District of Maryland

                       Victims Include At Least 25 Lenders, Buyers, Seller, Title Insurance 

                                                        Companies and Lien Holders    

Baltimore, Maryland - Rhonda Scott, age 52, of Oxon Hill, Maryland, pleaded guilty today before U.S. District Judge James K. Bredar to conspiring to commit wire fraud in connection with two separate mortgage fraud schemes which resulted in losses of over $2,500,000.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; Inspector General Jon T. Rymer of the Federal Deposit Insurance Corporation; Special Agent in Charge Joe Clarke of the Housing and Urban Development Office of Inspector General - Office of Investigations; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Gene E. Morrison, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office; and Howard County State’s Attorney Dario Broccolino.

According to her plea, beginning in 2008, Scott agreed to participate in several fraudulent real estate transactions that settled at M&R Title, Inc., and Sanford Title Services LLC. The fraudulent transactions at each title company were part of different conspiracies, both of which Scott joined. In both schemes, Scott facilitated deals between her co-conspirators, identified and recruited individuals that could be parties to the real estate transactions generating proceeds for the co-conspirators, received proceeds of the fraudulent transactions through a shell company designed to disguise her receipt of the funds, sent money to co-conspirators and identified mortgage transactions that the co-conspirators could use to enrich themselves.

As part of the M&R Title conspiracy, the co-conspirators deceived buyers, sellers and lenders to make it appear to sellers that they were selling their property at a low price, and to buyers and lenders that the property was being sold at a higher price. The co-conspirators created paperwork for two different sales of the property at the same time. The first sale was fraudulent because it was backdated, the buyer was planning to immediately flip the property in a subsequent sale and the settlement statement listed a fake hard money loan. The second sale involved a significantly increased sales price and the settlement statement showed a significant sum being disbursed to the hard money lender as a payoff of an existing lien, but in reality those funds would be used for improper disbursements to the co-conspirators.

With respect to the Sanford Title conspiracy, improper disbursements were made from the title company to Scott and others. The conspirators engaged in many fraudulent techniques, including: short sales in which the property would be sold for a higher price than the seller was aware of; sales of properties not owned by the seller including properties Scott purported to own but did not own at the time of settlement; real estate transactions in which there were multiple sales of the same property at the same time; the seller and/or buyer were shown difference settlement statements and the conspirators used the difference between the figures in the two statements to enrich themselves; and Sanford Title did not disburse money that should have been paid to lien holders and instead diverted a portion of those funds to co-conspirators.

Both of the M&R Title and Sanford Title fraud schemes involved at least 25 victims, including lenders, sellers and buyers of real estate, title insurance companies and lien holders. The reasonably foreseeable loss associated with Scott’s conduct is at least $2.5 million.

Scott will be required to forfeit at least $2.7 million and pay restitution of at least $1 million.

Scott faces a maximum penalty of 30 years in prison and a $1 million fine for conspiring to commit

wire fraud. No sentencing date has been scheduled.

Emeka Udeze, age 38, of Bowie, Maryland, and Niesha Williams, age 33, of Fort Washington, Maryland, each previously pleaded guilty to their role in the fraud schemes. No sentencing date has been scheduled for them at this time.

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

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

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, FDIC, HUD-OIG, FBI, Department of Justice OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Harry Gruber and Special Assistant United States Attorney Colleen McGuinn assigned to this case from the Howard County State’s Attorney’s Office, who are prosecuting the case.

Greenbelt, Maryland - Edgar Galdamez, age 36, of Rockville, Maryland, pleaded guilty today to wire fraud in connection with a mortgage fraud scheme which resulted in losses of over $515,000.

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

As a result of the fraud scheme, the lender lost at least $515,500. Galdamez will be required to forfeit at least $515,500 and pay restitution.

Galdamez faces a maximum penalty of 30 years in prison and a $1 million fine. U.S. District Judge Peter J. Messitte scheduled sentencing for November 5, 2013 at 9:30 a.m.

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

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Sujit Raman, who is prosecuting the case.

       Targeted Older, Retired Homeowners, Some of Whom Lost Their Life Savings

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Casey Charles, age 34, of Baltimore, today to 41 months in prison followed by three years of supervised release for mail fraud in connection with a scheme in which he promised to help clients make safe investments when in fact he diverted their money for his personal benefit. Judge Blake also ordered that Charles pay restitution and forfeiture of $890,356.90.

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

According to his plea agreement, beginning in 2007, Charles owned a company named Infinite Equity Strategies, LLC which he promoted as a financial strategies company that had not “lost a dime in the recession.” Charles held himself out as a financial specialist and safe money advisor, who could help his clients put their retirement funds into products that would provide “high returns without high risk.” Charles solicited potential clients by using direct mailings, newspaper ads and TV commercials. For these mailings, Charles targeted clients who were retired and/or between the ages of 55 and 80, married, owned their home and had an annual income over $25,000. Charles was not registered in Maryland, nor with the Securities and Exchange Commission, as an investment adviser.

Charles executed his scheme by using two methods. Under the first method, Charles told his clients to liquidate their current investments and provide him with the funds, so that he could place the money into safer investment accounts with higher returns. However, Charles instead deposited the funds into his own accounts. He used some of the fraudulently obtained funds to invest in risky and unauthorized investments on behalf of his clients, and for his own personal and business expenses, including credit card and mortgage payments. To conceal his scheme, Charles created fraudulent letters and account statements purporting to be from well-known financial products and services providers, in order to lead his clients into believing that he had in fact deposited their money into safe investment products as promised.

The second method used by Charles to defraud his clients involved recommending that his clients open accounts with a reputable self-directed IRA custodian where, he told them, they would be able to have more control over where to invest their funds. After his clients transferred their investment funds, however, Charles submitted forged documents to the trust company, directing it to transfer his clients’ funds to a bank account that he controlled. Charles used most of these funds for his own personal benefit and to promote his other businesses including a diamond investment scheme in Sierra Leone and the career of hip hop artist “Mullyman.”

Charles also concealed his scheme by using new client funds to make “lulling payments” to existing clients who requested to liquidate, or receive distributions from, the investments they thought Charles had set up for them.

As a result of his scheme, Charles defrauded over 22 clients of approximately $890,000 of their retirement funds, which in some cases were their life savings.

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

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division and the Securities Division of the Maryland Attorney General’s Office for their work in the investigation, and thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.

                     Sold Night Vision Goggles and Monocular on eBay
                                      

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Anthony J. Torresi, age 34, of Coral Gables, Florida late yesterday to 18 months in prison followed by three years of supervised release for unlawfully exporting night vision equipment.

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

“One of ICE's Homeland Security Investigations top enforcement priorities is preventing U.S. military products and sensitive technology from falling into the hands of those who might seek to harm America or its interests,” said William Winter, special agent in charge for HSI Baltimore. “This investigation is an example of HSI's partnership with the U.S. Attorney's Office in Maryland to combat this threat.”

According to his plea agreement, Torresi listed night vision goggles and night vision monoculars for sale on eBay. The items were designed to enable military ground troop personnel to conduct night operations. A license from the U.S. Department of State is required to export the items. Selling such items overseas without a license is a violation of the Arms Export Control Act.

On January 21, 2011 Torresi sold two of the night vision goggles for $7,039.99 to an undercover agent he believed to be located in New Zealand, but who was in fact located in Baltimore. Torresi exported the goggles on February 11, 2011 from Miami, Florida to New Zealand. The shipping label signed by Torresi showed the contents as a “gift” described as a “Rangefinder” valued at $70. Torresi never applied for a license to export these items.

Similarly, on March 29, 2011 Torresi sold a 6015-4 night vision monocular to the undercover agent he believed to be located in New Zealand for $6,099.89. On April 29, 2011, Torresi exported from Miami to New Zealand what he represented to be the 6015-4 night vision monocular that he sold for $6,099.98. In fact, Torresi shipped a different night vision monocular that he had purchased for $266 and which did not require a license to export.

United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Counterproliferation Investigations Task Force, a multi-agency task force headquartered at the offices of HSI, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory Welsh, who prosecuted the case.

Attorney Used Her Law Firm and Settlement Company to Facilitate Fraudulent 

                                                                     Loan Closings

Baltimore, Maryland -U.S. District Judge William D. Quarles, Jr. sentenced Seung E. Oh, a/k/a Sandy Oh, age 44, of Great Falls, Virginia, today to 51 months in prison, followed by three years of supervised release, for conspiracy to commit bank fraud and money laundering, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million. Judge Quarles also ordered that Oh pay a money judgment of $11,832,000, pay restitution of $3,593,432, and forfeit all the property involved in the offense.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

According to her plea agreement, Oh is an attorney with offices in Annandale, Virginia and the owner operator of Washington Settlement Group (WSG), a title company located in Annandale. In about 1998, Oh met Joon Park and his brother, Loren Park, who owned and operated Jade Capital, a loan brokerage company. Oh knew that Jade Capital specialized in securing loans for individuals interested in purchasing and refinancing small businesses in the Mid-Atlantic area, some of which were settled through Oh’s law firm and WSG. Oh knew that the Parks encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.

Over the course of Oh’s relationship with Joon and Loren Park, and to foster more business with their company, Oh agreed to use her settlement company and law firm to facilitate loan closings for deals that would otherwise fail to meet the lending parameters of the banks making the loans, including banks authorized to lend under SBA’s Section 7(a) program. Oh helped the Parks misrepresent to the banks and to the SBA the true amount of money involved in the transactions and/or the true names of the parties taking part in the transactions.

To accomplish this, Oh sometimes agreed to “netting” a transaction, whereby the Parks would negotiate a sale price with the seller that was less than the price listed on the sales contract submitted to the bank, and/or they would increase the loan by the amount needed for the down payment. In so doing, they reduced the amount of money that the buyer actually had to inject into the deal and concealed that the buyer did not have sufficient equity to qualify for the loan. To conceal these arrangements, Oh completed the settlement sheets as if the buyer had made the required cash injection and the seller had received the full contract price.

Another way that Oh helped to facilitate the loan closing for Jade Capital was when she “fronted” the buyer’s cash injection. Oh temporarily loaned part of the buyer’s up-front payment by taking other people’s money out of the escrow accounts of either her law firm or her title company. Joon and Loren Park then paid back the fronted money after the settlement, usually from their share of the proceeds from that deal or a later one. As with the “netting” scheme, the settlement sheets and all other related documents for the “fronted” deal would falsely reflect that the buyer injected his own money into the transaction in accordance with the agreed upon financing terms established by the lending institution.

Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 43, of Falls Church, Virginia, pleaded guilty and was sentenced to 188 months in prison. Judge Quarles also ordered Park to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense. Nick Park, a/k/a Nochol Park, age 46, of McLean, Virginia, was sentenced to 33 months in prison; and Joo Hyuk “John” Lee, age 39, of Richmond, Virginia, and Sang Hyun Kim, age 35, of Fairfax, Virginia, were each sentenced to three years in prison, for conspiracy to commit bank fraud. Kim’s wife, In Jung Ham, age 30, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Judge Quarles ordered Lee to pay restitution of $1,900,325 and ordered Ham to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively.

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 SBA Office of Inspector General, U.S. Postal Inspection Service and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who prosecuted the case.

Baltimore, Maryland – Medical device manufacturer TranS1, Inc., now known as Baxano Surgical, Inc., has agreed to pay the United States $6 million to resolve allegations under the civil False Claims Act that the company caused health care providers to submit false claims to Medicare and other federal health care programs for minimally-invasive spine surgeries.

The settlement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein; Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division; Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Drew Grimm, Office of Personnel Management, Office of Inspector General.

This settlement resolves allegations that TranS1 knowingly caused health care providers to submit claims with incorrect diagnosis or procedure codes for certain minimally-invasive spine fusion surgeries in which physicians used TranS1’s AxiaLIF System™, a device developed as an alternative to invasive spine fusion surgeries. The United States further alleges that TranS1 improperly counseled physicians and hospitals to bill for the AxiaLIF System™ by using incorrect and inaccurate codes intended for more invasive spine fusion surgeries. As a result, the United States contends that health care providers received greater reimbursement than they were entitled to for performing the minimally-invasive AxiaLIF procedures.

“A medical device manufacturer violates the law when it advises physicians and hospitals to report the wrong codes to federal health insurance programs in order to increase reimbursement rates,” said Rod J. Rosenstein, United States Attorney for the District of Maryland. “Health care providers are required to bill federal health care programs truthfully for the work they perform.”

“The Justice Department is committed to ensuring that medical device manufacturers follow the law when providing devices to beneficiaries of federal health care programs,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “It is critical that health care providers bill federal health care programs accurately and honestly for the work they perform, and it is imperative that they base their selection of medical devices on the best interests of their patients, not on whether a device manufacturer is paying them for promotional speaking or consulting.”

The settlement also resolves allegations that TranS1 knowingly paid illegal remuneration to certain physicians for participating in speaker programs and consultant meetings intended to induce them to use TranS1 products, in violation of the Federal Anti-Kickback Statute, and thereby caused false claime to be submitted to federal health care programs. The Anti-Kickback Statute, prohibits offering or paying remuneration to induce referrals of items or services covered by federally-funded programs and is intended to ensure that a physician’s medical judgments are not compromised by improper financial incentives and are based solely on the best interests of the patient.

