District of Maryland

Baltimore, Maryland –U.S. District Judge George L. Russell III sentenced Jarwon D. Scott, age 26, of Baltimore, today to 10 years 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 William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, on September 1, 2013, Scott offered to sell prescription drugs to residents of a motel in Catonsville, Maryland. When it came time for the delivery, Scott used the ruse of supplying drugs to gain access to a motel room and, along with another individual, robbed the two occupants. Scott brandished a handgun and demanded money from the occupants of the room.

Scott was arrested a few days later on September 5. Law enforcement seized a 9mm semi-automatic pistol with an obliterated serial number and ammunition from the car he was about to enter. Scott had previously been convicted of a felony and was prohibited from possessing the gun and ammunition.

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

Third Drug Gang Member Pleads Guilty

Baltimore, Maryland – U.S. District Judge George L. Russell, III, today sentenced UDH members Tony Johnson, a/k/a “Tony Mack,” age 27, and Russell Lumpkins, age 25, both of Baltimore, each to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute crack cocaine and heroin in the Cherry Hill section of Baltimore.

Delano Johnson, age 37, of Baltimore, also a member of UDH, pleaded guilty to the same charge on October 30, 2014.

The sentences and guilty plea 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, Delano Johnson, Tony Johnson and Russell Lumpkins are all longtime drug dealers in the Cherry Hill section of Baltimore. All three were members of the “UDH” organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” This area is northeast of West Patapsco Avenue and south of Arundel Elementary- Middle School, that extends on the southeastern side approximately to Denham Circle and Bridgeview Road, and that includes Giles Road, Fisk Road, Slater Road, part of Spelman Road, part of Round Road, Claflin Court, Winwood Court, and the surrounding areas. In addition to the drug dealing admitted to by these defendants, members of UDH also committed robberies, homicides, and non-fatal shootings. 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.

Delano Johnson and Russell Lumpkins were two of the main UDH drug suppliers. In 1997, Delano Johnson ran a heroin and crack cocaine shop, which was worked by UDH members on the 2700 block of Spelman Road. From at least 2008, Russell Lumpkins worked with Delano Johnson selling crack cocaine and heroin, and served as Delano Johnson’s right hand man for part of the conspiracy, running another drug shop for Delano Johnson located on Winwood Court. On May 16, 2012, a search was executed at a residence associated with Lumpkins. Law enforcement recovered 124.13 grams of heroin, an additional 535 gel caps containing 88.13 grams of heroin, $4,192 in cash and a digital scale with heroin residue.

Beginning in at least 2006, Tony Johnson began selling crack cocaine in the Cherry Hill neighborhood. In 2013, Johnson sold drugs with fellow UDH members in the Giles/Fisk/Slater area. On November 25, 2013, an undercover officer purchased two ziplock bags of crack cocaine from Tony Johnson in the 2700 block of Giles Street. In January 2013, an officer tried to stop a car being driven by Johnson. Johnson did not stop, but crashed into a curb, fled and was caught by police. Johnson threw away a plastic bag containing 29 ziplocks of cocaine while he continued resisting arrest.

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

Delano Johnson faces a minimum of 10 years and a maximum sentence of life in prison. Judge Russell has scheduled sentencing for February 6, 2015, at 10:00 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.

American Defendants Allegedly Paid Over $1.6 Million in Bribes to Russian National to Obtain
Over $33 Million in Non-compete Contracts

Greenbelt, Maryland - A criminal complaint was unsealed late yesterday charging Vadim Mikerin, age 55, a Russian national residing in Chevy Chase, Maryland, with conspiring to commit extortion in connection with a scheme to obtain contracts from a Russian company without having to compete for the contracts. A separate criminal complaint charges Daren Condrey and his wife Carol Condrey, both age 49, of Glenwood, Maryland, and Boris Rubizhevsky, age 63, of Closter, New Jersey, with conspiring to commit wire fraud in connection with the scheme.

The criminal complaints were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; John R. Hartman, Deputy Inspector General for Investigations, Office of Inspector General at the U.S. Department of Energy; and Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office.

“Kickbacks deprive honest competitors of the opportunity to compete for business, and they cheat a company of its right to faithful decisions by its employee,” said U.S. Attorney Rod J. Rosenstein.

In1992, the U.S. and Russia executed an agreement to dispose of Russian highly enriched uranium from disassembled nuclear warheads and for the sale of the material, once down-blended, to U.S. nuclear utility providers. JSC Techsnabexport (TENEX), based in Moscow, Russia, was responsible for the sale and transportation of this material to the United States.

Vadim Mikerin is the general director of TENAM USA, based in Bethesda, Maryland. TENAM is a subsidiary of TENEX. TENEX is a subsidiary of ROSATOM, the Russian State-owned Nuclear Corporation, which is the Russian counterpart organization of the U.S. Department of Energy.

Daren Condrey and Carol Condrey are principals of Transport Logistics International (TLI), based in Fulton, Maryland. Since 1996, TLI has contracted with TENEX to transport uranium from Russia to the U.S. Boris Rubizhevsky is the president of NEXGEN Security (NEXGEN), a New Jersey corporation. From 2011 through 2012, Rubizhevsky served as a consultant to TENAM and to Mikerin.

Beginning in 2006, Mikerin allegedly conspired with the Condreys, Rubizhevsky and others to defraud TENEX by causing contracts for the shipment of uranium from Russia to the U.S. to be awarded to the U.S. defendants and their companies without having to compete for the contracts.

According to the complaints and supporting affidavits, the Condreys and TLI bribed Mikerin to receive lucrative, non-compete contracts from TENEX. TLI has also pursued other business ventures with TENEX for transportation under separate contracts. From at least 1996 to about 2013, the Condreys and others allegedly caused TLI to pay at least $1,692,995 in kickback payments to Mikerin in exchange for receiving over $33 million in noncompetitive contracts from TENEX.

According to the affidavits, in November 2011, Mikerin required a middle man to accept kickback payments. Mikerin used Rubizhevsky and his company, NEXGEN Security, to serve as this middleman.

The affidavits allege that the kickback payments to Mikerin were disguised as consulting fees or other fictitious expenses. The defendants also entered into sham contracts with offshore shell entities knowing that the payments to these entities were in fact being made to Mikerin.

Mikerin faces a maximum sentence of 20 years in prison for the extortion conspiracy. The Condreys and Rubizhevsky face a maximum sentence of 20 years in prison for the wire fraud conspiracy. Daren Condrey had his initial appearance Wednesday, and Carol Condrey and Mikerin had their initial appearances yesterday, in U.S. District Court in Greenbelt. The Condreys were released pending trial. Mikerin was detained pending his detention hearing today at 4:30 p.m. Boris Rubizhevsky had his initial appearance in federal court in New Jersey, and will have his initial appearance in Greenbelt today at 11:15 a.m.

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

United States Attorney Rod J. Rosenstein praised the DOE-OIG and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Adam K. Ake and James A. Crowell IV, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Alexander Michael Bailey, age 25, of Oxon Hill, Maryland, late on October 30, 2014, to 15 years in prison, followed by five years of supervised release, for the armed robbery of an Oxon Hill cell phone store.

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

Bailey admitted that on July 3, 2013, he entered a cell phone store located in Oxon Hill, brandished a firearm, and ordered everyone on to the floor. Bailey grabbed the store manager and another employee, poked the employee with the firearm, and demanded that the employee open the register and give Bailey the money. The victims feared for their lives and gave Bailey $302 in cash. Bailey fled the store. A short time later, officers from the Prince George’s County Police Department began a lookout for Bailey. One officer saw Bailey nearby and ordered him to stop. Bailey began to run, but after a short chase he was caught and the $302 was recovered from him. During a subsequent interview by police, Bailey provided a written statement admitting that he carried and brandished a firearm during the armed robbery of the cell phone store.

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

In Unrelated Case, Baltimore Man Admits Stealing $127,000 in SSA Benefits Over 16 Years

Greenbelt, Maryland –Yvonne Isadora Whiteman, age 69, of Laurel, Maryland pleaded guilty today to theft of government property.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division.

According to her plea agreement, Whiteman’s mother received monthly social security retirement benefits based on her earnings record. Whiteman’s mother moved to Trinidad, West Indies in the summer of 1997 to live with Whiteman’s sister, and died there on October 8, 1997. Her death was not reported to SSA.

At the time of her mother’s death, the benefits were paid by direct deposit to a joint bank account held by Whiteman and her mother. Whiteman sent the benefits to her sister in Trinidad during the short period her mother was alive and living there.

In 2013, SSA determined that because Whiteman’s mother had not used Medicare services, the mother was likely deceased. On December 13, 2013, Whiteman met with a SSA specialist and provided a forged death certificate purporting to show that her mother died on October 8, 2013. When the SSA specialist later advised Whiteman that she would use the consular process to obtain the true death certificate, Whiteman admitted that she had lied about her mother’s date of death.

SSA paid a total of $299,951 from October 8, 1997 until October 2013 when the benefits were terminated. At the time the benefits were terminated, the mother’s monthly benefit amount was $1,847. Whiteman used all but approximately $4,000 of her mother’s benefits to pay for her own personal expenses.

Whiteman faces a maximum sentence of 10 years in prison. Whiteman has agreed to pay restitution of $299,951. U.S. District Judge Deborah K. Chasanow scheduled sentencing for February 2, 2015, at 11:30 a.m.

In an unrelated case, Allen Thomas Wilson, age 72, of Baltimore, pleaded guilty today in U.S. District Court in Baltimore, to theft of government property in connection with a similar scheme in which he spent retirement benefits paid by SSA for the benefit of his mother for his personal use. From the time of his mother’s death on September 19, 1997, until January 2014, when benefits were terminated, SSA paid a total of $127,700. Wilson has agreed to pay restitution in this amount. U.S. District Judge Ellen L. Hollander has scheduled sentencing for December 19, 2014, at 9:15 a.m.

United States Attorney Rod J. Rosenstein praised the Social Security Administration - OIG for its work in the investigations, and thanked Special Assistant U.S. Attorney Paul K. Nitze, assigned from the Social Security Administration, who is prosecuting these cases.

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

 

Baltimore, Maryland - A federal grand jury indicted Barry Stephen Robinson, age 65, of Accokeek, Maryland, in connection with an alleged bribery scheme earlier this year while he was Chief of the Division of Transit and Marine Services of the Baltimore City Department of Transportation. Robinson is charged with two counts of bribery concerning a program that received federal funds, and one count of money laundering. The indictment was returned on October 29, 2014.

“Barry Stephen Robinson allegedly took a $20,000 bribe to cancel a $60,000 debt owed to Baltimore City, and a $70,000 bribe to allow the theft of city property worth $250,000,” said U.S. Attorney Rod J. Rosenstein. “This sort of corruption can occur when dishonest people are trusted to handle valuable government property without oversight.”

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

Robinson supervised Baltimore City’s “Circulator” and “Water Taxi” programs, according to the indictment. He had authority to approve contracts with advertisers and vendors; purchase and pay for goods and services; and receive and process payments owed to the city.

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

Seeking to disguise the source of the bribery proceeds, Robinson allegedly deposited some of the money into a bank account in the name of another person on January 24, 2014.

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

Robinson faces a maximum sentence of 20 years in prison for money laundering and 10 years in prison on each of two bribery counts. An initial appearance has not yet 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.

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

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Kathleen Elizabeth Myers, age 21, of Thurmont, Maryland today to 7 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 Myers to pay more than $7,000 in restitution, to cover the medical costs and funeral expenses of the person who died after Myers and a co-defendant supplied him 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 Myers’ plea agreement, between July 2012 and June 2014, Myers conspired with others, including Jacob Alexander Powell, to distribute heroin in western Maryland. Myers and Powel regularly obtained heroin from sources in Baltimore 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.

Jacob Powell, age 21, of Thurmont, previously pleaded guilty to the same charge and faces a maximum penalty of 20 years in prison. Judge Quarles has scheduled his sentencing for November 4, 2014, at 1:00 p.m.

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.

Used Stolen Identity to Gain Employment at a Pediatrician’s Office; Treated 200 Patients, Including Infants, and Wrote Over 400 Prescriptions

 

Baltimore, Maryland - Shawna Michelle Gunter, age 37, of Annapolis, Maryland, pleaded guilty today to wire fraud and aggravated identity theft in connection with a scheme to pose as a physician’s assistant to obtain employment, during which she diagnosed and treated over 200 infants and children, and wrote over 400 prescriptions, all without a medical license.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police.

