District of Maryland

Directed Persons to Steal Merchandise from Retail Stores and Exchange the Stolen Items for Gift Cards

Baltimore, Maryland – John Tadros, age 45, of Baltimore, pleaded guilty today to wire fraud conspiracy and money laundering.

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

Tadros owned Busy Bees Convenience Mart located at 335 South Monroe Street, and J&J’s Bar and Liquor located at 1801 Ramsay Street, both in Baltimore. According to his plea agreement, from January 2009 to February 2013, Tadros directed Melissa Perry, Deanna Lynch, Mohamed Al-Omeri and others, known as boosters, to steal merchandise from large retail stores throughout Baltimore, Anne Arundel, Prince George’s, Howard and Harford Counties in Maryland, as well as Virginia, Pennsylvania and Delaware. The boosters then returned the stolen items in exchange for store gift cards. They used modified Maryland driver’s licenses that contained the personal identifier information of actual persons, without those persons’ knowledge, when returning the stolen items without a receipt.

Tadros bought the fraudulently obtained gift cards from the boosters for 50% of the card’s value. Tadros told the boosters to target specific stores at specific locations, and advised them of the best days to steal merchandise and the manner by which they modified their Maryland driver’s licenses. Tadros also collected the welfare benefit debit cards of the boosters which he held as collateral if he deemed that the boosters owed him money, and returned the benefit cards to the boosters for 50% of the card’s value. Tadros used the gift cards to purchase personal home goods, and supplies for his businesses and rental properties.

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

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

Tadros faces a maximum sentence of 20 years in prison and a $250,000 fine for the wire fraud conspiracy and a $500,000 fine for money laundering. U.S. District Judge George L. Russell III scheduled his sentencing for April 14, 2014 at 9:30 a.m.

Melissa Perry, age 34; Deanna Lynch, age 44; and Mohamed Al-Omeri, age 39, previously pleaded guilty to their participation in the scheme and scheduled to be sentenced on April 3, March 7 and April 11, 2014, respectively.

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

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

To Date, Four Retailers Have Pleaded Guilty to Food Stamp Fraud

Baltimore, Maryland – Dae Cho, age 66, and her son Hyung Cho, age 40, both of Catonsville, Maryland, and citizens of Korea who are illegally present in the United States, pleaded guilty today to food stamp and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash.

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

Dae Cho co-owned K&S Market, a convenience store located at 3910 West Belvedere Avenue in Baltimore. Dae and Hyung Cho operated the store. According to their plea agreements and court documents, the store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.

Dae Cho completed the required government form in March of 2004 to become an authorized retailer in the program. Dae and Hyung received training and instruction regarding the requirements of the food stamp program, including that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from June 2011 through May 2013, Dae and Hyung Cho exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for themselves, using the cash to pay rent and other bills. Dae Cho has estimated that about $25,000 to $30,000 worth of food stamp benefits were exchanged in this manner per month and that this occurred approximately 50 times a day.

As a result of these unlawful cash transactions, Dae and Hyung Cho obtained more than $1,400,000 in payments for food sales that never occurred.

The defendants face a maximum sentence of 20 years in prison. U.S. District Judge George L. Russell, III scheduled their sentencing for February 21, 2014, at 10:00 a.m. The defendants have agreed to the entry of an order to forfeit $1,400,000. The defendants have further agreed not to object to any removal proceedings that may be brought to remove them from the United States upon completion of their sentence.

Amara Cisse, age 50, who owned Simbo Food Mart, located at 2103 West Pratt Street in Baltimore, and his wife Fanta Keita, age 45, who worked at the store, both of Windsor Mill, Maryland, pleaded guilty on December 3, 2013 to food stamp fraud in connection with a similar scheme to illegally redeem food stamp benefits in exchange for cash. They are scheduled to be sentenced on March 6, 2014, at 3:00 p.m.

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

IRS Paid More Than $12 Million in “Refunds” to Illegal Alien Previously Convicted of Fraud

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Makushamari Gozo, age 41, a native of Zimbabwe residing in Baltimore, Maryland, to 11 years in prison, followed by five years of supervised release, for filing claims for more than $23 million in fraudulent alternative fuel tax credits and refunds and personal tax refunds, as well as engaging in schemes to fraudulently obtain more than $3 million in loans from credit unions. Judge Blake also ordered Gozo to pay restitution totaling $202,667.23.

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

Gozo previously was convicted of mortgage fraud in 2004 and sentenced to serve 57 months in federal prison. He was determined to be a deportable alien, but was not deported because of issues related to his travel documents.

“Makushamari Gozo was convicted of mortgage fraud in 2004, sentenced to serve 57 months in federal prison, and escaped deportation only because of a technicality,” said U.S. Attorney Rod J. Rosenstein. “He responded by filing fabricated tax returns claiming refunds, which caused the IRS to issue checks for more than $12 million in fraudulent refunds. Mr. Gozo also attempted to obtain over $3 million in fraudulent loans from credit unions.”

According to evidence presented at his one week trial, beginning in 2010, Gozo used several entities he controlled to file fraudulent claims for tax refunds. Gozo filed individual income tax returns falsely claiming that from 2007 to 2011, he earned wages from two of his companies and was entitled to tax refunds totaling more the $417,000. In addition, Gozo filed tax returns falsely claiming that a third company had sustained losses in 2007 through 2009 which entitled Gozo to more than $76,000 in tax refunds. From October 31, 2011 to February 17, 2012, Gozo also filed false excise tax returns claiming that a fourth company was entitled to approximately $22,657,137 in alternative fuel tax refunds and credits based on having purchased or used over 39 million gallons of alternative fuel. In fact, the entities were all sham businesses that existed in name only.

Trial evidence also showed that between July and September 2010, Gozo defrauded several credit unions to obtain fraudulent automobile and business loans. Gozo submitted four loan applications to the credit unions in which he misrepresented his income and employment in order to buy luxury automobiles that Gozo never actually purchased. Gozo also submitted a fraudulent loan application for a $3 million business loan in the name of another one of his sham companies. On the business loan application, Gozo made fraudulent statements about the financial and business affairs of the company in order to make it appear financially successful, and submitted several false corporate tax returns claiming that the company controlled millions of dollars in assets.

United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant United States Attorneys David I. Sharfstein and Peter M. Nothstein, who prosecuted the case.

Greenbelt, Maryland – Josue Balbino Ruiz Reyes, age 19, of Hyattsville, Maryland pleaded guilty today to involuntary manslaughter in connection with the death of a passenger resulting from a car collision.

The guilty plea 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 his plea agreement, on August 22, 2013 at about 5:30 a.m., Ruiz Reyes drove with a passenger in his SUV southbound on the Baltimore-Washington Parkway from the Glen Burnie area. He had been drinking alcohol earlier that morning and the previous night. Near the route 197 exit, he lost control of his SUV and drove onto the shoulder of the highway. His SUV rolled over completely and landed upright, breaking all the windows and ejecting the passenger. Ruiz Reyes drove away.

Numerous other motorists called 911. The U.S. Park Police found Ruiz Reyes driving his badly damaged vehicle on the ramp from the Parkway to Powder Mill Road, about four miles south of the location of the crash. Four police cruisers forced the vehicle to a stop. The right side of the SUV was completely smashed. The passenger side door would not open. Ruiz Reyes told the police he had two beers earlier. He was shirtless, and had minor bruises and cuts on his body. Ruiz Reyes was taken to the hospital where a blood test was given. His blood-alcohol level was .10 grams of alcohol per 100 mL of blood.

Meanwhile, U.S. Park Police officers at the scene of the roll-over found the passenger’s body lying in the grass, where her body had been ejected from the SUV. She was pronounced dead. Ruiz Reyes told police that the passenger had gotten out of the car on the side of the road voluntarily. His Maryland driving privileges were suspended.

Ruiz Reyes faces a maximum sentence of eight years in prison followed by three years of supervised release and a fine of $250,000. U.S. District Judge Roger W. Titus scheduled sentencing for April 7, 2014 at 4:00 p.m.

United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis R. Weisman, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Bozhidar Lazarov, age 40, a Bulgarian national residing in Chicago, Illinois, today to 39 months in prison, followed by three years of supervised release, for conspiring to commit bank fraud and aggravated identity theft in connection with an ATM skimming scheme. Judge Blake also ordered Lazarov to pay restitution of $54,883.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his guilty plea, from at least May through November 2010, Lazarov and others illegally obtained debit and credit card account numbers by placing ATM skimmers over the slot where customers inserted their debit or credit cards, thereby capturing the account information as the card passed through the skimmer. The conspirators used a miniature camera to capture personal identification numbers (PINs) as the customers entered them on the keypad. Lazarov and others then encoded the magnetic strips of plastic cards, such as gift cards, with the compromised account numbers and information which they used, along with the corresponding PIN numbers, to make unauthorized cash withdrawals directly from the victims’ bank accounts.
For example, on May 29 and 30, 2010, co-conspirator Stoycho Lazarov, who is Bozhidar’s brother, installed an ATM skimmer on bank ATMs in Westminster and Finksburg, Maryland, which Bozhidar Lazarov removed a few hours later. Bozhidar Lazarov and others used the stolen debit card numbers and PINs to withdraw at least $30,536 from 20 victims’ accounts. On October 17, 2010, Bozhidar Lazarov and others used a skimming device at a bank ATM in Ellicott City, Maryland, subsequently using the stolen account information and PINs to illegally withdraw at least $24,347 from at least 19 victims’ accounts.
Bozhidar Lazarov obtained at least $54,883 from 39 individual bank customers and two banks during his participation in the scheme.
Stoycho Ivanov Lazarov, age 41, a Bulgarian citizen residing in Millersville, Maryland, previously pleaded guilty to the same charges, and was sentenced to four years in prison and ordered to pay restitution of $185,512.
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 praised Assistant U.S. Attorneys Kristi N. O’Malley and Tamera Fine, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Franklin Roosevelt Coit, a/k/a “Frank,” and “Nitty,” age 35, of Baltimore, today to 140 months in prison, followed by five years of supervised release, for sex trafficking of a minor, in connection with a prostitution business he ran with co-defendant Jamar Simmons. Judge Russell ordered that upon his release from prison, Coit 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; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

According to their plea agreements, Coit and Simmons operated a brothel in Baltimore City on Madison Avenue. Simmons was a Baltimore City firefighter at the time of the offense. They also rented hotel rooms and a residence in Maryland for prostitution. Coit and Simmons falsely advertised online for exotic dancing and an escort service to recruit females, including at least one minor female, from Maryland and other states. They arranged to transport the women from Delaware, Florida, New York, Pennsylvania, Texas, South Dakota and Virginia to Maryland to engage in prostitution. Many of the women they recruited were in financial distress, had no place to live, or were otherwise vulnerable.

Coit and Simmons took sexually explicit pictures of the females they recruited, and posted the pictures on the escort section of an online advertising website along with phone numbers to call to schedule a “date,” or sex. Simmons set the pricing for the sex acts, and instructed the females on how to arrange “dates” over the phone and how to avoid detection by law enforcement. Coit and Simmons shared the cash proceeds of the prostitution business, and used a gun to protect the business and its cash proceeds.

Simmons pleaded guilty to the same charge. Judge Russell III sentenced Jamar Marvin Simmons, a/k/a “Mar,” age 31, of Baltimore, on December 13, 2013 to 15 years in prison.

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

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments and Baltimore City State’s Attorney’s Office for their work in the investigation, and Baltimore City Assistant State's Attorney Aaliyah Muhammad who assisted in the prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.

Indictments Allege Gangs Involved in Five Murders, Shootings and Bank Robberies

Baltimore, Maryland - A federal grand jury has indicted 21 individuals in two separate indictments on racketeering conspiracy and drug charges related to their alleged drug dealing and violence in the Cherry Hill section of Baltimore. In a third indictment, an additional five defendants are charged in a drug conspiracy in the same area. The indictments were returned on December 4, and December 11, 2013, and unsealed today upon the arrest of 11 defendants. Nine of the defendants were already detained on state charges.

The indictments were 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

“The defendants allegedly belong to rival drug gangs that have terrorized Cherry Hill, resulting in five murders as well as numerous shootings and robberies,” said U.S. Attorney Rod J. Rosenstein. “For other criminals in Cherry Hill who were not arrested today, these indictments send a clear message to stop the violence or be prepared to spend the rest of your life in a federal prison far from home.”

Fifteen individuals are charged in a racketeering conspiracy as well as in a conspiracy to distribute heroin, powder and crack cocaine, and oxycodone as members of the “UDH” organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” On July 21, 2013, one of the alleged members of UDH, Gregory Sykes-Bey, posted the following message to Facebook: “They say ur nobody until somebody kills u but where im from ur nobody until u kill somebody.”

In the second indictment, six individuals are charged in a separate racketeering conspiracy as members of the Little Spelman organization, which operates in the “Down the Hill,” section of Cherry Hill, as well as a conspiracy to distribute heroin, powder and crack cocaine and marijuana.

According to the indictments, the members of UDH and Little Spelman were part of a racketeering enterprise and protected their power, territory and profits through the use of violence, threats of violence, intimidation, robbery, narcotics trafficking and obstruction of justice. Specifically, the indictments allege that beginning in 2011, UDH and Little Spelman were involved in a dispute that resulted in three murders and the shootings of two others. In addition, the indictments allege that members of UDH committed two bank robberies.

Five other defendants are charged with conspiracy to distribute crack cocaine and heroin, and the UDH indictment alleges that UDH was in a long-running dispute with an organization known as Coppin Court that is involved in criminal activity in the ‘Down the Hill’ section of Cherry Hill.

All 26 defendants face a maximum sentence of life in prison.

The defendants arrested today are expected to have an initial appearance in U.S. District Court in Baltimore. Initial appearances for those defendants detained on state charges have not yet been scheduled.

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

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Joshua Kaul and Brooke Carey, who are prosecuting the case.

See Attachment A for list of defendants.

