District of Maryland

Baltimore, Maryland - A federal grand jury has indicted Sabrena Karim, age 63, of Baltimore, Maryland, on charges that she is in contempt of a court order permanently enjoining Karim from preparing or assisting anyone in preparing any document for filing in any bankruptcy court.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; U.S. Trustee Judy Robbins and the Baltimore Office of the United States Trustee Program, the Department of Justice component that supervises the administration of bankruptcy cases; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

The four count indictment alleges that on March 21, 2011, at a hearing attended by Karim, a United States Bankruptcy Judge for the District of Maryland issued a verbal Order permanently enjoining Karim from acting as a bankruptcy return preparer and from accepting any money for preparing or assisting in the preparation of any document to be filed in any bankruptcy court. The Judge followed up with a written Order, which repeated the findings and prohibitions. The written Order was mailed to Karim’s address on March 31, 2011.

Despite that Order, a subsequent Civil Contempt Order, and two visits from a Special Agent with the Federal Bureau of Investigation advising Karim that she was prohibited by the Bankruptcy Court’s Order from acting as a bankruptcy return preparer or otherwise assisting or advising anyone in connection with their bankruptcy matters, the indictment alleges that Karim continued to prepare bankruptcy petitions and other documents for filing in the Bankruptcy Court.

No court appearance is currently scheduled for Karim, who is released under the supervision of U.S. Pretrial Services.

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

United States Attorney Rod J. Rosenstein praised the U.S. Trustee’s Office and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.

Robbers Stole $11,000 and Left Victim Bound and in Obvious Pain

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Pedro Rodriguez Garcia, age 35, formerly of Rosedale, Maryland, to 27 years in prison followed by three years of supervised release for conspiring to commit, and committing, an armed commercial robbery, and brandishing a gun during the robbery.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore City Police Department; Chief James W. Johnson of the Baltimore County Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore County State’s Attorney Scott Shellenberger; Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and Maryland Attorney General Douglas F. Gansler.

“Superb law enforcement coordination brought the defendant to justice for the armed robbery that resulted in the tragic death of Constantine Frank,” said U.S. Attorney Rod J. Rosenstein.

According to evidence presented at the five day bench trial, Garcia participated in a robbery planned by co-defendant Nikolaos Mamalis. Mamalis recruited Garcia, Daniel Chase and others to rob Constantine Frank, the owner of Precision Vending located on S. Lakewood Avenue in Baltimore. Mamalis knew the owner socially and from prior business dealings, and he was familiar with the physical layout and security at Precision Vending from previous visits with Mr. Frank. On July 29, 2009, after Mamalis advised his co-conspirators that Mr. Frank was alone inside, Garcia and Chase entered the business disguised as package delivery men. Chase took out a gun from a false package they had brought inside, brandished the weapon and then gave it to Garcia who used the gun to hold Mr. Frank captive. The two robbers also used zip-ties and duct tape to restrain the victim while Chase searched the business for cash, stealing over $11,000. Knowing that Mr. Frank would recognize him, Mamalis waited outside the building and received periodic reports from Chase using prepaid wireless phones which Mamalis and Garcia had previously purchased.

The robbers left Mr. Frank bound, knowing that he was sweating profusely and in obvious discomfort. Shortly after leaving, Chase called one of Mr. Frank’s other businesses and said: “Your boss is in his office, and he is not doing so good.” Mr. Frank had suffered a stroke by the time officers found him conscious, but still in physical restraints and unable to speak. Mr. Frank was listed in critical condition when he arrived at the hospital and died less than two weeks later on August 11, 2009. The autopsy concluded that the cause of death was an intra-cerebral hemorrhage associated with stress resulting from the robbery and ruled the death a homicide.

After Mr. Frank’s death, Garcia fled the country and was captured by agents from the U.S. Border Patrol two years later.

Nikolaos Mamalis, age 56, of Edgewood, Maryland, was sentenced to 77 years in prison for conspiracy, three counts of commercial robbery and three corresponding firearms charges in connection with the Precision Vending robbery and two home invasion robberies in Maryland. Mamalis was convicted by a federal jury on February 3, 2011. Daniel Chase, age 67, of Browns Mill, New Jersey; pleaded guilty to his participation in a series of robberies planned by Mamalis and was sentenced to 141 months in prison.

United States Attorney Rod J. Rosenstein thanked the Federal Bureau of Investigation; Baltimore City and County Police Departments; New Jersey State Police; Baltimore City and County State’s Attorney’s Offices; U.S. Department of State’s Diplomatic Security Service and Maryland Attorney General’s Office for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorney Debra L. Dwyer and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.

Police Officer Heads to Federal Prison for “Disgraceful Violation of Public Trust”

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced former Baltimore Police officer Ashley Roane, age 26, of Pikesville, Maryland, today to five years in prison for extortion and aggravated identity theft.

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 Commissioner Anthony W. Batts of the Baltimore Police Department.

“Ashley Roane sold her police powers for a few thousand dollars, in a disgraceful violation of the public trust,” said U.S. Attorney Rod J. Rosenstein. “Ms. Roane agreed to provide armed security for drug deals while in uniform in her patrol car, and to check a police database to identify informants. She also used a police database to obtain names, birth dates, and Social Security numbers of arrestees that could be used in a scheme to obtain fraudulent tax refunds from the IRS.”

According to her plea agreement, beginning in the fall of 2012, Roane and her roommate Erica Hughes engaged in a scheme whereby they provided the names and social security numbers of persons arrested by the Baltimore Police to an individual who could file false tax returns to obtain fraudulent tax refunds. Roane obtained the personal information of more than 30 people from law enforcement databases through her position as a Baltimore Police officer. Roane and Hughes provided the information to the individual, who they believed worked as a tax preparer, in addition to being a large scale heroin trafficker in Baltimore.

On April 4, 2013, FBI agents watched as Roane arrived in her marked police patrol car for a meeting with the individual to obtain a fraudulent tax refund payment. As directed by the individual, Roane retrieved an envelope containing $2,500 from the source’s vehicle. At a recorded meeting on April 24, 2013, the individual went to Roane’s house and gave Roane an additional $1,500 that the FBI had provided to the individual, purported to be a fraudulent tax refund.

Roane admitted that she also provided protection for the individual’s purported drug trafficking. For example, on March 31, 2013, Roane told the individual that she had performed an unauthorized criminal check of one of the individual’s alleged associates, to determine if the associate was a police informant, and the individual was “clean.” After Roane agreed to provide protection during drug transactions, on April 30, 2013, the FBI set up a controlled purchase by the individual of white powder which resembled a kilogram of heroin. The FBI watched while Roane, in uniform, armed with her service gun, and in a marked police car, provided protection while the individual purportedly retrieved heroin from a vehicle provided by the FBI. Shortly thereafter, at a prearranged meeting, the individual paid Roane $500 for her protection. Roane agreed to provide such protection again in a future transaction involving multiple kilograms of heroin.

During the course of the schemes, Roane and Hughes received $5,250 from the individual in what Roane believed was proceeds of fraudulent tax refunds. Roane also received a total of $1,000 in exchange for providing protection to the individual during what Roane believed were kilogram-level heroin transactions.

Co-defendant Erica Hughes, age 26, of Pikesville, previously pleaded guilty to aggravated identity theft and was sentenced to two years in prison.

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

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Anthony Joseph Harlow, age 30, of Dundalk, Maryland, today to 10 years in prison followed by five years of supervised release for possession with intent to distribute cocaine base and possession of 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; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, on December 20, 2012, Baltimore County Police officers stopped a car in which Harlow was traveling. The officers executed a warrant to search Harlow and seized a loaded pistol and 55 plastic baggies containing 20.4 grams of crack cocaine.

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

Correctional Officer Smuggled Drugs and Contraband for BGF into Baltimore Correctional Facility and Had Sex With a BGF Inmate

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie, Maryland, to 32 months in prison followed by three years of supervised release for racketeering conspiracy arising from the smuggling of drugs and contraband for members of the Black Guerilla Family (BGF) gang 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; Acting 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 her plea agreement, Thornton worked as a correctional officer at BCDC and BCBIC from 2007 to 2013. She had a personal and sexual relationship with one of the leaders of the BGF inmates at BCDC. Thornton smuggled large quantities of contraband, including marijuana, tobacco and prescription pills, into BCDC on behalf of the BGF leader and other BGF leaders, including Steve Loney and Tavon White. Thornton also warned inmates of impending searches by prison officers.

Thornton is the third correctional officer to be sentenced 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. Six other correctional officers have pleaded guilty to the racketeering conspiracy and 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.

Tyrone Thompson, a/k/a Henry, age 46, who admitted to supplying prescription pills that were smuggled into the jail, will be sentenced tomorrow at 11:30 a.m.

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.

Deliberately Avoided Learning the Truth as to the Fraudulent Nature of the Mortgages

Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Jared Fanning, age 35, of Potomac, Maryland, today to 22 months in prison followed by three years of supervised release for wire fraud in connection with a scheme to fraudulently obtain mortgages worth approximately $13 million. Judge Messitte also entered an order that Fanning pay restitution and forfeiture of $108,355.21, the amount of loss attributable to him resulting from the scheme.

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

According to his guilty plea, from June 2006 through June 2007, Fanning helped real estate agents Michael Abobor, Daniel Ofei and others obtain mortgages for the agents’ clients. During that time, Fanning learned that the information provided by the agents for mortgage applications was probably false. For example, on multiple occasions, Fanning calculated debt-to-income and reported to the agents that the client had insufficient income. The agents responded immediately with “forgotten” monthly income of hundreds of dollars or more, leading Fanning to suspect that the additional income information supplied by the real estate agents was false. Despite Fanning’s concerns, he helped the agents obtain 24 mortgages totaling approximately $13 million.

According to evidence presented at the hearing, as a result of the fraudulent scheme, financial institutions suffered over $4.5 million in actual losses as a result of the financial transactions in which Fanning played a part.

Michael Abobor, age 38, and Daniel Ofei, age 39, both of Bowie, Maryland previously pleaded guilty to their roles in the conspiracy. Judge Messitte sentenced Abobor to 51 months in prison and ordered him to forfeit $2,026,205 and pay restitution of $1,832,650. Judge Messitte sentenced Ofei to 37 months in prison and ordered Ofei to pay restitution of $5,950,000. Two other co-conspirators of Ofei and Ababor in the broader scheme, Emeka Udeze, age 38 of Bowie, a licensed mortgage broker, and Shola Risikat Balogun, age 47, of Upper Marlboro, Maryland, have also pleaded guilty and await sentencing.

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.

This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

United States Attorney Rod J. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.

Allegedly Prostituted a 14 Year Old Female

Baltimore, Maryland - A federal grand jury has indicted five individuals in a sex trafficking conspiracy. The following defendants are charged in the indictment:

Kenneth Ronald Robinson, a/k/a “Kenny” and “Keith,” age 52, of Baltimore, Maryland; Eric Evans, a/k/a “E,” age 38, of Baltimore; Jeffrey Clark, a/k/a “cripple on a Budget,” age 43, of Nottingham, Maryland; Craig Judy, age 29, of Baltimore; and
Cheralyn Crawford, a/k/a “Rachel,” age 25, of Baltimore.

