District of Maryland

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Mark Edward Coulter, age 55, of Gaithersburg, Maryland, today to 210 months in prison followed by five years of supervised release for bank robbery and attempted bank robbery. Judge Bredar enhanced Coulter’s sentence upon finding that he is a career offender based on previous convictions for malicious burning of another person’s personal property and for robbery, both in Montgomery County Circuit Court.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; Chief David L. Stokes, Sr. of the Annapolis Fire Department and Anne Arundel County State’s Attorney Anne Colt Leitess.

According to court documents and statements made at today’s hearing, on May 3, 2012, Coulter robbed the PNC Bank in Laurel, Maryland. Coulter handed the teller a note threatening that the bag Coulter carried had chemicals in it, but that no one would get hurt if the teller gave Coulter money. The teller, in fear, gave Coulter $4,500 and Coulter left with the cash, leaving the bag behind. Analysis of DNA recovered from the bag determined that Coulter was a contributor to that DNA.

On May 21, 2012, Coulter attempted to rob the Capitol One Bank in Laurel, again handing the teller a note demanding money. The teller did not understand Coulter’s request and advised Coulter that he needed a withdrawal slip. Coulter left the bank without obtaining any money, leaving the note. Law enforcement was able to match Coulter’s fingerprints to prints recovered from the note and from inside the bank.

United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department, Annapolis Fire Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Justin S. Herring, who prosecuted the case.

Greenbelt, Maryland – Devontae West, age 26, of Washington, D.C., pleaded guilty today to possession of child pornography and conspiracy to commit bank robbery.

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

As part of his plea agreement, 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).

West and the government have agreed that if the Court accepts the plea agreement, West will be sentenced to 12 years in prison. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for June 16, 2014.

Co-conspirator Calvin Manning also pleaded guilty today 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. Manning faces a maximum sentence of 20 years in prison at his sentencing scheduled by Chief Judge Chasanow on June 2, 2014.

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

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

False Disability Claims Exposed by Diligent Investigators

Baltimore, Maryland – Christopher Michael O’Brien, age 40, of Eldersburg, Maryland pleaded guilty today to making false statements to obtain federal employee’s compensation.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General (USPS-OIG ), Capital Metro Area Field Office.

“Diligent federal agents brought Christopher O’Brien’s long-running disability scam to an end by following him on several occasions to determine that his injury claims were fraudulent,” said U.S. Attorney Rod J. Rosenstein. “Government employees who make false disability claims must be held accountable for defrauding taxpayers.”

According to his plea agreement, from 1998 through 2014, O’Brien worked for the U.S. Postal Service as a letter carrier. On March 25, 2008, O’Brien signed a form stating that he had injured his lower back when picking up a tub containing mail at the Derwood Branch of the Rockville, Maryland post office where he worked as a carrier technician. From that date through November 2013, O’Brien received over $212,420.12 in lost wages benefits from the alleged injury. During this period, O’Brien represented that he was unable to perform household chores, such as lawn maintenance, or resume full duty work due to severe pain and physical limitations resulting from his injury. Medical documents submitted to the Labor Department by physicians and medical professionals treating O’Brien’s injury indicated that he wore a back brace, used a cane, consistently limped and complained of persistent pain during medical examinations.

From May 2012 through August 2013, USPS-OIG agents periodically observed and video recorded O’Brien walking briskly; jogging; bending; twisting; kneeling; squatting; lifting items weighing over 100 pounds; driving family members; performing household chores and yard maintenance, such as dog walking, pushing/pulling and turning a lawn mower, carrying and operating a weed line trimmer, carrying and operating a leaf blower; and regularly using dumbbells, barbells, stationary cycles and treadmills at a gym located in Eldersburg. During this time, except for the interview on July 30, 2013 described below, agents did not observe O’Brien wearing a back brace or using a cane.

The Postal Service periodically contacts claimants concerning their capability to return to full or limited duty. On July 30, 2013, O’Brien was interviewed at the Baltimore Post Office. Prior to the interview, agents saw O’Brien walking with no apparent disability from his house to his vehicle parked in front of his house, and driving to the interview. When O’Brien arrived at the post office, agents saw him walk slowly with a limp as he entered the building. O’Brien completed a form in which he maintained that he could not kneel, squat, climb and bend, and that he could not stand and walk for more than 10 minutes and could not sit for more than 15 minutes.

During the interview, O’Brien said that: he wears a back brace all the time when outside of his house; his wife drove him to the interview; he does not go to a gym; he has not lifted more than 15 pounds; he cannot twist or bend at the waist; and he needs to hold onto something when squatting to lift an object from the floor. O’Brien further stated he has difficulty walking, does not jog, does not usually walk the dog, does no lawn work, cannot push a mower and does not operate a power trimmer.

Following the interview, O’Brien was observed walking slowly with a limp from the post office to his vehicle, and driving away. Agents later observed O’Brien park in front of his house and walk into his home without a limp, carrying a back brace in his hand. On the day before and after the interview, agents saw O’Brien exercising at his gym, lifting dumbbells and walking on the treadmill.

On November 7, 2013, O’Brien admitted to USPS-OIG agents during an interview that he has not needed a cane since March 2010 and has not used a back brace when driving, exercising at the gym and performing yard work. O’Brien further admitted that he could have returned to work at the Postal Service in some capacity in March 2010 and that he misled his treating physicians and medical professionals in order to avoid returning to work.

The loss suffered by the Postal Service from May 2012 through November 2013 by O’Brien’s false statements is $80,647.25.

O’Brien and the government have agreed that if the Court accepts the plea agreement O’Brien will be sentenced to six months in prison and six months of home detention as a condition of supervised release. O’Brien also agrees to pay restitution of $80,647.25, and to resign from employment, and not to seek future employment, with the U.S. Postal Service. U.S. District Judge Richard D. Bennett scheduled sentencing for May 15, 2014 at 11:00 a.m.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Service OIG for its work in the investigation and thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.

Claimed False Deductions, Business Losses and First Time Homebuyer Credits on Federal Tax Returns

Baltimore, Maryland - Judianne Horn, age 43, of Owings Mills, Maryland pleaded guilty today to aiding in the preparation of false tax returns.

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

According to her plea agreement, from 2007 to at least 2010, Horn was a tax return preparer who prepared approximately 3,000 tax returns for clients. Horn was self-employed and operated a tax preparation business out of her home in 2007 and again in 2010. In 2008 to 2009, Horn was employed at two other tax preparation businesses located in Owings Mills and Randallstown, Maryland. In all these years, Horn filed federal tax returns which she knew included false deductions and/or false business losses, thus generating a larger tax refund than the client was otherwise lawfully entitled. The total tax loss generated by these false tax returns is $281,764.

Additionally, Horn also filed numerous false tax returns which claimed that the client was entitled to the first time home buyer credit. The credit was designed for persons who purchased a new home after April 8, 2008, and before May 1, 2010 and who did not own a home in the prior three years. A qualified taxpayer could receive a credit of up to $8,000. On at least five tax returns involving a false home buyers credit, Horn claimed that the taxpayer qualified for this credit, when in fact the taxpayer had not purchased a home at all. Horn directed the full $8,000 credit to a bank account she controlled.

Horn has agreed to pay restitution to the IRS of up to $281,764.

Horn faces a maximum sentence of three years in prison followed by a year of supervised release and a fine of $250,000. U.S. District Judge Marvin J. Garbis scheduled sentencing for July 14, 2014 at 10:00 a.m.

United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for their work in the investigation and thanked Assistant U.S. Attorneys David I. Sharfstein and Gregory R. Bockin, who are prosecuting the case.

Four Other Retailers Have Been Sentenced to Between Two and 38 Months in Prison

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Ahmed Ayedh Al-Jabrati, age 58, a citizen of Yemen residing in Baltimore, today to two years in prison, followed by three years of supervised release, for wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Quarles also ordered that Al-Jabrati pay restitution of $1.2 million.

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

Al-Jabrati operated two convenience stores, Second Obama Express and D&M Deli and Grocery, located next door to each other at 901 Harlem Avenue in Baltimore. According to their plea agreements and court documents, the stores 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.

Al-Jabrati knew that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from October 2010 to July 2013, Al-Jabrati 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 themselves.

Judge Quarles determined today that Al-Jabrati obtained at least $1.5 million 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. 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. 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 Attorney Kathleen O. Gavin, who prosecuted the case.

Baltimore, Maryland - A federal grand jury has indicted Dellando Recardo Campbell, age 31, of Lemoore, California, on charges of interstate domestic violence resulting in the death of a spouse, in connection of the death of Serika Dunkley Holness. The indictment was returned on February 5, 2014. Campbell, who was arrested in California on February 7, 2014, was transported to Maryland. Campbell had an initial appearance today in U.S. District Court in Baltimore and was detained, pending a detention hearing scheduled for Friday, March 25, 2014.

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

The indictment alleges that Campbell conspired with Ryan Dave Holness to murder Ryan Holness’ wife, Serika Dunkley Holness. DNA evidence found in Holness’ car, which was recovered in Washington, D.C. the day after the murder, link Campbell to the crime.

According to DNA and other evidence presented at Ryan Holness’ two week trial, Ryan Holness devised a scheme to bring his wife from New York to Maryland for the murder. On June 4, 2009, Holness and his wife traveled from New York to Maryland. Serika Holness was found murdered, stabbed multiple times in Kent County, Maryland, on June 5, 2009. Ryan Holness was convicted of domestic violence resulting in the death of a spouse and sentenced to life in prison.

If convicted, Campbell faces a maximum sentence of life in prison.

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 Maryland State Police and FBI for their work in the investigation and thanked the Kings County, California, District Attorney’s Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, who is prosecuting the case.

Used a Watch Camera to Surreptitiously Film the Victim

Greenbelt, Maryland – Ronald Davis Pope, age 49, of Mechanicsville, Maryland, pleaded guilty today to production of child pornography.

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

As part of his plea agreement, 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).

Pope and the government have agreed that if the Court accepts the plea agreement Pope will be sentenced to 235 months in prison followed by a lifetime of supervised release. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for June 3, 2014 at 9:00 a.m. Pope’s federal sentence will 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.

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 are prosecuting the case.

Also Sentenced to 10 Years in Prison for Making and Illegally Possessing an Explosive Device

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

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County Fire/EMS Chief Marc S. Bashoor.

According to Jenkins’ plea agreement, from at least January 2011 through December 2012, Jenkins and his co-conspirators distributed oxycodone. From the spring of 2011 through the summer of 2012, Jenkins and others forged prescriptions for oxycodone, which they then presented to different pharmacies, obtaining 180 oxycodone pills approximately twice a week. Jenkins and his co-conspirators consumed some of the pills and sold the rest. During the conspiracy, Jenkins began to use and distribute heroin as a cheaper substitute for the oxycodone, selling heroin to pay for the heroin he used.

In November 2012, Jenkins refused to sell oxycodone to one of his drug customers, resulting in an argument. After the argument, Jenkins built two pipe bombs, which he intended to use to blow up the drug customer’s vehicle. Another drug customer owed Jenkins $50 for oxycodone that Jenkins had supplied to the customer in June 2012. After making repeated calls to the customer and being unsuccessful in collecting the debt, in December 2012, Jenkins and a co-conspirator carried one of the pipe bombs to the home of the customer who owed Jenkins money, placed the pipe bomb on the front porch and lit the fuse. The bomb exploded, damaging the front door. The drug customer was sleeping in the bedroom adjacent to the door at the time of the explosion.

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

Tally Sheets Showed Sales of $14.5 Million of Marijuana; Documents Seized Regarding Purchase of a Plane by Co-Conspirators for $450,000

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Daniel Gerard McIntosh, age 38, of Sparks, Maryland today to 10 years in prison followed by eight years of supervised release for conspiring to distribute between 100 and 1,000 kilograms of marijuana, conspiring to engage in money laundering and interstate travel to further drug trafficking activities.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to evidence presented at his seven week trial, McIntosh was part of an extensive drug trafficking operation which was discovered by the DEA when they executed a search warrant at a residence in the 3500 block of Hickory Avenue in Baltimore. The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, $30,000 in cash, 30 cell phones, documents regarding a plane purchased for $450,000 by other co-conspirators, tally sheets showing over $14.5 million in marijuana sales, four money counters and false identifications.

