District of Maryland

Baltimore, Maryland - Robert Johnson, age 33, of Perry Hall, Maryland, pleaded guilty today to a wire fraud conspiracy and aggravated identity theft, related to a scheme to defraud the City of Baltimore through the reissuance of fraudulent checks for pay and benefits.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

According to his guilty plea and court documents, Robert Johnson was employed in the Consumer Relations Service of the U.S. Department of Veteran’s Affairs. Johnson admitted that from July 11, 2013 through August 2, 2013, he and his co-conspirator, who was employed as an accountant in the Finance Department of the City of Baltimore, conspired to defraud the City of Baltimore. During the time of the conspiracy, Baltimore City employees who left their employment were entitled to a lump sum check of any pay and benefits for which they qualified. Johnson and his co-conspirator used the financial and identity information of former employees to request fraudulent employee benefit payout checks, which Johnson then deposited into his personal account and used for the benefit of the conspirators.

According to his plea agreement, Johnson’s co-conspirator identified individuals who had received and cashed large lump sum payments and then requested that such checks be reissued, as if they had not been received. These duplicate checks were printed at the Baltimore City Finance Office, where the co-conspirator stole the checks. The co-conspirator delivered the checks to Johnson, endorsed “Pay to the Order of Robert Johnson,” purportedly signed by the recipient. Johnson endorsed and cashed the checks, and deposited the proceeds into a bank account he controlled. Johnson used the funds for his own purposes and to fund meals and other purchases for the benefit of his co-conspirator.

For example, on July 11, 2013, Johnson deposited a check made out to Victim 1, in the amount of $14,741.09, and fraudulently endorsed to Johnson with a forged signature of Victim 1. On July 31, 2013, Johnson deposited a check made out to Victim 2, in the amount of $58,485.91. Again, the check was endorsed to Johnson with a forged signature of Victim 2. Both victims had previously received and cashed their initial lump sum payment checks and the duplicate checks were issued and endorsed to Johnson without their knowledge or permission.

After Johnson attempted to wire some of the funds to pay off an account at a different financial institution, Johnson’s bank was alerted to the suspicious transactions and referred the matter to the City of Baltimore Office of the Inspector General, who sought the assistance of the Finance Department in determining the authenticity of the endorsements. Johnson’s co-conspirator was tasked with the investigation and notified Johnson of the problem. According to Johnson’s plea agreement, the co-conspirator attempted to derail the investigation and obtain release of the funds by the bank by claiming to have spoken with the check recipients, who confirmed that the endorsements were genuine. In fact, neither statement was true. Meanwhile, Johnson’s bank had reversed the deposits and returned the funds to the City of Baltimore, leaving a large deficit in Johnson’s account balance. Johnson obtained funds from his co-conspirator to repay the amount due.

Over the course of the conspiracy, Johnson fraudulently obtained between $70,000 and $120,000, all of which was ultimately recovered.

Johnson faces a maximum sentence of 20 years in prison for the wire fraud conspiracy; and two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge George L. Russell III has scheduled sentencing for January 16, 2015 at 11 a.m.

United States Attorney Rod J. Rosenstein praised the Baltimore Office of Inspector General, Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine and Special Assistant U.S. Attorney Josh Felsen, a cross-designated Baltimore City Assistant State’s Attorney, who are prosecuting the case.

Greenbelt, Maryland - A federal grand jury has indicted Marquis Antwan Mack, a/k/a “Ice,” and “Goldie,” age 31, of Dover, Delaware, today for use of the telephone and interstate travel in the commission of a murder for hire.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Paul M. Bernat of the Dover Police Department.

The indictment alleges that from September 3, 2014 through September 12, 2014, Mack used his cellular telephone and traveled from Delaware to Maryland to arrange a murder for hire. According to indictment Mack allegedly agreed to pay $1,000 for the murder.

Mack faces a maximum sentence of 10 years in prison for use of the telephone and interstate travel in the commission of a murder for hire. An initial appearance has not yet been scheduled. Mack remains 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.

United States Attorney Rod J. Rosenstein praised ATF Baltimore and its Delaware Field Offices, and the Dover Police Department, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Daniel C. Gardner and Leah J. Bressack, who are prosecuting the case.

Stole Checks from Mailboxes

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Paul Essel, age 27, of Laurel, Maryland, today to 57 months in prison, followed by four years of supervised release, for conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes. Judge Grimm also ordered Essel to pay forfeiture and restitution of $418,435.48.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury Office of Inspector General; and Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office.

“Stealing mail to commit identity theft and fraud not only jeopardizes people’s trust in the U.S. postal system, it threatens the overall financial health of our communities,” said Postal Inspector in Charge Gary Barksdale, U.S. Postal Inspection Service - Washington Division. “Today’s sentencing confirms that anyone using the U.S. Mail for criminal activity will be brought to justice and held accountable.”

According to his plea agreement, from June 14, 2010 to March 11, 2013, Essel and co-defendant Nelly Dadson opened bank accounts in their own names and in the names of shell corporations that they controlled. Essel and others used counterfeit checks that resembled convenience checks that had been stolen from mailboxes in Montgomery and Prince George’s Counties. The counterfeit checks contained names, addresses and account information that appeared on the convenience checks. Essel deposited these counterfeit checks into accounts controlled by the conspirators and then withdrew funds from the accounts. Essel also provided checks to Dadson with instructions to deposit these counterfeit checks into accounts that she controlled, withdraw the funds and provide the funds to Essel, for which Essel paid Dadson.

In addition, from June 14, 2010 to November 13, 2012, Essel and Dadson conspired to defraud Home Depot. On multiple occasions, a conspirator placed an order by phone with a Home Depot store for flooring in amounts ranging from $2,500 to $8,000, using a stolen credit card number. Within a few days, a conspirator called to cancel the order and supplied a debit card number of a conspirator, including Essel and Dadson, requesting that the refund for the order be placed on the conspirator’s debit card. At Essel’s request, Dadson received 38 credits to her bank accounts totaling approximately $141,159.07, which she then withdrew and provided to Essel. Essel paid Dadson $600 to $800 per transaction. Essel also received at least three credits to his bank accounts totaling approximately $8,902.96, which he withdrew.

The total loss caused by Essel’s conduct is between $400,000 and $1 million, and involved between 10 and 50 victims.

Nelly Dadson, age 24, of Baltimore, previously pleaded guilty to her participation in the schemes and was sentenced to four years in prison, for conspiring to commit bank fraud and aggravated identity theft. Judge Grimm also ordered Dadson to forfeit and pay restitution of at least $251,745.52.

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

United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service, U.S. Department of Treasury – Office of Inspector General and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Bryan Foreman, who prosecuted the case.

Greenbelt, Maryland - A federal grand jury has indicted Russell Edward Johnson, age 23, of Lusby, Maryland, today on charges of drug distribution, including one count of distribution of heroin resulting in death.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Laura Martin.

“Heroin is quickly becoming the drug of choice, leaving in its wake countless victims who have succumbed to heroin related overdoses, and in some cases, death. Today, Mr. Johnson is charged with supplying heroin, causing the ultimate, tragic death of an innocent person. Heroin has claimed another casualty: a victim that could have been your brother, your father, or a friend,” said Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division. “This investigation was a collaborative effort of DEA and the United States Attorney’s Office, Calvert County Sheriff’s Department and the Calvert County State’s Attorney’s Office. Together we send a message that drug dealers will pay the price for their acts. DEA will use all resources at its disposal to investigate and arrest those individuals whose only motivation is greed and who carry with them a complete disregard for human life.”

The four count indictment alleges that on April 10, 2013, Johnson possessed oxycodone with the intent to distribute and that on July 11 and July 18, 2013, Johnson distributed heroin. Finally, the indictment alleges that on July 18, 2013, Johnson distributed heroin and a person died as a result of using that heroin.

Johnson faces a mandatory minimum sentence of 20 years and a maximum of life in prison for distribution of heroin resulting in death; and a maximum of 20 years in prison for each of the two counts of distribution of heroin and for possession of oxycodone with the intent to distribute. An initial appearance has not yet been scheduled. Johnson is currently detained on related state charges.

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

United States Attorney Rod J. Rosenstein praised the DEA, Calvert County Sheriff’s Office, and Assistant State’s Attorney Lisa Ridge of the Calvert County State’s Attorney’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Daniel C. Gardner, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Louis Martin, age 51, of Waldorf, Maryland, today to 210 months in prison, followed by five years of supervised release, for illegal possession of a firearm by a convicted felon. A federal jury convicted Martin on April 9, 2014.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation - Baltimore Field Office.

According to the evidence presented at Martin’s five-day trial, law enforcement intercepted numerous calls indicating that Martin was attempting to obtain a firearm, planning to commit a robbery, and participating in the re-sale of stolen items. Martin was a previously convicted felon and as a result, was prohibited from possessing a firearm or ammunition. Witnesses testified that the investigation led to the execution of a search warrant at Martin’s residence on April 24, 2013. Martin was interviewed by FBI Special Agents who testified that Martin told them that he believed officers were at his home that morning because he told several people that he had been watching an armored truck and planned on robbing it. Martin also admitted to the agents that he had recently been trying to purchase a gun.

During the course of the search Martin left the residence to go to work. After Martin left, officers searched the second floor master bedroom, and discovered a loaded firearm folded within a stack of jeans in Louis Martin’s closet. Agents testified that they drove to Martin’s place of employment to interview him. When they informed Martin about the firearm recovered from his house, he admitted that he knew the gun was in his bedroom closet when the FBI searched his residence. Martin was arrested on May 1, 2013.

Martin was previously convicted of robbery; armed bank robbery; and bank robbery and use of a firearm in connection with a crime of violence

United States Attorney Rod J. Rosenstein commended the FBI’s Washington and Baltimore Field Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and Deborah A. Johnston, who prosecuted the case.

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Pierre Ramone Washington, age 29, of Temple Hills, Maryland today to six years in prison followed by three years of supervised release for bank robbery. Chief Judge Chasanow also ordered Washington to pay restitution of $13,861.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Montgomery County State’s Attorney John McCarthy; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

According to his plea agreement, between May 22 and September 26, 2013, Washington committed five bank robberies. In each case, Washington entered the bank and presented the teller with a note demanding money. Washington stole a total of $13,861.

Specifically, Washington robbed: the Capital One Bank in the 11000 block of New Hampshire Avenue in Silver Spring, Maryland, on May 22nd, stealing $3,109; the TD Bank in the 700 block of Crane Highway in Glen Burnie Maryland on June 27th, stealing $1,694; the Capital One Bank in the 21000 block of Frederick Road in Germantown, Maryland, on July 24th, stealing $5,700; the Bank of Glen Burnie in the 1200 block of Generals Highway in Crownsville, Maryland, on September 17th, stealing $2,298; and the SunTrust Bank in the 4600 block of Old Branch Avenue in Temple Hills, Maryland, on September 26th, stealing $430.

United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department, Montgomery County Police Department, Prince George’s County Police Department, and the Anne Arundel, Montgomery and Prince George’s County State’s Attorneys’ Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Nicolas A. Mitchell and Deborah A. Johnston, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Baldwin Nnamdi Chukweum Osuji, age 26, of Lanham, Maryland, today to 45 months in prison, followed by five years of supervised release, for conspiracy to commit bank fraud and for aggravated identity theft. Judge Motz also ordered Osuji to pay restitution of $128,256.21.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

According to his plea, from May 2011 through April 2013, Osuji participated in a scheme to defraud financial institutions by using victims’ personal identification information and impersonating the victims in phone calls with the bank. Specifically, Osuji called financial institutions and impersonated victims, using the victims’ personal information, which he obtained from a third party, to gain access to the victims’ bank accounts.

Once access was granted to victim bank accounts, Osuji changed the online identification and password and took over control of the bank account. Osuji obtained images of the victims’ checks online and used those images to reproduce fraudulent checks, using the bank account information of the victims as well as means of identification of the victims, for example, their names and signatures.

Osuji and others then deposited these fraudulent checks into bank accounts of co-conspirators, and using the co-conspirators’ personal information withdrew and attempted to withdraw cash from these accounts.

On April 5, 2013, a federal search warrant was executed at Osuji’s residence. Law enforcement recovered from his home and his computer various debit cards used in connection with the scheme, copies of fraudulent checks, check stock for making fraudulent checks, and documents detailing victim account information.

Osuji admitted that he defrauded and/or utilized the personal identifying information of at least 56 individuals. The actual loss associated with the fraud is approximately $128,256.21.

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

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and P. Michael Cunningham, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Antonio Holmes, age 29, of Washington, DC, today to 30 months in prison, followed by five years of supervised release, for conspiring to commit bank fraud and for aggravated identity theft. Judge Titus also ordered Holmes to pay restitution of $363,738.71.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

According to his plea agreement, from January 2010 to May 2012, Holmes conspired with Lateef Akande and others to defraud financial institutions. As part of the scheme, Lateef Akande recruited Holmes and other individuals to provide personal bank information regarding existing bank accounts in their names, or to open new accounts in their own names. Akande and others then caused third-party checks to be deposited into those bank accounts. For any of the checks that cleared, the co-conspirators would withdraw monies from those accounts.

