Around the Block: The Colorful Past, Controversial Present, and Uncertain Future of Baltimore’s Red-Light District

By Van Smith

Published in City Paper, Feb. 2, 2000

Our values have changed,” Joanne Attman proclaims.

Attman and her husband, Ely Attman, own the building at 425 E. Baltimore St., and are thus the landlords of Club Harem, a strip club in Baltimore’s red-light district, the Block. “There’s nothing wrong with sex,” she says in a telephone interview. “There just isn’t. It’s an adult thing, and as long as it stays an adult thing, that’s all that’s important.

“You know,” she continues, “we’ve come a long way, and people do not view sex as a bad thing if they can do all that’s on the Internet, do what they do on TV, and on the phone. So, as far as the Block, the Block is benign.”

The Attmans, like most of the owners of Block property and businesses, do not live in Baltimore City. Their abode, most recently assessed at more than $225,000, is in a new development in Pikesville. Being a nice, suburban couple, the Attmans probably don’t often come down to the Block and look around; as Joanne Attman says, “We don’t really pay any attention to it.” Like most landlords, they just get a check from their tenants and make the necessary improvements to their property. End of story.

But if the Attmans were paying more attention to what’s happening on the Block, they’d know that its problems have little to do with the morality of sex among adults. The area is besieged by negative publicity over drug dealing, prostitution, employment of underage dancers, and the threatening atmosphere some civic and business leaders contend the Block creates in the middle of the downtown business district.

If they were paying attention, the Attmans would know that last May four pipe bombs were found and defused in the Diamond Lounge, a few doors down from their Block property. They’d know that a club next door to their building, the Circus Bar, was ordered to sell its liquor license last October after a former doorman, convicted of dealing drugs from the club, told the Baltimore City Board of License Commissioners (aka the liquor board) that he thought it was “part of my duties” to sell cocaine from the bar. They’d know that in July 1998, the 408 Club was cited by the liquor board for employing two 16-year-old Baltimore County high-school students as dancers and using three rooms above the bar for prostitution. And they’d know that these incidents are just the tip of the iceberg. (For a fuller accounting of Block property owners and the records of businesses there, see “What’s Around the Block”.)

But Joanne Attman doesn’t want to hear about it. “That’s ludicrous,” she says of the idea that a Block employee considered drug dealing part of his job. “You can go anywhere and buy drugs anywhere in the city. You can buy them at school. They’re being sold everywhere. So to focus in on the Block is absolutely ludicrous.” She is adamant that the action on the Block is essentially harmless: “You know, most of the people down there are there to make a living and that’s what they’re doing–a clean living.” With that, the interview ends abruptly.
The way people make their living on the Block isn’t causing ripples just in City Hall and law-enforcement circles; it is fast becoming a divisive issue within the red-light district’s business community itself. Today, two separate entities–Baltimore Entertainment Center Inc. (BEC) and Downtown Entertainment Inc.–claim to represent the interests of Block businesses. Both groups, at least on the face of it, share the same goal: to clean up the Block’s act so that its businesses can work with city leaders to promote the district as a destination for tourists and conventioneers. But their respective members don’t see eye to eye on how to achieve that aim, according to Block sources.

Today, Baltimore Entertainment Center is effectively defunct, although it is still recognized by many on the Block as an ongoing concern. BEC was formed in February 1997 and until a few months ago was represented by Baltimore attorney Claude Edward Hitchcock, a confidant of former Mayor Kurt Schmoke. At the time the group was launched, Hitchcock said it represented a “new breed of owner and operator on the Block” that is “trying to become better citizens and better neighbors.” Hitchcock resigned as BEC’s attorney in September; the following month, the group forfeited its right to operate in Maryland due to its failure to file property-tax returns–a rectifiable situation, should the taxes be brought up to date. (Attempts to speak with Frank Boston III, reportedly BEC’s new attorney, were unsuccessful.)

Days after Hitchcock left BEC, Downtown Entertainment was formed, with Hitchcock as its lawyer and Jacob “Jack” Gresser–the owner of the Gayety Building, a Block landmark, and another former BEC guiding force–as president. Gresser says Downtown Entertainment wants “to go in the direction of a partnership with the city, in respect of getting involved in the conventions that are coming to town, where the city will advertise these particular businesses in their convention brochures and throw the business our way, if possible.” Ultimately, Gresser says, he wants the Block to become like Bourbon Street, New Orleans’ famous playground of vice. So far, eight to 10 of the Block’s two dozen adult-entertainment establishments have joined the new group, he says.

Gresser says the splintering of BEC occurred over the course of last year, culminating about six months ago–“That’s when we decided to go our different ways.” While he’s loath to speak for those who haven’t joined Downtown Entertainment, he says there are “two distinct, different views of how people want to run their business down on the Block. Everybody runs their business differently. Everyone has a responsibility to run their business properly. I would just like to see everyone get together and go in one direction. We really don’t need this diversification.”

That “diversification” has created to some bad blood. “This has not been a walk in the park,” Hitchcock says. “I mean, I’ve gotten calls here in the office on my voice mail, you know, the use of the ‘N’ word, and ‘Who the fuck do you think you are?’ and all. One guy who was a part of [Downtown Entertainment] got his windows bashed in–both in his business and his car–and his family got threatening phone calls over the telephone at home. I’ve gotten it all. I mean, this has not been easy.”

Neither Gresser nor Hitchcock will go into detail about the causes of the split. Other sources familiar with the situation, who spoke on condition of anonymity, are less cagey–they claim the split is between clubs that host prostitution and clubs that don’t.

“Apparently the difference is private rooms, no private rooms,” says one source. “If there are no private rooms, then you obviously can’t have prostitution on the site.” The clubs without private rooms are the ones moving into Downtown Entertainment, he says.

Sources say the new group also wants police officers currently on the Block beat rotated out. “The policemen around there have been around there for years and have a bunch of friendships,” one source says. “If you are there too long, familiarity can breed bad things.”

Hitchcock says Downtown Entertainment has “scheduled an appointment to talk with the new police commissioner [Ronald Daniel] to basically introduce this new organization to him, to give him a feel for what we intend to do, how we intend to run the businesses, [and] to affirm or reaffirm with him our willingness to be cooperative with the Baltimore City Police Department. In fact, we encourage the police department to be active–fair, but active–on the Block.”

Police spokesperson Robert Weinhold says Daniel “has had conversations with representatives from the Block” and recognizes that they want to make the red-light district as crime-free as possible. “We would expect the efforts of the Block representatives to continue, and that all of the establishments and the citizens who work there will be law-abiding in their business efforts.”

Eventually, Hitchcock says, Downtown Entertainment will seek a meeting with Mayor Martin O’Malley, but it has yet to broach the subject with him. For the time being, the new mayor’s approach to managing the situation on the Block remains a mystery. Despite assurances that he would grant an interview for this article, repeated attempts to set up such a meeting were unsuccessful. O’Malley’s press secretary, Tony White, eventually explained that the mayor has yet to formulate his opinions about the Block district and therefore would rather not discuss it at this time.

“Being the entertainment mogul that he is, he’s thinking about” the Block, White says, but this thinking “hasn’t come to fruition yet.”

It would be a stretch to suggest that contributions to O’Malley’s mayoral campaign last year will have a direct impact on his eventual stance. But several Block interests did pledge support for his candidacy, in all likelihood out of a desire to foster access to and good relations with their potent neighbor in City Hall.

Between July and October of 1999, Block interests donated $6,400 to O’Malley’s cause, according to campaign-finance reports. One of Gresser’s businesses, Custom House News, gave $1,000, as did PP&G, which co-owns the strip club Norma Jean’s and is headed by Pete Koroneos, secretary and treasurer of Downtown Entertainment. The law firm O’Malley worked for before he became mayor gave $2,000 to his campaign, and one of its partners, Joseph Omansky, has long represented Block interests. The remaining $2,400 came from other Block lawyers, owners, liquor licensees, and an accountant.
The Block’s generosity toward politicians is a long-established tradition–probably as old as the Block itself. The district sprang up almost immediately after the Great Baltimore Fire of 1904, with the Gayety Theater (opened in 1906 at its present site at 403 E. Baltimore St.) becoming its first landmark. Initially, penny arcades and vaudeville venues dominated, but after the repeal of Prohibition the area took off as a dense concentration of bars and burlesque houses.

During the World War II years and into the 1950s, the Block’s reputation spread nationally as striptease acts became the main attraction at many of the nightclubs and, as two out-of-town reporters wrote in 1951, “any and all forms of vice are tolerated and protected. There is a price for everything, and it’s not much.”

With all of the fun and money being generated on the Block, heat from law enforcement was turned up. Various congressional inquiries and grand-jury investigations fingered the Block as an organized-crime stronghold in the 1950s and ’60s, a place where the rackets, gambling and prostitution in particular, thrived and fueled corruption and violence. Even during its heyday–so romanticized by a legion of old-time Baltimoreans and local scribes–the Block was a dangerous place that spawned crime sprees and fear and trepidation among hand-wringing city residents.

If the 1960s were bad on the Block from a criminal-justice standpoint, the ’70s were much worse. Julius “The Lord” Salsbury, the acknowledged king of Block rackets, was finally convicted on federal charges in 1969, only to flee the country the following year. (Never brought to justice, he remains a legendary fugitive.) But with the end of Salsbury’s reign–and perhaps because of the destabilizing effect of his absence–came an era of unprecedented violence in the district. When crime fighters did try to put the screws to the Block, they often ended up embarrassing themselves: A 1971 raid by federal agents produced little in the way of convictions and made law-enforcement appear groundlessly zealous in pursuit of justice for Block racketeers.

With downtown’s renewal into a modern entertainment district, however, the Block gained a sense of legitimacy, due largely to rose-colored memories of its former glory and its faded Damon Runyonesque character. Then-Mayor William Donald Schaefer spared the Block from his wide-swinging wrecking ball as he rebuilt downtown, and in 1977 it received a special designation as an entertainment district. But the Block’s salad days were long gone; drugs and sleaziness continued to define its identity into the 1980s and ’90s.

As Schaefer moved from City Hall to the State House, his tolerance for the Block wore down. Late in his second term as governor, he ordered a four-month investigation of crime on the Block that culminated in a January 1994 Maryland State Police raid in which some 500 state troopers descended on the district and shut it down. Initially, the governor and his troopers made great claims–one drug kingpin and three distributors had been nabbed, an arsenal of guns had been confiscated, the back of criminal interests on the Block had been irreparably broken. But attempts to prosecute those arrested fell apart amid allegations of improprieties and faulty techniques among the investigators. Once again, law enforcement was left red-faced by its flawed attack on the tenderloin.

Schaefer’s raid occurred as his mayoral successor, Kurt Schmoke, was in the midst of his own attempt to put the Block out of his misery, by buying it out and relocating businesses. This economic attack failed, however–community leaders around the city feared porn shops and strip clubs would spring up in their backyards. Ultimately, after a flood of contributions to Schmoke’s campaign committee from Block interests in late 1996, a détente was reached. Fronted by the Schmoke-friendly Hitchcock–who had previously represented other downtown business interests that hoped to end the Block once and for all–Block operators received a respite as City Hall promised to await improvements promised by the newly formed Baltimore Entertainment Center.

The city held up its commitment, providing physical improvements such as new brick sidewalks in 1997, but so far the businesses haven’t held up their end of the bargain by substantially cleaning up their acts. If and how O’Malley reacts remains to be seen.

The mayor may still be forming his ideas on the future of the Block, but a new regulatory era is already underway. In November, the city liquor board started enforcing new rules that hold the threat of revocation of adult-entertainment licenses should club employees commit too many violations.

Hitchcock says Downtown Entertainment welcomes the restrictions. “We frankly saw it as tightening of the regulations in a fashion that we all agreed needed to happen,” he says. “We’ve had some very damaging rulings by the liquor board against some of those clubs down there. People are getting the message–you know, you do this stuff and you will lose your livelihood, period, end of story. You may be able to appeal it until it gets to some point of finality, but the liquor board’s not playing about this because they have taken on a responsibility and their credibility is on the line.”

Perhaps even more significant than the new regulations, from a business standpoint, is a January 1999 court ruling that full nudity is legal at adult-entertainment establishments that opened before 1993. The ruling arose when the Spectrum Gentlemen’s Club in East Baltimore appealed a nude-dancing violation and found a loophole in the law, which had been interpreted to require that dancers be partially clothed while performing. The decision was handed down by Circuit Court Judge Richard Rombro, in his last judicial act before retiring from the bench. (Unnoticed at the time was the fact that the judge’s nephew, Stuart Rombro, is an attorney who represents Gresser’s Custom House News.) Regardless, it’s been good for business on the Block.

Hitchcock downplays the ruling’s practical significance. “There’s no real difference,” he says. “I mean, yeah, rather than you put a little star on the nipple, you can take the star off now.” But he acknowledges that Baltimore strip clubs have become a “more marketable and a bigger revenue-generating business because you can basically say it’s nude dancing.”

And a more marketable Block is a boon for Baltimore, says City Council member Nicholas D’Adamo, a Democrat whose 1st District includes the Block and many other adult-entertainment venues.

“Let’s be honest,” asserts D’Adamo, who acknowledges that he patronizes Block establishments now and again. “Is it a plus for the city of Baltimore? I think it is. I think for out-of-towners to come to the city, it could be a stop on their agenda if they’re staying downtown.” He further maintains that Block businesses employ some 1,000 workers and should be recognized as job-providers.

Of the allegations of vice associated with Block clubs, the council member says, “I think the press has blown it out of proportion. Sure, there are problems down there. But I think there are problems in every bar. It’s just a matter of what you consider a problem. So why pick on the Block?

“You show me a person a week’s being killed on the Block, or a person a week’s being stabbed and almost died–you show me numbers like that, we got a problem,” D’Adamo continues. “But goddammit, there’s a lot of streets in this city that have these problems that are a lot worse than the Block. We need to address that first.” And, for the time being, it appears that’s exactly what the city’s going to do.

Bodog Internet Gambling Investigation Leads to Money-Laundering Charges

By Van Smith

Published by City Paper, Oct. 30, 2008

Federal authorities in Maryland have filed money-laundering charges against two men, Edward Courdy and Michael Garone, who have figured in an ongoing investigation into the internet gambling empire Bodog. Both men were described in two forfeiture proceedings earlier this year, which resulted in the seizure of a total of $24 million from numerous bank accounts, as processors of illegal gambling transactions in the United States on behalf of Bodog.

The charges against Courdy and Garone were filed on Sept. 29, though the filings were not publicized and were found yesterday by City Paper on the online federal courts web site, known as PACER.

Courdy is charged with transferring $2,380,273 in April from Dublin, Ireland, to a Nevada State Bank account held by Zaftig Instantly Processed Payments Corporation (ZIP Payments), and then to Maryland and elsewhere, to promote the carrying on of an illegal gambling business [Courdy Info]. Garone is charged with the same general scheme, alleged to have occurred in April 2007, involving the transfer of $1,499,975 from Frankfurt, Germany, to Branch Banking and Trust Bank account in Georgia held by JBL Services, Inc. [Garone Info].

The U.S. Attorney’s Office in Maryland confirms that the two men are not currently in custody on the charges, and that no court dates have been set in the cases. Spokeswoman Marcia Murphy says that the office cannot discuss the matters other than what is contained in the court filings.

The Sept. 29 filing the of Courdy and Garone charges coincides with the date that Courdy and ZIP Payments filed a claim in forfeiture proceedings involving $9,869,283.05, which was seized in July from several bank accounts tied to Courdy. Courdy and ZIP Payments, through their California attorney, Stanley I. Greenberg, are seeking the return of the seized money. Also filing a claim that day was 1st Technology, LLC, which recently won a $46,597,849 Nevada court judgment against Bodog and is seeking to collect part of the money by intervening in the ZIP Payments forfeiture proceeding.

Garone and his company, JBL Services, did not contest the federal forfeiture of $14,200,195.73 in alleged Bodog-related proceeds [Bodog Affadavit $14.2M]. In mid-July, Maryland U.S. District Court Judge Catherine Blake finalized the forfeiture of those funds.

Garone and Courdy could not be reached for comment. Greenberg, Courdy’s attorney in the forfeiture case, did not immediately return a phone call for comment.

The affidavits supporting the forfeiture proceedings describe in great detail the lengthy, convoluted efforts of Internal Revenue Service criminal investigator Randall S. Carrow to bring to light the global movement of money in support of Bodog’s on-line gambling activities. The documents also indicate that the case is being brought in Maryland because on-line gambling via Bodog was conducted by an undercover agent working in Maryland.

Bodog founder Calvin Ayre, a Canadian now living in Antigua, became a world-famous billionaire from online gambling and other entertainment enterprises. He was featured on the cover of Forbes magazine in 2006. Carrow writes in his affidavit that investigative interest in Bodog and Ayre started in 2003, but the passage of a 2006 federal law that strengthened prosecutors’ ability to go after on-line gambling activities kicked a formal investigation into gear.

GoldenCasino.com’s Payment Processor Targeted in Latest On-Line Gambling Seizures in Maryland

By Van Smith

Published by City Paper, Oct. 28, 2009

As the Maryland-based federal probe of on-line gambling continues, the latest move to show up in court records in Baltimore is the seizure of $365,366.69 from two bank accounts in the name of Atrium Financial Group (AFG). According to the affidavit in the case (below), Delaware-based AFG disburses money to on-line gamblers, including those who try their luck using GoldenCasino.com. City Paper has been unable to reach representatives of AFG and GoldenCasino.com for comment.

