Middle District of Florida
Press releases recorded for this federal judicial district.
Federal Jury Finds Registered Sex Offender Guilty of Enticing Two Middle School Children to Commit Sex ActsRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found Romeo Valentin Sanchez (31, Cape Coral) guilty of enticing two minors to commit sex acts and producing and possessing child pornography. The jury also found him guilty of committing these offenses while already being required to register as a sex offender. He faces a maximum penalty of life in federal prison. The sentencing hearing is scheduled for May 28, 2019.
According to testimony and evidence presented at trial, Sanchez, a convicted sex offender, lured a 14-year-old family friend into a sexual relationship that lasted for several months. In addition to engaging in sex acts, Sanchez also induced the victim to send him explicit videos of themself.
After officers from the Cape Coral Police Department seized Sanchez’s phone and informed him that he was under investigation for his sex acts on the first victim, Sanchez obtained a second cellphone and attempted to entice a second middle-school-aged student into a sexual relationship. Sanchez met the second victim when the victim and her mother came into the Cape Coral restaurant where Sanchez worked. Sanchez lured the victim by creating a fraudulent social media profile of a 13-year-old child in an attempt to trick the victim into a sexual relationship. Although no in-person encounter occurred with the second victim, Sanchez was able to induce the second victim to send him child pornography.
This case was investigated by the Federal Bureau of Investigation, Innocent Images Task Force, and the Cape Coral Police Department. It was being prosecuted by Assistant United States Attorney Charles Schmitz.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Duval County Man Sentenced to Prison in Counterfeit Currency InvestigationRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Steven Timothy Jolly (41, Jacksonville) to 30 months in federal prison for manufacturing counterfeit currency. The court also ordered Jolly to forfeit computer media used in the production of counterfeit Federal Reserve notes. Jolly had pleaded guilty on October 9, 2018.
According to court documents, in January 2018, the Jacksonville Sheriff’s Office investigated a home in Duval County associated with the sale of methamphetamine. The following month, law enforcement officers executed a search warrant at the home. Jolly and others were present at the time the search warrant was executed. During the search of the home, the officers located, among other items, drug paraphernalia, a firearm, uncut sheets of counterfeit Federal Reserve notes, counterfeit Federal Reserve notes, and computer media. Subsequent investigation by the United States Secret Service – Jacksonville Field Office determined that Jolly had used the computer media to manufacture counterfeit Federal Reserve notes.
This case was investigated by the Jacksonville Sheriff’s Office and United States Secret Service - Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Tampa Man Pleads Guilty to Making False Statement to Federal Credit UnionsRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Richard Bowe (40, Tampa) pleaded guilty today to four counts of making false statements to federally insured federal credit unions. Bowe faces a maximum penalty of 30 years in federal prison on each count. His sentencing date has not yet been set.
According to facts presented at the plea hearing, in early 2015, Bowe applied to several different credit unions in the Tampa Bay area and made false statements in his loan and/or credit applications. On January 23, 2015, he applied for an auto loan of approximately $30,000 from the Florida Central Credit Union. In the loan application, he falsely claimed that he was employed by the U.S. Central Command and made a false representation about the amount of VA retirement benefits that he earned. On February 26, 2015, he applied for another auto loan of approximately $15,000 from the USF Federal Credit Union and again falsely claimed in the loan application that he was a Deputy Inspector General with the Central Command. On March 4, 2015, he visited the USF Federal Credit Union and applied for another auto loan of approximately $47,000 and made false statements in that loan application about being employed at the U.S. Army Contracting Command and about his receipt of monthly VA benefits. He also applied for a credit card and membership at the Tampa Bay Federal Credit Union on February 26, 2015. In that application, he again made false statements about his employment with the U.S. Army Contracting Command and about his VA benefits.
In each case, Bowe also submitted false and fraudulent documents verifying the employment and benefits that he falsely claimed to be receiving on a monthly basis. In reality, he had no such employment with the U.S. Army and received no such VA benefits.
This case was investigated by the Tampa Police Department, with assistance from the United States Department of Veterans Affairs and the U.S. Defense Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Jacksonville Man Sentenced to More Than Fifteen Years for Illegally Possessing A FirearmRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Jemone Lawrence Walker (33, Jacksonville) to 15 years and 8 months in federal prison, for possessing a firearm as a convicted felon. A federal jury found Walker guilty on June 7, 2018.
According to testimony presented at trial, Walker was found to be in possession of a loaded revolver when the Jacksonville Sheriff’s Office responded to an armed domestic call at a Jacksonville home. At the time, Walker had multiple prior felony convictions, including armed robbery, attempted armed robbery, attempted robbery, and unarmed robbery and, therefore, was prohibited from possessing firearms.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Ashley Washington.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Georgia Man Indicted on Federal Charge of Failing to Register as A Convicted Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces today the return of an indictment charging Jimmie Dwight Whitfield (42, Valdosta, GA) with failing to register as a sex offender after relocating from Georgia to Florida. If convicted, he faces up to 10 years in federal prison. Whitfield was arrested in Atlantic Beach, Florida on October 25, 2018.
According to the indictment, on August 31, 1995, Whitfield was convicted of lewd, lascivious, and indecent acts with a minor in Jacksonville, Florida. On September 29, 2016, he was convicted of sexual battery and sodomy in Valdosta. Following his convictions, between March 20 and October 25, 2018, he traveled from Georgia to Florida and failed to register as a sex offender as required by the Sex Offender Registration and Notification Act (SORNA).
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006. The Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the United States Marshals Service, the Lowndes County (GA) Sheriff’s Office, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Court Bars Florida Tax Return Preparer and Business from Preparing Tax ReturnsRead the Press Release
A federal court in Orlando, Florida, entered a permanent injunction against Ndaiziwei Kaya Chipungu and Society Financial Solutions LLC, barring them from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department today announced. The order was signed by Judge G. Kendall Sharp of the U.S. District Court for the Middle District of Florida.
The court also ordered that Chipungu and Society Financial Solutions LLC disgorge $487,879.24, representing the ill-gotten gains that they received for the preparation of tax returns.
The government alleged that the defendants prepared tax returns making false or fraudulent claims for the Earned Income Tax Credit. The government further alleged that the defendants prepared tax returns that falsely claimed the customers had non-existent businesses. Defendants also allegedly prepared returns with fabricated unreimbursed employee business expenses to falsely lower customers’ reported taxable income.
The court concluded that the government’s allegations established that the “Defendants engaged in business practices that violate the Internal Revenue Code, that the Government is entitled to a permanent injunction, and that Defendants unjustly enriched themselves through their wrongful conduct.”
The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Colombian Man Pleads Guilty to Drug ChargeRead the Press Release
Tampa, Florida – Genaro Cuero (64, Buenaventura, Colombia) today pleaded guilty to a conspiracy violation of the Maritime Drug Law Enforcement Act. He faces a minimum mandatory term of 10 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Cuero was responsible for arranging the transportation of several maritime cocaine smuggling ventures in international waters of the Eastern Pacific Ocean. He represented the head of a drug-trafficking organization (DTO) and assisted with the smuggling of large quantities of cocaine. In April 2011, the U.S. Coast Guard (USCG) interdicted a self-propelled semi-submersible (SPSS) vessel that had been dispatched from Colombia by the DTO. The mariners aboard the SPSS vessel scuttled it, but the USCG successfully recovered 93 kilograms of cocaine.
In July 2014, the USCG interdicted a go-fast vessel dispatched from Colombia by the DTO. During that intercept, the USCG seized approximately 40 kilograms of cocaine out of a total load of 200 kilograms, most of which had been jettisoned.
Cuero was arrested in Colombia in November 2017 and extradited to the United States in December 2018.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the U.S. Coast Guard Investigative Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command’s Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The Department of Justice’s Office of International Affairs and the U.S. Embassy, Bogotá, Colombia, assisted with the extradition process. The case is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Carjacker Who Shot Lakeland Police Officer Pleads GuiltyRead the Press Release
Tampa, Florida – Terrest Colston (28, Polk County) today pleaded guilty to carjacking, brandishing a firearm during and in relation to a crime of violence, and possessing a firearm and ammunition as a convicted felon. He faces a maximum penalty of 15 years in federal prison for the carjacking charge, a minimum mandatory term of 7 years, and up to life, in prison for the brandishing charge, and a maximum term of 10 years’ imprisonment for the possession charge. A sentencing date has not yet been set.
According to court documents, on July 11, 2018, an individual was parked in his sedan on East Lemon Street in Lakeland. Colston approached the driver’s side window of the vehicle, pointed a loaded revolver at the victim, and told him to get out of the car. The victim, in fear for his life, complied. Colston then got into the sedan and drove away. A few hours later, an officer with the Lakeland Police Department spotted the stolen vehicle and attempted to pull it over. Colston crashed the car and fled on foot. The officer caught up with Colston, and Colston shot the officer. The officer survived and returned fire, striking Colston in the leg. Additional officers arrived and took Colston into custody.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Tampa Man Indicted for Multiple Bank RobberiesRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Terrance Maurice Goss (32, Tampa) with four counts of bank robbery, two counts of attempted bank robbery, and one count of possessing a firearm as a convicted felon. Goss faces a maximum penalty of 20 years in federal prison on each of the robbery and attempted robbery charges, and up to 10 years’ imprisonment for the firearm offense. The indictment also notifies Goss that the United States intends to forfeit the $6,462 he stole from the banks, as well as the firearm he possessed.
According to the
indictment , between January 11 and January 25, 2019, Goss robbed four banks. On January 11, 2019, he robbed the Wells Fargo Bank located at 2699 Gulf to Bay Boulevard in Clearwater. He robbed a second Wells Fargo Bank, located at 5250 East Bay Drive in Clearwater, on January 15, 2019. Two days later, he robbed the Centennial Bank on Fruitville Road in Sarasota). On January 25, 2019, Goss robbed a Wells Fargo Bank in Davenport. Additionally, Goss attempted to rob the TD Bank located at 6108 U.S. Highway 98 North in Lakeland on January 17, 2019, and the SunTrust Bank located at 1075 Carpenters Way in Lakeland on January 25, 2019.Finally, the indictment charges that Goss, a previously convicted felon, possessed a firearm on January 25, 2019.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI, the Largo Police Department, the Clearwater Police Department, the Sarasota County Sheriff’s Office, the Polk County Sheriff’s Office, the Lakeland Police Department, the U.S. Marshals Service, and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Taylor G. Stout.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Middle District of Florida U.S. Attorney’s Office Collects More Than $142 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
Tampa - U.S. Attorney Maria Chapa Lopez announced today that the Middle District of Florida (MDFL) collected $38,073,605.20 in criminal and civil actions in the fiscal year ending September 30, 2018 (FY 2018). Of this amount, $27,941,783.60 was collected in local civil actions and $10,131,821.60 was collected in criminal actions. The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $96,663,640 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the district’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The Middle District of Florida’s Civil Division recovered an additional $68,721,857.63 in these jointly handled cases.
