Middle District of Florida

Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced Kenneth Christian Javi Garcia (24, Fort Myers) to six years in federal prison for distribution of child pornography. The court also ordered Javi Garcia to forfeit his computer, which was used to commit the offense. 

Javi Garcia pleaded guilty on September 28, 2018.

According to court documents, between August 30, 2017, and September 20, 2017, the FBI was able to directly connect to Javi Garcia’s computer and download approximately 200 files containing depictions of child pornography. On November 14, 2017, a search warrant was executed at Javi Garcia’s residence, where his computer was located and seized. A subsequent forensic analysis of the computer revealed approximately 450 videos of child pornography, with created file dates ranging from February 2016 through October 2017.  

This case was investigated by the Federal Bureau of Investigation’s Innocent Images Task Force, which includes law enforcement from the Charlotte County Sheriff’s Office, the Lee County Sheriff’s Office, the Sarasota Police Department, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.

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.projectsafechildhood.gov.

Tampa, FL – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Diego Fernando Cardona Lozano (43, Cali, Colombia), a/k/a “El Doctor” and “Pomada,” with conspiracy to commit international money laundering and conspiracy to import at least five kilograms of cocaine into the United States. If convicted on all counts, Cardona Lozano faces a maximum penalty of life in federal prison. The United States has also notified Cardona Lozano that it seeks the forfeiture of proceeds traceable to the charged offenses, approximately $1.4 million.

According to the superseding indictment, Cardona Lozano conspired to import at least five kilograms of cocaine, knowing that the drugs would be imported into the United States. Cardona Lozano is further charged with conspiring to launder the proceeds of the drug trafficking by using the Black Market Peso Exchange, a financial structure used by drug cartels in Colombia to exchange currencies.

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 Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the 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 Office of International Affairs and the U.S. Marshals Service provided assistance with the extradition process. The case will be prosecuted by Assistant United States Attorney Dan Baeza.

Ocala, Florida – Willie Lee Lewis (47, Ocala) today pleaded guilty to possessing a firearm as a convicted felon. He faces a minimum mandatory sentence of 15 years, and up to life, in federal prison. Lewis was indicted on February 13, 2019. 

According to the plea agreement, on November 28, 2018, a City of Ocala police officer attempted to stop Lewis for a tag violation. Rather than pulling over, Lewis led the officer on a low-speed chase during which Lewis discarded a loaded pistol, cocaine, and marijuana from the window of his van. Police recovered these items and arrested Lewis, who subsequently placed a recorded telephone call from the county jail in which he described the firearm and drugs that he had tossed from the van’s window.

Lewis has 20 prior felony convictions that include multiple drug sales and illegal firearm offenses, thus qualifying him for enhanced sentencing as an Armed Career Criminal. 

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ocala Police Department jointly investigated this case. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

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.

 

Tampa, FL – U.S. District Judge Virginia Hernandez Covington has sentenced Mark Boring (47, St. Petersburg) to seven years in federal prison for his role in a telemarketing scheme. As part of Boring’s sentence, the court also entered a money judgment of $75,000, the proceeds of the wire fraud conspiracy. In addition, Boring was directed to pay a total of $895,011.03 to victims of the scheme.

According to court records, from 2016 through at least 2018, Boring conspired with others to take money from victims throughout the United States who wanted to sell their timeshare properties or other parcels of land. Boring and others placed telephone calls to these victims impersonating real estate professionals. They misled the timeshare owners to believe the conspirators had identified buyers for the victims’ timeshares and other property. The conspirators further advised the victims that the timeshare and property sales could be completed if the victims made one or more advanced payments to the conspirators for various fees purportedly associated with the sales, such as closing costs, courier services, title searches, transfer fees, and legal fees. Once the victims agreed to pay the bogus fees, the conspirators directed the victims to send funds via wire transfers to one of the conspirators. That conspirator then withdrew the fraud proceeds and shared them with the others, based on each conspirator’s role in the fraudulent transaction. The conspirators often repeatedly re-contacted their victims and fraudulently advised them that additional fees were needed in order to complete the sales, and they continued to dupe the victims into sending bogus advanced fees until the victims either ran out of money or became aware of the scam.     

