District of Maryland

Baltimore, Maryland – Axway, Inc. has agreed to pay the United States $6.2 million to settle allegations under the False Claims Act that it and its predecessors provided the General Services Administration (GSA) with defective pricing information in order to obtain and maintain a GSA Multiple Award Schedule (MAS) contract that permitted them to sell software licenses and related services to federal agencies at inflated prices.

The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Inspector General Brian D. Miller of the GSA Office of the Inspector General.

“This agreement demonstrates the Department of Justice’s commitment to rooting out fraud in government procurements and protecting taxpayer dollars,” said U.S. Attorney Rod J. Rosenstein. “Companies that attempt to skirt the rules for securing government business should be on notice that they will be held accountable and will not be permitted to undermine the integrity of the procurement process.”

"Companies must provide complete and accurate pricing information during the GSA contracting process," said GSA Inspector General Brian D. Miller. "Failure to do so is cheating the government and ultimately the American taxpayers, and taxpayers deserve a better deal."

Under the MAS Program, prospective vendors agree to disclose their commercial pricing policies and practices to GSA in exchange for the opportunity to gain access to the broad federal marketplace and the ease of administration that comes from selling to hundreds of government purchasers under one central MAS contract. GSA regulations require that, during the initial contract negotiations with GSA, prospective vendors seeking a MAS contract make “current, accurate and complete” disclosures of the standard and non-standard discounts they offer to commercial customers. GSA relies on the accuracy of these disclosures in order to negotiate fair pricing for government purchasers. Additionally, after the MAS contract is awarded, regulations require that MAS Program vendors disclose to GSA any changes in their commercial pricing practices, including new discounts that are offered to commercial customers after the MAS contract is in place.

According to the Settlement Agreement, on October 3, 2001, GSA awarded an MAS contract to Valicert, Inc. for the sale of software licenses and related services. Valicert subsequently merged in 2003 with Tumbleweed Communications Corporation, which in turn merged with Axway in 2009. GSA approved the novation of the MAS contract to these successors. From 2001 to December 31, 2011, numerous federal agencies purchased products and services from Valicert, Tumbleweed and Axway based on the MAS contract pricing.

This settlement resolves allegations that during the initial negotiation of the contract, Valicert knowingly provided GSA with commercial pricing information that was not current, accurate and complete. As a result, the United States alleges that the MAS contract that was awarded to Valicert contained pricing that was less advantageous to the government than would have been negotiated had accurate and complete disclosures been made. In addition, the United States alleges that in 2007, when the MAS contract was renewed, Tumbleweed also failed to provide GSA with accurate and complete commercial pricing disclosures. Finally, the United States contends that after being novated onto the MAS contract, Tumbleweed and Axway failed to comply with the price reduction clause of the contract. As a result, the United States alleges that the MAS contract contained inflated prices, and that numerous government agencies relied on these inflated prices and overpaid for their purchases of software and related services.

The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain for themselves a portion of the government’s recovery. The civil lawsuit was filed in the District of Maryland by Kenneth Marcus, who is a former employee of Tumbleweed. The case is captioned United States ex rel. Kenneth Marcus v. Tumbleweed Communications Corp., DKC-08-1006. As part of today’s resolution, Mr. Marcus will receive $1,178,000 from the settlement.

The settlement was the result of an investigation by the U.S. Attorney’s Office for the District of Maryland and GSA Office of Inspector General, with assistance from the Defense Criminal Investigative Service and the Naval Criminal Investigative Service. The case was handled by Assistant U.S. Attorneys Michael A. DiPietro and Jason D. Medinger.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Franklin Harold Barney, age 31, of Laurel, Maryland, today to 121 months in prison, followed by five years of supervised release, for conspiracy to distribute crack cocaine, powder cocaine, heroin, and phencyclidine (PCP). Judge Bredar also entered an order requiring that Barney forfeit three handguns and $105,880 in cash seized during the investigation.

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; Anne Arundel County Police Chief Kevin Davis; Howard County Police Chief William McMahon; Chief Mark A. Magaw of the Prince George’s County Police Department; and Chief Richard McLaughlin of the Laurel Police Department.

According to Barney’s plea agreement, during July, 2010, Barney was identified as a large-scale narcotics trafficker in the Anne Arundel, Howard and Prince George’s County areas. Based on that information, from August 2010 through May 2011, a confidential source and an undercover officer made a series of crack cocaine purchases from both Barney and Joseph Padro Hill. During one of these transactions, the source met Barney at an apartment in Laurel, where Barney was observed to be cooking crack cocaine, readying it for distribution. John Anderson, whose apartment it was, was also present.

Beginning in April, 2011, law enforcement obtained authorization to wiretap the phones used by Barney, Hill and Anderson. Based on those intercepted communications, surveillance of Barney’s activities, and search warrants executed at Barney’s home, Barney and the other members of the conspiracy were responsible for distributing at least 280 grams of crack cocaine, at least five kilograms of powder cocaine, and at least one kilogram each of heroin and PCP.

Joseph Padro Hill, age 31, and John Anderson, age 72, both of Laurel, were previously sentenced to two years in prison and two months in prison, respectively.

United States Attorney Rod J. Rosenstein praised the DEA, FBI Anne Arundel, Howard and Prince George’s County Police Departments and the Laurel Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Brooke Carey, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Corrupt Officer Protected Drug Dealer, Filed False Police Reports, Planned Armed Robbery and Sold Stolen Property

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Baltimore Police officer Kendell Richburg, age 36, of Baltimore, today to eight years in prison, followed by four years of supervised release, for conspiracy to distribute heroin and possession of a firearm in furtherance of drug trafficking. Judge Bennett ordered that as a special condition 10 months of his supervised release be served in home detention.

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

According to his plea agreement, from June 2011 through October 2012, Richburg, who was assigned to the Violent Crimes Impact Section in the Northwestern District of the Baltimore Police Department, conspired with a street level drug trafficker to distribute heroin. Richburg’s co-conspirator was a registered confidential informant with the Baltimore Police Department. The co-conspirator sold drugs in the Pimlico area of Northwest Baltimore. Richburg provided information to the co-conspirator that permitted him to sell drugs without interference from law enforcement, telling the co-conspirator on a near daily basis when it was “safe” to go out to sell drugs. In return, the co-conspirator provided Richburg with information about his drug customers so that Richburg could arrest them. Richburg paid his co-conspirator with official Baltimore Police Department funds for providing the information that resulted in the arrest of the drug customers. Richburg sometimes gave the co-conspirator back some of the drugs seized from the co-conspirator’s customers so that the co-conspirator could re-sell the drugs. Richburg falsified the arrest documents to eliminate the co-conspirator’s involvement, often falsely stating that Richburg had witnessed a drug transaction.

In early 2012, the FBI received information that Richburg was trafficking in stolen property, including iPhones, iPads and other electronics, and obtained a wiretap of Richburg’s cellphone. Intercepted conversations confirmed that Richburg was trafficking in stolen property and led to the discovery of Richburg’s drug trafficking.

Richburg and the co-conspirator were also overheard discussing the “planting” of evidence, and arranging an armed robbery. For example, on September 2, 2012, Richburg and the co-conspirator discussed having the co-conspirator plant a gun in an unlicensed cab, then having Richburg pull over and arrest the cab driver on a gun violation and pay the co-conspirator $350 to $400 as an informant fee for recovering a firearm. On October 9, 2012, Richburg, armed with his service weapon, searched a person, without probable cause, and located a large amount of cash. The victim told Richburg that he had just received his paycheck. Richburg contacted his co-conspirator and arranged for the co-conspirator, whom Richburg knew was armed, to rob the victim, identifying where the victim was located.

Richburg has been detained since his arrest on January 18, 2013.

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

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Michael Dale Irwin, age 27, of Rising Sun, Maryland, today to 210 months in prison, followed by lifetime supervised release, for the sexual exploitation of a minor to produce child pornography. Judge Bennett also ordered that upon his release from prison, Irwin must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police (MSP); and Cecil County State’s Attorney Ellis Rollins.

According to Irwin’s plea agreement, on March 12, 2013, a witness reported to Maryland State Police that Irwin had sent an image to her cellular phone documenting his sexual abuse of a prepubescent minor female. The witness contacted MSP when she recognized Irwin in the image. Although the messages were set to “auto delete” and were no longer on the witness’ phone, with the consent of the witness MSP began monitoring calls and text messages between Irwin and the witness and directed all communication by the witness with Irwin. After Irwin sent the witness a video depicting a six to eight year old female engaged in sexually explicit conduct, troopers arrested Irwin at his place of employment and seized his phone, which had been used to text and call the witness. MSP recovered the images and video documenting Irwin’s sexual abuse of a prepubescent minor female and obtained the sexually explicit text messages that he had previously sent to the witness describing in graphic detail the sexual acts he performed on the child. HSI special agents in Baltimore conducted the forensic examination on Irwin’s phone and HSI’s victim witness specialist provided substantial assistance to the victims and their families.

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police and the Cecil County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who prosecuted the case.

Founded the Gang and Directed Gang Activities While Incarcerated

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Andre Ricardo Roach, a/k/a “Squeaky,” “Redrum,” and “Rum,” age 35, of Prince George’s County, Maryland, today to 30 years in prison, followed by three years of supervised release, after Roach pleaded guilty to conspiracy to participate in a racketeering enterprise, the South Side Brims (SSB) Bloods gang. Roach admits that in 2005, he founded the SSB gang, which operates from Western Maryland to the lower Eastern Shore. This case is the culmination of a long-term joint investigation by federal, state and local authorities throughout Maryland.

The guilty plea and sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Secretary Gary Maynard of the Maryland Department of Public Safety and Correctional Services; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Frederick County Sheriff Charles A. “Chuck” Jenkins; Captain Thomas J. Ledwell, Chief of the Frederick Police Department; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Chief William J. McMahon of the Howard County Police Department; Anne Arundel County Police Chief Kevin Davis; Annapolis Police Chief Michael A. Pristoop; Chief Ross C. Buzzuro of the Ocean City Police Department; Chief Michael Phillips of the Fruitland Police Department; Garrett County Sheriff Robert E. Corley; Allegany County Sheriff Craig Robertson; Cumberland Police Chief Charles H. Hinnant; Washington County Sheriff Douglas Mullendore; Dorchester County Sheriff James W. Phillips; Queen Anne’s County Sheriff R. Gary Hofmann III; Wicomico County Sheriff Michael A. Lewis; Worcester County Sheriff Reggie T. Mason, Sr.; Salisbury Police Chief Barbara Duncan; Chief Mark A. Magaw of the Prince George’s County Police Department; Wicomico County State’s Attorney Matthew Maciarello; Frederick County State’s Attorney J. Charles Smith; Baltimore City State’s Attorney Gregg L. Bernstein; Washington County State’s Attorney Charles P. Strong, Jr.; Garrett County State’s Attorney Lisa Thayer Welch; Allegany County State’s Attorney Michael O. Twigg; and Queen Anne’s County State’s Attorney Lance G. Richardson.

According to Roach’s plea agreement, in 2005, a member of a Bloods subgroup or set called the Fruit Town Brims, was incarcerated in the Maryland Division of Corrections. This Bloods member recruited Roach to join this sub-set. Roach, who was also incarcerated, moved up in the gang hierarchy and in June 2005, was granted permission to start a new set in Maryland called the South Side Brims. It was common for Roach to send out open letters to the entire set through Monique Marie Hagler, a/k/a “Platinum,” “Plat,” and “Diamond,” who operated as the First Lady of the SSBs Enterprise in Maryland. In these written communications, Roach directed the activities of the SSBs Enterprise and served as the leader/organizer and founder of the Enterprise.

As First Lady, Hagler took direction from Roach and sent out orders and commands to the SSB members. Hagler operated as the official record keeper, and maintained and disseminated lists identifying members of the organization. During the course of the conspiracy, Roach coordinated regularly with Hagler and others to maintain the illegal activities, promote the business of the enterprise and maintain discipline and order within the SSBs. For example, Hagler sent communications to gang members demanding payment of dues used to support members of the SSB enterprise and their activities, including criminal defense lawyers, firearms, bail and to assist gang members recently released from prison to help them get on their feet.

Roach admitted that during the course of the conspiracy he and other SSBs conspired to distribute controlled substances, including cocaine, heroin, marijuana, ecstacy, and diverted pills, to customers of the SSBs in Frederick County, Howard County, Anne Arundel County and Queen Anne County, and other locations in Maryland. Roach and his co-conspirators used cellular telephones to conduct the narcotics trafficking. The amount of controlled substances reasonably foreseeable to Roach during the conspiracy is between five and 15 kilograms of cocaine.