For example, on January 28, 2010, Holmes deposited a fraudulent check drawn on the account of a victim, and made payable to Holmes in the amount of $34,450.90. On January 30, 2010, Holmes cashed a check for $3,900, drawn on the same victim’s account and made payable to Holmes.

Holmes admits that as a result of his participation in the fraud scheme the loss or intended loss is at least $400,000.

Lateef Akande, age 37, of Bladensburg, Maryland, was sentenced on July 14, 2014, to 175 months in prison for conspiring to commit bank fraud, bank fraud, aggravated identity theft and money laundering. Judge Titus also ordered Akande to pay restitution of $418,042.58.

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

United States Attorney Rod J. Rosenstein praised the Secret Service and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Thomas P. Windom, who prosecuted the case.

Baltimore, Maryland – Rahdel Sharbaan, age 31, of Bronx, New York, pleaded guilty on September 24, 2014, to conspiracy to distribute and possess with intent to distribute heroin. Co-defendant Gary Barham, age 52, of Easton, Maryland, pleaded guilty on September 15, 2014, to the same charge.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; 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, since early 2014, Rahdel Sharbaan and Gary Barham conspired with others to distribute and possess with the intent to distribute heroin. During the course of the conspiracy, Sharbaan was working with co-conspirators to obtain bulk quantities of heroin from sources in New York and transport that heroin to Maryland for further distribution. Specifically, Sharbaan would meet with sources in New York and obtain the heroin, then he would travel (generally via bus) to Baltimore, Maryland, where he would provide the heroin to a co-conspirator. Barham obtained bulk quantities of heroin from that same co-conspirator, which he then re-distributed in and around the Eastern Shore of Maryland. Sharbaan would take the proceeds of prior heroin transactions from the co-conspirator in order to pay the source in New York.

During the investigation, law enforcement obtained a wiretap on phone lines used by a member of the conspiracy. Through those wiretaps, they intercepted numerous calls between Sharbaan and the co-conspirator discussing travel to and from Baltimore and the heroin business. Investigators also saw Sharbaan and the co-conspirator meeting at the Baltimore Travel Plaza to deliver new supplies of heroin.

Barham was also overheard by law enforcement on numerous calls discussing heroin sales with the co-conspirator. For example, on April 2, 2014, law enforcement overheard Barham and the co-conspirator discuss meeting at a restaurant in Bowie, Maryland, so that Barham could obtain a supply of heroin. Law enforcement then saw Barham and the co-conspirator meet at the restaurant to conduct the drug transaction.

Over the course of the conspiracy, it was reasonably foreseeable to Sharbaan and Barham that the conspiracy distributed at least 100 grams of heroin.

Sharbaan faces a maximum sentence of 40 years in prison for the conspiracy. Barham and the Government have agreed that if the Court accepts his plea agreement, Barham will be sentenced to 132 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for Barham on November 17, 2014 at 3:00 p.m., and for Sharbaan on January 8, 2015, at 3:00 p.m.

Co-defendant Jeffrey Michael Anderson, age 35, of Upper Marlboro, Maryland, is scheduled to go to trial on October 27, 2014. Charges are pending against co-defendants Reginald Jones, age 26, of Bronx, New York; Shawn Christopher Malley, age 25, of Crofton, Maryland; Amanda Jo Palmer, age 32, of Hagerstown, Maryland; and William Ulysses Robinson, age 38, of Grasonville, Maryland.

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.

Baltimore, Maryland – U.S. District Judge William D. Quarles sentenced Todd Wheeler, age 28, of Glen Burnie, Maryland, today to 46 months in prison, followed by three years of supervised release, for being a prohibited person, specifically an unlawful user and a person addicted to drugs, in possession of firearms, including improvised explosive devices.

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; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; Fire Chief Michael E. Cox, Jr. of the Anne Arundel County Fire Department; and Anne Arundel County State’s Attorney Anne Colt Leitess.

According to Wheeler’s plea agreement, on January 1, 2014, Wheeler was treated at the hospital for injuries the he told hospital officials he sustained from an explosion when he was attempting to make fireworks. Wheeler attempted to flee the Emergency Room but was apprehended by police who were called to the scene. Police were directed to the home of Wheeler’s grandmother in Millersville, Maryland. She confirmed that Wheeler often stayed there and gave police permission to search the home and an outbuilding located on her property. Officers recovered chemicals used to manufacture high explosives, as well as other explosive materials. Investigators learned that Wheeler received packages at that address and stored the materials in the outbuilding.

The next day, ATF agents interviewed Wheeler, who remained in custody at the hospital. Wheeler advised agents that he was injured when he mixed chemicals and they exploded. He also told the agents that he had previously made explosive devices and detonated them in his yard. A search warrant was executed at Wheeler’s residence in Glen Burnie by Anne Arundel County Police. Over the next two days law enforcement recovered, among other things: several improvised explosive devices, as well as the chemicals and explosive materials used to make them; drugs and drug paraphernalia; a Walther pistol, flare gun and signal flare launcher, along with a conversion kit to allow the launcher to shoot 12 gauge shot gun shells; and 12 gauge shot gun shells.

Further investigation revealed that Wheeler had history of drug addiction dating back to at least 2006. At the time of this incident Wheeler was on probation for driving under the influence of a controlled substance and in a drug test conducted by his state probation officer shortly before the incident Wheeler tested positive for seven different controlled substances.

United States Attorney Rod J. Rosenstein commended the ATF, FBI, Anne Arundel County Police Department, Anne Arundel County Fire Department, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Harvey E. Eisenberg, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Monte Glascoe , age 24, of Baltimore, today to nine years in prison, followed by five years of supervised release, for robbery and brandishing a gun in furtherance of robbery. Judge Quarles also ordered Glascoe to pay restitution to the victims totaling $2,625.

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

According to his plea agreement, from July 18 to 26, 2013, Glascoe and co-defendants Gary Howard and Michael Emmanuel Smith robbed at least seven Baltimore 7-Eleven stores, located at: 6314 Eastern Avenue; 3436 Wilkens Avenue; 5512 Park Heights Avenue; 2500 Liberty Heights Avenue; 6700 Brentwood Avenue; 211 West 28th Street; and 3204 Hollins Ferry Road. Glascoe, Howard and Smith would choose a store to rob, steal a vehicle to use during the robbery; brandish a firearm during the robbery; and steal money and cigarettes during the robbery. In each robbery, Glascoe pointed a gun at victim employees. The conspirators stole money from the cash registers, cigarettes and other merchandise, and stole cash, a cell phone and folding knife from employees at the stores.

Gary Howard, age 34, and Michael Emmanuel Smith, age 28, both of Baltimore, previously pleaded guilty to their participation in the robberies. Howard was sentenced to 235 months in prison on September 2, 2014 and Smith is scheduled to be sentenced on October 1, 2014, at 1:00 p.m.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who prosecuted the case.

Baltimore, Maryland – A federal grand jury has indicted Shaun Tucker, a/k/a “Shawn Turner,” and his wife, Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” both age 49, of Keymar, Maryland, for embezzling from employee benefit plans and for tax evasion. The indictment was returned on September 16, 2014 and unsealed yesterday.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Bill Jones, U.S. Department of Labor – Office of Inspector General, Washington Regional Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Regional Director Marc I. Machiz of the U.S. Department of Labor, Employee Benefits Security Administration; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office..

The Tuckers were officers and shareholders of Quantell, Inc. and Intaset Technologies Corporation. Both companies had employee health and welfare plans in which employees deposited their contributions. The Tuckers also served as the plan administrators of both companies’ employee plans, and as representatives of the plan sponsors, Quantell and Intaset.

According to the five count indictment, in October, 2009, upon Shaun’s request, the bank holding the companies’ plan funds issued a check for $50,000 from the Intaset employee plan and a check for $100,000 from the Quantell employee plan, payable to MT&B, a company that the Tuckers had registered with the IRS. On October 9, 2009, the Tuckers caused the two bank checks to be deposited into a bank account for MT&B.

On January 4, 2010, the Tuckers allegedly caused a bank check for $42,344.32 and another check for $92,655.24, to be deposited into the MT&B bank account. These remaining funds were also assets of the Quantell and Intaset plans.

The indictment alleges that from November 2009 to April 2010, the Tuckers caused money to be transferred from the MT&B bank account, and eventually used more than $200,000 to pay for the construction of a 5,000 square foot home in Swanton, Maryland and other personal benefits.

The indictment further alleges that on April 8 and October 7, 2010, Shaun Tucker falsely stated to representatives of the Department of Labor (DOL) that there had been no transfers of any Quantell plan assets. On November 8, 2010, Shaun Tucker submitted a form to DOL falsely certifying that all of the remaining assets from the Quantell plan had been transferred to a Quantell - MT&B employee plan, while knowing that the Tuckers had instead used the funds for their personal benefit.

The indictment seeks the forfeiture of $284,999, the total amount of money which the Tuckers allegedly embezzled from the company employee plans, along with the residence in Swanton and a 2011 BMW.

Finally, according to the indictment, the Tuckers filed a joint tax return for 2009 in which they falsely reported income of $180,251, when in fact they knew that their income was $821,579, upon which taxes of $256,069 were owed.

“Business owners have an obligation to their employees and as taxpayers.” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office.

The Tuckers face a maximum sentence of five years in prison and a fine of $250,000 on each of four counts of embezzling from an employee plan; and a maximum of five years in prison and a $100,000 fine for tax evasion. An initial appearance has been scheduled for the defendants on October 1, 2014 at 11:00 a.m. in U.S. District Court in Baltimore.

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

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

United States Attorney Rod J. Rosenstein commended the U.S. Department of Labor – Office of Inspector General, IRS – Criminal Investigation, U.S. Department of Labor - Employee Benefits Security Administration, and DCIS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who are prosecuting the case.

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Gregory Evans, age 28, of Washington, DC, today to 114 months in prison, followed by five years of supervised release, for conspiracy to interfere with commerce by robbery and brandishing a firearm during a crime of violence.

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

According to Evans’ plea agreement, on January 22, 2014, Evans and others robbed a store in the 4100 block of Southern Avenue in Capitol Heights, Maryland. Evans and a co-conspirator forced a store employee at gunpoint to open the cash register. While Evans was taking the money from the cash register, his co-conspirator placed a gun to the head of a second victim and stole $785 from the victim’s pockets.

A little over an hour later, Evans and two co-conspirators entered a liquor store located in the 3300 block of Walters Lane in District Heights, Maryland. Evans brandished a black handgun, jumped over the counter, pointed the gun at store employees and ordered the employees to lie on the ground. A second co-conspirator brandished a silver handgun and stood by the front door. A third co-conspirator jumped the counter and removed money from a cash register. Evans then pointed his gun at one of the employees and ordered the employee to open another cash register. Evans took the money from that register, opened another cash register and removed money from that register as well. Evans and the co-conspirators then left the liquor store, got into a van and fled the area.

A witness saw Evans and the co-conspirators leave the store and followed them. The witness called 911 and relayed a partial Maryland tag number. Law enforcement located the van and pursued the van into Washington DC, where the van came to a stop near 57th Street and Clay Place, NE. Officers saw individuals exit the van and run away. Officers apprehended Evans and co-defendant, Donnell Calloway.

Donnell Calloway, age 28, of Washington, DC, is charged by criminal complaint with conspiracy to interfere with commerce by robbery and brandishing a firearm during a crime of violence. He is currently in federal custody on charges filed in Washington, D.C.

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

Filed 283 False Tax Returns, Resulting in the IRS Paying Almost $1 Million in Refunds

Baltimore, Maryland – Jennifer Rodriguez, age 40, of Hyattsville, Maryland pleaded guilty today to conspiring to defraud the United States in connection with the filing of 291 false tax returns.

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

“Identity thieves are becoming more creative and conniving,” stated Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington, D.C. Field Office. “They steal identities, steal from the U.S. taxpayer and prey upon innocent victims.”

According to her plea agreement, Rodriguez owned a tax preparation service known as Latin Multi Services, located in Silver Spring, Maryland. From October or November 2010 to January 2012, Rodriguez filed false income tax returns using the stolen identities of Puerto Rico residents. The stolen identities were obtained from a co-conspirator residing in Puerto Rico who appeared to group the stolen identities by families, including minor children. Rodriguez falsely listed the tax payers’ home addresses as her own home address in Maryland, or variations of her business address. These tax returns also included fabricated income and deductions. All of the fraudulent returns requested refunds to be deposited in bank accounts that Rodriguez or a co-conspirator controlled.

Over the course of the scheme, Rodriguez filed 283 false tax returns which caused IRS to pay $983,382 in fraudulent refunds.

