District of Maryland

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Craig Martin, age 40, of Baltimore, Maryland, today to 10 years in prison, followed by four years of supervised release, after Martin pleaded guilty to possession with intent to distribute crack cocaine. Judge Blake found that Martin is a career offender based on at least two previous drug convictions.

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

According to Martin’s plea agreement, on May 16, 2012, ATF agents and task force officers executed a search warrant at Martin’s residence in the 5500 block of Cedonia Avenue in Baltimore. Martin was found in the kitchen of the house. Stairs to the basement, where Martin and his wife appeared to be living, were located in the kitchen. During the execution of the search warrant, agents found a clear plastic bag in the kitchen garbage can containing five clear plastic baggies, each of which contained at least 20 small ziplock baggies with crack cocaine. The total weight of the crack cocaine was approximately 12 grams. Agents also found a digital scale with cocaine residue and blue ziplock packaging materials in the dining room.

At today’s sentencing hearing the government also presented evidence that during the search, agents also found a box of .45 caliber ammunition in a dresser drawer in Martin’s basement bedroom and a box of .44 caliber ammunition on top of the dresser. Martin is prohibited from possessing a gun or ammunition as a result of his previous felony 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 Assistant United States Attorney Kenneth S. Clark, who prosecuted the case.

Baltimore, Maryland – Gary Allen Mitchell, age 42, of Salisbury, Maryland, pleaded guilty today to bank robbery. Mitchell has two prior federal bank robbery convictions – one each in Maryland and Delaware.

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

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

Mitchell faces a maximum sentence of 20 years in prison. U.S. District Judge J. Frederick Motz scheduled sentencing for November 15, 2013 at 9:30 a.m.

United States Attorney Rod J. Rosenstein praised the FBI and Salisbury Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bonnie S. Greenberg, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Rosauro Pacubas, age 58, of Manila, Philippines, today to five years in prison, followed by 10 years of supervised release, for travel with intent to engage in illicit sexual conduct. Judge Hollander ordered that Pacubas pay $21,600 in restitution to the victim. Judge Hollander also ordered that upon his release from prison, Pacubas must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service.

According to the facts presented to the court, Pacubas was a U.S. government embassy employee in Manila, Philippines. On March 1, 2012, Pacubas traveled to Baltimore with his wife and the victim, who was to be evaluated at a hospital in the Baltimore area. During their stay in a hotel in Baltimore, Pacubas sexually abused the victim. Following the victim’s hospital evaluation, she entered a therapeutic boarding school in North Carolina where she disclosed sexual abuse by Pacubas. On January 11, 2013, Pacubas was interviewed and admitted sexually abusing the victim during their stay in Baltimore in March 2012.

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 Diplomatic Security Service for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, and Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced David Russo, age 62, of Hagerstown, Maryland today to 30 months in prison, followed by one year of supervised release, for health care fraud in connection with a scheme to defraud Medicare and Medicaid by billing for prescriptions that Russo knew were not written for a legitimate medical purpose. Judge Russell also ordered that Russo pay a fine of $50,000, restitution of $200,146.33 and forfeit $39,000 in cash seized during a search of his pharmacy in 2010. As required by his plea agreement, Russo has surrendered his pharmacy license and agreed not to seek a new license in Maryland or any other state.

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

“Russo's career as a pharmacist is over. Professionals, such as doctors and in this case a pharmacist, who knowingly abuse their power and the public trust are drug dealers, no different than the street dealers that sell illicit drugs,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “The abuse of diverted prescription pain medication is the fastest growing drug problem in our country and DEA remains committed to investigate this problem,” added Tuggle.

According to his plea agreement, Russo, a licensed pharmacist, owned and operated a pharmacy known as "Russo’s Rx," located at 25 North Cannon Avenue in Hagerstown. Russo admitted that from January 2009 through December 2010, he filled prescriptions for oxycodone, methadone and benzodiazepines that he knew were issued outside of the legitimate medical course and fraudulently billed Medicare and Medicaid for those prescriptions. The sheer number of prescriptions for oxycodone and methadone indicated that the prescriptions were not valid.

In addition, Russo accepted cash for Schedule II drugs when the drugs were not covered by Medicaid or Medicare. Schedule II drugs, including oxycodone and methadone, are approved for medical use and also have a very high abuse potential. They are regulated by the DEA. Another indicator that Russo knew the prescriptions were not for a legitimate medical purpose is that he "split" prescriptions, accepting an amount of cash at the time of a transaction and then accepting the remaining amount at a later time. Russo also filled two prescriptions for a Schedule II drug on the same day for the same patient but charged one to insurance and accepted cash for the other. The investigation showed that: customers would call ahead of time to ask Russo if he had oxycodone “in stock” and how much it would cost; customers traveled from out of state or in van loads to his pharmacy; and many customers were receiving the same “cocktail” prescription of oxycodone, Roxicodone and Xanax, which are well known in medicine and pharmacy as being extremely dangerous when combined because of the severe side effects and potential for addiction and abuse.

Further, Russo made gross sales of nearly $700,000 a month for several months in 2010 - a dramatic increase over previous months. He also made at least 55 cash deposits between December 1, 2009 and June 15, 2010 totaling $862,000. Russo even maintained a cash counting machine in his pharmacy.

In December 2010, the DEA executed a search warrant at Russo’s Rx and seized $39,000 in cash from the pharmacy - cash that was earned from unlawful dispensation of oxycodone, methadone and benzodiazepines. Since that date, Russo admitted that he deleted thousands of unlawful prescriptions from his prescription database. From January 1, 2009 through December 31, 2010, Russo’s Rx dispensed over 700,000 dosage units of oxycodone and 117,000 dosage units for methadone for the invalid prescriptions. The vast majority of the remaining invalid prescriptions were for other schedule II narcotics and benzodiazepines. For all these prescriptions, Russo improperly billed, and received payment for, over $109,207.26 to Medicare and at least $90,939.07 to Medicaid, with a total approximate loss of $200,146.33.

United States Attorney Rod J. Rosenstein praised the DEA for its work in the investigation and thanked the Maryland Division of Drug Control and the Maryland Board of Pharmacy for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson, Thomas Corcoran and Ayn M. Ducao, who prosecuted the case.

Baltimore, Maryland –U.S. District Judge Richard D. Bennett sentenced James Andrew Wagner, age 43, of Hagerstown, Maryland, today to four years in prison, followed by 10 years of supervised release, for possession of child pornography. Judge Bennett ordered that upon his release from prison, Wagner must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to the plea agreement, on April 7, 2011, an undercover FBI agent in Kansas City, Kansas, downloaded 16 images from Wagner, using a file sharing program connected to the internet. All of the files depicted minors engaging in sexually explicit conduct. On November 28, 2011, an undercover FBI agent in Baltimore used a file sharing program to download 58 files from Wagner that contained child pornography. On December 22, 2011, a search warrant was executed at Wagner’s home and agents seized computers and digital media. A review of the images on Wagner’s computers and other devices revealed well over 600 files of child pornography, separated into hundreds of folders organized by the name of the minor depicted in the files. At the time of the offense, Wagner was a civilian police officer at Fort Detrick.

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

Baltimore, Maryland – A federal grand jury returned an indictment charging former Baltimore Police officer Lamin Manneh, age 32, of Baltimore, with traveling across state lines and using the telephone and internet to operate a prostitution business. The indictment was returned on August 15, 2013, and unsealed today at Manneh’s initial appearance.

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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Anne Arundel County State’s Attorney Anne C. Leitess.

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

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

Manneh faces a maximum sentence of five years in prison, followed by up to lifetime of supervised release, for operating a prostitution business. Manneh had his initial appearance this morning in U.S. District Court in Baltimore and is detained pending a detention hearing scheduled today at 3:45 p.m.

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

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

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

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

U.S. Attorney Warns of Dramatic Spike in Maryland Deaths by Heroin Overdose

Baltimore, Maryland - A federal grand jury has indicted nine individuals in connection with a heroin distribution ring that allegedly operated in Cecil County, Maryland, Delaware, Pennsylvania and New York. The indictment was returned on August 7, 2013.

The indictment and search warrant affidavits were unsealed today upon the arrests of the defendants and the execution of eight search warrants of residences and vehicles associated with the defendants in Maryland, Delaware, Pennsylvania, and New York. Approximately 100 agents and officers from 11 law enforcement agencies assisted in today’s arrests and search warrants.

The indictment arose from a joint investigation by the Drug Enforcement Administration - Baltimore Field Office, Wilmington, Delaware Resident Office, New York Division, Philadelphia Field Division, Santo Domingo country office and Mexico City country office; the Cecil County Drug Task Force (“CCDTF”), comprised of the Elkton Police Department, Cecil County Sheriff’s Office, Maryland State Police and the Cecil County State’s Attorney’s Office; the Delaware State Police; and the Philadelphia Police Department.

The following defendants are charged with conspiracy to distribute heroin and were arrested today:

Luis Lugo-Santiago, a/k/a “Papi,” and “Andres Galvez,” age 38, of New York, New York; Orlando Nunez de Leon, a/k/a “Alberto Ando,” age 36, of New York; Jorge Ayala-Pizzaro, Jr., a/k/a “Black Pa,” and “Black Pop,” age 23, of Philadelphia; Veroni Chavarria Cubero, a/k/a “Vero,” age 30, of Philadelphia; Maria Paulino Perez, a/k/a “Nena,” age 40, of Philadelphia; Abel Nunez-Reyes, age 29, of Philadelphia; and
Rachine Huron Garnett, a/k/a “Sheen,” “Red,” “Ray,” and “Blockhead, age 37, of
Elkton, Maryland.

Two defendants are still being sought.

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 Office; Special Agent in Charge David G. Dongilli, Philadelphia Division of the DEA; Cecil County Sheriff Barry A. Janney, Sr.; Chief Matthew Donnelly of the Elkton Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cecil County State’s Attorney Ellis Rollins; and Colonel Nathaniel McQueen, Jr. of the Delaware State Police.

“Heroin is one of the leading causes of death in Maryland; with the recent spike from 245 overdose deaths in 2011 to 378 in 2012, more people die of heroin than murder,” said U.S. Attorney Rod J. Rosenstein. “Heroin dealers are selling death and despair.”

According to the indictment and affidavits filed in support of the search warrants, Lugo is a Dominican native living in New York, who is alleged to be running a heroin mill in the Bronx, New York. The organization allegedly processes between one and two kilograms of heroin per week for retail sale. Lugo has a number of customers in the Maryland and Delaware areas, including Rachine Garnett. Court documents allege that Jorge Ayala-Pizzaro and Veronica Cubero, who are in a romantic relationship, are the main couriers for the Lugo organization and Nunez de Leon packages heroin for the organization. According to court documents, Garnett often traveled to Philadelphia to provide Ayala-Pizzaro with cash and to obtain heroin. Garnett and Ayala-Pizzaro often exchanged vehicles during these meetings, and it is alleged that the money and drugs were hidden in mechanized hidden compartments, called “traps,” in the vehicles. The investigation included hundreds of intercepted telephone calls and text messages in which the defendants are alleged to discuss drug business, often using coded language.

The defendants face a maximum sentence of life in prison. Ayala-Pizzaro, Cubero, Perez, Nunez-Reyes and Garnett each had an initial appearance today in U.S. District Court in Baltimore. Lugo-Santiago had his initial appearance in the U.S. District Court in New Jersey and Nunez de Leon had his initial appearance in U.S. District Court for the Southern District of New York. Perez is scheduled to have her initial appearance on Friday in U.S. District Court in Baltimore. All the defendants were detained.

