Four Employees at Aberdeen Proving Ground Indicted for Alleged Theft of Government Property

June 8, 2012

The Federal Bureau of Investigation (FBI) on June 8, 2012 released the following:

“BALTIMORE— A federal grand jury has returned two indictments charging four civilians employed at Aberdeen Proving Ground (APG) with theft of government property, specifically, aluminum and copper to which the defendants had access as part of their jobs. The indictments were returned on June 7, 2012. One of the defendants, Timothy Bittner, was arrested at work today.

Timothy J. Bittner, age 52, of Bel Air, Maryland; Robert W. Reynolds, age 29 of Felton, Pennsylvania; and Steven M. Coale, age 33, of North East, Maryland, are charged in the first indictment with conspiracy to steal and theft of government property, specifically, over $87,000 worth of copper wire.

Ronald Phillips Baker, Sr., age 62, of Havre de Grace, Maryland, is charged in the second indictment with theft of government property, specifically, over 2,700 pounds of aluminum worth over $110,000 on one occasion, and a total of more than 27,000 pounds.

The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service-Mid-Atlantic Field Office; the Directorate of Emergency Services, U.S. Army Garrison, Aberdeen Proving Ground; and Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation.

“The indictments should send a strong message that this type of egregious behavior—allegations of theft while supposedly working on the government clock, to include even stripping active copper wire from an APG building—will not be tolerated,” said Robert Craig, Special Agent in Charge for the DCIS, Mid-Atlantic Field Office.

According to their indictment, Bittner, Reynolds, and Coale were employed as electricians at APG’s Directorate of Public Works. From March through November 2011, the defendants allegedly used their access to the buildings in the Edgewood area of APG and their expertise as electricians to steal copper fixtures and copper wire from government buildings. During work, the defendants allegedly pulled the wire, including wire in current use, and took the copper and copper wire in their government vehhicles to the APG parking lot, where they transferred the stolen items to their personal cars. The defendants rented space at a storage facility to store the copper and copper wire and bought a stripping machine, which they used to remove the insulation from the copper wire to increase the price. The defendants are alleged to have sold the copper to metal recyclers in Maryland, Pennsylvania, and Delaware as scrap and divided the proceeds, which totaled approximately $87,000.

According to Baker’s two count indictment, Baker operated a patrol boat on the Chesapeake Bay to keep boats away from waters near APG, which were affected by weapons testing. Baker had a security clearance to access the APG boat docks. On April 23, 2012, Baker used his security clearance to access a secure area where he allegedly stole fabricated aluminum outriggers that weighed more than 2,740 pounds and were worth more than $110,000. The indictment further alleges that from September 2010 through April 2012, Baker stole over 27,000 pounds of aluminum.

All four defendants face a maximum sentence of 10 years in prison for theft of government property. Bittner, Reynolds, and Coale also face a maximum of five years in prison for conspiracy to steal government property. An initial appearance has been scheduled today for Bittner at 2:00 p.m. in U.S. District Court in Baltimore. Initial appearances for the remaining defendants are expected to be scheduled next week.

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

United States Attorney Rod J. Rosenstein praised the DCIS, APG’s Directorate of Emergency Services, and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald; Special Assistant United States Attorney David I. Sharfstein, of the U.S. Department of Justice Tax Division; and Special Assistant U.S. Attorney Sean Marlaire, who are prosecuting the cases.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Loan Brokerage Company, Its Owners, and an Associate Indicted for Alleged $37 Million Bank Fraud Conspiracy

November 17, 2011

The Federal Bureau of Investigation on November 16, 2011 released the following:

“BALTIMORE— A federal grand jury has indicted Jade Capital & Investments, LLC, and its owners, brothers Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 41, of Falls Church, Virginia, and Loren Young Park, a/k/a “Loren Yong Park,” and “Yong Park,” age 44, of Vienna, Virginia, on charges connected to a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses alleged to be over $37 million. Nick Park, a/k/a Nochol Park, age 46, of McLean, Virginia, an associate of Joon and Loren Park, but no relation, was also charged in the scheme. The indictment was returned on November 8, 2012 and unsealed today.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; and Small Business Administration Inspector General Peggy E. Gustafson.

“This fraud scheme created untenable risks for the Small Business Administration’s (SBA) guaranteed loan programs and effectively denied opportunities for small businesses deserving access to capital to finance and grow their businesses,” said Small Business Administration Inspector General Peggy E. Gustafson. “The SBA Office of Inspector General will continue to aggressively investigate and seek criminal prosecution or civil remedies when fraud is perpetrated by corrupt borrowers or loan brokers as they attempt to obtain financial assistance through SBA’s guaranteed loan programs. We would like to thank the U.S. Attorney’s Office for its dedicated leadership and professionalism throughout this investigation.”

According to the nine count indictment, Jade Capital was a loan brokerage company operated by Joon and Loren Park and specializing in securing loans for individuals interested in purchasing or refinancing small businesses in the Mid-Atlantic area. According to the indictment, Joon, Loren and Nick Park encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75 percent – 90 percent of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.

The indictment alleges that from February 2005 until October 2011, Joon, Loren, and Nick Park submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients. The indictment alleges that the packages contained fraudulent personal financial statements and/or monthly bank statements which overstated the net worth and equity injection of the borrowers and falsely enhanced the creditworthiness of the borrowers and their businesses.

