Gansler release

For Immediate Release

Media Contact:
Raquel Guillory, 410-576-6357
rguillory@oag.state.md.us

Securities Division Orders Halt to Ads Offering Unregistered Securities in the Form of “Secured Notes”

BALTIMORE, MD ( February 1, 2010) – Attorney General Douglas F. Gansler announced today that his Securities Division has issued a Summary Order to Cease and Desist against a Baltimore company advertising in a local paper, widely read by senior citizens, offering secured notes backed by real estate. The Order names Patuxent Management LLC, Patuxent Development Inc., and Antonio Almenara, and orders that they cease all offers and sales of the unregistered securities.

One ad, published in the January 2010 edition of The Beacon, presents an opportunity to, “INVEST AT 8% SECURED,” and adds that the “Notes [are] fully secured by local real estate.” The ad further states that “IRA or Pension funds are acceptable” for investment. Potential investors are told to call Patuxent Management LLC at a “301” telephone number or to use an apparent e-mail address. The Order asserts that the alleged “notes” constitute promissory notes or investment contracts, two types of passive investments that are defined as “securities” under the Maryland Securities Act. As such, they must be registered prior to offer or sale in Maryland.

“Ads in Maryland offering unregistered, non-exempt securities are unlawful,” said Attorney General Gansler. “But ads for something as potentially risky as real estate backed investments, aimed at our senior population, are particularly troubling.”

The Maryland Securities Division has no record of securities registration for an offering by the name of “Patuxent Management LLC” or “Patuxent Development Inc.,” and no claim of exemption from registration or status as a federal-covered security has been made with the Division. Furthermore, Patuxent Management LLC, Patuxent Development Inc., and Antonio Almenara are not registered with the Division as a broker-dealer, securities agent, investment advisor or investment advisor representative.

“The lure of a secured rate and the appeal to pension or IRA funds are clearly aimed at persons with concerns over retirement funding,” said Attorney General Gansler. “The absence of any filings with my office indicates the promoters are not adhering to State law, and may not even be identifiable should the investment go bad.”

The Office of Attorney General is asking anyone who purchased these notes to contact the Securities Division at 410-576-7047. Additionally, investors can contact the Securities Division at 410-576-6360 if they have questions concerning the status of investment promoters or the securities in which they plan to invest. Potential investors are always cautioned to call the Securities Division to thoroughly check out any securities broker-dealers, agents, investment advisors, investment advisor representatives, financial planners, the registration status of securities, or to report suspected fraud.

Gansler release

For Immediate Release

Media Contact:
Raquel Guillory, 410-576-6357
rguillory@oag.state.md.us

Former Maryland State Trooper Sentenced to Nine Months in Jail for Theft and Misconduct in Office

BALTIMORE, MD ( February 1, 2010) – Attorney General Douglas F. Gansler announced today that former Maryland State Trooper Andrew A. Mohan, 37, was sentenced to nine months in the Prince George’s County Detention Center for felony theft and misconduct in office. The sentencing follows Mohan’s conviction on December 3, 2009, on two counts of felony theft of money from the Maryland State Police (MSP) and five counts of misdemeanor misconduct in office.

Judge Albert W. Northrop imposed identical, concurrent sentences for the two counts of felony theft from the Maryland State Police (MSP). Specifically, Mohan was sentenced to three years, with all but three months suspended, to commence immediately. Judge Northrop found the misdemeanor involving dissemination of confidential criminal records information to be the most egregious of the misdemeanor charges and sentenced Mohan to two years in jail, with all but six months suspended, to be served consecutively to the three months imposed for the first count of felony theft. Additionally, Mohan must serve three years of supervised probation and pay a total of $3,330 in restitution to the MSP.

Mohan, formerly assigned to the State Police Forestville Barrack, stole $3,330 from the MSP by working two private security jobs, unauthorized and unknown to MSP, on occasions when he was simultaneously on paid duty. In addition, Mohan three times abused his official police powers to, without legitimate law enforcement purposes, access and disseminate restricted criminal records information and motor vehicle registration information guarded in State and federal data systems.

The case was indicted and prosecuted by the Attorney General’s Criminal Division following a joint investigation by the Maryland State Police Internal Affairs Division and the Maryland State troopers assigned to the Attorney General’s Criminal Division. In making today’s announcement, Attorney General Gansler thanked Assistant Attorney General Kate O’Donnell for her work on the case.

Gansler release

For Immediate Release

Media Contact:
Raquel Guillory, 410-576-6357
rguillory@oag.state.md.us

Fallston Woman Charged with Felony Medicaid Fraud

BALTIMORE, MD ( January 25, 2010) – Attorney General Douglas F. Gansler announced today that Joanne Radulski, 51, of the 2100 block of Oaklyn Drive, Fallston, was charged by criminal information in the Circuit Court for Baltimore City with one count of felony Medicaid fraud for billing the Medicaid program for psychotherapy services she was not licensed to perform.