ATTACHMENT A
Cherry Hill Defendants

UDH Indictment:

Steven Jackson, a/k/a Cutty, age 23, of Baltimore; Eugene Anderson, a/k/a Petey, age 36, of Baltimore; Asim Benns, a/k/a Seem, age 30, of Baltimore; Ronald Hall, a/k/a JJ, age 37, of Baltimore; Delano Johnson, a/k/a Lano, age 36, of Baltimore; Tony Johnson, a/k/a Tony Mack, age 29, of Baltimore; Rashaud Kearney, a/k/a TT, age 20, of Baltimore; Russell Lumpkins, a/k/a Mr. Man, age 26, of Baltimore; Demond Pinkney, a/k/a Cal, age 28, of Baltimore; Clarence Shipley, a/k/a Mook, age 26, of Baltimore; Gregory Sykes-Bey, age 20, of Baltimore; Bryan Turner, a/k/a BT, age 28, of Baltimore; and
Antione White, a/k/a Twan, age 25, of Baltimore.

Little Spelman Indictment:

Davon Martin, a/k/a Ack and Black, age 25, of Baltimore; Brian Parker, a/k/a ES, age 35, of Baltimore; Shaquan Robinson, a/k/a Quanny, age 22, of Baltimore; and
Richard Williams, a/k/a Wis, age 22, of Baltimore.

Third Indictment:

Danna Fraser, a/k/a Stroke, age 25, of Baltimore; Ernest Thomas, a/k/a EJ, age 25, of Baltimore; and
Melvin Truesdale, a/k/a MJ, age 20, of Baltimore.

Total of 22 Defendants Prosecuted in Federal Conspiracy Case Targeting Kentland Neighborhood

Greenbelt, Maryland – U.S. District Judge Alexander Williams, Jr. sentenced Philip Whitehurst, a/k/a Lil Phil, age 32, of Bowie, Maryland, today to 294 months in prison, followed by five years of supervised release, for conspiring to distribute and possess with intent to distribute between 2.8 and 8.4 kilograms of crack 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.

“Federal authorities worked with the Prince George’s County Police Department and State’s Attorney’s Office to dismantle a criminal organization that dealt drugs and despair in the Kentland area of Landover, Maryland,” said U.S. Attorney Rod J. Rosenstein. “This sort of coordinated effort contributes to the crime reduction in the county.”

According to court documents, from June 2010 to August 2011, Whitehurst organized and led a large scale cocaine distribution conspiracy that operated 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. Whitehurst was responsible for the distribution of between 2.4 and 8.4 kilograms of cocaine base during the conspiracy.

On September 28, 2011, FBI agents executed a search warrant at Whitehurst’s residence and seized a loaded semi-automatic firearm.

Co-conspirator Antonio Marshall, age 36, of College Park, Maryland, was sentenced to 78 months in prison this morning. Last week, Chris Vondell Rainey, age 43, was sentenced to nine years in prison, Jason Scrivner, age 34, was sentenced to 78 months in prison; and Kenneth Smith, age 30, was sentenced to 30 months in prison, for their participation in the drug conspiracy. Other defendants who participated in the drug conspiracy and have been sentenced include: Xavier D. Eccleston, age 36, of Bethesda, Maryland, who was sentenced to 210 months in prison after being convicted following an eight day trial; Shawn R. Lomax, age 35, of Capitol Heights, Maryland, who was sentenced to 148 months in prison; Demeco Savoy, age 34, of Laurel, and John Holt, age 32, of Temple Hills, Maryland, who were each sentenced to 10 years in prison; Barnell Banks, age 34, of Landover, Maryland, who was sentenced to eight years in prison; Markus J. Humphries, age 34, of Washington, D.C., and Rodney Jennings, age 41, of Suitland, Maryland, who were each sentenced to 70 months in prison; and Robert Sears, age 34, of Suitland, who was sentenced to five years in prison. Seven additional defendants have been convicted and are awaiting sentencing.

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 Attorney David I. Salem, Arun Rao and Thomas Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Client Also Pleads Guilty to Immigration Fraud

Baltimore, Maryland – Attorney Kiran Dewan, age 59, of Woodbine, Maryland pleaded guilty late on December 13, 2013, to bribery, and one of his clients, Mohammad Khan, age 58, of Baltimore, also pleaded guilty to immigration fraud.

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

“Immigration attorneys hold positions of public trust and it is disturbing that anyone would defraud the very system in which they work for their own personal profit,” said HSI Special Agent in Charge in Baltimore William Winter. “Document and benefit fraud poses a significant vulnerability to our national security and exploits America's legal immigration system. Whether you are trying to illegally obtain an immigration benefit or facilitating the fraud, know this – you will be found, arrested and held accountable for your actions.”

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

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

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

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

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

Dewan faces a maximum sentence of 15 years in prison and a $250,000 fine for bribery. U.S. District Judge William D. Quarles, Jr. scheduled Dewan’s sentencing for March 6, 2014, at 9:30 a.m.

Khan, a citizen of Pakistan living in Baltimore, who operated Pizza City in Brooklyn Park, Maryland, faces a maximum sentence of 10 years in prison and a $250,000 fine for immigration fraud. Judge Quarles scheduled Khan’s sentencing for February 25, 2014, at 1:00 p.m.

Amjad Israr, age 46, a Pakistani citizen living in Cheshire, Connecticut, who operated many convenience stores in Connecticut, pleaded guilty to conspiring to bribe an immigration official in order to obtain lawful permanent residence (green card) and employment authorization documents. Judge Quarles sentenced Israr to 15 months in prison on September 20, 2013.

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

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Gerod Simmons, age 30, of Lancaster, South Carolina, today to 125 months in prison followed by three years of supervised release for being a felon in possession of a firearm, and witness tampering.

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 Teresa Chambers of the U.S. Park Police.

According to his plea agreement, on September 1, 2012, Simmons was arrested in Maryland after police found a loaded .40 caliber pistol under the front passenger seat of a car where Simmons was sitting. Simmons was charged with being a felon in possession of a gun. The car was registered to his mother in Lancaster, South Carolina. The gun had been purchased by his co-defendant, Canyon Nelson, in Lancaster in 2011. Simmons had four previous drug convictions and was prohibited from possessing a gun.

Simmons was detained after his arrest and called Nelson almost every day during September and October, 2012. During a call on September 7, 2012, Simmons suggested that Nelson should say that she had placed the gun under the seat without his knowledge. In that phone call and two subsequent letters mailed to Nelson’s home, Simmons told Nelson to say that they had driven around town running errands on the morning of August 31, 2012, and that she placed the gun under the passenger seat without his knowledge, after he got out of the car at the bank where she cashed her paycheck.

On November 7, 2012, Nelson falsely testified before the grand jury that on August 31, 2012, she and Simmons had driven around town running errands. Nelson said she had paid her light bill and cashed her pay check at the bank. Investigation showed that the power company had no record of any payments made by Nelson or Simmons the morning of August 31, 2012. Video recordings of the bank lobby reveal that neither Nelson nor Simmons went into the building that morning.

Canyon Nelson, age 25, of Lancaster, South Carolina, previously pleaded guilty to making a false statement to the grand jury and was sentenced to five months in prison followed by three years of supervised release.

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 R. Weisman, and Special Assistant U.S. Attorney Jonathan Ophardt of the U.S. Justice Department, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jamar Marvin Simmons, a/k/a “Mar,” age 31, of Baltimore, today to 15 years in prison followed by five years of supervised release for sex trafficking of a minor, in connection with a prostitution business he ran with co-defendant Franklin Coit. Simmons was a Baltimore City firefighter at the time of the offense. Judge Russell ordered that upon his release from prison, Simmons 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; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

According to their plea agreements, Simmons and Coit operated a brothel in Baltimore City on Madison Avenue. They also rented hotel rooms and a residence in Maryland for prostitution. Simmons and Coit falsely advertised online for exotic dancing and an escort service to recruit females, including at least one minor female, from Maryland and other states. They arranged to transport the women from Delaware, Florida, New York, Pennsylvania, Texas, South Dakota and Virginia to Maryland to engage in prostitution. Many of the women recruited by Simmons and Coit were in financial distress, had no place to live, or were otherwise vulnerable.

Simmons and Coit took sexually explicit pictures of the females they recruited, and posted the pictures on the escort section of an online advertising website along with phone numbers to call to schedule a “date,” or sex. Simmons set the pricing for the sex acts, and instructed the females on how to arrange “dates” over the phone and how to avoid detection by law enforcement. Simmons and Coit shared the cash proceeds of the prostitution business, and used a gun to protect the business and its cash proceeds.

Franklin Roosevelt Coit, a/k/a “Frank,” and “Nitty,” age 35, of Baltimore, pleaded guilty to the same charge and is scheduled to be sentenced on December 17, 2013 at 2:30 p.m.

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

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

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments and Baltimore City State’s Attorney’s Office for their work in the investigation, and Baltimore City Assistant State's Attorney Aaliyah Muhammad who assisted in the prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Kai Holt, age 38, of Waldorf, Maryland, today to 88 months in prison followed by five years of supervised release for conspiring to commit, and committing, the armed robbery of an armored vehicle, and conspiracy to possess, and possession of, a firearm in connection with 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; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; and Montgomery County State’s Attorney John McCarthy.

According to his plea agreement, in June 2012, Holt and co-defendants Carmen Camacho and John Williams began planning the robbery of an armored vehicle outside the Navy Federal Credit Union located at 12248 Rockville Pike in Rockville, Maryland. On June 12, Williams told Holt that the robbery would take place the next day.

On June 13, Holt armed himself with a loaded .45 caliber semiautomatic pistol and met with Williams and two other co-defendants, Marcus Brooks and Deangelo Williams. They traveled in two vehicles to the Navy Federal Credit Union. The conspirators drove around the area planning escape routes, and parked nearby waiting for the armored car to arrive. At 11:20 a.m., John Williams called Holt and told him to proceed with the robbery. Holt and Brooks walked towards the credit union where a courier was unloading cash from the back of the van for delivery to the credit union. Holt drew his pistol. The courier threw the bag of money on the ground and ran away. Brooks picked up the bag, which contained $220,000, and he and Holt ran back to their vehicles and fled. The co-conspirators traveled back to Prince George’s County where they divided the proceeds of the robbery.

Carmen Camacho, age 31, of Fort Washington, Maryland, pleaded guilty to his role in the robbery and is awaiting sentencing. John Bernard Williams, age 48, and Deangelo Williams, age 20, both of Fort Washington, and Marcus Brooks, age 21, of Lanham, Maryland, also pleaded guilty. John Williams was sentenced to 112 months in prison, Deangelo Williams was sentenced to three years in prison, and Brooks was sentenced to 61 months in prison.

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

Criminal Proceeds Laundered Through Eastern Europe

Baltimore, Maryland - A federal grand jury has indicted 11 individuals on charges related to a conspiracy to traffic over $6.6 million in contraband cigarettes. The indictment was returned on December 3, 2013, and unsealed today upon the arrest of eight defendants and the execution of twelve search warrants.

Charged in the indictment are:

Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 41, of Owings Mills, Maryland; Zarakh Yelizarov, age 51, of Baltimore, Maryland; Salim Yusufov, age 43, of Baltimore; Artur Zakharyan, age 52, of Owings Mills; Ilgar Rakhamimov, age 39, of Owings Mills; Timur Yusufov, age 35, of Baltimore; Nikolay Zakharyan, age 23, of Owings Mills; Adam Azerman, age 59, of Pikesville; Shamil Novakhov, age 58, of Brooklyn, New York; Yuliya Rakhamimov, age 33, of Owings Mills; and
Ruslan Ykiew, age 38, of Brooklyn, New York.

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

“The indictment alleges that the defendants participated in a criminal conspiracy to traffic in illegal drugs and contraband cigarettes and launder the criminal proceeds through wire transfers to Eastern European countries,” said U.S. Attorney Rod J. Rosenstein.

“FDA’s regulatory standards are designed to ensure the safety and quality of drugs distributed to American consumers,” said Special Agent-in-Charge Antoinette V. Henry, FDA’s Office of Criminal Investigations. “We will continue to work with our law enforcement partners to investigate all persons who disregard regulatory requirements and jeopardize the public health by participating in the distribution of unapproved products.”

The 42-count indictment alleges that the defendants are family members and associates who primarily live in northwest Baltimore County and New York City and operate businesses in the Pikesville area of Baltimore County, and in Baltimore City, including Healthway Pharmacy and Europe Restaurant. In addition to trafficking in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid, the indictment alleges that some of the defendants also have distributed oxycodone, sold drug samples and laundered money.

According to the indictment, the cigarette tax in Maryland is $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York is $4.35 per package of cigarettes ($43.50 per carton of cigarettes). Specifically, the indictment alleges that since December 2011, Elmar Rakhamimov has paid approximately $5.4 million for contraband cigarettes, which were received and stored at his residence in Maryland. The conspirators then transported the cigarettes to the New York area and resold them for a profit. According to the indictment, Elmar Rakhamimov, Artur Zakharyan and Ilgar Rakhamimov acted as a broker, middleman and distributor of contraband cigarettes and Nikolay Zakharyan, Adam Azerman, Shamil Novakhov andRuslan Ykiew transported contraband cigarettes to New York and other cities for resale. Elmar Rakhamimov and Yuliya Rakhamimov sometimes paid for the contraband cigarettes with prescription and counterfeit prescription drugs as well as other controlled substances. Elmar Rakhamimov and other conspirators used Rakhamimov’s residence and his restaurant to conduct the illegal transactions of contraband cigarettes and drugs. The indictment alleges that Salim Yusufov, who owned Healthway Pharmacy, received more than $81,000 in kickbacks for the contraband cigarette transactions.

Further, the indictment alleges that Elmar Rakhamimov and Zarakh Yelizarov conducted financial transactions involving the proceeds of the contraband cigarette sales, in order to conceal the nature, source, ownership and control of the proceeds of the illegal activity. Specifically, the indictment alleges that Rakhamimov and Yelizarov conducted wire transfers of cash from bank accounts they controlled in Latvia, Cyprus and Estonia.

In a separate indictment, Salim Yusufov, who owned and operated Healthway Pharmacy in Pikesville, is charged with illegally providing unapproved prescription drugs from Germany and Eastern Europe and sold them to customers. According to the indictment, Corvalol, also referred to Corvalolum, and Valocordin, is not approved by the FDA for distribution in the United States, although it is sold in Eastern European countries, where it is used to treat elevated blood pressure and as a tranquilizer and sedative. Valocordin and Corvalol contain large amounts of phenobarbital, a prescription drug regulated by the FDA. The indictment alleges that from July 23, 2010 through July 14, 2011, Yusufov imported and distributed Valocordin, dispensing the drug without a prescription.

