District of Maryland

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Monzell Lee, age 20, of Baltimore, Maryland, today to nine years in prison followed by five years of supervised release for interference with commerce by robbery and possession of a gun in furtherance of a crime of violence. Judge Hollander also ordered Lee to pay restitution to the victims totaling $1,937.

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; and Baltimore Police Commissioner Anthony W. Batts.

According to Lee’s plea agreement, between May 28 and June 11, 2012, Lee participated in four robberies of convenience stores and fast food restaurants in the Baltimore area. In each robbery Lee entered the store with a co-conspirator, who was armed. The co-conspirator brandished the gun at the store employees and Lee and the co-conspirator took cash from the register. A third conspirator, Rico Bias, then drove Lee and the other conspirator away from the scene of each robbery.

Specifically, Lee robbed: the Burger King in the 8300 block of Harford Road in Baltimore on May 28, 2012; the Royal Farms Store in the 1900 block of Belair Road and the Royal Farms Store in the 900 block of West 36th Street, both in Baltimore, on May 29, 2012; and the Wendy’s Restaurant in the 3600 block of Washington Boulevard in Elkridge on June 11, 2012.

Bias, age 34, also of Baltimore, previously pleaded guilty to conspiring to commit a commercial robbery and the gun charge and is scheduled to be sentenced on June 21, 2013 at 11:30 a.m.

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

Baltimore, Maryland - Anthony K. Mastrogiovanni, 30, of Crofton, MD, pleaded guilty today to the sexual exploitation of minors to produce child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

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

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

As part of his plea agreement, Mastrogiovanni 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).

Mastrogiovanni faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for sexual exploitation of a minor to produce child pornography. U.S. District Judge J. Frederick Motz has scheduled sentencing for July 31, 2013 at 9:30 a.m.

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

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

Falsified Drug Tests of Federal Defendants in Return for Bribes and
Then Lied to a Grand Jury Investigating the Accusations

Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Lauren Jeannette Diggs, age 51, of Rockville, today to 30 months in prison followed by three years of supervised release for a bribery conspiracy and making false statements to the grand jury, in connection with a scheme to accept bribes from individuals charged or convicted of federal crimes to falsify urine tests.

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

“Lauren Jeannette Diggs took bribes to falsify drug tests of federal criminal defendants, then committed perjury before the grand jury investigating the allegations,” said U.S. Attorney Rod J. Rosenstein. “Providing false information to courts and grand juries undermines the integrity of the criminal justice system.”

From July 27, 2009 through December 30, 2010, Diggs was the primary alcohol and substance abuse counselor for ADR, a company that provides alcohol and drug treatment services, at ADR’s Forestville facility, where she also supervised urine tests on female clients. U.S. Probation and Pretrial Services in Maryland contracted with ADR to test the urine samples of individuals who were on pretrial release, supervised release, parole or probation for the presence of controlled substances. When ADR clients completed their substance abuse and mental health treatment programs, ADR provided them with discharge summary certificates. U.S. Probation relied on the urine test results and certificates prepared by ADR to supervise individuals charged with or convicted of federal crimes, and to prepare reports to the U.S. District Court or the Parole Commission, who in turn relied on the reports to make release and sentencing decisions.

According to her guilty plea, starting in January 2010, Diggs asked co-conspirator Christopher Womack, who was employed at ADR as a urine technician, and others to ensure that certain ADR clients would not have their urine samples accurately tested and reported to U.S. Probation in exchange for money from ADR clients. Diggs introduced Womack to her bribe-paying clients and explained her bribe pricing schedule to Womack. After she was fired from ADR on December 30, 2010, Diggs continued to assist Womack in providing fictitious certificates to ADR clients in exchange for money, and received proceeds of bribe payments from Womack.

Many of the federal defendants who paid bribes had significant criminal histories and had been in fact ingesting controlled substances while on supervised release. In total, Diggs and Womack accepted more than 100 individual bribe payments.

During 2012, the Grand Jury in Greenbelt was investigating the bribery scheme, including Diggs’ participation. Subpoenas were issued in June 2012 requiring Diggs and Womack to appear and provide sworn testimony before the Grand Jury . On June 11, Womack called Diggs to discuss their anticipated testimony. Diggs attempted to persuade Womack to provide false testimony, saying:

“There ain’t nothing else to tell them m—f—!... They have no f— proof.… You don’t know s—. Deny! Deny! Deny!... If you don’t remember no other f— word you remember that g—d— word. Deny!... Cause that’s what the f— I’m gonna do.”

Diggs appeared before the Grand Jury on July 2, 2012 and made false statements, claiming that she did not know anyone at ADR who had received money in exchange for not requiring ADR clients to take court-mandated urine tests, or in exchange for providing discharge certificates. Diggs also denied that she had spoken to Womack since her discharge from ADR.

Three days later, in a telephone conversation on July 5, Diggs again attempted to persuade Womack to provide false testimony to the Grand Jury. Diggs said:

“Yo, that grand jury is nothing…. It’s nothing. It’s easy. Deny. Deny everything. You haven’t seen me…. Anything that’s asked, deny.”

Christopher Womack, age 44, of Forestville, Maryland, pleaded guilty to bribery and was sentenced to three years probation of which nine months are in home confinement

United States Attorney Rod J. Rosenstein praised the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James A. Crowell IV, who prosecuted the case.

Mr. Rosenstein thanked District of Maryland Chief U.S. Probation Officer William Henry for bringing the allegations to the attention of federal law enforcement.

Falsified Drug Tests of Federal Defendants in Return for Bribes and
Then Lied to a Grand Jury Investigating the Accusations

Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Lauren Jeannette Diggs, age 51, of Rockville, today to 30 months in prison followed by three years of supervised release for a bribery conspiracy and making false statements to the grand jury, in connection with a scheme to accept bribes from individuals charged or convicted of federal crimes to falsify urine tests.

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

“Lauren Jeannette Diggs took bribes to falsify drug tests of federal criminal defendants, then committed perjury before the grand jury investigating the allegations,” said U.S. Attorney Rod J. Rosenstein. “Providing false information to courts and grand juries undermines the integrity of the criminal justice system.”

From July 27, 2009 through December 30, 2010, Diggs was the primary alcohol and substance abuse counselor for ADR, a company that provides alcohol and drug treatment services, at ADR’s Forestville facility, where she also supervised urine tests on female clients. U.S. Probation and Pretrial Services in Maryland contracted with ADR to test the urine samples of individuals who were on pretrial release, supervised release, parole or probation for the presence of controlled substances. When ADR clients completed their substance abuse and mental health treatment programs, ADR provided them with discharge summary certificates. U.S. Probation relied on the urine test results and certificates prepared by ADR to supervise individuals charged with or convicted of federal crimes, and to prepare reports to the U.S. District Court or the Parole Commission, who in turn relied on the reports to make release and sentencing decisions.

According to her guilty plea, starting in January 2010, Diggs asked co-conspirator Christopher Womack, who was employed at ADR as a urine technician, and others to ensure that certain ADR clients would not have their urine samples accurately tested and reported to U.S. Probation in exchange for money from ADR clients. Diggs introduced Womack to her bribe-paying clients and explained her bribe pricing schedule to Womack. After she was fired from ADR on December 30, 2010, Diggs continued to assist Womack in providing fictitious certificates to ADR clients in exchange for money, and received proceeds of bribe payments from Womack.

Many of the federal defendants who paid bribes had significant criminal histories and had been in fact ingesting controlled substances while on supervised release. In total, Diggs and Womack accepted more than 100 individual bribe payments.

During 2012, the Grand Jury in Greenbelt was investigating the bribery scheme, including Diggs’ participation. Subpoenas were issued in June 2012 requiring Diggs and Womack to appear and provide sworn testimony before the Grand Jury . On June 11, Womack called Diggs to discuss their anticipated testimony. Diggs attempted to persuade Womack to provide false testimony, saying:

“There ain’t nothing else to tell them m—f—!... They have no f— proof.… You don’t know s—. Deny! Deny! Deny!... If you don’t remember no other f— word you remember that g—d— word. Deny!... Cause that’s what the f— I’m gonna do.”

Diggs appeared before the Grand Jury on July 2, 2012 and made false statements, claiming that she did not know anyone at ADR who had received money in exchange for not requiring ADR clients to take court-mandated urine tests, or in exchange for providing discharge certificates. Diggs also denied that she had spoken to Womack since her discharge from ADR.

Three days later, in a telephone conversation on July 5, Diggs again attempted to persuade Womack to provide false testimony to the Grand Jury. Diggs said:

“Yo, that grand jury is nothing…. It’s nothing. It’s easy. Deny. Deny everything. You haven’t seen me…. Anything that’s asked, deny.”

Christopher Womack, age 44, of Forestville, Maryland, pleaded guilty to bribery and was sentenced to three years probation of which nine months are in home confinement

United States Attorney Rod J. Rosenstein praised the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James A. Crowell IV, who prosecuted the case.

Mr. Rosenstein thanked District of Maryland Chief U.S. Probation Officer William Henry for bringing the allegations to the attention of federal law enforcement.

Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Corey Jones, age 38, of Baltimore, Maryland, today to eight years in prison followed by five years of supervised release for being a felon in possession of a gun. Judge Bennett enhanced Jones’ sentence upon finding that that Jones had attempted to obstruct justice when he absconded while on pretrial home detention with electronic monitoring.

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

According to court documents and statement made a today’s sentencing hearing, On July 4, 2010, Baltimore police conduct a traffic stop of a vehicle after observing a broken and cracked side mirror. The vehicle had three occupants: the defendant in the front passenger seat, the defendant's brother, who was driving, and the defendant's wife in the rear passenger seat.

After officers approached the car, they saw Jones’ wife in the back passenger seat attempting to remove a knife from her waistband. An officer reached through the window and took the knife from her, and then ordered her out of the vehicle. Instead of complying, she reached for her purse and the officer then opened the door and removed her from the vehicle. Once she and the purse were on the sidewalk, the officer saw the butt of a handgun protruding from her purse. The gun was later identified as a loaded .32 caliber handgun.

Officers then removed Jones and his brother from the vehicle. As he was being arrested Jones told officers that the gun was his and that he had put it in his wife’s purse. Officers took all three of the car's occupants to the station and obtained voluntary, post-Miranda, taped statements from each of them. Jones again stated that the gun was his, and that he placed it in his wife’s purse without her knowledge before they got in the car.

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

Caused Approximately $4 Million in Losses to Investors

Baltimore, Maryland - Larry Michael Parrish, a/k/a Michael Parrish, age 49, of Walkersville, Maryland pleaded guilty today to wire fraud arising from an investment scheme.

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

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

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

Parrish faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge J. Frederick Motz scheduled sentencing for November 15, 2013, at 10:00 a.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 FBI for its work in the investigation and praised Assistant U.S. Attorney Jefferson M. Gray and Harry M. Gruber, who are prosecuting the case. The United States Securities & Exchange Commission (SEC) also conducted an investigation of Parrish, and obtained a default judgment against him in a civil action filed in federal court in Denver, Colorado in September 2012.

Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Duane Curtis, age 37, of Randallstown, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute cocaine and conspiracy to launder money.

The sentence 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.

According to Curtis’ guilty plea, from July 2011 through March 2012, Curtis conspired with Monique Devane and others to distribute cocaine. Devane shipped cocaine from Arizona to Curtis in Maryland for distribution. Curtis sold the cocaine in Maryland and deposited the proceeds into one of four bank accounts controlled by Devane. Devane used the money to purchase more cocaine in Arizona. Over the course of the conspiracy, Curtis deposited over $253,350 in drug proceeds and through his participation in the conspiracy between five and 15 kilograms of cocaine were foreseeable to Curtis.

Monique Devane, age 34, of Yuma, Arizona, previously pleaded guilty and was sentence to five years in prison.

United States Attorney Rod J. Rosenstein commended the DEA Washington and Arizona Field Offices for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Brooke Carey and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Marvin Junius Simmons, age 43, of Alexandria, Virginia, today to 10 years in prison followed by three years of supervised release for three bank robberies.

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

According to Simmons= guilty plea, between December 29, 2011 and February 27, 2012, Simmons robbed three banks located in Prince George’s County. In each robbery, Simmons presented the teller with a note threatening that he had a nuclear bomb and demanding money. Latent fingerprints obtained from each of the three notes matched known fingerprints of Simmons. In addition, after the first robbery law enforcement recovered items of clothing worn by the robber and DNA on some of the clothing was consistent with the known DNA of Simmons. Simmons admits that he stole a total of approximately $5,900 in the three robberies.