Regulations require that psychotherapy services be provided by licensed mental health professionals. The criminal information charges Radulski with causing her employer, The North Baltimore Center, to bill Medicaid for services provided by Radulski as a Licensed Clinical Professional Counselor (LCPC) from October 2006 through August 2007. In fact, Radulski does not hold an LCPC license. The North Baltimore Center is a private not-for-profit corporation which provides mental health care to residents of Baltimore City and the surrounding area.

Radulski is scheduled to appear in court on February 11, 2010. Felony Medicaid fraud is punishable by five years in prison and a $100,000 fine. A criminal information is merely an accusation of wrongdoing and a defendant is presumed innocent until the State proves the defendant guilty beyond a reasonable doubt. The case was investigated by Attorney General Gansler’s Medicaid Fraud Control Unit in conjunction with the Maryland State Police.

Gansler release

For Immediate Release

Media Contact:
Raquel Guillory, 410-576-6357
rguillory@oag.state.md.us

Poolesville Couple Indicted for Felony Theft

BALTIMORE, MD ( January 15, 2010) – Attorney General Douglas F. Gansler announced today that Daniel Dwight Manoff, 46, of Poolesville, and his estranged wife Theresa Elizabeth Thorne, 30, were indicted by grand juries in the Circuit Court for Charles County and the Circuit Court for St. Mary’s County on several counts of felony theft and conspiracy.

The charges allege that from 2005 through 2008, Manoff and Thorne stole money from Carl Steinhauser and Paula Kennedy of Charles County and Marcia Wilkinson of St. Mary’s County. The investigation revealed that Manoff offered to invest funds for the victims, failed to invest those funds and used them for his personal use, including to help Thorne pay off some of her personal bills.

The trial in Charles County is set for April 12, 2010. A trial date in St. Mary’s County has not been set. Each count of felony theft and conspiracy is punishable by a maximum sentence of fifteen (15) years incarceration and a $25,000 fine. A criminal charge is merely an accusation of wrongdoing and the defendants are presumed innocent until the State proves guilt beyond a reasonable doubt.

The indictment follows a joint investigation by the Insurance Fraud Division of the Maryland Insurance Administration, the Maryland State Police and the Office of the Attorney General. In making today’s announcement, Attorney General Gansler thanked Assistant Attorney General Bernard Taylor for his work on the case.

Gansler Release

For Immediate Release

Media Contact:
Raquel Guillory, 410-576-6357
rguillory@oag.state.md.us

Making Sure Your Funds Are Actually Going to Earthquake Victims

BALTIMORE, MD ( January 14, 2010) – Attorney General Douglas F. Gansler is advising Marylanders to be cautious about the relief organizations that they choose to give donations for the victims of the recent Haitian earthquake.

“ Unfortunately, there are unscrupulous folks that will view this time as a way to capitalize on the generosity and compassion intended for Haitians affected during this disaster,” said Attorney General Gansler. “Be on the lookout for possible scams to verify that a relief organization is legitimate before donating.”

Consumers wishing to make donations to victims of the Haitian earthquake should confirm before making their donations that the charity allows donations to be earmarked for this disaster. The Attorney General offers the following suggestions to consumers who wish to make donations to victims of the Haitian earthquake:

* Make donations to established charities.
* Do not make cash donations — use credit cards or checks.
* Check if the charity (and paid fund-raiser, if one is used) is registered with the Maryland Secretary of State.
* Ask how much of the donation goes toward the charitable work and how much goes toward administrative costs or the fundraising company contacting the consumer.

Consumers should be skeptical of unsolicited e-mail requesting donations from organizations that they do not recognize or that have been organized solely in response to the Haitian earthquake. Donors should be wary in general of solicitations that require personal information. Bogus charities often use names and logos that closely resemble those of other more well-known organizations; make sure that you are giving your donation to the correct organization. Be wary of in-person solicitors who demand an immediate payment or solicitors who offer to send a courier to pick up checks before a consumer can change his/her mind.

Donors have the right to ask as many questions as necessary to make an informed decision about whether or not to donate. If the charity resists answering questions, Marylanders should not donate money.

Consider visiting relief websites set up by well-known and legitimate charities such as the American Red Cross http://www.redcross.org/en/). In addition, the Center for International Disaster Information (http://www.cidi.org/incident/haiti-10a/) or InterAction (http://www.interaction.org/crisis-list/earthquake-haiti) offer links to other recognized charities that are providing relief for the Haitian victims.

For more information regarding charitable giving, consumers can visit the Attorney General’s website at http://www.oag.state.md.us/consumer/tip42.htm.

If consumers have any questions concerning a charity, they should call the Charitable Organizations Division of the Maryland Secretary of State’s office at 1-800-825-4510 or visit www.sos.state.md.us/charity/charityhome.aspx.