Finally, the settlement resolves the United States’ allegations that TranS1 promoted the sale of its AxiaLIF System™ for uses that were not approved or cleared by the U.S. Food and Drug Administration, including in certain procedures to treat complex spine deformity, which were not covered by federal health care programs.

As part of the settlement, TranS1 has agreed to enter into a corporate integrity agreement with the Office of Inspector General of the Department of Health and Human Services. That agreement provides for procedures and reviews to be put in place to avoid and promptly detect similar conduct.

“Using kickbacks to encourage health providers to make false payment claims will not be tolerated,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “TranS1's agreement to now comply with government health laws is encouraging.”

The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. The civil lawsuit was filed in the District of Maryland and is captioned United States ex rel. Kevin Ryan v. TranS1, Inc. As part of today’s resolution, Mr. Ryan will receive $1,020,000 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, the Justice Department’s Civil Division, the Inspector General of Department of Health and Human Services, the Department of Defense Criminal Investigative Services and the Inspector General for the Office of Personnel Management. The case was handled by Assistant U.S. Attorneys Thomas Barnard and Thomas Corcoran and Trial Attorney Colin Huntley of the Justice Department Civil Division.

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Kintrell Todd McEachern, age 31, of Lochearn, Maryland, today to 12 years in prison followed by three years of supervised release for possession with intent to distribute crack cocaine. Judge Quarles also ordered that McEachern forfeit $13,601.50 seized during a search of his home.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief James W. Johnson of the Baltimore County Police Department.

According to McEachern's guilty plea, on January 24, 2012, law enforcement executed a search warrant at his residence and recovered a total of 344.2 grams of crack cocaine and $13,601.50 in cash. McEachern was arrested outside the home and searched. Law enforcement recovered 55.8 grams of crack cocaine from McEachern.

United States Attorney Rod J. Rosenstein commended the DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Brooke Carey and Peter M. Nothstein, who prosecuted the case.

                   Frequently Distributed Crack in Grocery Stores, Restaurants and Other Public Places

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Kevin Anthony Walker, age 43, of Germantown, Maryland, today to 20 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute crack cocaine. Judge Titus also ordered Walker to pay a fine of $7,000, and to forfeit $5,800 in cash and jewelry seized from his residence on December 9, 2011, as well as two vehicles.

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

According to Walker’s guilty plea, he was part of a conspiracy to distribute crack cocaine in and around Germantown, Maryland, from April 2011 through November 10, 2011. During the conspiracy, Walker purchased powder cocaine from sources of supply, which he then converted into crack cocaine. Walker had co-conspirators drive him to distribute crack cocaine to his customers, often in public places like grocery stores, drug stores, and fast food restaurants. To further his drug trafficking, Walker had others put apartments and automobiles in their names for Walker’s use. During the conspiracy, law enforcement intercepted calls to and from one of Walker’s cell phones and overheard Walker on a number of occasions arranging to purchase powder cocaine, to distribute crack cocaine and directing others to distribute crack on his behalf.

On December 9, 2011, law enforcement executed a search warrant at Walker’s residence and recovered 152 grams of crack cocaine, six grams of powder cocaine, drug paraphernalia, drug ledgers, and $5,800 in cash. Law enforcement also seized three watches, two rings, a bracelet, and a necklace appraised at $27,000, all of which were purchased with drug proceeds.

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

                                      Cashed Over 300 Checks Totaling $502,586 for Her Personal Benefit

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Cora Carper, age 32, of Churchton, Maryland, today to 37 months in prison followed by three years of supervised release for embezzling from a labor union’s political action committee. Judge Russell also entered an order that Carper pay $495,286 in restitution, the amount remaining from what she embezzled. Carper’s family previously paid $7,300.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor – Management Standards (DOL).

According to her plea, Carper was a secretary with the International Association of Heat and Frost Insulators and Allied Workers, and processed disbursement requests for the Insulators Political Action Committee (PAC) fund. Disbursement requests from the PAC fund had to be made in writing and only by certain officers of the Insulators local. For each requested disbursement, Carper was supposed to print a check from the PAC fund account that contained the electronic signatures of the Insulators general president and secretary-treasurer, and forward that check to the recipient. Carper also entered PAC fund receipts and deposits into a computerized ledger, made deposits in the PAC fund, and reconciled monthly PAC fund bank statements against the electronic ledger.

Carper admits that between June 2009 and February 2011, she printed more than 300 checks totaling approximately $502,586, from the PAC fund account made payable to “cash,” “cash reimbursement,” or “petty cash.” Union officials stated that Carper printed and cashed the checks without authorization, often cashing multiple PAC fund checks the same day. Carper endorsed the back of all but 13 of the more than 300 checks she cashed, and deposited at least $180,000 into her personal bank accounts. To cover up her embezzlement, Carper falsely indicated in the computerized ledger that the checks were written for donations to political candidates or to reimburse work expenses.

In early 2011, the Insulators general president confronted Carper about her embezzlement. Carper admitted that she had taken $7,300, but denied further embezzlement. Her family paid the Insulators $7,300. A subsequent internal investigation by the Insulators and DOL revealed that Carper’s embezzlement far exceeded her limited admission, with $502,586 in checks attributed to Carper’s embezzlement.

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 DOL, Office of Labor - Management Standards for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

                                  Cashed Over 300 Checks Totaling $502,586 for Her Personal Benefit
       

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Cora Carper, age 32, of Churchton, Maryland, today to 37 months in prison followed by three years of supervised release for embezzling from a labor union’s political action committee. Judge Russell also entered an order that Carper pay $495,286 in restitution, the amount remaining from what she embezzled. Carper’s family previously paid $7,300.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor – Management Standards (DOL).

According to her plea, Carper was a secretary with the International Association of Heat and Frost Insulators and Allied Workers, and processed disbursement requests for the Insulators Political Action Committee (PAC) fund. Disbursement requests from the PAC fund had to be made in writing and only by certain officers of the Insulators local. For each requested disbursement, Carper was supposed to print a check from the PAC fund account that contained the electronic signatures of the Insulators general president and secretary-treasurer, and forward that check to the recipient. Carper also entered PAC fund receipts and deposits into a computerized ledger, made deposits in the PAC fund, and reconciled monthly PAC fund bank statements against the electronic ledger.

Carper admits that between June 2009 and February 2011, she printed more than 300 checks totaling approximately $502,586, from the PAC fund account made payable to “cash,” “cash reimbursement,” or “petty cash.” Union officials stated that Carper printed and cashed the checks without authorization, often cashing multiple PAC fund checks the same day. Carper endorsed the back of all but 13 of the more than 300 checks she cashed, and deposited at least $180,000 into her personal bank accounts. To cover up her embezzlement, Carper falsely indicated in the computerized ledger that the checks were written for donations to political candidates or to reimburse work expenses.

In early 2011, the Insulators general president confronted Carper about her embezzlement. Carper admitted that she had taken $7,300, but denied further embezzlement. Her family paid the Insulators $7,300. A subsequent internal investigation by the Insulators and DOL revealed that Carper’s embezzlement far exceeded her limited admission, with $502,586 in checks attributed to Carper’s embezzlement.

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 DOL, Office of Labor - Management Standards for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

       Stole Tools and Scaffolding Which He Sold at Pawn Shops in Baltimore, Anne Arundel and Queen 

                                                                                            Anne’s Counties

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Brandon Scott Gauss, age 28, of Preston, Maryland today to a year and a day followed by three years of supervised release for stealing government property from the Goddard Space Flight Center, part of the National Aeronautics and Space Administration (NASA). Judge Grimm also ordered that Gauss pay restitution of $11,574.35 to the U.S. government; $4,461 to Fast Cash Pawn Shop in Annapolis, Maryland; and forfeit at least $29,412.89.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Inspector General Paul K. Martin, NASA Office of Inspector General.

According to his plea agreement, Gauss was a contract employee at NASA. As an engineering technician at the Goddard Space Flight Center, he had access to tools and other property NASA owned. From October 2011 through November 2012, Gauss stole tools and aluminum scaffolding belonging to the government, which he sold to pawn shops for cash. Gauss made over 60 visits to pawn shops throughout Maryland, including Baltimore, Anne Arundel and Queen Anne Counties, and received at least $16,974. The government has recovered some of the items, worth at least $29,736. Gauss admits that he owes the government at least $11,574.35, the money he received from selling the stolen materials the government has been unable to recover.

United States Attorney Rod J. Rosenstein praised the NASA OIG, Office of Investigations for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack and Sujit Raman, who prosecuted the case.

                                                       Attempted to Rob Two More Banks

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Jeffrey Wayne Malcolm, age 56, of Laurel, Maryland, today to 8 years in prison followed by three years of supervised release for bank robbery.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Frederick County Sheriff Charles A. “Chuck” Jenkins.

According to his plea agreement, Malcolm robbed the following four banks: PNC Bank at 7451 VanDusen Road in Laurel of $1,327 on October 28, 2011; PNC Bank at 1621 West Liberty Road in Sykesville of $3,597 on January 17, 2012; and the Suntrust Bank at 11323 Fingerboard Road in Monrovia of $1,776 on January 25, 2012, and $4,388 on February 4, 2012.

Malcolm also attempted to rob the PNC Bank at 15290 Frederick Road in Woodbine on November 7, 2011, but the teller refused to hand over money. Two days later he attempted to rob the PNC Bank at its VanDusen branch, but when a teller saw him approach the bank wearing a ski mask, bank employees locked the front door, preventing him from entering.

United States Attorney Rod J. Rosenstein commended the FBI, Laurel Police Department, Howard County Police department, Maryland Police Department, Frederick County Bureau of Investigations and Frederick County State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.

Failed to Report Income and Assets Totaling Over $740,000 and Attempted to Fraudulently Discharge 

                                                              Debts of Over $1.1 Million Through Bankruptcy

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Ricardo O. Curry II, age 43, of Randallstown, Maryland, today to 87 months in prison, followed by three years of supervised release for assisting in the filing of false tax returns, bankruptcy fraud, falsifying bankruptcy records and false testimony under oath at a bankruptcy proceeding. Judge Quarles also ordered Curry to pay restitution of $1,114,988.51 to the creditors in his bankruptcy case and $118,182 to the IRS. Curry was convicted by a federal jury on March 20, 2013 and has been detained since that time.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and U.S. Trustee Judy Robbins and the Baltimore Office of the United States Trustee Program, the Department of Justice component that supervises the administration of bankruptcy cases.

According to evidence presented at his three day trial, Curry worked for Peerless Real Estate Services, Inc., a North Carolina corporation that oversaw the sale of property in North Carolina, including a development which contained more than 2000 lots. Curry recruited at least 12 investors to purchase at least 23 lots in the development and he received referral fees based on these sales. In 2005, 2006, and 2007, respectively, Curry earned referral fees of $41,455, $43,200, and $330,546. Although Curry reported the income he received as a sales representative for a pharmaceutical company on his 2005, 2006, and 2007 tax returns, he failed to report these referral fees, totaling $415,201.

On March 12, 2009, Curry filed for Chapter 13 bankruptcy in the United States Bankruptcy Court for the District of Maryland. On April 21, 2009, Curry filed a Statement of Financial Affairs with the bankruptcy court, which reported the income he earned as a pharmaceutical sales representative for tax years 2005, 2006, and 2007, but failed to report the $415,201 he earned in referral fees from Peerless. Curry also failed to disclose his ownership interest in a home worth approximately $325,000. On July 28, 2009, Curry filed an Amended Statement of Financial Affairs, which again failed to disclose the $415,201 in referral fees, and his ownership interest in the home. On October 20, 2009, Curry testified under oath at meeting of the creditors, falsely stating that all of his assets were listed in his bankruptcy filing, when in fact, Curry knew that he had not reported the referral fees, nor his home ownership. Ultimately, Curry never provided documents to the trustee overseeing his bankruptcy case regarding either the referral fee income or the home, and as a result, on April 12, 2010, Curry’s attempt to discharge his debts through bankruptcy was denied.

United States Attorney Rod J. Rosenstein praised the IRS-CI, FBI and U.S. Trustee’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I. Sharfstein, who prosecuted the case.

Baltimore, Maryland – Dwight McCloud Newman, age 63, of Gwynn Oak, Maryland pleaded guilty today to Title II program fraud.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division; and Inspector General Kim R. Lampkins, Special Agent in Charge, Mid Atlantic Field Office, Washington, DC of the U.S. Department of Veterans Affairs (VA).

According to his plea agreement, Newman’s father received Social Security retirement and Veteran disability benefits at the time of his death on January 7, 2007. The benefits were directly deposited into a checking account in which Newman and his father were joint account holders. Newman failed to notify SSA or VA of his father’s death. As a result, from January 7, 2007 to November 3, 2011, SSA deposited $62,110 into the checking account, and VA deposited $16,995 from January 7, 2007 to November 30, 2012. Newman withdrew or spent substantially all of these benefits for his own benefit.

Newman faces a maximum sentence of five years in prison and a $250,000 fine for Title II program fraud. Newman agrees to pay restitution of $79,105, including $7,000 to be paid at the time of sentencing. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for October 15, 2013 at 1:00 p.m.