The superseding indictment, which adds Evans as a defendant, was returned on January 28, 2014, and unsealed today upon Evans’ arrest. The original indictment against Robinson, Clark, Judy and Crawford was returned on October 1, 2013.

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

The two count indictment alleges that from May 12 through June 17, 2013, the defendants recruited, transported, and received money by having a minor female, born in 1999, engage in commercial sex acts. The defendants instructed the victim on pricing for the different sexual activities. The defendants are also alleged to have taken photographs of the minor victim in sexually explicit poses and posted those photos in advertisements on an internet website to advertise her prostitution services. The defendants transported the minor victim to motels in the Towson, Maryland, area, where she was directed to meet with commercial sex customers to engage in prostitution.

The defendants face a maximum sentence of life in prison. An initial appearance has been scheduled at 2:45 p.m. for Evans in U.S. District Court in Baltimore. The remaining defendants had their initial appearances in October 2013. Robinson, Clark and Judy are detained and Crawford is released under the supervision of U.S. Pretrial Services.

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

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

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

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

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Terrin Tamal Anderson, age 29, of Waldorf, Maryland, today to 12 years in prison followed by eight years of supervised release for distributing cocaine base and being a felon in possession of a gun.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Chief of Police Robert Maclean of the U.S. Park Police; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

According to his plea agreement, from April 14, 2011 to January 30, 2012 ATF and U.S. Park Police agents made eight controlled purchases of cocaine base from Anderson totaling 308.8 grams. Anderson received a total of $11,000 for the drugs. The drugs were sold in different locations in Prince George’s County, Washington, D.C. and Oxon Hill, Maryland. On June 6, 2013, a search warrant was executed at Anderson’s residence. Agents seized a pistol. Anderson had previously been convicted of a felony and was prohibited from possessing a gun.

United States Attorney Rod J. Rosenstein praised the U.S. Park Police, ATF, DEA and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Scott Zalewski, age 31, of Federalsburg, Maryland, today to 40 years in prison followed by lifetime supervised release for two counts of producing child pornography. Judge Motz ordered that upon his release from prison, Zalewski must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Caroline County Sheriff Randy Bounds; and Caroline County State’s Attorney Jonathan Newell.

According to the plea agreement, on at least three occasions from July through August 2011, Zalewski took sexually explicit photographs of a minor female, under 12 years of age, including several photographs documenting his sexual abuse of the girl, which he then emailed to another person. On January 2, 2013, the Zalewski’s live-in girlfriend provided police with photographs that contained sexually explicit images of the victim, which she reported finding in Zalewski’s email account.

Police arrested Zalewski later on January 2, 2013. A search warrant subsequently executed on Zalewski’s email account recovered digital copies of the sexually explicit pictures of the victim being sent to another individual. More than a dozen other emails were also seized, dating from July and August 2011, in which Zalewski was trading sexually explicit images of other children with other individuals.

A hard drive recovered from Zalewski’s house, and a laptop Zalewski’s ex-girlfriend previously turned over to police were also searched pursuant to a federal warrant. The hard drive contained forty-five images of child pornography, dating from approximately April 2008. On the laptop were records of chats in which the defendant discussed and exchanged child pornography with others, dating from approximately December 2006 through October 2007.

Text messages recovered from Zalewski’s cellular telephone showed discussion of child pornography with others on December 31, 2012, and January 1, 2013. Some text messages had image attachments, but the images were deleted and could not be recovered.

Zalewski previously pleaded guilty in Caroline County Circuit Court to a second degree sex offense and to rape in the second degree and was sentenced to a total of 40 years in prison on those charges. Zalewski’s state and federal sentences will be served concurrently.

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, Caroline County Sheriff’s Office, and Caroline County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Justin S. Herring, who prosecuted the case.

Virginia Man Faces Manslaughter Charge for Death of Climber in Carderock

Greenbelt, Maryland - A federal grand jury has indicted David DiPaolo, age 31, of Bristow, Virginia, on charges of voluntary manslaughter in connection with the death of a person in Carderock, an area within the Chesapeake and Ohio Canal National Historical Park. The indictment was returned on January 29, 2014. DiPaolo is scheduled to have an initial appearance today before U.S. Magistrate Judge Charles B. Day, in Courtroom 2A, U.S. District Court in Greenbelt, Maryland, at 3:30 p.m.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Chief of Police Robert MacLean of the U.S. Park Police.

According to the indictment and other court documents, on December 28, 2013, the victim was found on a trail in Carderock with massive head injuries. The indictment alleges that after arguing with the victim, DiPaolo killed the victim by repeatedly striking the victim in the head with a blunt object. DiPaolo was arrested by New York State Police on January 8, 2014, and had an initial appearance in U.S. District Court in Albany, New York. DiPaolo was transported to Maryland by U.S. Marshals.

DiPaolo faces a maximum sentence of 15 years in prison for voluntary manslaughter.

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

United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation and thanked the New York State Police, U.S. Attorney’s Office for the Northern District of New York, and the U.S. Marshals Service for their assistance. Mr. Rosenstein thanked Assistant United States Attorney Mara Zusman Greenberg, who is prosecuting the case.

When Adults Promote Juvenile Prostitution, “That is Human Trafficking, Period”

Baltimore, Maryland – A federal grand jury returned a superseding indictment today charging Richard Ho Lee, age 32, of Baltimore, today with production of a visual depiction of a minor engaged in sexually explicit conduct, transportation with intent to engage in criminal sexual activity, receipt of child pornography, and aggravated identity theft.

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.

“When an adult profits from sex with a child, that is human trafficking, period,” said Maryland U.S. Attorney Rod J. Rosenstein. “Children cannot consent to have sex for money, and any adult who encourages or profits from sexual exploitation of children faces a lengthy term in federal prison.”

According to the five count indictment, on five occasions in September and October of 2011, while Lee and the victim were in Baltimore, Lee purchased sex from the victim, who was only 16 years old. On October 31, 2011, Lee paid for a bus ticket for the victim to travel to Panama City, Florida, where Lee met her. Lee took the victim to a condo he had rented in Panama City and allegedly provided the victim with marijuana and alcohol. According to the indictment, Lee continued to have sex with the 16 year old victim, and encouraged her to engage in prostitution. From about December 22, 2011 to January 4, 2012, Lee placed at least 15 advertisements for the victim in the “escorts” and “body rubs” sections of an adult website. Lee used his personal credit card to pay for the advertisements, which stated, among other things, that the victim was an adult. Lee took provocative photographs of the victim in lingerie and underwear that he had purchased for the victim and attached some of the photos to the advertisements. Lee allegedly rented a second condominium where he told the victim to engage in prostitution. The indictment charges that the victim had sex with customers and agreed to provide Lee with a percentage of her earnings.

On January 9, 2012, Lee purchased a bus ticket for the victim, which she used to travel from Florida back to Maryland. In January 2012, Lee produced a counterfeit North Dakota state driver’s license for the victim, which indicated that she was 22 years old, and which Lee knew to contain the personal identifying information of another person. In May 2012, Lee allegedly took pornographic photographs of the victim inside his residence in Baltimore, some of which he sent via email over the Internet.

According to the superseding indictment, in June 2012, federal agents recovered Lee’s laptop computers and an external hard drive which contained over 600 images of child pornography, including images that depicted minors that are less than twelve years old and portrayed sadistic and masochistic conduct. Further, the laptop contained pornographic photographs that Lee had taken of the victim. In addition, the indictment alleges that Lee’s computer contained templates designed to be used for the production of counterfeit state driver’s licenses.

Lee faces a maximum sentence of life in prison for production of child pornography and for transportation with intent to engage in criminal sexual activity; a maximum of 20 years in prison for receipt of child pornography; and a mandatory sentence of two years in prison, consecutive to any other sentence, for aggravated identity theft. An initial appearance will be scheduled 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.

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

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

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

Distributed Over a Ton of Cocaine in Baltimore in Less Than Two Years; Authorities Seized Over $6.7 Million in Luxury Cars and Motorcycles, Jewelry, Cash and Bank Accounts, Clothing and Real Estate

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Garnett Gilbert Smith, a/k/a Abdule Jones a/k/a Brian Slack, age 44, of Baltimore, Maryland, today to 25 years in prison followed by three years of supervised release for conspiring to distribute and possession with intent to distribute cocaine.

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

“Garnett Smith was one of the largest cocaine and heroin dealers to be arrested by the DEA in recent history,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “Smith was responsible for the distribution of more than 1,000 kilograms of cocaine during a period of less than two years. Smith will now spend the prime of his life in prison and will not be eligible for parole until he is a senior citizen,” added Tuggle.

According to his plea agreement and court documents, beginning in at least 2009, Smith acquired large quantities of cocaine from sources of supply in California and shipped the drugs for distribution in the Baltimore area. By 2010, he teamed up with codefendants Marc Collins and Michael White who supplied Smith with over 1,000 kilograms of cocaine from California. Shipments of the cocaine were typically in quantities of 60 to 80 kilograms each. The cocaine was often hidden within vehicles loaded on car carriers. Smith sent money for the payment of the drugs back to California in concealed compartments on the car carriers.

Smith directed others in acquiring, transporting and delivering the cocaine, and in laundering the proceeds from the cocaine sales. In Los Angeles, expensive apartments with gated garages were used to store and test the cocaine prior to shipment. The gated entrances provided additional security from potential law enforcement surveillance. New cell phones were used on each trip to further conceal their illegal activities.

When White was arrested on unrelated federal drug charges in July of 2010, Collins replaced White as Smith’s supplier of cocaine until October 2011, when Arkansas state troopers stopped a car carrier loaded with $2,306,745 sent by Smith in Baltimore to be delivered to Collins in California. Between early 2010 and October 2011, at least 18 shipments of cocaine, consisting of between 60 to 80 kilograms per trip, had been made using the car carrier method.

Smith maintained a low profile after the Arkansas authorities seized the money, but by the summer of 2012, Smith again acquired drugs, shipping them to Maryland. Smith used co-defendant Antonio Johnson to ship kilogram quantities of cocaine through the U.S. Postal Service. In late August, Smith and Johnson sent a car to Maryland on a different car carrier. The vehicle was intercepted and four kilograms of heroin were found in a hidden compartment. Authorities made a controlled delivery of the heroin in September. Johnson retrieved the vehicle from the car carrier and delivered it to Smith in Baltimore. Both were arrested. The heroin had a wholesale value of $300,000.

Search warrants were executed at Smith’s residences in Maryland and Studio City, California. Money counters were seized, along with approximately $1.6 million in jewelry, $740,000 and hundreds of shoes. Authorities also seized two Can Am Spyder three wheeled motorcycles and 15 vehicles purchased by Smith, including a 2010 Aston Martin, a 2009 Lamborghini Murcielago, a 2008 Maybach and a Mercedes-Benz CL550, along with real estate and bank accounts worth over a million dollars. Smith paid no taxes, structured cash deposits to bank accounts to avoid financial reporting requirements and placed assets in the names of friends and relatives.

Including the cash seizure in Arkansas, approximately $6.7 million dollars in assets have been seized from Smith.