Rodriguez faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz scheduled sentencing for January 12, 2015 at 9:30 a.m.

United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Marvel Alegria, age 24, of Gaithersburg, Maryland, today to 57 months in prison followed by three years of supervised release for conspiring to commit armed robbery in connection with four robberies of Chipotle restaurants. Judge Bennett also ordered Alegria to pay restitution of $24,900.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; Chief J. Thomas Manger of the Montgomery County Police Department; Carroll County State’s Attorney Jerry Barnes; Washington County State’s Attorney Charles P. Strong; and Montgomery County State’s Attorney John McCarthy.

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

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

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

Lamont Bonds, age 26, of Gaithersburg, Maryland, previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on November 24, 2014 at 11:00 a.m. Norman Guifarro was convicted in Carroll County Circuit Court of the Mt. Airy robbery and was sentenced to seven years in prison.

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

Baltimore, Maryland – Phong Dinh Tran, age 40, of Gaithersburg, Maryland, pleaded guilty today to conspiring to commit bank fraud arising from a scheme to use a straw purchaser to buy a liquor store.

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

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

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

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

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

Tran faces a maximum sentence of 30 years in prison and a $1 million fine. U.S. District Judge William D. Quarles, Jr. scheduled his sentencing for December 18, 2014, at 1:00 p.m.

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

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

United States Attorney Rod J. Rosenstein commended the SBA-OIG, FBI and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise and Sean Delaney, who are prosecuting the case.

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

Greenbelt, Maryland – A jury convicted Annika Boas, age 37, of Mount Rainier, Maryland on September 19, 2014, for conspiracy, wire fraud and making a false statement on a loan application, arising from a residential mortgage fraud scheme.

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

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

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

As a result of the conspiracy, Boas caused between $400,000 and $1 million in losses to federally-insured financial institutions.

“The United States Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG) investigates allegations of waste, fraud and abuse in HUD sponsored programs such as our FHA program,” said Special Agent in Charge Cary A. Rubenstein of HUD-OIG’s Mid-Atlantic Region. “This group, including several mortgage industry professionals, perpetrated a sophisticated mortgage fraud scheme designed to enrich themselves at the expense of lenders and the FHA Insurance Fund. The efforts that brought us this verdict demonstrate that when law enforcement is made aware of schemes that place the public and the FHA Insurance program at risk, we will commit the necessary resources to make sure the fraudsters are brought to justice and are no longer in a position to engage in fraud.”

Boas faces a maximum penalty of 30 years in prison for the conspiracy, for each of two counts of wire fraud, and for each of two counts of making a false statement on a loan application. U.S. District Judge George Jerrod Hazel has scheduled sentencing for Boas on January 7, 2015 at 9:00 a.m.

Co-conspirators Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland and Ayoub Luziga, age 35, of Bowie, Maryland, have pleaded guilty to their roles in the scheme and are scheduled to be sentenced on November 3, 2014 at 10:00 a.m. and November 24, 2014, at 11:30 a.m., respectively.

Five other conspirators have also pleaded guilty to their roles in the scheme, including: Tibakweitira’s wife Flavia Makundi, age 42, of Severn; Mokorya Cosmas Wambura, age 41, of Takoma Park, Maryland; Raymond Abraham, age 47, of Silver Spring, Maryland; Cane Mwihava and Abdallah Suleiman Kitwara, both age 43, of Bowie. Wambura was sentenced to five years in prison and Makundi was sentenced to time served. Mwihava is scheduled to be sentenced on October 14, 2014 at 1:00 p.m., Abraham is scheduled to be sentenced on October 27, 2014 at 11:30 a.m., and Kitwara is scheduled to be sentenced on December 2, 2014 at 9:00 a.m.

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


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

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

Baltimore, Maryland – Roy Lee Tolbert, age 43, of Washington, D.C., pleaded guilty on September 18, 2014, to the armed robbery of a diamond store in Queenstown, Maryland.

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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Queen Anne’s County State’s Attorney Lance G. Richardson.

According to the facts agreed to at the plea hearing, on May 19, 2013, Roy Lee Tolbert, entered a diamond store in Queenstown wearing a ball cap, wig, fake beard, sunglasses, an oversized suit jacket, jeans, and dark colored shoes. Tolbert went to the back of the store, removed a handgun from his waistband and pointed it at one or more employees of the store, demanding the diamonds that were in the display case. An employee complied with his demands and Tolbert stole approximately 59 engagement-style diamond rings worth an estimated $362,000, placing them into a gray backpack that he was wearing over his stomach.

The robbery was witnessed by an off-duty Maryland State Police sergeant, who provided Tolbert’s description to a 9-1-1 operator, then followed Tolbert as he left the store. The State Police sergeant saw Tolbert run behind a building to a waiting motorcycle. Tolbert removed his disguise and placed it into the backpack, then put on a black and neon motorcycle helmet and a black and neon motorcycle jacket. The State Police sergeant continued to follow Tolbert and saw him flee onto a section of Nesbit Road in Grasonville, Maryland, that is a dead-end street. The State Police Sergeant blocked the road until uniformed troopers arrived on the scene. They located Tolbert running through a nearby open field. Tolbert was able to reach the wood line in the area and escape capture. Found hidden on the property of a nearby residence was the motorcycle, the motorcycle helmet and jacket, and the disguise worn by Tolbert in the robbery.

Tolbert’s DNA was recovered from the fake beard and helmet. The owner of the motorcycle, which had been reported stolen in 2010, was Tolbert’s girlfriend. In July 2013, she had filed a request for a protection order, in which she mentioned that Tolbert had a gun, and further described him in a confrontation “pacing the lot with something silver in his hand”. This matches the description of the weapon used during the robbery, which was a semi-automatic handgun with a silver slide.

Tolbert told another person that he committed the robbery, and showed this individual the diamonds. Tolbert also offered to sell diamonds to a co-worker.

Tolbert faces a maximum penalty of 20 years in prison for the commercial robbery; and a mandatory minimum of seven years, consecutive to any other sentence, and up to life in prison for brandishing a firearm during a crime of violence. U.S. District Judge Catherine C. Blake scheduled sentencing for December 17, 2014 at 9:00 a.m.

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

Agrees to be Sentenced to Between 144 and 210 Months

Greenbelt, Maryland – Kevin Robinson, age 53, of Washington, D.C., pleaded guilty today to transporting a minor to engage in sex.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Chief of Police Robert D. MacLean of the U.S. Park Police; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

According to his plea agreement, on October 18, 2013, Robinson drove a nine year old girl and her parents to their home from a dental appointment, and dropped the parents off. Robinson then drove with the girl and other passengers to his girlfriend’s house, where he dropped off the other passengers. Robinson drove the girl to the Beltsville Agricultural Research Center (BARC) in Greenbelt, Maryland where he worked.

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

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

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

Robinson and the government have agreed that if the Court accepts the plea agreement, Robinson will be sentenced to between 144 to 210 months in prison followed by a lifetime of supervised release. U.S. District Judge Roger W. Titus has scheduled sentencing for January 14, 2015 at 10:00 a.m.

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

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

Baltimore, Maryland – Michael Lee Kelly, age 34, of Baltimore, Maryland pleaded guilty today to a bank fraud conspiracy and aggravated identity theft, in a scheme to use the identity information of others to finance luxury automobiles for his own use and to rent to others.

Co-conspirators Michael Christopher Marshall, age 35, of Baltimore; Smita Esha Shandelya, age 28, of Pikesville, Maryland; and Jamila Nashira Davis, age 35, of Baltimore, pleaded guilty to their roles in the scheme earlier this week.

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

According to their plea agreements, Kelly and co-defendant Michael Christopher Marshall selected automobiles to purchase from Maryland dealerships and then used the identity information of other individuals to purchase and finance the purchase of those vehicles. In some cases the individuals were willing participants. In other cases, Kelly and Marshall used stolen identity information, counterfeit identification documents, and an imposter posing as the victim to compete the purchases.

For example, in May of 2010, Marshall asked Kelly to find an individual who was about the same age as “GY,” an individual whose stolen identity information was in Marshall’s possession. Marshall knew that GY had an excellent credit rating. According to the plea agreements, Kelly recruited a family member to pose as the victim GY and obtained a counterfeit identification bearing the personal identity information GY but the picture of his family member. Kelly, Marshall and Kelly’s family member purchased a 2007 Mercedes S-550, a 2009 Audi S5, and a 2008 BMW using the GY identity.

According to their plea agreements, Shandelya had a romantic relationship with Marshall; and Davis had a romantic relationship with Kelly. Both women knew that Marshall and Kelly were not employed but drove luxury vehicles. Both women knew that Marshall and Kelly would not qualify to purchase and finance so many vehicles, and subsequently learned that Marshall and Kelly used the identifying information of others to purchase the cars. At Marshall’s request, in the summer and fall of 2010, Shandelya purchased vehicles for Marshall to rent to others by completing false financing applications that reflected inflated income, and which she supported with counterfeit employment pay stubs. In November 2010, Davis attempted to purchase a car for herself, but was denied financing. Kelly provided Davis with a color photocopy of a license bearing the identity information of “GN” for her to use as a co-signer. Although Davis did not know GN, nor did she recognize the person pictured on the license, she provided the photocopy to the car dealer. After the car dealer told Davis that GN would have to appear in person, Kelly went to the car dealership with the individual pictured in the fake GN identification and completed a new credit application using GN as the co-signer. The real GN had placed a credit alert on his credit report and received an alert regarding the application for credit in his name. He called the dealership, which cancelled the sale. The real GN arrived at the dealership shortly after Kelly and the GN imposter left the area.

As a result of the scheme, Marshall is responsible for between $400,000 and $1 million in fraudulently obtained vehicles; Shandelya is responsible for between $200,000 and $400,000 in fraudulently obtained vehicles; and Kelly is responsible for between $120,000 and $200,000 in fraudulently obtained vehicles.

Kelly, Marshall and Shandelya each face a maximum sentence of 30 years in prison for the bank fraud conspiracy. Kelly and Marshall also face a mandatory two years in prison, consecutive to any other sentence for aggravated identity theft. Davis faces a maximum penalty of one year in prison for a misdemeanor count of identity theft. U.S. District Judge Richard D. Bennett has scheduled sentencing for Kelly on January 9, 2015 at 3:00 p.m.; for Marshall on January 6, 2015 at 11:00 a.m.; for Shandelya on December 16, 2014 at 3:00 p.m.; and for Davis on December 17, 2014 at 3:00 p.m.

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Marcus Smith, age 21, of Aberdeen, Maryland, on September 18, 2014, to 12 years in prison followed by 25 years of supervised release for possessing child pornography and two counts of abusive sexual contact. Judge Quarles ordered that upon his release from prison, Smith 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; United States Attorney for the Eastern District of Virginia Dana J. Boente; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Harford County Sheriff L. Jesse Bane.

According to his plea agreement, in the summer of 2011, Smith was suspected of committing sexual assaults at a military installation in Virginia. FBI agents interviewed him and a search warrant was executed at his residence. The investigation revealed that on June 25, 2011 at a home on Fort Lee, Virginia, Smith had sexual contact with a nine year old boy. After Smith followed the victim into a bathroom, Smith called him into a bedroom. Smith restrained the victim, pulled off the victim’s pants and underwear, and touched the victim’s genitalia.

Also, from July 2009 to June 25, 2011 at a home on Fort Lee, Smith had sexual contact on more than one occasion with another child who was eight to 10 years old during this time. Smith made the victim remove his clothes and Smith touched the victim’s genitalia. Smith admits he ejaculated during his contact with the second victim on at least one occasion.

In the summer of 2012, further information was provided to the FBI that Smith may have child pornography in his possession. Law enforcement again executed a search warrant at Smith’s residence on August 24, 2012 and seized a cell phone which contained images of child pornography, including boys engaged in sexually explicit conduct.

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

United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police, Harford County Sheriff’s Office and U.S. Attorney’s Office for the Eastern District of Virginia for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney P. Michael Cunningham from the District of Maryland and Assistant U.S. Attorney Heather L. Hart from the Eastern District of Virginia, who prosecuted the case.

Used Guns, and Caused Serious Injury to One Truck Driver; Attempted to Rob a Fourth Truck

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Robert Neil Sampson, age 53, of Lanham, Maryland, today to 25 years in prison followed by three years of supervised release for conspiring to commit robbery, robbery and 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 Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Douglas A. Middleton, Chief of the Henrico County (Virginia) Police Division.

According to his plea agreement, Sampson and others committed three armed robberies in 2012 of two courier companies, Accurate Courier Express (ACE) and The Courier Connection (TCC), and attempted a fourth robbery. Both companies had contracts with AmerisourceBergen Corporation (ABC) to transport pharmaceuticals from Glen Allen, Virginia to Landover, Maryland, and from Landover to other locations in Maryland and the Washington D.C. metropolitan area.