United States Attorney Rod J. Rosenstein praised the SSA–OIG and VA-OIG for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Paul K. Nitze of the SSA, who is prosecuting the case.

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Antonio Lamont Johnson, a/k/a Tracey Johnson, age 44, of Baltimore, Maryland, today to 13 years in prison, followed by four years of supervised release, for conspiracy to distribute and possession with intent to distribute heroin.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Baltimore City State’s Attorney Gregg L. Bernstein; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore Police Commissioner Anthony W. Batts.

“Today's sentencing exiles a heroin distributor and career criminal to federal prison,” stated Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration, Washington Field Division. “This is drug interdiction at its best. Quick and effective cooperation between our law enforcement partners in conjunction with the utilization of various investigative techniques brought this case to a successful conclusion,” added Colder.

According to his plea agreement, on September 2, 2012, DEA agents stopped a car carrier in El Paso, Texas. A drug detection dog alerted on a vehicle on the carrier, registered in Pikesville, Maryland, for the presence of narcotics. Investigators discovered a hidden compartment in the roof of the vehicle containing 4.6 kilograms of heroin, with a wholesale value of approximately $300,000.

Investigators brought the car carrier and the vehicle to Baltimore and a controlled delivery of the heroin was made on September 6, 2012. Johnson was seen paying the truck driver and then driving the vehicle into Baltimore. Johnson met with a co-conspirator, who took possession of the vehicle and parked it in a secluded section of a parking lot. They accessed the heroin. Agents then approached the vehicle and saw a kilogram open to view next to the co-conspirator, who was seated in the driver’s seat. Johnson and the co-conspirator were arrested.

United States Attorney Rod J. Rosenstein commended the DEA, Maryland Transportation Authority Police, Baltimore County Police Department, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and David I. Sharfstein, who prosecuted the case.

Baltimore, Maryland - Lucerte “Lisa” Abellard, age 35, of Dobbs Ferry, New York, pleaded guilty today to conspiracy to commit wire fraud in connection with a scheme to defraud Lowe’s stores.

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

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

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

The total loss to Lowe’s as a result of the scheme was more than $250,000. The government contends that Abellard was the leader of the scheme and will offer evidence to prove that at sentencing

Abellard faces a maximum sentence of 20 years in prison and a fine of $250,000. U.S. District Judge Ellen L. Hollander scheduled his sentencing for September 26, 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 thanked the U.S. Secret Service for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Justin S. Herring, who is prosecuting the case.

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced David Charles Richards, age 49, of Phoenix, Arizona, today to 42 months in prison, followed by three years of supervised release, for stalking a woman in Maryland. As part of his sentence, Judge Hollander ordered that Richards have no contact with the victim or her family.

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.

“David Charles Richards violated the federal law against stalking, by using the internet to engage in a course of conduct that was intended to and did place a person in reasonable fear of death or serious bodily injury,” said U.S. Attorney Rod J. Rosenstein.

According to Richards’ guilty plea, from December 2006 through November 2011, Richards used the internet, telephone, electronic mail and the U.S. mail to stalk a woman in Maryland, including threatening to kill the woman. Richards and the woman had a prior romantic relationship, which the woman described as both troubled and violent.

According to Richards’ plea agreement, after not having any contact with the victim for almost 15 years, in June 2006, Richards contacted the victim’s sister telling her that he still loved the victim but wanted to hurt her. Beginning in July 2006, and during each subsequent year, the victim sought and was granted protective orders forbidding Richards to contact her. On December 11, 2006, the victim discovered that a website had been created in her name, which included a countdown clock to the expiration of the protective order the victim had taken out against Richards and other threatening material. In March of 2008, Richards attempted to purchase a firearm in Arizona, but failed to disclose that he was subject to a protective order. He was denied purchase of a firearm by ATF due to his prohibited person status. In December 2009, Richards mailed a threatening note, along with torn and shredded pieces of the protective orders that had been served upon him, to the victim’s home. Through January 2010, Richards left the victim at least eight voicemails totaling one hour and 40 minutes in length. Richards continued to post threats on websites directed at the victim, including as recently as November 2011. Richards’ long campaign of harassment and threats placed the victim in fear of death and serious harm.

United States Attorney Rod J. Rosenstein praised the FBI agents in Baltimore and Phoenix for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Rachel M. Yasser and Kristi N. O’Malley, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Lorenzo Solomon, age 28, of Baltimore, Maryland, today to 188 months in prison, followed by four years of supervised release, for a conspiracy to import cocaine from St. Vincent and distribute it in Maryland. Judge Titus enhanced Solomon’s sentence upon finding that he was a leader of the conspiracy and that he obstructed justice by attempting to intimidate witnesses to prevent them from testifying truthfully against him at trial.

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); U.S. Customs and Border Protection Baltimore Port Director Ricardo Scheller; and the agencies participating in the Metropolitan Area Drug Task Force.

According to the evidence presented at Solomon’s four day trial, Solomon served as the leader and organizer of a conspiracy involving Ronnie George and others to import cocaine from St. Vincent and distribute that cocaine in Maryland. Between April and December 2010, Solomon arranged with coconspirators located in St. Vincent to send him packages containing up to a kilogram of cocaine at a time hidden in the soles of flip-flop style slippers, both to his own address and to the address of others. Once Solomon retrieved the packages, he would remove the cocaine and sell the cocaine to others in Maryland who would then distribute it.

To pay for the drugs, witnesses testified that Solomon arranged to have multiple friends and family members send large amounts of cash via Western Union and Moneygram, most frequently in $2,000 increments, which Solomon provided them. Solomon recruited coconspirator Ronnie George to send money on his behalf. In addition to providing him cash to send to St. Vincent, Solomon provided George several hundred dollars in cash or merchandise as compensation for sending money. Solomon suggested that George recruit friends to send money to reduce the chance of the scheme being detected, which he did. Solomon also recruited his sister, girlfriend and others to send money to St. Vincent for him. According to court documents, more than 17 individuals sent a total of $117,270 from the U.S. to St. Vincent between April and November 2010.

According to trial testimony, on November 26, 2010, Customs and Border Protection (CBP) officers intercepted package of cocaine-filled flip flops intended for Solomon, but addressed to a friend. CBP transferred the package to the Metropolitan Area Drug Task Force to attempt a controlled delivery of the package to the Takoma Park address listed on the package. After unsuccessfully attempting to deliver the package on December 6, 2010, law enforcement left a note on the door advising of the attempted delivery of the package and providing a telephone number to call to arrange delivery. Witness testimony showed that Solomon was advised of the arrival of the package and at Solomon’s direction, delivery of the package was arranged for the next day. After the package was delivered, phone records show that a call was placed to Solomon to let him know of the delivery. A short time later, HSI agents executed a search warrant, recovering the drugs. Ronnie George was also arrested after he arrived to pick up the package for Solomon.

Solomon left the area, eventually traveling to St. Vincent, where, in February 2011, he filed paperwork with the St. Vincent government to form a business, apparently in an effort to create a cover story as to why he had sent so much money to St. Vincent. Solomon returned to the United States in March 2011. On April 6, 2011, George and Solomon were indicted on drug conspiracy charges. George was arrested and pleaded guilty, but Solomon was not located until after George’s sentencing in March 2012.

According to witness testimony, Solomon requested that a witness change her story so as not to implicate Solomon in the drug conspiracy, but the witness refused. Evidence was also presented that during preparation for trial several witnesses contacted law enforcement to advise that they or members of their family were being threatened to prevent the witness’ testimony against Solomon. As a result of these threats, Judge Titus ordered that Solomon be taken into custody on the first day of his trial, March 12, 2013, and he has been detained since that time.

Ronnie George, age 27, of Owings Mills, Maryland pleaded guilty to his participation in the drug conspiracy and was sentenced to a year and a day in prison.

United States Attorney Rod J. Rosenstein commended HSI Baltimore, U.S. Customs and Border Protection and the agencies participating in the Metropolitan Area Drug Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kristi N. O’Malley and Adam K. Ake, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Jonas Purisch, age 39, of Perry Hall, Maryland today to three months in prison, followed by one year of supervised release, for subscribing to a false tax return and failing to file a tax return. Judge Bredar also ordered Purisch to pay restitution of $210,019.04 to the IRS, including interest, and to pay a fine of $30,000.

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.

“Unlike Mr. Purisch, the vast majority of America’s taxpayers play by the rules and fulfill their tax obligations,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “IRS Criminal Investigation is committed to working with the US Attorney’s Office to bring to justice those, like Mr. Pursich, that intentionally do not report their correct income.”

According to his plea agreement, Purisch owned and operated JP Staffing, Inc., a company based in Baltimore which provided temporary factory workers. JP Staffing paid its employees in cash. Purisch earned significant amounts of revenue from his operation of the business. In order to avoid paying income taxes, Purisch deposited his income from the business into one of his two personal bank accounts.

In the years 2006 and 2007, Purisch filed individual federal income tax returns which understated his income. Purisch falsely stated in his 2006 tax return that his income was $52,870, when in fact he deposited $276,572 of income into his personal bank accounts. Purisch’s unpaid personal income tax for 2006 was $17,851. Purisch falsely stated on his 2007 tax return that his income was $4,000, when in fact he earned $375,158, resulting in personal income tax liability of $48,410 for 2007.

Purisch deposited $457,499 of income into his personal bank accounts in 2008, and deposited $280,426 in 2009, but never filed a 2008 or 2009 tax return. Purisch’s unpaid personal income tax was $73,836 in 2008, and $41,100 in 2009.

The total tax loss in this case including interest on unpaid taxes is $210,019.04.

United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Peter M. Nothstein, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Raymon Lee, age 26, of Baltimore, Maryland, today to 15 years in prison followed by three years of supervised release for being a felon in possession of a gun. Judge Bredar enhanced Lee’s sentence upon finding that Lee is an armed career criminal based on three previous drug and violent felony 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; Maryland Attorney General Douglas F. Gansler; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.

According to his plea agreement, on December 8, 2011 Baltimore police officers saw Lee walking in the area of Hayward and Denmore Avenues in Baltimore. Information had recently been provided that Lee was being sought for questioning as a person of interest in a shooting investigation. When one of the officers approached Lee and advised that a detective wanted to speak with him in reference to an investigation, Lee attempted to run. Lee reached into his pants and removed a loaded handgun, throwing it over a parked minivan onto the sidewalk. After a struggle, Lee was arrested and the officers recovered the handgun and ammunition. Lee had previously been convicted of a felony and was prohibited from possessing a gun.

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

Baltimore, Maryland – A federal jury today convicted Maurice Colbert, age 59, of Baltimore, Maryland on charges of armed bank robbery, forcing a bank employee at gunpoint to accompany him around that bank, and brandishing a firearm during a crime of violence.

The conviction 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.

According to the evidence presented at his four day trial, Colbert robbed the First Mariner Bank in Middle River, Maryland on November 7, 2011, stealing $31,153. Witnesses testified that Colbert entered the bank, announced the robbery and brandished a gun at customers and bank employees, even forcing a bank employee at gunpoint to accompany him around the bank. After bank employees handed over the money Colbert demanded, he fled the bank. According to witness testimony, Colbert was subsequently arrested at a nearby business. At the time of his arrest, Colbert had dye stains on his pants and socks and dye stained cash was found in his pants pockets. According to trial testimony, Colbert had a previous felony conviction.

Colbert faces a maximum sentence of 25 years in prison for armed bank robbery; a mandatory minimum of 10 years in prison for forcing the bank employee to accompany him; and a minimum of seven years and a maximum of life prison, consecutive to any other sentence imposed, for brandishing a firearm during a crime of violence. U.S. District Judge Catherine C. Blake scheduled sentencing for October 4, 2013, at 9:15 a.m.

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

Baltimore, Maryland – A federal jury today convicted Maurice Colbert, age 59, of Baltimore, Maryland on charges of armed bank robbery, forcing a bank employee at gunpoint to accompany him around that bank, and brandishing a firearm during a crime of violence.

The conviction 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.

According to the evidence presented at his four day trial, Colbert robbed the First Mariner Bank in Middle River, Maryland on November 7, 2011, stealing $31,153. Witnesses testified that Colbert entered the bank, announced the robbery and brandished a gun at customers and bank employees, even forcing a bank employee at gunpoint to accompany him around the bank. After bank employees handed over the money Colbert demanded, he fled the bank. According to witness testimony, Colbert was subsequently arrested at a nearby business. At the time of his arrest, Colbert had dye stains on his pants and socks and dye stained cash was found in his pants pockets. According to trial testimony, Colbert had a previous felony conviction.

Colbert faces a maximum sentence of 25 years in prison for armed bank robbery; a mandatory minimum of 10 years in prison for forcing the bank employee to accompany him; and a minimum of seven years and a maximum of life prison, consecutive to any other sentence imposed, for brandishing a firearm during a crime of violence. U.S. District Judge Catherine C. Blake scheduled sentencing for October 4, 2013, at 9:15 a.m.

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

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Mack Easy Holland, age 40, of Upper Marlboro, Maryland, today to 15 years in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute phencyclidine (PCP), crack cocaine and heroin, as well as possession of a firearm in furtherance of a drug trafficking offense.