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

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

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

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

Gunter began seeing pediatric patients without direct supervision on August 18, 2013. From August 19 to 29, Gunter diagnosed and treated over 200 infants and children, including for sick visits, ADHD follow-ups, newborn visits and routine physicals. During this time, Gunter issued over 400 prescriptions for controlled substances.

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

Gunter faces a maximum sentence of 20 years in prison for wire fraud; and two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Richard D. Bennett scheduled sentencing for January 30, 2015, at 10:00 a.m.

United States Attorney Rod J. Rosenstein praised the Department of Health and Human Services Office of Inspector General, Maryland State Police, HSI and Maryland Natural Resources Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who is prosecuting the case.

Greenbelt, Maryland - Janice McCumbie, age 45, of Marydel, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to steal over $1.2 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 her plea agreement, McCumbie worked for a global consulting business that served clients in various industries and had offices in Maryland and elsewhere. Clients paid large retainers to secure consulting services. The consulting company would issue refund checks to the clients in certain circumstances, including when a client’s retainer exceeded the amount of work that the consulting company actually performed or when the client made duplicate payments to the consulting company. McCumbie’s duties included coordinating client refunds.

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

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

McCumbie has agreed to forfeit and pay restitution of $1,249,267.53, the loss resulting from her conduct.

McCumbie faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel scheduled her sentencing for January 27, 2015, at 9:30 a.m.

Leonard Smedley II, age 35, of Capitol Heights, Maryland; and Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania, previously pleaded guilty to the conspiracy and are scheduled to be sentenced on January 15 and 20, 2015, respectively, both at 9:00 a.m.

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.

Provided Information on Bank Personnel and Procedures to Her Accomplice

 

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Janaya Brittne Person-Robinson, age 20, of Baltimore, Maryland, today to 84 months in prison, followed by five years of supervised release, for an armed bank robbery in which her accomplice forced a teller at gunpoint to accompany him and open the bank vault.

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

According to Person-Robinson’s plea agreement, on October 1, 2013, Janaya Brittne Person-Robinson and her accomplice Darrius Roszario Washington, parked his car in a lot near the M&T Bank in Dundalk. Person-Robinson had previously been a teller-trainee at the bank and was familiar with the bank layout, procedures and the tellers who worked at the bank. Shortly before 7:30 a.m., Washington and Person-Robinson approached a teller in the parking lot when she got out of her car. Washington pointed a .32 caliber gun at the teller’s head and ordered her to unlock the door of the bank. The teller initially told Washington that she could not open the door but Washington told her he knew she was lying and threatened to “blow her head off,” if she didn’t unlock the door. The teller opened the door and after Washington and Person-Robinson entered the bank, the teller fled and called police.

Once inside the bank, Washington, using information provided by Person-Robinson, approached a second teller, calling her by name. Washington knew that the teller had access to the bank’s vault. Using the gun, Washington forced the teller to accompany him to the vault and ordered her to open the door, threatening that if she did not, she would never see her child, whom Washington called by name, again using information provided by Person-Robinson. The teller opened the vault door and Washington forced her to the floor at gunpoint. Washington removed the money from the vault, while Person-Robinson emptied the cash from the teller drawers. Washington and Person-Robinson then left the bank, carrying a canvas bag filled with $133,600, got into their car and attempted to flee. They were arrested a short time later. Officers recovered the cash stolen from the bank, the gun used during the robbery, and the hats and latex gloves worn by Washington and Person-Robinson during the robbery.

Darrius Roszario D. Washington, age 20, of Baltimore, was previously sentenced to 135 months in prison, for his role in the robbery.

Washington and Person-Robinson remain in federal custody.

United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and Judson T. Mihok, who prosecuted the case.

Baltimore, Maryland - A federal grand jury returned a superseding indictment today against Rayvon O. Archibald, a/k/a “P Money,” “Keyvon M. Malone,” “Keyvon Smith,” and “Snoopy,” age 24, of Boston, Massachusetts, and Jonathan M. Went, a/k/a “Jon Maxx,” and “Max Out,” age 30, of Massachusetts and Gwynn Oak, Maryland. The original indictment charged Archibald and Went with sex trafficking of a child. The superseding indictment adds charges for conspiracy, transportation of a minor with intent to engage in prostitution, and kidnapping.

The superseding 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; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.

The four count superseding indictment alleges that Archibald and Went were pimps, engaged in the business of recruiting, transporting, providing, and maintaining by any means females to engage in commercial sex acts. Archibald and Went used the internet to purchase and post advertisements for commercial sex in Maryland, New York, and elsewhere.

According to the superseding indictment, on March 5, 2014, Archibald encountered Girl 1, a female under the age of 14, in New York City and provided her with alcohol and drugs. On March 6, 2014, Archibald transported Girl 1, against her will, traveling by bus from New York to White Marsh, Maryland, then by taxi to Went’s apartment in Gwynn Oak. That same day, Archibald and Went allegedly posted an advertisement on a commercial sex website soliciting customers for Girl 1 which listed the number for a phone controlled by Archibald and Went. They also instructed Girl 1 on pricing for commercial sex acts and provided her with a document that included prices.

The superseding indictment alleges that on March 6 and March 7, 2014, Archibald and Went communicated with potential commercial sex customers and made appointments for Girl 1 by telephone and text messages; took money from customers in exchange for making Girl 1 available to engage in sex acts; and provided condoms to Girl 1 and the customers to facilitate sex acts involving Girl 1. Further, the indictment alleges that Archibald slapped Girl 1 across the face after she failed to obtain money for Archibald and Went from a commercial sex customer, and that Archibald took a mobile device away from Girl 1. She had been using the device in an attempt to alert her mother and law enforcement officers about her situation and location.

Archibald and Went face up to life in prison for conspiracy to commit sex trafficking of a child; a minimum of 15 years and up to life in prison for sex trafficking of a child; a minimum of 10 years in prison and up to life in prison for transportation of a minor with intent to engage in prostitution; and a minimum of 25 years and up to life in prison for kidnapping. An initial appearance on the superseding indictment has not yet been scheduled. Archibald and Went were previously ordered to be 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.

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 FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Mark W. Crooks, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge George J. Hazel sentenced David Wayne Nelson, age 32, of Salisbury, Maryland, today to 140 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; 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; and Wicomico County State’s Attorney Matthew Maciarello.

According to their plea agreements, from July 2013, through August 27, 2013, Nelson conspired with Royce Levi Brown, and others to distribute cocaine. During the investigation, DEA and the Wicomico County Narcotics Task Force initiated wire taps on cellular telephones belonging to Brown and executed search warrants at multiple locations, including residences associated with Nelson and Brown. Law enforcement overheard and observed Nelson engage in drug transactions with Brown.

For example, on July 30, 2013, law enforcement overheard conversations in which Nelson agreed to buy one kilogram of cocaine from Brown. Brown delivered the cocaine to Nelson at his residence. On August 13, 2013, law enforcement overheard Nelson arrange to purchase one half kilogram of cocaine from Brown for $21,000.

Royce Levi Brown, age 31, of Mardela Springs, Maryland, previously pleaded guilty to his role in the conspiracy and is awaiting sentencing.

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

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Eugene Lewandowski, age 27, of Upper Marlboro, Maryland, today to 30 years in prison followed by lifetime supervised release for sexual exploitation of a minor to produce child pornography and for transportation of child pornography. Judge Chasanow ordered that upon his release from prison, Lewandowski must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to information presented at Lewandowski’s sentencing hearing, Lewandowski took six videos of himself engaged in sexual acts with a sleeping five year old female, as well as additional videos of the child, including sexually explicit videos.

In addition, analysis of Lewandowski’s computers and other digital media revealed at least 14,000 images and videos documenting the sexual abuse of children. Lewandowski admitted using a file sharing program on his computer to distribute some of these images and videos.

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

United States Attorney Rod J. Rosenstein commended the HSI Baltimore and Maryland State Police Internet Crimes Against Children Task Force for their work in the investigation, and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Kadiatu Sahid Kamara, age 50, of Gaithersburg, Maryland today to three years in prison followed by threeyears of supervised release for mail fraud and aggravated identity theft, arising from a two year scheme in which she wrote herself approximately 118 checks from her employers’ bank account. Judge Hazel also entered orders that Kamara pay $431,542 in restitution and forfeiture.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to her plea agreement, Kamara was a nanny caring for the children of a married couple living in Montgomery County. Kamara had access to checks linked to the victims’ money market account, though she had never been authorized to write checks from this account. From May 2011 to May 2013, Kamara wrote herself approximately 118 checks from the victims’ account, totaling approximately $431,542. She forged the signature of one of the victims on each check, and deposited the checks into her own bank account. Kamara used some of the money to buy a house in Africa, to send money transfers, and to play games at a casino in Charles Town, West Virginia.

United States Attorney Rod J. Rosenstein praised the U.S. Secret Service and Montgomery County Police Department for their work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.

Baltimore, Maryland - Wesley Burnett, age 54, of Hermosa Beach, California, pleaded guilty on October 24, 2014, to conspiracy to commit wire fraud in connection with a scheme to fraudulently obtain more than $2.8 million in federal government contracts through the use of the Small Business Administration’s 8(a) program, designed to assist disadvantaged businesses.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations; and Mary L. Kendall, Deputy Inspector General, Department of the Interior.

According to his plea agreement, Wesley Burnett owned and operated Confederate Group LLC and Total Barrier Works (TBW). These companies were in the business of maintaining and installing anti-terrorist systems and vehicle control equipment such as security barriers, bollards, gates, uninterrupted power systems (UPS) and other perimeter security anti-terrorist equipment.

Burnett admitted that at various times from 2007 until 2014, he falsely represented to the U.S. government that Confederate Group LLC was a “Hispanic-American owned business,” a “minority owned business,” a “service disabled veteran owned business,” and a “small disadvantaged business,” in order to win federal contracts at military bases and federal buildings that were reserved for firms in those categories. In fact, Burnett is not a member of any racial or ethnic minority, is not a disabled veteran and is not a member of a socially disadvantaged group, as those terms are defined by the Small Business Administration, and therefore his company was not qualified to receive contracts set aside for those categories. As a result of Burnett fraudulently claiming minority and/or disabled veteran status, from 2008 through 2014, Confederate Group LLC was awarded approximately $534,315, in contracts reserved for minorities and service disabled veterans.

In order to bid on the set-aside contracts, Burnett recruited individual who were members of racial or ethnic minorities, service disabled veterans, or members of socially disadvantaged groups, and offered them a percentage of the total value of any contract he won using their companies’ name. As part of the scheme, Burnett, using the name of the minority owned company bid on federal government contracts set aside for companies owned by minorities, service disabled veterans, or members of socially disadvantaged groups. Burnett and TBW did all of the work covered by the contract, then paid the owner of the company in whose name the contract had been awarded a fixed percentage of the gross value of the contract, usually between four and five percent. To further this “pass thru” arrangement, Burnett falsely represented that TBW was a trade name for the minority owned company in whose name the contract had been awarded, when in fact TBW was a separate and distinct company.

For example, Yogesh K. Patel was the owner of United Native Technologies, Inc. (“UNTI”), which, according to its articles of incorporation, was formed to “perform information technology services to federal, state and local government, as well as commercial.” In 2005, Patel applied for and was granted certification as a minority or socially disadvantaged owned business under the SBA’s 8(a) program. In addition to a broad scope of assistance from SBA, participants in the 8(a) program can receive sole source government contracts that are reserved for minority or socially disadvantaged owned companies.

Burnett met Patel at a business conference and the two agreed to use UNTI to bid on 8(a) set aside contracts at federal government installations, including military bases and federal buildings, with Burnett, TBW and individuals at Burnett’s direction actually performing the work necessary to fulfill these contracts. Burnett also agreed to pay Patel approximately 4.5% of the total value of any contract awarded to UNTI. As a result, between January 2010 and November 2013, UNTI was fraudulently awarded more than $1.8 million in 8(a) set-aside U.S. government contracts, while the work on the contracts was actually performed by Burnett’s company and employees.

Burnett admitted that he had similar arrangements with the owner of an 8(a) firm that did electrical and other work for government and commercial clients, and with the owner of a service-disabled veteran owned small business. Burnett also fraudulently obtained the personal identifying information of a service-disabled veteran, which he then used when bidding on federal government contracts.

Burnett faces a maximum penalty of 20 years in prison for the wire fraud conspiracy. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 2, 2015, at 10:00 a.m.

Yogesh K. Patel, age 47, of Gaithersburg, Maryland, previously pleaded guilty to his role in the scheme and is scheduled to be sentenced on January 12, 2015, at 12:00 p.m.

