District of Maryland

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Deandre Kelly, age 32, of Washington, D.C., today to 236 months in prison, followed by five years of supervised release for possession with intent to distribute narcotics, escape, and for carrying and using a firearm in relation to a drug trafficking crime and a crime of violence. Judge Bennett ordered that 8 years of Kelly’s sentence will be served consecutive to the 15 year sentence he is currently serving for a conviction in the District of Columbia.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Maryland U.S. Marshal Johnny Hughes; District of Columbia U.S. Marshal Edwin D. Sloane; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Garrett County Sheriff Robert E. Corley; Garrett County State’s Attorney Lisa Thayer Welch; and Maryland Attorney General Douglas F. Gansler.

According to Kelly’s plea agreement, on July 15, 2009, Kelly pleaded guilty in U.S. District Court in the District of Columbia to conspiracy to distribute and possess with intent to distribute PCP, and possession with intent to distribute crack cocaine. Kelly was released pending sentencing. When Kelly failed to appear for sentencing, a warrant was issued for his arrest. Kelly remained a fugitive until January 22, 2011.

On January 22, 2011, Kelly was the front seat passenger in a vehicle that was stopped for speeding in Garrett County by a Maryland State Trooper. As the driver and back seat passenger got out of the vehicle, Kelly jumped into the driver’s seat and took off speeding. Troopers pursued Kelly for seven miles until he crashed the vehicle. Although he gave a false name, Kelly was identified by his fingerprints. A search of the vehicle recovered a pound of marijuana on the front passenger side floor, where Kelly had been seated, and a loaded .40 caliber handgun, with an obliterated serial number, located under the rear portion of the driver’s seat. In addition, 47 grams of crack cocaine and a small amount of marijuana were recovered from Kelly’s pants.

Kelly was initially taken to the Garrett County Memorial Hospital. On January 23, 2011, Kelly was transferred to the Garrett County Detention Center to be held for an initial appearance the next day. At about 8 p.m. that evening, Kelly brandished a firearm, assaulted the officers working in the detention center, and escaped. A car was waiting for him outside the jail and he was taken to his brother’s home in Prince George’s County, Maryland. Subsequent investigation showed that Kelly had made several phone calls from the detention center to plan his escape.

Kelly was arrested again on May 2, 2011, in Lynchburg, Virginia.

United States Attorney Rod J. Rosenstein commended the Maryland and Washington, D.C. U.S. Marshals Service, Maryland State Police, Garrett County Sheriff’s Office, Garrett County State’s Attorney’s Office, and the Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Andrea L. Smith and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Shared Child Pornography Files Using Neighbor’s Wireless Connection to
Avoid Detection by Law Enforcement

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Kevin Francis Kelley, age 45, of Halethorpe, Maryland, today to nine years in prison, followed by 20 years of supervised release, for distribution of child pornography. Judge Hollander ordered that upon his release from prison, Kelley 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). Judge Hollander also ordered Kelley to pay restitution of $3,000.

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

According to his plea agreement, Kelley was sharing child pornography using a file sharing program he downloaded from the internet. On October 13, 2013, an undercover Baltimore County Police detective downloaded a video file Kelley was sharing that depicted a prepubescent child engaged in sexually explicit conduct. Investigation revealed that Kelley was using a neighbor’s IP address, which he was able to access because he had helped them set up the password for their wireless router. Kelley admitted that he used his neighbor’s wireless connection to avoid detection by law enforcement. Kelley further admitted that he had been collecting child pornography for over 10 years and possessed “thousands” of child pornography images and videos that were saved on his computers and hard drives. Kelley advised law enforcement that he categorized his child pornography in various ways to include by sex act, age of child and name of child.

A preliminary forensic analysis of just one computer and hard drive of Kelley’s three computers and four external hard drives contained over 63,000 image files and 950 video files of child pornography, including prepubescent minors and images depicting sadistic or masochistic conduct or other depictions of violence.

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

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

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Jeffery Louis Adams, age 35, and Antonio Lamont Gaithers, age 33, both of Washington, D.C., today to 12 and 14 years in prison, respectively, each followed by five years of supervised release, for two counts of robbery and using a gun during a robbery. Judge Titus further ordered that Adams to pay restitution of $209,750 and Gaithers pay restitution of $241,000.

The sentences were 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; Acting Assistant Director in Charge Timothy A. Gallagher 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; and Maryland Attorney General Douglas F. Gansler.

According to their plea agreements, on October 7, 2011, Gaithers and co-conspirator Davon Williams, both armed with handguns, entered the cash office in a Walmart in Hyattsville, Maryland and demanded money from employees. The gunmen stole $140,000 and ran outside where a co-conspirator was waiting in a getaway vehicle. The robbers sped away.

On January 16, 2012, Gaithers, armed with a handgun, confronted an employee of Garda Cash Logistics who was carrying a bag containing $88,659.03 in cash and $13,337.90 in checks from the Bowie Walmart store to a Garda armored transport vehicle parked in front of the store. Gaithers pointed his handgun at the Garda employee and demanded the money. After the Garda employee complied, Gaithers, carrying the money bag, ran to a stolen van occupied by Adams, Williams, and others. The van sped away and was located shortly thereafter. Williams’ cell phone was found inside the van.

Adams also admitted that he participated in two other robberies: the armed robbery of a bank in Lexington Park, Maryland, stealing $109,750; and the robbery of a credit union in Clinton, Maryland, stealing $100,427.

In addition to actively participating in these robberies, Adams helped plan and prepare for these crimes. This included stealing vehicles used during the robberies, communicating with co-conspirators, surveillance of the business before the robberies, being present at the robberies as a look-out, and assisting in the escapes.

Davon Stephon Williams, age 23, of Washington, D.C, previously pleaded guilty to two counts of robbery and using a gun during a robbery and was sentenced to 162 months in prison. Judge Titus ordered that Williams pay restitution of $242,248.53.

United States Attorney Rod J. Rosenstein commended the members of the FBI’s Cross Border Task Force and the Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau, 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.

Baltimore, Maryland – Lamont Bonds, age 26, of Gaithersburg, Maryland, pleaded guilty on August 21, 2014, to armed robbery and brandishing a firearm in furtherance of a crime of violence, in connection with four restaurant robberies.

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

According to Bond’s plea agreement, between July 22 and November 25, 2012, Bonds and Marvel Alegria committed armed robberies at four Chipotle restaurants. Alegria had been the manager of the Chipotle in Mt. Airy, Maryland, prior to her termination on July 17, 2012, for violating company policies. Alegria began discussing robbing the Chipotle restaurant with Bonds, which whom she was having a relationship. Alegria advised Bonds of the best time to commit the robbery, how to access the restaurant, where the safe was located and that the manager had access to the safe. On July 22, 2012, Bonds and Alegria recruited Norman Guifarro to participate in the robbery, which was planned for 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 remainder of the employees on the floor in the kitchen area. Bonds and Guifarro fled after forcing the employees into a bathroom. Bonds and Guifarro stole $5,000 in cash, which they later divided 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 in cash 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.

Bonds faces a maximum penalty of 20 years in prions for the robbery and a minimum of seven years, consecutive to any other sentence, and up to life in prison, for brandishing a firearm in furtherance of a crime of violence. U.S. District Judge Richard D. Bennett scheduled Bonds’ sentencing for November 24, 2014, at 11:00 a.m.

Marvel Alegria, previously pleaded guilty to her role in the conspiracy and is scheduled to be sentenced on September 23, 2014 at 3:00 p.m. Norman Guifarro pleaded guilty to the Mt. Airy robbery in Carroll County Circuit Court and is awaiting sentencing,

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

Conspirators Targeted Elderly Men and Women Found on Online Dating Websites

Greenbelt, Maryland - A federal grand jury has indicted Krist Koranteng, age 32, of Burtonsville and Laurel, Maryland, on conspiracy, mail fraud, wire fraud and money laundering charges, in connection with a scheme to defraud elderly individuals which involved the conspirators pretending to be romantically interested in the victims in order to cause the victims to wire, deposit, and mail money to Koranteng. The total losses to the victims as a result of the scheme are alleged to be over $1.1 million. The indictment was returned on August 11, 2014, and unsealed today upon the arrest of the defendant.

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

The 11 count indictment alleges that between September 2012 and February 2014, Koranteng and others executed a scheme in which the conspirators searched online dating websites, such as Chemistry.com and Match.com, to initiate romantic relationships with elderly men and women, in order to obtain money from those individuals. Members of the conspiracy used phone calls, emails, and text messages to form romantic relationships with the victims.

According to the indictment, the conspirators used a number of false stories and promises to convince the victims to give money to the members of the conspiracy, including: stories about investing in fake gold that required payments for shipping and storage; fictitious sick family members who needed money; fake hospital bills; and fake plane trips to visit the victims. Koranteng and members of the conspiracy convinced the victims to wire money into accounts controlled by Koranteng, or to mail checks to a corporation created and controlled by Koranteng.

To conceal the scheme from the victims, the conspirators created false documents, including false certificates of origin certifying the existence of gold bars, and false documentation creating the impression that the gold bars were being stored at a safe house for a fee.

Koranteng and other members of the conspiracy disbursed the money received from the victims by transferring money to other accounts, by withdrawing sums of money, and by writing checks to other individuals.

Koranteng faces a maximum sentence of 20 years in prison for each of eight counts of mail and wire fraud; and a maximum of 10 years in prison for each of three counts of money laundering. Koranteng had his initial appearance at 2:00 p.m. today in U.S. District Court in Greenbelt. Koranteng is detained pending a detention hearing scheduled for August 25, 2014, at 11:30 a.m.

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 U.S. Secret Service and Montgomery County Police Department for their work in the investigation, and thanked the Ohio Attorney General’s Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and David I. Salem, who are prosecuting the case.

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

Greenbelt, Maryland – Julius Valentine Williams, age 61, of College Park, Maryland pleaded guilty today to aiding and assisting in filing false tax returns, filing false tax returns, wire fraud and aggravated identity theft. Williams’ conduct resulted in a tax loss to the government of at least $1 million.

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.

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

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

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

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

As a result of the fraudulent tax returns prepared by Williams for his clients, and his own fraudulent returns, the total tax loss to the government is at least $1 million. As part of his plea agreement, Williams and the government have agreed to recommend that the Court order restitution in the amount of $1 million.

Williams faces a maximum sentence of three years in prison for aiding and assisting in filing false tax returns, and for filing false tax returns; a maximum of 20 years in prison for wire fraud; and two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Paul W. Grimm scheduled sentencing for November 25, 2014 at 1:00 p.m.

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

Robbed Businesses and Homes in Maryland, Virginia, West Virginia and Pennsylvania

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced William Metcalf, age 39, of Baltimore, today to 30 months in prison, followed by three years of supervised release, for conspiracy to commit bank burglary. Judge Motz also entered an order requiring Metcalf to pay a money judgment of $75,000 as forfeiture.

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

Metcalf admitted that he conspired with others to commit commercial burglaries in Maryland, Virginia, West Virginia, and Pennsylvania. The conspirators stole cash, money orders, stamps, silver bars, jewelry, cigarettes, lottery tickets, prescription drugs, food, beverages, safes, laptop computers, cell phones, electronics, vehicles and other valuable items from gas stations, convenience stores, banks, credit unions and other commercial establishments. The conspirators often stole or attempted to steal cash from ATMs.