On June 19, 2013, Judge Titus sentenced Norman Lee, Jr., age 36, of Washington, D.C., to 188 months in prison, followed by four years of supervised release, for conspiracy to possess with intent to distribute phencyclidine (PCP). Judge Titus enhanced Lee’s sentence upon finding that he was a career offender based on three previous drug convictions.

The sentences were 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 Mark A. Magaw of the Prince George’s County Police Department; and Chief Cathy L. Lanier of the Metropolitan Police Department.

According to their guilty pleas, from at least June 2010 through February 2012, Holland and Lee were a part of a drug trafficking conspiracy based in and around Temple Hills, Maryland that was led by Samuel Braxton. Braxton regularly received multi-ounce to quarter-gallon quantities of PCP from Holland, who was his primary source of supply, and would then add starter fluid or other chemicals to the PCP to increase its quantity. Also during this time period, Braxton received heroin, and crack and powder cocaine from other sources of supply. Braxton sold the PCP, heroin, and crack to regular drug customers in the Washington, D.C. metropolitan area, including Prince George’s County.

On a weekly basis from November 2011 through January 2012, Holland was overheard by law enforcement in phone conversations with Braxton in which they discussed the sale of and arranged transactions involving PCP. On January 5, 2012, Holland was arrested. Law enforcement seized approximately 24 ounces of PCP and 48 grams of heroin, $2,958 in cash and three cell phones from Holland and his car. A subsequent search of Holland’s residence recovered three metal gasoline canisters containing approximately three gallons of PCP from a shipping box outside the house, a 32 ounce bottle full of PCP in the house, four handguns, two of them loaded and over $48,000 in cash. Holland had a previous felony conviction and was prohibited from possessing firearms or ammunition.

In late December 2011, Braxton provided approximately eight ounces of PCP to co-conspirator Maurice Allen, who redistributed those eight ounces of PCP to Lee. Lee was dissatisfied with the quality of the PCP and complained to Allen. Allen advised Braxton that his customer was not satisfied with the quality of the PCP that Allen had provided him and Braxton agreed to exchange four ounces of PCP for a new batch. On January 10, 2012, Allen and Lee drove to Braxton’s apartment in Temple Hills to exchange the PCP, then to a bowling alley, where Allen got out of the car. Law enforcement stopped Lee a short time later and seized four ounces of PCP from Lee.

Over the course of the conspiracy Lee was responsible for the distribution of between 100 and 400 grams of PCP. Holland was responsible for the distribution of at least 12 kilograms of PCP and 48 grams of heroin.

Samuel Braxton, a/k/a “Fats,” age 44, of Temple Hills, Maryland, was sentenced on April 3, 2013, to 27 years in prison for conspiracy to possess with intent to distribute PCP, crack cocaine and heroin. Maurice Allen, a/k/a “Reece,” age 45, of Waldorf, Maryland, pleaded guilty and was previously sentenced to a year and a day in prison.

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 William D. Quarles, Jr. sentenced Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 43, of Falls Church, Virginia, today to 188 months in prison followed by five years of supervised release for conspiring to commit bank fraud in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million. Judge Quarles also ordered Park to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

“SBA underwriters approved $100 million in business loans brokered by Jade Capital based on fraudulent bank statements, checks, gift letters, resumes and tax returns that made it appear as if the borrowers had invested money in the businesses,” said U.S. Attorney Rod J. Rosenstein. “When borrowers and brokers submit false information and fraudulent documents, the underwriting process is defeated and the taxpayers bear the loss.”

According to his plea agreement, Joon Park and his brother, Loren Park, owned and operated Jade Capital, a loan brokerage company specializing in securing loans for individuals interested in purchasing or refinancing small businesses in the Mid-Atlantic area. According to the indictment, Joon and Loren Park and others under their direction encouraged prospective borrowers to apply for business loans through an SBA program which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under the program, the principals of the small business seeking the loan were required to invest a certain amount of their own money before they qualified for a loan. The banks and other lenders bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.

Joon Park admitted that from 2003 until October 2011, he and others under his direction including Nick Park (no relation), Joo Hyuk “John” Lee, Sang Hyun Kim, and In Jung Ham, submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients that contained fraudulent documents, including: bank statements for borrowers that were altered to make it look like the borrowers had more cash to inject into the business they were buying than they in fact did; counterfeit cashier’s checks and fake gift letters that made it look like the borrowers had more assets at their disposal to use as down payments than they did; fabricated resumes that made it look like the borrowers had more experience running the businesses they sought to purchase than they did; fake tax returns that made it look like the borrowers had greater income than they did; phony interim financial statements that made other businesses the borrowers owned look more profitable than they were; and a number of other misrepresentations.

The Parks charged a loan brokerage fee to both the financial institutions and the borrowers for assembling and submitting loan application packages that resulted in the issuance of SBA-guaranteed loans. The fees charged to borrowers were hidden from the financial institutions underwriting the loans. The Parks also had undisclosed ownership interests in businesses involved in some of the transactions and received loan proceeds, unbeknownst to the lenders, in a number of transactions. In one instance, the Parks did not have an ownership interest in a company involved in a transaction but persuaded the seller to assign some of the loan proceeds to them and then converted those proceeds to their own personal use.

Joon Park also worked with settlement attorney Seung E. Oh, to facilitate loan closings for deals that would otherwise fail to meet the lending parameters of the banks making the loans, by misrepresenting to the banks and to the SBA the true amount of money involved in the transactions and/or the true names of the parties taking part in the transactions. In addition to conducting fraudulent closings, Oh wired money to Jade Capital clients to make it appear as though they qualified for loans when they did not, and received, at Joon Park’s direction, loan proceeds to repay those loans.

Nick Park, a/k/a Nochol Park, age 46, of McLean, Virginia, was sentenced to 33 months in prison; and Joo Hyuk “John” Lee, age 39, of Richmond, Virginia, and Sang Hyun Kim, age 35, of Fairfax, Virginia, were each sentenced to three years in prison. Kim’s wife, In Jung Ham, age 30, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Judge Quarles ordered Lee to pay restitution of $1,900,325 and ordered Ham to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively. Seung E. Oh, a/k/a Sandy Oh, age 44, of Great Falls, Virginia, pleaded guilty to conspiracy to commit bank fraud and money laundering, and is scheduled for sentencing on July 9, 2013 at 1:00 p.m.

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 SBA Office of Inspector General, U.S. Postal Inspection Service and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Alan Clifton, age 27, of Halethorpe, Maryland, today to 7 years in prison, followed by 30 years of supervised release, for possession, receipt and transportation of child pornography. Judge Bennett ordered that upon his release from prison Clifton 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; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.

According to evidence presented at his four day trial, Clifton used a file sharing program to share images of child pornography. On October 11, 2011, an undercover detective downloaded three videos depicting minors engaged in sexually explicit conduct from Clifton’s files. A search warrant was subsequently executed at Clifton’s residence by the Baltimore County Police Department Crimes Against Children Unit and officers seized Clifton's laptop computer, which was found in his bedroom, another computer, an external hard disk drive, and other digital media. An on-scene forensic scan of Clifton's laptop computer revealed images of child pornography. A subsequent forensic examination of the external hard drive recovered 3700 files of child pornography, including the three videos that had been downloaded by the undercover detective.

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

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

                                             Misused Her Government Credit Card to Purchase Personal Items

Greenbelt, Maryland – Mary Michelle Thompson, age 42, of Glen Burnie, Maryland, pleaded guilty today to theft of government property in connection with her misuse of her government credit card.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.

According to her plea agreement, between January 2010 and February 2012, Thompson was an employee of the Department of Health and Human Services (HHS) and was authorized to use a government credit card to purchase items for official use in her office or by HHS employees in their work.

Thompson admitted that beginning no later than January 2010, she began to buy personal items that were not needed or used for the operations of her office at HHS and were not delivered to or used by HHS personnel. These items included electronics, sporting goods and gift cards to retailers. The total value of the purchases was over $16,000.

In June 2012, an HHS auditor asked Thompson to provide copies of documents supporting some of the purchases made with her government credit card. Thompson submitted forged vendor invoices altered to reflect fictitious legitimate purchases in the amounts of her unauthorized expenditures. When confronted with the discrepancies between her documentation and the documentation obtained directly from the vendors, Thompson claimed that she did not recall receiving or ordering the items. Thompson resigned from HHS shortly thereafter.

A search of her residence on December 18, 2012, recovered many of the person items purchased with her government credit card including a 32GB iPod Touch and iPod accessories, a Blackberry Playbook, a Bose headset, roller skates, pool cues and shoes. The serial number on the iPod Touch recovered from Thompson’s residence matched the serial number on the invoice obtained directly from Apple which showed that it was purchased with Thompson’s government credit card.

Thompson faces a maximum sentence of 10 years in prison and a fine of $250,000. U.S. District Judge Alexander Williams, Jr. has scheduled sentencing for October 2, 2013.

United States Attorney Rod J. Rosenstein praised the HHS-OIG Special Investigations Branch for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis R. Weisman, who is prosecuting the case.

According to the indictment, the Smiths also caused more than $1 million, which had been transferred from Platinum One to their bank accounts and to casinos on their behalf, to be falsely recorded in Capitol Contractors’ books and records as corporate expenses paid for subcontractors, and concealed this fact from their tax preparer. As a result, the indictment alleges that their tax preparer prepared corporate tax returns for Capitol Contractors which falsely overstated the company’s expenses, and prepared personal income taxes for the Smiths which falsely understated their taxable income, thereby falsely understating the amount of taxes owed to the IRS.

The defendants face a maximum sentence of five years in prison for the conspiracy; and three years in prison for making and subscribing a false tax return and for aiding and assisting in the preparation of false tax returns. Vernon J. Smith III also faces a maximum of 20 years in prison for each count of wire fraud. No court appearance has been scheduled.

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

Anthony Wright, age 42, of Bowie, Maryland, pleaded guilty on June 18, 2013, to his role in the scheme and is scheduled to be sentenced on September 30, 2013.

United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General; Defense Criminal Investigative Service; IRS Criminal Investigation; and the GSA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin and Trial Attorney Kenneth C. Vert of the U.S. Department of Justice Tax Division, who are prosecuting the case.

                           Alleged to Have Fraudulently Obtained Over $50 Million in Government Contracts

Greenbelt, Maryland - A federal grand jury today indicted Vernon J. Smith III, age 61, and his wife, Georgia Smith, age 52, both of Edgewater, Maryland, on charges related to schemes to fraudulently seek federal contracts under a Small Business Administration program to assist socially and economically disadvantaged small businesses; and to file false tax returns.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and General Services Administration Inspector General Brian D. Miller.

“The 8(a) Business Development Program offers significant benefits to eligible small businesses and helps small, disadvantaged businesses compete in the marketplace,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “Preferences for federal contract awards must not be given to persons who lie in order to claim eligibility. We appreciate the support of our law enforcement partners to bring this indictment forward.”

“Individuals who intentionally do not report all of the income earned from businesses they own violate U.S. tax law,” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “IRS Criminal Investigation is committed to maintaining the integrity of our tax system and ensuring that everyone pays their fair share of taxes.”

According to the 11 count indictment, in August 1999, Vernon Smith caused Platinum One Contracting, a roofing and construction company, to be incorporated. At the time, Smith also owned less than 50% of Capitol Contractors, another roofing and construction company. Capitol Contractors participated in the SBA’s Section 8(a) program, which provides assistance to socially and economically disadvantaged small businesses, including help in obtaining federal contracts. Smith arranged for Anthony Wright, an African-American who was a former roofer and project manager at Capitol Contractors to own 60% of Platinum One and Smith’s son to own the remaining 40% of the corporation. Vernon Smith received the title of senior vice president and Georgia Smith was in charge of accounting and maintaining Platinum One’s books and records. In March 2002, Capitol Contractors was no longer eligible to participate in the Section 8(a) program and Vernon Smith became the company’s president and sole owner, with his wife, Georgia Smith, in charge of accounting and maintaining the company’s books and records.

The indictment alleges that from August 1999 to June 2013, Vernon J. Smith III and Georgia Smith, conspired to defraud the SBA by concealing that Vernon J. Smith controlled Platinum One’s operations, not Anthony Wright. For example, the indictment alleges that Platinum One’s Section 8(a) application did not reveal that Vernon and Georgia Smith had personally guaranteed bonding, bank loans and lines of credit for Platinum One and that Platinum One paid millions of dollars to the Smiths. According to the indictment, these payments included salary, payments to Capitol Contractors; payments to casinos on behalf of Vernon and Georgia Smith; and personal charges by Vernon and Georgia Smith to Platinum One’s credit cards. Based on the fraudulent application, the SBA approved Platinum One for participation in the Section 8(a) program. The indictment alleges that as a result, Platinum One received more than $50 million in contracts from the federal government under the Section 8(a) program, to which it was not entitled.

According to the indictment, the Smiths also caused more than $1 million, which had been transferred from Platinum One to their bank accounts and to casinos on their behalf, to be falsely recorded in Capitol Contractors’ books and records as corporate expenses paid for subcontractors, and concealed this fact from their tax preparer. As a result, the indictment alleges that their tax preparer prepared corporate tax returns for Capitol Contractors which falsely overstated the company’s expenses, and prepared personal income taxes for the Smiths which falsely understated their taxable income, thereby falsely understating the amount of taxes owed to the IRS.