During the course of the conspiracy, Roach, along with other SSB members and associates, participated in the planning and commission of several violent acts in furtherance of the SSBs enterprise, including a murder, several attempted murders, home invasion robberies, witness intimidation, violence against gang members who violated gang rules and other acts of violence.

Thirty four SSB members and associates, including Roach and Monique Hagler, age 29, of Suitland, Maryland, have pleaded guilty to their roles in the conspiracy. Hagler is awaiting sentencing, but 30 defendants have been sentenced, with sentences ranging from time served to 30 years in prison.

United States Attorney Rosenstein praised the FBI; Maryland State Police; ATF; Delaware State Police; Baltimore City, Baltimore County, Cumberland, Frederick, Howard County, Prince George’s County, Salisbury, Fruitland, Annapolis, Anne Arundel County and Ocean City Police Departments; Allegany County Sheriff’s Office; Allegany County Criminal Investigations; the Frederick, Washington, Queen Anne’s, Dorchester, Wicomico and Worcester County Sheriffs Offices; and the State’s Attorney’s Offices of Baltimore City, Frederick, Wicomico, Washington, Allegany, Garrett and Queen Anne’s Counties for their investigation of this Organized Crime Drug Enforcement Task Force case. Mr. Rosenstein also recognized the Maryland Department of Public Safety and Correctional Services and the Drug Enforcement Administration for their assistance in the investigation.

Mr. Rosenstein thanked Assistant U.S. Attorneys Andrea L. Smith and A. David Copperthite, who are prosecuting this case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Davon Robinson, age 35, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for possession with intent to distribute heroin.

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

According to Robinson’s plea agreement, on October 30, 2012, Baltimore Police officers observed several traffic violations by a red Lexus and initiated a traffic stop. One officer approached the driver’s side of the car and saw the driver, later identified as Robinson, with an open bag in his lap. The bag contained a number of clear plastic bags with gel caps containing a tan powder, which the officer believed to be heroin. Robinson quickly shoved the bag to his feet and tried to kick it under the seat. The officer instructed Robinson to get out of the car. Robinson tried to run away, but the officers grabbed him and restrained him. Robinson was searched and officers recovered a plastic back with four gel caps of heroin and $809 in cash. The car was also searched and officers recovered the plastic bag which contained 850 gel caps of heroin. The total weight of the heroin was approximately 174 grams.

Robinson admits that he is a career offender based on three previous drug convictions

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

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Taji Hart, age 32, of Baltimore, today to 10 years in prison followed by three years of supervised release for 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; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.

According to his plea agreement, on July 27, 2012, after receiving information about a fight involving a man with a handgun who was driving a vehicle, police officers saw the vehicle in the 2200 block of West Fayette Street in Baltimore. The officers saw Hart drive the vehicle away. Officers stopped the vehicle in the 2100 block of West Saratoga Street and seized a loaded .40 caliber Glock handgun and a plastic bag with nine gel capsules containing heroin from the vehicle. Hart admits that he is a career offender. He has five previous drug convictions.

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

Baltimore, Maryland – Ronald J. Dalessandro, age 49, of Frederick, Maryland pleaded guilty today to two counts of selling drug paraphernalia and filing a false income tax return.

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 Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations.

According to his plea agreement, Dalessandro owned and operated The Needle Beast, a company through which he marketed and sold hypodermic needles and syringes on the internet to individual consumers around the country, who sought to enhance their physiques by self-administering anabolic steroids by injection. Dalessandro advised his customers on the most popular sizes ordered by his previous customers for self-administering anabolic steroids by injection. Dalessandro advertised his company on other websites focused on bodybuilding, anabolic steroids and other performance-enhancing drugs.

Dalessandro displayed on his websites numerous disclaimers stating that the products he sold were “for medical, industrial, or vetrinary [sic] use only.” He used these disclaimers to avoid regulatory and law enforcement scrutiny, knowing that his customers intended to use the syringes and needles to inject themselves with body-enhancing substances, including anabolic steroids.

From the sale of needles and syringes through The Needle Beast website, Dalessandro received annual revenues of at least $68,432.93, $105,313.84 and $133.257.78 in 2006, 2007, and 2008, respectively. However, Dalessandro filed false income tax returns for these years which reported substantially less income than he earned, in that he did not report all of the income earned from the illicit sales of syringes and needles.

Dalessandro faces a maximum sentence of three years in prison followed by a year of supervised release for each of the offenses and a fine of $250,000. U.S. District Judge George L. Russell III scheduled sentencing for January 31, 2014 at 11:30 a.m.

United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation and FDA, Office of Criminal Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Robert K. Hur and Kelly O'Connell Hayes, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Michael Bowman, age 61, of Baltimore, today to 33 months in prison, followed by three years of supervised release, for wire fraud in connection with a scheme to use personal identifying information of individual bank accounts holders to defraud banks. Bowman also paid restitution of $35,283.70.

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; and Inspector General William E. Johnson, Jr. of the Maryland Department of Human Resources.

According to his plea agreement, Bowman was a supervisor for the Maryland Department of Social Services. In September 2011, Bowman’s work email account was flagged for suspicious activity. An email contained an attachment which listed numerous names, bank account numbers and other personal identifying information. Bowman admitted to law enforcement agents that he was lonely and had sought companionship online. Bowman met a man named “Steve” on a networking site in October 2010, who claimed to live in London, to be recently single and to be interested in Bowman. Steve promised to move in with Bowman in Baltimore if Bowman helped provide him with money, including funds to purportedly repair a house that Steve’s father left him upon his father’s death.

During the fraud scheme, which extended from October 2010 to September 2011, Steve also introduced Bowman to his friend “David.” Bowman never met Steve or David in person. Bowman was sent account numbers and personal identifying information of bank account holders which Bowman used to impersonate the individual victims. Once Bowman had gained access to the individual victim’s accounts, Bowman obtained account balance information, allowing the co-conspirators to link the individual victims’ account to accounts Bowman opened at banks. The co-conspirators then initiated wire transfers from the victim accounts, through Bowman’s accounts, to third party accounts controlled by Steve, David and others.

Over the course of the fraud scheme, Bowman accessed at least 88 individual accounts, resulting in an intended loss totaling $513,942.96. The only actual loss to a bank from the scheme was in the amount of $35,283.70.

Bowman also wired approximately $10,000 of his own money to Steve and David in small increments. He also participated in a scheme to traffic in counterfeit MoneyGram money orders, whereby he purchased a $1 MoneyGram money order at a grocery store, scanned it and emailed the scanned image to David. Bowman then received approximately 100 forged MoneyGram money orders in the mail, all in the amount of $997. At David’s request, Bowman mailed some of those money orders to a co-conspirator. MoneyGram suffered no actual loss from the scheme.

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 Maryland Department of Human Resources - OIG for their work in the investigation. Mr. Rosenstein praised Special Assistant U.S. Attorney Paul K. Nitze, who prosecuted the case.

Businesses that Break Up Cash Transactions to Avoid Paper Trail Face Prosecution

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Amefika Gray, age 39, of Baltimore, today to 30 months in prison followed by two years of supervised release for structuring bank deposits totaling over $2 million over a two year period to avoid bank reporting requirements. Judge Hollander also ordered that Gray forfeit $800,000, a Mercedes Benz vehicle and three residential properties located in Baltimore.

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 Commissioner Anthony W. Batts of the Baltimore Police Department.

“Federal law requires large currency transactions to be reported in order to deter money laundering, tax evasion and other criminal conduct,” said U.S. Attorney Rod J. Rosenstein. “Businesses that break up their cash deposits to avoid currency reporting requirements face federal criminal prosecution.”

According to his plea, Gray owns Network Auto Group, a car dealership operating at 2631 Gwynns Falls Parkway in Baltimore. Between January 15, 2010 and April 28, 2012, Gray made regular deposits of $10,000 or just under $10,000 into his personal and business bank accounts, including at least 25 instances in which Gray made multiple deposits under $10,000 the same day into the same bank or into different banks. The amount of the structured deposits over this two year period totaled $2,017,205.23. Gray deposited the money in such amounts because he knew that the banks were required to report to the Internal Revenue Service all deposits over $10,000.

The government presented evidence to the court that the cash that Gray structured was the proceeds of drug trafficking activity.

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 IRS – Criminal Investigation and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Evan T. Shea, who prosecuted the case.

Five Co-Conspirators Previously Pleaded Guilty

Baltimore, Maryland – Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 47, of Riva, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a mortgage fraud scheme which resulted in losses of over $4.8 million.

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; Special Agent in Charge Brian Murphy of the United States Secret Service Baltimore Field Office; Special Agent in Charge Michael P. Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.

According to her plea agreement, in 2002, Kreamer’s Maryland license to issue title insurance policies was revoked after she was convicted of theft for fraudulently endorsing checks at a title attorney’s office where she worked. Despite her conviction, from 2007 until January 2010, Kreamer worked at Sanford Title Services LLC located in Columbia, Maryland, and had significant day-to-day responsibility for the operation of Sanford Title. From June 2008 to January 2010, Kreamer and co-conspirators Niesha Williams, Rhonda Scott, Emeka Udeze and Demetrius Peete arranged various aspects of real estate transactions so they could siphon profits out of the transaction for themselves. They used many fraudulent techniques to further the conspiracy, including: short sales in which the property was sold for a higher price than was represented to the lien holder and the seller; sales of properties not owned by the seller at the time of settlement; real estate transactions in which there were multiple sales of the same property at the same time; real estate transactions in which the buyer’s financial status was misrepresented to lenders; transactions in which the seller and/or buyer were shown different settlement statements and the conspirators used the difference between the figures in the two statements to enrich themselves.

In addition, Kreamer admitted that she personally facilitated deals between her co-conspirators, prepared false settlement statements, improperly disbursed funds contrary to the settlement and lender approved disbursements sheets, failed to pay off mortgage loans in accordance with the settlement documents, directed funds to entities created by herself and her co-conspirators, received proceeds of fraudulent transactions, and improperly issued title insurance policies.

Kreamer admitted that the scheme involved at least 30 victims, including lenders, sellers and buyers of real estate, a title insurance company and lien holders. She further agreed that her offense involved sophisticated means and her abuse of a position of trust at Sanford Title. The reasonably foreseeable loss associated with Kreamer’s conduct is at least $4.8 million.

Kreamer faces a maximum penalty of 30 years in prison and a $1 million fine for conspiring to commit wire fraud. U.S. District Judge James K. Bredar scheduled sentencing for January 22, 2014, at 4:30 p.m.

Niesha Williams, age 34, of Fort Washington, Maryland; Rhonda Scott, age 52, of Oxon Hill, Maryland; Emeka Udeze, age 38, of Bowie, Maryland; Demetrius Peete, age 46, of Manassas, Virginia; and Gregory Green, age 49, of Waldorf, Maryland, each previously pleaded guilty to their roles in the fraud and are awaiting sentencing.

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

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, Department of Justice - OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Judson T. Mihok, who are prosecuting the case.

Baltimore, Maryland – A federal grand jury returned an indictment today charging four defendants with conspiring to steal merchandise using stolen personal identifying information of medical patients:

Denise W. Wearing, age 36, of Philadelphia, Pennsylvania; Michelle Jernell Cole, age 27, of Baltimore; Chanell Y. Cole, age 30, of Owings Mills, Maryland; and
Yolana Gail Welch, age 39, of Philadelphia.

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

Michelle Cole worked at two medical practices located in Laurel, Columbia and Glen Burnie, Maryland. Her sister, Chanell Cole, worked at a doctor’s office in Baltimore. According to the three count indictment, from January 2010 to April 2013, the Cole sisters used their employment to obtain personal identifying information of over 46 patients, which the defendants used to take over and control the victims’ credit accounts at Macy’s and Bloomingdales. The defendants allegedly used the fraudulently accessed accounts to obtain jewelry, clothing, furniture, televisions and other merchandise and had the fraudulently obtained merchandise delivered to their own residences and to residences of friends and family members. They defendants kept the merchandise for their personal use, sold the items for cash, or returned the items in exchange for gift cards and sold gift cards for cash.

The indictment alleges that during the course of the scheme, the defendants defrauded over 100 victims, obtaining over $750,000 of merchandise using the victims’ accounts.

All of the defendants face a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. The initial appearances of the defendants are not yet 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.

