Superseding Indictment — United States v. Ryan E. Dales (District of Maryland, May 17, 2023)

Summary

A Superseding Indictment in United States v. Ryan E. Dales, Criminal No. GLR-23-26, Document 35 in Case 1:23-cr-00026-GLR, filed May 17, 2023, in the U.S. District Court for the District of Maryland. The Grand Jury charges Wire Fraud, 18 U.S.C. § 1343, in Count One, alleging a scheme from in or about December 2020 through in or about September 2021 to defraud the State of Maryland through unemployment insurance claims. Count Two charges Possession of a Firearm by a Prohibited Person, 18 U.S.C. § 922(g)(1), on or about January 20, 2023. Counts Three and Four charge possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking activity. Counts Five Through Seven charge Wire Fraud tied to September 2022 purchases on a Toro Line of Credit.

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Case 1:23-cr-00026-GLR Document 35 _ Filed 05/17/23 Page1 of 16
PAR/ELB USAO# 2022R00717

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MARYLAND

UNITED STATES OF AMERICA CRIMINAL NO. GLR-23-26

+ + &

(Wire Fraud, 18 U.S.C. § 1343;
Possession of a Firearm by a
Prohibited Person, 18 U.S.C.

§ 922(g)(1); Possession With Intent to
Distribute a Controlled Substance, 21
U.S.C. § 841(a)(1); Possession of a
Firearm in Furtherance of a Drug
Trafficking Activity; Aggravated
Identity Theft, 18 U.S.C. § 1028A(a)(1);
* Forfeiture, 18 U.S.C. §§ 924(d) and

* 981(a)(1)(C), 21 U.S.C. § 853, 28 U.S.C.
" § 2461(c))

SUPERSEDING INDICTMENT

V.

+ + &+ &

RYAN E. DALES,

Defendant.

COUNT ONE
(Wire Fraud)

The Grand Jury for the District of Maryland charges that:
At all times relevant to this Superseding Indictment:
Background

1. Defendant RYAN E. DALES was a resident of Baltimore City, Maryland.

2. In Maryland, a former employee of a business who has lost his or her job can
contact the Maryland Department of Labor (“MD DOL”) to submit a claim for unemployment
insurance (UI) benefits. Claims for UI benefits are commonly submitted electronically through
the use of the Internet and internet-capable computers or other electronic devices. If the former
employee meets certain requirements, including having received sufficient wages prior to
separation, the former employee/applicant becomes eligible to receive UI benefits.

3. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security

(“CARES”) Act was signed into law. It expanded states’ ability to provide UI for many workers
Case 1:23-cr-00026-GLR Document 35 _ Filed 05/17/23 Page 2 of 16

impacted by the COVID-19 pandemic, including for workers who were not ordinarily eligible for
unemployment benefits.

4. The CARES Act created the Pandemic Unemployment Assistance (“PUA”)
program. Under PUA, states are permitted to provide PUA to individuals who are self-employed,
seeking part-time employment, or otherwise would not qualify for regular UI compensation.

os To qualify for PUA benefits, an individual must not be eligible for regular UI
benefits and be unemployed, partially unemployed, or unable or unavailable to work because of
certain health or economic consequences of the COVID-19 pandemic.

The Scheme to Defraud

6. Beginning in or about December 2020 and continuing through in or about

September 2021, in the District of Maryland, and elsewhere, the defendant,
RYAN E. DALES,

did knowingly and willfully devise and intend to devise a scheme and artifice to defraud the State
of Maryland, to obtain money by means of materially false and fraudulent pretenses,
representations, and promises, and for the purpose of executing and attempting to execute the
scheme to defraud, did knowingly and willfully transmit and cause to be transmitted by means of
wire communications, in interstate and foreign commerce, writings, signs, signals, pictures, and
sounds, in violation of 18 U.S.C. § 1343.

The Object of the Scheme to Defraud

fp It was the object of the scheme to defraud for DALES to personally enrich himself
by obtaining unlawful COVID-19 benefits funds though the submission of fraudulent claims for

UI benefits.
Manner and Means of the Scheme to Defraud

8. It was part of the scheme to defraud that DALES submitted applications for UI
benefits that contained false statements, misrepresentations and omissions related to his
employment, his eligibility to receive UI benefits, and his purported businesses, including their
existence, operation, and profits.

9. It was a further part of the scheme to defraud that on or about December 18, 2020,
DALES opened an account at Wells Fargo, a financial institution insured by the Federal Deposit
Insurance Corporation and doing business throughout the United States, with an account number
ending in 5769 (the “5769 Account”). DALES was the sole signatory on the account.

10. It was a further part of the scheme to defraud that DALES provided the 5769
Account as the bank account number into which the UI benefits were to be deposited.

