Three Maryland Residents Indicted in Six Year Scheme to Scam Car Dealers and Lenders

Baltimore, Maryland – A federal grand jury indicted the following Maryland residents on wire fraud and money laundering charges arising from a scheme to defraud auto dealers and lenders in the counties of Anne Arundel, Howard, Baltimore and Montgomery, of at least $550,000:

Sean Stanley Jackson, age 43, of Baltimore;

Erika Patrice Ryles, age 35, of Baltimore; and

Walter Jermaine Perry, III, age 39, of Owings Mills.

The indictment was returned on March 30, 2016 and unsealed today at the initial appearances of the defendants before U.S. Magistrate Judge J. Mark Coulson in U.S. District Court in Baltimore.  Defendants Ryles and Perry were released under pretrial supervision while defendant Jackson was detained pending a detention hearing scheduled for Friday, April 8, 2016 at 2:00 p.m.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.

“The illegal activity alleged in the indictment regarding this fraud scheme was extensive,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.   “IRS Criminal Investigation, in conjunction with our law enforcement partners, is committed to investigating financial fraud cases.”        

According to the 15 count indictment, from January 2010 to February 2016, Jackson, Perry and another co-conspirator would make false representations on loan applications to lenders in order to obtain loans to buy vehicles from dealers, for which they were not financially qualified. The indictment alleges that 13 loan applications were submitted electronically to purchase vehicles, including a Bentley, Corvette, Corvette Stingray, Cadillac, two Audis and two Ford F450s.  

The indictment alleges that the defendants created shell entities purporting to be legitimate businesses engaged in, among other things, global investing, consulting, dump truck transportation and wholesale auto dealing.  The defendants created fake documents, including paystubs, bank account statements, utility bills and corporate tax returns and schedules for the shell entities, which they submitted with auto loan applications.  The defendants sold some of the fraudulently obtained autos by causing false lien releases or obtaining false titles that omitted the lenders’ liens on the automobiles. 

The indictment seeks forfeiture of at least $550,000, the amount of proceeds of the fraud scheme.

All of the defendants face a maximum sentence of 20 years in prison for wire fraud conspiracy.  Jackson also faces a maximum sentence of 20 years in prison on six counts of wire fraud; a maximum sentence of 30 years in prison on seven counts of wire fraud involving a financial institution; and 20 years in prison for money laundering.  Perry also faces a maximum sentence of 20 years in prison for wire fraud. 

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

Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

United States Attorney Rod J. Rosenstein commended the IRS - Criminal Investigation and Baltimore County and City Police Departments for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Philip A. Selden and Dana J. Brusca, who are prosecuting the case.