The conspirators usually cut power lines, telephone lines, cables and other wires before entering a business. They used vise grips, sledgehammers, chopsaws, grinders and blow torches to enter the business, and then often waited – for several minutes or sometimes up to several hours – before ransacking the business of its valuable items. Metcalf agreed that he committed, or attempted to commit, commercial burglaries with one or more of his coconspirators, and that the loss to those businesses, in terms of both property damage and stolen items, exceeded $250,000. For example, Metcalf, along with at least one conspirator, participated in a commercial burglary at Steel & Wire Products Company, on West Patapsco Avenue in Baltimore. The conspirators drove a truck through the fence surrounding the lot. They then cut the telephone lines and pulled several cameras off the walls. Three safes were taken, inside of which were three handguns. The conspirators took approximately $22,256 in cash

Metcalf and at least one other conspirator robbed a residence in Greenbelt on January 31, 2012, stealing a five hundred pound floor safe which contained $1,300 cash. On June 15, 2012, Metcalf and at least one coconspirator committed a home invasion in Baltimore. One of the conspirators, holding roses and posing as a flower delivery man, knocked on the 62-year-old female victim’s front door. After the victim began opening the door, the conspirator forced his way into the residence and held a gun to her head. The conspirator then placed the victim’s hands in flex cuffs and took her to the upstairs office where her valuables were kept. The conspirator then put flex cuffs on the victim’s ankles and washed her wrists and ankles with water to remove identifiable prints. The conspirators stole jewelry, collectible coins, and approximately $15,000 in cash.

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

Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Andrea L. Smith, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland - A federal grand jury today indicted Cesar Raphael Barretto, age 43, of Severn, Maryland, on charges of wire fraud, in connection with a scheme embezzle over $400,000 from the company where he worked.

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

According to the indictment, Barretto was a territory manager for U.S. Foods, Inc., a company that distributed food and supplies to restaurants, hospitals, hotels, and other businesses. Barretto worked out of the U.S. Foods office in Severn, where he was responsible for helping customers place orders for U.S. Foods products. Barretto transmitted customer orders to the company electronically. The orders were then sent to a regional distribution center where they were picked up by the customer, or picked up and delivered to the customer by Barretto. In addition, Barretto tracked the sales of products in his region and was responsible for collecting the balances due on customers’ invoices. When Barretto received a payment from a customer, he deposited it into the U.S. Foods bank account and emailed the company a collection report, which credited the customer’s account.

The nine count indictment alleges that from June 2010 through July 2012, Barretto defrauded one of U.S. Food’s customers, American Pollo Restaurant Group, by diverting over $400,000 in payments he received on their account to pay for cases of food that Barretto ordered for himself under the account of another U.S. Foods customer, a bakery located in Langley, Maryland, without that customer’s knowledge.

Specifically, the indictment alleges that Barretto ordered cases of food from U.S. Foods for his own personal use, using the bakery customer’s account. According to the indictment, Barretto paid for the unauthorized purchases by diverting a portion of the payments received from American Pollo to the bakery customer’s account. The indictment alleges that in collection reports emailed to U.S. Foods, Barretto falsely listed some of American Pollo’s payments as credits to the bakery customer’s account, thereby paying off the outstanding balances created in that account by Barretto’s unauthorized purchases. Barretto then allegedly sold the products he obtained with the embezzled funds to a restaurant in Laurel, Maryland, in exchange for cash.

The indictment alleges that Barretto paid for more than 300 unauthorized food purchases from U.S. Foods by creating and submitting false collection reports that transferred approximately $414,313.01 in collection payments from American Pollo to the bakery customer’s account. The indictment seeks the forfeiture of the proceeds of the scheme, which is at least $414,313.01.

Barretto faces a maximum sentence of 20 years in prison for each of nine counts of wire fraud. An initial appearance for Barretto has not yet been.

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 U.S. Secret Service for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.

Robbed Seven Businesses and Employees; Attempted to Rob a Take-Out Restaurant

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Duane James, age 53, of Germantown, Maryland today to 151 months in prison for five counts of robbery.

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

According to his plea agreement, on seven occasions from January 21 to February 17, 2013, James robbed Maryland businesses and their employees, each time wearing a ski mask and pointing what appeared to be a gun at the store clerks. In Silver Spring, James stole $50 and $10,000 worth of jewelry at The Gold Spot store; $110 from the store register and $100 from the clerk’s wallet at the AT&T store; and $3,000 from the cash drawer and lottery proceeds at the Bel Pre Beer & Wine store. In Rockville, James stole $1,500 from the register at the Shell Gas Station. In Gaithersburg, James stole $400 from the store register and $5 from the clerk at the Walnut Hill Liberty Gas Station; $300 from the cash register and $200 from the clerk at Twinbrook Shell Gas Station; and $1,043 from the register and cigarettes at the Exxon Gas Station.

Also, on February 17, 2013 and prior to robbing the Exxon gas station that same day, James pointed what appeared to be a gun at a clerk at a take-out restaurant in Gaithersburg, demanding cash from the register. The clerk did not move or open the drawer. James left the store.

United States Attorney Rod J. Rosenstein praised the ATF and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Daniel C. Gardner and Adam Ake, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Larayne Whitehead, age 35, of Clinton, Maryland, today to 18 months in prison followed by five years of supervised release for conspiring to commit wire fraud in connection with a scheme to defraud businesses which supplied goods under government contracts. Judge Grimm also entered an order that Whitehead forfeit and pay restitution of $2,361,042.11 and a car.

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

According to her plea agreement, from December 2007 to May 2013, Whitehead and her co-conspirators used at least 15 businesses in Maryland, Delaware, Georgia, Nevada, North Carolina and Tennessee which they incorporated to bid on contracts to provide goods – such as books, snowmobiles, plants and paint – to government agencies. Most of the contracts were awarded using an online marketplace to compete for federal contracts. The conspirators often submitted extremely low bids to secure the contracts. Once awarded the contracts, Whitehead enticed victim businesses to supply the goods required by contract and promised to pay these subcontractors after the government paid Whitehead. Whitehead, however, fraudulently retained the government payments for her own personal benefit and did not pay the subcontractors.

The conspirators typically operated under a particular business name for six to 12 months until the business was either disqualified from the online marketplace or was otherwise burdened with lawsuits or liens. The conspirators then continued the scheme under a newly-registered business name.

As a result of the scheme, Whitehead and co-conspirator Christopher Johnson received at least 144 bank deposits from governmental agencies totaling approximately $2,321,058.95 which was reasonably foreseeable to Whitehead. The scheme involved between 50 and 250 business victims.

In addition, on June 28, July 16 and August 10, 2010, Whitehead submitted duplicate charges to a government credit card that the Department of Homeland Security had provided to her to pay for goods provided pursuant to a government contract. The resulting loss to the federal government was $39,983.16.

Christopher Johnson, age 36, of Clinton, Maryland previously pleaded guilty to his participation in the scheme. Johnson was sentenced on July 21, 2014 to 18 months in prison and ordered to pay restitution of $426,376.99.

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, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.

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

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Larayne Whitehead, age 35, of Clinton, Maryland, today to 18 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a scheme to defraud businesses which supplied goods under government contracts. Judge Williams also entered an order that Whitehead forfeit $2,393,579 and a car.

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

According to her plea agreement, from December 2007 to May 2013, Whitehead and her co-conspirators used at least 15 businesses in Maryland, Delaware, Georgia, Nevada, North Carolina and Tennessee which they incorporated to bid on contracts to provide goods – such as books, snowmobiles, plants and paint – to government agencies. Most of the contracts were awarded using an online marketplace to compete for federal contracts. The conspirators often submitted extremely low bids to secure the contracts. Once awarded the contracts, Whitehead enticed victim businesses to supply the goods required by contract and promised to pay these subcontractors after the government paid Whitehead. Whitehead, however, fraudulently retained the government payments for her own personal benefit and did not pay the subcontractors.

The conspirators typically operated under a particular business name for six to 12 months until the business was either disqualified from the online marketplace or was otherwise burdened with lawsuits or liens. The conspirators then continued the scheme under a newly-registered business name.

As a result of the scheme, Whitehead and co-conspirator Christopher Johnson received at least 144 bank deposits from governmental agencies totaling approximately $2,321,058.95 which was reasonably foreseeable to Whitehead. The scheme involved between 50 and 250 business victims.

In addition, on June 28, July 16 and August 10, 2010, Whitehead submitted duplicate charges to a government credit card that the Department of Homeland Security had provided to her to pay for goods provided pursuant to a government contract. The resulting loss to the federal government was $39,983.16.

Christopher Johnson, age 36, of Clinton, Maryland previously pleaded guilty to his participation in the scheme. Johnson was sentenced on July 21, 2014 to 18 months in prison and ordered to pay restitution of $426,376.99.

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 - chaired by Assistant Attorney General for the Criminal Division Lanny A. Breuer - 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, demonstrate the Department of Justice=s commitment to helping ensure the integrity of the government procurement process.

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

Investigation by FBI’s Cross Border Task Force Results in the Conviction of Two Defendants to Date in a Violent Robbery and Carjacking

Greenbelt, Maryland - Tonnie Floyd, age 22, of Washington, D.C., pleaded guilty today to robbery, discharging a gun during the robbery and carjacking, in connection with an armored car robbery and a carjacking in which a victim was shot in the face. Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 23, also of Washington, D.C., pleaded guilty to the same offenses on Monday, August 11, 2014.

The guilty pleas were 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; Acting Assistant Director in Charge Timothy A. Gallagher 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; and by Chief Alan Goldberg of the Takoma Park Police Department.

According to their plea agreements, on October 26, 2012, Floyd, Marcellus Freeman and another conspirator, 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 he 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 face, causing permanent and life-threatening bodily injury. They took the vehicle and drove into the District of Columbia, where they set the vehicle on fire.

Floyd faces a maximum sentence of 20 years in prison for armed robbery; life in prison for using and discharging a weapon during a crime of violence; and 25 years in prison for carjacking. Freeman and the government have agreed that if the Court accepts his plea agreement, Freeman will be sentenced to between 241 months and 30 years in prison. Chief U.S. District Judge Deborah K. Chasanow scheduled Floyd and Freeman’s sentencings for November 25, 2014 and December 11, 2014, respectively.

Co-defendant Anthony Terrell Cannon, age 25, of Washington, D.C. was charged by indictment for alleged offenses arising from the robbery and is scheduled to go to trial on September 2, 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 and the Takoma Park Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.

Baltimore, Maryland – Charles Hufton, age 26, formerly of Cockeysville, Maryland, pleaded guilty today to conspiracy to commit sex trafficking of a minor.

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

According to his plea agreement, in January of 2013, Hufton, a doorman at a nightclub in Baltimore, and co-defendant Rodney Hubert, a registered sex offender in Maryland, recruited girls, some of whom were underage, to engage in prostitution.

Hubert sought a 19-year-old associate to work as a prostitute beginning in December 2012. Hufton and Hubert offered her a commission to recruit a 16-year-old Baltimore resident to perform prostitution. Hubert invited the 16 year old to reside with him. The 16 year old girl had sex with customers on at least five occasions in a Parkville house provided by Hubert, and on at least seven occasions at other locations.