Trial testimony established that from at least 2006, McIntosh received large shipments of marijuana and distributed them to local dealers in the Baltimore metropolitan area.

According to trial testimony, in June 2008 McIntosh recruited Philip Parker to pick up marijuana in California and transport the marijuana to Maryland in Parker’s tractor trailer. McIntosh directed Parker to make multiple trips to California. One witness estimated that between September and December 2008, Parker made two trips a month, with loads ranging from 300-600 pounds of marijuana. On one occasion, McIntosh asked a co-conspirator to deliver
$1 million to Parker to transport to California to pay for the marijuana.

From 2006 to early 2008, McIntosh used another individual to deliver hundreds of pounds of marijuana to his customers and to collect their payments.

McIntosh also furthered the drug organization’s business through money laundering. According to trial testimony, McIntosh was the manager, and as of June 2007, the majority owner of the Sonar Club in Baltimore. During the previous year, the business had lost $400,000. Once McIntosh took over the business, the leader of the drug organization became a silent partner who funded the business, which continued to lose thousands of dollars each year. McIntosh also provided employment verification for a co-conspirator who was on parole in 2008.

A total of 12 defendants have been convicted in this case, and sentenced to up to 121 months in prison.

Charges are still pending against the alleged leaders of the organization, David D’Amico, age 49, of Baltimore, Matthew Nicka, age 43, of Baltimore and his wife, Gretchen Peterson, age 34, of Kennett Square, Pennsylvania, all of whom were fugitives since the indictment was returned in December 2010. Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico is pending extradition from Colombia, South America.

United States Attorney Rod J. Rosenstein praised the DEA, IRS-CI and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Mara Zusman Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – A federal jury convicted Jean Claude Roy, a/k/a “Dredd the Don,” and “Dreddy,” age 31, of Germantown, Maryland, late yesterday of conspiracy to commit sex trafficking by force, fraud and coercion, three counts of interstate transportation for prostitution, and witness and evidence tampering.

The verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Department of Justice Civil Rights Division Jocelyn Samuels; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.

"This defendant preyed on vulnerable young women and exploited them for prostitution,” stated Acting Assistant Attorney General Samuels. “The Civil Rights Division is committed to seeking justice on behalf of victims of human trafficking."

“Protecting our communities from those who engage in human trafficking is a top priority for HSI,” said William Winter, special agent in charge of HSI Baltimore. “As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”

According to evidence presented during the two week trial, between August and September 2012 Roy transported a victim across state lines to engage in prostitution. He also took the victim’s identity documents, kept all of the victim’s money, and bragged to her about beating murder charges.

In November 2012 Roy recruited co-defendant Brittney Creason to engage in prostitution at Roy's direction. Thereafter, Creason helped Roy recruit and transport girls from Illinois and North Carolina to engage in prostitution. Roy conspired to force the women to engage in prostitution by again bragging about beating murder charges, taking their identity documents and taking their money.

Trial evidence also showed that from January 1 to January 10, 2013, while Roy was in jail on related state charges, he called an individual several times and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.

Roy faces a maximum sentence of life in prison for conspiracy to commit sex trafficking; a maximum of 10 years in prison for each of three counts of interstate transportation for prostitution; and a maximum of 20 years in prison for witness and evidence tampering. U.S. District Judge Paul W. Grimm scheduled sentencing for July 16, 2014 at 9:30 a.m.

The jury found Roy not guilty of sex trafficking and attempted sex trafficking by force, fraud and coercion; and possessing and brandishing a firearm during a crime of violence.

Brittney Creason, a/k/a “Kitty Amor,” age 19, of Decatur, Illinois, previously pleaded guilty of using a facility in interstate commerce for an illegal activity, and awaits sentencing.

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 www.justice.gov/usao/md/Human Trafficking/index.html.

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, and Trial Attorney William E. Nolan of the U.S. Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Scott Wade Markle, age 52, of Westminster, Maryland, today to 10 years in prison, followed by lifetime supervised release for possession of child pornography. In 2005, Markle was convicted of the same crime and was required to register as a sex offender. Judge Blake ordered that upon his release from prison, Markle must continue to 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); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Carroll County Sheriff Kenneth Tregoning.

According to Markle=s plea agreement, on February 11, 2013, an individual contacted the Carroll County Sheriff’s Office after finding a black tote bag at the bottom of his driveway. The individual had opened the bag in an attempt to identify the owner and had seen printed images of what he believed to be child pornography. Sheriff’s deputies recovered the bag which contained a student ID in Markle’s name, recent mail addressed to Markle and a folder with Markle’s name and address on the front which contained approximately 100 printed images of child pornography, including children under the age of 12 engaged in sexually explicit conduct.

A search warrant was executed the next day at Markle’s residence and law enforcement seized a digital camera, cellular telephone and two laptop computers. Markle was interviewed and advised investigators that he had printed the child pornography years ago after he was released from prison on the 2005 conviction. He used the camera to take pictures of the images and upload them to his computer, since he didn’t have internet access at his 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 HSI Baltimore, the Maryland State Police and the Carroll County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Amara Cisse, age 50, of Windsor Mill, Maryland, to 27 months in prison followed by three years of supervised release for food stamp fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Bennett also entered an order that Cisse forfeit and pay restitution of $654,349.24.

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

Cisse owned Simbo Food Mart, a convenience store located at 2103 West Pratt Street in Baltimore. Cisse’s wife, Fanta Keita worked at the store. 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.

According to his plea agreement, Cisse completed the required government form in May of 2010 to become an authorized retailer in the program, certifying that he understood that it was a violation of SNAP regulations to trade cash for SNAP benefits. From November 1, 2010 to May 2013, Cisse and Keita exchanged SNAP benefits for cash at less than face value of the EBT benefits, and kept up to 50 percent of the benefits for themselves, using the cash to pay rent and other bills.

The Court determined today that Cisse obtained more than $654,349.24 in payments for food sales that never occurred.

Fanta Keita, age 45, also of Windsor Mill, previously pleaded guilty and is scheduled to be sentenced on March 18, 2014.

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. Two of those defendants were sentenced on February 21, 2014 by U.S. District Judge George L. Russell, III: Hyung Cho, age 40, to 38 months in prison, and his mother Dae Cho, age 67, to 18 months in prison. 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 Attorney Leo J. Wise, who is prosecuting this case.

Baltimore, Maryland – John Arthur Kiely, M.D., of Lutherville, Maryland, has agreed to pay the United States $1.4 million to settle claims under the Federal False Claims Act that he submitted and caused the submission of false claims by Bon Secours Hospital to Medicare and Medicaid between October 29, 2002 and April 14, 2009. Kiely has also agreed to a 20 year voluntary exclusion from Federal health care programs.

The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Nicholas DiGiulio, Office of Inspector General of the Department of Health and Human Services, Philadelphia Region which includes Maryland.

“Medical advice must be motivated by the patient’s best interest and not by the doctor’s personal financial interest,” said U.S. Attorney Rod J. Rosenstein. “The government contended in this case that Dr. John Kiely performed glaucoma surgery because it was profitable for him, even when it was not necessary and not appropriate.”

“We are pleased Dr. Kiely agreed to resolve the allegations of falsely billing government health programs for unnecessary and excessive medical procedures,” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the United States Department of Health and Human Services. “We rely on physicians to perform only needed services and to bill appropriately. In addition to payment, Dr. Kiely has agreed to be excluded from participation in all Federal health care programs for at least 20 years.”

The settlement arises out of an investigation that resulted in the United States filing a civil complaint on July 12, 2013 in U.S. District Court in Maryland, captioned United States v. John Arthur Kiely, M.D., Civil No. MJG-11-668, in which the United States charges that Kiely, a general ophthalmologist, submitted claims to Medicare and Medicaid for laser eye procedures that fell outside the medical standard of care. The government contends that because the procedures did not meet the medical standard of care, they were not reasonable and necessary as required for reimbursement by Medicare and Medicaid. The claims covered by the settlement agreement include Argon Laser Trabeculoplasties (ALTs) between October 29, 2002 and September 11, 2007; Lysis of Adhesions procedures between October 29, 2002 and April 14, 2009; and Laser Peripheral Iridotomies (LPIs) between November 12, 2002 and September 26, 2006. An ALT is a laser procedure performed to treat open angle glaucoma, while LPI is a laser procedure performed to treat narrow angle glaucoma. Kiely performed between 3 and 14 ALTs per eye on the 120 patients identified in the civil complaint, and also performed repeated Laser Peripheral Iridotomies and Lysis of Adhesions on many of these patients.

Kiely performed these laser procedures primarily at Bon Secours Hospital in Baltimore, Maryland. The settlement covers false or fraudulent claims submitted by him to Medicare and Medicaid directly, as well as hospital fees arising out of these laser procedures that he caused Bon Secours Hospital to submit to Federal health care programs.

Dr. Kiely denies the allegations.

Enacted during the Civil War, the False Claims Act is the government’s primary civil tool to combat fraud and abuse in federal programs and procurement. The Act allows the government to recover triple the amount of its actual damages, plus a civil penalty of $5,500 to $11,000 for each false claim and permits the payment of a portion of any settlement or judgment under the Act to individuals who bring fraud to the attention of authorities.

United States Attorney Rod J. Rosenstein commended Assistant U.S. Attorneys Tarra DeShields and Roann Nichols, who handled the case.

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

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

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; Francisco Hernandez, aka “Chicle,” age 20, of Silver Spring, Maryland; Wilmer Argueta, a/a “Chengo” and “Happy,” age 21, 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 21, of Hyattsville.

The superseding indictment was returned on March 7, 2014 and unsealed yesterday upon the arrest of defendant Hernandez. All of the defendants are in custody.

The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Mythili Raman 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, assaults and robberies in Montgomery and Prince George’s Counties. Gang members also allegedly extorted high school students and brothel operators, committed witness tampering and obstructed justice, among other crimes.

More specifically, the indictment alleges the following murders. On January 10, 2011, defendant Manjivar and several other MS-13 members repeatedly stabbed two individuals believed to be affiliated with the rival 18th Street Gang, killing one and attempting to kill the other. On August 28, 2012, defendant Mejia-Ramos and others murdered a woman believed to be a rival gang member, by shooting her in the head. On February 23, 2013, defendant Perez-Chach and another MS-13 member murdered a person believed to be a former MS-13 member who had testified in federal court against several MS-13 members in a prior federal racketeering prosecution in Maryland, attacking him with a knife and machete.

From January 2011 to December 2012, Manjivar, Hernandez, Beltran-Flores, Mejia-Ramos and other MS-13 members are alleged to have planned and/or participated in the attempted murder of four individuals believed to be affiliated with rival gangs including the 18th Street Gang, Adelphi Crew, Latin Kings and Lewisdale Crew. One of these victims was targeted for murder to prevent him from testifying at trial in the Circuit Court for Prince George’s County against defendant Argueta.

Additionally, the indictment alleges that Hernandez, Beltran-Flores, Argueta and other MS-13 members threatened to kill a fellow gang member unless he paid them a weekly or bi-weekly “rent” or “tax,” which gang members collected from the victim from at least March to November, 2011. Five others are alleged to have been assaulted, including one victim who was stabbed with a butterfly knife.

Moreno-Aguilar, Ortiz-Orellana, Marquez-Sanchez, Beltran-Flores, Mejia-Ramos, Perez-Chach and Manjivar face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise, and Hernandez and Argueta face 20 years in prison. Moreno-Aguilar and Ortiz-Orellana also face a maximum sentence of life in prison for murder in aid of racketeering; murder resulting in the use of a gun; and using a firearm during a crime of violence. Beltran-Flores also faces a maximum sentence of life in prison for using a firearm during a crime of violence and 20 years in prison for conspiring to commit witness tampering and for witness tampering by attempted murder. Defendant Hernandez had his initial appearance in federal court in Greenbelt yesterday. The other defendants are expected to have their initial appearances beginning next week.

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 commended the HSI Baltimore, Prince George’s County and Montgomery County Police Departments, Prince George’s County State’s Attorney’s Office, 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, 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.