The AFG seizure—unlike several others reported recently by City Paper—is supported by an affidavit that was not sealed (see Atrium Financial Group affidavit). The 13-page sworn statement by Immigration and Customs Enforcement (ICE) special agent Augusta Ferenec, who is based in New Orleans, La., provides a peek into the complexities of the investigation. Signed on Sept. 4 by U.S. District Court magistrate judge Beth Gesner, the warrant was filed in the court records on Oct. 22.

According to Ferenec’s affidavit, the investigation leading to the AFG seizures dates to July 14, 2008, when Louisiana State Police (LSP) officers opened an “undercover gambling account” with GoldenCasino.Com, and then later requested a payout. The first check–from a Canadian outfit called Interco Finance Corporation (IFC)–bounced. Eventually, a second check came, this one from AFG. Thus, the investigation established that GoldenCasino.com was using both IFC and AFG as payment processors for its on-line gambling patrons. Ferenec explains in the affidavit that a fourth business–Con-Tex Converters, another Canadian firm–entered the picture as investigators followed the global movement of funds.

For instance, an AFG account with Mercantile Bank received wire transfers between Dec. 2008 and Jan. 2009 amounting to more than $1.5 million. The money came from a Con-Tex bank account in Cyprus and a combined Con-Tex/IFC bank account in Canada. During the same timeframe, Ferenec’s affidavit continues, AFG cut 1,473 checks from that account, at least two of which went to people in Maryland. In Aug. 2009, investigators talked to one of the Maryland recipients, who admitted the proceeds had come from gambling.

In all, Ferenec’s affidavit maps out a total of nearly $6.3 million wired internationally by either Con-Tex or IFC to AFG bank accounts in the U.S. The AFG accounts, which the affidavit says have all been closed by the banks due to suspicions that the money was tied to illegal gambling, were held with Mercantile, Sovereign Bank, Wachovia Bank, National City Bank, and TD Bank North. The international wire transfers from Con-Tex and IFC were the sole sources of funds in the AFG accounts, the affidavit explains.

The two AFG bank accounts targeted for seizure are with Fifth Third Bank and Wilmington Savings Fund Society. The Fifth Third account, from which $124,028.88 was seized, received about $3.3 million in wire transfers from Con-Tex and IFC between Dec. 2008 and June 2009, the affidavit explains. Nearly 4,000 checks were cut from the account, totaling about $3.1 million disbursed to people in the U.S. During July and Aug. 2009, 35 of those checks were issued to Marylanders. The amount of money entering AFG’s Wilmington Savings account is not specified in the affidavit, which explains that about 575 checks were cut from the account, one of which was mailed to a Texan who “confirmed to the bank that the check was proceeds of online gambling.”

Ferenec’s affidavit says it’s likely that money will continue to enter the targeted accounts “for a period of time” after the warrants are executed, because those involved “will be unable to promptly stop the flow of funds or inform all of their contacts of this investigation.” Thus, Ferenec requests that the warrant order the banks to allow the deposits to continue, but not any attempted debits, and that “ICE be allowed to periodically remove such funds” during a 21-day period after the warrants are executed.

The Ghost Hand: Maryland Law Enforcers Aim to Take the Pot by Secretly Sitting at the Online Gambling Table

IMG_8071

By Van Smith

Published by City Paper, March 24, 2010

On Dec. 21, 2006, someone in Maryland opened an account with bodog.com, an online gaming site whose customers bet on sports and horse-racing and play poker and casino games on their computers. The same day, that same someone placed two online bets on football games with Bodog. Over the course of 2007, after more wagering, the online gambler requested and received two payout checks from Bodog: one for $1,500 and another for $700.

Mundane as they may seem, the Maryland gambler’s wagers and payouts have had major repercussions in the online-gambling world. That’s because, starting in 2008, the details of that person’s online betting activities were included in meticulous affidavits supporting warrants to seize the contents of bank accounts said to be tied to illegal gambling. The Maryland gambler was actually a special agent working undercover for the U.S. Internal Revenue Service (IRS) Criminal Investigation Division.

Under U.S. law, facilitating transactions tied to online gambling is illegal. Yet, due to the immense popularity among Americans of wagering over the internet, the overseas companies that provide this kind of entertainment continue to seek ways to do business with U.S. customers. In order to pay out winnings to gamblers in this country, they have to hire U.S. companies willing to operate as payment processors–middle-men who take foreign casino companies’ money and disburse it to players when they want to cash out their online gambling accounts. These payment processors are taking a risk that U.S. law enforcement will detect the transactions and seize the money while it’s sitting in the payment processors’ accounts–which is exactly what federal investigators in Maryland, and elsewhere, have been doing–but due to the lucrative nature of the business, both the payment processors and the online-casino companies have been willing to take that gamble.

In the post-Sept. 11 world, the U.S. government has developed a heightened interest in augmenting its ability to track the ways and means of global money-moving. Though the motivation is to protect the world from terrorists by interrupting their finances, this trend also means that financial crimes of all kinds–including the movement of online gambling money into the United States–face a greater risk of detection. In the world of internet wagering, whenever money is sitting in a U.S. bank account, it is exposed to possible seizure by the authorities. And, as investigators’ successes mount, it’s clear they are getting better at it.

IRS criminal investigators in Maryland “opened a formal investigation of Bodog in 2006,” court records state, after having “conducted interviews regarding Bodog.com, Calvin Ayre, and Bodog’s operations in approximately 2003.” Ayre, a Canadian who’s been living in exile for several years now, is the founder of Bodog, which is based in Antigua and has operations in Costa Rica.

Bodog, a 15-year-old company which claims to be the world’s pre-eminent online gambling site and whose operations span the globe, is not the first to be targeted by American law enforcement’s crackdown on internet gambling. That honor goes to Jay Cohen, who in 1998 was indicted in New York along with numerous other defendants for violating the federal Wire Wager Act in running the Antigua-based World Sports Exchange. Cohen fought the charges, saying federal laws prohibiting wire transfers of gambling proceeds do not apply to the internet. He lost and was sentenced to 21 months in prison. Since then, the feds have continued to focus on an industry that, in effect, presents opportunities for people to gamble anywhere and anytime, despite the laws of any particular country or state.

“If you’re in Antigua running a casino, that’s fine,” says Maryland U.S. Attorney Rod Rosenstein. “But if you’re actually operating a casino in someone’s bedroom in Montgomery County over the internet, that’s illegal.” Thus, any proceeds that can be traced to gambling activity that takes place in Maryland–whether it’s actual betting over the internet, or just the arrival of checks in the mailboxes of Maryland gamblers cashing out their online-gambling accounts–could end up seized by Maryland authorities.

Since early 2008, according to federal court records, the ongoing federal investigation of online gambling based in Maryland–which, in addition to the IRS, also involves members of a Department of Homeland Security Immigration and Customs and Enforcement (ICE) task force–has brought at least $29,206,594.62 in alleged gambling proceeds into federal coffers. The latest warrant in the investigation was signed by U.S. magistrate judge Paul Grimm in early February, and it targeted the contents of a Mercantile Bank account in Tampa, Fla. The account, held in the name of a company called Direct Channel LLC, yielded $860,335.90 on March 5. Direct Channel, like the other companies included in the Maryland internet-gambling seizures, allegedly provided payment-processing services in the U.S. for gambling web sites based in other countries. Though the Maryland investigation initially appeared to focus on payment processors for Bodog, such as Direct Channel, it has since broadened to include funds held by companies serving another gambling site, goldencasino.com, which is also based in Antigua.

Any U.S. bank account used by a payment processor working with online casinos could be targeted by investigators, potentially wiping out millions of dollars when a seizure warrant arrives at the bank. But due to the magnitude of online gambling in the United States–half of the $16 billion per year that internet gambling is estimated to generate is believed to originate in the United States–the risk may be worth it. Though federal investigators in Maryland and elsewhere, including New York, Missouri, and Florida, go for the money, there’s so much in play at any given moment that what they seize is only a small portion of money flow.

So far, after several years of effort, Maryland law enforcers have seized nearly $30 million in suspected online-gambling proceeds. That’s equal to less than one half of one percent of the $8 billion that U.S. online gamblers are estimated to spend each year. But it’s a start. And as the effort builds and grows more sophisticated and nimble with experience, the potential is as vast as the American online-gambling economy itself.

“There are very big numbers in internet gambling,” say Rosenstein, acknowledging the sizeable cut the government could get through seizing and forfeiting assets, which are funneled into law-enforcement budgets to support the efforts of the agencies that seized them. Asked if seizures, in the long run, could undermine gambling web sites’ ability to pay out to U.S. customers, he says: “That’s a possibility, and it’s certainly a risk for customers. And it’s a pretty effective deterrent, since customers have no remedy if the gambling operator fails to pay. They won’t be able to go into court and enforce that. It’s an illegal contract.”

Seizing and forfeiting criminally derived assets, including those from online gambling, has been made a priority by Rosenstein’s office. Last year, he hired the nation’s top asset-forfeiture prosecutor–Stefan Cassella, who literally wrote the book on the subject, a 950-page tome entitled Asset Forfeiture Law in the United States–to lead the effort. Among Cassella’s achievements is the largest forfeiture in U.S. history: $1.2 billion from the Bank of Credit and Commerce International in the 1990s. Given the size of the online-gambling industry’s assets, Cassella may have an opportunity to break his own record while working in Maryland.

Law-enforcement efforts to interrupt internet-gambling money flowing in and out of the United States were ramped up after the 2006 passage of the Unlawful Internet Gambling Enforcement Act (UIGEA), which was signed by President George W. Bush in October that year. Before that law was passed, the federal Wire Act, which dates back to 1961, already prohibited the transfer of gambling proceeds via wire communications. That law had been used to go after internet gambling prior to the UIGEA’s passage. But unlike the Wire Act, the UIGEA specifically outlaws internet-gambling transactions and requires financial operators, such as banks and payment processors, to determine which transactions are tied to online gambling and report them to regulators.

The banking industry, concerned that UIGEA requirements would be difficult to enforce and would force bankers to become anti-gambling police, persuaded the Obama administration to postpone the law, scheduled for implementation in December 2009, for six months. U.S. Rep. Barney Frank (D-Mass.), meanwhile, is currently trying to usher through legislation that would repeal the UIGEA and instead set up a regulate-and-tax scheme for the industry, arguing that online gambling is a liberty–and a potentially large source of public revenues–that the government should not prohibit.

But Rosenstein contends that going after the illegal profits gained from the U.S. market for internet gambling is a matter of fairness. “What Americans find particularly galling,” he says, “is when something is criminalized, honest people don’t engage in the activity, but criminals do, so they get excess profits because their only competition is from other criminals.”

Those seeking to legitimize aspects of online gambling, though, have other thoughts on the matter. Last year, in trying to persuade a federal judge to release funds seized from a payment processor allegedly tied to online gambling, lawyers for the Poker Players Alliance (PPA), a Washington, D.C.-based interest group, argued that online poker is a game of skill, not of chance, and thus is not illegal gambling. They also contended that the UIGEA establishes criminal culpability for “persons who operate illegal gambling sites, rather than those who process payment transactions,” and that restricted transactions under the UIGEA do not include funds going to a gambler because a gambler is “not engaged in the business of betting or wagering.”

The lawyers for the PPA (whose motto is “Poker is not a crime: Join the fight.”) did not prevail. But their efforts–and the well-heeled existence of the PPA, which has its own lobbying arm, PokerPAC, and whose board is chaired by former U.S. Senator Alfonse D’Amato (R-New York)–indicates that powerful forces in American society don’t like the online-gambling crackdown. Recent public-opinion polling, though, indicates the prohibition of online gambling is popular; two-thirds of those responding to a Fairleigh Dickinson University poll released on March 11 say they do not favor legalizing it.

Though online gambling is legal in many parts of the globe, enjoyed by many Americans, and accepted in many cultures–to the point that online-gambling companies’ stocks often are publicly traded in other nations–its continued prohibition in the United States may be explained by the longtime association of the gambling industry with unseemly characters making obscene profits.

Recent cases against internet gambling operations, for instance, give a sense of the profit potential the business presents and sometimes allege organized-crime ties. In New York in October 2009, the operators of Panama-based betonline.com were charged with illegal online gambling; authorities claimed the group made $587 million in 28 months and was linked to the Gambino and Genovese crime families. In a 2006 Missouri case against the longtime gambling figures who ran Costa Rica-based betonsports.com, the indictment states that the company’s promotional materials boasted “100,000 active players, who placed 33 million wagers, worth over $1.6 billion” in 2003, before the company went public on the London stock exchange. In February, Missouri authorities indicted the operators of Costa Rica-based Elite Sports, which ran the web sites best24b.com and best24b.net, and among the defendants were members of the Kansas City’s storied Cammisano crime family.

In addition, federal authorities in New York have charged two men–Anurag Dikshit in 2008 (Dikshit NY info) and Douglas Rennick in 2009 (Rennick indictment)–with illegally running online-gambling ventures. Dikshit, who was born in India and is one of the youngest billionaires in the world thanks to the success of his online-gambling business, is co-founder of the Gibraltar company that operated partypoker.com; charges against him include the forfeiture of $300 million in gambling revenues. Rennick, a Canadian, ran a series of payment-processing companies that allegedly served the internet-gambling industry, and the government is seeking to forfeit more than a half billion dollars of the proceeds from his financial dealings.

Another alleged payment processor was charged in Florida in February, when a bank alerted federal authorities that customers were trying to cash large checks they said were the payouts from online-gambling winnings. Michael Olaf Schuett, a German man living in Naples, Fla., had set up hundreds of companies and had dozens of bank accounts that were allegedly used to operate the scheme since 2007. The complaint against him (Schuett FL complaint) says that he transferred online-gambling payments to about 23,000 people, mostly in the United States, and that the total amount of money involved was $70 million.

In what may have been the first federal gambling case involving the internet in Maryland, IRS investigators and Montgomery County police teamed up to bust a ring that, in 2003 and 2004, handled action from Maryland customers on behalf of a Dominican company called World Wide Wagering, which runs the web site wager.dm. The conspiracy case, which ended with the convictions of seven men from Montgomery County, Baltimore, and Florida, followed the money flow to and from bettors and the defendants. The case included the cashing of more than $150,000 worth of checks at University Liquors in Hyattsville.

Just as IRS agents in Maryland were cracking the World Wide Wagering case, they started looking into Bodog. But it wasn’t until December 2006, shortly after the UIGEA was signed into law by then-President George W. Bush, that the Bodog investigation got serious–it began with an investigator logging onto the web site, posing as a customer, and starting to gamble.

Once the investigator started receiving payout checks in 2007, the money trail could be tracked. In the meantime, the investigation gained a cooperating witness from inside the internet-gambling industry, who corroborated facts about Bodog’s operations, including the contention that “Bodog takes in from $250,000 to millions per day on sports bookmaking alone,” court records show. An informant also helped out by corroborating facts based on experience using Bodog’s site to gamble in Florida. The informant was able to explain the betting process to investigators; additional information was gleaned from investigators working online-gambling probes in other jurisdictions.

By 2008, sufficient cause had been established by Maryland IRS investigators to seize funds from the bank accounts of three payment-processing companies suspected of handling funds for Bodog: JBL Services and Transactions Solutions in Georgia (JBL forfeiture), and a California company called ZAFTIG Instantly Processed Payments Corp., operating as ZipPayments.com.

On Jan. 18, 2008, U.S. District Court magistrate judge Beth Gesner signed a search-and-seizure warrant application for bank accounts in the name of JBL Services and Transactions Solutions; $14,200,195.73 was seized. On June 28, 2008, U.S. District Court magistrate judge Susan Gauvey signed another warrant application for ZipPayments.com bank accounts, which yielded another $9,869,283.05. By July 2008, the U.S. Attorney’s Office in Maryland had filed forfeiture actions against both pots of money. The legal actions were based on lengthy affidavits written by IRS criminal investigator Randall Carrow.

In September 2008, the case against ZipPayments.com’s money suddenly heated up. A claim for nearly $10 million was filed by ZipPayments.com and Edward Courdy, a California man who sought to have the money returned, saying it was lawfully his. Within days of filing his claim, Courdy was charged with money laundering, as was Michael Garone, a Georgia man connected to JBL Services and Transaction Solutions (“Bodog Internet Gambling Investigation Leads to Money-Laundering Charges,” Mobtown Beat, Oct. 30, 2008). In February 2009, as a result of a forfeiture settlement negotiated by Courdy’s attorney, Stanley Greenberg, and assistant U.S. attorney Richard Kay, the government returned $200,000 of the ZipPayments.com money to Courdy, and kept the rest.

Today, the status of the criminal cases against Courdy and Garone is unclear. Some time in the fall of 2009, a little over a year after they were filed, the online records of the cases against them disappeared from the federal court-records database system, known as Public Access to Court Electronic Records (PACER). Since Maryland’s federal courts handle only electronically filed documents, PACER is the only repository of its records. The disappearance from PACER of Maryland criminal case numbers 08-454 (against Courdy) and 08-455 (against Garone), creates the illusion that they were never filed at all–though City Paper still has copies of the documents charging them, which bear Rosenstein’s signature. Despite City Paper‘s requests for explanation, the U.S. Attorney’s Office in Maryland has remained mum about what happened.