On May 29, 2012, an ACE driver transported an ABC shipment of pharmaceuticals from Glen Allen to Landover. After the driver backed the tractor trailer up to the cargo door of the facility, Sampson and a co-conspirator pulled up in a motor vehicle. The co-conspirator pointed a handgun at the driver and ordered him into the tractor cab. Sampson then entered the tractor cab. The driver was ordered into the sleeper portion of the tractor cab and told to put a pillow case over his head. The driver refused. Sampson and the co-conspirator threatened to shoot him, but then allowed the driver to run away. A short time later, Prince George’s County Police Department patrol units located the tractor trailer on Nicole Drive in Lanham. A subsequent inventory revealed that pharmaceuticals had been stolen.

On July 13th, as an ACE driver was driving a shipment of pharmaceuticals out of ABC’s distribution center in Glen Allen, Sampson and a group of co-conspirators used a number of vehicles to block the delivery truck approximately 300 feet from the front gate. Several co-conspirators, armed with handguns, removed the ACE driver from the cab of the vehicle, wounded the driver with a taser gun, zip-tied the driver’s hands and feet and rolled him down a steep embankment. The co-conspirators then drove off with the truck. Investigators later found the truck abandoned near the crime scene. Pharmaceuticals were missing. The driver of the truck sustained serious bodily injuries and was treated at a local hospital; he suffers from protracted impairment of the use of his hands.

On August 14, two ACE drivers were driving along 75th Avenue in Hyattsville, Maryland, to deliver a shipment of pharmaceuticals on behalf of ABC. Sampson and a co-conspirator suddenly blocked their path with a van. The co-conspirator leaped onto the running board of the passenger side of one of the trucks and attempted to force his way into the truck. The truck continued to travel down the street and the co-conspirator jumped off the truck. Sampson, who was wearing a hard hat, approached the driver’s side of the other truck, brandished a handgun, and attempted to get into the truck. Sampson was eventually thrown off the truck. Sampson’s DNA was found on a hard hat recovered from the scene. Sampson was treated for a wound at a hospital in Baltimore the next morning.

On August 31, an employee was moving a truck inside the TCC warehouse located in Hyattsville, when Sampson, who was wearing an orange construction vest, and two co-conspirators entered the warehouse. At least one of the three men produced a handgun and ordered the TCC driver out of the truck. The TCC driver complied and ran out of the facility. Sampson was later identified in security camera footage of the robbery.

A search warrant was executed in September of 2012 at Sampson’s residence, and law enforcement recovered some of the stolen pharmaceuticals, zip ties and an orange construction vest.

The total amount of loss from the robberies was between $250,000 and $400,000.

United States Attorney Rod J. Rosenstein commended the FDA – Office of Criminal Investigations; Richmond, Virginia and Washington, D.C. offices of the DEA; the Henrico County (Virginia) Police Division; and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Mara Zusman Greenberg, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Austin Portner, age 55, of Hagerstown, Maryland, today to 10 years in prison followed by 20 years of supervised release for possessing child pornography and of having a prior sex offense conviction. Judge Bennett ordered that upon his release from prison, Portner 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 his plea agreement, on November 14, 2002, Portner was convicted of second and third degree sex offenses in Washington County, Maryland for having sexual contact with a 10 year-old victim. He was released from prison in 2009. Portner was employed in Pennsylvania.

In August of 2012, Maryland State Police discovered multiple handwritten letters between Portner and an individual who was incarcerated at the Maryland Correctional Institute in Hagerstown for sexual offenses involving children. Portner referred to the inmate in his letters as “Big Brother.” The mailings contained sketches of young children portrayed in lascivious manner with attending captions describing sexual contact with men, and references to the predation of children. Portner also explained that he had found a computer and that he was visiting websites for child pornography. One of the letters contained a photo of two young girls whom Portner stated were located in Pennsylvania.

When asked about the letters, Portner stated that he met “Big Brother” while he was in prison and that they shared a mutual interest in sex with children. Portner looked forward to the inmate’s release from prison so that he could learn how to attract young children. Portner stated that after his release from prison, he had viewed child pornography roughly one to three times a week from his residence on a netbook computer that linked to the WiFi network of a nearby coffee shop. Portner initially stated that he had destroyed the computer and that he no longer owned or had access to a computer, but later acknowledged owning a computer.

On February 11, 2013, law enforcement recovered a laptop computer from Portner’s residence, as well as additional letters between Portner and his “Big Brother.” The computer contained more than 200 images of visual depictions of minors engaging in sexually explicit conduct. Some of the images included photos of young children and infants who are bound or restrained and subjected to physical and sexual abuse.

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 for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who prosecuted the case.

Allegedly Created and Transmitted False Documents and Made False Statements

Baltimore, Maryland - A federal grand jury has returned a superseding indictment charging Jeffrey Brian Cohen, age 39, of Reisterstown, Maryland, with wire fraud and money laundering in addition to the charges of making false statements to an insurance regulator that were included in the original indictment. The superseding indictment was returned on September 16, 2014.

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; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

According to the superseding indictment, Cohen acted as the president and chairman of the board of a Delaware corporation Indemnity Insurance Corporation RRG (Indemnity). Cohen previously controlled a District of Columbia corporation called Indemnity Insurance Corporation of DC, Risk Retention Group (Indemnity-DC), which was a predecessor entity to Indemnity. Both companies were located in Sparks, Maryland, and provided general liability insurance, liquor liability insurance, and excess liability insurance coverage to their customers, which were individuals and companies involved in the entertainment industry, such as nightclubs, concert tours, and special events. Both companies operated in several states, including Maryland. In 2012, Indemnity insured more than 3,000 policyholders, and collected over $25 million in premiums.

The Delaware Insurance Commissioner and the DC Insurance Commissioner were charged by law with the responsibility of protecting insurance policyholders and the general public by regulating insurance companies and risk retention groups and their products to ensure among other things, that insurance companies and risk retention groups have the ability to pay claims.

According to the 12-count superseding indictment, Cohen obtained and attempted to obtain money from insurance policyholders and potential insurance policyholders of Indemnity-DC and Indemnity based on financial ratings, financial audits, and insurance regulatory approvals that Cohen fraudulently obtained. The indictment alleges that beginning in January 2008, and continuing until the fall of 2013, Cohen defrauded insurance policyholders and prospective insurance policyholders in order to obtain more than $100 million in insurance premiums, by falsely representing the financial status of Indemnity-DC, Indemnity, and other Cohen controlled entities to insurance policyholders, prospective insurance policyholders, the rating agency A.M. Best, to independent auditors, the DC Insurance Commissioner, and the Delaware Insurance Commissioner.

Specifically, the superseding indictment alleges that Cohen created false financial documents, including bank statements, letters of credit, and confirmations of bank account balances. These documents allegedly included a bank confirmation from a fictitious entity called RBCI, purportedly showing that Indemnity-DC had a bank account with a balance of $10 million as of December 31, 2009, and a bank confirmation dated March 1, 2013, purportedly from RBC Government Demands, showing that Indemnity’s bank account ending in 6652 had a balance of $5,097,276. According to the indictment, Cohen transmitted these false documents to A.M. Best in order to obtain financial ratings for Indemnity-DC and Indemnity that were not based on the companies’ true financial condition. Cohen then allegedly touted the A.M. Best ratings to potential policyholders, policyholders, and regulatory agencies. Cohen also allegedly transmitted false and fraudulent emails, management representation letters, financial statements, and other documents to the auditing firms Marcum and BDO so the auditors would provide an unqualified audit opinion on Indemnity-DC and Indemnity financial statements that Cohen knew were false.

According to the superseding indictment, Cohen caused Indemnity-DC and Indemnity to issue insurance policies exceeding the coverage limits authorized by the DC Insurance Commissioner and the Delaware Insurance Commissioner. To conceal the true financial condition of the companies, Cohen allegedly transmitted fraudulent audited and unaudited financial statements for Indemnity-DC and Indemnity to the DC Insurance Commissioner and the Delaware Insurance Commissioner. Cohen also allegedly made false statements to representatives of the Delaware Insurance Commissioner in June 2012.

According to the indictment, Cohen also conducted financial transactions with the proceeds of the scheme. Specifically the indictment alleges that Cohen transferred $666,667.67 from a corporate account he controlled to an account in the name of a law firm, and Cohen transferred $200,000 from a corporate account he controlled to one of his personal accounts.

The indictment seeks forfeiture of $100,866,667.67, believed to be the proceeds of the scheme.

Cohen faces a maximum sentence of 20 years in prison for each of five counts of wire fraud, 10 years in prison for each of two counts of money laundering, and 15 years in prison for each of five counts of making false statements to an insurance regulator. No court appearance has been scheduled and Cohen remains 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.

United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore, IRS – Criminal Investigation and U.S. Postal Inspection Service - Washington Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Joyce K. McDonald, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles Jr. sentenced Greyling Chase, age 53, of Baltimore, Maryland, today to 105 months in prison followed by three years of supervised release for conspiring to commit an armed robbery of a drug dealer.

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; 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 to Chase’s plea agreement, in March 2013, Chase agreed with a confidential source to rob a stash house full of cocaine. Chase and the source subsequently met to plan the robbery and Chase confirmed that he would bring a gun to use during the robbery. On April 8, 2013, Chase and codefendant Rodney Ellis met with the source to commit the robbery. Chase’s vehicle was stopped and the two were arrested. Law enforcement recovered a 9mm handgun and a .32 caliber handgun from the vehicle.

Chase subsequently agreed to be interviewed by law enforcement and admitted that he planned to participate in the robbery of a drug dealer and that he had obtained a gun to use in the robbery.

Rodney Ellis, of Baltimore, pleaded guilty to his role in the conspiracy and was sentenced to 97 months in prison on June 17, 2014.

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

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

Baltimore, Maryland – Thomas Mims, age 53, of Baltimore, pleaded guilty today to robbery and using a firearm during a robbery.

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

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

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

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

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

Witnesses called 911. Baltimore police officers soon located a vehicle that matched descriptions provided by witnesses. When officers pursued the vehicle, it sped off and led officers on a high speed chase. Police trapped Mims’ vehicle in a cul-de-sac and as officers approached on foot, Mims sped toward them in his car. As a result, one officer shot Mims in the arm. Several minutes later the chase ended and Mims was arrested.

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

Mims faces a mandatory minimum sentence of seven years consecutive to any other sentence imposed, and a maximum sentence of life for using a firearm during a robbery; and a maximum sentence of 20 years in prison for the robbery. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for December 16, 201, at 1:00 p.m.

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

Investigation by FBI’s Cross Border Task Force Results in The Conviction of the Final Defendant in a Violent Robbery and Carjacking

Greenbelt, Maryland – A federal jury convicted Anthony Terrell Cannon, age 25, of Washington, D.C., late on September 12, 2014, of conspiracy, robbery, carjacking, and two counts of discharging a gun during a crime of violence, and interstate transportation of a stolen vehicle, in connection with an armored car robbery and a carjacking in which a victim was shot in the arm and head.

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

According to the evidence presented at Cannon’s two week trial, on October 26, 2012, Cannon, Tonnie Floyd, and Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, driving a stolen Jeep, followed a Garda Cash Logistics armored transport vehicle to the Cricket store located in the 1300 block of University Boulevard East, Takoma Park, Maryland. A Garda employee exited the armored truck, went into the store and picked up a bag containing $3,911. As the employee returned to the armored truck, he was confronted by two co-conspirators with guns. The Garda employee dropped the money bag and at least one co-conspirator fired a gun at the employee. The employee shot back. One of the co-conspirators picked up the money bag. The co-conspirators ran back to the stolen Jeep. As the co-conspirators drove away, the employee continued to fire his handgun at the Jeep, striking a tire and the back window. Floyd was wounded in the shoulder during the gunfire.

The co-conspirators left the Jeep in a neighborhood nearby because it had a flat tire as a result of the shooting. They saw a man entering a vehicle, and shot the man in the arm and head, causing permanent and life-threatening bodily injury, then stole his vehicle. They drove the vehicle into the District of Columbia, where they set it on fire.

The evidence also included a recorded call between Cannon and an inmate at Prince George’s County Detention Center in which Cannon acknowledged his participation in the crimes and expressed disappointment in leaving an evidence trail in the stolen Jeep.

Cannon faces a maximum penalty of 20 years in prison for the conspiracy; 20 years in prison for armed robbery; life in prison for each count of using and discharging a weapon during a crime of violence; 25 years in prison for carjacking; and 10 years in prison for interstate transportation of a stolen vehicle. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for December 1, 2014 at 9:30 a.m.

Co-conspirator Tonnie Floyd, age 22, of Washington, D.C., previously pleaded guilty to robbery, and discharging a gun during the robbery and carjacking. Floyd is scheduled to be sentenced on November 25, 2014. Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 23, also of Washington, D.C., pleaded guilty to the same offenses. Freeman and the government have agreed that if the Court accepts his plea, Freeman will be sentenced to between 241 months and 30 years in prison at his sentencing on December 11, 2014.