All the defendants except Yuliya Rakhamimov face a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes and for each of 18 counts of trafficking in contraband cigarettes. Elmar and Yuliya Rakhamimov face a maximum of 20 years in prison for each of 10 counts of distribution of oxycodone; and Elmar Rakhamimov and Zarakh Yelizarov face a maximum of 20 years in prison for each of 12 counts of money laundering. Elmar Rakhamimov also faces 10 years in prison for sale of a drug sample.

Salim Yusufov also faces a maximum of three years in prison for each of five counts of receipt and delivery of misbranded drugs, and for each of five counts of dispensing prescription drugs without a prescription.

Six of the defendants are scheduled to have initial appearances this afternoon in U.S. District Court in Baltimore. Shamil Novakhov and Ruslan Ykiew were arrested in New York and will have initial appearances this afternoon in the U.S. District Court for the Eastern District of New York.

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

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

Prosecution of Morales Resulted in the Exoneration of Demetrius Smith for a Crime He Didn’t Commit

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Jose Joaquin Morales, age 37, of Baltimore, Maryland, today to life in prison for using a cell phone to arrange the murder-for-hire of Robert Long, who was a cooperating witness in a case pending against Morales in the Circuit Court for Baltimore City. Morales is currently serving two consecutive 262 month sentences for drug convictions in Maryland and Texas.

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 Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police.

“Thanks to outstanding law enforcement work, Jose Morales will spend the rest of his life in federal prison for murder, and a wrongly convicted man was exonerated,” said U.S. Attorney J. Rosenstein.

“Today’s sentencing of Jose Morales not only closes the book on a career offender, it slams shut the prison cell door,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “This case as well as the prior drug case against Morales strongly illustrates DEA’s commitment to target career offenders. Due to the combined efforts of law enforcement agencies along with the United States Attorney’s Office, Morales will never see the light of freedom again.”

According to evidence presented at his two week trial, Long and Morales were co-defendants in a series of theft cases in Baltimore City Circuit Court. Long had agreed to testify against Morales less than two weeks before he was shot. Detectives used Long’s information to obtain a search warrant at Morales’ home and seized a large amount of stolen construction equipment. Six days later, on March 24, 2008, Long was dead. Witnesses testified that Morales ordered the murder to prevent Long, who was also an employee of Morales, from testifying against him.

The jury learned that three weeks after the murder, Morales confessed to his attorney, Stanley Needleman, that he paid Dead Men Inc. (DMI), a prison and street gang, $20,000 to kill Long. Needleman testified that he had learned that Long was cooperating against Morales and reported that fact to Morales on March 20, 2008. Long was last seen about 15 minutes before his murder walking with a DMI member.

Trial evidence was presented that Morales was arrested on unrelated drug trafficking charges I August 2008 in Texas. He was convicted and sentenced to 22 years in prison. At the time of his arrest, he purported to cooperate against Needleman, advising federal agents that Needleman was involved in drug trafficking and that Needleman told Morales that he (Needleman) “took care” of Morales’ co-defendant by having him killed by DMI. Needleman testified that he did not learn about the cooperation until Needleman was the subject of an April 2011 federal search warrant that yielded over $1.2 million dollars in unreported cash in his home. Needleman subsequently pled guilty in September 2011 and agreed to testify, and did testify, against Morales.

The jury also heard testimony that Morales learned in 2011 that federal authorities were investigating Long’s murder. In order to convince federal agents in Maryland to proffer him in order to reduce his Texas sentence, Morales stated that a DMI member and the member’s brother shot Long in the head twice. Morales also made incriminating statements about his knowledge and involvement in the murder to two other inmates who also testified at trial.

Stanley Needleman, age 71, of Pikesville, Maryland, pleaded guilty to tax evasion and structuring financial transactions to avoid reporting large cash receipts and deposits. Needleman was sentenced on December 15, 2011 to a year and day.

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

United States Attorney Rod J. Rosenstein commended the DEA and Maryland Transportation Authority Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Martin J. Clarke, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Conspired to Distribute Over 1,500 Pounds of Marijuana and Launder Over $1 Million

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Mikhnail DelRosario, a/k/a Mickey, age 28, of Silver Spring, Maryland, today to 11 years in prison, followed by four years of supervised release, for conspiring to distribute more than 700 kilograms of marijuana and conspiring to commit money laundering. Chief Judge Chasanow also ordered that DelRosario forfeit $1 million, believed to be the proceeds of the drug and money laundering conspiracies.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.

According to his guilty plea and court documents, from March 2011 to December 2012, DelRosario conspired with Billymir Mancilla-Brevichet, Chamron Thach, Carlos Escobar, and others to distribute marijuana in the Montgomery County, Maryland area. From October 2012 through December 2012, Delrosario was intercepted on over seventy-five drug-related telephone conversations on Mancilla and Thach’s telephones, during which he discussed the sale of and arranged drug transactions involving marijuana.

Specifically, Mancilla acquired large amounts of high-quality marijuana from suppliers in California and elsewhere, and arranged for the transport of the marijuana by plane, car and mail to co-conspirators in Montgomery County, Maryland, including DelRosario. During the time of the conspiracy, DelRosario received 2 to 4 pound packages of marijuana from Mancilla at least two to three times per month. DelRosario also received packages of marijuana that he supplied to other members of the conspiracy on Mancilla’s behalf. DelRosario also sent couriers with currency to Mancilla in California to purchase marijuana from Mancilla. DelRosario paid Mancilla between $3,000 and $4,000 per pound of marijuana.

Mancilla’s co-conspirators also transported at least 100 pounds of marijuana at a time by car to a storage facility in Maryland, where Mancilla arranged for DelRosario and others, to pick up multiple pounds of marijuana for re-distribution. On at least five occasions, DelRosario traveled to California to receive marijuana and to transport drug proceeds in the form of bulk cash to Mancilla. DelRosario packaged and shipped the marijuana from Mancilla’s California residence to Maryland for redistribution.

During his participation in the conspiracy, DelRosario conspired to distribute between 700 and 1,000 kilograms of marijuana.

The conspirators also engaged in financial transactions that were designed to conceal the nature, location, source, ownership and control of the drug proceeds. For example, Mancilla arranged to receive payment for the marijuana he caused to be distributed by having drug customers deposit cash payments in amounts less than $10,000 into bank accounts that he controlled that were held in fake names and in the names of fake businesses. DelRosario and other co-conspirators, including Mancilla, Thach and Escobar, structured the financial transactions to evade the requirement that banks report transactions over $10,000 to the IRS, thereby concealing from the government large cash transactions by drug dealers.

Mancilla arranged for drug customers to mail drug proceeds from Maryland to him in California. Mancilla also had drug customers make payments to DelRosario and other co-conspirators in Maryland, who bundled the drug proceeds together in amounts ranging from $10,000 to $100,000, and arranged for individuals to transport the bulk cash by airplane from Maryland to Mancilla in California. DelRosario also made several trips by plane from Maryland to Mancilla in California with bulk cash.

For example, during the course of the conspiracy, DelRosario made two deliveries of currency to a cooperating informant totaling over $36,000. In October 2012, DelRosario provided $58,200 to Thach for payment to Mancilla for marijuana. DelRosario was responsible for acquiring and transporting at least $1,000,000 during the course of the conspiracy.

Billymir Mancilla-Brevichet, age 28, of Oakland, California, was previously sentenced to 90 months in prison and ordered to forfeit $278,618 seized from May to October, 2012. Co-conspirators Chamron Thach, a/k/a Sham, age 30, of Silver Spring, Maryland, and Carlos Salvador Escobar, a/k/a Esco, age 30, of Arlington, Virginia, were sentenced to eight years and three years in prison, respectively, for their participation in the drug and money laundering conspiracies. Six other conspirators pleaded guilty and were sentenced to between 4 years and 78 months in prison.

United States Attorney Rod J. Rosenstein commended HSI Baltimore and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Mara Zusman Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Stephen Sylvester Walker, age 31, of Baltimore, Maryland, today to 293 months in prison, followed by five years of supervised release, for being a felon in possession of a gun. Judge Bredar enhanced Walker’s sentence upon finding that Walker is an armed career criminal based on one previous first degree assault conviction and two previous narcotics convictions.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore County State’s Attorney Scott Shellenberger; and Chief James W. Johnson of the Baltimore County Police Department.

According to evidence presented at Walker’s three day trial, on January 30, 2011 at approximately 2:30 a.m., Baltimore County Police officers received a dispatch call for an armed person near a Denny’s Restaurant in Parkville, Maryland. Officers testified that they went to the location and witnesses identified Walker as the armed person. An officer drew his weapon and approached Walker, ordering him to show his hands and get on the ground. Walker refused to comply and another officer finally got Walker on the ground and arrested him. As the officer was detaining Walker, he saw a semiautomatic handgun tucked into Walker’s waistband. The officers recovered the gun, which was loaded with ammunition and also had a round in the chamber.

Witnesses testified that after his arrest Walker looked at the first officer that approached him and said, “I should have smoked you when I had the chance.” During an earlier motions hearing in the case, witnesses testified that Walker also made statements threatening to harm the arresting officers and their families, and threatening the civilians in the area for “snitching.”

Judge Bredar found that Walker was not truthful when he falsely testified at trial that he did not have a firearm on his person, and that he did not know where the firearm came from.

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 Attorneys Michael C. Hanlon and Scott Lemmon, who prosecuted the case.

Conspirators Targeted Women in Restrooms

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Crystal Barner, age 28, of Baltimore, today to 37 months in prison, followed by five years of supervised release, for a scheme in which Barner and her co-conspirators stole wallets from women’s purses, removed the cash, credit cards and driver’s licenses and used the credit cards to make purchases at nearby stores. Judge Garbis gave Barner credit for four months served on a related state court sentence, and ordered Barner to pay restitution of $142,717.61.

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

According to her plea agreement, beginning in May 2007, Barner was part of a scheme to defraud financial institutions by stealing credit cards from the wallets and purses of unsuspecting individuals, then using the stolen credit cards to make purchases. Specifically, the leader of the scheme, Ida Mae Weathers, an experienced pickpocket, would linger in women’s restrooms and steal the wallets from purses hung on the hooks in the stalls. Often, Barner or one of the other co-conspirators would create a distraction in an adjacent stall, such as asking for toilet paper, so that the victim would be looking away from her purse. Barner and other conspirators also sometimes served as a “lookout” for Weathers. Often Weathers was able to remove cash and credit cards and return the wallet to the victim’s purse without the victim seeing or suspecting the theft.

Weathers used some of the stolen credit cards herself and provided stolen credit cards to Barner, and other co-conspirators such as, Maureen Brown Little, Nicole Roles, Sharon Curtis and Nefeteria Jamison. The conspirators took the cards to nearby retail stores and used each card until it began to be declined. The conspirators purchased items for their personal use, as well as gift cards or high end merchandise that Weathers would direct them to buy and would then resell. Barner knew that the credit cards were stolen and knew that other members of the conspiracy were conducting fraudulent transactions as well.

During the course of the conspiracy, Barner and others obtained goods, services and extensions of credit in the amount of $142,717.61, and caused losses to or used the identities of between 10 and 50 financial institutions, businesses and individuals.

Ida Mae Weathers, a/k/a Ida Mae Snipes, age 49, of Baltimore, was sentenced to 259 months in prison, for conspiracy, bank fraud and aggravated identity theft, and was ordered to pay restitution of $151,180.50. Co-conspirator Nicole Roles, age 43, was sentenced to 57 months in prison and ordered to pay restitution of $8,462.39. Sharon Curtis, age 32, Maureen Brown Little, age 39, and Nefeteria Jamison, age 32, all of Baltimore, pleaded guilty to their roles in the scheme. Brown-Little and Curtis are both scheduled to be sentenced on March 13, 2014, and Jamison is scheduled to be sentenced on January 29, 2014.

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

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

Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Olumide Babafemi Ogunmakinwa, age 47, of Brandywine, Maryland, today to 28 months in prison, followed by five years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft in connection with a bank fraud conspiracy.

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

According to Ogunmakinwa’s plea agreement, between February 2011 and March 2011, Ogunmakinwa and his co-defendants created counterfeit checks and stole money using misappropriated bank account information and the personal identifying information of individuals without their knowledge or consent. Specifically, co-conspirator Nathan Silla and other co-conspirators opened bank accounts at financial institutions in their own names, in false names, in the name of a spouse and in the names of corporations they controlled. Silla and the co-conspirators obtained checks from victim individuals and corporations, which they washed to remove the actual payees’ names listed on the checks, then printed the names of a conspirator, false names of a conspirator, or a company controlled by a conspirator onto the washed checks. Ogunmakinwa and other co-conspirators then deposited these altered checks into accounts controlled by conspirators, including accounts controlled by Ogunmakinwa. In addition, Silla and other co-conspirators misappropriated the name and bank account numbers of victim individuals and companies by printing that information onto counterfeit checks, which Ogunmakinwa and others deposited into accounts that they controlled at various bank branches in Montgomery and Prince George’s County, Maryland, and in Washington, D.C., thereby drawing funds off of the victims’ accounts. The conspirators then wrote checks on the accounts that contained victim funds, and either cashed them or deposited those checks into other accounts they controlled.

Ogunmakinwa deposited, cashed, and wrote at least nine fraudulent checks totaling approximately $97,000. The offense involved approximately 10 victims.

Nathan Silla, age 40, of Glenn Dale, Maryland, previously pleaded guilty to his role in the scheme and was sentenced to 12 years in prison, and ordered to pay $331,499.21 in restitution.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service and U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Jefferson M. Gray, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Jeffrey Cofield, age 26, of Baltimore, today to 12 years in prison followed by four years of supervised release for conspiring to distribute heroin. Judge Blake further entered an order that Cofield forfeit $58,531 seized on December 11, 2012 during the execution of search warrants.

