District of Maryland

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Michael Gaskin, age 33, of Rockville, Maryland, today to 78 months in prison, followed by 15 years of supervised release, for distribution of child pornography. Judge Grimm ordered that upon his release from prison, Gaskin must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to Gaskin’s plea agreement, on 10 occasions between December 2012 and September 2012, Gaskin sent images documenting the sexual abuse of prepubescent children, including toddlers, to an individual whom Gaskin had met online in a chat room. On December 2, 2013, a search was conducted at Gaskin’s residence and his computer was seized. A forensic analysis of the computer identified 262 images and two videos documenting the sexual abuse of minors.

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 for its 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 Trial Attorney Sarah Chang, also of the U.S. Department of Justice, Criminal Division, Child Exploitation and Obscenity Section, who prosecuted the case.

Defendant Obtained Over $400,000 in Payments for Food Sales That Never Occurred

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jung Kim, age 52, of Ellicott City, Maryland, to 20 months in prison followed by three years of supervised release, for food stamp and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Russell also entered an order that Kim forfeit $95,453.50 and pay restitution of $205,000.

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

Jung Kim owned and operated C&C Market, a convenience store located at 4752 Park Heights Avenue in Baltimore. According to her plea agreement and court documents, the store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.

Jung Kim completed the required government form in January, 2005 to become an authorized retailer in the program. Kim received training and instruction regarding the requirements of the food stamp program, including that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from November 2010 through April 2013, Kim routinely exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for herself.

As a result of these unlawful cash transactions, Kim obtained more than $400,000 in payments for food sales that never occurred.

Eight of the 10 convenience store owners or operators who were 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. Ahmed Ayedh Al-Jabrati, age 58, a citizen of Yemen residing in Baltimore, was sentenced to two years in prison, and ordered to pay restitution of $1.2 million. Amara Cisse, age 50, 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. Two more retailers were indicted in January 2014.

United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Judson T. Mihok, Kathleen O. Gavin, and Leo J. Wise, who are prosecuting the cases.

Stole Personal Identifying Information of over 100 Individual Victims to Obtain Over $993,000 of Merchandise

Greenbelt, Maryland – U.S. District Judge Ellen L. Hollander sentenced Denise W. Wearing, age 37, of Philadelphia, Pennsylvania, today to seven years in prison followed by five years of supervised release for conspiracy to commit bank fraud and aggravated identity theft in connection with a scheme to obtain merchandise using stolen personal identifying information of medical patients. Wearing also admitted that from November 2011 through June 2012, she received $20,068 in disaster assistance from the Federal Emergency Management Agency after she falsely claimed that she was displaced by Hurricane Irene. Judge Hollander also ordered Wearing to pay restitution of $993,772.43.

On June 16, 2014, Judge Hollander sentenced Michelle Jernell Cole, age 28, of Baltimore, to six years in prison followed by five years of supervised release for the same offenses, as well as for an unrelated fraud scheme in which Cole fraudulently received the Social Security benefits of a deceased relative. Judge Hollander ordered Cole to pay restitution of $409,305.53 for the bank fraud scheme and an additional $50,635 in restitution to the Social Security Administration.

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

According to their plea agreements, Michelle Cole’s sister, Chanell Cole, met Wearing between 2004 and 2005 while both were serving fraud-related sentences in the Maryland Department of Corrections. Chanell introduced Michelle to Wearing.

From 2008 through approximately May 2010, Chanell Cole worked for a rheumatologist who had an office at Good Samaritan Hospital in Baltimore. Using her access to the physician’s patient files, Cole unlawfully obtained the personal identifying information (PII) of numerous patients, including names, addresses and social security numbers, which she provided to Wearing.

From 2010 through February 2012, Michelle Cole worked at a medical practice in Laurel, Maryland, where she also stole PII of patients, which she provided to Wearing. After being fired from that practice for reasons unrelated to the PII theft, from February 2012 through February 2013, she worked for a rheumatologist who had an office in Glen Burnie, Maryland. In that position she also fraudulently obtained the PII of numerous patients which she provided to Wearing. Michelle Cole obtained that position after submitting a fraudulent resume in support of her application. Michelle Cole had three previous state convictions for similar conduct.

From 2010 to February 2013, Wearing and other conspirators used the stolen PII to fraudulently open credit accounts and assume control of existing credit accounts at Macy’s, Bloomingdale’s and Nordstrom. The conspirators used the accounts to purchase merchandise in the names of the unknowing victims without intending to pay for the goods. Wearing and other conspirators caused the delivery of the fraudulently obtained merchandise to their own residences, and to the residences of friends and family members, primarily in the Philadelphia, Pennsylvania area. After the merchandise was delivered, Wearing and others drove to the delivery address and picked up the packages, and paid the recipient a fee for having received the packages. The fee was either cash or a previously determined item of merchandise that was part of the delivery.

Once she received the merchandise, Wearing provided it to other members of the conspiracy so that it could be sold for cash, typically for 50% of its retail value, or returned to the retail stores in exchange for gift cards. Wearing provided most of the merchandise to Yolanda Welch for sale and Welch paid Wearing in cash after she completed the sales.

During the course of the scheme, Wearing placed more than 1000 calls to retail stores and delivery services in furtherance of the scheme. Additionally, Wearing caused more than 200 deliveries of fraudulently obtained goods. On some occasions, Wearing sent merchandise to Michelle Cole or Chanell Cole for them to sell to their acquaintances. Both Michelle and Chanell Cole sent cash to Wearing through Western Union transactions and wire transfers through their banks. Wearing had seven previous fraud-related convictions.

Over the course of the scheme, the identities of over 100 individual victims were used to obtain over $993,000 of merchandise.

Chanell Y. Cole, age 31, of Owings Mills, Maryland, and Yolanda Gail Welch, age 39, of Philadelphia, Pennsylvania, pleaded guilty to their roles in the scheme and were sentenced to three years in prison and 33 months in prison, respectively. Judge Hollander ordered Chanell Cole to pay restitution of $32,091.91, and ordered Welch to pay restitution of $993,772.43. Judge Hollander sentenced co-conspirator Linda Nguyen, age 28, of Philadelphia, to one day in prison, followed by four months of home detention as part of five years supervised release, for her role in the conspiracy and ordered Nguyen to pay restitution of $54,399.

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

United States Attorney Rod J. Rosenstein praised the U.S. Secret Service for its work in the investigation and Macy’s fraud investigators for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Paul Budlow, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar has ordered M&T Bank to forfeit $560,000 in drug proceeds laundered through the bank on which the bank failed to file currency transaction reports.

The forfeiture 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 Chief James W. Johnson of the Baltimore County Police Department.

"Financial institutions face penalties if they accept cash deposits without filing currency transaction reports,” said U.S. Attorney Rod J. Rosenstein. “The reports allow law enforcement to trace cash deposits by criminals who try to avoid creating a paper trail."

According to the complaint filed in support of the forfeiture, Deanna Bailey was a member of a drug trafficking organization based in Maryland. Sabrina Fitts was the head teller at the Perry Hall branch of M&T Bank. On at least eight occasions between 2011 and 2013, Bailey came to M&T Bank and asked Fitts to convert the proceeds from the sale of illegal drugs from small denomination bills (i.e. $5, $10 and $20 bills) to $100 bills. The amounts involved in each transaction ranged from $20,000 to $100,000, with most transactions involving $50,000 or more. Bailey paid Fitts a one percent fee for each transaction for making the exchange without filing a currency transaction report.

The government filed a civil action on February 10, 2014 alleging that M&T Bank is required to forfeit $560,000 that was transferred to the bank by Bailey in exchange for $100 bills. The complaint alleged that the money was subject to forfeiture because M&T Bank failed to file currency transactions reports on bank transactions in amounts in excess of $10,000 as required by law. Fitts admitted that on each occasion she converted the bills without filing or causing anyone else at M&T Bank to file a currency transaction report.

Sabrina Nicole Fitts, age 29, of Baltimore, Maryland, was sentenced to a month in prison followed by eight months of home detention for failing to file currency transaction reports on suspected drug proceeds. Judge Bredar also ordered Fitts to perform 250 hours of community service and to forfeit $5,000 she was paid by Bailey for converting the drug proceeds. Deanna Bailey, age 33, of Baltimore, was sentenced to 46 months in prison for conspiring to commit money laundering. Judge Bredar also ordered Bailey to forfeit $500,000.

United States Attorney Rod J. Rosenstein praised the DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Stefan D. Cassella, who prosecuted the case.

Gang Members Allegedly Committed Murders, Attempted Murders, Stabbings, Kidnapping, Extortion and Witness Tampering

Greenbelt, Maryland – A federal grand jury returned a second superseding indictment today charging the following four additional defendants, all of Hyattsville, in connection with a conspiracy to participate in murder in aid of a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:

Hector Daniel Villanueva-Cortez, a/k/a “Muertito,” age 24; Roni Arriola-Palma, a/k/a “Maniako,” age 24; Luiz Guzman-Ventura, a/k/a “Casper,” and “Chele,” age 20, and
Jose Rodriguez-Nunez, a/k/a “El Killer,” age 25.

The second superseding indictment was returned yesterday, June 16th, under seal and unsealed today at the initial appearance for Arriola-Palma this afternoon in federal court in Greenbelt. Arriola-Palma was arrested this morning by HSI agents, as a result of assistance provided by the Prince George’s County Sheriff’s Office. Charges remain pending against eight of the original defendants, listed below. A ninth original defendant, Francisco Hernandez, aka “Chicle,” age 21, of Silver Spring, Maryland, has pleaded guilty to his participation in the conspiracy. All of the defendants are in custody.

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

“Attacking and dismantling violent criminal enterprises like MS-13 is one of HSI's highest enforcement priorities,” said HSI Baltimore Special Agent in Charge William Winter. "Our investigation revealed that MS-13 is an enterprise that participates in criminal acts, such as murder, attempted murder, violent assaults, witness intimidation and retaliation, and extortion. HSI special agents will continue to work with our local, state and federal law enforcement partners to target MS-13 members and other transnational criminal street gangs that are a rising public safety threat in our communities.”

MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.

The 12 count indictment alleges that from prior to 2009 to February 2014, the defendants were members and associates of MS-13 who planned and committed murders, attempted murders, kidnapping, assaults and robberies in Montgomery and Prince George’s Counties. Gang members also allegedly committed extortion and witness tampering, among other crimes.

More specifically, the second superseding indictment alleges the following additional acts. On January 3, 2010, co-defendant Wilmer Argueta and other MS-13 members attempted to kidnap and assault two victims in the area of East West Highway and Riggs Road. After the two victims fled in different directions, several MS-13 members allegedly caught one of the victims in a nearby wooded area and sexually assaulted her as retribution for associating with a rival gang.

The second superseding indictment alleges that on January 13, 2011, Arriola-Palma drove a van containing defendants Argueta, Carlos Beltran-Flores and Miguel Angel Manjivar. They passed a victim walking on the side of the road near the Fort Totten Metro Station. After getting out of the vehicle, they sprayed the victim with pepper spray, dragged him into the van and held him on the van floor, kicking and stabbing him while they drove to the area of Chillum Manor Road in Hyattsville. The defendants allegedly attempted to murder the victim by strangling him with a belt, stripping him of his clothes and stabbing him repeatedly. The defendants took the victim’s belongings and left him naked and unconscious in the woods, believing that he was dead.

According to the second superseding indictment, from around September to November 2011, defendant Argueta ordered a “greenlight,” which is an order to kill, from inside Prince George County Corrections Facility on a victim who planned to testify against him in Circuit Court for Prince George’s County. The indictment also alleges that on December 4, 2013, Villanueva-Cortez and another MS-13 member attempted to murder a suspected rival gang member.

The indictment further alleges that on December 5, 2012, Rodriguez-Nunez and Guzman-Ventura were driving in the area of 23rd and Sheridan Avenue in Hyattsville when they spotted four individuals crossing a street frequented by rival gang members. After waiting for the individuals to pass, Rodriguez-Nunez and Guzman-Ventura fired several shots at the group, killing one of the victims and attempting to murder the other three.