Marc Tyrone Collins, Michael Lee White and Antonio Lamont Johnson previously pleaded guilty to their participation in the conspiracy. Johnson was sentenced to 156 months in prison. Collins is scheduled to be sentenced on March 6, 2014. No sentencing date is currently scheduled for White.

United States Attorney Rod J. Rosenstein praised the DEA Baltimore and Los Angeles Field Offices, Maryland Natural Resources Police, the Baltimore Police Department and the Baltimore State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and David Sharfstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Defrauded Lowe’s of More Than $464,000 by Calling Lowe’s Stores and
Pretending to be from Lowe’s IT Department

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Lucerte “Lisa” Abellard, age 35, of Dobbs Ferry, New York, today to 53 months in prison, followed by three years of supervised release, for conspiracy to commit wire fraud in connection with a scheme to defraud Lowe’s stores. Judge Hollander enhanced Abellard’s sentence upon finding that she was a leader in the scheme and ordered Abellard to pay restitution of $410,989.95.

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

According to her plea agreement, Abellard called employees at Lowe’s stores around the United States, pretending to be from the “IT department” at Lowe’s headquarters, telling the Lowe’s employee that she received a report there were problems with a register at the Lowe’s store. She would then ask the employee to run a series of diagnostics on the register, often pretending to be able to see the tests remotely. The purported diagnostics ended with a “test” transaction that put a credit on a Lowe’s gift card – usually about $3,000 to $4,000. In reality, this “test” transaction put a credit onto a Lowe’s card possessed by Abellard or her co-conspirators. Abellard was usually successful in deceiving employees into believing she was calling from Lowe’s IT department because she was very familiar with Lowe’s internal procedures and systems – including the names of systems and databases routinely accessed by Lowe’s employees.

Abellard received a portion of value on the gift card she fraudulently credited from the co-conspirators to whom she sold the cards. After obtaining the fraudulent credit, Abellard would contact the co-conspirator that had paid her for the card, advise that person of the credit and that the card needed to be used quickly before Lowe’s detected the fraud. Phone records connect Abellard and her co-conspirators to the fraudulently obtained gift cards, and confirm that Abellard made most or all of the fraud calls to Lowe’s stores.

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. Mr. Rosenstein praised Assistant U.S. Attorney Justin S. Herring, who prosecuted the case.

Defendant Imported Counterfeit Merchandise from China

Baltimore, Maryland – Hao Yang, age 25, of Bloomsburg, Pennsylvania, pleaded guilty today to conspiracy to traffic in counterfeit goods and counterfeit military goods.

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

“The defendant imported counterfeit goods from China and fraudulently sold them as legitimate merchandise,” said U.S. Attorney Rod J. Rosenstein. “Counterfeit integrated circuits from China were falsely represented to be legitimate American-made parts.”

According to his plea agreement, from 2010 through the date of his arrest on June 19, 2013, Yang participated in a conspiracy to import and sell counterfeit goods and counterfeit military goods to customers in the United States. Yang and his co-conspirators created and operated several companies in Maryland, Pennsylvania, and elsewhere, to facilitate the conspiracy, including MS TECHNOLOGIES and AONE ELECTRONICS in Baltimore, Maryland; ABEST TECHNOLOGIES in China; and ARRCORD GROUP, SMC GROUP and SMOOTH LLC. The latter three companies were operated by Yang at his residence in Bloomsburg. Yang used his residence to warehouse the counterfeit goods, including counterfeit military goods, sent to him by his co-conspirators in China. He then shipped specific items to buyers in the United States based on the order information provided by his co-conspirators. Yang maintained numerous bank accounts to deposit his illegal commissions and make payments associated with his counterfeit activities. He also used the commissions he received from his co-conspirators to pay for living expenses and other purchases, including his 2010 Acura TSX sedan.

The counterfeit circuits received by Yang, a number of which were military-grade, were supplied by one specific co-conspirator located in China. This co-conspirator sold, or attempted to sell, the circuits to various individuals, companies and government agencies in the United States. Yang then distributed the counterfeit circuits, via his domestic businesses, to the buyers in the United States sometimes in repackaged form. The co-conspirator paid Yang a commission of $500 per month for his distribution services. To conceal the fact that the counterfeit circuits were being imported from China, Yang and his co-conspirator formed AARCORD GROUP to create the appearance that the co-conspirator’s company in China (from which the counterfeit circuits were being distributed) was actually based in the United States. By using counterfeit circuits, their malfunction or failure could likely have caused serious bodily injury or impaired military operations, personnel or national security.

Throughout the course of the conspiracy, Yang also obtained other counterfeit goods, including computer software, DVDs, and sports jerseys, from other co-conspirators in China and Hong Kong, which he then distributed in the United States. As was the case with the counterfeit circuits, Yang and these other co-conspirators concealed the fact that the goods they sold were counterfeit and produced in China and Hong Kong. Yang received commissions from these co-conspirators of $1,000 to $2,000 per month for his distribution services.

Between March 2011 and April 2013, Yang received hundreds of shipments from China and Hong Kong, including shipments involving integrated circuits. For example, in June 2012, Yang received two shipments of counterfeit military grade integrated circuits sent to ARRCORD Group at his residence and also received three shipments of other counterfeit goods, including DVDs and counterfeit computer software, sent to SMC Group at Yang’s residence. The Manufacturers Suggested Retail Price of the counterfeit DVDs and computer software was over $58,000.

As part of his plea agreement, Yang will be required to forfeit five bank accounts worth over $59,000, the 2010 Acura purchased with proceeds of the crime, and counterfeit computer software, DVDs, sports jerseys and other items with an approximate value of $280,720.

Yang faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 28, 2013 at 11:00 a.m.

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

Caused Approximately $4 Million in Losses to Investors

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Larry Michael Parrish, a/k/a Michael Parrish, age 49, of Walkersville, Maryland today to nine years in prison, followed by three years of supervised release, for wire fraud arising from an investment scheme in which investors lost approximately $4 million by relying on Parrish’s false representations concerning his company IV Capital, Ltd. Judge Motz also ordered Parrish to pay restitution of $4 million.

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

According to his plea agreement, Parrish operated IV Capital, Ltd., which from November 2005 to October 2009, he described to potential investors as an investment and trading company. Parrish made a number of false representations to encourage potential investors to make investments with IV Capital. For example, Parrish falsely represented that IV Capital: traded stocks, bonds, currencies precious metals and other instruments on international exchanges; had $20 million or more under management; had established a minimum gross profit margin each month of 5%, which would be equally divided between the company and its individual investors; and employed a number of other traders and staff. In fact, the company had no employees aside from Parrish and one other trader hired as an independent contractor.

Parrish also falsely represented that: he and several partners had invested substantial funds of their own with the company; that all invested funds would be deposited in an escrow account and used solely to secure a line of credit from a financial institution, which would provide the actual working capital for IV Capital’s trading activities; and that IV Capital’s management of its accounts would be evaluated by top licensed professional third parties. In fact, Parrish had no partners and had not invested any of his own funds with IV Capital. The investors’ funds were directed to an offshore bank in Bermuda where they were not kept in an escrow account, but were instead used to generate funds for risky and highly unsuccessful trading activity, to make the “profit” payments of roughly 2.5% monthly back to the investors, and to supply funds for the personal use of Parrish and his family.

Out of the approximately $9.2 million in investor funds that were placed with Parrish and IV Capital between February 2006 and October 2009, Parrish allocated approximately $2.938 million to trading activity conducted by himself and the other trader, almost all of which was lost in making risky and unsuccessful investments in options and futures contracts. Another $5.2 million was used to make “profit” payments to IV Capital investors, and more than $1 million was used by Parrish for personal expenses, including purchases of clothing, furniture, electronics and other items, paying bills for rent, food and utilities, as well as paying for entertainment and vacation expenses, including a golf outing for himself and a number of friends in May 2008, and the purchase of a 2009 Harley Davidson FXDF motorcycle in September 2008.

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 FBI for its work in the investigation and praised Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case. The United States Securities & Exchange Commission (SEC) also conducted a civil securities fraud investigation of Parrish, and obtained a default judgment against him in a civil action filed in federal court in Denver, Colorado in September 2012.

Previously Shot a Person to Death and Committed Multiple Robberies; Associated With the Black Guerilla Family

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Maurice Colbert, age 60, of Baltimore, Maryland, today to 20 years in prison followed by five years of supervised release for armed robbery, forced accompaniment and using a gun during the robbery. Judge Blake also ordered Colbert to pay restitution of $13,940.

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 County State’s Attorney Scott Shellenberger; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief James W. Johnson of the Baltimore County Police Department.

According to evidence presented at his four day trial, on November 7, 2011, Colbert and another man stormed into the 1st Mariner Bank located at 176 Carroll Island Road in Middle River, Maryland, both armed with handguns. Colbert’s accomplice jumped on the counter next to the teller station. One of the bank employees, an assistant manager, collapsed on the floor in fear. Colbert ordered a bank employee to open a vault and ATM vaults. The employee told him she could not open the vaults because she only had the keys, not the code.

Colbert then opened three teller drawers and removed all of the money, including three dye packs as well as bait money. At times, Colbert pressed the gun into the employee’s back, and held her arm as he walked her around the bank with the gun in his other hand.

Meanwhile, the accomplice forced three tellers, the assistant manager and two customers, one of whom was elderly, into a small room used by customers to review in privacy the contents of safety deposit boxes. While packing them tightly into the room, the accomplice grabbed a teller by the neck, and grabbed another teller’s hair while placing his gun to the back of her head. He then tied most of them up tightly with zip ties. Just prior to closing the door, one of the robbers threw a liquid on the wall, the smell of which burned their noses and eyes. They fled with $31,153, although $17,213 was later recovered from the bank’s parking lot.

Shortly thereafter, the police were called and responded. An employee from a restaurant next door told a police officer that he had seen two men inside a vehicle with a sedan service company written on its side, parked in the lot by the bank. An FBI agent went to the location of the sedan service company in Baltimore and learned from the business owners that Colbert had used the vehicle that day. After patrolling the immediate area for a short while, the agent returned to the business and saw the vehicle parked outside the business location. Law enforcement saw red stains on the carpet of the vehicle, consistent with the red dye used in bank dye packs.

Colbert was found inside the sedan service company’s building and was taken to police headquarters. The sedan service owner showed police the money bills Colbert had given her, which were also stained red. Dye stains used by banks were also found on Colbert’s clothing and money in his pocket.

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

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced James F. Honesty, age 25, Washington, D.C., today to 114 months in prison, followed by three years of supervised release, for carjacking and for being a felon in possession of a gun.

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

According to Green=s plea agreement, in the early morning hours of June 6, 2012, the victim was in the 600 block of Audrey Lane in Oxon Hill, Maryland. The victim had retrieved some items from her car and was walking home when Honesty pointed a shotgun at her face and demanded her car keys. The victim gave Honesty the keys and he drove away in the victim’s car. Honesty was apprehended after police chased the stolen vehicle from Washington, D.C. to Cheverly, Maryland. Honesty and the other occupants of the car ran away after the vehicle crashed and Honesty was arrested nearby. Police recovered a 16 gauge shotgun with a sawed off barrel and a .380 caliber semi-automatic handgun in the vehicle. Both firearms were loaded and had one round in the chamber. Honesty was prohibited from possessing a firearm due to a previous felony conviction.