Additionally, the Office’s Asset Forfeiture Division, led by Anita Cream, recovered $35,367,506 in asset forfeiture actions last fiscal year. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, in FY 2018, more than $1 million forfeited in the MDFL in prior years was returned to victims of the criminal offenses upon which the forfeitures were based (with more than $150 million pending distribution to additional crime victims), and more than $2.8 million was shared with federal, state, and local law enforcement agencies.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The U.S. Attorney’s Office will continue working with its partners to investigate and prosecute fraud at every level,” said U.S. Attorney Chapa Lopez. “Our coordinated efforts aim to ensure that criminals are held accountable for their illegal actions and that victims are able to recover from their losses, wherever possible.”
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, the Defense Health Agency, the Internal Revenue Service, the Small Business Administration, and the Department of Education. See below for MDFL significant civil case highlights.
CIVIL HEALTHCARE FRAUD ENFORCEMENT CASE SUMMARIES
United States ex rel. Nurkin v. Health Management Associates, Case no. 2:11-cv-14-FtM-29DNF
The former Chief Executive Officer of the Charlotte Regional Medical Center (CRMC) filed a qui tam case alleging that CRMC’s owner, Health Management Associates, Inc. (HMA), implemented a scheme to generate referrals of Medicare business to CRMC and to Peace River Medical Center in violation of the federal Anti‑Kickback and Stark statutes. Specifically, HMA offered referring physicians free office space, staff, equipment, and direct expense payments of $20,000 to $40,000 per month. During the investigation, the HMA hospital chain was purchased by a larger nationwide hospital chain based in Nashville, Tennessee, Community Health Services.
A nationwide investigation of HMA and its hospitals around the country ensued and led the Department of Justice to consolidate this case with eight other related qui tam cases that had been filed in other judicial districts. The nine overlapping qui tam cases were eventually consolidated in the District of Columbia for pretrial proceedings.
A global resolution of the kickback allegations was finalized in September 2018 that paid the United States $143 million to address the claims in the Nurkin case as well as those raised in a separate qui tam case filed in the Eastern District of Pennsylvania. Of the total settlement amount, $93.5 million was allocated to the Middle District of Florida’s Nurkin case. It was the largest recovery of all nine of the consolidated cases against HMA. Community Health Services also entered into a non-prosecution agreement with the Department of Justice, Criminal Frauds Section that addresses allegations unrelated to the MDFL case.
Press release: https://www.justice.gov/opa/pr/hospital-chain-will-pay-over-260-million-resolve-false-billing-and-kickback-allegations-one
United States ex rel. Moore v. 21st Century Oncology, Inc., et al., Case no. 2:16-civ-99-FtM-29MRM
The relator in this case alleged that a nationwide oncology provider, 21st Century Oncology, had entered into illegal compensation agreements with physicians that paid incentives that violated federal law. During our investigation, the defendant also voluntarily disclosed that it had falsified reports to CMS to justify incentive payments under a Medicare program called the EHR Incentive Program. Commercial pressures drove the defendant to seek bankruptcy protection. While the bankruptcy was pending, settlement discussions ensued to address the civil fraud claims, and resulted in an ability to pay agreement that will pay the United States $26 million.
Press release: https://www.justice.gov/opa/pr/21st-century-oncology-pay-26-million-settle-false-claims-act-allegations
United States ex rel. Van Raalte, et al. v. Healogics, Inc., Case no. 6:14-civ-283-Orl-41KRS;
DAB United States ex rel. Wilcox v. Healogics, Inc., Case no. 6:15-civ-1510-Orl-41
Two overlapping qui tam cases were filed in Orlando against a Jacksonville based management consultant, Healogics, Inc., that provides management services to wound healing clinics owned by hospitals around the country. The relators were several wound healing physicians employed by a Healogics wound healing center, and a former management level employee of Healogics. The relators alleged that the defendant had caused the hospitals to submit false claims to federal health programs for medically unnecessary hyperbaric oxygen services and debridements, among other things. After a lengthy investigation, we opened settlement discussions that culminated in an ability to pay resolution that will pay up to $22.5 million to resolve all claims in the cases.
Press release: https://www.justice.gov/opa/pr/healogics-agrees-pay-2251-million-settle-false-claims-act-liability-improper-billing
United States ex rel. Sharpe v. Americare Ambulance, Inc., Case no. 8:13-civ-1171-T-36AEP
The relator in this qui tam case was a former employee of the largest ambulance company in Hillsborough County who alleged that the defendant had submitted false claims to Medicare and TRICARE for up-coded patient transportation services. Our investigation corroborated the allegations but pre-intervention settlement discussions were not fruitful. We intervened in the case and after a year of litigation, we reached a settlement of the claims that paid the United States $5,496,816.
Press release: https://www.justice.gov/usao-mdfl/pr/tampa-s-largest-ambulance-providers-agree-pay-55-million-resolve-false-claims-act
United States ex rel. Gross v. James Norman, MD, PA et al., Case no. 8:14-civ-978-T-33EAJ
Patients of this Tampa thyroid surgeon, James Norman, MD, filed a qui tam complaint alleging that he had staged pre-surgery patient consultations to improperly circumvent Medicare’s reimbursement rules for thyroid surgery services. We determined that the practice was widespread among the defendant’s patients and constituted a violation of his participation agreement with Medicare. We reached an agreement that resolved the allegations under the False Claims Act in return for $4,070,800.
Press release: https://www.justice.gov/usao-mdfl/pr/owner-tampa-parathyroid-practice-agrees-pay-4-million-resolve-false-claims-act
United States ex rel. Simons v. North Central Florida Hospice, Inc., Case no. 3:16-civ-330-J-41JRK
A former employee of this Jacksonville, Florida based hospice provider (doing business as Haven Hospice, Inc.) alleged that the defendant had provided hospice services to Medicare patients who did not qualify for the service, and improperly billed Medicare for those services. A civil investigation corroborated this claim and led to an ability to pay settlement that paid $5,085,024 to the United States.
Press release: https://www.justice.gov/usao-mdfl/pr/united-states-settles-false-claims-allegations-against-haven-hospice-more-5-million
Trinity Medical Pharmacy, LLC
This was a direct referral from the TRICARE program that centered upon allegations that a New Port Richey based compounding pharmacy, Trinity Medical Pharmacy, and a handful of its executives had engaged in a variety of illegal practices designed to defraud the military’s health program. Trinity, its Chief Executive Officer Krutika Patel, its Chief Operating Officer Devan Patel, its National Sales Director Jay Martinez, and its National Account Director Nicholas Petrillo, implemented a variety of kickback schemes designed to incentivize overutilization of compounded pain creams. These kickback arrangements included bogus philanthropies, waiver of patient co-payments, and kickbacks to physicians in the guise of speaker programs and honoraria. The pharmacy also failed to disclose to the TRICARE program that Devan Patel was a convicted felon when it applied to become an authorized provider with the program’s pharmacy benefit manager, Express Scripts. Trinity and the four individual defendants ultimately agreed to pay $2,244,270 to resolve these civil claims.
Press release: https://www.justice.gov/usao-mdfl/pr/united-states-settles-false-claims-act-allegations-against-trinity-medical-pharmacy-and
United States ex rel. Sawicki v. Arthur Portnow, MD, et al., Case no. 8:15-civ-987-T-27MAP
An ultrasound technician alleged that her former employer – a Sarasota internist – had conducted medically unnecessary carotid and arterial ultrasound tests, and falsified patient records to justify those tests in claims to federal health programs. A civil investigation corroborated these allegations and we resolved the claims in a settlement that paid $1.95 million to the United States.
Press release: https://www.justice.gov/usao-mdfl/pr/sarasota-physician-agrees-pay-195-million-resolve-false-claims-act-allegations
United States ex rel. Loebl v. Eurogynecology Specialists of Florida, Inc., et al., Case no. 6:16-cv-1722-Orl-37KRS
A physician’s assistant, formerly employed by a large gynecology practice with multiple offices all over central Florida, filed a qui tam complaint alleging that the practice group had defrauded Medicare by improperly using a billing modifier in connection with certain gynecology services. The modifier justifies additional payment from government health programs when used in connection with “separate identifiable” services that cannot be bundled with an underlying service. Our investigation corroborated widespread billing improprieties involving this modifier code, and we negotiated a settlement resolving the civil claims in return for $1.7 million.
Press release: https://www.justice.gov/usao-mdfl/pr/fwc-urogynecology-llc-agrees-pay-17-million-settle-false-claims-act-liability-misuse
United States ex rel. Stone v. Riverside Spine and Pain Physicians, LLC, Case no. 8:16-civ-945-T-36EAJ
A Tampa pain management doctor filed a qui tam complaint alleging that her former employer, a large Jacksonville-based physicians group, had filed false claims to federal payors for unnecessary urine drug testing services. Our investigation corroborated these allegations and separately revealed that the practice group had accepted kickbacks from a nationwide urine drug-testing lab in the form of specimen cups. We negotiated a settlement of these civil claims for the total amount of $1,491,478.
Press release: https://www.justice.gov/usao-mdfl/pr/united-states-settles-false-claims-act-allegations-against-riverside-spine-pain
United States ex rel. Pelletier v. Liberty Ambulance Co., Case no. 3:11-civ-911-J-37JRK
A former employee of a Jacksonville ambulance company filed a qui tam complaint alleging that the defendant had submitted false claims to Medicare and other federal payors for up-coded patient transportation services. We settled these claims with other named defendants, but our negotiations with Liberty Ambulance broke down. We intervened in the case and after over a year of litigation, we reached an ability to pay settlement with Liberty wherein it agreed to pay $1.2 million to resolve all claims.
Press release: https://www.justice.gov/usao-mdfl/pr/united-states-settles-false-claims-act-allegations-against-liberty-ambulance-12-million
United States ex rel. Steppe v. RS Compounding, LLC and Renier Gobea, Case no. 8:13-cv-3150-T-33AEP
This qui tam case was filed by a former sales representative of a Tampa, Florida compounding pharmacy, RS Compounding d/b/a Westchase Pharmacy. She alleged that the pharmacy and its owner, Renier Gobea, engaged in a number of schemes to defraud the military’s TRICARE health program. Notable of these was the pharmacy’s practice of billing compounded pain creams to TRICARE at rates that were astronomically higher than the rates the pharmacy charged to private insurers and cash-paying customers. This practice violated the TRICARE program’s reimbursement requirements and came at a time when the program was reeling from the impact of a vast network of fraud schemes underway around the country that involved illegal marketing of compounded pain creams. An investigation confirmed that the Westchase Pharmacy was charging TRICARE prices that were in excess of 2,000% higher than prices charged to private insurers for the same pain cream products.
We intervened in the case in April 2017 and after a period of litigation, eventually resolved the allegations in the case against the pharmacy and Mr. Gobea in exchange for $1.2 million.