The indictment also alleges that on March 9, 2014, while in custody in Washington, D.C., defendants Minor Perez-Chach and Melvin Marquez-Sanchez attacked and stabbed another inmate when that person refused their demands to join MS-13.

All four additional defendants face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise. Villanueva-Cortez also faces a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering. Villanueva-Cortez, Guzman-Ventura and Rodriguez-Nunez are expected to have their initial appearances in the next week in federal court in Greenbelt.

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

The following defendants were named in the superseding indictment, and charges remain pending against them in the second superseding indictment:

Jorge Enrique Moreno-Aguilar, aka “Flaco” and “Castigato,” age 20, of District Heights, Maryland; Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 25, of District Heights; Melvin Marquez-Sanchez, aka “Demente,” age 19, formerly of New York; Carlos Beltran-Flores, aka “Joker,” age 22, of Hyattsville, Maryland; Wilmer Argueta, a/a “Chengo” and “Happy,” age 22, of Hyattsville; Eric Antonio Mejia-Ramos, aka “Flaco,” age 20, of Hyattsville; Minor Perez-Chach, aka “Minor Chach-Perez,” “Little Bad” and “Bryant Sacarias, age 23, of Hyattsville; and
Miguel Angel Manjivar, aka “Garra” and “Masflow,” age 22, of Hyattsville.

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

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Devontae West, age 26, of Washington, D.C., today to 12 years in prison, followed by 15 years of supervised release, for possession of child pornography and conspiracy to commit bank robbery. Chief Judge Chasanow ordered that upon his release from prison, West must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to his plea agreement, West and his co-conspirators stole vehicles to use during bank robberies, designated a co-conspirator to act as a getaway driver, wrote demand notes to present to bank tellers, used juveniles to enter the banks to demand money, used cell phones to maintain constant contact during the bank robberies and divided the proceeds of the bank robberies amongst themselves.

More specifically, on five occasions from March 20 to May 22, 2013, West and others, including juveniles, drove to the following bank branches where his conspirators stole a total of $14,598: SunTrust Bank in Clifton, District Heights and Forestville, Maryland; Capitol One Bank in Landover Hills, Maryland; and TD Bank in Washington, D.C. Also, on May 13, 2013 West and his conspirators drove to Capitol One Bank in Suitland, Maryland to rob the bank, but left without having obtained any money.

Additionally, on May 5, 2013 West had sex with a 15 year girl who he had directed to help him rob banks. West took eight pictures of the girl having sex with him. These pictures were on West’s cell phone when he was arrested.

Co-conspirator Calvin Manning also pleaded guilty to bank robbery. Manning admitted to robbing the Sun Trust Bank in District Heights on March 25, 2013, which is one of the bank robberies in which West participated. Chief Judge Chasanow sentenced Manning on June 12, 2014 to four years in prison.

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 Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas and Assistant U.S. Attorney Thomas Sullivan, who prosecuted the case.

Greenbelt, Maryland - A federal grand jury has indicted Sean Aude Gallman, age 37, of Upper Marlboro, Maryland, and his brother Eric Maurice Gallman, age 41, of Huntersville, North Carolina, today on charges arising from a $16.5 million fraudulent tax scheme.

The indictment 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.

“Because of the greed of Sean Gallman and Eric Gallman, the U.S. taxpayer was defrauded of over $16 million. The Gallmans used business entities and addresses in different states to create an elaborate scheme to hide their stolen funds.” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “The indictment announced today reinforces the commitment by law enforcement and the Maryland United States Attorney’s Office that individuals who steal from the government will be held accountable.”

The three count indictment alleges that Sean and Eric Gallman established trusts and business entities, including Gallman Charitable Trust and LEA Group Holdings Trust. The defendants used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the Trusts.

Acting as the trustee and agent of the Gallman Charitable Trust, on or about January 4, 2013 Sean Gallman allegedly mailed to the IRS a fraudulent 2012 tax return in the name of the trust, requesting a refund of $8,218,930. Also around this time and as the trustee and agent of LEA Group Holdings Trust, Eric Gallman allegedly mailed to the IRS a fraudulent 2012 tax return in the name of the trust, requesting a refund of $8,293,562.

The indictment alleges that the defendants knew that the Trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled.

The indictment seeks forfeiture in the total amount of $16,512,492, the amount of the two refunds.

The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail fraud; 10 years in prison for conspiring to defraud the government; and five years in prison for false claims against the government. An initial appearance is expected to be scheduled for both defendants in the next two weeks in U.S. District Court in Greenbelt.

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 IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Thomas P. Windom, who is prosecuting the case.

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

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Mokorya Cosmas Wambura, age 41, of Takoma Park, Maryland today to five years in prison followed by five years of supervised release for conspiring to commit wire fraud and aggravated identity theft arising from two separate residential mortgage fraud schemes. Chief Judge Chasanow also ordered Wambura to pay restitution of more than $400,000.

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

"This investigation demonstrated that through the cooperative investigative efforts with our law enforcement partners, those who commit fraud affecting financial institutions of the United States will be brought to justice," said John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.

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

During the second fraud scheme from July 2007 to May 2009, co-conspirator Mrisho Mzese sold his residence in Silver Spring, Maryland to Wambura, and attempted to conceal the scheme by using the identity of Wambura’s friend and roommate as the purported buyer. Wambura again made false statements about the buyer’s assets and income. For example, Wambura listed a joint credit union account held by Wambura and his friend as an asset, which Wambura created without his friend’s knowledge. After securing the mortgage and obtaining possession of the residence, Wambura continued to use his friend’s stolen identity to become a Section 8 landlord for federally subsidized funds. Wambura received portions of the monthly rent paid by the tenant. Wambura and Mzese also caused $29,186 in government housing program assistance checks, payable to Wambura’s friend, to be mailed to Wambura.

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

Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 37, of Severn, Maryland, previously pleaded guilty to the conspiracy and to aggravated identity theft, and has agreed to forfeit a Range Rover vehicle. Tibakweitira is scheduled to be sentenced on November 3, 2014 at 10:00 am.

Mrisho Mavuruma Mzese, age 39, of Clarksburg, Maryland, was convicted at trial on May 1, 2014 on 11 counts including conspiracy to commit wire and mail fraud, wire fraud, mail fraud and aggravated identity theft, based on his participation in the second fraud scheme in which he engaged with Wambura. Mzese's sentencing is scheduled for August 7, 2014 at 2:00 pm.

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

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

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

Baltimore, Maryland -U.S. District Judge J. Frederick Motz sentenced Michael Darnell Boswell, Jr., age 31, of Raleigh, North Carolina, today to 46 months in prison followed by three years of supervised release for interstate transportation of women for prostitution. Judge Motz ordered that upon his release from prison, Boswell must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to his plea agreement, from January through June 2013, Boswell recruited at least two young women who were struggling financially and transported them to Maryland, Virginia and North Carolina for prostitution. Boswell promised to help them earn more money through his entertainment business. In one case, Boswell first told a woman that he would set up dances and private parties for her, and only later did Boswell begin to set up commercial sex acts for the women. Boswell set up so called “dates” using online ads that advertised sex. Boswell arranged multiple sex acts per day and provided the women with drugs.

On June 20, 2013, Anne Arundel County police arrested Boswell and the two women near the BWI airport, after detectives saw Boswell drive the women from a hotel to local businesses around the airport. The arrest came after Boswell had arranged for a woman to have sex with an undercover detective and was seen driving the woman to a hotel. According to evidence presented to the court, in the year prior to his arrest, Boswell had been arrested twice for trafficking prostitutes. In total, Boswell has been arrested for sex trafficking four times in three states.

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

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore and Anne Arundel County Police Department for their work in the investigation, and praised the Henrico County Police Department in Virginia and the Raleigh Police Department in North Carolina for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Justin S. Herring and Ayn B. Ducao, who prosecuted the case.

Settles Claims that Care at Skilled Nursing Facilities in Baltimore and Elsewhere
Was Substandard or Worthless

Baltimore, Maryland - Foundation Health Services, Inc. (FHS), its affiliated nursing facilities, and its president and chief executive officer Richard Daspit, Sr., have agreed to pay $750,000 to the United States and the State of Maryland to resolve allegations that they submitted false claims for payment to Medicaid and Medicare for materially substandard and/or worthless skilled nursing facility services. FHS is a Louisiana not-for-profit company that owns and manages nine nursing facilities in Pennsylvania, Mississippi, Virginia and Maryland, including Rock Glen Nursing and Rehabilitation Center, and Harborside (formerly Ravenwood) Nursing Center, both located in Baltimore City.

The settlement agreement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS OIG); and Maryland Attorney General Douglas F. Gansler.

The settlement resolves allegations that between 2006 and 2010, some of the skilled nursing services provided at several nursing facilities managed by FHS were materially substandard and/or worthless because FHS failed to (a) follow appropriate fall protocols; (b) follow appropriate pressure ulcer and infection control protocols; (c) properly administer medications to avoid medication errors; (d) appropriately provide for activities of daily living including bathing, monitoring, feeding and supervising for some residents; (e) provide appropriate mental health treatment; (f) answer call lights promptly; (g) employ a sufficient number and skill-level of nursing staff to adequately care for the residents; and (h) provide a habitable living environment, adequate equipment and needed capital expenditures. The United States and the State of Maryland further claimed that as a result of these failures of care, some residents allegedly suffered from falls, fractures, head injuries; malnutrition; dehydration; pressure sores and infections. FHS and the other released parties deny the allegations.

The government opened its False Claims Act investigation in the summer of 2010 when all of the residents of Ravenwood Healthcare, Inc., a Baltimore nursing facility operated by FHS, needed to be evacuated due to a breakdown of its air conditioning system. The temperatures during that July holiday weekend reached over 100 degrees. The government’s investigation uncovered other quality of care concerns at Ravenwood, the Rock Glen Nursing and Rehabilitation Center, also located in Baltimore, and at a Pennsylvania facility owned by FHS. FHS subsequently closed Ravenwood.

As part of the settlement, FHS and its related facilities have agreed to enter into a Corporate Integrity Agreement with HHS OIG. The agreement requires an independent monitor and allows HHS OIG to oversee the quality of care provided at all of the skilled nursing facilities associated with FHS over the next five years.

“Ensuring quality nursing home care is a top priority for the Office of Inspector General,” said Special Agent in Charge Nick DiGiulio, HHS Office of Inspector General, Philadelphia Regional Office. “It is unthinkable that nursing home owners would profit by skimping on needed health services, and basic facility maintenance, then sit back while vulnerable residents suffer. We will continue to hold nursing homes accountable to give residents the quality health services, and living conditions, we pay them to provide.”

U.S. Attorney Rod J. Rosenstein commended the HHS-OIG, the Maryland Attorney General’s Medicaid Fraud Control Unit and Civil Division of the Department of Justice for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas F. Corcoran, who handled the case

Baltimore, Maryland - Mervyn A. Phelan, Sr., age 74, of Newport Beach, California, and Gregory E. Grantham, age 56, of Oceanside, California, pleaded guilty late yesterday to a wire fraud conspiracy, wire fraud and obstruction of justice.

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

Phelan operated a small company called IAG Underwriters, LLC that maintained an office in Newport Beach, California. IAGU was in the business of underwriting loan applications submitted by real estate developers and then locating project financing from banks and other financial entities. Grantham, an attorney, held the position of IAGU’s general counsel on a part-time basis as a contract employee.

According to their plea agreements and court documents, between mid-2010 and August 2011, Phelan and Grantham became involved in a fraudulent scheme carried out by Patrick McCloskey and Brian McCloskey, who both resided in Baltimore County. McCloskey owned a real estate development business known as the McCloskey Group, LLC, while Belzner, a home builder, began working with McCloskey in late 2008 or early 2009. Phelan and IAGU began working with the McCloskey Group trying to locate sources of financing for its projects in about 2009.