United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department and Prince George’s County State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Nelly Dadson, age 23, of Baltimore, today to four years in prison, followed by five years of supervised release, for conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes. Judge Grimm also ordered Dadson to forfeit and pay restitution of at least $251,745.52.

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

According to her plea, from June 14, 2010 to March 11, 2013, Dadson, Paul Essel and others opened bank accounts in their own names and in the names of shell corporations that they controlled. Dadson, Essel and others used counterfeit checks that resembled convenience checks that had been stolen from mailboxes in Montgomery and Prince George’s Counties. The counterfeit checks contained names, addresses and account information that appeared on the convenience checks. Dadson deposited these counterfeit checks into accounts controlled by the conspirators and then withdrew funds from the accounts. Essel and other co-conspirators paid Dadson between $1,000 and $5,000 per check to deposit these checks and withdraw funds.

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

On April 29, 2013, law enforcement executed a search warrant at Dadson’s home and upon entry, saw Dadson attempting to flush several stolen credit cards down a toilet. Dadson admits that she used a victim’s name to make fraudulent transactions on approximately 10 credit cards and numerous gift cards in the victim’s name, purchasing electronics and other expensive items.

The total loss caused by Dadson’s conduct is between $200,000 and $400,000, involving between 10 and 50 victims.

Paul Essel, age 26, of Laurel, Maryland, pleaded guilty today to conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes. Essel faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. Essel has agreed to pay forfeiture and restitution of at least $418,435.48. U.S. District Judge Paul W. Grimm scheduled his sentencing for May 13, 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. Postal Inspection Service, U.S. Department of Treasury – Office of Inspector General and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Christen A. Sproule and Bryan E. Foreman and, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Edgar Galdamez, age 37, of Rockville, Maryland, today to 18 months in prison followed by three years of supervised release for wire fraud in connection with a mortgage fraud scheme. Judge Messitte entered an order that Galdamez pay $515,000 in restitution and forfeiture, the amount of loss resulting from the scheme.

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

According to his plea, from at least September 2006 through May 2007, Galdamez and others contacted individuals who wished to purchase homes as investment properties. Galdamez and others prepared and submitted false loan applications in the buyers' names to the lending institution to qualify these individuals for loans that they otherwise were unqualified to obtain. For instance, they typically inflated the buyer=s income and omitted liabilities. They also falsely stated that the purpose of the property was to be the borrowers= primary residence in order to receive a lower interest rate. Galdamez knew that the property was intended to be used as an investment property. These residential mortgages were destined to fail because the borrowers did not have the income or assets to make the necessary mortgage payments. Galdamez and others profited from these fraudulent transactions by collecting origination fees, commissions and broker's fees from each loan that closed.

As a result of the fraud scheme, the lender lost $515,000.

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 commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.

Baltimore – Andres Dorantes Flores, age 43, of Elkton, Maryland pleaded guilty today to soliciting others to kidnap a 10 year old boy.

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

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

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

Flores and the government have agreed that if the Court accepts the plea agreement Flores will be sentenced to 175 months in prison followed by three years of supervised release. U.S. District Judge William D. Quarles has scheduled sentencing for May 8, 2014 at 1:00 p.m.

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

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Malick Green, age 30, of Baltimore, today to 10 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition.

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 Green's plea agreement, on March 17, 2012, Baltimore City Police Detectives were observing the area around the 1800 block of North Broadway in Baltimore, and saw Malick Green enter an alley in that area. Green was holding his waistband as he ran through the alley to the rear yard of 1812 Register Street. Detectives observed the defendant move a piece of plywood that covered the rear basement stairs to 1812 Register, place a metallic object that officers believed to be a handgun on the steps, and return the plywood to its original location. Green then continued south down the alley.

Detectives located Green on Register Street and detained him as they went to the rear yard of 1812 Register. Detectives moved the plywood and found a.45 caliber handgun, loaded with a magazine containing six rounds of .45 caliber ammunition. Green was prohibited from possessing a firearm and ammunition due to previous felony drug convictions

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

Baltimore, Maryland – Former Baltimore Police officer Lamin Manneh, age 32, of Baltimore, pleaded guilty today to traveling across state lines and using the telephone and internet to operate a prostitution business.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Anne Arundel County State’s Attorney Anne C. Leitess.

According to the indictment and information presented at today’s plea hearing, between February 2013 and May 9, 2013, Manneh operated a prostitution business that serviced over 300 customers. The business provided prostitution services to customers who came to an agreed location (“in-call”), as well as at locations specified by the customers (“out-call”). Manneh’s 19 year old wife and another 19 year old woman worked as prostitutes for Manneh. The government alleges that as part of his business, Manneh drafted, paid for, and posted more than 50 prostitution advertisements for the two women on internet websites; rented an apartment and hotel rooms to facilitate “in-call” commercial sex acts with clients who responded to the prostitution advertisements and drove the women to “out-call” commercial sex acts at residences and hotel rooms.

According to the information presented at the plea hearing, Manneh provided the women with cell phones and taught them to use “voice over internet” phone services to communicate with prospective clients and with one another. Manneh waited outside the commercial sex act locations and sent the women electronic messages when they were with clients; and that Manneh carried his police-issued firearm and agreed to forcibly interrupt a commercial sex interaction if the client was aggressive or non-compliant; and that he supplied both women with synthetic marijuana. Manneh collected all of his wife’s prostitution earnings and a percentage of the other woman’s prostitution earnings.

Manneh faces a maximum sentence of five years in prison, followed by up to lifetime of supervised release, for operating a prostitution business. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for May 8, 2014 at 9:30 a.m.

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

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

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

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Antoin Lamont Garrison, age 46, of Baltimore, Maryland, today to 20 years in prison followed by three years of supervised release for illegal possession of guns and ammunition by a convicted felon, possession of cocaine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. Judge Blake enhanced Garrison’s sentence upon finding that he is an armed career criminal based on three previous convictions for drugs and violent crime.

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

According to testimony presented at Garrison’s five day trial, in May 2011, Baltimore Police officers and FBI agents received information from a source that Garrison had offered to sell the source guns and drugs. Witnesses testified that after additional investigation, law enforcement arranged for the source to purchase ammunition, firearms and cocaine from Garrison. On May 20, 2011, Garrison met with the source and sold the source 200 rounds of ammunition. On May 24, 2011, the source contacted Garrison. The two agreed to meet and Garrison provided the source with a police issued bullet proof vest. Later that same day, Garrison and the source met again at a residence on Bartlett Avenue. Garrison brought a black bag out of the residence and showed the source two handguns that were in the bag. Garrison explained that those guns were for protection but that he had other guns he could sell to the source. The source paid Garrison $3,750 in FBI funds to purchase three ounces of cocaine. Garrison told the source he would contact the source to arrange delivery of the cocaine. According to trial testimony, Garrison met with the source the next day and provided 70.7 grams of cocaine.

On May 27, 2011, a search warrant was executed at the Bartlett Avenue residence. Law enforcement agents seized a .22 LR rifle; a 30-30 caliber rifle; 9mm handgun loaded with 10 rounds of ammunition; a .22 caliber revolver and various rounds of ammunition.

Garrison was prohibited from possessing firearms or ammunition due to his previous felony convictions.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Baltimore City State’s Attorney=s Office and Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, and Assistant United States Attorney Benjamin M. Block, who prosecuted the case.

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

Baltimore, Maryland – Abdulmalik Abdulla, age 37, and Ahmed Mohssen, age 53, both of Baltimore, were arrested today on federal charges of conspiracy to commit food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. The criminal complaint filed today alleges that the defendants, who operate Sam’s NY grocery store on North Milton Street in Baltimore, received over $1.5 million in federal payments for transactions in which they did not provide any food, but split the proceeds with food stamp recipients. Federal agents arrested the defendants and executed search warrants at the store and related locations today. In separate cases, ten defendants were charged with food stamp fraud in September 2013; four of those defendants have pleaded guilty and the others are awaiting trial.

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

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

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

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

The criminal complaint alleges that the defendants exchanged EBT benefits for cash, typically paying half the value of the EBT benefits in cash. As a result of unlawful cash transactions, the defendants allegedly obtained more than $1.5 million in EBT deposits for transactions in which the store did not provide food.

The defendants face a maximum sentence of 20 years in prison for each count of wire fraud, and a maximum of five years in prison for conspiracy to commit food stamp fraud. The defendants are expected to have initial appearances at 3:45 p.m. today in U.S. District Court in Baltimore.

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

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

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Correy Markel Janifer, age 21, of Washington, D.C., today to 46 months in prison followed by three years of supervised release for being a felon in possession of a gun and interstate transportation of a stolen vehicle.

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; and Acting Chief of Police Robert Maclean of the U.S. Park Police.

According to his plea agreement, at about midnight on January 29, 2013, a man wearing a ski mask pointed a handgun at the driver of a Honda Accord while the driver was sitting in his car in the northeast section of the District of Columbia. The man hit the driver in the back of the head with his gun and took the car.

Shortly afterwards, D.C. police in marked cruisers saw the stolen Honda driving on the streets and tried to stop the car. Janifer, the driver, did not stop, and led the police on a chase into Maryland and onto the Baltimore-Washington Parkway. U.S. Park Police officers took up the pursuit with their lights flashing and sirens activated.

Janifer drove on at about 90 miles an hour in the 45 mile speed zone. As Janifer approached the interchange with Route 410, he went through a red light and returned to the Parkway. Janifer braked hard, causing a Park Police officer to swerve into another lane to avoid a collision. Janifer then accelerated and struck the right rear of the officer’s marked cruiser. Janifer then drove up the ramp to Route 450, while a loaded pistol was thrown out of the Honda. Janifer continued on to westbound Route 450, speeding, fishtailing and weaving over the center line into the oncoming lane. Janifer lost control of the car and finally halted. When an officer positioned his cruiser to prevent the Honda from moving further, Janifer drove the Honda forward to collide with the officer’s car and rip off the front bumper.

Janifer got out of the Honda and fled, shedding his jacket as he ran. Soon after, Janifer was surrounded by police and arrested. The pistol that was thrown from the Honda was recovered. A ski mask similar to the one described by the carjacking victim was found in the pocket of the jacket Janifer had thrown down during the chase.

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

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Shawn Anthony Pollard, age 35, of Annapolis, Maryland, today to 92 months in prison followed by three years of supervised release for conspiring to distribute and possession with intent to distribute cocaine.

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

According to his plea agreement, on February 9 and 17, 2012, a confidential informant bought a total of 8.8 grams of cocaine from Pollard in Annapolis. On February 24, 2012, law enforcement officers executed a search warrant where Pollard lived and seized a loaded handgun, a digital scale containing cocaine residue, .3 grams of cocaine base from Pollard’s jacket and $34,790 which were the proceeds of drug sales. Text messages were also found on Pollard’s phone in which individuals were seeking to buy 1/8 kilogram of cocaine for $4,900 and a half of a kilogram for $18,200.