11. It was a further part of the scheme to defraud that, in order to obtain UI benefits,
DALES submitted a fictitious tax form in connection with his claim for UI benefits.

12. It was a further part of the scheme to defraud that when DALES applied for UI
benefits, he caused interstate wire communications, including from Maryland to outside of
Maryland.

13. It was a further part of the scheme to defraud that DALES sent email messages
about applying for UI benefits.

14. It was a further part of the scheme to defraud that DALES obtained and attempted
to obtain more than $25,000 through materially false and fraudulent pretenses, representations,
and promises in connection with his claims for UI benefits.

THE CHARGE

15. On or about the date set forth below, in the District of Maryland and elsewhere,

DALES, for the purpose of executing and attempting to execute the scheme and artifice to defraud
described above, did knowingly transmit and cause to be transmitted in interstate commerce by

means of a wire communication, certain signals, signs and sounds, as set forth below:

COUNT DATE DESCRIPTION INTERSTATE WIRE
COMMUNICATION
DETAILS
1 December 15, 2020 | Maryland Department of Labor | From Maryland to a
unemployment insurance claim _| location outside of
in the name of Ryan Dales Maryland

18 U.S.C. § 1343
18 U.S.C. §2
COUNT TWO
(Possession of a Firearm by a Prohibited Person)

The Grand Jury for the District of Maryland charges that:
On or about January 20, 2023, in the District of Maryland, the defendant,
RYAN E. DALES,
knowing he had previously been convicted of a crime punishable by imprisonment for a term
exceeding one year, knowingly possessed a firearm, to wit, a 9mm Smith & Wesson M&P 9c

firearm, S/N: HDW0599, and the firearm was in and affecting commerce.

18 U.S.C. § 922(g)(1)
Case 1:23-cr-00026-GLR Document35 _ Filed 05/17/23 Page 6 of 16

COUNT THREE
(Possession With Intent To Distribute Controlled Substances)

The Grand Jury for the District of Maryland further charges that:
On or about January 20, 2023, in the District of Maryland, the defendant,
RYAN E. DALES,
did knowingly and intentionally possess with the intent to distribute 40 grams or more of a
mixture or substance containing a detectable amount of N-pheny|l-N-[1-(2-pheny]-ethyl)-4-

piperidinyl] propanamide, commonly known as fentanyl, a Schedule II controlled substance.

21 U.S.C. § 841(a)(1)
21 U.S.C. § 841(b)(1)(B)(vii)
COUNT FOUR
(Possession of a Firearm in Furtherance of a Drug Trafficking Activity)

The Grand Jury for the District of Maryland further charges that:
On or about January 20, 2023, in the District of Maryland, the defendant,
RYAN E. DALES,
did knowingly possess a firearm, specifically, a loaded Polymer80 9mm firearm with no serial
number, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of
the United States, that is, possession with intent to distribute controlled dangerous substances, in
violation of Title 21, United States Code, Section 841(a)(1), as charged in Count Three of this

Superseding Indictment.

18 U.S.C. § 924(c)(1)(A)(i)
Case 1:23-cr-00026-GLR Document35 _ Filed 05/17/23 Page 8 of 16

COUNTS FIVE THROUGH SEVEN
(Wire Fraud)

The Grand Jury for the District of Maryland further charges that:

At all times relevant to this Superseding Indictment:

i. Paragraph 1 of Count One of this Superseding Indictment is incorporated herein.

2. Victim Business 1 was a trailer, snowplow, and lawn mower retailer located in
Carroll County, Maryland.

3. Victim Business 2 was an outdoor equipment retailer located in Prince George’s
County, Maryland.

4, Victim Business 3 was an outdoor equipment retailer located in Anne Arundel
County, Maryland.

5. The Toro Company (“Toro”) was an American company based in Minnesota and
doing business throughout the world that, among other things, designs, manufactures, and markets
lawn mowers for commercial, residential, and agricultural use.

6. TD Bank Retail Card Services was a division of TD Bank N.A. (together, “TD
Bank”), which issues and services retail card programs for various companies, including Toro. TD
Bank provides a line of credit to approved Toro customers for use at various retailers (the “Toro
Line of Credit”).

The Scheme to Defraud

Te Beginning in or about August 2022, and continuing until in or about September
2022, in the District of Maryland, and elsewhere, the defendant,
RYAN E. DALES,
did knowingly and willfully devise and intend to devise a scheme and artifice to defraud Victim
Business 1, Victim Business 2, Victim Business 3, Toro, and TD Bank, to obtain money and

property by means of materially false and fraudulent pretenses, representations, and promises, and
8
Case 1:23-cr-00026-GLR Document 35 _ Filed 05/17/23 Page 9 of 16

for the purpose of executing and attempting to execute the scheme to defraud, did knowingly and
willfully transmit and cause to be transmitted by means of wire communications, in interstate and
foreign commerce, writings, signs, signals, pictures, and sounds, in violation of 18 U.S.C. § 1343.