Specifically, Simmons robbed: the Wells Fargo Bank in the 5800 block of Silver Hill Road in District Heights, Maryland, on December 29, 2011, stealing $3,200; the Suntrust Bank in the 5700 block of Crain Highway in Upper Marlboro, Maryland on January 10, 2012, stealing $550; and the M&T Bank in the 6300 block of Kirby Road in Clinton, Maryland, on February 27, 2012, stealing $2,150.

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

United States Attorney Rod J. Rosenstein commended the DEA Washington and Arizona Field Offices for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Brooke Carey and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Edwin Galvez-Berganza, age 30, of Hyattsville, Maryland, today to 15 years in prison followed by five years of supervised release for conspiring to distribute cocaine.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department .

“This sentence is a great example of HSI’s mission to identify international drug traffickers and disrupt and dismantle their criminal operations in the United States,” said ICE Homeland Security Investigations Special Agent in Charge in Baltimore William Winter. “Let there be no mistake, drug trafficking organizations are reaching right here into our homes and communities in Maryland and HSI remains committed to working with our federal, state and local law enforcement partners to combat these criminal organizations that want to profit from poisoning our children and destroying our way of life.”

According to his guilty plea, from 2005 to 2009 Berganza was a leader of a cocaine trafficking ring. Cocaine was flown from Guatemala to the United States, driven to Connecticut and then hidden in trailer hitches and driven from Connecticut to Berganza and his co-conspirators in Maryland. Each trailer hitch contained 3.5 kilograms of cocaine, which Berganza and his co-conspirators removed with a saw. Berganza also received cocaine that was hidden in candy. Berganza distributed the cocaine to co-conspirators and others.

In November 2006, law enforcement officers arrested two conspirators as they were transporting approximately 20 kilograms of cocaine from Connecticut to Berganza in Maryland. Two days later, Berganza fled the United States to Guatemala to avoid arrest. While in Guatemala, Berganza continued to ship packages of cocaine from Guatemala to Silver Spring, Maryland.

Berganza is responsible for the distribution of more than 150 kilograms of cocaine.

Six defendants have pleaded guilty and been sentenced to up to 10 years in prison.

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

Greenbelt, Maryland – David Dobbs, age 55, of Port Republic, Maryland, pleaded guilty today to transporting child pornography.

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 Colonel Marcus L. Brown, Superintendent of the Maryland State Police.

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

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

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

Dobbs faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison. As part of his plea agreement, Dobbs and the government will recommend to the Court that a sentence of 90 months in prison, followed by a period of supervised release, is the appropriate disposition of the case. U.S. District Judge Peter J. Messitte has scheduled sentencing for July 25, 2013 at 9:30 a.m.

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

United States Attorney Rod J. Rosenstein commended the FBI and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Kenneth Robinson, age 37, of Baltimore, Maryland, today to 20 years in prison followed by 10 years of supervised release for conspiracy to distribute and possession with intent to distribute crack cocaine.

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

According to testimony at Robinson’s two day trial, on July 1, 2011, Baltimore police officers executed search warrants at Robinson’s home on Cedarhurst Road in Baltimore and his car. Robinson told the officers that they would find drugs and cash in ceiling tiles in the basement and in his car. The officers seized a total of approximately 589 grams of crack cocaine and $36,046. The evidence showed that Robinson sold drugs in the York Road corridor.

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

Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Tyrone Johniken, a/k/a “Hassan Muhammed,” and “Roland,” age 30, of Baltimore, today to life in prison for a racketeering conspiracy, conspiracy to commit murder in aid of racketeering and conspiracy to distribute and possess with intent to distribute drugs in connection with a drug gang operating on a stretch of Baltimore Street in Baltimore known as “the Block.” Johniken was convicted on November 21, 2012, after a three week trial.

Yesterday, Judge Bredar sentenced co-defendant Donte Bernard Baker, a/k/a “Tay,” and “Donnie,” age 23, also of Baltimore, to 40 years in prison followed by five years of supervised release. Baker previously pleaded guilty to the racketeering conspiracy, conspiracy to commit murder in aid of racketeering and possession of a firearm in furtherance of a drug trafficking crime.

The sentences 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; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Commissioner Anthony W. Batts of the Baltimore Police Department.

“This case demonstrates how illegal drugs can lead to violence and despair,” said U.S. Attorney Rod J. Rosenstein. “Evidence introduced at the trial showed that Cherrie Gammon helped the conspirators distribute drugs on the Block, and Tyrone Johniken and Donte Baker arranged to murder her because they were worried about her cooperating with the police.”

According to evidence presented at Johniken’s trial and court documents, from at least January 2008 to the present, Donte Baker and his mother, co-defendant Monica McCants, were leaders of the gang who supplied heroin and crack cocaine in “packs” of 10, 20 or 60 pills/vials to lower tier members, including defendants Johniken and Gary Cromartie. Johniken and Cromartie then sold the drugs to runners and drug users on the Block. The profits from these sales were given to McCants and Baker, who paid the lower tier members for making the sales. Johniken also assaulted a police officer on July 2, 2009. In November 2010, Baker collected money from drug sales in an effort to bail McCants out of jail.

The gang members protected themselves and the drug organization through violence and intimidation, including the murder of Cherrie Gammon on December 12, 2010. More specifically, on November 25, 2010, McCants instructed Baker to assault Gammon to ensure that Gammon provided the gang with drug proceeds. On December 12, 2010, Gammon was driven to the area of Leon Day Park in Baltimore where she was murdered by Johniken, Baker and Cromartie. In a phone call on December 30, 2010, McCants stated to Baker that law enforcement probably learned from Gammon that Gammon owed money to Baker for drugs.

Gary Thenor Cromartie, a/k/a “Miami,” age 24; and Monica McCants, a/k/a “Money,” age 42, both of Baltimore, previously pleaded guilty to their participation in the racketeering conspiracy. Cromartie also pleaded guilty to conspiring to commit murder in aid of racketeering. Cromartie and McCants are scheduled to be sentenced on May 23 and May 24, respectively. They each face a maximum sentence of life in prison for the racketeering conspiracy and for conspiracy to distribute and possess with intent to distribute drugs.

United States Attorney Rod J. Rosenstein commended the ATF, DEA and Baltimore Police Department for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Joshua Kaul and Robert R. Harding, who prosecuted the case.

Baltimore, Maryland - A federal grand jury has indicted an immigration attorney and four of his clients in connection with a conspiracy to bribe an immigration official in order to obtain lawful permanent residence, employment authorization documents and green cards. The defendants are:

Kiran Dewan, age 59, of Woodbine, Maryland; Amjad Israr, age 46, of Cheshire, Connecticut; Mohammad Khan, age 58, of Baltimore, Maryland; Khazar Nadar, age 55, of Catonsville, Maryland; and
Narayan Thapa, age 51, of Perry Hall, Maryland.

The indictment was returned on January 8, 2013, and unsealed today upon the arrests of Dewan, Israr, Khan and Thapa.

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

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

According to the indictment, Dewan is a Maryland attorney, who held himself out as having experience handling immigration matters. Dewan operated the Law Offices of Dewan and Associates, P.C., located in Windsor Mill, Maryland. Israr, Khan and Nadar are citizens of Pakistan and Thapa is a citizen of Nepal. All were clients of Dewan. Israr and Khan were both businessmen, operating several convenience stores in Connecticut and a restaurant in Brooklyn Park, Maryland, respectively. Nadar worked at several gas stations in Maryland and Thapa worked at a Maryland restaurant. None of the clients met the requirements for lawful permanent residence, nor for employment authorization.

The five count indictment alleges that beginning in at least March 2011 Dewan obtained money from Israr, Khan, Nadar and Thapa to bribe an undercover agent to obtain lawful permanent residence, employment authorization documents and green cards. Dewan then allegedly prepared fraudulent immigration documents for his clients to sign and submit to the undercover agent. In the documents, Dewan, Israr and Khan falsely represented that Israr and Khan were married to U.S. citizens. Dewan, Nadar and Thapa falsely represented that Nadar and Thapa’s employers had sponsored them to seek lawful permanent residence.

The indictment alleges that the defendants met with the undercover HSI special agent on several occasions to create application documents for submission to USCIS. Although Dewan allegedly agreed to pay the undercover agent bribes for each client in order the obtain the requested documents, Dewan provided the undercover agent a total of $117,100 in a series of installments. Dewan kept $2,900 as his commission on a bribe payment of $36,000 that he wired to a foreign account, which purportedly belonged to the undercover agent.

The defendants each face a maximum sentence of five years in prison for the conspiracy and a maximum of 15 years in prison for each count of bribery. An initial appearance is scheduled today for Dewan, Khan and Thapa in U.S. District Court in Baltimore. Israr had an initial appearance in U.S. District Court in New Haven, Connecticut, and was detained.

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

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

Baltimore, Maryland - U.S. Renal Care, headquartered in Plano, Texas, has agreed to pay $7.3 million to resolve allegations that Dialysis Corporation of America (DCA) violated the False Claims Act by submitting false claims to the Medicare program for more Epogen than was actually administered to dialysis patients at DCA facilities. U.S. Renal Care, which acquired DCA in June 2010, owns and operates more than 100 freestanding outpatient dialysis facilities throughout the United States. Prior to its acquisition by U.S. Renal Care, DCA was a publicly traded company based in Linthicum, Maryland.

The settlement was announced 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; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.

Epogen is an intravenous medication that is used to treat anemia, a common condition afflicting patients with end-stage renal disease. Epogen vials contain a small amount of medication in excess of the labeled amount, known as “overfill,” to compensate for medication that may remain in the vial after extraction and in the syringe upon administration. The United States contends that from January 2004 through May 2011, DCA billed for 10-11% overfill whenever it administered Epogen. However, because of the types of syringes DCA used, the United States alleges that DCA was not able to withdraw and administer 10-11% overfill every time it administered Epogen to patients, and thus submitted false claims to Medicare that overstated the amount of Epogen that it was actually providing.

“Medical care providers who submit false claims for services and products that were not actually delivered threaten the financial viability of the Medicare Trust Fund,” said Rod J. Rosenstein, U.S. Attorney for the District of Maryland.

“Today’s settlement shows that the Justice Department will aggressively pursue those health care providers who cut corners at the expense of the American taxpayers, such as by billing for items and services that were not provided,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “We will continue to protect scarce Medicare dollars.”

“Health providers billing for phantom services cheat taxpayers and cheat government programs straining to pay for vitally needed care,” said Nick DiGiulio, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services for the region including Maryland. “We will continue to work with the Department of Justice to ensure health professionals get reimbursed only for services they actually provide.”

The claims settled by this agreement are allegations, and there has been no determination of liability.

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 $10.2 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 $14.2 billion.

The allegations settled today arose from a lawsuit filed by Laura Davis against DCA under the qui tam, or whistleblower, provisions of the False Claims Act. United States ex rel. Laura Davis v. Dialysis Corporation of America, No. 1:08-cv-2829 (D. Md.). The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the United States and share in any recovery. Ms. Davis will receive $1,314,000 as part of today’s settlement.

This case was handled by Assistant U.S. Attorney Roann Nichols of the U.S. Attorney’s Office for the District of Maryland and Trial Attorney Arthur Di Dio of the Civil Division of the Department of Justice, with assistance from the Office of Inspector General for the Department of Health and Human Services.

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Diana J. Stout, age 56, of Bethesda, Maryland, today to 27 months in prison followed by three years of supervised release for making a false statement in bankruptcy, and concealment of assets, in connection with her Chapter 7 Bankruptcy case. Judge Motz also ordered Stout to pay restitution of $155,747.83.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and the Greenbelt Office of the United States Trustee Program, the Department of Justice agency that supervises bankruptcy cases and trustees.

According to Stout’s plea agreement, from April 2010 through June 2011, Stout engaged in a scheme to defraud creditors in her Chapter 7 bankruptcy case, the trustee and the bankruptcy court. Stout filed a Chapter 7 bankruptcy petition on April 20, 2010. The Chapter 7 bankruptcy process is designed to provide a “fresh start” by liquidating all assets of the debtor and distributing the proceeds of the bankruptcy estate to creditors. A Chapter 7 bankruptcy trustee is appointed to gather these assets and generally act on behalf of unsecured creditors.

The filing of the bankruptcy petition prevented Stout’s former boyfriend from proceeding in a civil complaint he had filed against Stout and two of her children claiming that Stout had misappropriated more than $1 million of his assets for her own use or the use of her children, including for the purchase of property in South Carolina. Stout and her daughter had purchased the property, which was titled in both their names, in February 2008, with funds provided by Stout and her boyfriend. In July 2009, after Stout’s relationship with her boyfriend had ended, Stout transferred her interest in the property to her daughter for $1.