United States Attorney Rod J. Rosenstein commended the ATF, Annapolis Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Seema Mittal, who prosecuted the case.

Stole Checks from Mailboxes

Greenbelt, Maryland –Paul Essel, age 26, of Laurel, Maryland, pleaded guilty today to conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes.

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

“Stealing mail to commit identity theft and bank fraud not only jeopardizes people’s trust in the U.S. postal system, it threatens the overall financial health of our communities,” said Postal Inspector in Charge Gary Barksdale, U.S. Postal Inspection Service - Washington Division. “With our partner law enforcement agencies, Postal Inspectors will continue to aggressively investigate these crimes.”
According to his plea, from June 14, 2010 to March 11, 2013, Essel and Nelly Dadson opened bank accounts in their own names and in the names of shell corporations that they controlled. Essel and others used counterfeit checks that resembled convenience checks that had been stolen from mailboxes in Montgomery and Prince George’s Counties. The counterfeit checks contained names, addresses and account information that appeared on the convenience checks. Essel deposited these counterfeit checks into accounts controlled by the conspirators and then withdrew funds from the accounts. Essel also provided checks to Dadson with instructions to deposit these counterfeit checks into accounts that she controlled, withdraw the funds and provide the funds to Essel, for which Essel paid Dadson.

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

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

Essel faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. Essel has agreed to pay forfeiture and restitution of at least $418,435.48. U.S. District Judge Paul W. Grimm scheduled his sentencing for May 13, 2014.

Nelly Dadson, age 23, of Baltimore, previously pleaded guilty to her participation in the schemes and is scheduled to be sentenced on January 24, 2014 at 9:30 a.m. Dadson has agreed to pay forfeiture and restitution of at least $251,745.52.

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

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

Correctional Officer Smuggled Drugs for BGF into Baltimore Correctional Facility; BGF Inmate Had Sex with Correctional Officers and Directed Them to Smuggle Contraband into the Prison

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Taryn Kirkland, age 23, of Baltimore to 42 months in prison followed by two years of supervised release, and BGF member and commander Steven Loney, age 24, today to nine years in prison followed by three years of supervised release, for racketeering conspiracy arising from the smuggling of drugs for members of the Black Guerilla Family (BGF) gang inside the Baltimore City Detention Center (BCDC).

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

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, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.

According to their plea agreements, Kirkland worked as a correctional officer at BCDC where BGF member Loney was an inmate. For a time, Loney was a cellmate of Tavon White, the leader of BGF at BCDC. Following his transfer to another section, Loney became the commander of one of two BGF regimes at BCDC, and answered only to Tavon White. Throughout 2011 to 2013, Loney often directed the smuggling of contraband into BCDC by BGF members and associates, especially through the services of correctional officers. Loney became involved in sexual relationships with correctional officers, including Kirkland. Kirkland frequently smuggled contraband, including marijuana and prescription pills, into BCDC on behalf of Loney. Kirkland also helped other correctional officers, such as Jennifer Owens, smuggle drugs into BCDC for other BGF inmates such as Tavon White.

Correctional officer Adrena Rice, age 25, of Baltimore previously pleaded guilty to her participation in the conspiracy and was sentenced on January 8, 2014 to 42 months in prison. BGF leader Tavon White, age 36, also pleaded guilty to the racketeering enterprise and is scheduled to be sentenced on February 20, 2014 at 10:00 a.m. Outside supplier James Yarborough, a/k/a J.Y., age 27, of Baltimore, is scheduled to have a rearraignment tomorrow at 10:00 a.m.

The case arose from the efforts of the Maryland Prison Task Force, a group of local, state and federal law enforcement agencies and prosecutors that met regularly for more than two years and generated recommendations to reform prison procedures. The investigation is continuing.

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.

U.S. Attorney Urges Parents and Teachers to Focus on Drug Prevention in 2014

Baltimore, Maryland – In opening remarks at a regional drug abuse symposium held in Annapolis today, U.S. Attorney Rod J. Rosenstein sounded the alarm about a surge in drug overdose deaths and addiction and called on parents and teachers to “teach every student, from first grade through twelfth grade, about the horrible consequences of using heroin and other debilitating addictive drugs.”

“Heroin is one of the leading causes of death in Maryland, and some victims are teenagers who start by taking oxycodone and similar prescription drugs from their parents’ medicine cabinets,” said Mr. Rosenstein. “In 2012, more Marylanders died of heroin than murder. It is essential to treat drug addiction as a communicable disease that is preventable. Today I call on parents and teachers to help to prevent drug abuse by teaching children about the dangers of drug addiction and how to avoid it.”

Maryland reported 378 heroin overdose deaths in 2012, an increase from 245 deaths in 2011. A total of 761 drug overdose deaths were reported in the state in 2012.

The symposium, hosted by the Baltimore/Washington High Intensity Drug Trafficking Area (“HIDTA”) under the leadership of Executive Director Tom Carr, brings together key law enforcement, prevention and treatment professionals from Maryland, Virginia and the District of Columbia as well as four surrounding HIDTAs: Appalachia, Philadelphia/Camden, New York/New Jersey, and New England. The purpose of the symposium is to raise awareness about the surge in heroin abuse, explain the relationship between heroin overdoses and the abuse of prescription drugs such as opioids, and develop programs and strategies to address the problem.

Further information about heroin and prescription drug abuse is available at www.justice.gov/dea . For more information about the HIDTA program, please visit www.hidta.org.

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Travis Tittus Moore, a/k/a “Short Man,” age 31, of Harwood, Maryland, today to 125 months in prison followed by four years of supervised release for possession with intent to distribute crack and powder cocaine, phencyclidine (PCP), and marijuana. Chief Judge Chasanow also ordered that Moore forfeit the $12,192 seized during the investigation.

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; Calvert County Sheriff Mike Evans; and Anne Arundel County Police Chief Kevin Davis.

According to Moore’s plea agreement, on January 19, 2012, agents overheard a co-conspirator arrange for Moore to meet the co-conspirator on Solomons Island Road in Sunderland, Maryland. Officers saw Moore pull up in his car next to the co-conspirator’s vehicle and followed Moore as he left. As the officers followed Moore they saw him swerve and hit the center line and the officers attempted to perform a traffic stop, but Moore sped off, eventually crashing into a telephone pole. Moore climbed out of the passenger side window carrying a bag and tried to hide under the car. Moore was arrested and officers recovered $2,192 in cash from Moore and $10,000 in cash, 32.1 grams of crack cocaine, .71 grams of PCP, 62.3 grams of powder cocaine, 12.6 grams of marijuana, and a scale with cocaine residue from the bag Moore was carrying.

United States Attorney Rod J. Rosenstein praised the DEA, Calvert County Sheriff’s Office and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Arun G. Rao and Steven E. Swaney, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Richard Brown, age 28, of Lanham, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP).

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 Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to Brown’s plea agreement, from December 2012 through January 2013, Brown conspired with others to distribute PCP. Specifically, on four occasions between December 5, 2012 and January 16, 2013, Brown distributed approximately 401 grams (over 14 ounces) of PCP to a cooperating witness, meeting the witness at the Suitland and Capitol Heights Metro stations to conduct the transactions. On January 31, 2013, the cooperating witness arranged to purchase 16 ounces of PCP from Brown. As Brown arrived at the meeting location, law enforcement agents approached the vehicle to arrest him. Brown was sitting in the front passenger seat of the vehicle holding a 32-ounce bottle that was half full of liquid. The agents saw Brown dump the contents of the bottle onto the passenger floorboard. Agents seized the bottle, which still contained three ounces of PCP, and soaked two rags with the remaining PCP that was spilled onto the floor and preserved the rags as evidence.

Brown admits that he distributed between 700 grams and one kilogram of PCP during the time of the conspiracy.

United States Attorney Rod J. Rosenstein praised the DEA, ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Steven E. Swaney and Arun G. Rao, who prosecuted the case.

Defendant Destroyed Computer Evidence Before Leaving the U.S. to Join the Foreign Terrorist Organization al-Shabaab in Somalia

Baltimore, Maryland – U. S. District Judge J. Frederick Motz sentenced Craig Benedict Baxam, age 26, of Laurel, Maryland, to serve seven years in prison followed by five years of supervised release after Baxam pleaded guilty today to destroying records that might be used in a terrorism investigation.

The guilty plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; John P. Carlin, Acting Assistant Attorney General for National Security; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

“Craig Baxam traveled to Africa in order to join the terrorist organization Al-Shabaab,” said U.S. Attorney Rod J. Rosenstein. “Mr. Baxam was arrested in Kenya before he reached Somalia.”

“The investigation of Mr. Baxam was a collaborative effort with our law enforcement partners both within the United States and overseas,” said Special Agent in Charge Stephen E. Vogt. “The combined efforts of the Joint Terrorism Task Force and other agencies, including the Federal Air Marshal Service, U.S. Customs and Border Protection and the Maryland Transportation Authority Police, resulted in a successful prosecution which highlights the FBI’s highest investigative priority, the prevention of terrorist acts.”

According to his plea agreement, on December 23, 2011, Baxam was arrested in Kenya by members of the Kenyan Anti-Terrorism Police Unit, as he traveled north to southern Somalia to join al-Shabaab, a foreign terrorist organization. On December 27 and 30, 2011, FBI agents interviewed Baxam while he was in custody in Kenya. Baxam told the agents that because of his prior service in the U.S. Army, and specifically his training and experience in military intelligence, he knew of the U.S. government’s capabilities in tracing internet protocol addresses and other investigative techniques. Consequently, before leaving the U.S., he destroyed his personal home computer and threw the remains in a dumpster. He told the agents that he did not want any record left behind, and that he wanted to maintain a low profile. He also said that he purchased a round trip plane ticket to Kenya rather than a one way ticket even though he had no intention of returning to the U.S., in order not to arouse the suspicion of the FBI and U.S. military.

Baxam and the government agreed that if the Court accepted the plea agreement Baxam should be sentenced to seven years in prison followed by five years of supervised release. U.S. District Judge J. Frederick Motz agreed and imposed that sentence immediately following his acceptance of Baxam’s guilty plea.

United States Attorney Rod J. Rosenstein praised the FBI=s Maryland and New York Joint Terrorism Task Forces for their work in the investigation and recognized the Department of Justice Counterterrorism Section and U.S. Attorney=s Office for the Southern District of New York for their assistance in the investigation. Mr. Rosenstein also commended the Federal Air Marshal Service, U.S. Customs and Border Protection and the Maryland Transportation Authority Police for their assistance in the investigation.

Mr. Rosenstein thanked Assistant United States Attorney Harvey E. Eisenberg, who prosecuted the case with assistance from Trial Attorney Robert J. Sander of the Counterterrorism Section of the Department of Justice.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Dontae Cox, age 30, of Windsor Mill, Maryland, today to 12 years in prison followed by four years of supervised release for distribution of crack cocaine. Judge Hollander also ordered Cox to forfeit $29,030 in cash seized during the investigation, as well as a .22 caliber handgun, loaded .22 caliber magazine, one box of 9mm ammunition, two digital scales and two money counters.