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 DEA, Cecil County Drug Task Force, and Delaware State Police for their work in the investigation. Mr. Rosenstein also recognized the U.S. Attorney’s Offices in the District of Delaware, Southern District of New York and the Eastern District of Pennsylvania, the Office of the Special Narcotics Prosecutor for the City of New York and the New York Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and James G. Warwick, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Stole $144,908 from Elderly Bank Customers and a Restaurant’s Account, Failing to Pay at Least $30,000 in Taxes Owed on the Embezzled Funds

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Irene Quansah, age 37, of Germantown, Maryland, today to two years in prison followed by five years of supervised release for embezzlement and income tax evasion. Judge Grimm also entered an order that Quansah forfeit and pay restitution of $144,908.33 to the victim bank and $30,000 to the IRS.

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 Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“Ms. Quansah’s embezzlement scheme to steal from her employer’s customer bank accounts was illegal and her act of deliberately underreporting her embezzlement income on her federal tax returns is unlawful,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “IRS Criminal Investigation will continue to work with our law enforcement partners to bring to justice those that abuse their positions of trust and steal from innocent victims. Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior.”

According to her plea, from November 2010 to July 2012 Quansah used her position as a teller coordinator at a bank to fraudulently withdraw funds from customers’ accounts and fail to deposit customer funds.

Specifically, on at least 100 occasions Quansah removed cash from cash deposits made by a restaurant at an ATM, stealing a total of $35,696.29. On December 28, 2010, she withdrew $10,000 from the account of an elderly woman, returning the money from funds drawn off of her teller vault only after the customer complained to bank officials about the unauthorized withdrawal. On five occasions from December 2010 to April 2011, Quansah withdrew a total of $11,550 from another elderly woman’s account, falsely noting that the fraudulent withdrawals were done at the customer’s request.

In February 2011, the daughter of a third elderly woman presented savings bonds to Quansah to redeem and deposit the proceeds into the elderly mother’s account. Quansah told the daughter that she needed to leave the bonds with her so that Quansah could redeem them over the next few months. Quansah, however, deposited only a portion of the proceeds of the bonds into the customer’s account, stealing at least $9,975.48. Similarly, in September 2011 Quansah was asked to redeem savings bonds valued at $25,179.48 and deposit the proceeds into another elderly woman’s account, but Quansah deposited only $13,342.92, retaining the remainder for her own benefit.

On nine occasions from September 2011 to March 2012, Quansah stole a total of $65,850 from an elderly couple’s account, again falsely noting that the withdrawals were made at the couple’s request. After the elderly man complained to bank officials about these unauthorized withdrawals, Quansah refunded the account using funds drawn off of a friend’s line of credit. About an hour later, Quansah debited her teller vault to repay her friend’s line of credit.

On August 1, 2012 the bank made a surprise cash audit of Quansah’s cash drawer and teller vault which revealed a shortage of $87,900. Quansah admitted to taking the money.

The total amount Quansah embezzled was $144,908.33. She did not report any of the embezzled funds to the IRS on her tax returns and thus owed between $30,000 and $80,000 for underreporting her income.

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 IRS Criminal Investigation for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Christen A. Sproule and Kelly O'Connell Hayes, who prosecuted the case.

Defendant Took Teenager to Sex Parties

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Troy Walker, a/k/a ‘Caveman,” age 48, of Upper Marlboro, Maryland, today to 10 years in prison, followed by 10 years of supervised release, for transporting a minor with the intent to engage in prostitution. Judge Messitte also ordered that upon his release from prison, Walker must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to his plea agreement, Walker met a 17 year old girl in March of 2012 through a friend who worked at parties hosted by Walker. Walker asked the victim to work for him at a party he was hosting. Walker hosted parties through a company called Quest For Fire. These parties were advertised as sex parties or “gang bangs” on the internet. Interested individuals would text Walker at the cell phone number listed in the ad and Walker would text back the party’s location. Guests paid for entry to a residence which would allow them to engage in sexual acts with girls provided by Walker.

In August 2012, Walker rented an apartment for the victim and had her engage in sex acts with guests at his parties. The victim’s photo was also posted in ads for the parties on the internet. Walker provided transportation for the victim to the sex parties, which included transportation from Washington, D.C. to Maryland. According to the victim, Walker assaulted her several times.

The victim worked for Walker at the parties hosted in Prince George’s County from April 1 to September 15, 2012, while she was 17 years old.

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

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

United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kristi O’Malley, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Daheem Bryant-Royal, age 23, of Ft. Meade, Maryland, today to 10 years in prison followed by five years of supervised release for sexual abuse of a minor that occurred on the Ft. Meade military base on September 4, 2011. Judge Quarles also ordered that upon his release from prison, Bryant-Royal must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Major General David Quantock, Provost Marshal General of the Army and Commanding General of the U.S. Army Criminal Investigation Command.

On December 18, 2012, a federal jury convicted Bryant-Royal of raping a minor female at a home on the Ft. Meade military base, which is exclusive federal jurisdiction. According to the evidence presented at Bryant-Royal’s four day trial, the victim was staying at a residence on Ft. Meade. After attending a party the victim became heavily intoxicated. Witnesses testified that Bryant-Royal entered the bathroom where the victim was taken after she became ill, and sexually assaulted her.

The victim immediately reported the rape to her friends, who drove her home. The victim immediately informed her parents and law enforcement officials about the sexual assault and was admitted into a hospital, where a Sexual Assault Forensic Examination (SAFE) was performed. The results of the examination, which were introduced into evidence during trial, indicate that she was sexually assaulted and DNA evidence recovered from the victim was determined to match Bryant-Royal’s DNA.

United States Attorney Rod J. Rosenstein commended the FBI and U.S. Army Criminal Investigation Command at Ft. Meade for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Rachel M. Yasser and Special Assistant U.S. Attorney Christine L. Duey of the U.S. Justice Department, Criminal Division, who prosecuted the case.

Founder and Former President of Gargoyles, Inc. Misrepresented
Company Sales and Customers to Investors

Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced John F. “Jef” Curran, III, age 44, of Westminster, Maryland today to 37 months in prison, followed by three years of supervised release, for securities fraud, in connection with the sale of $1.9 million worth of stock in his company, Gargoyles, Inc. Judge Bennett also ordered that Curran forfeit $1,963,065, and pay restitution of $1,250,768 to repay victims for the money they invested in Gargoyles, Inc.

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 Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

According to the statement of facts that is part of his plea agreement, Curran was the founder, president and single largest shareholder of Gargoyles, Inc., located in Westminster, Maryland. Gargoyles was a self-described “advanced materials application company,” purportedly doing business with customers in a variety of settings including the military and law enforcement.

From January 2009 to September 2010, Curran sold approximately $1.9 million worth of Gargoyles stock to investors. Curran admitted that he falsely represented to investors and potential investors that Gargoyles had customers, sales contracts and purchase orders for its products when, in fact, it did not. Curran also misrepresented his education to investors.

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 U.S. Postal Inspection Service for their work in the investigation and thanked the Securities Division of the Office of the Maryland Attorney General for its assistance in the case. Mr. Rosenstein praised Assistant U.S. Attorney Leo Wise, who prosecuted the case.

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

Baltimore, Maryland - Jennifer Owens, a/k/a O and J.O., age 31, of Randallstown, Maryland pleaded guilty today to a racketeering conspiracy for smuggling drugs and other contraband for Tavon White and other member of the Black Guerilla Family (BGF) gang inside several correctional facilities.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.

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

Jennifer Owens worked as a correctional officer (CO) at BCDC from 2007 to 2013. Owens admitted that she entered into a personal and sexual relationship with BGF gang leader Tavon White while he was an inmate at BCDC and has two children by White. According to her plea agreement, Owens frequently smuggled Percocet pills and Suboxone strips into BCDC on behalf of White and others. From 2010 to 2011, Owens smuggled marijuana and tobacco into the prison two to four times per week, but after that she concentrated on pills and strips. Outside the prison, Owens frequently obtained contraband from other co-defendants and was paid either by transfers of funds onto Green Dot cards or by cash from these co-defendants. Owens also moved contraband internally within BCDC for others. Owens was aware that other co-defendants and many other correctional officers also smuggled contraband.

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

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

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

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

Threatened A Witness in the Hours Before His Arrest

Baltimore, Maryland - U.S. District Judge George L. Russell, III sentenced Carlos Romero, age 22, a native of El Salvador residing in Baltimore, Maryland, today to 15 years in prison, followed by one year of supervised release, for illegal reentering the United States and for being a felon in possession of a gun and ammunition.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); 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 the evidence presented at Romero’s two day trial, Romero was arrested in the early morning hours on June 8, 2011, after police saw the truck in which Romero was riding spin “donuts” and squeal wheels in an intersection. After stopping the truck, police asked the driver for his license and registration. The driver opened the glove box to retrieve the registration and police saw the butt of a revolver. The officers drew their weapons and placed the driver and Romero under arrest. The driver was removed from the vehicle and handcuffed. As the officers removed Romero from the truck, they saw a bullet slip out of his right front pants pocket, and they recovered another bullet from Romero’s pocket after he was out of the truck. Officers retrieved the gun, a .38 Special loaded with .38 special caliber ammunition - the same ammunition found in Romero’s pocket. Additional ammunition was recovered from the passenger-side floorboard of the truck, along with one spent cartridge casing of the same ammunition.

Witnesses at trial testified that Romero was deported from the United States in April 2010 and had not applied for, nor received permission to return. Another witness testified that a few hours prior to his arrest, Romero had threatened to cut out the witness’ tongue for talking to police about a shooting that had occurred in March 2011, at the bar where the witness worked. The perpetrator of the March 2011 shooting was a fellow MS-13 gang member. After Romero’s threat, the witness contacted a Baltimore Police detective and identified Romero in a photo lineup as the man who had threatened him.

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Justin S. Herring, who prosecuted the case.

Baltimore, Maryland - Maryland General Hospital (“MGH”), an acute care hospital in Baltimore, Maryland that is part of the University of Maryland Medical Systems Corporation, agreed to pay $750,000 to settle allegations under the False Claims Act. The government alleged that MGH overbilled in connection with cardiac testing and failed to repay the overpayments after senior financial managers learned of them.

The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services.

The allegations resolved in the settlement include overbilling of cardiac perfusion studies performed in MGH from March 24, 2003 through December 23, 2009. The allegations resolved also relate to MGH’s failure to repay overbilled amounts after senior financial managers learned of the overpayments. Evidence established that senior financial managers at MGH were made aware of the overpayments in February and August 2007. Federal law requires that recipients of overpayments by the Medicare system identify them and repay them. Despite its awareness of the problem MGH failed to do so until this litigation.

The allegations settled today arose from a lawsuit filed by Kenneth Creeger against MGH under the qui tam, or whistleblower, provisions of the False Claims Act. United States ex rel. Kenneth Creeger v. Maryland General Hospital, No. 1:10-cv-0281 (D. Md.). The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the United States and share in any recovery. As part of today’s resolution, Mr. Creeger will receive $119,728 from the settlement.

This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.7 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.5 billion.

The settlement was a result of an investigation by the U.S. Attorney’s Office for the District of Maryland and the Justice Department’s Civil Division, the Inspector General of Department of Health and Human Services. The case was handled by Assistant U.S. Attorney Allen Loucks.

Was a Fugitive for Over a Year

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Austin Roberts III, age 37, formerly of Elkridge, Maryland, today to 19 years in prison, followed by five years of supervised release, for conspiring to distribute heroin, cocaine and cocaine base (crack cocaine).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; U.S. Marshal Johnny Hughes; and Wicomico County State’s Attorney Matthew Maciarello.

“Today's sentencing of Roberts closes the book on a drug dealer who was responsible for trafficking a lot of cocaine on the Eastern Shore,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “You can run and hide but the long arm of justice will eventually catch you. This case demonstrates the commitment of the DEA and our law enforcement partners to bring an investigation to a successful conclusion,” added Tuggle.