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

United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General, U.S. Air Force Office of Special Investigations and the Department of the Interior, Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Sean R. Delaney, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Lamonte X. Smith, age 30, of Accokeek, Maryland, today to 92 months in prison followed by six years of supervised release for conspiring to commit wire fraud and aggravated identity theft arising from a scheme in which, while he was incarcerated, he obtained access device account information of others from a bank to purchase cars, services, clothing and other items. Judge Grimm also entered an order that Smith forfeit and pay restitution of $115,207.09

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

According to his plea agreement, Smith was incarcerated at the Maryland Reception Diagnostic and Classification Center (MDCC) in Baltimore from at least April to August 2011. Smith instructed a co-conspirator to buy “SIM” cards, which are used in cell phones to assign the device a telephone number, and deliver the SIM cards to Smith in prison. Smith used the SIM cards to activate a phone and call Bank of America, clothing vendors and car dealerships. Smith used one of the SIM cards to call Bank of America’s customer service department on several occasions, posed as an authorized user of business access device account holders, and fraudulently obtained access to bank accounts of individuals and small business owners without their knowledge.

Upon accessing the accounts, Smith caused credit limits to be raised, added additional authorized users and caused additional access devices to be mailed to others. From prison, Smith used the fraudulently obtained account information to buy cars, clothes and car transportation from prison. His conspirators directed the shipment of cars, clothing and other items totaling at least $115,207.09 to Smith’s home, or to a storage unit in Waldorf, Maryland.

On August 17, 2011, federal law enforcement agents searched two homes linked to Smith’s illegal conduct. After learning of the searches, Smith called an individual and offered to pay the individual to remove clothes, car accessories and other items from the storage unit in Waldorf. Law enforcement arrived at the storage unit before it could be emptied. The individual made consensually monitored phone calls with Smith from the storage unit in which Smith confirmed his plan to pay the individual to remove the items.

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 for its work in the investigation and thanked Assistant U.S. Attorneys Thomas P. Windom and Arun G. Rao, who prosecuted the case.

Baltimore, Maryland – A federal grand jury has indicted Daniel P. Welch, age 36, of Crumpton and Chestertown, Maryland, and Jonathan M. Sutton, age 36, of Chestertown, on charges of conspiring to unlawfully obtain firearms for a prohibited person. The indictment also charges Welch with being a felon in possession of firearms. The indictment was returned on October 22, 2014.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Queen Anne’s County Sheriff R. Gery Hofmann III; Chief George A. Baker of the Chestertown Police Department; and Queen Anne’s County State’s Attorney Lance G. Richardson.

The four count indictment alleges that Welch is a previously convicted felon and therefore is prohibited from possessing firearms. According to the indictment, between January 29, 2011 and January 31, 2014, Sutton obtained six firearms for Welch through private sellers and through “straw purchases” by Sutton from a federally licensed firearms dealer. A “straw purchase” occurs when an individual, who is ineligible to lawfully purchase a firearm, such as a previously convicted felon, solicits another to conduct the transaction. As part of the purchase, the middleman-buyer must complete the ATF Form 4473, which notifies the buyer that such purchases are unlawful. On the first page of the form, the buyer is asked: “Are you the actual transferee/buyer of the firearm . . .?” The question is followed by a warning in bold print that states: “Warning: You are not the actual buyer if you are acquiring the firearm(s) on behalf of another person.” Finally, the buyer’s certification explicitly states that falsely answering “yes” to the actual buyer question is a crime punishable as a felony.

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

The defendants face a maximum sentence of five years in prison for the conspiracy and Welch faces a maximum penalty of 10 years in prison for each of three counts of being a felon in possession for a firearm. An initial appearance has been scheduled for Sutton on November 7, 2014 in U.S. District Court in Baltimore. No court appearance has been scheduled for Welch, who is currently in state custody on unrelated 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, Queen Anne’s County Sheriff’s Office, Chestertown Police Department and the Queen Anne’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Zachary A. Myers, who is prosecuting the case.

Baltimore, Maryland – A federal grand jury has indicted Benjamin Bland, age 39, of Glen Allen, Virginia; Michael Westbrook age 36; and Anthony Simpson, age 43, both of Baltimore, on charges arising from a scheme to allow individuals with poor credit histories and criminal records to obtain money and property using misappropriated social security numbers and fraudulently established credit histories. The second superseding indictment, which was returned on October 14, 2014 and unsealed late yesterday, adds Bland as a defendant and seeks the forfeiture of at least $2.5 million and luxury vehicles.

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

Bland owned New Credit History, a company headquartered in Richmond, Virginia that hosts a website and purports to provide individuals with new credit through the issuance of a “secondary credit number.” Westbrook owned The Westbrook Project, a home renovation company incorporated in Maryland.

According to the 17 count indictment, from February 2012 to October 2014, the defendants obtained social security numbers previously issued to other persons and sold the misappropriated social security numbers by email and cell phone text messaging to individuals. The defendants provided these individuals with counterfeit social security cards and driver’s licenses with materially false information that would link the user to the misappropriated social security numbers. The defendants instructed the individuals to submit false credit applications to commercial lenders and retailers to generate improved credit scores, and to prepare and submit false loan applications to lenders to receive money and property.

The indictment charges Westbrook with acquiring fraudulent credit accounts for his clients and himself to enhance their fraudulent credit histories.

The defendants face a maximum sentence of 30 years in prison for conspiring to commit wire fraud and for each of four counts of wire fraud; five years in prison on each of five counts for social security fraud; and a mandatory minimum of two years in prison consecutive to any other sentence on each of seven counts for aggravated identity theft. An initial appearance and arraignment for Bland was held on October 21, 2104, in U.S. District Court in Baltimore. Bland was released under the supervision of U.S. Pretrial Services. No court appearance has been scheduled for Westbrook and Simpson, who were arrested previously and remain released under the supervision of U.S. Pretrial Services.

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

Co-defendant Donneltric Johnson, age 36, of Baltimore, previously pleaded guilty to conspiracy to commit wire fraud for his role in the scheme and is scheduled to be sentenced on December 5, 2014, at 9:30 a.m.

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

United States Attorney Rod J. Rosenstein commended the HSI Baltimore for its work in the investigation. Mr. Rosenstein praised the HSI Richmond, Virginia; Baltimore and Anne Arundel Counties Police Departments; Henrico County, Virginia Police Department; the Eastern District of Virginia United States Attorney’s Office; U.S. Secret Service Richmond Field Office; and the Internal Revenue Service – Criminal Investigation, Richmond, for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.

Greenbelt, Maryland – Benjamin K. Bray, age 30, of Davidsonville, Maryland, pleaded guilty on October 21, 2014, to conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to being a felon in possession of an explosive device.

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

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

In November 2012, Jenkins refused to sell oxycodone to one of his drug customers, resulting in an argument. After the argument, Jenkins built two pipe bombs, which he intended to use to blow up the drug customer’s vehicle. Bray supplied the black powder for the pipe bombs. Another drug customer owed Jenkins $50 for oxycodone that Jenkins had supplied to the customer in June 2012. On December 18, 2012, Bray and Jenkins were out of heroin and needed money to purchase heroin. As a result, Jenkins contacted the customer and attempted unsuccessfully to collect the debt. After the call ended, Bray and Jenkins carried one of the pipe bombs to the home of the customer who owed Jenkins money. Bray placed the pipe bomb on the front porch and lit the fuse. The bomb exploded, damaging the front door. The drug customer was sleeping in the bedroom adjacent to the door at the time of the explosion.

Bray and the government have agreed that if the Court accepts the plea, Bray will be sentenced to 96 months in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for January 12, 2015, at 9:00 a.m.

John Frank Jenkins, age 30, of College Park, Maryland, was previously sentenced to 121 months in prison, followed by 14 months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to 10 years in prison for making an explosive device and being a felon in possession of an explosive device. The sentences are to be served concurrently. Judge Grimm also ordered Jenkins to pay restitution of $475.

United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Leonard Benjamin, age 30, of Bowie, Maryland today to 19 years in prison followed by five years of supervised release for conspiring to distribute a kilogram or more of heroin. Judge Bennett also entered an order that Benjamin forfeit $39,387 seized on February 7, 2014.

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; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.

According to his plea agreement, from no later than 2013, Benjamin was an organizer and leader of a conspiracy to distribute heroin in the Baltimore area. Benjamin had others operate stash houses for him in the Baltimore area. Benjamin planned trips to New York City to buy heroin. Benjamin gave the heroin to couriers in New York who drove the heroin back to Baltimore.

For example, on October 20, 2013, Benjamin arranged with a courier to drive to New York, where Benjamin planned to acquire heroin. Law enforcement agents saw Benjamin provide heroin to the courier in New York. The courier then left New York and returned to Maryland.

The Maryland State Police, in conjunction with the DEA investigation, stopped the courier in Cecil County, Maryland on the return trip. MSP troopers searched the courier’s vehicle and seized more than 400 grams of heroin.

Thereafter, Benjamin continued to engage in drug-trafficking activities. Investigators overheard Benjamin regularly make drug deals by phone; arrange new supplies of heroin; and instruct others to receive, store or distribute heroin to customers. Benjamin made several calls to a co-conspirator who operated a stash house location at Benjamin’s direction.

On February 7, 2014, investigators executed a search warrant at one of the stash houses and recovered more than 600 grams of heroin. During a search of other locations, investigators seized cash, including $39,387 from Benjamin’s home.

United States Attorney Rod J. Rosenstein praised the DEA, Baltimore City State’s Attorney’s Office Major Investigation Unit, Baltimore Police Department, and Maryland State Police for their work in the investigation, and recognized the Cecil County State’s Attorney’s Office for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Joshua Payne, age 21, of Mount Airy, Maryland, today to 164 months in prison followed by three years of supervised release on four counts of robbery and one count of using a firearm during a 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; Carroll County Sherriff Ken Tregoning; Frederick County Sheriff Charles A. AChuck@ Jenkins; Chief Gary Gardner of the Howard County Police Department; Carroll County State’s Attorney Jerry Barnes; Frederick County State’s Attorney J. Charles Smith; and Howard County State’s Attorney Dario Broccolino.

According to his plea agreement, from November 27 to December 1, 2013, Payne pointed a handgun - which he stole from his brother - at the cashiers of the following gas stations in Maryland: Shell gas station, 649 Lakeview Drive, Mount Airy; High’s gas station, 6700 Sykesville Road, Eldersburg; and BP gas station, 15882 Frederick Road, Lisbon. He stole hundreds of dollars from the cash registers.

On December 6, Payne returned to the Shell gas station on Lakeview Drive in Mount Airy, and threatened the cashier with a long kitchen knife, taking approximately $690 from the register.

Payne also admits that on November 29, 2013, he pointed a gun at a driver of a car and stole the car, along with the owner’s two cell phones.

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

Baltimore, Maryland – Reginald Jones, age 26, of Bronx, New York, pleaded guilty today to conspiring to distribute and possess with intent to distribute heroin. Co-defendant Jeffrey Michael Anderson, age 35, of Upper Marlboro, Maryland, pleaded guilty yesterday to conspiring to distribute and possess with intent to distribute one kilogram or more of heroin. On October 20, 2014, co-defendants William Ulysses Robinson, age 38, of Grasonville, Maryland and Shawn Christopher Malley, age 25, of Crofton, Maryland, pleaded guilty to the conspiracy.

The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); 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 their plea agreements, beginning as early as September 2013, Anderson and Jones worked with Rahdel Sharbaan to obtain bulk quantities of heroin from sources in New York and transport that heroin to Maryland for further distribution. Anderson would either travel to New York himself, or have Sharbaan and Jones bring the heroin and cutting agent to him in Maryland via commercial bus. With Malley’s assistance, Anderson used stash locations to store and cut the heroin, including a storage unit in Gambrills, Maryland, and Malley’s home. Once diluted, Anderson sold the heroin in bulk to several Maryland-based dealers who in turn sold to other dealers and end users. Robinson obtained drugs from Anderson which he distributed in street-level quantities. Jones used the drug proceeds from Anderson to pay the source in New York.

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

Anderson admitted that he agreed to distribute at least one kilogram of heroin.

Jones faces a maximum sentence of 40 years in prison for the conspiracy.

Anderson and the government have agreed that if the Court accepts his plea agreement, Anderson will be sentenced to 192 months in prison followed by five years of supervised release.

Malley and the government have agreed that if the Court accepts his plea agreement, Malley will be sentenced to either 96 or 60 months in prison, depending on whether he is found to be a career offender, followed by four years of supervised release.

Robinson and the government have agreed that if the Court accepts his plea agreement, Robinson will be sentenced to 72 months in prison followed by four years of supervised release.