In order to conceal her assets, when Stout filed her bankruptcy petition she failed to disclose: that she had transferred the South Carolina property to her daughter; that she owned a diamond bracelet with 75 individually set diamonds in 18kt white gold; that she owned 797 shares of common stock in Eagle Bancorp Inc.; and that she owned a 1993 Toyota Supra and 2005 Chevrolet Avalanche SUV, in addition to the two vehicles listed. Between October 2010 and May 2011, Stout sold the Toyota Supra for $14,000; the stock for a total of $10,125.91; and the diamond bracelet for $85,000, none of which she reported to the bankruptcy trustee.

Stout’s bankruptcy estate included a home in Hagerstown, Maryland. In November 2010, Stout filed an insurance claim seeking reimbursement for necessary repairs to the property, resulting from water damage. She did not notify the Chapter 7 trustee that she was seeking to obtain insurance proceeds relating to property of the bankruptcy estate. After receiving the checks, which were issued jointly to her and the contractors who were to perform the work, Stout forged the signatures of the contractors, converted the proceeds of all three checks to her own use, and did not use any of the money to perform the needed repairs. The bankruptcy trustee was forced to use other assets of the bankruptcy estate to perform the needed repairs.

On February 13, 2011, the bankruptcy trustee initiated proceedings in the bankruptcy court which sought to recover Stout’s interest in the South Carolina property, alleging that the transfer was intended to defraud Stout’s creditors and that Stout did not receive reasonably equivalent value for the transfer. Shortly thereafter, Stout signed and had a revised deed filed which falsely stated that the property had been transferred to her daughter in exchange for $75,000 paid to Stout. Stout then filed an “Answer” to the trustee’s complaint, which she signed on behalf of her daughter, falsely stating that her daughter had paid Stout $75,000 for her interest in the South Carolina property. Stout knew that the statements were false and she admitted that she made them with the intent to defeat the Chapter 7 trustee’s legal action and to defraud her creditors.

Between March 15 and March 30, 2011, Stout also filed numerous false pleadings purporting to withdraw a claim for payment that had been filed by Stout’s creditors, and which bore either typewritten or forged handwritten signatures purporting to be from the named creditor. In fact, the creditor was not aware of the filing and had not signed such a filing. Many of the pleadings also contained a fraudulent certificate of service bearing the typewritten signature of Stout’s bankruptcy attorney, who in fact did not prepare or serve these pleadings, or authorize Stout to sign them on his behalf.

United States Attorney Rod J. Rosenstein praised the FBI and the U.S. Trustee’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorneys Liza Collery of the U.S. Justice Department, Criminal Division, Appellate Section and Ann O’Brien of the U.S. Department of Justice Antitrust Division, who prosecuted the case.

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Frank Alan Klukosky, age 43, of Laurel, Maryland, today to 20 years in prison, followed by lifetime supervised release, for producing child pornography. Chief Judge Chasanow also ordered that upon his release from prison Klukosky 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; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; and Stephen Niemczak Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Computer Forensics and Investigative Research Branch.

According to Klukosky’s plea agreement, in June 2012, a federal probation officer discovered images and videos of child pornography on the cell phone of a registered sex offender on federal probation. Further investigation revealed that on June 24, 2012 Klukosky drove to the registered sex offender’s home in Laurel with an SD card that contained at least 120 images and six videos of child pornography. Klukosky then helped the registered sex offender load those images and videos onto his computer and cell phone.

On October 23, 2012 the FBI executed a search warrant at Klukosky’s home and seized video cameras, key fob cameras, computers, an external hard drive and other computer accessories. The external hard drive contained approximately 2,000 images and 16 videos of child pornography, including 11 videos depicting a 13 year old girl in a bathroom. The videos were taken with hidden key fob cameras. The videos were recorded on at least 10 occasions and depict the victim in stages of undress. In at least one of the videos, Klukosky is recorded while setting up or taking down the camera.

The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from 10 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.

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, the Laurel and Howard County Police Departments and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who prosecuted the case.

                                                Secretly Recorded a 13 Year Old Girl in a Bathroom

Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Frank Alan Klukosky, age 43, of Laurel, Maryland, today to 20 years in prison, followed by lifetime supervised release, for producing child pornography. Chief Judge Chasanow also ordered that upon his release from prison Klukosky 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; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; and Stephen Niemczak Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Computer Forensics and Investigative Research Branch.

According to Klukosky’s plea agreement, in June 2012, a federal probation officer discovered images and videos of child pornography on the cell phone of a registered sex offender on federal probation. Further investigation revealed that on June 24, 2012 Klukosky drove to the registered sex offender’s home in Laurel with an SD card that contained at least 120 images and six videos of child pornography. Klukosky then helped the registered sex offender load those images and videos onto his computer and cell phone.

On October 23, 2012 the FBI executed a search warrant at Klukosky’s home and seized video cameras, key fob cameras, computers, an external hard drive and other computer accessories. The external hard drive contained approximately 2,000 images and 16 videos of child pornography, including 11 videos depicting a 13 year old girl in a bathroom. The videos were taken with hidden key fob cameras. The videos were recorded on at least 10 occasions and depict the victim in stages of undress. In at least one of the videos, Klukosky is recorded while setting up or taking down the camera.

The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from 10 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.

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, the Laurel and Howard County Police Departments and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who prosecuted the case.

Drug Courier Kidnapped and Dismembered in Bathtub

Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Hubert Downer, a/k/a “Doc, age 52, of Jamaica, today to 20 years in prison followed by three years of supervised release for murder in aid of racketeering.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.

“Today’s sentence of Hubert Downer for murder in aid of racketeering is the culmination of a long-term investigation for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and three countries,” said William Winter, special agent in charge of HSI Baltimore. “HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities. HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”

According to his plea agreement and court documents, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. Downer helped distribute the marijuana for Brown. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.

On December 16, 2009, Jean Brown and Carl Smith met with Michael Knight, another member of the organization, in Maryland. Knight was holding approximately $1,000,000 in drug proceeds for Brown, but when they came to collect the money, approximately $250,000 was missing.

Brown, Smith and Dean Myrie took Knight, bound with a telephone cable, to an apartment in White Marsh, Maryland. Brown assaulted and interrogated Knight. Subsequently, Brown and Smith got Downer and Peter Blake, another member of the drug organization, to help torture Knight to reveal the location of the money. When Knight did not provide the location of the money, Brown ordered Downer and Blake to kill Knight. Downer and Blake took a large knife into the bathroom where Knight was being held and Blake stabbed him to death in the bathtub with Downer’s help.

Over the next several days, Downer, Brown and Blake cut off Knight’s legs with a power saw and disposed of them in a dumpster. Downer, Blake and Myrie put the remainder of Knight’s body in a large cardboard box and disposed of it in another dumpster.

Jean Brown, age 43, of Jamaica, was convicted by a federal jury at trial of the drug conspiracy, kidnapping and murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering. Judge Quarles sentenced Brown to life in prison. Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Michael Reid, age 51, and Peter Blake, age 55, both of Jamaica, have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Carl Smith was killed in 2010.

United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Hubert Downer, a/k/a “Doc, age 52, of Jamaica, today to 20 years in prison followed by three years of supervised release for murder in aid of racketeering.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.

“Today’s sentence of Hubert Downer for murder in aid of racketeering is the culmination of a long-term investigation for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and three countries,” said William Winter, special agent in charge of HSI Baltimore. “HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities. HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”

According to his plea agreement and court documents, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. Downer helped distribute the marijuana for Brown. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.

On December 16, 2009, Jean Brown and Carl Smith met with Michael Knight, another member of the organization, in Maryland. Knight was holding approximately $1,000,000 in drug proceeds for Brown, but when they came to collect the money, approximately $250,000 was missing.

Brown, Smith and Dean Myrie took Knight, bound with a telephone cable, to an apartment in White Marsh, Maryland. Brown assaulted and interrogated Knight. Subsequently, Brown and Smith got Downer and Peter Blake, another member of the drug organization, to help torture Knight to reveal the location of the money. When Knight did not provide the location of the money, Brown ordered Downer and Blake to kill Knight. Downer and Blake took a large knife into the bathroom where Knight was being held and Blake stabbed him to death in the bathtub with Downer’s help.

Over the next several days, Downer, Brown and Blake cut off Knight’s legs with a power saw and disposed of them in a dumpster. Downer, Blake and Myrie put the remainder of Knight’s body in a large cardboard box and disposed of it in another dumpster.

Jean Brown, age 43, of Jamaica, was convicted by a federal jury at trial of the drug conspiracy, kidnapping and murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering. Judge Quarles sentenced Brown to life in prison. Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Michael Reid, age 51, and Peter Blake, age 55, both of Jamaica, have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Carl Smith was killed in 2010.

United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.

                        Drug Courier Kidnapped and Dismembered in Bathtub

Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Hubert Downer, a/k/a “Doc, age 52, of Jamaica, today to 20 years in prison followed by three years of supervised release for murder in aid of racketeering.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.

“Today’s sentence of Hubert Downer for murder in aid of racketeering is the culmination of a long-term investigation for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and three countries,” said William Winter, special agent in charge of HSI Baltimore. “HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities. HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”

According to his plea agreement and court documents, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. Downer helped distribute the marijuana for Brown. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.

On December 16, 2009, Jean Brown and Carl Smith met with Michael Knight, another member of the organization, in Maryland. Knight was holding approximately $1,000,000 in drug proceeds for Brown, but when they came to collect the money, approximately $250,000 was missing.

Brown, Smith and Dean Myrie took Knight, bound with a telephone cable, to an apartment in White Marsh, Maryland. Brown assaulted and interrogated Knight. Subsequently, Brown and Smith got Downer and Peter Blake, another member of the drug organization, to help torture Knight to reveal the location of the money. When Knight did not provide the location of the money, Brown ordered Downer and Blake to kill Knight. Downer and Blake took a large knife into the bathroom where Knight was being held and Blake stabbed him to death in the bathtub with Downer’s help.

Over the next several days, Downer, Brown and Blake cut off Knight’s legs with a power saw and disposed of them in a dumpster. Downer, Blake and Myrie put the remainder of Knight’s body in a large cardboard box and disposed of it in another dumpster.

Jean Brown, age 43, of Jamaica, was convicted by a federal jury at trial of the drug conspiracy, kidnapping and murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering. Judge Quarles sentenced Brown to life in prison. Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Michael Reid, age 51, and Peter Blake, age 55, both of Jamaica, have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Carl Smith was killed in 2010.

United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Donald Hunter, a/k/a Pep, age 48, of Upper Marlboro, Maryland, today to 188 months in prison followed by five years of supervised release for conspiracy to distribute phencyclidine (PCP), cocaine base and heroin; and being a felon in possession of a gun. Judge Titus found that Hunter was an armed career criminal based on four previous drug convictions.

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

According to his guilty plea, beginning in June 2011, Hunter, Wayne Glymph, Samuel Braxton and other conspirators sold PCP, heroin and crack to drug customers in Prince George's County, Maryland, and in the Washington, D.C. metropolitan area. Hunter and others used Braxton’s apartment and a bowling alley in Temple Hills, Maryland to store and distribute narcotics. Hunter prepared, packaged and delivered the drugs to customers on Braxton’s behalf, and collected drug debts from customers. Hunter was responsible for distributing between one and three kilograms of PCP, between 28 and 112 grams of crack, and between 100 and 400 grams of heroin.

On February 23, 2011, law enforcement executed a search warrant at Hunter’s residence and seized 8.5 grams of heroin, plastic baggies with cocaine residue, assorted drug paraphernalia, and a loaded revolver. Hunter had previously been convicted of a felony and was prohibited from possessing a gun.

Samuel Braxton, a/k/a Fats, age 44, of Temple Hills and Wayne Glymph, age 46, of Fort Washington, Maryland, previously pleaded guilty to their participation in the conspiracy, and were sentenced to 27 years and 10 years in prison, respectively. A total of 10 defendants have pleaded guilty to date to charges arising from the drug conspiracy.

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 and Steven E. Swaney, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – A federal grand jury today returned an indictment charging Jean Claude Roy, a/k/a “Dredd the Don,” and “Dreddy,” age 30, of Germantown, Maryland, with attempted sex trafficking by force, fraud and coercion; and interstate transportation for prostitution.