According to Roberts’ guilty plea, from 2007 until his arrest in December 2012, Roberts conspired to distribute heroin and cocaine. His co-conspirators included Andrew Jackson, Maurice Hardy and others. Roberts distributed multiple kilograms of cocaine to Hardy on several occasions. For example, after a telephone call in which Hardy indicated that Roberts would be supplying him with seven kilograms of cocaine for $31,500 per kilogram, on May 12, 2011, Jackson, under Roberts’ direction, provided several kilograms of cocaine to Hardy. Subsequent to this meeting, law enforcement stopped Jackson’s vehicle and seized over $160,000 from a hidden compartment. During the course of the conspiracy, Roberts distributed or directed the distribution of well over 50 kilograms of cocaine and a kilogram of heroin.

For over a year following his indictment on state and federal charges, Roberts eluded arrest. On July 19, 2011, an officer patrolling the New Jersey Turnpike stopped the vehicle Roberts was driving. Roberts provided a California license under the name John Nash. When the officer learned that the name was an alias for Roberts who was wanted, he requested back up. Roberts ran away as the officers continued to investigate his identity. In August 2012, a California Highway Patrol officer attempted to stop a vehicle Roberts was driving, but Roberts again escaped on foot. Officers seized over $29,000 from a hidden compartment in the vehicle. Roberts was arrested in San Diego, California on December 4, 2012.

Andrew Jackson, age 40, of Baltimore, Maryland, Maurice Kenneth Hardy, age 37, of Nanticoke, Maryland, and Tereek Nutter, age 30, of Salisbury, Maryland, previously pleaded guilty to their participation in the drug conspiracy. Judge Hollander sentenced Jackson to 10 years in prison, Nutter to 151 months, and Hardy to 16 years in prison.

United States Attorney Rod J. Rosenstein commended the DEA, U.S. Marshals Service and the Wicomico County Narcotics Task Force, comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department, and the Wicomico County State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Joshua L. Kaul, who prosecuted this Organized Crime Drug Enforcement Task Force case.

On Supervised Release For a Prior Drug Conviction At the Time of His Arrest

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Tyrone Wheatley, age 44, of Rhodesdale, Maryland, today to 135 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute cocaine.

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

According to Wheatley's guilty plea, in July of 2011, Wheatley met with Steven Jordan at a shopping center in Queen Anne’s County, Maryland, and agreed to supply cocaine to Jordan in Delaware. Wheatley obtained the cocaine from a source of supply in California and arranged for the cocaine to be hidden in a vehicle, was then hauled from California to in Delaware by a commercial car transporter. Jordan delivered $220,000 in cash to Wheatley in Delaware. Wheatley transported the money through Maryland to Pennsylvania, where it was packaged in a vehicle and transported by commercial hauler to California.

On August 6, 2011, a commercial car hauler delivered a green Monte Carlo with approximately 13 kilograms of cocaine hidden inside, to a shopping center in Delaware. After receiving instructions from Wheatley regarding the arrival of the car hauler, Jordan was arrested the next day as he attempted to take delivery of the vehicle containing the cocaine.

Steven Jordan pleaded guilty to the same charge in U.S. District Court in Delaware and was sentenced to 12 years in prison.

United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department and the Maryland Transportation Authority Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Peter J. Martinez, who prosecuted the case.

Co-Conspirators Admit Committing at Least a Dozen Armed Robberies of Stores and Businesses

Baltimore, Maryland - Quindell Ryeshawn Gardner, age 22, of Baltimore, Maryland pleaded guilty today to a commercial robbery conspiracy and possession of a firearm in furtherance of a crime of violence. On August 5, 2013, co-conspirator Tavon McPhaul, also age 22, of Baltimore, pleaded guilty to the same charge.

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; Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Kevin Davis.

Police Commissioner Anthony Batts said, “I want to extend my deep appreciation to all of the local, state and federal partners who demonstrate an ongoing commitment to making Baltimore safer.”

“I’m happy that law enforcement partners were able to come together and build cases against these individuals,” said Chief Kevin Davis of the Anne Arundel County Police Department, “Clearly our citizens and business community are now much safer.”

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

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

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

Gardner, McPhaul and the government have agreed that if the Court accepts their plea agreements, Gardner will be sentenced to between 15 and 25 years in prison and McPhaul will be sentenced to between 11 and 15 years in prison. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Gardner for October 21, 2013 at 10:00 a.m., and McPhaul is scheduled to be sentenced on October 15, 2013.

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

Greenbelt, Maryland – Larayne Whitehead, age 34, of Clinton, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to defraud businesses which supplied goods under government contracts.

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

According to her plea agreement, from December 2007 to May 2013, Whitehead and her co-conspirators used at least 15 businesses in Maryland, Delaware, Georgia, Nevada, North Carolina and Tennessee which they incorporated to bid on contracts to provide goods – such as books, snowmobiles, plants and paint – to federal, state and local government agencies. Most of the contracts were awarded using an online marketplace, which contractors use to compete for federal contracts through a reverse auction process. The conspirators’ businesses often submitted extremely low bids to secure the contracts. Once awarded the contracts, Whitehead enticed victim businesses to act as subcontractors and supply the goods required by contract by providing fake references and by falsely promising that the subcontractors would be paid after the government paid Whitehead. After the subcontractors delivered the goods required by the contracts, government agencies paid Whitehead, typically by electronic transfers to bank accounts set up in the business names but controlled by Whitehead. Whitehead fraudulently retained these proceeds for her own personal benefit and did not pay the subcontractors.

The conspirators typically operated under a particular business name for a period of six to 12 months until the business was either disqualified from the online marketplace or was otherwise burdened with lawsuits or liens. The conspirators then continued the scheme under a newly-registered business name. The conspirators initially used their true names and addresses to register their businesses, but later attempted to conceal their true identities by using aliases.

Whitehead has agreed to forfeit $2,393,579 and a car.

Whitehead faces a maximum sentence of 20 years in prison and a fine of $250,000. U.S. District Judge Alexander Williams, Jr. scheduled her sentencing for January 14, 2014 at 12:00 p.m.

The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force - chaired by Assistant Attorney General for the Criminal Division Lanny A. Breuer - 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 praised the FBI for its work in the investigation and thanked Assistant U.S. Attorney Christen A. Sproule, who is prosecuting the case.

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Larry Poole, age 50, of Laurel, Maryland today to 15 years in prison, followed by a lifetime of supervised release, for receipt of child pornography. Chief Judge Chasanow ordered that upon his release from prison, Poole 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; Chief Richard McLaughlin of the Laurel Police Department; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

According to his plea agreement, on June 11, 2012 the Child Protective Services (CPS) received a report that Poole was sending text messages claiming to be molesting an unidentified nine year old girl. CPS referred the matter to the Laurel Police Department, who were not able to locate any child in Poole’s neighborhood matching the description used by Poole in his texts.

The Laurel police subsequently learned that Poole was on federal probation, and was registered as a sex offender based on two prior convictions: in 2003, for child abuse, in Baltimore County Circuit Court; and in 2006, for attempting to entice a minor to engage in sex, and possession of child pornography, in federal court for the District of Columbia.

Laurel police alerted Poole’s federal probation officer who made a surprise visit to Poole’s home on June 25, 2012. Poole consented to a preview of his cell phone, and the probation officer discovered videos and images of child pornography. Poole admitted that an individual brought child pornography to Poole’s home the previous day on a thumb drive or SD card and helped Poole load pornographic images of girls under 14 years old onto Poole’s computer and cell phone.

Laurel police and the FBI executed a search warrant, seized Poole’s cell phone and computer, and discovered approximately six videos and 120 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.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 Laurel Police Department and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

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

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Billymir Mancilla-Brevichet, age 28, of Oakland, California, today to 90 months in prison, followed by four years of supervised release, for conspiring to distribute more than 700 kilograms of marijuana and conspiring to commit money laundering. Chief Judge Chasanow also ordered that Mancilla forfeit $278,618 seized from May to October, 2012.

Yesterday, Chief Judge Chasanow sentenced co-conspirators Chamron Thach, a/k/a Sham, age 30, of Silver Spring, Maryland, and Carlos Salvador Escobar, a/k/a Esco, age 30, of Arlington, Virginia, to eight years and three years in prison, respectively, for their participation in the drug and money laundering conspiracies.

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

“This case underscores the teamwork between HSI and the Montgomery County Police Department in dismantling a drug trafficking and money laundering organization,” said William Winter, HSI special agent in charge in Baltimore. “HSI works aggressively to keep illegal drugs out of our communities, and to dismantle the criminal networks that profit from drug trafficking and the crime that surrounds it.”

According to their guilty ples and court documents, from March 2011 to December 2012, Mancilla acquired large amounts of high-quality marijuana from suppliers in California and elsewhere, and arranged for the transport of the marijuana by plane, car and mail to co-conspirators in Montgomery County, Maryland, including Chamron Thach. Mancilla’s co-conspirators transported at least 100 pounds of marijuana at a time by car to a storage facility in Maryland, where Mancilla arranged for co-conspirators, including Carlos Escobar, to pick up multiple pounds of marijuana for re-distribution. When the marijuana was delivered to Maryland, Thach became responsible for redistributing the marijuana to co-conspirators and customers. Thach also received at least six pounds of marijuana every week by mail from Mancilla that he re-distributed to his drug customers in amounts up to a pound at a time. Thach had these packages delivered to co-conspirators’ homes and to a stash location he maintained in Silver Spring, Maryland.

Mancilla charged between $3,000 and $4,000 per pound of marijuana. During their participation in the conspiracy, Mancilla, Thach and Escobar conspired to distribute over 1,500 pounds of marijuana.

Mancilla arranged to receive payment for the marijuana he caused to be distributed by having drug customers deposit cash payments in amounts less than $10,000 into bank accounts that he controlled that were held in fake names and in the names of fake businesses. Mancilla and other co-conspirators, including Thach and Escobar, structured the financial transactions to evade requirements that banks must report transactions over $10,000 to the IRS, thereby concealing from the government large cash transactions by drug dealers.

Mancilla also had drug customers make payments to Escobar and other co-conspirators in Maryland, who bundled the drug proceeds together in amounts ranging from $10,000 to $100,000. Thach and other individuals traveled by plane from Maryland to Mancilla in California with the bundles of money. Finally, Mancilla arranged for drug customers, including Thach, to mail drug proceeds from Maryland to him in California.

This money laundering conspiracy involved at least $1 million.

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

Baltimore, Maryland –Larry James Kerfoot, age 38, of Dundalk, Maryland, pleaded guilty yesterday to sexually exploiting a minor on at least five occasions to produce images of child pornography.

The plea agreement 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); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, on May 30, 2012, an undercover Baltimore County detective downloaded a video depicting child pornography from an internet file made available by Kerfoot from his Dundalk home. Law enforcement officers executed a search warrant on June 27, 2012 at his home and seized computers and digital media containing 19 videos and 80 images of child pornography that Kerfoot had received from the internet.

Officers also seized a video he had produced of a 12 year old girl whom he had coerced to engage in sexually explicit conduct with him on at least five occasions.

As part of his plea agreement, Kerfoot 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).

Kerfoot and the government have agreed that if the Court accepts the plea agreement, Kerfoot will be sentenced to between 25 and 30 years in prison followed by a lifetime of supervised release U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 7, 2013 at 2 p.m.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.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, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Ran the Operations of the BGF Gang Inside Baltimore Correctional Facilities

Baltimore, Maryland - Tavon White, a/k/a Bulldog and Tay, age 36, of Baltimore, Maryland pleaded guilty today to a racketeering conspiracy for running operations of the Black Guerilla Family (BGF) gang inside several correctional facilities.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.