United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department, the Takoma Park Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.

Baltimore, Maryland - A federal grand jury has indicted the owner of Alpha Diagnostics, Rafael Chikvashvili, age 67, of Baltimore, Maryland, on health care fraud and other charges related to a scheme to defraud Medicare and Medicaid of more than $7.5 million. The indictment was returned on September 11, 2014, and unsealed today. Chikvashvili had an initial appearance today in U.S. District Court in Baltimore and was released under the supervision of U.S. Pretrial Services.

The indictment 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 Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

According to the indictment, Chikvashvili formed Alpha Diagnostics Services, Inc., which later became Alpha Diagnostics, LLC, in 1993, and always acted as Managing Member, Authorized Official, Managing Employee, President and Chief Executive Officer for Alpha Diagnostics. Chikvashvili holds a PhD in mathematics, but was never a medical doctor or licensed physician. Alpha Diagnostics was principally a mobile diagnostic medical service provider of X-rays, but also procured and transmitted mobile diagnostic ultrasound tests, electrocardiograms (“EKGs”), echocardiograms, and other medical tests. Alpha Diagnostics operated in Maryland, Delaware, Pennsylvania, Virginia and the District of Columbia.

The 12-count indictment alleges that beginning at least in 1997 through October 2013, Chikvashvili defrauded Medicare and Medicaid by creating false radiology, ultrasound and cardiologic interpretation reports; by submitting insurance claims for medical examination interpretations that were never completed by licensed physicians; by falsely representing to Medicare and Medicaid, as well as to treating physicians, that the interpretations had in fact been completed by actual licensed physicians; and by submitting insurance claims for radiology, ultrasound and cardiologic examinations (and their associated costs) that were never performed, and/or which were in excess of the number of examinations ordered by the treating physician.

Specifically, the indictment alleges that Chikvashvili instructed his non-physician employees to: perform interpretations of X-rays, medical tests, ultrasounds and cardiologic exams in lieu of licensed radiologists and physicians; draft a licensed “physician’s” examination report in the name of a licensed physician to which Chikvashvili caused a copy of the handwritten signature of the actual physician to be affixed to the report. The indictment alleges that the names and titles of physicians Chikvashili used were physicians who did not interpret the examinations, nor provide the medical findings to create the reports. If a patient caregiver contacted Alpha Diagnostics to question medical interpretations, Chikvashvili allegedly reassigned the test/examination to a licensed physician for a second interpretation without informing the licensed physician of the prior interpretation. In addition, Chikvashvili instructed a non-physician employee to represent that he was a physician while speaking with others on the phone.

According to the indictment, Chikvashvili and Alpha Diagnostics routinely submitted insurance claims to Medicare and Medicaid that, among other things, exaggerated the services performed by its technologists or exceeded the services ordered by the treating physician; overcharged for transportation costs; and falsely represented that Alpha Diagnostics was properly overseen by supervising physicians.

Finally, the indictment seeks forfeiture of at least $7.5 million, including two properties, luxury vehicles, bank and investment accounts, and a safe deposit box.

Chikvashvili faces a maximum sentence of 10 years in prison for health care fraud; a maximum of five years in prison for each of nine counts of making false statements; and a mandatory two years, consecutive to any other sentence imposed, for two counts of aggravated identity theft.

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

United States Attorney Rod J. Rosenstein praised the HHS-OIG and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Mark W. Crooks, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced James Kidd, age 28, of Baltimore, Maryland, today to 15 years in prison, followed by three years of supervised release, for carjacking. Judge Hollander found that Kidd is a career offender, based on two previous convictions for robbery and drugs.

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; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.

According to Kidd’s plea agreement, on September 9, 2012, Kidd approached the driver of a Ford Expedition and said he would pay him for a ride. Kidd asked the driver to take him from the corner of North Avenue and Charles Street to the 5800 block of Oakview Road in Baltimore to pick up his girlfriend and kids. Once they arrived at the location, Kidd took out a silver handgun, racked the slide to load the gun, pointed the gun at the driver, and ordered the driver out of the car, demanding the driver’s money and cell phone. The driver gave Kidd his two cell phones and his wallet (which contained $2) and got out of the vehicle. Kidd ordered the driver to lie on the ground and drove away.

On September 12, 2012, in relation to a burglary investigation, Baltimore City police officers were called to 2010 North Patterson Avenue in Baltimore and recovered a loaded 9mm .380 handgun from Kidd’s front pants pocket. That weapon matched the description of the gun given by the victim of the carjacking, and was stolen from another residence on North Patterson Avenue. On September 17, the carjacking victim’s phone was recovered from 2010 North Patterson Avenue.

United States Attorney Rod J. Rosenstein commended the ATF, 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 Bonnie S. Greenberg and Debra L. Dwyer, who prosecuted the case.

“Pharmaceutical Pills can be Just as Harmful as Illegal Drugs”

Baltimore, Maryland - Baltimore, Maryland - A federal grand jury has indicted the three owners and two medical directors of Healthy Life Medical Group, a purported pain management clinic, on drug conspiracy and other charges. The indictment was returned on September 3, 2014, and unsealed today upon the arrest of the defendants. Charged in the indictment are:

Michael Resnick, a/k/a Michael Reznikov, age 53, of Brooklyn, New York; Resnick’s wife, Alina Margulis, age 48, also of Brooklyn, New York; Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 81, of Boca Raton, Florida; William Crittenden III, age 50, of Kensington, Maryland; and
Daniel Alexander, age 51, of Pikesville, Maryland.

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; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

“Medical professionals who distribute oxycodone without valid medical need place users in grave danger,” said U.S. Attorney Rod J. Rosenstein. “Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper oversight.”

“Pill Mills that are established to masquerade as legitimate pain management facilities by purported health care professionals will not be tolerated by DEA,” said Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration. “Those who operate these facilities do so out of pure greed and disregard for human life. I am proud of the combined efforts of DEA, the Baltimore County Police Department, the Baltimore County States Attorney’s Office, and the United States Attorney’s Office during this three year investigation. The arrests today prove that our work is not done yet. We will remain diligent in our efforts to end prescription drug abuse and hold pill mill doctors accountable.”

According to the indictment, from March 1, 2011 through May 15, 2012, Resnick, Margulis and Wiseberg owned and operated Healthy Life Medical Group, a purported “pain management” clinic in Maryland. Physicians William Crittenden and Daniel Alexander served as the medical directors of Healthy Life.

The 43-count indictment alleges that the defendants conspired to distribute drugs, especially oxycodone and alprazolam, outside the scope of professional practice and/or not for a legitimate medical purpose to cash-paying customers, the majority of whom were not from Maryland and were abusing, misusing, and distributing the drugs.

From March 2010 through February 2011, Gerald Wiseberg owned and operated Total Care Medical Center, a pain management clinic located in Deerfield Beach, Florida. The DEA executed a search and seizure warrant at Total Care in February 2011, and as a result, Total Care was forced to temporarily shut down. According to the indictment, at about that time, Wiseberg approached Resnick and Margulis about opening a similar pain management clinic in Maryland. After visiting Total Care and being trained by Wiseberg in the operation of the business, Resnick and Margulis opened Healthy Life, with Wiseberg as part owner of the business. Wiseberg also served as a consultant to Resnick and Margulis, for which he was paid $12,000 per month. William Crittenden was hired by Resnick, Margulis and Wiseberg, to serve as the medical director of Healthy Life, for which he was paid $1,500 per day, until his resignation in August 2011. Daniel Alexander was hired as medical director in September 2011. Healthy Life first opened in Owings Mills, Maryland, but in October 2011, moved to a larger office in Timonium, Maryland.

The indictment alleges that customers to Healthy Life paid at least $300 for an initial visit and at least $250 for all subsequent visits and the fees were collected upfront. Further the indictment alleges that more than 80% of Healthy Life’s customers came from out of state. According to the indictment, between April 2011 and August 17, 2011, Crittenden issued prescriptions to 1,051 customers on 1,874 separate office visits for approximately 328,520 oxycodone pills - a total dosage amount of 7,631,085 mg of oxycodone. Between September 2011 and March 2012, Alexander issued prescriptions to 624 customers on 946 separate office visits for approximately 178,151 oxycodone pills - a total dosage amount of 3,879,500 mg of oxycodone. On each office visit with Crittenden and Alexander, customers received a least one prescription for oxycodone more than 96% of the time.

From March 2011 through March 13, 2012, customers allegedly paid Resnick, Margulis and Wiseberg, through Healthy Life, at least $2 million for office visits. Most of these proceeds were collected as cash. According to the indictment, although Healthy Life regularly received more than $10,000 in cash payments per day, Resnick made deposits of less than $10,000 into bank accounts he controlled with his wife, and instructed the office manager at Healthy Life to also make cash deposits of less than $10,000, in order to avoid detection by law enforcement.

The indictment seeks forfeiture of $2 million from all the defendants for the drug distribution conspiracy. The indictment seeks forfeiture from Michael Resnick in the amount of $1,012,410, for the structuring of currency deposits.

The defendants face a maximum sentence of 20 years in prison and a $1 million fine for the conspiracy. Crittenden and Alexander also face a maximum of 20 years in prison for narcotics distribution. Resnick, Margulis and Wiseberg face a maximum sentence of 20 years in prison for maintaining a drug involved premises. Resnick and Margulis face a maximum of 10 years in prison for money laundering; and Resnick faces a maximum of 10 years in prison for structuring of currency deposits. Resnick and Margulis are expected to have an initial appearance later today in U.S. District Court in Brooklyn, New York. Initial appearances are scheduled for William Crittenden today and for Daniel Alexander on September 15, 2014, both in U.S. District Court in Baltimore. No court appearance has been scheduled for Gerald Wiseberg.

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-CI, Baltimore County Police Department and Baltimore County State’s Attorneys’ Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Jason D. Medinger, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Correctional Officer Sentenced Today to Over Two Years in Prison

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Sean Graves, age 48, of Windsor Mill, Maryland, today to 28 months in prison followed by three years of supervised release for participating in a racketeering conspiracy that included the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).

Earlier this week, four former correctional officers, Angela Johnson, age 35, Antonia Allison, age 28, and Javonne Lunkin, age 29, all of Baltimore, and Kevin Armstrong, age 27, of Gwynn Oak, Maryland, pleaded guilty to participating in the racketeering conspiracy.

Additionally, last week, former correctional officer Tiffany Linder, age 28, former inmate Derius Duncan, age 24, both of Baltimore, and Linnard Wortham, a/k/a “Stu,” age 29, of Pikesville, Maryland, pleaded guilty to the racketeering conspiracy. Wortham also pleaded guilty to possession with intent to distribute crack cocaine.

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

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

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

Graves, Johnson, Armstrong, Allison, Linder and Lunkin were correctional officers (COs) at the BCDC who smuggled contraband into the jail for distribution by BGF inmates. Graves smuggled Percocet, marijuana and tobacco into the jail from 2011 to 2013 on behalf of BGF leader Tavon White. Graves acted in concert with other correctional officers. Johnson admitted that she smuggled drugs such as Percocet, into the jail.

Allison admitted that she worked with other COs to smuggle drugs such as Suboxone and other prescription pills as well as marijuana, into the jail. Allison knew other inmates and COs who were involved in smuggling, and in sexual relationships. Armstrong admitted that he smuggled prescription pills, marijuana, cell phones and tobacco into the jail from 2011 to 2012. Armstrong acted in concert with Allison and other correctional officers.

Linder admitted that she smuggled prescription pills into BCDC for BGF inmates such as Tavon White. Linder also warned White of impending searches of BCDC and White in turn warned other BGF members. Lunkin was a CO at the BCDC Jail Industries Building in 2012 to 2013, and cooperated with others, including CO Katera Stevenson, in smuggling contraband into the jail. Lunkin knew other inmates and COs were involved in smuggling and in sexual relationships.

According to his plea agreement, Duncan is a BGF member. Duncan was in pretrial custody at BCDC from 2012 to 2013 and directed the smuggling of contraband into the jail, including cell phones, tobacco and other drugs, through COs who received payments, gifts or a share of the profits. Duncan had a sexual relationship with one of the COs involved in contraband trafficking. Duncan and his closest BGF allies frequently used others to obtain contraband outside the prison, and hold it or deliver it to COs for smuggling.

Wortham supplied contraband, including marijuana, that was smuggled into BCDC. COs such as Jasmine Thornton and Kimberly Dennis received the contraband from Wortham and then smuggled the contraband to BCDC inmates, including Duncan and Jamar Anderson. Law enforcement executed a search warrant at Wortham’s residence on November 20, 2013 and seized crack cocaine, marijuana, drug paraphernalia and $4,000.

