ran the tag and determined the vehicle was registered in the name of the driver and Ford-Bey. When the trooper asked Ford-Bey for identification, he identified himself as Jason Green and presented a New Jersey driver’s license in that name. The trooper pulled up the warrant photograph for Ford-Bey, positively identified him as Ford-Bey, and placed him under arrest.

In an effort to disguise and hide their drug proceeds, Ford-Bey and others created numerous business entities, which had little, if any legitimate business. They set up bank accounts in the names of each business and deposit their drug proceeds into those business accounts. Between 2008 and 2011, Ford-Bey deposited drug proceeds into business bank accounts he owned or controlled. Ford-Bey used drug proceeds to purchase a 2007 Lexus for his girlfriend, a 2011 Landrover vehicle for $65,749, to purchase jewelry and to pay rent for Ford Bey’s apartment and for travel expenses, among other things.

Ford-Bey faces a minimum mandatory sentence of 20 years in prison and a maximum of life in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for March 5, 2015 at 10 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.

Used Another Individual’s Identity, False Income and Credit Information   to Induce a Lender to Provide a Home Mortgage Loan

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Abdallah Suleiman Kitwara, age 44, of Bowie, Maryland today to 15 months in prison followed by five years of supervised release for conspiring to commit wire fraud arising from a residential mortgage fraud scheme. Judge Hazel also ordered Kitwara to pay restitution of $290,954 and a fine of $50,000.

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; Inspector General Laura S. Wertheimer 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 his plea agreement, from March 2007 to November 2008, Kitwara conspired with real estate agent Tibakweitira and others to unlawfully use the identity of another individual to buy residential property. For example, in May and June 2007, Kitwara used the stolen identity of another person, along with false income statements and credit information, to buy a residence in Washington, D.C. The conspirators inflated the sales price by creating false documents for repairs and renovations that were never made. After the settlement, the conspirators divided up the cash received for the purported repairs.

As a result of the conspiracy, Kitwara caused $290,954 in losses to the bank that was the lender for purchased property.

Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland previously pleaded guilty to the conspiracy and to aggravated identity theft. Tibakweitira has agreed to forfeit a Range Rover vehicle, and awaits sentencing.

Five other conspirators from Maryland have also pleaded guilty to their roles in the scheme, including: Tibakweitira’s wife Flavia Makundi, age 42, of Severn; Raymond Abraham, age 47, of Silver Spring,; Ayoub Luziga, age 36, of Bowie; Cane Mwihava, age 44, of Bowie; and Mokorya Cosmas Wambura, age 41, of Takoma Park. Abraham was sentenced on October 27, 2014 to 33 months in prison, and Luziga was sentenced on November 24, 2014 to 21 months in prison. Abraham and Luziga were both ordered to pay restitution of $999,726.55. Wambura was sentenced to five years in prison and ordered to pay restitution of more than $400,000. Mwihava is scheduled to be sentenced on December 27, 2014 at 11:30 a.m.

A jury convicted Annika Boas, age 37, of Mount Rainier, Maryland on September 19, 2014, for conspiracy, wire fraud and making a false statement on a loan application, arising from the scheme. Boas is scheduled to be sentenced on January 7, 2015 at 9:00 a.m.

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.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 DiGregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who prosecuted the case.

Baltimore, Maryland – A federal jury convicted Jamaican national, Lyndon Fascisco Miller, age 50, of Owings Mills, Maryland, late yesterday, on charges of conspiracy, possession with intent to distribute heroin, cocaine and crack cocaine, and three counts of distribution of heroin. Miller was also convicted of being a felon in possession of a loaded semi-automatic handgun.

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the Harford County Task Force, Harford County Sheriff L. Jesse Bane; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Henry Trabert of the Aberdeen Police Department; Bel Air Police Chief Leo Matrangola; Chief Teresa Walter of the Havre de Grace Police Department; and Harford County State’s Attorney Joseph I. Cassilly; and Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office.

The evidence presented at Miller’s one week trial was based on, among other things, wiretaps on multiple cell phones used by Miller, none of which were in Miller’s name. Several of the intercepted calls were in Patois, a Jamaican dialect. Witnesses testified that Miller would routinely travel in rental cars, changing them frequently, to distribute narcotics to customers in Harford County, where he falsely claimed his name was “Charlie” and that he lived in Cecil County. Miller was video-taped engaging in drug transactions, including the sale of heroin to an undercover task force officer. Miller was arrested on June 22, 2013, after returning from meeting his source of supply for the heroin and cocaine in Gettysburg, Pennsylvania.

A search warrant was executed at Miller’s residence, where law enforcement seized heroin, cocaine and crack cocaine, along with the loaded handgun. Law enforcement also seized almost ½ kilo of heroin from the rental vehicle Miller had been driving, and from another vehicle associated with Miller that was parked at Miller’s apartment complex law enforcement recovered more than $70,000 in cash, which had been bundled with rubber bands, a common practice by narcotics traffickers.

Miller faces a mandatory sentence of 20 years in prison at his sentencing. U.S. District Judge Marvin J. Garbis has scheduled sentencing for March 2, 2015.

United States Attorney Rod J. Rosenstein commended the Harford County Task Force and DEA, for their work in the investigation, and recognized DEA Harrisburg, and the Baltimore County Police Department for their assistance, as well as a police officer with the University of Maryland Police Department, who spoke Patois. Mr. Rosenstein thanked Assistant United States Attorney Christopher J. Romano, who is prosecuting this Organized Crime Drug Enforcement Task Force case.

Stole 2,611 Containers With Replacement Cost of Over $3.6 Million

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Aaron Kevin Howard, age 53, of Brooklyn, Maryland, today to seven years in prison, followed by three years of supervised release, for conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service. Judge Bennett also ordered Howard to pay restitution of $404,794.91.

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 Anne Arundel County Police Chief Kevin Davis.

The U.S. Postal Service used and stored mail transport equipment, including large aluminum carts known as over-the-road containers. From 2007 through 2010, Howard worked at a private mailer located in Baltimore. From 2005 through April 2014, Howard’s co-defendant, Roland Michael Muir, worked for the same company, driving a box truck.

According to court documents and evidence presented to the Court, from July 2010 to 2014, Howard and Muir drove the private mailer’s box truck to two U.S. Postal Service bulk mail centers in Capitol Heights where they stole the over-the-road containers and loaded them on the truck. When in the bulk mail center, Howard told a USPS employee that he worked for the Baltimore IRS. The thefts typically occurred between midnight and 2:00 a.m. After taking the containers, the co-conspirators drove to a warehouse where they used spray paint to cover the U.S. Postal Service markings on the containers. They then drove the truck to a metal recycler and sold the containers for scrap value, receiving about $1,300 in cash for each transaction.

Howard and Muir changed metal recyclers when questioned about the source of the containers, or when the recyclers refused to buy the containers. In the fall of 2013 when Muir’s employment position no longer allowed him access to his employer’s truck, Howard rented a truck to use in the scheme.

Beginning sometime in 2014, Muir’s participation in the conspiracy ceased. Howard continued to steal and sell the containers, often working alone.

From July 2010 through April 2014, Howard stole approximately 2611 containers from the USPS on 311 days. The replacement cost of the stolen containers is approximately $3,694,565. Howard and Muir received at least $404,794.91 in cash from the sale of containers to metal recyclers.

Co- defendant Roland Michael Muir, age 57, of Glen Burnie, Maryland, pleaded guilty to conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service. Judge Bennett has scheduled his sentencing for December 5, 2014, at 11:00 a.m.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division and Anne Arundel County Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced William Carl Miller, Jr., age 53, of Shade Gap, Pennsylvania, today to 151 months in prison, followed by five years of supervised, release for bank robbery. Judge Bennett also ordered Miller to pay restitution of $1,710.