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

According to his plea agreement, White has been a member of the BGF since 2000 and was in in pretrial custody at BCDC from 2009 to 2013. He became the lieutenant commander of the BGF at BCDC and then the commander in 2011. Throughout his years at BCDC, White was involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (CO’s), who received payments, gifts or a share of the profits. According to the plea agreement, White and his 24 co-defendants, including 13 correctional officers, participated in the smuggling enterprise and White also knew many other CO’s involved in contraband trafficking and sexual relations with inmates. White admitted that he was personally involved in sexual relationships with and impregnated four CO’s. Fellow BGF inmates and co-defendants also directed smuggling and often worked in concert with White. Outside the prison facility, White and his closest BGF allies frequently used other people, including several co-defendants, to obtain contraband, hold it or deliver it to correctional officers for smuggling.

White faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for February 20, 2014 at 10:00 a.m.

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

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

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

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Shareef Muhammad, age 34, of Suitland, Maryland, today to 12 years in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute phencyclidine (PCP), crack cocaine and 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; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Cathy L. Lanier of the Metropolitan Police Department; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to Muhammad=s guilty plea, from at least June 2010 through February 2012, he was a part of a drug trafficking conspiracy led by Samuel Braxton and based in and around Temple Hills, Maryland. Braxton regularly received multi-ounce to quarter-gallon quantities of PCP as well as heroin, crack and powder cocaine from his sources of supply. Braxton sold the PCP, heroin, and crack to Muhammad and other drug customers in the Washington, D.C. metropolitan area, including Prince George’s County.

In August 2011, law enforcement made two purchases of PCP from co-conspirator Cortez Winston, totaling about 16 ounces of PCP. Muhammad had supplied Winston with the PCP, which he had obtained from Braxton. On September 9, 2011, law enforcement arrested Muhammad in southeast Washington, D.C. and seized from Muhammad’s vehicle approximately 31 ounces of PCP which he had obtained from Braxton.

Over the course of the conspiracy Muhammad was responsible for the distribution of at least three kilograms of PCP, 28 grams of crack cocaine and 100 grams of heroin.

Judge Titus also found that Muhammad attempted to obstruct justice. According to Muhammad’s plea agreement, on August 3, 2012, while he was in prison, Muhammad mailed a letter to an associate, instructing that person to bring a second enclosed letter to another individual. Muhammad instructed that the second individual should deliver the second letter to Muhammad’s co-defendant, have Muhammad’s co-defendant re-write the letter, and have it notarized. The second letter appeared to have been drafted by Muhammad and had the co-defendant denying that he/she had ever obtained drugs from or discussed drugs with Shareef Muhammad.

A total of 15 members of the conspiracy have been convicted, including Samuel Braxton, age 44, of Temple Hills, Maryland; Mac “Easy” Holland, age 40, of Upper Marlboro, Maryland; and Norman Lee, Jr., age 36, of Washington, D.C., who were sentenced to 27 years in prison, 15 years in prison and 188 months in prison, respectively. Cortez Winston, age 22, of Suitland, Maryland, also pleaded guilty and is scheduled to be sentenced on October 21, 2013.

United States Attorney Rod J. Rosenstein commended the DEA, FBI, Metropolitan Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule, Steven E. Swaney, and Arun Rao, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced brothers Harold Alexander Byrd, age 26, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 34, of Owings Mills, Maryland, today each to 10 years in prison, followed by five years of supervised release, for possession with intent to distribute cocaine.

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

According to the Byrds= plea agreements, search warrants executed on April 22, 2013, recovered over five kilograms of cocaine from each brother’s home, with a street value of approximately $150,000. Law enforcement recovered three handguns, one AK-47 (semi-automatic), and four sets of body armor from Harold Byrd’s residence. The brothers admitted they were co-conspirators and Joseph Byrd frequented his brother’s home and was aware that the firearms were stored there. Seventy-three black plastic containers used to conceal large quantities of marijuana during shipment from Arizona to Maryland were also recovered from Harold’s home. Both brothers also had fictitious drivers’ licenses in various names but bearing their photographs. On the same day, approximately 500 pounds of marijuana was seized from a third location in Baltimore, where both brothers were also arrested.

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

                 Attempted to Smuggle Heroin Into Prison and Run a Marijuana

                                                            Conspiracy From Prison

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Jose Joaquin Morales, age 37, of Baltimore, Maryland, today to 262 months in prison followed by six years of supervised release for conspiring to distribute heroin and marijuana while he was in prison. Judge Titus enhanced Morales’ sentence upon finding that Morales was a career offender, that he threatened his co-defendant, and that he used his minor child to help conceal the heroin smuggling. Judge Titus also ordered the sentence imposed today be consecutive to the 262 month federal sentence Morales is currently serving.

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

“This investigation by DEA utilized a myriad of investigative techniques in order to expose Morales' ways of smuggling drugs into prison. This case illustrates DEA's mission to take down drug traffickers anywhere, even in prison,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “As a repeat offender Morales will now grow very old in prison,” added Tuggle.

According to court documents and statements in court, Morales was sentenced in the U.S. District Court in the Southern District of Texas to 262 months in prison for possession with intent to distribute five kilograms or more of cocaine. The federal Bureau of Prisons transferred Morales to the U.S. Penitentiary in Canaan, Pennsylvania to serve his sentence. Morales admitted that he was part of two conspiracies – one to bring heroin into the prison, and a second to continue to direct his marijuana trafficking outside the prison using his contacts in Maryland and Texas.

Morales enlisted the help of female family members or women with whom he’d had a romantic relationship to assist in the drug distribution. Morales contacted the women, providing them with a contact from whom they could obtain the heroin. He described to each woman how to package the heroin in balloons and that when the woman arrived at the prison, they would exchange the heroin by kissing, transferring the heroin from the woman’s mouth to Morales’.

For example, beginning in April 2010, Morales called co-defendant Terry Sadler to arrange for her to transport heroin into the prison facility. Sadler had a long time romantic relationship with Morales and they had a child together. Morales provided Sadler with a drug contact in Baltimore from whom Sadler could obtain heroin. After obtaining the heroin, Sadler visited Morales in prison and distributed the heroin to him by kissing him and transferring the heroin packages from her mouth to his. In September 2010, Morales and Sadler discussed bringing in a second package of heroin and Morales put Sadler in touch with his contacts in Baltimore to obtain heroin. Later, Morales told Sadler to bring their child when she came to visit him on September 24th, because it would be less likely for prison personnel to question the visit. On September 23, 2010, DEA agents executed a search warrant at Sadler’s home and recovered the heroin that Sadler had obtained for Morales, as well as balloons that Morales had told Sadler to use to package the heroin.

Morales directed another woman to have telephone conversations with his marijuana source, who was located in Texas. Morales intended for the marijuana to be mailed from Texas to Maryland. In fact, the DEA intercepted a package that had been mailed from Texas to Maryland, and was found to contain over five pounds of marijuana. During a meeting on September 17, 2010, Morales was overheard by law enforcement discussing the marijuana conspiracy with this woman and requesting that the woman also smuggle heroin into the prison like Terry Sadler was doing.

Terry Sadler, age 37, of Hanover, Maryland, pleaded guilty to her role in the scheme and was sentenced to 18 months in prison.

Morales is also charged in a separate case with using a phone in the commission of a murder for hire and is scheduled to go to trial on that charge on September 24, 2013.

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

Baltimore, Maryland – Robert Marzola, age 31, of Essex, Maryland, pleaded guilty today to producing child pornography.

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

According to his plea agreement, between December 2011 and July 2012, Marzola sexually abused a minor male at his home to produce images of himself and the minor engaged in sexually explicit conduct. Marzola saved the images on his laptop. Marzola told the boy not to tell anyone about their conduct, which Marzola described to the boy as a game.

In June 2012, Baltimore County police accessed a peer to peer network and saw that Marzola had files containing child pornography available for download. Police executed a search warrant at Marzola’s residence on July 19, 2012 and seized a camera, desk top computer, laptop computer and an SD card. The images and videos that Marzola had previously produced of the boy were found on his laptop, along with 18 additional videos of children engaged in sexual conduct.

As part of his plea agreement, Marzola 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).

Marzola faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 in prison followed by up to lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 7, 2013 at 10:00 a.m.

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

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 the Baltimore HSI, FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul Budlow, who prosecuted the case.

                                       IRS Issued More Than $12 Million in “Refunds”

Baltimore, Maryland - A federal jury has convicted Makushamari Gozo, age 40, a native of Zimbabwe residing in Baltimore, Maryland, on 23 counts that he filed claims for more than $23 million in fraudulent alternative fuel tax credits and refunds and personal tax refunds, as well as that he engaged in a scheme to fraudulently obtain more than $3 million in loans from credit unions. The verdict was returned late on July 31, 2013.

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

“The evidence showed that Makushamari Gozo received over $370,000 in fraudulent federal tax refunds and caused the IRS to issue checks for more than $12 million in tax credits and refunds for alternative fuel that he falsely claimed his sham companies had purchased,” said U.S. Attorney Rod J. Rosenstein. “At the same time, Mr. Gozo also attempted to obtain over $3 million in fraudulent loans from credit unions.”

“Fraud schemes cause tremendous financial damage to everyone, and the American taxpayer is the real victim when the IRS is targeted by fraudsters,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Mr Gozo’s scheme to defraud the IRS was an attack on our nation’s tax system, but through the efforts of IRS Criminal Investigation and the United States Attorney’s Office for the District of Maryland he was brought to justice and convicted by a jury of his peers. IRS Criminal Investigation in partnership with its law enforcement partners will continue to pursue the criminals who commit these crimes and steal from the U.S. Treasury.”

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

In addition, the evidence showed that between July 2010 and September 2010, Gozo engaged in a scheme to defraud several credit unions to obtain fraudulent automobile and business loans. Specifically, Gozo submitted four loan applications to the credit unions for the purchase of luxury automobiles that Gozo never actually bought. On the applications, Gozo made materially false statements about his income and employment, in order to make himself appear like a successful businessman and to persuade the credit unions to approve the loan applications. In support of his loan applications, Gozo presented to the credit unions: the same fraudulent W-2 forms that he had submitted to the IRS with his Forms 1040 for tax years 2007, 2008, and 2009; fraudulent pay stubs, which falsely claimed that Gozo made substantial income from one of his businesses; fraudulent “Used Vehicle Buyers Orders” which falsely claimed that Gozo had contracted to purchase the luxury automobiles included on the loan applications; and fraudulent verifications of insurance coverage on the luxury automobiles referenced on the loan applications.

According to the trial testimony, Gozo also submitted a fraudulent loan application for an $3 million business loan in the name of another one of his sham companies. On the application, Gozo made fraudulent statements about the financial and business affairs of the company in order to make it appear financially successful and to persuade the credit union to approve the credit line application. In support of the business loan application, Gozo submitted several false corporate tax returns claiming that the company controlled millions of dollars in assets.

Gozo faces a maximum sentence of five years in prison on each of the 18 counts of making a false claim; and 30 years in prison on each of the five counts of bank fraud. U.S. District Judge Catherine C. Blake has scheduled sentencing for October 25, 2013 at 10:30 a.m. Gozo has been detained since his arrest on July 20, 2012.

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

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Alejandro A. Salas, age 65, of Silver Spring, Maryland today to 18 months in prison followed by one year of supervised release for making a false statement on a tax return. Judge Titus also ordered Salas to pay $393,018 in restitution and perform 100 hours of community service.

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

“IRS Criminal Investigation in partnership with the United States Attorney for the District of Maryland will continue to pursue individuals and businesses that do not pay all the taxes that are owed to the U.S. treasury,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington, D.C. Field Office. “Today’s sentencing of Mr. Salas should be a warning to others that IRS Criminal Investigation is focused on those that intentionally underreport taxable income, no matter what entity or individual they attempt to hide behind.”