Baltimore, Maryland – U.S. District Ellen L. Hollander sentenced Robert Stewart, age 28, of Baltimore, Maryland, today to 15 years in prison, followed by five years of supervised release, for being a felon in possession of a firearm and ammunition. Judge Hollander enhanced Stewart’s sentence upon finding that he is an armed career criminal based on four previous drug convictions.

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

According to his plea agreement, in early 2013, Baltimore Police officers received information that an individual, later identified as Robert Stewart, was engaged in drug trafficking while armed with a firearm in the 1200 block of Washington Boulevard in Baltimore. Officers watched the vehicle Stewart was using to conduct the drug trafficking and saw Stewart leaving in the car with a woman driving and returning no more than 15 minutes later.

On February 4, 2013, the officers received information that Stewart was returning to his residence with the gun in the car after having just dropped off narcotics. Officers stopped the car and saw Stewart bend down with hands between his feet. After repeated commands to show his hands, Stewart eventually put both hands in the air and officers removed Stewart and the driver from the vehicle.

During a search of the car officers recovered a .45 caliber semi-automatic pistol, loaded with six rounds of .45 caliber automatic, full metal jacket cartridges from the front passenger floor, partially hidden beneath the seat. After being advised of his rights, Stewart admitted that the gun was his.

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

BGF Associate Arranged for Correctional Officers to Smuggle Contraband into the Jail,  Which He Sold to Other Inmates, Including BGF Members

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Jermaine McFadden, age 25, today to 140 months in prison followed by three years of supervised release for participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).

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; 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, 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.

According to his plea agreement, McFadden was associated with BGF while incarcerated at BCDC in 2012 to 2013. McFadden arranged with correctional officer Katera Stevenson and another officer for Percocets, cell phones, tobacco, marijuana and other contraband to be brought into BCDC, which he sold to BGF members and other inmates.

Eleven correctional officers, including Katera Stevenson, age 25, have pleaded guilty to their roles in the conspiracy, and three have been sentenced to between 32 and 42 months in prison. Three BGF members have pleaded guilty to the racketeering enterprise and two of them were sentenced to between nine years and 151 months in prison.

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

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

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Daryell M. Rexrode, age 56, of Pasadena, Maryland, today to 160 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute cocaine.

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

According to his plea agreement, from November 2012 through July 24, 2013, Rexrode conspired with Paul Rodney Cain and others to distribute cocaine. On November 16, 2012, Rexrode was arrested in Baltimore upon arriving to accept a controlled delivery of a kilogram of cocaine that he intended to split with Cain. Rexrode had an additional 344 grams of cocaine and more than 700 grams of methamphetamine in the trunk of his car.

In May 2013, law enforcement initiated wiretaps on two cell phones belonging to Cain and learned that Rexrode and Cain were building their inventory of cocaine. For example, on May 23 law enforcement overheard Rexrode and Cain discussed purchasing cocaine from multiple sources of supply. During this call, Cain told Rexrode that he had arranged to purchase a large quantity of cocaine from an individual whom law enforcement subsequently identified as Allan Ferdock. Law enforcement arrested Ferdock on May 24 after witnessing Ferdock purchase a kilogram of cocaine which he intended to re-sell to Cain. Law enforcement seized the cocaine.

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

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

Daryell Rexrode conspired to distribute more than five kilograms of cocaine.

Paul Rodney Cain, age 48, and Allan Clay Ferdock, age 56, both of Pasadena, previously pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on May 8 and April 3, 2014, respectively.

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

Used Her Position as a Bank Teller to Pass On Seven Bank Account Holders’ Information to Conspirators Who Used the Information to Steal Money

Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jayad Zainab Ester Conteh, age 24, of Glenarden, Maryland, today to 64 months in prison followed by three years of supervised release for conspiring to commit bank fraud, bank fraud, aggravated identity theft and unauthorized access to a computer to obtain banking information. Judge Russell also entered an order that Conteh pay $36,400 in restitution to the victim bank and forfeit $36,400.

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

According to evidence presented at the four day trial, in 2012 Conteh, a bank teller, looked up bank account holder information on the computer system without authorization. Conteh disclosed that information to her co-conspirators who ordered checks on account holders’ accounts and cashed checks totaling over $30,000 on the account of one account holder. At least seven bank account holders’ accounts were improperly accessed. The Court determined that as a result of the scheme, Conteh is responsible for over $120,000 in intended losses.

Co-defendant Paul Anthony Wilson, a/k/a Anthony Johnson, age 53, of Washington, D.C., was arrested while attempting to cash a check on the account of one of the victims. Wilson previously pleaded guilty to his role in the conspiracy and was sentenced to 39 months in prison.

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

Also Laundered More Than $300,000 in Drug Proceeds

Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jerome Adolfo Castle, a/k/a Dontwon Burris, age 35, a Jamaican citizen residing in Pikesville, Maryland, to 14 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute cocaine and marijuana; conspiracy to launder money; and illegally re-entering the United States after having previously been deported. Judge Russell also ordered that Castle forfeit $57,997 in cash, his interest in seven Baltimore properties, jewelry valued at more than $411,000, 98 pairs of men’s shoes, two laptop computers and an I-Pad, seven firearms and ammunition, as well as six vehicles, including a 2009 Jaguar XF Premium.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI)..

According to Castle’s plea agreement, from March 2013 through April 22, 2013, Jerome Castle conspired with Josef Byrd, Harold Byrd and others to distribute cocaine and marijuana. As a result of extensive surveillance and other investigative actions, law enforcement obtained federal search warrants for the residences of Harold and Josef Byrd; a commercial building at 5819 Moravia Road, Baltimore, MD; and for Castle’s residence on Archimedes Court in Pikesville.

On April 22, 2013, investigators arrested Josef Byrd and Harold Byrd as they took delivery of a shipment of approximately 500 pounds of marijuana at the commercial premises at 5819 Moravia Road. Jerome Castle was conducting counter-surveillance during the marijuana delivery and fled from police in a Ford pick-up truck. Castle took the police on a high-speed chase at speeds exceeding 100 miles per hour, and was arrested only after he crashed his vehicle into other vehicles parked in a used car lot in Harford County.

In search warrants executed later that day, law enforcement recovered over five kilograms of cocaine from each of the Byrd brothers’ homes, with a street value of approximately $150,000. Law enforcement also recovered three handguns, one AK-47 (semi-automatic), and four sets of body armor from Harold Byrd’s residence. Seventy-three black plastic containers used to conceal large quantities of marijuana during shipment from Arizona to Maryland were also recovered from Harold’s home. At Castle’s home, investigators recovered almost $58,000 in cash; jewelry appraised at over $411,000; a money counter; a scale used to measure quantities of drugs; over 200 grams of marijuana; and seven handguns. The substances recovered during these searches were field-tested and the results were positive for the presence of cocaine and marijuana.

In addition to his drug activities, Jerome Castle conspired to conduct monetary transactions of more than $10,000 using the proceeds from the sale of cocaine and marijuana. These monetary transactions were primarily bank account deposits made by Castle under the name of Dontwon Burris. Between 2010 and April of 2013, Castle deposited approximately $300,000 in cash to bank accounts in the name of Dontwon Burris.

Brothers Harold Alexander Byrd, age 26, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 34, of Owings Mills, Maryland, previously pleaded guilty to their roles in the conspiracy and were each sentenced to 10 years in prison.

United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation and HSI-Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Christopher Thornton, age 26, of Baltimore, today to 11 years in prison, followed by four years of supervised release, for conspiracy to distribute heroin.

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

According to his plea agreement, from July to December 2012, Thornton distributed heroin in Baltimore City; regularly collected cash drug proceeds from other members of the conspiracy; and communicated with the leaders of the conspiracy about the conspiracy’s operations. Federal agents used wire intercepts of cellular telephones of Thornton’s associates to record Thornton discussing his drug activities with other members of the conspiracy.

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 Michael C. Hanlon and Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Smuggled Drugs into Baltimore Correctional Facility and One of the Officers Had Sex With BGF Inmates; 11 Correctional Officers Have Pleaded Guilty to Date

Baltimore, Maryland – Correctional officer Ebonee Braswell, age 27, of Baltimore, pleaded guilty today to participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Another correctional officer, Danielle Forrest, age 27 pleaded guilty on February 25th to the conspiracy.

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; 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, 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.

Braswell, a correctional officer at BCDC, admitted that in 2012 and 2013, she helped smuggle contraband, including drugs such as Percocet, into BCDC for further distribution by BGF members. Forrest, a correctional officer at BCDC, admitted that she worked with a BGF leader in 2012 to smuggle contraband, including marijuana, Percocet and tobacco into BCDC. She was familiar with the drug activities of other correctional officers, including Braswell. At the direction of BGF, Forrest met outside suppliers to obtain the contraband, and managed payments for drugs using her Green Dot account. Forrest had sexual relations inside BCDC with two BGF inmates.

The defendants face a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for Braswell on June 27, 2014, and for Forrest on June 16, 2014.

Eleven correctional officers have pleaded guilty to their roles in the conspiracy. Two of these correctional officers, Taryn Kirkland, age 23, and Adrena Rice, age 26, both of Baltimore, were sentenced in January 2014, each to 42 months in prison and officer Jasmine Thornton, a/k/a J.T., age 27, of Glen Burnie, Maryland, was sentenced to 32 months in prison on February 5, 2014.

BGF leader Tavon White, age 37, BGF commander Steven Loney, age 25, Kenneth Parham, age 24, a BGF member, and Jermaine McFadden, age 25, an associate of BGF, also pleaded guilty to the racketeering enterprise. Parham was sentenced on February 24, 2014 to151 months in prison and Loney was sentenced on January 14, 2014 to nine years in prison. Tavon White and Jermaine McFadden are awaiting sentencing.

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.

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

Baltimore, Maryland – Denise W. Wearing, age 37, of Philadelphia, Pennsylvania, pleaded guilty today to 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. Michelle Jernell Cole, age 27, of Baltimore, pleaded guilty to the same offenses on February 20, 2014.

The guilty pleas 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. From February 2012 through February 2013, she worked for a rheumatologist who had an office in Glen Burnie, Maryland. Michelle Cole fraudulently obtained the PII of numerous patients at these medical facilities which she provided to Wearing.

From 2010 to February 2013, the 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. The conspirators kept the goods; sold the goods to others in exchange for cash; or returned the goods to the retail stores for merchandise credit and for credit on the accounts of the conspirators. Over the course of the scheme, the identities of over 100 individual victims were used to obtain over $993,000 of merchandise.

Wearing and Michelle Cole face a maximum penalty of 30 years in prison for the bank fraud conspiracy and a mandatory minimum of two years in prison consecutive to any sentence for the conspiracy. Wearing and Cole have agreed to pay restitution of at least $993,772.43. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Wearing on June 18, 2014, and for Cole on June 16, 2014.

Chanell Y. Cole, age 30, of Owings Mills, Maryland, and Yolanda Gail Welch, age 39, of Philadelphia, Pennsylvania, pleaded guilty on January 3, 2014 to the conspiracy. Judge Hollander has scheduled sentencing for Chanell Cole on April 4 and for Welch on April 25, 2014. Linda Nguyen, age 28, of Philadelphia, pleaded guilty to her role in the conspiracy on January 24, 2014 and her sentencing is scheduled for May 9, 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 thanked the U.S. Secret Service for its work in the investigation and thanked Macy’s fraud investigators for their assistance. Mr. Rosenstein praised Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.

Received a Total of $210,000 to Assist Approximately 70 Individuals in
Fraudulently Applying for Asylum

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Gasim Manafov, age 36, of Ocean City, Maryland, and Charlotte, North Carolina today to 18 months in prison followed by a year of supervised release for conspiring to commit immigration fraud.

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

“Benefit fraud poses a severe threat to national security and public safety because it creates a vulnerability that may enable terrorists, criminals, and illegal aliens to gain entry to and remain in the United States under a guise of legitimacy,” said HSI Ocean City Resident Agent in Charge Francis J. McGarvey. “HSI will work with our partners at U.S. Citizenship and Immigration Services and the U.S. Attorney’s Office in an effort to maintain the integrity of the immigration system by vigorously investigating and prosecuting individuals like Gasim Manafov, who try to exploit the asylum process.”