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

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

According to the six-count indictment, between December 9 and December 25, 2012, Roy attempted to force three individuals to engage in commercial sex acts, from which Roy benefitted financially. Further, the indictment alleges that Roy transported the three individuals across state lines to engage in prostitution and sexual activity.

Roy faces a minimum mandatory sentence of 15 years in prison and a maximum of life in prison for each of three counts on sex trafficking; and a maximum of 10 years in prison for each of three counts of interstate transportation for prostitution. An initial appearance has not yet been scheduled in U.S. District Court in Greenbelt. Roy is currently in state custody on related charges.

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

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

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

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

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Shawn Fred Crawford, age 48, of Lusby, Maryland, today to six years in prison followed by 10 years of supervised release for possession and distribution of child pornography. Judge Titus ordered that upon his release from prison, Crawford will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to his plea agreement, on July 25, 2012, Crawford distributed six images and 16 videos depicting children engaged in sexually explicit conduct. Following its investigation, the FBI executed a search warrant at Crawford’s home on September 18, 2012 and seized computers and other digital media containing approximately 4,700 images and 1,100 videos of children engaged in sexually explicit conduct, including children under the age of 12.

The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), with members from 10 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 and abused children.

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 for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Maurice Kenneth Hardy, age 37, of Bridgeville, Delaware, today to 16 years in prison followed by five years of supervised release for conspiring to distribute heroin, cocaine and cocaine base (crack cocaine).

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

According to his guilty plea, from 2009 until his arrest on June 29, 2011, Hardy conspired to sell heroin and cocaine with, or distributed the drugs to, Tereek Nutter and others. Austin Roberts was his primary source of supply. For example, on May 11, 2011, Hardy indicated in a telephone call with a co-conspirator that Roberts would be supplying him with seven kilograms of cocaine for $31,500 per kilogram. The next day in Salisbury, Maryland, Andrew Jackson, under Roberts’ direction, provided several kilograms of cocaine to Hardy. Subsequent to this meeting, law enforcement stopped Jackson’s vehicle and seized over $160,000 from a hidden compartment.

On June 29, 2011, after Hardy obtained 1.027 kilograms of cocaine from a co-conspirator, law enforcement stopped Hardy’s car and seized the cocaine. Law enforcement also executed a search warrant at Hardy’s home and a stash house used by Hardy, and seized a loaded handgun, ammunition, a digital scale, over $10,000, 82.4 grams of cocaine, 41.7 grams of heroin, a pocket scale and a large cocaine press.

During the course of the conspiracy, Hardy and his co-conspirators distributed over 15 kilograms of cocaine, a kilogram of heroin and a quantity of cocaine base.

Austin Roberts, III, age 37, formerly of Elkridge, Maryland; Andrew Jackson, age 39, of Baltimore, Maryland; and Tereek Nutter, age 30, of Salisbury, Maryland, previously pleaded guilty to their participation in the drug conspiracy. Judge Hollander sentenced Jackson to 10 years in prison, Nutter to 151 months in prison and scheduled Roberts’ sentencing for August 9, 2013 at 2:00 p.m.

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

Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Gregory Cook, age 37, of Baltimore, Maryland, today to 16 years in prison, followed by five years of supervised release, for conspiracy to participate in a violent racketeering enterprise known as the Dead Man Incorporated (DMI).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; Anne Arundel County Police Chief Larry W. Tolliver; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Gregg L. Bernstein; and Anne Arundel County State’s Attorney Frank R. Weathersbee.

According to court documents, DMI was founded originally in 2000 as a prison gang in Maryland, and at its inception was closely allied to the Black Guerilla Family (BGF), another prison gang. By 2006, DMI expanded its membership by recruiting members outside prison, including women.

According to Cook’s plea agreement, he was a member of DMI and in the summer of 2009 was in the Brooklyn, Maryland unit of the gang. Cook admitted that he trafficked in cocaine, crack, marijuana and prescription pills with other DMI members. In August and September 2009, one of Cook’s co-conspirators ordered a “hit” on an individual who owed him a drug debt. DMI member Walter Milewski was recruited to commit the murder, but killed the wrong person. As dictated by DMI rules, Cook and his co-conspirator sought the permission of a DMI “Elder” to murder Milewski, because they believed he was a risk to reveal what happened to police and as punishment for killing the wrong man. The murder was authorized and Cook was notified by a call to his cell phone when Milewski was killed.

Two of the founders of DMI, Perry Roark, a/k/a Rock, “Pops,” “Slim,” “Saho the Ghost,” age 42, and James Sweeney, age 36, of Baltimore, previously pleaded guilty and were both sentenced to life in prison.

Mr. Rosenstein praised the FBI, ATF, Maryland Department of Public Safety and Correctional Services; Baltimore County Police Department; Anne Arundel County Police Department; Baltimore City Police Department; the Maryland State Police; Baltimore County State’s Attorney’s Office; Baltimore City State’s Attorney’s Office; and Anne Arundel County State’s Attorney’s Office for their assistance in this investigation and prosecution.

United States Attorney Rod J. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland - John F. “Jef” Curran, III, age 42, of Westminster, Maryland pleaded guilty today to securities fraud, in connection with the sale of $1.9 million worth of stock in his company, Gargoyles, Inc.

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

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

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

As part of his plea, Curran is obligated to pay restitution up to the amount of $1,963,065, to refund to any investor who so wishes, the money they invested in Gargoyles, Inc. Investors will be notified of the option of receiving a refund, and will have 30 days from the receipt of the notice to make the refund request.

As part of his plea agreement, and to resolve In the Matter of John Francis Curran, III and Gargoyles, Inc., Case No. 2010-0184, Curran and Gargoyles, Inc. agree to the entry of a consent order with the Maryland Securities Division of the Office of the Maryland Attorney General prohibiting Curran from violating the Maryland Securities Act and permanently barring Curran from selling or offering for sale securities in Maryland.

Curran faces a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 4, 2013, at 3:00 p.m.

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

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

Baltimore, Maryland - Austin Roberts, III, age 37, formerly of Elkridge, Maryland, pleaded guilty on May 10, 2013 to conspiring to distribute heroin, cocaine and cocaine base (crack cocaine). Roberts remains detained pending sentencing.

The guilty plea 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 Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; U.S. Marshal Johnny Hughes; and Wicomico County State’s Attorney Matthew Maciarello.

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

During the course of the conspiracy, Roberts distributed or directed the distribution of well over 50 kilograms of cocaine, a kilogram of heroin and a quantity of cocaine base.

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

Roberts and the government have agreed that if the Court accepts the plea agreement Roberts will be sentenced to 19 years in prison. U.S. District Judge Ellen L. Hollander scheduled sentencing for August 9, 2013, at 2:00 p.m.

Andrew Jackson, age 39, of Baltimore, Maryland, Maurice Kenneth Hardy, age 37, of Nanticoke, Maryland, and Tereek Nutter, age 29, of Salisbury, Maryland, previously pleaded guilty to their participation in the drug conspiracy. Judge Hollander sentenced Jackson to 10 years in prison, Nutter to 151 months, and scheduled Hardy’s sentencing for May 14, 2013.

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

Ordered to Pay the Victim Restitution of $369,580.80

Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Gloria Edwards, age 61, to a year and a day in prison, followed by three years of supervised release, and sentenced her husband, Alfred, age 74, to three months in prison, followed by seven months of home detention as part of two years of supervised release, for harboring a Filipino national whom they brought to the United States under false pretenses. As a condition of their supervised release, the defendants are prohibited from contacting or harassing the victim in any way. Chief Judge Chasanow also ordered the Edwards’, both of Upper Marlboro, Md, to pay restitution of $369,580.80 to the victim. The sentence was imposed late on May 7, 2013, and the amount of restitution was announced today.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Assistant Attorney General for the Department of Justice Civil Rights Division Roy L. Austin, Jr.; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

“Alfred and Gloria Edwards compelled the victim to work for them for a decade for little or no salary,” said U.S. Attorney Rod J. Rosenstein. “They were able to maintain control over the victim by bringing her into the United States under false pretenses, holding her passport and arranging for a sham marriage.”

According to their plea agreements and testimony presented at their sentencing, in October 1998, the couple arranged for the victim to enter the United States from the Philippines under false pretenses. Gloria Edwards paid $5,000 to cover the costs of the woman’s entry into the United States, including payment to another individual to secure the woman’s visa under false pretenses. The Edwards’ knew that the woman entered the United States without disclosing the true purpose of her visit, or that she would be residing at the Edwards’ residence. The woman arrived in the U.S. in May 1999. Gloria Edwards drove the woman to the Edwards’ home in Upper Marlboro, where the woman primarily resided until she left the residence in August 2009.

The woman provided low cost labor to the Edwards as a domestic servant and provided care for Gloria Edwards’ mother. According to testimony at the sentencing hearing, the Edwards’ took the woman’s passport and made the woman sign a contract stating that she would have to pay the Edwards’ $20,000 if she were to leave their service, so that they could replace her.

The Edwards’ admitted that during the more than 10 years that the woman was in the United States, they took steps to fraudulently obtain permanent resident status for the woman, including arranging a sham marriage.

Prior to sentencing the Edwards’ paid $6,716.20 to satisfy the disputed amount relating to allegations that they misappropriated funds.

United States Attorney Rod J. Rosenstein praised the Baltimore Division of the FBI for its work in the investigation. Mr. Rosenstein and Mr. Austin thanked Assistant U.S. Attorney Kristi N. O’Malley and Trial Attorney Cindy Chung of the Civil Rights Division’s Human Trafficking Prosecution Unit, who prosecuted the case.

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

Baltimore, Maryland - A federal jury today convicted Jeremy Naughton, a/k/a “Jerms Black,” age 32, of Brooklyn, New York, on charges related to sex trafficking, including transporting individuals to engage in prostitution, and using a gun during the conspiracy to commit sex trafficking.

The jury verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief J. Thomas Manger of the Montgomery County Police Department.

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

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

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

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

Naughton faces a maximum sentence of life in prison for conspiring to commit sex trafficking; a minimum of 15 years and a maximum of life in prison for each of four counts of sex trafficking; a maximum of 10 years in prison on each of six counts of transporting an individual to engage in prostitution; seven years in prison, consecutive to any other sentence, for possession of a firearm in furtherance of a crime of violence. U.S. District Judge J. Frederick Motz has scheduled sentencing for August 15, 2013 at 9:30 a.m.

Charles Anderson, a/k/a “Chuck Corners,” a/k/a “Yowzer,” age 26, of Brooklyn, New York, previously pleaded guilty to conspiracy to commit sex trafficking and is scheduled to be sentenced on June 14, 2013 at 2:15 p.m.

The case was investigated by the Maryland Child Exploitation Task Force, with assistance from the Maryland Human Trafficking Task Force, which was formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members of both task forces include federal, state and local law enforcement. The Maryland Human Trafficking Task Force also includes victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.

United States Attorney Rod J. Rosenstein commended the FBI’s Baltimore, New York, and Las Vegas, Nevada offices and the Montgomery County Police Department for their work in the investigation and thanked the Montgomery County State’s Attorney’s Office, the Kings County (Brooklyn, NY) District Attorney’s Office, the Department of Homeland Security and the New York City Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Mark W. Crooks and Paul E. Budlow, who are prosecuting the case.

Baltimore, Maryland - Anthony Maurice Cottle, age 23, of Owings Mills, Maryland, pleaded guilty today to sexual exploitation of a minor to produced child pornography and to possession of child pornography.

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

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

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

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

Cottle faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for production of child pornography; and a maximum of 10 years in prison for possession of child pornography. U.S. District Judge Ellen L. Hollander has scheduled sentencing for July 18, 2013, at 2:00 p.m.

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

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

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

Baltimore, Maryland – A federal grand jury has indicted 18 alleged members of the Howard County Bloods gang on federal racketeering charges and charged three other defendants and two of the alleged Bloods gang members, with conspiracy to distribute drugs.

The indictment and a search warrant affidavit were unsealed today upon the arrests of 15 defendants and the execution of 25 search warrants. Five defendants were already in custody. Approximately 200 agents and officers assisted in today’s arrests and search warrants. The indictment was returned on May 7, 2013.

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

“I am confident that ATF’s successful execution of more than 40 federal arrest and search warrants made a significant impact on violent crime in our Maryland communities,” said Special Agent in Charge Steven L. Gerido of the ATF - Baltimore Field Division. “ATF continues to work with its federal, state, and local law enforcement partners in order to bring violent criminals to justice.”

Howard County State’s Attorney Dario Broccolino stated, “Today’s indictments show this office, along with the Howard County Police Department, will use every tool at our disposal to continue to make Howard County safe. We are appreciative of the cooperation and leadership of our federal partners in this effort.”