Courdy’s lawyer, Greenberg, has consistently declined City Paper‘s request for comment about his client’s troubles in Maryland. Efforts to contact Garone, and to identify his lawyer in the Maryland case, have been unsuccessful.

After the money seizures and criminal charges involving Courdy and Garone were filed, the online gambling investigation in Maryland appears to have shifted from the IRS to Immigration and Customs Enforcement–and the level of secrecy surrounding the investigation increased. Though numerous search-and-seizure warrants have been filed for the contents of bank accounts and an e-mail account associated with payment processors since last summer, nearly all of them were granted under seal, so probable cause for the seizures has not been revealed to the public.

Despite the secret nature of many of the seizure filings, certain information about them is available. Three ICE task force members in Maryland–Maryland State Police trooper Robert J. Mignona, ICE special agent M. Lisa Ward, and Anne Arundel County Police detective Richard S. Gunn–and one ICE special agent in Louisiana, Augusta B. Ferenec, filed the warrant applications. The companies whose bank accounts have been seized–HMD, Forshay Enterprises , and Electracash in California; Atrium Financial Group (AFG) in Delaware; and Direct Channel in Florida–are in the payment-processing business. The amounts seized so far from these companies’ bank accounts add up to $5,137,115.84. And, in the case of Electracash–a business that has past associations with Courdy–warrants have been issued not only to seize the contents of bank accounts, but of an e-mail account the company has with Intermedia, a New York City communications company. (The Electracash e-mail warrant, unlike the bank-account seizures, so far has yielded nothing, court records show.)

One of the unsealed search-warrant affidavits–the one filed early this year against Direct Channel’s bank account in Florida–was written by Ward, but draws directly from the IRS affidavit in the Courdy and Garone seizures, and thus sheds no new light on the investigation’s details. The other unsealed warrant, against Atrium Financial Group and written by Ferenec, shows that ICE’s financial-investigations group in New Orleans, La., along with the Louisiana State Police, are in on the Maryland probe (“GoldenCasino.com’s Payment Processor Targeted in Latest OnLine Gambling Seizures in Maryland,” The News Hole, Oct. 28, 2009).

The Louisiana end of the Maryland investigation began on July 14, 2008, when Louisiana State Police officers opened a gambling account with goldencasino.com. They did not immediately succeed, because the bank they were using to deposit $100 into the gambling account apparently blocked the transaction. On the second try, though, they succeeded. They then requested a payout.

The first payout check bounced, but the second one, from AFG, cleared, and the investigators, using information they gleaned from their transactions, used their investigative powers to start on up the money trail. They discovered funds moving between Canadian companies’ bank accounts in Canada and Cyprus and on to AFG bank accounts in the United States, which then issued checks to U.S. residents, including in Maryland. The transactions they tracked involved millions of dollars zipping across the globe.

“Because of enhanced monitoring of financial transactions since Sept. 11, we have a much better handle on the movement of funds,” Rosenstein says about the ability of investigators to dig into the online-gambling industry. In fact, the affidavits of investigators Carrow and Ferenec indicate that initiating a successful seizure of funds from payment processors doesn’t require particularly sophisticated investigative techniques. The trick, it seems, is trying to pinpoint where the money will be at any given moment, hoping to gain court orders to freeze it, and seize it before it shifts yet again.

Rosenstein points out another challenge investigators face in trying to seize online gambling funds: While it’s relatively easy to go after funds in U.S. accounts, going after offshore accounts–where the big money is, since that’s where the online gaming companies operate–is tricky.

“It’s similar to the challenges we face with child pornography, which is often stored overseas and transported to the United States over the internet,” Rosenstein says. “The degree of international cooperation with regard to child pornography is far greater than with offshore gambling, though. But we can readily intercept the money flowing through financial institutions that we have jurisdiction over.”

Rosenstein says online gambling can be prosecuted anywhere that customers are located, and that the public should expect to see more enforcement efforts taking place in more jurisdictions. He says that criminal activity is increasingly becoming more internet-based, and that investigative agencies are becoming more focused on financial crimes. They’re also becoming more sophisticated when it comes to following the money.

“Anything that illegally generates large amounts of money is a concern on many levels,” Rosenstein says. “People engaged in such conduct may be committing other crimes. They may not be paying taxes, and they may be investing in other illegal activities.”

Hysteria: In Maryland and Across the Country, the Federal Designer-Drug Crackdown Takes Prisoners, Cash, and a Legal Backlash

By Van Smith

Published in City Paper, Oct. 13, 2013

Photo: commons.wikimedia.org

Dev Bahadur Hamal worked behind the counter of the Tobacco Stop in Bel Air, one of those ubiquitous shops that sell legal smokables and accessories for illegal ones, like bongs, hookahs, rolling papers, pot grinders, and glass pipes.

On Sept. 22, 2011, a customer stepped up to the counter and asked whether the Tobacco Stop sold “Hysteria.” Hamal nodded and sold him a 1-gram packet of the stuff, labeled “potpourri” that is “not for human consumption,” for $21.20. The customer held his hand to his mouth while pinching together his thumb and index finger, and asked if “you smoke this stuff.” Hamal said, “Yes.” Pointing out that his pipe wasn’t working properly, the customer asked for rolling papers, and Hamal said the stuff was “very strong,” urging caution if smoking it that way.

Hamal’s helpfulness has been memorialized in numerous federal court documents in the years since, causing no end of trouble.

The customer, it turned out, was an undercover officer working for the U.S. Drug Enforcement Administration (DEA). Hysteria, subsequent testing confirmed, was a kind of illegal designer drug popularly known as “K2” or “Spice,” said to mimic the effects of pot. Hamal had unwittingly spawned a cross-country probe into an alleged illegal Spice supply line to Maryland from California.

Now, though, after the headlines about the arrests, seizures, and successful prosecutions resulting from Operation Log Jam and Project Synergy, one thing should be abundantly clear: It’s a risky proposition to sell anything exotic that’s construed as a legal high.

 

Nine months after Hamal’s Hysteria sale to the undercover officer and nearly 2,700 miles away, on June 12, 2012, Ratchanee McAuley was at M&C Wholesale. The business occupied three suites in a one-story, block-long commercial building in Laguna Niguel, Calif., in Orange County, south of Los Angeles. Around noon, the 40-year-old from Arizona and four others unloaded a Rapid Express truck delivering packages to M&C. Then McAuley took her small white dog for a walk.

As the day wore on, pallets of white canvas bags about the size of sandbags were moved around M&C’s suites, and more deliveries arrived, including boxes filled with black foil packaging. The business made and received lots of deliveries – its FedEx bill for a four-month period that year was over $100,000. Just after 6 p.m., McAuley put her dog in a silver Land Rover, drove to a house in nearby San Juan Capistrano, checked the mail, and walked toward the front door.

These glimpses of McAuley and M&C come courtesy of David Metzler, a Howard County cop assigned as a task-force officer to DEA’s Tactical Diversion Squad 59. He went to Laguna Niguel and observed them himself, then meticulously described what he saw in numerous sworn court documents. He also swore out the details of Hamal’s Hysteria sale-and much more, involving others at M&C and at another Baltimore smoke shop, the Dragon’s Den on Fleet Street in Fells Point.

At the Dragon’s Den in the fall and winter of 2011, Carlo D’Addario of Timonium had sold bath salts to people from Virginia, and federal authorities there indicted him for it in early 2012. D’Addario’s co-defendant, Holly Renae Sprouse of Craigsville, Va., near Shenandoah National Park, helped build evidence against him, and both would later plead guilty and receive relatively short sentences-a year in prison for D’Addario, and 20 months for Sprouse.

Shortly after D’Addario’s indictment, under the supervision of Metzler’s crew, orders for Spice were placed from the Dragon’s Den to M&C, where the Tobacco Stop had gotten its Hysteria.

By June 2012, after serving search warrants for email accounts and making the controlled buys orchestrated at the Dragon’s Den, Metzler’s team had good reason to suspect M&C supplied Spice products, branded with names such as “Hysteria,” “Brain Freeze,” “Dr. Feelgood,” and “Black Sabbath,” to the Tobacco Stop, the Dragon’s Den, and other such shops in Indiana, Kentucky, and New York.

On July 25, 2012, M&C Wholesale was raided and its bank accounts emptied. The next day, the DEA announced Operation Log Jam, explaining in its press release that the AEA “allows these drugs to be treated as controlled substances if they are proven to be chemically and/or pharmacologically similar to a Schedule I or Schedule II controlled substance,” including anything from pot and heroin to prescription painkillers and methadone.

The raid on M&C turned up several thousand pounds of suspected Spice, several kilograms of suspected analogue chemicals used in making Spice, and several thousand packets of Hysteria, Brain Freeze, and other brands of Spice.

Metzler had good cause to suspect they’d find such a haul. On July 17, about a week before the raid, he’d spoken with a courier who’d made deliveries at M&C and described seeing “8-10 individuals seated around a table handling piles of a green herb-like substance”-“no other sort of activity seemed to be ongoing.”

These observations, Metzler wrote in court records, “are entirely consistent [with] M&C Wholesale being exclusively devoted to the manufacture and distribution of analogue substances.”

No federal criminal charges have yet been filed publicly against anyone involved with M&C’s operation. Nor have charges been filed against Hamal or the Tobacco Stop’s owner, Kyu Tae Yi.

Others have not been so fortunate.

 

In September, federal prosecutors in Maryland moved to keep $105,574 seized from Bruce Lloyd Bradburn and his business, the Dundalk smoke shop Up in Flamez, in part because “large quantities of synthetic marijuana” were found in the store and in Bradburn’s nearby home. As a result of the probe, Bradburn is currently scheduled for a December trial on narcotics and gun charges in Baltimore County Circuit Court.

Earlier, in August, federal prosecutors filed suit to keep $259,988.61 seized in a synthetic-drug investigation of three Puff & Stuff smoke shops in the Cumberland area of Western Maryland. Puff & Stuff’s owners, Traci Lynn and Charles Casey, have filed claims in the matter, asserting “a legitimate and lawful interest” in the cash, which they say they “earned, saved, and acquired through lawful employment and enterprises.” But the probe prompted drug-conspiracy indictments against the Caseys in Allegany Circuit Court, and both are scheduled for separate trials later this year.

Also this year, three men – Nathaniel Petit, Andrew Burger, and Joshua Sylvia – were charged and pleaded guilty in a conspiracy to distribute methylone shipped here from China. Methylone is used to make bath salts, and though banned temporarily under the DEA in 2011, it was only in April of this year that methylone was listed as a drug banned by the CSA. Shortly thereafter, Petit, Burger, and Sylvia were charged in Maryland federal court, though they were caught in June 2012 and initially charged in state court. They are scheduled to be sentenced later this year.

These new Maryland cases show how effectively synthetic-drug laws can be enforced to punish accused Maryland criminals and to try to take their ill-gotten gains. Sprouse’s lawyer, Fred Heblich, a veteran federal public defender in Virginia and a lecturer at the University of Virginia School of Law, says criminal cases involving analogues are hard for defendants to beat.

“The way that the statute is written is very broad,” Heblich says, “so that the legal definition of an analogue is not specifically the same as the scientific definition.” This means cases are “easy to prosecute because the courts don’t require scientific accuracy.” So, in a typical case in which a prosecutor is trying to prove a chemical is an analogue of a banned substance, the prosecutor simply calls to the stand a “DEA chemist who testifies they’re similar,” Heblich explains, “and then brings in a user, who says it’s similar – ‘I’ve used that stuff and it’s a lot like meth.'”

Heblich says Spice cases are “a little different animal than the bath salts-like pot and meth are different.” Law enforcers might find “Spice is less worthwhile to pursue because it doesn’t have the cachet of bath salts – there are no stories of people eating people on Spice,” Heblich says, referring to a story last year in Miami that went viral with the false information that a man who attacked another man by chewing his face was on bath salts. And bath salts, more than Spice, pose a greater law-enforcement problem, he adds, because “there are hundreds of them, and you could create thousands of analogues of this stuff.”

In bringing analogue cases to criminal court, though, the defendant is at a distinct disadvantage, Heblich says, because “the judges let the government put in whatever evidence they want, and the jury is going to convict.”

When asked about probes that have resulted not in criminal charges but in asset-forfeiture cases, Heblich says law enforcers “will go after you if you have money – that’s all they care about now.”

 

Analogue cases that go after alleged manufacturers’ assets have shown some potential to reveal the AEA’s frailties – such as the forfeiture case against M&C, filed in November 2012, which seeks to keep the $2.2 million seized from the company’s bank accounts, along with 34 money orders and 102 checks made out to the company. Like other Operation Log Jam forfeiture cases elsewhere, this one has not been easily concluded.

This summer, after Maryland Assistant U.S. Attorney Evan Shea filed an amended complaint in the case with U.S. District Judge Ellen Hollander, M&C’s attorneys, Randall Skeen and William Feldman, moved to dismiss it. They argued that the government failed to establish a fundamental common-law principle: mens rea, which is Latin for “guilty mind.” No evidence, they claimed, had been produced to show that M&C and its operators “actually knew that the substances at issue were unlawful.”

The reason the government hadn’t shown this, the lawyers continued, is that the AEA is so “unconstitutionally vague” that “a person of ordinary intelligence would have no way to reasonably learn that these substances are unlawful and thus have an opportunity to conform their conduct to the requirements of law.”

Shea swatted down these arguments in a brief filed in August, citing abundant precedent that the AEA-even when applied to recently banned substances and their analogues-consistently has been ruled not unconstitutionally vague.

Then M&C attorneys’ reply cut to the core of the matter: money. Any proceeds derived from M&C’s sale of Spice before March 1, 2011, the date the compounds involved were temporarily banned by the DEA, should not be forfeitable, they argued, nor should any proceeds that haven’t been shown to be connected to sales of banned substances. This, they claim, comes to $1,829,784.50 plus interest “based upon the government’s improper seizure.”

While M&C’s motion to dismiss the Maryland forfeiture is awaiting a ruling by Hollander – and while a related suit M&C filed in Utah, where some of its money was seized, has been put on hold pending Hollander’s decision – in Florida, a whale of an Operation Log Jam forfeiture fight is underway.

In Operation Log Jam’s Tampa-area takedown, over $18 million, a handful of homes, and a brand-new Infiniti belonging to Timothy Hummel and his family were seized. Hummel, his family, and his colleagues in an alleged Spice-manufacturing operation have not been charged criminally, and they want their property back – but the government has moved to keep it. In working to have the case thrown out of court, Hummel’s lawyers, James Felman and Katherine Yanes, have tossed around some weighty rhetoric and strong claims.

Calling the Hummel forfeiture and Operation Log Jam “the latest installment of the modern American assault on the bedrock principle of mens rea” and “the first instance in the history of the Republic in which the government has sought to seize assets – and potentially imprison its citizens – based on conduct that it literally would not have been possible for the citizenry to know was unlawful,” the lawyers argued that, in Hummel’s case, the government is doing this based on “a single man-a chemist employed by the DEA named Terrance Boos.”

Boos, according to court records, testified in February at another federal proceeding in Wisconsin, offering his scientific opinion that two compounds-XLR11 and UR-144-are banned analogues under the AEA’s standards, and that he was not aware of anyone at DEA who disagreed with that conclusion.

But Hummel later obtained government documents showing that wasn’t the case-that, in fact, as Hummel’s lawyers put it, “an entire Section of the DEA disagreed not only with Dr. Boos’ conclusion that UR-144 is an unlawful analogue, but also with his authority to reach such a conclusion on behalf of the agency.”

Thus, Hummel has unearthed dissent within DEA over whether certain substances do, in fact, meet the AEA’s “substantially similar” standard.

The Wisconsin case Boos testified in was heard by veteran U.S. District Judge Rudolph Randa, a Vietnam War veteran who was appointed by President George H.W. Bush and served until 2009 as the chief judge of the state’s eastern district. It involved $100,000 worth of “herbal incense” that was seized in September 2012 from The Smoke Shop in Delavan, Wis., by law enforcers who wanted to test it for illegal analogues. When they wouldn’t give it back, the owner sued for its return.

After late-winter hearings and briefings, Randa noted that “the overwhelming weight of opinion in the scientific community” is that the substances found in the incense, UR-144 and XLR-11, “are not substantially similar to the chemical structure” of an already-banned substance, JWH-018, and therefore could not be ruled analogues.

On May 16, though, in the midst of the litigation, DEA put UR-144 and XLR-11 on the list of temporarily banned analogues.

Less than a week later, on May 21, Randa concluded in an order that, given DEA’s new ban, he had no choice but to dismiss the Smoke Shop’s suit. In doing so, though, he leveled some blunt criticism of the way this complicated law is being enforced.

“Under this scenario,” Randa wrote, “it seems unfair for a federal agency to seize the property of a small business owner and then keep it until it is declared illegal.”

There you have it: a federal judge saying what defense attorneys have been arguing, so far without success – that law enforcers’ approach to leveraging the AEA’s significant powers in expanding the menu of banned analogues, in one instance at least, “seems unfair.”

MDPV

Attorneys attacking the AEA often turn to a memorable critique penned in 2008, well before the recent spate of analogue bans: the act’s definition of an analogue is an “unholy union of legalese and chemistry jargon [that] is probably enough to bewilder even the most studious individuals,” Gregory Kau concluded in “Flashback to the Federal Analog Act of 1986: Mixing Rules and Standards in the Cauldron,” an article in the University of Pennsylvania Law Review.