U.S. District Judge Ellen L. Hollander scheduled sentencing for:

Wortham on January 9, 2015
Allison on January 16, Duncan on January 23, Linder, Lunkin and Armstrong on January 30, and
Johnson on February 6.

The defendants face a maximum penalty of 20 years in prison for the racketeering conspiracy. Wortham also faces a mandatory minimum of 10 years in prison and a maximum penalty of life in prison for the drug offense.

To date, 34 of the 44 defendants charged in the conspiracy have pleaded guilty, including 21 correctional officers. One defendant has died. Trial is scheduled to begin November 17, 2014 for the remaining defendants.

U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.

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

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced James Epps, age 34, of Baltimore, Maryland, today to eight years in prison followed by three years of supervised release for being a felon in possession of a gun and ammunition.

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.

The evidence showed that on July 5, 2010, Baltimore police officers were in the area of North Patterson Park and East Jefferson Street in Baltimore attempting to locate Epps in order to serve a federal arrest warrant for an alleged probation violation. When the officers saw Epps crossing the intersection, they arrested him and seized a loaded pistol. Epps had previously been convicted of a felony and was prohibited from possessing a gun.

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 Debra L. Dwyer, who prosecuted the case.

WASHINGTON – Assistant United States Attorneys Sandra Wilkinson and Martin J. Clarke of the U.S. Attorney’s Office in the District of Maryland were among the 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony today in Washington D.C.

The District of Maryland was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”

EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”

Assistant U.S. Attorneys Wilkinson and Clarke received an award for “Superior Performance as an AUSA – Criminal,” for their prosecution of Jose Joaquin Morales, age 37, of Baltimore, Maryland, who was sentenced to life in prison for using a cell phone to arrange the murder-for-hire of Robert Long. According to evidence presented at his two week trial, Long and Morales were co-defendants in a series of theft cases in Baltimore City Circuit Court. Long had agreed to testify against Morales and detectives used Long’s information to obtain a search warrant at Morales’ home, seizing a large amount of stolen construction equipment. Six days later, on March 24, 2008, Long was dead. Witnesses, including his former attorney, Stanley Needleman, testified that Morales ordered the murder to prevent Long, who was also an employee of Morales, from testifying against him.

The prosecution of Morales resulted in the exoneration of Demetrius Smith, who was serving life in state prison for Long’s murder -- a crime he did not commit.

“This case resulted in the exoneration of an innocent man and the conviction of the real killer,” said U.S. Attorney Rod J. Rosenstein.

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

Developed Relationships with Religious Groups as Part of the Scam

Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Shannon Johnson, age 51, of Laytonsville, Maryland, today to six years in prison followed by three years of supervised release in connection with a fraudulent advance fee scheme and tax evasion. Chief Judge Chasanow also entered an order that Johnson forfeit $3.7 million, and as a special condition of his supervised release, cooperate with the IRS in determining all taxes owed for tax years 2002 through 2009, and to pay the IRS all additional taxes, interest and penalties.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Assistant Attorney General Ronald Cimino of the U.S. Department of Justice Tax Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

Johnson admitted that he ran a fraudulent advance fee scheme from 2006 to 2009. Johnson held himself out as a wealthy international investment banker who could provide millions of dollars and euros in financing to businesses and individuals. In return for substantial advance banking fees, the Johnson and his wife Yvette promised to provide investors with money which they claimed they held in an overseas bank account. Shannon Johnson provided these businesses and investors with false documents purporting to be from the overseas bank to authenticate the funds, and developed relationships with pastors, ministers, and religious-based organizations to sell themselves as philanthropists on a humanitarian mission. Shannon Johnson received payments and gifts from pastors and ministers who believed substantial donations would be made to their churches. Businesses and individuals wired and mailed the advance fees to multiple bank accounts controlled by the Johnsons in different states. Yvette Johnson opened bank accounts and conducted financial transactions using proceeds obtained from the Johnsons’ business activities.

According to his plea agreement, despite receiving approximately $3.7 million in advance fees from individuals and businesses, Shannon Johnson never provided the promised financing. Instead, the Johnsons used the money to support their lifestyle, which the indictment alleges included the purchase of Bentley, Mercedes Benz and BMW automobiles, the leasing of a $3.5 million residence in California for $18,000 a month, travel on private jets and the funding of the mortgage on their Laytonsville residence. Johnson admitted that he obtained $3.7 million by victimizing at least 11 individuals and businesses.

The Johnsons also evaded taxes on the millions of dollars in income earned from the advance fee scheme. The Johnsons admitted that they filed individual tax returns for the tax years 1998 through 2001 using false W-2s to fraudulently generate a total of $66,097 in refund claims, evaded the payment of their 2002 through 2006 corporate and individual taxes totaling $98,220, and evaded the assessment of their 2007 through 2009 taxes. The Johnsons attempted to conceal their income and assets from the IRS by selling assets in their own names, titling assets in the names of nominees, using multiple bank accounts in three states to disperse and conceal income, using nominees and fraudulent taxpayer identification numbers to open and maintain bank accounts, and by using multiple business names to conduct business.

Shannon Johnson’s bail was revoked in September, 2013, after the Court found that there was probable cause to believe that he attempted to commit another fraud while on pre-trial release for the pending charges in this case.

Yvette Johnson, age 52, of Corona, California, previously pleaded guilty to her participation in the fraud scheme and is scheduled to be sentenced on September 29, 2014 at 9:30 a.m.

United States Attorney Rod J. Rosenstein commended the IRS Criminal Investigation and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant Chief John N. Kane of the U.S. Justice Department, Tax Division and Assistant United States Attorney Thomas Sullivan, who prosecuted the case.

Greenbelt, Maryland – Thomas Jefferson Kirby, Jr., age 50, of Burtonsville, 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 his plea agreement, Kirby’s father received social security retirement benefits based on the father’s earnings record. At the time of his father’s death, the benefits were paid by direct deposit to a bank account on which Kirby was a co-signor. Kirby’s father died on April 2, 1994. His death was not reported to SSA. SSA paid a total of $353,506 from April 1994 until December 2013 when the benefits were terminated. At the time benefits were terminated, the father’s monthly benefit amount was $1,820. Kirby used his father’s benefits to pay for his own personal expenses.

Kirby faces a maximum sentence of 10 years in prison. Kirby has agreed to pay restitution of $353,506. U.S. District Judge Paul W. Grimm scheduled sentencing for December 16, 2014, at l:30 p.m.

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

Baltimore, Maryland – Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, pleaded guilty today to conspiring to participate in a racketeering conspiracy, discharging a firearm in furtherance of a crime of violence and the unlawful transfer of firearms, in connection with his membership in the Bloods gang operating primarily out of Howard County, Maryland. Ryan Gladden, a/k/a "Fats," age 26, and Kyle Austin, a/k/a "Fowdy," age 23, pleaded guilty on September 3 and 4, 2012 respectively, to the racketeering conspiracy.

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

The 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.

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

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

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

According to his plea agreement, Austin has been a member of the Leuders Park Bloods gang operating in Baltimore, and an associate of the Bloods operating in Howard County, since August 2011. Austin sold marijuana, prescription pills and crack cocaine. He provided some of the drug profits to a jailed gang leader through Green Dot card numbers. Additionally, on October 22, 2012, Austin and two associates beat an individual as he was getting off an MTA bus and walking on East Patapsco Avenue in Baltimore, and robbed him of his money and cell phone. Austin was arrested on November 6, 2012.

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

Wright and the government have agreed that if the Court accepts the plea agreement, Wright will be sentenced to 18 years in prison followed by 5 years of supervised release. U.S. District Judge George L. Russell III scheduled sentencing for January 16, 2015, at 9:30 a.m.

Gladden faces a maximum sentence of 20 years in prison for the racketeering conspiracy. Austin and the government have agreed that if the Court accepts the plea agreement, Austin will be sentenced to between 60 and 78 months in prison. Judge Russell scheduled their sentencings for December 12 and December 22, 2014, respectively.

To date, 18 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies.

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.

Worked on Ships that Poached Hundreds of Thousands of Pounds of Striped Bass

Baltimore, Maryland – Lawrence “Daniel” Murphy, age 37, of St. Michaels, Maryland, pleaded guilty today to attempting to violate the Lacey Act by trafficking in illegally harvested striped bass.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division Sam Hirsch; Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police; and Honora Gordon, Regional Special Agent in Charge for the U.S. Fish and Wildlife Service.

According to his plea agreement, Murphy was a “helper” on a vessel owned and operated by Michael Hayden and William Lednum. Murphy admitted that from 2007 to 2011, Hayden and Lednum, with Murphy’s assistance, engaged in a scheme to illegally poach hundreds of thousands of pounds of striped bass from the Chesapeake Bay in violation of Maryland regulations relating to harvest method, amounts, tagging, and reporting. Murphy admitted to being on one of these vessels on the morning of February 1, 2011, when he and his co-conspirators were caught by law enforcement attempting to retrieve striped bass caught before the season opened and by using illegally weighted and/or anchored gill nets left in the water overnight.

Murphy knew that Hayden and Lednum shipped and sold the illegally harvested striped bass to wholesalers in New York, Pennsylvania, Delaware and Maryland.

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

Murphy faces a maximum penalty of five years in prison and a $250,000fine. U.S. District Judge George L. Russell, III, has scheduled sentencing for December 19, 2014.

Michael D. Hayden, age 42, and William J. Lednum, age 41, both of Tilghman Island, Maryland, previously pleaded guilty to their roles in the scheme and are scheduled to be sentenced on November 4 and 5, 2014, respectively. Another helper employed by Hayden and Lednum, co-defendant Kent Conley Sadler, age 31, also of Tilghman Island, previously pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on October 21, 2014.

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

Obtained $834,996 in Payments for Food Sales That Never Occurred

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Kim Man Chu, age 39, of Baltimore, to 18 months in prison followed by three years of supervised release for wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Motz also previously entered an order that Chu forfeit $834,996 and six firearms along with ammunition.

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.

Chu owned and operated Long Hing, a convenience store located at 1131 Greenmount Avenue in Baltimore. According to his plea agreement, the store 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.

Chu knew that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from October 2010 to September 2013, Chu exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for himself. Chu obtained $834,996 in payments for food sales that never occurred.

In separate cases, the 10 convenience store owners or operators indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud. Abdullah Aljaradi, age 52, and Ahmed Ayedh Al-Jabrati, age 56, both citizens of Yemen residing in Baltimore, were each sentenced to two years in prison, and ordered to pay restitution of $1.2 million. Jung Kim, age 52, of Ellicott City, Maryland, was sentenced to 20 months in prison, and ordered to forfeit $95,453.50 and pay restitution of $205,000. Amara Cisse, age 51, of Windsor Mill, Maryland, was sentenced to 27 months in prison and ordered to pay restitution of $654,349.24, and his wife, Fanta Keita was sentenced to two months in prison. John Cunningham, age 55, of Baltimore, was sentenced to two years in prison. Retailer Hyung Cho, age 40, was sentenced to 38 months in prison, and his mother Dae Cho, age 67, was sentenced to 18 months in prison. The Chos were also ordered to forfeit $371,439.21 and pay restitution of $1.4 million. Abdo Mohamed Nagi, age 54, a citizen of Yemen residing in Baltimore, is scheduled to be sentenced on October 10, 2014.

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 on August 8, 2014, following a four day trial, of food stamp fraud and wire fraud. 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 Kathleen O. Gavin, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced a former drug vendor on the Silk Road website, Jacob Theodore George IV, age 33, of Edgewood, Maryland, today to six years in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute drugs, including heroin.

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

“Today's sentencing again underscores HSI's commitment to continue working with our domestic and international law enforcement partners to identify and arrest individuals who are conducting criminal activities by using networks and digital currency designed to provide anonymity, such as Tor and bitcoins,” said HSI Baltimore Special Agent in Charge William Winter. “International drug traffickers are on notice that this illegal trade will not be tolerated.”

“Mr. George believed that he could operate with impunity on the Internet, providing a “service” to drug users and drug dealers alike. In doing so, he increased his trafficking network in the Baltimore area. Internet usage exists is in every home in the United States: our children communicate with their friends, work on school projects. Parents trust that their children are engaged in these activities safely in their homes. I am proud to say with the joint efforts between DEA and our law enforcement partners, Mr. George will no longer have access to this expansive illicit marketplace on the Internet.”

According to his plea agreement, from at least November 2011 to January 18, 2012, George sold drugs via Silk Road. George made contact with buyers via Silk Road, accepted payment electronically through Silk Road using bitcoin, a digital currency, and shipped drugs via the United States Postal Service to buyers throughout the United States and in foreign countries. The owner and operator of Silk Road, alleged to be Ross William Ulbricht, collected a fee for each transaction on the website. George acquired drugs from two primary sources: he purchased some drugs, including heroin, from drug dealers in the Baltimore metropolitan area; and he purchased synthetic drugs, including methylone, from suppliers in China and had those drugs shipped to him. In one of the first seizures of its kind, federal agents also seized bitcoin used by George to buy and sell drugs on the Silk Road website.