According to his plea agreement, from 2007 to 2012, Manafov conspired with others in assisting approximately 70 individuals in fraudulently applying for asylum benefits. Manafov gave the individuals fake stories to describe how the applicant’s family was purportedly hurt or killed due to political or ethnic affiliation. He provided fake foreign documents to prove these stories. Manafov prepared the applicants for interviews with officials, and attended the interviews. He also referred an applicant to a co-conspirator knowing that they would engage in a fraudulent marriage for immigration purposes, suggested that the applicant apply for immigration benefits in the Miami U.S. Citizenship and Immigration Services (USCIS) office to avoid the scrutiny he knew he was under in the Baltimore USCIS office, and coached the applicant on how to lie to officials interviewing her.

Manafov obtained $210,000 from the individuals fraudulently applying for asylum benefits.

Two other conspirators previously pleaded guilty to their roles in the conspiracy and were sentenced to one and three months in prison, respectively.

United States Attorney Rod J. Rosenstein praised the HSI Baltimore and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case.

Conspired with Former Prince George’s County Police Officer to Distribute Drugs and Untaxed Cigarettes

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Mirza Kunjundzic, age 33, of Woodbridge, Virginia, to 15 year in prison, followed by five years of supervised release, after Kunjundzic pleaded guilty late yesterday to conspiracy to distribute and possess with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime. Kunjundzic, who was scheduled to go to trial on March 4, 2014, was the last of nine defendants to plead guilty to charges related to a scheme involving the transport and distribution of untaxed cigarettes.

The guilty plea and 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 Kunjundzic’s plea agreement, between July 2009 to January 2010, Kunjundzic and former Prince George’s County Police officer Sinisa Simic transported and distributed untaxed cigarettes in Maryland, Virginia and elsewhere. As part of the conspiracy, Simic used his official authority as a Prince George’s County police officer to ensure the safe transport and distribution of the untaxed cigarettes in exchange for cash payments from a source and an undercover agent working with the FBI . During November 2009, law enforcement intercepted conversations on Simic’s cellular phone which indicated that Simic and Kunjundzic both wanted Kunjundzic to be armed while they were protecting the contraband cigarettes during transportation and distribution. Simic subsequently obtained a 50 caliber handgun for Kunjundzic, which was recovered at Simic’s residence at the time of his arrest, along with a 9mm handgun. On December 2, 2009, Simic and Kunjundzic transported 80 cases of contraband cigarettes to New Jersey in exchange for $3,400 paid by the undercover agent.

Kunjundzic and Simic also distributed cocaine to the undercover agent and source. For example, on October 7, 2009, Kunjundzic and Simic delivered 114.5 grams of cocaine to the undercover agent, who paid them$6,520 for the cocaine and to transport and protect a delivery of contraband cigarettes. A portion of the cocaine was secreted in the shipment of contraband cigarettes. On October 22, 2009, Kunjundzic and Simic delivered 244.3 grams of crack cocaine to the undercover agent and on and November 12, 2009, they delivered 268.2 grams of crack cocaine, for which they were paid $13,800 and $4,000, respectively, for the crack cocaine and to transport contraband cigarettes. Simic was armed during each of the transactions.

Simic and Kunjundzic continued to deliver contraband and be paid for the protection of those deliveries until January 26, 2010. In total, they provided protection for eight shipments of contraband between September 9, 2009 and January 26, 2010. They were paid a total of $52,120, including the payments for the cost of the cocaine purchased by the undercover agent.

Former Prince George’s County Police officer Sinisa Simic, age 29, of Woodbridge, Virginia, previously pleaded guilty to his role in the conspiracy and is awaiting sentencing.

United States Attorney Rod J. Rosenstein praised the FBI and IRS-Criminal Investigation for their work in these investigations. Mr. Rosenstein thanked Assistant United States Attorneys James A. Crowell IV, and A. David Copperthite, who prosecuted the case.

Mr. Rosenstein, Mr. Vogt and Mr. Kelly expressed their appreciation to Prince George's County Chief Mark A. Magaw for the assistance that he and his department provided.

Prepared Fraudulent Tax Returns Claiming False Wages and Tax Credits for Persons Who Had Little or No Income

Baltimore, Maryland – Sheila Anderson-Cloude, age 34, of Notthingham, Maryland, pleaded guilty today to a conspiracy to defraud the government arising from the filing of fraudulent tax refunds.

The guilty plea 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, D.C. Regional Office.

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

Lawson, Skipwith and Thomas provided the recruits’ personal information to Anderson-Cloude, who would prepare the fraudulent return. The recruits did not provide any income information. False wages and educational expenses were used to falsely claim tax credits. Anderson-Cloude, Lawson, Skipwith and Thomas misled the recruits by telling them that the refunds they had received were smaller than the refund amounts Anderson-Cloude had actually listed on the fraudulent returns. The “profit” for Anderson-Cloude and her co-conspirators was the difference between the refund claimed on each tax return and the smaller amount actually paid to the recruit.

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

Anderson-Cloude faces a maximum sentence of 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense, whichever is greater. U.S. District Judge Richard D. Bennett scheduled sentencing for Anderson-Cloude on May 27, 2014, at 3:00 p.m.

Tonia Patrice Lawson, age 43, of Middle River, 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 are scheduled to be sentenced on March 27, 2014, May 20, 2014 and May 28, 2014, respectively.

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

United States Attorney Rod J. Rosenstein praised IRS - Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I. Sharfstein, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Daniel Taylor, age 45, of Baltimore, Maryland, today to 15 years in prison, followed by five years of supervised release, for being a felon in possession of a firearm. Judge Quarles found that Taylor was an armed career criminal based on three previous convictions for first degree assault, unlawful manufacturing of drugs and possession with intent to distribute drugs.

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

According to Taylor’s plea agreement, on May 30, 2012, Baltimore Police detectives stopped a car in the area of the 2200 block of East Biddle Street in Baltimore to determine if the car’s dark tinted windows were illegal. The passenger, Daniel Taylor, became visibly nervous. One of the detectives searched Taylor and recovered a loaded 9mm luger semi-automatic pistol from Taylor’s waistband. Due to his previous convictions Taylor was prohibited from possessing a firearm or ammunition.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Scott A. Lemmon and John F. Purcell, Jr., who prosecuted the case.

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Brenda Moody, age 47, and her daughter, Cierra Jackson, age 28, both formerly of Baltimore, today to 27 months and 18 months in prison, respectively, each followed by three years of supervised release. Judge Hollander also entered an order that Moody pay $347,700 in restitution and Jackson pay $140,600 in restitution.

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

According to their plea agreements and court documents, Moody moved from Baltimore to the Miami area around 2007 or early 2008. Starting in at least May 2008, Moody obtained hundred dollar counterfeit bills from the leader of the scheme in Miami and distributed the counterfeit bills in Maryland. Moody recruited others, including her daughter, to pass counterfeit bills in Maryland. The conspirators converted the counterfeit currency to genuine currency by going to stores, buying $10 to $20 of products with a counterfeit $100 bill and receiving $80 to $90 in change. The conspirators would give $40 to $60 back to Moody for each counterfeit $100 bill they passed.

From May 2008 to late 2011, Moody passed and recruited others to pass hundreds of thousands of dollars in counterfeit bills, resulting in a loss of $347,700. From June 2008 to July 2010, Jackson passed counterfeit bills, resulting in a loss of $140,600.

The leader of the scheme, Alexis Palmer, who ran this conspiracy out of Miami, was sentenced in the Southern District of Florida federal court on January 9, 2014 to 10 years in prison. His four co-defendants, including two top lieutenants, were sentenced to between 51 and two months in prison.

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 County Police Department and Baltimore County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked the U.S. Attorney’s Office for the Southern District of Florida for their assistance in the investigation and Assistant United States Attorney Justin S. Herring, who prosecuted the case.

Took 24 Sexually Explicit Pictures of a Prepubescent Girl While She Slept, or Nude in a Bathtub

Greenbelt, Maryland – David Wayne Sweet, Jr., age 24, of St. Leonard, Maryland pleaded guilty today to sexually exploiting a minor to produce child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Laura Martin.

According to his plea agreement, on September 19, 2013, the Calvert County Sheriff’s Drug Enforcement Unit executed a search warrant at Sweet’s residence based on alleged drug violations. Sweet’s cell phone was seized. A subsequent review of the phone revealed 24 sexually explicit images of a prepubescent girl taken between June and September 2013, including pictures of the victim nude in a bathtub. Sweet had deleted the pictures, but law enforcement officials recovered all of the images.

Sweet was arrested on September 27, 2013. Sweet admitted that he inappropriately touched the victim while she was sleeping and took the photos.

As part of his plea agreement, Sweet 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).

Sweet and the government have agreed that if the Court accepts the plea agreement, Sweet will be sentenced to 20 years in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for June 23, 2014 at 11:00 a.m.

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

United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Calvert County Sheriff’s Office and Calvert County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who prosecuted the case.

Baltimore, Maryland – Anthony Jean-Claude, age 40, of Odenton, Maryland pleaded guilty today to laundering over $1.5 million, in connecting with a scheme to steal waste vegetable oil.

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

According to the plea agreement, waste collection businesses contract with local restaurants to collect waste vegetable oil (WVO), which is used to make bio-diesel fuel or processed as an additive for animal feed. Waste collection businesses place recycling containers behind the restaurants with which they have contracts. When the containers are full, the businesses collect the WVO using a vacuum truck.

Jean-Claude admits that from May through October 2010, he and a friend stole WVO from restaurants in Maryland and Virginia using a flatbed tow truck owned by his friend, a tank and a mechanical pump. Jean-Claude and his friend stored the stolen oil at a warehouse near Waterview Avenue in Baltimore County, then sold the oil to out-of-state oil companies.

At the end of October, Jean-Claude’s friend developed a legitimate WVO collection company - Waste Not Incorporated - purchased a vacuum truck, hired salesmen to assist him, and eventually obtained 650 contracts to collect WVO from restaurants and other eateries. From June through October, 2011, Jean-Claude’s friend collected the WVO pursuant to the contracts and sold the WVO to Jean-Claude.

According to his plea agreement, in May 2011, Jean-Claude used a straw purchaser to buy a truck, which was titled the name of Waste Not and used to steal WVO from restaurants for which Waste Not did not have a collection contract. The driver of that truck was caught stealing WVO in July 2011. In late 2011, Jean-Claude met R.F. during a home renovation project at Jean-Claude’s home. Jean-Claude requested that R.F. lease a large warehouse facility to collect, process and sell WVO. The owner of Waste Not took both his legitimate WVO and the stolen WVO to the facility, located at 1701 Leland Avenue in Middle River. Jean-Claude then sold the WVO to fuel companies in Pennsylvania and elsewhere. The proceeds of these transactions were directed back to Jean-Claude through an account in in the name of Rafxcel Services, to which both R.F. and Jean-Claude had signature authority.

Jean-Claude subsequently used the straw purchaser to buy another truck in October 2011, which a conspirator used to steal WVO from 20 locations in Baltimore City and Baltimore County. The conspirator then took the stolen WVO to the Leland Avenue facility. From January 5, 2012 through October 1, 2012, Rafxcel received approximately $1,586,747, for selling WVO to oil companies in Maryland, Pennsylvania and elsewhere.

R.M. was the operations manager at the Leland Avenue facility. R.M. received checks from Jean-Claude in the name of R.M.’s wife, which were drawn on the Rafxcel business account. Jean-Claude directed R.M. to cash the checks, use a portion of the cash for the operations of the Leland Avenue facility, and give the remainder of the cash back to Jean-Claude. Jean-Claude knew that this money was the proceeds of the illegal scheme to sell stolen WVO.

Jean-Claude faces a maximum sentence of 20 years in prison for money laundering. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 10, 2014 at 9:30 a.m.

United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.

Paid a Bank Teller to Convert Drug Proceeds from Small Bills to $100 Bills

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Deanna Bailey, age 33, of Baltimore, today to 46 months in prison followed by two years of supervised release for conspiring to commit money laundering. Judge Bredar also ordered Bailey to forfeit $500,000.