“The indictment unsealed today shows that no community is immune to gang and drug activity, but it also demonstrates our commitment to ridding our neighborhoods of this criminal element,” said Howard County Police Chief William J. McMahon. “That’s why I have made our participation in this task force a priority and I am grateful to all our partners. Gang members who commit crimes should know that they will not be tolerated in Howard County or throughout Maryland.”

The indictment alleges that 18 of the defendants were members or associates of the Bloods, a national criminal street gang with members operating in and around Howard County, Maryland. The Bloods are divided into “sets,” each identified or affiliated with a certain street, neighborhood or area. Court documents allege that the defendants include members of more than one Blood “set.” Bloods are identified by: the color red, worn by Bloods members; a rivalry with the Crips gang; and particular gang symbols, including distinctive tattoos, such as a dog paw or five-pointed star and hand signs.

The indictment charges that from 2010 to the present, the Howard County Bloods gang members conspired to engage in criminal activity. The Bloods committed acts of violence both within the gang, to maintain discipline, and against rival gangs. Participation in criminal activity by a member, particularly violent acts directed at rival gangs or as directed by the gang leadership, increased the respect accorded to that member, resulted in that member maintaining or increasing his position in the gang, and could result in a promotion to a leadership position.

The indictment alleges that the defendants and other members and associates of the Bloods maintained and shared firearms for use in criminal activity by fellow gang members. The defendants and other Bloods members and associates allegedly distributed drugs, including marijuana and oxycodone (Percocet), codeine, and MDMA (Ecstasy), and used the proceeds of those drug transactions to help finance the gang’s illegal activities. The affidavit filed in support of search warrants executed today reveals telephone calls intercepted during the investigation in which the defendants discuss assaults, robberies, burglaries, home invasions, and drug trafficking that the defendants and other members allegedly committed in order to generate proceeds, and to obtain drugs to support the gang. Finally, the indictment alleges, and intercepted telephone calls indicate, that the Bloods provided financial support, such as reloadable debit cards, to incarcerated gang members.

The following defendants are charged in the racketeering conspiracy:

• Ryan Gladden, a/k/a "Fats," age 25, of Baltimore;
• Anthony Preston, a/k/a "40," and "Tone," age 26, of Randallstown, Maryland;
• Giovanni Wright, a/k/a "G," age 20, of Elkridge, Maryland;
• Heather Carter, a/k/a "hunnilynn," age 29, of Columbia, Maryland
• Kyle Austin, a/k/a "Fowdy," age 21, of Baltimore;
• James Bieryla, a/k/a "Brea," and "Braze," age 21, of Ellicott City, Maryland;
• Russell Canty, a/k/a "Rek," age 20, of Baltimore;
• Van Albert Carroll, Jr., a/k/a "Kool-Aid," age 19, of Ellicott City;
• Russell Chesson, a/k/a "Black," age 30, of Washington, D.C.;
• Corey Conaway, a/k/a "KC," age 30, of Columbia;
• Adrian Freeman, a/k/a "Sleep," age 23, of Laurel, Maryland;
• Kevin Jarrell, a/k/a "K-Dog," 24, of College Park, Maryland;
• Michael Dominique Johnson, a/k/a "Ace", age 19, of Columbia;
• Faisal Lelo Mapangala, a/k/a "Pistol," age 21, of Jessup, Maryland;
• Christopher Lloyd McGann, age 21, of Columbia;
• Kenneth Ragan-Armstrong, a/k/a "Keezy," age 22, of Savage, Maryland;
• David Jerome Robertson; age 22, of Columbia; and
• Bamba Omar Saine, age 22, of Columbia.
  

Three other defendants are charged in narcotics conspiracies:

• Wendy Farhat, age 38, of Gaithersburg, Maryland;
• Anthony Louis Jones, age 26, of Columbia; and
• Troy Fowler, age 23, of Laurel.
  

The indictment alleges that beginning in January 2013, Farhat, alleged Bloods member Anthony Preston, and Jones conspired to distribute marijuana, oxycodone, and Ecstasy. Jones is still being sought.

In a separate conspiracy, the indictment alleges that beginning in 2013, alleged Bloods member Giovanni Wright conspired with Troy Fowler to distribute marijuana, codeine and Ecstasy.

Each of the 18 defendants charged in the racketeering conspiracy faces a maximum sentence of 20 years in prison; and each of the five defendants charged in narcotics conspiracies faces a maximum sentence of 20 years in prison.

Initial appearances for many of the defendants are taking place today in federal 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 Rosenstein commended the 200 federal, state and local law enforcement officers led by the ATF, who worked together to execute the search and arrest warrants today.

Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who are prosecuting the case.

Baltimore, Maryland – Crystal Barner, age 28, and Maureen Brown Little, age 39, both of Baltimore, pleaded guilty today to a scheme in which the conspirators stole wallets from women’s purses, removed the cash, credit cards and driver’s licenses and used the credit cards to make purchases at nearby stores.

The guilty pleas were 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; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.

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

Barner and Little, who each participated in the scheme until her arrest in 2012, received stolen credit cards from the leader. The conspirators took the cards to nearby retail stores and used each card until it began to be declined. The conspirators purchased items for their personal use, as well as gift cards or high end merchandise that the leader of the scheme would direct them to buy and would then resell. Barner and Little engaged in the scheme on a regular basis, knew that the credit cards were stolen and knew that other members of the conspiracy were conducting fraudulent transactions as well.

During the course of the conspiracy, Barner and Little obtained goods, services and extensions of credit of between $30,000 and $70,000, and caused losses to or used the identities of between 10 and 50 financial institutions, businesses and individuals.

The defendants each face a maximum sentence of 30 years in prison for bank fraud conspiracy and a mandatory sentence of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Barner on August 2, 2013 and for Little on July 26, 2013.

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

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

Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Lynn Carol Williams, age 56, of Middle River, Maryland today to six months in prison, followed by six months of home detention with electronic monitoring as part of three years of supervised release, for wire fraud in connection with a scheme to misuse the Freestate Challenge Academy corporate purchasing card, causing losses of more than $107,000. Freestate Challenge Academy is a Maryland National Guard program located at Aberdeen Proving Ground. Judge Bennett also ordered Williams to pay restitution of $107,493.

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 Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office and Chief Chip Honan of the Aberdeen Proving Ground Police Department.

According to her plea agreement, from October 2007, through February 2011, Williams worked as an administrative aide at Freestate Challenge Academy, located at Aberdeen Proving Ground. Williams was authorized to use the Academy’s corporate credit card to make purchases for the Academy, and was required to prepare a monthly expense report, which included the purchasing card billing statement, original receipts, copies of the approved requisition forms, and a log of activity on the purchasing card. Once her supervisor approved the expense report, it was forwarded to the State of Maryland Military Department, which paid the account balance on the corporate purchasing card.

Williams admitted that from February 2008, through October 2010, she used the corporate credit card to buy gift cards and to purchase items over the internet for her personal use. For example, on May 18, 2010, Williams used the corporate credit card to purchase six gift cards, which she then used to pay for two airline tickets for her and a friend to travel to Los Angeles, California. To conceal her fraud, Williams prepared false logs of the card activity and used her work computer to prepare fictitious receipts, to give the impression she was using the card to make legitimate purchases on behalf of the program, such as for office supplies, snacks for program participants and other legitimate items.

United States Attorney Rod J. Rosenstein praised the FBI, Defense Criminal Investigative Service and Aberdeen Proving Ground Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Samuel Sterling, age 35, 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 Hollander enhanced Sterling’s sentence upon finding that he is an armed career criminal based on three previous convictions for a drug offense and violent crime.

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

According to his plea agreement, on April 9, 2012 Baltimore police detectives saw Sterling and an individual standing on a corner near the intersection of LaFayette and Port Streets in Baltimore, conducting what appeared to be a hand-to-hand drug transaction. When the detectives approached, Sterling ran away, throwing a gun to the ground. A short time later Sterling was taken into custody. A .32 caliber semi-automatic pistol and orange topped vials containing cocaine were subsequently seized. Sterling had previously been convicted of a felony and was prohibited from possessing a gun.

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

Baltimore, Maryland - Kenneth Williams, age 64, of Baltimore, and Raymond Sadler, age 61, of Middle River, Maryland, both U.S. Marine Corps veterans, pleaded guilty today to fraudulently obtaining veterans benefits. Veterans Sandra Tyree, age 64, of Rosedale, Maryland; Kenneth Webster, age 67, of Pasadena, Maryland; Paul Heard, age 64, of Baltimore; and John Bratcher, age 54, of Conowingo, Maryland pleaded guilty on Monday, April 29, 2013, to the same charge.

The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kim R. Lampkins of the Department of Veterans Affairs Office of Inspector General.

“Like all government agencies that award benefits based upon a sworn certification that the claimant deserves them, the Veterans Administration is vulnerable to abuse by dishonest people,”said U.S. Attorney Rod J. Rosenstein. “The defendants cheated the government of hundreds of thousands of dollars by falsely representing that they were suffering from medical disabilities as a result of their military service.”

U.S. Army veteran David Clark, age 68, of Hydes, Maryland, the former Deputy Chief of Veterans Claims in the Maryland Department of Veterans Affairs, has been indicted in connection with the scheme to fraudulently obtain over $1.4 million in veterans benefits. As the Deputy Chief for Veterans Claims, Clark’s duties included submitting claims and documentation on behalf of veterans in Maryland who appointed the MDVA to represent them in obtaining federal benefits from the Department of Veterans Affairs (VA). The indictment alleges that Clark fraudulently obtained VA compensation for himself, and others, in exchange for cash. According to the indictment, Clark claimed that he, co-defendants, and others, had been exposed to Agent Orange during the Vietnam War and had subsequently developed diabetes. In support of these claims, the indictment alleges that Clark submitted fraudulent documentation, including fake letters from physicians purportedly treating the veterans, which made statements that entitled each claimant to a retroactive lump-sum payment and increased the amount of compensation the VA paid the claimant. The indictment alleges that Clark created counterfeit versions of Defense Department Form 215 (DD215) for himself, several co-defendants and others, which falsely stated that they had served in combat in Vietnam. These documents were submitted to the VA to provide false evidence that they qualified for compensation benefits for diabetes.

Clark is also charged with submitting certifications to the Maryland State Department of Assessments and Taxation stating that some of his veteran co-schemers were entitled to a property tax waiver from the State of Maryland due to a100 percent service-connected disability.

Williams admitted that in 2006, he agreed to pay Clark to submit a false claim to the VA on Williams’ behalf for diabetes purportedly arising from military service during the Vietnam War. Williams received a one-time lump disability payment from the VA in 2006 of $6,000, from which he paid Clark $3,000. Thereafter, Williams received monthly payments from the VA until October 2012, for a total of $42,567 in benefits that he was not entitled to receive.

According to their guilty pleas: from 2003 to October 2012, Tyree, a U.S. Air Force veteran and a former employee of the U.S. Department of Veterans Affairs, received a total of $56,304 in benefits, and Webster, a U.S. Marine Corps veteran and former AMTRAK police officer, fraudulently received a total of $181,476 in benefits; from 2004 to October 2012, Sadler fraudulently received a total of $82,201 in benefits; and from 2006 to 2012, Heard, a U.S. Navy veteran, received a total of $58,060 in benefits to which he was not entitled. Neither Tyree nor Webster ever served in Vietnam, but they admitted that Clark submitted false service records to make it appear as if they had. Additionally, Heard admitted that he obtained a property tax waiver by having Clark submit false certification related to Heard’s purported disability. Heard fraudulently received tax waivers totaling $15,677 between 2006 and 2012.

Finally, according to his plea agreement, Bratcher, served in the U.S. Air Force from 1975 to 1980, stationed in Germany and the United States. Bratcher admitted that Clark submitted documents to the VA on Bratcher’s behalf falsely claiming compensation for diabetes, including a letter purported to be from his doctor. Bratcher had never seen this doctor and never served in Vietnam. Bratcher paid Clark between $3,000 to $5,000 to fraudulently obtain a total of $70,912 in VA benefits from 2003 to October 2012.

The total loss involving these six defendants, including the loss from the property tax evasion, is $507,197. The defendants will be required to forfeit all of these proceeds of the scheme.

The defendants each face a maximum sentence of 20 years in prison for wire fraud and a $250,000 fine. U.S. District Judge Catherine C. Blake scheduled sentencing for Williams and Sadler on August 2, 2013. Judge Blake set the sentencing for Bratcher, Heard and Tyree on July 12, 2013, and for Webster on August 26, 2013.