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

According to Cox’s plea agreement, on March 26, 2012, a confidential source called Cox who agreed to sell approximately 2 ounces (56 grams) of crack cocaine to the source at the Mondawmin Mall later in day. During their meeting later that day, the source entered a vehicle occupied only by Cox. The source gave Cox $2,400 in cash in exchange for approximately 2 ounces (56 grams) of crack cocaine.

On April 3, 2012, the Baltimore County Police Department executed a search warrant at Cox’s residence and recovered 107.6 grams of crack cocaine and drug paraphernalia, including scales and money counters. During the execution of the search warrant and a vehicle stop earlier in the day, law enforcement recovered a total of $29,030 from Cox, which he admits that he earned from the distribution of narcotics.

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 David I. Sharfstein, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Thomas Scott, age 24, of Baltimore, Maryland, today to 10 years in prison, followed by three years of supervised release, for unlawful possession of an unregistered firearm.

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 Scott=s plea agreement, on February 12, 2013, employees of the Baltimore Police Department Citywatch unit were monitoring “blue light” surveillance cameras in the Central District of Baltimore, when they noticed a Ford Expedition making multiple turns and slowly driving up and down the same streets of downtown for at least 30 minutes. Due to a number of recent robberies following the closing of restaurants and nightclubs, uniformed officers in the area were advised to monitor the vehicle for a possible robbery attempt. Officers found the vehicle cruising slowly in the area and attempted to stop it. The vehicle pulled to the curb and as the officers approached the Expedition, the driver quickly pulled away from the curb. The officers pursued the Expedition, which crashed into a tree several blocks away.

As officers approached the vehicle, they saw the Scott getting out of the passenger side of the car in bare feet. Upon seeing the officers, Scott began running down the street. The driver also got out of the car and ran away. Both Scott and the driver were arrested approximately two blocks away. From the vehicle, officers recovered: a machete and the driver’s license of the driver, on the front driver’s side floor; a loaded 12-gauge shotgun with a sawed off barrel, sitting next to a pair of shoes in the front passenger floor area; one air rifle in the back storage area of the vehicle; and a black and white bandana on the floor of the front seat passenger side of the vehicle.

Officers recovered two shotgun shells when they searched Scott that matched the shell found in the shotgun. The sawed-off shotgun was not registered to Scott in the National Firearms Registration and Transfer Record.

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.

Also Collected Over $26 Million in Asset Forfeitures

Baltimore, Maryland – U.S. Attorney Rod J. Rosenstein announced that financial collections in criminal and civil actions in Fiscal Year (FY) 2013 in the District of Maryland reached $143,297,520.31. The U.S. Department of Justice keeps statistics on a fiscal year basis, closing the books each September 30.

Attorney General Eric Holder announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013,which represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”

“Thanks to the hard work and dedication of employees of the U.S. Attorney’s Office and our partner agencies, funds recovered far exceed the cost of operating the office,” said Maryland U.S. Attorney Rod J. Rosenstein. “We will continue to hold accountable anyone who seeks to profit from illegal activities.”

According to statistics from the Department of Justice, the U.S. Attorney’s Office for the District of Maryland in FY 2013 collected $137,587,803.66 in criminal debts owed to the U.S. government and to federal crime victims, including restitution, criminal fines and felony assessments. The statistics also show that $5,709,716.65 was collected in civil actions handled exclusively by the U.S. Attorney’s Office for the District of Maryland, including judgments in civil cases.

Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $348,391,707.91 in cases pursued jointly with these offices, including cases resolved under the False Claims Act on behalf of victim agencies such as the Department of Health and Human Services and the Environment Protection Agency. These cases include the successful resolutions of United States ex rel. Thakur v. Ranbaxy Laboratories Limited, United States ex rel. Heiden v. Boehringer Ingelheim Pharmaceuticals, Inc., United States ex rel. Momeyer v. Hospice of Arizona, L.L.C., United States ex rel. Ryan v. Trans1, Inc. and an investigation of U.S. Renal Care. Of this amount, $6,200 was collected in criminal actions and $348,385,507.91 was collected in civil actions.

The $143 million collected by the U.S. Attorney’s Office for the District of Maryland in FY 2013 represents approximately eight times the office’s appropriated $17.9 million budget in that same period.

The U.S. Attorneys’ offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The statistics show that the $5,709,716.65 collected in civil actions in Maryland, include affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws, and debts collected on behalf of several federal agencies, including the U.S. Department of Education, Housing and Urban Development, Health and Human Services, Internal Revenue Service, and Small Business Administration.

In the criminal area, of the total $137,587,803.66 collected, $6,155,018.82 was for restitution for federal agencies and for victims other than the federal governments; and $131,432,784.84 was for criminal fines and other criminal collections.

In addition, the U.S. Attorney’s Office for the District of Maryland, working with partner agencies and divisions, collected $26,853,350 in asset forfeiture actions in FY 2012. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

For more information, the Department’s Annual Statistical Reports on prior fiscal years can be found on the internet at: http://www.justice.gov/usao/reading_room/foiamanuals.html.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Tavon McPhaul, age 22, of Baltimore, Maryland today to 145 months in prison, followed by five years of supervised release, for a commercial robbery conspiracy and possession of a firearm in furtherance of a crime of violence.

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

According to his plea agreement, from May 2012 through July 4, 2012, McPhaul, Quindell Gardner and others robbed stores in the Baltimore area. After deciding which place to rob, the conspirators would steal a car to use during the robbery. They also used a gun during the robberies to steal cash and cigarettes.

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

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

Quindell Ryeshawn Gardner, age 22, also of Baltimore, previously pleaded guilty to the same charges and is awaiting sentencing. Gardner and the government have agreed that if the Court accepts his plea agreement, he will be sentenced to between 15 and 25 years in prison.

United States Attorney Rod J. Rosenstein praised the FBI, the Baltimore City and Baltimore County Police Departments and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Benjamin M. Block, who is prosecuting the case.

Smuggled Drugs for BGF Gang Members into Baltimore Correctional Facility; Nine Correctional Officers and Seven other Defendants Have Pleaded Guilty to Date

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Adrena Rice, age 25, of Baltimore today to 42 months in prison followed by two years of supervised release for racketeering conspiracy arising from the smuggling of drugs for members of the Black Guerilla Family (BGF) gang 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; Acting 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.

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, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.

According to her plea, Adrena Rice worked as a correctional officer at BCDC. Rice frequently smuggled contraband, including marijuana and prescription pills, into BCDC on behalf of BGF leader and inmate, Tavon White. Rice also helped other correctional officers, such as Jennifer Owens and Katera Stevenson, smuggle drugs into BCDC.

Eight other correctional officers have pleaded guilty to the racketeering enterprise and await sentencing:

Kimberly Dennis, age 26, of Baltimore
Jasmin Jones, a/k/a/ J.J., age 24, of Baltimore; Taryn Kirkland, age 23, of Baltimore; Katrina Laprade, a/k/a Katrina Lyons, age 31; Vivian Matthews, age 26, of Essex, Maryland; Jennifer Owens, a/k/a/ O and J.O., age 31, of Randallstown; Katera Stevenson, a/k/a KK, age 24, of Baltimore; and
Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie.

Seven other co-defendants have also pleaded guilty: inmates Tavon White, age 36; Steven Loney, age 24; Jermaine McFadden, a/k/a Maine, age 25; and Kenneth Parham, age 24; and outside contraband suppliers Tyrone Thompson, a/k/a Henry, age 36; Tyesha Mayo, age 30 and Teshawn Pinder, age 24. Loney is scheduled to be sentenced on January 14, 2014. Outside supplier James Yarborough, a/k/a J.Y., age 27, of Baltimore, is scheduled to have a rearraignment on January 15, 2014 at 10:00 a.m.

The case arose from the efforts of the Maryland Prison Task Force, a group of local, state and federal law enforcement agencies and prosecutors that met regularly for more than two years and generated recommendations to reform prison procedures. The investigation is continuing.

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 – A federal grand jury returned a superseding indictment today charging Rodney Hubert, a/k/a “Noah,” age 38, of Baltimore and New York, New York, and Charles Hufton, a/k/a “CJ,” age 25, of Cockeysville, Maryland, with conspiring to traffic a minor to engage in commercial sex acts and with sex trafficking of a minor.

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

According to the indictment, from December 2012 through February 22, 2013, Hubert, a registered sex offender and Hufton, a bouncer at a lounge in Baltimore City, recruited and transported females, some of whom were minors, to engage in commercial sex acts for money. The defendants allegedly offered a “finders fee” to female prostitutes if they found additional females to work for them and took provocative or explicit photographs of the females and posted them to websites that host advertisements for commercial sex. According to the indictment, Hubert and Hufton provided a residence in Parkville, Maryland, for the females to host “in-call” prostitution and drove the females to “out-call” prostitution locations. Hubert and Hufton allegedly collected a large percentage of the females’ earnings.

Specifically, the indictment alleges that Hubert recruited a 19 year old associate to work for him as a prostitute beginning in December 2012. Hubert offered the 19 year old a commission to recruit the 16 year old victim to perform prostitution for Hubert. Hubert invited the minor victim to live with him, offered $400 to take provocative photographs of the victim wearing lingerie, and offered her $1,000 to make a pornographic film. According to the indictment, Hubert and Hufton created a pseudonym for the minor victim, “Ashley,” and advertised online that she would prostitute at both the Parkville “in-call” location and at “out-call” locations of prospective clients. Hufton allegedly used his phone to create and post the prostitution advertisements online and drove the prostitutes, including the minor victim, to “out-call” locations and collected a portion of their earnings.

The defendants face 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.

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

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

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

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Gary Allen Mitchell, age 43, of Salisbury, Maryland, today to 13 years in prison followed by three years of supervised release for bank robbery. Judge Motz enhanced Mitchell’s sentence upon find that he is a career offender based on two prior federal bank robbery convictions – one each in Maryland and Delaware.

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; Salisbury Police Chief Barbara Duncan; and Wicomico County State’s Attorney Matthew Maciarello.

According to his plea agreement, on March 21, 2013, Mitchell robbed the PNC bank in the 300 block of Civic Avenue in Salisbury. Mitchell gave the teller a note stating that he was robbing the bank, that he would harm the teller if she did not comply with his demands, and that he had a gun. Mitchell had his hand in his pocket as if he had a gun. Mitchell further advised the teller not to pull the alarm, nor give him any marked money, dye packs or tracking devices. The teller gave Mitchell $4,177, including a tracking device within a stack of $50 bills, as per bank policy. Mitchell became angry that the teller included the tracking device, and threw the stack of money on the counter.

Police officers arrested Mitchell, who was found smoking crack cocaine shortly after the bank robbery, and recovered the proceeds of the robbery. At the time of the robbery, Mitchell was on supervised release for a previous federal bank robbery conviction.

United States Attorney Rod J. Rosenstein praised the FBI, Salisbury Police Department and Wicomico County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bonnie S. Greenberg, who prosecuted the case.

Baltimore, Maryland –Jill Dail, age 59, of Cambridge, Maryland, pleaded guilty today to bank fraud in connection with a scheme in which she and her brother, Jeffrey Dail, fraudulently obtained mortgage loans in the names of family members, using the proceeds for their own benefit.