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

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

Baltimore, Maryland – A federal grand jury returned an indictment today charging four defendants with conspiring to steal merchandise using stolen personal identifying information of medical patients:

Denise W. Wearing, age 36, of Philadelphia, Pennsylvania; Michelle Jernell Cole, age 27, of Baltimore; Chanell Y. Cole, age 30, of Owings Mills, Maryland; and
Yolana Gail Welch, age 39, of Philadelphia.

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

Michelle Cole worked at two medical practices located in Laurel, Columbia and Glen Burnie, Maryland. Her sister, Chanell Cole, worked at a doctor’s office in Baltimore. According to the three count indictment, from January 2010 to April 2013, the Cole sisters used their employment to obtain personal identifying information of over 46 patients, which the defendants used to take over and control the victims’ credit accounts at Macy’s and Bloomingdales. The defendants allegedly used the fraudulently accessed accounts to obtain jewelry, clothing, furniture, televisions and other merchandise and had the fraudulently obtained merchandise delivered to their own residences and to residences of friends and family members. They defendants kept the merchandise for their personal use, sold the items for cash, or returned the items in exchange for gift cards and sold gift cards for cash.

The indictment alleges that during the course of the scheme, the defendants defrauded over 100 victims, obtaining over $750,000 of merchandise using the victims’ accounts.

All of the defendants face a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. The initial appearances of the defendants are not yet 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.

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

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

Robbed An Armored Car Employee

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Alton May, age 49, of Washington, D.C., today to 25 years in prison, followed by five years of supervised release, for the robbery of an armored car employee. Judge Titus enhanced May’s sentence upon finding that he is a career offender based on previous drug and assault convictions.

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 Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Cathy L. Lanier of the Metropolitan Police Department.

According to May’s plea agreement, on May 3, 2011, he and a co-defendant, both armed with handguns, robbed an armored car employee at a convenience store in Glenarden, Maryland. The employee was at the convenience store to refill the ATM machine located in the store. The employee gave May and his co-defendant the money bag and one of the robbers also stole the employee’s handgun. The robbers fled on foot to an apartment complex behind the store where they got into May’s car and proceeded to his residence. On the way, they took the money from the bag and threw the bag in a dumpster. Once they arrived at May’s residence they located and destroyed a GPS tracking device which was in the money. May and his co-defendant threw the cash, three handguns and two baseball caps used in the robbery onto the roof of the building, then jumped out of the window. The GPS device allowed law enforcement to track the money from the convenience store to the dumpster and to May’s residence, where they recovered the cash, guns and hats from the roof. One of the guns recovered was the one stolen from the armored car employee. Officers also recovered pieces of the broken GPS tracker in May’s apartment and an individual in the area identified May as one of the people he saw jump out of the window of May’s apartment.

May initially fled to New York, but was arrested in Montgomery County on November 7, 2011, when he fled from officers who were attempting to perform a traffic stop on the car May was driving.

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

Funds Will Hire School Resource Officers and Critical Law Enforcement Positions

Baltimore, Maryland – The U.S. Department of Justice Office of Community Oriented Policing Services (COPS), today announced funding awards for the District of Maryland.

The grantees and amount awarded include:

Baltimore Police Department awarded $1,250,000 to hire 10 officers; Town of Bladensburg awarded $125,000 to hire one officer; Hagerstown Police Department awarded $250,000 to hire two officers; Seat Pleasant Police Department awarded $87,344 to hire one officer.

“In the wake of past tragedies, it's clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school,” said Attorney General Eric Holder. “These critical investments represent the Justice Department's latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people. Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children.”

“Keeping our children safe from violent crime, drugs and gangs is of critical importance,” said U.S. Attorney Rod J. Rosenstein. “These grants will help provide communities with the resources to improve school safety.”

Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions. More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions.

“The COPS Office is pleased to assist local law enforcement agencies throughout the country address their most critical public safety issues,” said Joshua Ederheimer, Acting Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”

The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides the salary and benefits for officer and deputy hires for three years.

Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans. There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer. School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.

For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.

Robbery Committed While Defendant Was on Supervised Release for a Previous Bank Robbery

Baltimore, Maryland – U.S. District Judge U.S. District Judge J. Frederick Motz sentenced Ashref Abil Bannaga, age 32, of Gaithersburg, Maryland today to five years in prison, followed by five years of supervised release, for the December 7, 2011, armed bank robbery of the Capitol One Bank in Frederick, Maryland. At the time of the robbery, Bannaga was on federal supervised release after serving a sentence of 70 months for a 2006 Virginia 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 Captain Thomas J. Ledwell, Chief of the Frederick Police Department.

According to his plea agreement, on December 7, 2011, Bannaga entered the Capitol One Bank located at 1305 W. 7th Street in Frederick, Maryland, with a mask and a hood covering his face. Bannaga, brandishing what appeared to be a firearm, ordered the employees and customers into one general area, then demanded that the branch manager open the safe. When the branch manager could not open the safe, Bannaga, still brandishing the gun, opened a teller drawer, stole approximately $5,995 and left the bank.

A witness walked into the bank as Bannaga was exiting. Bannaga showed the witness his gun and warned the witness not to do anything “stupid.” The witness saw Bannaga get into a black truck and reported the partial front tag, the fact that there were no rear tags, and a plate description to law enforcement, who located the truck in an adjacent parking lot. The rear tag of the truck was hanging on by one screw, as though it had just been reattached.

Investigation revealed that the truck had been rented by Bannaga the day before. Bannaga was employed at the time of the robbery to do construction work at the supermarket located in the same strip mall as the bank. Law enforcement recovered the clothing, mask, hat, and gloves worn by the robber, as well as most of the bank money, and the gun (a replica BB-type gun) on the construction site where Bannaga worked. Bannaga’s DNA was on the mask and the hat used during the robbery.

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

Criminal Will Only Stop Committing Crimes When He is in Prison

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Lenny Cain, age 36, of Baltimore, Maryland, late yesterday to 160 months in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute oxycodone, and for possession with intent to distribute oxycodone. Cain previously has been convicted of handgun crimes, cocaine distribution, assault, conspiracy and identity fraud. He was released from federal prison in February 2010 and returned almost immediately to a life of crime, although he was supervised by a federal probation officer under the authority of a federal judge. Cain is expected to have a hearing on the violation of his supervised release before U.S. District Judge Richard D. Bennett, but no date has been set for the hearing.

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 Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Anne Arundel County Police Chief Kevin Davis; and Howard County Police Chief William McMahon.

“Lenny Cain is the sort of criminal who has demonstrated that he will only stop committing crimes while he is in prison, so we need to keep him there,” said U.S. Attorney Rod J. Rosenstein.

“The sentence that Mr. Cain received today should send a strong message to other individuals engaged in the illicit distribution of prescription drugs,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “Individuals like Cain, who engage in the distribution of illicit prescription drugs, are drug dealers; just like the drug dealers you see on the street. This type of illegal conduct will not be tolerated and will be investigated vigorously by our DEA Tactical Diversion Squad, ” stated Tuggle.

According to the testimony at his two week trial, beginning in 2010, Cain and the other leaders of the conspiracy, including Joseph Church, recruited women working in doctors’ offices to assist them in obtaining and verifying fraudulent prescriptions for oxycodone, also known as Oxycontin and Percocet. The leaders also recruited individuals, called “runners,” to fill the fraudulent prescriptions at pharmacies in the Baltimore area. Evidence presented at trial showed that Cain’s fingerprints were on at least 14 fraudulent prescriptions. Cain was also captured on surveillance video at two pharmacies – one where he attempted to get a fraudulent prescription filled in the name of another individual; and another where he followed one of the “runners,” who was attempting to fill a fraudulent prescription, into the pharmacy.

Joseph Church, age 41, of Baltimore, previously pleaded guilty to his role in the conspiracy and was sentenced to 51 months in prison. Co-conspirators Bruce Breland, age 56, and Charles Fell, age 27, both of Baltimore, were sentenced to 27 months and to two years in prison, respectively. Four other defendants have pleaded guilty and were sentenced to between seven and 60 months in prison.

United States Attorney Rod J. Rosenstein praised the DEA, HHS Office of Inspector General and the Anne Arundel and Howard County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark, Clinton J. Fuchs and Mushtaq Gunja, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Harold Michael Nicol, age 53, of Cumberland, Maryland, today to 10 years in prison, followed by lifetime supervised release, for possessing child pornography. Judge Garbis ordered that upon his release from prison, Nicol 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). In 1997, Nicol was convicted of a sex offense in the Allegany County Circuit Court.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cumberland Police Chief Charles H. Hinnant; and Allegany County State’s Attorney Michael O. Twigg.

According to the plea agreement, in November 2011, during an undercover internet investigation into a file sharing program, an undercover officer downloaded four files containing images of prepubescent minor engaging in sexually explicit conduct with adults. Additional investigation determined that the files were being made available for download by Nicol from his home computer. A search warrant was subsequently executed at Nicol’s residence in Cumberland. Computers and computer storage media were seized, along with a .270 caliber rifle and a .50 caliber muzzle loader rifle. Because of his previous felony conviction, Nicol is prohibited from possessing firearms. Nicol’s computers and storage media were forensically examined and revealed that Nicol possessed over 400 images of child pornography.

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

This investigation was 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, the Maryland State Police, Cumberland Police Department and the Allegany County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Greenbelt, Maryland – Nelly Dadson, age 23, of Baltimore, pleaded guilty yesterday to conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes.

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

“Protecting postal customers from mail theft and identity theft is a priority for the Postal Inspection Service,” said Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division. “This case demonstrates Postal Inspectors' commitment to that mission.”

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

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

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

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

Dadson faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. Dadson has agreed to pay forfeiture and restitution of at least $251,745.52. U.S. District Judge Paul W. Grimm scheduled her sentencing for December 16, 2013, at 1:00 p.m.

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

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

Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Jerry Lamont Bush, age 35, of Fort Washington, Maryland, today to 12 years in prison, followed by five years of supervised release, for conspiracy to distribute heroin and possession of a firearm by a convicted felon.

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

Bush admitted that from August 2008 through January 2009, he sold approximately 180 grams of heroin to individuals in Maryland. He was detained by law enforcement on January 30, 2009, after he was seen selling heroin. On four occasions between July 30 and September 11, 2009, Bush sold a total of 14 grams of heroin to a law enforcement confidential source.

On September 19, 2009, law enforcement patrolling in the vicinity of a nightclub in Temple Hills, Maryland, observed the butt-end of a gun protruding from underneath the driver’s seat of a vehicle that Bush had been seen operating. Members of law enforcement saw Bush approach the vehicle and use a remote key to unlock the car. Bush got into the front passenger seat and another individual got into the driver’s seat. Law enforcement detained Bush and the other individual and searched the car. A loaded .357 caliber revolver was recovered from under the driver’s seat and a .9mm pistol was found in the glove compartment. On October 14, 2009, Bush was arrested by law enforcement as he left his apartment. During a search of Bush following his arrest law enforcement recovered two baggies containing 5.6 grams of heroin from his mouth. A search of Bush’s apartment recovered approximately 55.6 grams of heroin, among other items.

Bush had two previous felony drug convictions and was prohibited from possessing a gun.

United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun Rao, Mara Zusman Greenberg and Deborah A. Johnston, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – Ahmad Qaabid Abdul Rahim, age 37, of College Park, Maryland pleaded guilty today to transportation of stolen property in connecting with a scheme to steal waste vegetable oil.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief James W. Johnson of the Baltimore County Police Department.

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

Rahim admits that from May through October 2010, he and a friend stole WVO from restaurants in Maryland and Virginia and sold it to out-of-state oil companies. Rahim used a flatbed tow truck that he owned, along with a tank and mechanical pump to collect the WVO, which he stored at a warehouse in Baltimore County. At the end of October, Rahim developed a legitimate WVO collection company, which he called “Waste Not, Incorporated.” Rahim purchased a vacuum truck, hired salesmen to assist him, and eventually obtained 650 contracts to collect WVO from restaurants and other eateries. From June through October, 2011, Rahim personally drove the vacuum truck to each location and collected the WVO.

According to his plea agreement, in October 2011, Rahim and a driver that he hired began to use the vacuum truck to steal WVO from restaurants for which Waste Not did not have a collection contract, in addition to collecting the WVO from its legitimate customers. To disguise the thefts, Rahim altered Waste Not’s master contract list and the driver’s manifest to include the restaurant locations from which he was stealing WVO. Rahim took both his legitimate WVO and the stolen WVO to a collection facility located at 1701 Leland Avenue in Middle River, run by Rahim’s friend. Rahim’s friend then sold the WVO to fuel companies in Pennsylvania and elsewhere.