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; Cumberland Police Chief Charles H. Hinnant; Allegany County Sheriff Craig Robertson; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg.

According to Miller’s plea agreement, on August 28, 2013, Miller robbed the Susquehanna Bank in LaVale, Maryland. Miller entered the bank, pointed what looked like a black semi-automatic handgun at the teller and demanded money. The teller removed approximately $1,710 from the drawer and placed it on the counter. Miller put the money in his shoulder bag and fled through the bank’s rear door.

On September 3, 2013, Miller again robbed the Susquehanna bank in LaVale, this time with co-defendant Chelsea May Morrison acting as a lookout. Prior to the robbery, Miller and Morrison applied “superglue” to their fingers to avoid leaving fingerprints at the bank. Miller and Morrison drove to the bank and parked in an adjacent parking lot. They entered the bank and as Morrison stood by and acted as a lookout, Miller approached three separate tellers demanding money. Miller threatened at least one teller, saying, “I want all your money. I have a gun in my duffle bag so don’t make me use it.” Miller took a total of $20,096 from the various teller drawers.

As Miller and Morrison ran from the bank, the dye packs in the money exploded. Miller and Morrison ran back to their vehicle, with Miller driving and Morrison in the front passenger seat, and fled the area. When officers responding to the bank robbery saw them, the officers attempt to conduct a traffic stop. Miller refused to pull over, accelerated the vehicle, and led officers on a high-speed pursuit. Officers were eventually able to get the vehicle to slow to a near stop, at which time Miller fled. Miller was chased by numerous officers and stopped only after being struck by a taser and tackled by officers.

Morrison was arrested in the passenger seat of the vehicle. Seized from the vehicle, among other items, was cash from the robbery and an air pistol, which was a realistic replica of a semi-automatic handgun.

Chelsea May Morrison, a/k/a Chelsea Maye Morrison-Mikolajczyk, age 27, of North East, Maryland, previously pleaded guilty and was sentenced to 51 months in prison for her role in the robbery.

United States Attorney Rod J. Rosenstein praised the FBI and the members of the Allegany County Combined Criminal Investigations Task Force (C3I), comprised of the Maryland State Police, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Frostburg University Police Department and Allegany County State’s Attorney’s Office for their work in the investigation and thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Mercy Coffie-Joseph, age 41, of Largo, Maryland, today to 10 years in prison followed by three years of supervised release for wire fraud, money laundering, passport fraud and aggravated identity theft. Judge Titus also entered an order that Coffie-Joseph pay restitution of $472,148.52.

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 Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service.

According to evidence presented at her four day trial, from 2010 to February 2013, Coffie-Joseph used her position as an accounting manager at a Maryland company to fraudulently access the company’s bank accounts and transfer approximately $470,000 to bank accounts she controlled. She then used about $120,000 of those funds to buy a home in Ghana.

Coffie-Joseph also stole an individual’s identity and obtained a passport in the victim’s name, using her own picture, and then traveled to Ghana on the fraudulent passport, during which trip she visited the home she had purchased there with the fraudulently obtained money.

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 praised the FBI and State Department’s Diplomatic Security Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P. Windom, and Special Assistant United States Attorney Margaret Moeser, of the U.S. Justice Department’s Asset Forfeiture & Money Laundering Section, who prosecuted the case.

Appeared In A Music Video Holding a Handgun with an Extended Magazine

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Richaco Fernandis Holloway, age 24, of Camp Springs, Maryland, today to 57 months in prison, followed by three years of supervised release, for being a felon in possession of a gun.

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

According to testimony presented at Holloway=s two-day trial, on July 3, 2013, American Music Group (AMG), a music label belonging to Ricky Lee Holloway, Richaco Holloway’s older brother, posted a video entitled “E-Banga/Why you Hatin’?” on its YouTube channel. In that AMG video, Richacho Holloway was filmed holding a .45 caliber handgun with an extended magazine. The video was shot at a building in a residential neighborhood in Camp Springs that had been converted into a music studio. The building doubled as a distribution hub for Ricky Lee Holloway’s PCP distribution operation.

Witnesses testified that during a search conducted at the music studio during a takedown of Ricky Holloway’s PCP trafficking activity, agents recovered the firearm Richaco Holloway was filmed holding in the rap video. The weapon was loaded with 17 rounds in the same extended magazine it was filmed with in the video. Richaco Holloway was prohibited from possessing a firearm or ammunition due to a 2008 conviction in Prince George’s County Circuit Court for robbery with a deadly weapon and for which he was on parole.

Ricky Lee Holloway, age 31, of Bowie, Maryland, has pleaded guilty to distributing more than 30 kilograms of PCP between 2011 and 2013, and is scheduled to be sentenced on December 22, 2014, at 9:00 a.m.

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

Used Handguns and Threatened to Kill Store Employees

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Arnold Dorsey, age 52, of Baltimore, today to 14 years in prison followed by three years of supervised release for conspiring to commit 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; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.

According to his plea agreement, on December 7, 2013, Dorsey and Richard Coleman entered a rental business on Frederick Road in Baltimore City. They conversed about gifts with each other and store staff. They asked an employee about an iPad (tablet computer.)

The store clerk walked back to an office to retrieve a charger to demonstrate the tablet. Both Dorsey and Coleman followed the clerk to the office. Once there, Coleman pulled out a semiautomatic handgun and pointed it at the clerk. Dorsey went to the next office, pulled out a semiautomatic handgun and pointed it at another clerk. They forced the clerks to open the register and took $1,144. They then took $73 from one clerk and $85 from another clerk. At this point they had the clerks lie on the floor and threatened to kill them.

The Baltimore Police Department received a call for a hold up and two officers responded. The first officer on the scene saw both defendants behind the counter in front of the office area. A clerk signaled to the officer alerting the officer that the defendants were robbing the business. The officer entered and made contact with Dorsey as he attempted to leave the store. The officer saw Dorsey’s handgun and had to subdue Dorsey. A second officer arrived and took custody of Coleman who surrendered his handgun. The officers recovered $1,144 from Dorsey and $158 from Coleman.

Co-defendant Richard Coleman, age 49, of Dundalk, Maryland previously pleaded guilty to his participation in the robbery and was sentenced to 14 years in prison.

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 Special Assistant United States Attorney Brandis Marsh, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Lamont Bonds, age 26, of Gaithersburg, Maryland, today to 125 months in prison followed by five years of supervised release for armed robbery and brandishing a firearm in furtherance of a crime of violence, in connection with four restaurant robberies. Judge Bennett also ordered Bonds to pay restitution of $24,900.

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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; Chief J. Thomas Manger of the Montgomery County Police Department; Carroll County State’s Attorney Jerry Barnes; Washington County State’s Attorney Charles P. Strong; and Montgomery County State’s Attorney John McCarthy.

According to Bond’s plea agreement, co-defendant Marvel Alegria was the manager of the Chipotle in Mt. Airy, Maryland until July 17, 2012 when she was fired for violating company policies. Alegria began discussing robbing the Chipotle restaurant with Bonds, which whom she was having a relationship. Alegria advised Bonds of the best time to commit the robbery, and how to access the store and its safe which contained money.

On July 22, 2012, Bonds and Alegria recruited co-defendant Norman Guifarro to participate in the robbery. That evening, Bonds and Guifarro entered the restaurant wearing masks Bonds had made from tee shirts. Bonds, armed with a shotgun, forced the manager into the office at gunpoint and obtained the money from the safe, while Guifarro, armed with a knife, held the other employees on the floor. Bonds and Guifarro stole $5,000 in cash and fled after forcing the employees into a bathroom. Bonds and Guifarro divided the stolen money among themselves and Alegria.