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

According to her plea agreement, Jill Dail was a loan settlement processor in the mortgage department at a Salisbury, Maryland, bank until she was terminated in June 2007, as part of a reduction in the bank’s workforce. Shortly thereafter, Dail was privately hired by the manager of the bank’s mortgage department to continue to do the same loan processing work she had performed as an employee of the bank. The bank manager paid Dail out of his own funds and gave her full access to the bank premises, computer system and loan files. Dail continued to represent herself as a bank employee in her dealings with title companies and other businesses.

Jill Dail admits that beginning before January 2006 through at least August 2009, she and her brother, Jeffrey Dail, applied for mortgage loans in the names of family members and used the proceeds of the loans for their personal benefit. The Dails forged the signature of family members and bank officials on the loan applications, causing the bank to approve the applications and authorize the distribution of the loan proceeds at settlement. In each instance, the family members whose identities were used on the loan applications, and whose properties were used as collateral for the loans, had no knowledge of the applications or the loans.

Based on the assurances of Jill Dail, with whom the title company had a well-established business relationship, title company employees notarized the signatures of the family members on the settlement documents and disbursed the loan funds at settlement, as directed by Jill Dail, to Jill Dail herself, to Jeffrey Dail, and to their creditors. The balance of loan funds still unpaid is approximately $357,150.

Jill Dail faces a maximum sentence of 30 years in prison and a $250,000 fine. U.S. District Judge J. Frederick Motz scheduled her sentencing for April 3, 2014 at 9:30 a.m.

Jeffrey Scott Dail, age 49, of Cambridge, Maryland, pleaded guilty on December 5, 2013 to his participation in the scheme and faces a maximum sentence of 30 years in prison and a $250,000 fine. Jeffrey Dail is scheduled to be sentenced on February 21, 2014 at 12:00 p.m.

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available 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 the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.

Baltimore, Maryland – Chanell Y. Cole, age 30, of Owings Mills, Maryland, and Yolanda Gail Welch, age 39, of Philadelphia, Pennsylvania, pleaded guilty on Friday, January 3, 2014, to conspiracy to commit bank fraud in connection with a scheme to obtain merchandise using stolen personal identifying information of medical patients.

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, beginning sometime in 2010 through February 2013, Chanell Cole, Yolanda Welch, and others participated in a scheme to defraud various financial institutions by stealing personal identifying information (“P.I.I.”) from medical providers and using the victims’ P.I.I. 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.

According to her plea agreement, from 2008 through approximately May 2010, Chanell Cole was the sole employee of a rheumatologist with offices at Good Samaritan Hospital in Baltimore, and had access to the physician’s patient files, including electronic records. As part of the scheme, Cole used her position to unlawfully obtain the P.I.I. of numerous patients, including names, addresses, and social security numbers, which she provided to a co-conspirator.

In the early stages of the conspiracy, conspirators obtained false identifications in the names of the victims, but bearing the conspirator’s likeness. The fraudulent identifications and the P.I.I. were then used to open credit accounts at the retail stores. Once the accounts were opened, conspirators made purchases at stores in Maryland, Delaware, New Jersey, and New York. Later in the scheme, members of the conspiracy contacted Macy’s, Bloomingdale’s, and/or Nordstrom by telephone to determine if the victims had existing credit accounts with the retailers. Once it was learned that the victim had an existing credit account, members of the conspiracy used the victims’ P.I.I. to make purchases of merchandise over the phone, which were delivered to the residences of friends and family members of Cole, Welch and other conspirators, primarily in the Philadelphia area. After the merchandise was delivered, a conspirator picked up the packages, and paid the recipient a fee for having received the packages. The fee was either cash or a previously determined item of merchandise that was part of the delivery. The merchandise was sold for cash, or returned to the retail stores in exchange for gift cards. The gift cards were sold for cash or provided to friends and family members. Most of the merchandise was provided to Welch, who sold the merchandise to various individuals for approximately 50% of the retail value. Welch provided the cash to a co-conspirator, who paid her a cash fee in return. Welch listed some of the merchandise using her eBay account. Cole assisted in the sale of the merchandise and purchased some of the fraudulently obtained merchandise for her personal use.

During the course of the scheme, Cole provided the P.I.I. of at least 24 patients, which was used in the scheme causing a loss of at least $32,091.91, and Welch sold over $100,000 of fraudulently obtained merchandise. In total, the scheme resulted in the identities of over 100 individual victims being used to fraudulently obtain over $993,000 of merchandise from Macy’s, Bloomingdales, and Nordstrom.

Cole and Welch face a maximum penalty of 30 years in prison for the bank fraud conspiracy. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Cole on April 4, 2014 at 9:00 a.m. and for Welch on April 25, 2014 at 12:00 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 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.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Corey Washington, age 29, of Baltimore, today to 10 years in prison followed by three years of supervised release for robbing a clothing store. Judge Garbis enhanced Washington’s sentence upon finding that Washington is a career offender based on two previous convictions for armed robbery 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 Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Baltimore Police Commissioner Anthony W. Batts; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Gregg L. Bernstein.

According to his plea agreement, early on August 6, 2012, investigators intercepted phone calls between Washington and co-defendant Gerrod Richardson in which Richardson proposed that they rob the clothing store where he worked, which was located in the 5800 block of Baltimore National Pike in Baltimore County. The defendants met later that morning and finalized their plans. Washington entered the store at 9:30 a.m., posing as a customer. Washington walked to the store’s business office and brandished what appeared to be a gun at the store manager, demanding money from the store safe. The manager opened the safe and gave Washington $3,000 in cash and coins. Washington fled.

Later that day, investigators arrested Washington near his home and seized $1,000 in cash. They also seized empty coin wrappers matching those used by the store from Washington’s home and car. Washington admitted to the robbery.

Gerrod Richardson, age 40, of Baltimore, previously pleaded guilty to his participation in the robbery and was sentenced to 28 months in prison.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments, and Baltimore City and County State’s Attorney=s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and James Wallner, who prosecuted the case.

Carjacking Victim Shot and Seriously Injured

Greenbelt, Maryland – Samuel Damien Bynum, age 23, of Washington, D.C., pleaded guilty today to conspiring to use a gun during a carjacking, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George=s County Police Department; Prince George=s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; and Maryland Attorney General Douglas F. Gansler.

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

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

Two alleged co-conspirators have been charged in federal court and another was prosecuted in state court.

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

Bynum faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. U.S. District Judge Paul W. Grimm scheduled sentencing for May 6, 2014 at 11:00 a.m.

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

Greenbelt, Maryland – U.S. District Judge Alexander Williams, Jr. sentenced Brian Hudson, a/k/a “Country,” age 33, of Hyattsville, Maryland, today to 10 years in prison followed by five years of supervised release for possession with intent to distribute cocaine.

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

According to Hudson’s plea agreement, from June 2010 to August 2011, Hudson conspired with Philip Whitehurst and others to distribute cocaine in the Kentland area in Landover, Maryland. Whitehurst maintained a succession of distribution houses near the Kentland area, including a location in an apartment complex on Sheriff Road in Hyattsville, Maryland. During the investigation, law enforcement intercepted numerous calls where Hudson was overheard discussing the sale of cocaine with Whitehurst. During the conspiracy, Hudson also sold 3.5 grams of crack cocaine to a source, who conducted the purchase at the direction of the Prince George’s County Police Department. On February 21, 2012, Prince George’s County police officers and FBI Task Force officers blocked Hudson’s car when he attempted to leave his apartment. Hudson rammed several of the police vehicles with his car and attempted to run away before he was arrested. Hudson admits that he was responsible for the distribution of between five and 15 kilograms of cocaine during the conspiracy.

Philip Whitehurst, a/k/a Lil Phil, age 32, of Bowie, Maryland, was previously sentenced to 294 months in prison for conspiring to distribute and possess with intent to distribute between 2.8 and 8.4 kilograms of crack cocaine. Twenty-one other Kentland co-conspirators have been sentenced to between 27 and 210 months in prison.

United States Attorney Rod J. Rosenstein commended the FBI, DEA, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem, Arun G. Rao and Thomas M. Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – U.S. District Judge Alexander Williams, Jr. sentenced Shaun Orlando Grier, age 46, of Clinton, Maryland, today to 350 months in prison followed by eight years of supervised release for possession with intent to distribute phencyclidine, commonly referred to as PCP; possession with intent to distribute cocaine base, commonly referred to as crack; being a felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking offense. Judge Williams enhanced Grier’s sentence upon finding that he is an armed career criminal based on five previous drug, gun and violent crime offenses.

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; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Chief Mark A. Magaw of the Prince George's County Police Department; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Prince George's County State’s Attorney Angela D. Alsobrooks.

According to evidence presented at his six day trial, on February 27, 2013, after a K-9 dog alerted to a package Grier sent and a search warrant was obtained, U.S. Postal Inspection Service opened the package and found $30,000. A search warrant was obtained for Grier’s residence and agents seized 21.6 grams of PCP; 54.6 grams of crack; numerous Ziploc bags containing a total of .78 grams of cocaine hydrochloride, 0.76 grams of heroin, 0.43 grams of crack, 1.44 grams of heroin and marijuana; drug paraphernalia; a loaded pistol; and a box of bullets. From Grier’s car, agents also seized a back pack containing a bottle which contained 24.2 grams of PCP, a plastic bag containing approximately 164.2 grams of marijuana, a scale, a revolver and a loaded pistol.

United States Attorney Rod J. Rosenstein commended the DEA, U.S. Postal Inspection Service - Washington Division, the Prince George's County Police Department, IRS- Criminal Investigation and Prince George's County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted the case.

Prostituted a 13 Year Old Girl and Gave Her Alcohol and Drugs

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Daniel Burton, a/k/a Snoop, age 30, of Capitol Heights, Maryland today to 262 months in prison followed by lifetime supervised release. Judge Chasanow ordered that upon his release from prison, Burton must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

“This is an egregious case because the ‘prostitute’ was a 13- year old child,” said U.S. Attorney Rod J. Rosenstein. “The lengthy sentence should send a powerful message that sex trafficking of children will not be tolerated in Maryland.”

According to his plea agreement, in March 2008, Burton asked a 13 year old girl walking near her home for her phone number, which she provided. Burton began calling the girl and eventually recruited her to work as a prostitute. Burton drove her to hotels, photographed her in lingerie, and advertised her on Craigslist for sexual services. The girl had sex with many clients that responded to the ads and Burton kept all the money she earned. Burton provided the girl with alcohol, marijuana and ecstasy.

On April 1, 2008, police responded to a complaint at a hotel where they found Burton and the girl in a room. Burton claimed the girl was a relative and police arranged for the girl to return home. Burton subsequently picked the girl up at her home and continued prostituting her.

On April 8, 2008, law enforcement saw a Craigslist ad for the girl’s sexual services and arranged a “date.” Law enforcement arrived at the hotel and arrested Burton who was sitting outside.

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

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

United States Attorney Rod J. Rosenstein commended 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 of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, and Assistant U.S. Attorney Kristi N. O’Malley who prosecuted the case.