The defendants face a maximum sentence of five years in prison for the conspiracy; and three years in prison for making and subscribing a false tax return and for aiding and assisting in the preparation of false tax returns. Vernon J. Smith III also faces a maximum of 20 years in prison for each count of wire fraud. No court appearance has been scheduled.

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

Anthony Wright, age 42, of Bowie, Maryland, pleaded guilty on June 18, 2013, to his role in the scheme and is scheduled to be sentenced on September 30, 2013.

United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General; Defense Criminal Investigative Service; IRS Criminal Investigation; and the GSA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin and Trial Attorney Kenneth C. Vert of the U.S. Department of Justice Tax Division, who are prosecuting the case.

Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Awal Mohammed, age 38, of Greenbelt, Maryland, today to 136 months in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute heroin.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief James W. Johnson of the Baltimore County Police Department.

According to evidence presented at his week-long trial, on December 27, 2011, Maryland State Police stopped a car in which Mohammed was the front seat passenger and seized at least 971 grams of heroin from the glove compartment. Mohammed had previously used a courier from Ghana to bring the heroin into the United States and was en route to sell the heroin to a buyer in Baltimore. Mohammed had previously sold heroin brought in from Ghana to other dealers and customers. It was foreseeable to Mohammed that the conspiracy would distribute or possess with the intent to distribute at least 1,000 grams of heroin.

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

Baltimore, Maryland – Michael Bowman, age 61, of Baltimore, pleaded guilty yesterday to wire fraud in connection with a scheme to use personal identifying information of individual bank accounts holders to defraud banks.

The guilty plea 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 Inspector General William E. Johnson, Jr. of the Maryland Department of Human Resources.

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

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

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

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

Bowman faces a maximum sentence of 20 years in prison and a fine of $250,000. Bowman has agreed to pay restitution of $35,283.70. U.S. District Judge James K. Bredar scheduled his sentencing for September 26, 2013, at 9:30 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 thanked the U.S. Secret Service and Maryland Department of Human Resources - OIG for their work in the investigation. Mr. Rosenstein praised Special Assistant U.S. Attorney Paul K. Nitze of the Social Security Administration, who is prosecuting the case.

Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Nicole Jenise Stevenson, age 31, of Baltimore, today to three years in prison, followed by nine months of home detention as part of five years of supervised release, for bank fraud and aggravated identity theft. Judge Bennett also sentenced Stevenson to 18 months in prison for violating the supervised release from her previous fraud conviction, to be served concurrently with the three year sentence imposed today. Judge Bennett ordered Stevenson to pay restitution of $ 24,944.42.

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; William Henry, Chief of the U.S. Probation Office; Chief James W. Johnson of the Baltimore County Police Department; and U.S. Marshal Johnny Hughes.

According to her plea agreement, on August 17, 2007, Judge Bennett sentenced Stevenson to two years in prison, followed by three years of supervised release, for bank fraud and aggravated identity theft. On July 24, 2009, Stevenson resumed her period of supervised release after an initial revocation. Along with standard conditions of supervision, such as the prohibition against violating any federal, state or local laws, Stevenson was prohibited from opening any new accounts without the approval of her probation officer.

On or about June 29, 2009, Stevenson opened a personal checking account at Woodforest National Bank at the Wal-Mart in Cockeysville, Maryland, where she was employed. The account was opened without any money being deposited, based upon her employment at the Wal-Mart. From July through September 2009, Stevenson wrote checks on this account, although she had never deposited any money into it. Stevenson opened or re-opened additional accounts at two other banks, obtaining and writing checks on those accounts, even though she never made any legitimate deposits in those accounts. Stevenson did not have the approval of her probation officer to open any of these accounts.

On October 20, 2010, Stevenson had her initial appearance on the indictment returned by the grand jury in this case as well as on the on the violation of her supervised release. Stevenson was released on the same conditions, with her probation officer handling her supervision.

On March 22, 2011, Stevenson opened a new checking account in the name of “Nicole Taylor” using the social security number of “HH,” all without the knowledge or consent of her supervising probation officer, or “HH”. After making an initial deposit of $350.00, Stevenson immediately withdrew $300, ordered checks on the account and proceeded to write over $2,000 in checks on the account. This account was closed by the bank on July 5, 2011, with an overdraft amount of $2,260. During this same time period Stevenson opened a credit account with Shaws without the knowledge and approval of her probation officer. That account was charged off in July, 2011, with an outstanding balance of $2072.

On July 8, 2011, Stevenson’s probation officer made an unannounced home visit and left a letter instructing her to report in person at the probation office on July 12, 2011, for which she failed to appear. At a subsequent meeting on August 1, 2011, Stevenson denied opening any new accounts when she was questioned by her probation officer. On August 8, 2011, the probation officer attempted another home visit and left a letter instructing Stevenson to appear for a meeting at the probation office on August 22, 2011. Stevenson did not appear for that meeting and an arrest warrant was issued for Stevenson on September 12, 2011. A trial date was set for October 24, 2011. When Stevenson could not be located on the arrest warrant and did not respond to either her supervising officer or her attorney, a new trial date was scheduled - and subsequently rescheduled on several occasions - when Stevenson could not be located and did not respond to her supervising officer or her attorney.

On November 4, 2011, and again on July 19, 2012, Stevenson used the name “Tiffany Lawson”, and the date of birth and social security account number of “TR,” to apply for an apartment. She provided a counterfeit Maryland driver’s license with her picture, the name “Tiffany Lawson,” and the date of birth and social security number of “TR.” On February 27, 2013, Stevenson was located on the outstanding arrest warrant, residing in yet another apartment.

During her activities from July 2009 through February 2013, Stevenson obtained goods, services and extensions of credit of approximately$26,288.70, and caused losses to or used the identities of between 10 and 50 financial institutions, businesses and individuals.

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, U.S. Probation Office, Baltimore County Police Department and U.S. Marshals for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera Fine, who is prosecuting the case.

Baltimore, Maryland - David Russo, age 62, of Hagerstown, Maryland pleaded guilty today to 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.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.

“As prescription pharmaceutical abuse grows, so too does the resolve of DEA to investigate and uncover the illicit activities which fuel this problem,” stated Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration, Washington Field Division.

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.

As part of his plea agreement, Russo will be required to pay restitution in the full amount of the loss, and to forfeit the $39,000 in cash seized during the search of the pharmacy in 2010.

Russo faces a maximum sentence of 10 years in prison, although Russo and government have agreed to jointly recommend a sentence of 30 months in prison. U.S. District Judge George L. Russell III has scheduled sentencing for August 22, 2013 at 2:00 p.m.

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 are prosecuting the case.

Baltimore, Maryland - A federal grand jury has indicted Sheila Anderson-Cloude, a/k/a Sheila Anderson, age 33, of Nottingham, Maryland, and Tonia Patrice Lawson, age 42, of Baltimore, on charges related to a conspiracy to obtain fraudulent tax refunds, sometimes using the personal information of other individuals, without their knowledge or permission. The indictment was returned on June 11, 2013.

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

“The IRS continues to work closely with the tax preparation industry to protect the American public,” said Special Agent in Charge Thomas J. Kelly of IRS - Criminal Investigation, Washington, D.C. Field Office. “Return preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating cases just like these. Taxpayers should be very selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information.”

The 27-count indictment alleges that from February 8, 2010 through February 20, 2012, Anderson-Cloude and Lawson conspired to enrich themselves by filing and causing others to file false federal income tax returns in order to obtain tax refunds to which they were not entitled.

The indictment charges that Anderson-Cloude obtained the identifying information of individuals, including their names, dates of birth and social security numbers, in order to file fraudulent tax returns. According to the indictment, Anderson-Cloude then prepared and filed or caused to be filed at least 13 false federal tax returns, all of which fraudulently claimed refunds in amounts between $4,800 and $8,907. As a result of the filing of these false tax returns, the indictment alleges that Anderson-Cloude received seven tax refunds to which she was not entitled, in amounts ranging from $1,000 to $5,372, and Lawson received four fraudulent tax refunds, in amounts ranging from $2,000 to $6,875. According to the indictment, Lawson made payments to some of the taxpayers, using funds obtained from the fraudulently tax refunds. Finally, the indictment alleges that when questioned by a Special Agent with IRS Criminal Investigations, Anderson-Cloude made false statements by claiming that she never kept more than $500 for preparing a return and that she never made up numbers to put on the tax returns she prepared.

The defendants face a maximum sentence of 10 years in prison for conspiring to defraud the government by claiming false tax refunds and for theft of public money. Anderson-Cloude also faces a maximum of five years in prison for each of 12 counts of making a false claim for a tax refund and for making a false statement. Anderson-Cloude also faces two years in prison, consecutive to any other sentence, for aggravated identity theft. The defendants have an initial appearance scheduled for 3:45 p.m. today in U.S. District Court in Baltimore.

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

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

Greenbelt, Maryland – A federal grand jury has indicted six defendants in a mortgage fraud conspiracy in which lenders provided over $3.5 million for fraudulently obtained loans:

Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 44, of Severn, Maryland;

Flavia Makundi, age 41, of Severn, Maryland;

Carmen Johnson, age 46, of Gambrills, Maryland;

Mokorya Cosmas Wambura, age 40, of Mount Ranier, Maryland;

Cane Mwihava, age 42, of Bowie, Maryland; and

Annika Boas, age 36, of Mount Ranier, Maryland.

The indictment was returned on June 10, 2013, and the last defendant, Wambura, was arrested today.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Inspector General David A. Montoya, U.S. Department of Housing and Urban Development; Inspector General Steve A. Linick of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; Brian Crane, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) .

According to the 21 count indictment, Tibakweitira was a real estate agent for Century 21 Advantage Realty and its successor, Elite Real Estate Group. Tibakweitira recruited his wife Makundi, and others, including Wambura, Mwihava and Boas, to act as straw purchasers of homes. Johnson owned CJ Lending and Able Estate & Company which provided credit repair services.

The indictment alleges that from March 2007 to November 2008, the defendants sought mortgages for properties at values in excess of the properties’ actual market values. Tibakweitira allegedly procured inflated appraisals and created false addendums to the sales contracts requiring large amounts of loan proceeds to be disbursed for renovations or repairs. The defendants allegedly used stolen or false identities, false documents – including W-2 forms, earnings statements, and bank statements – and false credit information to induce lenders to provide residential mortgage loans to the straw buyers. Large amounts of the proceeds of the fraudulently obtained loans were allegedly disbursed from escrow accounts to Destiny Property Management, LLC and Destiny Property Management Company, which were shell companies owned by Tibakweitira, for repairs and renovations that were never made. These funds were in turn paid to the defendants. The defendants did not make or stopped making the mortgage payments and allowed the properties, including 10 properties located in Severna Park, Baltimore, Hyattsville and Silver Spring, to go into foreclosure.

The indictment alleges that as a result of the conspiracy, lenders provided over $3.5 million for fraudulently obtained loans, which resulted in losses of over $1 million to the lenders, the Federal Housing Administration which insured some of the loans, and the Federal National Mortgage Corporation (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), who purchased some of the loans in the secondary mortgage market.

All of the defendants face a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and wire fraud; and a mandatory minimum of two years for aggravated identity theft consecutive to any other sentence. The defendants have had their initial appearances in federal court in Greenbelt. Tibakweitira, Makundi and Boas are currently detained and Johnson and Mwihava were released. A hearing is scheduled later today for Wambura regarding his detention.

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

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

United States Attorney Rod J. Rosenstein praised HUD-OIG, FHFA-OIG, Treasury OIG,

U.S. Secret Service, IRS-Criminal Investigation and Baltimore HSI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin DiGregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who are prosecuting the case.

                                    Case Prosecuted by Maryland’s Child Exploitation Task Force;

            Defendant Faces Minimum Federal Sentence of 10 Years For Taking Teenager to Sex Parties

Greenbelt, Maryland – Troy Walker, a/k/a ‘Caveman,” age 48, of Upper Marlboro, Maryland, pleaded guilty today to transporting a minor with the intent to engage in prostitution.

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

“Maryland’s Child Exploitation Task Force investigates many cases involving juvenile prostitutes and pursues federal prosecution because of the lengthy sentences,” said U.S. Attorney Rod J. Rosenstein. “Anyone who transports a juvenile under the age of 18 to engage in prostitution faces a mandatory minimum sentence of ten years in federal prison.”

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.

As part of his plea agreement, 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).

Walker faces a mandatory minimum sentence of 10 years in prison, and a maximum of life in prison, followed by up to lifetime supervised release. U.S. District Judge Peter J. Messitte scheduled sentencing for August 14, 2013.

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 www.justice.gov/usao/md/Human‑Trafficking/index.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 are prosecuting the case.

                                    22 Additional Defendants Charged in State Court on Drug Trafficking Charges

Baltimore, Maryland - A federal grand jury has indicted eight individuals on charges related to the investigation of a drug distribution organization in Annapolis and other areas of Anne Arundel County since at least January 2012. The indictments were returned on June 11, 2013, and unsealed today upon the arrest of the defendants.