According to his plea agreement, from 2004 to 2008, Salas ran G&S Enterprises of Maryland, a tax return preparation business in Silver Spring that also offered translation services, travel agency services, accounting and bookkeeping services for local companies; facilitated international money transfers; and brokered mortgage loans. In 2009, after learning that he was the target of a criminal investigation, Salas moved the location of his business and began preparing tax returns for clients under the corporate name TAX USA, which he incorporated under the name of another individual.

Between 2004 and 2009, Salas’ business prepared over 15,700 tax returns for clients.

Salas admitted that for tax years 2003 through 2005, he underreported the income from his tax preparation business on his individual income tax returns; and underreported the income from the business on the corporate tax return he filed for the 2006 tax year. For example, on his 2005 income tax return Salas listed the gross income from his sole proprietorship as $295,537, when in fact, the gross income from his business substantially exceeded that amount. For tax years 2007 through 2009, Salas failed to file either corporate or individual tax returns.

The total tax loss to the government as a result of Salas’ actions is $393,018.

United States Attorney Rod J. Rosenstein praised the IRS-CI for its work in the investigation and thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.

          Majority of Victims Were Non-Profit Clients Who Relied on the Mailings to

                                                                      Raise Funds

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Chester William Bigelow, age 58, of Woodbine, Maryland, today to 30 months in prison, followed by three years of supervised release, for conspiracy to commit mail and wire fraud relating to the failure to provide contracted-for services to clients of Bigelow’s company, RMS Direct, Inc., resulting in losses of over $628,500. Judge Blake also ordered Bigelow to perform 200 hours of community service and to forfeit $628,581.48, representing postage payments made to RMS by its clients, but never paid to the USPS, as well as $13,500, which he withdrew from the RMS bank account and was used by his family members to purchase a car for their personal use.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

According to his plea agreement, Bigelow was the president and owned 65% of the shares of RMS Direct, Inc., a mail preparation service located in Frederick, Maryland, with over 200 clients and revenues of over $5 million per year. Under the supervision of Bigelow and RMS vice president Stephen Reid, RMS entered into contracts to prepare and submit to the U.S. Postal Service (USPS), large-volume mailings, typically made up of pamphlets, brochures, books, and other printed materials.

RMS clients were primarily non-profit corporations that relied upon the mailings sent through RMS to raise funds, and the timing of the mailings was essential to their fundraising efforts. RMS assembled the mailings, applied the postage and addresses, and organized the pieces of mail for submission to the USPS. RMS submitted the mailings to a full-time USPS Acceptance Clerk that was assigned to its office. As proof that the mailings went out, RMS then emailed its clients either of two USPS documents – a postage statement signed and certified by the USPS Acceptance Clerk or a Mailing Transaction Receipt printed from an online USPS database. Both documents included information as to the dates, times, number of pieces of mail and postage paid. Once the RMS client received a statement, it would remit payment to RMS.

Bigelow admitted that the conspiracy began in 2005, when he and Reid, who owned 35% of the shares of RMS, falsified postage statements to misrepresent to RMS clients that mailings were being sent out in a timely fashion when, in fact, the mailings were late. Beginning in 2009, Bigelow and Reid selected certain mailings or portions of mailings that would not be submitted at all to USPS for delivery. Bigelow and Reid made sure that the documentation sent to the RMS client was falsified to indicate that the full mailing had been submitted, thereby causing the client to overpay RMS for postage and services.

To accomplish the fraud, Bigelow, Reid, and RMS employees operating at their direction, generated false postage statements, forged the signature of the USPS Acceptance Clerk and created a false impression of the special USPS date stamp used on the postage statement. Bigelow attempted to recreate the special USPS date stamp by hand, but was unsuccessful. Then, in 2006, RMS employees gained unauthorized access to the USPS Acceptance Clerk’s key to the filing cabinet where the date stamp was stored. Bigelow instructed an RMS employee to make a copy of the key, which Bigelow kept in his desk drawer. From that time until 2010, Bigelow, Reid, and RMS employees operating at their direction used Bigelow’s copy of the key to gain access to the date stamp when the USPS Acceptance Clerk was not present in order to falsify postage statements. Beginning in 2010, when the computer-generated Mailing Transaction Receipt was adopted by the USPS to certify mailings, Bigelow and Reid falsified those as well, using a document that had been created, which, when printed, looked identical to the USPS Mailing Transaction Receipt. Bigelow and Reid directed RMS employees to use this document to create false Mailing Transaction Receipts, which were sent to RMS clients as proof of the timely and complete submission of their mailings.

Bigelow and Reid took other measures to conceal the fraud and prolong the victimization of RMS clients. For example, RMS clients often included pieces of mail known as “seeds,” in the mailings they provided to RMS. These “seeds” were sent to particular individuals or addresses so that the client could track the timing and appearance of the mailing. Bigelow directed RMS employees to make sure to deliver the “seeds” from the mailings that were going out late or were not otherwise submitted to the USPS, in order to conceal the fraud.

Bigelow also requested refunds for mailings or portions of mailings that RMS failed to submit to USPS for delivery. If postage was paid for a mailing, but the mailing was not submitted for delivery, RMS, as a third-party mailer, could request a refund of 90% of the postage value. Bigelow requested these refunds for unsent pieces of mail and retained the funds as RMS revenue. The refunds requested were generally in amounts less than the $500 threshold that would have triggered additional scrutiny by USPS officials.

As a result of the scheme, at least 19 victims lost a total of $628,581.48.

Stephen Reid, age 51, of Frederick, Maryland, previously pleaded guilty to the same charge and was sentenced to two years in prison and ordered to forfeit and pay restitution of $628,581.48, the amount of loss resulting from the fraud.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Matthew Lunder, a trial attorney with the Justice Department’s Antitrust Division, National Criminal Enforcement Section, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Terrance Dion Robinson, age 39, of Baltimore, Maryland, today to 51 years in prison, followed by lifetime supervised release, for eight counts of sexually exploiting minors to produce child pornography. Robinson had two previous convictions in Montgomery County, Maryland, for crimes involving the sexual abuse of children. Judge Bredar ordered that upon his release from prison Robinson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to Robinson’s plea agreement, between 2007 and 2010, Robinson produced images and videos of two prepubescent minors engaged in sexually explicit conduct, while he was alone with the victims. Additionally, Robinson used a publicly available file sharing program to download images and videos of child pornography from the internet. Robinson saved the images and videos to his laptop computer, external hard drive, and to other digital media.

On October 18, 2010, detectives from the Child Abuse Unit of the Baltimore Police Department searched Robinson’s residence and seized Robinson’s computer equipment and digital camera. During a subsequent forensic examination of the computer and digital media, investigators found images and videos of the victims engaged in sexually explicit conduct produced by Robinson. The digital media seized from Robinson’s home also contained over 600 images of children engaged in sexually explicit conduct, including at least 4 videos. The videos were downloaded from the internet in 2010 using a file sharing program. The forensic examination of the computer, external hard drive, thumb drives, flash drives, CDs and DVDs revealed that Robinson regularly searched for files, websites and discussions relating to child pornography and encryption.

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, Baltimore Police Department, and the Baltimore City State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow and former Special Assistant United States Attorney Christine Duey of the U.S. Justice Department, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Terrance Dion Robinson, age 39, of Baltimore, Maryland, today to 51 years in prison, followed by lifetime supervised release, for eight counts of sexually exploiting minors to produce child pornography. Robinson had two previous convictions in Montgomery County, Maryland, for crimes involving the sexual abuse of children. Judge Bredar ordered that upon his release from prison Robinson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to Robinson’s plea agreement, between 2007 and 2010, Robinson produced images and videos of two prepubescent minors engaged in sexually explicit conduct, while he was alone with the victims. Additionally, Robinson used a publicly available file sharing program to download images and videos of child pornography from the internet. Robinson saved the images and videos to his laptop computer, external hard drive, and to other digital media.

On October 18, 2010, detectives from the Child Abuse Unit of the Baltimore Police Department searched Robinson’s residence and seized Robinson’s computer equipment and digital camera. During a subsequent forensic examination of the computer and digital media, investigators found images and videos of the victims engaged in sexually explicit conduct produced by Robinson. The digital media seized from Robinson’s home also contained over 600 images of children engaged in sexually explicit conduct, including at least 4 videos. The videos were downloaded from the internet in 2010 using a file sharing program. The forensic examination of the computer, external hard drive, thumb drives, flash drives, CDs and DVDs revealed that Robinson regularly searched for files, websites and discussions relating to child pornography and encryption.

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, Baltimore Police Department, and the Baltimore City State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow and former Special Assistant United States Attorney Christine Duey of the U.S. Justice Department, who prosecuted the case.

           Allegedly Used Guns, Threats, and Violence to Force the Victims to Engage

                                                                    in Prostitution

Greenbelt, Maryland – A federal grand jury has returned a superseding indictment charging Jean Claude Roy, a/k/a “Dredd the Don,” and “Dreddy,” age 31, of Germantown, Maryland, and Brittney Creason, a/k/a “Kitty Amor,” age 19, of Decatur, Illinois, with conspiracy to commit sex trafficking. Roy is also charged with sex trafficking and attempted sex trafficking by force, fraud and coercion; interstate transportation for prostitution; possessing and brandishing a firearm during a crime of violence; and witness and evidence tampering. Creason was arrested today in Las Vegas, Nevada, where she was being held on unrelated charges. Roy, who was charged in the initial indictment, remains detained. The superseding indictment was returned on July 24, 2013.

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

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

According to the 12-count indictment, between August and September 2012, Roy forced an individual to engage in commercial sex acts, transported the victim across state lines to engage in prostitution and brandished a gun to facilitate the sex trafficking. The indictment further alleges that in December 2012, Roy and Creason conspired to force three individuals to engage in commercial sex acts. As part of the conspiracy, Roy and Creason are alleged to have recruited and transported females from Illinois and North Carolina, with the intent to have those women engage in prostitution. According to the indictment, Roy forced one of the victims to engage in sex acts with him, while Creason held her down. The indictment alleges that Roy forced the women to engage in prostitution by threatening them with physical force and death, brandishing a firearm and by bragging about beating murder charges. Finally, the indictment alleges that from January 1 to January 10, 2013, while Roy was in jail on related state charges, he made numerous telephone calls to an individual and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.

Roy and Creason face a maximum sentenced of life in prison for conspiracy to commit sex trafficking.

Roy faces a minimum mandatory sentence of 15 years in prison and a maximum of life in prison on each of two counts of sex trafficking and two counts of attempted sex trafficking; a mandatory sentence of 7 years for first count of brandishing a firearm in relation to a crime of violence and a mandatory sentence of 25 years for second count, consecutive to any other sentence imposed, and a maximum of life in prison; a maximum of 10 years in prison for each of four counts of interstate transportation for prostitution; and a maximum of 20 years in prison for witness and evidence tampering. No court appearance has been scheduled for the defendants in U.S. District Court in Greenbelt.

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

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

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

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

Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Jose Valenzuela, age 59, and his wife Beatriz Valenzuela, age 56, both of Nogales, Arizona, today to 137 months and 125 months in prison, respectively, each followed by five years of supervised release, for conspiracy to distribute more than 1,000 kilograms of marijuana and for a money laundering conspiracy. The Valenzuelas also forfeited bank accounts worth $1,265,740.65 and $970,000 in cash.

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

“This case is an excellent example of how the teamwork between HSI and the Prince George’s County Police Department in dismantling a drug trafficking and money laundering organization can benefit our communities,” said William Winter, HSI special agent in charge in Baltimore. “HSI works aggressively to keep illegal drugs out of our communities, and to dismantle the criminal networks that profit from drug trafficking and the crime that surrounds it.”