The indictment alleges that Joon and Loren Park altered copies of the borrowers’ monthly bank statements to fraudulently reflect more money than was actually in the accounts; created false bank statements for accounts that did not exist; and provided some of the financial institutions with misleading summaries of the borrowers’ business experience in order to falsely enhance the borrowers’ ability to manage the business and make the required loan payment.

The indictment further alleges that Joon, Loren and Nick Park and Jade Capital supplied some financial institutions with fraudulent gift letters falsely representing the source of the borrowers’ down payments and equity injections. Also according to the indictment, Joon Park, Loren Park and Jade Capital submitted financial documentation to lenders that misrepresented the equity injection of the principal owners of 51 businesses that had applied for SBA-guaranteed loans. In addition, the defendants charged a loan brokerage fee to both the financial institutions and the borrowers for assembling and submitting loan application packages that resulted in the issuance of SBA-guaranteed loans.

The indictment alleges that Joon Park submitted fraudulent documentation, including a personal financial statement and monthly bank statements in connection with an SBA loan application for a car wash business in which he was the principal owner.

Finally, the indictment seeks forfeiture of $37,852,390, all interest in Jade Capital, the car wash business owned by Joon Park, and other bank accounts and property derived from or constituting the proceeds of the scheme.

The defendants face a maximum sentence of 30 years in prison for the bank fraud conspiracy and for each count of bank fraud. Joon Park and Nick Park had initial appearances today in U.S. District Court in Baltimore and were detained. A detention hearing is scheduled for Joon and Nick Park on Friday, November 18th at 10:30 a.m. Loren Park is being sought.

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

United States Attorney Rod J. Rosenstein thanked the FBI and SBA Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the case.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Kenneth Elliott McDowell, Wendy Hinton, William White, and Devin Jarmal Smith Indicted by a Baltimore, Maryland Federal Grand Jury for an Alleged Identity Theft Scheme

July 15, 2011

The U.S. Attorney’s Office District of Maryland on July 14, 2011 released the following:

“FORMER HOSPITAL EMPLOYEE AND THREE OTHERS INDICTED IN IDENTITY THEFT SCHEME

Stole the Financial and Identifying Information of Hospital Patients and Their Families

Baltimore, Maryland – A federal grand jury has indicted four individuals, including a former employee of the University of Maryland Medical Center (UMMC), in connection with a scheme in which the identifying information of UMMC patients and others was stolen and used to defraud financial institutions. The indictment was returned on July 6, 2011, and unsealed today upon the arrest of the following defendants:

Kenneth Elliott McDowell, age 47;
Wendy Hinton, age 21; and
William White, age 54, all of Baltimore.

The fourth defendant, Devin Jarmal Smith, a/k/a Sean Jones, age 20, also of Baltimore, is still being sought by law enforcement.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Daniel S. Cortez of the U.S. Postal Inspection Service – Washington Division; Baltimore Police Commissioner Frederick H. Bealefeld III; and Christa Phillips, Inspector General of the Housing Authority of Baltimore City.

U.S. Attorney Rod Rosenstein said, “The defendants are charged with preying upon seriously ill hospital patients and their families by using their personal information to access their credit accounts and even to open new credit accounts using their identities. Anyone who finds evidence that their names or credit cards have been used in a fraud scheme should report it to the authorities immediately.”

Postal Inspector in Charge Daniel Cortez said, “This investigation demonstrates the commitment of Postal Inspectors to pursuing identity thieves and others who misuse the U.S. mail for criminal purposes.”

The 17-count indictment alleges that McDowell, a former employee of UMMC, accessed patient files and obtained the personal financial and identity information of patients and other individuals who had agreed to pay for their medical treatment. From July 2009, through June 2011, McDowell then provided that information to his co-conspirators. According to the indictment, the defendants also stole the personal financial and identity information of their own family members and others with whom they came in contact. The indictment alleges that the defendants used the stolen information to open new credit accounts in the identities of the victims and other individuals and to access the existing accounts of the victims.

The indictment alleges that in order to conceal the scheme, the defendants contacted customer service representatives for the various financial institutions, posing as the customers whose information had been stolen, and requested: that the addresses on the customers’ accounts be changed to addresses accessible to the defendants and other members of the conspiracy; that new checks, credit and/or debit cards be issued on the accounts and sent to the new address; and requested information about the compromised accounts.

According to the indictment, the defendants then used the fraudulently obtained checks, debit and credit cards to access the victims’ bank accounts, purchase goods and merchandise, and obtain cash advances, without the victims’ knowledge or permission.

Each of the defendants faces a maximum sentence of 30 years in prison for the conspiracy. Devin Smith also faces 30 years in prison for each of five counts of bank fraud and a mandatory two years in prison, consecutive to any other sentence imposed, for each of five counts of aggravated identity theft. Kenneth McDowell faces a mandatory two years in prison, consecutive to any other sentence imposed, for each of four counts of aggravated identity theft. Wendy Hinton and William White each also face a maximum of 30 years in prison for bank fraud and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. The defendants had an initial appearance in U.S. District Court in Baltimore today and were released under the supervision of U.S. Pretrial Services.

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

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, Baltimore City Police Department and the Housing Authority of Baltimore City – Office of Inspector General for their work and expressed appreciation to the University of Maryland Medical Center for their cooperation and assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who is prosecuting the case.”

To find additional federal criminal news, please read The Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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