The Object of the Scheme to Defraud

8. It was the object of the scheme to defraud that DALES used other people’s
identities to obtain fraudulently merchandise that he used for his personal benefit, and for the
personal benefit of his associates.

Manner and Means of the Scheme to Defraud

9. It was part of the scheme to defraud that in or about 2022, DALES obtained
multiple false, forged, and counterfeited South Carolina Driver’s Licenses: (a) one bearing the
name of “MC” and the photograph of DALES, the year of birth of 1982, and the license number
ending in 3390; (b) one bearing the name of “BL” and the photograph of DALES, the year of birth
of 1981, and the license number ending in 1752; and (c) one bearing the name of “JS” and the
photograph of DALES, the year of birth of 1981, and the license number ending in 1752.

10. It was a further part of the scheme to defraud that on or about August 5, 2022,
DALES, and others working in concert with DALES, submitted a false and fraudulent application
for a Toro Line of Credit to TD Bank, using the name and identity information of “MC” including
the exact date of “MC’s” birthdate in year 1982 and “MC’s” social security number ending in
9004. TD Bank approved the application and established a Toro Line of Credit account ending in
5413.

11. It was a further part of the scheme to defraud that on or about September 13, 2022,
DALES purchased a Toro Z-Master 4000 HDX Pro XL lawnmower from Victim Business | by
means of a $14,185.42 charge to the Toro Line of Credit fraudulently established in the name of

“MC,” resulting in interstate wires, including interstate wires to and from Maryland.

9
Case 1:23-cr-00026-GLR Document35 _ Filed 05/17/23 Page 10 of 16

12. It was a further part of the scheme to defraud that in connection with the September
13, 2022 purchase, DALES presented to Victim Business | the false, forged, and counterfeited
South Carolina Driver’s License bearing the name of “MC” and the photograph of DALES, the
year of birth of 1982, and the license number ending in 3390.

13. It was a further part of the scheme to defraud that on or about September 19, 2022,
DALES, and others working in concert with DALES, submitted a false and fraudulent application
for Toro Line of Credit to TD Bank, using the name and identity information of “BL” including
the exact date of “BL’s” birthdate in year 1981 and “BL’s” social security number ending in 0154.
TD Bank approved the application and established a Toro Line of Credit account ending in 3984.

14. It was a further part of the scheme to defraud that on or about September 19, 2022,
DALES, and others working in concert with DALES, submitted a false and fraudulent application
for a Toro Line of Credit to TD Bank, using the name and identity information of “JS” including
the exact date of “JS’s” birthdate in year 1981 and “JS’s” social security number ending in 9427.
TD Bank approved the application and established a Toro Line of Credit account ending in 3646.

15. It was a further part of the scheme to defraud that on or about September 20, 2022,
DALES purchased a Lazer Z Series lawnmower from Business 2 by means of a $15,322.29 charge
to the Toro Line of Credit fraudulently established in the name of “BL,” resulting in interstate
wires, including interstate wires to and from Maryland.

16. It wasa further part of the scheme to defraud that in connection with the September
20, 2022 purchase, DALES presented Victim Business 2 with a false, forged, and counterfeited
South Carolina Driver’s License bearing the name of “BL” and the photograph of DALES, the
year of birth of 1981, and the license number ending in 1752.

17. It was a further part of the scheme to defraud that on or about September 27, 2022,

DALES purchased a Lazer Z Series lawnmower from Victim Business 3 by means of a $14,629.99

10
charge to the Toro Line of Credit fraudulently established in the name of “JS,” resulting in
interstate wires, including interstate wires to and from Maryland.

18. It was a further part of the scheme to defraud that in connection with the September
27, 2022 purchase, DALES presented Victim Business 3 with a false, forged, and counterfeited
South Carolina Driver’s License bearing the name of “JS” and the photograph of DALES, the year
of birth of 1981, and the license number ending in 1752.

1g, It was a further part of the scheme to defraud that DALES obtained fraudulently
more than $40,000 in merchandise for his personal benefit, and for the personal benefit of his
associates.

20. It was further part of the scheme to defraud that DALES made no payments to TD
Bank in connection with the Toro Line of Credit accounts fraudulently established in the names of
“MC,” “BL,” and “JS,” and each account still has an outstanding balance.