Beginning in 2009 and continuing through June 2011, Belzner and McCloskey persuaded a series of private money lenders to loan them funds to establish that the McCloskey Group had additional reserves of liquidity that would supposedly help it obtain loans it was seeking in connection with real estate development projects through IAGU. Belzner and McCloskey falsely represented that the funds would be maintained in an escrow account under the control of Kevin Sniffen, a licensed attorney and escrow agent in Baltimore County; that the funds would not be used for any other purpose; and that the money would be returned to the lender, either upon the funding of the loan or after a specified period of time. In return for this temporary use of the lender 's funds, Belzner and McCloskey promised to pay substantial fees or interest. In fact, once the lenders transferred their funds into the escrow accounts, Belzner directed McCloskey to remove those funds from the escrow accounts without the knowledge or permission of the lenders. Belzner and McCloskey then used the majority of the stolen funds to pay for their personal and business expenses. The total losses resulting from the scheme were approximately $20 million. Belzner, McCloskey, and Sniffen have all previously entered guilty pleas in connection with their role in the scheme.

Beginning in about the late summer of 2010, Phelan and Grantham co-operated with Belzner and McCloskey in their scheme to defraud by (1) making false representations to help persuade private lenders and investment partnerships to loan sums of money to the McCloskey Group for the purposes of meeting “liquidity” requirements imposed by IAGU or various prospective lenders and to place these funds in an escrow account controlled by Kevin Sniffen; and by (2) making false representations to dissuade previous escrow account lenders from demanding the return of their funds when the original time period established for the loan expired without the McCloskey Group obtaining financing for the project in question. In particular, Phelan and Grantham repeatedly advised various escrow account lenders that funding on a particular project was imminent when they knew this was not the case, and in one case represented that they were now holding millions of dollars in escrow funds tendered by one group of lenders when this was not true.

While Phelan and Grantham admitted that they made false statements to escrow account lenders during the scheme at Belzner’s and McCloskey’s behest, they asserted that for most of the time period in question, they did not know that Belzner and McCloskey had previously stolen the escrow account funds. Under his plea agreement, however, Grantham admitted that he was criminally responsible for the loss of $1.2 million funds suffered by an investment entity named Murcielago, LLC in June 2011. As part of his plea agreement, Phelan admitted that he was criminally responsible for the loss of more than $2.5 million in escrow funds and pled guilty to a count charging him with making false representations about the control of $4.350 million in escrow funds to an escrow account lender in November 2011. The government continues to maintain that Phelan and Grantham shared criminal responsibility for the loss of over $20 million in escrow funds. The Court will consider evidence and make a finding on this issue at the defendants’ respective sentencings.

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

Phelan and Grantham face a maximum sentence of 20 years in prison each on each charge of conspiracy and wire fraud, as well as a maximum sentence of five years in prison for obstruction of justice. U.S. District Judge James K. Bredar has scheduled sentencing for Phelan and Grantham on September 8 and 15, 2014, respectively.

Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Glen Arm, Maryland, Brian McCloskey, age 42, of Baltimore and Kevin Sniffen, age 52, of Phoenix, Maryland have each pleaded guilty to their roles in the conspiracy and are awaiting sentencing.

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

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

Allegedly Altered Monthly Statements to Hide Investment Losses

Baltimore, Maryland - A federal grand jury has indicted Jagveer Singh, age 55, of Clarksville, Maryland, on charges of securities fraud. The indictment was returned yesterday and Singh was arrested today.

The indictment 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.

Singh was an investment advisor who provided investment advice and services to clients in Maryland through two companies he owned, A&S Financial Services, Inc. and later, Synergia Capital Management, LLC. A&S provided financial planning, investment advice and tax services to affluent investors and small businesses. Synergia provided consulting and advisory services in the areas of financial planning, investment advice and business development and management. Both companies were located in Clarksville.

Singh has a Ph.D. in molecular biology, an MBA degree from The Johns Hopkins University, and worked as a licensed stockbroker from 2000 to 2002 at a large financial investment company.

According to the one count indictment, from January 2008 to June 2010, Singh altered a client’s monthly statements from an on-line brokerage firm that executes purchases and sales of securities, before providing those statements to the client, in order to conceal investment losses. Singh increased the market value shown on the monthly statement for numerous securities. In all, Singh altered over 24 monthly statements to hide between $224,747.34 and $53,186.76 in losses in any given month. In addition, during the time when Singh was altering his client’s monthly statements, the account suffered a total loss of about $310,310.70. During this time, Singh obtained $14,382.52 in commissions from the client.

The indictment seeks forfeiture of $324,693.22.

Singh faces a maximum sentence of 25 years in prison followed by three years of supervised release and a fine of $250,000. Singh is scheduled to have his initial appearance today at 3:30 p.m. in U.S. District Court in Baltimore.

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

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

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

Ex-Husband Previously Sentenced to Over 24 Years for Producing Child Pornography and Attempting to Entice a Minor to Have Sex

Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Lori Fisher, age 46, formerly of Bel Air, Maryland, today to five years in prison followed by five years of supervised release for distributing child pornography. Judge Bredar ordered that upon her release from prison, Fisher must register as a sex offender in the place where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to her plea agreement and court documents, at the request of her then husband David Fisher, Lori Fisher took approximately 50 photos, a number of which were sexually explicit, of two minor females on at least two occasions between August and December of 2008. Lori Fisher took the photos with her cell phone and texted the images to David Fisher. The Fishers have subsequently divorced.

On November 4, 2012, the Baltimore Police Department received information that images and videos of child pornography were seen on David Fisher’s external hard drive at his residence. A search warrant was executed at David Fisher’s home on November 20, 2012, and computers, cell phones and other items were seized. The sexually explicit images of the victims were found on the computer and cell phone. In all, over 2,200 images and 100 videos of minors engaged in sex, including prepubescent minors, were recovered.

On March 14, 2013, an undercover police detective contacted David Fisher on Facebook posing as a 14 year old female. David Fisher subsequently communicated with the undercover detective through Facebook and email, often using a computer at a public library because his home computer was seized during the search of his residence in November 2012. David Fisher gave the undercover detective his cell phone number and proposed meeting to engage in sex. A meeting was arranged for April 11, 2013. David Fisher was arrested when he arrived at the meeting.

Judge. Bredar sentenced David Ralph Fisher, age 43, of Baltimore, on April 22, 2014 to 293 months in prison followed by lifetime supervised release for producing child pornography and attempting to entice a minor to engage in sex.

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, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Baltimore, Maryland - A criminal complaint was filed late yesterday under seal charging Samuel L. Morison, age 69, of Crofton, Maryland, with theft of government property, specifically, historical records related to his grandfather, Rear Admiral Samuel Eliot Morison. Morison was arrested today. The complaint was unsealed at his initial appearance held earlier today in U.S. District Court in Baltimore. Morison was released under the supervision of U.S. Pretrial Services. One of the conditions of his release is that he is prohibited from visiting libraries and archives without prior court approval.

According to the affidavit filed in support of the criminal complaint, on April 12, 2014, Morison allegedly offered to sell records relating to Rear Admiral (RADM) Morison’s work during World War II to the owner of a bookstore, who subsequently agreed to take possession of the records, place them on consignment through his shop and sell them using eBay. On May 12, 2014, special agents assigned to the Archival Recovery Team (ART) with the National Archives and Records Administration reviewed the historical records being offered for sale through eBay. The records were determined to belong to the Naval History and Heritage Command, Operation Archives Branch, Naval Historical Center (Navy Archives), and to be the property of the U.S. government.

The affidavit alleges that on May 21, 2014, a search warrant was executed at Morison’s residence and approximately 34 boxes of government records and property stolen from the Navy Archives were seized. The investigation revealed that Morison was a part-time researcher at the Navy Archives from March 19, 2010, and had access to the records, known as the “Office Files of RADM Morison Papers.” Morison was never given authority to remove the records from the Navy Archives.

Morison faces a maximum sentence of 10 years in prison for theft of government property.

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

United States Attorney Rod J. Rosenstein praised NCIS and NARA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James G. Warwick, who is prosecuting the case.

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Eric Olaniyan, age 53, a Nigerian citizen residing illegally in Laurel, Maryland, today to 21 months in prison followed by three years of supervised release for conspiring to commit interstate transportation of stolen vehicles. Upon completion of his sentence, Olaniyan will be transferred into ICE custody pending immigration removal proceedings. Judge Motz also entered an order that Olaniyan pay $65,040.46 in restitution.

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); U.S. Customs and Border Protection Baltimore Port Director Andrii Melnyk; and Chief Mark A. Magaw of the Prince George’s County Police Department, Washington Area Vehicle Enforcement (WAVE) unit.

According to Olaniyan’s plea agreement, from 2012 through April 22, 2013, Olaniyan and others shipped stolen cars from the United States to countries in West Africa for resale. The conspirators hired others to steal the vehicles with the keys, so that the vehicles could be more easily sold. Olaniyan was paid cash to store the stolen vehicles at a parking lot or other locations, known as “cooling spots.” The stolen vehicles were subsequently loaded into containers and shipped to buyers in Africa.

In early March 2013, a Prince George’s County Police detective located three stolen vehicles parked near Olaniyan’s residence. The movements of the vehicles were tracked through April 2, 2014, and all eventually ended up at warehouses known to be used for loading shipping containers that are exported from the United States. On April 12, 2014, the CBP Baltimore Vehicle Export Team examined the contents of a container and located the three stolen vehicles in the container, as well as a fourth vehicle which had also been reported stolen.

On April 22, 2013, a search warrant was executed at Olaniyan’s apartment. Eight stolen vehicles were found parked in the area. The keys to all eight stolen vehicles were seized from Olaniyan’s apartment, along with a counterfeit vehicle title for one of the vehicles.

The loss associated with the vehicles for which Olaniyan participated in the scheme was over $200,000.

United States Attorney Rod J. Rosenstein commended the HSI Baltimore, CBP and Prince George’s County Police Department WAVE unit for their work in the investigation. Mr. Rosenstein also praised the Howard County Police Department, Maryland State Police and the Regional Auto Theft Task Force (RATT) for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Prostituted a 14 Year Old Female

Baltimore, Maryland - Eric Evans, age 35, of Baltimore pleaded guilty today to sex trafficking involving a 14 year old girl.

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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.

On May 29, 2014, co-defendant Kenneth Ronald Robinson, age 52, of Baltimore, pleaded guilty to the same charge. Co-defendants Cheralyn Crawford, a/k/a “Rachel,” age 25, of Baltimore; Jeffrey Clark, age 43, of Nottingham, Maryland; and Craig Judy, age 29, of Baltimore; pleaded guilty on May 22, 21 and 19, 2014, respectively, to using the Internet to promote a minor to engage in prostitution.

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

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

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

Evans and the government have agreed that if the Court accepts his plea, he will be sentenced to between 120 and 140 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for Evans on September 9, 2014 at 3:00 p.m.

Robinson faces a minimum of 10 years and up to life in prison at his sentencing on September 11, 2014 at 3:30 p.m. Crawford, Clark, and Judy each face a maximum sentence of five years in prison. Judge Bennett scheduled sentencing for Crawford and Clark on August 14, 2014 at 10:00 a.m. and 3:00 p.m., respectively; and for Judy on August 21, 2014, at 3:00 p.m. Robinson, Clark and Judy remain detained. Crawford is released under the supervision of U.S. Pretrial Services.

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

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

United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao, P. Michael Cunningham and Rachel M. Yasser, who are prosecuting the case.

Developed Relationships with Religious Groups as Part of the Scam

Greenbelt, Maryland - Husband and wife Shannon and Yvette Johnson, ages 50 and 52, respectively, of Laytonsville, Maryland, and Corona, California, pleaded guilty to charges in connection with a fraudulent advance fee scheme and tax evasion. Yvette’s guilty plea was today and Shannon pleaded guilty on June 2, 2014.

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

“Fraud schemes cause tremendous financial damage to everyone, especially members of our community. Engaging in an advance fee scheme and under reporting taxable income is unlawful and honest law abiding citizens are fed up with the likes of those motivated merely by greed,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “IRS Criminal Investigation welcomes opportunities to assist the Department of Justice and their law enforcement partners with dismantling fraud schemes such as this and enforcing the nation’s tax laws.”