ATF led at least 100 law enforcement officers who executed federal search warrants at 10 locations and seven vehicles today, including residences and vehicles belonging to some of the defendants. As part of this investigation, law enforcement also executed arrest warrants today against 22 additional defendants charged in state court in Anne Arundel County with various drug trafficking offenses.

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; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Acting Chief Lt. Colonel Pamela R. Davis; Commissioner Anthony W. Batts of the Baltimore Police Department; and Anne Arundel County State’s Attorney Anne C. Leitess.

Special Agent in Charge Steven L. Gerido of the ATF - Baltimore Field Division. “I am confident that the execution of multiple arrest and search warrants by ATF and its law enforcement partners has made a significant impact on crime in Anne Arundel County, Maryland, and specifically the city of Annapolis. ATF continues to work with its federal, state, and local law enforcement partners in order to bring violent criminals to justice.”

Annapolis Police Chief Michael Pristoop said, “We, as a police department and a community, will not tolerate the illegal sale of drugs or guns within our City. This investigation, the indictments, and the service of the arrest warrants is another outstanding example of partners working together to reduce crime in Annapolis. Removing these offenders from our streets was a top priority and certainly a step on the right direction.”

“I want to thank all of the agencies involved for their partnerships and collaborations to bring this case to closure,” said Anne Arundel County Acting Chief of Police Lieutenant Colonel Pamela R. Davis.

“A disproportionate amount of violent crimes with a connection to illegal drugs is often committed by a small percentage of individuals. The community can immediately take solace in knowing that these individuals have been removed from their neighborhoods.”

The following defendants are charged with conspiracy to distribute and to possess with intent to distribute heroin and crack cocaine:

Ernest Lee Harmon, a/k/a “E” and “Memphis,” age 36, of Baltimore; Dontaye Lee Harmon, a/k/a “Taye,” age 39, of Baltimore; Damian Leron Brown, a/k/a “D,” “DB,” and “DBrown,” age 37, of Annapolis; and
Jessica Knode, age 27, of Crofton, Maryland.

Two defendants charged in this indictment are still being sought and their names have not been unsealed.

Ernest Lee Harmon and Dontaye Lee Harmon are also charged with distributing and possessing with intent to distribute crack cocaine. Ernest Lee Harmon and Damian Leron Brown are charged with distributing and possessing with intent to distribute heroin.

The defendants face a minimum of 10 years in prison and a maximum of life in prison for the drug conspiracy. Dontaye Lee Harmon and Damian Brown also face a maximum of 20 years in prison for distribution and possession with intent to distribute crack cocaine or heroin. Ernest Lee Harmon, faces a minimum of five years and a maximum of 40 years in prison for distribution and possession with intent to distribute crack cocaine and heroin.

In related indictments, Corrie Flannigan, a/k/a “Flame,” age 19, of Annapolis is charged with possession of a firearm by a felon; and Jimolo Coates, a/k/a “Marlow,” age 20, also of Annapolis is charged with possession of a firearm and ammunition by a felon.

Flannigan and Coates each face a maximum of 10 years in prison for possession of a firearm and/or ammunition by a previously convicted felon.

All of the defendants are expected to have an initial appearance in U.S. District Court in Baltimore today.

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

United States Attorney Rod J. Rosenstein thanked ATF, the Annapolis Police Department, Anne Arundel County Police Department, Baltimore Police Department and the Anne Arundel County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorneys Kenneth S. Clark, Scott Lemmon, and Joshua Kaul, who are prosecuting the case.

                                    22 Additional Defendants Charged in State Court on Drug Trafficking Charges

Baltimore, Maryland - A federal grand jury has indicted eight individuals on charges related to the investigation of a drug distribution organization in Annapolis and other areas of Anne Arundel County since at least January 2012. The indictments were returned on June 11, 2013, and unsealed today upon the arrest of the defendants.

ATF led at least 100 law enforcement officers who executed federal search warrants at 10 locations and seven vehicles today, including residences and vehicles belonging to some of the defendants. As part of this investigation, law enforcement also executed arrest warrants today against 22 additional defendants charged in state court in Anne Arundel County with various drug trafficking offenses.

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; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Acting Chief Lt. Colonel Pamela R. Davis; Commissioner Anthony W. Batts of the Baltimore Police Department; and Anne Arundel County State’s Attorney Anne C. Leitess.

Special Agent in Charge Steven L. Gerido of the ATF - Baltimore Field Division. “I am confident that the execution of multiple arrest and search warrants by ATF and its law enforcement partners has made a significant impact on crime in Anne Arundel County, Maryland, and specifically the city of Annapolis. ATF continues to work with its federal, state, and local law enforcement partners in order to bring violent criminals to justice.”

Annapolis Police Chief Michael Pristoop said, “We, as a police department and a community, will not tolerate the illegal sale of drugs or guns within our City. This investigation, the indictments, and the service of the arrest warrants is another outstanding example of partners working together to reduce crime in Annapolis. Removing these offenders from our streets was a top priority and certainly a step on the right direction.”

“I want to thank all of the agencies involved for their partnerships and collaborations to bring this case to closure,” said Anne Arundel County Acting Chief of Police Lieutenant Colonel Pamela R. Davis.

“A disproportionate amount of violent crimes with a connection to illegal drugs is often committed by a small percentage of individuals. The community can immediately take solace in knowing that these individuals have been removed from their neighborhoods.”

The following defendants are charged with conspiracy to distribute and to possess with intent to distribute heroin and crack cocaine:

Ernest Lee Harmon, a/k/a “E” and “Memphis,” age 36, of Baltimore; Dontaye Lee Harmon, a/k/a “Taye,” age 39, of Baltimore; Damian Leron Brown, a/k/a “D,” “DB,” and “DBrown,” age 37, of Annapolis; and
Jessica Knode, age 27, of Crofton, Maryland.

Two defendants charged in this indictment are still being sought and their names have not been unsealed.

Ernest Lee Harmon and Dontaye Lee Harmon are also charged with distributing and possessing with intent to distribute crack cocaine. Ernest Lee Harmon and Damian Leron Brown are charged with distributing and possessing with intent to distribute heroin.

The defendants face a minimum of 10 years in prison and a maximum of life in prison for the drug conspiracy. Dontaye Lee Harmon and Damian Brown also face a maximum of 20 years in prison for distribution and possession with intent to distribute crack cocaine or heroin. Ernest Lee Harmon, faces a minimum of five years and a maximum of 40 years in prison for distribution and possession with intent to distribute crack cocaine and heroin.

In related indictments, Corrie Flannigan, a/k/a “Flame,” age 19, of Annapolis is charged with possession of a firearm by a felon; and Jimolo Coates, a/k/a “Marlow,” age 20, also of Annapolis is charged with possession of a firearm and ammunition by a felon.

Flannigan and Coates each face a maximum of 10 years in prison for possession of a firearm and/or ammunition by a previously convicted felon.

All of the defendants are expected to have an initial appearance in U.S. District Court in Baltimore today.

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

United States Attorney Rod J. Rosenstein thanked ATF, the Annapolis Police Department, Anne Arundel County Police Department, Baltimore Police Department and the Anne Arundel County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorneys Kenneth S. Clark, Scott Lemmon, and Joshua Kaul, who are prosecuting the case.

Baltimore, Maryland - A federal grand jury today has indicted the following 10 defendants for conspiring to distribute cocaine and cocaine base in Baltimore:

Shawn Malone, a/k/a “Studder,” and “Snaps,” age 32, of Baltimore;

Howard McCray, a/k/a “Pooh,” age 33, of Baltimore;

Antoine Bolden, a/k/a “Demo,” age 36, of Baltimore and Severna Park, Maryland;

Stanley Malone, a/k/a “Man-Man,” and “Rambo,” age 32, of Brooklyn, Maryland;

Travis Gaines, a/k/a “Jim,”age 33, of Baltimore;

Melvina Banks, a/k/a “Bebe,” age 52, of Baltimore;

Luis Reyes, a/k/a “Louis Reyes,” and “Rico,” age 39, of Dundalk, Maryland;

Donte Chase, a/k/a “Turbo,” age 34, of Baltimore;

Karl McDonald, a/k/a “Lil Boo,” age 29, of Columbia, Maryland; and

Latoya Mack, age 25.

Mack is also charged with distributing cocaine.

The indictment 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; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.

"The indictment of 10 defendants today emphasizes the proactive work that the DEA, the Baltimore Police Operational Intelligence Section (OIS), the Baltimore City States Attorney's Office and the U.S. Attorney’s Office undertake to combat drug distribution in Baltimore," stated Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration, Washington Field Division. "By hitting a drug organization where it hurts most by seizing drug proceeds, in this case seeking $3.6 million in forfeiture, we are crippling its ability to ever return," added Colder.

The two count indictment alleges that from at least 2010 until June 6, 2013 when the defendants were arrested, the defendants conspired to distribute cocaine and cocaine base.

Court documents allege that Shawn Malone uses females to bring cocaine, purchased from sources in Texas and Arizona, on buses to Baltimore for distribution. According to court documents, Bolden, a wholesale supplier of cocaine, with assistance from Stanley Malone and Travis Gaines, sells the drugs to Reyes, Chase and others. McDonald operates a “street shop” in the area of West North Avenue and Lennox Street in Baltimore for the organization. McCray, who works at the University of Maryland hospital, was overheard during the investigation arranging for the sale of drugs and obtaining a gun.

According to court documents, Shawn Malone and other members of the conspiracy allegedly operate a limited liability corporation known as SJM (the initials of Shawn Joseph Malone) LLC in order to buy rental properties under the guise of appearing to have legitimate income. The drug organization is alleged to have purchased properties, including 1911 Braddish Avenue and 2519 Fairmount Avenue, to either carry out drug distribution activities or launder drug proceeds.

The indictment seeks forfeiture of $3.6 million, based on 90 kilograms of cocaine at a minimum value of $40,000 per kilogram over the course of the conspiracy, as well as five Baltimore properties.

The defendants face a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for the drug conspiracy. Mack also faces 40 years in prison for distributing cocaine.

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, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James Wallner, who is prosecuting the case.

Greenbelt, Maryland – Nine federal defendants and a one state defendant were arrested today, on charges related to a conspiracy to distribute cocaine, crack cocaine and phencyclidine (PCP), in the Riverdale area of Prince George’s County, Maryland. More than 160 law enforcement officers, led by the Bureau of Alcohol, Tobacco, Firearms and Explosives, participated in the arrest of the 10 defendants and the execution of six search warrants. The two related federal indictments were returned on June 5, 2013, and unsealed today upon the arrest of the defendants.

The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

Special Agent in Charge Steven L. Gerido of the ATF - Baltimore Field Division said, “I am confident that ATF’s successful execution of ten arrest warrants and six search warrants made a significant impact on crime in Prince George’s County, Maryland and specifically the Riverdale community. ATF continues to work with its federal, state, and local law enforcement partners in order to bring violent criminals to justice.”

The six defendants arrested in the first indictment are charged with a conspiracy to distribute cocaine, crack cocaine and PCP in Riverdale from at least 2005 to the present. They are:

Don Juan Campbell, a/k/a “Flav,” “Flava Flav,” and “Flay,”age 32, of Laurel, Maryland;

Andre T. Lyons, a/k/a “Dre,” age 37, of Riverdale;

Michael C. McCree, a/k/a “Cuz,” and “Layhoo,” age 31, of Riverdale;

Lorenzo B. Jackson, a/k/a “B.J.,” age 32, of Riverdale;

Michael I. Waller, a/k/a “Butters,” and “Mike Mike,” age 22, of Beltsville; and

Marcus R. Moss, age 40, of Riverdale.

The indictment alleges that Campbell purchased large quantities of cocaine and PCP from sources in Maryland and elsewhere, which he distributed to other defendants and co-conspirators for further redistribution and sale. The indictment alleges that the conspirators controlled locations in and around Riverdale for the distribution of drugs and collected money owed to members of the conspiracy from drug transactions. The defendants allegedly obtained and utilized cellular telephones in the names of other individuals or businesses, to communicate with other members of the conspiracy without detection by law enforcement officers.

The defendants face a maximum sentence of life in prison.

In a related indictment three defendants were charged with conspiracy to distribute and possess with intent to distribute crack cocaine and PCP from May 2012 to June 2013. They are:

Glen Price, a/k/a “Mynds,” age 34, of Riverdale;

Iziah E. Ennis, a/k/a “Ike,” age 33, of Fairfax, Virginia; and

Kevin L. Dixon, a/k/a “Richie White Bread,” age 34, of Riverdale.

The defendants face a maximum sentence of 40 years in prison.

All the defendants had an initial appearance this afternoon in U.S. District Court in Greenbelt. All of the defendants were detained, except Dixon, who was released under the supervision of U.S. Pretrial Services. The remaining defendants will have detention hearings later this week.

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

United States Attorney Rod J. Rosenstein praised ATF, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Steven E. Swaney, who is prosecuting the federal case.

Greenbelt, Maryland - A federal jury has convicted Nader Modanlo, a/k/a Nader Modanlou, a/k/a Nader Modanlu, age 52, of Potomac, Maryland, a naturalized U.S. citizen born in Iran, of charges arising from a conspiracy to illegally provide satellite related services to Iran in violation of the International Emergency Economic Powers Act, money laundering and obstruction of bankruptcy proceedings. As a result of the conspiracy, an Iranian earth observation satellite equipped with a camera was launched into space from Russia on October 27, 2005. The launch was the first-ever Iranian satellite put into orbit.