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

According to her plea agreement, Bailey was a member of a drug trafficking organization based in Maryland. Bailey transported or caused to be transported at least 500 pounds of marijuana from southwestern United States to Maryland for distribution. Sabrina Fitts was the head teller at the Perry Hall branch of M&T Bank. On at least eight occasions over a period of two to three years, Bailey came to the 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.

On May 2, 2013, a search warrant was executed at an apartment in Baltimore where Bailey sometimes stayed. Law enforcement seized a handgun, digital scales, 10 cell phones and $319,000 in $100 bills.

Sabrina Nicole Fitts, age 29, of Baltimore, Maryland, was sentenced on December 20, 2013 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.

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 alleges that the money is 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.

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.

BGF Member Often Directed the Smuggling of Drugs and Contraband into Baltimore Correctional Facility While in Pretrial Custody

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced a member of the Black Guerilla Family (BGF) gang, Kenneth Parham, age 24, of Baltimore, Maryland, to 151 months in prison followed by three years of supervised release for a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Parham’s federal sentence will be served concurrent to the 10 year state sentence he is currently serving.

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; 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, 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.

According to his plea agreement, Parham is a member of the BGF and was in pretrial custody at BCDC from 2012 to 2013. During that time, Parham admitted that he was involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of Correctional Officers (COs), who received payments, gifts, or a share of the profits. As a close associate of BGF leader Tavon White, Parham knew many of the COs involved in contraband trafficking. Parham and his closest BGF allies frequently used individuals to obtain contraband outside the prison, hold it or deliver it to COs for smuggling. Parham also helped conceal contraband from prison officials who would conduct periodic searches for contraband.

Nine correctional officers have pleaded guilty to their roles in the conspiracy. Correctional officers Taryn Kirkland, age 23, and Adrena Rice, age 26, both of Baltimore, previously pleaded guilty to their participation in the conspiracy and were sentenced in January 2014, each to 42 months in prison and officer Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie, Maryland, was sentenced to 32 months in prison on February 5, 2014. Six other correctional officers await sentencing.

BGF leader Tavon White, age 36, and BGF commander Steven Loney, age 24, also pleaded guilty to the racketeering enterprise. Loney was sentenced on January 14, 2014 to nine years in prison. Tavon White awaits his sentencing.

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.

Jury Found that Defendant Brandished a Gun While Selling Marijuana

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Ira Taylor, age 32, of Baltimore, Maryland, today to 195 months in prison followed by five years of supervised release for being a felon in possession of a gun and ammunition, distribution and possession with intent to distribute marijuana, and brandishing a firearm in furtherance of a drug trafficking crime.

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

According to testimony presented at Taylor’s five day trial, on November 13, 2012, a man who was operating an unlicensed cab (a “hack”) in the 1800 block of Rosedale Street in Baltimore, attempted to purchase marijuana from Taylor. Taylor handed the man a “dime bag” of marijuana. The man took out $85 intending to get $10 to pay Taylor for the marijuana. Taylor drew a gun and pointed it at the man, demanding all the money and taking back the marijuana. Taylor ordered the man out of the car and told him to start walking towards North Avenue. According to trial testimony, the man did so, begging Taylor not to shoot him or steal his car. Taylor fired his gun at the man and slashed a tire on the car. A short time later, two Baltimore Police officers turned from North Avenue onto Rosedale Street and Taylor fled. Taylor was found hiding under a row of bushes and arrested. Police found a loaded .38 caliber revolver, with four live cartridges and one spent cartridge, on the ground nearby. Officers searched Taylor and recovered: two small bags of marijuana, $85 in balled-up cash, $19 in neatly-folded cash and a knife.

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

In Less Than Two Years, Defendants Obtained Over $1.4 Million in Payments for Food Sales That Never Occurred; To Date, Eight Retailers Have Pleaded Guilty in Food Stamp Fraud Schemes

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Hyung Cho, age 40, to 38 months in prison followed by three years of supervised release, and his mother Dae Cho, age 67, to 18 months in prison 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 the defendants forfeit $371,439.21 and pay restitution of $1.4 million. Both defendants resided in Catonsville, Maryland and are Korean citizens who are illegally present in the United States. The defendants have further agreed not to object to any proceedings that may be brought to remove them from the United States upon completion of their sentence.

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.

Dae Cho co-owned K&S Market, a convenience store located at 3910 West Belvedere Avenue in Baltimore. Dae and Hyung Cho operated the store. According to their plea agreements 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.

Dae Cho completed the required government form in March of 2004 to become an authorized retailer in the program. Dae and Hyung 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 June 2011 through May 2013, Dae and Hyung Cho 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 themselves, using the cash to pay rent and other bills. Dae Cho has estimated that about $25,000 to $30,000 worth of food stamp benefits were exchanged in this manner per month and that this occurred approximately 50 times a day.

As a result of these unlawful cash transactions, Dae and Hyung Cho obtained more than $1,400,000 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. Yesterday, Jung Kim, age 52, of Ellicott City, Maryland, pleaded guilty to food stamp fraud and wire fraud. Kim owned and operated C&C Market, located at 4752 Park Heights Avenue in Baltimore. From November 2010 to April 2013, Kim obtained over $400,000 in payments for food sales that never occurred. Judge Russell scheduled Kim’s sentencing for June 20, 2014.

John Cunningham, age 54, of Baltimore, pleaded guilty on February 18, 2014 to wire fraud. Cunningham co-owned a corporation that owned Cunningham’s Amoco, a BP gas station and convenience store located at 4419 Park Heights Avenue in Baltimore. U.S. District Judge Richard D. Bennett scheduled his sentencing for May 21, 2014.

Amara Cisse, age 50, who owned Simbo Food Mart, located at 2103 West Pratt Street in Baltimore, and his wife Fanta Keita, age 45, who worked at the store, both of Windsor Mill, Maryland, pleaded guilty on December 3, 2013 to food stamp fraud and are scheduled to be sentenced on March 6, 2014.

Abdullah Aljaradi, age 52, and Ahmed Ayedh Al-Jabrati, age 58, both citizens of Yemen residing in Baltimore, have each pleaded guilty to wire fraud. Aljaradi and Al-Jabrati operated two convenience stores, Second Obama Express and D&M Deli and Grocery, located next door to each other at 901 Harlem Avenue in Baltimore. From October 2010 to July 2013, the defendants obtained over $2 million in payments for food sales that never occurred. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for Aljaradi on April 30, and Al-Jabrati for March 25, 2014.

Dae and Hyung Cho are the first to be sentenced. 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, Leo J. Wise and Peter M. Nothstein, who are prosecuting the cases.

Nine Bloods Gang Members and Three Other Defendants Have Pleaded Guilty to Date to Federal Racketeering and Drug Conspiracies

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland to 205 months in prison followed by five years of supervised release for conspiring to participate in a racketeering conspiracy, conspiring to commit robbery and using a gun during a crime of violence. The sentence resulted from the consolidation of two federal cases in which Johnson pleaded guilty.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.

According to his plea agreements, since at least 2011, Johnson was a member of the Bloods, a national criminal street gang with members operating in and around Howard County, Maryland. Johnson was initially charged with the robbery of an individual on November 8, 2011. The ATF had arranged for the individual to buy guns from Johnson. After Johnson scheduled a meeting to sell the guns, Johnson instead had two associates rob the individual, rather than sell the guns. After the armed robbery, the two associates fled and met up with Johnson who was waiting nearby. The three men shared the proceeds of the armed robbery.

Johnson was subsequently arrested for the robbery in March 2012 and incarcerated at the Chesapeake Detention Facility (CDF). During his incarceration at CDF, ATF agents and Howard County Police detectives intercepted Johnson discussing gang business over the jail phones. He also enlisted gang members to smuggle drugs and cellphones into the facility. Johnson is intercepted admitting to the possession of contraband, drug trafficking, and illegal activities on jail calls from CDF to gang members. Several of these calls provided the investigative foundation for law enforcement to obtain court-ordered wiretaps on fellow gang members’ telephones, and ultimately led to the indictment of 17 defendants on racketeering charges, and three additional defendants on drug trafficking conspiracy charges.

Among his criminal activities as a gang member, Johnson admitted that he: committed at least three armed robberies of individuals in which drugs, cash and/or other items were stolen; assaulted others; and sold crack cocaine, oxycodone and other drugs. Johnson also prostituted females, including a minor. The minor stated that she during the time she worked for Johnson as a prostitute in the summer of 2011, she made approximately $5,000 to $6,000, half of which was paid to Johnson. Johnson regularly carried a gun in connection with these activities.

In addition to Johnson, eight other defendants have pleaded guilty to the racketeering conspiracy and face a maximum sentence of 20 years in prison:

Heather Carter, a/k/a "Hunnilynn," age 29, of Columbia, Maryland
James Bieryla, a/k/a "Brea," and "Braze," age 21, of Ellicott City, Maryland; Russell Canty, a/k/a "Rek," age 20, of Baltimore; Adrian Freeman, a/k/a "Sleep," age 23, of Laurel, Maryland; Kevin Jarrell, a/k/a "K-Dog," 25, of College Park, Maryland; Christopher Lloyd McGann, a/k/a “Toker,” age 22, of Columbia; David Jerome Robertson; age 23, of Columbia; and
Bamba Omar Saine, age 23, of Columbia.

Each of these defendants, except Jarrell, also pleaded guilty to using or possessing firearms in furtherance of the racketeering conspiracy, and face a mandatory minimum sentence of five years’ incarceration up to life in prison.

Three other defendants have pleaded guilty to conspiring to sell drugs and also face a maximum sentence of 20 years in prison: Wendy Farhat, age 39, of Gaithersburg, Maryland; Anthony Louis Jones, age 27, of Columbia; and Troy Fowler, age 23, of Laurel.

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

Baltimore, Maryland – Sheldon Kennedy, age 26, of Lincoln, Nebraska was charged by complaint on charges arising from the sale of drugs, guns and counterfeit currency on an online site known as Silk Road. The complaint was filed on January 31, 2014 and unsealed today after his arrest yesterday in Miami, Florida.

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

According to the affidavit in support of the complaint and court documents, an online, international marketplace known as Silk Road, operated from January 2011 through September 2013. Silk Road allowed users to anonymously buy and sell illegal drugs, false identifications, counterfeit currency, guns and other contraband over the Internet. In September 2011, HSI Baltimore special agents initiated an investigation into the Silk Road website. Thereafter, the Baltimore Silk Road Task Force was created to address the contraband being sold on Silk Road.

The complaint alleges that on January 6, 2012, a USPS express mail package from China was opened in San Francisco pursuant to a border search. The package was being sent to Kennedy in Nebraska and was found to contain 55 grams of 4-fluoroamphetamine, a psychoactive drug and research chemical similar to MDMA, also known as ecstasy. Agents began investigating Kennedy. Thereafter, undercover agents in Baltimore bought contraband from Kennedy on Silk Road, who used aliases to sell cocaine and a pistol. Further investigation revealed that Kennedy was not licensed to sell firearms.

According to the complaint, Kennedy also sold counterfeit currency to another individual in Maryland on Silk Road. And in May 2012, agents intercepted a package Kennedy mailed to an individual in England. The package was found to contain 110 grams of DMT, a controlled substance. Kennedy also posted pictures online, such as on Facebook and Google+, of firearms, firearm accessories and large amounts of U.S. currency, which he advertised for sale.

On June 28, 2013, a search warrant was executed at Kennedy’s home. Ten firearms were seized, along with ammunition and illegal drugs.

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

Kennedy faces a maximum sentence of 20 years in prison for conspiracy to traffic controlled substances; and five years in prison each for possession of a firearm in furtherance of a drug trafficking offense, interstate sale or transfer of a firearm without a license to another unlicensed person and conspiracy to pass counterfeit money.

In related cases, Curtis Green, a/k/a “Flush,” and “chronicpain,” age 47, of Utah, previously pleaded guilty to conspiracy to distribute and possess with attempt to distribute cocaine. Green admitted to being an administrator of the Silk Road website. Jacob Theodore George IV, age 32, of Edgewood, Maryland, also previously pleaded guilty to conspiracy to distribute and possess with intent to distribute drugs, including heroin. George admitted to selling drugs on Silk Road. Green faces a maximum sentence of 40 years in prison and George faces a maximum sentence of 20 years in prison for conspiracy to distribute and possess with intent to distribute cocaine. U.S. District Judge Catherine C. Blake scheduled sentencing for Green on July 11, 2014. No sentencing date is scheduled for George.