Gary Kinard previously pleaded guilty and was sentenced to 7 years and 11 months in federal prison for his role in the scheme. Martin Steele, Troy Cater, and David Bell have also pleaded guilty to participating in the scheme and are pending sentencing.

This case was investigated by the Federal Bureau of Investigation, the St. Petersburg Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.

Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Pryce Elijah Demars (25, Jacksonville) to 20 years in federal prison for distributing child pornography over the internet. Demars had pleaded guilty on May 25, 2018. As part of his sentence, Demars must also serve a lifetime term of supervised release and register as a sex offender.

Demars was arrested on November 15, 2017, and has been in custody since that day. 

According to court documents, as well as evidence and testimony introduced during Demars’s sentencing hearing, FBI agents and other officers executed a federal search warrant at Demars’s residence in Jacksonville on November 15, 2017, in connection with an online child exploitation investigation. From August 3, 2016, through April 12, 2017, Demars had distributed videos depicting young children being sexually abused over the internet. He admitted, among other things, that he had searched for child pornography on the internet, downloaded it, and distributed it to another individual in exchange for $800-$1,000 and several video games.

FBI agents were also able to identify a minor child whom Demars had sexually molested on several occasions. Demars also had offered to take explicit photos of the child and had introduced the child to another individual, over the internet, to further victimize the child through online sexual exploitation.   

“Investigating child abuse and exploitation is among the most important work in the FBI,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “This case represents both our relentless pursuit of predators who seek to harm innocent children, and steadfast determination to ensure they are sentenced to the maximum punishment possible under law.” 

This case was investigated by the Federal Bureau of Investigation in Jacksonville, Plano (Texas), and Springfield (Illinois), and the Jacksonville Sheriff’s Office. It was 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.

Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Roselle Fitzgerald to 21 months in federal prison for theft of government funds and counterfeit or forged securities. As part of her sentence, the court entered a money judgment of $185,731.71, the proceeds of the theft of criminal conduct, and ordered Fitzgerald to pay restitution.

Fitzgerald had pleaded guilty on December 11, 2018.

According to court documents, Fitzgerald worked as a title-closer at various law firms, while simultaneously receiving Social Security Disability Insurance Benefits to which she was not entitled. Fitzgerald also made material false statements to employees of the Social Security Administration regarding her work activity. In addition, she possessed counterfeit or forged checks from the law firms where she was employed and used the means of identification of others in connection with the counterfeit or forged checks. In total, Fitzgerald received approximately $184,400 in Disability Insurance Benefits to which she was not entitled, as well as $9,910.50 in Medicare benefits to which she was not entitled. The total loss to the law firms as a result of Fitzgerald’s counterfeit or forged checks was $7,685.

This case was investigated by the Social Security Administration Office of the Inspector General, the Department of Health and Human Services Office of Inspector General, and the Sarasota Police Department. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Joamary Rosario (28, Tampa) with conspiring to distribute a substance that contained a mixture of heroin, fentanyl, and acetyl fentanyl and distributing a substance that contained a mixture of heroin, fentanyl, and acetyl fentanyl, causing the death of an individual. If convicted, Rosario faces a minimum mandatory penalty of 20 years, and up to life, in federal prison. 

According to the

indictment and information presented in court, beginning on an unknown date but no later than November 6, 2018, and continuing through November 7, 2018, Rosario conspired with other individuals to possess and distribute heroin, fentanyl, and acetyl fentanyl.

On November 6, 2018, Rosario sold 10 plastic bags—each of which contained a substance composed of a mixture of heroin, fentanyl, and acetyl fentanyl—to an individual. The individual injected himself with the substance from one of the bags and died. A medical autopsy revealed that the cause of death was an accidental overdose caused by a mixture of heroin and fentanyl.

On November 7, 2018, an undercover law enforcement officer contacted Rosario, posing as the deceased individual, and asked her to bring him more of what she had delivered the previous night. Rosario agreed. When she arrived at the meeting place, she was arrested and found to be in possession of three more bags of the same substance.

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 is part of the Middle District of Florida’s anti-opioid strategy to combat opioid trafficking and abuse. This case was investigated by the Hillsborough County Sheriff’s Office Heroin Working Group, with assistance from the Hillsborough County Medical Examiner’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Michael M. Gordon.