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

According to his plea agreement, from July to December 2012, Cofield engaged in the distribution of heroin in Baltimore City; and instructed coconspirators on how to store and prepare heroin, as well as the storage, collection and transfer of money received from the heroin distribution. The distribution of at least one kilogram or more of heroin was reasonably foreseeable to Cofield.

United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael C. Hanlon and Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – Amara Cisse, age 50, and his wife Fanta Keita, age 45, both of Windsor Mill, Maryland, pleaded guilty today to food stamp fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash.

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

Cisse owned Simbo Food Mart, a convenience store located at 2103 West Pratt Street in Baltimore. Keita worked at the store with her husband. According to their plea agreements, the store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.

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

The indictment alleges that Cisse and Keita obtained more than $600,000 in payments for food sales that never occurred. According to the plea agreement, the Court will need to determine the actual amount of the financial loss for the purpose of calculating the sentencing guidelines and restitution.

Keita faces a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett scheduled her sentencing for March 3, 2014, at 3:00 p.m. Cisse and the government have agreed that if the Court accepts his plea agreement Cisse will be sentenced to 27 months in prison. Judge Bennett has scheduled his sentencing for March 6, 2014, at 3:00 p.m.

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

Loss to the Government of $546,785 as a Result of the Scheme

Baltimore, Maryland – Tonia Patrice Lawson, age 43, of Middle River, Maryland, pleaded guilty today to a conspiracy to obtain fraudulent tax refunds.

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

“Return preparer fraud is a priority for IRS Criminal Investigation and we are committed to working with our law enforcement partners to investigate and prosecute cases just like these,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today's plea hearing is a reminder that individuals, like Ms. Lawson, who conspire to prepare fraudulent tax returns, will be brought to justice.”

According to Lawson’s plea agreement, from February 2010 through April 2013, Lawson, who was unemployed, conspired with others to prepare fraudulent tax returns. Specifically, Lawson and others recruited individuals who ordinarily did not meet the threshold to file income tax returns, because they had little or no earned income, and convinced these individuals that they could obtain a substantial refund and therefore should file a federal individual income tax return. Lawson and her co-conspirators used a variety of methods to recruit these individuals, including paying referral fee to those who brought recruits to them. Lawson would collect the recruits’ personal information and provide it to the conspirator who would prepare the fraudulent return. The recruits did not provide any income information. Once the refund from the fraudulent tax return was received, Lawson and the conspirators took a portion of the refund and paid the recruit a smaller amount. The conspirators misled the recruits by telling them that the refunds they had received were smaller than the refund amounts listed on the fraudulent tax returns. At least 15 fraudulently obtained tax refunds were deposited directly into accounts controlled by Lawson, who then wrote checks to the recruits to pay them for their portion of the refund.

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

Lawson faces a maximum sentence of 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense, whichever is greater. U.S. District Judge Richard D. Bennett scheduled her sentencing for March 27, 2014 at 4:00 p.m.

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

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

Threatened to Assault Prostitutes and Competitor Pimps, and Made Death Threats to Protect and Maintain Prostitution Businesses in Annapolis and Easton

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced German de Jesus Ventura, age 35, a citizen of El Salvador and an illegal alien residing in Capitol Heights, Maryland, to 35 years in prison, followed by five years of supervised release, for conspiring to transport and entice females to travel interstate for prostitution; transporting females for prostitution; enticing females to travel interstate for prostitution; sex trafficking by force, fraud and coercion; and possessing a gun in furtherance of sex trafficking.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Michael Pristoop of the Annapolis Police Department; and Easton Police Department Chief David A. Spencer.

“Since 2008, HSI Baltimore special agents have been investigating the illicit activities of German Ventura’s brothel organization, which operated in Maryland, the District of Columbia, Virginia and New York,” said William Winter, special agent in charge of HSI Baltimore. “As a result of this investigation, a total of five individuals were arrested for federal violations and 14 were arrested for state violations. This sentencing sends a message that HSI and other law enforcement members of the Maryland Human Trafficking Task Force are committed to working together to investigate human trafficking and combating the violence that sex trafficking organizations are bringing to our communities, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”

According to evidence presented during his two week trial, since at least March 2008 through November 2010, Ventura and Kevin Garcia Fuertes ran brothels in Annapolis and Easton, Maryland. Ventura, the ringleader, employed Fuertes to advertise and manage the brothels, and the two men shared the cash proceeds of the prostitution business. The defendants recruited and employed prostitutes, many of whom were aliens present in the U.S. unlawfully. Ventura arranged for vans and other vehicles to transport females within Maryland and across state lines to engage in prostitution. Ventura assaulted and threatened to use violence against one prostitute to coerce her continued participation in prostitution, from which Fuertes financially benefitted.

Ventura and Fuertes also threatened to use violence against competitor pimps. On August 3, 2010, Ventura used a cell phone to send three threatening multi-media messages depicting a semi-automatic pistol, the pistol’s magazine and an angel of death statue to a competitor pimp. On November 3, 2010, Ventura arranged for the assault of a competitor pimp with a pistol grip shotgun. In addition to these threats, Ventura reported criminal activity of the pimps in order to divert the attention of law enforcement and facilitate his own prostitution activities. On March 13, 2010, Ventura falsely reported a kidnaping and rape to the police in order to falsely implicate another pimp with the crimes. Ventura also claimed responsibility for the murder of competitor pimp Ricardo Ramirez Riva on September 13, 2008, in order to intimidate the competition, as well as his own employees and prostitutes.

Ventura also sought to intimidate members of the community who assisted his prostitutes. On September 1, 2009 Ventura called and threatened to kill a family who provided temporary housing to one of his prostitutes after she was arrested. He also poured gasoline on their apartment door and smashed windows from their vehicle.

On July 7, 2010, law enforcement executed a search warrant at one of Ventura’s brothels located at 318 E. Dover Street in Easton and arrested Isidro Jimenez-Sanchez and Wibert Herrera-Aranda who were working at the brothel.

On September 10, 2013, Judge Quarles sentenced Kevin Garcia Fuertes, a/k/a Kerlin Esquivel-Feuntes, age 26, a citizen of Honduras and an illegal alien residing in Annapolis, Maryland, and Richmond, Virginia, to 19 years in prison. Fuertes was also convicted at trial of the conspiracy and sex trafficking charges.

Jose Antonio Reyes-Maradiaga, age 30; Isidro Jiminez-Sanchez and Wibert Alejandro Herrera-Aranda, both age 34, of Easton, Maryland, previously pleaded guilty to their participation in the scheme. These defendants advertised Ventura’s brothels, made appointments for the prostitutes and collected money. Reyes also helped to transport the women to the brothel locations, and purchased supplies. Jiminez-Sanchez, a Mexican citizen who entered the United States illegally, was sentenced to a year and day for transporting prostitutes, and upon completion of his sentence, was deported from the U.S. to Mexico. Herrera-Aranda was sentenced to 18 months in prison and Reyes was sentenced to time served. Both were also deported.

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

United States Attorney Rod J. Rosenstein praised the Annapolis and Easton Police Departments and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys P. Michael Cunningham and Rachel M. Yasser, who prosecuted the case.

Gun Brandished In Each of the 22 Robberies and a Customer Shot In One of the Robberies

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Rico Bias, age 34, of Baltimore, Maryland, today to 185 months in prison, followed by three years of supervised release, for a series of armed commercial robberies committed from January through June, 2012.

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

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

Hatratico Smith, age 48, and Monzell Lee, age 20, both of Baltimore, pleaded guilty to their roles in the robberies. Lee was sentenced to nine years in prison for the four robberies in which he participated. Smith is scheduled to be sentenced on January 14, 2014, at 10:00 a.m.

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

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Darryl Robinson, age 49, of Baltimore, to 15 years in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute heroin.

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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

According to his plea agreement, from January to July 23, 2013, Robinson was a leader and manager of a drug trafficking organization that distributed heroin from an open-air drug “shop” in the Poplar Grove neighborhood of Baltimore. Robinson was responsible for coordinating the purchase of narcotics; delivering the narcotics to stash houses throughout Baltimore City; and supervising the street-level dealers who sold heroin to retail customers.

During the conspiracy, Robinson and others conspired to distribute and possess with the intent to distribute at least one kilogram of heroin.

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Scott Lemmon, who prosecuted the case.

Admitted to Murdering Two Men in Furtherance of a Drug Conspiracy

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Kyle Stevens, a/k/a Cappo, age 23, of Remington, Maryland, today to 32 years in prison followed by five years of supervised release for discharging a gun, thereby killing Keith Ray, a/k/a Keithy.

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 Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.

According to his plea agreement, on September 21, 2007, Stevens fatally shot Keith Ray, in a wooded area off the 600 block of Wyman Park Drive in Baltimore. The body was found under a pile of logs a few days later on September 25. An autopsy revealed that Mr. Ray died of a gunshot wound to the back of the head.

Stevens also admitted to participating in a conspiracy to distribute heroin, powder and crack cocaine, and oxycodone and that, in furtherance of the drug conspiracy, on January 24, 2006, Stevens used a .45 caliber semiautomatic handgun to murder James Wright, a/k/a Ronnie Mo; and a .380 caliber semiautomatic handgun to murder Keith Ray.

Mr. Rosenstein praised the FBI, ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their assistance in this investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Kentwan Russell, age 37, of Baltimore, Maryland, today to 15 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm. Judge Blake enhanced Russell’s sentence upon finding that Russell is an armed career criminal based on three previous drug convictions. Russell has been detained since his arrest on federal charges on September 15, 2011.

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 information presented to the Court, on December 15, 2010, Baltimore Police detectives went to a residence in Baltimore to locate Russell, who had an open arrest warrant for burglary. Officers found Russell in the home and twice ordered Russell to raise his hands above his head. Russell refused to comply, so the officers employed a taser. As they did so, the officers saw a silver handgun in Russell’s waistband. Russell attempted to run away, but was placed under arrest and the gun - a 9mm handgun, loaded with five rounds – was recovered.

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 Michael C. Hanlon, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Michael Abobor, age 38, of Bowie, Maryland, today to 51 months in prison, followed by five years of supervised release, for wire fraud in connection with a mortgage fraud scheme involving intended losses of at least $2 million. Judge Messitte also entered an order that Abobor forfeit $2,026,205 and pay restitution of $1,832,650.

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

According to his plea agreement, in the Spring and Summer of 2007, Abobor, a licensed realtor, submitted fraudulent loan applications for the purchase of homes in Maryland. Abobor purchased two homes in his own name, and purchased the rest of the homes using the names, and credit, of various friends and family members. Each loan application contained fraudulent information about the borrower’s earnings (including their monthly income and their assets) and employers, of which Abobor had full knowledge. Some of these applications contained fake documents, like doctored W-2s and paystubs; and all of them alleged that the borrower made much more money than he or she really did. Based on these fraudulent application materials, the victim lending institutions funded loans that totaled hundreds of thousands of dollars, resulting in substantial commission payments to Abobor. Eventually, each of these loans fell into default, causing large losses to the victims. Abobor also received large amounts of money that were disguised as “renovation payments” and funded by the mortgages

For example, on July 25, 2007, Abobor facilitated the purchase of a home in Bowie, and while serving as the buyer’s real estate agent, knowingly submitted a false loan application on the buyer’s behalf. The loan application, among other things, vastly inflated the buyer’s monthly income figures. Relying upon these false representations, the lending institution funded a loan of $375,000. As part of this transaction, Abobor received a commission payment of $5,499, and also received over $37,000 in “renovation” payments.

In all, Abobor arranged at least seven fraudulent real estate transactions, caused more than $2,000,000 in intended losses to victim financial institutions, took in excess of $20,000 in fraudulent real estate commissions, and collected over $270,000 in extra money from the transactions in the form of third party disbursements for renovations that were never completed.

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 FDIC Office of Inspector General, U.S. Secret Service and the Department of Housing and Urban Development Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.

Heavy Sentence for Defendant Who Stole From Housing Authority’s Bank Account

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Daren Kareem Gadsden, aka “D,” age 36, of Upper Marlboro, Maryland, to 286 months in prison, followed by five years of supervised release for a conspiracy to steal almost $1.4 million from a Housing Authority of Baltimore City bank account. Judge Quarles also ordered Gadsden to forfeit $1,399,700.

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

“This heavy sentence punishes Daren Gadsden for a brazen scheme to steal $1.4 million directly from the Baltimore City Housing Authority’s bank account,” said U.S. Attorney Rod J. Rosenstein. “Mr. Gadsden identified a vulnerability in the Housing Authority’s payment system and exploited it to steal taxpayer money intended to provide housing for low-income citizens.”

According to information presented at his six day trial, in 2009, Gadsden owned a property in Baltimore that was rented to a low income individual, whose rental payments were paid by the Housing Authority of Baltimore City, from its account directly to Gadsden’s bank account. Witnesses testified that in late 2009 and 2010, Gadsden made a series of inquiries to another bank where he had an account about how to use his computer to make electronic transfers to and from his account at that bank. In early 2010, the Housing Authority lost a few thousand dollars when a series of unauthorized electronic transfers debited funds out of the Housing Authority’s account and into Gadsden’s bank account. After being confronted by Housing Authority officials, Gadsden denied any wrongdoing, but paid the Housing Authority $1,400 to cover some of its losses.

Trial evidence showed that, at this point, Gadsden already had embarked on the second stage of his scheme, stealing during the spring of 2010 a marginally larger amount of Housing Authority funds – less than $8,000 – this time not depositing into his own account, but rather into an account in the name of a bogus entity Gadsden had created using another individual’s stolen identifiers. Gadsden effected the unauthorized electronic debits out of the Housing Authority’s bank account by using fake authorization forms and other fraudulent documents.

The evidence showed that from early 2010 until at least September 17, 2010, Gadsden and several co-defendants then conspired to execute a larger scheme to defraud the Housing Authority. Specifically, Gadsden contacted Tyeast Brown to plan the fraud. Brown, in turn, contacted William Alvin Darden and Keith Eugene Daughtry, securing from Daughtry his social security card and birth certificate, which she provided to Darden. On May 19, 2010, Darden obtained a Maryland driver’s license with his photograph, but in Daughtry’s name, using Daughtry’s social security card and birth certificate as proof of identity. Darden then used the fraudulent license to open a bank account in the name of Keith Daughtry Contracting LLC. Gadsden had registered the entity with the state of Maryland, only a few days before, under a different, misspelled name. Darden also provided a mailing address for the company that was actually a mailbox rented by the conspirators at a commercial mailing store.