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

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

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

Shannon Johnson and the government have agreed that if the Court accepts his plea, he will be sentenced to between four and six years in prison for conspiracy to commit wire, mail fraud, and tax evasion. Yvette Johnson faces a maximum of five years in prison for tax evasion. Shannon Johnson is detained. His bail was revoked in September, 2013, after the Court found that there was probable cause to believe that he attempted to commit another fraud while on pre-trial release for the pending charges in this case. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for Shannon Johnson on September 8, 2014 at 11:30 a.m. and for Yvette Johnson on September 29, 2014 at 9:30 a.m.

As part of his plea agreement, Shannon Johnson will be required to forfeit at least $3.7 million. As a special condition of their supervised release, Shannon and Yvette Johnson will both be required to cooperate with the IRS in determining all taxes owed for tax years 2002 thought 2009, and to pay the IRS all additional taxes, interest and penalties.

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

Transported Contraband Cigarettes from Maryland to New York

Baltimore, Maryland - Adam Azerman, age 59, of Pikesville, Maryland, pleaded guilty today to conspiracy to traffic in contraband cigarettes.

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; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.

According to his guilty plea, Azerman conspired with other to receive, possess, sell and distribute contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. Co-conspirators obtained contraband cigarettes, which were transported from Maryland to Brooklyn, New York, and sold at a profit to individuals in New York, who further distributed the contraband cigarettes.

Azerman transported contraband cigarettes from Maryland to Brooklyn, using a van registered in his name. Following a delivery of contraband cigarettes in Maryland, members of the conspiracy arranged for the contraband cigarettes to be loaded into Azerman’s van. Azerman drove his van from Maryland to Brooklyn, New York, where he met a co-conspirator and provided him with the keys to the van. The co-conspirator would take the van and return a few hours later, after having unloaded the contraband cigarettes into a nearby warehouse. Azerman would drive the van back to Maryland. On the days that Azerman transported contraband cigarettes, he used his cell phone to communicate with co-conspirators in New York and Maryland.

Co-conspirators in Maryland purchased quantities of contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area. These transactions included thousands of cartons of contraband cigarettes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes). The total tax evaded was more than $1 million.

Azerman faces a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for September 11, 2014 at 1:00 p.m.

United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.

Baltimore – U.S. District Judge William D. Quarles sentence Andres Dorantes Flores, age 43, of Elkton, Maryland today to 175 months in prison for soliciting others to kidnap a 10 year old boy.

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; Cecil County Sheriff Barry A. Janney, Sr.; and Cecil County State’s Attorney Ellis Rollins.

According to Flores’ plea agreement, beginning in at least July 2012, Flores solicited others to kidnap a 10 year boy. The families of Flores and the boy had been friends. Flores approached an acquaintance and suggested kidnaping the boy and demanding a $300,000 ransom from the boy’s father. Flores continued to solicit the acquaintance to help with the kidnapping in subsequent meetings. Flores provided pictures of the boy and his family to the acquaintance.

On August 15, 2012 Flores arranged a meeting with the acquaintance and two men that Flores believed were from Philadelphia who had come to kidnap the victim as part of Flores’ plot. Flores told the men that he had thought the plan through and provided them with instructions to carry out the kidnapping. Flores arranged for the men take the boy from his home in Maryland to Philadelphia where Flores believed the men resided. Flores told the men that after they received the $300,000 ransom, they would each get $75,000. Flores was arrested following the meeting.

United States Attorney Rod J. Rosenstein praised the FBI, Cecil County Sheriff’s Office and Cecil County State’s Attorney’s Office for their work in the investigation and thanked the New Castle County, Delaware Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

Committed 22 Armed Robberies of Stores and Businesses

Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Quindell Ryeshawn Gardner, age 22, of Baltimore, Maryland today to 17 years in prison, followed by five years of supervised release, for a commercial robbery conspiracy and possession of a firearm in furtherance of a crime of violence. Judge Garbis also ordered Gardner to pay restitution of $4,291.

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

According to his plea agreement, Gardner, Tavon McPhaul and others robbed stores in the Baltimore area. After deciding which place to rob, the conspirators would steal a car to use during the robbery. They also used a gun during the robberies to steal cash and cigarettes.

Gardner admitted that he committed approximately 22 armed robberies and co-conspirator McPhaul participated in 12 of those robberies, with Gardner going into the store to commit the robbery and McPhaul driving the getaway vehicle. Between June 28 and July 4, 2012, Gardner and McPhaul robbed five Baltimore area convenience stores, including a convenience store in the 6300 block of Eastern Avenue in Baltimore on July 4, 2012. Gardner used a short-barreled shotgun in each of the robberies.

Gardner was arrested following two convenience store robberies on July 4, 2012, after a car chase. Gardner’s clothing matched that of the individual who participated in both robberies that day. McPhaul, who was driving the getaway car, escaped on foot. While running, McPhaul attempted to wipe the firearm clean with a blanket. A sawed-off shotgun was recovered along the path of McPhaul’s escape. The vehicle driven by McPhaul during the robbery was found to be stolen.

Tavon McPhaul, also age 22, of Baltimore, previously pleaded guilty to the same charge and was sentenced to 145 months in prison and was also ordered to pay restitution of $4,291.

United States Attorney Rod J. Rosenstein praised the FBI, the Baltimore City and Baltimore County Police Departments and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Benjamin M. Block, 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 Tonia Patrice Lawson, age 43, of Middle River, Maryland, today to 10 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 Lawson 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 involving fraudulent refund identity theft schemes damage the integrity of the U.S. financial system and can seriously impact the lives of those victimized. We as taxpayers ultimately pay the price for the greed of these unscrupulous criminals,” 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 to victimize members of our community for their own personal gain.”

According to Lawson’s plea agreement, from February 2010 through April 2013, Lawson, who was unemployed, conspired with her daughters Kiara Skipwith and Jasmine Thomas and with Sheila Anderson-Cloude, 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 did not provide any income information. False wages and educational expenses were used to falsely claim tax credits. Lawson, Anderson-Cloude, 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 Lawson and her co-conspirators was the difference between the refund claimed on each tax return and the smaller amount actually paid to the recruit.

Over the course of the scheme, Lawson conspired in the filing of 84 fraudulent tax returns with a resulting loss to the government of $546,785.

Sheila Anderson-Cloude, age 34, of Notthingham, Maryland, Jasmine L. Thomas, age 26, of Baltimore; and Kiara A. Skipwith, age 24, of Parkville, Maryland, previously 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. Anderson-Cloude is scheduled to be sentenced on July 29, 2014.

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

United States Attorney Rod J. Rosenstein praised 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.

Destroyed Electronic Monitoring Equipment When She Fled

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Crystal Barner, age 28, of Baltimore, today to 14 months in prison for failing to report to serve her sentence in a previous case. Judge Garbis ordered that today’s sentence be served consecutive to Barner’s 33 month sentence in that case.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; U.S. Marshal Johnny Hughes; Special Agent in Charge Brian Murphy of the United States Secret Service – Baltimore Field Office; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to the facts presented at her plea hearing, on December 5, 2013, Barner was sentenced to 33 months incarceration (after credit for time served) and ordered to surrender to serve her sentence on January 6, 2014. This was memorialized in a Judgment entered on December 9, 2013, which stated that Barner should report to the institution designated by the Bureau of Prisons at the date and time specified in a written notice that would be sent to her. If she did not receive such a written notice, Barner was ordered to surrender to the United States Marshal before 2 p.m. on Monday, January 6, 2014.

After the sentencing hearing, Barner was required to go to the Marshals Service to verify her residence. Barner falsely verified her address, although she had moved from that address several months earlier. As a result, Barner did not receive the written notice of where she was supposed to self-surrender to the Bureau of Prisons, nor did she comply with the Court’s Judgment by surrendering to the United States Marshall before 2 p.m. on Monday, January 6, 2014.

When she failed to surrender, Barner was contacted by her Pre-trial Services officer, and told him she would self-surrender. During a subsequent telephone conversation, she told him she was in the area looking for parking. In fact, Barner had absconded from supervision and removed and discarded or destroyed her electronic monitoring equipment.

Barner was previously convicted for her role in a scheme to defraud financial institutions by stealing credit cards from the wallets and purses of unsuspecting individuals, then using the stolen credit cards to make purchases. During the course of the conspiracy, Barner and others obtained goods, services and extensions of credit in the amount of $142,717.61, and caused losses to or used the identities of between 10 and 50 financial institutions, businesses and individuals.

United States Attorney Rod J. Rosenstein thanked the U.S. Marshal Service, who apprehended Barner after she fled. Mr. Rosenstein also recognized the U.S. Secret Service, Maryland Transportation Authority Police, Baltimore County Police Department, Baltimore City Police Department, and Atlantic City, New Jersey Police Department for their work in the previous investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera L. Fine, who prosecuted 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 Mark Brunelle, age 47, of Baltimore, today to 51 months in prison, followed by three years of supervised release, for a wire fraud conspiracy in connection with a scheme to steal merchandise from large retailers, then return the stolen items to the stores in exchange for gift cards. Judge Russell also ordered Brunelle to pay over $210,000 in restitution.

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 through February 2013 Brunelle participated in a conspiracy with Melissa Perry, Deanna Lynch and others, known as boosters, to steal 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. The 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. For example, throughout the month of February 2012, Brunelle made returns on seven different days totaling over $1,700 to eight different Home Depot stores in Howard, Baltimore, and Prince George’s Counties in Maryland and Falls Church, Alexandria, and Fairfax Counties in Virginia.

Co-conspirator John Tadros, who 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, bought the fraudulently obtained gift cards from the boosters for 50% of the card’s value. If Tadros was not present or was otherwise occupied, Tadros instructed store manager Mohamed Al-Omeri, or other store employees, to purchase the cards on his behalf.

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

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

John Tadros, age 45, Melissa Perry, age 34; Deanna Lynch, age 44, and Mohamed Al-Omeri, age 39, all of Baltimore, previously pleaded guilty to their participation in the scheme. Tadros is scheduled to be sentenced on July 1, 2014 at 9:30 a.m. 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.

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

United States Attorney Rod J. Rosenstein praised the 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 is prosecuting the case.

Used a Watch Camera to Surreptitiously Film the Victim

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Ronald Davis Pope, age 49, of Mechanicsville, Maryland, today to 235 months in prison, followed by lifetime supervised release, for production of child pornography. Chief Judge Chasanow ordered that upon his release from prison Pope must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The guilty plea 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; St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.

According to Pope’s plea agreement, from February through May 2013, Pope lived with a family and shared a bathroom with the victim, a 14 year old male. Pope placed a watch containing a hidden camera in the bathroom and recorded the victim in the shower and using the bathroom. The camera was placed in a location that allowed Pope to capture videos focused on the victim’s genital area. Pope then transferred the videos to his computer and cellular phone. The victim was not aware that he was being recorded.

On May 2, 2013, federal and state law enforcement officials executed a search warrant at Pope’s residence and seized electronic devices, including Pope’s cellular phone and laptop computer. A forensic analysis of the SD card found in the cellular phone and the laptop recovered a total of 18 videos depicting the victim dressing, undressing, showering and using the restroom. The victim’s penis is exposed in at least 12 of the videos. At least one of the five videos found on the laptop appears to be part of the same video recovered on the cellular phone.

On May 7, 2013, a package addressed to Pope arrived at his residence. The package contained a weather clock hidden camera purchased on May 1, 2013, one day before Pope’s arrest. Later that month, one of Pope’s family members retrieved a package from a post office box belonging to Pope, which contained an HD clock DVR, USB cord and a micro SD card.

In June 2013, federal law enforcement officials seized the camera watch used to record the videos of the victim. Subsequent forensic analysis of the watch camera memory revealed three videos, one of which depicts the victim showering. The spy camera watch also contained an image of Pope’s face.

Chief Judge Chasanow ordered that Pope’s federal sentence run concurrent to the sentence imposed in a case pending the St. Mary’s County Circuit Court involving a separate victim. In that case, Pope has agreed to plead guilty to sexual abuse of a minor and be sentenced to 25 years in prison with all but 20 years suspended. His sentencing in that case is scheduled for 1:30 p.m. today.

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, St. Mary’s County Sheriff’s Office and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kristi N. O’Malley and Nicolas Mitchell, who prosecuted the case.