THE CHARGES

21. Onor about the dates set forth below, in the District of Maryland and elsewhere,
DALES, for the purpose of executing and attempting to execute the scheme and artifice to defraud
described above, did knowingly transmit and cause to be transmitted in interstate commerce by

means of a wire communication, certain signals, signs and sounds, as set forth below:

COUNT | DATE DESCRIPTION INTERSTATE
WIRE
COMMUNICATION
DETAILS

- September 13,2022 | $14,185.42 purchase from Victim | From Maryland to a
Business 1 of Toro Z-Master 4000 | location outside of
HDX Pro XL lawnmower, using Maryland

Toro Line of Credit in the name of

“MC”

6 September 20, 2022 | $15,322.29 purchase from Victim | From Maryland to a
Business 2 of Lazer Z Series location outside of
lawnmower, using Toro Line of Maryland

Credit in the name of “BL”

11
Case 1:23-cr-00026-GLR Document35_ Filed 05/17/23

Page 12 of 16

7 September 27, 2022

$14,629.99 purchase from Victim
Business 3 of Lazer Z Series
lawnmower, using Toro Line of
Credit in the name of “JS”

From Maryland to a
location outside of
Maryland

18 U.S.C. § 1343

12
Case 1:23-cr-00026-GLR Document35 _ Filed 05/17/23 Page 13 of 16

COUNT EIGHT
(Aggravated Identity Theft)

The Grand Jury for the District of Maryland further charges that:

i. The allegations set forth in Paragraphs 1 through 6 and 8 through 20 of Counts
Five through Seven of the Superseding Indictment are incorporated here.

2. Beginning in or about August 2022, and continuing until in or about September
2022, in the District of Maryland and elsewhere, the defendant,

RYAN E. DALES,

during and in relation to a felony violation enumerated in 18 U.S.C. § 1028A(c), did, knowingly
transfer, possess and use, without lawful authority, a means of identification of another person,
knowing that the means of identification belonged to another person, to wit: DALES used the
means of identification of “MC,” “BL,” and “JS” during and in relation to wire fraud, in
violation of 18 U.S.C § 1343, as set forth in Counts Five through Seven of this Superseding

Indictment.

18 U.S.C. §§ 1028A(a)(1), (c)(5)

13
FORFEITURE

The Grand Jury for the District of Maryland further finds that:

1. Pursuant to Rule 32.2, Fed. R. Crim. P., notice is hereby given to the defendant that
the United States will seek forfeiture as part of any sentence in accordance with 18 U.S.C.
§§ 924(d) and 981(a)(1)(C), 21 U.S.C. § 853, and 28 U.S.C. § 2461(c), in the event of the
defendant’s conviction under any of the offenses alleged in Counts One through Eight of this
Superseding Indictment.

Wire Fraud Forfeiture

Di Upon conviction of any of the offenses alleged in Counts One, Five, Six, and
Seven, the defendant,
RYAN E. DALES
shall forfeit to the United States, pursuant to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c),
any property, real or personal, which constitutes or is derived from proceeds traceable to such
offense.

Firearms Forfeiture

3 Upon conviction of any of the offenses alleged in Counts Two or Four, the
defendant,
RYAN E. DALES,
shall forfeit to the United States, pursuant to 18 U.S.C. § 924(d) and 28 U.S.C. § 2461(c), any
firearms and ammunition involved in such offense.

Narcotics Forfeiture

4. Upon conviction of the offense alleged in Count Three, the defendant,
RYAN E. DALES,

shall forfeit to the United States, pursuant to 21 U.S.C. § 853(a):

14
Case 1:23-cr-00026-GLR Document35 _ Filed 05/17/23 Page 15 of 16

any property constituting, or derived from, any proceeds obtained, directly

a.
or indirectly, as the result of such violations; and
b. any property used or intended to be used, in any manner or part, to
commit, or to facilitate the commission of, such violations.
Property Subject to Forfeiture
5. The property to be forfeited includes, but is not limited to, the following:
a. aSmith & Wesson firearm, S/N: HDW0599, and any ammunition it contained;
b. a Polymer80 9mm firearm with no serial number and any ammunition it
contained; and
c. amoney judgment in the amount of proceeds the defendant obtained as a result
of any scheme to defraud.
Substitute Assets
6. Pursuant to 21 U.S.C. § 853(p) and 28 U.S.C. § 2461(c), if any of the property

described above as being subject to forfeiture, as a result of any act or omission by the Defendant:

a.

b.

cannot be located upon the exercise of due diligence;

has been transferred or sold to, or deposited with, a third person;

has been placed beyond the jurisdiction of the Court;

has been substantially diminished in value; or

has been comingled with other property which cannot be divided without

difficulty,

it is the intent of the United States to seek forfeiture of any other property of the Defendant up to

the value of the property charged with forfeiture in the paragraphs above.

18 U.S.C. § 924(d)
18 U.S.C. § 981(a)(1)(C)

21 U.S.C. § 853

28 U.S.C. § 2461(c)

15
rek L. Barron
United States Attorney

A TRUE BILL:
SIGNATURE REDACTED fia] 2023
Foreperson Date

16


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