Hubert offered to pay the 16 year old girl $400 dollars to take provocative photos of her wearing lingerie. She posed for the photos, although Hubert never paid her the promised fee. Hufton and Hubert did, however, use these photos to post online prostitution ads. Hufton used his smartphone and email address to create and post online ads for the females’ commercial sex.

Hufton and Hubert advertised online that the 16 year old would prostitute at both the Parkville house, as well as other locations of prospective clients. Hufton drove the prostitutes, including the 16 year old, to “out-call” locations and collected a portion of their earnings.

As part of his plea agreement, Hufton 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).

Hufton faces a maximum sentence of life in prison. U.S. District Judge George L. Russell III scheduled sentencing for October 24, 2014, at 2:00 p.m.

Rodney Hubert, a/k/a “Noah,” age 39, of Parkville, Maryland previously pleaded guilty to sex trafficking of a minor. Hubert and the government have agreed that if the Court accepts the plea agreement, Hubert will be sentenced to between 168 and 262 months in prison followed by a lifetime of supervised release. Judge Russell scheduled Hubert’s sentencing on September 11, 2014 at 9:30 a.m.

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

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

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

Stole Merchandise from Retail Stores and Exchanged the Stolen Items for Gift Cards

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Steven Riley, age 50, of Baltimore, today to two years in prison, followed by three years of supervised release, for wire fraud conspiracy and money laundering. Judge Russell also entered an order requiring Riley to pay restitution of $400,000.

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

According to his plea agreement, from January 2009 to February 2013, Riley, Melissa Perry, Deanna Lynch, Mohamed Al-Omeri, Mark Brunelle, and others, were “boosters.” A “booster” is a person who steals for a living, then sells the stolen items to someone else, usually for a discounted price. Boosters often work in groups, as in this case.

Riley and others stole merchandise from large retail stores throughout Baltimore, Anne Arundel, Prince George’s, Howard and Harford Counties in Maryland, as well as Virginia, Pennsylvania and Delaware. Riley and the other boosters then returned the stolen items in exchange for store gift cards. They used modified Maryland driver’s licenses that contained the personal identifier information of actual persons, without those persons’ knowledge, when returning the stolen items without a receipt. Sometimes the boosters paid neighborhood drug addicts to borrow their licenses for theft/return sprees, for which they paid the addicts between $20 and $25. From January 2011 until April 2012, Riley made 185 fraudulent returns to Home Depot stores in Maryland, causing an actual loss of $37,033.51. These were transactions during which Riley used a modified version of his actual Maryland driver’s license and does not account for fraudulent returns that were executed using “borrowed” driver’s licenses.

Co-conspirator John Tadros owned Busy Bees Convenience Mart located at 335 South Monroe Street, and J&J’s Bar and Liquor located at 1801 Ramsay Street, both in Baltimore. Tadros bought the fraudulently obtained gift cards from the boosters for 50% of the card’s value. Tadros told the boosters to target specific stores at specific locations, and advised them of the best days to steal merchandise and the manner by which they modified their Maryland driver’s licenses. Tadros also collected the welfare benefit debit cards of some of the boosters which he held as collateral if he deemed that the boosters owed him money, and returned the benefit cards to the boosters for 50% of the card’s value. Tadros used the gift cards to purchase personal home goods, and supplies for his businesses and rental properties.

On February 27, 2013, the U.S. Secret Service executed a search warrant and seized 32 fraudulently obtained gift cards from Tadros’ home. Agents also seized 329 retail store receipts from Busy Bee, for purchases made with fraudulently obtained gift cards.

The actual loss to retailers in Maryland caused by the scheme is at least $401,326.12.

John Tadros, age 45, of Baltimore, Melissa Perry, age 34; Deanna Lynch, age 44; Mohamed Al-Omeri, age 39; and Mark Brunelle, age 47, previously pleaded guilty to their participation in the scheme. Tadros was sentenced to 58 months in prison and ordered to pay $400,000 in restitution. Brunelle was sentenced to 51 months in prison and ordered to pay over $210,000 in restitution. Perry and Lynch were sentenced to 30 months and 18 months in prison, respectively, and were ordered to pay restitution of $401,326.12. Al-Omeri was sentence to one year of probation and ordered to pay restitution of $35,000.

United States Attorney Rod J. Rosenstein praised the U.S. Secret Service - Baltimore Field Office for its work in the investigation, and commended the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorney Mark W. Crooks, who prosecuted the case.

Cherry Hill Area Shootings and Murders Attributed to Rival Drug Gangs

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Davon Martin, age 26, of Baltimore, Maryland today to 35 years in prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise, related to his drug dealing and violence in the Cherry Hill section of Baltimore.

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

“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”

According to his plea agreement, from at least 2003 to 2013, Davon Martin was a member of a group known as “Little Spelman” in the “down the hill” area of Cherry Hill. This group committed acts of robbery, homicides, non-fatal shootings and drug distribution, to include crack cocaine, heroin, cocaine and marijuana. From 2009 to 2011, Martin and Dewayne Jones, another member of Little Spelman, operated a crack cocaine distribution “shop” out of an apartment located on Round Road. Martin and others sold at least two kilograms of crack cocaine from the apartment on Round Road. On at least one occasion, while in possession of a firearm, Martin robbed an individual who had sold him some bad cocaine. Martin admitted he has also committed other robberies related to his drug distribution.

Martin admitted that on January 20, 2011, he shot and killed Rhidell Price, a member of a rival group operating in Cherry Hill known as “Up Da Hill,” in the rear of 2900 Denham Circle. After receiving a call that Price was in the area, Jones drove Martin to Denham Circle where Rhidell Price was getting out of a vehicle parked on the street. Martin got out of the vehicle and began shooting at Price, chasing after Price and ultimately killing him. Martin killed Price in retaliation for Martin and Jones being shot at by Up Da Hill members a few days earlier. Dewayne Jones was subsequently shot and killed on August 28, 2011.

Two days after Martin killed Price, on January 22, 2011, Little Spelman associate Harry Hicks was shot and killed by Up Da Hill members in retaliation for Price’s murder. On April 9, 2011, Martin shot and killed Up Da Hill member Dwight Taylor at a barbershop on W. Saratoga Street in Baltimore, in retaliation for Hicks’ murder. During the murder, Martin was wearing a black jacket and a black mask which he discarded in a nearby dumpster on Clay Street. Both the mask and jacket were recovered by police from the dumpster. The DNA recovered from both the face mask and the jacket matched Martin’s DNA. A ballistics comparison of the .45 caliber firearm that Martin used to kill Taylor revealed that it was the same gun used on January 28, 2011 by Dominic Hope, another Little Spelman associate, and the former leader of Little Spelman, to shoot Up Da Hill member Antione White, who was leaving the funeral of Rhidell Price. Dominic Hope was subsequently shot and killed on January 20, 2012.

Earlier this year, Martin pleaded guilty in Baltimore City Circuit Court to first degree murder and use of a firearm in a crime of violence for the fatal shooting of Dwight Taylor. Martin is scheduled to be sentenced in that matter on September 12, 2014.

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

Greenbelt, Maryland - A federal grand jury has indicted four individuals in connection with a scheme to steal over $1 million from a consulting company. The following individuals face conspiracy and wire fraud charges:

Janice McCumbie, age 45, of Marydel, Maryland; Leonard Smedley II, age 35, of Capitol Heights, Maryland; Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania; and
Brian Hooper, age 42, of Woodbridge, Virginia.

The indictment was returned on August 6, 2014, and unsealed today upon the arrest of the defendants.

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

According to the indictment, McCumbie worked for a global consulting business that served clients in various industries and had offices in Maryland and elsewhere. Clients paid large retainers to secure consulting services. The consulting company would issue refund checks to the clients in certain circumstances, including when a client’s retainer exceeded the amount of work that the consulting company actually performed or when the client made duplicate payments to the consulting company. The consulting company assigned the Accounts Receivable group (the AR group) and the Accounts Payable group (the AP group) to handle the refund process. McCumbie worked for the AR group and her duties included coordinating client refunds.

The 11-count indictment alleges that between August 2009 and November 2013, McCumbie created and submitted false documentation to the consulting company’s AP group, falsely representing that refund checks should be issued to Gayleard and Smedley. McCumbie allegedly caused the consulting company to issue at least 39 fraudulent refund checks, totaling, $848,024.48, to Smedley, who was not a client of the consulting company. The indictment alleges that Smedley cashed the fraudulent checks and shared the proceeds with McCumbie and Hooper, who was a former employee of the consulting company. The indictment alleges that McCumbie caused 17 fraudulent refund checks, totaling $217,695.57, to be issued to her niece, Gayleard, who cashed the checks and shared the proceeds with McCumbie.

The indictment seeks forfeiture of at least $1,065,720, believed to be the proceeds of the wire fraud conspiracy.

The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each of 10 counts of wire fraud. Janice McCumby, Leonard Smedley II, and Brian Hooper have all had an initial appearance in U.S. District Court in Greenbelt. Amber Gayleard had her initial appearance in U.S. District Court in the Middle District of Pennsylvania. All four defendants were released under the supervision of U.S. Pretrial Services.

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

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Travis Gaines, age 34, of Baltimore, Maryland, today to 151 months in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine. Judge Quarles also found that Gaines is a career offender based on previous narcotics convictions.

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

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

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

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

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

Conspirators Raped a Prostitute and Stabbed Another Victim to Death

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Ramon Miguel Cerros-Cruz, age 24, of Hyattsville, Maryland today to 10 years in prison, after Cerros-Cruz pleaded guilty today to conspiring to rob a brothel located in a Hyattsville apartment.

The plea agreement and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to his plea agreement, on February 28, 2007, Cerros-Cruz and his co-conspirators went to a brothel located in an apartment in Hyattsville, Maryland, and demanded money. They tied up the brothel doorman, raped a prostitute who worked at the brothel and went through the brothel attempting to find money. The co-conspirators used knives to stab to death another victim who came to the apartment. Cerros-Cruz and his co-conspirators then fled the scene.

Co-defendant Alexsi Lopez, age 26, also of Hyattsville, was indicted on July 15, 2013 on charges arising from the conspiracy and pleaded not guilty on July 26, 2013. Lopez is awaiting trial.

United States Attorney Rod J. Rosenstein praised the HSI Baltimore and Prince George’s County Police Department for their work in the investigation, and thanked Assistant U.S. Attorneys William D. Moomau and Daniel C. Gardner, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Edward Lee, age 43, of Baltimore, Maryland, today to 10 years in prison followed by three years of supervised release for conspiring to interfere with commerce by robbery.

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

According to his plea agreement, on December 1, 2012, Lee and co-defendants Michael Gwaltney and Devan Martin were seen, via the Baltimore Police City Watch camera system, speaking to a man who was entering his vehicle on Carrollton Avenue in Baltimore. The conversation appeared to turn argumentative. The man handed Gwaltney money, while Lee patted him down. Lee had a gun in his hand. Lee and Gwaltney escorted the victim across the street, while Martin rummaged through the victim's vehicle, and removed a briefcase from the trunk. As Lee and Gwaltney entered a dwelling in the block, the City Watch operator saw what appeared to be a gun in Gwaltney’s waistband.