Press Release: https://www.justice.gov/usao-mdfl/pr/government-settles-12-million-lawsuit-against-florida-compounding-pharmacy-and-its
Major Fentanyl Supplier Pleads GuiltyRead the Press Release
Tampa, Florida – Miguel Dumeng Alvira (35, New York City) has pleaded guilty to conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and cocaine; distributing 40 grams or more of fentanyl and 100 grams or more of heroin; and distributing 400 grams or more of fentanyl, 100 grams or more of heroin, and cocaine. Dumeng Alvira faces a minimum mandatory term of 10 years, and up to life, in federal prison. A sentencing date has not been set.
According to court documents, in April 2018, Dumeng Alvira and a co-conspirator gave approximately 124 grams of a mixture of fentanyl and heroin to a Drug Enforcement Administration confidential source in Tampa.
In June 2018, Dumeng Alvira met his co-conspirator in New York and gave him the following narcotics to distribute in Tampa: approximately 375 grams of fentanyl, approximately 470 grams of a mixture containing fentanyl and heroin, and approximately 487 grams of cocaine. DEA agents arrested the co-conspirator back in Tampa and seized those narcotics.
Following the co-conspirator’s arrest, Dumeng Alvira attempted to supply the DEA confidential source with additional narcotics to distribute in the Tampa area. On October 12, 2018, DEA agents arrested Dumeng Alvira in Tampa with over half a kilogram of heroin and nearly $30,000 in cash.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
Jacksonville Woman Sentenced to More Than Five Years for Stealing Handguns from Local Gun StoresRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Bruquanna Griffin (22, Jacksonville) to 5 years and 10 months in federal prison for stealing firearms and for conspiring to steal firearms from federally licensed firearms dealers. Griffin had pleaded guilty on March 12, 2018.
According to court documents, throughout the summer of 2017, Griffin and another individual worked together to steal firearms from at least three Jacksonville gun stores. At each location, a co-conspirator distracted the sales staff while Griffin snuck behind the counter to steal handguns. She stole as many as five guns from a single location.
On August 23, 2017, Griffin was arrested after she attempted to leave a gun store with two stolen pistols in her purse. Initially, she provided a false name to the arresting officers. Eventually, Griffin admitted her involvement in the theft ring. She explained to the officers that, after she stole the firearms, her co-conspirator kept some of them, sold others, and traded others for drugs.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sherriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Fort Myers Body Armor Manufacturer Agrees to Pay $900,000 to Settle Civil Claims Concerning Its Eligibility to Participate in Federal Small Business Contracting ProgramRead the Press Release
Fort Myers, FL – United States Attorney Maria Chapa Lopez announces that Survival Armor, Inc. has agreed to pay $900,000 to the United States to resolve allegations that it wrongfully obtained a five-year small business set-aside contract with the U.S. Department of Homeland Security by misrepresenting its company size.
To help provide a level playing field for small businesses, the government limits competition for certain contracts to small businesses. These contracts, called “Small Business Set-asides” (“SBSA”), help small businesses compete for and win federal contracts. To qualify for a SBSA contract to provide body armor, a company must (among other things) have no more than 500 employees, including employees of all its domestic and foreign affiliates.
Survival Armor is a manufacturer of ballistic products. Their principal manufacturing facility is located in Fort Myers. Following an investigation by the U.S. Department of Homeland Security – Office of Inspector General, and the U.S. Small Business Administration – Office of Inspector General, the United States alleged that Survival Armor misrepresented its status as a “small business concern” in order to obtain contracts to provide tactical body armor to the federal government.
Specifically, in November 2011, Survival Armor certified that it was a “small business concern” with less than 500 employees in order to be eligible to be awarded this SBSA contract. However, Survival Armor was at the time, and continues to be, merely a subsidiary of a foreign, large corporate parent company with well over 500 employees. As a result of the misrepresentation of its status, Survival Armor was able to obtain orders to provide tactical body armor to various federal law enforcement agencies for which it was ineligible.
“The SBA’s special contracting programs are intended to promote economic growth and encourage the development of small businesses across the nation,” said U.S. Attorney Chapa Lopez. “Our resolve to protect these government programs and their intentions on behalf of the public are unwavering.”
“The Federal government has made continued efforts to provide contracting dollars to certified small businesses,” said Special Agent in Charge Jay H. Donly of the DHS OIG Miami Field Office. “When our investigation determined that the company did not qualify as a small business under the procurement guidelines, we appreciated the cooperation they gave to DHS OIG to bring this matter to today’s resolution.”
“Individuals that make intentional misrepresentations to gain access to federal contracts set aside for small businesses will be brought to justice,” said SBA-OIG Special Agent in Charge Kevin Kupperbusch. “This settlement sends a strong message that wrongdoing will find its way into the open, and those responsible will be held accountable. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
The investigation was handled by Assistant U.S. Attorney Kyle S. Cohen, with assistance from DHS-OIG and SBA-OIG.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Convicted Sex Offender Sentenced for Viewing Child Pornography While on Supervised ReleaseRead the Press Release
Tampa, Florida – Senior U.S. District Judge Elizabeth Kovachevich has sentenced Charles Ruggiero (37, Tampa) to five years in federal prison for accessing an electronic device with the intent to view child pornography. Ruggiero had pleaded guilty on August 9, 2017.
According to court documents, in August 2016, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Tampa received two Cyber Tipline reports from the National Center for Missing and Exploited Children (NCMEC). The report stated that an individual, later determined to be Ruggiero, used a web-based communications platform to upload two voice recordings discussing engaging in sexually explicit conduct with his 11-year-old sister. HSI agents learned that Ruggiero is a convicted sex offender and, at the time of this offense, was also on federal supervised release for transporting and shipping child pornography.
HSI agents contacted Ruggiero’s probation officer and confirmed that the cellphone number that Ruggiero had provided to his probation officer was the same number that had been reported to NCMEC. Ruggiero admitted that he had been viewing child pornography on his girlfriend’s computer and cellphone for several months. A forensic analysis of the computer and cellphone revealed approximately 200 images depicting child pornography, including young children, and numerous internet search terms consistent with child exploitative material.
“This criminal continued to re-victimize young children by viewing images of child pornography,” said HSI Tampa Special Agent in Charge James C. Spero. “Now, thanks to our HSI Tampa special agents, he will be punished for his crimes.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Career Offender Sentenced to 20 Years for Armed RobberyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Joseph Deleon (33, Lake County) to 20 years in federal prison for commercial armed robbery and for brandishing a firearm while committing that robbery. Due to the seriousness of his criminal history and the violent nature of his robbery, he qualified for an increased penalty under the Armed Career Criminal Act. A jury found Deleon guilty on October 16, 2018.
According to testimony and evidence presented at trial, shortly after midnight on March 15, 2018, in St. Petersburg, Deleon pointed a gun at a cashier at a 7–11 store and demanded the contents from the cashier’s register. After obtaining approximately $100 and several packages of stamps, Deleon fled the scene. At the time of the offense, Deleon was a convicted felon. His prior convictions include molesting a child and dealing drugs.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorneys Gregory T. Nolan and Thomas N. Palermo.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Three Jacksonville Tax Return Preparers Indicted on Federal Tax Fraud ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of indictments charging Jacksonville residents Paul Berkins Moise, Joanna Arlean Tukes, and Schquan Antionette Shanks with aiding and assisting others with the filing of false tax returns. The indictments, which are unrelated, allege that each of the individuals owned and operated a tax preparation business in Jacksonville.
Moise is charged with 22 counts of filing false tax returns, Tukes is charged with 25 counts of filing false tax returns, and Shanks is charged in 21 counts of filing false tax returns and 3 counts of filing false personal income tax returns. Each count carries a maximum penalty of three years’ imprisonment. The United States also seeks restitution for the tax loss arising out of the alleged criminal conduct.
According to Moise’s indictment, between February 2013 and March 2017, Moise defrauded the IRS by filing returns for taxpayers in which he falsely claimed, among other things, that the taxpayers had incurred business expenses and unreimbursed employee expenses, had paid state and local sales taxes in an inflated amount, and had made gifts to charity in an inflated amount. The indictment specifically alleges the filing of 22 false returns on behalf of eight taxpayers for the tax years 2012 through 2016.
According to Tukes’s indictment, between February 2013 and March, 2017, Tukes defrauded the IRS by filing returns for taxpayers in which she falsely claimed, among other things, that the taxpayers had incurred business expenses and unreimbursed employee expenses, had incurred medical and dental expenses in an inflated amount, had paid state and local sales taxes in an inflated amount, and had made gifts to charity in an inflated amount. The indictment specifically alleges the filing of 25 false returns on behalf of nine taxpayers for the tax years 2012 through 2016. The indictment also alleges that Tukes significantly underreported the income she made from her tax preparation business, alleging that she made approximately $219,686 in 2013 but reported only $14,600, that she made approximately $294,049 in 2014 but reported only $10,500, and that she made approximately $465,855 in 2015 but reported only $50,540.
According to Shanks’s indictment, between February 2015, and February 2018, Shanks defrauded the IRS by filing returns for taxpayers in which she falsely claimed, among other things, that the taxpayers had incurred business expenses and had dependents for whom they could claim an exemption. The indictment specifically alleges the filing of 21 false returns on behalf of eight taxpayers for the tax years 2014 through 2017.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the Internal Revenue Service Criminal Investigation. They will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Georgia Man Indicted on Federal Charge of Using the Internet in Attempting to Entice A Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announced today the return of an indictment charging Douglas Scott Phillips (51, Richmond Hill, Georgia) with using the internet to attempt to entice a child to engage in sexual activity. Phillips faces a minimum mandatory penalty of 10 years, and up to life, in federal prison and a potential life term of supervised release. Phillips was arrested at his home in Georgia by the United States Marshals Service on February 14, 2019. He will be transported to Jacksonville for further proceedings.
This case was investigated by the St. Johns County Sheriff’s Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Liberty County (GA) Sheriff’s Office, and the Bryan County (GA) Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Jury Finds North Fort Myers Man Guilty of FEMA FraudRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Tommy N. Tracy (72, North Fort Myers) guilty of fraud in connection with a major disaster. Tracy faces a maximum penalty of 30 years in federal prison. His sentencing hearing is scheduled for May 13, 2019.
According to testimony and evidence presented at trial, on September 13, 2017, Tracy applied for Federal Emergency Management Agency (FEMA) assistance for a residence located at 18301 Slater Road in North Fort Myers. He claimed that this was his primary residence, that he was living there at the time of the disaster, and that he did not own a rental property affected by the disaster. In fact, the property on Slater Road was not his primary residence, he was not residing there at the time of the disaster, and it was a rental property owned by him. Tracy fraudulently received over $24,000 in disaster assistance, including an additional six months of shelter assistance from FEMA.
