Criminal Defense Lawyer Blog

Published on: December 23, 2019

Two Businessmen Indicted For Maryland Wire Fraud

The U.S. Attorney’s Office for the District of Maryland recently announced indictments in two cases against men who ran lucrative businesses in and around Maryland. Both men now face federal charges for wire fraud, which has become one of the main catch-all tools for federal prosecutors in cases involving fraudulent activity. The first indictment was announced on December 19, and involved a 45-year old Carroll County man who now faces up to 20 years in federal prison for multiple felony charges. This defendant is accused of defrauding the government out of up to $2 million through his Frederick County based construction business. The company was tasked with providing repair and maintenance services to several Maryland USPS facilities including local Post Offices. The indictment alleges that the defendant’s company under the direction of the defendant systematically overbilled the federal government for these services, and concealed its use of subcontractors to carry out the scheme. In total the businessman is facing 30 counts of wire fraud, and will face the charges in the Baltimore Federal Courthouse downtown. The indictment was announced by the U.S. Attorney’s Office and the U.S. Postal Service Office of the Inspector General. An initial appearance has been not yet been scheduled, and the case will likely take several months to play out.

In a separate case the U.S. Attorney’s Office announced that a Virginia businessman has been indicted for wire fraud related to a scheme to defraud the U.S. Navy and the State Department by unlawfully selling body armor and other protective gear manufactured in China. The indictment alleges that the businessman accepted contracts to deliver tactical helmets to the Navy and while working with a Navy contract specialist to fulfil the contract fraudulently stated the helmets were being manufactured in Southern Virginia. The government is alleging the helmets were actually manufactured in China, which is not an approved country under the TAA or Trade Agreements Act. Any defense equipment manufactured in China must be separately identified and approved before it can be involved in a business transaction with the government. The government allegedly located a payment made to a Chinese company that manufactures the same exact helmets the business had agreed to sell to the Navy. A United States Magistrate Judge agreed to release man, who is still listed as the founder and CEO of the company, on home detention and a $75,000 bail. This case will proceed at the Greenbelt Federal Courthouse, which handles all cases arising out of the Southern Maryland.

Wire fraud under 18 U.S. Code 1343 is one of the most powerful charging tools utilized by federal prosecutors in part because of its broad definition. The government need only prove that the defendant used an interstate telephone call or electronic communication to further an unlawful scheme. Almost all business these days is conducted using some sort of electronic communication, and it’s hard to find a business that operates exclusively in one state. This makes establishing federal jurisdiction a foregone conclusion if investigators catch wind of any business operating on the wrong side of the law. The wire fraud statute also carries a harsh 20-year maximum penalty, that carries heavy weight as a bargaining chip in order to induce cooperation or a plea.

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Published on: December 17, 2019

D.C Man Sentenced In BW Parkway Vehicular Manslaughter

By Benjamin Herbst

A 24-year old Washington D.C. man was recently sentenced to over 4 years in federal prison followed by 3 years of probation for striking an SUV and killing the driver on the Baltimore-Washington Parkway. According to the plea agreement the man was involved in a collision with a D.C. Metro police vehicle but rather than stop he fled the scene into Maryland via the parkway. Despite being pursued by a Metro police vehicle the young man kept fleeing at a high rate of speed even after one of his tires blew out. He then began to pass slower moving vehicles on the right shoulder and veered over several lanes of traffic at a ramp to Interstate 495. It was at this point that the D.C. man struck a Honda CR-V that was stopped in a painted safety zone between lanes of travel causing it to spin around and eventually roll over on its side.

The plea to one count of involuntary manslaughter took place back in September at the Greenbelt federal courthouse in front of a United States District Judge. It seems from the press release that the man was sentenced under a 18 U.S. Code section 1112, which makes it illegal under federal law to commit manslaughter in the territorial jurisdiction of the United States. Involuntary manslaughter is a felony under federal law, which carries a maximum penalty of 8 years in prison. Manslaughter is defined as the unlawful killing of a human being without malice. This basically means that the defendant did not possess the intent to kill, but by his or her unlawful actions caused the death of another person. Voluntary manslaughter, a 15-year felony, occurs when the defendant kills another person after a sudden quarrel or in the heat of passion. Voluntary manslaughter cases are frequently charged along with murder, as there can be a fine line between the two. Involuntary manslaughter on the other hand occurs when the defendant kills another during the commission of an unlawful act not amounting to a felony, or when the defendant kills another doing committing act without due caution. In this case fleeing the police and leaving the scene of an accident were the acts that caused the accident, which ultimately caused the death of the victim.