The City Watch operator called for police to respond to the area. Police stopped Martin a half block from the victim’s car with the briefcase. Police located the victim leaving his wife’s hair salon business. The victim explained that two men had taken him into the business and demanded drugs and money. After seeing officers in the block, according to the victim, Gwaltney ordered the victim to leave the business and advise the officers that everything was fine. Eventually, both Lee and Gwaltney left the location and were arrested. The business was searched and officers seized a revolver and clothes worn by Gwaltney as he entered the location. Officers also seized a handgun in the yard next to the business.

Michael Gwaltney, age 39, and Devan Martin, age 41, both of Baltimore, previously pleaded guilty to their participation in the robbery and await sentencing.

United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department, and Baltimore State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Paul Cawley, age 50, of Baltimore, Maryland late yesterday to 15 months in prison followed by three years of supervised release for stealing over $175,000 in social security benefits. Judge Bennett also ordered Cawley to pay restitution of $175,213.70

The sentence 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 - Office of Inspector General, Philadelphia Field Division.

According to Cawley’s plea agreement, Cawley’s mother received benefits under the Social Security Administration’s (SSA) Survivor’s Insurance Benefits Program (Title II Program) between 1990 and her death on September 21, 1997. SSA was not notified of Cawley’s mother’s death and continued to send her benefits to a post office box which Cawley controlled. Cawley admitted that he received the benefit checks and endorsed them for deposit into a joint bank account he had with his mother. From September 21, 1997 through July 3, 2012, when the benefits were terminated, SSA paid a total of $175,213.70 in Title II Program benefits on behalf of Cawley’s mother. Cawley made regular withdrawals from the bank account, including cash withdrawals at ATMs and electronic bill payments, spending substantially all the SSA benefits deposited into the joint account.

United States Attorney Rod J. Rosenstein praised the SSA-OIG for its work in the investigation and thanked Special Assistant U.S. Attorney Paul Nitze, on detail from the Social Security Administration, who prosecuted the case.

Conspired to Violate the U.S. Embargo Against Iran

Greenbelt, Maryland - A federal jury convicted Ali Saboonchi, age 34, a U.S. citizen residing in Parkville, Maryland, today of conspiracy and seven counts of exporting American manufactured industrial products and services to Iran.

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

"This case and trial gave the public a rare view into the lengths Mr. Saboonchi and others like him will go to break the law of this country and aid our foreign adversaries," said Steve Vogt, Special Agent in Charge of the FBI Baltimore Division. “We work every day to keep what may seem like benign technology and ideas created here in America from being used against us. These illegal export cases happen more often than the general public gets to see, and it will impact all of us if these conspirators aren't caught and stopped."

The International Emergency Economic Powers Act authorizes the President of the United States to impose economic sanctions on a foreign country when the President declares a national emergency. In 1995, the President issued a series of executive orders declaring that the actions and policies of the government of Iran constituted a national emergency, and imposed economic sanctions against Iran, to include a trade embargo (the Iran Trade Embargo). In order to implement the Iran Trade Embargo, the U.S. Department of the Treasury promulgated regulations that prohibit the export, sale or supply to Iran of any goods or services from the United States without prior authorization.

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

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

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

Saboonchi faces a maximum sentence of 20 years in prison for the conspiracy and on each of seven counts for illegal export to an embargoed country. U.S. District Judge Paul W. Grimm scheduled sentencing for February 2, 2015, at 1:00 p.m.

Co-defendants Arash Rashti Mohammad, and Mehdi Mohammadi, are citizens and residents of Iran. They were indicted in 2013, along with Saboonchi, on charges arising from the conspiracy, and are currently fugitives.

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

Greenbelt, Maryland – Kadiatu Sahid Kamara, age 50, of Gaithersburg, Maryland pleaded guilty today to mail fraud and aggravated identity theft, arising from a two year scheme in which she wrote herself approximately 118 checks from her employers’ bank account.

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

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

Kamara faces a maximum sentence of 20 years in prison for mail fraud and a mandatory minimum of two years in prison consecutive to any other sentence imposed. Kamara has agreed to forfeit and pay restitution of $431,542. U.S. District Judge George J. Hazel scheduled sentencing for October 14, 2014.

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

Defendants Received Over $1 Million from USDA for Food Stamps Traded for Cash

Baltimore, Maryland – A federal jury convicted Abdulmalik Abdulla, age 37, and Ahmed Mohssen, age 54, both of Baltimore, today on charges of food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash.

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

“Retailers who trade food stamp credits for cash are on notice that federal authorities are on their trail,” said U.S. Attorney Rod J. Rosenstein. “Taxpayers fund the program to provide food for needy recipients, not to turn retail store cash registers into ATM machines.”

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

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

The evidence presented at the four day trial showed that the defendants, who operated Sam’s NY Grocery, a convenience store on North Milton Street in Baltimore, received over $1.5 million in federal payments for transactions in which they did not provide any food, but split the proceeds with food stamp recipients. According to testimony at trial, the defendants exchanged EBT benefits for cash, typically paying half the value of the EBT benefits in cash and keeping the rest for themselves. The testimony at trial also showed that the defendants sold packs of cigarettes to food stamp recipients using their EBT card at twice the value they would normally sell a pack of cigarettes. As a result of the unlawful transactions, the defendants obtained more than $1.5 million in EBT deposits for transactions in which the store did not provide food.

Abdulla and Mohssen face a maximum sentence of 20 years in prison for each of seven counts of wire fraud, and a maximum of five years in prison for each of four counts of food stamp fraud. U.S. District Judge Richard D. Bennett has scheduled sentencing for the defendants on November 14, 2014, at 10:00 a.m.

In separate cases, the 10 convenience store owners or operators indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud. Abdullah Aljaradi, age 52, and Ahmed Ayedh Al-Jabrati, age 56, both citizens of Yemen residing in Baltimore, were each sentenced to two years in prison, and ordered to pay restitution of $1.2 million. Jung Kim, age 52, of Ellicott City, Maryland, was sentenced to 20 months in prison, and ordered to forfeit $95,453.50 and pay restitution of $205,000. Amara Cisse, age 51, of Windsor Mill, Maryland, was sentenced to 27 months in prison and ordered to pay restitution of $654,349.24, and his wife, Fanta Keita was sentenced to two months in prison. John Cunningham, age 55, of Baltimore, was sentenced to two years in prison. Retailer Hyung Cho, age 40, was sentenced to 38 months in prison, and his mother Dae Cho, age 67, was sentenced to 18 months in prison. The Chos were also ordered to forfeit $371,439.21 and pay restitution of $1.4 million. Abdo Mohamed Nagi, age 54, a citizen of Yemen residing in Baltimore, and Kim Man Chu, age 39, of Rosedale, Maryland, pleaded guilty and are scheduled to be sentenced on September 5 and October 10, 2014, respectively, each at 10:00 a.m.

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

Baltimore, Maryland – Michael P. Scudder, age 31, of Reisterstown, Maryland pleaded guilty today to mail fraud in connection with a scheme in which he forged bulk mail forms, allowing him to mail over $1.6 million in bulk mail through the U.S. Postal Service for which postage had not been paid.

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

Scudder owned and operated Precision Solutions, Inc., an Owings Mills-based company engaged in bulk mail marketing. Precision Solutions brought its mail to a U.S. Postal Service mail entry facility, where the mail was weighed and counted to determine the total cost of postage. The Postal Service then debited the cost from Precision Solutions’ advance deposit account.

Precision Solutions then obtained an additional discount on postage by transporting the mail from the mail entry facility to the Postal facility which is closest to the delivery addresses. To do so, Precision Solutions was required to: bring a postage statement to the initial mail entry facility which details the type and weight of the mail, and the total number of pieces and containers in the mailing; and fill out a verification form for each mailing to be transported to the destination postal facility after verification, detailing among other things, the weight of the mail and number of containers. A copy of the verification form is kept at the initial mail entry facility, and the original is provided to Precision Solutions to present to the destination Postal facility as proof of payment. When Precision Solutions transports the mail to the destination Postal facility, it provides the mail and the original verification form to a Postal employee as proof of payment.

According to his plea agreement, Scudder executed his scheme to defraud the U.S. Postal Service by bringing only a small amount of mail to the initial mail entry facility for which a stamped and verified verification form was obtained. Scudder would then modify the stamped, verification form to reflect that a much larger amount of mail had been paid for and was ready for shipment. Scudder and his employees would use the forged verification form to present the larger amount of mail to the destination facility.

Scudder forged at least 120 verification forms, and he or his employees presented the forged forms at several Postal facilities in Maryland, Virginia, Pennsylvania and New Jersey. From January to December 2012, the alterations allowed Precision Solutions to mail a total of over 8,860 trays of mail for which postage had not been paid, resulting in a loss of revenue to the U.S. Postal Service of $1,639,912.89.

Scudder faces a maximum sentence of 20 years in prison and a $250,000 fine. Scudder has agreed to pay restitution of $1,639,912.89. U.S. District Judge Catherine C. Blake scheduled sentencing for November 19, 2014 at 9:15 a.m.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division for its work in the investigation and thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the case.

Recruited At Least Nine Others to Submit the Fraudulent Loan Applications

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Duane Akuffo, age 28, of Bowie, Maryland, today to two years in prison for bank fraud, in connection with a scheme to obtain more than $500,000 in fraudulent car loans from credit unions. Judge Blake also entered an order that Akuffo forfeit $357,356.

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

According to his plea agreement, from June 2010 to August 2012, Akuffo presented automobile loan applications to credit unions which falsely represented that the automobile which the applicant was purchasing was a luxury automobile, and contained false information about the applicants’ income and employment. Akuffo also submitted fraudulent pay stubs, “Used Vehicle Buyers Orders,” and verifications of insurance. Akuffo submitted numerous applications in his own name, but he also recruited at least nine others to submit the loan applications. At least 17 loan applications were submitted, seeking a total of $534,276.

Relying on the materially false representations, the credit unions issued loans totaling $357,356 to the applicants. Once these funds were disbursed to the applicant, a portion of the loan proceeds was given to Akuffo and others involved in scheme. The applicant often made several payments on the purported automobile loan in order to make the loan appear legitimate. Eventually, the applicant would default on the loan, causing a loss to the credit union.

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

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

Planned to Distribute Heroin in Harford County

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Darryl Malloy, age 32, of Bel Air, Maryland today to 12 years in prison, followed by four years of supervised release, for possession with intent to distribute 100 grams or more of heroin. Judge Hollander ordered that Malloy’s federal sentence is to be concurrent to the 20 year sentence, all but eight years suspended, that he is currently serving on unrelated state charges.

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

According to Malloy’s plea agreement, on November 15, 2013, Malloy purchased more than 100 grams of heroin in Towson, Maryland, and transported it to a motel in Edgewood, Maryland, where Malloy was staying. Malloy admitted that he intended to divide the heroin into smaller quantities and package it for distribution.

United States Attorney Rod J. Rosenstein praised the DEA and Harford County Narcotics Task Force for their work in the investigation and thanked Assistant U.S. Attorneys Leo J. Wise and Brooke Carey, who prosecuted the case.