According to witness testimony, beginning in July, 2010, Gadsden and his co-conspirators electronically transferred nearly $1.4 million in funds from the Housing Authority’s bank account and into the Keith Daughtry Contracting LLC account. The conspirators then drained the stolen Housing Authority funds from the Keith Daughtry Contracting account by electronic transfers into accounts at other banks, in-person cash withdrawals and from automated teller machines. In addition, the conspirators electronically transferred funds from the Keith Daughtry Contracting account onto debit cards in the names of other individuals. For example, Gadsden opened a debit account in the name of another individual, using that person’s identity information without their knowledge or permission.

The evidence showed that Gadsden also tampered with evidence, deleting the contents of at least two email accounts after he was contacted by an FBI Special Agent. The accounts were provided as the points of contact for certain debit cards Gadsden opened using stolen identity information.

Judge Quarles also sentenced William Alvin Darden, age 46, of Washington, D.C. today to 30 months in prison, followed by three years of supervised release. Darden, who previously pleaded guilty to his role in the scheme, was also ordered to pay restitution of $1,399,700.

Tyeast Brown, aka “Peaches,” age 42, of Suitland, Maryland and Keith Eugene Daughtry, age 52, of Washington, D.C. also pleaded guilty and were sentenced to 36 months and 41 months in prison, respectively, and each was ordered to pay restitution of $1,399,700. Another co-conspirator, Marvin Moss, also pled guilty to his role in the scheme and was sentenced to 15 months in prison.

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

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

Participated in the Shipment of Almost 10,000 Kilograms of Marijuana

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Thurston Lindsey, whose true name is Daniel Mitchell Williams, Jr., age 43, of Phoenix, Arizona, today to 10 years in prison, followed by four years of supervised release, for conspiracy to possess with the intent to distribute marijuana.

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

According to Lindsey’s plea agreement, in December of 2011, Lindsey agreed to work with several co-conspirators, including Jerome Adolfo Castle, in the distribution of large quantities of cocaine and marijuana. Lindsey relocated to Phoenix, Arizona, where from early 2012 until the time of his arrest on April 22, 2013, he worked directly with two of his co-conspirators, who provided Lindsey with housing and paid him for his services. Lindsey assisted in the packaging and shipment of large quantities of marijuana and cocaine to Baltimore and other cities on the east coast. Lindsey’s duties also included inspecting the quality of shipments of the drugs acquired by his co-conspirators, weighing the drugs (primarily the marijuana), and once the drugs were packaged for shipment, delivering the drugs to the shipping agent, who was responsible for shipping the marijuana and cocaine to locations in Baltimore and elsewhere. Jerome Castle was in charge of the distribution of the drugs once they arrived in Baltimore. Lindsey admits that he participated in the shipment of close to 10,000 kilograms of marijuana and also admits that cocaine was also shipped to Maryland during this period of time.

Jerome Adolfo Castle, age 35, a Jamaican national residing in Pikesville, Maryland, pleaded guilty on November 19, 2013, to illegal re-entry of a removed alien, conspiracy to distribute and possess with the intent to distribute cocaine and marijuana, and conspiracy to launder money. According to his plea agreement, law enforcement executed a search warrant at Castle’s residence and recovered almost $58,000 in cash; jewelry appraised at over $411,000; a money counter; a scale used to measure quantities of drugs; over 200 grams of marijuana; and seven handguns. In addition, Castle admitted that between 2010 and April 2013, he deposited approximately $300,000 in cash to bank accounts under the name of Dontwon Burris. These deposits were made with proceeds from the sale of cocaine and marijuana, and are, therefore, criminally derived property.

As part of his plea agreement, Castle will be required to forfeit the cash, jewelry and firearms seized from his home during the search, as well as all interest he maintained in seven properties located in Baltimore; six vehicles, including three Ford F-150’s and a Jaguar XF Premium; two laptop computers and an Apple I-Pad; and 98 pairs of assorted men’s shoes.

Castle and the government have agreed that if the Court accepts the plea agreement Castle will be sentenced to 14 years in prison. Castle has agreed that he will consent to removal from the United States upon completion of his sentence. Judge Russell has scheduled sentencing for February 28, 2014 at 2:00 p.m.

United States Attorney Rod J. Rosenstein praised the DEA, Baltimore County Police Department and Maryland Transportation Authority Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Superseding Indictment Focuses on Conduct Prior to April 2013

Baltimore, Maryland - United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore City State’s Attorney Gregg Bernstein; Baltimore Police Commissioner Anthony W. Batts; and Prince George’s County Police Chief Mark A. Magaw announced that a federal superseding indictment was unsealed today charging 19 additional defendants, including 14 former and current correctional officers with the Maryland Department of Public Safety and Correctional Services, with conspiring to operate the Black Guerilla Family (BGF) gang inside correctional facilities. All 19 defendants also are charged with conspiracy to distribute and possession with intent to distribute drugs; and six are charged with money laundering conspiracy.

This brings to 44 the total number of alleged BGF gang members and associates charged in the case, including 27 correctional officers. Sixteen of the 25 defendants in the original indictment in April 2013 have pleaded guilty to racketeering conspiracy, including nine correctional officers, four inmates and three drug suppliers. One defendant is deceased. Eight defendants charged with racketeering in April 2013 remain in the superseding indictment.

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 almost three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators.

“The new charges focus on criminal conduct that occurred prior to April 2013, adding 19 new defendants as a result of additional evidence that came to light during the ongoing investigation,” said U.S. Attorney Rod J. Rosenstein. “I want to thank Secretary Maynard and the many law-abiding employees of the Department of Public Safety and Correctional Services who have assisted in this investigation and are working to eliminate corruption in state correctional facilities.”

“We are grateful to our federal law enforcement partners for their responsiveness, their good work, and their ongoing willingness to work with us as we root out corruption, improve security, and promote integrity at Maryland correctional institutions,” DPSCS Secretary Gary Maynard said. “While our work continues, those indicted out of the Taskforce’s efforts do not represent the overwhelming majority of honest and hardworking correctional officers working every day to keep our institutions safe.”

The superseding indictment and a search warrant affidavit were unsealed today upon the arrests of the defendants and the execution of 15 search warrants. Approximately 150 agents and officers assisted in the arrests and search warrants. The superseding indictment was returned on November 5, 2013, and remained under seal until after the warrants were executed this morning.

The defendants charged in the superseding indictment are alleged to be members or associates of the BGF, a gang active in prisons throughout the United States. According to the indictment, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, especially the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.

According to the affidavit, the BGF inmates and correctional officers operated a criminal organization within the prison facility, enabling them to make large amounts of money through drug trafficking, robbery, assault, extortion, bribery, witness retaliation, money laundering and obstruction of justice. “Green Dot” cash cards routinely were used to transfer money. BGF members and associates used the money to bribe correctional officers and other employees at BCDC and related prison facilities to smuggle drugs, cell phones and other contraband. Correctional officers arranged favored treatment and privileges for imprisoned BGF gang members, thwarted interdiction and law enforcement efforts against BGF inmates, and facilitated attacks on inmates in furtherance of BGF objectives. Gang members and associates extorted protection money from inmates who were non-members, often paid by relatives outside the jail.

The correctional officers allegedly hid drugs and other contraband beneath clothing and inside body cavities when they entered the prison. The correctional officers also smuggled items in their shoes, or in sandwiches they brought into the prison. BGF leaders used contraband cell phones to order drugs and other contraband and to coordinate gang activities.

Court documents allege that BGF members recruited correctional officers through personal and often sexual relationships as well as bribes, and that some officers traded sex for money. Officers believed it was unlikely that they would be fired or face significant discipline even if they were caught smuggling contraband or fraternizing with inmates.

The defendants face a maximum sentence of 20 years in prison on the racketeering and drug conspiracies. Thirteen of the defendants face a maximum sentence of 20 years in prison as well for conspiracy to commit money laundering. James Yarborough also faces five years in prison for possession with intent to distribute marijuana.

Most of the defendants are expected to have initial appearances in U.S. District Court in Baltimore this afternoon.

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 U.S. Attorney praised the FBI, the Maryland Department of Public Safety and Correctional Services, the Baltimore Police Department, the Prince George’s County Police Department, the Maryland Prison Task Force, and the Baltimore City State’s Attorney’ Office for their work on the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

The U.S. Attorney also thanked the leaders of other agencies that have assisted the Maryland Prison Task Force, including Colonel Marcus L. Brown, Superintendent of the Maryland State Police; 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.

ATTACHMENT A

The following 19 defendants are newly charged in the superseding indictment unsealed today.

Inmates: Russell Carrington, a/k/ Rutt, age 33; and
Frederick Morrison, a/k/a Fry, age 29.

Current and former correctional officers: Kevin Armstrong, age 26, of Gwynn Oak, Maryland; Clarissa Clayton, age 24, of Brooklyn Park, Maryland; Tanierdra Finch, age 26, of Baltimore; Danielle Forrest, age 26; Aisha Fraction, age 25, Brooklyn; Sean Graves, age 47, of Windsor Mill, Maryland; Ricolle Hall, age 26, of Glen Burnie, Maryland; Angela Johnson, age 34, of Baltimore; Derrick Jones, age 41, of Aberdeen, Maryland; Javonne Lunkin, age 28, of Baltimore; Ashley Newton, age 30, Baltimore; Travis Paylor, age 26, Baltimore; Milshenna Peoples, age 29, of Baltimore; and
Michelle Ricks, age 43, Edgewood, Maryland.

Other DPSCS employee: Michelle McNair, age 22, Baltimore.

Outside supplier: Raylanair Reese, age 31; and
Linnard Wortham, a/k/a Stu, age 29, of Glen Burnie, Maryland.

The following eight defendants were charged in the original indictment and remain in the superseding indictment.

Inmates: Jamar Anderson, a/k/a Hammer and Hamma Head, age 24, of Baltimore; Derius Duncan, a/k/a D or Lil D, age 24, of Baltimore; and
Joseph Young, a/k/a Monster, age 30, of Baltimore.

Current and former correctional officers: Antonia Allison, age 27; of Baltimore; Ebonee Braswell, age 27; of Baltimore; Chania Brooks, age 28, of Baltimore; and
Tiffany Linder, age 27, of Baltimore.

Outside suppliers: James Yarborough, a/k/a J.Y., age 27, of Baltimore.

The following 16 defendants were charged in the original indictment unsealed in April 2013 and have pleaded guilty to their participation in the racketeering conspiracy.

Inmates: Tavon White, age 36, of Baltimore; Steven Loney, age 24, of Baltimore; Kenneth Parham, age 24, of Baltimore; and
Jermaine McFadden, age 25, of Baltimore.

Correctional officers: Kimberly Dennis, age 26, of Baltimore; Jasmin Jones, a/k/a/ J.J., age 25, of Baltimore; Taryn Kirkland, age 23, of Baltimore; Katrina Laprade, a/k/a Katrina Lyons, age 31, of Baltimore; Vivian Matthews, age 26, of Essex, Maryland; Jennifer Owens, a/k/a/ O and J.O., age 31, of Randallstown; Adrena Rice, age 25, of Baltimore; Katera Stevenson, a/k/a KK, age 25, of Baltimore; and
Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie.

Outside suppliers: Tyesha Mayo, age 30; of Baltimore; Tyrone Thompson, age 36, of Baltimore; and
Teshawn Pinder, age 24, of Baltimore.

Ralph Timmons, Jr., age 35, of Baltimore, was also charged in the original indictment and is deceased.

Over 250 Victims Impacted by the Schemes

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced ringleader, Oluwaseun Sanya, age 28, of Beltsville, Maryland late on November 19, 2012, to 212 months in prison, followed by three years of supervised release, for two separate credit card fraud schemes, one of which he committed while awaiting sentencing after pleading guilty to the first scheme. Judge Messitte also ordered Sanya to pay restitution of $251,712.87 and entered a forfeiture order for the same amount. Sanya also forfeited a Range Rover and Maserati luxury sports car as part of this case.

The sentences were 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; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief James W. Johnson of the Baltimore County Police Department.

On July 31, 2012, Sanya pled guilty in federal court in Maryland to conspiring to commit access device fraud. Sanya admitted that, at least beginning in 2010, he oversaw a credit card skimming operation in which he recruited employees at restaurants and businesses to steal customer credit card information. The stolen data was then loaded onto gift cards, or encoded onto other credit or debit cards. These cards were used to buy merchandise at area businesses, and the merchandise was later returned in exchange for cash. Sanya’s actions in this scheme impacted 250 or more victims. Upon pleading guilty, Sanya was released from custody pending sentencing upon condition that he not commit any crimes.

However, Sanya admitted that while on release pending sentencing, he again committed credit card fraud and aggravated identity theft. Beginning in at least September 2012, Sanya drove Latasha Bufford, Chazokam Okoye and Shanese Crawford to stores along the east coast and directed them to use stolen credit card account numbers which were re-encoded onto counterfeit gift cards, to purchase legitimate gift cards. Security officials at the Wegman’s grocery store chain detected the fraudulent activity and internally circulated store security video of the women using the stolen credit card information to purchase gift cards.

On September 15, 2012, the women entered a Wegman’s store in Abingdon, Maryland, where they attempted to buy gift cards using several counterfeit credit cards at different registers throughout the store. A store theft prevention employee recognized the women and alerted law enforcement. The women traveled in a vehicle driven by Sanya to another Wegman’s store in the area, and upon leaving that store, were stopped by local law enforcement. Sanya encouraged the women to lie about their criminal activity, and falsely claimed to officers that he was in the midst of an undercover operation on behalf of federal law enforcement. Inside the vehicle, police officers seized roughly $11,000 worth of legitimate gift cards that the women had purchased at Sanya’s direction using 33 counterfeit credit cards, which were also seized. During the previous two weeks alone, at Sanya’s direction, the women had used counterfeit credit cards to make over $30,000 in additional fraudulent purchases. In addition, on September 15, 2012, Sanya possessed at least one stolen credit card number. Sanya was arrested and has been detained since that time.