This case was investigated by the Department of Homeland Security – Office of Inspector General. It is being prosecuted by Chief Assistant United States Attorney Jesus M. Casas and Assistant United States Attorney Trenton Reichling.
Florida Compounding Pharmacy and Its Owners to Pay at Least $775,000 to Resolve False Claims Act AllegationsRead the Press Release
The Department of Justice announced today that Vital Life Institute LLC (formerly known as AgeVital Pharmacy LLC), located in Sarasota, Florida, and owners Jenny and William Wilkins have agreed to pay at least $775,000 to resolve claims that they violated the False Claims Act by engaging in an illegal kickback scheme to induce the referral of compounded drug prescriptions for TRICARE and Medicare beneficiaries. AgeVital and the Wilkinses have agreed to pay additional amounts in the event certain contingencies are triggered.
The settlement resolves allegations that AgeVital, at the direction of the Wilkinses, paid kickbacks to a third-party marketing company to solicit prospective patients for compounded drug prescriptions regardless of patient need. The marketing company arranged for prescribers to sign those prescriptions, which were then referred to AgeVital to be filled. The kickbacks to the marketing entity allegedly consisted of a substantial share of the pharmacy’s TRICARE and Medicare reimbursements. The Anti-Kickback Statute prohibits, among other things, the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program. Claims submitted to federal health care programs in violation of the Anti-Kickback Statute can subject the violator to liability under the False Claims Act.
“The Department will continue to hold accountable providers that pay illegal kickbacks to induce patient referrals,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Kickback schemes undermine public trust in our health care system and lead to unnecessary health care costs at taxpayers’ expense.”
“We will not tolerate those who profit at the expense of taxpayers by entering into illegal kickback arrangements,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “Our office is committed to holding individuals accountable for corporate malfeasance.”
“These prescriptions were ordered to increase profits, not improve the healthcare of patients. Healthcare providers who satiate their greed at the expense of the American taxpayer will not be tolerated,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (OIG). “This settlement demonstrates the resolve of OIG and our law enforcement partners to root out fraud, waste, and abuse in our healthcare system.”
“I thank the Department of Justice and the U.S. Attorney for their efforts throughout this investigation,” said Vice Admiral Raquel Bono, director of the Defense Health Agency. “American service members, veterans, and their families appreciate that the Department of Justice works diligently to safeguard their health benefit. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies, to investigate all those who participate in fraudulent practices.”
The settlement resolves a lawsuit filed in federal court in Tampa, Florida, by Manfred Knopf, who allegedly received unwanted compounded medications from AgeVital that were billed to Medicare. That lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act. The Act permits private parties to bring a lawsuit on behalf of the United States for false claims and to share in any recovery. Mr. Knopf will receive at least $139,500 of the settlement.
The United States’ investigation of this matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the U.S. Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned United States ex rel. Knopf v. AgeVital Pharmacy, LLC et al., Case No. 8:15-cv-2591-T-36JSS (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Florida Compounding Pharmacy and Its Owners to Pay at Least $775,000 to Resolve False Claims Act AllegationsRead the Press Release
Tampa, FL – The Department of Justice announced today that Vital Life Institute LLC (formerly known as AgeVital Pharmacy LLC), located in Sarasota, Florida, and owners Jenny and William Wilkins have agreed to pay at least $775,000 to resolve claims that they violated the False Claims Act by engaging in an illegal kickback scheme to induce the referral of compounded drug prescriptions for TRICARE and Medicare beneficiaries. AgeVital and the Wilkinses have agreed to pay additional amounts in the event certain contingencies are triggered.
The settlement resolves allegations that AgeVital, at the direction of the Wilkinses, paid kickbacks to a third-party marketing company to solicit prospective patients for compounded drug prescriptions regardless of patient need. The marketing company arranged for prescribers to sign those prescriptions, which were then referred to AgeVital to be filled. The kickbacks to the marketing entity allegedly consisted of a substantial share of the pharmacy’s TRICARE and Medicare reimbursements. The Anti-Kickback Statute prohibits, among other things, the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program. Claims submitted to federal health care programs in violation of the Anti-Kickback Statute can subject the violator to liability under the False Claims Act.
“The Department will continue to hold accountable providers that pay illegal kickbacks to induce patient referrals,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Kickback schemes undermine public trust in our health care system and lead to unnecessary health care costs at taxpayers’ expense.”
“We will not tolerate those who profit at the expense of taxpayers by entering into illegal kickback arrangements,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “Our office is committed to holding individuals accountable for corporate malfeasance.”
“These prescriptions were ordered to increase profits, not improve the healthcare of patients. Healthcare providers who satiate their greed at the expense of the American taxpayer will not be tolerated,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (OIG). “This settlement demonstrates the resolve of OIG and our law enforcement partners to root out fraud, waste, and abuse in our healthcare system.”
“I thank the Department of Justice and the U.S. Attorney for their efforts throughout this investigation,” said Vice Admiral Raquel Bono, director of the Defense Health Agency. “American service members, veterans, and their families appreciate that the Department of Justice works diligently to safeguard their health benefit. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies, to investigate all those who participate in fraudulent practices.”
The settlement resolves a lawsuit filed in federal court in Tampa, Florida, by Manfred Knopf, who allegedly received unwanted compounded medications from AgeVital that were billed to Medicare. That lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act. The Act permits private parties to bring a lawsuit on behalf of the United States for false claims and to share in any recovery. Mr. Knopf will receive at least $139,500 of the settlement.
The United States’ investigation of this matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the U.S. Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned United States ex rel. Knopf v. AgeVital Pharmacy, LLC et al., Case No. 8:15-cv-2591-T-36JSS (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Winter Park Man Charged with over $8 Million in FraudRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Bryan L. Brewer (43, Winter Park) with six counts of wire fraud, four counts of bank fraud, and four counts of money laundering. If convicted, Brewer faces a maximum penalty of 20 years in federal prison for each wire fraud count, up to 30 years’ imprisonment for each bank fraud count, and up to 10 years in prison for each money laundering count.
According to the indictment and information presented in court, Brewer engaged in two fraudulent schemes totaling more than $8 million. In one scheme, Brewer solicited an individual to invest in a company that manufactured paddleboards by the name of USBoardco (also known as WatersEdge). As part of the scheme, Brewer sent the victim copies of bank statements, tax returns, and other financial documents that had been falsified to inflate the sales, profits, income, and bank account balance for the company. In reliance upon those and other misrepresentations, the victim invested over $1 million.
The second scheme involved real estate located in Seminole County, wherein an individual loaned over $4 million to assist Brewer in the purchase of the property in 2012. In return, that individual obtained a mortgage on the property. Brewer later requested a bank to lend money to one of his companies, with the understanding that it would be secured by a mortgage on the same property that was already mortgaged. To induce the bank to make the loan, Brewer set up a false email account for the individual, who had loaned the money in 2012, which was then used to send the bank a forged letter falsely promising that the individual would release his mortgage for $3.5 million. Relying upon that letter and other misrepresentations, the bank loaned one of Brewer’s companies more than $7 million.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI and the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
Tampa Man Caught in Undercover Sting Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Steven Weaver, II (38, Tampa) to 15 years in federal prison for possessing a firearm as a convicted felon. Weaver had pleaded guilty on November 1, 2018.
According to court documents, over the course of several months, Weaver sold undercover agents cocaine, ammunition, and at least 11 firearms. Weaver had reason to believe that the firearms would be trafficked to and resold in other markets, including New York City. Weaver’s criminal history includes cocaine trafficking, aggravated battery with a deadly weapon, and other firearm-related offenses.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Murray.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Tampa Man Pleads Guilty to Possessing A Firearm as A Convicted FelonRead the Press Release
Tampa, Florida – Jauwan Smith (22, Tampa) has pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. His sentencing date has not yet been set.
According to the facts presented at the plea hearing, on the evening of March 6, 2018, officers from the Tampa Police Department observed Smith walking near Chelsea Street and 25th Street North in Tampa. When the officers approached Smith and engaged him in conversation, he admitted that he was armed with a gun. The officers then found a loaded 7.56 mm caliber pistol, containing seven rounds of ammunition, in his waistband.
In 2014, in Hillsborough County, Smith was convicted of felony offenses, including armed robbery and being a felon in possession of a firearm. As a result, he is prohibited from possessing a firearm or ammunition.
This case was investigated by the FBI and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Port Charlotte Woman Sentenced to Prison for Healthcare FraudRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday has sentenced Lisa McLaren Janick (48, Port Charlotte) to 16 months in federal prison for healthcare fraud.
According to court records, while employed as a marketer at a home health agency, Janick falsified documents relating to patients from her husband’s medical office and created referrals for these patients to receive home health services from her employer, when Janick knew that the patients were not entitled to such services.
Janick’s husband, Dr. John Janick (73, Port Charlotte), was previously sentenced to five months in prison for obstruction of a federal audit.
This case was investigated by FBI and the U.S. Department of Health and Human Services – Office of Inspector General. It was prosecuted by Assistant United States Attorney Rachel Jones.
Orlando Resident Sentenced to 23 Years in Prison for Engaging in A Carjacking Spree with A Semiautomatic Assault RifleRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Cedrick Antwain Gant (28, Orlando) to 23 years in federal prison for carjacking and brandishing a semiautomatic assault weapon during an attempted carjacking. Gant had pleaded guilty on June 28, 2018.
According to court documents, on September 25, 2017, Gant, brandishing a loaded semiautomatic assault rifle, approached an individual as they drove into their driveway at a home in Eustis. As the victim exited the vehicle, Gant demanded the victim’s keys and wallet. Gant then unsuccessfully attempted to carjack the victim’s vehicle.
Approximately an hour later, as another individual exited their vehicle at a home in Apopka, Gant approached the individual brandishing the same semiautomatic assault rifle and demanded that the victim drop their keys. In fear for their life, the victim threw the car keys to the ground, ran away, and called 911. Gant then drove off with the vehicle and attempted to flee from law enforcement in a subsequent car chase. Officers were successful in stopping the vehicle in the area of US 441 and Roger Williams Road, but Gant fled on foot and entered a residence occupied by a third victim and demanded a change of clothes and to use a telephone. After securing the third victim’s residence, law enforcement officers located Gant hiding in a wooded area behind the home.
This case was investigated by the FBI, the Apopka Police Department, and the Eustis Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
Fort Myers Pain Management Physician Sentenced to Eighteen Months in Prison in Kickback SchemeRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell today sentenced Dr. Michael Frey (46, Fort Myers) to 18 months in federal prison for conspiracy to receive healthcare kickbacks. Frey had pleaded guilty in June 2018. In addition to his guilty plea, Frey previously agreed to a civil settlement in which he will pay $2.8 million to the United States to resolve allegations that he violated the False Claims Act in a number of ways, including receiving illegal kickbacks and by ordering medically unnecessary laboratory tests.