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

Baltimore, Maryland - Baltimore, Maryland – Jason Dietz, age 34, of Timonium, Maryland, pleaded guilty today to theft of funds from a federal program, in connection with the theft of at least $571,205 in grant money from the National Institute for Drug Abuse for research conducted at its facilities in Baltimore.

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

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

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

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

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

As part of his plea agreement, Dietz is required to pay restitution in the full amount of the loss. While the exact amount of the loss will be determined at sentencing, it is at least $571,205.

Dietz faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for September 8, 2014 at 9:00 a.m.

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

Fourteenth Officer Pleads Guilty

Baltimore, Maryland - Correctional officer Sean Graves, age 48, of Windsor Mill, Maryland, pleaded guilty today to participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).

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; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.

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

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

Graves, a correctional officer at BCDC, admitted that he smuggled contraband into the jail from 2011 to 2013. Graves smuggled in marijuana, tobacco and other contraband on behalf of BGF leader Tavon White. Graves smuggled drugs such as Percocet and marijuana into BCDC for distribution by BGF inmates, and acted in concert with other correctional officers.

Graves faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for September 12, 2014 at noon.

Twenty-four of the 44 defendants charged in the conspiracy have pleaded guilty, including 14 correctional officers. One defendant has died. Trial is scheduled to begin November 17, 2014 for the remaining defendants.

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

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

Greenbelt, Maryland – A federal grand jury indicted Travis Wetzel, age 35, of Frederick, Maryland on charges arising from the illegal transfer of $1,282,224 from a client’s annuity account. The indictment was returned on May 28, 2014 and Wetzel was arrested today.

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.

Wetzel was a financial advisor, employed with an investment advisory firm located in Rockville, Maryland. In 2009, Wetzel was promoted to branch operations manager. According to the 24 count indictment, from July 2010 to September 2012, Wetzel took a total of approximately $1,282,224 from an annuity account of a client without the client’s knowledge, and used the money for his personal benefit. Wetzel also allegedly laundered at least $376,444 of the money he took by transferring the money to other bank accounts he controlled.

Wetzel faces a maximum sentence of 20 years in prison and a $250,000 fine for wire fraud; and 10 years in prison for money laundering. An initial appearance was held for Wetzel this afternoon at 1:45 p.m. in the U.S. District Court in Greenbelt. Wetzel was 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.

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

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

Prostituted a 14 Year Old Female

Baltimore, Maryland - Kenneth Ronald Robinson, age 52, of Baltimore pleaded guilty today to sex trafficking involving a 14 year old girl. Co-defendants Cheralyn Crawford, a/k/a “Rachel,” age 25, of Baltimore, Jeffrey Clark, age 43, of Nottingham, Maryland; and Craig Judy, age 29, of Baltimore, pleaded guilty on May 22, May 21 and May 19, 2014, respectively to using the Internet to promote a minor to engage in prostitution.

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

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

Following her recovery and during subsequent interviews of victim, it was learned that, at Robinson’s direction, the victim had been staying with Crawford and Judy and had been performing commercial sex acts from that hotel for approximately four days. At Robinson’s request, Crawford took photographs of the minor victim in sexually explicit poses and, using Clark’s cellular phone, she and Judy posted those photos in advertisements on an internet website to advertise the victim’s prostitution services. Judy admitted that he reloaded pre-paid Green Dot cards used to pay for advertisements for prostitution on the Internet website with the commercial sex earnings of the minor victim and co-defendant Crawford, who was also a prostitute. A subsequent search of Clark’s cellular phone revealed that it contained photos of both the minor victim and Crawford used on the Internet website’s commercial sex advertisements. At Robinson’s direction, Clark transported the minor victim to motels, stores and restaurants in the Towson, Maryland, area. One of the motel rooms used by the victim, Crawford, and Judy was registered to Clark. Phone records show that Robinson’s cellular phone was in contact with the victim’s phone 45 times between June 12 and June 19, 2013; and with Clark’s phone 18 times between June 15 and June 19, 2013.

Robinson faces a mandatory minimum of 10 years in prison and up to life in prison for sex trafficking. U.S. District Judge Richard D. Bennett has scheduled sentencing for Robinson on September 11, 2014 at 3:30 p.m.

Crawford, Clark, and Judy each face a maximum sentence of five years in prison. Judge Bennett scheduled sentencing for Crawford and Clark on August 14, 2014 at 10:00 a.m. and 3:00 p.m., respectively; and for Judy on August 21, 2014, at 3:00 p.m. Robinson, Clark and Judy remain detained. Crawford is released under the supervision of U.S. Pretrial Services.

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

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

United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao, P. Michael Cunningham, and Rachel M. Yasser, who are prosecuting the case.

Baltimore, Maryland - A federal grand jury has indicted Denita Hill, age 25, of Baltimore, and Robert Johnson, age 32, of Perry Hall, Maryland, on charges of conspiracy, wire fraud, and aggravated identity theft, related to a scheme to defraud the City of Baltimore through the reissuance of fraudulent checks for pay and benefits. The indictment was returned on May 7, 2014, and unsealed late yesterday upon the arrest of the defendants.

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

According to the indictment, Denita Hill was employed as an accountant in the Payroll Accounting Department for the City of Baltimore. Baltimore City employees who left their employment were entitled to a lump sum check of any pay and benefits for which they qualified. Hill was responsible for documenting lost payments and having checks reissued to individuals who had not received their payments. Robert Johnson was employed in the Consumer Relations Service of the U.S. Department of Veteran’s Affairs.

The five-count indictment alleges that from July 11, through August 2, 2013, Hill and Johnson conspired to defraud the City of Baltimore by using financial and identity information of former employees to request fraudulent employee benefit payout checks which were then deposited into Johnson’s personal account and the funds subsequently withdrawn.

According to the indictment, Hill identified individuals who had received and cashed large lump sum payments and then requested that such checks be reissued, as if they had not been received. These duplicate checks would be printed in a location accessible to Hill, who then delivered the checks to Johnson. The duplicate checks bore a forged endorsement, “Pay to the Order of Robert Johnson,” purportedly signed by the recipient. Johnson endorsed and cashed the checks, and deposited the proceeds into a bank account he controlled. Johnson subsequently withdrew the fraudulently deposited funds.

To conceal the scheme, Hill allegedly told officials from Johnson’s bank, and agents from the Baltimore Office of Inspector General, that she had spoken with the check recipients and that the endorsements were genuine. In fact, the indictment alleges that Hill had not contacted any of the recipients and knew the checks were fraudulent. In addition, when Baltimore City discovered the scheme and recouped the funds, leaving a large deficit in Johnson’s account balance, Hill withdrew cash from her own account to cover the negative balance in an effort to prevent further investigations into the scheme.

The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each of two counts of wire fraud; and two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. The defendants had an initial appearance and arraignment in U.S. District Court in Baltimore on May 28, 2014, and were released under the supervision of U.S. Pretrial Services.

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

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

Provided Prescriptions to His Girlfriend and Others

Baltimore, Maryland – Dr. John K. Yacoub, age 58, of Baltimore, Maryland pleaded guilty today to conspiracy to distribute and possess with intent to distribute fentanyl, hydrocodone, oxycodone, morphine and methadone.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Chief James W. Johnson of the Baltimore County Police Department; Howard County Police Chief William McMahon; and Commissioner Anthony W. Batts of the Baltimore Police Department.

“Dr. Yacoub a long standing medical doctor, not only broke the law by drug trafficking, he betrayed the trust bestowed upon him by the public,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “Members of the medical community are not untouchable when they prescribe controlled substances for no legitimate reason. The abuse of diverted prescription pain medication is the fastest growing drug problem in our country and our DEA Tactical Diversion Program is ready to tackle this problem,” added Tuggle.

According to Dr. Yacoub’s plea agreement, between 2012 and 2013 he provided prescriptions and pills to his Nevada-based girlfriend, who was a drug addict. He initially provided her with Vicodin, and later with oxycodone and morphine. By 2013, Dr. Yacoub was regularly writing prescriptions for morphine and fentanyl patches, for his girlfriend’s personal use. Dr. Yacoub asked two other people (person A and person B) to help him get additional prescription medication for his girlfriend in exchange for providing them with prescriptions for methadone. Specifically, Dr. Yacoub provided person A with prescriptions for methadone in her name and the name of person B. In addition, he provided a prescription for morphine in the name of person B, who had Medicaid. Person B filled the prescription, using Medicaid to pay for the prescription, then provided the morphine to person A, who gave it either to Dr. Yacoub or to his girlfriend. Investigators have determined that Medicaid paid $2,375.92 for morphine prescriptions obtained by person B for Dr. Yacoub.

During a search warrant executed on September 23, 2013, investigators obtained patient files for Dr. Yacoub’s girlfriend, person A and person B. None of their files reflected any medical treatment or medical reason for the medications prescribed to them by Dr. Yacoub. Dr. Yacoub admitted that providing the prescriptions to his girlfriend, person A and person B was not within the scope of accepted medical practice.

Dr. Yacoub faces a maximum sentence of 20 years in prison. U.S. District Judge Catherine C. Blake scheduled sentencing for September 23, 2014 at 9:00 a.m.

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

Allegedly Obtained Over $1.4 Million through Fraudulent Reimbursements

Greenbelt, Maryland – Paul Dunham and his wife, Sandra Dunham, both age 58, of Northampton, England, formerly of Montgomery County, Maryland, had an initial appearance today before U.S. Magistrate Judge William Connelly, in U.S. District Court in Greenbelt, Maryland. Yesterday, Deputy U.S. Marshals escorted the couple from England after they were extradited to face a federal indictment on conspiracy, wire fraud and money laundering charges in connection with their employment at PACE, Inc. A federal grand jury returned the indictment on December 7, 2011, and it was unsealed today. Magistrate Judge Connelly ordered that the Dunhams be detained pending a detention hearing scheduled for Tuesday, May 27, 2014, at 11:00 a.m. before U.S. Magistrate Judge Jillyn K. Schulze, in courtroom 3A, U.S. District Court in Greenbelt.

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, PACE, Inc. was a Maryland corporation that produced parts for the repair and reworking of electronics for the military and others. PACE USA had a subsidiary in the United Kingdom called PACE Europe, Ltd. Paul Dunham was President and Chief Operating Officer of PACE USA and Managing Director of PACE Europe. Sandra Dunham was the Director of Sales and Marketing for PACE USA and PACE Europe. The Dunhams were provided with corporate credit cards, and also maintained personal credit cards.

The 13-count indictment alleges that between 2002 and 2009, Paul Dunham and Sandra Dunham fraudulently charged personal expenses to their corporate credit cards and submitted vouchers to PACE for reimbursement that falsely described them as business expenses. The indictment alleges that the couple also fraudulently billed PACE Europe for business expenses already paid by PACE, Inc., obtaining duplicate reimbursements. The personal expenses for which Mr. and Mrs. Dunham obtained reimbursements included furniture, a dog sofa and pet residence, weekly grocery expenses, art work, home cleaning and remodeling services, and airline tickets.

In order to conceal the scheme, the couple allegedly submitted fraudulent expense vouchers. Paul Dunham is alleged to have created, doctored, and falsified receipts and invoices to create the false appearance that they were for business, rather than personal expenses. In addition, Paul Dunham is alleged to have instructed his assistant not to reveal records related to personal purchases made by himself and Sandra Dunham.

Finally, the indictment seeks the forfeiture of $1.4 million, alleged to be the proceeds of the scheme.

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 Attorney David I. Salem and Special Assistant U.S. Attorney Paul K. Nitze, who are prosecuting the case, and the Office of International Affairs and the U.S. Marshals Service for their assistance in this case.

Baltimore, Maryland – Edward Lee, age 43, and Devan Martin, age 41, both of Baltimore, Maryland, pleaded guilty today to conspiring to rob a hair salon and its owner.