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Colum Patrick Moran, Jr. (40, Jacksonville) has been arrested and charged by federal criminal complaint with soliciting child pornography using the internet. If convicted, Moran faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison. Moran was arrested on March 6, 2019, and is currently detained. 

According to the

complaint , from on or about December 28, 2016, through October 31, 2018, Moran, using the name “Emily lover” and the email address [email protected], made numerous postings to several internet blog websites hosted by mothers. These blog sites were designed and intended to share and exchange information about motherhood, raising children, and other related topics.  Moran repeatedly posted sexually explicit comments about young children on these motherhood blogs and also solicited others to produce and post sexually explicit photos and videos of children on the blog sites.

On March 6, 2019, FBI agents and other officers executed a search warrant at Moran’s apartment where Moran lived alone. The agents found a plastic storage bin containing at least 50 pairs of female child-sized underwear, a smart phone containing over 300 images depicting child pornography, a number of credit cards and Florida driver licenses that did not belong to Moran, and several firearms and a bulletproof vest. Moran was placed under arrest.   

This case was investigated by the Federal Bureau of Investigation in Jacksonville and Los Angeles, and the Jacksonville Sheriff’s Office, with assistance from the National Center for Missing and Exploited Children (NCMEC). It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

A criminal complaint is merely an allegation 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 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.

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Todd Levant Asbey, Sr. (48, Jacksonville) has pleaded guilty to possessing a firearm as a convicted felon. Asbey, who qualifies as an Armed Career Criminal, faces a minimum mandatory sentence of 15 years, and up to life, in federal prison.  A sentencing date has not yet been set.                

According to the

plea agreement , on March 11, 2018, Asbey entered a Waffle House in Jacksonville carrying a 9 mm pistol, in search of an individual whom he believed had stolen his cellphone. After accosting a customer and striking him in the head, Asbey went out into the restaurant parking lot and discharged the pistol toward the customer and another individual, missing both. Patrol officers from the Jacksonville Sheriff’s Office responded pursuant to 911 calls and arrested Asbey as he was leaving the scene in a vehicle driven by a friend. In the vehicle, officers found the pistol Asbey had fired and two other firearms. The officers also located a cartridge case in the Waffle House parking lot that matched the pistol fired by Asbey. As a previously convicted felon, Asbey is prohibited under federal law from possessing a firearm.

This case was investigated by the Jacksonville Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys David B. Mesrobian and Frank Talbot.

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.

Tampa, FL – Attorney General William P. Barr and U.S. Attorney Maria Chapa Lopez today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly. Twenty individuals have been charged in the Middle District of Florida (see below for case summaries).

“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”

“Elder fraud and exploitation can have an especially severe effect on victims,” stated U.S. Attorney Maria Chapa Lopez. “The U.S. Attorney’s Office will continue to work together with our law enforcement partners to pursue financial fraudsters who exploit our seniors for personal and financial gain and, we’ll continue our outreach efforts to educate our seniors on ways to avoid and report fraud scams.”

The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.

The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The cases in the Middle District of Florida are being handled by Assistant United States Attorneys Rachel Jones, Jennifer Peresie, Nathan Hill, and Karen Gable.

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. 

Middle District of Florida Case Summaries

Tampa

Brenda Dozier has pleaded guilty to a one-count information charging her with money laundering conspiracy relating to her participation in an IRS impersonation scam. From July 2015 through at least November 2015, Dozier laundered money that had been extorted from U.S. residents by conspirators residing in the United States and overseas. India-based conspirators impersonated IRS officers and misled multiple victims to believe that they owed money to the IRS and would be arrested and fined if they did not immediately pay their alleged back taxes. Dozier received the fraud proceeds, typically via interstate wire transfers, and, once she received the funds, she provided them, less a fee, to other conspirators based in the United States. Dozier’s sentencing hearing is scheduled for April 10, 2019. She faces a maximum penalty of 20 years' imprisonment.