The indictment alleges that the VA benefit fraud loss as a result of the scheme is $1,151,219 and the loss from the property tax evasion is $255,555, for a total loss of $1,407,134.

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

Today's announcement is part of efforts underway by President Obama=s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s 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 VA Office of Inspector General for its work in the investigation and thanked Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.

Greenbelt, Maryland - Two former Special Agents with the U.S. Department of Commerce, Office of Inspector General, Rachel Ondrik, age 35, of Frederick, Maryland, and Kirk Yamatani, age 38, of Ashburn, Virginia, pleaded guilty today to submitting false claims for relocation expenses. Ondrik and Yamatani resigned their positions with the Department of Commerce on March 29, 2013, as required by their plea agreements.

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 Todd Zinser, Inspector General for the U.S. Department of Commerce (DOC).

“Today’s announcement is the result of significant efforts by the U.S. Attorney’s Office, the FBI and my office to hold law enforcement agents accountable for years of criminal misconduct,” said Inspector General Todd Zinser of the U.S. Department of Commerce. “In addition to the fraud perpetrated on the U.S. taxpayers, these now former employees also retaliated by carrying out a destructive campaign of disparagement and false allegations against the Office of Inspector General (OIG).” Mr. Zinser added, “I commend the U.S. Attorney’s Office and the FBI for their diligent efforts and perseverance in conducting this investigation.”

According to their plea agreements, in 2009, Ondrik and Yamatani, transferred from the DOC OIG’s Atlanta, Georgia office to Washington, D.C. Ondrik and Yamatani were authorized relocation benefits, including a househunting trip, en route travel, and temporary quarters living expenses. Emails between Ondrik and Yamatani show that both agents were aware of the rules governing their relocations and reimbursements for related expenses, yet both attempted to secure payment from the DOC in amounts significantly exceeding what was authorized and submitted claims for relocation related trips they did not take.

For example, Ondrik and Yamatani claimed $4,058.75 and $3,589, respectively for househunting trips, when in fact, they did not make a househunting trip during the time claimed. Ondrik and Yamatini each also falsely claimed more than $1,500 for travel to their new duty station and falsely claimed reimbursement for temporary quarters living expenses in an amount that was approximately three times what they were authorized. In all, Ondrik and Yamatani each submitted at least three false vouchers seeking reimbursement for $39,563.25 and $36,305.57, respectively. When Ondrik and Yamatani’s claims for reimbursement were denied as being over what the travel regulations allowed, Ondrik and Yamatani persisted in their claims. On several occasions between 2009 and 2011, Ondrik and Yamatani reaffirmed the earlier false statements in their vouchers and made false statements regarding the circumstances of their claims for reimbursement.

Between June 2009 and February 2011, Ondrik and Yamatani also committed time and attendance fraud against DOC OIG, claiming to have worked hours that they did not actually work. The loss to the government attributable to each defendant’s conduct was approximately $14,000.

The defendants and the government have agreed that if the Court accepts the plea agreement Ondrik and Yamatani will each be sentenced to a term of probation and ordered to pay a fine of $28,000. In addition, each defendant will be required to pay $14,000 in restitution to the government. U.S. Magistrate Judge Charles B. Day has scheduled sentencing for June 19, 2013 at 2:30 p.m.

United States Attorney Rod J. Rosenstein praised the FBI and DOC OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Adam K. Ake and Robert K. Hur, who are prosecuting the case.

Greenbelt, Maryland - A federal grand jury today indicted Mercy Coffie-Joseph, a/k/a Mercy A. Coffie, age 40, of Landover, Maryland, on charges of wire fraud and money laundering in connection with a scheme to embezzle over $453,000 from her employer. She was also charged with making a false statement in a passport application, using a passport obtained through a false statement and aggravated identity theft.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service.

According to the 10 count indictment, from May 2010 through February 15, 2013, Joseph was employed by Systems Assessment & Research, Inc. (SAR), where she had the authority to make electronic payments to contractors on SAR’s behalf. The indictment alleges that during the time of her employment, Joseph allegedly stole $453,125.52 from her employer by initiating funds transfers from SAR bank accounts to bank accounts she owned and/or controlled. The indictment alleges that Joseph laundered the money, using the stolen funds to draw two cashier’s checks for $40,000 and $50,000, respectively, to purchase a house in Ghana.

The indictment also alleges that Joseph used the name and date of birth of another individual, without the person’s knowledge or permission, to apply for and receive a United States passport, which Joseph then used to travel to Ghana.

The indictment seeks forfeiture of the proceeds of the wire fraud, including $453,125.52 in cash, as well as property discovered at Joseph’s home during the execution of a search warrant on April 15, 2013, including a video camera worth approximately $10,000, a Gucci handbag purchased for approximately $885, diamond earrings and necklace, a Movado watch, and computers.

Joseph faces a maximum sentence of 20 years in prison for each count of wire fraud and money laundering; a maximum of 10 years in prison for making a false statement on a passport application; and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft.

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

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

United States Attorney Rod J. Rosenstein thanked the FBI and U.S. Department of State’s Diplomatic Security Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Thomas P. Windom and Robert K. Hur, who are prosecuting the case.

Baltimore, Maryland - The growing role of the internet has dramatically enhanced the opportunities for criminals around the world to sell products that do not belong to them, depriving the legitimate owners of any profit. April 26th is the 13th Annual World Intellectual Property Day, designated to increase public awareness about the role of intellectual property rights in promoting innovation and creativity. Intellectual property theft – whether involving counterfeit medicines, network hardware, pirated content or trade secrets – threatens our nation’s economy, can endanger public health and safety, and can even undermine our national security.

The Maryland U.S. Attorney’s Office works with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and other federal, state and local partners to enforce intellectual property rights. Some of the highlights from the past year involving Maryland cases are:

Trafficking in Counterfeit Goods

In January 2013, Liang Lin, pleaded guilty to trafficking in counterfeit goods. Lin owned and operated two shops on the boardwalk in Ocean City, Maryland, where he sold counterfeit merchandise, including purses, handbags, shirts, jewelry perfume, hats, and shoes that bore trademarks such as Michael Kors, Nike, Monster, Coach, Gucci, Versace, Vera Wang, Louis Vuitton and Channel. Law enforcement made several seizures of counterfeit trademarked merchandise from Lin and his stores. The retail value of the counterfeit trademarked merchandise seized from and sold by Lin is between $200,000 and $400,000. The estimated retail value of the counterfeit merchandise, based on what Lin was selling the infringing counterfeit items for, is $153,585. Lin is scheduled for sentencing on July 10, 2013 at 9:30 a.m.

Jerold Lee Sharoff has been indicted for conspiring to, and trafficking in counterfeit goods, and counterfeit labels. Sharoff operated Beachwear Outlet and Surf Beachwear, both on Atlantic Avenue in Ocean City, where the indictment alleges that he sold counterfeit trademarked merchandise. Sharoff also allegedly stored counterfeit goods at a warehouse located in Ocean City. Further, the indictment alleges that Sharoff and his co-conspirators manufactured counterfeit t-shirts by applying heat transfers bearing counterfeit trademarks to t-shirts using heat presses. Sharoff is scheduled to go to trial on October 21, 2013.

Several other defendants have pleaded guilty to trafficking in trademarked counterfeit goods, such as Nike, Coach, Gucci, Versace, Louis Vuitton, Chanel, Michael Kors, Jimmy Choo, Tory Burch, Juicy, Prada, Christian Dior, Ed Hardy, Burberry, and Dolce & Gabbana, with losses estimated at between $10,000 and $30,000. Keith Jackson pleaded guilty to selling counterfeit purses, handbags and watches. He was arrested three times for selling counterfeit goods before being charged federally. He is scheduled to be sentenced on June 12, 2013 at 1:00 p.m. Co-defendants Philip Swaby and Yoncra Robinson pleaded guilty to operating a store in Baltimore called Fashion Trendz, where they sold counterfeit purses, watches, jewelry, glasses, wallets and scarves. They are scheduled to be sentenced on June 5, 2013 at 3:00 p.m. Tidiane Ba was sentenced to eight months in prison and ordered to pay $1,000 in restitution, and Baba Toure was sentenced to one year probation, after they pleaded guilty to selling counterfeit purses, handbags, shoes, watches, hats and other items by luxury manufacturers at locations around Baltimore, including at the Patapsco Flea Market. They rented storage units to store counterfeit trademarked merchandise received from suppliers in New York. HSI agents seized counterfeit goods from the defendants on several occasions during the course of the investigation. Charges against three co-defendants are pending.

Copyright Infringement

Naveed Sheikh, age 32, of Baltimore, pleaded guilty to conspiring to and infringing copyrights by illegally reproducing and distributing over 1000 copyrighted commercial software programs, with a value of over $4 million. Sheikh created multiple websites through which the infringing software was sold. Sheikh did not report the income from the copyright infringement scheme on his tax returns. As part of his plea agreement, Sheikh will be required to forfeit $4 million. Sentencing is scheduled for May 15, 2013 at 3:00 p.m.

Website Seizures

In 2012, the U.S. Attorney’s Office, working with HSI-led National Intellectual Property Rights Coordination Center (IPR Center) and HSI Baltimore special agents, seized and shut down websites selling counterfeit items.

For example, in October 2012, nearly 700 U.S. based websites selling trademarked counterfeit pharmaceutical drugs were seized and shut down. The drugs being offered for sale on the websites included anti-cancer medications, drugs to treat depression and dementia, drugs to reduce the risk of heart attack and stroke, weight loss and food supplements, and erectile dysfunction pills. Analyses of trademarked counterfeit pharmaceutical drugs purchased from the websites revealed that the drugs were generally shipped from outside the U.S, and were not authentic, nor approved by the Food and Drug Administration for sale in the U.S. The operation, known as Bitter Pill, was part of an international initiative that spanned 100 countries and confiscated over 3 million doses of counterfeit medications worth approximately $10.5 million.

In June 2012, two domain names and three PayPal accounts were seized in connection with a scheme to sell fraudulent store and rewards coupons. The Sderclub.com and its related domain name, ccccpn.com, offered online sales of store and rewards coupons, also known as “rewards checks” from Staples, Inc. Website operators created compromised and fraudulent coupons using coupon codes legitimately issued by Staples for use by Staples Rewards customers. The fraudulent coupons purchased from sderclub.com or ccccpn.com expired within a couple of days in order to be used by the purchaser before the legitimate Staples customer, to whom the coupon was issued, redeemed it. From January 13, 2009 through May 15, 2012, over 102,553 transactions pertaining to the sale of fraudulent store and/or rewards coupons occurred on the three seized PayPal accounts, each of which was created by an individual residing in China.

These cases are part of the efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to http://www.justice.gov/dag/iptaskforce/.

HSI manages the IPR Center in Washington, one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 20 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the HSI-led IPR Center, visit www.IPRCenter.gov.

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Branch Sparrow, age 31, of Baltimore, Maryland, today to 150 months in prison followed by five years of supervised release for armed robbery.

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

According to Sparrow's plea agreement, on August 26, 2011, Sparrow and co-defendant Allen Benny robbed a bar in the 3600 block of Fleet Street in Baltimore. Sparrow was armed with a 7.62 caliber pistol. Upon entering the bar, Sparrow brandished the gun at employees and customers of the bar, threatening them with violence, while Benny stole approximately $800 from the cash register. The two fled the bar, but were seen a short while later by police officers responding to the robbery. As the officers approached, they saw Sparrow discard a gun in a nearby trash can. Officers recovered the gun and arrested Sparrow and Benny. The officers recovered $800 from Benny’s pants pocket.

Sparrow admitted that on August 25th, he also committed an armed robbery of a convenience store in the 4800 block of O’Donnell Street in Baltimore, brandishing a gun at the store employee and stealing an unknown amount of cash from the store’s cash register. Sparrow also attempted to rob a store in the 5800 block of Pulaski Highway on August 13th, again brandishing a gun at a store employee and demanding money from the cash register. Rather than open the register, the store employee fled and Sparrow left the store.

Benny, age 47, also of Baltimore, previously pleaded guilty and was sentenced to four years in prison.

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

Baltimore, Maryland - A day after her trial began in federal court, Susan A. Pratt, age 47, of Crofton, Maryland, pleaded guilty on April 23, 2013 to receipt of unauthorized payments as a government employee.

The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge M. Elise Chawaga, Fraud Detection Office, U.S. Department of Justice Office of the Inspector General.