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Keith Dana Steedley, Jr., age 29, of Germantown, Maryland, today to 11 years in prison followed by five years of supervised release for conspiring to rob a business and brandishing a firearm during a crime of violence, in connection with the May 22, 2013 armed robbery of a pizza restaurant.

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

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

While responding to the 911 calls, a Prince George’s County Police officer saw a vehicle matching the description of the getaway car a few blocks from the restaurant. The officer followed the vehicle turn onto a dead end street, and saw Steedley bail out of the passenger side and run into a wooded area. A K-9 search was conducted and Steedley was found hiding in the woods. A search of the area recovered 48 one dollar bills. Victims brought to the scene identified Steedley as the person who robbed them. The shotgun used in the robbery was recovered from the vehicle, along with a starter’s pistol, a money drawer from a cash register, and cash and receipts from the pizza restaurant.

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

Defendant Shipped Hundreds of Kilograms of Cocaine in Hollow Computer Shells from California to Maryland

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Richard Anthony Wilford, age 41, of Baltimore and Elkton, today to 340 months in prison followed by 10 years of supervised release for conspiracy to distribute cocaine. Judge Hollander enhanced Wilford’s sentence upon determining that he is a career offender based on two prior federal drug trafficking convictions.

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

"The Drug Enforcement Administration working in partnership with our law enforcement partners dismantled a drug trafficking organization that distributed very large amounts of cocaine throughout the Maryland metropolitan area,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration – Baltimore District Office. “Wilford ran from law enforcement, but was apprehended. Wilford will not be walking the streets of Maryland for a very long time,” added Tuggle.

According to evidence presented at the five day trial, from 2010 to September 2011, Wilford was a member of a cocaine-trafficking organization in and around Baltimore, Maryland. Wilford and his co-conspirators, including Lawrence Hayes, conspired to obtain large quantities of cocaine from sources of supply in California and ship the cocaine to Maryland. Once in Maryland, Wilford sold the cocaine to his co-conspirators who processed and packaged the cocaine for distribution in the Baltimore metropolitan area.

During the week of May 16, 2011, Hayes and others were arrested. Wilford’s residence was searched and a hollowed-out computer shell, a large cardboard box, and a mold for forming a kilogram of narcotics were seized. A shipment of cocaine destined to Wilford’s address was also intercepted and seized on May 20, 2011. Approximately eight kilograms of cocaine were concealed inside of a hollow computer shell. Moreover, UPS shipping records revealed that in 2010 to 2011, 18 shipments of cocaine were made to Wilford’s residence, including the shipment intercepted by DEA agents on May 20, 2011. Testimony at trial revealed that between November 2010 and May 2011, approximately nine hollowed-out computer shells and their respective shipping boxes were removed from Wilford’s residence by a co-conspirator.

In addition, approximately $1.6 million dollars was seized from a residence in Reisterstown, Maryland. Testimony at trial indicated that Wilford had a key to and stored the cash in the residence.

Wilford’s residence in Elkton, Maryland was searched and agents seized a small amount of currency, receipts for six UPS shipments to California, and materials for wrapping and shipping currency. Testimony at trial indicated that this residence was sometimes used as a location to prepare large sums of U.S. currency for shipment to California. UPS shipping records indicated that Wilford shipped no less than 28 packages to California from Maryland, using fake names.

In May, 2011, Wilford fled to Los Angeles, California. In August 2011, a federal law enforcement agent attempted to arrest Wilford, but Wilford was able to escape when he attempted to run-down the agent with the vehicle that Wilford was operating. The investigation revealed that Wilford had rented an apartment in Los Angeles under a fake name. A search of Wilford’s Los Angeles apartment and vehicle revealed approximately $68,000 and fake IDs.

Wilford was arrested on September 16, 2011, at a secret apartment located on Laurel
Avenue in Baltimore City. Approximately $189,000, 14 cell phones and a fake ID were seized from either the apartment or his vehicle.

Trial evidence was presented that Wilford was responsible for the distribution of at least 200 kilograms of cocaine in furtherance of the conspiracy, and the entire conspiracy invovled no less than 336 kilograms of cocaine.

Co-defendants Lawrence Lee Hayes and Bryan Eammon Williams, both age 41, and both of Baltimore, previously pleaded guilty to their participation in the conspiracy and were sentenced to 15 years in prison, and 135 months in prison, respectively.

United States Attorney Rod J. Rosenstein commended the DEA, Baltimore City Police Department, Baltimore County Police Department and the Baltimore City State=s Attorney=s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys John W. Sippel, Jr. and Benjamin M. Block, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – Joshua Payne, age 21, of Mount Airy, Maryland, pleaded guilty today to four counts of robbery and one count of using a firearm during a robbery.

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; Carroll County Sherriff Ken Tregoning; Frederick County Sheriff Charles A. "Chuck" Jenkins; Major Gary Gardner, Chief of the Howard County Police Department; Carroll County State’s Attorney Jerry Barnes; Frederick County State’s Attorney J. Charles Smith; and Howard County State’s Attorney Dario Broccolino.

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

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

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

Payne and the government have agreed that if the Court accepts the plea agreement, Payne will be sentenced to 13 and half years in prison. U.S. District Judge William D. Quarles, Jr. scheduled his sentencing for October 22 , 2014 at 1:00 p.m.

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

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Yolando Guerrero, age 59, of Laurel, Maryland today to a year and a day in prison followed by three years of supervised release for theft of government property. Judge Messitte also entered an order that Guerrero pay restitution of $335,197.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

According to her plea agreement, Guerrero lived with an individual, who she considered to be her adopted mother, in Silver Spring, Maryland. The individual received social security retirement benefits. A few months before the individual’s death on October 17, 1994, Guerrero became the individual’s representative payee, and was required to spend the individual’s social security benefits on the individual’s behalf, and to report the individual’s death.

Instead, Guerrero failed to report the individual’s death in numerous forms that she filed with the SSA subsequent to the individual’s death. Law enforcement interviewed Guerrero on October 22, 2013. Guerrero initially claimed that the individual was still alive, but later in the interview admitted that the individual had died many years prior. From October 1994 to October 2013, Guerrero admitted that she cashed a total of $335,197 in SSA checks that had been mailed to the individual, and used the money for her own benefit, including payment of her rent, taxes, car insurance, and to raise her children and grandchildren.

United States Attorney Rod J. Rosenstein praised the Social Security Administration - OIG and HSI Baltimore for their work in the investigation, and thanked Special Assistant U.S. Attorney Paul K. Nitze, who prosecuted the case.

Member of Heroin Organization that Operated in Cecil County, Maryland, Delaware, Pennsylvania and New York; Also a Member of a Cocaine Organization That Operated in Delaware and Elsewhere

Baltimore, Maryland – District Judge Catherine C. Blake sentenced Rachine Huron Garnett, a/k/a “Sheen,” “Red,” “Ray,” and “Blockhead,” age 38, of Elkton, Maryland today to 10 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute a kilogram or more of heroin, and cocaine, in connection with two drug distribution rings.

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

According to his plea agreement, since at least December 2012, Garnett obtained bulk quantities of heroin from co-defendant Luis Lugo-Santiago and his associates for re-distribution to associates and customers in Maryland. Garnett would meet with a courier in Philadelphia where he would obtain a new supply of heroin. Garnett and associates had vehicles with hidden compartments where they could store either heroin or money. Often to exchange drugs, money or both, they would simply switch vehicles when they met. Over the course of a seven month wiretap, investigators identified 59 money deliveries from Garnett totaling $1,668,510, for the purchase of approximately 8.98 kilograms of heroin.

On August 15, 2013, investigators arrested Garnett and executed search warrants at his residence, and on a Honda Odyssey that Garnett had been using to transport narcotics and proceeds. Officers recovered $31,700 from the residence, $18,430 from a hidden compartment in the vehicle and $5,649 from Garnett.

Garnett also admitted that from at least February 6, 2013 until March 14, 2013, he obtained at least 924 grams of cocaine from other supply sources, which he re-distributed to customers in Delaware and elsewhere.

Seven defendants, including Garnett and Lugo-Santiago, have pleaded guilty to their participation in the heroin conspiracy. Judge Blake sentenced Abel Nunez-Reyes, age 30, of Philadelphia yesterday to two years in prison. Barry Jenkins, Jr., age 24, of Elkton, is scheduled to be sentenced tomorrow. Luis Lugo-Santiago, a/k/a “Papi,” and “Andres Galvez,” age 39, of New York, New York is scheduled to be sentenced on September 24, 2014.

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

Greenbelt, Maryland – Noe Rodriguez, age 34, of Boyds, Maryland, pleaded guilty today to making false statements, and illegal possession of a firearm by an alien, arising from a scheme in which he failed to comply with federal wage, hour and records regulations under the Davis-Bacon Act.

The plea agreement 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, Office of Labor Racketeering and Fraud Investigations, Washington Regional Office; Special Agent in Charge Rocco Pierri of the Naval Criminal Investigative Service, Washington Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.

According to his plea agreement, Rodriguez was a citizen of Mexico who entered the United States illegally in the late 1990s. He moved to Maryland in 2003, and began operating an electrical contracting business in the Washington, D.C. metropolitan area under various corporate guises, including RDZ Electric, RCM Services, Rodriguez Electric and O&G Electric. Rodriguez provided electrical work on numerous construction projects in the Washington, D.C. metropolitan area as an electrical subcontractor.

Rodriguez, on behalf of RDZ, provided electrical work during the construction of the Navy Exchange (NEX) at the National Military Medical Center located in Bethesda, Maryland. The NEX was owned by the Department of the Navy. Rodriguez was required to comply with federal wage, hour and records regulations under the Davis-Bacon Act. The Act required subcontractors to pay workers employed at the project site wages determined by the Department of Labor. The Department of Labor determined that the electrician’s prevailing wage rate at the NEX project was $49.88 an hour.

Between August 2011 and June 2012, Rodriguez provided no fewer than 30 electrical workers at the NEX project. Rodriguez, however, listed no more than eight workers on RDZ=s certified payrolls and falsely stated that he paid the workers the prevailing wage. Rodriguez in fact paid his electrical workers between $12 and $20 per hour, and failed to pay them overtime, despite the fact that many worked more than 40 hours a week. Rodriguez did not pay benefits to any of the workers. The certified payrolls, of which he submitted at least 17, also contained other material misstatements regarding the names, wages and hours of RDZ employees performing work. Over the lifespan of the NEX project, the difference between the wages actually paid to RDZ employees and the wages due under the Davis-Bacon prevailing wage rate, exceeded $1 million.

Rodriguez used the social security numbers assigned to another person and to his minor son to open bank accounts for his business and obtain his Maryland driver’s license.

On November 20, 2013, law enforcement executed a search warrant at Rodriguez’s residence and seized numerous fraudulent identification documents, some of which contained his picture and fraudulent identifiers. Law enforcement also seized a revolver and ammunition.

Rodriguez faces a maximum sentence of five years in prison for making a false statement, and 10 years for the illegal possession of a firearm by an alien. Rodriguez has agreed to forfeit funds in two bank accounts, a pick-up truck, $989,969 and a revolver. U.S. District Judge Roger W. Titus scheduled sentencing for October 30, 2014 at 2:30 p.m.