 

As alleged in the eleven-count indictment, from at least 2016 through January 2019, Glenn Francis conspired with India-based call centers to extract money from U.S. residents through a variety of confidence scams, including 1) impersonating IRS officers and misleading U.S. residents to believe that they owed money to the IRS and would be arrested and fined if they did not pay their alleged back taxes immediately; 2) impersonating loan officers and misleading U.S. residents to believe they would receive loan proceeds upon paying an advance fee to the defendant or others he hired; or 3) impersonating computer technicians and misleading U.S. residents to believe that their computers had been hacked, their identities had been stolen, and/or their computers were infected with viruses and in need of repair, and that the callers would resolve the purported computer problems if paid to do so. Francis collected the Fraud proceeds in the United States and transferred them back to his India-based conspirators. Francis is set for trial in September 2019. He faces a maximum penalty of 20 years in federal prison on each count of wire and mail fraud conspiracy, wire fraud, and mail fraud. He faces up to 10 years in federal prison for each of the three money laundering charges.

 

Anthony Trujillo has pleaded guilty to a one-count information charging him with receipt of stolen property relating to his participation in an IRS impersonation scam. In February 2016, Trujillo received approximately $8,200 in his bank account that had been defrauded from two California residents as a result of a confidence scam. Trujillo knew the money had been stolen but instead of reporting it, Trujillo withdrew the fraud proceeds and spent them of over the course of a month. Trujillo’s sentencing hearing is set for March 22, 2019. He faces a maximum penalty of 10 years' imprisonment.

 

Alejandro Juarez has pleaded guilty to a one-count information charging him with money laundering conspiracy for his participation in an IRS impersonation scam. From July 2015 through at least September 2015, Juarez laundered money that had been extorted from U.S. residents by conspirators residing in the United States and overseas. India-based conspirators impersonated IRS officers and misled multiple victims to believe that they owed money to the IRS and would be arrested and fined if they did not immediately pay their alleged back taxes. Juarez received the fraud proceeds, typically via interstate wire transfers, and, once he received the funds, he provided them, less a fee, to other conspirators based in the United States. Juarez is scheduled to be sentenced on March 15, 2019. He faces a maximum penalty of 20 years' imprisonment.

 

Nishitkumar Patel, Hemalkumar Shah, and Sharvil Patel have each pleaded guilty to conspiracy to commit wire fraud relating to their participation in an IRS impersonation fraud scam. N. Patel and Shah have each also pleaded guilty to one count of aggravated identity theft. From 2014 through at least 2016, the defendants conspired with India-based call centers to extort money from U.S. residents by impersonating IRS officers and misleading U.S. residents to believe that they owed money to the IRS and would be arrested and fined if they did not pay their alleged back taxes immediately. They collected the fraud proceeds by (1) withdrawing cash from prepaid cards purchased and funded by victims; (2) hiring other conspirators (runners) to retrieve money wired by the victims to those runners; and/or (3) hiring runners to open bank accounts into which victims deposited fraud proceeds. On October 23, 2018, law enforcement officers executed a search warrant at the home of Nishitkumar Patel and Hemalkumar Patel. Among other items, they seized approximately $50,000 in cash, hundreds of bank and wire receipts, and 20 electronic devices. Nishitkumar Patel is scheduled to be sentenced on March 28, 2019, the sentencing hearing for Hemalkumar Shah is set for April 18, 2019, and Sharvil Patel’s sentencing hearing is set for May 9, 2019. The defendants each face a maximum penalty of 20 years' imprisonment for the wire fraud conspiracy. N. Patel and Shah also face a minimum mandatory penalty of two years' imprisonment for aggravated identity theft to run consecutive to the term imposed for the fraud count.

 

Gary Kinard, Martin Steele, Mark Boring, Troy Cater and David Bell have each pleaded guilty for their roles in a timeshare fraud scam. The defendants conspired to take money from victims throughout the United States who wanted to sell their timeshare properties. They placed telephone calls to these victims, impersonated real estate professionals and attorneys, and misled the timeshare owners to believe the conspirators had identified buyers for the victims’ timeshares. They told the victims that the sales could be consummated if the victims made one or more advanced payments to the conspirators for various fees purportedly associated with the sales, such as closing costs, courier services, title searches, transfer fees, and legal fees. The conspirators often repeatedly re-contacted the victims and fraudulently advised them that additional fees were needed in order to complete the sales, and they continued to dupe the victims into sending bogus advance fees until the victims either ran out of money or became aware of the scam.  