U.S. District Judge Richard D. Bennett has scheduled sentencing for Robinson and Malley on January 6 and 7, 2015; Anderson on January 30, 2015; and Jones on January 9, 2015.

Rahdel Sharbaan, age 31, of Bronx, New York, and Gary Barham, age 52, of Easton, Maryland, previously pleaded guilty to the conspiracy. Barham is scheduled to be sentenced on November 17, 2014 at 3:00 p.m. and Sharbaan on January 8, 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 the case.

Stole Money Intended for Research Conducted at the
National Institute for Drug Abuse Facilities in Baltimore

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jason Dietz, age 34, of Timonium, Maryland, today to 18 months in prison, followed by three years of supervised release, for theft of funds from a federal program, in connection with the theft of $683,705 in grant money from the National Institute for Drug Abuse for research conducted at its facilities in Baltimore. Chief Judge Blake also ordered Dietz to pay restitution of $683,705.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.

The National Institute for Drug Abuse (“NIDA”) is part of the National Institutes of Health and is located at Johns Hopkins Bayview Center in Baltimore. NIDA also operates the Archway Treatment Clinic, also in Baltimore. NIDA and its grantees conduct research on the science of addiction and treatment and publish that research in scientific and medical peer-reviewed journals. For each of the years 2006-2013, NIDA conducted from 26 – 31 studies at Bayview and the Archway Clinic.

According to Dietz’s plea agreement, from 2006 until June 2013, Dietz worked for Matthews Media Group (MMG), which was contracted by NIDA to recruit, screen, and compensate participants in NIDA’s clinical research studies conducted at Bayview and Archway. Dietz’ job was to compensate study participants, typically with cash or gift cards, obtain receipts from study participants, and keep a spreadsheet of participants’ compensation with supporting documentation—chiefly signed receipts from the study participants. Dietz was a signatory on an MMG bank account from which he withdrew cash to pay study participants; in addition, he provided cash to Archway Clinic for the clinic employees to pay study participants. MMG invoiced NIDA each month and included in its invoice amounts taken directly from the spreadsheet prepared by Dietz.

Dietz admitted that, beginning in 2007, he embezzled funds from MMG in several ways. For example, Dietz paid study participants and obtained a signed receipt from them, then logged a higher amount on the spreadsheet and pocketed the difference between the two amounts. In addition, Dietz created fictitious receipt numbers and amounts which he placed on his spreadsheet, then pocketed all the cash from these fictitious payments. Finally, Dietz listed on his spreadsheet higher amounts than were actually paid to Archway Clinic employees for them to pay Archway participants and pocketed the difference.

In 2013, MMG was responding to questions from NIDA employees when discrepancies were discovered between the signed receipts and Dietz’ spreadsheet. MMG then conducted an audit that looked at every entry on every spreadsheet which was used to bill NIDA and the back-up documentation. For the time period October 2006 through May 2013, the MMG auditor found that Dietz overstated the expenses on the spreadsheet compared to the actual receipts by $571,205, and that he deposited $586,083 into his personal bank account during that same time period. In addition, the MMG auditors discovered that Dietz had cashed $112,500 in checks from the MMG bank account on which Dietz was a signatory and that the funds were unaccounted for. Dietz admitted that in addition to depositing embezzled funds into his personal bank account, he also embezzled cash that he spent.

United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.

“The Sentence Fits the Crime”

Baltimore, Maryland - U.S. District Judge J. Frederick Motz today sentenced Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Selbyville, Delaware to 15 years in prison followed, by three years of supervised release, on charges of wire fraud conspiracy, wire fraud and tax evasion. Judge Motz also entered an order that Belzner pay $19.805 million in restitution.

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

“This lengthy sentence fits the crime," said U.S. Attorney Rod J. Rosenstein. "This was a longstanding and complex fraud scheme perpetrated by experienced con artists.”

According to Belzner’s plea agreement and court documents, from the fall of 2009 through August 2011, Belzner, a home builder, worked for a real estate development business known as the McCloskey Group, which was owned by another home builder named Brian McCloskey. During that time, Belzner conspired with McCloskey; Kevin Sniffen, a Maryland title company attorney; Mervyn Phelan, who held the title of “Senior Underwriter” with a California loan brokerage company named IAG; and Gregory Grantham, a California attorney who was the legal counsel of IAG, to defraud investors through a fraudulent investment scheme.

Specifically, Belzner and the conspirators advised wealthy individuals and investment advisers that in order for the McCloskey Group to obtain large loans for various real estate projects through IAG, it was necessary for the McCloskey Group to deposit substantial sums of money in an escrow bank account to establish that it had cash reserves or “liquidity.” Belzner and his co-conspirators, including Phelan and Grantham, further represented to potential lenders that it was acceptable for the McCloskey Group to borrow these funds. They also represented that the funds would be maintained under the control of Sniffen, a licensed attorney and escrow agent; would not be used for any other purpose; and that the money would be returned to the investor, either upon the funding of the loan or after a specified (and usually relatively short) period of time if the loan did not fund by the expected date. In return for this temporary use of the investor's funds, Belzner and McCloskey promised to pay potential lenders substantial fees or interest.

Contrary to these representations, Belzner admitted that he instead directed McCloskey to remove the investors’ funds soon after they had been deposited into the escrow account. Belzner and McCloskey then used the stolen funds to pay for their personal and business expenses, as well as to make partial repayments to earlier lenders, to pay fees to some of the victim investors to keep them from demanding the return of their money, and to pay IAG for its supposed work and expenses in attempting to locate financing sources. Belzner also directed McCloskey and others to use some of the stolen escrow funds to make payments to other individuals from whom Belzner alone had borrowed money in the past.

Belzner and his co-conspirators attempted to conceal the fraud by providing lenders with false bank statements reflecting that the funds received were still being held in the escrow account; falsely representing in emails and in telephone conversations that the funding of the loans sought by the McCloskey Group and the return of the lenders’ funds was imminent; or by making “extension” payments to lenders in return for being allowed to hold their funds for a longer period than originally promised. Belzner also wrote scripts for other conspirators to use in telephone conversations or written or email communications with the escrow account lenders and their counsel in order to lull them into believing that their funds were safe and would be returned to them as promised.

The court determined today that Belzner and his conspirators' fraudulent scheme caused losses in excess of $19.805 million to more than 26 victim investors.

“Many people think financial crime is victimless, but this case proves that is simply not true. What makes this investigation particularly disturbing is that Mr. Belzner manipulated, lied to and stole from his friends and next-door neighbors. He took money from hardworking, trusting people and then heartlessly flaunted his theft in front of his victims,” stated Steve Vogt, FBI Special Agent in Charge of the Baltimore Division. “Mr. Belzner has shown no remorse for his crimes, and deserves to sit in prison reflecting on what his own greed cost his family and friends.”

Belzner also pleaded guilty to evasion of assessed tax payments. In 1995, 1996 and 1998, Belzner stole $1,111,304.78 from his employer at the time, and in 1998, he stole $186,146.71 from another employer, none of which he reported as income on his tax returns for those years. A subsequent IRS audit of those tax years resulted in the assessment of additional taxes, interest and penalties against Belzner of $1,150,935.25 for the 1995 and 1996 tax years and $246,424.50 for the 1998 and 1999 tax years.

To avoid paying those taxes, Belzner admitted that between January 2006 and June 2011, he intentionally concealed income and assets from the IRS and made no payments on his tax debt. For example, Belzner placed his residences, other real estate and automobiles in the names of corporations that he formed. Belzner paid his personal expenses, including his mortgage, ground rent for a vacation home, construction costs on a house that he built, car payments, Ravens season tickets, and private school tuition from bank accounts he opened in the names of the corporations or from payments out of McCloskey Group accounts. Belzner used individuals to act as “straw purchasers” for property that he acquired and to conduct financial and other transactions on his behalf. At Belzner’s direction, McCloskey Group employees and others also cashed more than $175,870 in company checks made payable to them, returning the cash to Belzner or using the cash to pay Belzner's creditors. Belzner also arranged for the McCloskey Group to pay many of his personal living expenses, rather than issuing him salary checks. For example, between January 2009 and June 2011, the McCloskey Group paid more than $1.5 million of Belzner’s personal expenses, including health and life insurance premiums, car, personal loan and mortgage payments, and utility and cable bills. In February 2006 and again in January 2009, Belzner submitted forms to the IRS falsely claiming that he did not have sufficient income to make any payments on the assessed back taxes, penalties and interest. The total amount of assessed tax, interest and penalties owed by Belzner as of August 2013 was $2,619,870.

"Throughout a decade of deceit, Patrick Belzner not only defrauded his investors, but also the American tax system, said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Motivated by pure greed, Belzner created an elaborate scheme to hide his stolen funds and evade paying his tax liability. In cooperation with our federal partners, IRS-CI is committed to holding thieves, such as Belzner, accountable for their misdeeds."

Brian McCloskey, age 44, of Baltimore; Kevin Sniffen, age 53, of Phoenix, Maryland; Mervyn A. Phelan, Sr., age 74, of Newport Beach, California; and Gregory E. Grantham, age 57, of Oceanside, California, have each pleaded guilty to their roles in the conspiracy. In addition, Sean Krondak, of Irvine, California, another IAG employee, has pled guilty to a charge of obstruction of justice arising out of IAG’s destruction of incriminating emails in response to a federal grand jury subpoena. Grantham and Phelan are respectively scheduled to be sentenced on November 14, 2014 and December 5, 2014, while Krondak and McCloskey are both scheduled to be sentenced on December 12, 2014. Sniffen is scheduled to be sentenced on December 19, 2014.

Today’s announcement is part of efforts undertaken 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 for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Jefferson M. Gray and Kathleen O. Gavin, who prosecuted the case.

Robbed Businesses in Maryland, Virginia, West Virginia and Pennsylvania

Baltimore, Maryland – Carl Paschall, Sr., age 54, of Halethorpe, pleaded guilty today to conspiring to commit bank burglary and arson of property used in interstate commerce.

The guilty plea 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, Sr. and the government have agreed that if the Court accepts his plea, Paschall, Sr. will be sentenced to 66 months in prison. As part of his plea agreement, Paschall, Sr. will be required to pay restitution in the full amount of the victim’s losses and to forfeit $200,000. U.S. District Judge J. Frederick Motz has scheduled Paschall’s sentencing for December 1, 2015, at 10:30 a.m.

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 Ellis and Michael Johnson, who was sentenced to 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, Department of Health and Human Services - Office of Inspector General; Coast Guard Investigative Service and Baltimore Police Department for their work in the investigation. Mr. Rosenstein also praised the many local and state agencies in Virginia, West Virginia and Pennsylvania for their assistance in the investigation.

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

Sought to Fabricate an Infrared Detector for Night Vision, Missile Detection and other Military Applications

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Zhenchun Huang, a/k/a Ted Huang, age 51, a Chinese national and naturalized U.S. citizen, formerly residing in Clarksville, Maryland, today to 15 months in prison, followed by three years of supervised release, for false personation of a federal employee and obstruction of justice, in connection with a scheme to fraudulently obtain technology products from U.S. companies for export to China.

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

According to his plea agreement, Huang worked as a contract scientist at the National Aeronautics and Space Administration’s (NASA) Goddard Space Flight Center in Greenbelt from February 1995 to June 2001. Thereafter, he consulted on a limited basis until October 2003 to provide as-needed assistance on a specific Goddard project.

In April 2001, Huang incorporated Allray in Maryland for the stated purpose of forming joint ventures with Chinese governmental and private entities to research, develop and distribute telecommunication and information technology products. Though Allray’s principal place of business was listed as Huang’s place of residence, its base of operations was located in China.

During the latter part of 2003 and into early 2004, in an effort to obtain technological components for use by Allray, Huang falsely represented to three U.S. companies that he was employed by NASA and was working on a joint project between NASA and Allray. No such joint project existed. The components which Huang sought included cadmium zinc telluride (CZT) and mercury cadmium telluride (MCT) wafers, considered dual-use technology subject to U.S. export controls. These products were unrelated to Huang’s former work at NASA.

In order to make it appear as though NASA was involved in procuring these products, Huang directed that purchased items be shipped to an associate employed at Goddard; used a Goddard email account to communicate with the companies and subsequently redirect emails to his personal email account; faxed (or had faxed) a purchase order from a number associated with Goddard; and presented his former business card to companies that identified him as a contract employee of NASA/Goddard.

In late October 2003, as a result of his false representations, Huang obtained five CZT wafers from Company 1 and four silicon wafers from Company 2. Huang directed his associate working at Goddard to ship two of the CZT wafers to Company 2 so it could apply a specific growth process to add a layer of MCT to the wafers. Huang also directed his associate to buy 10 additional CZT wafers for $10,620 from Company 3.