Still, arguing that the AEA is so vague that people can’t reasonably be expected to know whether or not they are breaking it has not been received well by courts. Over and over again, the argument has been rejected.

A high-profile Operation Log Jam defendant in Arizona, Michael “Rocky” Lane, for instance, got nowhere in pre-trial motions on this question and ended up convicted by a jury this summer. Afterwards, in September, his attorney asked for a new trial-again, in part, based on claims the AEA is unconstitutionally vague. As the prosecutor’s response makes clear, the argument is not likely to win-but the attorney, Bruce Feder, scored rhetorical points in trying.

In addition to quoting Kau’s “unholy union” commentary, Feder reached back in time to invoke the words of Supreme Court Justice Oliver Wendell Holmes Jr. in a 1931 opinion. “Although it is not likely that a criminal will carefully consider the text of the law before he murders or steals,” Holmes wrote, “it is reasonable that a fair warning should be given to the world in language that the common world will understand, of what the law intends to do if a certain line is passed. To make the warning fair, so far as possible the line should be clear.”

Sometimes, the line may not be sufficiently clear even to the law enforcers themselves. In one 2011 case in Maryland, for instance, a designer-drug prosecution was abandoned until a judge officially dismissed the charges – and the defendant proceeded to successfully sue for the return of property seized in the probe. This rare instance, perhaps, is more telling of the vagaries of the designer-drug crackdown than any protests of those targeted.

The man’s name is Mohd Abujamous, and his saga began on May 3, 2011, when a suspicious box containing five packages of an off-white powder arrived from China at a Howard County UPS store. Investigators, thanks to information from the people who arranged to have the package picked up, quickly got a search warrant to raid a warehouse in New Market, near Frederick. They found it operated “as a manufacturer, packager, and distributor of various designer drug products including bath salts and Spice,” according to court documents, and determined Abujamous ran it.

The warehouse was filled with incriminating evidence, including barrels and boxes of chemicals used in Spice and barrels of powder, an envelope in one of them labeled MDPV, which is used to make bath salts, along with lots of substance-filled packets labeled “not for human consumption.”

On May 27, 2011, Abujamous was charged with manufacturing and possessing with intent to distribute chemicals used in Spice, JWH-018, and JWH-073, which the DEA had temporarily banned under the AEA on March 1, 2011. The case languished for months, and Abujamous’ attorney, Richard Karceski, asked for it to be dismissed, pointing out that the “Government has done nothing, to include refusing to respond to defense counsel’s calls and e-mails.”

In November 2011, Abujamous instead was indicted for a different crime-introducing misbranded drugs into commerce-and shortly thereafter the Spice charges were dismissed by the prosecutor, Philip Jackson. The misbranding indictment was based on the “not for human consumption” Spice labeling and the fact that the bath salts packages did not say they contained MDPV.

Nearly a year passed after the indictment without any activity by the government. So in October 2012, Karceski moved to dismiss the indictment, pointing out that Abujamous’ right to a speedy trial was being violated. Jackson never responded, so, in late November, U.S. District Judge Catherine Blake ordered the indictment dismissed.

Abujamous was off the hook, after about 18 months of prosecutorial silence and inactivity. But his property taken during the raid-about $36,000 of industrial equipment, including a truck, cement mixers, and some packaging machines-was being kept by the government, and he wanted it back. Not getting any response to his requests, he ended up suing-and winning.

Judge Blake ordered the government to return Abujamous’ seized equipment in June. In doing so, she also denied attempts by Assistant U.S. Attorney Stefan Cassella, an expert on asset-forfeiture law, to have the case dismissed or put on hold – which, in the latter instance, was filed under seal, so Cassella’s arguments remained shrouded from public view.

Neither Karceski nor the U.S. Attorneys’ Office will provide insights as to what went on with this case. However, an August 2011 letter from Karceski to Jackson, included in case documents, sheds some light on the circumstances.

“My client has always said that he was never in violation of any federal law regarding the compounds with which he is charged,” Karceski wrote. “I request that you provide me with a detailed chemical analysis conducted by the forensic division of the DEA. A fair evaluation will show that the banned chemicals were not contained in the product seized, nor were they seized in bulk from my client.”

Apparently, there was some confusion over the law.

Jewelry Dealer Boasted of Drug-Dealer Ties

By Van Smith

Published in City Paper, June 4, 2014

Today, Eugene Petasky is a humbled man, serving a 41-month prison sentence at West Virginia’s Morgantown Federal Correctional Institution after pleading guilty in U.S. District Court in Baltimore last fall to laundering drug money through his jewelry business, Metro Brokers, for nearly a quarter of a century. But on Nov. 8, 2006, when still a free man, Petasky spoke with apparent pride of his drug-world connections, sharing the details with an undercover cooperator in a sting operation that resulted in his indictment weeks later.

The account of Petasky’s litany of drug-world ties is contained in documents included in a civil forfeiture case, entered into the federal court record on April 7, in which the government is seeking to keep two firearms and ammunition seized from Metro Brokers during a November 2006 raid. To back up its forfeiture pleading, the government included a search-warrant affidavit written by Sharnell N. Thomas, a special agent with the U.S. Internal Revenue Service’s Criminal Investigation Division. The affidavit includes a paragraph describing Petasky’s conversation with the cooperator.

“Petasky discussed being associated with several drug traffickers,” Thomas wrote, including “Darryl Henderson, also known as ‘Bam,’ [who] would kill anyone that hurt Petasky.”

Thomas wrote that Petasky stated that he “paid Bam’s legal fees” and that “Bam was an associate of Greg Parker, a well known drug trafficker” in Baltimore. According to the affadavit, he also discussed another “well known” Baltimore drug dealer named “Ya Ya Brockington” and recalled selling “a large chain with a pool table encrusted with diamonds and rubies” to “an individual named ‘Wimpy,'” and “discussed the possibility that Wimpy was killed by another well known drug trafficker . . . Rudy Williams.”

While Thomas’ affidavit describes several of the drug-world figures cited by Petasky as “well known,” only one—Rudy Williams —may qualify as truly famous. The savage criminal career of Linwood “Rudy” Williams was the subject of a lengthy 1992 article in the Baltimore Sun by David Simon, who compared Williams to William Shakespeare’s dramatic and bloody portrayal of King Richard III. Simon’s piece includes an account of “Curtis ‘Wimpy’ Manns, who took Williams into his own drug organization, then ended his career as a corpse in Baltimore County, with partner and friend Williams as the prime suspect.”

In all likelihood, the “Wimpy” Petaski referred to was Manns. Williams, meanwhile, is serving his life sentence at the high-security United State Penitentiary—Canaan, near Scranton, Pa. Details of the other drug dealers Petasky mentioned—Darryl Henderson, Greg Parker, and Ya Ya Brockington—remain inscrutable as of press time.

Given the number of years that have passed since Williams and Manns were on the scene, Petasky’s 2006 boasts may have been more reminiscent of times past than of his contemporary stature on Baltimore’s mean streets. But that a man with Petasky’s trappings—records show he was a donor to Maryland politicians, drove luxury vehicles, had a diversified investment portfolio, and owned a nice home on Woodvalley Drive near Stevenson in Baltimore County—would claim such ties, even in vaunted rhetoric, speaks volumes of the drug culture’s reach into respectable circles.

Petasky’s past—he was previously convicted by a jury in 1990 in connection with a similar money-laundering scheme involving Metro Brokers and an attorney, Neil Steinhorn, who was also convicted—meant that he was prohibited from possessing firearms or ammunition. As part of Petasky’s plea deal, though, prosecutors dismissed the firearms charges, along with numerous other counts of financial crimes. He pleaded guilty to a single conspiracy count of money laundering, and agreed to forfeit $336,000 to the government as ill-gotten gains. Petasky is scheduled to be released from prison on Jan. 1, 2013.

A Dog In the Fight: Baltimore’s Enforcement of Animal-Cruelty Laws is Getting Some Bite

By Van Smith

Published in City Paper, Feb. 17, 2015

Photo: aspca.org

Last March, the door of a vacant house at 6203 York Road in Baltimore was forced open by police to reveal a scene of prolonged horror. The broad contours of what happened were pieced together by authorities after someone reported that a live animal was trapped inside the house in Cedarcroft, a nice neighborhood on the city’s northern boundary.

Baltimore City animal enforcement officer (AEO) Megan Zeiler looked through a window in the house and saw a dead dog. She called the police for help, and when they entered, they found the home “covered in animal waste,” while the “extremely emaciated” dead dog’s “face appeared to have been eaten by another animal,” court records explain. While Zeiler examined the dog, named Rudy, a “live emaciated cat” named Lola “came down the steps” of the house, “covered in dried blood, presumably from consuming dead animal.” Zeiler “found a dead cat” on the third floor that “also appeared to have been eaten.”

Zeiler talked with a neighbor, who explained he had not seen the home’s owner since January. Thus, it appeared that Rudy, Lola, and the other cat had been locked in the house, left to their own devices, for about two months. Only Lola made it out alive, apparently by eating the others. The dead cat’s cause of death is “unknown because most of the body was missing,” court records state, while Rudy “suffered terribly with evidence of severe neglect and lack of veterinary care,” along with “extended malnutrition/starvation.”

After a bit of detective work, someone was held to account: the vacant home’s owner, 33-year-old Patrick Kenji Ito. Charged on July 17 with 31 counts of various forms of animal cruelty, he was arrested a week later and released pending trial on his own recognizance. At his Oct. 7 court appearance, prosecutors declined to press all charges but one count of aggravated animal cruelty. Ito pleaded not guilty and was given two years of supervised probation before judgment and ordered to pay $264 in restitution to the nonprofit Baltimore Animal Rescue and Care Shelter (BARCS), where Lola was treated.

Ito, the chef and co-owner of Hampden’s McCabe’s Restaurant, has not yet paid restitution to BARCS. (BARCS has filed a court lien against him for the amount owed, which they do whenever defendants fail to pay the ordered restitution).

In a Facebook message responding to City Paper’s inquiries, Ito explains that the York Road house had gone into foreclosure and he had moved out, and “there clearly had been quite a few people in and out of the property” after that, and then “out of nowhere I got arrested for animal cruelty charges.” The dead dog, he claims, “was not my dog” though the authorities “thought it was. I just took the offer of probation so there was no possibility of me doing jail time for these ridiculous charges.” He adds that “this has been quite an ordeal and I just really don’t want to be pictured as this animal killer after all this.” In a follow-up phone conversation, Ito adds that “my dog Rudy is still alive.”

The case against Ito is one of 28 criminal matters City Paper reviewed in order to get a grasp of how people in Baltimore are getting caught and penalized for abusing animals. Detailed in sworn statements contained in the court files, they run the gamut from a man who left a dog locked in a hot car, to a woman who threw a kitten against a wall, to dogfighting.

The 28 cases show that animal abuse is a big tent of bad conduct by all sorts of regular citizens, not just violent drug dealers driven by greed and bloodlust to hold high-dollar dogfighting events, as in a massive dogfighting indictment filed in December. They also show that law enforcers are going after all manner of animal abuse, and taking the crimes seriously.

As recently as April 2013, the city’s animal-abuse enforcement effort was lambasted in a report of the Mayor’s Anti-Animal Abuse Advisory Commission (MAAAC), which City Hall tried to suppress. The report found “many law enforcement officials in Baltimore continue to treat animal abuse as a minor property crime,” yet predicted that “2013 promises to be a better year.”

If 2013 brought improvements on the abuse-fighting front, 2014 appears to have brought even more. City Paper asked to interview police and prosecutors about their efforts to combat animal abuse, and Tammy Brown, spokeswoman for the Baltimore City State’s Attorney’s Office, said only “we work very closely with Animal Control to investigate and prosecute animal cruelty cases when they are merited,” though her office did provide defendants’ names and court-case numbers for some of its 2014 prosecutions.

A request to interview Sharon Miller, director of Baltimore City’s Office of Animal Control, about her encounters with animal abuse in the field, and how enforcement has changed or improved over time, was met with a prepared statement.

Each year, Animal Control’s statement says, it receives “approximately 5,000 calls [that] are classified as Animal In Danger,” such as “dogs inhumanely chained in rear yard, injured animals, animals that appear malnourished, etc.” The “office responds and investigates each call” and also “works closely with” police and prosecutors “in investigating suspected cases of neglect and abuse,” a “collaborative relationship” that “has led to an aggressive investigative approach which has resulted in an increase in felony arrests and prosecutions.” That last point is backed up by the number of animal-abuse arrests processed at Baltimore Central Booking and Intake Center (BCBIC), which went from 17 in 2013 to 24 in 2014.

BARCS’ Executive Director Jennifer Brause says “animal abuse is taken more seriously now,” with “more enforcement, deeper investigations, and more prosecutions, and it makes you feel good because something is being done about it.” Greater enforcement spawns more citizen reports of abuse, she adds, because “now they know something is going to be done about it.”

Not among those 2014 arrests, though, were the 22 people indicted for a massive dogfighting conspiracy in December 2014—a case that is perhaps the best gauge of how seriously Baltimore law enforcers now take animal abuse.

Hundreds of dogs and huge hauls of dogfighting paraphernalia, along with guns, drugs, and cash, have been recovered as a result of the dogfighting investigation. The case is overseen not by line prosecutors, but by the elite Major Investigations Unit (MIU) of the Baltimore City State’s Attorney’s Office, an outfit best known for prosecuting gangs and handling complex wiretap investigations.

As then-State’s Attorney Gregg Bernstein pointed out when he announced the indictment, “there is a strong connection between those individuals who would subject animals to horrific treatment and abuse and those engaged in the drug trade and acts of violence.” The indictment, he continued, “hopefully will protect innocent and vulnerable animals from further abuse and reduce violent criminal activity.”

The cases City Paper reviewed also show this connection, but not always. Ito, for instance, has not otherwise faced criminal charges in Maryland, and neither have many of the other defendants. The 28 cases, though, have at least one thing in common: victims. All told, 74 dogs and five cats suffered, whether or not the perpetrator suffered consequences.

Those defendants deemed guilty, says retired city animal-abuse investigator Eric Banks, “should be kept from ever owning another animal, another pet,” he says, adding, “if you’ll abuse a dog, a pet, you’ll abuse a child. It’s the same mindset.” While the law doesn’t allow this, the effort to seek justice on abused pets’ behalf shows the city does indeed have a dog in the anti-abuse fight, and it has some teeth.

Tavon Sol was 8 years old in 1999 when since-retired Baltimore Sun features writer Carl Schoettler profiled him and his father, Tyrone Sol, in a boxing story. Tavon, “looking like a chunky spaceman in his protective headgear and midriff guard, whacks away at his dad with more enthusiasm than skill,” Schoettler wrote. “But he’s learning.”

The son apparently learned more than boxing from his dad. Fast-forward to 2011, when both were charged for guns and drugs. Eventually, prosecutors declined to pursue most of the charges, but Tavon Sol pleaded guilty to drug possession and was put on six months of probation, while 56-year-old Tyrone Sol, an already-convicted drug dealer and burglar, pleaded guilty to animal cruelty and was given a two-month sentence in October 2013.

A month after his father was sentenced, Tavon Sol rolled up to his home at 545 N. Fulton Ave. to find the police raiding the place. After advising him of his rights, the officers took his statement: “he had three guns and marijuana in his basement bedroom” and “all the pit bulls at the location was [sic] owned by him,” whether “dead or alive.”

In the house, in addition to guns, drugs, cash, and “various dog fighting paraphernalia,” were seven pit bulls in the basement, three pit bulls “chained to the rear fence line outside,” and a “deceased pit bull in a cage on the rear deck outside the kitchen door.”

Come Jan. 19, the only remaining charges remaining against Sol involved the guns and drugs, as prosecutors dropped the 12 animal-cruelty and dogfighting-related charges against him. Those, it turns out, were rolled into the MIU’s dogfighting-conspiracy case.

The indictment describes in greater detail the fruits of the November 2013 raid on Sol’s house: In addition to the 11 dogs, there were “materials, devices, and instruments used to facilitate the breeding, training, and fighting of dogs (e.g., a treadmill, conditioning harnesses, breaking sticks, wound treatment, dietary supplements, etc.),” and “one of the pitbull puppies was deceased due to starvation.”

Thus, Sol is no longer on the hook for just the animal-abuse crimes apparent in the November 2013 raid on his house, but of the crimes of the whole 22-member conspiracy, which is alleged to have spanned from April 2013 to when it was indicted in December. The grand jury claims he’s part of what the indictment calls “a closely-knit clandestine community” that used “disturbing conditioning methods designed to make dogs more aggressive, vicious, and lethal.” This was done to “increase the chances of prevailing in dogfights—and to maximize the corresponding profits from gambling on matches,” where “the total purse” can be “$100,000 and higher, with individual cash bets of $25,000,” or “even greater at larger events.”

Of the 22 defendants, eight have prior convictions for violence, five for handguns, two for sex offenses, and one for murder. Earlier in 2014, some of Sol’s co-defendants, including the father-and-son team of William Murray Jr. and William Murray III and Tyrone Wolfe, already had already appeared in court documents for suspicions of dogfighting, as had a man, William Paige, who’s mentioned though not charged in the MIU indictment.

As Baltimore Police Department (BPD) officers were preparing to raid Murray III’s home at 2801 Oswego Ave. in Park Heights in April 2014, the 27-year-old emerged from the house, got into a white Ford Crown Victoria, and drove off. The officers stopped and arrested him for not having a valid driver’s license. Thus, Murray III wasn’t present for the raid on his house, but his girlfriend, Victoria Burnham, and an infant were.