According to the Valenzuelas’ guilty pleas, between June 6, 2011 and July 9, 2012, Jose and Beatriz Valenzuela utilized package shipping businesses they owned to ship marijuana from Arizona to Maryland and received proceeds in return. Antonio Hill, Jr., coordinated the shipment of drugs from Arizona to Maryland and managed the laundering of the proceeds to the sources of supply in Arizona, with the assistance of his brother, Erico Hill, who also coordinated the distribution of the marijuana in Maryland. Conspirators James Lewis, Jr., Ernest Rawlings, Jr., Errol Comma and Jane Nkemateh all assisted in the receipt of packages containing marijuana from Arizona. Lewis and Kenneth Davis further assisted in the repackaging of marijuana for distribution in Maryland, and the laundering of the proceeds to the sources of supply in Arizona. On July 11, 2012, law enforcement executed search warrants at the Valenzuelas’ home and businesses. They recovered $970,000 in cash from their home and more than 750 pounds of marijuana from the businesses.

According to their plea agreements, in order to evade IRS filing requirements for transactions involving more than $10,000 in cash, and conceal from the government large cash transactions by narcotics dealers, Jose and Beatriz Valenzuela arranged for Hill and other conspirators to deposit the proceeds of the conspiracy into bank accounts they controlled, with each transaction being less than $10,000. Some of those accounts were in the names of third parties.

Antonio Hill, Jr., a/k/a NuNu, age 33, of Largo, Maryland; Erico Hill, a/k/a Rico, age 31, of Hyattsville, Maryland; James Lewis, Jr., a/k/a Little Man, age 23, of Hyattsville; Kenneth Davis, a/k/a Benny, age 25 of Hyattsville; Ernest Rawlings, Jr.,a/k/a Junior, age 30, of Riverdale, Maryland; and Errol Comma, a/k/a E, age 31, of Lanham, Maryland, have all pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Jane Nkemateh, a/k/a Jayne Nekematah, age 29, of New Carrollton, Maryland, also pleaded guilty and was sentenced to two years in prison and ordered to forfeit bank accounts worth $1,265,740.65.

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

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Joseph Church, age 41, of Baltimore, Maryland, today to 51 months in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute oxycodone.

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

“Prescription drug trafficking is here in Maryland and it’s a growing problem that we in law enforcement will aggressively investigate,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “Church will now spend time in a federal prison far away from his family,” added Tuggle.

According to his guilty plea and other court documents, Church conspired with others to distribute oxycodone in the Baltimore City, Baltimore County and Anne Arundel County areas. Church obtained blank prescriptions from Wendy Pinkard, his girlfriend at the time, who worked as an office manager in a medical facility. Between 2008 and 2011 Pinkard provided more than 175 prescriptions to Church. Church filled out the prescriptions, typically for 180 thirty milligram pills or for 90 eighty milligram oxycodone pills, then recruited individuals, some of whom used fake identities, to go into pharmacies to obtain the oxycodone pills. The individuals returned the pills to Church, who paid the individuals for obtaining the pills. Church sold the pills to drug dealers throughout the area, distributing the equivalent of approximately 46,000 thirty milligram pills of oxycodone over the course of the conspiracy. Thirty milligram oxycodone pills have a street value of between $12 and $30 per pill.

Wendy Pinkard, age 37, of Baltimore, previously pleaded guilty to the same charge and is scheduled to be sentenced on August 5, 2013, at 2:00 p.m.

United States Attorney Rod J. Rosenstein commended the DEA, HHS-OIG, Office of Investigations, Baltimore County Police Department, Howard County Police Department and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Mushtaq Gunja and Kenneth S. Clark, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced David Dobbs, age 55, of Port Republic, Maryland, today to 104 months in prison, followed by lifetime supervised release, for transporting child pornography. Judge Messitte ordered that 14 months of Dobbs’ sentence be concurrent to his state sentence. Judge Messitte also ordered that upon his release from prison, Dobbs must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to the plea agreement, on two occasions in 2010, Dobbs used a file sharing program to make his files of child pornography available to undercover law enforcement officers, who downloaded a total of 16 videos and five images of children engaged in sexually explicit conduct. On September 13, 2010, Dobbs also engaged in a chat with the undercover officer, telling the officer that he liked “girls around seven years old and up.”

On April 13, 2012, Dobbs was interviewed in connection with another investigation and admitted using a file sharing program and a particular screen name when he chatted with the undercover officer. A search warrant was executed at Dobb’s residence and law enforcement seized a laptop computer and an SD card that appeared to have been pierced with a blunt instrument. Child pornography was recovered from the computer and the SD card, including images of prepubescent children engaging in sexually explicit conduct.

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 and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, who prosecuted the case.

          Businesses that Break Up Cash Transactions to Avoid Paper Trail Face

                                                                       Prosecution
   

Baltimore, Maryland – Amefika Gray, age 39, of Baltimore, pleaded guilty today to structuring bank deposits totaling over $2 million over a two year period to avoid bank reporting requirements.

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 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.

Gray and the Government have agreed that if the Court accepts the plea agreement, Gray will be sentenced to 30 months in prison and will be subject to a forfeiture money judgment of $800,000, and will be required to forfeit a Mercedes Benz vehicle and three residential properties located in Baltimore. U.S. District Judge Ellen L. Hollander scheduled his sentencing for October 18, 2013, at 10:00 a.m.

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

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

                                                 Three Defendants Still at Large

Baltimore, Maryland - A federal grand jury has indicted 14 individuals in a Baltimore heroin distribution conspiracy. The indictment was unsealed today upon the arrests of nine defendants and the execution of three search warrants. Two defendants are in custody on state charges and three remain at large. Over 100 agents and officers assisted in today’s arrests and search warrants. The indictment was returned on Tuesday July 22, 2013.

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

“I am confident that ATF’s successful execution of federal arrest and search warrants today in Baltimore will make an impact on crime and violence in our community,” said ATF Special Agent in Charge Steven Gerido. “ATF continues to proudly work with its federal, state, and local law enforcement partners to bring criminals to justice.”

“Our ongoing fight against violent crime is more successful with our allied state and federal partners,” said Commissioner Anthony Batts. “We continue to do all we can to reduce crime and violence and I thank all those involved in helping make Baltimore safer.”

The following defendants are charged in the indictment with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin:

Darryl Robinson, Sr., age 49, of Baltimore;

Mario Williams, age 37, of Baltimore;

Darrell Gilliam, age 42, of Towson, Maryland;

Isiah Robinson, age 27, of Baltimore;

Antonio Berry, age 42, of Baltimore;

Raymond Jefferson, age 43, of Baltimore;

Joyce Dunn, age 51, of Baltimore;

Tyree Howard, age 47, of Baltimore;

Hilton Gibbs, age 42, of Baltimore;

Douglas Duncan, age 47, of Baltimore;

Darryl Debro, age 47, of Baltimore;

Kevin Fisher, age 48, of Baltimore;

Eric Johnson, age 42, of Baltimore; and

Reginald Randolph, age 47, of Baltimore.

Raymond Jefferson, Darryl Debro and Kevin Fisher are still being sought. Antonio Berry and Joyce Dunn are in custody on state charges.

The defendants face a minimum mandatory sentenced of 10 years in prison and a maximum of life in prison. The defendants arrested today had initial appearances and were detained pending detention hearings scheduled for July 26 and July 29, 2013.

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

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

          Used His Employment With a Residential Mental Health Program To Steal

                  Identity Information of Clients to Open Fraudulent Bank Accounts      

                                                                  for Personal Use
   

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Derrick Elrod, age 35, of Philadelphia, Pennsylvania, today to three years in prison, followed by three years of supervised release, for bank fraud and aggravated identity theft in connection with a scheme to use stolen, personal identifying information of individuals to open bank accounts and fraudulently obtain cash, merchandise and services.

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); Wicomico County Sheriff Michael A. Lewis; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.

“The investigation of financial crimes is an HSI priority,” said HSI Special Agent in Charge in Baltimore William Winter. “Derrick Elrod abused his position of trust by stealing identity information that was entrusted to him to facilitate a fraud scheme for his own personal benefit. HSI will continue using all its resources to bring to justice individuals like Elrod who think that their illegal actions can go undetected.”

“Today's sentencing is another example that crime really does not pay,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “IRS Criminal Investigation welcomes opportunities to assist the Department of Justice and their law enforcement partners with dismantling criminal conspiracies profiting from bank fraud and identity theft.”

Elrod worked for Resources for Human Development, Inc. (RHD), a nonprofit social services organization headquartered in Philadelphia. Elrod was an advisor at a residential program that supports individuals with mental health needs.

According to Elrod’s plea agreement, in at least April 2010, Elrod became part of a bank fraud conspiracy led my Christopher Devine when he opened a checking account into which Devine and his co-conspirators deposited fraudulent checks totaling $4,800. Devine and others at his direction then made approximately $2,028.83 in cash advances and retail purchases before the bank returned the checks for insufficient funds.

After that, Elrod used his position at RHD to steal the personal identifying information of past or present residents of RHD. Elrod sold the personal information of at least 40 individuals who were residents of RHD programs to Devine during Devine’s many trips to Philadelphia.

Over the course of the scheme, Devine and his conspirators used the stolen information of at least four RHD residents to open checking accounts at banks, and deposited at least $11,598 in fraudulent checks into those accounts. Approximately $9,858 in cash advances and retail purchases were made from those accounts before the banks returned the checks for insufficient funds. Devine even paid a friend to create a fraudulent driver’s license using the stolen information of one of the victims, but with Devine’s photo.

In addition, Devine used the stolen personal information of RHD program residents to file at least 13 false tax returns for the 2010 tax year, claiming $51,987 in fraudulent refunds. Many of the false refunds were direct deposited into bank accounts controlled by Devine through the bank fraud scheme. The fraudulent refunds received through the tax scheme totaled $36,552.

The stolen personal information of 15 RHD program residents was used in the bank fraud and tax schemes.

Christopher Andre Devine, age 33; Quanishia Williamson-Ross, age 31; Quashonna Williamson, age 26, and Lenee E. Williamson, age 22, all of Salisbury, Maryland, Frederica, Delaware and Philadelphia, Pennsylvania; and John Waters, age 38, of Philadelphia, previously pleaded guilty to their participation in the conspiracy. Devine was sentenced to 121 months in prison, Williamson-Ross was sentenced to 42 months in prison; Lenee and Quashonna Williamson were each sentenced to three years in prison; and Waters was sentenced to 27 months in prison.

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

United States Attorney Rod J. Rosenstein thanked HSI Baltimore, the Wicomico County Sheriff’s Office, IRS-CI and the Social Security Administration - Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Paul E. Budlow and Kristi N. O’Malley, who prosecuted the case.

                      Transferred Funds Out of Housing Authority’s Bank Account
   

Baltimore, Maryland - A federal jury today convicted Daren Kareem Gadsden, aka “D,” age 36, of Upper Marlboro, Maryland, on charges related to a conspiracy to steal almost $1.4 million from a Housing Authority of Baltimore City bank account.

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

“Daren Gadsden stole from the Baltimore City Housing Authority by transferring money directly out of the Authority’s bank account,” said U.S. Attorney Rod J. Rosenstein. “The $1,399,700 in taxpayer funds stolen from the Baltimore City Housing Authority was supposed to be used to provide housing, not to line the pockets of criminals.”

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

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

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

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

Gadsden faces a maximum sentence of 30 years in prison and a $1 million fine for the bank fraud conspiracy. Gadsden also faces a mandatory two years in prison, consecutive to any other sentence for aggravated identity theft, and 20 years in prison for one count each of attempting to tamper with evidence and for evidence tampering. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for October 24, 2013 at 1:00 p.m.