After the victims had depleted their assets or recognized that they had been defrauded, the conspirators evolved the scheme by re-contacting their victims via email or phone and, now posing as helpful attorneys, told the victims that they had been defrauded in a timeshare scam. They then offered to “represent” the victims against the “first attorneys,” and to obtain settlements on their behalves. Once they had regained the trust of the timeshare victims, they directed the victims to forward additional bogus fees purportedly associated with the cost of litigation, settlement expenses, and other related expenses. Some victims paid the conspirators hundreds of thousands of dollars for the purported “litigation.” Over the course of the conspiracy, many victims lost their retirement savings and their homes.

Gary Kinard, Martin Steele, and Mark Boring have each pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft relating to their participation in a timeshare fraud scam. On February 27, 2019, Kinard was sentenced to 7 years and 11 months in federal prison. Steele and Boring have not yet been sentenced. Each faces a maximum penalty of 20 years in federal prison for the wire fraud conspiracy and a minimum mandatory consecutive term of 2 years’ imprisonment for the aggravated identity theft count. Troy Cater and David Bell each pleaded guilty to one count of money laundering conspiracy. They each face a maximum penalty of 20 years in federal prison. A sentencing date has not yet been scheduled.

 

Orlando

Between February 2012 and October 2014, six individuals defrauded mostly elderly victims out of more than $3.6 million based on false promises that they had won a multi-million dollar sweepstakes prize. These individuals then used stolen identity information to transfer the fraud proceeds to prepaid debit cards and ultimately transmitted the proceeds to their co-conspirators in Jamaica. In November 2018, a federal jury convicted two of the defendants, Nadine Alexander and Shameer Hassan, of conspiracy to commit wire fraud, conspiracy to commit money laundering, and three counts of aggravated identity theft. The jury also found Hassan guilty of eight counts of money laundering. Alexander and Hassan each face a maximum penalty of 20 years in prison on each of the conspiracy charges, and a mandatory minimum of two years’ imprisonment for the aggravated identity theft charges. Hassan also faces up to 20 years’ imprisonment on each of the money laundering charges. Their sentencing hearings are scheduled for March 25, 2019.

Four of the defendants pleaded guilty and have been sentenced. Robert Madurie was sentenced to eight years’ imprisonment, Danny Lopez was sentenced to seven years and eight months in federal prison, Treysier Mikael LaPalme was sentenced to 7 years and 3 months' imprisonment, and Oral Stewart was sentenced to prison term of five years. In a related case, Charlton Morris, a money launderer for the Jamaican lottery scheme, pleaded guilty to conspiracy to commit money laundering. He was sentenced to 10 years and 1 month of imprisonment.

 

Rohan Brown has pleaded guilty to one count wire fraud, one count mail fraud, and one count of aggravated identity theft for his participation in two conspiracies targeting elderly victims. In one conspiracy, victims in the United States received a phone call from a conspirator in Jamaica who told them they had won a sweepstakes. The victims were told that before they could receive their winnings, they had to send money for “taxes” to Brown in Orlando. The second scheme involved using the stolen personal identification information of Social Security beneficiaries to redirect Social Security benefits into a bank account controlled by Brown. Between both schemes, Brown and his conspirators stole more than $170,000 from more than two dozen elderly victims across the United States.  Brown faces a maximum penalty of 20 years in federal prison for each fraud count and a mandatory consecutive of penalty 2 years’ imprisonment for the aggravated identity theft count.

Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Yanier Manso-Caballero (30, Miami) to four years and six months in federal prison for access device fraud and aggravated identity theft. As part of his sentence, the court also entered a money judgment of $53,567.78, the proceeds of the criminal conduct.

Manso pleaded guilty on December 5, 2018.

According to court documents, on at least 11 different occasions between January and March 30, 2018, Manso placed skimming devices on Chase Bank ATMs in the Tampa Bay area including, ATMs in Tampa, Valrico, and Largo.  Chase Bank provided law enforcement with ATM surveillance video of Manso attaching the skimmers. In some of the videos, Manso disguised himself with hats, wigs, and/or a beard. Manso typically applied a skimmer to the drive-through ATMs from his vehicle. He left the skimmer in place for approximately one to two hours and then returned to the ATMs and removed the skimmer, again from his vehicle.  Manso also used a mirror camera, which he placed on the ATMs, in order to capture customers’ PIN information. According to Chase Bank, hundreds of customers who used the ATMs that Manso had tampered with had their bank account information intercepted, compromised, and used to make purchases without their knowledge and consent.