On August 4, October 21 and November 25, 2012, Bonds robbed Chipotle restaurants in Hagerstown, Gaithersburg and Damascus, Maryland, respectively, armed with what appeared to be a semi-automatic pistol, using similar methods as in the first robbery. In the August 4th robbery, Bonds and another man stole $9,400 from the safe. Alegria drove Bonds to and from the Gaithersburg and Damascus robberies where Bonds stole $7,000 and $3,500, respectively. In each robbery, Bonds forced the manager to open the safe at gunpoint.

Marvel Alegria, age 24, of Gaithersburg, previously pleaded guilty to her role in the conspiracy, was sentenced to 57 months in prison and ordered to pay restitution of $24,900. Norman Guifarro, age 24, of Montgomery County, was convicted in Carroll County Circuit Court of the Mt. Airy robbery and was sentenced to seven years in prison.

United States Attorney Rod J. Rosenstein commended the ATF, Maryland State Police, Montgomery County Police Department, Washington County Sheriff’s Office and the Montgomery, Washington and Carroll County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who is prosecuting the case.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Sherif Akande, age 36 of Bladensburg, Maryland, today to 199 months in prison followed by five years of supervised release for conspiring to commit bank fraud, bank fraud and aggravated identity theft. Judge Titus also entered an order that Akande pay restitution of $111,052.67.

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 Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

According to the statement of facts to which Mr. Akande agreed at his previous guilty plea, from January 2010 to May 2012, Sherif Akande, his brother Lateef Akande, and others recruited individuals to provide personal bank information regarding existing bank accounts in their names, or to open new accounts in their own names. Sherif Akande and others then caused third-party checks to be deposited into those bank accounts. For any of the checks that cleared, the co-conspirators would withdraw monies from those accounts.

For example, on September 20, 2010, Sherif Akande caused a co-conspirator to open a business account at a bank, and deposit a check in the amount of $43,750, drawn on the account of two unknowing victims. The memo line on the check contained the words “Final Settlement (Insurance)”, even though the co-conspirator had no insurance settlement—and had never met—the two victims.

Lateef Akande, age 36, of Bladensburg, Maryland, previously pleaded guilty to his participation in the scheme, was sentenced to 175 months in prison and ordered to pay restitution of $418,042. Antonio Holmes, age 29, of Washington, DC, also pleaded guilty, was sentenced to 30 months in prison, and ordered to pay restitution of $363,738.71.

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 praised the Secret Service and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Thomas P. Windom, and Special Assistant United States Attorney Margaret Moeser, of the U.S. Justice Department’s Asset Forfeiture & Money Laundering Section, who prosecuted the case.

Communicated With the Victim Through a Social Networking Site

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Gregory King, age 28, of Washington, D.C. today to 10 years in prison, followed by 10 years of supervised release, for traveling across state lines to engage in illicit sexual conduct with a 14 year old female and for using a computer to persuade, induce, entice and coerce the minor to engage in sexually explicit conduct. Judge Messitte also ordered that upon his release from prison, King must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to King’s plea agreement, on October 9, 2013, he initiated a chat with the victim, a 13 year old girl, on a social networking site. The girl advertised her age on her profile page as 13. During October and November 2013, King and the victim exchanged sexually explicit photographs and engaged in sexually explicit conversations. On October 30, 2013, King chatted with the victim about coming to her house in Maryland from Washington, D.C., telling the victim that he would take a bus to her house. The victim provided King with her address, but King was not able to get to the victim’s house that night. King continued to chat with the victim and on November 21, 2013, shortly after the victim’s 14th birthday, again discussed coming to the victim’s home. King took a bus from Washington, D.C. and met the victim at her home, where he spent the night. According to the facts presented to the Court at today’s sentencing, the victim’s parents were not home at the time. King was arrested on January 19, 2014.

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

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

Used Fraudulently Obtained Personal Information of over 50 Individuals
Resulting in Loss of over $180,000

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Darrick Jerome Greer, age 25, of Owings Mills, Maryland, today to 42 months in prison followed by five years of supervised release for bank fraud and aggravated identity theft. Judge Motz also ordered Greer to pay restitution of $183,846.96.

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

According to his plea, from November 2012 to January 2014, Greer recruited individuals – unindicted coconspirators – who were often young people in financial straits. Greer offered them money in return for access to their bank accounts, by giving Greer their personal identifying information, ATM cards and PIN numbers. Greer or his associates would obtain checks from bank accounts of third parties who may or may not have been participants in the scheme.

Once Greer obtained access to the bank accounts of others, he would deposit checks fraudulently drawn from third party accounts. Then, Greer used the ATM cards and PINs given to him to access the coconspirators accounts and withdraw some or all of the proceeds of the fraudulent check deposits previously made. Greer sometimes paid his coconspirators some of the fraudulently obtained proceeds of this scheme.

Greer defrauded or used the personal identifying information of over 50 individuals, resulting in a total loss to two banks of $183,846.96.

While on release pending sentencing, Greer was arrested with a gun and subsequently indicted for being a felon in possession of a firearm. Greer had his initial appearance in U.S. District Court today on that charge and pleaded not guilty. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

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

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

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Kenneth Charles Diggins, age 38, of Bel Air, Maryland today to 10 years in prison followed by three years of supervised release for conspiracy to distribute heroin, and distribution of heroin, the use of which resulted in death.

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 Harford County Sheriff L. Jesse Bane.

According to his plea agreement, Diggins supplied heroin to Jamie Lynn Lidlow on multiple occasions in late December 2011. On December 27, 2011, Lidlow and another individual arrived at Diggins’ residence. They drove to Towson, Maryland to buy heroin. Diggins bought six grams of heroin from a drug dealer, and was reimbursed by Lidlow and the other individual. Diggins drove them back to his house where Lidlow and the other individual each took the heroin Diggins had purchased. Lidlow subsequently died of heroin overdose, after using the heroin supplied by Diggins.

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

Sexually Assaulted a Toddler; Agrees to a Prison Sentence of 25 Years

Baltimore, Maryland – Darrius Carr, age 22, of Severn, pleaded guilty late on November 19, 2014, to producing child pornography arising from his sexual assault of a toddler on March 7 and 11, 2014.

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; Anne Arundel County Police Chief Kevin Davis; and Anne Arundel County State’s Attorney Anne Colt Leitess.

"This was an unthinkable crime against a toddler," said Anne Arundel County Police Chief Kevin Davis. "I commend the investigators from the FBI and the Anne Arundel County Police Department for their dedication and tenacity in investigating such a difficult case. Hopefully this predator will never be able to victimize another child."

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

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

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

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

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

Carr and the government have agreed that if the Court accepts the plea agreement Carr will be sentenced to 25 years in prison followed by a lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 26, 2015 at _.m.

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

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

Prostituted His Wife and Another Woman

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced former Baltimore Police officer Lamin Manneh, age 33, of Baltimore, today to 21 months in prison followed by two years of supervised release for traveling across state lines and using the telephone and internet to operate a prostitution business.

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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Anne Arundel County State’s Attorney Anne C. Leitess.

According to Manneh’s indictment and information presented at court hearings, from February to May 9, 2013, Manneh operated a prostitution business with over 300 customers. Manneh’s 19 year old wife and another 19 year old woman worked as prostitutes for Manneh. The government alleges that as part of his business, Manneh wrote, paid for and posted more than 50 prostitution ads for the two women on internet websites; rented an apartment and hotel rooms for clients; and drove the women to residences and hotel rooms specified by clients.

According to information presented at the plea hearing, Manneh provided the women with cell phones and taught them to use “voice over internet” phone services to communicate with prospective clients and with one another. Manneh waited outside the prostitution locations and sent the women electronic messages when they were with clients. Manneh carried his police-issued firearm and agreed to forcibly interrupt a sex interaction if the client was aggressive or non-compliant. He supplied both women with synthetic marijuana. Manneh collected all of his wife’s prostitution earnings and a percentage of the other woman’s prostitution earnings.