The jury verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service, Mid-Atlantic Field Office.

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

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

“The Defense Criminal Investigative Service (DCIS), the criminal investigative arm of the Office of the Inspector General, Department of Defense, is committed to pursuing cases involving the illegal transfer of critical U.S. Defense Department-related technologies throughout the world,” said Robert E. Craig, Jr., Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “Along with our law enforcement partners and as demonstrated in this case, DCIS is diligently pursuing individuals and companies that willingly break the law and unnecessarily place the safety of America's warfighters and all Americans at risk.”

“IRS Criminal Investigation is committed to following the money trail across the globe and will not be deterred by the use of front companies and sophisticated financial transactions that hide the real ownership of the proceeds of criminal activity,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today’s verdict is a reminder that IRS Criminal Investigation along with our domestic and international law enforcement partners will continue our vigilant pursuit of criminal conspiracies.”

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

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

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

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

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

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

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

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

Modanlo faces a maximum sentence of five years in prison for the conspiracy; 10 years in prison on each of two counts of violating the Iran Trade Embargo, 20 years on money laundering related to the transfer of the $10 million from Switzerland to the defendant’s NYSI bank account, 10 years for each of five subsequent money-laundering transactions, which disbursed most of the $10 million; and 20 years in prison for obstruction of a bankruptcy proceeding. The jury was unable to reach a verdict on one count of violating the Iran Trade Embargo. U.S. District Judge Peter J. Messitte scheduled sentencing for September 11, 2013. The government also seeks the forfeiture of $10 million, which is the proceeds of the offense.

The other defendants charged in the indictment, Hamid Malmirian, age 53; Reza Heidari, age 52; Mohammad Modares, age 44; Abdol Reza Mehrdad, age 43; and Sirous Naseri, age 55, all Iranian nationals, remain at large.

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

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Jasmine Veras-Rosario, age 35, of Bronx, New York, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.

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

According to testimony at Veras-Rosario’s 14 day jury trial, she was part of a heroin trafficking organization led by Danilo Garcia and Walter Powell, that supplied heroin to distributors in Maryland and elsewhere. The evidence showed that Jasmine Veras-Rosario was a courier who worked with her husband, Jan Carlos Veras-Rosario, to deliver heroin on behalf of Garcia in New York to Powell and another conspirator, Roy Lee Clay, in Baltimore. Evidence at trial showed that Jasmine Veras-Rosario traveled from New York to Baltimore by bus, transporting heroin to Baltimore and money representing heroin proceeds from Baltimore back to New York.

At trial, the jury saw video tapes of Jasmine Veras-Rosario going to a residence in West Baltimore where the heroin was delivered. In addition, the jury heard intercepted conversations between Veras-Rosario and Powell in Baltimore in which she discussed, in coded language, both the delivery of heroin and the money owed by Powell.

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

Roy Lee Clay, age 47, of Baltimore, was also convicted at trial and is scheduled to be sentenced on June 14, 2013 at 9:15 a.m. Jan Carlos Veras-Roasario, age 26, of Bronx, New York, pleaded guilty to his role in the conspiracy and is scheduled to be sentence on August 2, 2013, at 12:00 p.m.

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

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

Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Dwayne Frazier, age 50, of Baltimore, to 12 years in prison, followed by three years of supervised release, for carjacking. The sentence was imposed on June 3, 2013, following Frazier’s guilty plea on the first day of trial.

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

According to Frazier’s plea agreement, on August 14, 2010, Frazier, John Franklin and Troy Williams carjacked two vehicles. Franklin waved down a man driving a Buick LeSabre, telling the driver that he needed a hack (an unlicensed cab ride) to East Baltimore. The driver agreed and Franklin, Frazier, and Williams got into the car. A short time later, Frazier and his co-conspirators robbed the driver at gunpoint, taking his license, cell phone and cash, then ordered the victim out of the vehicle. Frazier and the other men then drove away in the LeSabre.

Approximately 15 minutes later, driving the LeSabre, Frazier and his co-conspirators approached three women who had just parked their Dodge Charger in the 4000 block of East Lombard Street. As the women got out of the car, Franklin and Williams walked up to the women and robbed them at gunpoint, then demanded the keys to the car. Franklin and Williams then drove away in the Charger, followed by Frazier driving the LeSabre.

Baltimore Police officers responding to the report of the armed carjacking of the Charger saw the Charger being followed by the LeSabre. Officers were able to stop the LeSabre and arrest Frazier, but the Charger sped away, eventually hitting a parked car. Police saw Franklin and Williams bail out of the Charger and run away. With the help of the Baltimore Police helicopter unit, officers located Williams under a parked car. Franklin was located nearby. Police recovered from Franklin the first victim’s driver’s license as well as a cellphone belonging to one of the women. A fully-loaded .357 caliber revolver was recovered in the same block where Franklin was arrested.

John Franklin, age 41, of Baltimore, Maryland, was previously convicted after trial and sentenced to 414 months in prison. Troy Williams, age 44, of Baltimore, pleaded guilty to his role in the scheme and is scheduled to be sentencing on June 18, 2013.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department, Baltimore City State’s Attorney’s Office and the Maryland Attorney General’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr. and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Darryl A. Stuckey, age 48, formerly of Fort Washington, Maryland today to two years in prison, followed by three years of supervised release, for corruptly obstructing the Internal Revenue Code and fraudulently concealing assets in a bankruptcy proceeding. Judge Titus also ordered Stuckey to pay restitution of $300,632.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division; Judy A. Robbins, United States Trustee for Region 4, which includes the District of Maryland; 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.

Obstructing the IRS

According to his plea agreement, from 1996 to 2009, Stuckey served in various roles in companies that he caused to be created or purchased. Between 2004 and 2009, Stuckey engaged in a scheme to obstruct the IRS from determining his income. For example, instead of using his personal bank accounts, Stuckey used corporate bank accounts and credit cards from his businesses to pay for the majority of his personal expenses, such as gambling, child support, medical expenses, shopping, travel, gifts and entertainment.

From 2004 to 2009, although Stuckey received substantial income from the businesses he controlled, he did not file individual or corporate federal tax returns, and did not pay any federal income taxes, state income taxes, or self-employment taxes. In fact, Stuckey admitted that he had not filed individual or corporate federal tax returns since 1993.

In 2009, Stuckey caused a business he purchased, CTI/D.C., to end its use of an outside company to manage its payroll. Although Stuckey continued to have CTI/D.C. deduct Federal Insurance Contribution Act (FICA) taxes, federal income taxes and other items from the employees’ paychecks, he failed to pay over to the IRS the FICA and federal income taxes that were withheld.  As a result of Stuckey’s actions, the tax loss was $300,632.

Concealing Bankruptcy Assets

In 2007 Stuckey caused a business he organized, Yekcuts, LLC, to file for bankruptcy. Stuckey caused Yekcuts to file a schedule of assets that failed to disclose a company bank account, and to falsely claim that Yekcuts received no gross income in 2005, 2006 and 2007.

In May 2007, Stuckey fraudulently transferred and concealed real property located at 12301 Longwater Drive, Mitchellville, Maryland, which belonged to the Yekcuts bankruptcy estate. Specifically, Stuckey caused Yekcuts to enter into a promissory note with another individual, pursuant to which Yekcuts borrowed $130,000 in exchange for a security interest in the real property. Yekcuts never sought the required permission from the bankruptcy court to enter into the loan. Stuckey directed that $121,893 of the loan proceeds be distributed as follows: $10,000 to an individual, $9,000 to a Yekcuts bank account; and $102,893 to an account for which Stuckey was the sole signatory. Within 10 days of the deposit of the funds into the accounts, Stuckey withdrew $108,380.93 from the latter bank account.

In June 2007, after learning about the loan involving the Longwater Drive property, counsel for one of the Yekcuts creditors obtained a court order to depose Stuckey. Stuckey immediately caused Yekcuts to move to dismiss its bankruptcy, which the court denied. During the subsequent deposition, the government contends that Stuckey lied about the loan, his ownership interest in Yekcuts, compensation received from and expenses paid by Yekcuts, the existence of a second bank account maintained by Yekcuts and other matters.

As a result of Stuckey’s concealment of property during the Yekcuts bankruptcy, the loss to the bankruptcy estate exceeded $120,000.

Additionally, in October 2007 Stuckey filed for personal bankruptcy. Stuckey filed false schedules with the bankruptcy court, failing to disclose his transfer in May 2007 of real property located at 11950 Autumnwood Lane, Fort Washington, Maryland into a trust fund of which he was the sole beneficiary. Stuckey also did not disclose that he served as an officer, director, partner, managing executive or proprietor of several businesses. Evidence was also presented at today’s sentencing hearing that Stuckey spent over $45,000 on jewelry and furs within months of declaring personal bankruptcy.

United States Attorney Rod J. Rosenstein praised the IRS - Criminal Investigation, FBI and the U.S. Trustee Program’s Greenbelt office for their work in the investigation. The U.S. Trustee Program is the Department of Justice component that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Mr. Rosenstein thanked Assistant U.S. Attorney Stuart A. Berman and Trial Attorney Jeffrey Bender, with the Department of Justice’s Tax Division, who prosecuted the case.

Cain faces a maximum sentence of 30 years in prison for the conspiracy and for possession with intent to distribute oxycodone. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 3, 2013 at 12:00 p.m.

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

Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Naveed Sheikh, age 32, of Baltimore, today to 87 months in prison, followed by three years of supervised release, for conspiring to and infringing copyrights by illegally reproducing and distributing over 1,000 copyrighted commercial software programs. Judge Bennett entered an order requiring Sheikh to forfeit $4 million, the total value of the infringed software programs.

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

“Copyright infringement is not a victimless crime,” said HSI Baltimore Special Agent in Charge William Winter. “Intellectual property theft costs U.S. businesses billions of dollars each year and accounts for the loss of American jobs and innovation. HSI will continue working with our law enforcement and private industry partners to pursue criminal organizations that are engaged in this type of illegal activity.”

According to Sheikh’s guilty plea, from February 2003 to June 2008, Sheikh conspired to infringe copyrights by reproducing and distributing over 1000 copyrighted commercial software programs worth $4 million. Sheikh recruited and compensated co-conspirators, directed the actions of other co-conspirators, obtained infringing copies of software that were used for distribution, and planned and organized the activities of the conspiracy. Sheikh created multiple websites through which the infringing software was sold. Sheikh advised purchasers that the programs offered for sale were not legal because they were copies of original software programs or “cracked” versions and could not be registered with the legitimate companies that developed the software programs and held copyrights covering the software. Sheikh rented computer server space in Scranton, Pennsylvania, and hosted the websites with the infringing software, on computers in Scranton, Pennsylvania, and at his home in Bel Air, Maryland.

Sheikh advised purchasers that software programs could be mailed to purchasers on compact discs and downloaded from the internet. Sheikh requested that purchasers send money orders for infringing software to a P.O. box he maintained in Towson, Maryland. Sheikh also permitted customers to pay for infringing software through credit card charges and electronic fund transfers. In order to process the electronic payments, Sheikh and his co-conspirators used the credit card processing accounts for a defunct business previously owned by Sheikh’s family, and caused monies from the software sales to be deposited into accounts previously associated with the business. Some of the individuals who worked for Sheikh were located overseas and could assist with overnight projects. Sheikh and other conspirators posed as other individuals when corresponding with customers by email. Sheikh did not report the income from the copyright infringement scheme on his tax returns. During the time of the conspiracy, Sheikh used services such as Western Union to transmit money outside the United States, particularly to Pakistan.

The copyrighted works copied and sold illegally included Microsoft Office, Microsoft Money 2006 Small Business, Adobe Acrobat, Adobe Photoshop and Adobe After Effects Pro 7.0, Veritas NetBackUp Pro 5.1, Solid Works Office 2000 Premium, Quicken Premier Home and Business 2006 and Apple Mac OSX Panther 10.3 and Microsoft Windows XP Professional with SP2.

In meetings with federal prosecutors and agents during the course of the investigation, Sheikh made numerous false statements in order to obstruct the investigation. For example, Sheikh claimed that he had rented computer space to another individual, whom Sheikh believed was selling computer training programs. Sheikh falsely said that he did not learn that this individual was selling copyright infringing software until 2008. Sheikh further claimed that he had recorded phone conversations with this individual in an effort to assist the government investigation. Through his attorney, Sheikh provided the fraudulent recordings that he created. During the Fall of 2010, the government engaged in plea negotiations with Sheikh. In November 2010, shortly before the deadline for Sheikh to reach an agreement with the government or be charged, Sheikh left the United States for Pakistan. When he re-entered the U.S. in January 2012, Sheikh was carrying electronic media containing evidence that he and his co-conspirators were responsible for the sales of infringing software.

United States Attorney Rod J. Rosenstein praised HSI Baltimore, the FBI and U.S. Postal Inspection Service for their work in the investigation and thanked the Business Software Alliance (BSA) and Microsoft Corporation for their assistance. Mr. Rosenstein commended Assistant United States Attorneys Harry M. Gruber and Martin J. Clarke, who prosecuted the case.