The federal government is responsible for maintaining and policing the B-W Parkway, and therefore territorial jurisdiction is satisfied. Typically, the Maryland-National Capital Park Police is the arresting agency that handles cases on the B-W Parkway and other parkways such as the Clara Barton. In criminal cases occurring on the parkways in Maryland law enforcement can choose to charge a defendant under federal law or under any applicable Maryland law. The defendant could have been charged under Title 2 of the Maryland Criminal Code for manslaughter by vehicle or vessel (boats). State law breaks up manslaughter by vehicle or vessel in two categories, with the most serious being with gross negligence. This charge is a felony that carries a 15-year maximum penalty, while the lesser form, criminal negligence, is a misdemeanor with a 3-year maximum penalty.

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Published on: December 9, 2019

Casino Dealer Sentenced To Prison

By Benjamin Herbst

The U.S. Attorney’s Office recently announced that a former dealer at a Maryland casino was sentenced to 18 months in federal prison for his role in a card table scam, which resulted in the casino losing in excess of $1 million. The convicted defendant will be placed on probation after he is released from prison, and ordered to pay restitution totaling $1,046,560. The scam took place at the Baccarat table, where the dealer conspired with players by giving them a glimpse of the cards before they were placed in the shoe to be dealt. The players involved in the conspiracy would then drastically increase their bets when the previously revealed cards were about to be dealt into the game. The government did not state how it caught on to the scam or whether there were any cooperating defendants, but all bets are on camera and large winnings will always be scrutinized by casino security. In this particular case the FBI eventually became involved likely due to the large amount of money that was involved in the conspiracy, and the fact that the scheme took place in more than one county. The defendant admitted that he taught other co-conspirators at a different casino about the scam, and then was paid a percentage of the illegitimate winnings. According to the government to scheme took place from July 2017 to September 2017.

The actual charge the former dealer pled to was conspiracy to transport stolen funds, which is a felony under federal law. The defendant likely would have faced a great deal more than 18 months in prison if he unsuccessfully took his case to trial. Typically when there is a theft or fraud case with a large amount of restitution the judge will take into account that a long prison sentence will negatively impact the defendant’s ability to repay the money to the victim. Some victims will tell the judge their main concern is recovering the stolen money, which usually benefits the defendant. Defendants that are spared a large prison sentence in order to pay restitution may find themselves back before the court on a violation of probation if they do not pay the money. Some judges have reservations about jailing a defendant for failing to pay restitution, but if no effort is made then judges will say they have no choice. The Blog will follow this story and may post another article if there is news from the Greenbelt federal courthouse about any of the co-defendants. The FBI will continue to be involved with fraud cases at the Maryland casinos in order to punish those involved and send a message to future offenders. There are so many new casinos popping up around the country and many can be vulnerable to theft schemes due to inexperienced or improperly trained security staff.

The legalization of casino gambling several years ago has generated hundreds of millions of dollars for the state of Maryland, but there are now numerous criminal cases coming from the numerous casino cases across the state. Maryland Live in Anne Arundel County, MGM in Prince George’s County and the Horseshoe in Baltimore City are the largest and most visited casinos in the state, and also the source of the numerous criminal charges. Casinos take all offenses committed on their property extremely seriously and often have overzealous security staff who are itching to have patrons charged. Benjamin Herbst has represented dozens of defendants charged with crimes at the Maryland casinos, and is available for a free consultation anytime at 410-207-2598. Benjamin has handled casino theft, counterfeit currency, gun possession and trespass charges occurring at the Maryland casinos. He also specializes in federal conspiracy charges, representing out of state defendants, and defendants facing violations of the Maryland Voluntary Exclusion Program.