During the time of the conspiracy, Frey was a practicing interventional pain management specialist and one of the two principal owners of Advanced Pain Management Specialists, P.A., which is located in Fort Myers.
According to the plea agreement, beginning in 2010, Frey conspired with the owners of A&G Spinal Solutions, LLC, a durable medical equipment provider operating in Fort Myers, to receive compensation in exchange for referrals to A&G Spinal. Frey was paid a percentage of A&G Spinal’s profits based on his referrals and the referrals from other Advanced Pain providers. A&G Spinal compensated Frey through checks made payable to his wife. Through this arrangement, A&G Spinal created the impression that Mrs. Frey was an employee of A&G Spinal, when she was not.
The two principals of A&G Spinal, Ryan Williamson and William Pierce, previously pleaded guilty and have been sentenced to one year and nine months in prison, respectively, for conspiring to pay healthcare kickbacks to Frey.
In addition, from 2013 to 2015, Frey also received cash payments from Ryan Williamson in exchange for referrals of compound pharmaceutical pain cream prescriptions.
In his plea agreement, Frey also admitted that he had received kickbacks in the form of “speaker fees” paid to him in connection with his participation in largely bogus Insys Therapeutics, Inc. speaker event programs. Insys manufactures a fentanyl sublingual spray known as SUBSYS. Insys paid kickbacks to Frey to induce him to write prescriptions for their product.
“This sentencing of a medical provider who defrauded the Department of Defense TRICARE program should serve as a stern warning to any medical practitioners who believe they can get away with schemes to waste and divert precious taxpayer dollars for their personal gain,” said Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service. “DCIS continues to protect the integrity of all critical DoD programs by aggressively investigating those who violate the law, and bringing them to justice.”
“Dr. Frey allowed bribes and greed to guide his decision making instead of his obligation to his patients,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s sentencing demonstrates that the OIG and our partners will hold accountable those intent on fraudulently lining their own pockets with precious tax dollars from government health care programs.”
This case was prosecuted by Assistant United States Attorneys Simon Eth and Rachel K. Jones, with assistance from the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services–Office of Inspector General, and the U.S. Postal Service–Office of Inspector General.
Today’s resolution illustrates the government’s commitment to combating improper practices that implicate the nation’s federally subsidized health care programs, using all statutory and common law remedies available to address such schemes. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477). The claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
Former Owner of Stenotype Institute of Jacksonville Sentenced to Prison and Ordered to Pay over $288,000 in Restitution to Former Students and U.S. Department of EducationRead the Press Release
Jacksonville, Florida – U.S. District Judge Harvey S. Schlesinger has sentenced Gloria Wiley (73, Danville, KY) to one year and one day in federal prison for failing to refund federal student aid money, commonly referred to as Stafford Loans and Pell Grants. The court also ordered Wiley to pay $288,875.92 in restitution to former students of Stenotype Institute, the U.S. Department of Education, and the U.S. Department of Veterans Affairs. Wiley had pleaded guilty on November 13, 2018.
According to court documents, Wiley was the owner of Stenotype Institute of Jacksonville, Inc.—a Jacksonville-based stenography school that provided professional education to individuals pursuing stenography careers, including court reporting and medical transcription. Stenotype was authorized to receive federal student aid funds from the U.S. Department of Education on behalf of its students to cover tuition, fees, and living expense stipends. Excess funds drawn on behalf of students were required to be refunded to the U.S. Department of Education or to the student within 45 days.
Beginning in June 2015, instead of refunding the excess funds, Stenotype began tracking the amounts owed in a spreadsheet. Meanwhile, Wiley continued to draw funds from the school for personal use. In total, Wiley and Stenotype held approximately $290,000 in refunds due to the U.S. Department of Education and to former students, and $9,000 due to the Department of Veterans Affairs, none of which have ever been paid. Stenotype ceased operations in March 2016, shortly after a program review by the U.S. Department of Education.
This case was investigated by the U.S. Department of Education – Office of Inspector General and the U.S. Department of Veterans Affairs – Office of Inspector General. It was prosecuted by Assistant United States Laura Cofer Taylor.
Federal Inmate Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
Ocala, Florida – German De Jesus Ventura (40, Sumter County) has pleaded guilty to one count of assault with a dangerous weapon with intent to inflict bodily harm. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set. Ventura is currently serving a federal sentence for a sex trafficking conviction in the District of Maryland.
According to court documents, Ventura was an inmate at the Coleman Federal Correctional Complex in Florida, when in August 2017, he repeatedly struck another inmate in the back of the head with a homemade weapon consisting of a solid metal plate attached to a lanyard. The victim suffered a large head wound, two depressed skull fractures, and significant blood loss. A correctional officer who witnessed the assault quickly apprehended Ventura as he attempted to discard the weapon and run away from the incident scene.
This case was investigated by the FBI – Ocala Resident Agency and the Federal Bureau of Prisons. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
Dunedin Psychologist Pleads Guilty to Obstruction of A Medicare AuditRead the Press Release
Tampa, Florida – Dr. Charles Gerardi (76, Dunedin) has pleaded guilty to obstructing a Medicare audit. He faces a maximum penalty of 5 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in 2012, a federal Medicare auditor performed an audit of Gerardi’s employer related to 350 claims, and more than 2,300 individual services that Gerardi had purportedly performed. In response to the audit request, Gerardi provided the auditor with a series of fabricated records, which were designed to fraudulently support the medical necessity of the claims. Gerardi knew that the claims under review were not otherwise supportable, and fabricated the records for the purpose of impeding the auditor's performance of the audit.
This case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Rachel Jones.
Citizen of Mexico and Leader of Georgia-Based Drug Trafficking Organization Pleads Guilty to Conspiring to Distribute Large Amounts of Methamphetamine in Central FloridaRead the Press Release
Orlando, Florida– Juan Alberto Flores-Jimenez (34, Tamaulipas, Mexico), a/k/a Juan Cantu, a/k/a Stoner, today pleaded guilty to conspiring to possess with the intent to distribute 50 grams or more of methamphetamine. He faces a maximum penalty of life in federal prison. Flores-Jimenez is the eighteenth person to plead guilty as a result of a joint FBI and DEA investigation into drug trafficking organizations that supplied motorcycle clubs, including the Pagans Motorcycle Club, with distribution amounts of methamphetamine.
According to the plea agreement, Flores-Jimenez, an alien residing illegally within the United States, was the leader of a drug-trafficking-organization (DTO) distributing kilogram amounts of methamphetamine from Georgia to other DTOs located in central Florida. Flores-Jimenez obtained large amounts of methamphetamine from a DTO operating in Georgia. In some instances, members of different Florida-based DTOs traveled to Georgia to pick up large amounts of methamphetamine from the Flores-Jimenez DTO for further distribution in Florida. In other instances, runners associated with the Flores-Jimenez DTO transported large amounts of methamphetamine from Georgia to locations in Jacksonville and Daytona Beach. Members of the Flores-Jimenez DTO delivered the methamphetamine to individuals, who then further distributed the drugs to different groups and individuals in central Florida. Between April 2017 and September 13, 2018, Flores-Jimenez was responsible for distributing at least 4.5 kilograms of methamphetamine in the Middle District of Florida.
Flores-Jimenez, a native and citizen of Mexico, was ordered removed/deported from the United States in 2014 and 2015. On September 13, 2018, law enforcement arrested Flores-Jimenez and charged him will illegal reentry into the United States, after being previously removed. On January 2, 2019, in a separate case, he pleaded guilty to that charge.
This case was investigated by the FBI, the DEA, the Volusia Bureau of Investigation, the Volusia County Sheriff’s Office, and the Daytona Beach Police Department. It is being prosecuted by Assistant United States Attorney Sean P. Shecter.
Jacksonville Woman Sentenced to 40 Years for Producing Sexual Abuse Videos Involving A ChildRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Christine Alyce Slayman (28, Jacksonville) to 40 years in federal prison for producing child pornography. Slayman was ordered to serve a life term of supervision, following her release from prison. She had pleaded guilty to two counts of producing child pornography on August 30, 2018.
According to court documents, over a several month period in 2015, Slayman sexually abused a 6-year-old child in King William, Virginia. She recorded the abuse using her cellphone. The Jacksonville Sheriff’s Office found the videos in Slayman’s Jacksonville home, after receiving a tip. Slayman had filmed herself engaged in sexual activity with the child, which included Slayman directing the child to engage in sex acts. Federal agents located 18 different video files of Slayman sexually abusing the child.
“While today’s sentencing marks an end to the investigation and prosecution of this criminal, it is important to remember that a child will carry the scars of this crime for their lifetime,” said HSI Tampa Special Agent in Charge James C. Spero.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Kelly S. Karase and Ashley Washington.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tampa Man Sentenced to Five Years in Prison for Scheme Involving Nearly $400,000 in Stolen Federal Tax Refund ChecksRead the Press Release
Tampa, Florida – Senior U.S. District Judge James Moody, Jr. today sentenced Taurence Creary (47, Tampa) to five years in federal prison for conspiracy, receipt of stolen government property, and aggravated identity theft. Creary had pleaded guilty on April 5, 2018.
According to court documents, Creary obtained a number of genuine federal tax refund checks that had been stolen en route to the intended taxpayers, who were identity theft victims living in the Middle District of Florida. Creary and others then sold or attempted to sell the checks to third parties. The U.S. Department of Treasury tax refund checks ranged in amounts from $4,000 to more than $100,000, with an aggregate value of over $398,000.
On May 10, 2018, U.S. District Judge Mary S. Scriven sentenced Xavier Williams, Creary’s co-conspirator, to three years in federal prison for his role in the scheme.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorneys Rachel K. Jones and Eric K. Gerard.
Three Individuals Indicted for Conspiracy to Commit Theft of Government Property and Aggravated Identity TheftRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of a
16-count indictment charging Deborah Pierre (31, Haines City), Billy Altidor (28, Wellington), and Evanie Louis (26, Wellington) with conspiracy to commit theft of government property, theft of government property, and aggravated identity theft. Each faces a maximum penalty of 10 years in federal prison for each theft charge, 5 years’ imprisonment on each conspiracy charge, and a minimum mandatory consecutive penalty of 2 years for the aggravated identity theft charge. The indictment also notifies the individuals that the United States is seeking a money judgment of $91,749.30, the proceeds of the alleged conspiracy.According to the indictment, Louis and Altidor conspired among themselves, and with others, to commit stolen identity refund fraud. The conspirators used stolen identities to file false tax returns and then directed the fraudulently obtained tax refunds to be deposited into accounts that they controlled. In addition, they activated debit cards and bank accounts using the stolen identities and received the fraudulently claimed tax refunds in those accounts.