The raid turned up drugs, a gun, and “5 pit bull type dogs within cages” in the basement. One of the dogs “was severely injured” and the other four “were injured with scarring and swelling,” while one was wearing a “weighted collar.” Among the wide array of dogfighting paraphernalia found were a “weight pulling harness,” a “weight pulling sled,” a “scale used for weigh in for dog fight,” and “conditioning videos.”

The police then went to the Murrays’ used-car dealership, around the corner at 4026 Reisterstown Road, where 48-year-old Murray Jr. was there to let them in. More dogfighting paraphernalia was recovered, including veterinary-care medicine, dietary supplements, and “various animal fighting documents.”

Burnham and Murray III were arrested and charged for drug- and dogfighting-related offenses, and Murray Jr., who was entrusted with the infant, was not arrested. The case against Burnham dwindled to a minor pot charge. Murray III’s case continued until Jan. 15, when prosecutors declined to pursue the charges, which by then had been rolled into MIU’s dogfighting indictment.

Then, on Jan. 12, Murray Jr. and his wife, Barbara Murray, were also indicted in Baltimore County in a separate dogfighting conspiracy, which also includes animal-cruelty counts for failing to provide “proper drink” to several horses. Murray Jr., who owns the Southwest Baltimore arabber stables on Carlton Street that were raided on Jan. 13 over concerns about the care provided to the horses there, also faces numerous firearms-related counts in the Baltimore County conspiracy, including for possessing guns when he’s prohibited from doing so given his prior felony record.

Wolfe, meanwhile, made a blip on the anti-dogfighting enforcers’ radar on June 18, 2014, when animal-control director Miller and BPD officers came to his house at 3922 W. Garrison Ave. with a warrant to check on “the health and welfare and licensing” of animals there. Once inside, they found 41-year-old Wolfe, Ebony Goins, and three children.

“We smoke weed, and that’s it,” Wolfe told the officers, adding “there is an old gun in the basement.” Also in the basement, Miller observed, were “a make shift box with carpet on the floor which had blood stains,” while three pit bulls were in the backyard, one of which had “bite wounds/scarring” and another had “a long split of the tongue.” A “weight pulling harness” and a “treadmill” were also found, “an indication of conditioning a dog for a fight.”

The charges against Wolfe, who was previously convicted of assault with intent to murder and handgun violations, remain pending in Baltimore City Circuit Court.

Paige can count himself lucky not to be charged in MIU’s case, since his name appears in the indictment, along with the circumstances found at the 58-year-old’s house in January 2014. That’s when, similar to what happened to Wolfe, Baltimore authorities came knocking at his Sandtown-Winchester house at 1118 N. Carrollton Ave. with a warrant to check on the welfare of animals there.

In addition to guns and drugs, six pit bulls were found in the backyard, “housed in 50 gallon plastic drum barrels” and “chained with heavy chains” in frigid, 14-degree weather. Several bore scars “on the face, chest, and legs,” suggesting they “have been fought.” In October 2014, the Sandtown-Winchester resident was sentenced to three years in prison for having fight-trained dogs and five years for being a felon in possession of a firearm, in light of his 1985 attempted-murder conviction. Thus, Paige’s penalties had already been meted out before the indictment came down.

While the dogfighting scene appears to be populated with nefarious characters with shady backgrounds and criminal proclivities, numerous people with clean or nearly pristine criminal backgrounds have been snared for animal abuse in Baltimore. At times, their culpability was established after they engaged Baltimore’s animal-welfare apparatus upon their pet’s sickness or death.

Take 47-year-old Northeast Baltimore resident Tonya McCoy. In January 2014, she surrendered the body of her dead brown-and-white pit bull to BARCS. An employee there was “concerned about the condition” of the dog, and so contacted an AEO, who inspected the dog and found it “emaciated and dehydrated.”

When interviewed, McCoy explained that the dog “became sick two weeks ago,” and took it to the vet, but “the line was too long and the dog died before making it to the shelter, about 30-40 minutes earlier.” But the dog “was cold to the touch,” its left side “had begun to flatten” as if it “had been on its side for an extended period, . . . yellow liquid was draining from the dog’s nose and mouth,” and its body temperature “did not register on the thermometer.”

A necropsy concluded the dog “suffered from serious neglect” and “lack of proper nutrition” for “weeks/months.” It had an inflamed abdominal wall, a “very painful condition” that would have rendered it “visibly sick and in pain.” McCoy was found guilty of one count of animal cruelty, for which she received one year of unsupervised probation before judgment.

Andrea Eaton, a 48-year-old Northeast Baltimore resident, adopted a dog named Sput Lee from BARCS in January 2013, but it was in poor condition when her brother brought the dog back to BARCS in February 2014. Eaton admitted she “never found out why the dog was losing weight and did nothing more until the time of surrender” by her brother. Under BARCS care, the dog regained weight, adding 13 pounds in six days. Eaton was given 18 months of supervised probation and ordered to pay $496.55 in restitution to BARCS, which she has not yet paid.

The case of 33-year-old Torrelee Lane, who called the Maryland Society for the Prevention of Cruelty to Animals (MDSPCA) in June 2014 to say “her dog had been hit by a car about two months ago” and was “chewing at the foot,” shows the lengths to which animal-welfare investigators sometimes have to go.

After prompting from MDSPCA, Lane arrived there hours later with the dog, identified as “T.K.,” whose foot was wrapped up with a towel, electrical tape, and a plastic bag. Amputation was required, because  T.K.’s “entire foot and part of the bone was missing,” and that the dog had “severed” bones.

Lane had mentioned she had other dogs, so an extensive probe ensued, overcoming Lane’s efforts to thwart it. Ultimately, authorities came to her home with a warrant and found three pit bulls, including a “thin and unresponsive” puppy that had parvovirus, a highly contagious and life-threatening disease. All three were euthanized. Lane was put on one year of supervised probation, and had to pay $57.50 in court costs.

In other cases, people called authorities to have their unwanted, sick dogs picked up, and AEOs responded to discover neglected animals. One of them, 40-year-old Ellwood Park resident Gregory Williams, told an AEO his Rottweiler, who was “extremely emaciated,” had “eaten a rat” and “had been in the same condition for about a month.” Turned out, the dog had a condition requiring a special diet, and gained seven pounds with proper care. Williams got one year of supervised probation for animal cruelty and was ordered to pay $294 in restitution to BARCS, which he has yet to pay.

Another man, 44-year-old West Baltimore resident Louis Raymond Jefferson, called to have Animal Control pick up his Rottweiler, Bo, and the responding AEOs found “a very thin” dog “lying on a urine soaked sheet” in 28-degree weather. Jefferson said Bo “had been sick for about a month” without “any veterinary care.” BARCS found Bo to be “in horrible condition, emaciated, dirty, unable to walk, with pressure sores, and extremely swollen/enlarged joints,” and after the dog was euthanized, it was determined that Bo was “an old dog with numerous problems such as failing organs and parasitism.” Jefferson got six months of unsupervised probation.

One of the dogs seized in the December bust of a Baltimore-based dogfighting ring (WBAL)

Calls from tipsters spawned many of the 2014 animal-abuse cases City Paper reviewed, and responding AEOs turned up some heart-breaking cases of abuse.

A tip about two underweight dogs “left out in the cold” brought AEOs to 934 N. Rosedale St. in West Baltimore in January 2014. They found a pit bull on a short chain lying on a blanket outside of an “igloo dog house” in 4-degree weather, and a white dog “dead on arrival and frozen to the bottom of the doghouse.” A 48-year-old woman, Bridget Jones, “came to the door” and claimed ownership of the dogs. She got a 90-day sentence (with 86 days suspended) and probation for one year, and was ordered to pay $150 in restitution to BARCS, which she hasn’t yet paid. Since the animal-cruelty charges were filed, Jones has been found guilty of theft and, in yet another case, charged with first-degree assault and use of deadly weapon with intent to injure.

In February 2014, BPD officers and AEOs went to 2818 Ellicott Drive in West Baltimore, responding to “an anonymous call that a dog had been abandoned in the rear yard,” which is exactly what they found. Neighbors confirmed that it had been “left outside, tied to a pole in the cold” for “over a month,” and the police noted it “had severe scars on his legs and nose.”a year of supervised probation and ordered to pay $500 in restitution to BARCS, which she has not yet paid.

“The owner of the home,” 50-year-old Carolyn Simmons, walked up to the scene, bearing “the strong pungent odor of marijuana on her person.” When told of her impending arrest on animal-cruelty charges and the apparent smell of pot, Simmons announced, “I got some bud in my bra underneath my breast on the left side.” Simmons was given a year of supervised probation and ordered to pay $500 in restitution to BARCS, which she has not yet paid.

In July 2014, AEOs and BPD officers were directed to an apartment in the 3800 block of Rogers Avenue by a tip about a “deceased dog,” and came upon a disturbing scene. In the garage was a live dog that was “being stung by bees which were on a hive near the dog,” which was “tied to a crate without water or food.” Also in the garage was a dead pit bull “still tied to a electric [sic] outlet on the wall” and “already in an accelerated state of decay.” Charges were brought against a man named Maurice White, but prosecutors dropped the case on Jan. 13.

In November 2014, someone called in a complaint for “four dogs being kept in a 4×6 area in the rear of” 4451 Eldone Road, and AEOs arrived to find three dogs “confined in a fenced in area on the patio.” Dante Blake was there, and the 42-year-old explained that the two female dogs “were kept in crates to keep them from fighting” and that they’d fought two weeks earlier, adding that “he felt he could properly treat the injuries” himself “because of his career in the medical field.” All three were “visibly malnourished,” and one of them had “many wounds on her face,” another “had open wounds on her front legs and swollen muzzle,” and the third had “scarring on his legs and a wound on his chin.” Blake got one year of supervised probation and was ordered to pay $57.50 in court costs.

Two cases involving cats resulted from tips—including one that “a cat had been thrown against a wall and was possibly dead” in the Curtis Bay home of 38-year-old Elizabeth Gauthier. When an AEO arrived on July 8, 2014, Gauthier explained her kitten died when it “stopped breathing,” and that “her boyfriend had buried it somewhere outside,” though she didn’t know where. Animal Control director Miller got on the phone with Gauthier, who then admitted she had thrown “the kitten against the wall because the kitten scratched her,” and its body was in a plastic bag in the basement. A necropsy determined a concussion and brain trauma caused the kitten’s death. Gauthier got three years of supervised probation, and was ordered to pay $165 in court costs.

Similarly, in June 2014 someone reported that “a cat had been thrown from a window” at 4322 Reisterstown Road in Park Heights. Responding AEOs met with Philip Hanna, who explained that he’d heard his brother, 50-year-old Steven Hanna, earlier that day exclaim, “throw that mother fucker out the window.” A witness, Montre Jordan, confirmed what had happened and said the cat “almost died,” though it was found on the deck below “in shock but not significantly injured.” Steven Hanna got a 90-day suspended sentence and six months of probation.

A tipster’s call to police—and steps taken prior to their arrival—may have saved a dog’s life on June 30, 2014. Baltimore real-estate investor Thomas Karle Jr. called in the situation: a dog locked “inside a black GMC Denali with the windows up for over three hours” across from Baltimore City Hall. While waiting for the police to arrive, Karle and others noticed the dog “was in serious distress and on the verge of passing out,” so Karle “forcibly pulled the window of the car down and extracted the dog,” who “could barely move and was heavily panting,” so Karle and others “washed him down in water and gave him water to drink.”

When the police arrived, “the dog seemed to be in stable condition,” but “there was no sign of water or food” in the Denali. Its owner, 22-year-old Danael Tesfaye, “then came out to see what was going on,” and said “he did not know you couldn’t leave a dog in the car and admitted he owned the dog for two days.”

The dog went to BARCS, and Tesfaye, who has no prior criminal record, was arrested on four counts of cruelty. He was freed the same day on $50,000 bail. In September, he received six months of unsupervised probation and a $250 fine, and had to pay $57.50 in courts costs. When he failed to pay the fine, a warrant was issued and he was again arrested on Dec. 8, then released on his own recognizance.

Perhaps the most compelling animal-abuse case City Paper reviewed was one involving a 13-year-old boy who arrived on July 18 at BPD’s Southwest District station and announced that his mom and stepdad were trying to kill his pit bull. It joins together themes that the MAAAC report pointed out: the correlation of animal abuse with other kinds of violence and abuse.

The boy explained that he’d had an argument with his mother, 34-year-old Lynette Reed, who’d ordered his stepfather, 28-year-old Kevin Harris, to “take that bitch in the woods and kill it,” after which the boy had watched Harris walking his pit bull toward the woods along the 2700 block of Frederick Avenue, announcing that “I’m going to hang him from a tree and kill him!”

The police looked for the dog, but couldn’t find it, so they went to the boy’s home and encountered a “very hostile” Reed, who said of her son: “Get that bitch away from my house! That bitch isn’t coming inside my house! He’s not going to be shit just like his daddy wasn’t shit!”

When officers advised Reed that the youngster could not legally be refused access to the home, Reed threatened him. “If he comes back in here,” she said, “I’m locking him in the basement! He’s not getting any food or water unless I want him to have it. And when I’m ready for him to have something, he’ll only get bread and water. And he’s not getting a bed, he’ll sleep on the basement floor! I’ll show him what it feels like to be on lock down!”

The police tried to explain to Reed the procedures for handling her desire to no longer have her son live in her house, and she yelled back at them: “If you don’t take him, I got something for that! I’m unplugging his box!” Reed proceeded to unplug her son’s home-detention monitor, “in an attempt to violate his probation and get him arrested.”

The boy then asked his mother, “What did you do with my dog?” She yelled back, “I took the bitch in the woods and left him there!” and “I told you if you didn’t get it out of my house, I was gonna kill him!” The police, “not feeling comfortable leaving” the boy with her, sought “proper placement” for him. They then received a citizen’s call that a pit bull was tied to a tree nearby. Upon arriving, they found it “out in the sun” and “tied to a tree using a rope, a cord, and a metal chain” with “no food or water.”

Reed, who like Harris has prior convictions for assault and theft, was arrested on five cruelty counts, but in August prosecutors declined to pursue the charges. A warrant was issued for Harris, who was arrested on Feb. 9 and held without bail pending trial, scheduled for March 10.

Another harrowing domestic scene played out in April, prompting animal-abuse charges, when 32-year-old Andrea Ashe called the police to say she believed her estranged boyfriend, Darryle Langley, had “broken into their home” in Northeast Baltimore and “was still inside.” He “had access to a firearm,” she explained, adding that she was “unsure if he had one with him.” She had “separated from Langley due to being afraid of him,” but “he still had some property inside of the residence.”

When the police entered the house, they found no one there except for “a dark grey Pit Bull standing at the bottom of the steps” in the basement “with its “tail between its legs.” When they approached, the dog “ran to the far corner of the basement, as if to be afraid.” Urine and feces were “scattered around the basement floor,” and there was a “dog crate that appeared rusty with jagged edges” and empty bowls for food and water.

The police tried to talk to Ashe about the dog, but she “seemed to be uninterested” and “would not answer” any questions. So they spoke directly: “Ma’am, that dog in your basement needs your immediate attention. You need to give him food, water, and take him with you when you leave.” Ashe “did not respond,” but “merely walked inside” the house.

Two days later, an officer returned, knocked on the screen door, and “heard the Pit Bull come up the steps from the basement and begin to scratch at the door with its paw while it wimpered [sic].” The officer entered, “believing the dog was in great pain and suffering.” Everything in the basement was it had been during the previous visit, and the dog was in bad shape. The officer “could see its rib cage” and it had “little to no energy,” so Animal Control “responded and took custody” of it.

Ashe and Langley both were charged with animal cruelty, but prosecutors declined to pursue their cases. About 10 days after Langley was arrested on the charges, he was accused of second-degree assault in the city, and later pleaded guilty, receiving a three-year suspended sentence with 18 months of probation.

About a week after the assault charges were filed, Frederick County law enforcers accused Langley of heroin distribution, and after pleading guilty he received a 20-year suspended sentence with two years of probation. That case violated his supervised release on a federal felon-in-possession-of-a-firearm conviction, so he was sent back to federal prison for seven months, and is scheduled for release in July

While routine animal-abuse cases involving neglected or abused dogs and cats, however disturbing, rarely make headlines, dogfighting, the rock star of animal-abuse crimes, is all but assured media coverage. Aside from MIU’s big case announced in December, consider the case against Johnnie Taylor of Howard Park.

It started in April 2012 as a routine drug probe prompted by suspicions that Taylor’s house “was being used to sell marijuana.” After watching apparent drug transactions, the police arrested two men, including Taylor, who told police that he lived alone at the house, but “he had several dogs inside his house and he was aspiring” to be a pet-shop owner.

As the police later arrived at Taylor’s house to raid it, his girlfriend, Tara Davis, “was standing outside” and told the officers of the dogs. “All but one” of them “were confined to a crate,” she said, and the “loose dog” was a “king corso” named “Midnight,” an “extremely aggressive” dog that “was a direct danger to anyone entering the dwelling.” So the police had Davis “enter the dwelling first,” put Midnight on a leash, and “take the dog directly to her vehicle.” They then went inside.