Pratt was a supervisory traffic management specialist in the Bureau of Prisons (BOP) Relocation Services section, located in Annapolis Junction, Maryland. Relocation Services is responsible for paying the relocation expenses of BOP employees when they are reassigned to another duty station. Pratt was responsible for providing relocating BOP employees with a list of approved movers. After the employee selected the carrier, Pratt referred the move to agents of the carrier. Pratt later signed the government bills of lading, which became the agreement between BOP and the carrier/agent for the move.

According to her plea agreement, from 2007 to 2008, Pratt caused moves for employees who chose Mayflower as their carrier to be sent to a Mayflower agent – Klavuhn Moving & Storage. In January 2006 and December 2007, the sales representative for Klavuhn Moving & Storage provided two gift cards to Pratt for a salon and spa, in the amounts of $1,007 and $790, and Pratt accepted and used the gift cards, which were significantly more than the $50 in gifts that government employees are allowed to receive annually from individuals with whom they do business. Her receiving the gift cards also served to supplement her government salary and inappropriately compensated her for her work as an employee of the BOP.

Pratt also received free moving services from two moving companies in December 2007 and May 2010.

Pratt faces a maximum sentence of one year in prison and a $100,000 fine. U.S. District Judge Ellen L. Hollander scheduled sentencing for June 25, 2013 at 3:00 p.m.

United States Attorney Rod J. Rosenstein praised the U.S. Department of Justice Office of Inspector General for its work in the investigation and thanked Assistant United States Attorneys Joyce K. McDonald and Special Assistant U.S. Attorneys Sean Marlaire and Matthew W. Lunder, assigned from the Antitrust Division of the U.S. Department of Justice, who are prosecuting the case.

Nine Defendants Operated a Document Mill in the 200 Block of South Broadway in Baltimore and Sold Thousands of Fraudulent Government Identification Documents

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Roberto Morales-Perez, a/k/a “Piza,” age 27, of Baltimore to 6 years in prison, followed by three years of supervised release for conspiring to a operate a document mill in the 200 block of South Broadway in Baltimore (the “Broadway Territory”), and selling fraudulent government identification documents manufactured as part of the conspiracy.

On April 23, 2013, Judge Quarles sentenced the brother of Morales-Perez, Ivan Altamirano-Perez, a/k/a “Elmer,” age 33, also of Baltimore, to 97 months in prison, followed by three years of supervised for conspiracy to commit fraud, fraud and misuse of immigration documents, social security fraud, and identification document fraud, in the same scheme.

Moralez-Perez and Altamirano-Perez are Mexican nationals in the country illegally and face deportation upon the completion of their sentences.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.

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

According to their plea agreements and other court documents, responsibility for manufacturing identity documents – including permanent resident cards and social security cards - rotated among various individuals. From June 2008 through May 2010, Morales-Perez and Altamirano-Perez received the income from manufacturing the identity documents. Beginning in May 2010 and continuing until their arrests, the Perez brothers shared the territory and income with Miguel Reyes-Ontiveros (collectively, the Operators). The location of the manufacturing operation changed frequently to avoid detection.

In addition to manufacturing the documents, the Operators sold the documents themselves or through salesmen. The defendants used a group of at least 10 individuals to sell and distribute the fake identity documents. The documents were offered for sale and distributed in and around the 200 block of South Broadway in Baltimore.

According to their plea agreements, the salesmen solicited individuals in the Broadway territory to purchase the fake identification documents, either in person or by distributing business cards. The salesman would negotiate a price with the buyer, usually between $130 and $160, and obtain a picture and the information which the buyer wanted on the identification card. The salesman would then call in the order to the Operator who was working that week. The completed identity document would subsequently be provided to the salesman to be sold to the buyer.

The defendants manufactured and sold 9,990 fraudulent identification documents for which they received approximately $1.68 million.

All nine defendants have pleaded guilty in this case. Miguel Reyes-Ontiveros, age 42, of Baltimore, one of the document mill operators, was previously sentenced to 57 months in prison. All of the defendants are in the U.S. illegally and face deportation upon the completion of their sentences.

A defendant in a related case, Victor Lopez Escamilla, was convicted by a jury of manufacturing and trafficking in counterfeit identity document, social security number cards, and immigration identity documents and was sentenced to 97 months in prison.

Anyone who has information on this type of fraud may contact ICE via its toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or by visiting www.ice.gov/tips.

United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Social Security Administration - Office of Inspector General for their work in the investigation, and thanked the U.S. State Department Diplomatic Security Service - Washington Field Office; the Maryland Motor Vehicle Administration - Investigation and Security Services Division; and the Baltimore County Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Tamera L. Fine and Judson T. Mihok, who prosecuted the case.

Baltimore, Maryland –U.S. District Judge William D. Quarles Jr. sentenced Emil Moldovan, age 40, of Frederick, Maryland, today to 10 years in prison followed by lifetime supervised release for possessing child pornography. Judge Quarles also ordered that upon his release from prison, Moldovan must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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

According to his plea agreement, on June 28, 2011 an undercover internet investigation identified an image of child pornography being downloaded from a computer at Moldovan’s address.  A search warrant was executed at Moldovan’s residence and law enforcement seized computers and storage media containing over 600 videos and images of child pornography. The depictions included images of children under 12 engaged in sexual conduct, including sadistic conduct and other depictions of violence.

Moldovan stated that he had been downloading child pornography and since his internet service was too expensive, he had cancelled it and was connecting to the internet via an open wireless connection he located in his neighborhood. 

Moldovan had previously been convicted in January 2007 in Frederick County Circuit Court of distributing and promoting child pornography.

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

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Tracey Betters, age 21, of Baltimore, Maryland, today to 135 months in prison followed by five years of supervised release for conspiracy to possess with the intent to distribute five kilograms or more of cocaine.

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

According to their plea agreements, in May 2012, Tracey Betters, his brother Blake Betters, and Brandon Harris, were introduced to an undercover Bureau of Alcohol, Tobacco and Firearms (ATF) agent who proposed robbing a large scale drug trafficker of multiple kilograms of narcotics. The Betters brothers and Harris agreed to commit the robbery and to resell the stolen narcotics to customers in the Baltimore area.

On June 14, 2012, Tracey and Blake Betters, Harris and three co-conspirators met with the undercover agent to make their final preparations to commit the robbery. Tracey and Blake Betters, Harris and their co-conspirators were armed, and they all expected the weapons to be used to commit the robbery. After confirming that they were ready to rob the stash house, the Betters’, Harris and their co-conspirators followed the agent to a location in Baltimore where they believed they would be given the location of the robbery. En route to the final meeting location, Tracey Betters and his co-conspirators discussed their willingness to kill the stash house guards as well as the undercover agent, who they planned to rob of his share of the stolen cocaine. As the arrest team approached, the Betters and Harris fled, but were quickly apprehended and arrested.

Co-defendants Blake Betters, age 23, and Brandon Harris, age 22, both of Baltimore were each previously sentenced to 10 years in prison for their roles in the conspiracy.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs 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.

Baltimore, Maryland - A  federal grand jury returned a racketeering indictment charging 25 individuals, including 13 correctional officers with the Maryland Department of Public Safety and Correctional Services, for conspiring to run operations of the Black Guerilla Family (BGF) gang inside correctional facilities.  All 25 defendants also are charged with conspiracy to distribute and possession with intent to distribute drugs; and 20 of the defendants are charged with money laundering conspiracy.  

The indictment and a detailed affidavit were unsealed today upon the arrests of the defendants and the execution of 15 search warrants.  Approximately 170 agents and officers assisted in today's arrests and search warrants.  The indictment was returned on April 2, 2013.  One defendant was killed in a robbery several hours before the indictment was filed.  The defendants are identified in Attachment A.

The indictment arose from the efforts of the Maryland Prison Task Force, a group of local, state and federal stakeholders that met regularly for more than two years and generated recommendations to reform prison procedures.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore Police Commissioner Anthony W. Batts; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; and Chief Mark A. Magaw of the Prince George's County Police Department.

U.S. Attorney Rosenstein also recognized the efforts of the other members of the Maryland Prison Task Force in this investigation and prosecution, including: Baltimore City State's Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.

"Correctional officers were in bed with BGF inmates, in violation of the first principle of prison management," said U.S. Attorney Rod J. Rosenstein. "Preventing prison corruption requires intensive screening at prison entrances and punishment for employees who consort with inmates or bring cell phones and drugs into correctional facilities."

"This investigation revealed the pervasive nature of prison corruption in Baltimore City's Detention Centers," said FBI Special Agent in Charge Stephen E. Vogt.  "Such corruption causes the FBI to divert crucial investigative resources away from addressing violence on the streets of Baltimore. In this case, the inmates literally took over "the asylum," and the detention centers became safe havens for the BGF.  Such a situation cannot be tolerated. Law enforcement should not have to concern itself with criminal subjects who have already been arrested and relegated to detention centers." 

"Ninety-nine percent of our Correctional Officers do their jobs with integrity, honesty and respect," said Secretary Gary Maynard of the Maryland Department of Public Safety and Correctional Services.  "Today's indictment, along with those in the past, show that our Department will not stand idly by and let a few bad actors affect the security of our institutions. Nor will we allow them to impugn the reputation of the men and women who come to work every day and go about their jobs honorably. Those who would break the law should know we will always work tirelessly with our federal, state and local partners to root out corruption."

"Today's multi-jurisdictional takedown of suspected BGF gang members and orchestrators who infiltrated the criminal justice system is another example of the Baltimore Police Department's relentless focus on targeting the malignant gang organizations that plague our communities," said Police Commissioner Anthony Batts. "Thanks to the hard working detectives, federal agents and prosecutors who worked behind the scenes to build these cases. Our continued pledge to the people of Baltimore is that we will leverage the full capacity of our state and federal partnerships to identify those responsible for violence and bring them to justice."

The 10 men and 15 women charged in the indictment are alleged to be members or associates of the BGF, a gang active in prisons throughout the United States.  According to the indictment, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, especially the Baltimore Central Booking Intake Center, the Women's Detention Center, which houses many men, and in the Jail Industries Building.  The indictment alleges that since at least 2009, BGF members and associates in BCDC and related prison facilities engaged in criminal activities, including drug trafficking; robbery; assault; extortion; bribery; witness retaliation; money laundering; and obstruction of justice.

BGF members and associates allegedly bribed correctional officers at BCDC and related prison facilities to smuggle drugs, cell phones and other contraband.  Correctional officers arranged favored treatment and  privileges for imprisoned BGF gang members, and officers thwarted interdiction and law enforcement efforts against BGF inmates.  BGF members and associates allegedly had long-term sexual relationships with several correctional officers and impregnated them.

BGF leaders allegedly used contraband cell phones to order contraband.  Co-conspirators delivered contraband to corrupt correctional officers who smuggled the items into the prisons.  Correctional officers often arranged payment for the contraband.   Some gang dues and drug profits were used to support activities of BGF street organizations outside the prisons.

The charging documents allege that correctional officers were able to bring contraband directly into the prisons through the main entrances.  Inside the prisons, BGF was able to control contraband smuggling because BGF gang members were designated as "working men." Working men are inmates who are paid to assist management and are free to move about the facility.

Green Dot cash debit cards were allegedly used by inmates to pay BGF for smuggled contraband and used by BGF to transfer criminal proceeds.  Luxury automobiles were among the purchases made by BGF with Green Dot cards.

According to the indictment, members and associates followed directions from the ranking BGF members in BCDC, especially inmate Tavon White.  On January, 5, 2013, White explained in a  phone call:

"This is my jail.  You understand that?  I'm dead serious....   I make every final call in this jail, ... and nothing go past me, everything come to me....  Any of my brothers that deal with anybody, it's gonna come to me.  You see what I am saying?  Everything come to me.  Everything.  Before a mother-f-----  hit a n----- in the mouth, guess what they do, they gotta run it through me.  I tell them whether it's a go ahead, and they can do it or whether they hold back.  Before a mother-f----- stab somebody, they gotta run it through me....  Anything that get done must go through me."

Tavon White summarized his position in a conversation with correctional officer Adrena Rice on February 11, 2013:

"I told them worker men that they had to step down off the worker men spots or they was getting hit.... I hold the highest seat you can get...  My word is law..., so if I told any mother-f------ body they had to do this, hit a police, do this, kill a mother-f-----, do anything, it got to get done.  Period."

White allegedly used contraband cell phones to discuss BGF activities inside BCDC, such as the collection of fees and taxes, to request information about inmates, to hear grievances from other BGF inmates, and to coordinate his contraband smuggling operation. White and other gang members developed sexual relationships with officers in order to gain influence over them.