From January 18, 2012 through September 20, 2012, Waste Not received approximately $98,887, for the sale of 94,178 gallons of stolen WVO.
Rahim faces a maximum sentence of 10 years in for transportation of stolen goods. U.S. District Judge J. Frederick Motz has scheduled sentencing for December 3, 2013 at 2:00 p.m.

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

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Ida Mae Weathers, a/k/a Ida Mae Snipes, age 49, of Baltimore, today to 259 months in prison, followed by five years of supervised release, for conspiracy, bank fraud and aggravated identity theft in connection with a scheme to steal wallets from women’s purses, remove the cash, credit cards and driver’s licenses and use the credit cards to make purchases at nearby stores. Judge Garbis ordered that Weathers pay restitution of $151,180.50.

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.

Beginning in May 2007, Weathers led 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. Weathers, an experienced pickpocket, would linger in women’s restrooms and steal the wallets from purses hung on the hooks in the stalls. Often, 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. Other conspirators 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 other co-conspirators, including Crystal Barner, 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.

During the course of the conspiracy, Weathers and her co-conspirators obtained goods, services and extensions of credit with attempted losses of between $200,000 and $400,000 and actual losses of $151,180.50. More than 50 financial institutions and individuals were victimized by the scheme.
Nicole Roles, age 43, Sharon Curtis, age 32 , Crystal Barner, age 28, Maureen Brown Little, age 39, and Nefeteria Jamison, age 32, all of Baltimore, pleaded guilty to their roles in the scheme and are scheduled to be sentenced on September 27, 2013, October 2, 2013, October 8, 2013, October 9, 2013, and November 25, 2013, 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 thanked the U.S. Secret Service, Maryland Transportation Authority Police, Baltimore County Police Department, Baltimore City Police Department, as well as the Maryland State Police, Atlantic City, New Jersey Police Department and the University of Maryland Police for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.

Victims Were Sexually and Physically Assaulted, and Forced to Work as Prostitutes, in Maryland, New York and Elsewhere

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Jeremy Naughton, a/k/a “Jerms Black,” age 32, of Brooklyn, New York, to 36 years in prison, followed by five years of supervised release, for conspiring to commit sex trafficking, four counts of sex trafficking, six counts of transporting an individual to engage in prostitution and using a gun during the conspiracy to commit sex trafficking.

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 J. Thomas Manger of the Montgomery County Police Department.

“Jeremy Naughton held young women against their will, and used violence, sexual abuse and threats to compel them to work for him as prostitutes,” said U.S. Attorney Rod J. Rosenstein.

According to evidence presented at the 14 day trial, from January 2009 to the fall of 2010, Naughton and his long-time friend, Charles Anderson, a/k/a “Chuck Corners,” targeted female prostitutes between the ages of 19 and 28 who were working sometimes without a pimp, to force and coerce the women to work for them. They contacted women who posted ads on websites for prostitution services and arranged to meet them in hotel rooms, masquerading as either a prospective client or a generous pimp. Naughton and Anderson then assaulted and threatened the victims with a handgun and/or physical violence to force them to work for them. They stole the women’s cell phones, identification, room keys and personal computers to prevent them from communicating with others, and controlled the victims through physical assault, humiliation, confinement and threats. Naughton transported the women between Maryland, New York and other states to engage in prostitution.

For example, in the summer of 2009, Naughton enticed a woman to come to an apartment in Brooklyn, where he imprisoned her and invited others to sexually abuse her. In September of 2009, Naughton forced open the door of a woman’s hotel room, stole her cell phone and identification, and detained her while demanding that she work for him as a prostitute. In October 2009 in his apartment, Naughton displayed a handgun, struck a woman, choked her and forced her to perform sex. Between October 25 and November 11, 2009, Naughton drove two women from his apartment to Oxon Hill where he demanded that they rent hotel rooms for commercial sex. In December of 2009, Naughton violently assaulted a woman in a hotel in Montgomery County, Maryland. On February 8, 2010, Naughton forced a woman from her hotel room in Silver Spring, Maryland, forced her to stay with him at the Brooklyn apartment and sexually abused her before attempting to prostitute her from a hotel in Long Island, New York. In June 2010, Naughton intimidated another woman by snapping the neck of her dog with his hands. In September of 2010, Naughton entered another victim’s hotel room, demanded that she work for him, stole her cell phone and money, and transported her to his apartment, where he forced her to perform oral sex.

Naughton shared his apartment in Brooklyn with Anderson. According to Anderson’s plea agreement, the victims stayed in the Naughton’s room, where Anderson sometimes overheard Naughton physically assaulting them and forcing them to perform sex acts. In the spring of 2010, Anderson agreed to monitor the victims while Naughton traveled for approximately six hours in search of an additional prostitute in Maryland. Anderson helped Naughton locate victims who had escaped. He also knew that Naughton had a .9mm pistol and a larger sub-machine gun in the apartment, along with corresponding ammunition.

Charles Anderson, a/k/a “Chuck Corners,” a/k/a “Yowzer,” age 26, of Brooklyn, New York, previously pleaded guilty to conspiracy to commit sex trafficking and is scheduled to be sentenced on October 15, 2013 at 9:00 a.m.

The case was investigated by the Maryland Child Exploitation Task Force, with assistance from the Maryland Human Trafficking Task Force, which was formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members of both task forces include federal, state and local law enforcement. The Maryland Human Trafficking Task Force also includes 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’s Baltimore, New York, and Las Vegas, Nevada offices and the Montgomery County Police Department for their work in the investigation and thanked the Montgomery County State’s Attorney’s Office, the Kings County (Brooklyn, NY) District Attorney’s Office, the Department of Homeland Security and the New York City Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Mark W. Crooks and Paul E. Budlow, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Amjad Israr, age 46, a Pakistani citizen living in Cheshire, Connecticut, today to 15 months in prison, followed by three years of supervised release, after Israr pleaded guilty to conspiring to bribe an immigration official in order to obtain lawful permanent residence (green card) and employment authorization documents.

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); District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department.

According to his plea agreement, Israr operated multiple convenience stores in Connecticut, called Krauszer’s. Israr entered the United States in 1994 using another person’s Pakistani passport that he had purchased in Pakistan and has no legal immigration status in the United States.

Beginning in December 2011, Israr began working with a Maryland attorney who told Israr that he knew an immigration official who was willing, in return for payments of money, to provide immigration documents, which would permit Israr to legally live and work in the United States. Unbeknownst to the attorney and Israr, the attorney’s immigration contact was actually an undercover agent posing as a public official.

Israr agreed to pay the attorney approximately $30,000 for the immigration documents, knowing that a substantial portion of the payment would be provided to the purported USCIS official in exchange for the immigration documents. Israr and the attorney met with the undercover agent on August 25, 2011. During the meeting, Israr’s fingerprints and photos were taken by the undercover agent in order to prepare the immigration documents for Israr. On one of the immigration forms later submitted to the undercover agent by the attorney, Israr falsely represented that he was married to a U.S. citizen, and the wife’s name and personal identification information provided on the form were all fake. In January 2012, Israr received a green card issued by the undercover agent, which he used to enter the United States on February 4, April 12 and July 17, 2012.

United States Attorney Rod J. Rosenstein praised HSI Baltimore, USCIS Baltimore District Office and the Baltimore County Police Department 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.

Baltimore, Maryland - Jamar Marvin Simmons, a/k/a “Mar,” age 30, of Baltimore, pleaded guilty today to sex trafficking of a minor, in connection with a prostitution business he ran with co-defendant Franklin Roosevelt Coit, a/k/a “Frank,” and “Nitty,” age 34, also of Baltimore. Coit pleaded guilty to the same charge, on August 1, 2013. Simmons was a Baltimore City firefighter at the time of the offense.

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

According to their plea agreements, Simmons and Coit established and operated a brothel in Baltimore City, first at 2218 Madison Avenue and subsequently at a warehouse located at 208 Madison Avenue. Simmons and Coit also rented hotel rooms and another dwelling in Maryland that were also used for prostitution. Simmons and Coit falsely advertised positions online for exotic dancing and an escort service to recruit females, including at least one minor female, from inside and outside the state of Maryland and arranged to transport the women from various locations outside Maryland, including 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 unusually vulnerable.

Simmons and Coit took sexually explicit photographs of the females they recruited, used a computer to post the photographs on the “escort” section of an online advertising website, and listed telephone numbers on the website where the females could be reached to schedule a “date,” or a commercial sex act. Simmons set the pricing for the commercial sex acts and instructed the females on how to set “dates” over the telephone, and how to avoid detection by law enforcement. Simmons and Coit collected and shared the cash proceeds of the prostitution business and used a firearm and ammunition to protect the prostitution business and its cash proceeds.

Simmons and Coit face a mandatory minimum sentence of 10 years in prison and a maximum of life in prison for sex trafficking of a minor. U.S. District Judge George L. Russell III has scheduled sentencing for Simmons on December 13, 2013 at 2:00 p.m. and for Coit on November 1, 2013 at 10:00 a.m.

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

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

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

Baltimore, Maryland – A federal grand jury has returned an indictment today charging Vaqar Ahmad Choudry, age 42, of Germantown, Maryland, with distribution of oxycodone and enticement of a minor to engage in sexual activity.

The indictment 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; and Washington County Sheriff Douglas Mullendore.

According to the indictment and a related criminal complaint, Choudry is a dentist who owns Hagerstown Dental Center, located at 301 East Antietam Street in Hagerstown. The criminal complaint alleges that Choudy provided a cooperating source with an illicit prescription for oxycodone, in exchange for the source’s assistance in arranging a meeting with a fictional minor child at a hotel in Hagerstown.

According to the criminal complaint, in May 2013, the Washington County Narcotics Task Force (WCNTF) received complaints alleging that Choudry was writing prescriptions for pain medication without medical justification. WCNTF officers initiated an investigation and in early September 2013, law enforcement learned that Choudry told a confidential source that he would like to have sex with a prepubescent girl. Choudry asked the source to find him a girl with whom he could have sex. On September 6, 2012, Choudry provided the confidential source with a prescription for 15 percocet pills, in exchange for the source arranging a meeting with a minor female. At the direction of WCNTF agents, the confidential source arranged a meeting with Choudry and a fictional girl at a Hagerstown motel on September 12, 2013. Choudry was arrested when he arrived for the meeting.

Choudry faces a maximum sentence of 20 years in prison for the drug charge, and a mandatory minimum of 10 years and a maximum of life in prison for enticement of a minor. A detention hearing was held earlier today in U.S. District Court in Baltimore before U.S. Magistrate Judge Timothy Sullivan, who ordered the Choudry remain detained. No other court appearance has 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 DEA, Washington County Sheriff’s Office and Washington County Narcotics Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter J. Martinez, who is prosecuting the case.

Continued to Practice After Her License Was Suspended in 2005

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Rosemary McDowall, age 59, of Silver Spring, Maryland, today to six months of home detention as part of 18 months probation, for health care fraud. Judge Titus also ordered McDowall to pay restitution of $151,404.73.

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

According to her plea agreement, in 1996, McDowall, a licensed social worker, signed a contract to become a participating provider with Blue Cross Blues Shield of Maryland (BCBS). As a participating provider, McDowall was entitled to accept payment directly from BCBS for services rendered. Under the terms of her contract, McDowall was obligated to notify BCBS if she lost her license to practice as a social worker.

In 2005, McDowall’s license to practice as a social worker was suspended by the Maryland State Board of Social Work Examiners. McDowall failed to report to BCBS that her license to practice was suspended, as was required under her contract, and she continued to see patients and caused claims to be submitted to BCBS. In 2008, still unaware that McDowall’s license had been suspended, BCBS terminated McDowall as a participating provider, but permitted her to continue to be a non-participating provider with BCBS. BCBS participating providers send claims to, and are paid directly by, BCBS. Patients of BCBS non-participating providers must pay the provider directly and the patients are reimbursed by BCBS the allowed amount of their claim. Despite the fact that her license to practice social work had been suspended, McDowall continued to submit claim forms to BCBS for the patients she treated. BCBS reimbursed McDowall’s patients the allowed amount, and McDowall collected her allowed fees from the patient.

In 2010, BCBS learned that McDowall had not been licensed to practice social work since 2005 and stopped paying all claims submitted by McDowall or BCBS members who had seen McDowall for treatment. McDowall admitted that fraudulent claims submitted during the scheme total between $120,000 and $200,000.