What they found was a bunch of pot, bullets, and “eight pit-bull dogs scattered throughout the house contained in separate cages,” living in a manner “unsuitable for any living creature.” The dogs were “kept in small cages” and were “standing in their own fecal” matter and “did not have any food or water.” Five of them “were kept in the unlit basement,” and two of them “had clear signs they had been bitten on the face and legs.” Also found was dog-training equipment, dietary supplements, and veterinary supplies, along with “a manual titled ‘Conditioning a Dog for a Fight.’”

The case prompted much media coverage, and Taylor took to YouTube after his arrest to try the case in the court of public opinion. “A lot of people probably seen me recently in the news for this dogfight ring,” he declares on the 11-minute video, “so I figure I get my own camera crew out here and tell the city and the world what’s really going on with Johnnie Taylor.

“Well, let me start off by saying I’ve never fought dogs ever in my life,” he says. “Ever since I was a little boy, I’ve always rescued animals,” and “my house is like an animal sanctuary.” He claims “people know I’m trying to open up a pet store, so why would the police say that I’m fighting dogs” when “all my dogs were healthy and friendly?” He asks viewers, “have you ever heard of a friendly fighting dog?”

Taylor will soon get a chance to defend himself in court, because a pretrial dispute was recently returned from the appellate courts in the prosecution’s favor, and a trial is scheduled to begin on Feb. 23.

In 2014, though, one dogfighting case went unnoticed. It demonstrates how this form of abuse can be a spectator sport on the open streets of Baltimore.

On the afternoon of April 13, the police went to an alley near Homewood Avenue and East 20th Street, just north of Green Mount Cemetery, “for a dog fight in progress,” and when they arrived, they heard “citizens start to yell, ‘Yo the police are coming.’” There were “approximately 20 citizens in the alley, who were spectating this event, but they began to scatter” when the police showed up.

Two men, 36-year-old Edward Dancy and 44-year-old George Jordan Jr., were separating the fighting dogs, a “brown and white pit bull terrier” and a “white bull terrier,” who were “still growling, barking, and displaying their teeth toward each other.”

Dancy, ignoring officers’ calls for him to stop, pulled the pit bull down the street, but was soon detained and hesitantly did as told, to secure the dog by chaining it to a fence. Jordan did the same, chaining the bull terrier to a light pole.

“We wasn’t fighting the dogs, his dog jumped the fence,” Dancy said initially, but then changed his story, claiming “that’s not really what happened officer. We were walking the dogs” and they got too “close to each other and started fighting.”

Both dogs had injuries, but the bull terrier’s were worse: “punctures and lacerations” to the “face, ears, front legs, rear right leg, and neck.” The pit bull had “bite wounds” on its “face, nose, and front leg.” A responding AEO declared that the scene appeared to be more than what Dancy described, since their injuries “are consistent with that of dog fighting.” The police concluded that the two men “were intentionally and maliciously fighting these dogs” with “blatant disregard for public safety” and “the lives of these animals.”

Dancy and Jordan both were charged with animal cruelty and dogfighting. Jordan, who has a 2005 drug-dealing conviction, pleaded guilty and received an 18-month suspended sentence and one year of unsupervised probation. Prosecutors declined to pursue the charges against Dancy, who has faced numerous minor charges over the years, but has never been convicted.

Banks, the retired city investigator who would like to see convicted abusers banned from owning pets, holds dogfighters in particular disdain. “People that fight dogs are displaying antisocial behavior, and they’re dangerous,” he says, adding that “they should be publicized on a website, like the sex-offender registry.”

The zeal is borne of what Banks saw during his days in the anti-abuse business. Now a security professional who has provided services to celebrities in town to film movies, Banks, a fit man with a yen for gold chains, doesn’t come across as prone to emotional displays.

Yet, when his memory is jogged about what he saw in Baltimore’s basements and backyards, his emotions run high.

Banks recalls entering the basement of house where “there was a dogfighting ring, broken down, and a bloody carpet, and they had vitamins and steroids and treadmills. They were breeding dogs for fighting.”

What really got to Banks, though, was “a bait dog in a cage, and this dog was tore up. Part of his jaw was missing, his tail was gone, his ear was bitten off. He’d fought before, his time was over, and they just used him as a bait dog,” to get fighting dogs riled up.

“The thing about it was,” Banks continues, “this was the friendliest dog you’d ever want to be around. But he was so ugly, so abused. I cried.”

Old Business: Martin O’Malley’s Failed Promise As Baltimore Mayor Will Stay With Him, No Matter Who Wins The Governor’s Race

By Van Smith

Published by City Paper, Nov. 1 2006

book

In the summer of 1999, when then-City Councilman Martin O’Malley was running for mayor of Baltimore at age 36, he wrote With Change There Is Hope: A Blueprint for Baltimore’s Future. It was a two-part, two-booklet title (pictured), one bound in a green cover, the other blue. They were handed out far and wide during the last weeks of the 1999 campaign. O’Malley dubbed them collectively as “my epistle” or “my book,” and separately as “the Green Book” and “the Blue Book.”

Today, With Change There Is Hope represents a sweeping archive of O’Malley’s promises to voters. In politics, that’s a contract, a document that sets down what’s expected of the victor in return for votes. There is no penalty for failing to uphold the contract, but when its terms aren’t met, elections–such as the gubernatorial one that will decide between Democrat O’Malley, Republican incumbent Robert Ehrlich, and Green Party candidate Ed Boyd on Nov. 7–can result either in punishment or forgiveness.

Baltimore’s voters held up their end of the bargain with O’Malley when they first backed him seven years ago. O’Malley was expected to deliver–a lot. He’d set his plan down in the 40-page Green Book, which focused on crime reduction, and the 80-page Blue Book, which covered everything else–and how all of it is tied to the crime rate. Those who supported O’Malley’s re-election in the 2004 election did so despite the fact that many of his pledges remained unmet. Now, joined by voters in the rest of the state, they will decide whether to back him again in his bid for governor. O’Malley still owes Baltimore. If he wins the election, he’ll be expected to pay it back from the statehouse. If he loses, he’ll work off his debt at City Hall.

O’Malley focuses on the debt paid, not the debt remaining, as he makes the campaign rounds for governor. He has plenty of accomplishments with which to fill speeches. The main one, perhaps, was described in an Oct. 5 speech at the Johns Hopkins University Bloomberg School of Public Health: “Instead of wallowing in a culture of failure and excuses, we came together to take on the tough challenges and made progress.”

Running to replace Ehrlich this year, O’Malley recites a concisely packaged 10-point plan instead of handing out lengthy manifestos. Copies of With Change There Is Hope are hard to come by today. They are not available online. Google its title with the word “Baltimore,” and all that comes up is a link to City Paper‘s 2002 Best of Baltimore “Best Scandal: Police Corruption” blurb. But O’Malley’s 7-year-old collection of green and blue IOUs remains in the archives of history, ready to be dusted off once again.

“My approach as mayor will focus on two basic concepts–urgency and accountability,” he wrote in the Blue Book’s conclusion, after setting the bar for his own performance. He wanted change, urgently, and change came after he became mayor. But it often came not as promised, or sometimes not at all. That’s not surprising, given O’Malley’s great expectations. Urgency is hard to measure (he certainly seemed urgent), but accountability is O’Malley’s middle name. Now he’s accountable for how things changed, or have not.

Just as the mayor’s CitiStat program tries to keep city agencies on their toes by measuring government activities, journalists can apply statistical yardsticks to O’Malley’s promises. There are two sources of information for this exercise: what O’Malley said would happen, and what happened according to the numbers and known circumstances. (Numerous phone messages and e-mails to the mayor’s communications director, Steve Kearney, and O’Malley spokespersons Rick Abbruzzese and Raquel Guillory, were not returned.) Given the vast landscape of his panoramic vision for Baltimore in With Change There Is Hope, it’s best to begin by concentrating, as O’Malley did when he first ran for mayor, on a single issue: crime, and how everything hinges on it.

 

O’Malley’s June 23, 1999, mayoral campaign announcement speech, delivered at the corner of Harford Road and the Alameda, drew a small crowd. He made up for the lack of attention by using the speech’s text as the Green Book’s opener: “My name is Martin O’Malley. I believe I can turn this city around by making it a safer place, and I mean to begin doing it now.”

First, though, O’Malley had to get elected, and right off the bat his credibility was questioned. He told a story in the speech about having been to the same corner the previous midnight, when he was approached by a drug dealer, who asked, “What do you want?” The exchange gave O’Malley a rhetorical hook for his announcement.

“That’s a question,” the would-be mayor said to 30 or so supporters gathered to hear his speech, “that each of us in this city needs to answer in this important election year.”

Sun columnist Dan Rodricks suspected the hook was hogwash and immediately got on the case. Rodricks visited the neighborhood and found a resident who said that Harford Road and the Alameda is not a drug corner, but a “hackin’ corner” where “guys hang out lookin’ for rides.” O’Malley told Rodricks “it’s no big deal,” and explained that the guy on the corner who gave him his “What do you want?” line for the speech “was doing that hand motion they do when the markets open. It’s a notorious corner. That’s what they do there.” But, Rodricks reported, O’Malley “can’t say for sure that the young guy wanted to sell him drugs. It’s a hunch.” The columnist gave O’Malley’s poetic license its propers: “Good stuff, councilman. Even without that Monday-midnight story.”

O’Malley is prone to hunches, and has thus far benefited from people forgiving him when they don’t pan out. His main hunch as a councilman with mayoral ambitions was that if you solve the crime problem, everything else will fall into place. From O’Malley’s perspective, the revival of schools, housing, health, jobs, population, investment, tax revenues, the real-estate market–in short, all that makes cities tick–depended on public safety, government’s primary responsibility. He waxed on this theme in the Green Book, asking voters to “Imagine how quickly our great City will come back to life when we get hold of public safety and start closing down our expanding drug markets.” He pointed to other cities, such as New York, as crime-fighting models and suggested we simply copy what worked elsewhere.

In a 1999 phone interview about his crime plan, O’Malley was emphatic. “There is no way to create jobs or to improve the business environment if the only businesses expanding are these open-air drug markets. So that’s first and foremost,” he asserted. “It affects everything.” He went on to spell out his policing strategy, which had various names: “quality of life,” “zero tolerance,” and “broken windows.” The idea, he said, was to “improve the reality of public safety” by “changing enforcement priorities, by redefining the mission of the police as restoring public order on our corners and improving quality of life on our corners. When you do that the bigger crimes become easier to solve and easier to deter, and you drive the drug markets indoors, which drives down the random violence that is inflating our numbers to be some of the worst in the nation.”

At O’Malley’s announcement, he called the corner where he was standing an “open-air drug market,” and promised within six months to make it and nine others like it “things of our city’s past.” He added that “in the second year, 20 more open-air drug markets will likewise be shut down, and thus will the people of this city easily measure our success or failure.”

After six months in office, in a letter to The Sun, the mayor explained that he’d taken care of the 10 drug corners. And he described how it had happened: Police, city inspectors, and public-works crews had tidied them up, pronto. It was that easy.

The two-year mark in 2002, by which time O’Malley promised 20 more cleaned-up corners came and went without fanfare. As 2003 began, public frustration about the continuing crime problem was evident.

“We still have open-air drug markets on our corners,” City Councilman Bernard “Jack” Young (D-12th District)–usually, like most members of the council, an O’Malley ally–told the Baltimore Afro American in late January 2003. “Point-blank, nothing’s changed. We’re paying all of this overtime to the police. Where is the change?” O’Malley’s hunch was being called into question.

The experience of crime in Baltimore neighborhoods is as varied as the neighborhoods themselves. What feels to many like improvements under Mayor O’Malley–seemingly safer and clearly more prosperous communities around the waterfront, along the north-south axis of Charles Street, along the Northeast Baltimore thoroughfares of Belair and Harford roads, and in certain other key neighborhoods like Hampden–feels to others like it’s not happening in their neighborhoods. Because the improvements are concentrated in waterfront neighborhoods and the central north-south spine of the city, they are more evident than the sluggish expanses of the east and west sides, where change has come more slowly, if at all.

With or without dramatic crime reductions, though, the city has been rebounding in many ways, and O’Malley’s re-election in 2004 affirmed and affixed the notion that he was doing alright as mayor. Many understood that he would soon run for governor. Once he announced his candidacy for state office, O’Malley’s record as mayor became Republicans’ main message when promoting Ehrlich. They can do that because O’Malley’s hunch hasn’t worked itself out yet.

Page25-2

If O’Malley was wrong about crime being the foremost determinant of the city’s fortunes, then there’s room for forgiveness. Crime in many ways has trended downward, particularly in some parts of the city and for some types of crime. But low interest rates, not reduced bloodshed, likely had more to do with the city’s improved performance under O’Malley.

In the Blue Book, O’Malley noted that in 1999 “City houses fetch roughly one half of what they do in Baltimore County,” because of the prevalence of crime in the city. Since 1999, “thanks to reductions in crime and increased investment in the city, average home values in Baltimore have risen 120%,” according to O’Malley’s campaign web site.

Crime reductions may have helped, but the key factor was the residential real-estate market boom created by historically low interest rates and rising demand. The 2004 median sales price for a Baltimore single-family home was $130,500, compared to $215,000 in Baltimore County. Thus, instead of city houses selling for half the value of county houses, under O’Malley they began selling at about 60 percent of what county houses get. The value of city single-family homes gained slightly more than 35 percent between 2002 and 2004, an amount a tad higher than in Baltimore County.

Real-estate values and tax revenues tend to rise and fall together, and they both jumped under O’Malley, as expected during times of cheap money. In 2000, city revenues stood at about $1.4 billion. In 2004, they broke $2 billion, and stood at $2.1 billion in 2005. Increasing real-estate values helped a lot on the property-tax front, aided by new taxes instituted by O’Malley.

The level of private investment in the city, likewise, has increased substantially. Little scaffolding and few cranes were part of Baltimore’s streetscape in the 1990s, but they are common sights today. The O’Malley administration says the value of development activity under way in 2005 was estimated to be $2 billion, whereas ongoing projects in 2000 added up to a little less than $900 million.

O’Malley’s gubernatorial campaign biography states that, as mayor, he has “promoted job growth by attracting over $10 billion in economic development” and “nearly ended Baltimore’s decades-long population loss.” But jobs and population declined in the city, and unemployment rose from 5.9 percent in 2000 to 7.1 percent in 2005. Job loss from 1999 to ’04 hit Baltimore hard, taking away about 40,000 jobs–the most among Maryland’s 24 jurisdictions, as was the city’s loss of about 15,000 residents from 2000 to ’05. A 2002 U.S. Census snapshot of the city’s unemployment situation pointed out key disparities: While the overall unemployment rate was 6.8 percent, white men were at 2.1 percent and black men at 11.8 percent. The city made the top-10 list in the country for average weekly wage growth in 2005, but at the same time lost more jobs–5,800–than almost all of the 323 large cities and counties studied. While the city’s employment outlook hits some harder than others, the jobs that remain are paying better, and the loss of jobs went along with ongoing loss in population.

The jobs lost under O’Malley came on the heels of all the jobs lost before him. In the Blue Book, O’Malley painted a bleak picture of the Kurt Schmoke years, describing job declines in manufacturing, transportation, retail, banking, and hospitals. The situation hardly improved after O’Malley was elected. Between 2001 and ’04, Baltimore lost nearly 5 percent of its jobs. A quarter of its manufacturing jobs, 15 percent of its banking and finance jobs, 5 percent of its retail jobs–all disappeared in a four-year span. The drop in public employment was pronounced, especially local government jobs, which fell by nearly 4,000 positions, more than 12 percent. Only three sectors posted major job gains: hospitals, educational services, and the hotel and restaurant industry.

Under Mayor Schmoke, the city lost an average of 722 jobs per month, O’Malley calculated in the Blue Book. Between 2001 and ’04 under O’Malley, the city lost an average of 432 jobs per month. That’s a dramatic improvement, but it is still a drastic rate of job loss–especially when the surrounding counties are alive with job growth. The Blue Book pointed out that the surrounding counties posted a gain of 104,000 jobs when Schmoke was mayor, an average of 963 new jobs each month. Between 2001 and ’04, with O’Malley as mayor, the surrounding counties added nearly 63,500 new jobs, an average of 1,322 jobs per month.

Thus, while the city’s job loss has slowed under O’Malley, it has not reversed, as O’Malley predicted. And the surrounding counties’ job growth accelerated by about 40 percent. Baltimore remains the hole in the doughnut of regional employment trends.

The public schools, well, they’re still a mess, but there are bright spots. As the city’s population declines, so does school enrollment–by an average of 2,900 students per year since O’Malley became mayor, bringing the total down to about 85,000. While some of the trends in standardized test scores are good, many others are not. Graduation rates are up for seniors getting a regular education, but down dramatically for the increasing share of students in special education. The money spent to achieve these results has increased dramatically on a cost-per-student basis, and has been the target of near-permanent scandal over the school system’s financial accountability.

In the Blue Book, O’Malley reported that in 1997 only 16.6 percent of third-graders’ scores were “satisfactory” under the state reading tests. This statistic is recited again on O’Malley’s campaign web site, and updated with the claim that O’Malley “helped 61% of the third graders meet those state standards last year.” The standardized tests were changed in 2002. Under the new ones, the percent of third-graders with “proficient” reading scores has risen annually, from 38 percent in 2003 to 59 percent in ’06, when the statewide scores had risen from 50 percent to 63 percent. The same happened with third-grade math scores, with the percent of proficient third-graders rising to 52 today from 40 in 2003, when the statewide scores had jumped only four points, from 50 to 54. That’s some of the good news.