Tyeast Brown, aka “Peaches,” age 42, of Suitland, Maryland; William Alvin Darden, age 46, of Washington, D.C; and Keith Eugene Daughtry, age 52, of Washington, D.C. all pleaded guilty to their roles in the scheme. Daughtry and Brown were sentenced to 41 months and 36 months in prison, respectively, and each was ordered to pay restitution of $1,399,700. Darden is expected to be sentenced later this year.

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

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

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Anthony Maurice Cottle, age 24, of Owings Mills, Maryland, late yesterday to 195 months in prison followed by a lifetime of supervised release for sexual exploitation of a minor to produce child pornography and to possession of child pornography. Judge Hollander ordered that upon his release from prison, Cottle 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); Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, in June and July 2012, Cottle, a former firefighter with the Baltimore County Fire Department, sexually abused two minor males to produce visual depictions of the abuse, including two videos. Cottle produced one video that depicts the genitalia of a minor male and Cottle performing sex acts on the boy. Cottle produced a second video depicting the genitalia of another minor male. More than 600 images of child pornography were recovered from Cottle’s computer and cell phone.

In addition to the videos produced by Cottle, images of several other child victims whom Cottle solicited to send him photos of their genitals, were found. Cottle admitted that on some occasions he used video chat to capture the image live, and on other occasions the minor would send a photograph by cell phone.

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.

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 FBI, Baltimore County Police Department, Baltimore Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. U.S. Attorney Rosenstein also recognized the Baltimore County Fire Department for its assistance in this case. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Matthew Earl Ward, age 33, of Elkton, Maryland, today to 10 years in prison, followed by three years of supervised release, for conspiracy to distribute, and possess with intent to distribute oxycodone and alprazolam. Judge Hollander sentenced James Stevenson, age 47, of Elkton, Maryland, to five years in prison, followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute oxycodone.

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

According to the evidence presented at their eight day trial, Matthew Ward and James Stevenson were part of a conspiracy that operated for several years distributing prescription drugs in and around Cecil County, Maryland. Ward primarily obtained the prescription drugs from individuals who went to doctors’ offices, obtained large prescriptions for oxycodone and other pills, and then sold many of the pills they obtained to Ward and other conspirators. Stevenson and others traveled to Florida to obtain prescriptions for oxycodone, which Stevenson then sold in bulk quantities, primarily to Ward or another conspirator.

A witness testified at trial that approximately 15 people provided Ward with pills from their prescriptions. Ward sold the drugs, typically charging $20 per 30mg pill of oxycodone. Although testimony showed that Ward also used some of the drugs he obtained, intercepted telephone communications made clear that Ward’s primary source of income was the sale of prescription drugs.

Several of the individuals who provided pills to the conspiracy obtained prescriptions from multiple doctors. Ward and other conspirators provided some of these individuals with transportation and money for their doctors’ appointments and prescriptions. Ward also provided urine to some of these individuals to ensure that they would pass if a urine test were administered at a doctor’s office. Ward was reimbursed in pills.

In July 2010, the residence where Ward was staying was searched by law enforcement who recovered seven methadone pills, 22 oxycodone pills, and $950 in cash from the room Ward was using. Ward continued distributing prescription pills until his arrest on November 17, 2010. At the time of his arrest, Ward was in possession of 81 15mg tablets and 21 30mg tablets of oxycodone.

Testimony at trial established that Stevenson made trips to Florida in October and November 2010, during which prescription drugs were obtained. Specifically, during each trip, Stevenson and his friend obtained prescriptions for 30mg oxycodone pills from two doctors. Stevenson’s friend sold all of the pills he obtained to Stevenson. Other co-conspirators went along on the trips and also obtained prescriptions for 30mg oxycodone pills, providing the majority of the pills to Stevenson, but keeping some for themselves. Stevenson distributed at least 365 pills to Ward after the October trip to Florida, and obtained several hundred additional 30 mg oxycodone pills on the November trip.

Stevenson falsely testified at trial that he was not involved in selling oxycodone.

In total, the members of the conspiracy distributed several hundred thousand milligrams of oxycodone.

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

        21 Locations Searched Today Involving Drug Trafficking and Burglaries and   

      Home Invasion Robberies Committed in Maryland, Virginia, West Virginia and 

                                                                       Pennsylvania,
   

Baltimore, Maryland – A federal grand jury has returned three indictments charging 16 defendants - eight in a conspiracy to distribute prescription drugs, heroin and cocaine around the Baltimore metropolitan area and the remaining defendants in conspiracies to commit armed home invasions, residential burglaries and commercial burglaries. The indictments were returned on July 16, 2013 and unsealed today upon the arrests of the defendants and execution of search warrants at 21 locations in Baltimore, Baltimore County and Anne Arundel County.

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

“Prescription drug trafficking in the Baltimore area is a growing problem, and today’s law enforcement action is evidence that DEA, along with our federal, state and local partners, intend to aggressively combat this problem,” said Assistant Special Agent in Charge Gary Tuggle, of the Drug Enforcement Administration’s (DEA) Baltimore District Office. “We conducted a very large-scale operation today and due to the diligent work of all involved, this Drug Trafficking Organization (DTO) has been dismantled. We in law enforcement will continue to pursue all investigative leads to put criminals who bring drugs and violence to our neighborhoods in prison where they belong,” added Tuggle.

“This is a group of violent individuals who have victimized citizens and businesses throughout the region for some time,” stated Howard County Police Chief William McMahon. “We are proud to have taken part in this effort, and thankful for the partnerships we have with the local and federal agencies who participated. The success of this investigation is highlighted by the nature and seriousness of the charges levied and the number of defendants arrested.”

"This is another example of the extraordinary work being done by our federal, state, and local partners to reduce crime in Baltimore," said Police Commissioner Anthony Batts. "We are sending a message -if you bring drugs, weapons or violence to Baltimore, every tool available will be used to bring you to justice."

The following defendants are charged in one indictment with conspiring to distribute oxycodone, heroin, methadone, buprenorphine, cocaine and alprazolam from 2010 to the present:

David Paschall, age 54, of Catonsville, Maryland,

Jackie Weatherley, age 30, of Lansdowne, Maryland,

Chad Paschall, age 28, of Baltimore,

Michael Terry, age 51, of Baltimore,

Richard Ashbrook, age 51, of Baltimore,

Richard Braitsch, age 38, of Baltimore,

William Matheny, age 44, of Lansdowne, and

Sidney Tawes, age 24, of Dundalk, Maryland.

The indictment seeks the forfeiture of at least $2 million, four properties and seven vehicles alleged to be used in or proceeds of the drug distribution. These defendants face a maximum sentence of 20 years in prison and a $1 million fine.

The following defendants are charged in a second indictment with conspiring to commit bank larceny and incidental crimes, and interstate transportation of stolen goods from September 2011 to the present. Three of the defendants are also charged with being a felon in unlawful possession of a firearm:

David Paschall,

Chad Paschall,

Mark Johnson, age 51, Baltimore,

Ronald Henderson, age 51, of Pasadena, Maryland,

William Metcalf, age 38, of Baltimore, and

Kenneth Smith, age 51, of Millersville, Maryland.

This indictment seeks forfeiture of at least $500,000, two properties in Catonsville, Maryland and Baltimore, and two vehicles. These defendants face a maximum sentence of five years in prison for the conspiracy. David Paschall, Mark Johnson and Ronald Henderson also face a maximum sentence of 10 years in prison for being a felon in possession of a gun.

The third indictment charges the following defendants with conspiring to commit bank larceny and interstate transportation of stolen goods from September 2011 to the present:

Carl Parrish Paschall, Sr., age 53, of Halethorpe, Maryland;

Carl Parrish Paschall, Jr., age 31, of Baltimore;

Chad Paschall,

Michael Johnson, age 25, of Baltimore, and

Thomas Ellis, age 22, of Baltimore.

This indictment also seeks forfeiture of at least $500,000, the two properties in Catonsville and Baltimore, and five vehicles. These defendants face a maximum sentence of five years in prison.

More specifically, according to an affidavit supporting the search warrants, David Paschall operates Paschall’s Auto Body and Fender located at 801 Desoto Road in Baltimore. This location is central to the drug distribution and other criminal activities allegedly carried out by the defendants. David Paschall’s street level drug connections provide him with quantities of oxycodone and other controlled substances at discount prices. Paschall then allegedly sells the drugs at a higher price for profit, while obtaining doses for himself. Customers allegedly come to the auto shop daily to purchase significant amounts of Oxycodone and other pharmaceuticals and controlled substances from David Paschall. Suppliers also deliver drugs to this location as well.

The affidavit alleges that this criminal enterprise also commits commercial burglaries, home invasion armed robberies, arsons and other crimes at convenience stores, gas stations, financial institutions, restaurants homes and liquor stores in Maryland, Virginia, West Virginia and Pennsylvania. Safes and ATMs are primarily targeted and taken. Lottery tickets and cigarettes are also taken along with other valuables. The modus operandi allegedly includes break-ins during the late night or early morning hours; power lines, telephone lines, cables and other wires cut prior to entry; video cameras disconnected or destroyed; a lookout and/or a driver nearby in a getaway vehicle; and door locks removed. After the initial break-in, they leave the location to wait for any response from police. Sometimes they remain for two or more hours once inside the location. Video recording systems are taken or destroyed. Pry bars, hammers, flashlights, chop saws, grinders, drills, and blow torches are used. ATMs and safes are broken open or taken.

Local law enforcement in Maryland are coordinating with agencies in surrounding jurisdictions and are continuing to connect unresolved burglaries to this organization.

Also arrested today by Baltimore County Police on state charges was Michael Paschall, son of David Paschall, for his alleged participation in a home invasion robbery in Kingsville, Maryland on March 4, 2013, as alleged in the affidavit. The homeowner was pistol whipped and robbed. He was hospitalized following the robbery.

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

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

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Terence Orlando Delly, age 36, of Reisterstown, Maryland, late yesterday to 10 years in prison followed by five years of supervised release for conspiracy to possess with intent to distribute more than five kilograms of cocaine.

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

According to court documents and information presented at Delly=s sentencing hearing, on September 15, 2011, members of the Texas Highway Patrol stopped a silver Lexus, which was registered in Maryland and had been rented in Baltimore, for a traffic violation. A K-9 scan of the vehicle resulted in an alert for the presence of narcotics and 9.5 kilograms of cocaine was subsequently recovered during a search of the vehicle.

Further investigation determined that the operator of the vehicle had driven from Baltimore, to Houston, Texas, in order to be supplied cocaine from Andre Wiley, which law enforcement learned was scheduled to be delivered to Delly in Baltimore County, Maryland. The driver of the Lexus, had made multiple trips from Baltimore to Houston prior to September 15, 2011, in order to be supplied cocaine by Wiley for ultimate delivery to Delly.

The quantity of cocaine reasonably foreseeable to Delly is between 15 kilograms and 50 kilograms of cocaine.

Andre Wiley, of Houston, Texas, pleaded guilty to the same charge and was sentenced to10 years in prison.

United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department and the Texas Highway Patrol for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Christopher Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Terence Orlando Delly, age 36, of Reisterstown, Maryland, late yesterday to 10 years in prison followed by five years of supervised release for conspiracy to possess with intent to distribute more than five kilograms of cocaine.

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

According to court documents and information presented at Delly=s sentencing hearing, on September 15, 2011, members of the Texas Highway Patrol stopped a silver Lexus, which was registered in Maryland and had been rented in Baltimore, for a traffic violation. A K-9 scan of the vehicle resulted in an alert for the presence of narcotics and 9.5 kilograms of cocaine was subsequently recovered during a search of the vehicle.