Louis, Alitdor, and Pierre also conspired among themselves, and with others, to use stolen identities to access the MySocialSecurity system and redirect Social Security benefit payments to accounts controlled by the conspirators.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Social Security Administration – Office of the Inspector General, the Internal Revenue Service – Criminal Investigation, and the Department of the Treasury Office of the Inspector General. It will be prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Clermont Eye Doctors Agree to Pay over $157,000 to Settle False Claims Act Liability for Improperly Billing MedicareRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces today that Dr. Craig D. Fishman and Dr. Jeffrey A. Sheridan have agreed to pay the United States a combined total of $157,312.32 to resolve allegations that they violated the False Claims Act by knowingly billing the government for mutually exclusive eyelid repair surgeries. Dr. Fishman and Dr. Sheridan are ophthalmologists who operate Fishman & Sheridan Eye Care Specialists.
The settlement relates to Dr. Fishman and Dr. Sheridan’s billing of two procedures, blepharoplasty and ptosis. Medicare identifies these procedures as mutually exclusive eyelid repair surgeries that usually should not be billed simultaneously. According to the settlement agreement, from April 11, 2011, through March 31, 2017, Dr. Fishman and Dr. Sheridan each regularly billed for simultaneously performing blepharoplasty and ptosis on patients and submitted those claims to the United States for reimbursement.
“Protecting Medicare and other federal health care programs from fraud is a priority of the U.S. Attorney’s Office,” said U.S. Attorney Maria Chapa Lopez. “This settlement highlights our commitment to identifying doctors who do not follow the law.”
“Improperly billing for services to increase revenue burdens our healthcare system,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Our agency will continue to investigate health care providers that seek to illegally boost profits at the expense of federal health care programs.”
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by two whistleblowers—Dr. Michael Pennachio, a former partner of Drs. Fishman and Sheridan, and Sharon Drake, their former office manager. Dr. Pennachio and Ms. Drake sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting private citizens to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. Dr. Pennachio and Ms. Drake will receive $26,000 of the proceeds from the settlement with Dr. Fishman and Dr. Sheridan.
This settlement resulted from an investigation coordinated by Assistant U.S. Attorney Jeremy R. Bloor, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case is captioned United States ex rel. Michael Pennachio, M.D. and Sharon Drake v. Craig D. Fishman, M.D., and Jeffrey A. Sheridan, M.D., Case No. 5:17-cv-152-OC-34PRL. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Seventeen Individuals, Including Several Members of the Pagans Motorcycle Club, Plead Guilty for Conspiring to Distribute MethamphetamineRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces guilty pleas by the following individuals in four separate cases:
United States v. Barbara Caylor-Hernandez et al., Case No. 6:18-cr-184-Orl-37TBS
Name Age/City Date of Plea Pleaded Guilty to the Following ChargeBarbara Caylor-Hernandez
a/k/a “Barb”
a/k/a “Barbie”
47, Ormond Beach
1/9/2019
Conspiracy to distribute 50 grams or more of methamphetamine.
Ramiro Fraire-Chavarria
44, Dalton, GA
1/29/2019
Conspiracy to distribute 50 grams or more of methamphetamine.
Michael Babin
47, Daytona Beach
1/20/2019
Conspiracy to distribute 50 grams or more of methamphetamine.
Melanie Kerr
28, Daytona Beach
1/30/2019
Conspiracy to distribute 50 grams or more of methamphetamine.
Keith Simmons
41, Oak Hill
1/16/2019
Conspiracy to distribute 50 grams or more of methamphetamine and distribution of 50 or more grams of methamphetamine.
Carla Ray
51, Oak Hill
1/29/2019
Conspiracy to distribute 50 grams or more of methamphetamine.
Spencer Burkard
49, New Smyrna Beach
1/31/2019
Conspiracy to distribute 50 grams or more of methamphetamine and distribution of 50 or more grams of methamphetamine.
Robert Foster
357, St. Augustine
1/24/2019
Conspiracy to distribute 50 grams or more of methamphetamine and distribution of 50 or more grams of methamphetamine.
Daniel Barbarino
54, Daytona Beach
1/28/2019
Conspiracy to distribute 50 grams or more of methamphetamine.
Andrew Shettler
a/k/a “Yeti”
33, Palm Coast
1/30/2019
Conspiracy to distribute 50 grams or more of methamphetamine.
Brian Burt
a/k/a “Sledge”
47, Port Orange
1/16/2019
Conspiracy to distribute 50 grams or more of methamphetamine.
Lawrence Sann
55, Bunnell
1/25/2019
Conspiracy to distribute 5 grams or more of methamphetamine.
United States v. Keith Kirchoff et al., Case No. 6:18-cr-183-Orl-37DCI
Name Age/City Date of Plea Pleaded Guilty to the Following ChargeAndrew Shettler
a/k/a “Yeti”
33, Palm Coast
1/30/2019
Conspiracy to distribute 50 grams or more of methamphetamine.
Michael Andrews
a/k/a “Clutch”
33, Palm Coast
1/29/2019
Conspiracy to distribute 50 grams or more of methamphetamine.
United States v. Cindy Bledsoe et al., Case No. 6:18-cr-182-Orl-37KRS
Name Age/City Date of Plea Pleaded Guilty to the Following ChargeJason Stringer
38, Daytona Beach
1/29/2019
Conspiracy to distribute 5 grams or more of methamphetamine.
Michael Andrews
a/k/a “Clutch”
33, Palm Coast
1/29/2019
Conspiracy to distribute 50 grams or more of methamphetamine.
United States v. Salvador Rivas et al., Case No 6:18-cr-213-Orl-37TBS
Name Age/City Date of Plea Pleaded Guilty to the Following ChargeSalvador Rivas
a/k/a “Shadow”
29, Jacksonville
1/31/2019
Conspiracy to distribute 5 grams or more of methamphetamine.
Melissa Ford
35, Daytona Beach
1/28/2019
Conspiracy to distribute 50 grams or more of methamphetamine and distribution of 50 or more grams of methamphetamine.
Theodore Bilski
53, Daytona Beach
1/29/2019
Conspiracy to distribute 50 grams or more of methamphetamine.
Caylor-Hernandez, Fraire-Chavarria, Babin, Kerr, Simmons, Ray, Burkard, Foster, Barbarino, Burt, Shettler , Andrews, Rivas, Ford, and Bilski each face a maximum penalty of life in federal prison. Sann and Stringer each face a maximum penalty of 40 years in federal prison. A sentencing date has not yet been set.
According to court documents, in April 2017, the FBI, and later the DEA, began an investigation into the drug trafficking organizations (DTO) that had supplied motorcycle clubs, including the Pagans Motorcycle Club, operating in the Middle District of Florida with distribution amounts of methamphetamine.
During the investigation, law enforcement learned that Caylor-Hernandez was one of the leaders of a DTO distributing kilogram amounts of methamphetamine to other DTOs and individuals located in central Florida. Members of the Caylor-Hernandez DTO transported methamphetamine from Georgia to various cities in central Florida, including St. Augustine, Holly Hill, and Daytona Beach, for further distribution.
One of the members of the Caylor-Hernandez DTO, Kerr, then distributed the methamphetamine to Burt and Shettler. At the time, Burt was a member of the Pagans’ Mother Chapter, a group of 13 members that direct the Pagans’ criminal activities throughout the United States. Shettler was a member of the Thunderguards Motorcycle Club, a club affiliated with the Pagans.
Law enforcement also learned that Andrews, who was the sergeant-at-arms or enforcer for the local Pagans’ chapter located in Daytona Beach, received distribution amounts of methamphetamine from several sources, including a DTO operating in both Georgia and central Florida. That DTO transported large amounts of methamphetamine from Georgia to central Florida for further distribution.
These cases were investigated by the FBI, DEA, the Volusia Bureau of Investigation, the Volusia County Sheriff’s Office, and the Daytona Beach Police Department. It is being prosecuted by Assistant United States Attorney Sean P. Shecter.
Steroid Distributor Sentenced to Federal PrisonRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell has sentenced John Dillon Williamson (27, Orlando) to four years in federal prison for distributing anabolic steroids. Williamson had pleaded guilty on November 13, 2018.
According to court documents, Williamson conspired with others over several years to distribute hundreds of kilograms of anabolic steroids. Williamson and his co-conspirators ordered the steroids from overseas suppliers, received them at several addresses in central Florida and elsewhere, combined them into various mixtures, and used the internet to distribute the steroids throughout the United States.
This case was investigated by the Drug Enforcement Administration, the U.S. Postal Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
Members of Violent Robbery Organization Sentenced for Robberies Throughout Middle District of FloridaRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Shamar Lajuan Thomas (26, Clearwater), a/k/a “Baby,” to 35 years in federal prison for conspiracy to commit robbery, robbery, and using or carrying a firearm in furtherance of a violent crime. A federal jury found Thomas guilty on October 11, 2018. Thomas was the last member of the Polk County-based criminal organization to be convicted of conducting armed robberies of other drug dealers.
According to evidence presented at trial, from at least April 2007, and continuing through July 20, 2017, Marion Dwight, Jr. conspired with Thomas and others to commit multiple armed robberies and burglaries of several local drug dealers. During each of the incidents, they discharged or brandished firearms. To date, the FBI has identified at least 14 armed robberies and 4 armed burglaries that were committed by Dwight and his co-conspirators.
In June 2016, Thomas and his co-conspirator, Fredrick James Burney, Jr. a/k/a “Frido,” forced their way inside of a home in Lakeland in search of narcotics and cash. While inside, they held a male victim at gunpoint, shot at a female victim, and stole cash and a firearm from the victims. During the robbery, Thomas physically attacked the woman and repeatedly hit her in the head with his firearm, causing her to bleed profusely.
Seven others have pleaded guilty to various offenses. Each faces a maximum penalty of life imprisonment, as noted below:
Name
Age, Residence
Status
Bradney Henry McGary
32, Lakeland
Pleaded guilty to 1 count of conspiracy to distribute 500 grams or more of cocaine, 1 count of conspiracy to commit robbery, 2 counts of robbery, and 1 count of discharging a firearm in furtherance of a violent crime.
Sentenced to 19 years and 2 months imprisonment on October 17, 2018.
Sherrod Raeshad Gordon,
a/k/a “Hott”
32, Tampa
Pleaded guilty to 1 count of conspiracy to commit robbery, 2 counts of robbery, and 2 counts of discharging a firearm in furtherance of a violent crime.
Sentenced to 29 years and 8 months imprisonment on February 1, 2019.
Marion Dwight, Jr.
a/k/a “Woe,”
a/k/a “Woe Money”
31, Lakeland
Pleaded guilty to 1 count of conspiracy to commit robbery, 2 counts of robbery, and 2 counts of discharging and brandishing a firearm in furtherance of a violent crime.
Faces a minimum mandatory sentence of 35 years, and up to life in federal prison.
Sentencing scheduled for April 4, 2019.
Michael James Baker,
a/k/a “Bake,”
a/k/a “Maserati”
35, Clearwater
Pleaded guilty to 1 count of conspiracy to commit robbery, 2 counts of robbery, and 2 counts of brandishing and discharging a firearm in furtherance of a violent crime.