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Published on: December 3, 2019

Convicted Robber Sentenced To 33 Years

By Benjamin Herbst

Over the summer a federal jury convicted two Washington D.C. men of multiple felonies after they were charged with committing two separate armed robberies in Prince George’s County. This week at the United States District Court in Greenbelt one of the men was sentenced to 33 years in prison followed by 5 years of probation on charges including conspiracy to commit commercial robbery, discharging a firearm during a crime of violence, being a felon in possession of a firearm and interstate transport of a stole vehicle. At least two of these counts carry mandatory minimum sentences of up to 10 years in prison. Since parole has been abolished in the federal justice system the 46-year old defendant will likely be behind bars for close to 30 years. He may be eligible for time off his sentence for good behavior, but it is safe to say that he will not be released until his seventies.

The facts that came to light during the week long trial were about as bad as an armed robbery could get without someone actually being murdered. Assistant U.S. Attorneys proved the man and his co-conspirators entered an auto repair shop brandishing handguns and then bound and gagged one employee and shot the other when he resisted. The employee who was shot suffered life-threatening injuries, and is now paralyzed. Just four days later the men robbed a barbershop in Prince George’s County in the same manner, but this time they were caught after a brief chase that ended in Washington D.C. To make matters worse, the defendant was also recorded on jailhouse phone calls attempting to persuade several different acquaintances to go to the barbershop and pressure witnesses not to testify at trial or before the grand jury. These phone calls were played in court, and resulted in a witness tampering conviction that was almost certainly factored into sentencing.

As we discussed in our previous post about this incident the driver of the stolen getaway vehicle used in the barbershop robbery was not a co-defendant in the trial, which could indicate that he was a cooperating witness. The names of cooperating witnesses will eventually be revealed if they are called to testify at trial, though it is typical for the prosecutors to leave this information out of official press releases. Cooperating witnesses are an essential law enforcement tool, and though they can’t be hidden forever, police and prosecutors will still try to protect them to some degree. The exact terms of cooperation agreements are never announced in open court, though the agreements may be used by defense lawyers during cross examination. Cooperation agreements with the federal government typically contain some sort of sealed supplement that is part of the plea agreement, and when the sealed supplement is read in court only the judge, court staff, law enforcement officers and lawyers are permitted in the courtroom.

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Published on: November 25, 2019

Former Baltimore Mayor Pleads Guilty

By Benjamin Herbst

Rising crime rates, falling population and police and prison corruption have marred Baltimore City for the past few years, but now more than ever it is obvious that lawlessness starts from the top and trickles down. It has been several months since federal agents from the FBI and the IRS raided the former mayor’s home and office, so it came as no surprise that she was eventually charged. Still the news headlines were widespread when the government unsealed an 11 count criminal indictment last week, which was signed by the grand jury on November 14. The U.S. Attorney’s Office announced that the mayor was charged with conspiracy to commit wire fraud, conspiracy to defraud the United States, seven counts of wire fraud, and two counts of tax evasion. One day after the indictment was unsealed the former mayor surrendered to federal law enforcement and then promptly pled guilty at her arraignment. There’s little doubt defense lawyers worked diligently to come to a swift plea agreement in order to avoid further embarrassment to the city in exchange for more favorable treatment when sentencing arrives.

The former mayor’s sentence won’t determined for at least a couple months, as a pre-sentence investigation must be completed first. She is currently being supervised by federal pre-trial services, which means she as avoided incarceration for now. It is hard to imagine that this will be the case after sentencing though, as the breach of trust was massive. According to the plea the former mayor engaged in a criminal course of conduct from at least 2011 until this past spring when law enforcement made their investigation public. The specific allegations are heavily related to the former mayor’s ownership of a publishing company she used to market and sell children’s books she authored. On numerous occasions the former mayor conspired with her former legislative aid to defraud purchasers of the children’s books, including The University of Maryland Medical System (UMMS), which paid a total of $300,000 for 60,000 books. UMMS purchased the books on the condition they would be distributed to Baltimore City Public Schools as part of a community outreach program, but many never made it to public school students. Instead they were kept by the former mayor or double sold by charities that had no knowledge of the scam.