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, Maryland State Police and Anne Arundel County State’s Attorney’s Office for their work in the investigation and recognized the Baltimore Police Department for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Furman Troy, age 44, of Charlotte Hall, Maryland, today to 12 years in prison followed by five years of supervised release for two counts of armed commercial robbery and for brandishing a firearm in relation to a crime of violence.

Co-defendant Darrell Lee, age 46, also of Charlotte Hall, pleaded guilty to the same charges on November 19, 2014.

The sentence and guilty plea were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and St. Mary’s County Sheriff Tim Cameron.

According to their plea agreements, on June 18, 2014, Troy and Lee entered a jewelry store in Charlotte Hall, Maryland in order to commit a robbery. Lee brandished a firearm at the owner of the store and Troy subsequently bound the victim with duct tape. The robbers then demanded the key to the jewelry counter from an employee of the store and stole jewelry worth more than $8,800, cash, a laptop computer and other items. On June 22, 2014, Troy and Lee robbed a pharmacy in Mechanicsville, Maryland. During the robbery Lee again brandished a gun and Troy bound the employee with duct tape. Troy and Lee stole cash and prescription bottles containing oxycodone, methadone, hydrocodone and endocet, valued at $8,897.

Judge Grimm has scheduled sentencing for Darrell Lee on March 27, 2015, at 9:00 a.m.

United States Attorney Rod J. Rosenstein commended the FBI and St. Mary’s County Sheriff’s Office for their work in the investigation and recognized the St. Mary’s County State’s Attorney’s Office for its assistance in the case. Mr. Rosenstein thanked Assistant United States Attorney Leah J. Bressack, who prosecuted the case.

Also Collected Over $17 Million in Asset Forfeitures

Baltimore, Maryland – U.S. Attorney Rod J. Rosenstein announced that financial collections in criminal and civil actions in Fiscal Year (FY) 2014 in the District of Maryland reached $27,364,401.50. The U.S. Department of Justice keeps statistics on a fiscal year basis, closing the books each September 30.

Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”

“Thanks to the hard work and dedication of employees of the U.S. Attorney’s Office and our partner agencies, funds recovered far exceed the cost of operating the office,” said Maryland U.S. Attorney Rod J. Rosenstein. “We will continue to hold accountable anyone who seeks to profit from illegal activities.”

According to statistics from the Department of Justice, the U.S. Attorney’s Office for the District of Maryland in FY 2014 collected $9,928,842.84 in criminal debts owed to the U.S. government and to federal crime victims, including restitution, criminal fines and felony assessments.

The statistics show that the $17,435,558.66 collected in civil actions in Maryland, include affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws, and debts collected on behalf of several federal agencies, including the U.S. Department of Education, Housing and Urban Development, Health and Human Services, Internal Revenue Service, and Small Business Administration.

Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $151,698,129.29 in cases pursued jointly with these offices, including cases resolved under the False Claims Act on behalf of victim agencies such as the Department of Health and Human Services and the General Services Administration. These cases include the successful resolutions of United States ex rel. Thakur v. Ranbaxy Laboratories Limited, United States ex rel. Marcus v. Tumbleweed Communications Corp., United States ex rel. Ryan v. Trans 1, Inc. and an investigation of Foundation Health Services, Inc.

The U.S. Attorneys’ offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

In addition, the U.S. Attorney’s Office for the District of Maryland, working with partner agencies and divisions, collected $17,337,191 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

For more information, the Department’s Annual Statistical Reports on prior fiscal years can be found on the internet at: http://www.justice.gov/usao/reading_room/foiamanuals.html.

Victim Non-Profits Provided Services to the Homeless, Disadvantaged Children, and a Baltimore Community

Baltimore, Maryland - A federal grand jury has indicted Sharon Harrison, age 48, of Rosedale, Maryland, for embezzling more than $1.3 million from four non-profit organizations for which she worked and which received federal funding. Her sister, Kimberly Harrison, age 46, also of Rosedale, was charged in a separate indictment with embezzling funds from a federally funded non-profit organization she founded. She was also charged with bankruptcy fraud. Both indictments were returned today.

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

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

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

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

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

The indictment alleges that over the course of her employment at HEAL, RHIC, JHR and Between Friends, Sharon Harrison embezzled over $1.3 million. The indictment seeks the forfeiture of $1,306,797.70, believed to be the proceeds of the scheme.

“When we learn about individuals who seek to enrich themselves at the expense of HUD programs designed to help out those who have a great need for help to survive, we vigorously investigate these individuals to ensure they are removed from a position to place the public and HUD programs at financial harm. We would like to thank our law enforcement partners from the FBI and the Inspector General's Office for the City of Baltimore for their superb investigative efforts,” said Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General, Mid-Atlantic Region.

Kimberly Harrison’s two-count indictment alleges that she embezzled over $100,000 from Between Friends, which she founded and operated from 2008 to 2012, including $60,264 which she stole from September 2011 to September 2012. Also, according to her indictment, when Kimberly Harrison filed for bankruptcy on June 28, 2012, she did not disclose the approximately $45,514 she had received from Between Friends, Inc., in the form of both checks made payable to Harrison directly, and checks made payable to her landlord for Harrison’s monthly rent payments, from June 2011 until the filing of her petition. Harrison also allegedly failed to list as an asset a 2009 Lexus RX350 that she purchased for $31,037.88 on June 23, 2012, just five days prior to filing her petition.

Sharon and Kimberly Harrison each face a maximum sentence of 10 years in prison for each count of federal program theft. Kimberly Harrison also faces a maximum penalty of five years in prison for bankruptcy fraud. An initial appearance has not been scheduled for either of the Harrisons in U.S. District Court in Baltimore.

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

Greenbelt, Maryland –Travis Wetzel, age 35, of Frederick, Maryland pleaded guilty today to wire fraud and money laundering in connection with a fraudulent scheme to transfer $1,282,224 from an elderly client’s annuity account.

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

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

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

Wetzel has agreed to forfeit $1,282,224.

Wetzel faces a maximum sentence of 30 years in prison and a $250,000 fine for wire fraud; and 10 years in prison for money laundering. U.S. District Judge Deborah K. Chasanow scheduled sentencing for February 23, 2015, at 11:30 a.m.

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

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

Baltimore, Maryland - A federal grand jury has indicted Justin Jose Snow, a/k/a “J.O.,” age 22; his brother, Johnny Devon Snow, age 20; their cousin Taylor Yvonne Snow, age 22; and Arkeene Antoyn Redditt-Abrams, a/k/a “Duke,” age 26, all of Baltimore, today in connection with the armed robberies of three cell phone stores.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Gary Gardner of the Howard County Police Department.

According to the six-count indictment, from May 1, 2014 through June 24, 2014, the defendants conspired to rob three cell phone stores. The indictment alleges that the defendants planned to steal cash, cell phones and other electronic communications devices, and tablet computers; and that they planned to sell the stolen merchandise. As part of the plan, the defendants determined which firearms were used in the commission of the robberies; conducted surveillance of the targeted stores; wore face masks, hooded jackets and gloves to conceal their identities; and used plastic trash bags to carry the stolen items from the stores.

Specifically, the indictment alleges that on June 17, 2014, the defendants used a car rented by Taylor Snow to travel to an AT&T store on Dual Highway in Hagerstown. Taylor Snow allegedly entered the store to “case” it before the robbery. A short time later Justin Snow, Taylor Snow and Johnny Snow entered the store, and brandished a firearm in an attempt to rob an employee of the store. According to the indictment, a few hours later the defendants drove the rented car to an AT&T store in Ellicott City, Maryland. Redditt-Abrams allegedly entered the store to “case” it, then the Snows entered the store, brandished a gun and stole cash, cell phones and tablet computers worth more than $18,000.