Further investigation determined that the operator of the vehicle had driven from Baltimore, to Houston, Texas, in order to be supplied cocaine from Andre Wiley, which law enforcement learned was scheduled to be delivered to Delly in Baltimore County, Maryland. The driver of the Lexus, had made multiple trips from Baltimore to Houston prior to September 15, 2011, in order to be supplied cocaine by Wiley for ultimate delivery to Delly.

The quantity of cocaine reasonably foreseeable to Delly is between 15 kilograms and 50 kilograms of cocaine.

Andre Wiley, of Houston, Texas, pleaded guilty to the same charge and was sentenced to10 years in prison.

United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department and the Texas Highway Patrol for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Christopher Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland - A federal grand jury has returned a third superseding indictment charging Ramon Miguel Cerros-Cruz, age 23, of Silver Spring, Maryland, and Alexsi Lopez, age 25, of Hyattsville, Maryland, with conspiracy and the violent robbery of a Hyattsville brothel that allegedly resulted in a rape and murder. Ramon Cerros-Cruz was previously charged with these crimes. The third superseding indictment returned late yesterday added Alexsi Lopez as a defendant in the case.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to the indictment, Cerros-Cruz and Lopez knew each other through their association with the MS-13 gang. The two count indictment alleges that Cerros-Cruz and Lopez, familiarized themselves with the location and operation of brothels in the Hyattsville-Langley Park area of Prince George’s County. Cerros-Cruz and Lopez allegedly planned the robbery of a Hyattsville brothel apartment, armed with knives, and using force and violence. The indictment charges that on February 28, 2007, Cerros-Cruz and Lopez entered the brothel apartment, demanding money from persons within the brothel and searching the apartment for money and items of value. The indictment charges that during the robbery Cerros-Cruz and Lopez bound one of the employees, raped another employee and murdered a third person who arrived at the brothel during the commission of the rape and robbery and resisted the demands of the defendants.

The defendants face a maximum sentence of 20 years in prison for the conspiracy and for the robbery.

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

United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Steven E. Swaney, who are prosecuting the case.

Baltimore, Maryland – Michael Dale Irwin, age 27, of Rising Sun, Maryland, pleaded guilty today to the sexual exploitation of a minor to produce child pornography.

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

According to the 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.

As part of his plea agreement, 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).

Irwin 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, for sexual abuse of a minor to produce child pornography. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 23, 2013 at 3:00 p.m.

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

Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Lemoyne Veney, age 44, of Clarksville, Maryland, today to 51 months in prison, followed by five years of supervised release, for bank fraud conspiracy and aggravated identity theft. Judge Bennett also ordered Veney to pay restitution of $87,928.16.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office; and Harford County Sheriff L. Jesse Bane.

According to his plea agreement, from November 2007, through February 2011, Veney conspired with Theresa Smithrick, Kevin Pittman, and others in a scheme to use stolen personal identifying information (PII) to fraudulently obtain money from financial institutions. Specifically, in 2010 Veney met Smithrick, who was employed as a clerk at the Baltimore City District Court. Veney asked Smithrich to help him to gather personal identifying information, which she agreed to do. On approximately eight occasions, Veney gave Smithrick a sheet with eight to 10 names and accompanying PII, with some fields missing, such as driver’s license number, date of birth, or middle name. Smithrick completed the missing fields by accessing a secure Maryland Motor Vehicle Administration database and faxed the completed sheets to another co-conspirator, as directed by Veney. The co-conspirator who received the completed sheets provided driver’s licenses to Veney in exchange for the PII. In turn, Veney and other co-conspirators used the stolen PII, as well as the counterfeit driver’s licenses, to perpetuate the scheme.

Veney also created false businesses and supporting business documents, which he shared with his co-conspirators, including Kevin Pittman, so that he and his co-conspirators might incorporate some of the fraudulent businesses with the Maryland Department of Assessments and Taxation (“MDAT”) and other states’ departments of state. Veney and a co-conspirator would either sell the business information to others, or keep the information and attempt to establish related business checking accounts.

For example, Veney provided Pittman with fake identification, counterfeit supporting business documents, and counterfeit checks that Veney made in his home, which contained the stolen PII of unwitting victims but the pictures of Veney, Pittman and other conspirators. Pittman then used the counterfeit documents and compromised identities provided by Veney to incorporate fraudulent businesses. Veney also established matching business checking accounts for those fraudulent businesses for use in the scheme. Veney drove Pittman to various financial institutions in Frederick, Columbia and other locations in Maryland, where Pittman used the fake documents to open business and personal bank accounts. Pittman deposited the counterfeit business checks into these fraudulently opened bank accounts, then withdrew the funds before the checks could be identified as fraudulent. Pittman was paid a commission for each transaction. Veney also drove Pittman to supermarkets, where they cashed counterfeit checks, or purchased gift cards and other merchandise, with counterfeit checks drawn on real persons’ accounts, using the fraudulent identification documents provided by Veney as proof of identity.

As a result of the scheme, more than 50 victims lost a total of at least $70,000.

Theresa Smithrick age 47, of Baltimore, and Kevin Pittman, now using the name “Breona Pittman,” age 34, of Chesapeake, Virginia, both pleaded guilty to their roles in the scheme. Smithrick was sentenced to three months of home detention followed by three months of probation and was ordered to pay restitution of $71,752.72. Pittman was sentenced to 39 months in prison and was ordered to pay restitution of $87,928.16.

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 Harford County Sheriff’s Office for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Mark W. Crooks, who prosecuted the case.

                         Majority of Victims Were Non-Profit Clients Who Relied on the 

                                                           Mailings to Raise Funds      

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Stephen Reid, age 51, of Frederick, Maryland, today to two years in prison followed by three years of supervised release for conspiring to commit mail and wire fraud arising from the failure to provide contracted-for services to clients of Reid’s company. Judge Blake also ordered that Reid forfeit and pay restitution of $628,581.48, the amount of loss resulting from the fraud.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

“In addition to defrauding postal customers, this scheme jeopardized the reputation of the U.S. Postal Service with its customers,” said Gary Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service. “Through investigations such as this, postal inspectors will continue to protect postal customers and ensure thePostalService retains its reputation as the most trusted government agency.”

According to his plea agreement, Reid was vice president and owner of 35% of the shares of RMS Direct, Inc., a mail preparation service located in Frederick, with over 200 clients and annual revenue of over $5 million. Under the supervision of Reid and co-conspirator Chester Bigelow, the president and owner of 65% of the shares of RMS, RMS contracted to prepare and submit to the U.S. Postal Service (USPS) large-volume mailings, typically made up of pamphlets, brochures, books, and other printed materials.

RMS clients were primarily non-profit corporations that relied upon the mailings sent through RMS to raise funds, and the timing of the mailings was essential to their fundraising efforts. RMS assembled the mailings, applied the postage and addresses and organized the pieces of mail for submission to the USPS. RMS submitted the mailings to a full-time USPS acceptance clerk that was assigned to its office. As proof that the mailings went out, RMS then emailed its clients either of two USPS documents – a postage statement signed and certified by the USPS acceptance clerk or a mailing transaction receipt printed from an online USPS database. Both documents included information as to the dates, times, number of pieces of mail and postage paid. Once the RMS client received a statement, it would remit payment to RMS.

Reid admitted that the conspiracy began in 2005, when he and Bigelow falsified postage statements to misrepresent to RMS clients that mailings were being sent out in a timely fashion when, in fact, the mailings were late. Beginning in 2009, Reid and Bigelow selected certain mailings or portions of mailings that would not be submitted at all to USPS for delivery. They made sure that the documentation sent to the RMS client was falsified to indicate that the full mailing had been submitted, thereby causing the client to overpay RMS for postage and services.

To accomplish the fraud, Reid, Bigelow and RMS employees operating at their direction generated false postage statements, forged the signature of the USPS acceptance clerk and created a false impression of the special USPS date stamp used on the postage statement. In 2006, RMS employees made an unauthorized copy of the USPS acceptance clerk’s key to the filing cabinet where the official date stamp was kept. From that time until 2010, Reid, Bigelow and RMS employees operating at their direction used the copied key to gain access to the date stamp when the USPS acceptance clerk was not present in order to falsify postage statements. Beginning in 2010, when the computer-generated mailing transaction receipt was adopted by the USPS to certify mailings, Reid and Bigelow falsified those as well, using a document that had been created, which, when printed, looked identical to the USPS mailing transaction receipt. Reid and Bigelow directed RMS employees to use this document to create false mailing transaction receipts, which were then sent to RMS clients as proof of the timely and complete submission of their mailings.

Reid and Bigelow took other measures to conceal the fraud. For example, RMS clients often included pieces of mail known as “seeds” in the mailings they provided to RMS. These “seeds” were sent to particular individuals or addresses so that the client could track the timing and appearance of the mailing. Bigelow directed RMS employees to make sure to deliver the “seeds” from the mailings that were going out late or were not otherwise submitted to the USPS.

As a result of the scheme, at least 19 victims lost a total of $628,581.48.

Chester William Bigelow, age 58, of Woodbine, Maryland, pleaded guilty to the conspiracy and is scheduled to be sentenced on July 30, 2013 at 9:00 a.m.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service for its work in the investigation and thanked Special Assistant U.S. Attorney Matthew Lunder, a trial attorney with the Justice Department’s Antitrust Division, National Criminal Enforcement Section, who prosecuted the case.

                                                                   Loss of Approximately $1 Million       

Baltimore, Maryland - Kimberly Eileen McMillian, a/k/a Kimberly Simmons and Kimberly Simmons McMillian, age 46, of Baltimore, and Glenroy E. Day, Sr., age 73, of Oxon Hill, Maryland, pleaded guilty yesterday to wire fraud in connection with a fraud scheme involving more than $1 million in fraudulently obtained mortgages.

The plea agreement 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 Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office.

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

The government’s investigation revealed that virtually all of the information submitted in the four loan packages was false. In two cases, the purported buyers were individuals who had already returned to their home countries or planned to do so in the near future; the other two “buyers” listed on the loan applications were either stolen or fictitious identities. In none of the four cases was there a real individual who actually intended to live in the properties and make the mortgage payments on them. Moreover, the representations made and the supporting documentation provided on each loan application relating to the employment, income, and financial assets for each purchaser were likewise false. While acknowledging that she is guilty of the charged offense, and in particular that she was aware that the prices of all four properties were inflated, McMillian maintains that she was not aware that the information relating to each borrower’s income, employment, assets and intention to live in each property was fraudulent.

McMillian also did not disclose that she was going to buy the fourth property for $75,000 and then flip it to the fourth “buyer” the same day for $250,000, without any renovations having been done on the property, because she knew the lender would not have agreed to finance such a transaction. This property and the third property, which had also not been renovated, were in poor condition, and were being sold for prices that far exceeded their actual market value.

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

Based on the false information provided relating to the four “buyers” and the condition and market value of the properties, the mortgage company agreed to extend financing on each of the four properties, totaling $1.094 million in all.

At each of the four settlements, McMillian directed the settlement agent to transfer a substantial portion of the loan proceeds to her and/or to businesses named KayCee Associates or Dee-Ladok Investments that belonged to an associate, either pursuant to an assignment contract or to pay for renovations that had ostensibly been carried out on the properties by Kaycee Associates. In fact, all of the renovations performed on the first two properties were carried out and paid for by the man who sold them.

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

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

McMillian and Day face a maximum sentence of 30 years in prison and a $250,000 fine, and will be required to pay restitution for the full amount of the victims’ losses. U.S. District Judge George L. Russell III scheduled McMillian and Day’s sentencing for October 11, 2013 at 9:30 a.m. and 11:00 a.m., respectively.

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

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

United States Attorney Rod J. Rosenstein praised the FBI and U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Jefferson M. Gray, who is prosecuting the case.