The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorney’s 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, demonstrate the Department of Justice's commitment to helping ensure the integrity of the government procurement process.

United States Attorney Rod J. Rosenstein praised the U.S. Department of Labor - OIG, Naval Criminal Investigative Service and Social Security Administration - OIG for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Paul Nitze and Assistant United States Attorney Bryan E. Foreman, who are prosecuting the case.

Baltimore, Maryland – Ramon Anthony Jadra, age 47, of Westminster, Maryland pleaded guilty today to tax evasion.

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.

“The longevity and scope of Mr. Jadra’s scheme to embezzle corporate funds from the Raloid Corporation is simply astonishing,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Mr. Jadra cheated both his own company by illegally diverting corporate funds to himself and the American taxpayer by evading paying taxes on the substantial income he earned from these actions. Today’s plea is an important step in finally bringing this defendant to justice after so many years of engaging in illegal activity.”

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

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

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

In the spring of 2010, Jadra implemented a new aspect of his scheme. He hired an attorney to incorporate a company named DIA Solutions in Georgia, and established a bank account under DIA Solutions’ name. Jadra then falsely advised his father and Raloid’s controller that DIA Solutions, an independent consulting firm, was entitled to receive 5% of the payments Raloid received on a contract DIA Solutions had helped it obtain that was worth over $6 million. Jadra instructed Raloid’s controller that he should issue a check to DIA Solutions for 5% of the amount of every payment that Raloid received on this contract. DIA Solutions had not in fact provided any goods or services to Raloid and had played no role in obtaining the contract in question. Once Jadra received these checks, totaling $313,218.02, he deposited them into the DIA Solutions bank account and then converted the money to his personal use.

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

Jadra used the majority of the embezzled funds for largely unsuccessful on-line stock trading. Other embezzled funds were used as follows: $50,000 down payment on a new 2012 BMW 535i costing $73,775.70; $14,512.58 for home renovations; $7,500 to buy a boat trailer; $31,295 to buy a watercraft; and a $15,929 down payment on a new Harley Davidson MC Screamin’ motorcycle costing $48,416.82.

As a result of the schemes, from 2008 to 2011, Jadra fraudulently converted $900,418 from Raloid, and failed to pay $283,481 in taxes on this fraudulently obtained money.

Jadra faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge Catherine C. Blake scheduled sentencing for December 5, 2014 at 9:15 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 Jefferson M. Gray, who is prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Iziah E. Ennis, a/k/a “Ike,” age 34, of Fairfax, Virginia today to 12 years in prison followed by four years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base, commonly known as crack, and phencyclidine, commonly known as PCP.

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

According to his plea agreement, from May 2012 to June 2013, Ennis, Kevin Dixon, Glen Price and others sold crack and PCP to drug customers in and around Riverdale, Prince George’s County, Maryland. The conspirators manufactured and distributed crack out of a confidential informant’s residence. The confidential informant, working under the direction of ATF, met with Ennis and his co-conspirators on numerous occasions. Twice in May 2013, the confidential informant sold crack and/or PCP to Ennis.

Kevin L. Dixon, a/k/a “Richie White Bread,” of Washington, D.C., and Glen Price, a/k/a “Mynds,” of Laurel, Maryland, both age 35, previously pleaded guilty to their participation in the conspiracy. Dixon was sentenced to 30 months in prison and Price is scheduled to be sentenced on August 27, 2014 at 11:00 a.m.

United States Attorney Rod J. Rosenstein praised the ATF and Prince George’s County Police Department for their work in the investigation and thanked Assistant U.S. Attorneys Thomas M. Sullivan and Nicolas Mitchell, who prosecuted the case.

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

Baltimore, Maryland – Laiton Blake Witkowski, age 42, of Stockton, Maryland, pleaded guilty today to producing and possessing child pornography.

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

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

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

Witkowski faces a mandatory minimum of 15 years and a maximum of 30 years in prison for production of child pornography; and a maximum of 20 years in prison for possession of child pornography. U.S. District Judge Ellen L. Hollander scheduled sentencing for December 19, 2014 at 1:30 p.m.

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

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

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

Baltimore, Maryland – The U.S. Attorney’s Office will join law enforcement and community leaders on Tuesday, August 5th at the following two events as part of the 31st Annual National Night Out crime and drug prevention event. Admission is free:

5:00 p.m. to 8:00 p.m. Annapolis Walk Community Park
1701 Belle Drive
Annapolis, Maryland

5:00 p.m. to 8:00 p.m. New Carrollton
8511 Legation Road, Beckett Field
New Carrollton, Maryland

National Night Out is designed to heighten crime and drug prevention awareness; generate support for and participation in local anticrime efforts; strengthen neighborhood spirit and police-community partnerships; and send a message to criminals letting them know neighborhoods are organized and fighting back. Help build a stronger, safer community by joining forces and participating in National Night Out.

“National Night Out is a perfect opportunity for neighbors to join with their law enforcement and community partners to demonstrate that citizens are standing up to criminals and neighborhoods are organizing against crime,” stated United States Attorney for the District of Maryland Rod J. Rosenstein.

Join the fun in Annapolis, which is offering a moon bounce, obstacle course, child fingerprint identification cards, K-9 demonstration, Ravens tickets raffle, honor guard, food and drinks.

"We're grateful to the U.S. Attorney's Office for their support of our National Night Out event," said Annapolis Police Chief Michael Pristoop. "Citizens, law enforcement, and community partners must work together to make a difference by fighting crime through awareness and prevention."

Celebrate community and police partnerships at the festival style event in New Carrollton. Law enforcement agencies will be on hand to educate and disseminate crime-prevention materials. Activities will include live music, special appearances by the Dark Knight and Iron Man, water slides, a mechanical bull ride, face painting, balloon animals, as well as a classic car show. Child fingerprint identification kits, give-aways and free hot dogs, sno-cones, popcorn and drinks will be available.

"Law enforcement cannot fight crime alone,” said New Carrollton Police Chief David G. Rice. “It's a community effort and requires everyone's participation. Our community is the eyes and ears of the police department and National Night Out is a great platform to build trusting relationships."

National Night Out organizers are expecting over 16,000 communities and 38 million people nationwide to take part in community events on Tuesday.

Used the Stolen Funds to Purchase Luxury Vehicles, a Yacht, and to Fund a NASCAR Team

Baltimore, Maryland – Saleh Stevens, age 41, of Owings Mills, Maryland, pleaded guilty today to mail fraud, in connection with a scheme to embezzle over $3 million from the insurance company where he worked.

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

According to Stevens’ plea agreement, from September 2011 through November 2013, Stevens, a licensed attorney, was employed as a senior claims adjuster and bond claim attorney for an insurance company with offices in Towson, Maryland. In this position, Stevens was responsible for reviewing and managing claims related to surety bonds, generally for construction projects. The insurance company also hired outside certified public accounting (CPA) firms to assist with claims processing.

Stevens admits that beginning in December 2011, he embezzled funds from the insurance company’s surety accounts. Stevens used his position as a bond claim attorney to direct the outside CPA firms to issue checks from the insurance company’s surety accounts to third-party bank accounts of entities controlled by Stevens, his friends, or family members. For example, Stevens paid a high school friend $40,000 in exchange for opening a nominee company with a bank account, and attempted to have a former law school classmate also open a bank account for a fictional company. In some instances, Stevens directed the owners of these accounts to issue checks to Stevens for his personal benefit or to send funds to other payees, such as credit card companies on Stevens’ behalf. In other instances, Stevens directed the CPA firms to issue checks to entities he controlled. Stevens also used his daughter and his former law school classmate to launder money, without explaining to them the source of the funds.

Stevens used the embezzled funds to purchase luxury automobiles, including a Maserati and a Mercedes; to fund a NASCAR racing team; to pay cash gifts to friends; to purchase a yacht, and to pay college tuition for his daughter.

Stevens also admits that he filed false individual tax returns for 2011, 2012 and 2013, failing to report a total of $3,119,129.22, the amount embezzled from the insurance company.

As part of his plea agreement, and as a condition of his supervised release, Stevens must pay the IRS all additional taxes, interest and penalties that he owes for tax years 2011 – 2013. In addition, Stevens has agreed to the entry of a restitution order for $3,119,129, the full amount of the insurance company’s loss, less any amount returned to the company prior to sentencing.

Saleh Stevens faces a maximum sentence of 20 years in prison for mail fraud and a fine of $250,000 or twice the gross gain or loss caused by the offense. U.S. District Judge J. Frederick Motz has scheduled Stevens’ sentencing for November 12, 2014 at 9:15 a.m.

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

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

Used Inside Information Provided by His Accomplice, a Former Teller-Trainee at the Bank

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Darrius Roszario D. Washington, age 20, of Baltimore, Maryland, today to 135 months in prison followed by five years of supervised release for an armed bank robbery in which Washington forced a teller at gunpoint to accompany him and open the bank vault.

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

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

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

Person-Robinson, age 20, of Baltimore, pleaded guilty to her role in the bank robbery. Judge Bennett has scheduled her sentencing for October 22, 2014, at 3:00 p.m.

Washington and Person-Robinson remain in federal custody.

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

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced John Robinson, age 34, of Baltimore, today to 20 years in prison followed by three years of supervised release for robbery and using a gun in furtherance of the robbery.

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

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

Co-defendant Bryant Smith, age 26, also of Baltimore, was charged by indictment with robbery and using a gun in furtherance of the robbery. Smith pleaded not guilty on October 25, 2013 and is scheduled for a re-arraignment on August 22, 2014.

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

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Paul Rodney Cain, age 48, of Pasadena, Maryland, today to 135 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Kevin Davis; and Anne Arundel County State’s Attorney Anne Colt Leitess.

According to his plea agreement, from November 2012 through July 24, 2013, Cain conspired with Daryell Rexrode, Allan Ferdock, Julie Marie Gardner and others to distribute cocaine. On November 16, 2012, Rexrode was arrested in Baltimore upon arriving to accept a controlled delivery of a kilogram of cocaine that he intended to split with Cain.

In May 2013, law enforcement initiated wiretaps on two cell phones belonging to Cain and learned that Rexrode and Cain were building their inventory of cocaine. For example, between May 21 and 24, 2013, law enforcement overheard Cain agree to buy one kilogram of cocaine from Ferdock for $36,000. Law enforcement arrested Ferdock on May 24 after witnessing Ferdock purchase a kilogram of cocaine which he intended to re-sell to Cain. Law enforcement seized the cocaine.

Following Ferdock’s arrest, law enforcement intercepted many calls in which Rexrode and Cain, who did not believe that law enforcement had seized the cocaine, discuss confronting Ferdock about the cocaine that Ferdock had agreed to deliver. The conspirators devised a plan to have Cain take Rexrode’s brother to Ferdock’s residence to confront Ferdock.

On May 26, 2013, law enforcement intercepted a call in which Cain told Rexrode that he had just left Rexrode’s brother at Ferdock’s home. In the early morning hours of the next day, law enforcement arrested Rexrode’s brother on Ferdock’s property. At the time of his arrest, Rexrode’s brother was wearing latex gloves and carrying a mallet, a knife and a roll of duct tape.