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

According to Lee and Martin’s plea agreements, on December 1, 2012, Lee, Martin and co-conspirator Michael Gwaltney, were seen via the Baltimore Police City Watch camera system approaching a man who was entering his vehicle, on Carrollton Avenue in Baltimore. Through the City Watch Camera, the monitoring officer was able to observe Lee, Martin and Gwaltney having a conversation with the individual. The conversation appeared to turn into an argument and the victim was seen handing money to Gwaltney, while Lee patted the victim down. As Lee turned away from the victim, the monitoring officer saw a gun in his hand. Lee and Gwaltney then 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 building in the block, the City Watch operator saw a gun in Gwaltney’s waistband.

The City Watch operator called for police units to respond to the area. As the units responded, they stopped Martin approximately one-half block from the car with the briefcase. The officers then proceeded into the block and eventually located the victim leaving his wife's business, a hair salon. The victim advised officers that Lee and Gwaltney had taken him into the business and demanded drugs and money from him. The victim stated that after seeing the officers in the block, Gwaltney ordered the victim go out and tell the officers that everything was fine. Eventually, both Gwaltney and Lee exited the business, were placed under arrest, and the business was searched. Officers recovered a .38 caliber revolver, as well as clothing that matched the items worn by Gwaltney as he entered the location. In the yard adjacent to the business, officers recovered a 9mm semi-automatic handgun.

Lee, Martin and Gwaltney had agreed to carry out the robbery of the victim and the hair salon business.

Lee, Martin and the government have agreed that if the Court accepts their plea agreements Lee will be sentenced to 10 years in prison and Martin will be sentenced to between five and six years in prison. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Lee on August 13, 2014, and for Martin on September 4, 2014. Michael Gwaltney, age 39, of Baltimore, previously pleaded guilty to his role in the robbery 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 Attorneys James T. Wallner and Clinton J. Fuchs, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Claimed To Be Working Full Time On Two Separate NSA Contracts Causing a Loss to the Government of More Than $65,000

Baltimore, Maryland – Lynette C. Jackson, age 33, of Hanover, Maryland, pleaded guilty today to making false claims to the government, in connection with her work as a contractor at the National Security Agency (NSA).

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and the National Security Agency, Office of Inspector General.

According to Jackson’s plea agreement, beginning in 2008, she was hired by a DoD subcontractor, Merito, Incorporated as a full time employee to perform work on a specific contract at NSA. Jackson’s primary duty station was within NSA Headquarters and her salary from Merito was approximately $97,000. Merito billed the federal government $95.45 per hour for her services. Jackson was required to submit a timesheet every week to both Merito and the primary contractor, detailing the number of hours she worked in support of the contract. Jackson’s paychecks from Merito were based upon the number of hours she claimed to work.

Jackson admitted that from September 2010 through June 2011, she worked full time for Sentel Corporation, another DoD contractor, at the same time that she claimed to be working full time for Merito. During this time, Jackson billed Merito for full time hours when she actually was only working for Sentel. In all, Jackson submitted 79 fraudulent timesheets to Merito, falsely claiming to have worked 683.75 hours, causing a total loss to the government of $65,264.55.

Jackson faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge William D. Quarles, Jr. scheduled Jackson’s sentencing for September 3, 2014 at 1:00 p.m.

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

United States Attorney Rod J. Rosenstein thanked the DCIS and NSA, Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.

Greenbelt, Maryland – A federal jury convicted Steven Vondell Williams, age 47, of Washington, D.C., today on conspiracy, robbery and gun charges related to the robbery of an armored car employee.

The guilty verdict was 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; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation, Baltimore Field Office; 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 Chief Cathy L. Lanier of the Metropolitan Police Department.

According to evidence presented at Williams’ six day trial, on May 3, 2011, Williams and his co-conspirator, Alton May, both armed with handguns, robbed an armored car employee at a convenience store in Glenarden, Maryland. The employee was at the convenience store to refill the ATM machine located in the store. Williams and May robbed the employee at gun point, taking a money bag and the employee’s handgun. Williams and May then fled on foot to an apartment complex next to the store where they got into May’s car and proceeded to his residence. On the way, they took the money out of the bag and threw the bag in a dumpster. Once they arrived at May’s residence they located and destroyed a GPS tracking device which was in the money. Williams and May threw the cash, three handguns and two baseball caps used in the robbery onto the roof of the building, then jumped out of the window. The GPS device allowed law enforcement to track the money from the convenience store to the dumpster and to May’s residence, where they recovered the cash, guns and hats from the roof. One of the guns recovered was the one stolen from the armored car employee. Officers recovered pieces of the broken GPS tracker inside and just outside the window of May’s apartment. Williams and May were subsequently identified through DNA recovered from the two baseball caps.

Williams faces a maximum penalty of 20 years in prison for the robbery conspiracy and for the robbery; a mandatory minimum sentence of seven years in prison, consecutive to any other sentence, and up to life in prison for brandishing a firearm during the commission of the armed robbery; and 10 years in prison for being a felon in possession of the firearm. U.S. District Judge Roger W. Titus has scheduled Williams’ sentencing for September 4, 2014 at 11:00 a.m.

Alton May, age 49, of Washington, D.C., initially fled to New York, but was arrested in Montgomery County on November 7, 2011, when he fled from officers who were attempting to perform a traffic stop on the car May was driving. He pleaded guilty to his role in the robbery and was sentenced on October 17, 2013, to 25 years in prison.

United States Attorney Rod J. Rosenstein commended the FBI Washington and Baltimore Field Offices, ATF, Prince George’s County Police Department and Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnson and Leah J. Bressack, who are prosecuting the case.

Baltimore, Maryland – Saleh H. Fakhoury, age 48, formerly of Lutherville, Maryland, pleaded guilty today to his participation in a scheme to destroy his Maryland home by fire to collect $3 million in insurance proceeds. Hassan Hammoud, age 60, of Dundalk, Maryland pleaded guilty on May 16, 2014 to his participation in the conspiracy.

The guilty pleas were 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 James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to their plea agreements Fakhoury owned a home in Lutherville Maryland. In 2007, Fakhoury bought a second home in Florida. By March 2009, Fakhoury owed over $200,000 to credit card companies, utilities and other service providers, as well as over $1.7 million to banks for the mortgages on the properties he owned.

Hammoud worked for Fakhoury at Alfeo’s, a pizza restaurant owned by Fakhoury. Fakhoury and Hammoud schemed to destroy Fakhoury’s home in Lutherville by arson. Fakhoury intended to collect the insurance and pay off his debts. Fakhoury agreed to pay Hammoud $20,000 to set his home on fire.

On March 12 or 13, 2009, a fire was deliberately set at the Lutherville home. The fire self-extinguished and minimal damage was sustained. On March 14, 2009, a second fire was deliberately set using paint thinner. The home was completely destroyed.

Fakhoury and Hammoud discussed their financial arrangement for the arson. The two agreed that when the insurance company paid Fakhoury, Fakhoury would pay $50,000 and the money would be sent overseas.

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

Fakhoury and Hammoud face a maximum sentence of 20 years in prison followed by three years of supervised release and a $250,000 fine for conspiring to use fire to commit a federal felony. U.S. District Judge James K. Bredar scheduled Fahhoury’s sentencing for September 4, 2014 at 2:00 p.m. and Hammoud’s sentencing for August 25, 2014 at 10:00 a.m.

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Karl McDonald, age 30, of Baltimore, today to 151 months in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute crack cocaine. Judge Quarles enhanced McDonald’s sentence upon finding that he is a career offender based on two previous drug 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 to McDonald's plea agreement, from at least 2010 through June 2013, McDonald conspired with others to obtain cocaine from suppliers in Arizona and Texas. Once the cocaine arrived in Baltimore, McDonald converted the powder cocaine to crack cocaine for street level distribution. McDonald operated a distribution shop in Baltimore where the crack cocaine was sold. During the spring of 2013, DEA agents intercepted phone calls of members of the drug trafficking organization, including McDonald. On June 6, 2013, law enforcement executed search warrants at locations used by the organization in the Baltimore metropolitan area. DEA seized approximately 250 grams of cocaine, as well as packaged crack cocaine, from the main stash house of the organization.

McDonald admits that he is responsible for the distribution of between 28 and 112 grams of crack cocaine.

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.

Caused Losses of at least $250,000

Baltimore, Maryland – Kenneth Manns, age 47, of Baltimore, Maryland pleaded guilty today to bank burglary and his co-defendant, Aaron Davis, age 39, of Baltimore, pleaded guilty on May 13, 2014, to bank larceny, in connection with a two year scheme to burglarize banks, credit unions and retail stores.

The guilty pleas 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, Manns and Davis participated in a conspiracy that involved a group of associates, including Donald Taylor and others, to obtain money and property from thirteen banks, credit unions and retail stores by breaking into and entering buildings used in whole or in part as banks and credit unions.

In order to avoid apprehension, the burglary crew would case the target location and assess the likelihood of obtaining valuables. One or more members of the conspiracy would stand look-out while others went inside the targeted bank or business. The burglary crew broke into gas stations, convenience stores, credit unions and other commercial establishments 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 lines, 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 also used tools to break into ATMs and safes at the target locations. The burglary crew transported the stolen goods back to locations to include the homes and businesses of the defendants in Maryland.

For example, on August 17, 2012, Manns and Davis put on white paper Tyvek suits, black masks and gloves, and got into the ATM room of a Bank of America in Washington, D.C. by carving a hole with a power saw from an adjacent retail space. The Metropolitan Police responded to alarms, causing Manns and his co-conspirator to flee before gaining access to cash drawer of the ATM machine.
On March 9, 2013, Manns and Davis broke into a Chinese restaurant adjacent to a credit union in Owings Mills, Maryland. They cut the communication network power cables to the credit union. Using industrial cutting tools, they removed a portion of the wall separating the banquet room of the restaurant from the ATM room inside the credit union. They entered the credit union, destroyed the motion sensor and then left the ATM room for approximately an hour in order to gauge whether there was a police response. They then re-entered the ATM room via the restaurant and shifted the direction of the security camera. They attempted unsuccessfully to cut through the ATM vault and gain access to the cash drawer.

On March 31, 2013, at approximately 9:45 p.m., Manns and Davis, wearing white masks and black gloves, broke into the Shoe City store in Parkville, Maryland by carving a hole with a power saw from an adjacent unoccupied retail space. Before entering, Manns and his co-conspirators also cut the telephone lines to the retail store which disabled the alarm system. Manns and his co-conspirators removed a safe containing $400 and stole 23 pairs of shoes.

On April 28, 2013, shortly before midnight, Manns and Davis broke a side glass window to the Edmondson Sunoco station in Catonsville, Maryland, entered the store and severed phone, cable and alarm power lines inside. Meanwhile, 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 the Sunoco and drove away from the gas station in a stolen U-Haul Ford van. More than an hour later, they returned to the Sunoco, re-entered the gas station, attempted to gain entry into the manager’s office and then left the store again. At approximately 3:15 a.m., Manns and Davis returned to the Sunoco gas station a third time and stole $200 from the cash register drawer and removed 2 store safes containing $10,080, using a handcart, while Taylor again served as look-out. They loaded the safes into the stolen U-Haul van and drove away, while Taylor followed them in the rented van.

Donald Taylor, age 59, also of Baltimore, pleaded guilty to his role in the scheme on April 3, 2014.

As part of their plea agreements, Manns, Davis and Taylor will be required to pay restitution in the full amount of the victims' losses, which is at least $250,000.

Manns and Davis each face a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for Davis on July 22, 2014 at 3:00 p.m. and for Manns on July 30, 2014 at 3:00 p.m. Judge Bennett also ordered that Manns be detained pending sentencing and he was taken into custody.

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.

Committed 14 Convenience Store Robberies in Less Than 2 Months

Baltimore, Maryland – Omar Hance, age 33, of Baltimore, pleaded guilty today to a series of commercial robberies. Darrell Blackwell, age 27, of Columbia, Maryland pleaded guilty on May 1, 2014, to being the get-away driver in two of the robberies.

The guilty pleas were 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; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

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

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

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

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

Hance and the government have agreed that if the Court accepts the plea agreement he will be sentenced to 110 months in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Hance on September 2, 2014 at 2:30 p.m. and for Blackwell on August 26, 2014 at 11:00 a.m.