Ross Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” age 29, of San Francisco, California, has been indicted in Maryland on charges of conspiracy to distribute a controlled substance, attempted witness murder and using interstate commerce facilities in the commission of murder-for-hire. Silk Road was allegedly created and operated by Ross Ulbricht, a/k/a “Dread Pirate Roberts,” who collected a fee for each transaction on the website. Ulbrecht faces a maximum of 40 years in prison for the drug distribution conspiracy; a maximum sentence of 30 years in prison for attempted witness murder; and a maximum of 10 years in prison for using interstate commerce facilities in the commission of murder-for-hire. No court appearance in Maryland has been scheduled.

Ulbricht faces a related indictment in the U.S. District Court for the Southern District of New York. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

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

Claimed False Income and Credits on Fraudulent Tax Returns for Persons Who Had Little or No Income

Baltimore, Maryland – Jasmine L. Thomas, age 26, of Baltimore, and Kiara A. Skipwith, age 24, of Parkville, Maryland, pleaded guilty today to a conspiracy to defraud the government arising from the filing of fraudulent tax refunds.

The guilty pleas were 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 D.C. Regional Office.

“Criminal conspiracies involving fraudulent refund schemes are loathsome crimes that victimize our nation’s honest taxpayers,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s pleas are a reminder that IRS-CI will remain vigilant in our investigation of these schemes and will continue to work with prosecutors to combat this type of criminal conduct.”

According to their plea agreements, from February 2010 through April 2013, Skipwith, Thomas and their mother, Tonia Lawson, 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. The defendants paid a referral fee to those who brought recruits to them.

The defendants provided the recruits’ personal information to another conspirator who would prepare the fraudulent return. The recruits did not provide any income information. False wages, educational expenses and dependents were used to falsely claim tax credits. Once the tax refund was received, the defendants took a portion of the refund and paid the recruit a smaller amount.

Over the course of the scheme, Thomas conspired to file at least 15 fraudulent tax returns with a resulting loss to the government of $90,579; and Skipwith conspired to file at least 37 fraudulent tax returns with a resulting loss of $199,722.

Thomas and Skipwith face a maximum sentence of 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense, whichever is greater. U.S. District Judge Richard D. Bennett scheduled sentencing for Thomas and Skipwith on May 20, 2014 and May 28, 2014, respectively.

Tonia Patrice Lawson, age 43, of Middle River, Maryland, previously pleaded guilty to conspiring to file 84 fraudulent tax refunds with a loss to the government of $546,785. Lawson is scheduled to be sentenced on March 27, 2014 at 4:00 p.m.

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

Allegedly Stole Over $79,000 and Attempted to Murder a Witness Who Called 911

Greenbelt, Maryland - A federal grand jury indicted four defendants today on charges arising from the armed robbery of employees who were transporting money in an armored truck:

Antonio Lamar Cooper, age 27, of Washington, D.C.; Juwan Armarni Watkins, age 21, of Washington, D.C.; Maurice Lorenzo Foreman, age 22, of Oxon Hill, Maryland; and
Eugene Robert Watkins, age 22, of Washington, D.C.

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

According to the three count indictment and court documents, on January 15, 2014 the defendants stole a vehicle and drove it to a restaurant on Allentown Road in Morningside, Maryland. Outside the restaurant, two armored truck employees were transporting money from the restaurant. One of the defendants pointed a gun at an employee’s face, pushed her to the ground, placed his gun on the back of her head and took her gun. Another defendant pointed his gun at the second employee’s head and took his gun as well.

The indictment and court documents allege that the defendants robbed the employees of $74,106 in cash, $4,028 in checks, a scanner and a printer. During their escape into Washington D.C., the defendants allegedly shot at a witness to the robbery who called a 911 dispatcher and followed the defendants in a high speed chase to obtain the license number of their getaway vehicle. The defendants shot the driver’s side window of the witness’s car several times.

According to court documents, Prince George’s County Police officers pursued the defendants’ stolen vehicle into Washington, D.C. where the defendants got out of their vehicle and attempted to flee. With the assistance of a canine search initiated by Metropolitan Police officers, the defendants were subsequently arrested.

The defendants face a maximum sentence of 20 years in prison for the conspiracy and for interfering with interstate commerce by robbery; and life in prison for using a firearm during the robbery. All of the defendants but Foreman have had their initial appearances in U.S. District Court in Greenbelt and are detained. Foreman is in state custody.

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 commended the FBI, Prince George’s County Police Department, Metropolitan Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.

Baltimore, Maryland B Medical billing company Engage Medical, Inc., its owner Sanjay Puri and three medical practices that were its clients have agreed to pay a total of $3,340,979 to resolve claims that Engage Medical overbilled for nuclear stress tests. Engage Medical and Sanjay Puri have agreed to pay $544,500; Advanced Cardiology Center and its owners Pankaj Lal, M.D., Mubashar Choudry, M.D. and Moshin Ijaz, M.D. agreed to pay $1,894,549.50; Reva Gill, M.D. and Kenilworth Internists, P.A. agreed to pay $242,204; and Sureshkumar Muttath, M.D. agreed to pay $659,726.

The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.

“When medical providers can enrich themselves at taxpayers’ expense by falsely representing that they provided expensive procedures, the government must be vigilant in pursuing fraudulent claims,” said U.S. Attorney Rod J. Rosenstein. “Anyone who knowingly reports false medical billing codes to induce the government to pay more money is lying, cheating and stealing.”

The allegations resolved in the settlement agreement involve overbilling of nuclear stress tests between July 31, 2007 and March 8, 2011. Engage Medical operated in Virginia, Washington, D.C. and Maryland. During this time, Engage Medical contracted with physicians and physician practices, holding itself out as having expertise in medical billing. Engage Medical staff would obtain records from physician clients related to the medical services provided, and transmit that information to staff in India, where medical coders would apply the relevant Current Procedural Terminology (“CPT”) codes and bill applicable insurance, including Medicare and other federally funded health insurance programs.

The billings at issue involved nuclear stress tests which are designed to assess cardiac function. Engage Medical marketed these tests to general practitioners, persuading them that instead of referring the patients to cardiologists for these tests, Engage could arrange to have the testing service performed in the general practitioner’s offices and bill for the tests, all of which would increase the general practitioners’ incomes. Dr. Muttath and Dr. Gill, two internists, agreed to allow Engage to provide this service.

Engage Medical’s billing of these tests, however, was false and in direct contradiction to published materials about such medical billing. Engage Medical systematically billed for each service twice, using a CPT code modifier intended to be used when the service had been repeated by the same physician or when a distinct service was performed on the same day. In fact, none of the tests were repeated and none of the tests was a distinct procedural service.

Engage Medical also included with its billing a CPT code that was intended to be used for interpreting and reporting images, even though proper CPT coding for a nuclear stress test already compensated the physician for interpreting and reporting the tests results. This is called “unbundling” and occurs when a medical biller falsely adds additional CPT codes for services – such as interpreting the test – that are already encompassed by the CPT code for the nuclear stress test itself. In unbundling in this way, however, Engage Medical ignored the plain language in the applicable CPT coding manuals that specifically told coders not to use the reporting and interpretation CPT codes when billing for nuclear stress tests. Billing staff at Engage Medical learned that by merely adding these codes it could increase the amount Medicare and other federally insured medical programs would pay to the medical provider clients.

In 2009, Engage Medical contracted with Advanced Cardiology Center and its three physician owners: Pankaj Lal, M.D., Mubashar Choudry, M.D. and Moshin Ijaz, M.D. Advanced Cardiology hired Engage Medical to re-bill claims for nuclear stress tests that Advanced Cardiology had already performed, billed and been paid for, in some cases years before. Advanced Cardiology gave Engage Medical access to Advanced Cardiology’s billing files and Engage Medical isolated the instances where Advanced Cardiology had performed and been paid for nuclear stress tests. Using its false billing model, Engage Medical resubmitted the nuclear stress tests for payment a second time, using the CPT codes that reflected a distinct or repeat service, and also added the unbundled code for interpretation. Unlike the internists, however, Advanced Cardiology did not retain Engage Medical to bill claims after February 2010 and thus Advanced Cardiology did not give Engage Medical access to Advanced Cardiology medical records of its patients beyond that time. Rather, Advanced Cardiology employed the Engage Medical model itself, with its own billers applying the false CPT codes to new tests that the cardiologists at Advanced Cardiology performed.

The claims settled by this agreement are allegations, and there has been no determination of liability. The settlement was the result of an investigation by the United States Attorney’s Office for the District of Maryland, with assistance from the Office of Inspector General for the Department of Health and Human Services. Assistant U.S. Attorney Allen Loucks handled the case, and auditor Mary Hammond and investigator Steve Capobianco in the U.S. Attorney’s Office, assisted in this investigation.

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

Greenbelt, Maryland – Mokorya Cosmas Wambura, age 45, of Takoma Park, Maryland pleaded guilty today to conspiring to commit wire fraud and aggravated identity theft arising from two separate residential mortgage fraud schemes.

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

According to his plea agreement and court documents, from March 2007 to November 2008, Wambura conspired with real estate agent Tibakweitira and others to use the identity of another individual without lawful authority 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 value of the property by creating false documents for repairs and renovations that were never made. After the settlement, the conspirators divided up the cash received for the purported repairs.

During the second fraud scheme from July 2007 to May 2009, a conspirator 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, without lawful authority, 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 his conspirator 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.

Wambura faces a maximum sentence of 30 years in prison and a $1 million fine on each of two wire fraud conspiracy counts, and a mandatory minimum of two years for aggravated identity theft consecutive to any other sentence. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for June 16, 2014 at 11:30 a.m.

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 May 6, 2014, at 1:00 p.m.

Wambura and Tibakweitira are both detained pending their sentencings.

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

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

United States Attorney Rod J. Rosenstein praised HUD-OIG, FHFA-OIG, Treasury OIG, U.S. Secret Service and Baltimore HSI 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 are prosecuting the case.

Admitted Committing Two Additional Bank Robberies

Baltimore, Maryland – Rodney Scott Bush, age 49, of Fort Washington, Maryland pleaded guilty today to conspiracy to commit bank robbery and five bank robberies. As part of his plea agreement, Bush also admitted committing two additional bank robberies.

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

“This case highlights the importance of the initial response of patrol officers,” said Anne Arundel County Police Chief Kevin Davis. “This repeat offender is in jail because an alert patrol officer observed suspicious activity while responding to a call.”

According to his plea agreement, from December 8, 2012 through July 17, 2013, Bush committed seven bank robberies, stealing a total of $38,894. In each robbery, Bush handed the teller a note demanding money. Most of the notes also stated that Bush had a gun or threatened some other harm and Bush often implied that he had a weapon. The banks were located in Upper Marlboro, Lanham, Severna Park, Gambrills, Laurel, Bowie, and Glen Burnie, Maryland.

Moments after the robbery in Glen Burnie on July 17, 2013, an Anne Arundel County Police officer responding to the bank robbery saw Bush in the passenger seat of a vehicle removing the distinctive sweater that he wore during the robbery. The vehicle was being driven by a woman, later identified as Jacqueline Isaacs. The officer attempted to conduct a traffic stop, but Isaacs sped off and led police on a high speed pursuit. Isaacs continued to flee from the officers for more than ten miles, eventually crashing into a van. Officers arrested Bush and Isaacs who were taken to the hospital and treated for injuries sustained during the crash.

The vehicle was searched and officers recovered the mobile phones used by Bush and Isaacs, the demand note, shirt and glasses worn by Bush during the robbery, and cash stolen from the bank.

Bush faces a maximum sentence of 20 years in prison on each of the five bank robbery counts; and a maximum of five years in prison for the conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for July 9, 2014 at 10:00 a.m.

Jacqueline Isaccs, age 55, also of Fort Washington, pleaded guilty to the July 17, 2013, bank robbery and is scheduled to be sentenced on April 18, 2014 15 10:00 a.m.