The plea also included admissions that the former mayor used payments from the children’s books to fund her own campaign under the guise of fictitious or straw donors. She used cash or untraceable money orders to conceal the origination of the funds, which totaled over $60,000. Finally, and not surprisingly the former mayor neglected to report any of the fraudulent earnings from the children’s book, and filed multiple false tax returns. In 2016 she reported around $31,000 of income and paid $4,000 in taxes when in reality her income was over $300,000 and her tax liability over $100,000. Of the 11 counts in the indictment, the former mayor ended up pleading guilty to 4, including conspiracy to commit wire fraud, conspiracy to defraud the United States, and two counts of tax evasion. She faces up to 20 years in prison on the first count and 5 years each on the other 3 counts, and will likely learn her fate at a sentencing hearing in the late winter or spring of 2020.

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Published on: November 19, 2019

Marijuana Definition Change Could Lead To Dismissed Charges

By Benjamin Herbst

This past summer the Maryland Governor signed off on a bill that changed the definition of marijuana, and now the impacts of this bill could have a real effect in courtrooms across the state. The bill did not receive much media attention despite the fact that it was marijuana related because the bill was created with the intent to modify agricultural laws rather than continue to reform marijuana policy. House Bill 1123 was signed into law back in April, and went into effect on June 1, 2019. The bill was characterized as agricultural and focused on hemp research and production. It had numerous components, but the main emphasis was to expand hemp production and establish safeguards for assuring that hemp and marijuana remained two separate crops.

In order to separate hemp and marijuana, which is still highly regulated in Maryland and a controlled substance under federal law, the state legislature had to strictly define the meanings of the two crops. Lawmakers came up with a threshold amount of 0.3% THC to separate the two; any cannabis plants with a THC level above 0.3% would be classified as marijuana while anything under would be classified as hemp. In establishing this threshold, lawmakers not only changed the agricultural laws but also were forced to modify the Maryland controlled dangerous substance laws. Under criminal law section 5-101, marijuana does not include hemp for the purpose of criminal prosecution. Hemp as defined in section 14-101 of the agriculture code “means the plant Cannabis sativa L. and any part of that plant, including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta–9–tetrahydrocannabinol concentration that does not exceed 0.3% on a dry weight basis”. This fancy language boils down to the fact that cannabis plants that do not have a THC over 0.3% are not marijuana for the purpose of a criminal prosecution, and the impacts of this clause could be huge.

In all drug crimes cases the state is required to prove beyond a reasonable doubt that the substance that is the basis of the charging document is actually what the police say it is. It is not proof beyond a reasonable doubt for an officer to simply look at a substance and say that it is cocaine, heroin, marijuana etc. The state has to test the substance police take in evidence, and this is traditionally done is by sending it off to the crime lab at the Maryland State Police in Pikesville or the city’s lab in Baltimore. Chemists do their tests and send a lab reports to the prosecutor, which are then introduced into evidence as proof the substance is CDS. But, the kicker is that the crime labs do not test marijuana for THC content, so now there might not be a way for the state to prove beyond a reasonable doubt whether the green vegetable matter police confiscated from your plastic baggie, jar or personal grow room is marijuana or hemp.

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Published on: November 11, 2019

How Do You Appeal A Criminal Case?

By Benjamin Herbst

There are a number of different ways to appeal or modify a criminal case in Maryland, and the rights of a defendant depend on where the case took place and whether it ended in a plea or a trial. All defendants with cases heard in the District Court of Maryland have an absolute right to appeal the outcome within 30 days to the circuit court. This includes criminal cases, traffic citations, peace orders, protective orders and civil cases. The appeal must be filed in writing with the district court clerk, and if the 30^th day falls on a weekend or holiday the next business day is the final day. District court cases that are appealed will be assigned a new case number in the circuit court, and start over form scratch, which is called a de novo appeal. The circuit court judge will not (or is not supposed to) place any weight on the verdict or judgment from the district court in making his or her rulings.

The amount of time it takes for an appeal to be scheduled in circuit court depends on the jurisdiction. It can be as little as a few weeks in some, and a few months in others. During the time between the appeal and the new circuit court date a defendant who was placed on probation is still required to report as directed. If jail time was a part of the sentence, the defendant may still be required to serve unless the sentence is stayed or the defendant posts an appeal bond. The one exception to the automatic appeal rule is cases where probation before judgment is granted and accepted. Defendants who receive PBJ in any case waive their right to appeal to the circuit court, and their case is effectively over once the sentence is announced. The right to an automatic circuit court appeal is the same regardless of whether the case went to trial or the defendant took a plea.