Ross Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” age 30, of San Francisco, California, has been indicted in Maryland and in the U.S. District Court for the Southern District of New York on charges related to his alleged operation of the Silk Road website. Ulbricht is scheduled for trial in New York on November 3, 2014. No court appearance in Maryland has been scheduled. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA, U.S. Postal Inspection Service, U.S. Secret Service and IRS-Criminal Investigation for their work in the investigation. U.S. Attorney Rosenstein recognized U.S. Attorneys Preet Bharara and Zach Fardon of the Southern District of New York and the Northern District of Illinois, respectively, and their offices; the FBI; and Senior Trial Counsel James Silver of the U.S. Department of Justice Computer Crimes and Intellectual Property Section for their assistance in the case. Mr. Rosenstein thanked Assistant United States Attorney Justin S. Herring, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Station Manager Submitted Fraudulent and Inflated Invoices for Landscaping and Cleaning Services in Exchange for Bribe Payments

Baltimore, Maryland – Former U.S. Postal Service Station Manager Richard Lewis Wright, III, age 47, of Baltimore, pleaded guilty today to bribery in connection with a scheme to obtain U.S. Postal Service contracts in exchange for bribe payments.

On August 29, 2014, U.S. District Judge Ellen L. Hollander sentenced former USPS Station Manager Kimberly A. Parnell, age 43 and contractor Shane Anderson, age 37, both of Baltimore, to 20 months and 15 months in prison, respectively, each followed by three years of supervised release, for bribery in the same scheme.

The plea and sentences were 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 Stephen E. Vogt of the Federal Bureau of Investigation.

According to their plea agreements, Wright was the USPS Station Manager of the Waverly Station in Baltimore, Maryland, and Parnell was the USPS Station Manager of the Pikesville Station in Pikesville, Maryland. As part of their official duties as a USPS Station Manager, Wright and Parnell had the authority to contract for landscaping, snow removal, and certain cleaning services at the Post Offices they managed, and to submit invoices for those services to USPS for payment.

Beginning in 2007 for Wright and 2010 for Parnell, and continuing until July 2013, Wright and Parnell admitted that they created, approved and submitted false and inflated invoices for maintenance work allegedly performed at their Post Offices and then split the proceeds with the providers of the services, including Shane Anderson and others.

According to their plea agreements, Wright and Parnell initially accepted bribes from co-conspirator G.M., who owned a landscaping company. In July 2013, after becoming increasingly frustrated with G.M’s slow payment of bribes to Wright and Parnell, Parnell recruited Shane Anderson, who operated a landscaping company in Baltimore, called Youthful Minds Lawn Care and whom she believed would make bribe payments in exchange for USPS contracts, to participate in the scheme. Thereafter, Wright, Parnell and Anderson agreed that Wright and Parnell would submit false and inflated invoices from Youthful Minds Lawn Care for landscaping services in exchange for a percentage of the proceeds paid to Youthful Minds by the USPS.

Beginning in August 2010, Wright also began soliciting and receiving bribes from Ladeena Sketers-Anderson, who operated Keep U Clean cleaning service. Sketers-Anderson received USPS payments, approved by Wright for services allegedly provided at Wright’s Post Office, and deposited the checks into her account. Sketers-Anderson then issued checks to a cleaning company owned by Wright, which Wright endorsed and cashed.

In all, Wright submitted a total of $591,791 worth of invoices in exchange for bribe payments and Parnell submitted a total of $50,470 worth of invoices in exchange for bribe payments.

Richard Wright faces a maximum penalty of 15 years in prison. As part of his plea agreement, Wright will be required to pay restitution in the full amount of the loss, which will be determined by the Court. U.S. District Judge Ellen L. Hollander has scheduled Wright’s sentencing for February 6, 2015, at 10:00 a.m.

Ladena D. Sketers-Anderson, age 48, of Randallstown, Maryland, previously pleaded guilty to her role in the scheme and is scheduled to be sentenced on September 12, 2014, at 11:00 a.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 USPS-Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.

Greenbelt, Maryland - A criminal complaint was filed today charging John MacDonald Junek, age 40, of Leonardtown, Maryland, with involuntary manslaughter in connection with the death of his infant son. An initial appearance is scheduled for 2:00 p.m. today before U.S. Magistrate Judge Charles B. Day, in U.S. District Court in Greenbelt, Maryland.

The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service, Washington Field Office.

The criminal complaint alleges that at 3:25 p.m. on September 3, 2014, Junek’s infant son was found unresponsive, locked inside Junek’s vehicle which was parked at the Naval Air Station (NAS) Patuxent River, where Junek worked. According to the criminal complaint, Junek dropped his four year old son at preschool that morning and was then supposed to drop his infant son at the Child Development Center on NAS Patuxent River. Junek explained that he entered the base and drove directly to his office, leaving his son in his rear-facing car seat in his locked vehicle at approximately 8:50 a.m.

According to the criminal complaint, Junek’s wife called him at 3:20 p.m. to see if he had their son’s car seat with him. Junek could not recall whether he had the car seat and realized that he may not have dropped the baby off at the CDC. Junek went to his vehicle and discovered the infant in his car seat unconscious. Junek called emergency responders and attempted to perform CPR on the child until police and EMS arrived and took over.

According to the criminal complaint, Junek had driven his vehicle to a meeting at approximately 1:00 p.m. He remained at the meeting until 2:00 p.m. and drove back to his office. Junek advised law enforcement that he had been in a hurry to get to the meeting and had not noticed his son was still strapped to his car seat in rear of the vehicle. The temperature reached 85 degrees on September 3, 2014.

Junek faces a maximum sentence of eight years in prison for involuntary manslaughter. He is currently detained.

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

United States Attorney Rod J. Rosenstein praised the NCIS for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kristi O’Malley and Michael Packard, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Theodore Clifton Matthews, a/k/a “Trigger,” age 32, of Baltimore, today to 210 months in prison followed by three years of supervised release for conspiring to participate in a racketeering enterprise, the South Side Brims (SSB) Bloods gang.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Acting 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, Matthews was a member of the SSBs, a subset of the Bloods Gang which is a violent street gang with thousands of members across the country. The traditional power centers of the Bloods’ gang’s national leadership structure are predominantly located in California and its members and associates have operated in many states across the country. The SSBs are located primarily in Maryland, but have ties to other Bloods gang members in California, New York City, New Jersey, Virginia, and South Carolina. SSBs have operated in the District of Maryland since at least 2005.

Matthews was a member of the SSBs operating in and around Baltimore. On September 4, 2009, a street fight broke out between two groups of men in the Curtis Bay neighborhood in Baltimore. One man was struck on his head with a brick. Others pulled out knives, including David Hunt, a member of the Dead Man Inc. prison gang. The fight continued down Pennington Avenue onto Elmtree Street. At some point, Matthews directed an SSB member to retrieve a 12 gauge shotgun and urged him to shoot David Hunt. Another SSB member subsequently fired the shotgun and killed David Hunt.

On November 4, 2010, Matthews was arrested in the 4600 block of Pennington Avenue in Baltimore, in possession of 15 small bags, each containing crack cocaine. The arrest was made after officers watched a transaction between Matthews and a customer.

On June 5, 2011, Matthews shot at three men who were walking in the 1500 block of Elmtree in Baltimore. One man was wounded in his right foot and returned fire, hitting an unoccupied truck parked nearby.

Matthews was arrested on June 9, 2011. Matthews admitted to dealing drugs in Curtis Bay since early 2009.

Thirty six SSB members and associates have pleaded guilty to their roles in the conspiracy, including Andre Ricardo Roach, a/k/a “Squeaky,” “Redrum,” and “Rum,” age 35, of Prince George’s County, Maryland, its founder and leader of the gang, which operated from Western Maryland to the lower Eastern Shore. Roach was sentenced to 30 years in prison.

United States Attorney Rosenstein praised the FBI, Maryland State Police, ATF, Baltimore City Police Department, and the State’s Attorney’s Office of Baltimore City for their investigation of this Organized Crime Drug Enforcement Task Force case. Mr. Rosenstein also recognized the Maryland Department of Public Safety and Correctional Services and the Drug Enforcement Administration for their assistance in the investigation.

Mr. Rosenstein thanked Assistant U.S. Attorneys Andrea L. Smith and A. David Copperthite, who prosecuted this case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Gary Cordell Howard, age 37, of Baltimore, today to 235 months in prison, followed by five years of supervised release, for robbery and brandishing a gun in furtherance of robbery.

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

According to their plea agreements, Howard, and co-defendants Monte Glascoe, and Michael Emmanuel Smith robbed at least seven Baltimore 7-Eleven stores from July 18 to 26, 2013, located at: 6314 Eastern Avenue; 3436 Wilkens Avenue; 5512 Park Heights Avenue; 2500 Liberty Heights Avenue; 6700 Brentwood Avenue; 211 West 28th Street; and 3204 Hollins Ferry Road. As part of the conspiracy, Howard, Glascoe and Smith would generally decide which store to rob, steal a vehicle for use during the robbery; brandish a firearm during the robbery; and steal money and cigarettes during the robbery. In each robbery, Glascoe pointed a gun at victim employees. The conspirators stole money from the cash registers, cigarettes and other merchandise, and stole cash, a cell phone and folding knife from employees at the stores.

Monte Glascoe, age 24, and Michael Emmanuel Smith, age 28, both of Baltimore, previously pleaded guilty to their participation in the robberies and are scheduled to be sentenced on September 25, 2014 at 10:00 a.m. and October 1, 2014, at 1:00 p.m., respectively.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Linwood Drake McKoy, age 45, of Baltimore, Maryland, today to 66 months in prison followed by three years of supervised release for robbing a restaurant.

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

According to his plea agreement, on November 5, 2013, McKoy entered the Prime Chicken and Fish restaurant on Edmondson Avenue in Baltimore and asked to buy a cup of ice. When the victim opened the register, McKoy placed a handgun to the victim’s head and demanded money. McKoy took $700 from the register and fled.

The victim identified McKoy from a photo array and McKoy was arrested on November 14, 2013. McKoy said he used a BB gun during the robbery, but the BB gun was not recovered.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who prosecuted the case.

Admitted his Participation in an Attempted Murder and Extortion

Greenbelt, Maryland – Roni Arriola-Palma, age 24, of Hyattsville, Maryland, pleaded guilty today to conspiracy to participate in a racketeering enterprise known as the La Mara Salvatrucha, or MS-13, including an attempted murder and extortion.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.

MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang and against rival gangs.

According to the statement of facts filed with his plea agreement, from 2009 until at least 2012, Arriola-Palma was a member and leader of the Peajes Locos Salvatrucha clique of MS-13. Arriola Palma and MS-13 members in the Peajes clique and other MS-13 cliques committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation.

Arriola-Palma admitted that from January 2010 through at least May 2011, he attended MS-13 leadership meetings in Maryland as the representative and leader of the Peajes clique.

According to the plea agreement, on January 13, 2011, Arriola-Palma attended a Peajes clique meeting with other MS-13 members near the Greenbelt Metro Station. Another MS-13 member spoke at the meeting, criticizing members of the clique for not committing enough violent crimes on behalf of MS-13, and encouraging clique members to find rival gang members and commit acts of violence against them.

Arriola-Palma admitted that after the meeting ended, he drove other MS-13 members in a mini-van. Near the Fort Totten Metro Station, they saw a person they believed was an associate of a rival gang. MS-13 members attacked the victim and dragged him back into the mini-van, where they continued to assault him. Arriola-Palma drove the mini-van around Hyattsville, eventually parking near a dead end in the vicinity of Chillum Manor Road. After Arriola-Palma stopped the mini-van, MS-13 members kicked, stabbed and choked the victim. Since the victim was wearing heavy winter clothing, Arriola-Palma and other MS-13 members forcefully stripped the victim of all clothing, in order to stab the victim. After the assault, two MS-13 members dragged the victim into the woods, where one of the gang members strangled the victim with his belt. When they returned from the woods, they informed the other members that the victim was dead. Arriola-Palma then drove the group of MS-13 members away from the scene. The victim survived the attack.

From March to November, 2011, members of the Peajes clique threatened to kill a fellow MS-13 gang member unless he paid them a weekly or bi-weekly “rent” or “tax,” which gang members collected from the victim. Arriola-Palma admitted that he accepted payments that he knew were proceeds from the extortion scheme from two other MS-13 members.

Arriola-Palma faces a maximum sentence of life in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for March 9, 2015, at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County and Montgomery County Police Departments, the Prince George’s County State’s Attorney’s Office, the Takoma Park Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau and Kevin L. Rosenberg, a Trial Attorney with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.

Committed 14 Convenience Store Robberies in Less Than 2 Months

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Omar Hance, age 33, of Baltimore, today to 110 months in prison, followed by three years of supervised release, for a series of commercial robberies. Judge Hollander also ordered Hance to pay $4,310 in restitution.