Faces a minimum mandatory sentence of 32 years, and up to life, in federal prison.
Sentencing scheduled for March 15, 2019.
Fredrick James Burney, Jr.,
a/k/a “Frido”
a/k/a “Free”
28, Clearwater
Pleaded guilty to 1 count of conspiracy to commit robbery, 2 counts of robbery, and 2 counts of discharging a firearm in furtherance of a violent crime.
Faces a minimum mandatory sentence of 35 years, and up to life, in federal prison.
Sentencing scheduled for April 11, 2019.
Antonio Marquis Roddy,
a/k/a “Lil Head”
31, Orlando
Pleaded guilty to 1 count of conspiracy to commit robbery, 2 counts of robbery, and 2 counts of discharging and brandishing a firearm in furtherance of a violent crime.
Faces a minimum mandatory sentence of 35 years, and up to life, in federal prison.
Sentencing scheduled for March 15, 2019.
Jevin Michael Stone
30, Lakeland
Pleaded guilty to 1 count of conspiracy to commit robbery, 2 counts of robbery, and 2 counts of discharging and brandishing a firearm in furtherance of a violent crime.
Faces a minimum mandatory sentence of 35 years, and up to life, in federal prison.
Sentencing scheduled for March 15, 2019.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and James Muench.
Fentanyl and Heroin Trafficker Sentenced to Nearly 16 YearsRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Roderick Lamar Duval (39, Bradenton) to 15 years and 8 months in federal prison for distributing fentanyl and heroin. He had pleaded guilty on September 27, 2018.
According to court documents, Duval sold fentanyl and heroin to an undercover detective on multiple occasions. During one of the transactions, Duval sold the fentanyl and heroin to the undercover detective within 1,000 feet of an elementary school in Bradenton.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
Armed Drug Trafficker Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Peter Jackson (31, St. Petersburg) to 12 years and 6 months in federal prison for possessing a firearm in furtherance of a drug trafficking crime. Jackson had pleaded guilty on October 29, 2018.
According to court documents, on May 9, 2018, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a search warrant at a house in St. Petersburg. As the agents approached the home, they found Jackson sitting on the front porch with crack cocaine and a loaded pistol. He was waiting to sell the crack cocaine to a customer.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Federal Jury Finds Orlando Man Found Guilty of Walmart RobberiesRead the Press Release
Orlando, Florida – A federal jury has found Catrell Ivory (27, Orlando) guilty of two robberies, an attempted robbery, and two counts of brandishing a firearm during a robbery, in connection with a series of armed Walmart robberies he committed in Orlando. Ivory faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for April 24, 2019.
According to evidence presented at trial, shortly after midnight on June 2, 2017, Ivory and his accomplices robbed the Walmart Neighborhood Market located at 5559 Clarcona Ocoee Road in Orlando. The store managers were held at gunpoint and more than $74,000 was stolen from the vault inside the cash office. On July 31, 2017, at approximately 3:00 a.m., Ivory and his accomplices robbed another Walmart Market located at 2715 S. Orange Avenue in Orlando. They held a store manager at gunpoint and stole more than $24,000 from the cash office. On August 10, 2017, Ivory and his accomplices attempted to rob a third Walmart Market located at 8801 Conroy Windermere Road in Orlando, but they were unable to get into the cash office.
During each incident, Ivory and his accomplices carried and brandished firearms and wore masks and gloves to conceal their identities.
This case was investigated by the Federal Bureau of Investigation, the Orange County Sheriff’s Office, the Osceola County Sheriff’s Office, and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Pathology Laboratory Agrees to Pay $63.5 Million for Providing Illegal Inducements to Referring PhysiciansRead the Press Release
Pathology laboratory company Inform Diagnostics has agreed to pay $63.5 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. Inform Diagnostics, formerly known as Miraca Life Sciences Inc., is headquartered in Irving, Texas, and was a subsidiary of Miraca Holdings Inc., a Japanese company, during the period relevant to the case. In 2017, majority ownership of the company changed, and the company was renamed.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “In addition to yielding a substantial recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The settlement announced today resolves allegations that the company violated the Anti-Kickback Statute and the Stark Law by providing to referring physicians subsidies for electronic health records (EHR) systems and free or discounted technology consulting services. The Anti-Kickback Statute and the Stark Law restrict the financial relationships that health care providers, including laboratories, may have with doctors who refer patients to them. Although regulations adopted by the Department of Health and Human Services (HHS) in 2006 included provisions that allowed laboratories to provide EHR donations to physicians under certain conditions, the United States alleged that the defendant violated those conditions. HHS withdrew those exemptions for laboratories in 2013.
“The wellbeing and needs of the patient should always be a medical provider’s primary considerations,” said U.S. Attorney Don Cochran of the Middle District of Tennessee. “The restrictions imposed by federal statutes exist to prevent improper influence on the parties prescribing and providing medical services, including laboratory tests. We will continue to enforce the laws that protect the integrity of federal health care programs.”
“Patients deserve the unfettered, independent judgment of their health care professionals. Offering financial incentives to physicians and medical practices in exchange for referrals undermines citizens’ trust in our health care system,” said United States Attorney Maria Chapa Lopez of the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”
“When health care providers are distracted by suspect financial arrangements, the interests of patients can be cast aside,” said Special Agent in Charge Derrick L. Jackson of HHS OIG. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
The allegations stem from three lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The whistleblowers’ share of the settlement announced today has not yet been determined.
The case was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Tennessee, the U.S. Attorney’s Office for the Middle District of Florida, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The claims asserted against Miraca are allegations only, and there has been no determination of liability.
The cases are captioned: United States ex rel. Dorsa v. Miraca Life Sciences, Inc., Case No. 13-cv-1025 (M.D. Tenn.); United States ex rel. LPF, LLC v. Miraca Life Sciences, Inc., et al., 3:16-cv-1355 (M.D. Tenn.); and United State ex rel. Heaphy, et al. v. Miraca Life Sciences, Inc., 3:18-cv-1027 (M.D. Tenn.).
Pathology Laboratory Agrees to Pay $63.5 Million for Providing Illegal Inducements to Referring PhysiciansRead the Press Release
Tampa, FL – Pathology laboratory company Inform Diagnostics has agreed to pay $63.5 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. Inform Diagnostics, formerly known as Miraca Life Sciences Inc., is headquartered in Irving, Texas, and was a subsidiary of Miraca Holdings Inc., a Japanese company, during the period relevant to the case. In 2017, majority ownership of the company changed, and the company was renamed.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “In addition to yielding a substantial recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The settlement announced today resolves allegations that the company violated the Anti-Kickback Statute and the Stark Law by providing to referring physicians subsidies for electronic health records (EHR) systems and free or discounted technology consulting services. The Anti-Kickback Statute and the Stark Law restrict the financial relationships that health care providers, including laboratories, may have with doctors who refer patients to them. Although regulations adopted by the Department of Health and Human Services (HHS) in 2006 included provisions that allowed laboratories to provide EHR donations to physicians under certain conditions, the United States alleged that the defendant violated those conditions. HHS withdrew those exemptions for laboratories in 2013.
“The wellbeing and needs of the patient should always be a medical provider’s primary considerations,” said U.S. Attorney Don Cochran of the Middle District of Tennessee. “The restrictions imposed by federal statutes exist to prevent improper influence on the parties prescribing and providing medical services, including laboratory tests. We will continue to enforce the laws that protect the integrity of federal health care programs.”
“Patients deserve the unfettered, independent judgment of their health care professionals. Offering financial incentives to physicians and medical practices in exchange for referrals undermines citizens’ trust in our health care system,” said United States Attorney Maria Chapa Lopez of the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”
“When health care providers are distracted by suspect financial arrangements, the interests of patients can be cast aside,” said Special Agent in Charge Derrick L. Jackson of HHS OIG. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
The allegations stem from three lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The whistleblowers’ share of the settlement announced today has not yet been determined.
The case was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Tennessee, the U.S. Attorney’s Office for the Middle District of Florida, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The claims asserted against Miraca are allegations only, and there has been no determination of liability.
The cases are captioned: United States ex rel. Dorsa v. Miraca Life Sciences, Inc., Case No. 13-cv-1025 (M.D. Tenn.); United States ex rel. LPF, LLC v. Miraca Life Sciences, Inc., et al., 3:16-cv-1355 (M.D. Tenn.); and United State ex rel. Heaphy, et al. v. Miraca Life Sciences, Inc., 3:18-cv-1027 (M.D. Tenn.).
Convicted Felon Sentenced to Prison for Possessing A Firearm During Shootout in St. PetersburgRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced Lavonta Hill (28, St. Petersburg) to five years and four months in federal prison for possessing a firearm as a convicted felon. Hill had pleaded guilty on October 30, 2018.
According to court documents, on January 25, 2017, at approximately 3:45 a.m., Hill was involved in a shootout in a residential area of 15th Street South and 14th Avenue South, in St. Petersburg. Shortly after the shooting, officers from the St. Petersburg Police Department (SPPD) found Hill on the ground in the parking lot of a nearby liquor store, bleeding from his wounds. Hill, who at the time was a convicted felon and prohibited from possessing a firearm or ammunition, denied knowing where the shooting occurred, who shot him, or why.
Further investigation by SPPD determined that the shooting had occurred on 15th Street South, approximately 60 shots had been fired, and bullets had struck houses, trees, and cars in the vicinity. In the front yard of one of the residences, an officer found a blue recycling container with blood smeared on it. Under the container, the officer found a firearm. Investigators discovered a trail of blood drops from that residence to the liquor store parking lot. Surveillance video from a nearby grocery store showed Hill staggering across the parking lot and crossing the street toward the liquor store at approximately 3:46 a.m., and witnesses described seeing Hill stumble and sway as he approached the liquor store. DNA from the blood on the firearm and recycling bin matched Hill’s DNA and a firearms and ballistics expert determined that two of the cartridge cases from the shooting scene were fired from the firearm linked to Hill.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Petersburg Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Michael Sinacore.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Clearwater Doctor Sentenced to Prison for Health Care FraudRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody Jr. today sentenced Jayam Krishna Iyer (66, Clearwater) to six months in federal prison for committing health care fraud, ordered Iyer to forfeit over $52,000 in health care fraud proceeds, and order her to pay restitution to the Medicare and Medicaid programs.
In addition, the court ordered Iyer to forfeit her Florida medical license, permanently excluding her from participating in the Medicare and Medicaid programs. And, Iyer agreed to surrender her DEA registration number, which had been used to prescribe controlled substances, and not to reapply for a DEA registration number for at least 20 years.
According to court documents, Iyer owned and operated Creative Medical Center, located on Druid Road East in Clearwater. The center functioned as a pain management clinic; Iyer conducted office visits and wrote prescriptions for controlled substances, including oxycodone, morphine, and fentanyl.