Further, the indictment alleges that on June 24, 2014, Justin and Taylor Snow traveled to Mechanicsburg, Pennsylvania, where they used a gun to rob a T-Mobile store of cash, cell phones and tablet computers.

The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each of two counts of committing a commercial robbery; and a minimum of seven years and up to life in prison for each of three counts of brandishing a firearm in relation to a crime of violence, consecutive to any other sentence. No court appearance has been scheduled for the defendants who remain in custody 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, and Howard County Police Department, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, who is prosecuting the case.

Thirteen Co-Defendants Previously Convicted and Sentenced

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Raymond Jefferson, age 44, of Baltimore, to five years in prison, followed by three years of supervised release, for conspiring to distribute and possession with intent to distribute heroin.

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

According to his plea agreement, from January to July 23, 2013, Jefferson was part of a drug trafficking organization that distributed heroin from an open-air drug “shop” in the Poplar Grove neighborhood of Baltimore. On a daily basis during the conspiracy Jefferson’s co-conspirators purchased heroin from several sources of supply, stored narcotics at “stash houses” throughout Baltimore, and packaged narcotics for street-level distribution. Jefferson personally sold heroin to retail customers and, at times, supervised the activities of other street-level dealers.

During the conspiracy, Jefferson and others conspired to distribute and possess with the intent to distribute at least one kilogram of heroin.

Darryl Robinson, age 50, of Baltimore, the leader of the organization, pleaded guilty and was sentenced to 15 years in prison. The remaining co-defendants: Mario Williams, age 38, of Baltimore; Darrell Gilliam, age 44, of Towson, Maryland; Isiah Robinson, age 28, of Baltimore; Antonio Berry, age 43, of Baltimore; Joyce Dunn, age 52, of Baltimore; Tyree Howard, age 48, of Baltimore; Hilton Gibbs, age 43, of Baltimore; Douglas Duncan, age 48, of Baltimore; Darryl Debro, age 39, of Baltimore; Kevin Fisher, age 46, of Baltimore; Eric Johnson, age 43, of Baltimore; and Reginald Randolph, age 48, of Baltimore, also pleaded guilty and were sentenced for their roles in the conspiracy.

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

Used Handguns and Threatened to Kill Store Employees

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Richard Coleman, age 49, of Dundalk, Maryland, today to 14 years in prison, followed by three years of supervised release for conspiring to commit 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; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.

According to his plea agreement, on December 7, 2013, Coleman and Arnold Dorsey entered a rental business on Frederick Road in Baltimore City. They conversed about gifts with each other and store staff. They asked an employee about an iPad (tablet computer.)

The store clerk walked back to an office to retrieve a charger to demonstrate the tablet. Both Dorsey and Coleman followed the clerk to the office. Once there, Coleman pulled out a semiautomatic handgun and pointed it at the clerk. Dorsey went to the next office, pulled out a semiautomatic handgun and pointed it at another clerk. They forced the clerks to open the register and took $1,144. They then took $73 from one clerk and $85 from another clerk. At this point they had the clerks lie on the floor and threatened to kill them.

The Baltimore Police Department received a call for a hold up and two officers responded. The first officer on the scene saw both defendants behind the counter in front of the office area. A clerk signaled to the officer alerting the officer that the defendants were robbing the business. The officer entered and made contact with Dorsey as he attempted to leave the store. The officer saw Dorsey’s handgun and had to subdue Dorsey. A second officer arrived and took custody of Coleman who surrendered his handgun. The officers recovered $1,144 from Dorsey and $158 from Coleman.

Co-defendant Arnold Dorsey, age 52, of Baltimore, previously pleaded guilty to his participation in the robbery and is scheduled to be sentenced on November 25, 2014 at 11:00 a.m.

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

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Emanuel Honemond, age 24, of Washington, D.C. today to 18 months in prison followed by three years of supervised release for conspiring to rob a bank.

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

According to his plea agreement, on September 20, 2011, Honemond and his co-conspirators entered the Navy Federal Credit Union in Clinton, Maryland clothed in masks and announced a robbery. They took $100,427 and fled in a stolen van. The stolen money contained a tracking device and was recovered shortly thereafter by law enforcement.

Davon Stephon Williams, age 24, and Jeffrey Louis Adams, age 35, both of Washington, D.C. previously pleaded guilty to their participation in the robbery and were sentenced to 84 months and 112 months in prison, respectively.

United States Attorney Rod J. Rosenstein praised the FBI and Prince George’s County Police Department for their work in the investigation and thanked Assistant U.S. Attorneys Bryan Foreman and William Moomau, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Gary Barham, age 52, of Easton, Maryland, today to 11 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.

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

According to his plea agreement, since early 2014, Barham conspired with Jeffrey Anderson and others to distribute and possess with the intent to distribute heroin. During the course of the conspiracy, Barham obtained bulk quantities of heroin from Jeffrey Anderson, which he then re-distributed in and around the Eastern Shore of Maryland.

During the investigation, law enforcement obtained a wiretap on phone lines used by Anderson. Barham was overheard by law enforcement on numerous calls discussing heroin sales with Anderson. For example, on April 2, 2014, law enforcement overheard Barham and Anderson discuss meeting at a restaurant in Bowie, Maryland, so that Barham could obtain a supply of heroin. Law enforcement then saw Barham and Anderson meet at the restaurant to conduct the drug transaction.

Over the course of the conspiracy, Barham distributed at least 100 grams of heroin.

Jeffrey Michael Anderson, age 35, of Upper Marlboro, Maryland, pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin. Anderson and the Government have agreed that if the Court accepts his plea agreement, Anderson will be sentenced to 192 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for Anderson on January 30, 2015, at 3:00 p.m.

Co-defendants Rahdel Sharbaan, age 41, of Bronx, New York; Reginald Jones, age 26, of Bronx, New York; Shawn Christopher Malley, age 25, of Crofton, Maryland; Amanda Jo Palmer, age 32, of Hagerstown, Maryland; and William Ulysses Robinson, age 38, of Grasonville, Maryland, have all pleaded guilty to their roles in the conspiracy. Judge Bennett has scheduled sentencing for Robinson on January 6, 2015, at 2:00 p.m.; for Malley on January 7, 2015, at 3:00 p.m.; for Sharbaan on January 8, 2015, at 3:00 p.m.; for Jones on January 9, 2015, at 11:00 a.m.; and for Palmer on January 21, 2015, at 3:00 p.m.

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

Defendants Received Over $1.1 Million from USDA for Food Stamps Traded for Cash

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Abdulmalik Abdulla, age 37, and Ahmed Mohssen, age 54, both of Baltimore, today each to four years in prison, followed by one year of supervised release, for food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Bennett also ordered Abdulla and Mohssen, who were convicted on August 8, 2014, after a four day trial, to forfeit and pay restitution of $1,185,583.09.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients use the EBT card to purchase approved food items from participating retailers.

Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers bill the government in return for providing approved food items. SNAP retailers, including the defendants, receive instruction regarding the requirements and regulations of the food stamp program, such as that only eligible food items can be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.

The evidence presented at the four day trial showed that the defendants, who operated Sam’s NY Grocery, a convenience store on North Milton Street in Baltimore, received over $1.1 million in federal payments for transactions in which they did not provide any food, but split the proceeds with food stamp recipients. According to testimony at trial, the defendants exchanged EBT benefits for cash, typically paying half the value of the EBT benefits in cash and keeping the rest for themselves. The testimony at trial also showed that the defendants accepted food stamp benefits to sell individual cigarettes removed from a pack at a substantial markup. As a result of the unlawful transactions, the defendants obtained more than $1.1 million in EBT deposits for transactions in which the store did not provide food.