On August 26, 2014, Judge Hollander sentenced Darrell Blackwell, age 27, of Columbia, Maryland, to 42 months in prison, followed by three years of supervised release, for being the get-away driver in two of the robberies.

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

According to Hance’s plea agreement, between December 23, 2012 and February 7, 2013, Hance and a co-conspirator, Willie Vinson, robbed 14 convenience stores. In each robbery, Hance or Vinson used what appeared to be a black handgun, but was later determined to be a BB gun, to commit the robbery, taking money and store products by the use or threatened use of force against employees and customers of the store.

For example, on February 7, 2013, Darrell Blackwell drove Hance and Vinson to a 7-Eleven on West 33rd Street in Baltimore. Blackwell parked a short distance away and remained in the vehicle while Hance and Vinson, wearing masks, went into the store. Hance pointed what appeared to be a black semi-automatic handgun at the cashier and demanded money. The cashier turned over $200 in cash and $300 worth of cigarettes. Approximately five minutes later, after Blackwell had driven Hance and Vinson to the Royal Farms store on West 41st Street in Baltimore, they entered the store, while Blackwell again remained in the vehicle. Hance and Vinson announced the robbery and the customers left the store. Hance ordered the store employee to open the cash register, pulled out the black handgun and placed it on the counter, telling Vinson to take the gun. Hance then removed cartons of cigarettes, placing them in a large bag, while Vinson emptied the cash from the register. The two then left the store and sped away in the vehicle being driven by Blackwell.

Witnesses identified the vehicle, which was located by the police aviation unit. Other police units followed the vehicle and saw at least one item thrown from the vehicle. The vehicle eventually stopped at a garage at the Greater Baltimore Medical Center and Blackwell, Hance and Vinson ran away. All three were caught a short time later. Hance and Vinson were wearing the same clothing and fit the physical description of the robbers seen in the surveillance video from the stores. The gun was recovered from the road along the route of the robbers and was determined to be a BB gun.

Vinson previously pleaded guilty to his role in the robberies in Baltimore County Circuit Court and was sentenced to 10 years in prison.

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

Fraudulently Obtained $200,000 and Attempted to Obtain Another $500,000 through a National Science Foundation Small Business Program

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Manoj Kumar Jha, age 47, of Severn, Maryland, today to three years in prison followed by three years of supervised release for wire fraud, mail fraud, falsification of records, and theft of government property in connection with a scheme to fraudulently obtain research grants from the National Science Foundation (NSF) and kickbacks from students’ stipends. Judge Hollander also entered an order requiring Jha to pay $105,726 in restitution.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Allison Lerner, Inspector General at the National Science Foundation.

According to trial testimony, from January 2008 through July 2009, Jha fraudulently obtained $200,000 in grant funds from the National Science Foundation=s (NSF) Small Business Technology Transfer (STTR) program to fund a highway project, and attempted to obtain another $500,000 through the same program. Jha converted the funds to his personal use. For example, Jha made payments on his mortgage and personal credit card and authorized approximately $11,000 in salary payments to his wife, who performed no NSF-related work.

Jha, a full time professor at Morgan State University, incorporated Amar Transportation Research and Consulting, Inc. (ATRC), and was its president and only director. Trial evidence showed that Jha submitted funding proposals on behalf of ATRC to the STTR. The stated purpose of Jha=s proposed project was to enhance current models used by highway planners to optimize horizontal and vertical highway routes, and ultimately, to commercialize the result. In his application for STTR funding, Jha listed himself as the principal investigator and the University of Maryland as the CRI. Under the STTR, the primary employment of the principal investigator must be with the small business at the time of the award; and at least 40% of the research must be performed by the small business and 30% by a collaborating research institution (CRI), as measured by the budget.

Trial evidence was presented that in his applications, Jha falsely represented that: he would secure “release time” or negotiate other leave options with Morgan State University in order to spend time at ATRC working on the highway project; that ATRC had eight employees; and that another Morgan State professor would be working for ATRC as a Senior Scientific Advisor. In fact, Jha remained employed full time as a professor at Morgan State and none of the statements were true. Jha also misrepresented the involvement of the University of Maryland in conducting research on the project and further misrepresented that he had obtained a $100,000 investment from a third party in order to qualify for matching funds from NSF.

On February 15, 2011, an investigator with the Office of Inspector General (OIG) for the NSF sent Jha a letter requesting copies of documents, including a list of all individuals who worked on the highway project and their time sheets, and the company=s expenditure ledger detailing all budget categories, as part of a proactive OIG review of ATRC’s compliance with laws, regulations, and conditions in connection with the NSF grant. On March 11, 2011, Jha provided, through his attorney, biweekly, signed time sheets purportedly maintained by Jha for a research scientist who worked on the highway project from October 1, 2008 until September 8, 2009. The time sheets were created by Jha only after receiving the OIG letter, and in such a way as to give the false appearance that the time sheets had been maintained and signed contemporaneously with the research scientist’s work. Jha also provided a copy of ATRC’s expenditure ledger as of September 10, 2009, in which he entered fictitious research expenses in order to conceal the fact that NSF funds had been converted to Jha’s personal use.

Finally, between March 4, 2008 and June 30, 2012, Morgan State University received federal funds under two subcontracts funded by the U.S. Department of Defense. Jha served as Morgan State’s Principal Investigator for those contracts and authorized stipend payments totaling approximately $100,000 to Morgan State University students working on those contracts. Trial evidence showed that between July 25, 2009 and July 24, 2010, Jha told some students who received stipend payments that they had to return a portion of the stipend funds to him, offering various false and misleading reasons. Some students returned a portion of their stipend to Jha, which Jha then used to pay personal expenses. The evidence showed that approximately $36,000 in stipend funds returned to Jha by Morgan State University students were deposited into Jha’s personal bank account

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

United States Attorney Rod J. Rosenstein thanked the National Science Foundation, Office of Inspector General for its work in the investigation and thanked the Department of Transportation Office of Inspector General for its assistance. Mr. Rosenstein praised Assistant U.S. Attorney Martin J. Clarke and Special Assistant U.S. Attorney Fara Damelin, Investigative Attorney with the Office of Inspector General for the National Science Foundation, who prosecuted the case.

Baltimore, Maryland – Former correctional officer Derrick Jones, age 41, of Baltimore, pleaded guilty today to participating in a racketeering conspiracy that included the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Correctional officer Aisha Fraction, age 26, of Baltimore, pleaded guilty to the same charge on August 27, 2014.

On August 27, 2014, Judge Ellen L. Hollander sentenced BGF member and inmate Frederick Morrison, age 30, also of Baltimore, to five years in prison, consecutive to the state sentence he is currently serving, followed by three years of supervised release, for the racketeering conspiracy.

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

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

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

Jones and Fraction were employed as correctional officers (COs) at the Baltimore City Detention Center. Jones and Fraction admitted that they smuggled contraband, including prescription pills, marijuana, and cellular phones, into BCDC for further distribution by inmates who were BGF members, such as Tavon White and Steven Loney. At times, other correctional officers helped Jones and Fraction to smuggle the contraband into the prison. Fraction had a personal relationship with at least one BGF inmate and was aware of other inmates and COs who were involved in smuggling and in sexual relationships. The defendants knew that by smuggling such contraband into BCDC, they furthered the racketeering enterprise of BGF.

According to his plea agreement, Morrison is a member of BGF and was in pretrial custody at BCDC from 2012 to 2013. During that time, Morrison was involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco, marijuana and other drugs, through the services of COs, who received payments, gifts or a share of the profits. Morrison had a sexual relationship with at least one of the COs involved in contraband trafficking. Morrison and his closest BGF allies frequently used various people to obtain contraband outside the prison, hold it or deliver it to COs for smuggling. Morrison also helped conceal contraband from prison officials at BCDC who would conduct periodic searches for contraband.

U.S. District Judge Ellen L. Hollander scheduled sentencing for Jones and Fraction, on January 9, 2015 and December 5, 2014, respectively. The defendants face a maximum penalty of 20 years in prison for the racketeering conspiracy.

Co-defendant Raylanair Reese, age 32, of Baltimore, is scheduled for a rearraignment on Friday, August 29, 2014, and several other defendants are scheduled for rearraignment next week.

To date, twenty-six of the 44 defendants charged in the conspiracy have pleaded guilty, including 16 correctional officers. One defendant has died. Trial is scheduled to begin November 17, 2014 for the remaining defendants.

U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.

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

Prostituted a 14 Year Old Female

Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Kenneth Ronald Robinson, age 52, of Baltimore, today to 12 years in prison, followed by 25 years of supervised release, for sex trafficking involving a 14 year old girl. On August 26, 2014, Judge Bennett sentenced co-defendant Eric Evans, age 35, of Baltimore, to 10 years in prison, followed by 15 years of supervised release, for the same charge.

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

According to the guilty pleas, on the evening of June 17, 2013, Maryland Child Exploitation Task Force members recovered a 14 year old girl from a motel on Joppa Road in Baltimore. The victim was located after law enforcement viewed a picture of her on a known Internet web site that advertises for prostitution, and called the number on the advertisement. Undercover officers made a “date” for prostitution with victim, which led them to her location.

Subsequent interviews of the victim revealed that at Robinson’s direction, the victim had been staying with co-defendants Cheralyn Crawford and Craig Judy and had been performing commercial sex acts from that hotel for approximately four days. At Robinson’s request, Crawford took sexually explicit pictures of the victim using co-defendant Jeffrey Clark’s cell phone. Crawford and Judy posted those photos in ads on a website. Judy used the prostitution earnings of both the minor victim and Crawford to pay for the ads. A subsequent search of Clark’s cell phone revealed that it contained photos of both the victim and Crawford used on the website’s sex ads. At Robinson’s direction, Clark transported the victim to motels, stores and restaurants in the Towson, Maryland area. One of the motel rooms used by the victim, Crawford, and Judy was registered to Clark.

The victim also advised that Robinson introduced her to Evans so that she could engage in prostitution at Evans’ direction. The victim told law enforcement that Evans posted sex ads for the victim on a website using photos he had taken of the victim. The victim also stated that Evans kept the money she earned from prostitution. At least one of the victim’s sex ads was posted on June 7, 2013, from an address used by a motel in Towson where records show that Evans had paid for a room from June 3 to 8, 2013.

Co-defendants Cheralyn Crawford, a/k/a “Rachel,” age 25, of Baltimore, Jeffrey Clark, age 43, of Nottingham, Maryland; and Craig Judy, age 29, of Baltimore, previously pleaded guilty to using the Internet to promote a minor to engage in prostitution. Judge Bennett sentenced Jeffrey Clark to 46 months in prison, Craig Judy to 3 years in prison and scheduled Cheralyn Crawford’s sentencing for September 24, 2014 at 3:00 p.m.

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

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

United States Attorney Rod J. Rosenstein praised the 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 United States Attorneys Ayn B. Ducao, P. Michael Cunningham and Rachel M. Yasser, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Steven Vondell Williams, age 48, of Washington, D.C., today to 27 years in prison for conspiracy to interfere with interstate commerce by robbery, interference with interstate commerce by robbery, possession and brandishing a firearm during a crime of violence and being a felon in possession of a firearm. Judge Titus imposed today’s sentence consecutive to a 27 year sentence that Williams is currently serving for murder committed in the District of Columbia.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Assistant Director in Charge Timothy A. Gallagher of the Federal Bureau of Investigation - Washington Field Office.

According to evidence presented during the five day trial, on May 3, 2011, Williams and co-defendant Alton May entered the 7-11 store located at 8200 Martin Luther King Jr. Highway in
Glenarden, Maryland. They pointed handguns at an employee of a Loomis Armored vehicle who was carrying money to refill the automated teller machine located in the store and demanded money. The employee gave the gunmen the money bag. One of the gunmen also took the Loomis employee’s handgun.

Williams and May fled in a vehicle and drove to May’s residence in Washington, D.C. On the way, they removed the cash from the Loomis bag and threw the bag into a dumpster. A GPS tracking device, which was in the money, permitted law enforcement to track the money from the store to the dumpster and then finally to May’s residence. Once inside the residence, Williams and May discovered the tracking device in the cash. They destroyed the tracking device. After throwing the cash, three handguns and two baseball caps used in the robbery onto the roof of the building, Williams and May jumped out of the apartment window and fled. From the rooftop of May’s apartment building, officers recovered approximately $30,000 in cash, three handguns, including the one stolen from the Loomis employee, and the baseball caps. Inside the apartment, officers recovered pieces of the broken GPS tracker.

Williams and May were identified through DNA recovered on the two ball caps and arrested.

Alton May, age 50, of Washington, D.C., previously pleaded guilty to his participation in the robbery, was sentenced to 300 months in prison and ordered to pay $180 in restitution.

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