White allegedly had long-term sexual relationships inside BCDC with four correctional officers, Jennifer Owens, Katera Stevenson, Chania Brooks and Tiffany Linder, impregnating each of the  four officers at least once.  Owens had "Tavon" tattooed on her neck and Stevenson had "Tavon" tattooed on her wrist.  All four officers allegedly help smuggle contraband into BCDC and related facilities.  White allegedly gave Owens a diamond ring and provided luxury automobiles to Owens, Stevenson and Brooks.  The indictment includes many overt acts in furtherance of the racketeering enterprise.  For example, in November 2012, correctional officer Jasmin Jones allegedly stood guard outside a closet in BCDC so that correctional officer Kimberly Dennis and inmate Derius Duncan could have sex.  Corrupt officers also warned BGF inmates about law enforcement operations.  For example, Brooks and Linder allegedly notified White when they learned about upcoming canine scans and jail cell searches.  The affidavit specifies two occasions in which warning calls to White were intercepted: December 21, 2012 (from Brooks), and January 6, 2013 (from Linder). White then used his cell phone to spread the word to other inmates.

On January 6, 2013, White allegedly said:

 "I just got a message (from Officer Tiffany Linder) saying that they was going to pull a shake down (prison search) tonight.  Let me call all these dudes in my phone and let them know."

The U.S. Attorney expressed appreciation to Secretary Maynard and select members of his senior staff who confidentially arranged for 30 trusted correctional officers from outside Baltimore to join with federal agents and conduct surprise searches of BGF members and their jail cells on February 14, 2013, resulting in the discovery of important evidence.

The indictment seeks the forfeiture of $500,000 and other proceeds of the enterprise, including luxury automobiles.

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

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

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

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

ATTACHMENT A

The following defendants are charged in the indictment unsealed today.

Inmates:

Tavon White, a/k/a Bulldog and Tay, age 36, of Baltimore; Jamar Anderson, a/k/a Hammer and Hamma Head, age 26, of Baltimore; Derius Duncan, age 26, of Baltimore; Steven Loney, a/k/a Stevie, age 24, of Baltimore; Jermaine McFadden, a/k/a Maine, age 24, of Baltimore; Kenneth Parham, age 23, of Baltimore; and
Joseph Young, a/k/a Monster, age 30, of Baltimore.

Correctional officers:

Antonia Allison, age 27, of Baltimore; Ebonee Braswell, age 26, of Baltimore; Chania Brooks, age 27, of Baltimore; Kimberly Dennis, age 26, of Baltimore; Jasmin Jones, a/k/a J.J., age 24, of Baltimore; Taryn Kirkland, age 23, of Baltimore; Katrina LaPrade, a/k/a Katrina Lyons, age 31, of Baltimore; Tiffany Linder, age 27, of Baltimore; Vivian Matthews, age 25, of Essex, Maryland; Jennifer Owens, a/k/a O and J.O., age 31, of Randallstown; Adrena Rice, age 25, of Baltimore; Katera Stevenson, a/k/a KK, age 24, of Baltimore; and
Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie.

Outside suppliers:

Tyesha Mayo, age 29, of Baltimore; Teshawn Pinder, age 24, of Baltimore; Tyrone Thompson, a/k/a Henry, age 36, of Baltimore; Ralph Timmons, Jr., a/k/a Boosa, age 34, of Baltimore (deceased); and
James Yarborough, a/k/a J.Y., age 26, of Baltimore

 

Greenbelt, Maryland – Larry Poole, age 50, of Laurel, Maryland pleaded guilty to receipt of child pornography.

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

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

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

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

Laurel police and the FBI executed a search warrant, seized Poole’s cell phone and computer, and discovered approximately six videos and 120 images of child pornography.

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

Poole and the government have agreed that if the Court accepts the plea agreement Poole will be sentenced to 15 years in prison.  Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for June 24, 2013, at 10:00 a.m.

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 Laurel Police Department and FBI for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.

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

Baltimore, Maryland – A federal jury convicted German de Jesus Ventura, age 35, a citizen of El Salvador and an illegal alien residing in Capitol Heights, Maryland of conspiring to transport and entice females to travel interstate for prostitution; transporting females for prostitution; enticing females to travel interstate for prostitution; sex trafficking by force, fraud and coercion; and possessing a gun in furtherance of sex trafficking. The jury also convicted co-defendant Kevin Garcia Fuertes, a/k/a Kerlin Esquivel-Feuntes, age 25, a citizen of Honduras and an illegal alien residing in Annapolis, Maryland, and Richmond, Virginia, of the conspiracy and sex trafficking charges.

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

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

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

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

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

Ventura and Fuentes face a maximum sentence of five years in prison for the conspiracy count and a mandatory minimum of 15 years in prison to a maximum of life in prison for the sex trafficking count.  In addition, Ventura faces a maximum of life in prison for possessing a gun in furtherance of sex trafficking and 10 years in prison for the transporting individuals to engage in prostitution and enticement counts.  U.S. District Judge William D. Quarles, Jr. scheduled sentencing for July 24, 2013 at 1:00 p.m.

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

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

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

Falsified Home Buyers’ Information to Generate Fraudulent Loan Applications 
in Order to Collect Commissions, Origination and Broker’s Fees

Greenbelt, Maryland - Emeka Udeze, age 38, of Bowie, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with two separate mortgage fraud schemes which resulted in over $2,013,478 of actual losses to mortgage lenders.

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 his plea, Udeze was a licensed mortgage broker who worked at various companies, including Newgate Mortgage, owned by co-defendant Shola Risikat Balogun, and EWA Mortgage. Udeze also registered a Maryland company called E&T Consulting, Inc., which he claimed was established to provide general services, among other things.

Udeze admitted that in both schemes, he submitted fraudulent mortgage loan applications for buyers, inflating the buyer’s income and creating bogus employment information in an effort to qualify these individuals for loans that they otherwise were unqualified to secure. In some cases, no mortgage payments were made and the property went swiftly into default. In other cases, the borrowers attempted to make mortgage payments for a period of time until they could no longer make payments.

In the first scheme, from at least 2006 through at least December 2008, Udeze, Balogun and others contacted individuals who wished to purchase homes. The buyers, who typically had moderate to low incomes, provided the conspirators with accurate income and employment information. Udeze and others then submitted fraudulent loan applications on behalf of the buyers, inflated the buyer’s income and created bogus employment information in an effort to secure the loan. Udeze, Balogun, and others profited from these fraudulent transactions by collecting origination fees, commissions, yield spread premiums and broker’s fees from each loan that closed.

In a separate scheme, from May 2009 to January 2010, Udeze, co-defendant Niesha Williams, and others, arranged for individuals to buy and sell real estate so they could improperly obtain money from the transactions. Udeze, Williams and others submitted fraudulent loan applications, created multiple versions of settlement statements to deceive lenders, lien holders, buyers and sellers; and arranged for proceeds from mortgage transactions to be disbursed to shell companies created by Udeze and others in order to disguise that the money was really for their benefit. Co-conspirators also failed to make required disbursements of settlement funds to pre-existing lien holders, funneling the money instead to themselves.

For example, Udeze made arrangements for an individual, C.H., to purchase 4853 Brookstone Terrace, Unit 29, Bowie, Maryland 20720 from an individual with the initials D.H. Udeze also had a personal relationship with C.H., who trusted him. Udeze admitted that he prepared and sent a fraudulent loan application to the lender, which included false statements about C.H.’s employment, income, her bank accounts, and the bank account balances, so that C.H. could obtain a loan of approximately $250,000 and purchase the property for $255,000. Udeze and Williams prepared a false HUD-1 Settlement Statement for C.H. and the lender, which falsely represented that the purchase price of the property was $255,000. Udeze knew that Williams had prepared a second HUD-1 Settlement Statement for D.H., which listed a sales price of $200,000. The difference between the loan amount and the true sales price was $50,000 in extra cash at settlement. A total of $31,000 was sent from the title company’s escrow account to E&T Consulting, Inc., for Udeze’s benefit and Williams received $10,000 from the sale. These payments were not listed on the HUD-1 Settlement Statement.

As part of his plea agreement, Udeze will be required to pay restitution and forfeit $2,013,478, the amount of actual losses suffered by the mortgage lenders as the result of the at least 20 transactions Udeke brokered in furtherance of the fraud schemes.

Udeze faces a maximum penalty of 30 years in prison and a $1 million fine on each of the two counts of conspiracy to commit wire fraud. U.S. District Judge Peter J. Messitte did not set a date for sentencing.

Shola Risikat Balogun, age 46, of Upper Marlboro 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.

Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Tavares Bowie, age 35, of Frederick, Maryland, today to six years in prison followed by five years of supervised release for carrying a firearm during a drug trafficking crime.  Bowie also pleaded guilty today.

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; Frederick County State’s Attorney J. Charles Smith; and Frederick Police Chief Thomas J. Ledwell.

According to Bowie's plea agreement, on September 3, 2012, Frederick Police officers received a report of a man with a gun at a bar in the area of 325 Market Street.  Officers saw Bowie, who matched the description of the person described in the 911 call, walking on Market Street, carrying a small handgun in his left hand.  Officers recovered the gun, a .380 caliber handgun, and during a subsequent search of Bowie recovered a baggie containing 22 individually wrapped pieces of crack cocaine for street distribution from his pants pocket.

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

Conspired to Obtain 16 Fraudulent Loans Resulting in Losses of More Than $2.4 Million

Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced real estate appraiser David C. Christian, age 63, of Catonsville, Maryland today to 15 months in prison, followed by three years of supervised release, for conspiracy to commit wire fraud. Judge Bredar also ordered Christian to pay restitution of $2,440,804.

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; Inspector General Steve A. Linick of the Federal Housing Finance Agency; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

According to his guilty plea, Christian appraised a number of properties on behalf of purchasers who were seeking financing through Worthington Mortgage Group, LLC, a mortgage brokerage company controlled by Joshua Goldberg, operating out of an office on Gough Street in Baltimore. Christian admitted that from April 2004 to April 2008, at Goldberg’s request, he prepared at least 16 fraudulent appraisals for $4,001,950 in loans originated at the mortgage company. Christian falsified the appraisals by using fake photos and descriptions of the properties, misrepresenting the condition of the properties, and used inappropriate comparable properties. The total loss for the 16 loans amounted to $2,440,804, including $814,730, to the Federal Home Loan Mortgage Corporation (Freddie Mac), and $757,293 to the Federal National Mortgage Association (Fannie Mae). Fannie Mae and Freddie Mac are government sponsored federally chartered corporations that either buy mortgages on the secondary market for their own accounts or arrange to pool the mortgages and sell them as mortgage backed securities to investors on the open market.

In March and June 2007, Christian used Goldberg as the mortgage broker to refinance property that he and his wife owned in Catonsville. Christian submitted false appraisals that inflated the property value and caused another appraiser to sign the documents to avoid the obvious conflict of performing an appraisal on his own property. With Christian’s knowledge, Goldberg processed the loan in Christian’s wife’s name, falsifying her income and employment, as well as the balance in the couple’s bank account and misrepresented other information. The loans were funded by another mortgage company, and Christian and his wife eventually defaulted on the loan, resulting in a loss of nearly $140,000.

Joshua S. Goldberg was indicted on related charges earlier this year. He is believed to be a fugitive.

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

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

United States Attorney Rod J. Rosenstein commended the FBI, Federal Housing Finance Agency - Office of Inspector General, and U.S. Postal Inspection Service. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who prosecuted the case.

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

Baltimore, Maryland – Chester William Bigelow, age 58, of Woodbine, Maryland, pleaded guilty today to conspiracy to commit mail and wire fraud relating to the failure to provide contracted-for services to clients of Bigelow’s company, RMS Direct, Inc., resulting in losses of over $628,500.

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

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

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

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

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

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

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

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

As part of his plea agreement, Bigelow will be required to forfeit $628,581.48, representing postage payments made to RMS by its clients, but never paid to the USPS.  In addition, Bigelow will be required to forfeit $13,500, which he withdrew from the RMS bank account and was used by his family members to purchase a car for their personal use.

Bigelow faces a maximum sentence of 20 years in prison and a fine of $250,000.  U.S. District Judge Catherine C. Blake scheduled sentencing for July 30, 2013 at 9:00 a.m.

Stephen Reid, age 50, of Frederick, Maryland, previously pleaded guilty to the same charge and is scheduled to be sentenced on July 12, 2013 at 9:00 a.m.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Sean C. Marlaire, who is prosecuting the case.