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Mara Zusman Greenberg and Kristi N. O’Malley, who prosecuted the case.

Baltimore, Maryland - Michael D. Hayden, Jr., age 41, of Tilghman Island, Maryland, was arrested yesterday on charges of witness tampering and retaliation in connection with an investigation of felony Lacey Act violations related to the illegal harvesting of striped bass from the Chesapeake Bay.

The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; Regional Special Agent in Charge Honora Gordon of the U.S. Fish and Wildlife Service, Office of Law Enforcement; and Joseph P. Gill, Secretary of the Maryland Department of Natural Resources.

“Stealing striped bass and intimidating witnesses are crimes against our natural resources and against the citizens of Maryland,” said Department of Natural Resources Secretary Joseph P. Gill. “We are grateful for the partnership of law enforcement agencies and we thank our residents for coming forward and providing information to help us protect the public trust.”

According to the affidavit filed in support of the criminal complaint, Hayden is a commercial fisherman, licensed in the state of Maryland and operates commercial fishing vessels on the Chesapeake Bay. During an investigation of the illegal harvesting of striped bass from the Chesapeake Bay, agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, and the Maryland Natural Resources Police learned that Hayden allegedly attempted to manipulate some witnesses’ testimony while trying to prevent the testimony of others. The criminal complaint alleges that in at least one incident, Hayden threatened to retaliate against a potential witness he believed to be cooperating with investigators.

If convicted, Hayden faces a maximum sentence of 20 years in prison on each of four counts of witness tampering and witness retaliation. Hayden is scheduled to have an initial appearance in U.S. District Court in Baltimore today at 3:00 p.m.

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.

Mr. Rosenstein and Mr. Dreher thanked the Maryland Department of Natural Resources Police and the United States Fish and Wildlife Service for their work in the investigation and the United States Marshals Service for executing the arrest warrant. The case is being jointly prosecuted by the U.S. Attorney’s Office for the District of Maryland and the Environmental Crimes Section of the United States Department of Justice.

“Cautionary Tale for Government Employees Who Work at Home”

Greenbelt, Maryland – Jack Raymond Kimble, Jr., age 40, of Sykesville, Maryland pleaded guilty today to using false documents in a matter of the U.S. government.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael T. Monroe of the Naval Criminal Investigative Service (NCIS), Washington Field Office.

“Supervisors who are obligated to certify electronic timesheets of subordinates who work outside the office often trust the employees to record the time spent doing their jobs,” said U.S. Attorney Rod J. Rosenstein. “This case is a cautionary tale for government employees who work at home and are trusted to self-report their working hours.”

According to his plea agreement, from 2009 to February 2012, Kimble worked as a civilian employee for the U.S. Navy in the Continuity of Operations Program (COOP) at the Office of Naval Intelligence (ONI) in Suitland, Maryland. Kimble oversaw and directed the ONI COOP and Disaster Recovery Plans. He assisted the ONI director and deputy with planning and implementing new technologies that affected ONI commands.

Kimble regularly did not come in to his office in Suitland on Mondays and Fridays. His supervisors often did not know where Kimble was. They directed Kimble to use the Navy’s web-based time and attendance system to calculate leave balances accurately. Kimble often called or emailed coworkers and told them he would not be at work, but failed to enter that information into the time and attendance system.

In the spring of 2011, the NCIS began investigating Kimble’s work hours and requested documentation of his working hours. In April 2011, Kimble gave false documents to investigators which claimed that: he personally conducted two tests of communication systems when in fact the tests were done by another individual; and falsified the minutes of three meetings reflecting his attendance when in fact he was not present at the meetings.

Matching up the times that Kimble’s whereabouts were unknown, plus reimbursements for government travel when Kimble did not show up when he was supposed to be working off-site, from the beginning of 2009 to February 2012, Kimble was paid $52,822.09 to which he was not entitled.

Kimble faces a maximum sentence of five years in prison and a fine of $250,000. Kimble has agreed to pay restitution of $52,822.09. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for January 6, 2014 at 3:00 p.m.

United States Attorney Rod J. Rosenstein praised the NCIS for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant U.S. Attorney Molly Thebes, who are prosecuting the case.

Greenbelt, Maryland - A federal grand jury has indicted Issa Wasco Koroma, age 61, of Springdale, Maryland; Rodger George Gurdon, age 42, of Waldorf, Maryland; and Daniel Mark Wilkerson, age 39, of Waldorf, Maryland on charges arising from a conspiracy to steal prescription drugs from two federal military hospitals. The indictment was returned yesterday.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid Atlantic Field Office; and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations.

“Protecting the legitimate pharmaceutical supply chain is an FDA priority,” said SAIC Antoinette V. Henry. “The integrity of the drug supply is safeguarded by protections imposed at every level of a drug's distribution. Once drugs are removed from this closed system, there can be no guarantee that the product is safe, effective or even that it is what it purports to be. This could threaten the health of future patients who rely on these drugs.”

The five count indictment alleges that Koroma and Gurdon were pharmacy technicians at Walter Reed National Military Medical Center and Fort Belvoir Community Hospital, respectively, where they had access to medications stored at the hospitals’ pharmacies. From January to June 2013, Koroma stole Norditropin and Botox from Walter Reed, which he sold to Gurdon. Gurdon also stole Norditropin from Fort Belvoir. Gurdon sold these stolen prescription drugs to Wilkerson.

The indictment seeks forfeiture of at least $1.3 million, the value of drugs stolen from the pharmacies.

The defendants face a maximum sentence of five years in prison for the conspiracy. Koroma also faces a maximum sentence of 10 years in prison on each of four counts of theft of medical products. Wilkerson and Koroma are scheduled for their initial appearance in federal court in Greenbelt on September 20, 2013 at 3:30 p.m. Gurdon’s initial appearance has not 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 DCIS and FDA-OCI for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Paul Nitze and Assistant United States Attorney Mara Zusman Greenberg, who are prosecuting the case.

Defendants Received $7 Million from USDA for Food Stamps Allegedly Traded for Cash

Baltimore, Maryland - A federal grand jury has indicted nine retail store owners or operators on federal charges of food stamp fraud and wire fraud in connection with schemes to illegally redeem food stamp benefits in exchange for cash. The indictments allege the retailers received almost $7 million in federal payments for transactions in which they did not provide any food, a fraud scheme commonly known as “food stamp trafficking.” Stores allegedly split the proceeds with food stamp recipients. The indictments were returned last week and unsealed today. Federal agents arrested the defendants and executed search warrants at the stores and related locations this morning.

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

“Taxpayers fund the food stamp program to put food on the tables of needy recipients, not to put money in the pockets of greedy criminals,” said U.S. Attorney Rod J. Rosenstein. “Food producers and distributors benefit when food stamp funds are used to buy food, and honest storeowners work hard to earn a profit by actually selling food. People who play by the rules deserve to know that criminals who defraud them will be held accountable.”

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

Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers must bill the government only in return for providing approved food items.

The indictments allege that the defendants exchanged EBT benefits for cash, in violation of the food stamp program rules. The indictments allege that the defendants typically paid half the value of the EBT benefits in cash. To avoid detection, the defendants often debited the funds from the card in multiple transactions over a period of hours or days. As a result of unlawful cash transactions, the defendants obtained more than $6,898,000 in EBT deposits for transactions in which the stores did not provide food.

According to the indictments, the defendants listed below owned and/or operated stores in Baltimore that were authorized to accept SNAP. The defendants received instruction regarding the requirements and regulations of the food stamp program, including that only eligible food items could be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.

Abdullah Aljaradi, age 51, of Baltimore; Second Obama Express and D&M Deli and Grocery, 901 Harlem Avenue, Suite A and B, respectively. From October 2010 through July 2013, Aljaradi allegedly obtained more than $2 million in payments for food sales that never occurred.

Dae Cho, age 66; and
Hyung Cho, age 40, both of Catonsville; K&S Food Market, 3910 W. Belvedere Avenue. From November 2010 through July 2013, Dae Cho and her son, Hyung Cho, allegedly obtained more than $1.4 million in in payments for food sales that never occurred.

Abdo Mohamed Nagi, age 54, of Baltimore; New York Deli and Grocery 1207 West Baltimore Street. From February 2011 through May 2013, Nagi allegedly obtained more than $1.2 million in payments for food sales that never occurred.

Kim Man Chu, age 38, of Rosedale, Maryland; Long Hing Grocery Store, 1131 Greenmount Avenue. From October 2010 through July 2013, Chu allegedly obtained more than $750,000 in payments for food sales that never occurred.

Amara Cisse, age 50, and
Fanta Keita, age 45, both of Windsor Mill, Maryland; Simbo Food Mart, 2103 West Pratt Street. From November 2010 through May 2013, Cisse, and his wife Keita, allegedly obtained more than $600,000 in payments for food sales that never occurred.

Jung Kim, age 51, of Ellicott City, Maryland; C&C Market, 4752 Park Heights Avenue. From November 2010 through April 2013, Kim allegedly obtained more than $600,000 in payments for food sales that never occurred.

John Cunningham, age 54, of Baltimore; Cunningham’s Amoco, 4419 Park Heights Avenue. From December 2012 through July 2013, Cunningham allegedly obtained more than $348,000 in payments for food sales that never occurred.

The defendants all face a maximum sentence of 20 years in prison for each count of wire fraud. Jung Kim, Dae Cho and Hyung Cho also face a maximum of 20 years in prison for food stamp fraud. Aljaradi, Nagi, Chu, Cisse, Keita and Cunningham face a maximum of five years in prison for food stamp fraud. The defendants are expected to have initial appearances later today in U.S. District Court in Baltimore.

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

United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kathleen O. Gavin, Peter M. Nothstein, Leo J. Wise and Judson T. Mihok, who are prosecuting these cases.

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

Jorge Enrique Moreno-Aguilar, aka “Flaco,” and “Castigato,”, age 20, of District Heights, Maryland, Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 25, of District Heights, Maryland, and
Melvin Marquez-Sanchez, aka “Demente,” age 20, formerly of New York.

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

“Today’s indictment is a significant disruption to the illegal operations of MS-13 in Maryland,” said HSI Special Agent in Charge William Winter. “The members of MS-13 spread violence and fear wherever they exist and prey on innocent people, displaying a shocking disregard for human life. HSI will continue to aggressively work with our local, state and federal law enforcement partners in the state of Maryland to target violent transnational gang members who threaten the safety of our communities.”

“Gang investigators from the Prince George’s County Police Department, Montgomery County Police Department, and the Homeland Security Investigations Gang Unit collaborated to develop the identification of these suspects, which led to their arrest and indictment,” stated Prince George’s County Police Chief Mark Magaw. “Today’s indictment is the result of the highly effective partnership that exists among the gang investigators who continue their relentless attack on gang activity in our region.”

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

The four count indictment alleges that the defendants were members and associates of MS-13. Between January and March 2013 the defendants targeted an individual believed to be affiliated with the rival 18th Street gang. According to the indictment, the defendants obtained photos of the victim, and planned the murder of the victim. Moreno-Aguilar and Ortiz-Orellana possessed a gun to be used for the murder. On March 12, 2013, Moreno-Aguilar and Ortiz-Orellana went to Capital Heights, Maryland, found and shot the victim multiple times, killing him. They fled and disposed of the gun.

All three defendants face a maximum sentence of 10 years in prison for conspiring to commit murder in aid of racketeering. Moreno-Aguilar and Ortiz-Orellana also face a maximum sentence of life in prison for murder in aid of racketeering; murder resulting in the use of a gun; and using a firearm during a crime of violence.

Moreno-Aguilar and Ortiz-Orellana are currently in state custody on related state charges. Marquez-Sanchez is currently in custody of immigration authorities. The defendants are expected to have their initial appearances in federal court in Greenbelt on these federal charges within the next couple weeks.

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

United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County and Montgomery County Police Departments and Prince George’s and Montgomery Counties State’s Attorney=s Offices for their work in the investigation and proceedings. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau and Kevin Rosenberg, a Trial Attorney with the Justice Department’s Organized Crime and Gang Section, who are prosecuting this Organized Crime and Drug Enforcement Task Force case.