Appealing a Maryland circuit court case is an entirely different animal, and the defendant’s rights depend on whether the case ended in a plea or a trial. A defendant who is found guilty after trial has an automatic right to appeal to the Court of Special Appeals in Annapolis, which is the state’s intermediate appellate court. The notice of appeal must be filed within 30 days at the circuit court clerk’s office, but the actual appellate brief will be filed several months down the road. In order to write an appellate brief the attorney will review transcripts of the entire trial, and then pick out any issues that may have been reversible error. In criminal cases where the defendant pled guilty he or she will not have an automatic right to appeal, but will actually have to ask for permission or leave to appeal from the court. Receiving leave to appeal is very rare, and in most cases will be denied. This should be something to consider when deciding to accept or reject a plea offer.

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Published on: November 4, 2019

Baltimore Business Owner Convicted Of Arson

By Benjamin Herbst

A federal jury recently convicted a Baltimore business owner of multiple felonies for setting fire to his commercial property with the intent to fraudulently reap insurance benefits. The trial took a whopping seven weeks to complete, and now the defendant faces a minimum sentence of 15 years in federal prison. According to evidence presented by the government at trial, back in July of 2015 the business owner began to devise a plan to illegally recoup millions of dollars his company had been losing in the previous few years. The government established a motive by presenting financial records that showed the business lost about $2 million in 2014 and was on pace to lose approximately $3 million in 2015. The government also presented evidence that the defendant defaulted on numerous loans and the company’s debt exceeded total assets by $900,000.

On July 28 of 2015 the government showed that the defendant himself used adhesive tape to defeat security measures at his commercial property so that co-conspirators could enter the building. Just after midnight another person entered the building and disarmed the alarm system by entering the four-digit code, and one hour later a bystander called 911 and reported smoke emanating form the building. The Baltimore City Fire Department responded to the scene but only after fire destroyed an office on the shop floor of the building and damaged the ceiling. On the same calendar day firefighters extinguished the blaze the business owner contacted a public adjusting company to notify them about the fire and request their help with filing an insurance claim. Days after that, the adjusters acting on behalf of the defendant’s company submitted claims for over $20 million and were awarded just over $15 million once all the dust settled.

Law enforcement including the ATF, Baltimore Police and the Maryland State Fire Marshal were never convinced the blaze was caused by an accident or equipment malfunction. They continued to investigate the fire as the insurance company was paying out millions to the business owner, and investigators never took their eyes off the money. It came out in trial that half of the $15 million was used for building restoration and new equipment purchases, but $600,000 was transferred to the defendant’s wife, $98,000 was used to purchase a new Mercedes, $52,000 was used to buy a BMW, $25,000 for a Harley and $35,000 was spent on new jewelry. Although the defendant’s questionable purchases were not direct evidence of his criminal involvement, the government undoubtedly used them to bolster the argument that the defendant’s intentions were never pure. These purchases combined with evidence of the defendant’s presence on the scene and his immediate consultation with insurance adjusters laid the foundation for a case that the defense was unable to crack. A jury at the Baltimore federal courthouse found the business owner guilty of malicious destruction of property by fire, the use of fire to commit a federal felony and two counts of wire fraud. The malicious destruction count carries a five-year mandatory sentence and the use of fire in a felony count carries a consecutive 10-year mandatory sentence. This means that the defendant will serve at least 15 years in prison when he is sentenced at a future hearing in January.

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Published on: October 28, 2019

What Happens If You Leave The Scene Of An Accident?