Beginning in July 2011 and continuing through December 2017, Iyer carried out a scheme to defraud Medicare by billing for face-to-face office visits with Medicare and Medicaid patients, when, in fact, certain patients had not gone to Iyer’s office and had not been examined by her on the claimed dates. Instead, family members of patients had visited Iyer’s office, where she issued prescriptions for Schedule II controlled substances, including oxycodone, to the family members in the patients’ names. Iyer thereby violated a Florida law requiring doctors to perform an in-person office visit and examination of each patient before issuing Schedule II controlled substance prescriptions.
Iyer also falsified her electronic medical records, including vital statistics, to make it appear that the actual patients had been present in her office for an office visit, when they had not.
Iyer submitted at least $52,000 in false and fraudulent Medicare and Medicaid claims.
This case was investigated by the Opioid Fraud and Abuse Detection Unit – one of 12 Department of Justice pilot programs created to help combat the opioid crisis that is ravaging families and communities across America. The unit focuses specifically on opioid-related health care fraud using data to identify and prosecute individuals that are contributing to the prescription opioid epidemic. The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, the Florida Office of Attorney General’s Medicaid Fraud Control Unit, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Brevard County Man Pleads Guilty to Producing Child PornographyRead the Press Release
Orlando, Florida – Roberto Oquendo (37, Brevard County) today pleaded guilty to two counts of production of child pornography. He faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison on each count.
According to the plea agreement, on September 15, 2016, in Melbourne, Oquendo was the subject of a traffic stop. During the traffic stop, deputies from the Brevard County Sheriff’s Office received a tip that Oquendo possibly had child pornography in his possession. As a result, task force agents with the FBI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations interviewed Oquendo. During the interview, Oquendo admitted that, for several years, he had used a cellphone to search for and view child pornography. Oquendo also disclosed that while residing in Brevard County, he had used a cellphone to take explicit photos of two female children in his custody.
Further investigation led to the seizure of several items of computer media from a place in Brevard County where Oquendo had resided. The computer media contained thousands of images and videos of the two young girls, who were toddlers at the time, as well as other children, engaged in sexually explicit conduct. Oquendo’s collection of child pornography contained depictions of infants, toddlers, and young children engaged in sexual activity, including sadistic conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Bradenton Man Pleads Guilty to Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – Esterbann Deneus (56, Bradenton) has pleaded guilty to conspiracy to commit theft of government funds and aggravated identity theft. He faces a maximum penalty of five years in federal prison. His sentencing date has not yet been set.
According to court documents and the facts presented at the plea hearing, Deneus was involved in a scheme to deposit tax refunds checks that the IRS had issued due to the filing of false and fraudulent income tax returns submitted in the names of various victim-taxpayers. Between October 2013 and July 2014, Deneus deposited a number third-party tax refund checks into a bank account that he controlled. The investigation revealed that the IRS received fraudulent tax returns resulting in the transmission of more than $84,000 in fraudulent income tax refund checks that were ultimately deposited into Deneus’s bank account. These third-party checks, made payable to victim-taxpayers who knew nothing of the refunds or the returns that had generated them, and who did not know Deneus, were also fraudulently endorsed with forged signatures of the payees.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Two Hondurans Sentenced to Prison for Scheme to Facilitate Employment of Undocumented Aliens in Construction Industry and to Evade Payroll TaxesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Fanny Melina Zelaya-Mendez (39, Jacksonville) and Roger Omar Zelaya-Mendez (34, Jacksonville) to federal prison terms for crimes arising out of a scheme to facilitate the employment of undocumented aliens in the construction industry and to evade state and federal payroll taxes and workers’ compensation laws.
Fanny Zelaya-Mendez was sentenced to four years in federal prison for three counts of conspiracy to commit wire fraud, one count of conspiracy to defraud the IRS, and one count of aggravated identity theft. Roger Zelaya-Mendez was sentenced to two years in prison for one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. The court ordered the Zelaya-Mendezes to forfeit $399,776.43 and two vehicles, all of which was seized during the investigation. The court also ordered them to forfeit a total of $1,033,485 in proceeds from the wire fraud offenses and to pay restitution to the IRS for a tax loss totaling $6,536,796. The Zelaya-Mendezes, who are siblings, are Honduran citizens unlawfully present in the United States. They had previously pleaded guilty to the offenses.
According to court documents, the fraudulent scheme involved the Zelaya-Mendezes establishing shell companies for which they obtained minimal workers’ compensation insurance covering only a few employees. They then entered into agreements with numerous construction contractors to provide hundreds of workers, most of whom were undocumented aliens, for the contractors’ projects.
The contractors wrote payroll checks to the shell companies for the work performed by the workers. The Zelaya-Mendezes cashed the checks, kept 4% as a fee, and distributed the remaining cash to work crew leaders, who then paid the workers in cash. By obtaining and paying the workers through the shell companies, the contractors could disclaim responsibility for ensuring that the workers were legally authorized to work in the United States, that adequate workers’ compensation insurance was provided, and that required payroll taxes were paid.
Between June 2016 and April 2018, a total of $25,837,141 of payroll passed through the shell companies and the Zelaya-Mendezes’s 4% fee totaled $1,033,485. The premiums for a workers’ compensation insurance policy covering hundreds of workers and a payroll of $25,837,141 would have been approximately $6.6 million. Neither the Zelaya-Mendezes nor the contractors remitted payroll taxes to the IRS. According to the IRS, the estimated payroll taxes due on total wages of $25,837,141 is $6,536,796.
When Fanny Melina Zelaya-Mendez was arrested on May 4, 2018, she gave a false name to an immigration officer and claimed to be a U.S. citizen who had been born in Puerto Rico. She also presented a valid Florida Identification Card she had obtained in the false name. Subsequent investigation revealed that the identity she had adopted was for a real U.S. citizen who was born in Puerto Rico and that she had obtained the Florida ID card using a genuine Puerto Rico birth certificate and a genuine Social Security card.
“These sentences should remind anyone who circumvents our nation’s immigration laws and exploits the financial industry that they will be held accountable,” said HSI Tampa Special Agent in Charge James C. Spero.
“Today’s sentences should send a message to those involved in the business of evading employment taxes,” said Special Agent in Charge Mary Hammond of the IRS Criminal Investigation, Tampa Field Office. “Let this be a warning to all that law enforcement will not allow construction contractors to gain an unfair advantage by breaking the law.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Two Men Sentenced for Unlawful Contact with Endangered Florida PanthersRead the Press Release
Fort Myers, FL – On December 27, 2018, U.S. Magistrate Judge Carol Mirando sentenced Javier Torres (42, Miami) to 14 days’ imprisonment for harassing two endangered Florida panther kittens. The court also ordered Torres to pay a $1,000 fine, and sentenced him to complete 200 hours of community service and to serve three years’ probation. On December 18, 2018, Judge Mirando sentenced Alfredo Lopez de Queralta (46, Miami) to complete 100 hours of community service and serve 2 years’ probation in connection with the same incident. Both men previously pleaded guilty on September 12, 2018.
According to court documents, in February 2017, Torres crawled into a Florida panther den in the Big Cypress National Preserve in Collier County and unlawfully removed two panther kittens. Lopez de Queralta filmed Torres as he displayed the kittens for the camera. Later, Lopez de Queralta uploaded and shared segments of the video on YouTube.
“Florida panthers are iconic species that are protected under the Endangered Species Act,” said Luis Santiago, Special Agent in Charge, Southeast Region, United States Fish and Wildlife Service. “This case demonstrates our commitment to protect these species so that they can be recovered and be a part of the landscape for future generations.”
Florida panthers are considered to be among the most critically endangered large mammal species in the world, and experts estimate fewer than 200 Florida panthers are alive today.
This case was investigated by the United States Fish and Wildlife Service, the Florida Fish and Wildlife Conservation Commission, and the National Park Service. It was prosecuted by Assistant United States Attorney Simon Eth.
Two Cuban Citizens Indicted for Conspiracy to Commit Bank Fraud and Bank FraudRead the Press Release
Orlando, Florida – On January 4, 2019, United States Attorney Maria Chapa Lopez announced the return of an indictment charging Catiel Marquez Gonzalez (21) and Yeran Antigua Martinez (37), citizens of Cuba, with conspiracy to commit bank fraud. The indictment also charges Marquez Gonzalez with three substantive counts of bank fraud and Antigua Martinez with eight substantive counts of bank fraud. If convicted, each faces a maximum penalty of 30 years in federal prison on each count.
According to the indictment, beginning in July 2017, and continuing through at least January 2018, Marquez Gonzalez and Antigua Martinez conspired with each other and other persons to commit bank fraud against federally insured financial institutions. To carry out their scheme, Marquez Gonzalez and Antigua Martinez and their co-conspirators burglarized United States Postal Service mailboxes and stole mail, including personal checks. They then altered the stolen checks to bear their own names and the names of co-conspirators and deposited the altered checks into accounts they controlled.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Postal Inspection Service. It will be prosecuted by Assistant United States Attorney Kara M. Wick.
The xDedic Marketplace, A Website Involved in the Illicit Sale of Compromised Computer Credentials and Personally Identifiable Information, Shut DownRead the Press Release
Tampa, Florida - U.S. Attorney Maria Chapa Lopez, along with Special Agent in Charge Eric Sporre, FBI-Tampa Division, and Special Agent in Charge Mary Hammond, IRS-Criminal Investigation, today announced the seizure of the xDedic Marketplace, a website that operated for years and was used to sell access to compromised computers worldwide and to personally identifiable information of U.S. residents. The xDedic administrators strategically maintained servers all over the world to facilitate the operation of the website.
The international operation to dismantle and seize this infrastructure is the result of close cooperation with law enforcement authorities in Belgium and Ukraine, as well as the European law enforcement agency Europol. On January 24, 2019, seizure orders were executed against the domain names of the xDedic Marketplace, effectively ceasing the website’s operation.
The xDedic Marketplace operated across a widely distributed network and utilized bitcoin in order to hide the locations of its underlying servers and the identities of its administrators, buyers, and sellers. Buyers could search for compromised computer credentials on xDedic by desired criteria, such as price, geographic location, and operating system. Based on evidence obtained during the investigation, authorities believe the website facilitated more than $68 million in fraud. The victims span the globe and all industries, including local, state, and federal government infrastructure, hospitals, 911 and emergency services, call centers, major metropolitan transit authorities, accounting and law firms, pension funds, and universities.
The U.S. investigation was led by the FBI and IRS-CI, with assistance from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and the Criminal Division’s Computer Crime and Intellectual Property Section.
The joint Belgian-Ukrainian investigation was led by the Federal Prosecutor’s Office and the Federal Computer Crime Unit of Belgium, and the National Police and the Prosecutor General’s Office of Ukraine, with significant support by Europol.
Additionally, the German Bundeskriminalamt provided assistance in the operation to seize xDedic’s infrastructure.