Company 3 subsequently determined that Allray was a Chinese company headed by Huang, and that the shipping/billing address provided for the purchase was a residential address. Accordingly, Company 3 did not sell the CZT wafers, and the MCT wafers were never manufactured. If successful, the MCT growth process requested by Huang would have fabricated a type of infrared detector suitable for military applications, such as night vision and missile detection, that would have been controlled for export to China. The 10 CZT wafers sought from Company 3 were similarly controlled for export.

In the fall of 2005, Huang entered into an agreement with company X, which was co-founded by his associate, to build a prototype ultraviolet non-line-of-sight communications system for Allray. From December 2005 to April 2006 and in connection with its agreement with Huang, company X purchased 34 ultraviolet light emitting diodes (UV/LEDs) from Company 6, at a total cost of $3,556. The technical specifications of the purchased UV/LEDs, and the manner in which they were to be used, suggested an application more consistent with a covert communications device. In early May 2006, the associate demonstrated to Huang a prototype of the device being built for Allray. At that time, Huang was given two of the diodes obtained from Company 6.

On May 8, 2006, U.S. Customs officials at O’Hare International Airport in Chicago inspected Huang and his luggage just prior to his outbound flight to China. Two of the UV/LEDs purchased from Company 6 were found in Huang’s luggage. Huang made false statements regarding who had given him the diodes, what they were worth, what company had manufactured them, and how they would be used in China. He also provided false information regarding the technical specifications of the diodes.

Huang subsequently directed his wife not speak to, or ask, anyone about what had happened at the airport; to say she did not know anything if questioned; to throw away the box that had originally contained the UV/LEDS found in his luggage; and to clean out their residence. In response, his wife threw away the UV/LED box and certain Allray documents in their home. She deleted all Allray-related files from their home computer, but saved certain Allray files on a thumb drive. The government recovered some of the documents, including identifying and financial information for Allray’s investors in the United States, Allray’s IPO plan, a 2006 PowerPoint presentation charting Allray’s accomplishments in China, and an article on a short-range, non-line-of-sight ultraviolet communication device.

Upon learning of the government’s investigation of the scheme, Huang fled to China and was a fugitive until his arrest in London in December, 2013. Feng Yan, age 46, formerly of Ellicott City, Maryland, was also charged by indictment for his alleged participation in the scheme and is currently a fugitive.

United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore and Department of Commerce for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christine Manuelian, who is prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Travis Gaines, age 34, of Baltimore, Maryland, today to 130 months in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine. Judge Blake also found that Gaines is a career offender based on previous narcotics convictions.

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

According their plea agreements, Gaines and Bolden conspired with Shawn Malone, Karl McDonald and others to obtain cocaine from sources of supply in Arizona and Texas and to distribute those drugs in Baltimore. Once the cocaine arrived in Baltimore, it would be distributed to Gaines and other wholesale customers who would redistribute it to their customers. McDonald converted the powder cocaine to crack cocaine for street level distribution and operated a distribution shop in Baltimore where the crack cocaine was sold. During the course of the investigation DEA intercepted the telephone and electronic communications of several members of the conspiracy. In addition, as a result of several search warrants executed on June 6, 2013, the DEA recovered approximately 250 grams of cocaine, as well as packaged cocaine, from the main stash house of the organization.

Gaines and Bolden admitted that as part of the conspiracy they were responsible for the distribution of between five and 15 kilograms of cocaine.

On August 14, 2014, U.S. District Judge William D. Quarles, Jr. sentenced Gaines to 151 months in prison, but vacated the sentence a few days later and the case was reassigned to Chief Judge Blake.

Karl McDonald, age 30, and Antoine Bolden, age 37, both of Baltimore, pleaded guilty to their roles in the conspiracy and were sentenced to 151 months and 84 months in prison, respectively. Shawn Malone, age 31, of Baltimore, pleaded guilty to his role in the drug distribution conspiracy and is awaiting sentencing.

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

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Hassan Hammoud, age 60, of Dundalk, Maryland, today to 63 months in prison, followed by three years of supervised release, for conspiring to destroy a conspirator’s Maryland home by fire to collect $3 million in insurance proceeds. Judge Bennett entered an order requiring Hammoud to pay restitution of $828,773.

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

According to his plea agreement, co-conspirator Saleh Fakhoury owned a home in Lutherville Maryland. Hammoud worked for Fakhoury at Alfeo’s, a pizza restaurant owned by Fakhoury. In 2007, Fakhoury bought a second home in Florida. By March 2009, Fakhoury owed over $200,000 to credit card companies, utilities and other service providers, as well as over $1.7 million to banks for the mortgages on the properties he owned.

Fakhoury and Hammoud schemed to destroy Fakhoury’s home in Lutherville by arson. Fakhoury intended to collect the insurance and pay off his debts. Fakhoury agreed to pay Hammoud $20,000 to set his home on fire. The two agreed that when the insurance company paid Fakhoury, Fakhoury would pay $50,000 for having his house set on fire, and the money would be sent overseas. Hammoud purportedly hired others to set the fire.

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

In September 2009, Fakhoury executed a sworn proof of loss to collect $3,155,197 in insurance. The loss statement was false, in that it claimed items were destroyed or damaged in the fire when, in fact, the items were not consumed in the fire, and the fire was intentionally set. The insurance company denied the claim but paid $828,773 to the mortgagor of the Maryland home. On December 2, 2011, Fakhoury filed a civil action against the insurance company in an effort to recover monies under the insurance policy, and claim over $3 million in compensatory damages.

Saleh H. Fakhoury, age 49, formerly of Lutherville, Maryland, previously pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on January 7, 2015 at 10:00 a.m. As part of his plea agreement, Fakhoury has agreed to dismiss the civil lawsuit he filed.

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

Violated His Supervised Release From a Previous Bank Robbery Conviction

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Antonio Rennard Gilliam, age 43, of Baltimore, today to 135 months in prison followed by three years of supervised release for a commercial robbery and for violating his supervised release from a previous bank robbery conviction.

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

According to his plea agreement, on August 19, 2013, Gilliam robbed a cell phone store in the 800 block of Taylor Avenue in Towson. Gilliam told a store clerk that he wanted to switch his phone service. Gilliam lingered in the store until there were no other customers, then approached the cash register with his hand in his pocket, as if he were carrying a handgun. Gilliam leaned over the register counter and yelled at a store employee demanding all the money from the register. Gilliam took approximately $300 from the store, then ordered the store clerk to the back of the store and ordered another employee to go outside. Gilliam then ran away.

A short time later, Baltimore County Police officers responding to the robbery saw Gilliam, who matched the description of the robber, at a nearby intersection. They ordered Gilliam to stop, but he ran into a wooded area on the south side of Goucher Boulevard. Gilliam was found hiding in the woods and arrested. During a subsequent interview with police, Gilliam admitted robbing the cellular telephone store, as well as robbing a swimwear business in Towsontown Mall on August 15, 2013, taking about $300. Gilliam denied having a gun during either robbery.

United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, Jr., who prosecuted the case.

Violated His Supervised Release From a Previous Bank Robbery Conviction

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Antonio Rennard Gilliam, age 43, of Baltimore, today to 135 months in prison followed by three years of supervised release for a commercial robbery and for violating his supervised release from a previous bank robbery conviction.

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

According to his plea agreement, on August 19, 2013, Gilliam robbed a cell phone store in the 800 block of Taylor Avenue in Towson. Gilliam told a store clerk that he wanted to switch his phone service. Gilliam lingered in the store until there were no other customers, then approached the cash register with his hand in his pocket, as if he were carrying a handgun. Gilliam leaned over the register counter and yelled at a store employee demanding all the money from the register. Gilliam took approximately $300 from the store, then ordered the store clerk to the back of the store and ordered another employee to go outside. Gilliam then ran away.

A short time later, Baltimore County Police officers responding to the robbery saw Gilliam, who matched the description of the robber, at a nearby intersection. They ordered Gilliam to stop, but he ran into a wooded area on the south side of Goucher Boulevard. Gilliam was found hiding in the woods and arrested. During a subsequent interview with police, Gilliam admitted robbing the cellular telephone store, as well as robbing a swimwear business in Towsontown Mall on August 15, 2013, taking about $300. Gilliam denied having a gun during either robbery.

United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, Jr., who prosecuted the case.

Baltimore, Maryland –U.S. District Judge George L. Russell III sentenced Robert Fitzgerald, age 35, of Baltimore, today to 130 months in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition, and possession with intent to distribute heroin and marijuana.

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

According to court documents, on October 16, 2012, Baltimore Police detectives executed a search warrant at Fitzgerald’s residence and seized 44 zip lock bags containing heroin, packaging material and other drug paraphernalia, a digital scale, 36 zip lock bags containing marijuana, a food saver clear plastic bag with marijuana, $1,284, a loaded .32 caliber revolver, a .22 revolver and a box of ammunition with .32 caliber rounds.

Fitzgerald had previously been convicted of a felony and was prohibited from possessing a firearm and ammunition.

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

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Kevin Gerard Wyche, age 27, of Baltimore, today to 10 years in prison followed by three years of supervised release for possession with intent to distribute cocaine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge 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, on June 26, 2013, Baltimore City Police officers executed a search warrant at Wyche’s residence for evidence of narcotics trafficking. Police recovered four plastic bags containing a total of 100.79 grams of cocaine; a plastic bag containing 10.44 grams of marijuana; drug paraphernalia; and a bag containing over 115 rounds of ammunition, all which were hidden in the ceiling of the basement between the floor joists. Law enforcement also recovered computers, cell phones, and drug packaging material from the front basement bedroom where Wyche was staying. During a taped interview with police, Wyche admitted that the drugs and ammunition belonged to him. Wyche had previously been convicted of a felony and was prohibited from possessing a gun or ammunition.

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

82 Kilograms of Cocaine Having a Street Value of $8.2 Million Seized During the Investigation

Baltimore, Maryland - A federal grand jury has indicted nine defendants – seven men and two women – who are alleged to be members of the Jenifer drug trafficking organization (Jenifer DTO) for conspiring to distribute kilograms of cocaine in the Baltimore metropolitan and Woodbridge, Virginia areas. The indictment seeks the forfeiture of $15 million. The indictment was returned on September 3, 2014 and unsealed on October 9, 2014 upon the arrests of defendants.

The search warrant affidavit was unsealed today after the execution of 25 search warrants. During the searches, law enforcement recovered 27 kilograms of cocaine with a street value of $3 million; several hundred thousand dollars in cash recovered from the residences of some of the defendants; over $2 million in jewelry, including a 16 carat diamond ring; and luxury vehicles.

“The indictment and affidavit describe how drug organizations transport cocaine to Baltimore and move cash out of the city by relying on a network of suppliers, couriers, distributors, dealers and money launderers, and by using vehicles with hidden compartments,” said U.S. Attorney Rod J. Rosenstein. “The affidavit also explains how law enforcement agents catch drug dealers by using physical and electronic surveillance, wiretaps and cell phone data.”

The indictment 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 Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.

The arrests and searches were the result of coordinated operations by the DEA, IRS – Criminal Investigation, Baltimore City Police Department and Baltimore County Police Department, with the assistance of agents from the U.S. Marshals Service and the Bureau of Alcohol, Tobacco and Firearms.

The indictment charges the following defendants, all of whom are presently in federal custody:

Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 43, of
Bowie, Maryland; Tyrone Allen, age 42, of Bel Air, Maryland; Brooke Renee Lunn, a/k/a “Brooke Thomas,” and “Brooke Renee,” age 48, of Baltimore; Tracy Muse, a/k/a “Kimberly Scott,” age 41, of Pearland, Texas; Thomas Simmons, age 37, of Hampton, Virginia; Andre Brewer, age 35, of Elkridge, Maryland; Michael Williams, age 40, of Baltimore; Kermit Clark, age 44, of Baltimore; and
William Hegie, age 54, of Baltimore.

All of the defendants were arrested last week Thursday, October 9, 2014, except for Michael Williams who turned himself in on Friday, October 10th.

According to an affidavit in support of search warrants, law enforcement started investigating the Jenifer DTO in March 2013. The Jenifer DTO is a Baltimore-based drug trafficking and money-laundering organization with ties to Houston, Texas; Staten Island, New York; and Woodbridge, Virginia.

From September 2012 to September 2014, the Jenifer DTO allegedly obtained kilogram-quantities of cocaine from Houston and distributed the cocaine throughout the Baltimore area and in Woodbridge, Virginia.