In separate cases, the 10 convenience store owners or operators indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud. Abdullah Aljaradi, age 52, and Ahmed Ayedh Al-Jabrati, age 56, both citizens of Yemen residing in Baltimore, were each sentenced to two years in prison, and ordered to pay restitution of $1.2 million. Jung Kim, age 52, of Ellicott City, Maryland, was sentenced to 20 months in prison, and ordered to forfeit $95,453.50 and pay restitution of $205,000. Amara Cisse, age 51, of Windsor Mill, Maryland, was sentenced to 27 months in prison and ordered to pay restitution of $654,349.24, and his wife, Fanta Keita was sentenced to two months in prison. John Cunningham, age 55, of Baltimore, was sentenced to two years in prison. Retailer Hyung Cho, age 40, was sentenced to 38 months in prison, and his mother Dae Cho, age 67, was sentenced to 18 months in prison. The Chos were also ordered to forfeit $371,439.21 and pay restitution of $1.4 million. Abdo Mohamed Nagi, age 54, a citizen of Yemen residing in Baltimore, and Kim Man Chu, age 39, of Rosedale, Maryland, pleaded guilty and were sentenced to 46 months and 18 months in prison, respectively. Nagi was ordered to forfeit $1.2 million and Chu was ordered to forfeit $834,996 and six firearms along with ammunition.

United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I Sharfstein and Leo J. Wise, who prosecuted the case.

Allegedly Misled Over 50 Individual Investors Who Bought Bonds

Baltimore, Maryland - A federal grand jury has indicted Wilfred T. Azar, III, age 53, formerly of Queenstown, Maryland, on charges of securities fraud. The indictment was returned on
November 4, 2014, and unsealed today.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Sharon B. Binger, Director of the Securities and Exchange Commission’s Philadelphia Regional Office.

Empire Corporation owned Empire Towers Corporation. Empire Towers Corporation’s primary asset was Empire Towers, a 10 story office building in Glen Burnie, Maryland. Azar was president and majority owner of Empire Corporation and Empire Towers Corporation.

The indictment alleges that by January 2006, Empire Corporation could no longer pay its expenses and was effectively insolvent. By 2007, Empire Towers Corporation had exhausted its lines of credit from lending institutions.

From January 2006 to April 2010, Azar caused Empire Corporation to sell bonds to over 50 individual investors for more than $7 million. While many of the bonds were titled “registered,” the bonds were not registered with either the U.S. Securities and Exchange Commission (SEC) or the State of Maryland.

According to the indictment, Azar falsely told investors that Empire Corporation was in good financial health, and that the money would be used to renovate the Empire Towers office building. Azar failed to inform investors that he used most of the money raised from previous bond sales for his own personal purposes. Although the bonds were issued by Empire Corporation, Azar diverted millions of dollars of proceeds from the bond sales to his own bank account and the bank accounts of other companies that he controlled. He used the money to pay his personal expenses, including the purchase of luxury vehicles and vacations, as well as to finance his other real estate ventures and yacht brokerage business.

Azar faces a maximum sentence of 20 years in prison. No court appearance has been scheduled.

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.

Also today, the SEC has filed a complaint against Azar and another individual in connection with the scheme.

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

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Anthony Hardy, age 43, of Nanticoke, Maryland, today to nine years in prison followed by five years of supervised release for conspiring to distribute cocaine.

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 Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; U.S. Marshal Johnny Hughes; and Wicomico County State’s Attorney Matthew Maciarello.

According to his guilty plea, Hardy conspired with Maurice Hardy (no relation) and others to distribute cocaine. Anthony Hardy supplied Maurice Hardy with cocaine on several occasions during the course of the investigation and was overheard on by law enforcement discussing drug transactions with Maurice Hardy. Maurice Hardy’s primary source of supply was Austin Roberts. On May 11, 2011, Hardy indicated in a telephone call to Anthony Hardy that Roberts would be supplying him with seven kilograms of cocaine for $31,500 per kilogram. The next day in Salisbury, Maryland, Andrew Jackson, under Roberts’ direction, provided several kilograms of cocaine to Maurice Hardy. Subsequent to this meeting, law enforcement stopped Jackson’s vehicle and seized over $160,000 from a hidden compartment.

On June 28, 2011, during a telephone call, Anthony Hardy told Maurice Hardy that he had 12 kilograms of cocaine. Maurice Hardy agreed to purchase two kilograms of cocaine at $33,000 per kilogram. According to his plea agreement, Anthony Hardy did not actually have 12 kilograms of cocaine in his possession. This is reflected by the fact that the next day, Anthony Hardy met Maurice Hardy in Nanticoke, and provided Maurice Hardy with 1.027 kilograms of cocaine, not two kilograms as had been agreed upon. After the meeting, law enforcement stopped Maurice Hardy’s car and seized the cocaine.

During the course of the conspiracy, Anthony Hardy and his co-conspirators distributed over 5 kilograms of cocaine.

Maurice Kenneth Hardy, age 37, of Bridgeville, Delaware, pleaded guilty to his role in the conspiracy and was sentenced to 16 years in prison. Austin Roberts, III, age 37, formerly of Elkridge, Maryland; Andrew Jackson, age 39, of Baltimore, Maryland; and Tereek Nutter, age 30, of Salisbury, Maryland, also pleaded guilty to their participation in the drug conspiracy and were sentenced to 19 years in prison,10 years in prison and 151 months in prison, respectively.

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

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Gregory E. Grantham, age 57, of Oceanside, California, today to five years in prison, followed by three years of supervised release, for a wire fraud conspiracy, wire fraud and obstruction of justice. Judge Motz also ordered Grantham to forfeit/ pay restitution of $17.4 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.

Grantham is a licensed attorney and between September 2009 and September 2011, was employed as General Counsel for IAGU Underwriters, LLC, as well as maintaining a private law practice. Graham’s co-defendant, Mervyn Phelan operated 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.

According to his plea agreement and court documents, between mid-2010 and August 2011, Grantham and Phelan became involved in a fraudulent scheme carried out by Patrick Belzner and Brian McCloskey, who both resided in Baltimore County. 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. Phelan and 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 series of private lenders to fund loans to establish that the McCloskey Group had reserves of cash that would supposedly help it obtain loans it was seeking in connection with 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 fees or interest. In fact, once the lenders transferred their funds into the escrow accounts, Belzner directed McCloskey to remove those funds from the escrow accounts without the knowledge or permission of the lenders. Belzner and McCloskey then used the majority of the stolen funds to pay for their personal and business expenses. The total losses resulting from the scheme were approximately $20 million.

Beginning in about the late summer of 2010, Grantham and Phelan co-operated with Belzner and McCloskey in their scheme to defraud by (1) making false representations to help persuade private lenders and investment partnerships to loan sums of money to the McCloskey Group for the purposes of meeting “liquidity” requirements imposed by IAGU or various prospective lenders and to place these funds in an escrow account controlled by Kevin Sniffen; and by (2) 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 various escrow account lenders that funding on a particular project was imminent when they knew this was not the case, and in one case represented that they were holding millions of dollars in escrow funds tendered by one group of lenders when this was not true.

At today’s sentencing the Court determined that Grantham was responsible for $17.4 million in losses as a result of the scheme.

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

Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Selbyville, Delaware, was sentenced to 15 years in prison for wire fraud conspiracy, wire fraud and tax evasion, and was ordered to $19.805 million in restitution. Brian McCloskey, age 42, of Baltimore and Kevin Sniffen, age 53, of Phoenix, Maryland have each pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on December 12, 2014, and December 19, 2014, respectively. Mervyn A. Phelan, Sr., age 74, of Newport Beach, California, has pleaded guilty and is scheduled to be sentenced on December 5, 2014.