By Benjamin Herbst

Maryland has numerous laws governing the responsibilities of drivers who are involved in accidents, and understanding these laws can mean the difference between a simple traffic ticket and a serious criminal charge. The main requirement under Maryland law is that all drivers involved in an accident have a duty to remain at the scene, and drivers who are forced to move their vehicles after the accident due to safety reasons must immediately return. Drivers are only allowed to leave the scene after they have complied with section 20-104. This section actually requires drivers to render reasonable assistance to any person injured in the accident, which may include arranging for transportation to the hospital. The requirement to render aid is typically satisfied by calling 911 and waiting for emergency vehicles to arrive. Drivers are also required to give certain information including their name, address and registration of the vehicle they were driving. If feasible a driver may also be required to furnish his or her driver’s license to any person injured in the accident or any owner of property that was damaged in the accident. If nobody is on the scene of the accident other than the one driver, that driver has a duty to report the accident to the nearest authorized police authority. Failure to comply with these requirements is actually a jailable offense under the duty to give information and render aid statute. A driver who does not comply with these requirements may be charged with a number of different offenses, with some even being felony criminal charges.

Leaving the scene of an accident that has only resulted in property damage is still a crime under 20-103 of the Maryland transportation article. If you knock down and sign, clip and damage a concrete barrier or guardrail or give an adjacent car a little love tap you are required to remain on the scene until completing the requirements of 20-104. Any driver that leaves the scene may be prosecuted for an offense that carries up to 60 days in jail and a $500 fine. This offense also carries 8 points upon conviction, which could result in a notice of suspension from the MVA. There are defenses to cases for leaving the scene of an accident, so if you feel you may be charged it is important to contact a lawyer first. Law enforcement will still have to identify you as the driver, as a license plate number is typically not enough to establish that a particular person was driving when the accident occurred.

Leaving the scene of an accident involving injury is treated harshly under Maryland law, and enhanced punishment can occur even if there was not a serious injury. The penalty for leaving the scene of an accident involving injury is up to 1 year in jail and a $3,000 fine. Leaving the scene of an accident involving a death carries a 5-year maximum penalty and a $5,000 fine. These offenses both carry 12 points upon conviction, which will result in driver’s license revocation proceedings being initiated by the MVA. If the driver knew or should have known the accident would cause serious bodily injury and left the scene the state may charge the driver with a 5-year felony. If the driver knew or should have known the accident would cause death and a death occurred the maximum penalty becomes 10 years.

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Published on: October 21, 2019

Prince George’s County Lawmaker Guilty Of Fraud

By Benjamin Herbst

Two weeks ago a lawmaker in the Maryland House of Delegates abruptly resigned from her position, and this past week it became apparent why. According to the U.S. Attorney’s Office the former Prince George’s County lawmaker, who served from 2001 until the present, pled guilty to one count of wire fraud for converting more than $22,000 of campaign money to her personal use. The guilty plea took place in the United States District Court in Greenbelt, and lasted just over 30 minutes. Some of the facts that came to light during the plea hearing included that the former lawmaker had used campaign funds to pay for dental appointments, fast food, hair styling and even a cover for the home’s pool. The charges covered illegal activity from 2015 to 2018, when the former delegate accepted campaign funds from donors who had expected these funds to be used for reelection and maintaining leadership positions with the General Assembly. The funds were accepted by the defendant via a campaign PayPal account and then directly transferred to her personal bank account or withdrawn as cash from ATMs. None of the withdrawals in question were reported to the Maryland State Board of Elections.

The former lawmaker faces up to 20 years in prison wire fraud, but she will likely face less than 3 years of active incarceration. The sentencing guidelines call for an active jail sentence of 8 to 33 months, and the defense could argue for home detention or even probation. Regardless of whether the defendant serves active jail time, she will almost certainly be on supervised probation and will be a convicted felon for the rest of her life. As part of the plea the former lawmaker will also have to pay back $22,565.03 in restitution to the citizens or organizations that contributed to her campaign. The defendant is currently out on pre-trial supervision after being released on her own recognizance, and will be able to spend the holidays with her family in advance of the January sentencing hearing.

The FBI was the main law enforcement agency responsible for the investigation that led to federal prosecution of the former Prince George’s County Delegate, though it was not made public how the lawmaker arrived on the agency’s radar. It did however come to light that the defendant was not a first offender when it came to campaign finance rules. Over the course of her career she was cited more than ten times for bookkeeping errors in campaign finance reports, and even fined $2,000. She was referred to the Office of the State Prosecutor in 2016, and this state agency could have easily passed her case off to the FBI.

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