"The arrest of these alleged Drug Trafficking Organization (DTO) members emphasizes the proactive work that the Drug Enforcement Administration and our law enforcement partners undertake every day to stop the flow of drugs from entering the Baltimore metropolitan area,” stated Gary Tuggle, Assistant Special Agent in Charge of the DEA Baltimore District Office. “DEA’s investigation of this DTO was a long-term, highly complex effort which used a myriad of investigative techniques to expose this DTO. Additionally, by hitting drug trafficking organizations where it hurts them most and seizing drug proceeds, in this case cash, vehicles and properties, we are crippling their ability to ever return.”

Kedrick Jenifer is the alleged leader of the drug organization. He directed the collection and transportation of money from Baltimore to Houston, and the transportation of cocaine from Houston to Baltimore.

The affidavit alleges that the drug organization concealed money and cocaine in hidden compartments in vehicles that were driven between Baltimore and Houston. The vehicles were sometimes transported on car carriers. Cocaine and cash were stored at the homes of the defendants, their family members, and at a business complex called RCH Plaza on West Franklin Street in Baltimore. Vehicles with hidden compartments were brought to the business complex, where DTO members concealed large amounts of cash or cocaine.

The affidavit alleges that in October of 2009, while traveling from Baltimore to California, Jenifer and Tyrone Allen stopped in Phoenix, Arizona. At the Phoenix airport, police seized $97,020 and three cell phones from Jenifer, and $70,680 and eight cell phones from Allen.

On September 27, 2012, the affidavit alleges, Brooke Lunn and a man named John Moore were arrested near Houston with approximately 30 kilograms of cocaine concealed in a vehicle. Tracy Muse, believed to be a girlfriend of Jenifer, posted bond for the release of Lunn and Moore. Lunn and Moore returned to Maryland.

On October 20, 2012, Moore was fatally shot in the back of the head in Baltimore. According to the affidavit, his murder is believed to be related to the cocaine seizure.

On July 2, 2013, Arkansas Highway Patrol searched a vehicle transported by the Jenifer DTO from Baltimore to Houston by car carrier, while it was being driven back to Baltimore. From a hidden compartment in the rear of the vehicle, 23.8 kilograms of cocaine were seized. Following the seizure, Jenifer allegedly returned to using Lunn to transport cash and cocaine between Baltimore and Houston. Since August 2013, Lunn is believed to have made 30 trips between the cities, transporting cash and cocaine.

In June 2014, agents saw Simmons give Jenifer a black bag in a parking lot in Woodbridge, Virginia. Virginia State Police pulled Simmons over 60 miles away and seized two kilograms of cocaine from a black bag concealed in a hidden compartment in Simmons’ vehicle.

Jenifer owns World Fed Apparel, Inc., a clothing store in Baltimore. Jenifer is also a co-owner of Flavor Factory, LLC, which is believed to own an ice cream franchise in Baltimore.

Jenifer and his companies currently own the following vehicles:

2013 Rolls Royce Ghost valued at $296,000, 2014 Ferrari 458 Italia valued at $271,000, 2014 BMW M6 valued at $113,925, 2015 Ford F-250 truck valued at $56,000,

and a 2012 Acura ZDX, a 2010 Honda Crosstour, a 2006 Acura and a 2009 GMC Denali truck. Jenifer kept some high end vehicles at a storage unit in Laurel, Maryland. Brewer allegedly bought a 2014 Mercedes S63 AMG, worth approximately $156,900.

The defendants face a maximum sentence of life in prison for conspiring to distribute and possess with intent to distribute cocaine.

The defendants had their initial appearances in U.S. District Court in Baltimore, Virginia and Texas last week. Hegie and Clark consented to detention. A detention hearing was held on October 14, 2014, in federal court in Baltimore for Lunn and she is detained. A detention hearing in federal court in Baltimore is scheduled for Jenifer, Allen and Brewer on October 16, 2014 at 11:00 a.m., 10:30 a.m. and 1:30 p.m., respectively, and for Muse on October 17 at 10:00 a.m. Williams is detained until arrangements are completed for his release on home detention with electronic monitoring. Simmons is in custody in the Eastern District of Virginia. No date has been set for a hearing for him in Maryland.

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

United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation and Baltimore City and County Police Departments for their work in the investigation. Mr. Rosenstein commended the U.S. Marshal Service and Bureau of Alcohol, Tobacco and Firearms for their assistance in the execution of the search and arrest warrants, and the Virginia State Police who assisted with the June 2014 seizure of cocaine.

Mr. Rosenstein thanked Assistant United States Attorneys John W. Sippel, Jr. and Scott A. Lemmon, who are prosecuting the case, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance in the prosecution of this Organized Crime Drug Enforcement Task Force Case.

Baltimore, Maryland – Pedro Santiago, age 43, of Columbia, Maryland pleaded guilty today to wire fraud in connection with two fraud schemes in which he illegally used $282,000 of his clients’ money.

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

According to his plea, from February 2009 to January 2010, Santiago engaged in two separate fraud schemes, holding himself out in both schemes as a managing partner and business consultant for DST Services, located at 7500 Greenway Center Drive in Greenbelt, Maryland. DST Services was not registered to do business in Maryland.

In the first scheme, Santiago promised that he would obtain a business line of credit for a victim of between $550,000 and $750,000, if the victim paid Santiago $20,500. On February 12, 2009, Santiago caused to be wired $20,500 from the victim’s bank account in California into Santiago’s account in Maryland. Instead of obtaining the line of credit for the victim, Santiago spent the money on himself and others.

In the second scheme, Santiago promised victims that if they loaned him money, or invested with him, he would broker a deal involving crude oil or other commodities in which the victims would receive a return on their loan or investment. Santiago caused five victims to wire transfer or send by check a total of $261,500. Instead of using the money to broker deals involving commodities, Santiago used the money for himself or others.

Santiago faces a maximum sentence of 20 years in prison followed by three years of supervised release and a fine of $250,000. Santiago has agreed to forfeit and pay restitution of $282,000, the total loss under both schemes. U.S. District Judge J. Frederick Motz scheduled his sentencing for January 27, 2015, at 2:15 p.m.

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

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

Also Admitted to Robbing Three More Convenience Stores at Gunpoint

Baltimore, Maryland – Brandon Ferrell, age 23, and Stephanie Amber Smith, age 24, both of Baltimore, pleaded guilty today to an armed robbery of a convenience store on September 27, 2013, and possession of a firearm in furtherance of a crime of violence. The couple admitted that they also committed three other armed convenience store robberies two days later.

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

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

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

Ferrell, Smith and the government have agreed that if the Court accepts their plea agreements, Ferrell will be sentenced to 22 years in prison, and Smith will be sentenced to 13 years in prison. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Ferrell on December 17 and Smith on December 18, 2014, both at 10:00 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 Assistant United States Attorney James G. Warwick, who is prosecuting the case.

Perpetrator of 13 Robberies or Attempted Robberies Has “Committed his Last Robbery”

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced John Joseph Wilson, age 54, of Dundalk, Maryland today to 30 years in prison followed by five years of supervised release for armed robbery of a bank and post office, and the use of a firearm during a robbery. Judge Russell also ordered Wilson to pay restitution of $48,818.01.

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; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief James W. Johnson of the Baltimore County Police Department; Harford County Sheriff L. Jesse Bane; Commissioner Anthony W. Batts of the Baltimore Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore County State’s Attorney Scott Shellenberger; and Harford County State’s Attorney Joseph I. Cassilly.

“If we are serious about reducing gun crime, we need to be serious about sentencing armed criminals to long terms in prison,” said U.S. Attorney Rod J. Rosenstein. “Hopefully John Joseph Wilson has committed his last armed robbery.”

According to his plea agreement, from July 2010 to October 2013, Wilson robbed or attempted to rob: four banks on eight occasions, one post office on three occasions and a supermarket on two occasions. These robberies occurred primarily in Harford and Baltimore Counties, and total $49,046.17. In all but one robbery, Wilson pointed a firearm at an employee. During his final robbery, Wilson shot at a citizen who was chasing him.

Beginning on July 22, 2010, Wilson stole $6,883.50 from the Mars Supermarket located on Philadelphia Road in Baltimore, after pointing a semi-automatic handgun at a clerk and taking money from her cash drawer. Wilson returned to the same store on August 27, 2010 and robbed the same clerk with the same gun, stealing $6,064.01.

On September 30, 2010, Wilson pointed a pistol at a bank clerk and stole $8,297 from a cash drawer at Madison Square Federal Savings Bank in Fallston, Maryland. When Wilson returned to the bank on October 9th, the employees recognized him from the earlier robbery and refused to let him enter the bank. Wilson pointed a handgun at the employees before fleeing.

A couple years later, on November 5, 2012, Wilson used a short-barreled shotgun to steal $4,116.66 from the BB&T Bank in Fallston.

Wilson used the revolver or shotgun to steal $490 from the Benson Post Office on Connolly Road in Fallston on December 12, 2012; $8,684 from Sovereign Bank on Emmorton Road in Bel Air, Maryland on December 17, 2012; and $8,960 from the same Sovereign Bank on January 4, 2013.

Wilson returned to the same BB&T Bank in Fallston on February 4, 2013 and stole $930. This time, instead of displaying a gun, Wilson showed a bank clerk his cell phone to display his demands for “Large bills” and “no dye pack.”

On April 27, 2013, after initially being thwarted from entering the Sovereign Bank on Emmorton Road in Bel Air, Wilson returned to the Benson Post Office. Using a revolver, he forced a postal clerk to open a safe. He took $821 from the safe and cash drawers.

On September 6, 2013, Wilson stole $3,800 from the Liberty Federal Savings and Loan Association Bank on Belair Road in Bel Air, after pointing a gun at an employee.

Finally, on October 5, 2013, Wilson again robbed the Benson Post Office. When the postal clerk saw Wilson’s gun, she fled to a business next door. The proprietor of that business chased Wilson, who turned and fired one shot toward the proprietor before fleeing away from the area. Postal Inspectors and Maryland State Police processed the crime scene at the Benson Post Office and developed evidence that assisted in the identification of Wilson as a suspect.

Wilson was arrested on October 9, 2013. The revolver and shotgun used in all but one of the robberies were recovered.

United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service, Maryland State Police, Baltimore County Police Department, Harford County Sheriff’s Office, Baltimore Police Department and the Baltimore City, County and Harford County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Napoleon McLain, Jr., age 31, of Randallstown, Maryland today to two years in prison followed by three years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base. McLain was an officer with the Baltimore City School Police Force (BCSPF). BCSPF officers are granted police privileges to carry firearms and conduct arrests within the City of Baltimore.

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

“It is shocking when a police officer is caught selling illegal drugs,” said U.S. Attorney Rod J. Rosenstein. “Fortunately there is no evidence that the defendant distributed drugs to school students.”

According to his plea agreement, from no later than December 2012 to August 2013, while he was employed as a BCSPF officer, McLain was a member of a conspiracy to distribute cocaine base. McLain bought multiple ounces of cocaine base at a time from his suppliers, which he sold to others. On four occasions between December 2012 and August 2013, McLain sold a total of approximately 150 grams of cocaine base to a confidential source for $9,800.

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant U.S. Attorney David I. Sharfstein, who prosecuted the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Deandre Murphy, age 31, of Baltimore, today to 10 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm.

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; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.

According to his plea agreement, Baltimore City Police officers were patrolling the Cherry Hill area of Baltimore when they saw Murphy, who was wearing a gray hooded sweatshirt. That seemed unusual to the officers since the temperature was about 90 degrees. Due to recent violence in the area, the officers approached Murphy to speak with him. As they approached from the rear, the officers saw the handle of handgun in Murphy’s pants. Murphy was not aware of the officers’ presence at that time.

One of the officers put his hand over the handle of the handgun and yelled “gun” for the protection of the other officers. Murphy struggled with the officers, but was subdued and the handgun, a .22 caliber pistol, fell from his waistband area. Murphy had previously been convicted of a felony and was prohibited from possessing a firearm.

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

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

Greenbelt, Maryland – Dillian Nathaniel Tucker, age 36, of Greenbelt, Maryland, pleaded guilty today to three bank robberies.

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

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

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

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

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

Tucker and the government have agreed that if the Court accepts the plea, Tucker will be sentenced to 92 months in prison. U.S. District Judge Peter J. Messitte has scheduled sentencing for January 8, 2015 at 9:30 a.m.

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

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

Greenbelt, Maryland - A federal grand jury has indicted Larosa Bolton, age 53, of Laurel, Maryland, today on charges of theft of government property and making false claims in connecting with fraudulent claims for medical travel expenses.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General; and Special Agent in Charge Bill Jones, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.