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

Calls on All Marylanders to “Thank a Police Officer for Serving with Valor and Integrity”

Baltimore, Maryland – In connection with National Police Week – the week that includes Peace Officers Memorial Day on May 15 – the United States Attorney’s Office today encouraged all Marylanders to take a moment to remember officers who have been killed or wounded in the line of duty and to express their appreciation to the men and women who work every day to protect public safety.

“Police agencies get plenty of attention when things go wrong, but we too rarely take the opportunity to thank law enforcement officers who are on duty every morning, afternoon and evening, every day of the year,” said U.S. Attorney Rod J. Rosenstein. “We are very grateful for the service of the many outstanding officers in our local, state and federal law enforcement agencies who are working together to reduce crime in Maryland. This week, every citizen should take the opportunity to thank a police officer for serving with valor and integrity.”

Additional information about National Police Week is available at http://www.nleomf.org/programs/policeweek/. For details about officers who died in the line of duty in Maryland, visit http://www.odmp.org/search/browse/maryland.

Three Defendants Convicted for Changing Test Scores to Qualify Students for Federal Grants

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jacqualyn Sue Caldwell, age 55, of Baltimore, today to a year and a day in prison, followed by three years of supervised release, for conspiring to defraud a student financial aid program.

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 Steven Anderson, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General Mid-Atlantic Regional Office.

“Students without high school diplomas who applied for financial aid to attend trade schools were required to pass the Ability to Benefit test and demonstrate their aptitude to complete the educational program and work in the field,” said U.S. Attorney Rod J. Rosenstein. “By cheating, the defendants defeated the purpose of the tests and defrauded the government.”

Caldwell was a test administrator for a company that offered cognitive tests to schools and businesses. During her employment, Caldwell worked almost exclusively as a test proctor for student admissions at the All-State Career School, a for-profit trade school located on Broening Highway in Baltimore.

Students who applied for federal financial aid at All-State were required to have a high school diploma, possess a GED, or pass a designated Ability to Benefit (ATB) test. Caldwell was certified to administer the ATB test onsite at All-State’s campus. Her duties did not include scoring the tests; rather, she was to collect the students’ answer sheets, seal them in an envelope and mail them to her company’s headquarters in Illinois, where they were scored and the results sent back to All-State. The ATB test used a Scan Tron answer sheet that required students to use pencils to fill in circles next to the correct answers. Student applicants who initially failed the ATB test could take it again.

According to Caldwell’s plea agreement, soon after starting her job as a test proctor at All-State in 2008, an All-State admissions representative asked Caldwell for an applicant’s answer sheet so that the representative could change some of the applicant’s answers to allow the applicant to pass the test. Caldwell agreed. Caldwell allowed the representative access to the answer sheet by not sealing the envelope containing the applicants’ answer sheets and leaving the envelope on the receptionist’s desk. After the admissions representative corrected the applicant’s wrong answers, the representative put the answer sheet back into the envelope, sealed it and left it to be mailed. Thereafter, this process was repeated by the representative for other applicants. Caldwell also agreed to employ the same process for a second representative.

Subsequently, a second representative suggested, and Caldwell agreed, that Caldwell erase and change just enough incorrect answers to provide a passing grade for student applicants taking the test for a second time. The representative provided Caldwell with a completed Scan Tron answer sheet and told Caldwell which student applicants were taking the test for a second time, so that Caldwell could correct their answer sheets.

Although the first two representatives agreed not to tell anyone that Caldwell was changing test scores for their student applicants, a third admissions representative asked Caldwell to change scores on answer sheets, which Caldwell agreed to do. Thereafter, Caldwell was continuously approached in the hallways by the three admissions representatives about “helping” a student pass the ATB test on the second try, and Caldwell agreed to do it every time.

According to Moore’s plea agreement, Moore learned through another admissions representative that Caldwell could ensure that students who failed the ATB the first time would pass it the second time. Between January and December 2011, Caldwell agreed to Moore’s requests to help prospective students pass the test the second time.

During her tenure at All-State from 2008 to December 2011, Caldwell changed the answer sheets for approximately 170 students. Approximately 102 of them went on to enroll at All-State and became eligible to receive federal financial aid in the form of Pell Grants and student loans. Approximately 72 of those students received financial aid totaling approximately $572,255.

All-State admissions representatives Jesse Raymond Moore, Sr., age 30, of Crofton, Maryland and Barry Sugarman, age 63, of Owings Mills, each pleaded guilty to the conspiracy. Moore and Sugarman were paid a salary by All-State and were eligible for performance-based raises and commissions for each student that graduated. Moore and Sugarman admitted that they asked Caldwell to manipulate the test results to give applicants taking the test a second time a passing score, which she did. Sugarman also told prospective students to understate their income from previous years when they applied for federal aid in order to qualify for the maximum amount of Pell grants and student loans. Moore was sentenced to four years probation and ordered to pay a $2,000 fine. Sugarman was sentenced to two years probation and ordered to pay a $5,000 fine.

United States Attorney Rod J. Rosenstein praised the FBI and Department of Education, Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Martin Clarke, who is prosecuting the cases.

Baltimore, Maryland – Todd Wheeler, age 28, of Glen Burnie, Maryland, pleaded guilty today to being a prohibited person, specifically an unlawful user and a person addicted to drugs, in possession of firearms, including improvised explosive devices.

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

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

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

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

Wheeler faces a maximum penalty of 10 years in prison. U.S. District Judge William D. Quarles has scheduled sentencing for September 8, 2014 at 1:00 p.m. Wheeler remains detained.

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

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Issa Wasco Koroma, age 62, of Springdale, Maryland to five years in prison followed by three years of supervised release for conspiring to steal prescription drugs from two federal military hospitals.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid Atlantic Field Office; and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations.

Koroma admitted that from January 2008 to July 11, 2013, he conspired with others to steal Norditropon, Humatrope, Somatotropin, Botox and other branded varieties of human growth hormone from pharmacies located at Fort Belvoir Community Hospital in Fort Belvoir, Virginia; Walter Reed National Military Medical Center (Walter Reed) in Bethesda, Maryland; and the former Walter Reed Medical Center (Old Walter Reed). They re-sold the stolen pharmaceuticals for profit.

Koroma was a pharmacy technician at Walter Reed. No later than the middle of 2011, Koroma began to steal brands of human growth hormones and Botox from the pharmacy at Walter Reed. From August 2011 to June 2013, Koroma and his co-conspirators stole over $1.3 million worth of pharmaceuticals from the pharmacy at Walter Reed.

Koroma and a co-conspirator also stole other prescription medications from the pharmacies at Fort Belvoir, Walter Reed and Old Walter Reed, which Koroma gave or sold to friends and acquaintances. These included Viagra, Cialis, Diovan, Humulin, Levitra and Lipitor.

On June 11, 2013, law enforcement officers executed a search warrant at Koroma’s residence and seized over 1,500 bottles and packages of prescription medications, including over 100,000 individual pills. A number of stolen prescriptions had been filled but not delivered to individual patients. Those thefts compromised the names, medical history and other personal identifying information of at least 10 patients treated at Walter Reed.

Koroma also stored stolen medications at a private storage unit he abandoned in 2009 or 2010. At the time that the storage unit was abandoned, it contained approximately 600 individual bottles and packages of prescription medication stolen from the pharmacies at Walter Reed and Old Walter Reed.

The total loss to the United States caused by Koroma and his co-conspirators was at least $4,467,000.

Two co-conspirators have been charged federally for their participation in the conspiracy. Their charges are pending.

United States Attorney Rod J. Rosenstein praised the DCIS and FDA-OCI for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Paul Nitze and Assistant United States Attorney Mara Zusman Greenberg, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Jeffrey Ellis, age 35, of Laurel, Maryland, today to 78 months in prison, followed by 15 years of supervised release, for transportation of child pornography. Judge Blake ordered that upon his release from prison, Ellis must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to Ellis’ plea agreement, on February 16, 2012, an FBI agent working in an undercover capacity signed onto a file sharing program through an Internet-connected computer and chatted with a user named “mdboi78,” later identified as Jeffrey Ellis. The user allowed the undercover agent to download several images of minors engaged in sexually explicit content from the “mdboi78” folder. On June 13, 2012, FBI agents executed a search warrant at Ellis’ residence and recovered three laptop computers, a digital camera, and at least three external hard drives.

At least 250 images, including videos, of child pornography were recovered from the seized items. Logs and chats involving Ellis were also recovered from one of the laptop computers and hard drive. The recovered chats included conversations in which Ellis stated that he was having sex with a 13-year old girl and that he had been having sex with her for approximately two years. Ellis also sent a photo of the girl to the person with whom he was chatting. The child was identified and interviewed by law enforcement. The girl advised that she did not have sex with Ellis and Ellis also denies having sex with the child, although he chatted about having sex with her online.

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.

The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), which was created in 2010, 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 and to combat child prostitution.

United States Attorney Rod J. Rosenstein commended the FBI and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.

Scrap Value of Stolen Containers is Alleged to be Over $2.2 Million

Baltimore, Maryland - A federal grand jury has indicted Aaron Keith Howard, age 52, of Brooklyn, Maryland, and Roland Michael Muir, age 57, of Glen Burnie, Maryland, on charges of conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service. The indictment was returned on May 6, 2014. Muir was arrested today. Howard was previously arrested, detained in federal custody and pleaded not guilty at his arraignment on May 9th.

The indictment 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.

"Theft of mail transport equipment is a serious crime," said Gary Barksdale, Inspector in Charge, U.S. Postal Inspection Service - Washington Division. "The Postal Service receives no tax dollars for operating expenses and cannot afford to replace valuable equipment to provide reliable customer service. Postal Inspectors are charged with protecting the U.S. Postal Service’s infrastructure and we will continue to aggressively pursue those who threaten the financial and operational health of America’s mail system."

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 the two count indictment and affidavit in support of the complaint, Howard and Muir drove in Muir’s employer’s box truck to U.S. Postal Service bulk mail centers in Capitol Heights where they stole the over-the-road containers and loaded them on the truck. Beginning in November 2013, Howard rented a 26 foot moving truck and drove it to the bulk mail centers in Capitol Heights where he stole the containers and loaded them onto the truck .

The indictment and affidavit allege that from April 2012 to April 2014, the defendants sold 1,765 containers containing 383,286 pounds of aluminum to metal recyclers in Maryland, including the Arundel Recycling Center in Anne Arundel County. They received $223,717 in cash. The defendants painted over U.S. Postal Service identifiers on the containers to avoid suspicion. The replacement value of the scrapped containers to the U.S. Postal Service is alleged to be over $2.2 million dollars.

The defendants face a maximum sentence of five years in prison for the conspiracy and 10 years in prison for the theft charge. An initial appearance has been scheduled for Muir at 4:15 p.m. today in U.S. District Court in Baltimore.

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

United States Attorney Rod J. Rosenstein praised the 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.

Last of 17 Defendants to be Sentenced in Broad Extortion Scheme that Arose from a Pay-to-Play Culture in Prince George’s County

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Prince George’s developer Daniel Ira Colton, age 64, a resident of Annapolis, Maryland and Raleigh, North Carolina, today to two years in prison followed by three years of supervised release for conspiracy to commit extortion and to make false statements to the Federal Election Commission. Judge Messitte also entered an order that Colton pay a $50,000 fine.

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

According to court documents, in early 2006, FBI and IRS-CI agents began investigating allegations of corruption, campaign finance violations, and tax fraud related to several real estate developers in Maryland and their relationships with Prince George’s County officials. The investigation uncovered a far-reaching corruption scheme centered around a “pay to play” culture in the county, orchestrated by then County Executive Jack Johnson and other public officials, in which real estate developers, including Colton, and business owners provided things of value to public officials and their surrogates in return for official acts.

Colton was a prominent developer in Prince George’s County. Colton and other co-conspirators, including developer Patrick Ricker and retired Prince George’s County Fire Department official Karl Granzow, had an ownership interest in Greenbelt Metropark, which sought to design, develop and build a mixed-use project near the Greenbelt Metro Station, called Greenbelt Station. Colton, Ricker and their co-conspirators also had an interest in Day Homes, which was incorporated to construct single family homes in Maryland, and was involved in several development projects in the county.