United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Julie D. Podlesni, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Loushawn Adaryl Robinson, a/k/a “Cadillac,” age 36, of Baltimore, Maryland, today to 151 months in prison followed by five years of supervised release for armed bank robbery. Judge Blake ordered Robinson to pay restitution of $23,639 and found that Robinson was a career offender, based on two previous convictions for robbery with a deadly weapon and armed robbery.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Carroll County Sheriff Kenneth Tregoning.

According to Robinson’s plea agreement, on September 29, 2012, Robinson and two other men, one of them armed with a gun, robbed the Carroll Community Bank in Sykesville, Maryland. During the robbery, Robinson forced one of the tellers to take him to the vault, but the teller was unable to open the vault. Robinson subsequently zip tied the teller’s hands while she was on her knees in the vault, and closed the door. The robbers fled the bank with $28,411, but dropped $4,772 in the parking lot, which was recovered by law enforcement. Law enforcement followed the robbers and during the course of the pursuit, Robinson crashed his car into a tree near an elementary school and was arrested. Law enforcement recovered the wig Robinson had worn during the robbery, zip ties, and a key to the vault which had been taken from the bank.

United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, Maryland State Police and Carroll County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Gregory R. Bockin, who prosecuted the case.

Baltimore, Maryland - A federal grand jury has indicted Samuel R. VanSickle, a/k/a “Donald Blunt,” “Jacob Aiken,” “Allen Helms,” “Paul Walsh,” and “William Hall, Attorney,” age 49, of Accident, Maryland, and Louis W. Strosnider, III, age 47, of Oakland, Maryland, today on charges related to a $3.7 million bank fraud conspiracy.

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 six count indictment, Samuel R. VanSickle and Louis W. Strosnider, III owned and developed property in Garrett County, Maryland. VanSickle controlled the mailbox at an address in Accident, Maryland, and rented a post office box, also in Accident. VanSickle used a number of different business names, including Freedom Church, Gospel Church, Equity Exchange, Unity Mortgage, Impartial Lenders, Noble Forest Consultants and used the names Donald Blunt, Allen Helms, Jacob Aiken, Paul Walsh, and William Hall (an attorney). Strosnider operated Stony Brook Development Company, LLC, a Maryland corporation located in McHenry, MD.

The indictment alleges that from December 31, 2001, through June 30, 2004, VanSickle and Strosnider devised a scheme to fraudulently obtain money and property from financial institutions. Specifically, the indictment charges that VanSickle purchased properties, concealed the ownership and control of the properties using false names and identities, inflated the value of the properties through fraudulent loans and mortgages; entered into sales contracts with Strosnider at inflated prices with fictitious down payments; and then Strosnider obtained bank loans with fraudulent collateral to finance sales of the properties. In this way, the indictment alleges that entities controlled by VanSickle sold the properties to Strosnider, with the purchase prices actually being paid to VanSickle in the name of companies he controlled. The indictment alleges that VanSickle and Strosnider purchased two properties using these methods.

The indictment also seeks forfeiture of $3,751,000 and 40 properties held in VanSickle’s name or in the names of nominees in Maryland, West Virginia and Pennsylvania.

The defendants face a maximum sentence of 30 years in prison for the conspiracy and for each of five counts of bank fraud. An initial appearance has been scheduled for February 28, 2014 in U.S. District Court in Baltimore.

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

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

Brandished a Gun in All 22 Robberies and Shot a Customer in One Robbery

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Hatratico Smith, age 48, of Baltimore, Maryland, today to 25 years in prison, followed by five years of supervised release, for a series of armed commercial robberies committed from January through June, 2012. Smith brandished a gun in all of the robberies and shot a customer during one of the robberies.

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

According to Smith=s plea agreement, from January 22, 2012 through June 11, 2012, he conspired with Rico Bias, Monzell Lee and others, to commit 22 robberies of convenience stores, fast food restaurants, and other businesses. Smith brandished a gun during the robberies, and on two occasions fired the gun, including on February 21, 2012, which resulted in the shooting of a customer. Lee participated in four of the robberies and Bias admitted that in addition to checking out the stores prior to his codefendants entering the businesses to commit the robberies, he obtained and drove the get away car in each of the robberies. The defendants have been in federal custody since their arrests.

Rico Bias, age 34, and Monzell Lee, age 20, both of Baltimore, pleaded guilty to their roles in the robberies. Bias was sentenced to 185 months in prison and Lee was sentenced to nine years in prison for the four robberies in which he participated.

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

Committed Three Bank Robberies and Robbed a Store Where He Was Employed While on Supervised Release for Previous Federal Bank Robbery Convictions

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Reginald Anthony Lasley, age 41, of Silver Spring, Maryland, today to a total of 18 years in prison followed by three years of supervised release. Judge Messitte sentenced Lasley to 16 years for the robbery of a store and three bank robberies and an additional two years in prison for violating his supervised release in connection with previous federal bank robbery convictions. Judge Messitte also ordered Lasley to pay restitution of $29,150.

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 Lasley’s plea agreement, on February 12, 2012, he robbed the pharmacy where he was employed. During the robbery Lasley threatened the manager at knifepoint, bound the manager with duct tape and took approximately $18,000 from the safe before leaving the store. Two months later, Lasley committed three bank robberies. In each bank robbery, Lasley presented the teller with an intimidating note demanding that the teller give him all the $100s, $50s, and $20s, and fled the bank in a black van driven by another individual. Specifically, on April 6, Lasley robbed a SunTrust bank in Landover, Maryland, of $4,810; on April 9 Lasley robbed a SunTrust bank in Upper Marlboro, Maryland of $5,370; and on April 11, Lasley robbed an M&T bank in Largo, Maryland of $1,390.

Shortly after the robbery of the M&T bank, Lasley was apprehended by law enforcement. At the time of his arrest, officers recovered from Lasley the demand note used in the M&T bank and the money stolen in the robbery. Officers also recovered from the black van another bank robbery demand note and the hat and shirt Lasley wore during the M&T robbery.

At the time of the 2012 robberies, Lasley was on supervised release in connection with previous federal bank robbery convictions.

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

Indictment Alleges an Eight Year Scheme to Obtain Over $5 Million in Kickbacks from Three Foreign Power Companies to Secure More Than $2 Billion in Lucrative Contracts

Greenbelt, Maryland - The former principal vice president of Bechtel Corporation and General Manager of the Power Generation Engineering and Services Company (PGESCo), Asem Elgawhary, age 72, of Potomac, Maryland, was indicted today on charges that he defrauded his former employers, laundered the proceeds of the fraudulent scheme and violated federal tax laws.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Richard Weber of the Internal Revenue Service - Criminal Investigation.

“As today’s indictment alleges, this high-ranking executive took millions of dollars in kickbacks from power companies in exchange for preferential treatment and, in doing so, defrauded his former employer, other companies who were playing by the rules, and U.S. tax authorities,” said Acting Assistant Attorney General Raman. “He then allegedly concealed his kickback scheme by hiding the payments in off-shore bank accounts, giving false information to his former employer, and destroying evidence. The Justice Department is committed to prosecuting not just the companies and individuals who pay bribes and kickbacks, but also those who solicit and accept them.”

“Mr. Elgawhary has been charged with using his corporate position for his own personal gain,” stated IRS-CI Chief Weber. "No matter what your career or position is in a corporation, all U.S. citizens are obligated to comply with the tax laws. When individuals and corporations deliberately fail to comply, IRS Criminal Investigation agents conduct investigations and recommend prosecution to the Department of Justice.”

The eight count indictment alleges that from 1996 to 2011, Elgawhary was assigned by Bechtel – a U.S. corporation engaged in engineering, construction and project management – to be the general manager at PGESCo, a joint venture between Bechtel and a state-owned and state-controlled electricity company (EEHC). PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC. The indictment alleges that Elgawhary used his position at PGESCo to provide preferential treatment to three power companies attempting to secure projects with EEHC in exchange for kickbacks from those power companies and their third-party consultants. The power companies and their consultants allegedly paid over $5 million of kickbacks into off-shore bank accounts under the control of Elgawhary, including Swiss bank accounts. In return, the power companies secured more than $2 billion in lucrative contracts.

The indictment alleges that Elgawhary then also attempted to conceal the kickback scheme and the proceeds he obtained from it. Elgawhary allegedly sent to Bechtel executives and members of the PGESCo board of directors in Maryland documents and “Representation Letters” that falsely represented that he had no knowledge of any fraud or suspected fraud at PGESCo and that there were no violations or possible violations of law or regulations whose effects were material and should have been considered for disclosure in PGESCo’s financial statements. In addition, when Elgawhary was interviewed by counsel for Bechtel in April 2011, he claimed that he never received money from power companies or their consultants and that he did not maintain control over any foreign bank accounts. With the help of other employees at PGESCo, Elgawhary also allegedly caused evidence about the kickback scheme to be deleted and destroyed.

Elgawhary allegedly used money from one of his Swiss bank accounts to purchase a $1.78 million home in Maryland for two close family members. In order to conceal the origin of the money, however, Elgawhary and others made it appear that the money was an unsecured loan from a marketing company owned and operated by another relative.

Elgawhary also allegedly obstructed and impeded the administration of U.S. tax laws by falsely claiming that he maintained only one foreign bank account and denying that he that he received any income from any foreign bank account. Elgawhary also allegedly failed to report any of the kickbacks as income for the tax years 2008 through 2011.

The mail and wire fraud counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The tax count carries a maximum penalty of three years in prison and a fine of $5,000.

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 expressed his appreciation to law enforcement counterparts in Switzerland, Germany, Italy and Cyprus in this matter. Significant assistance was also provided by the Department of Justice Criminal Division’s Office of International Affairs.

Mr. Rosenstein commended the FBI and IRS-Criminal Investigation for their work in the investigation and thanked Assistant U.S. Attorney David Salem from the District of Maryland and Assistant Chief Daniel S. Kahn of the Department of Justice Criminal Division’s Fraud Section, who are prosecuting the case.

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Damon Jerome Estep, a/k/a “Country”, age 38, of California, Maryland, today to 188 months in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute five kilograms or more of cocaine hydrochloride and 280 grams of cocaine base, commonly known as crack.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and St. Mary’s County Sheriff Tim Cameron.

According to his plea agreement, from February 2012 to April 2013, Estep conspired with Alrahman Allen, Jamar Holt and Jeffrey Berry to distribute cocaine and crack in southern St. Mary’s County. Holt provided Allen with cocaine and other drugs and then regularly called Estep to coordinate the delivery of cocaine to Estep, Berry or others from St. Mary’s County.

Nearly every week, Estep, Berry and others met Allen in the Glen Burnie area and paid Allen for one-fourth, one-half and one kilogram quantities of cocaine for further distribution in St. Mary’s County by Estep and others at Estep’s direction. Once Berry and others transported the cocaine back to their stash locations in St. Mary’s County, Estep and others would cook portions of the cocaine into crack, and distribute the cocaine and crack throughout southern Maryland at Estep’s direction.

Estep stored the powder and crack cocaine in several locations, including 20141 Point Lookout Road in Great Mills, and 18310 Three Notch Road in Lexington Park. Estep and others sold the drugs at locations in southern Maryland, including at a building located at 15076 Point Lookout Road. The distribution of between five and 15 kilograms of cocaine, and between 280 and 840 grams of crack, were reasonably foreseeable to Estep.

Co-defendants Alrahman Sharif Allen, a/k/a “Rock” and “Rahman Allen;” Jamar Holt, a/k/a “Reds” and “Jamal Holt;” and Jeffrey Kirk Berry, a/k/a “Kojack,” previously pleaded guilty to their participation in the conspiracy and await sentencing.

United States Attorney Rod J. Rosenstein praised the DEA and the St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah Jo Bressack and James A. Crowell, IV who prosecuted the case.

Prescribed Drugs Without a Medical Exam and Knowing That His Patients Were Selling or Abusing the Drugs; Filed Fraudulent Insurance Claims for Services That Were Not Rendered or Medically Necessary

Greenbelt, Maryland - Physician George Mathews, age 76, of Prince Frederick, Maryland, pleaded guilty today to the illegal distribution of drugs and health care fraud.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Thomas Frost of the U.S. Postal Service Office of Inspector General, Major Fraud Investigations Division; Special Agent in Charge William R. Jones, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Calvert County Sheriff Mike Evans; St. Mary=s County Sheriff Tim Cameron; Charles County Sheriff Rex Coffey; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Drew Grimm, Office of Personnel Management, Office of Inspector General; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.