Some of the bad news is that only 2 percent of special-education high-school students passed the high-school English standardized test in 2005. That 2.1 percent passed in 2006 is nothing to brag about, since it indicates that students in the city’s large special-education program don’t have much of an education to look forward to.

As students continue in school, their improved scores in earlier grades should be reflected in improvements as they reach higher grades. In some cases, this has happened, but not in others. The third-grade class of 2004, for instance, was tested again as fifth-graders this year, when its proficiency in math and reading both were significantly higher than those of prior fifth-grade classes. But the sixth-grade class of 2004, which was entering first grade when O’Malley was elected mayor, is another story. When the class reached eighth-grade this year, its share of students scoring proficiently dropped in both math and reading compared to its sixth-grade scores.

O’Malley’s Blue Book measured city schools’ graduation rates harshly, saying that “only 25 percent of ninth graders . . . ever graduate. This is unacceptable.” The percent of regular-education 12th-graders graduating is rising, from 58 percent in 2002 to 64 percent today. But the drop in the share of special-education 12th-graders graduating went from 65 percent in 2002 to 35 percent today.

When running for mayor, O’Malley’s intentions about special education were clear: He wanted significant improvements, and a reduction in the size of the program. He said that, at the time, 18 percent of the student population was enrolled in special education, and he wanted that number to drop to 13. By 2000, it had dropped to 17 percent, which is where it remained in 2005. Meanwhile, by O’Malley’s figures from his first mayoral campaign, the cost of educating each special-education student per year was $9,680. Since then, it has increased by a fifth, and stands at $11,722 per student.

In his governor’s campaign biography, O’Malley expresses pride in city schools, claiming that “for the past three years, elementary school students have posted higher scores in reading, language arts, and mathematics at every grade level.” That’s an accomplishment that would make any mayor proud. But O’Malley, by law, does not control the city school system. As mayor, he is an equal partner with the state in its success or failure–an equal partner with the government headed by his gubernatorial opponent, Robert Ehrlich. “Our children should not suffer due to adult disagreements,” O’Malley wrote in the Blue Book. “In the future, Baltimore should, once again, take greater responsibility for our school system. But we also must build continually on the partnership we have established with Annapolis–it is in the best interest of our children.”

The city-state partnership has suffered from scandal after scandal arising from lack of accountability in recent years, leaving the city school system in such a shambles that it is surprising some children are able to learn adequately. Neither the city nor the state has stepped up to take unilateral responsibility, though their collective responsibility is there for all to see. O’Malley takes credit for the good where he can–with some improved test scores in some grades–and, either as governor or as mayor, may be in a position to do more for at least a couple more years. But he’ll also have to live with the bad, until the system gets fixed.

Page26

Baltimore under O’Malley is a mixed bag of results, and it’s hard to say changes in the crime rate made it so. By the raw numbers, though, Baltimore is safer now than when O’Malley started. In the first six months of 2000, when he was working off his obligation to clear the 10 corners, the city logged 141 murders, 161 rapes, 3,010 robberies, and 4,530 aggravated assaults, including 700 nonfatal shootings. In 2005, the totals from January to June were much rosier. Murder was down 3 percent, rape had dropped by more than half, robbery saw a 40 percent reduction, and aggravated assaults were reduced nearly a quarter, including a near 30 percent drop in shootings. The same number of under-18-year-olds–47–were murdered in 2002 as were in 1996, but in the first 10 months of this year 22 kids were killed, and all of last year saw only 14 juvenile homicides, so the situation appears to be getting less bloody for Baltimore’s teens.

Yet, despite these numbers and O’Malley’s optimism and declarations of success, frustrations and distrust about the prevalence of crime abound. Some of O’Malley’s crime numbers remain under the pall of a state effort to audit his numbers this year, an effort that the mayor rebuffed. And O’Malley’s earlier use of an audit of the 1999 figures to establish the baseline for his claims of crime reduction has been called into question.

O’Malley’s handpicked benchmarks in the Green Book set a high bar, and, although he didn’t meet many of them, they often moved in the direction he promised. His Green Book said public-safety improvements in the first two years of the O’Malley administration, for instance, should reflect New York’s as it first adopted quality-of-life policing under Mayor Rudolph Giuliani in the mid-1990s. When Giuliani was first starting out, murder went down 40 percent, robbery 30 percent, burglary a quarter, and rape by 8 percent, according to the Green Book’s figures.

By three of these measures, O’Malley fell short. His first two years saw nearly a fifth fewer murders and burglaries, and a quarter fewer robberies–all smaller drops than what Giuliani delivered. (Given the doubts about the Baltimore’s 1999 crime numbers, 1998 was used as the base year for this analysis, giving O’Malley three years to accomplish what Giuliani did in two.) But on the fourth category, rape, O’Malley achieved a reduction of about 40 percent, more than five times larger than New York’s. Rape later became a category of crime suspected in 2003 of being under-reported by Baltimore police, and, after an audit, a 15 percent upward correction in the 2002 numbers was ordered.

O’Malley’s second-guessed crime numbers have historical poignancy. When he was a councilman, O’Malley made a name for himself by proving that then-Mayor Schmoke’s police department was cooking its books to augment its mid-1990s crime-reduction claims. Today’s data-accuracy doubts suggest that perhaps O’Malley’s police department somehow has been aping the bad behavior of Schmoke’s department, though hard evidence of this has yet to arrive. Pending future findings, which themselves may end up subject to charges of inaccuracy, the numbers O’Malley’s police department reported to the FBI are the best available data about Baltimore crime.

The raw numbers about crime reduction that O’Malley likes to cite, though, tend not to take into account the decline in the city’s population. Do so, and Baltimore’s murder rate goes from 40.3 murders for every 100,000 residents in 2000 to 42 in 2005. Thus, it makes sense that many people believe Baltimore remains as murderous as it was before O’Malley became mayor–because Baltimore was, in fact, a bit more murderous, per capita, in 2005 than it was in 2000.

O’Malley pledged in the Green Book to make Baltimore a lot less murderous, by taking the toll down to 175 homicides in 2002. This bold goal helped him get elected 1999, when there were 305 murders. But when 2002 closed out, there were 78 more homicides than he’d promised. Boston, a city of a little less than 600,000 people, and one which the Green Book points to as a model for Baltimore to follow, had 60 murders that year, by way of comparison.

Baltimore’s crime rates look bad when compared to other large U.S. cities, and the numbers hardly improved from 2000 to 2005. After five years of O’Malley, there were 17.6 violent crimes for every 1,000 Baltimore residents in 2005, nearly 80 percent more than the big-city average. In 2000, as in 2005, the city’s murder rate was nearly three times higher than the average for cities of between a half-million and a million people. Robberies in 2000 were 2.6 times more common in Baltimore than in other large cities, and aggravated assaults (including shootings) were 2.2 times more prevalent. Five years into the O’Malley administration, the violence had fallen off, but still occurred at nearly double the rates in other large cities.

In With Change There Is Hope, O’Malley observed that “Baltimore is today the fourth deadliest city in the nation, and the city’s murder rate is seven times higher than in the average city.” Time hasn’t changed much in that regard. In 2005, Baltimore’s murder rate was still seven times the average for U.S. cities. In the 2005 Detroit mayoral race, the fact that only Baltimore had a higher murder rate than Detroit was put in play on the campaign trail. This year, in a ranking against 31 other cities with populations over a half-million, Baltimore was second most dangerous, with Detroit earning the top dishonor.

Where violence is concentrated is where the greatest crime reductions are possible. Traditionally in contemporary Baltimore, the brunt of the violence has disproportionately fallen on the Eastern and Western police districts, compared to the other seven districts. After a period of increasing violence in O’Malley’s first term, it is here, in the Eastern and Western districts, where crime numbers show improvements–fulfilling some of the expectations O’Malley created.

From 1999 to ’02, the share of the citywide homicides happening in the Eastern and Western districts rose from nearly 30 percent to more than 40 percent. Murders were dropping in the city (from 305 in 1999 to 253 in 2002), yet these two districts were showing substantial increases in their body count. That’s now changed. In 2005, the Eastern and Western’s combined tally had dropped 30 percent from 2002’s level, while the rest of the city’s homicides had jumped up a quarter. The burden is shared now by four other districts–the Southern, Southwestern, Northern, and Southeastern–joining the Western with more murders in 2005 than they’d had in 1999.

The recent geographical shift in Baltimore homicides suggests O’Malley in some ways is starting to mirror Giuliani’s 1990s crime-fighting success in New York. In 1999, just before O’Malley declared for mayor, the New Republic ran a cover story on Giuliani that examined an important trend in the Big Apple’s crime reduction: The sharpest crime drops were seen in the area’s that needed them the most. Harlem’s crime fell 61 percent between 1994 and ’98, for example, and East New York’s murders went from 110 in 1993 to 37 in ’98. Similarly, in Baltimore, the Eastern and Western police districts have recently shown substantial improvements, although several other districts have experienced increases in crime.

Overall, though, the picture on the crime front is pretty bleak compared to O’Malley’s expectations and how it compares to the rest of urban America. “With public will, energy and political leadership,” O’Malley wrote in the Blue Book in 1999, “Baltimore will join the ranks of America’s great rejuvenated cities that are growing safer, larger, and more diverse . . . That is my pledge.” Now it’s seven years later, and Baltimore continues to earn its title as one of the most violent cities in America.

Page27

Unlike his crime figures, O’Malley’s budget figures aren’t a matter for debate. In the Green Book, O’Malley indicated that the added cost of his crime plan was, well, nothing, or not much more. “The real solution in Baltimore is not to double size of the broken system,” he wrote about the police department, “but to implement the simple procedural reforms that will make greater use of the substantial resources already in place.” And in the 1999 phone interview, he said crime reductions under his watch would cover the reform costs, explaining that he planned to “increase city revenues by making this city a dramatically safer place quickly, and thereby reversing our loss of population.” He predicted that crime reduction would pay for everything, and then he pulled a George Bush I, promising that “I am dead-set opposed to raising taxes.”

The upshot from the police budget trends is this: a growing proportion of cops at desks, costing a larger amount of money. The department’s budget went up 25 percent from 2002 to ’07, the current fiscal year. Two parts of the departmental budget went up more than 100 percent: Administrative Direction and Control jumped from to $15.5 million to $32 million, while money for the Office of Criminal Justice Policy more than tripled, from $3.5 million to $12 million. Together, the administrative and policy slices of the police pie grew from 7 to 13 percent, while all other parts of the department saw their slices shrink. Though the overall budget went up, department-wide staffing levels dropped by nearly 5 percent from 2002 to today. Administrative staffing jumped nearly 8 percent–the only kind of police staffing that grew. Yet O’Malley’s campaign web site states that he “put more cops on the streets as part of a comprehensive plan to reduce crime.”

The five-year growth of the police budget wasn’t paid for with revenue resulting from an increased city population, as O’Malley had predicted. Population continued to fall, though more slowly. Rather, money was available to expand the police budget because of rising real-estate values and the mayor’s new taxes on energy, cell phones, and real-estate transactions, O’Malley’s prior no-new-taxes pledge notwithstanding. Because of the additional revenues, he was able to keep some promises.

O’Malley vowed in the Green Book to increase funding for the State’s Attorney’s Office “as long as it stays committed to the path of reform, and committed to keeping repeat violent offenders off the street.” The city’s contribution to State’s Attorney Patricia Jessamy’s office has been boosted from $21.6 million in 2002 to $30.4 million today, a more than 40 percent raise that has allowed staffing levels for prosecutions to increase by 55 positions.

The mayor has been true to drug treatment, too. “Since 1996, annual funding for drug treatment in Baltimore has doubled from $16.5 million to $33 million,” O’Malley wrote in the Green Book, indicating this is a positive trend he’d like to continue. And he has. Drug treatment funding under O’Malley increased to $53 million in 2005.

Teen motherhood and other health indicators affect crime trends over the long term, and O’Malley aimed to oversee their decline. He pointed out that in 1997 “nearly 10 percent” of city girls aged 15 to 19 had babies. There was a steep decline after O’Malley took office, and in 2004 the proportion of girls that age who had babies was 6.8 percent. He wanted infant mortality to decline, reporting that the city in 1997 lost newborns at a rate of 14.4 babies per 1,000 live births, “nearly double the state’s rate,” he wrote. It dropped significantly. In 2005, the infant mortality rate had declined to 11.3, half again as high as the state’s.

O’Malley pointed out in the Green Book–as Jay Leno was saying, too, on The Tonight Show at the time–that Baltimore is “the syphilis capital of the United States.” As O’Malley wrote those words, the syphilis rate was in steep decline. In 1999, Indianapolis became the syphilis capital, after Baltimore’s rate had dropped 45 percent in one year. In 2002, Baltimore was ranked 11th among U.S. cities, with an incidence rate of 18.6 cases per 100,000 people. That year, 120 cases were reported. But the disease jumped sharply in 2004, when 209 cases were reported for a rate of 33.2, placing Baltimore third in the nation, behind San Francisco and Atlanta.

Two other sexually transmissible diseases were mentioned in O’Malley’s book, gonorrhea and chlamydia. Baltimore “is rated number two in the U.S. for active cases of gonorrhea,” he wrote at the time. It has dropped significantly since then, but Baltimore was still the fourth-highest city on the list for active cases of gonorrhea in 2004, the most recent ranking available. When O’Malley sought to become mayor, he explained that Baltimore’s national rank was “third for active cases of chlamydia.” The city’s chlamydia rate has actually risen significantly since then, yet its national ranking dropped to seventh highest–an improvement, of sorts.

O’Malley recently summed up his disease-fighting record much more succinctly, and no less truthfully: “Syphillis [sic] is down 75% since 1997 and Gonorrhea is down 45% since 1995.” These surgically selected statistics are posted, along with the rest of O’Malley’s Oct. 5 Hopkins speech, on his campaign web site (www.martinomalley.com).

Baltimore’s improved status on drug-related emergency-room visits, an important indicator of drug abuse, is impressive, but still marginal in the national context. In 1999, O’Malley wrote that Baltimore is “rated number one in the nation for hospital emergency room admissions involving substance abuse.” In 2005, it was tied with New York and Boston for third in the nation.

Page28

But O’Malley failed on some important other promises, such as the one about reducing the need to arrest people. The Green Book was adamant about giving police expanded power to issue civil citations for minor crimes, which was expected to free the courts of petty cases. “Through the use of citations–which make fewer arrests necessary–and courthouse reforms that keep innocent people and minor criminals from languishing in jail for weeks before trial,” O’Malley predicted that “fewer people may actually be locked up using quality-of-life policing strategies.” At the very least, he promised that “quality-of-life policing does not mean arresting and locking up our city’s young men indiscriminately.”

Under Schmoke, there had been 70,000 arrests in 1997 and 85,000 in 1998. After several years of quality-of-life police work, in 2004 O’Malley’s expanded civil-citation powers were put in place. In 2005, city police logged around 100,000 arrests. In 2006, the city was sued by the American Civil Liberties Union and the National Association for the Advancement of Colored People, who raised charges of widespread indiscriminate arrests. So much for the less-arrests theory of zero-tolerance policing.

O’Malley’s record on police corruption and misconduct has a level of intrigue appropriate to the cloak-and-dagger milieu of internal investigations. His campaign pledges on the issue were zealous. “We know,” he wrote in the Green Book, “that when the police are encouraged to be more assertive, government must become more assertive and open in its policing of the police.” He’d been complaining about police corruption and misconduct under Schmoke’s commissioners for years, and yet “our problem has only gotten worse,” he insisted, adding that “There is nothing more harmful to effective law enforcement, and more devastating to the morale of law-abiding citizens and law enforcement officers, than police misconduct.”

To fight it, O’Malley pledged in the Green Book to “open the Police Department’s internal investigation process, to assure the public that police problems are not being swept under the rug by colleagues’ complicity.”

Immediately after gaining City Hall, O’Malley asked outside consultants to look at the department’s problems. Among their tasks was a survey of police personnel about street-level corruption, which showed that 23 percent of the department believed that more than a quarter of its officers were “involved in stealing money or drugs from drug dealers.” The survey put numbers on the idea that the Baltimore police had a corruption problem.

And yet nothing much happened. Not for years. There were two corruption arrests that didn’t pan out. The case against officer Brian Sewell, suspected in 2000 of planting drugs on an innocent suspect, became suspicious when police evidence against him disappeared during a break-in at internal investigators’ offices, and the charges were dropped by prosecutors in 2001. Officer Jacqueline Folio, accused of a false drug arrest, was found not guilty in a 2003 criminal trial, and the department’s administrative case against her was so full of exculpatory evidence and apparent attempts at cover-ups that she was cleared entirely–and settled her own lawsuit against the city over the whole, career-ending episode. At the end of 2003, police said they had conducted 202 “random integrity tests” to catch bad cops since 2000, yet the only cops nabbed were Sewell and Folio.

The quiet continued. In early January of this year, The Washington Post reported that O’Malley had been booed at a legislative hearing over his department’s high volume of arrests, and that the mayor countered that aggressive arrests would be reflected in increased misconduct complaints, which were down. He was soon to lose the use of that argument at hearings, for 2006 quickly became a memorable year in the annals of Baltimore police misbehavior.