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

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

Greenbelt, Maryland – Rebecca Lynn Biglow, age 42, of Gaithersburg, Maryland pleaded guilty today to mail fraud and aggravated identity theft in connection with a fraud scheme to obtain $71,022 in unemployment insurance benefits. Biglow also pleaded guilty to violating terms of her supervised release imposed after she had served time in prison for a previous federal conviction for bank fraud.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Bill Jones, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Mark Kaufman, Commissioner of the Maryland Department of Labor, Licensing and Regulation’s (DLLR) Division of Financial Regulation.

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

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

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

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

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

Biglow agrees to pay forfeiture and restitution of $71,022, the total amount paid by DLLR on the four fraudulent claims.

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

Biglow faces a maximum sentence of 20 years in prison for mail fraud; a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft; and three years in prison for violating her supervised release, less any term of imprisonment imposed upon revocation of supervised release. U.S. District Judge Deborah K. Chasanow scheduled sentencing for March 2, 2015.

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

Investigation Exposed Woman Who Fraudulently Collected $250,000 in Federal Benefits; Received Food Stamps While Taking Postal Disability Payments

Baltimore, Maryland – Colette Lee, age 49, of Baltimore, pleaded guilty today to making false statements to obtain federal employee compensation benefits.

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

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

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

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

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

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

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

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

Lee has agreed to pay restitution of $244,912.65, the loss suffered by the Postal Service and the Department of Agriculture from May 2007 through January 2014 by Lee’s false statements. Lee faces a maximum sentence of five years in prison. U.S. District Judge Marvin J. Garbis scheduled sentencing for February 2, 2015 at 10:00 a.m.

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

Attempted to Perform a Traffic Stop and Called Police When the Driver Ran Away

Greenbelt, Maryland – Joseph Lewis, age 53, of Forestville, Maryland pleaded guilty today to impersonating a federal officer.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Chief of Police Robert D. MacLean of the U.S. Park Police; and Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service, Washington Field Office.

According to his plea agreement, on December 19, 2012, Lewis made a 911 call to request help after he had attempted to initiate a traffic stop on Suitland Parkway, and the driver had run away. Lewis identified himself as an off duty Department of Defense (DOD) Police officer to the U.S. Park Police dispatcher. When Park Police officers arrived at the scene, Lewis displayed DOD police credentials and had a police badge hanging on a chain around his neck. Lewis also had a semi-automatic handgun in a holster on his waist and handcuffs. Lewis was operating a brown Chevrolet Suburban with law enforcement registration, which was equipped with flashing red and blue lights on the front, sides and rear of the vehicle.

In fact, Lewis was not a DOD police officer and was not authorized to carry police credentials, a police badge or a firearm. The Suburban was Lewis’ personal vehicle. A search warrant executed at Lewis’ home on January 9, 2013, recovered numerous items of police gear, including three handguns, ammunition, handcuffs, mace, batons, stun guns, DOD police officer credentials and law enforcement officer badges and patches.

Lewis faces a maximum sentence of three years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for February 13, 2015, at 9:00 a.m.

United States Attorney Rod J. Rosenstein praised the U.S. Park Police and Naval Criminal Investigative Service for their work in the investigation, and thanked Assistant U.S. Attorney Deborah A. Johnston, who is prosecuting the case.

Baltimore, Maryland – Antione White, age 26, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.

Co-defendant and fellow UDH member Bryan Turner, age 29, of Baltimore, pleaded guilty to conspiracy to distribute and possess with intent to distribute crack cocaine and heroin on November 5, 2014.

The guilty pleas 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

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

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

On August 5, 2011, Turner participated in the robbery of the Chesapeake Bank of Maryland in Arbutus, along with other UDH members. Turner and others went into the bank and presented the teller with a note demanding money. Turner and his associates stole $7,305, which was later divided between Turner and three other UDH members.

White and Turner admitted that as members of UDH they also sold crack cocaine, heroin and other narcotics with UDH members. They sold the drugs from a house located on Giles Road, in the UDH area of Cherry Hill. At one point, Turner even lived in the residence. In addition to selling drugs from this location, White and others stored firearms at the house, which were used communally by other UDH members. On March 8, 2011, officers executed a search warrant at a residence in the 2900 block of Cherryland Road. Turner and other UDH members were arrested and law enforcement recovered $105 from the toilet, where a UDH member had attempted to flush it; a backpack with 406 vials containing almost 25 grams of crack cocaine; drug paraphernalia and packaging material. Officers recovered $192 in cash and two Percocet pills from Turner. On January 18, 2013, Baltimore City Police arrested White and other UDH members at the Giles Road residence and seized cocaine, drug paraphernalia and a loaded gun.

During their participation in the UDH drug conspiracy, White and Turner were each responsible for distributing in excess of 280 grams of crack cocaine. Turner was also responsible for distributing more than a kilogram of heroin.

Turner faces a minimum of 10 years and a maximum of life in prison for the drug conspiracy. White and the government have agreed that if the Court accepts the plea agreement White will be sentenced to between 15 and 20 years in prison. U.S. District Judge George L. Russell III has scheduled sentencing for Turner on May 15, 2015 at 9:30 a.m. and for White on February 20, 2015, at 11:00 a.m.

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

Greenbelt, Maryland – Katherine Noelle Nash, age 26, of Burtonsville, Maryland, pleaded guilty today to transportation and possession of child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge 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 Nash’s 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.

A subsequent forensic examination of one of the computers revealed 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 the files Nash distributed to the undercover officer. Nash had downloaded the files from the internet and many of the images were identified by the National Center for Missing and Exploited Children as depicting known victims. A preliminary analysis of the second computer revealed approximately 190 images and videos depicting children engaged in sexually explicit conduct.

As part of her plea agreement, 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).

Nash and the government have agreed that if the Court accepts the plea agreement Nash will be sentenced to eight years in prison followed by a lifetime of supervised release. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 2, 2015 at 1:30 p.m.

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

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

Greenbelt, Maryland – Brian Hooper, age 42, of Woodbridge, Virginia, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to steal over $1 million from a consulting company.

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

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

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

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

Hooper has agreed to forfeit and pay restitution of $1,031,571.96, the loss resulting from his conduct.

Hooper faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel scheduled his sentencing for February 2, 2015, at 9:30 a.m.

Leonard Smedley II, age 35, of Capitol Heights, Maryland; Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania; and Janice McCumbie, age 45, of Marydel, Maryland; previously pleaded guilty to the conspiracy and are scheduled to be sentenced on January 15, 20 and 27, 2015, respectively.

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Foster William Dove III, age 39, of Essex, Maryland, today to 50 years in prison, followed by lifetime supervised release for production of child pornography. Judge Quarles ordered that upon his release from prison, Dove must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to court documents and statements made at today’s hearing, on August 18, 2013, Dove distributed a video depicting minors engaged in sexually explicit conduct to an undercover officer using a file sharing program. A search warrant was subsequently executed at Dove’s residence and law enforcement recovered images and videos documenting Dove’s sexual abuse of two minor boys. Investigation also revealed that Dove had secretly videotaped approximately 17 additional minor males engaging in sexually explicit conduct through a hidden camera in his bathroom. Dove has been detained since his arrest on September 16, 2013.

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

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

DNA Sample Taken by California Police in 2013 Matched 2009 Maryland Murder Scene

Baltimore, Maryland - U.S. District Judge William M. Nickerson sentenced Dellando Recardo Campbell, age 32, of Lemoore, California, today to 30 years in prison followed by five years of supervised release for interstate domestic violence resulting in the death of a spouse, in connection of the death of Serika Dunkley Holness.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

“The blood Dellando Campbell left behind at the 2009 crime scene was analyzed and entered into a national DNA database, where it waited four years for a match,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a routine DNA analysis performed in California when Mr. Campbell was arrested on an unrelated charge, Maryland authorities finally learned the identity of the second killer of Serika Dunkley Holness.”