Baltimore, Maryland – A federal jury today convicted Lenny Cain, age 36, of Baltimore, Maryland, for conspiracy to distribute and possess with intent to distribute oxycodone, and for possession with intent to distribute oxycodone.

The conviction 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 Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Anne Arundel County Police Acting Chief Lt. Colonel Pamela R. Davis; and Howard County Police Chief William McMahon

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

Seven co-conspirators, including Joseph Church, age 41, of Baltimore, have previously pleaded guilty to their roles in the conspiracy. Bruce Breland, age 56, and Charles Fell, age 27, both of Baltimore, have been sentenced to 27 months and to two years in prison, respectively. The remaining defendants are awaiting sentencing.

Cain faces a maximum sentence of 30 years in prison for the conspiracy and for possession with intent to distribute oxycodone. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 3, 2013 at 12:00 p.m.

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

Baltimore, Maryland – Michael Dean Ragan, Jr., age 30, of Port Deposit, Maryland, pleaded guilty today to receipt of child pornography.

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

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

In addition, a video was located on a seized DVD that depicted Ragan engaged in sexually explicit conduct with a minor male. According to the statement of facts, the video was taken without the knowledge of the minor male. Ragan admitted engaging in sexually explicit conduct with the minor male and also acknowledged being an administrator on a website dedicated to viewing, sharing and distributing child pornography. Ragan received a video on May 26, 2010, depicting two minor males engaging in sexually explicit conduct.

As part of his plea agreement, Ragan will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentencing range for receipt of child pornography is a minimum mandatory sentence of five years in prison and a maximum of 20 in prison followed by up to lifetime of supervised release. Ragan and the government have agreed that if the Court accepts the plea agreement Ragan will be sentenced to 12 years in prison followed by at least 20 years, but up to a lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 4, 2013 at 10:30 a.m.

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

“This case was discovered and investigated by members of a joint Baltimore Police and FBI anti-corruption task force and re-emphasizes my commitment to rooting out corruption within the Baltimore Police Department," said Police Commissioner Anthony W. Batts. My message to the people of our city is we are not finished - we will continue to relentlessly target corruption and misconduct among the ranks. A special note of thanks to all the police officers, agents and prosecutors for their assistance with this investigation and their continued support.”

According to the criminal complaint, on February 26, 2013, a confidential source provided information regarding alleged criminal activity being conducted by Baltimore Police officer Ashley Roane and her roommate Erica Hughes. The confidential source advised law enforcement that in the Fall of 2012, Roane had spoken to the source regarding drug trafficking and had told the source that if the source, whom Roane believed was a large scale heroin trafficker in Baltimore, wanted to sell drugs in the area where she patrolled, Roane would provide the source with a location that is not heavily concentrated with police. Additionally, Roane told that source that she could provide the source with information regarding police activity, specifically when and where drug search warrants would be executed.

The criminal complaint alleges that Roane provided assistance and protection to the confidential source in the source’s alleged drug trafficking. For example, on March 28, 2013, the criminal complaint alleges that Roane conducted a criminal check of one of the source’s alleged associates, to see if that person was an informant or cooperator with the Baltimore Police Department. According to the complaint, Roane agreed that she would tell the confidential source if the person were an informant so that the source would not engage in a drug transaction with that person. Further, the criminal complaint alleges on the on April 30, 2013, while in uniform, armed with her service firearm, and in a marked Baltimore Police Department vehicle, Roane provided protection while the confidential source conducted a narcotics transaction involving a kilogram of heroin. The confidential source allegedly paid Roane $500 for her protection and Roane agreed to provide such protection again in a future narcotics transaction involving multiple kilograms of heroin.

According to the criminal complaint, Hughes and Roane believed that the confidential source also worked as a tax preparer and they provided the personal information of more than 30 individuals, including names, dates of birth and social security numbers, to the confidential source to prepare and submit false tax returns to the IRS in order to obtain fraudulent tax refunds. The criminal complaint alleges that Roane obtained the personal information from law enforcement databases through her position as a Baltimore Police officer.

Roane faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for possession with intent to distribute heroin, and a mandatory minimum sentence of five years in prison and a maximum of life in prison for possession of a gun in furtherance of a drug trafficking crime. Roane and Hughes face a mandatory sentence of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. The defendants will be detained pending an initial appearance which will be scheduled for Monday, June 3, 2013, in U.S. District Court in Baltimore.

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

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

          Pistol Whipped a Store Clerk During the Robbery

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Reginald Lloyd, age 40, of Washington, D.C., today to 16 years in prison followed by five years of supervised release for armed robbery, using and brandishing a gun during a crime of violence, and being a felon in possession of a firearm.

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

According to the evidence presented at Lloyd’s three day trial, on September 7, 2011, Lloyd and an unidentified accomplice entered a store in Forestville, Maryland, wearing black masks and carrying guns. Lloyd ordered an employee at gunpoint to open the cash register, while the accomplice ordered two other employees at gunpoint to the back of the store. Lloyd stole approximately $964 from the cash register, then ordered the employee to open the safe below the cash register. When the employee replied that he could not open the safe, Lloyd pistol-whipped the employee, grabbed the keys and attempted to open the safe himself. Unsuccessful in opening the safe, Lloyd struck the employee in the face with the gun, then sprayed the employee in the face with mace. Lloyd and his accomplice then left the store.

Witnesses testified that during the robbery, one of the employees called 911, described the getaway vehicle and requested an ambulance for the employee who had been injured. About ten minutes later, Prince George’s County Police officers saw a vehicle matching the description of the getaway car and conducted a traffic stop. As the officers got out of their car, the vehicle took off speeding down Marlboro Pike toward Washington, D.C. The pavement was wet and the vehicle hydroplaned, crossing the road into a gas station. A woman was standing next to her car pumping gas, when the vehicle crashed into the back of her car. When police arrived, Lloyd, the only occupant of the vehicle, was arrested. Police recovered a loaded .45 caliber handgun, pepper spray, approximately $867 in cash and receipts from the store, a black mask and a black and white bandana. The black mask contained a DNA profile consistent with Lloyd’s.

United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Steven E. Swaney and Christen A. Sproule, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Nery Gustavo Ramos-Duarte, age 52, of Chiquimula, Guatemala, today to 160 months in prison followed by five years of supervised release for conspiring to distribute and import five kilograms or more of cocaine, commit money laundering, and smuggle bulk cash.

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

According to evidence presented at the five day trial, Duarte was a money courier for a large international organization that imported cocaine into the United States from Guatemala and smuggled the proceeds back to Guatemala. Duarte was a trusted member of the organization who could speak directly with its leader in Guatemala, and helped the leader collect drug debts.

On September 25, 2003, Duarte was stopped while driving in Arkansas. Law enforcement seized $1,168,000 in cash wrapped in bundles from a secret compartment in his vehicle.

In 2005, Duarte picked up drug money from a co-conspirator in Connecticut to take to the ringleader in Guatemala. Later in 2005, Duarte took a Mercedes-Benz from another member of the conspiracy as payment for a drug debt to the ringleader.

Trial testimony showed that Duarte was responsible for the distribution of over 150 kilograms of cocaine in the course of the conspiracy.

United States Attorney Rod J. Rosenstein commended the IRS-CI, DEA, and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Peter M. Nothstein, Andrea L. Smith, and Bonnie S. Greenberg, who prosecuted case.

          Officer Ashley Roane Arrested for Federal Drug, Gun and                        Identity Fraud Crimes

                                                 U.S. Attorney Calls Allegations “Appalling Violation of Public Trust”

Baltimore, Maryland - Baltimore Police officer Ashley Roane, age 25, of Pikesville, Maryland, has been charged with helping a heroin dealer by providing armed, uniformed security for drug transactions; offering advance notice of search warrants; and using police databases to check for informants. In addition, Roane and her roommate, Erica Hughes, also age 25, of Pikesville, have been charged with aggravated identity theft in connection with a scheme in which Roane used a police database to obtain the names of victims to be used to obtain fraudulent tax refunds. The criminal complaint was filed on May 28, 2013, and unsealed today upon the arrest of the defendants.

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

“The allegations represent an appalling violation of the public trust by an officer who took an oath to serve the public but used her police powers to serve herself,” said U.S. Attorney Rod J. Rosenstein. “The complaint alleges that Officer Ashley Roane agreed to help a drug dealer find a safe place to sell heroin in Baltimore and provide early warnings before police executed search warrants, that she provided armed security for drug deals while in uniform in her patrol car, and that she checked a police database to identify informants. In a separate identity fraud scheme, she allegedly used a police database to obtain names, birth dates and social security numbers that could be used to obtain fraudulent tax refunds from the IRS.”

“This case was discovered and investigated by members of a joint Baltimore Police and FBI anti-corruption task force and re-emphasizes my commitment to rooting out corruption within the Baltimore Police Department," said Police Commissioner Anthony W. Batts. My message to the people of our city is we are not finished - we will continue to relentlessly target corruption and misconduct among the ranks. A special note of thanks to all the police officers, agents and prosecutors for their assistance with this investigation and their continued support.”

According to the criminal complaint, on February 26, 2013, a confidential source provided information regarding alleged criminal activity being conducted by Baltimore Police officer Ashley Roane and her roommate Erica Hughes. The confidential source advised law enforcement that in the Fall of 2012, Roane had spoken to the source regarding drug trafficking and had told the source that if the source, whom Roane believed was a large scale heroin trafficker in Baltimore, wanted to sell drugs in the area where she patrolled, Roane would provide the source with a location that is not heavily concentrated with police. Additionally, Roane told that source that she could provide the source with information regarding police activity, specifically when and where drug search warrants would be executed.

The criminal complaint alleges that Roane provided assistance and protection to the confidential source in the source’s alleged drug trafficking. For example, on March 28, 2013, the criminal complaint alleges that Roane conducted a criminal check of one of the source’s alleged associates, to see if that person was an informant or cooperator with the Baltimore Police Department. According to the complaint, Roane agreed that she would tell the confidential source if the person were an informant so that the source would not engage in a drug transaction with that person. Further, the criminal complaint alleges on the on April 30, 2013, while in uniform, armed with her service firearm, and in a marked Baltimore Police Department vehicle, Roane provided protection while the confidential source conducted a narcotics transaction involving a kilogram of heroin. The confidential source allegedly paid Roane $500 for her protection and Roane agreed to provide such protection again in a future narcotics transaction involving multiple kilograms of heroin.

According to the criminal complaint, Hughes and Roane believed that the confidential source also worked as a tax preparer and they provided the personal information of more than 30 individuals, including names, dates of birth and social security numbers, to the confidential source to prepare and submit false tax returns to the IRS in order to obtain fraudulent tax refunds. The criminal complaint alleges that Roane obtained the personal information from law enforcement databases through her position as a Baltimore Police officer.

Roane faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for possession with intent to distribute heroin, and a mandatory minimum sentence of five years in prison and a maximum of life in prison for possession of a gun in furtherance of a drug trafficking crime. Roane and Hughes face a mandatory sentence of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. The defendants will be detained pending an initial appearance which will be scheduled for Monday, June 3, 2013, in U.S. District Court in Baltimore.

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

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

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Vincent Hernandez, age 31, of Hagerstown, Maryland, today to 10 years in prison followed by five years of supervised release for conspiring to distribute cocaine base, possession of a firearm in furtherance of the drug conspiracy and being a felon in possession of a gun. Judge Motz enhanced Hernandez’s sentence upon finding that he has a prior felony conviction for a drug offense.

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

According to evidence presented at the three day trial, from November 2009 to January 2010, an individual made four controlled buys of crack cocaine supplied by Hernandez. After the fourth purchase on January 6, 2010, members of the Washington County Task Force and DEA executed a search warrant at Hernandez’s home and seized drug paraphernalia including a digital scale, plastic baggies; names and telephone numbers of drug customers; a handgun and bullets; and $4,135. Due to Hernandez’ previous felony conviction, he was prohibited from possessing a gun.

United States Attorney Rod J. Rosenstein commended the DEA and Washington County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Corey Moore, age 37, of Takoma Park, Maryland, today to 271 months in prison followed by five years of supervised release for possession with intent to distribute controlled substances, specifically cocaine and phencyclidine (PCP); possession of firearms in furtherance of a drug trafficking crime; and being a felon in possession of guns and ammunition.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Alan Goldberg of the Takoma Park Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

“Corey Moore will no longer sell drugs and foment violence on the streets of Maryland and D.C.,” said U.S. Attorney Rod J. Rosenstein.

According to evidence presented at his one week bench trial, on September 25, 2010, Moore possessed with intent to distribute powder cocaine, which was recovered by Takoma Park police after a chase. In addition, on September 27, 2010, police executed a search warrant at Moore’s residence and seized one kilogram or more of PCP, which Moore intended to distribute, as well as a .44 caliber, semi-automatic pistol, a.38 caliber revolver, and six rounds of .38 caliber ammunition. Trial testimony showed that Moore possessed the guns to further his drug trafficking and that Moore was prohibited from possessing the guns and ammunition due to a previous felony conviction.

United States Attorney Rod J. Rosenstein praised ATF, the Takoma Park Police Department, Montgomery County Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Steven E. Swaney and Mara Zusman Greenberg, who prosecuted the case.