Conspiracy Resulted in Launching of an Iranian Earth Observation Satellite; Front Company Created to Conceal Iranian Involvement

Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Nader Modanlo, a/k/a Nader Modanlou, a/k/a Nader Modanlu, age 53, of Potomac, Maryland, a naturalized U.S. citizen born in Iran, today to eight years in prison followed by three years of supervised release for conspiring to illegally provide satellite related services to Iran in violation of the International Emergency Economic Powers Act, two counts of violating the Iran Trade Embargo, money laundering and obstruction of bankruptcy proceedings. Judge Messitte also ordered Modanlo to forfeit $10 million.

As a result of the conspiracy, an Iranian earth observation satellite equipped with a camera was launched into space from Russia on October 27, 2005. The launch was the first-ever Iranian satellite put into orbit.

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); Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service, Mid-Atlantic Field Office.

"Nader Modanlo violated the law by helping Iran launch communications satellites," said U.S. Attorney Rod J. Rosenstein. "The Iran Trade Embargo prohibits Americans from supplying goods, technology and services to Iran directly or indirectly."

“This sentencing is the result of a complex, decade-long HSI investigation that spanned multiple countries and involved close partnership with the U.S. Attorney’s Office for the District of Maryland, the Defense Criminal Investigative Service and the Internal Revenue Service,” said HSI Baltimore Special Agent in Charge William Winter. “This investigation shows that HSI special agents will tenaciously pursue those who attempt to illegally export sensitive technologies and threaten the security of the United States by willfully violating our customs laws.”

“Through the joint efforts of IRS Criminal Investigation with our domestic and international law enforcement partners, Modanlo was brought to justice and convicted,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s sentencing is a reminder that IRS Criminal Investigation is committed to following the money trail across the globe and will not be deterred by the use of front companies and sophisticated financial transactions that hide the real ownership of the proceeds of criminal activity.”

“The sentencing action handed down today should send a clear message that the Defense Criminal Investigative Service (DCIS) and its law enforcement partners will aggressively and tirelessly pursue and prosecute anyone who willfully violates laws that are designed to preserve and protect our nation’s most critical technologies and resources,” said Robert E. Craig, Jr., Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “DCIS, the criminal investigative arm of the Office of Inspector General, Department of Defense (DoD), is committed to pursuing cases involving the illegal transfer of U.S. Defense Department-related technologies around the world and ensuring the safety of America’s warfighters and all Americans.”

The President of the United States issued an Executive Order in 1995 imposing a trade embargo against Iran, after finding that Iran's policies and actions posed a threat to the national security of the United States. Under the embargo, the Department of the Treasury, through the Office of Foreign Assets Control, issued the Iranian Transactions Regulations, which prohibited the export, re-export, sale or supply, directly or indirectly, by a U.S. citizen, of goods, technology or services to Iran or the Government of Iran, without prior governmental authorization.

According to evidence presented at the six week trial, Modanlo was a mechanical engineer who received science and engineering degrees from George Washington University. Modanlo represented that he was an internationally-recognized expert on strategic policy and finances affecting the space-based telecommunications industry, and that he managed space and science programs for the Department of Defense, NASA and the industry.

Trial evidence showed that from January 2000 through November 27, 2007, Modanlo and others concocted an elaborate scheme to evade the Iran trade embargo to conceal Iranian involvement in prohibited activities and transactions. Beginning in 1992, Modanlo was the principal owner, chairman and president of Final Analysis, Inc. (FAI) in Maryland. Beginning in 1994, FAI contracted with POLYOT, an aerospace enterprise company owned by the government of the Russian Federation, to launch FAI telecommunications satellites. Between 1995 through 2000, FAI and POLYOT launched a satellite purchased by FAI, and designed, constructed and launched a second satellite, both from Plesetsk, Russia. Modanlo and other FAI personnel met with POLYOT officials as part of that relationship. As required by law, Modanlo obtained U.S. export licenses in order to export and launch the telecommunications satellites and other equipment from Russia.

In November 2001, Modanlo established New York Satellite Industries, LLC, (NYSI) after creditors filed a petition to place FAI into involuntary bankruptcy. NYSI purchased FAI's assets and Modanlo served as chairman and managing member of NYSI, using his home address as NYSI's business address.

Beginning in 2000, Modanlo brokered an agreement between POLYOT and Iran to construct and launch a satellite. Between the summer of 2001 and December 2001, Modanlo engaged in numerous meetings with POLYOT officials to broker Iran=s satellite program. In December 2001, several Iranian officials, including Sirous Naseri, a former Iranian Amabassador to Switzerland, went to Switzerland to express interest in "investing" in NYSI by interposing a Swiss company, because "the U.S. ha[d] sanctions in place against Iran," and direct investment would therefore be "problematic." Naseri, Reza Heidari, Mohammad Modares and Modanlo then went to Switzerland in April 2002 to work out the details of forming Prospect Telecom in order to conceal Iranian participation as an investor/lender in Modanlo's satellite telecommunications activities. Between April and June 2002, Heidari, Mohammad Modares and Abdol Mehrdad established Prospect Telecom and opened a bank account in Switzerland in the name of Prospect Telecom.

Heidari, Modares, and Mehrdad then caused $10 million to be wired into the Prospect Telecom bank account from numerous foreign accounts, including from China and Dubai, and then almost immediately wired the $10 million to Modanlo's NYSI account in Bowie, Maryland, in consideration for Modanlo’s assistance to Iran and the Iranians in brokering the satellite agreement with Russia, and for NYSI providing telecommunications services in support of that agreement. Modanlo also had agreed that NYSI would assist in obtaining telecommunications service provider licenses for the owners of Prospect Telecom and for the benefit of the Islamic Republic of Iran.

In October 2005, as a result of the efforts of Modanlo and his conspirators, POLYOT launched Iran=s first-ever satellite, a remote sensing and telecommunications satellite from Russia.

From 2005 to 2007, Modanlo made false statements and concealed information about the creation and ownership of Prospect Telecom during bankruptcy proceedings, including that Modanlo and co-conspirators had arranged for the formation of Prospect telecom to conceal Iranian involvement.

United States Attorney Rod J. Rosenstein praised the HSI Baltimore, DCIS and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Stuart Berman, who prosecuted the case.

Accepted Payment from Drug Dealer for Converting Proceeds from Small Bills to $100 Bills

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Sabrina Nicole Fitts, age 29, of Baltimore, Maryland, today to one 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 a drug dealer for converting the drug proceeds.

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 Fitts’ plea agreement, 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, Fitts converted the proceeds from the sale of illegal drugs from small denomination bills (i.e. $5, $10 and $20 bills) to $100 bills, on behalf of the leader of drug trafficking organization. The amounts involved in each transaction ranged from $50,000 to $100,000 and Fitts converted the bills without filing or having anyone else at the bank file a currency transaction report or suspicious activity report, as she was required by law to do. For example, on April 18, 2013, the drug dealer called Fitts to arrange to convert $100,000, gave Fitts $100,000 in small denomination bills in a bag or backpack, and returned later the same day to retrieve the $100 bills. On each occasion, the drug dealer paid Fitts one percent of the amount involved as her fee. Fitts admitted she received $5,000 from the drug dealer.

As head teller at the bank, Fitts was familiar with the currency transaction reporting requirements, and in fact had attended anti-money laundering training annually since at least 2009.

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.

His Ex-Wife Pleads Guilty to Distribution of Child Pornography

Baltimore, Maryland – David Ralph Fisher, age 43, of Baltimore, pleaded guilty today to producing child pornography and attempting to coerce and entice a minor to engage in sexually explicit activity. His ex-wife, Lori Fisher, age 46, of St. Cloud, Florida, pleaded guilty to distribution of child pornography.

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

According to their plea agreements, after repeated requests from David Fisher, Lori Fisher produced multiple sexually explicit photographs of two minor females, on at least two occasions between August and December of 2008. Lori Fisher took the photographs with her cell phone, then sent the images electronically to David Fisher via text message.

On November 4, 2012, the Baltimore Police Department (BPD) received information that images and videos of child pornography were observed on David Fisher’s external hard drive, located at his residence. The external hard drive was provided to the BPD and examined. Multiple files depicting minors engaged in sexually explicit conduct were found. A search warrant was subsequently executed at David Fisher’s residence on November 20, 2012, and computers, cell phones and other items were seized and forensically examined. Sexually explicit email messages with attachments were recovered in which Fisher solicited child pornography from other individuals, and shared child pornography from his collection. Also, in February 2013, law enforcement confirmed that some of the sexually explicit images found on David’s computer and cell phone were images of the two minor girls that Lori Fisher had photographed and sent to David. In all, over 2200 images and 100 videos of minors engaged in sexually explicit conduct, including prepubescent minors, were recovered.

On March 14, 2013, a BPD detective working in an undercover capacity contacted David Fisher on his Facebook profile posing as a 14 year old female. Between March 14 and April 11, 2013, David Fisher communicated with the undercover detective through Facebook and email. For many of these communications, Fisher was using a computer at a public library because his computer was seized during the search of his residence in November 2012. David Fisher asked the undercover detective to send him sexually explicit photographs and sent the undercover detective sexually explicit photographs of himself. In addition, Fisher gave the undercover detective his cell phone number and proposed meeting to engage in sexual activity. A meeting was arranged for April 11, 2013. Fisher was arrested when he arrived at the meeting location at the appointed time.

As part of their plea agreements, David and Lori Fisher will be required to register as a sex offender in the place where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).

David Fisher faces a minimum mandatory sentence of 15 years and a maximum of 30 years in prison for production of child pornography, and a minimum of 10 years in prison and a maximum of life in prison for coercing and enticing a minor to engage in sexually explicit conduct. Lori Fisher faces a minimum of five years and a maximum of 20 years in prison for distribution of child pornography. U.S. District Judge James K. Bredar has scheduled sentencing for David Fisher on April 3, 2014 at 3:00 p.m. and for Lori Fisher on June 11, 2014 at 9:30 a.m.

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

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

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Hector Daniel Villanueva-Cortes, a/k/a “Muertito,” age 23, a Honduran national residing in Hyattsville, Maryland, today to 18 months in prison, followed by one year of supervised release, for illegal re-entry after having been deported from the United States. Judge Titus enhanced Villanueva-Cortes’ sentence upon finding that he was a member of the Mara Salvatruchas gang, commonly known as MS-13.

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 Mark A. Magaw of the Prince George’s County Police Department.

According to Villanueva-Cortes’ plea agreement and other court documents, Villanueva-Cortes initially entered the United States illegally in June 2004, and was deported back to Honduras in April 2010. He illegally re-entered the United States sometime before May 2013, when he was found by HSI special agents and Prince George’s County Police Officers at a residence in Hyattsville in the company of a known MS-13 gang member. A search of the residence revealed evidence of gang activity. Additional investigation revealed that Villanueva-Cortes is a high ranking member of the Sailors Lokotes Westside Salvatruchas (SLWS), a clique of the MS-13 gang located in Southern Maryland. Prior to May 20, 2013, Prince George’s County Police officers had encountered Villanueva-Cortes on several occasions with other known MS-13 members.

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