Superseding Indictment Charges Maryland Man with Wire Fraud, Identity Theft, and Drug-Related Counts

Summary

A press release of the U.S. Attorney's Office for the District of Maryland, dated Thursday, May 18, 2023, announcing an eight-count superseding indictment against Ryan E. Dales, age 34, of Baltimore. It adds fentanyl, firearm, fraud scheme and aggravated identity theft counts to the original charges of illegal firearm possession by a previously convicted felon and wire fraud over CARES Act unemployment insurance applications. The superseding indictment alleges that from December 2020 through about September 2021 Dales submitted UI applications with false statements and a fictitious tax form, and that on January 20, 2023 Dales possessed 40 grams or more of fentanyl and firearms. It also alleges purchases totaling $44,137.70 made with counterfeit driver's licenses in the names of identity theft victims.

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PRESS RELEASE



Superseding Indictment Charges
Maryland Man with Wire Fraud,
Identity Theft, and Drug-Related
Counts, in Addition to Original
Charges for COVID-19 Cares Act
Unemployment Benefits Fraud and
Illegal Possession of a Firearm
Thursday, May 18, 2023


For Immediate Release
U.S. Attorney's Office, District of Maryland

Baltimore, Maryland – A federal grand jury returned a superseding indictment
yesterday against Ryan E. Dales, age 34, of Baltimore, Maryland, that adds possession
with intent to distribute fentanyl, possession of a firearm in furtherance of a drug
trafficking activity, a fraud scheme and aggravated identity theft to the original charges
of illegal possession of a firearm by a previously convicted felon and with wire fraud,
relating to the submission of fraudulent applications for unemployment insurance (“UI”)
benefits under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.

The superseding indictment was announced by United States Attorney for the District of
Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the
Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in
Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor,
Office of Inspector General (DOL-OIG).

The CARES Act, enacted in March 2020 to provide emergency financial assistance to
Americans suffering from the economic effects caused by the COVID-19 pandemic,
created the Pandemic Unemployment Assistance (PUA) program, which expanded
states’ ability to provide UI for workers impacted by the COVID-19 pandemic, including
workers who otherwise wouldn’t be eligible for UI benefits.

The eight-count superseding indictment alleges that beginning in December 2020 and
continuing through about September 2021, Dales submitted applications for UI benefits
that contained false statements, misrepresentations, and omissions related to his
employment, his eligibility to received UI benefits, and his purported businesses,
including their existence, operation, and profits. Dales allegedly submitted a fictitious
tax form in support of his applications.

According to the superseding indictment, Dales illegally possessed a firearm on January
20, 2023. Also on January 20, 2023, Dales allegedly possessed with intent to distribute
40 grams or more of fentanyl, and the superseding indictment alleges that Dales
possessed a second firearm—a Polymer 80 9mm firearm without a serial number,
commonly known as a “ghost gun”—in furtherance of his drug trafficking.

Finally, the superseding indictment alleges that from August 2022 until September 2022,
Dales defrauded business and financial institutions, using the personal identifying
information of identity theft victims, to obtain merchandise for his personal benefit and
for the benefit of his associates. Specifically, as detailed in the superseding indictment,
Dales obtained forged and counterfeit South Carolina driver’s licenses, each bearing
Dales’ photograph, but the name and identifying information of three identity theft
victims. Dales, and others working with Dales, submitted fraudulent applications for
lines of credit using the names and personal information of the identity theft
victims. Once the lines of credit were approved, Dales allegedly purchased a high-end
lawn mower from each of three victim businesses, in the names of the three identity-
theft victims, for a total of $44,137.70. For each purchase, Dales presented the victim
business with the counterfeit South Carolina driver’s license in the same name as the
victim on the line of credit used to make the purchase, but which had Dales’s photo on
it. Dales allegedly made no payments in connection with the line of credit accounts
established in the names of the three victims and each account still has an outstanding
balance.

More information on the allegations against Dales may be found here.

If convicted, Dales faces a maximum sentence of 20 years in federal prison for being a
felon in possession of a firearm; a mandatory minimum of five years and up to 40 years
in federal prison for possession with intent to distribute 40 grams or more of fentanyl; a
mandatory minimum sentence of five years, consecutive to any other sentence imposed,
and up to life in federal prison for possession of a firearm in furtherance of drug
trafficking; a maximum of 20 years in federal prison for each of four counts of wire fraud;
and a mandatory two years in federal prison, consecutive to any other sentence
imposed, for aggravated identity theft. Actual sentences for federal crimes are typically
less than the maximum penalties. A federal district court judge will determine any
sentence after taking into account the U.S. Sentencing Guidelines and other statutory
factors. No initial appearance is currently scheduled. Dales remains detained.

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.

The District of Maryland COVID-19 Fraud Strike Force is one of three strike forces
established by U.S. Attorney General Merrick B. Garland and the U.S. Department of
Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the
Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was
designed to provide emergency financial assistance to Americans suffering the
economic effects caused by the COVID-19 pandemic. The strike forces focus on large-
scale, multi-state pandemic relief fraud perpetrated by criminal organizations and
transnational actors. The strike forces are interagency law enforcement efforts, using
prosecutor-led and data analyst-driven teams designed to identify and bring to justice
those who stole pandemic relief funds.

For more information on the Department’s response to the pandemic, please
visit https://www.justice.gov/coronavirus. Anyone with information about allegations of
attempted fraud involving COVID-19 can report it by calling the Department of Justice’s
National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF
Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-
complaint-form.

United States Attorney Erek L. Barron commended the FBI and DOL-OIG for their work
in the investigation. United States Attorney Barron and Assistant U.S. Attorney Paul A.
Riley are prosecuting the case. Mr. Barron also recognized the assistance of the
Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources
available to help the community, please visit www.justice.gov/usao/md.

                                          ###
Contact
Marcia Lubin
(410) 209-4854

Updated May 18, 2023


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