According to his plea agreement, Campbell agreed to help Ryan Dave Holness murder Ryan Holness’ wife, Serika Dunkley Holness, and conceal Ryan Holness’ role in the murder. Campbell had known Holness since 2002, when they served together in the Navy.

In November 2008, Holness represented himself to be his wife when he completed an on-line application for a $500,000 life insurance policy for his wife. Holness designated himself as the sole beneficiary of that policy. The policy would not have been issued had the insurer known that Holness purchased the policy.

Between May and June 4, 2009, Holness contacted Campbell by phone and text at least 34 times and arranged for Campbell to travel to New York City to assist in the murder of Serika Holness. On June 4, 2009, Holness told Campbell that he was going to kill the victim and that he needed Campbell’s help to make the murder appear to have been committed during a carjacking on the drive to Maryland.

Campbell admitted that on the evening of June 4, 2009, Holness drove Campbell and the victim from New York to Maryland. At around 1:30 a.m. on June 5, 2009, Holness, Campbell and the victim arrived at a rural area along MD Route 290, just south of MD Route 291, in Crumpton, Kent County, MD. Holness parked the Honda on a farm access road. Serika Holness was murdered in a field beside Route 290 where she was repeatedly stabbed, resulting in her death.

Campbell purposely left his own blood at the murder scene in order to provide support for Holness’s plan to tell the police that an unknown carjacker had attacked Holness and murdered the victim. Campbell admitted that he helped Holness stage the crime scene by depositing droplets of blood at various locations inside the passenger compartment of the Honda and on several of the victim’s personal items that were placed at the crime scene to be discovered by the police. Items at the murder scene from which Campbell’s DNA was later recovered included the victim’s purse, one of her sandals and a paperback book. Campbell then drove the Honda, guided by a GPS system, to a location between 6th and 7th Streets NW, Washington, D.C., where it was located and seized by homicide investigators later on June 5, 2009. Meanwhile, Holness told the police a bizarre, false story about the supposed carjacking.

On June 5, 2009 Holness was arrested and charged with premeditated murder. While being held in pretrial detention in Kent County, Holness asked another prisoner to draft a purported third party “confession” to the carjacking and murder. Holness told the cellmate to mail the detailed confession to the police from Washington, D.C. upon the cellmate’s release, which was imminent. Instead, the cellmate informed the state police of Holness’ efforts. Several pages of confessions, including pages written by Holness, were removed from Holenss’ cell by the state police.

After a two week trial, Ryan Holness, age 33, formerly of Lexington Park, Maryland, was convicted of domestic violence resulting in the death of a spouse and sentenced on June 9, 2011, to life in prison.

The DNA profile of the unidentified male found in Holness’ car and on items at the crime scene was entered into the national DNA data base, where it was regularly compared with DNA profiles recovered since its entry. On October 22, 2013, a sample of Campbell’s DNA was routinely obtained by police in Lemoore, California. In January 2014, the California Department of Justice notified the Maryland State Police that Campbell’s DNA profile matched the DNA profile for the unidentified male in the Holness case. Campbell was arrested by the Maryland State Police and FBI in Lemoore, California on February 7, 2014.

United States Attorney Rod J. Rosenstein praised the Maryland State Police and FBI for their work in the investigation and thanked the Kings County, California, District Attorney’s Office, the California Department of Justice and the Lemoore, California, Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys John F. Purcell, and Kenneth S. Clark, who prosecuted the case.

Sold Heroin to a Customer Resulting in the Man’s Death

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jacob Powell, age 21, of Thurmont today to seven years in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute heroin. Judge Quarles also ordered Powell to pay more than $7,000 in restitution, to cover the medical costs and funeral expenses of the person who died after Powell and a co-defendant supplied the victim with 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; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.

According to Powell’s plea agreement, between July 2012 and June 2014, Powell conspired with Myers and others to distribute heroin in western Maryland. Powell and Myers regularly obtained heroin from sources and re-sold that heroin to customers in and around Thurmont and Emmitsburg, Maryland.

On June 11, 2013, Myers and Powell sold heroin to Derek Dunsmore in Emmitsburg. The heroin Myers and Powell sold caused the death of Derek Dunsmore.

Kathleen Elizabeth Myers, age 21, of Thurmont, Maryland, previously pleaded guilty to the same charge and was sentenced on October 29, 2014 to seven years in prison.

United States Attorney Rod J. Rosenstein praised the DEA, Frederick County Sheriff’s Office, Maryland State Police and the Frederick County Narcotics Task Force for their work in the investigation and thanked Special Assistant U.S. Attorney Anthony J. Enright and Assistant U.S. Attorney Robert R. Harding, who prosecuted the case.

GPS Monitoring Catches Crook Who Robbed Three Stores in Two Weeks

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Lydell Pittman, age 24, of Baltimore, today to 181 months in prison followed by five years of supervised release for robbery and using a firearm during the robbery.

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

“Lydell Pittman will serve more than 15 years in federal prison for using a gun to commit robberies,” said U.S. Attorney Rod J. Rosenstein. “We are reducing violent crime by making sure criminals spend hard time for gun crime.”

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

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

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

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

Also Admitted to Illegally Possessing a Gun Purchased on the Street

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Michael Anthony McLeod age 31, of Baltimore, Maryland today to 100 months in prison followed by three years of supervised release for possession with intent to distribute crack cocaine.

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

According to McLeod’s plea agreement, on September 13, 2013, Baltimore City police officers executed a search warrant at McLeod’s home. McLeod was in the home when officers arrived. Officers recovered: a baggie containing 12 red top vials of crack cocaine packaged for distribution; a loaded .357 revolver; two clear baggies, each containing 20 red top vials of crack cocaine; drug paraphernalia, including digital scales; and $756 in cash, organized in several stacks. McLeod told officers that the firearm, drugs and drug paraphernalia were all his and that he had recently purchased the gun on the street.

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

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked Assistant U.S. Attorney John F. Purcell, Jr., who prosecuted the case.

Prescribed Drugs to His Girlfriend and Others Without a Medical Basis

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Dr. John K. Yacoub, age 58, of Baltimore, Maryland today to a year and a day in prison followed by two years of supervised release for conspiring to distribute and possess with intent to distribute fentanyl, hydrocodone, oxycodone, morphine and methadone. Chief Judge Blake also ordered Yacoub to pay restitution and forfeit $2,375.93.

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 Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Chief James W. Johnson of the Baltimore County Police Department; Chief Gary Gardner of the Howard County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to his plea agreement, between 2012 and 2013 Dr. Yacoub provided prescriptions and pills to his girlfriend who was a drug addict. He initially provided her with Vicodin, and later with oxycodone and morphine. By 2013, Dr. Yacoub was regularly writing prescriptions for morphine and fentanyl patches for his girlfriend’s personal use.

Dr. Yacoub asked two others to help him get additional prescription medication for his girlfriend in exchange for providing them with prescriptions for methadone. Investigators have determined that one of these individuals used Medicaid to pay for $2,375.92 of the morphine prescriptions obtained for Dr. Yacoub.

During a search warrant executed on September 23, 2013, investigators obtained patient files for Dr. Yacoub’s girlfriend and the other two individuals. None of the files reflected any medical treatment or medical reason for the medications prescribed to them by Dr. Yacoub. Dr. Yacoub admitted that he provided the prescriptions outside the scope of accepted medical practice.

United States Attorney Rod J. Rosenstein praised the DEA, HHS – Office of Inspector General, Baltimore County and Howard County Police Departments and the Baltimore Police Department for their work in the investigation. Mr. Rosenstein also recognized the Maryland Board of Physicians for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who prosecuted the case.