Dimitria Limnios, age 22, of Glen Burnie, Maryland, and Monet Griffin, age 24, of Baltimore, Maryland, previously pleaded guilty to their participation in the first fraud scheme. Limnios and Griffin face a maximum penalty of seven and a half years for conspiracy to commit access device fraud. Limnios has agreed to pay at least $148,191.04 in restitution and forfeiture. Griffin has agreed to pay at least $27,409.57 in restitution and forfeiture. Sentencing dates for Limnios and Griffin are yet to be determined.

Chazokam Okoye, age 22, of Silver Spring, Maryland, previously pleaded guilty to her participation in the second fraud scheme and was sentenced to four months in prison, followed by four months of home detention. Okoye was also ordered to perform 50 hours of community service and to forfeit $30,000. Latasha Bufford, age 25, of Haymarket, Virginia, and Shanese Crawford, age 24, of Accokeek, Maryland, also pleaded guilty. Judge Messitte has scheduled Crawford’s sentencing for January 9, 2014 at 9:30 a.m. No date has been set for Bufford’s sentencing.

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

United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and the Montgomery County and Baltimore County Police Departments for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Sujit Raman and Thomas Windom, who prosecuted these cases.

Greenbelt, Maryland - A federal grand jury has indicted Noe Rodriguez, age 33, of Boyds, Maryland, on charges arising from a scheme in which he allegedly failed to comply with federal wage, hour and records regulations under the Davis-Bacon Act. The indictment also charges Rodriguez with identity fraud and aggravated identity theft and charges Rodriguez and Maria Murillo, age 36, also of Boyds, with misuse of a social security number. The indictment was returned on November 18, 2013, and unsealed today upon the arrests of the defendants and the execution of a search warrant.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Bill Jones, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Washington Regional Office; Acting Special Agent in Charge Alfred C. McGeachy of the Naval Criminal Investigative Service, Washington Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.

Rodriguez owned RDZ Electric, LLC, a company that provided electrical work on construction projects in the Washington, D.C. metropolitan area. Murillo acted as secretary of RDZ, and resided with Rodriguez. RDZ provided electrical work during the construction of the Navy Exchange (NEX) at the National Military Medical Center located in Bethesda, Maryland. The NEX was owned by the Department of the Navy.

RDZ was required to comply with federal wage, hour and records regulations under the Davis-Bacon Act. The Act required subcontractors such as RDZ to pay workers employed at the project site wages determined by the Department of Labor. The Department of Labor determined that the electrician’s prevailing wage rate at the NEX project was $50 an hour; and the electrical laborer’s wage rate was determined to be $16 an hour.

The indictment alleges that between August 2011 and June 2012, RDZ employed numerous electrical workers at the NEX project. Rodriguez allegedly listed no more than eight workers on RDZ=s certified payrolls, when in fact more than 30 workers were employed by RDZ and performed electrical work on the project. The indictment alleges that Rodriguez falsely certified on the payrolls that all RDZ employees were paid the Davis-Bacon prevailing wage, when in fact they were paid wages at least $1 million less than should have been paid pursuant to the Davis-Bacon prevailing wage rate.

The indictment alleges that Murillo used the social security number assigned to another person to open a bank account and Rodriguez allegedly provided a false social security number on his Maryland driver’s license renewal application, knowing that the social security number belonged to his minor son.

The indictment seeks forfeiture of at least $1 million, a vehicle, and all monies paid into four bank accounts controlled by Rodriguez between August 1, 2011 and June 1, 2012, for work performed by RDX on the NEX project.

Rodriguez faces a maximum sentence of five years in prison for each of five counts of making a false statement; a maximum of 15 years in prison for using another person’s identifying information to commit fraud; and a mandatory minimum of two years in prison consecutive to any other sentence for aggravated identity theft. Rodriguez and Murillo each face five years in prison for misuse of a social security number. The defendants had their initial appearances today in U.S. District Court in Greenbelt and were detained. A detention hearing is scheduled for Thursday, November 21, 2012 at 12:30 p.m.

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

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

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

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Gregory Steven Horn, age 38, of Glen Burnie, Maryland, today to 18 years in prison, followed by five years of supervised release, for conspiracy to commit armed bank robbery and armed bank robbery. Judge Bredar also ordered Horn to pay restitution of $802.50 for counseling for bank employees. Horn was on supervised release at the time of the offense for a 2001 federal bank robbery conviction in Tennessee.

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; and Chief Jeffrey Spaulding of the Westminster Police Department.

According to Horn’s plea agreement, in October 2011, Horn’s half-sister, Kelly Nicole Smith, told Horn that she was having financial problems. Horn suggested that they rob banks together in order to make money and Smith eventually agreed. On November 2 and December 1, 2011, Horn and Smith attempted to rob banks in Parkville and Reisterstown, Maryland, respectively. In each attempt, Horn provided Smith with a wig and hat to disguise herself and Smith entered the bank and demanded money from the bank teller, but in each instance left the bank without obtaining any money.

On December 2, 2011, Horn and Smith conspired to rob a third bank, the Farmers and Merchants Bank on Clifton Boulevard in Westminster, Maryland. Horn drove Smith to the bank and directed her to go inside, conduct surveillance to determine the presence of security and whether there was bullet proof glass on the teller station, then return to the car with a report. Smith did as Horn directed and shortly thereafter, Horn entered the bank wearing a black hoodie with the hood pulled up over his head and a black mask covering his face. Horn demanded money, displaying what appeared to be a small black handgun and placed a black bag on the counter. The teller put the money in the bag and Horn left, stealing $1,800. Horn and Smith fled in Horn’s vehicle, driven by Horn. Law enforcement attempted to stop the vehicle, but Horn refused to stop. Law enforcement pursued Horn’s vehicle from Carroll County into Frederick County, where Horn threw something – believed to be his weapon – from the car window. Eventually, the vehicle was stopped and Horn and Smith were arrested. The vehicle was searched and law enforcement recovered $1,800 stolen from the bank, the hat and wig worn by Smith, and clothing consistent with the clothing worn by Horn and Smith during the robbery of the Farmers and Merchants bank. No firearm was recovered.

Kelly Nicole Smith, age 23, of Middle River, Maryland, pleaded guilty to her role in the conspiracy and was sentenced to two years in prison.

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

Sold Drugs From His Suitland Auto Repair Business

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Kevin Leon Mormon, age 33, of Brandywine, Maryland, today to 25 years in prison, followed by 10 years of supervised release, for conspiracy to distribute and possess with intent to distribute crack 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; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to evidence presented during Mormon’s three day trial, between July 2009 and June 2012, Mormon conspired with others in the Prince George’s County area to distribute crack and powder cocaine. Beginning in February 2012, the FBI began investigating Mormon’s distribution activity out of his Suitland business, Premier Auto Salon. In late March and early April a confidential source made two controlled purchases at Premier. The first purchase was $1,100 in powder cocaine bought from one of Mormon’s co-conspirators and the second was $1,200 in crack cocaine purchased from Mormon himself.

A witness testified that she began buying drugs from Mormon in 2009, purchasing between 2 to 4.5 ounces of crack cocaine once a month from the summer of 2009 to the end of 2010. Beginning in early 2011, the witness estimated that she increased the size and frequency of her crack purchases from Mormon to two to three times a month, in quantities of up to 12 ounces each occasion.

In November 2012, after Mormon had been indicted and while he was serving a six month sentence for a violation of supervised release from a previous federal conviction, FBI agents visited Mormon in prison, and he agreed to speak with them. The agents testified at trial that Mormon told them he had one main supplier for his cocaine, who provided “pretty good” quality cocaine powder for $36,000 per kilogram. Mormon said he bought a half-kilogram at a time and would buy at least weekly and sometimes as often as daily from his supplier. According to the agent’s testimony, Mormon admitted to selling to between 20 and 30 different customers at Premier, and admitted that he occasionally stored drugs in customer vehicles parked outside.

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

Approximately $1 Million Loss

Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Kimberly Eileen McMillian, a/k/a Kimberly Simmons and Kimberly Simmons McMillian, age 46, of Baltimore, today to two years in prison, followed by five years of supervised release, for wire fraud in connection with a fraud scheme involving more than $1 million in fraudulently obtained mortgages. Judge Russell sentenced co-defendant Glenroy E. Day, Sr., age 73, of Oxon Hill, Maryland, to two years’ probation, with the first year to be served in home confinement, and as a special condition ordered Day to perform 200 hours of community service during his second year of probation. Judge Russell entered an order that McMillian and Day pay $1,028.003.20 and $540,000 in restitution, respectively.

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

According to her plea, in 2007, McMillian told a man who had bought three houses in Baltimore and had finished renovations on two of them, that she had clients from the New York area who were interested in purchasing the properties. When he agreed to sell, McMillian submitted loan application packages to a loan officer at a mortgage corporation in connection with the three properties, as well as a fourth property. The four loan application packages were subsequently approved.

The government’s investigation revealed that virtually all of the information submitted in the four loan packages was false. In two cases, the purported buyers were individuals who had already returned to their home countries or planned to do so in the near future; the other two “buyers” listed on the loan applications were either stolen or fictitious identities. In none of the four cases was there a real individual who actually intended to live in the properties and make the mortgage payments on them. Moreover, the representations made and the supporting documentation provided on each loan application relating to the employment, income, and financial assets for each purchaser were likewise false.

McMillian arranged to have Day, an unlicensed appraiser, prepare the appraisal reports on all four properties because she knew he would provide an appraisal at the specific contract price without regard to the actual condition or value of the property. For two properties located at 2243 Madison Avenue and 2359 McCulloh Avenue, Day admitted that he falsely represented that both properties had been recently upgraded and renovated. Day further admitted that these two appraisals also included interior photographs that were actually taken in completely different and thoroughly renovated houses. Day’s appraisals indicated that each of the four appraisals had been reviewed and approved by a licensed appraiser, but the individual specified has denied that he saw or reviewed any of the four appraisals.
Based on the false information provided relating to the four “buyers” and the condition and market value of the properties, the mortgage company agreed to extend financing on each of the four properties, totaling $1.094 million in all.

McMillian received a total of approximately $278,000 from the four transactions at the closings, although she in turn transferred $122,000 of the settlement proceeds to another individual and an associate’s business checking account. Day received approximately $2,000 which he had charged for preparing the four appraisals.

Following the closings, the mortgage on each property soon went into default. Typically, either no mortgage payments were made at all, or only a couple of payments were made.

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 and U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Jefferson M. Gray, who prosecuted the case.

U.S. Attorney Warns that “Parents Must Be Relentless About Reading Children’s Text Messages and Checking Their Social Media Accounts”

Baltimore, Maryland - Anthony Dennis Williams II, age 27, of Severn, Maryland, a former employee at the Fort Meade Youth Center, was arrested today, on charges of sexually abusing a minor.

The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and the U.S. Army Criminal Investigation Command.

“Parents must to be relentless about reading children’s text messages and checking their social media accounts,” said U.S. Attorney Rod J. Rosenstein. “Keep your children’s passwords, read all of their incoming and outgoing messages, and take immediate action if they send or receive inappropriate messages.”

According to the affidavit filed in support of the criminal complaint, Williams worked at the Fort Meade Youth Center where he was a Child Youth and School-aged Services (CYSS) employee. Williams also taught a program at CYS called Passport to Manhood (P2M) which was a life course for juvenile males attending CYS. The criminal complaint alleges that in 2010 and 2011, while working at CYS, Williams sexually abused two minor males. According to the complaint, Williams communicated with the males through social media sites and text messages. Williams engaged in sexually explicit conversations with the victims and exchanged sexually explicit photographs and videos with the minor males.

The investigation is continuing.

Williams faces a maximum sentence of 15 years in prison for sexual abuse of a minor. An initial appearance is expected to be scheduled for tomorrow in U.S. District Court in Baltimore. Williams is detained.

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

United States Attorney Rod J. Rosenstein praised the FBI and Army CID for their work in the investigation and thanked the Citrus County, Florida Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who is prosecuting the case.

Smuggled Drugs and Other Contraband for BGF Gang Members into Baltimore Correctional Facilities

Baltimore, Maryland – Five defendants, all from Baltimore, pleaded guilty this week to their participation in a racketeering conspiracy in which drugs and other contraband were smuggled inside several correctional facilities for members of the Black Guerilla Family (BGF) gang. The following defendants pleaded guilty today: Katrina Laprade, a/k/a Katrina Lyons, age 31, a correctional officer; Kenneth Parham, age 23, a BGF inmate; and
Tyrone Thompson, a/k/a Henry, age 36, a supplier of contraband.

Jermaine McFadden, a/k/a Maine, age 24, an inmate, pleaded guilty on November 5th and Teshawn Pinder, age 24, a supplier, pleaded guilty on November 4th.

The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gary D. Maynard 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 Baltimore City Detention Center (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.

Katrina Laprade, a correctional officer at BCDC, admitted that in 2012 and 2013, she helped smuggle contraband, including marijuana and tobacco, into BCDC on behalf of Stephen Loney, a BGF leader.

Kenneth Parham, a BGF member, while in pretrial custody at the BCDC from 2012 to 2013, directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers who received payments, gifts or a share of the profits. As a close associate of inmate and BGF leader Tavon White, Parham knew many correctional officers involved in contraband trafficking. Parham also helped conceal contraband from prison officials at BCDC.

Tyrone Thompson admitted that he distributed prescription pills to other co-defendants who then smuggled the pills to inmates at BCDC.

Jermaine McFadden was associated with BGF while incarcerated at BCDC in 2012 and 2013. McFadden arranged with correctional officer Katera Stevenson and another correctional officer to bring Percocets, cell phones, tobacco, marijuana, and other contraband into BCDC. He then sold the contraband to other inmates including members of BGF.

Teshawn Pinder, at the direction of a BGF inmate, picked up controlled substances and other contraband from sources outside the BCDC. Pinder held the items until she could turn them over to a correctional officer recruited by the BGF inmate to smuggle them into BCDC. Pinder also helped pay for the drugs, purchasing “Money Paks” for the BGF inmate and transmitting the numbers to him, or loading them herself onto Green Dot cards. Sometimes, she paid cash to the drug suppliers.

The defendants face a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for Parham, Pinder and Thompson on February 6, 2014, and scheduled sentencing for Laprade and McFadden on March 12, 2014.