According to the indictment, Bolton was employed by the U.S. Postal Service as a city carrier at the Laurel post office. Between 1993 and 1998, she sustained three separate injuries, all of which qualified her to receive workers compensation benefits. As part of the program, beneficiaries, such as Bolton, are entitled to reimbursement for travel expenses to and from medical appointments related to the relevant injury, even if the employee returns to work. Bolton began receiving workers compensation benefits in 2001.

The two-count indictment alleges that between January 2008 and July 2014, Bolton received compensation for travel expenses for medical care relating to one of Bolton’s injury claims. Specifically, Bolton submitted vouchers for travel expenses for 1,170 trips for medical care. The indictment alleges that 89 of those trips were for medical care, but no medical care occurred for the remaining 1,081 trips that Bolton claimed. As a result of the fraudulent vouchers submitted by Bolton, the indictment alleges that she was paid at least $96,563.26 in reimbursement for travel to which she was not entitled and the indictment seeks forfeiture in that amount.

Bolton faces a maximum sentence of 10 years in prison for theft of government property and for making a false statement. No court appearance has been scheduled for Bolton.

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 Department of Labor- Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the U.S. Postal Service Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Hollis Raphael Weisman, who is prosecuting the case.

Baltimore, Maryland – A federal grand jury indicted Gary Clark Steciuk, age 39, of Buffalo Grove, Illinois and Heber Springs, Arkansas, today on charges of mail fraud, securities fraud and money laundering, related to a scheme to defraud his clients of more than $1 million.

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

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

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

The total loss resulting from the fraudulent scheme is alleged to be at least $1,064,501, and the indictment seeks forfeiture of that amount, as well as property in Buffalo Grove, Illinois, Westminster, Maryland and Maui, Hawaii.

Steciuk faces a maximum sentence of 20 years in prison for mail fraud, each of three counts of securities fraud and for money. An initial appearance is scheduled for October 10, 2014, in U.S. District Court in Baltimore. Steciuk is detained.

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

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

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

19 Defendants Have Pleaded Guilty to Federal Racketeering and Drug Conspiracies

Baltimore, Maryland – Anthony Preston, a/k/a “40,” or “Tone,” age 27, of Laurel, in Howard County Maryland, pleaded guilty today to conspiring to participate in a racketeering conspiracy, and using and carrying a firearm during and in relation to a crime of violence, in connection with his membership in the Bloods gang operating primarily out of Howard County, Maryland.

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

According to his plea agreement, Preston was a member of the Bloods since at least 2007. Preston has supported fellow incarcerated gang members, participated in gang meetings and discussions regarding gang sanctions, and planned retaliation against gang members suspected of cooperation. Preston is a leader of the “Swann” set, a sub-group of the Bloods. Preston achieved the rank of “O.Y.G” or “O.G.,” (Original Young Gangster or Original Gangster), terms used for a leader in the gang with authority over other Bloods members.

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

The investigation began with an assault and robbery of an ATF confidential informant in Columbia, Maryland, on November 8, 2011. The ATF was planning a controlled purchase of firearms from co-defendant and fellow gang member Michael Johnson, a/k/a “Ace,” a/k/a “Bloody Mike” after Johnson provided via text two photos of firearms, an assault rifle and a handgun, available for purchase by the CI. Instead, Johnson directed other gang members to rob the CI. Investigation revealed that Preston had been in contact with Johnson on the day of the robbery and was photographed holding the same rifle pictured in the texts sent to the ATF CI.

Among his criminal activities as a gang member, Preston admitted that he: attended gang meetings, supported incarcerated gang members, participated in discussion regarding gang sanctions, and planned and executed retaliation against others who he felt undermined his authority within the gang. Preston also planned, participated and approved of acts of violence, and was a leader in drug trafficking to and with fellow gang members. Preston, and his Bloods associates, regularly carried firearms in connection with and in furtherance of their unlawful acts. Preston admitted to directing or participating in at least 4 assaults, including a March 18, 2012, assault over a drug debt during which Preston threatened to later return and “shoot up the place,” a February 21, 2013, attempted assault of an individual causing problems with members and associates of Preston’s set, an April 12, 2013, attempted assault of someone Preston described as a “fake Blood,” and an April 20, 2013, assault of a former gang member with a knife and mace in a convenience store. The convenience store assault was captured on video, and Preston is seen hitting the girlfriend of the gang member in her face and attempting to spray her with mace. Citizens, including a young child, were injured by the mace sprayed by Preston during the assault. Preston was later overheard by law enforcement admitting to the assault and stating that if he’d had his gun with him Preston would have killed the man.

Preston also admitted that he began selling drugs, including crack cocaine and oxycocone, as early as 2007. Between February and May 2013, Preston was intercepted on numerous wiretap calls with other co-defendants discussing narcotics sales. Two co-defendants each supplied Preston with at least 9000 mg of Oxycodone.

On May 8, 2013, law enforcement executed multiple search warrants and arrested approximately 20 individuals connected with the Bloods gang, including Preston. A search warrant executed at Preston’s residence recovered, among other things, a .22 caliber revolver, with one live round of ammunition, brass knuckles, various prescription pills, marijuana, $1,222 in cash, and several cellular telephones. Preston has prior convictions for armed robbery and attempted armed robbery, and, as a result, was prohibited from possessing a firearm.

Preston and the government have agreed that if the Court accepts the plea agreement, Preston will be sentenced to 20 years in prison. U.S. District Judge George L. Russell III scheduled sentencing for February 6, 2015, at 11:30 a.m.

To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Judge Russell has sentenced co-defendants Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland to 205 months in prison and Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, to 193 months in prison; and David Jerome Robertson, age 23, of Columbia, Maryland to 81 months in prison. Co-defendants Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, Ryan Gladden, a/k/a "Fats," age 26, and Kyle Austin, a/k/a "Fowdy," age 23, pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on January 16, 2015; December 12, 2014; and December 22, 2014, respectively.

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

Baltimore – DRS Technical Services, Inc. has agreed to pay $13.7 million to settle allegations that it violated the False Claims Act by overbilling the government for work performed by DRS personnel who lacked the job qualifications required by contract.

The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, an investigative arm of the Department of Defense – OIG; Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit; and the Defense Contract Audit Agency (DCAA), an audit arm of the Department of Defense;.

“Companies that submit false bills to the government must be held accountable,” said U.S. Attorney Rod J. Rosenstein.

“Contractors that fail to provide qualified labor as promised are not entitled to bill the government as though they had,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The Department of Justice will pursue contractors that claim taxpayer funds to which they are not entitled.”

DRS Technical Services, Inc. (DRS) is principally located in Herndon, Virginia and is a subsidiary of DRS Defense Solutions LLC. DRS designs, integrates, operates and maintains satellite and wireless network solutions and telecommunication services and security systems for government and private sector customers. DRS C3 & Aviation Company, which is headquartered in Gaithersburg, Maryland, is an indicrect subsidiary of DRS and provides services to government agencies, including aircraft maintenance, logistics and depot support, and engineering support. Between March 2003 and December 31, 2012, DRS and its predecessors were awarded time and materials contracts for services and supplies to be provided to the Army’s Communication and Electronics Command (CECOM) in Iraq and Afghanistan, and to the Coast Guard for aircraft maintenance.

The government contends that from January 1, 2003 to December 31, 2012, DRS billed CECOM for work performed by individuals whose job qualifications did not meet all the qualifications prescribed by the contracts for the labor categories under which their efforts were billed, thereby falsely increasing the amount of money DRS claimed and CECOM paid. Similarly, from December 19, 2009 to December 18, 2011, the government contends that DRS charged the Coast Guard’s Aviation Logistics Center for work performed by individuals whose job qualifications did not meet the qualifications prescribed by the contract, again, thereby inflating the cost of the services provided.

“This settlement is yet another example of the tenacity and hard work of our Army CID agents,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit (MPFU). “It is a testament to MPFU's continued resolve to hold companies accountable for the work they do for the U.S. government.”

The claims resolved by the settlements are allegations only and there has been no determination of liability.

The settlement was the result of an investigation by the U.S. Attorney’s Office for the District of Maryland, the Justice Department’s Civil Division, DCAA, DCIS and the Army’s CID Investigative Command’s MPFU. Assistant U.S. Attorney Tarra DeShields handled the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Vyron A. Cox, Jr., age 28, of Washington, D.C., today to 10 years in prison followed by three years of supervised release for being a felon in possession of a gun and possession with intent to distribute 5.45 grams of marijuana.

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

According to his plea agreement, on December 27, 2012, Prince George’s County Police officers in the area of 2400 Chillum Road in Hyattsville, Maryland saw Cox repeatedly getting in and out of several cars, leading officers to suspect that Cox was involved in drug dealing. Marked patrol units were called to the scene and an officer approached Cox who was inside a car. As the officer approached the car, Cox got out and began to walk away. Cox ignored police requests to stop, and kept reaching for his front pockets and waistband.

Officers also saw a black object in Cox’s right hand. They ordered Cox to stop and lay down. Cox held his hand under his body, resting on his waistband. From that area, officers seized a loaded, black handgun. They also seized 12 plastic bags of marijuana from Cox’s front pants pocket and additional plastic bags of marijuana from the car. The bags contained a total of 5.45 grams of marijuana. Prior to this time, Cox had been convicted of a felony and was prohibited from possessing a firearm.

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

Federal Search Warrant for Email and Analysis of Cell Phone Lead to Charges for Abuse of Helpless Infant; Sent Videos and Images Using Messaging App

Baltimore, Maryland – A federal grand jury indicted Stephen H. Schaffner, age 34, of Greensboro, Maryland, yesterday on charges arising from the sexual abuse of a six week old baby who was born prematurely. The indictment alleges that Schaffner conspired with Michael Lutts, age 50, of San Diego, California, to abuse a six-week-old foster child and transmit recorded images and videos of the abuse to Schaffner. Lutts is facing federal charges in San Diego related to his conduct and the investigation is continuing.

Anyone who may have information related to the investigation of Stephen Schaffner is asked to contact the FBI at 410-265-8080.

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

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

According to the 10 count indictment, Schaffner was a licensed clinical professional counselor in Maryland until his license was suspended on June 14, 2014. Schaffner was also a licensed associate counselor in Arizona until his Arizona license expired in 2011.

The indictment alleges that Michael Lutts lived in San Diego, California and worked as a pediatric nurse at a hospital in San Diego County. Lutts was also a foster parent. On August 4, 2014, Lutts brought to his home a six week old baby boy, born prematurely, who was placed in his care as a foster child. That evening, Lutts, in California, texted Schaffner, in Maryland, images of the infant. Over the next several hours, Schaffner allegedly exchanged numerous graphic and sexually explicit messages with Lutts about Lutts engaging in sexually explicit conduct with the infant. Lutts sent Schaffner videos with the infant, including images of an adult performing oral sex on the infant. Schaffner is alleged to have directed Lutts to sexually abuse the infant in order to produce sexually explicit images and videos and send them to Shaffner.

A criminal complaint filed in California alleges that authorities obtained a federal search warrant in April 2014 for an email address of a person who was distributing child pornography, which led them to other suspects who were transmitting child pornography. On August 26, 2014, authorities obtained a search warrant for Lutts’s residence and seized a cell phone that contained images and videos of Lutts allegedly sexually molesting the infant.

Schaffner faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison for the conspiracy and for each of nine counts of sexually exploiting a child, followed by up to lifetime supervised release,. On October 1, 2014, Schaffner had his initial appearance in U.S. District Court in Baltimore and was detained.

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

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

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

Heroin Organization Operated in Cecil County, Maryland, and in Delaware, Pennsylvania and New York

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Michael Roberts, a/k/a “Spook,” age 27, of Elkton, Maryland today to 10 years in prison followed by four years of supervised release for conspiring to distribute and possess with intent to distribute heroin.

Yesterday, Judge Blake sentenced co-defendant Jorge Ayala-Pizzaro, age 24, of Philadelphia, Pennsylvania, to 10 years in prison followed by five years of supervised release for the same charge.

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

According to his plea agreement, since at least December 2012, Roberts worked with Rachine Garnett to distribute the bulk quantities of heroin that Garnett obtained from sources in Philadelphia and New York, including co-defendants Jorge Ayala-Pizarro and Luis Lugo-Santiago. Law enforcement intercepted numerous calls between Roberts and Garnett. Generally, Garnett would contact Roberts to let him know he was ready to resupply Roberts with heroin. In addition to discussing drug transactions, Garnett and Roberts would discuss the location of police officers in the area to help avoid detection by law enforcement.