On July 24, 2013, law enforcement executed a search warrant at a storage unit in Glen Burnie, Maryland, which was rented in Gardner’s name. Gardner was Cain’s girlfriend. Officers seized approximately one kilogram of cocaine from the storage unit.

Cain conspired to distribute more than five kilograms of cocaine.

Daryell M. Rexrode, Allan Clay Ferdock, both age 56, Julie Marie Gardner, age 36, all of Pasadena, previously pleaded guilty to their roles in the conspiracy. Rexrode was sentenced to 160 months in prison; Ferdock was sentenced to 51 months in prison; and Gardner was sentenced to 21 months in prison.

United States Attorney Rod J. Rosenstein commended the DEA, Anne Arundel Police Department and Anne Arundel County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Peter J. Martinez and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Communicated With the Victim Through a Social Networking Site

Greenbelt, Maryland – Gregory King, age 28, of Washington, D.C. pleaded guilty today to traveling across state lines to engage in illicit sexual conduct with a 14 year old female and to using a computer to persuade, induce, entice and coerce the minor to engage in sexually explicit conduct.

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

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

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

King faces a maximum sentence of 30 years in prison for the traveling charge; a mandatory minimum of 10 years and up to life in prison, for using a computer to coerce a minor to engage in sexually explicit conduct; each followed by a minimum of five years and up to lifetime of supervised release. U.S. District Judge Peter J. Messitte has scheduled sentencing for October 15, 2014 at 9:30 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 FBI and Laurel Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kristi N. O’Malley, who are prosecuting the case.

Ship Captains Poached Hundreds of Thousands of Pounds of Striped Bass

Baltimore, Maryland – Michael D. Hayden, age 41, and William J. Lednum, age 42, both of Tilghman Island, Maryland, pleaded guilty today to conspiring to violate the Lacey Act and to defraud the United States through their illegal harvesting and sale of 185,925 pounds of striped bass.

The plea agreements were 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.

“These defendants admitted to systematically plundering the Chesapeake Bay of an important and protected natural resource, and at the expense of the many honest fishermen who play by the rules,” Acting Assistant Attorney General Hirsch said. “The Justice Department is committed to enforcing environmental laws that protect our shared natural resources and sustain the vital marine life of the Chesapeake Bay for future generations.”

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

From at least 2007 to 2011, Hayden and Lednum illegally harvested, possessed, falsely labeled and/or sold at least 185,925 pounds of striped bass. They used illegally weighted and/or anchored gill nets, left the nets in the water overnight, and set the nets during times when the commercial striped bass gill-netting season was closed. The defendants exceeded their maximum daily vessel limit of striped bass and either unloaded the surplus onto an anchored vessel or paid others a fee to check-in fish for them. Hayden and Lednum falsified the permit allocation cards and daily catch records for their striped bass fishing trips to over-report the numbers of striped bass caught and under-report the weights. This allowed them to request additional state tags under false pretenses and therefore harvest additional striped bass illegally.

Hayden and Lednum shipped and sold the striped bass to wholesalers in New York, Pennsylvania, Delaware and Maryland in the total amount of $498,293.47. None of the fish was properly reported at check-in stations or on the permit allocation cards of daily catch records submitted to the State of Maryland. Maryland in turn submits such paperwork to numerous federal and interstate agencies responsible for setting harvest levels all along the eastern seaboard.

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 to which Hayden and Lednum pled guilty today. 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.

Hayden and Lednum face a maximum sentence of five years in prison and a $250,000 fine. The defendants have agreed to pay restitution to the State of Maryland of between $498,293 and $929,625. The defendants have further agreed to forfeit the monetary equivalent of 80% of the value of the vessel primarily used during the conspiracy. U.S. District Judge Richard D. Bennett scheduled sentencing for Hayden and Lednum on November 4 and 5, 2014, respectively.

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.

Robbed 13 Banks, Credit Unions and Retail Stores of at Least $250,000

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Aaron Thelbit Davis, age 39, of Baltimore today to five years in prison followed by three years of supervised release for bank larceny, in connection with a two year scheme to burglarize banks, credit unions and retail stores. Judge Bennett sentenced co-defendant Kenneth Alexander Manns, age 48, of Baltimore, yesterday to four years in prison, followed by three years of supervised release, for bank burglary. Judge Bennett also entered orders requiring that the defendants each pay $250,000 in restitution.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Chief Cathy L. Lanier of the Metropolitan Police Department.

According to their plea agreements, from May 2011 through May 2013, Davis and Manns conspired with a group of associates, including Donald Taylor, to steal money and property from 13 banks, credit unions and retail stores.

In order to avoid apprehension, the burglary crew would case the target location and assess the likelihood of obtaining valuables. One or more conspirators would stand as a look-out while others went inside gas stations, convenience stores, credit unions and other businesses in Maryland and Washington D.C., wearing either white paper suits or dark outfits, and masks and gloves, while communicating with handheld radios. The burglary crew would cut power and telephone lines, cables and other wires, and destroy, reposition or disconnect surveillance video cameras. They stole cash, safes, cash-register drawers and lock boxes. On several occasions, the burglary crew gained entry to the ATM room of the target location by carving a hole with a power saw from an adjacent retail space. They transported the stolen goods to their homes and businesses in Maryland.

For example, on March 19, 2011, Davis and Manns donned paper suits and black masks and forcibly gained entry to the ATM room of the Tower Federal Credit Union on Baltimore National Pike in Normandy Shopping Center in Ellicott City, Maryland, by cutting through the adjoining retail business. They waited for approximately one hour before entering the credit union’s ATM room, where they tried unsuccessfully to pry open the rear door of the ATM machine.

On August 17, 2012, Davis and Manns wore white paper Tyvek suits, black masks and gloves, and entered an ATM room of a bank in Washington, D.C. by carving a hole with a power saw from an adjacent retail space. When the Metropolitan Police responded to alarms, Davis and Manns fled before gaining access to the cash drawer of the ATM machine.

On April 28, 2013, shortly before midnight, Davis and Manns broke a glass window to the Edmondson Sunoco station in Catonsville, Maryland, and severed phone, cable and alarm power lines inside. Taylor served as a lookout from inside a van rented by Manns and parked nearby. After going behind the cashier area, Davis and Manns left and drove away from the gas station in a stolen U-Haul Ford van. Over an hour later, they returned, attempted to enter the manager’s office and then left the gas station again. At approximately 3:15 a.m., Manns and Davis returned to the gas station a third time, stole $200 from the cash register drawer and removed two store safes containing $10,080, while Taylor again served as a look-out. They loaded the safes into the stolen U-Haul van and drove away, while Taylor followed them in the van.

Donald Taylor, age 56, also of Baltimore, pleaded guilty to his role in the scheme on April 3, 2014.

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

Maryland Authorities Working to Identify Corrupt “Pill Mill” Medical Professionals

Greenbelt, Maryland - A federal grand jury has indicted Silviu Ziscovici, M.D., a/k/a “Dr. Z,” age 59, of Rockville, Maryland, on charges of conspiracy to distribute and distribution of controlled dangerous substances, distribution of a controlled dangerous substance resulting in death, and money laundering, in connection with his Rockville pain management practice. The indictment was returned on July 28, 2014, and unsealed today upon the arrest of the defendant.

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; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.

“Sadly, many drug users become hooked on oxycodone with the assistance of medical professionals, then move on to even more dangerous drugs such as heroin,” said U.S. Attorney Rod J. Rosenstein. “Local, state and federal authorities in Maryland are working together to identify corrupt medical professionals who operate ‘pill mills,’ put them out of business and hold them accountable.”

“To those who practice medicine and abuse the privilege of caring for their patients by inappropriately prescribing controlled substances, DEA has a strong message for you: We will investigate you and prosecute you to the fullest extent of the law,” said Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.

“Providing prescription drugs to people who do not need them is no different than distributing illegal street drugs,” said Assistant Director in Charge Parlave. “When abused and used outside of legitimate medical purposes, pain medications have dangerous effects on users. The FBI is committed to the pursuit of prescription drug abuse and will continue to work with our law enforcement partners to protect our community from the dangers of these crimes.”

“Physicians who exploit the trust given to them by facilitating the abuse of controlled dangerous substances are negatively impacting our entire community. IRS-Criminal Investigation will work with our law enforcement partners to insure that these individuals are held accountable for their actions and do not profit from their criminal activity,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.

According to the indictment, Silviu Ziscovici was a physician who held a Maryland medical license. Ziscovici worked as a pain management specialist and practiced out of an office in Rockville, Maryland. As a medical doctor, Ziscovici was authorized to prescribe medicine, including controlled substances, to patients for legitimate medical purposes and in the usual course of professional practice.

The 29-count indictment alleges from at least July 2009 through June 22, 2010, Ziscovici conspired to distribute and distributed controlled dangerous substances. As part of the conspiracy, Ziscovici prescribed oxycodone, methadone, morphine, alprazolam and other controlled substances to patients without individually assessing their medical needs. As a result, the indictment alleges that Ziscovici’s office served as a “pill mill,” at which individuals paid a fee to obtain prescriptions for controlled substances without any demonstrated medical need.

The indictment alleges that a co-conspirator residing in Tennessee repeatedly provided transportation for himself and others from Tennessee to Ziscovici’s office in Rockville, to obtain prescriptions for controlled substances. According to the indictment, Ziscovici instructed the co-conspirator not to bring anyone under the age of 25, or anyone with visible “track marks” to Ziscovici’s office. The indictment alleges that, among other things, Ziscovici conducted cursory, incomplete, or no medical examination of patients, prescribed inappropriate combinations of medications, increased patients’ dosages without medical justification, and treated a large number of patients who had travelled long distances to his office in order to obtain prescriptions for highly addictive controlled substances.

The indictment alleges that Ziscovici repeatedly caused oxycodone, methadone, morphine, alprazolam and other drugs to be distributed, outside the course of professional practice and without a legitimate medical purpose. According to the indictment, on February 2, 2010, Ziscovici caused methadone to be distributed to a patient, outside the usual course of professional practice and without a legitimate medical purpose, and the patient died as a result of using the methadone.

Finally, the indictment charges that Ziscovici used the proceeds of the drug distribution to purchase a vehicle, specifically, using a check in the amount of $13,983.70 drawn on his business checking account. The indictment seeks the forfeiture of at least $651,500, which constitutes proceeds traceable to the drug distribution, as well as cash, coins and jewelry seized from Ziscovici’s bank accounts, safe deposit boxes, and from his home.

Ziscovici faces a mandatory minimum sentence of 20 years in prison, and up to life in prison, for distribution of controlled substances resulting in death; 20 years in prison for each of the 26 counts of distribution of controlled substances and for the conspiracy; and 10 years in prison for money laundering. Ziscovici had an initial appearance this afternoon in U.S. District Court in Greenbelt, and remains in custody pending a detention hearing scheduled for Friday, August 1, 2014, at 3:30 p.m.