In addition to Laprade, seven other CO’s have pleaded guilty to the racketeering enterprise:

Kimberly Dennis, age 26, of Baltimore, Maryland
Jasmin Jones, a/k/a/ J.J., age 24, of Baltimore; Taryn Kirkland, age 23, of Baltimore; Jennifer Owens, a/k/a/ O and J.O., age 31, of Randallstown; Adrena Rice, age 25, of Baltimore; Katera Stevenson, a/k/a KK, age 24, of Baltimore; and
Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie.

Three other co-defendants, inmates Tavon White, age 36, and Steven Loney, age 24, both of Baltimore, and Tyesha Mayo, age 29, of Baltimore, have also pleaded guilty.

The investigation was 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 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 – U.S. District Judge Ellen L. Hollander sentenced Larvon Langley, age 43, of Baltimore, Maryland, today to 15 years in prison, followed by four years of supervised release, for being a felon in possession of a firearm and ammunition. Judge Hollander enhanced Langley’s sentence upon finding that he is an armed career criminal based on three previous drug trafficking convictions.

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

According to his plea agreement, on April 18, 2012, law enforcement executed a search warrant at Langley’s residence and seized a .40 caliber semi-automatic pistol, 12 rounds of ammunition and heroin. Langley, a convicted felon, was prohibited by federal law from possessing a gun or ammunition.

United States Attorney Rod J. Rosenstein commended the ATF, DEA, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Ayn B. Ducao, who prosecuted the case.

New Employees Also Recognized at Courthouse Ceremony

Baltimore, Maryland - Twelve employees of the United States Attorney’s Office and four law enforcement officers were honored today with the Office’s most prestigious awards. At a ceremony held to announce the awards this morning at the U.S. Courthouse in Baltimore, the United States Attorney also welcomed new Assistant U.S. Attorneys and other employees who have joined the Office since last year.

Former United States Attorney, Maryland Court of Appeals Judge Lynne A. Battaglia served as the keynote speaker for the event. Judge Battaglia served as U.S. Attorney from 1993 to 2001.

“The recipients of these awards upheld the highest ethical and professional standards while pursuing justice with exceptional skill and dedication,” commented U.S. Attorney Rod J. Rosenstein.

“The Maryland U.S. Attorney’s Office has earned a reputation for excellence, integrity and achievement over more than two centuries,” U.S. Attorney Rosenstein added. “We are counting on our new employees to live up to that reputation as you work to promote the rule of law, punish criminals, deter crime and protect government property.”

Annual Awards

The following awards were announced for accomplishments over the past year:

Gary Jordan Award
Recipient: Joyce K. McDonald

Gary P. Jordan served with distinction for many years as an Assistant U.S. Attorney, as First Assistant from March 29, 1987 until his death on October 25, 1996, and as interim U.S. Attorney in 1993. This is an honorary award presented annually to an Assistant U.S. Attorney for exemplary performance that demonstrates the highest traditions of the office: integrity, ingenuity, dedication to public service and fairness.

Barnet D. Skolnik Award
Recipients: Robert R. Harding
Christopher J. Romano

Barnet D. (Barney) Skolnik was an Assistant U.S. Attorney who led teams that prosecuted numerous white collar criminals and corrupt public officials in the 1970s, including Vice President Spiro T. Agnew. This is an honorary award presented annually to one or more Assistant U.S. Attorneys who demonstrate outstanding professionalism, determination and creativity in a case of unusual public significance.

Employee of the Year Award
Recipient: Kathleen Rosier

The Employee of the Year Award recognizes sustained superior performance and outstanding achievements by a non-attorney employee. The award also recognizes the recipient's professionalism, dedication and comprehensive knowledge in their area of expertise.

Pete Twardowicz Award
Recipients: Michael Aiosa
Richard Henry
Daniel Salak
Dougald Thrutchley

The Pete Twardowicz Award was established in honor of Eugene P. (Pete) Twardowicz, who rendered many years of outstanding service to the U.S. Attorney’s Office as an IRS criminal investigator and a Special Investigator for this Office. This award recognizes law enforcement agents or officers for outstanding cooperation and achievement while working with the U.S. Attorney’s Office on a significant case.

Excellence in Civil Advocacy
Recipient: Joseph R. Baldwin

The U.S. Attorney’s Award for Excellence in Civil Advocacy, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding advocacy in civil litigation.

Excellence in Prosecution of Fraud
Recipients: Jefferson M. Gray
Leo J. Wise

The U.S. Attorney’s Award for Excellence in Prosecution of Fraud, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting fraud.

Excellence in Prosecution of Violent Crime
Recipient: Stefan D. Cassella
Peter M. Nothstein

The U.S. Attorney’s Award for Excellence in Prosecution of Violent Crime, established in 2007, is presented annually an Assistant U.S. Attorney for outstanding work in prosecuting violent crime.

Excellence in Prosecution of Organized Crime
Recipient: David I. Salem

The U.S. Attorney’s Award for Excellence in Prosecution of Organized Crime, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting organized criminal activity.

Excellence in Legal Support
Recipient: Michelle Wicker

The U.S. Attorney’s Award for Excellence in Legal Support, established in 2007, is presented annually to one or more non-attorney employees for outstanding work in support of the mission of the U.S. Attorney’s Office.

Outstanding Contributions to a Law Enforcement Initiative
Recipient: Rachel M. Yasser

The U.S. Attorney’s Award for Outstanding Contributions to a Law Enforcement Initiative, established in 2007, is presented annually to one or more employees for outstanding work in support of an initiative of the U.S. Attorney’s Office.

New Employees

In addition, the U.S. Attorney welcomed new employees who joined the office last year. Assistant U.S. Attorneys: Leah Bressack, Kenneth Clark, Kelly Hayes, Jakarra Jones, Scott Lemmon, Peter J. Martinez, Nicholas Mitchell, Seema Mittal, David Sharfstein, Thomas Sullivan, Thomas Windom. Support Staff: Jennifer Mills, Angela Ostrum, Ashley Tyson, Damaris Weeks.

Baltimore, Maryland – In two unrelated cases, U.S. District Judge Ellen L. Hollander today sentenced Larry James Kerfoot, age 38, of Dundalk, Maryland, and Robert Marzola, age 31, of Essex, Maryland, to 28 and 29 years in prison, respectively, each followed by lifetime supervised release, for sexually abusing a minor to produce child pornography. Judge Hollander also ordered that upon their release from prison, Kerfoot and Marzola must each 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 sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); 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 Kerfoot and Marzola’s plea agreements, in late May and early June 2012, respectively, an undercover Baltimore County detective downloaded child pornography from internet files made available by Kerfoot and Marzola from their homes.

Law enforcement officers executed a search warrant at Kerfoot’s home on June 27, 2012, and seized computers and digital media containing 19 videos and 80 images of child pornography that Kerfoot had received from the internet. Officers also seized a video Kerfoot had produced of a 12 year old girl whom he had coerced to engage in sexually explicit conduct with him on at least five occasions.

Baltimore County Police executed a search warrant at Marzola’s residence on July 19, 2012 and seized a camera, computers and digital media. Investigation revealed that between December 2011 and July 2012, Marzola sexually abused a minor male at his home to produce images of himself and the minor engaged in sexually explicit conduct. Marzola saved the images on his laptop. Marzola told the boy, who was six years old when the abuse began, not to tell anyone about their conduct, which Marzola described to the boy as a game. The images and videos that Marzola had previously produced of the boy were found on his laptop, along with 18 additional videos of children engaged in sexual conduct. According to information presented at today’s sentencing hearing, during the investigation law enforcement identified a second boy that had been sexually abused by Marzola. The second victim, who was five years old at the time of the abuse, told investigators that on at least one occasion he had witnessed the sexual abuse of the first victim, and had been abused himself. As with the first victim, Marzola told the second victim not to tell anyone about what happened.

These cases were 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.

The Marzola investigation was also part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.

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

Total of 15 Defendants Convicted in the Conspiracy

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced David Graham, age 63, of Elkton, Maryland, today to 97 months in prison, followed by three years of supervised release, for conspiracy to distribute oxycodone.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Cecil County Sheriff Barry A. Janney, Sr. and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.

According to his plea agreement between 2008 and 2010, Graham was part of a conspiracy that distributed prescription drugs in and around Cecil County, Maryland. Graham and co-conspirator Matthew Ward paid individuals to go into doctors’ offices, obtain large prescriptions for oxycodone and other pills, and then sell many of the pills they obtained to Graham and Ward. Graham and Ward would then sell the pills to individual users.

Intercepted telephone communications made clear that Graham had numerous people obtaining pills for him from doctor’s offices and pharmacies. Many of these individuals were drug addicts who would sell Graham drugs to feed their addiction. Graham was not a drug user and was engaged in the enterprise to make money.

At the time of Graham’s arrest in November, 2010, a search was conducted at his residence. Law enforcement recovered $9,120 in cash, eight cellphones and numerous prescription pills, including hundreds of oxycodone, morphine and Dilaudid pills. In addition, Graham possessed 17 firearms, including eight rifles, four shotguns, a revolver, a semi-automatic pistol and a 12 gauge.

Graham admitted that between 2008 and 2010, the co-conspirators distributed approximately 1.4 million milligrams of oxycodone.

Co-defendant Matthew Earl Ward, age 33, of Elkton, Maryland, was previously sentenced to 10 years in prison. Ward was convicted after an eight day trial of conspiracy to distribute, and possess with intent to distribute oxycodone and alprazolam. Thirteen other conspirators were also convicted and sentenced to between 18 months and eight years in prison

United States Attorney Rod J. Rosenstein commended the DEA, FBI, Cecil County Sheriff’s Office and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Joshua Kaul and Mushtaq Gunja, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – An administrator of the Silk Road website, Curtis Green, a/k/a “Flush,” and “chronicpain,” age 47, of Utah, pleaded guilty today to conspiracy to distribute and possess with attempt to distribute cocaine. In a related case, Jacob Theodore George IV, age 32, of Edgewood, Maryland, pleaded guilty on November 5, 2013, to conspiracy to distribute and possess with intent to distribute drugs, including heroin.

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

“People who believe they can commit crimes anonymously using the internet should reconsider,” said U.S. Attorney Rod J. Rosenstein.

“HSI Baltimore special agents arrested Jacob George, who was the first vendor on Silk Road selling illegal drugs to be arrested,” said ICE HSI Special Agent in Charge William Winter. “Thereafter, HSI Baltimore created and led the Baltimore Silk Road Task Force to combat the illicit activities of this digital black market website. Subsequently, Curtis Green was arrested after he was identified as an administrator and cocaine distributor on Silk Road. Last month, HSI assisted in the identification and arrest of Silk Road’s operator Ross William Ulbricht aka DPR. HSI will continue working with our domestic and international law enforcement partners to identify and arrest individuals who are conducting criminal activities by using networks and digital currency designed to provide anonymity, such as Tor and bitcoins.”

“Special Agents of the Drug Enforcement Administration are highly trained to locate narcotic traffickers and arrest them regardless of their location,” stated Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration’s Baltimore District Office. “Special Agents acting in an undercover capacity were able to locate narcotic traffickers operating in cyberspace during the course of this investigation. This sends a clear message to traffickers that even in cyberspace DEA will find you,” stated Tuggle.

According to his plea agreement, beginning in November 2012, Green worked for the creator and operator of Silk Road, Ross Ulbricht, whom Green only knew by his alias, “Dread Pirate Roberts.” Silk Road was an online, international marketplace that allowed users to anonymously buy and sell illegal drugs, false identifications, and other contraband over the Internet. Ulbricht collected a fee for each transaction on the website. Green’s responsibilities included responding to questions and complaints from buyers and sellers, resolving disputes between buyers and sellers, and investigating possible law enforcement activity on Silk Road. As part of his role as an administrator, Green had the ability to see messages Silk Road users sent to each other, to see the details of each transaction on Silk Road, and to see the accounts - including financial information - of Silk Road users, including the accounts of Ulbricht.

In September 2011, HSI Baltimore special agents initiated an investigation into the Silk Road website. Thereafter, the Baltimore Silk Road Task Force was created to address the contraband being sold on Silk Road.

Starting in April 2012, a DEA undercover agent in Maryland (the UC), began communicating with Ulbricht about selling illegal drugs on Silk Road. That agent was one of several assigned to the Baltimore Silk Road Task Force. The UC claimed to be a smuggler who specialized in moving substantial quantities of illegal drugs. In December 2012, Ulbricht set out to find a drug dealer on Silk Road who could purchase large quantities of drugs from the UC and directed his administrators, including Green, to assist. Green assisted the UC to establish contact with a buyer, who was an established seller of drugs on Silk Road (the Vendor). The UC and the Vendor negotiated a deal for one kilogram of cocaine for approximately $27,000 in Bitcoin, a digital currency that has no association with a national government, is difficult to track, and easy to move online.

Without the knowledge of either Ulbricht or the UC, Green agreed to act as a middle-man for the Vendor and take delivery of drugs. As a result, the Vendor provided Green’s address to the UC as the place to which the cocaine was to be delivered. On January 17, 2013, an undercover U.S. Postal Inspector delivered the cocaine to Green at his residence. Shortly after Green accepted delivery of the cocaine, federal agents with the HSI, DEA, U.S. Postal Inspectors and the U.S. Secret Service executed a search warrant at Green’s residence and recovered the kilogram of cocaine. U.S. Secret Service agents also conducted a forensic examination of Green’s computers and digital media seized during the search.

According to Jacob George’s plea agreement, from at least November 2011 to January 18, 2012, George sold drugs via Silk Road. George made contact with buyers via Silk Road, accepted payment electronically through Silk Road, and shipped drugs via the United States Postal Service to buyers throughout the United States and in foreign countries. The owner and operator of Silk Road, Ross William Ulbricht, collected a fee for each transaction on the website. George acquired drugs from two primary sources: he purchased some drugs, including heroin, from drug dealers in the Baltimore metropolitan area; and he purchased synthetic drugs, including methylone, from suppliers in China and had those drugs shipped to him.