“Today’s guilty plea serves as a warning to those who would defraud the Department of Labor’s Office of Workers’ Compensation Programs by charging for medical services that were not rendered or not medically necessary,” said Bill Jones, Special Agent-in-Charge of the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. “The OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to investigate crimes of this nature.”

“The workers’ compensation program benefits thousands of Postal Service employees who have received legitimate on-the-job injuries,” said Thomas Frost, Special Agent in Charge, U.S. Postal Service Office of Inspector General, Major Fraud Investigations Division. “By submitting false claims to this program, Dr. Mathews undermined the system and contributed to the growing epidemic of health care fraud. This resolution marks a significant effort in the on-going battle against workers’ compensation fraud. We appreciate the partnership of the DEA, the U. S. Department of Labor- OIG, and the U.S. Attorney’s Office, District of Maryland on this case.”

According to his plea agreement, Mathews had medical offices in Prince Frederick and in Waldorf, Maryland. From January 2007 to July 2011, Mathews repeatedly wrote prescriptions for drugs that he knew were without any legitimate medical purpose. On a number of occasions, Mathews prescribed drugs after being made aware that his patients were either selling or abusing the prescribed drugs. In addition, numerous patients stated that Mathews performed little or no examination before writing the prescriptions.

In April 2011, a DEA undercover law enforcement officer walked in to Mathews’ Prince Frederick medical office without an appointment. After paying the receptionist an office visit fee of $120, Mathews saw the undercover officer and gave him a prescription for 60 pills of oxycodone. Mathews explained that he had a problem with his DEA registration and told the undercover officer that he could only get his prescription filled at a particular pharmacy. Mathews never performed any type of routine medical testing of the undercover officer before filling out the prescription.

During the time that Mathews filled prescriptions without any legitimate medical purpose, Mathews billed the Department of Labor Office of Workers’ Compensation Programs (OWCP) and other health care benefit programs for services that were not rendered or were not medically necessary. Mathews billed all of his “repeat” patients to a particular medical code 99214, regardless of the actual content of the medical visit or examination. Most of Mathews’ patients’ repeat visits lasted no more than five minutes and involved no physical examination. OWCP provides guidance to physicians that a patient visit which can be properly billed at a code 99214 will typically involve approximately 25 minutes face to face with the patient.

As a result of the criminal conduct, Mathews received at least $615,000 from either patients who received drugs without there being a medical necessity, or from OWCP and other health care benefit programs for services that were not rendered or were not medically necessary.

Mathews and the government have agreed that if the Court accepts the plea agreement, Mathews will be sentenced to two years of probation with a condition requiring home detention for all two years. Mathews has also agreed to forfeit $615,000. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for April 21, 2014, at 9:30 a.m.

United States Attorney Rod J. Rosenstein praised the DEA – Washington Division Office, Tactical Diversion Squad; U.S. Postal Service - OIG; Department of Labor - OIG; Charles, St. Mary=s and Calvert County Sheriff’s Offices, Defense Criminal Investigative Service, OPM-OIG and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao, Mushtaq Z. Gunja and Sujit Raman, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Sold Drugs from Paschall Auto Body Shop in Baltimore, and Robbed Businesses and Homes in Maryland, Virginia, West Virginia and Pennsylvania

Baltimore, Maryland –Chad Paschall, age 28, of Baltimore, pleaded guilty today to conspiring to distribute oxycodone and two counts of conspiring to commit bank burglary. His father, David Paschall, age 54, of Catonsville, Maryland, pleaded guilty yesterday to the drug and burglary conspiracies.

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; Howard County Police Chief William McMahon; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department.

“This case dismantled an organization responsible for a wide range of criminal activity,” said U.S. Attorney Rod J. Rosenstein.

David Paschall operated Paschall’s Auto Body Shop, formerly located at 801 Desoto Road in Baltimore. According to their plea agreements, it was widely known that the car shop served as a marketplace for an assortment of illegal narcotics, including oxycodone, cocaine and heroin. David Paschall used more than five drug “brokers” to buy drugs almost every day at his shop which he would then either consume or sell for profit. As a leader in the drug conspiracy, he supervised others in the distribution of the drugs. In order to protect the drug conspiracy, David Paschall maintained many guns at the shop and sometimes carried a gun. It was reasonably foreseeable to David Paschall that this conspiracy distributed more than 59.70 grams of oxycodone, 200 grams of cocaine, and 80 grams of heroin from no later than 2010 to July 2013.

Chad Paschall was at the shop most every day, knew that the shop operated as a hub for drug sales and helped his father in brokering drug sales.

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

The conspirators usually cut power lines, telephone lines, cables and other wires before entering a business. They used vise grips, sledgehammers, chopsaws, grinders and blow torches to enter the business, and then often waited – for several minutes or sometimes up to several hours – before ransacking the business of its valuable items. David Paschall admitted that he committed, or attempted to commit, dozens of commercial burglaries with one or more coconspirators. For example, David and Chad Paschall used a forklift at a salvage or junk yard located on Hawkins Point Road in Baltimore to pile several junk cars next to a rear upstairs balcony. They climbed up the cars and broke into the office off the balcony. They used the forklift to transport a safe from the office to the ground, where it was broken open and approximately $48,000 was stolen.

At their sentencing David and Chad Paschall face a maximum sentence of 20 years in prison and a $1 million fine for the drug conspiracy, and five years in prison for the bank larceny conspiracy.

David Paschall has agreed to forfeit $500,000, his ownership interest in Paschall’s Auto Body Shop and his residence, three firearms and his vehicle. Chad Paschall has agreed to forfeit $250,000, his interest in his residence, four firearms and ammunition.

To date, a total of 10 defendants charged in the drug and burglary conspiracies have pleaded guilty to their participation in the criminal activities. Charges remain pending against six other defendants.

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

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

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Donwand Cuppatino Harmon, age 37, of Annapolis, Maryland, today to 210 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin. Judge Hollander also ordered Harmon to forfeit $27,895 in cash, a 2010 Porsche Panamera, a 2008 Mercedes Benz CL550, and jewelry, including a Breitling wrist watch with a diamond face and band.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Chief Kevin Davis; Commissioner Anthony W. Batts of the Baltimore Police Department; U.S. Marshal Johnny Hughes; and Anne Arundel County State’s Attorney Anne Colt Leitess.

“Heroin is a powerful drug that is affecting communities, destroying lives and tearing apart families,” said Anne Arundel County Police Chief Kevin Davis. “I am committed to collaborating with our law enforcement partners on a local, state and federal level in an effort to rid our neighborhoods of this drug and to take distributors off the streets and this case is an example of that.”

According to Harmon’s plea agreement, from at least August 2012 until August 2013, Donwand Harmon conspired with Damian Brown and others to distribute heroin in the Baltimore and Anne Arundel County, Maryland areas.

As part of the conspiracy, Harmon obtained and distributed bulk quantities of heroin to a number of individuals in the area. On five occasions from August 30, 2012 through October 18, 2012, investigators purchased a total of 49.8 grams of heroin directly from Harmon. On November 17, 2012, a confidential source contacted Harmon about another purchase of heroin. Harmon was not available but agreed to send an associate to complete the sale. At that meeting, the confidential source purchased approximately 10.2 grams of heroin from Damian Brown. On three occasions from December 12, 2012 through April 9, 2013, Harmon arranged for the confidential source to purchase an additional 42.1 grams of heroin directly from Damian Brown.

On June 13, 2013, agents tracked Mr. Harmon to a motel in Baltimore. There, agents saw a female previously associated with Mr. Harmon leaving the hotel. She drove slowly around the parking lot, looking at all the cars parked there, then pulled into a parking spot. Agents saw Harmon leaving the motel and ran after him, but Harmon got away. The woman got out of her car in a crouched position, and Agents saw her remove a black duffel bag from the rear driver’s side of the car and place the bag under the car next to hers. Agents retrieved the bag, which contained a black nylon holster, a box of ammunition, a black loaded magazine for a Glock handgun, and several digital scales that appeared to have residue on them.

Agents obtained a search warrant for Harmon’s room at the motel and recovered: a black men’s wallet with a Maryland identification for Donwand Harmon; a set of car keys for a Porsche driven by Harmon; $16,000 in cash; and three large bags containing approximately 1.7 kilograms of heroin.

On August 23, 2013, Deputy U.S. Marshals tracked Mr. Harmon to a residence in Suitland, Maryland, an arrested him as he left the home. A search incident to arrest revealed keys to the residence, $845 in cash, and a Washington, D.C. driver’s license in the name of Paul Simmons with Mr. Harmon’s picture. Members of the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives then obtained and executed a search warrant at the residence. From the first floor of the home law enforcement recovered, among other things: $10,050 in cash, wrapped in foil, and approximately 205.5 grams of crack cocaine found in the freezer; one 20-ton shop press with kilogram and half-kilogram sized molds with cocaine and heroin residue, approximately 516 grams of heroin in the mold on the press, and two bags containing approximately 625.1 grams of heroin that was found in the dining room closet. On the second floor law enforcement recovered a loaded .45 caliber handgun, a .loaded .357 caliber handgun, and a loaded 5.56 caliber firearm, as well as additional ammunition for all three guns; over six kilograms of cocaine; seven cell phones; $1,000 in cash; men’s jewelry and watches; and tally sheets for suspected narcotics transactions.

Harmon admitted that during the conspiracy he was responsible for distributing at least 1 kilogram of heroin.

Damian Brown pleaded guilty to the same charge on February 3, 2014, and is scheduled to be sentenced on June 17, 2014 at 11:00 a.m.

United States Attorney Rod J. Rosenstein praised the ATF, Annapolis Police Department, Anne Arundel County Police Department, Baltimore Police Department, U.S. Marshals Service and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark and Scott Lemmon who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Six Retailers Have Pleaded Guilty to Date

Baltimore, Maryland –Abdullah Aljaradi, age 52, and Ahmed Ayedh Al-Jabrati, age 58, both citizens of Yemen residing in Baltimore, have each pleaded guilty to wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Aljaradi’s guilty plea was entered on February 5th and Al-Jabrati entered his plea today.

The guilty pleas 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.

Aljaradi and Al-Jabrati operated two convenience stores, Second Obama Express and D&M Deli and Grocery, located next door to each other at 901 Harlem Avenue in Baltimore. According to their plea agreements and court documents, the stores 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.

Aljaradi and Al-Jabrati knew that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from October 2010 to July 2013, Aljaradi and Al-Jabrati 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 themselves.

The indictment alleges that as a result of these unlawful cash transactions, Aljaradi and Al-Jabrati obtained more than $2 million in payments for food sales that never occurred. While the Court will determine the actual amount of the financial loss for the purpose of calculating the sentencing guidelines, restitution, and forfeiture, any money judgment ordered by the Court will not be less than $259,344.15, the funds seized from the stores and from two bank accounts associated with the stores.

Aljaradi and Al-Jabrati each face a maximum sentence of 20 years in prison. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for Aljaradi on April 30, 2014, at 2:00 p.m. and for Al-Jabrati for March 25, 2014 at 1:00 p.m.

Nine retail store owners or operators, including Aljaradi and Al-Jabrati, were indicted in September 2013 on federal charges of food stamp fraud and wire fraud in connection with schemes to illegally redeem food stamp benefits in exchange for cash. Dae Cho, age 67, and her son Hyung Cho, age 40, both of Catonsville, Maryland, pleaded guilty to food stamp and wire fraud arising out of the operation of K&S Food Market located at 3910 W. Belvedere Avenue and are scheduled to be sentenced on February 21, 2014. Amara Cisse, age 50, who owned Simbo Food Mart, located at 2103 West Pratt Street in Baltimore, and his wife Fanta Keita, age 45, who worked at the store, both of Windsor Mill, Maryland, have also pleaded guilty to food stamp fraud and are scheduled to be sentenced on March 6, 2014, at 3:00 p.m.

United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.