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, FBI, IRS-CI, and Montgomery County Police Department for their work in the investigation and recognized the Virginia State Police, Knox County, Tennessee, Sheriff’s Office, and the Blount County, Tennessee Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

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

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Shola Risikat Balogun, age 48, of Upper Marlboro, today to 37 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a mortgage fraud scheme that she organized and managed which resulted in over $1.352 million of actual losses to mortgage lenders. Judge Messitte also entered an order that Balogun pay restitution and forfeit $1,352,378, the amount lost by mortgage lenders.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service, Washington Field Office; Special Agent in Charge, A. Derek Evans, of the Federal Deposit Insurance Corporation Office of Inspector General; and Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General - Office of Investigations.

According to her plea, Balogun was a licensed mortgage broker and sole proprietor of Newgate Mortgage. Balogun and others contacted individuals who wished to purchase homes. The buyers typically had moderate to low incomes, and provided the conspirators with accurate income and employment information.

The conspirators then typically inflated the buyer’s income and created bogus employment information in an effort to qualify these individuals for loans that they otherwise were unqualified to secure. In some cases, no payments were made and the property went swiftly into default. In other cases, the borrowers attempted to make mortgage payments for a period of time until they could no longer make payments. Balogun and others profited from these fraudulent transactions by collecting origination fees, commissions, yield spread premiums and broker’s fees from each loan that closed. Balogun was a leader of the scheme.

Balogun admitted that as the result of Newgate brokering at least 20 fraudulent transactions, mortgage lenders lost $1,352,378.

Emeka Udeze, age 39, of Bowie, Maryland, a licensed mortgage broker who worked at Newgate and other companies, previously pleaded guilty to his participation in this conspiracy, as well as to a separate fraud scheme. Udeze’s sentencing has not yet been scheduled.

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

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

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, FDIC and HUD-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced attorney Kiran Dewan, age 60, of Woodbine, Maryland today to two years in prison, followed by three years of supervised release, for bribing a public official. Judge Quarles also ordered Dewan to forfeit $50,000.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.

Dewan operated the Law Offices of Dewan and Associates, P.C., located at 7100 Security Boulevard in Windsor Mill, Maryland. He held himself out as having experience handling immigration matters and as a certified public accountant.

According to his plea agreement and court documents, from March 2011 to May 2013, Dewan conspired with clients, including Mohammad Khan, Narayan Thapa and Amjad Israr, to bribe an immigration official to provide immigration documents and benefits which would permit the clients to legally live and work in the United States. Unknown to Dewan and the clients, the immigration contact was actually an undercover agent posing as a public official. Dewan’s clients paid $170,000 in cash to Dewan to bribe the “public official,” of which Dewan kept $50,000. In return for the bribes, the purported public official provided green cards for the clients.

Additionally, in March 2011, Dewan offered to pay the purported public official $5,000 to have a foreign national removed from the United States. Dewan believed that the foreign national was going to start his own accounting business and compete with Dewan. The purported public official pretended to issue the notice to appear before an immigration judge, although in reality the USCIS had already decided to issue this notice independently. Dewan paid the $5,000 bribe in May 2011.

In the fall of 2011, Dewan offered to pay the purported public official another $5,000 to remove and add documents to the foreign national’s USCIS files. Dewan explained that he had previously submitted false tax returns to USCIS in support of the foreign national’s employment visa application and wanted those false tax returns replaced with new tax returns. In November, the purported public official pretended to provide the requested tax returns and Dewan subsequently paid the additional $5,000 bribe.

In 2012, Dewan spoke extensively about his knowledge of establishing an overseas hawala to transfer the purported public official’s alleged bribery profits. A hawala allows an individual to transfer money overseas using personal connections, without the money going through traditional government monitored means like money transfer services or banks. Dewan stated that he had previously used this hawala method for other clients, including a $400,000 transfer via a reverse hawala method.

Mohammad Khan, age 59, a citizen of Pakistan living in Baltimore who operated Pizza City in Brooklyn Park, Maryland, previously pleaded guilty to immigration fraud and was sentenced to a year and a day in prison.

Amjad Israr, age 47, a Pakistani citizen living in Cheshire, Connecticut, who operated many convenience stores in Connecticut, previously pleaded guilty to conspiring to bribe an immigration official in order to obtain lawful permanent residence (green card) and employment authorization documents. Judge Quarles sentenced Israr to 15 months in prison. Narayan Thapa, age 52, a citizen of Nepal residing in Baltimore, also pleaded guilty to his role in the conspiracy and awaits sentencing.

United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department and USCIS Baltimore District Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Gregory R. Bockin, who prosecuted the case.

Used Stolen Identity Information to Purchase over $124,000 in Motorcycles and Other Goods

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Tavares Davon Miller, a/k/a “Tavon Jackson,” “Tavon Miller,” and “Ooh,” age 30, of Baltimore, Maryland today 75 months in prison followed by three years of supervised release for conspiring to commit wire fraud and aggravated identity theft, in connection with a scheme to use the personal identifying information of others to purchase motorcycles, electronic equipment, jewelry and other goods. Judge Hollander also entered an order that Miller pay restitution of $105,899.66.

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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Anne Arundel County Police Chief Kevin Davis; Charles County Sheriff Rex Coffey; Howard County Police Chief Gary Gardner; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Michael Phillips of the Fruitland Police Department.

According to his plea agreement, from September 25 through November 1, 2012, Miller acquired the identifying information of more than 10 victims, and used that information to fabricate driver’s licenses and credit cards in the names of those victims, but using the photograph of co-conspirator Monika Hill (where applicable). Miller and Hill traveled to motorcycle dealerships and retail stores in Maryland, Delaware, Virginia and Pennsylvania, and used the fraudulent identification documents to purchase merchandise, including electronic equipment, jewelry and clothing, or apply for lines of credit at those stores. Miller and Hill then loaded the motorcycles and merchandise into their vehicle and returned to Maryland. Miller advertised the motorcycles and merchandise for sale over the internet, retaining the proceeds of the sales and paid Hill a fee for her services.

Judge Hollander determined today that the total amount of loss to the victims is $140,462.03.

Monika Michelle Hill, age 34, of Gwynn Oak, Maryland, pleaded guilty to the same offenses and is scheduled to be sentenced on October 24, 2014 at 2:00 p.m.

United States Attorney Rod J. Rosenstein praised the U.S. Secret Service, Maryland State Police, the Anne Arundel, Howard and Montgomery County Police Departments, Charles County Sheriff’s Office and Fruitland Police Department for their work in the investigation. Mr. Rosenstein also recognized the following agencies for their assistance in the investigation: the Delaware State Police; Leesburg (Virginia) Police Department and Stafford County (Virginia) Sheriff’s Department; and the Lancaster (Pennsylvania) Police Department and Springettsbury Township (Pennsylvania) Police Department. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Recruited Individuals Who Did Not Owe Taxes Because They Had Little Or No Earned Income

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Sheila Anderson-Cloude, age 34, of Notthingham, Maryland, to 15 months in prison, followed by three years of supervised release, for her role in a conspiracy to obtain fraudulent tax refunds. Judge Bennett also ordered Anderson-Cloude to pay restitution of $546,785.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington Regional Office.

"Criminal conspiracies using fraudulent refund schemes damage the integrity of the U.S. financial system. We as taxpayers ultimately pay the price for the greed of a few," said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. "IRS-CI, along with our law enforcement partners and the Maryland United States Attorney's Office, will continue to utilize every tool available to investigate those who conspire with each other to abuse the U.S. Treasury for their own personal gain."

According to Anderson-Cloude’s plea agreement, she was a Financial Management Specialist with the Federal Motor Carrier Safety Administration. From February 2010 through April 2013, Anderson-Cloude conspired with Tonia Lawson and her daughters Kiara Skipwith and Jasmine Thomas, to prepare fraudulent tax returns. The defendants recruited individuals who did not owe taxes because they had little or no earned income, and convinced these individuals that they could obtain a substantial refund and therefore should file a federal individual income tax return. Generally, Lawson, Skipwith and Thomas recruited prospects for the scheme, using a variety of methods, including paying referral fees to those who brought recruits to them.

Lawson, Skipwith and Thomas provided the recruits’ personal information to Anderson-Cloude, who would prepare the fraudulent return. The recruits provided limited income information. False wages and educational expenses were used to falsely claim tax credits. Anderson-Cloude, Lawson, Skipwith and Thomas misled the recruits by telling them that the refunds they had received were smaller than the refund amounts Anderson-Cloude had actually listed on the fraudulent returns. The “profit” for Anderson-Cloude and her co-conspirators was the difference between the refund claimed on each tax return and the smaller amount actually paid to the recruit.

For tax years 2009 through 2012, Anderson-Cloude was involved in the preparation of at least 90 fraudulent tax returns based upon the recruits referred by Lawson, Skipwith, Thomas and others. These fraudulent returns generated illicit refunds totaling $546,785. In 2011 alone, Anderson-Cloude received at least $104,961 in profits from her role in the conspiracy.

Tonia Patrice Lawson, age 43, of Middle River, Maryland, pleaded guilty and was sentenced to 10 months in prison and ordered to pay restitution of $546,785. Jasmine L. Thomas, age 26, of Baltimore; and Kiara A. Skipwith, age 24, of Parkville, Maryland, also pleaded guilty to their roles in the scheme. Thomas and Skipwith were each sentenced to three years’ probation and ordered to pay restitution of $90,579 and $199,722, respectively.

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

Stole 2,031 Containers Which Cost Over $2.8 Million to Replace

Baltimore, Maryland - Roland Michael Muir, age 57, of Glen Burnie, Maryland, pleaded guilty today to conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Anne Arundel County Police Chief Kevin Davis.

"Many citizens across Anne Arundel County and the region are unaware of the impact that metal thefts have on our community," said Anne Arundel County Police Chief Kevin Davis. "We formed our Metal Unit in January to concentrate on these types of crimes and this investigation highlights the financial strain these thefts place on businesses, costs that are often passed on to our citizens. I commend the work of our detectives and our federal partners to bring this investigation to a successful prosecution."

The U.S. Postal Service used and stored mail transport equipment, including large aluminum carts known as over-the-road containers. Muir worked for a private mailer company located in Baltimore, driving a box truck.

According to his plea agreement, from July 2010 to 2014, Muir drove his employer’s box truck to two U.S. Postal Service bulk mail centers in Capitol Heights where he stole the over-the-road containers and loaded them on the truck. A co-conspirator accompanied Muir during the thefts, which typically occurred between midnight and 2:00 a.m. The co-conspirators then drove to a warehouse where they used spray paint to cover the U.S. Postal Service markings on the containers. They drove the truck to a metal recycler and sold the containers for scrap value, receiving about $1,300 in cash for each transaction.

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

During Muir’s participation in the scheme, approximately 2,031 containers were stolen from the U.S. Postal Service on 253 days. The replacement cost of these containers is $2,873,865. The containers were sold to metal recyclers for $323,175.71 in cash.

Muir faces a maximum sentence of five years in prison for the conspiracy and 10 years in prison for the theft charge. U.S. District Judge Richard D. Bennett scheduled sentencing for October 28,2014, 2014 at 3:00 p.m.

Co- defendant Aaron Kevin Howard, age 52, of Brooklyn, Maryland, was charged by indictment with conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service. Howard pleaded not guilty on May 9, 2014 and is scheduled for trial on September 2, 2014.

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