According to Colton’s guilty plea and court documents, from 1997 through at least September 11, 2008, Colton, Ricker, Granzow and other business persons offered money, trip expenses, meals, drinks, hotel rooms, airline tickets, rounds of golf, employment, mortgage payments, and monetary and in-kind campaign contributions to state and local government officials, including former Director of Prince George’s County Department of Housing and Community Development James Edward Johnson. During much of the conspiracy, from 2001 through 2004, Colton was serving a 38 month federal sentence arising from his convictions in federal court in Greenbelt for conspiracy and bank fraud, related to several development projects in Maryland and a loss to the victim bank of $15 million to $20 million.

In exchange for the bribes, state and local officials performed and agreed to perform favorable official actions for Colton, Ricker, Granzow and other developers, business owners and their companies, including obtaining approval letters for the Greenbelt Station Detailed Site Plan; assisting in the acquisition of surplus property and land from the county for development by Day Homes; providing the conspirators with non-public county information; obtaining necessary state and local approvals and permits for Greenbelt Station and other developments and businesses in the county; voting in favor of legislation favorable to their development projects; and, ensuring that a certain developer would obtain a contract to purchase certain buildings for the county.

State and local officials concealed items they received from Colton and his co-conspirators by failing to report them or by misrepresenting their nature and value. Further, Colton and his co-conspirators concealed campaign contributions to the state and local officials that were above state and federal legal limits by using conduits and in-kind contributions. Specifically, Colton and his co-conspirators recruited “straw donors,” including family members and employees, to make state and federal campaign contributions with funds provided by or reimbursed by Colton and his co-conspirators. Colton and his co-conspirators also provided in-kind contributions to conceal the actual amount of their campaign contributions, such as campaign signs, food, alcohol and the administrative services of their employees and family members.

During the scheme, Colton, Ricker, Granzow and others conspired to provide between $400,000 and $1 million in bribes to public officials in return for official action. Colton pleaded guilty under seal to the charges on September 13, 2010.

James Edward Johnson, age 69, of Temple Hills, Maryland, pleaded guilty to conspiring to commit extortion and was sentenced on April 16, 2012 to 37 months in prison. Judge Messitte also entered an order requiring James Johnson to pay a fine of $25,000 and to forfeit $46,300 that was seized from his safe deposit box.

Patrick Q. Ricker, age 55, of Bowie, Maryland, pleaded guilty on December 30, 2009 to conspiring to commit honest services fraud and to make false statements to the Federal Election Commission; and to tax evasion. His plea was also entered under seal and was unsealed on May 17, 2011. Judge Messitte sentenced Ricker on November 16, 2012 to one year and a day in prison, and also entered an order that Ricker pay restitution of $250,000.

Karl Granzow, age 49, of Upper Marlboro, Maryland, previously pleaded guilty to conspiring to commit extortion and cause false statements to be filed with the Federal Election Commission, and to income tax evasion. Judge Messitte sentenced Granzow on October 3, 2012 to 18 months in prison, and entered an order that Granzow pay a fine of $10,000 and forfeit his financial interest in Greenbelt Metropark.

A total of 17 defendants have been convicted in the related investigations of corruption in Prince George’s County, including Jack Johnson, then County Executive and former State’s Attorney; Leslie Johnson, an elected County Councilwoman and Jack Johnson’s wife; Mirza Hussain Baig, a physician and developer in the County; Amrik Singh Melhi, an owner of numerous businesses in the County; and, Ravinder Melhi, an owner of numerous businesses in the county. These individuals also pleaded guilty to extortion, bribery, state and federal campaign finance violations, and fraud, which all evolved from the pay-to-play culture in the county. They have been sentenced to up to 87 months in prison (Jack Johnson).

United States Attorney Rod J. Rosenstein praised the FBI and IRS-CI for their work in the investigation and thanked the Prince George’s County Police Department for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys James A. Crowell IV, A. David Copperthite and Sujit Raman, who prosecuted these cases.

Carjacking Victim Shot and Seriously Injured

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Samuel Damien Bynum, age 24, of Washington, D.C., today to 207 months in prison, followed by five years of supervised release, for conspiring to use a gun during carjackings, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; and Maryland Attorney General Douglas F. Gansler.

“Through coordinated efforts of local, state and federal law enforcement agencies, a gang of dangerous carjackers has been put out of business,” said U.S. Attorney Rod J. Rosenstein.

According to his plea agreement, beginning in January 2011, Bynum conspired with others to commit armed carjackings in Prince George’s and Montgomery Counties. On May 25, 2011, Bynum and co-conspirators drove to the Largo Metro Station in Largo, Maryland in a car they had stolen during a carjacking at the New Carrollton Metro Station a few days earlier. Bynum saw two people park their Camaro in the garage and followed them into the stairwell. Bynum told law enforcement that he blocked the stairwell so that his co-conspirators, who were armed with handguns, could rob the victims. Bynum or a conspirator hit one of the victims with a handgun, but they were unable to steal the victim’s car keys. Bynum and his conspirators fled, but returned a short time later to steal the Camaro after finding the keys to the car during their flight. Upon returning to the area, a co-conspirator gave Bynum one of the handguns and told Bynum to start shooting if the victims did anything. As one of the victims attempted to get into the car, Bynum and his conspirators shot several times at both victims. One of the victims was struck by a bullet and suffered permanent bodily injury requiring significant and ongoing medical attention.

Two alleged co-conspirators are being prosecuted federally and another was prosecuted in state court.

Bynum had previously purchased the handgun he used in the carjacking. Bynum had previously been convicted of a felony and was prohibited from possessing a gun and ammunition.

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

Murdered a Drug Rival and Helped a Conspirator Murder a Rival Drug Gang Member

Baltimore, Maryland – Dontay Purnell, age 27, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise, related to his drug dealing and violence in the Cherry Hill section of Baltimore.

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; 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, Purnell was a member of a group known as “Little Spelman” in the “down the hill” area of Cherry Hill. This group committed robberies, homicides, non-fatal shootings and distributed crack cocaine, heroin, cocaine and marijuana. As a member of this group, it was foreseeable to Purnell that the Little Spelman group was responsible for distributing at least a kilogram of heroin, five kilograms or more of cocaine, 280 grams or more of cocaine base and a quantity of marijuana.

In addition to selling drugs, Purnell was recruited to shoot and kill a drug rival, Vincent Paige, in order to expand the group’s drug territory. On April 20, 2006, Purnell approached Paige on the 3400 block of Spelman Road in Cherry Hill and told him he could no longer sell drugs there. Paige said he would be back and Purnell saw him go to a stash location where Paige stored drugs and weapons. Purnell approached Paige and shot him three times, killing Paige.

On April 9, 2011, Little Spelman group member Davon Martin shot and killed Dwight Taylor at a barbershop on W. Saratoga Street in Baltimore. Dwight Taylor was a member of a rival drug group operating in Cherry Hill known as “Up Da Hill.” His murder was in retaliation for a previous murder of another Little Spelman group member. Purnell assisted Martin by serving as the lookout, standing on the corner of Park Avenue and Saratoga Street, while Martin murdered Taylor inside the barbershop. Purnell also helped Martin flee the scene and dispose of some of Martin’s clothes.

Purnell faces a maximum sentence of life in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for August 8, 2014, at 9:00 a.m.

Davon Martin, age 25, of Baltimore, Maryland pleaded guilty on April 24, 2014 to his participation in the racketeering conspiracy, including two murders. Martin and the government have agreed that if the Court accepts the plea agreement he will be sentenced to between 30 and 35 years in prison. Judge Russell has scheduled Martin’s sentencing for July 18, 2014 at 9:30 a.m.

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

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jorden Barraco, age 34, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute methamphetamine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Carroll County Sheriff Kenneth Tregoning; Chief Jeffrey Spaulding of the Westminster Police Department; and Carroll County State’s Attorney Jerry Barnes.

According to Barraco’s plea agreement, from June through July 2013, Barraco participated in a conspiracy to distribute methamphetamine. On July 7, 2013, members of the Carroll County Drug Task Force tracked Barraco’s vehicle as Barraco traveled from a motel in Timonium, Maryland to Wilmington, Delaware, to obtain narcotics. Barraco spent less than 30 minutes in Wilmington before beginning his return to Maryland. On the way back, Barraco’s vehicle was stopped by the Maryland State Police. A canine alerted for the presence of drugs in the vehicle. During a subsequent search of the vehicle, law enforcement recovered four clear bags containing a total of 112.9 grams of methamphetamine

United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Carroll County Drug Task Force, comprised of the Maryland State Police, Carroll County Sheriff’s Office, Westminster Police Department and the Carroll County State’s Attorney’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Seema Mittal, who prosecuted the case.

Defendant Had Intercourse with Child and Took Pictures

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Anthony Palomino-Coronado, age 21, of Laurel, Maryland, today to 30 years in prison, followed by lifetime supervised release, for sexual abuse of a minor to produce child pornography. Judge Titus ordered that upon his release from prison, Coronado must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

“Child exploitation cases often turn your stomach, and this is one of them,” said U.S. Attorney Rod J. Rosenstein.

According to evidence presented at Coronado’s five day trial, on May 2, 2012, the Prince George’s County Police Department responded to a 911 call regarding a missing seven year old female child. During the subsequent search, at approximately 2:20 a.m., the child was found next to a privacy fence that separated the child’s residence from Coronado’s. At the base of the fence on Coronado’s side, officers found an empty condom wrapper. The child was not wearing any underwear and told officers that Coronado asked her to meet him at his house, then helped her get back into her yard when the police arrived.

Witnesses testified that during subsequent separate interviews with a sexual assault nurse, Prince George’s County Police detective and FBI child forensic interview specialist, the victim stated: that she had been to Coronado’s home, specifically his basement, 10 times; that Coronado had been engaging in sexual activity with her, including vaginal sex; and that Coronado had taken pictures of her, with and without her clothes on, with his black and red cellular telephone.

Trial evidence showed that a search warrant executed at Coronado’s residence recovered, among other things, a black and red cell phone, which contained a photo documenting Coronado’s sexual abuse of the child. A forensic examination established that the photo was taken on March 20, 2012, and had been deleted. In addition, six photos of the victim clothed, in the basement, and under the light of a flashlight were also found on the phone. Digital data established that these photos were taken on May 2, 2013, between 1:00 and 2:00 a.m. According to trial testimony, after his arrest the next day, Coronado denied engaging in sex activity with the victim, but admitted that during the night of May 2, 2012, the victim was at his home between 11:00 p.m. and 2:00 a.m., “playing games.”

During trial, on November 20, 2013, the victim testified that Coronado had engaged in sexually explicit conduct with her and identified herself and Coronado in the child pornography picture found on Coronado’s cell phone, as well as in the clothed pictures taken on May 2, 2012, in the basement of Coronado’s residence.

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, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. 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 prosecuted the case.

Transported 50 Kilograms of Cocaine Worth $1.5 Million

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Sergio Nunez, age 41, of Madera, California, today to five years in prison, followed by five years of supervised release, for possession with intent to distribute cocaine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Howard County Police Chief William McMahon.

“This is drug interdiction at its best. Mr. Nunez was caught bringing into Maryland a significant amount of cocaine. The quick and effective cooperation between our domestic offices along with our state and local law enforcement partners put an end to Mr. Nunez’s courier business,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office.”

According to Nunez’s plea agreement, on May 22, 2013, Howard County Police stopped the vehicle Nunez was driving for speeding. Nunez provided his California driver’s license, but was not able to provide registration or proof of rental for the vehicle. A K-9 officer arrived shortly after and the dog alerted for the presence of drugs in the vehicle. A subsequent search of the vehicle recovered two duffel bags, each containing a large number of dark cellophane wrapped bricks. DEA agents secured the bags, which were determined to contain approximately 50 kilograms of cocaine with a street wholesale value of $1.5 million. Nunez admitted that he knew the bags contained cocaine and that he was to be compensated for transporting the drugs.

United States Attorney Rod J. Rosenstein praised the DEA and Howard County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Seema Mittal, who prosecuted the case.