Green faces a maximum sentence of 40 years in prison and George faces a maximum sentence of 20 years in prison for conspiracy to distribute and possess with intent to distribute cocaine. U.S. District Judge Catherine C. Blake scheduled sentencing for Green on February 28, 2014, at 2:00 p.m. and for George on February 20, 2014, at 9:15 a.m.

Ross Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” age 29, of San Francisco, California, has been indicted in Maryland on charges of conspiracy to distribute a controlled substance, attempted witness murder and using interstate commerce facilities in the commission of murder-for-hire. He faces a maximum of 40 years in prison for the drug distribution conspiracy; a maximum sentence of 30 years in prison for attempted witness murder; and a maximum of 10 years in prison for using interstate commerce facilities in the commission of murder-for-hire. No court appearance in Maryland has been scheduled.

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

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

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

Baltimore and Greenbelt, Maryland – Jacqualyn Sue Caldwell, age 55, of Baltimore, and Jesse Raymond Moore, Sr., age 30, of Crofton, Maryland, pleaded guilty today to conspiring to defraud a student financial aid program.

The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Steven Anderson, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General Mid-Atlantic Regional Office.

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

Caldwell was a test administrator for a company that offered cognitive tests to schools and businesses. During her employment, Caldwell worked almost exclusively as a test proctor for student admissions at the All-State Career School, a for-profit trade school located on Broening Highway in Baltimore. Moore worked as an admissions representative for All-State. Moore was paid a salary and was eligible for performance-based raises and commissions for each student that graduated.

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

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

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

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

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

Additionally, All-State admissions representative Barry Sugarman, age 63, of Owings Mills, pleaded guilty on March 13, 2013 to the conspiracy. Sugarman admitted that he also asked Caldwell to manipulate the test results to give applicants taking the test a second time a passing score, which she did. Sugarman also told prospective students to understate their income from previous years when they applied for federal aid in order to qualify for the maximum amount of Pell grants and student loans.

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

Caldwell, who pleaded guilty to a felony, faces a maximum sentence of five years in prison and a fine of $250,000 or not more than the greater of twice the pecuniary loss or gain from the fraud. Moore and Sugarman, who each pleaded guilty to a misdemeanor, face a maximum sentence of one year in prison. U.S. District Judge George L. Russell, III scheduled sentencing for Caldwell in federal court in Baltimore on February 14, 2014 at 9:30 a.m. U.S. Magistrate Judge Timothy J. Sullivan scheduled sentencing for Sugarman and Moore in federal court in Greenbelt on December 18, 2013 and January 28, 2014, respectively.

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

Baltimore, Maryland - Baltimore Police officer Ashley Roane, age 26, of Pikesville, Maryland, pleaded guilty today to extortion and aggravated identity.

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

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. The individual who the defendants believed was filing false tax returns and selling heroin was, in fact, an FBI cooperator.

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.

Roane and the government have agreed that if the Court accepts the plea agreement, a sentence of between 60 and 111 months is the appropriate disposition of the case. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for February 4, 2014 at 1:00 p.m.

Co-defendant Erica Hughes, age 26, of Pikesville, previously pleaded guilty to aggravated identity theft and is scheduled to be sentenced on January 14, 2014, at 1:00 p.m.

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 is prosecuting the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Antonio Davis, age 33, of Baltimore, today to 295 months in prison, followed by five years of supervised release, for: a robbery and drug distribution conspiracy; conspiring to possess and possessing firearms in furtherance of a drug trafficking crime and a crime of violence; 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; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.

“The Drug Enforcement Administration, working in partnership with the Baltimore Police Department, continues to actively target extreme violent offenders like Davis in order to combat the drug violence in our city,” stated Assistant Special Agent in Charge Gary Tuggle, of the Drug Enforcement Administration’s Baltimore District Office. “This investigation emphasizes the proactive work that Special Agents undertake every day in an effort to remove violent offenders from the streets of Baltimore,” added ASAC Tuggle.

According to evidence presented at his four day trial, in the Fall of 2012, the DEA and Baltimore Police Department (BPD) received information that Davis, and his co-defendants Rodney Proctor, and Sean Thornton were armed drug traffickers and members of the Black Guerilla Family (BGF) gang. According to the individual providing the information, the defendants earned money by conducting robberies and kidnappings and were active in the Penrose neighborhood of Baltimore City.

On December 12, 2012, at the direction of law enforcement, a DEA confidential source was introduced to Davis, Proctor, Thornton, and Michael Johnson. The source claimed to be a drug dealer and discussed with Davis and his co-defendants robbing his source of supply of cocaine and dividing the stolen cocaine among the robbers. On December 20, 2012, Davis, Proctor, Thornton and Johnson picked up a fifth co-defendant, Jazmen Trusty, to carry out the robbery. As Davis drove the conspirators to the location of the purported robbery, law enforcement stopped their vehicle and arrested the defendants. They seized a latex glove, two black gloves and a black mask from Davis; a stocking cap and a loaded semiautomatic handgun from Proctor, as well as masks and caps from the other co-defendants.

According to trial testimony, at the time of his arrest, Davis had only recently been released on parole, after serving a 16 year sentenced for murder. In addition, Davis had proposed kidnapping the four-year-old child of a known drug trafficker and holding the child for ransom – a plan that was still in motion until the DEA source proposed a more lucrative alternative – the drug robbery. Finally, witnesses testified that Davis discussed the robbery and murder of the DEA source and proposed dumping the body in Harford County. In fact, Davis was picked up on recording equipment, that had been installed in the car he was driving to the robbery, discussing the robbery and murder of the DEA source.

Michael Johnson, age 33, Jazmen Trusty, age 20, Rodney Proctor and Sean Thornton, both age 21, all of Baltimore, previously pleaded guilty to their participation in the conspiracy. Proctor was sentenced to 11 years in prison and Johnson was sentenced to 90 months in prison. Jazmen Trusty is scheduled to be sentencing on November 12, 2013.

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

Greenbelt, Maryland – George Nelson Smith, age 52, of Potomac, Maryland pleaded guilty today to filing a false tax return and failing to file a tax return.

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

“No matter how you disguise your income, one still has to pay taxes on it,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “As an attorney, Mr. Smith is well educated regarding his federal income tax obligations, making his actions even more egregious. Today’s plea should be a warning to others that IRS Criminal Investigation is focused on those that intentionally underreport taxable income, no matter how or what entity they may attempt to hide behind.”

According to his plea agreement, Smith is an attorney and owner of the Smith Law Firm, which specialized in litigating tort actions. Smith did not pay himself a salary, and used business funds for personal expenses. For example, on his individual tax return for 2005, which he filed on December 16, 2007, Smith stated that his income was $18,972.41, even though he knew that he used money from the law firm’s corporate account to pay for personal expenditures that were not accounted for as income on his tax return. These personal expenditures included over $4,100 to a homeowners’ association for his personal residence; over $83,000 in mortgage payments on his personal residence; and over $15,000 to a private school for his children’s education.

Smith failed to file a tax return for 2007, even though he took at least $668,000 from the law firm for personal expenses, including the purchase of a home in Potomac.

Smith will be required to pay restitution of $91,547, the total loss caused by his conduct.

Smith faces a maximum sentence of three years in prison for filing a false tax return and one year in prison for failing to file a tax return. U.S. District Judge Alexander Williams, Jr. has scheduled sentencing for January 28, 2014.

United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Nicolas A. Mitchell and Special Assistant U.S. Attorney Gregory P. Bailey, of the U.S. Department of Justice, Tax Division, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Dwayne Smiley, Sr., age 49, of Detroit, Michigan, today to seven years in prison followed by three years of supervised release for bank 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; and Washington County Sheriff Douglas W. Mullendore.

According to Smiley’s plea agreement, on December 30, 2010, Smiley drove with Donald Hays from Detroit, Michigan to western Maryland and Martinsburg, West Virginia, where they robbed the BB&T bank in the 1100 block of Winchester Avenue. Smiley drove Hays to and from the bank. Later, they divided the $1,070 stolen from the bank.

On January 6, 2011, Smiley and Hays again drove from Detroit, Michigan to western Maryland. The next day, Smiley drove Hays to and from the M&T Bank on Mill Street in Clear Spring, Maryland where they stole $3,186, and later divided the money. On January 10, 2011, Smiley drove Hays to and from the M&T Bank on Fairway Lane in Hagerstown, Maryland, where they stole $2,726, and later divided the money.

Donald Larue Hays, age 61, also of Detroit, previously pleaded guilty and is scheduled to be sentenced on November 12, 2013 at 2:00 p.m.

United States Attorney Rod J. Rosenstein praised the FBI and Washington County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Mark W. Crooks and P. Michael Cunningham, who prosecuted the case.

Fired Many Shots at Officers Serving Him With an Arrest Warrant, Wounding One Officer

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Tayvon Dobson, age 23, of Cambridge, Maryland, today to 28 years in prison followed by five years of supervised release for attempted murder of a federal officer and using a gun during the attempted murder.

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; Dorchester County State’s Attorney William H. Jones; Cambridge Police Chief Kenneth W. Malik; U.S. Marshal Johnny Hughes; Dorchester County Sheriff James W. Phillips, Jr.; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.

“Law enforcement officers put their lives on the line every day to protect us from violent criminals,” said U.S. Attorney Rod J. Rosenstein. “I am grateful to the local, state and federal agencies that brought Tayvon Dobson to justice.”

On February 29, 2012, members of the Maryland State Apprehension Team/Capital Area Regional Fugitive Task Force of the U.S. Marshals Service and the Cambridge, Maryland Police Department arrived at a residence divided into individual apartments on Hubbard Street in Cambridge to serve an arrest warrant for Dobson. The arrest warrant charged Dobson with first degree assault and other related charges.

A Task Force detective and a supervisory inspector wore official police vests with bright letters signifying “SHERIFF” or “Police US MARSHAL” across the back, along with a “Task Force” or “Police US Marshal” patch on the front. Shortly after entering one of the apartments, Dobson’s movements were heard across the hall in apartment #1. Officers shouted at Dobson to open the door. Within minutes, gunshots from apartment #1 were directed at law enforcement located outside the residence at their unmarked police vehicles. After the Task Force detective in apartment #2 realized that he could not safely escape that apartment through the hallway, he barricaded the bedroom door with a mattress and dresser.

Shots continued to ring out from apartment #1 as other officers yelled to Dobson to surrender. After several minutes of gunfire, the detective heard Dobson reload a firearm. Dobson began to shoot again. The detective was able to see into the hallway and the front door of apartment #1. Seconds later, the detective saw Dobson leave the apartment and stop in the hallway. Dobson saw the detective no more than 15 feet away and began to fire. The detective fired back while still barricaded in apartment #2. After several volleys of gunfire, the detective felt a sharp pain in his left shoulder, but continued to fire at Dobson. When Dobson left the hallway, the detective saw blood rapidly coming from his wound. The detective broke through the aprtment window, rolled out to the ground and ran to safety. He later underwent surgery.

Dobson continued to shoot at the remaining officers. Four hours after law enforcement first entered the building, Dobson finally surrendered. All of the rooms of Dobson’s residence were riddled with bullet holes. Three firearms were seized, two of which had been used to fire from inside the apartment, as well as a magazine, several rounds of live ammunition and numerous spent shell casings and projectiles.

United States Attorney Rod J. Rosenstein commended the ATF, Dorchester County State’s Attorney’s Office, Capital Area Regional Fugitive Task Force of the United States Marshals Service, Cambridge Police Department, U.S. Marshals Service, Dorchester County Sheriff’s Office and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.

Smuggled Drugs and Other Contraband for BGF Gang Members in Baltimore Correctional Facilities

Baltimore, Maryland – Kimberly Dennis, age 26, of Baltimore, Maryland pleaded guilty today to a racketeering conspiracy for smuggling drugs and other contraband for members of the Black Guerilla Family (BGF) gang inside several correctional facilities.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gary D. Maynard 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 Baltimore City Detention Center (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, Kimberly Dennis worked as a Correctional Officer (CO) at Baltimore City Detention Center (BCDC) from 2006 to 2013. She entered into personal and sexual relationships with two inmates who were members of the Black Guerilla Family (“BGF). Dennis smuggled contraband, including marijuana, tobacco and prescription pills, into BCDC on behalf of BGF inmates, who would then sell that contraband to other BCDC inmates who were members of BGF. Dennis was aware that of the inmates’ BGF affiliation and assisted in furthering the racketeering enterprise. Dennis worked with other CO’s to assist in the smuggling. Dennis obtained contraband from others, including co-defendants. Dennis was aware that other co-defendants and correctional officers also smuggled contraband.

Dennis faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for January 24, 2014.

In addition to Dennis, six other CO’s have pleaded guilty to the racketeering enterprise:

Jasmin Jones, a/k/a/ J.J., age 24, of Baltimore; Taryn Kirkland, age 23, of Baltimore; Jennifer Owens, a/k/a/ O and J.O., age 31, of Randallstown; Adrena Rice, age 25, of Baltimore; Katera Stevenson, a/k/a KK, age 24, of Baltimore; and
Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie.

Three other co-defendants, inmates Tavon White, age 36, and Steven Loney, age 24, both of Baltimore, and Tyesha Mayo, age 29, of Baltimore, have also pleaded guilty.

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 an indictment today charging Rodney Hubert, a/k/a “Noah,” age 38, of Parkville, Maryland, with sex trafficking of a minor.

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; and Baltimore County State’s Attorney Scott Shellenberger.

According to the one count indictment, Hubert paid a 19 year old associate who worked for him as a prostitute a commission for recruiting a 16 year old girl to perform prostitution for him. Hubert allegedly offered to pay the 16 year old girl $400 to take photos of her wearing lingerie in a provocative manner. The girl posed for the pictures but never received the promised payment. Hubert offered to pay an additional $1,000 to make a pornographic film. The girl told Hubert that she was only 16 years old.

According to the allegations in the indictment, from February 1 to 22, 2013, Hubert uploaded these photos onto an internet website and advertised the girl as a prostitute. He paid a driver and a security guard to travel with the girl to “outcalls,” using money she earned as a prostitute. Hubert kept a large percentage of the girl’s earnings.

Hubert faces a minimum mandatory sentence of 10 years in prison and a maximum of life in prison followed by up to lifetime of supervised release. An initial appearance has not yet been scheduled.

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

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 prosecuted the case.