According to Ayala-Pizzaro’s plea agreement, he obtained kilograms of heroin, then took the bulk heroin to an apartment rented by Lugo-Santiago, where he and his co-conspirators cut it and repackaged it for further distribution. The heroin was sold to customers in Maryland and Delaware, including Rachine Garnett. Garnett would contact Lugo-Santiago to obtain heroin or provide cash for prior heroin purchases. Lugo-Santiago arranged a meeting with Ayala-Pizzaro or another associate. Garnett would meet Ayala-Pizzaro and others in Philadelphia where he would obtain a new supply of heroin and/or drop off the cash. Garnett and Ayala-Pizzaro had vehicles with hidden compartments where they could store either heroin or money. Often to exchange drugs, money or both, they would simply switch vehicles when they met. Over the course of a seven month wiretap, investigators identified 59 money deliveries from Garnett totaling $1,668,510, for the purchase of approximately 8.98 kilograms of heroin.

Ayala-Pizzarro also handled the transport of heroin and money to and from customers in Delaware, and was overheard by law enforcement discussing drug transactions and the finances of the organization.

On August 15, 2013, investigators executed a search warrant at Ayala-Pizzaro’s apartment and recovered drug paraphernalia, packaging material and $5,329 in cash. A search of Ayala-Pizzaro’s vehicle recovered over a kilogram of heroin packaged in a number of clear plastic baggies from a hidden compartment.

Roberts and Ayala-Pizzaro admitted that over the course of the conspiracy they were responsible for the distribution of at least 400 grams and 10 kilograms of heroin, respectively.

Seven defendants have pleaded guilty to their participation in the heroin conspiracy. Judge Blake sentenced Rachine Huron Garnett, a/k/a “Sheen,” “Red,” “Ray,” and “Blockhead,” age 38, of Elkton, Maryland, to 10 years in prison and sentenced Abel Nunez-Reyes, age 30, of Philadelphia, and Barry Jenkins, Jr., age 24, of Elkton, each to two years in prison. Orlando Nunez De Leon, age 37, of New York, New York, is scheduled to be sentenced on October 31, 2014, and Luis Lugo-Santiago, a/k/a “Papi,” and “Andres Galvez,” age 39, also of New York, is scheduled to be sentenced on December 5, 2014.

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

Baltimore – The Office of Justice Programs’ National Institute of Justice (NIJ) today announced it has awarded the Baltimore County Public Schools and its research partner, the University of Maryland at Baltimore, $1,965,158 to study school safety by focusing on students with emotional and behavioral health issues. NIJ received more than 100 applications from school districts and their research partners around the country, and made 15 awards to the highest scoring, most relevant and rigorous studies.

Schools across the country are struggling with how to formulate comprehensive and effective programs to address the mental health needs of students and thereby help preserve school safety. The study in Baltimore, known as “Promoting School Safety: A Comprehensive Emotional and Behavioral Health Model,” will employ a randomized controlled study design involving 44 schools to evaluate the impact of a new comprehensive emotional and behavioral health crisis response and prevention (EBH-CRP) intervention on school safety. This project will build on existing school and community resources to implement a streamlined emotional and behavioral health crisis response and prevention protocol and comprehensive continuum of services, including universal prevention, early identification, assessment and service linkage, crisis response and post-crisis relapse prevention. The research conducted by the University of Maryland at Baltimore will generate evidence about the effectiveness of a large-scale, multifaceted, mental-health-focused intervention.

Nationally, NIJ awarded nearly $63 million to school districts and research organizations through the Comprehensive School Safety Initiative (CSSI) to fund 24 research projects under two different solicitations. The first, “Investigator-Initiated Research,” includes nine awards to research organizations totaling more than $18 million. The Baltimore County Schools was awarded money under the second solicitation, “Developing Knowledge about What Works to Make Schools Safe,” under which NIJ provided more than $45 million to 15 school districts and their research partners. CSSI is a large-scale, multi-agency research effort to build knowledge about effective approaches to increasing school safety nationwide.

“We know a great deal about how to make schools safe in general but very little about the specifics for various settings and populations,” said Dr. William J. Sabol, Acting Director of NIJ. “With this $63 million investment, the nation will gain an understanding of school safety that is scientifically sound, practical, and that can be easily interpreted and used by schools.”

President Obama’s January 2013 plan to end gun violence emphasized keeping guns out of potentially dangerous hands and recognized that additional actions are needed to make our schools safer. CSSI was launched in early 2014 in response to a Congressional request for a broad, research-based effort to increase safety in the nation’s schools.

The initiative has three primary goals: to collect national-level data; to convene stakeholders to identify and share best practices; and to conduct innovative research and evaluate pilot projects in school districts. The programs and policies within CSSI are designed to produce evidence about what works in such areas of school safety as effectiveness of school resource officers and mental health professionals, violence and bullying reduction, and effectiveness of such restorative justice interventions as youth courts. The initiative will also examine potential unintended consequences of school safety efforts, including the excessive use of exclusionary discipline and arrests of students.

Although NIJ has primary responsibility for CSSI, the program is a collaborative effort among more than 20 federal partners, including the Departments of Justice, Education, Health and Human Services, Homeland Security, and the Treasury. This partnership will allow the federal government to make a significant impact on school safety by investing limited funds in research that has practical applications for every school in the nation. By determining what interventions work best for specific schools and students, CSSI will provide professionals with a body of knowledge to help them make decisions about which programs will be most effective — and most cost effective — for their particular schools and their challenges.

A list of the awards and more information about CSSI are available at www.nij.gov, keywords: “School Safety.”

Last of Ten Store Owners Indicted in September
Sentenced for $1.2 Million in Fraud

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Abdo Mohamed Nagi, age 55, a citizen of Yemen residing in Baltimore, today to 46 months in prison followed by three years of supervised release for two counts of food stamp fraud and six counts of wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Motz also entered an order that Nagi forfeit $1.2 million which he had illegally obtained from the food stamp program.

The sentence was 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’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

“Abdo Mohamed Nagi collected $1,200,000 from the USDA food stamp program without providing any food,” said U.S. Attorney Rod J. Rosenstein. “He distributed $600,000 in cash to the ‘recipients’ and put $600,000 in cash into his own pocket.”

Nagi entered his guilty plea on the first day of his trial on July 21, 2014. According to the indictment to which he pleaded guilty, Nagi owned and operated New York Deli and Grocery, located at 1207 West Baltimore Street, in Baltimore. Through the store, Nagi participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. 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 obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.

Nagi knew that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from February 2011 through May 2013, Nagi exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules. Typically, Nagi and kept up to 50 percent of the benefits for himself. To avoid detection, Nagi often debited funds in multiple transactions within minutes of each other. As a result of these illegal cash transactions, Nagi admitted that he obtained more than $1.2 million for food sales that never occurred.

Nagi split the proceeds with the SNAP recipients, keeping approximately $600,000 in illegal profits for himself and distributing $600,000 in cash to recipients.

In separate cases, all 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, and all have sentenced to up to 38 months in prison. These defendants were also ordered to pay forfeiture of up to $371,439.21, and/or restitution of up to $1.4 million.

Two more retailers, Abdulmalik Abdulla, age 37, and Ahmed Mohssen, age 54, both of Baltimore, were indicted in January 2014. A federal jury convicted them of food stamp fraud and wire fraud on August 8, 2014, following a four day trial. They are scheduled to be sentenced on November 14, 2014.

United States Attorney Rod J. Rosenstein praised USDA’s 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 Attorney Leo J. Wise, who prosecuted this case.

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow today sentenced Antonio Edwards, age 41, of Capitol Heights, Maryland, to 20 years in prison, followed by eight years of supervised release; and sentenced co-defendants Shane Elliott Hare, age 27, of Hyattsville, Maryland, to 11 years in prison, and Gregory Antoine Williams, age 28, of Washington, D.C., to 150 months in prison, each followed by five years of supervised release. Edwards, Hare, and Williams were convicted at trial on July 27, 2014 of conspiracy to interfere with commerce by robbery; conspiracy to possess with the intent to distribute cocaine; conspiracy to carry and use firearms in furtherance of a crime of violence and drug trafficking; and carry and use of firearms in furtherance of a crime of violence and drug trafficking. Edwards was also convicted of possession of ammunition by a felon.

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

According to the evidence presented at their nine-day trial, from May 9 to 16, 2013, Shane Hare, Antonio Edwards, Gregory Williams and co-defendant Marvin Bowden, conspired to rob drug dealers operating in Baltimore, Maryland, and sell over five kilograms of cocaine, using firearms. Witnesses testified that on May 9, 2013, the co-conspirators were introduced to an undercover agent who proposed robbing a stash house. The conspirators agreed to commit the robbery and intended to resell the stolen narcotics to customers in the Prince George’s County and Washington Metropolitan area.

According to trial testimony, on May 14, 2013, the conspirators met again with the undercover agent and outlined their plan to carry guns and execute the robbery soon after the undercover agent entered the stash house. The conspirators told the undercover agent that they would wear black clothing with police insignias as disguises and yell “Police” upon entering. On May 16th, the conspirators left the hotel room they used to prepare for the robbery and drove to the location where they planned to commit the robbery. The conspirators were arrested, and law enforcement seized two loaded pistols from under and in the car used by the conspirators.

Co-conspirator Marvin Bowden, Jr., age 31, of Colmar Manor, Maryland, was sentenced on July 21, 2014, to 10 years in prison for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, and for conspiracy to carry and use firearms in furtherance of a crime of violence and drug trafficking.

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

Baltimore, Maryland – Travis Lamont Foote, a/k/a “Cash,” age 31, of Baltimore, pleaded guilty today to conspiracy to commit sex trafficking by force, fraud and coercion and was sentenced by U.S. District Judge James K. Bredar to 12 years in prison, followed by five years of supervised release. Judge Bredar ordered that upon his release from prison, Foote 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 guilty plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.

According to Foote’s plea agreement, from September through November 2012, Foote used social media sites to persuade and entice females to work for him in his prostitution business. For example, in September 2012, Foote contacted an 18 year old woman living in Florida (Jane Doe 1) on Facebook, using a female online identity he created using the name “Cash Treasure.” Jane Doe 1 had dropped out of high school and was trying to get back into school or find employment. Foote, using the “Cash Treasure” persona, told Jane Doe 1 that “she” knew someone who would be able to assist her. Foote then reached out to Jane Doe 1, as a friend of “Cash Treasure,” stating that he could help Jane Doe 1 to get back into high school and get a diploma, but it would require her to move to Baltimore. After Jane Doe 1 agreed, Foote paid for an airline ticket for Jane Doe 1 to fly from Florida to Baltimore sometime in September.

Foote met Jane Doe 1 at the airport and drove her to a motel in Catonsville, where he had rented four rooms, three of which were occupied by other females. It was then that Jane Doe 1 learned that Foote was running a prostitution business and the he expected Jane Doe 1 to work for him, engaging in sex with men for money for Foote’s benefit. At first Jane Doe 1 refused, but eventually she agreed and began having sex with men for money, with all of the proceeds going to Foote.

During this time, Foote was using internet websites to advertise the women, including “Malaysia,” and “Mercedez,” who was Jane Doe 1, as available for prostitution. On November 14, 2012, an undercover detective from the Baltimore County Police Department Vice Unit called the number on one of the advertisements to schedule a “date” with “Malaysia.” The undercover detective met Malaysia at the agreed upon time and place. Malaysia was arrested. Officers located and arrested Jane Doe 1 in the hallway. She was holding a baby monitor which was receiving a live video of the interior of Malaysia’s room, where police had conducted the undercover operation. Officers also located and attempted to arrest Foote but he struggled and ran away.

Foote was arrested on May 16, 2013, after a Baltimore County Police officer conducted a traffic stop of the vehicle in which Foote was a passenger. In addition to Foote and the driver, there was an 18 year old female, Jane Doe 2, riding in the vehicle. Jane Doe 2 was listed in police records as a possible runaway. Foote and the driver were on their way back to a motel after taking Jane Doe 2 on an “out-call,” taking her to meet a man who paid to have sex with her. Two other females were located at the motel who worked as prostitutes for Foote and the driver. Jane Doe 2 and the other two females were advertised for prostitution on an internet website, and stated that they gave their earnings to Foote, the driver and another person.

Foote admitted that Jane Doe 2 began working for him in April 2013 and had approximately 100 “dates” with men for money that was provided to Foote. In May 2013, Jane Doe 2 tried to leave the motel after refusing a request from one of the men. Foote pursued her into the hallway and stairwell and physically fought with Jane Doe 2, returning her to the motel room by physical force.

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

Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.

United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.