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Anthony K. Mastrogiovanni, 30, of Crofton, MD, today to 25 years in prison, followed by lifetime supervised release, for the sexual exploitation of minors to produce child pornography. Judge Motz also ordered that upon his release from prison, Mastrogiovanni 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; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

According to filed court documents and proceedings, between 2006 and 2012, Mastrogiovanni was a U.S. Navy reservist who sexually exploited more than 30 male juveniles, ranging from 9 to 16 years of age, in Maryland and Louisiana in order to produce child pornography. During that time period, Mastrogiovanni met and befriended his victims through his involvement in civic organizations or his military affiliation. Mastrogiovanni captured sexually explicit video of the victims on cameras hidden in his residences in Louisiana and Maryland.

Mastrogiovanni has been in federal custody since he was arrested by Inspectors of the United States Postal Inspection Service in Las Vegas, Nevada, on July 19, 2012. A search of his Las Vegas hotel room recovered external hard drives containing over 30,000 images of child pornography, including video of his juvenile victims. That same day, federal agents searched Mastrogiovanni’s apartment in Crofton, MD, where they discovered a hidden video camera and video transmitting equipment as well as digital media containing additional child pornography.

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

United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service for its work in the investigation and thanked the Air Force Office of Special Investigations, Naval Criminal Investigative Service, and FBI's Maryland Child Exploitation Taskforce for their assistance. Mr. Rosenstein thanked Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney P. Michael Cunningham, who are prosecuting the case.

Greenbelt, Maryland – A federal grand jury indicted William S. Gazafi, age 44, of Lusby, Maryland, yesterday on six counts of sexually exploiting a minor to produce child pornography.

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; and Brigadier General Kevin J. Jacobsen, Commander Air Force Office of Special Investigations.

According to the indictment and criminal complaint, on August 15, 2013, Gazafi engaged in a chat on a website dedicated to incest discussions with an undercover officer. During the chat, Gazafi discussed his sexual interest in children and advised that he had been drugging and molesting several children, including an infant. During the chat, Gazafi allegedly sent seven images to the undercover officer, three of which were child pornography he claimed he created. The FBI identified Gazafi and he was arrested carrying multiple digital media items. A forensic examination of those items revealed videos and images that Gazafi produced of children engaged in sexually explicit conduct. These images and videos included one child as young as five months old. The images also depict children bound and handcuffed while sleeping. Gazafi is a non-commissioned officer in the U.S. Air Force working at Andrews Air Force Base.

Gazafi faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release. Gafazi was arrested on the criminal complaint on September 3, 2013 and remains detained. Gazafi is expected to have his initial appearance on the indictment in federal court in Greenbelt early next week.

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

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

United States Attorney Rod J. Rosenstein commended the FBI, Air Force Office of Special Investigations, Calvert County Sheriff's Office and Calvert County State's Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Thomas Sullivan, who are prosecuting the case.

Greenbelt, Maryland – A federal grand jury has returned five indictments charging the owners of companies with bribing a General Services Administration (GSA) official to obtain contracts to provide painting and other maintenance services at federal facilities. All the indictments were filed under seal and the last one was unsealed yesterday upon the arrest of the defendant.

The individuals charged in the indictments are:

Carl Roberts, age 48, of Clinton, Maryland; Ronald Wilkinson, age 60, of Brandywine, Maryland; Robert W. Hales, a/k/a Bobby Hales, age 52, of Nanjemoy, Maryland; Darold Patterson, age 72, of Deerwood, Maryland; and
Daryl Kitchen, age 59, of Upper Marlboro, Maryland.

The Roberts indictment was returned on July 15, 2013; the Wilkinson and Hales indictments were returned on August 12, 2013; and the Patterson and Kitchen indictments were returned on August 26, 2013.

The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Inspector General Brian D. Miller, General Services Administration, Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

GSA Inspector General Brian D. Miller said, “We will continue to pursue contractors who line their own pockets by bribing corrupt officials at the expense of the American taxpayers.”

According to the indictments, Roberts owned four general construction and moving companies that he operated out of his residence in Clinton; Wilkinson owned a painting company located in Brandywine; Hales owned and operated two painting companies located in Nanjemoy; Patterson was a co-owner and operator of a general contracting company located in Rockville, Maryland; and Kitchen owned a general contracting company located in Upper Marlboro.

Each indictment alleges that the defendants paid bribes to a building manager who at the time was cooperating with the government, in exchange for the building manager awarding GSA service contracts to the defendants’ companies. GSA building managers were authorized to retain private contractors to complete maintenance projects on behalf of GSA and were further authorized to pay for maintenance projects that cost $3,000 or less using their government issued GSA credit cards. According to the indictments, each of the contracts awarded to the defendants either cost less than $3,000, or were charged by two separate invoices in order to keep the cost under $3,000.

Specifically, the indictments allege that: Roberts paid bribes totaling $1,300 in exchange for six contracts to Roberts’ companies, for which he was paid $8,724; Wilkinson paid bribes totaling $650 in exchange for two contracts, for which Wilkinson was paid $3,075; Hales paid bribes totaling $400 in exchange for two jobs, for which Hales was paid $3,300; that Patterson paid bribes totaling $1,800 in exchange for two contracts for which Patterson was paid $5,635; and that Kitchen paid bribes totaling $950 in exchange for four contracts for which Kitchen was paid $6,522.67.

The defendants face a maximum sentence of 15 years in prison for bribery. Roberts had an initial appearance yesterday. Hales, Wilkinson and Kitchen had initial appearances on September 5, 2013 and Patterson had an initial appearance on September 6, 2013. All of the defendants were released under the supervision of U.S. Pretrial Services.

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

A sixth contractor, Andre Michael Lipford, age 43, of Washington, D.C., previously pleaded guilty to paying $750 in bribes in exchange for two jobs for his company, for which Lipford was paid $6,200. Lipford was sentenced to five months in prison, followed by five months of home detention as part of one year supervised release.

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

United States Attorney Rod J. Rosenstein thanked GSA Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Kristi N. O’Malley and Kelly O’Connell Hayes, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. 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, late yesterday to 235 months in prison followed by five years of supervised release for conspiring to transport and entice females to travel interstate for prostitution and sex trafficking by force and fraud. Judge Quarles further imposed a special condition that upon the completion of his sentence, Fuertes must cooperate with immigration authorities regarding deportation proceedings.

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

“Today's sentencing represents another successful HSI investigation worked jointly with our local law enforcement partners that led to the breakup of a prostitution scheme uncovered in Maryland,” said HSI Baltimore Special Agent in Charge William Winter. “The defendants not only exploited women for personal profit, they also used violence, coercion and intimidation. HSI will continue to use its resources and work closely with other law enforcement agencies to stop these types of criminal enterprises that are operating in our communities.”

According to evidence presented during his two week trial, since at least March 2008 through November 2010, Fuertes and co-defendant German de Jesus Ventura, 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; threatened to use violence against competitor pimps; and sought to intimidate others who assisted his prostitutes. Fuertes knew of and financially benefitted from Ventura’s actions.

German de Jesus Ventura, age 35, a citizen of El Salvador and an illegal alien residing in Capitol Heights, Maryland, was also convicted at trial and faces a maximum sentence of five years in prison for the conspiracy count; a mandatory minimum of 15 years in prison to a maximum of life in prison for the sex trafficking count; a maximum of life in prison for possessing a gun in furtherance of sex trafficking; and 10 years in prison each for transporting individuals to engage in prostitution and for enticement. Ventura is scheduled to be sentenced on October 1, 2013 at 1:00 p.m.

Jose Antonio Reyes-Maradiaga, age 30, of Annapolis; and Isidro Jiminez-Sanchez and Wibert Alejandro Herrera-Aranda, both age 34 and from 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.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Henry Ramos- Agustin, age 37, a Guatemalan citizen illegally residing in Cambridge, Maryland, today to 42 months in prison followed by one year of supervised release for conspiring to sell fraudulent identification documents and aggravated identity theft. Judge Bennett sentenced Antonio Abraham Cruz-Cruz, age 28, a Mexican citizen illegally residing in Adelphi, Maryland, yesterday to four years in prison followed by one year of supervised release for the same offenses. Judge Bennett further imposed a special condition that both defendants, upon completion of their sentences, be surrendered to immigration authorities for deportation proceedings.

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

“Document fraud poses a threat to national security and puts the security of our communities at risk because it creates a vulnerability that may enable terrorists, criminals and illegal aliens to gain entry to and remain in the United States,” said HSI Baltimore Special Agent in Charge William Winter. “This investigation resulted in the arrest and indictment of a document mill leader and co-conspirator operating out of Maryland. Homeland Security Investigations will move aggressively to investigate and bring to justice those who potentially compromise the integrity of America's legal immigration system.”

According to their pleas and a stipulation at Cruz-Cruz’s sentencing hearing, from October 2011 through March, 2013, Cruz-Cruz manufactured at least 2,000 permanent resident cards, social security cards and driver’s licenses, which he offered for sale, or had Ramos-Agustin and others sell, to individuals illegally present in the United States. These documents were offered for sale through word of mouth and the distribution of business cards which appeared to be offering other services, such as painting or automobile repairs, but were actually used for obtaining customers for the scheme. Orders were generally received by email or text message which included a picture and the biographical information the customer wanted on the cards. Salesmen such as Ramos-Agustin provided the photographs and personal information to Cruz-Cruz, who manufactured the requested fake documents. The completed documents were returned to Ramos-Agustin or other document vendors who then delivered them to the customer and obtained payment.

United States Attorney Rod J. Rosenstein praised HSI Baltimore and HSI Resident Agent in Charge Ocean City for their work in the investigation and thanked the Anne Arundel County Police Department and Baltimore County Police Department for their assistance in the case. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Joevaughn Butler, age 33, of Laurel, Maryland, today to 152 months in prison followed by five years of supervised release for possession with intent to distribute cocaine, heroin and crack cocaine. Judge Bredar enhanced Butler’s sentence upon finding that he is a career offender/ armed career criminal based on three previous drug convictions. Judge Bredar also ordered that Butler forfeit $235,499 in cash and two 9 millimeter handguns recovered during a search of his residence.

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; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief Cathy L. Lanier of the Metropolitan Police Department.

According to Butler’s plea agreement, Butler was arrested on September 23, 2011, shortly after leaving an apartment in the Laurel area of Anne Arundel County, Maryland. Butler was wanted on two outstanding arrest warrants issued by Washington, D.C. Superior Court. Butler was searched and law enforcement recovered: 52 ziplock baggies of heroin and a larger plastic bag containing additional heroin; 14 pink ziplock baggies of crack cocaine and a larger plastic bag containing additional crack cocaine; a key to the apartment from which he was observed leaving; and $150 cash.

Later that day, a search warrant was obtained for the apartment and law enforcement recovered: powder cocaine, crack cocaine, and heroin; two 9 millimeter handguns; and $229,679 in cash, all from a closet in the master bathroom. Recovered from the apartment’s living room was $5,670 in cash and an electronic money counter.

United States Attorney Rod J. Rosenstein commended the FBI, DEA and the Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Brooke Carey, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Tasleem Ekun, age 36, of Sunny Isles Beach, Florida, today to two years in prison followed by one year of supervised release for bank fraud and aggravated identity theft.

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

According to his plea agreement, from January to October 2011, Ekun fraudulently used another individual’s Discover credit card to purchase gold coins online. While investigating a drug trafficking organization, FBI agents overheard Ekun talking with co-defendant Roy Clay on the phone about a scheme to fraudulently purchase between $70,000 and $120,000 of gold and silver coins online and have them shipped, via U.S. Postal Service, to locations in Baltimore.

Following his conviction on drug trafficking charges, Judge Blake sentenced Roy Lee Clay, age 47, of Baltimore, on August 27, 2013 to life in prison, for conspiracy to distribute and possess with intent to distribute heroin, enhancing Clay’s sentence based upon two previous drug trafficking convictions. The government has moved to dismiss this bank fraud case against Clay.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this case.

Guilty Pleas of Two Conspirators Also Unsealed Today

Baltimore, Maryland – A federal grand jury has indicted Richard Shusterman, age 50, of Highland Beach, Florida, and Jonathan E. Rosenberg, age 44, of West Orange, New Jersey, on charges of conspiracy and wire fraud, in connection with a scheme to defraud equity investors and asset-based lenders in medical accounts receivable of more than $275 million. The indictment was returned on September 4, 2013 and unsealed today upon the arrest of the defendants.

The guilty pleas of Robert Feldman, age 65, of Beach Haven, New Jersey and Douglas A. Kuber, age 53, of Livingston, New Jersey, were also unsealed today. Feldman and Kuber pleaded guilty to conspiracy to commit wire fraud on September 3, 2013 and October 11, 2012, respectively.