Two days after the legislative hearing, on Jan. 6, a city grand jury charged three officers with rape, unearthing evidence that their undercover squad was corrupt in other ways as well. In April, a federal jury convicted two Baltimore police detectives for robbing drug dealers, a city grand jury charged an officer with stealing rims off a car belonging to an arrested citizen, and an officer caught a gambling conviction. In July, two officers were charged in Baltimore County in separate crimes–fraud and theft in one case, and burglary and stalking in the other. And in August, a Baltimore officer was charged with identity theft in Pennsylvania.

As a councilman and mayoral candidate, O’Malley was passionate about the idea that the police department needed a housecleaning. Police officers “after all are only human,” he said in the 1999 phone interview, so they must be policed “to insure that temptation, unchecked anger, and prejudice do not tarnish the moral authority necessary for a police department to effectively perform its job.” After five years of relative quiet punctuated by weak corruption cases under O’Malley, what he predicted in 1999–“well publicized arrests of clusters of officers who are lured away by the easy money and lucrative money of the drug trade,” as he put it in a 1999 phone interview–is finally coming true.

 

The Green Book set down an anecdote about Schmoke’s police commissioner Thomas Frazier coming before the City Council in September 1996, on the heels of councilman O’Malley’s return from New York to study its policing strategies. “You don’t have to tell me about zero tolerance. I know what they do in New York,” Frazier was quoted as saying. “They’re doing the same thing I started doing here with Greenmount Avenue–close down the open-air drug markets, drive them indoors, and you reduce the violence. . . . I have to be a team player. When we start closing down the open-air drug markets, the judges complain that we’re crowding their courts and the Mayor makes me back off. . . . Tell the judges. I’m only one piece of this criminal justice system.”

And so is Mayor O’Malley only one piece of the city’s public-safety complex, though you’d never know that from reading the Green Book. To get elected, he made it seem like he was a one-man crime-fighting machine, that all he had to do was hire a police commissioner to deploy known policing strategies proven successful in other cities, and it would all fall in place–an instant urban revival. It’s doubtful any mayor could have met the expectations O’Malley set for himself, much less one who hasn’t gone through four police commissioners and three interim commissioners the way O’Malley has. Still, he scored points for seeming to try and for being in power when interest rates dropped. This Nov. 7, the state’s voters will decide whether he tried hard enough. Either way, he still owes.

Room Service: Morgan student charged after heroin “pellets” found in Marriott Waterfront Hotel

By Van Smith

Published in City Paper, Mar. 25, 2009

mobs-1

To hear his attorney tell it, Edward Aboagye is an immigrant success story. The slight, bespectacled 27-year-old Morgan State University senior, majoring in finance and accounting, came to the United States from Ghana nine years ago, and married in 2005. The Laurel couple became the parents of twins in January. He’s a resident alien with a green card who owns a lawfully obtained handgun and a car-dealing business in Pigtown. He has no prior record of criminal behavior.

But according to U.S. Attorney Albert David Copperthite, Aboagye is believed to be part of a heroin-smuggling conspiracy that used a courier to swallow five “pellets” of the drug, which were delivered on March 14 “by natural processes” to co-conspirators at a Marriott Waterfront Hotel room (pictured) rented by Aboagye.

In all, the hotel housekeeping crew found a half-kilogram of heroin worth about $45,000 in Aboagye’s room safe and $6,200 in cash behind the counter in the bathroom. Another $4,900 was recovered from a jacket and a purse. A later search of Aboagye’s Pigtown business address turned up more heroin, some marijuana, a .40-caliber pistol registered to Aboagye, and 28 bullets in two magazines.

In open court on March 19, Aboagye’s attorney, Ivan Bates, tells U.S. District Court judge Paul Grimm that his client is not someone who should be locked up pending trial on federal drug-conspiracy charges.

“He’s a family man that is trying to be a student,” Bates says, adding that aspects of the government’s case require a “leap and a stretch” to be believable.

“He leads two lives,” the prosecutor contends. One “with his wife and children in Laurel–and they don’t know what he’s doing in Baltimore.”

Noting that the government’s contentions are as yet “untested,” and that the defense maintains that Aboagye was at the hotel “to sell a man a car”–not to engage in a drug transaction–Judge Grimm allows Aboagye to be on monitored home detention with $50,000 in unsecured bond put up by his wife.

“There are a number of factual matters that [Aboagye] intends to challenge at trial,” the judge notes.

Another Ghanian living in Elizabeth, N.J., Mohammed Marga, also was charged in the conspiracy with Aboagye. Both, according to the charging papers, were interviewed by law enforcers after their arrests, as was a woman–20-year-old Stanina Akonnor–who was initially detained with them, but later released without charges.

Whereas Aboagye denied knowledge of the recovered heroin and money, and claimed he was at the hotel to conduct a car sale, Marga told investigators that he met with Aboagye at the hotel room, where Aboagye told him to call a man named Malik to arrange a heroin sale. On March 13, Marga says, Aboagye drove him to meet and set up the transaction with Malik, who Marga described as a stocky, dreadlocked black male, about 5 feet 9 inches, driving a black Range Rover.

Once the two were arrested the next day, though, the alleged drug deal never went through. Malik was displeased, as was evident from a voicemail he left on Marga’s phone. The voicemail, the charging papers contend, “showed that Malik was upset that they did not show up to deliver the heroin and did not call him to let him know what was going on. Additionally, Malik said that he was not going to deal with them anymore.”

Aboagye’s Baltimore car business, Asco Global Company LLC, is based at 824 Washington Blvd. Its incorporation papers describe it as a “wholesale automobile/vehicle dealer” also engaged in the “import and export of general goods.” At 3:13 a.m. on Jan. 22, Aboagye was clocked by police in Howard County going 85 miles per hour in a 1991 Acura with Pennsylvania plates, heading south on I-95. He is scheduled for a March 25 trial on the resulting speeding ticket.

The Marriott Waterfront’s director of sales and marketing, Rob McCulloch, tells City Paper the hotel does “not have any official comment” on the incident. When asked if large amounts of heroin had been found at the hotel before, McCulloch says, “Not that I’m aware of.”

Straight Outta Accra: West Africa looms large in Baltimore heroin-trafficking cases

By Van Smith

Published in City Paper, May 23, 2012

Unknown-2

Last April, thousands of miles from Baltimore in the West African country of Ghana, a man known as “Wagba” got on the phone and mediated a Baltimore heroin-dealing dispute.

Nana Boateng, who supplied Baltimore dealers with heroin shipped under Wagba’s direction by couriers traveling to the United States on commercial flights leaving West Africa, was in a heated argument with another Ghanaian, Krist Koranteng, who also supplied Baltimore heroin dealers with courier-carried heroin from West Africa.

The two were threatening one another, with Koranteng saying he’d arrange for men to come from Ghana to kill Boateng if he didn’t pay up for short-changing Koranteng’s friend, Moses Appram, on a 200-gram heroin deal. Boateng, in response, vowed to come to Ghana and kill Koranteng himself.

Since Boateng’s phones were wiretapped as part of a U.S. Drug Enforcement Administration (DEA) investigation, his conversations with Wagba were recorded for posterity. As a result of the probe, Boateng, Koranteng, Appram, and three others were indicted last year in Maryland federal court for participating in a heroin conspiracy. All of them pleaded guilty except Appram, whose three-day trial in Baltimore’s federal courthouse ended on May 2 with a jury conviction. Koranteng testified as a government cooperator, and Wagba’s name, as well as the recorded, translated, and transcribed phone conversations he had with Boateng, came up often during the trial.

Ultimately, no one was killed or attacked as a result of the dispute, and Koranteng testified that he ended up taking the loss on Appram’s ill-fated deal with Boateng. But Wagba’s dealings with Boateng did not end there. In late May 2011, according to court documents, Wagba coordinated a courier shipment of heroin to Boateng, who waited for six hours at Washington Dulles International Airport as the courier, who was caught by law enforcers as she arrived with 3.3 kilograms of heroin in her luggage, was detained and questioned by authorities. At the agents’ direction, the courier called Wagba, who told her “someone would get back to her. Shortly thereafter, a call from Boateng was received” on the courier’s phone, the court documents state.

That a phantom, faraway figure like Wagba could play such an intimate role in Baltimore’s heroin trade, both by managing a street-level flap like Appram’s flimflamming at the hands of Boateng and by orchestrating a subsequent intercepted delivery, speaks volumes about how closely tied Baltimore’s heroin trade is to West Africa, even though the two are thousands of miles apart. And that Koranteng, who was in Ghana as he argued over the phone with Boateng, suggested he could send Ghanaian killers to do his dirty work in Baltimore further emphasizes how small a world the global heroin trade sometimes can be.

But when looked at from a broader perspective, the heroin trade involving West Africa can seem immense, complex, and highly geopolitical, since the region is considered by the United Nations, the United States and other countries, and an array of nongovernmental organizations to be currently one of the world’s foremost transshipment points for narcotics from Asia and Latin America.

The reason for this, DEA special agent Todd Edwards explained on the stand at Appram’s trial, is that it is “difficult” for producers to ship directly to the United States from the source countries—Afghanistan, Pakistan, Laos, Cambodia, Colombia, and Mexico—because “everyone knows” they are source countries, so law-enforcement scrutiny will be greater. Heroin producers, therefore, prefer to “go to other countries to have the heroin shipped to the U.S.,” Edwards continued, “and Africa is one of those places, and Ghana and Nigeria are two of the major ones.”

Thus, criminals in West Africa not only get lucrative narco-business serving the transportation needs of the world’s heroin producers; they may also become strategically important to the producer’s larger strategic agendas. And increasingly, the United States is presenting evidence that those agendas have turned West Africa into a key locale for terrorists’ drug-trafficking and money-laundering activities.

In 2009, the same year the DEA opened an office in Accra, Ghana, three al Qaeda-linked men from Mali were arrested in Ghana and charged by U.S. authorities with drug trafficking in aid of terrorism—the first use of a new federal law passed in 2006. West African drug trafficking is also implicated in two other terror-financing cases filed recently in New York, one involving the Taliban and the other Hezbollah, a militant Muslim group and political party based in Lebanon that the United States and a handful of other Western and Middle Eastern countries regard as a terrorist group.

The Taliban case, filed in February 2011, accuses seven men, two of them U.S. citizens, of conspiring to help the Afghan religious movement’s heroin- and cocaine-trafficking enterprises and to sell weapons, including surface-to-air missiles, that the Taliban would use to protect its heroin-processing facilities in Afghanistan from attacks by U.S. forces. The lead co-conspirator, Maroun Saade, is described in the indictment as a “narcotics trafficker operating in West Africa” who agreed to transport “multi-ton shipments of Taliban-owned heroin” to Ghana, where “portions of those shipments would be sent by commercial airplane to the United States to be sold for the financial benefit of the Taliban.” Saade and the others allegedly believed they were dealing with the Taliban, but in fact they were dealing with confidential sources working on behalf of the DEA.

The other case is a civil forfeiture suit in which the U.S. government seeks to take ownership of the assets of businesses and banks involved in an alleged half-billion-dollar drug-money-laundering scheme to aid Hezbollah.

The central drug-trafficking figure accused in the Hezbollah case is Ayman Joumaa, a Lebanese man who is currently a fugitive from U.S. justice in a Virginia federal case charging him with bringing 85,000 kilograms of cocaine into the United States and laundering more than $850 million in Mexican drug-cartel money. Saade, from the Taliban case, also figures in this case, allegedly helping to move laundered cash derived from used-car sales in West Africa to Lebanon.

Though no prosecution brought so far in Maryland has drawn connections between Baltimore heroin dealers and West Africans tied to terrorism, the Hezbollah forfeiture case in New York includes two Maryland car dealers—one in Columbia, the other in Burtonsville, a small Montgomery County town of about 10,000 people, near Laurel—whose assets are being targeted for forfeiture because of evidence they helped launder Hezbollah drug money by accepting millions of dollars in wire transfers to buy cars and ship them to West Africa, where they were sold for cash bound for Lebanon.

In essence, the 65-page Hezbollah complaint describes an alleged scheme in which drug-derived cash was temporarily converted into cars. This would eliminate the risks of detection and headaches of shipping bulk cash back across the Atlantic Ocean to West Africa. Once the cars arrive there, though, they can quickly be converted back to cash—with a profit margin, given the higher prices the cars fetch in West Africa.

Both Appram and Koranteng were in the cars-to-West-Africa business, according to evidence in Appram’s trial. So were other co-conspirators who testified at Appram’s trial, as well as defendants in several other Maryland cases involving heroin from West Africa. In each instance, there is nothing to suggest the car-shipping enterprises were anything but legitimate. The coincidence is striking, however—especially in light of the fact that Appram and Koranteng are both residents of Burtonsville, where one of the car dealers with alleged Hezbollah ties is located.

IMG_7512

Though heroin comes almost entirely from poppies grown in Asia and South America, as special agent Edwards explained during Appram’s trial, criminal trade routes of varying geography and sophistication convey it across the world. Judging by the Appram case, and numerous other recent cases in federal court here and in Virginia, law enforcers are mounting a sustained, multi-front assault on the West African route to Baltimore, especially through Ghana and Nigeria.

Commercial-air travelers entering the United States from West Africa as paid heroin couriers are a key element of the supply chain, court records show. With practice, so-called “internal smugglers” ingest “pellets”—finger-sized, egg-shaped packages of heroin—in seemingly impossible numbers. Adding to the flow are couriers who pack heroin not in their stomachs, but in their luggage, clothing, or wigs.

How much of this heroin smuggled from West Africa is bound for Baltimore’s streets is hard to say, but judging from the pace and scope of recent prosecutions, it’s significant. Here’s a chronological sampling:

Edward Aboagye, a Baltimore-based Ghanaian car dealer who exported vehicles to West Africa while enrolled as a student at Morgan State University, was charged in a heroin conspiracy, along with two others, after a half-kilogram of heroin in pellets was found in the safe of his hotel room at the Marriott Waterfront Hotel in downtown Baltimore on March 14, 2009. He pleaded guilty and testified against one of his co-conspirators, who was found guilty by a jury.

Two weeks later, Frank Aidoo, a Ghana-born Dutch citizen, was caught at Baltimore Washington International Airport (BWI) with 100 heroin pellets in his stomach; his business, according to court records, was buying clothing abroad to resell in Ghana. He pleaded guilty, but recently won an appeal of his sentence.

In January 2010, Suleiman Zakaria arrived at BWI on a flight that originated in Ghana, and three kilograms of heroin were found within the lining of his luggage. He was convicted at a jury trial after mounting a defense that included facts about his business: shipping used cars purchased in the United States to resell in Ghana.

In April 2011 in Virginia, eight people were indicted for a heroin-importation conspiracy that supplied Baltimore, along with other areas, with heroin that was brought by couriers from West Africa to the United States. Nearly all of the defendants have pleaded guilty.

In July 2011, Baltimore City Police officer Daniel Redd was among five indicted in a heroin conspiracy supplied from West Africa. One of the co-conspirators in the case, Abdul Zakaria, aka Tamim Mamah, is Suleiman Zakaria’s brother. He testified as a government cooperator at Appram’s trial, where, in explaining his work history, he said he “was buying cars and shipping them to Africa.” All five defendants in the Redd case have pleaded guilty.

Just after Christmas 2011, two men, Nana Bartels-Riverson and Awal Mohammad, were arrested on I-95 in Howard County after nearly a kilogram of heroin was found in the car they were driving. When interviewed by DEA agents, Mohammad explained that the heroin had come from Ghana via courier, and that they were taking it to Baltimore to sell to a dealer. Their case is still in court.

On Dec. 29, 2011, a wiretap investigation by DEA investigators targeting three alleged drug traffickers suspected of having couriers smuggle heroin into Maryland from Africa—Eddie Patrick, Kenneth Ukoh, and Chrisanti Ignass, who, court documents state, conducted heroin transactions at the InterContinental Harbor Court Hotel in Baltimore—culminated with an African courier in a Maryland hotel room, expelling what eventually turned out to be 80 heroin-filled condoms from his gastrointestinal tract. Their case is still in court.

In March, a Nigerian woman, Ngozi Helen Omokoh, and two Maryland men—David Shenard Merritte of Baltimore and Larry Deen Hutchinson of Prince George’s County—were charged after all three were found in a Maryland hotel room where Omokoh had delivered 725 grams of heroin pellets. Their case is still in court.

On May 3, after a 15-month wiretap investigation, the DEA arrested Joseph Osiomwan, a 51-year-old car dealer who lives in idyllic Monkton, near the posh Manor Tavern five-star restaurant, and owns Woodland Motors, a used-car dealership on Reisterstown Road in Baltimore City. He was arrested as he left an alleged stash house in Northeast Baltimore, and when the agents searched him, they found what they described in court documents as three “fingers” or “eggs” of heroin, commonly used for “heroin to be smuggled into the United States via an internal body carrier.”

One of the common themes running through the stories of the defendants in many of these West African-tied heroin cases in Maryland is that many of them are not solely drug dealers, but also pursue legitimate-looking enterprises—especially buying cars in the United States for resale in West Africa.

How illegitimate such enterprises allegedly can be is illustrated in the Taliban and Hezbollah cases filed in New York. In the absence of any such accusations involving West Africa’s heroin trade in Maryland, though, all the public can know is that people like Wagba in Ghana coordinate shipments of heroin to Baltimore and mediate street beefs—or perhaps settle them—from afar, and that the heroin couriers will continue to come, supplying Baltimore’s streets with heroin.