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

“The indictment alleges that the defendants perpetrated a brazen and complex Ponzi scheme that defrauded investors of more than $275 million,” said U.S. Attorney Rod J. Rosenstein.

According to the 10 count indictment, Richard Shusterman, was a shareholder and president of International Portfolio, Inc. (IPI). Robert Feldman was part owner of IPI, and was also the president of United Consulting, Inc. Shusterman and Feldman represented that IPI was a company that had experience in the field of medical accounts receivable, including their purchase, valuation, collection, and resale. Beginning on June 21, 2006, Shusterman and Feldman, through United Consulting and IPI, engaged in the business of buying and selling consumer debt, including medical debt portfolios.

According to the indictment, Jonathan E. Rosenberg and Douglas A. Kuber, operated Account Receivable Services, LLC (ARS). ARS invested in medical accounts receivable purchased from IPI using funds borrowed from investors interested in asset-based lending. Rosenberg was also president of two other companies that recruited investors for medical accounts receivable portfolios purchased from IPI.

From December 2006 through June 2008, IPI paid more than $25 million to purchase over $4.1 billion in medical accounts receivable, comprising more than 3,872,514 past due patient accounts which the hospitals and other entities selling the accounts had been unsuccessful in collecting. Beginning in June of 2007, Shusterman, Rosenberg, Feldman, and Kuber began promoting an investment model to individual investors and investment fund managers.

To implement the investment model, the conspirators allegedly agreed that Shusterman, through IPI, would batch accounts receivable from IPI’s inventory into discrete debt portfolios with specified total outstanding account balances. These portfolios would then be offered for sale to investors. In addition, Shusterman and IPI would manage all the collection efforts for each debt portfolio IPI sold.

The indictment alleges that Shusterman, Rosenberg, Kuber and Feldman made fraudulent representations and omissions regarding purchase prices, collection results, and resale values of IPI medical debt portfolios in order to persuade investors to invest in those portfolios. The indictment alleges that Shusterman, Rosenberg, Kuber and Feldman negotiated and agreed upon two different purchase prices for each IPI debt portfolio that hedge funds and other investors financed on behalf of ARS. The conspirators set higher purchase prices for the IPI debt portfolios ARS financed through hedge funds and other investors. IPI agreed to kickback the loan proceeds in excess of the true purchase prices to Rosenberg and Kuber. The defendants allegedly characterized the kickbacks as a refund for any unqualified accounts in the portfolio, such as when a debtor was deceased or bankrupt. The indictment alleges that between June 2007 and March 2009, Shusterman paid Kuber and Rosenberg kickbacks totaling approximately $8,318,718.

Further, the indictment alleges that in order to induce existing investors to maintain and increase their participation in the investment scheme and to persuade new investors to join, Shusterman, Rosenberg, Feldman and Kuber falsely represented the actual amount of collections and rates of liquidation of IPI debt portfolios. In fact, because IPI debt portfolios did not generate sufficient collections to meet the minimum debt service payments due to the investors, Shusterman, Rosenberg, Feldman, and Kuber allegedly caused IPI to wire money disguised as “direct payments” to ARS entities to fund interest payments owed to hedge funds and other investors who loaned money for the acquisition of IPI debt portfolios. Specifically, the indictment alleges that between July 2008 and March 2010, the defendants made false and misleading collection reports stating that a total of approximately $56,180,158 in “direct payments” were collected during the liquidation of IPI debt portfolios, in order to deceive hedge funds such as Platinum Partners and other investors. The indictment alleges that in February 2010, Shusterman, Rosenberg, Feldman and Kuber attempted to induce Eton Park Capital Management to invest by portraying four portfolios financed by Platinum as receiving approximately $28.7 million in collections. In fact, the total net collections were approximately $2 million.

Finally, in order to induce investors to buy and/or maintain their investment positions in IPI debt portfolios, and to further conceal substantially lower than projected collection results, Shusterman, Rosenberg, Feldman and Kuber fraudulently repurchased and resold investors’ IPI debt portfolios at artificially inflated prices that neither corresponded to a particular debt portfolio’s actual collection results, nor to an asking price from a purchaser in the debt-buying industry. According to the indictment, Shusterman, Rosenberg, Feldman, and Kuber represented to investors that the IPI debt portfolios sold to them or used as collateral were comprised of medical accounts receivable that IPI had purchased directly from hospitals and medical providers after those institutions had exhausted their efforts to collect from their debtor patients. In fact, the indictment alleges that Shusterman and Feldman intentionally sold to some investors IPI debt portfolios that IPI had previously sold to and repurchased from a different investor, and sometimes multiple investors.

The indictment also seeks the forfeiture of $278,105,193, alleged to be the proceeds of the scheme.

Shusterman and Rosenberg each face a maximum sentence of 20 years in prison for the conspiracy and for each of nine counts of wire fraud. Shusterman was arrested in Baltimore and is scheduled to have his initial appearance in U.S. District Court in Baltimore today at 3:30 p.m. Rosenberg was arrested in Newark, New Jersey and is expected to have his initial appearance in U.S. District Court there today.

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.

Robert Feldman and Douglas Kuber, each pleaded guilty to conspiracy to commit wire fraud and face a maximum sentence of 20 years in prison. Feldman is scheduled for sentencing on December 3, 2013. No sentencing date has been set for Kuber.

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 HSI Baltimore for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Martin J. Clarke and Joyce K. McDonald, who are prosecuting the case.

DVD Depicts Ragan Having Sex With a Boy

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael Dean Ragan, Jr., age 31, of Port Deposit, Maryland, yesterday to 12 years in prison followed by 35 years of supervised release for receipt of child pornography. Judge Hollander further ordered that upon his release from prison, Ragan will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to the plea agreement, on January 30, 2011, law enforcement seized Ragan’s laptop computer, desktop computer, camera, hard drive and other digital media during a search in an unrelated counterfeit currency investigation. Ragan later pleaded guilty to state counterfeit charges. Approximately 335 images and 17 videos of minors and prepubescent minors engaged in sexually explicit conduct, including acts of sadism, masochism of other depictions of violence, were found on the seized items.

In addition, a video on a DVD depicted Ragan engaged in sexually explicit conduct with a minor. The video was taken without the boy’s knowledge. Ragan also admitted to being an administrator on a website dedicated to viewing, sharing and distributing child pornography. Ragan received a video on May 26, 2010 depicting two minor males engaging in sex.

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

United States Attorney Rod J. Rosenstein commended the FBI, U.S. Secret Service and Maryland State Police for their work in the investigation, and thanked the Maryland State Police for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Davon Stephon Williams, age 23, of Washington, D.C, today to 162 months in prison followed by five years of supervised release for two counts of robbery and using a gun during a robbery. Judge Titus further ordered that Williams pay restitution of $242,248.53.

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

According to his plea agreement, on October 7, 2011, Williams and a co-conspirator, both armed with handguns, entered the cash office in a Walmart in Hyattsville, Maryland and demanded money from employees. The gunmen fled the store with $140,000 and sped away in a stolen van.

On January 9, 2012, Williams and his co-conspirators robbed the Down Town Locker Room in Forestville, Maryland of $1,248.53. Employees were outside the store, in the process of closing the front door and leaving to take store money to the bank. Williams and his co-conspirators pulled up in a mini-van. At least two co-conspirators aimed handguns at the employees. One of the co-conspirators held a handgun to the head of an employee who was an armed security guard and took her firearm. The conspirators fled after receiving the store money.

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

In addition to actively participating in these robberies, Williams helped plan and prepare these crimes.

Jeffery Louis Adams, age 34, of Washington, D.C., previously pleaded guilty to his participation in the January 16 robbery and to two other robberies: a bank in Lexington Park, Maryland, stealing $109,750; and a credit union in Clinton, Maryland, stealing $100,427. Adams is scheduled to be sentenced on December 16, 2013.

United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.

Co-Conspirator Previously Sentenced to 27 Years in Prison

Baltimore Maryland - U.S. District Judge James K. Bredar sentenced Margaret Ellen Jones, age 38, of Parkville, Maryland, today to 15 years in prison, followed by 15 years of supervised release, for conspiring to produce child pornography. Judge Bredar ordered that upon her release from prison, Jones must register as a sex offender in the place where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to her plea agreement, prior to March 2010, Jones met John Blaes online and became involved in a sexual relationship involving bondage, discipline, sadism and masochism (BDSM). Jones subsequently moved into Blaes’ home in Parkville. Blaes used the internet to recruit other women and girls into the BDSM lifestyle as well.

On July 5, 2011, Blaes solicited a 15 year old girl to engage in sexual conduct with him and Jones. Blaes and Jones, knowing that the victim was a vulnerable minor, sent pornographic pictures of themselves to the victim by computer.

On July 22, 2011, Blaes and Jones traveled to the victim’s home in North Carolina to bring her to live with them in Parkville. After picking the victim up, Blaes and Jones sexually abused the victim in the back of their vehicle. The next day, Blaes and Jones rented a hotel room in North Carolina to engage in sexually explicit conduct with the victim. Blaes and Jones used a camera to document the sexual abuse of the victim, including sadistic and masochistic conduct, in the van and the hotel.

From July 22 to November 20, 2011, Blaes and Jones engaged in sex with the victim many times a week. Blaes also cut the victim and held lemons to her injuries. The victim was instructed to call Blaes “master” or “sir,” and to call Jones “mistress.” Blaes and Jones referred to the victim as their “slave.” Blaes and Jones instructed the victim to keep the sexual conduct and her age a secret and the victim was kept in their residence or in their control at all times and was not enrolled in school.

Blaes and Jones used a camera and cell phones to document their sexual abuse of the victim and to photograph her in sexually explicit poses. Blaes distributed the sexually explicit images of the victim online to recruit other individuals into his BDSM lifestyle with Jones.
John Andrew Blaes, age 50, also of Parkville, Maryland, previously pleaded guilty to the conspiracy and to transporting a minor to engage in sexually explicit conduct. Blaes was sentenced to 27 years in prison followed by a lifetime of supervised release.

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

United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Judson T. Mihok, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced John Bernard Williams, age 48, of Fort Washington, Maryland, today to 112 months in prison followed by five years of supervised release for conspiracy to commit, and committing the armed robbery of an armored vehicle, and possession of a firearm in connection with a crime of violence.

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

“Working with our law enforcement partners to curb violent criminal acts committed with firearms is a high priority of the FBI in Maryland,” said Stephen E. Vogt, Special Agent in Charge of the FBI’s Baltimore Division. “We will continue to work with the Montgomery County and Prince George’s County Police Departments to target and arrest individuals committing these crimes.”

According to Williams’ plea agreement, in June 2012, Williams began planning the robbery of an armored vehicle outside the Navy Federal Credit Union located in the 12000 block of Rockville Pike in Rockville, Maryland. Williams and co-defendant Carmen Camacho recruited co-defendant Kai Holt to assist in the robbery. On June 13, 2012, Williams met Holt and two other co-defendants, Marcus Brooks and Deangelo Williams, and traveled in two vehicles to the Navy Federal Credit Union. After arriving, the conspirators drove around the area planning escape routes, then parked in a parking lot adjacent to the credit union. Williams instructed the co-conspirators to wait there until he had given them the signal that the armored car had arrived at the credit union. At about 11:20 a.m., 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 and Brooks approached the courier and as they did so, Holt drew a semi-automatic pistol from his waistband. The courier abandoned the bag of money on the ground at the back of the van and ran away. Brooks picked up the bag, which contained $220,000, and he and Holt ran back to their vehicles and fled. Williams and his co-conspirators traveled back to Prince George’s County, Maryland, where they divided the proceeds of the robbery.

Carmen Camacho, age 31, of Fort Washington, Kai Holt, age 38, of Waldorf, and Marcus Brooks, age 21, of Lanham, Maryland, have all pleaded guilty to their roles in the robbery and are awaiting sentencing. Deangelo Williams, age 20, of Fort Washington, also pleaded guilty and was sentenced to three years 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.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced three conspirators from Maryland today, who were convicted by a federal jury following a four week trial, for their participation in a conspiracy to traffic cocaine and heroin in Montgomery County, Maryland and several states.

Judge Titus sentenced Omar Steele, age 43, of Upper Marlboro, Maryland, to 16 years in prison, followed by five years of supervised release, for conspiring to distribute more than a kilogram of heroin and five kilograms of cocaine; managing a place used to distribute and store drugs; interstate travel for narcotics activity; possession with intent to distribute heroin; and three counts of using a telephone to further a drug trafficking offense.

Judge Titus sentenced Noe Farid Medrano, age 42, of Adamstown, Maryland, to 10 years in prison, followed by five years of supervised release, for conspiring to distribute more than five kilograms of cocaine; possession with intent to distribute cocaine; possession with intent to distribute marijuana; and three counts of using a telephone to further a drug trafficking offense.

Judge Titus sentenced Francisco Barahona, age 35, of Gaithersburg, Maryland, to 11 years in prison, followed by five years of supervised release, for conspiring to distribute more than a kilogram of heroin and five kilograms of cocaine; managing a place used to distribute and store drugs; interstate travel for narcotics activity; possession with intent to distribute heroin; using a telephone to further of a drug trafficking offense; and possession with intent to distribute cocaine and a kilogram or more of heroin.

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

According to trial evidence, Steele obtained multiple kilograms of cocaine and heroin from his source of supply; received or brokered the distribution of 10 to 15 kilograms of heroin, and 40 to 50 kilograms of cocaine; and provided a place to use to distribute and cut the drugs.

From 2010 until his arrest on January 25, 2012, Medrano distributed approximately 3.5 kilograms of cocaine. Witnesses testified to delivering cocaine to Medrano in increments ranging from a half ounce to 18 ounces. Early on in the conspiracy, Medrano made trips to pick up the cocaine and bring it to Montgomery County, Maryland.

Starting in approximately 2010, Barahona helped transport kilograms of cocaine to Connecticut and Pennsylvania, and transported cocaine from Houston and Atlanta back to Maryland.
Barahona’s house was used by members of the conspiracy to cut and repackage kilograms of cocaine and heroin.

Some of the kilograms of drugs that arrived in Montgomery County were cut, and all of the drugs were repackaged and sold in the Washington, D.C. metropolitan area, Pennsylvania, Connecticut, Virginia and New York. The investigation ended on January 25, 2012 when agents learned that co-conspirators had traveled to Atlanta to pick up a drug. When the conspirators arrived back in Maryland at Barahona’s residence, two co-conspirators unloaded some of the kilograms into Barahona’s home. Agents executed search and arrest warrants and seized four kilograms of cocaine and two kilograms of heroin from the basement. A fifth kilogram of cocaine and a handgun were recovered from a hidden compartment in a truck used to transport the drugs from Atlanta to Maryland.

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

Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Brian Deandre Bush, age 43, of Hollywood, Maryland, today to 140 month in prison followed by five years of supervised release for conspiracy to distribute, and possess with intent to distribute, cocaine and crack cocaine in St. Mary’s County, Maryland. Bush was also sentenced to 37 months in prison, for violating his supervised release from a 2007 drug conviction, which Judge Williams ordered to be served consecutive to the sentence imposed today.

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

According to Bush’s guilty plea, from November 2010 through July 15, 2011, Bush conspired with his son, Demetrius Deandre Young, Kerry Alexander Bond, Sr., John Larry Dickerson, Marcus Tyrek Chase, William Lamont Young, Alexander Sternack, Wayne Marcelle Mills and others to distribute cocaine in St. Mary’s County, Maryland. Bush and Demetrius Young received cocaine from their sources of supply in Maryland, Georgia, Florida and elsewhere, including cocaine supplied by John Edward Butler, David Butler and Bond. The cocaine was smuggled back to St. Mary’s County where Bush and Demetrius Young supplied Chase, Dickerson and others with powder and crack cocaine for distribution. Law enforcement overheard thousands of cell phone conversations between the defendants, including Bush, relating to their drug activities and the rising prices of cocaine in St. Mary’s County. Bush and Demetrius Young would call and coordinate the delivery of cocaine and payment for the cocaine with John Butler, David Butler, Bond and others. Bush and Demetrius Young would then call Dickerson, Chase, Mills, William Young, Sternack and others to tell them when the cocaine and crack cocaine was ready to be picked up. These individuals met Bush, Young and/or one of their subordinates at locations in St. Mary’s County to obtain cocaine and crack cocaine.

Bush was responsible for the distribution of between five and 15 kilograms of cocaine, and between 280 grams and 840 grams of crack cocaine.

All 10 defendants have pleaded guilty in this case. Kerry Alexander Bond, Sr., age 41, of Leonardtown, Maryland, and Wayne Marcelle Mills, age 45 of Lexington Park, Maryland, are awaiting sentencing. Marcus Tyrek Chase, age 27, of Lexington Park, Maryland, and John Larry Dickerson, age 43, of Waldorf, Maryland, were sentenced to 15 years in prison and 140 months in prison, respectively. Demetrius Deandre Young, age 23, of Hollywood, was sentenced to 75 months in prison; William Lamont Young, age 41, and David Anthony Butler, age 69, both of Leonardtown, were sentenced to two years in prison and 15 months in prison, respectively; and John Edward Butler, age 37, and Alexander Sternack, III, age 38, both of Mechanicville, Maryland, were sentenced to 63 months in prison and 70 months in prison, respectively.

United States Attorney Rod J. Rosenstein commended the DEA and St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James A. Crowell IV, Arun G. Rao and Thomas Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.

This Was Roy Clay’s Third Felony Drug Trafficking Conviction

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Roy Lee Clay, age 47, of Baltimore, today to life in prison, for conspiracy to distribute and possess with intent to distribute heroin. Judge Blake enhanced Clay’s sentence based upon two previous drug trafficking convictions.

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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to testimony at Clay’s 14 day jury trial, Clay was one of the leaders of a heroin trafficking organization that operated from April 2009 through November 2011. Clay and co-defendant Walter Powell obtained heroin from co-defendant Danilo Garcia. Garcia employed couriers to transport the heroin from New York to Baltimore and to return cash from the drug sales to New York. Evidence presented at trial included calls on March 6 and March 7, 2011, in which Clay and Garcia discuss a courier coming to Baltimore with heroin. On March 8, 201,1 Clay is overheard arranging to pick up the courier at a restaurant near the Baltimore Travel Plaza. Later that day, law enforcement observed Clay meet briefly with the courier near the restaurant. On March 9, 2011, law enforcement intercepted calls in which Garcia contacted Clay to see how heroin sales were progressing.

At trial, evidence also included that on February 17, 2011, individuals broke into Roy Clay’s home in an attempt to rob him. FBI agents testified that they saw Clay and Garcia running from the house while chased by these robbers. One wiretapped call included Clay discussing individuals breaking into his house and that Clay had to struggle with the robbers, at least one of whom had a gun, before Clay could flee the house.

The jury found that Clay was responsible for the distribution of at least one kilogram of heroin.

Walter Powell, age 61, of Baltimore, Maryland, pleaded guilty to the heroin conspiracy and was sentenced to 121 months in prison. Co-conspirator Danilo Garcia, age 43, of Bronx, New York was convicted at trial and sentenced to 188 months in prison for the heroin conspiracy, and for distribution of heroin.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced John Allen Talerico, age 50, of Cumberland, Maryland, to nine years in prison, followed by five years of supervised release, for three armed bank robberies. Judge Garbis also ordered Talerico to pay restitution of $31,206.

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; Cumberland Police Chief Charles H. Hinnant; Allegany County Sheriff Craig Robertson; Frostburg Police Chief Royce C. Douty; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg, of the Combined County Criminal Investigations Unit (C3I).

According to his plea agreement, between March 11, 2011, and September 13, 2011, Talerico committed three armed bank robberies in Cumberland, Maryland. During each robbery, Talerico entered the bank, approached the teller and asked about opening an account, then pointed what appeared to be a large black semiautomatic handgun at the teller and demanded money. After the tellers gave Talerico cash, he threatened them and demanded more money from the tellers, then fled the bank. On one occasion, when a customer entered the bank during the robbery, Talerico pointed the gun at the customer, telling the customer to “get out of the way.” During the robberies, Talerico wore distinctive clothing, including a knit hat with a brim, and large framed glasses.

Specifically, on March 11 and September 13, 2011, Talerico robbed the M&T Bank, located at 1150 Industrial Boulevard, and on June 24, 2011, Talerico robbed the Susquehanna Bank, located at 600 West Industrial Boulevard, all in Cumberland. Talerico obtained a total of approximately $31,206 from the three bank robberies.

The robberies were captured on bank surveillance video. During a search warrant executed at Talerico’s home on March 30, 2012, numerous articles of clothing matching those worn by the bank robber in the surveillance photos were seized.

According to court documents and testimony at today’s sentencing hearing, Talerico committed two additional robberies. On December 23, 2010, Talerico robbed the First Commonwealth Bank, in the 8400 block of William Penn Highway, in Osterburg, Pennsylvania, stealing approximately $4,506. On March 16, 2012, Talerico pretended to “test drive” a used car from a dealer whom he knew, driving the car to Fort Ashby, West Virginia, where he robbed the BB&T Bank, stealing approximately $7,481.

United States Attorney Rod J. Rosenstein praised the FBI, C3I, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Maryland State Police, and Allegany County State’s Attorney’s Office for their work in the investigation and thanked the Mineral County Sheriff’s Office (WV), and Pennsylvania State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul E. Budlow and Mark W. Crooks, who prosecuted the case.

Defendant Fired Many Shots at Officers Serving Him With an Arrest Warrant

Baltimore, Maryland – Tayvon Dobson, age 23, of Cambridge, Maryland, pleaded guilty today to attempted murder of a federal officer and using a gun during the attempted murder.

The guilty plea 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.

According to his plea agreement, 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 tactical style police vests with bright yellow or white letters signifying “SHERIFF” or “Police US MARSHAL” across the back along with a Task Force or a “Police US Marshal” patch on the front. Shortly after their entry into 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 and 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 the bedroom of 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 bedroom window and rolled out to the ground. Once on the ground he ran with other officers to safety. He was taken to a hospital where he had 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.

Dobson and the government have agreed that if the Court accepts the plea agreement Dobson will be sentenced to between 24 and 30 years in prison. U.S. District Judge Catherine C. Blake scheduled his sentencing for October 31, 2013 at 11:00 a.m.

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 is prosecuting the case.

Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Daniel Ofei, age 39, of Bowie, Maryland, today to 37 months in prison, followed by five years of supervised release, for conspiracy to commit wire fraud in connection with a mortgage fraud scheme involving losses of at least $5 million. Judge Messitte also entered an order that Ofei pay restitution of $5,950,000.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Inspector General Jon T. Rymer 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, from at least June 2006 to April 2009, Ofei, a licensed realtor, conspired with Michael Abobor, Jared Fanning, and others to use straw buyers to obtain fraudulent mortgages using false financial and employment information, to purchase homes in Maryland. Abobor was also a licensed realtor and Fanning, a mortgage broker at the time, assisted Ofei and Abobor in obtaining the fraudulent mortgages.

For example, in early 2006, Ofei’s wife wanted to purchase a home in Silver Spring, Maryland. Ofei, serving as his wife’s real estate agent, assisted his wife in obtaining a mortgage by providing Fanning with false information regarding his wife’s income, citizenship, and intent to occupy the property as a primary residence. Ofei knew that his wife would not have qualified to obtain the mortgage with truthful financial information. Ofei’s wife purchased the house and Ofei collected approximately $16,471 in commission from the transaction. The home was sold short in 2008, resulting in a $150,000 loss to the bank.

In 2006 and 2007, Ofei facilitated the purchase of at least four other properties in a similar manner. For each loan application Ofei provided Fanning with fraudulent information about the borrower’s employment and income, knowing that the buyer would not have qualified for a mortgage with truthful financial information. Based on these fraudulent applications, the victim lending institutions funded loans that totaled hundreds of thousands of dollars, resulting in substantial commission payments to Ofei and his co-conspirators. Eventually, each of the loans fell into default, causing large losses to the victims.

In all, Ofei, Abobor and their business partners recruited approximately thirty straw buyers, arranged more than 50 real estate transactions, caused more than $5,956,000 in losses to financial institutions, took in excess of $333,000 in real estate commissions, and collected over $1,200,000 in extra money from the transactions in the form of payments for renovations that were never completed.

Michael Abobor, age 38, of Bowie, Maryland and Jared Fanning, age 34, of Potomac, Maryland, have both pleaded guilty to their roles in the conspiracy. Two other co-conspirators, Emeka Udeze, age 38 of Bowie, a licensed mortgage broker, and Shola Risikat Balogun, age 46, of Upper Marlboro, Maryland, have also pleaded guilty in the scheme. All are awaiting sentencing.

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

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.