Investigators determined that at least 167 accounts had been compromised during the periods when Manso had placed the skimmers. In addition, approximately 92 counterfeit and unauthorized access devices were located on Manso’s iPhone and in his vehicle. At the time of these offenses, Manso was on federal supervised release stemming from a 2010 credit card fraud and identity theft conviction in the Southern District of Florida.

This case was investigated by the Tampa Police Department and the United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Orlando, FL – U.S. District Judge Roy B. Dalton has sentenced Geo Geovanni (50, Moultrie, GA) to 37 months in federal prison for conspiracy to commit bank fraud and bank fraud. As part of his sentence, the court also entered a money judgment of $56,984.34, the proceeds of the fraud scheme. A federal jury found Geovanni guilty on November 29, 2018.

According to testimony and evidence presented at trial, Geovanni worked as a real estate broker who owned his own brokerage firm based in Orlando. Between May and August 2008, Geovanni sold condominium units at The Landing, located in Altamonte Springs, Florida. Geovanni engaged in a conspiracy to conceal from mortgage lenders sales incentives that he provided to the buyers. These undisclosed incentives included making the buyers’ down payments and paying kickbacks after closing. As a result of his actions, Geovanni helped cause the loss of approximately $736,000 to the Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac), and JP Morgan Chase Bank when the mortgages involved in the fraudulent transactions went into foreclosure.

This case was investigated by the Federal Housing Finance Agency Office of Inspector General and the Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorneys Chris Poor and Joseph Capone.

Ocala, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found Jovan Demetrius Fredericks (39, Ocala) guilty of possessing a firearm as a convicted felon, possessing with the intent to distribute controlled substances, and carrying a firearm in relation to a drug trafficking crime. Fredericks faces a minimum mandatory sentence of 20 years, and up to life, in federal prison. His sentencing hearing has not yet been set. Fredericks was indicted on January 9, 2019.

According to testimony and evidence presented at trial, on the morning of September 29, 2018, officers from the Ocala Police Department encountered Fredericks at the Parkside Gardens public housing complex. Fredericks, a multi-convicted felon, immediately tried to conceal a hand-rolled cigarette containing illegal narcotics from the officers. When the officers stopped to investigate, they saw a loaded, full-size handgun with an extended ammunition magazine tucked into the waistband of Fredericks’s pants. After arresting Fredericks for the firearm, a search of his person revealed multiple packages of illegal drugs ready for sale, including MDMA (“ecstasy”), N-Ethylpentylone (“bath salts”), and cocaine. Fredericks’s extensive criminal record—which includes prior convictions for robbery, possession of a firearm by a felon, and repeated sales of illegal drugs—will qualify him as an Armed Career Criminal for federal sentencing purposes.

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.

This case was investigated by the City of Ocala Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Douglas V. Oakes (60, Bella Collina) with one count of tax evasion and six counts of making false and fraudulent statements on tax returns. If convicted, he faces up to five years in federal prison on the tax evasion count and up to three years’ imprisonment on each of the false statement counts.

According to the

indictment , in 2015, in order to evade the payment of his income taxes for 2002 to 2005, Oakes falsely represented to the IRS that he was not employed or self-employed, earned no income, and that he did not have a financial interest in any business entities. In fact, Oakes was the CEO of Dealerindustry.com, LLC (“DI”) d/b/a Automotive Capital Corporation, a company in which he had a substantial financial interest. To conceal from the IRS his financial interest in DI, Oakes registered his daughters and others as DI’s managing members with the Florida Department of State, removed his name and title from DI’s website and from the website LinkedIn, and caused false DI ownership documents to be created, signed, and backdated. Between 2015 and 2018, Oakes further attempted to conceal his assets from the IRS by purchasing a beachfront home in Merritt Island in the name of a nominee, causing false DI ownership documents to be created, signed, and backdated, and having tax returns prepared for his deceased daughter in which DI’s income was falsely claimed to be his daughter’s income.

The indictment further charges that in September 2015, Oakes submitted fraudulent tax returns to the IRS for the 2009 to 2014 tax years, each of which falsely claimed that he had no tax due and owing. The Internal Revenue Service – Criminal Investigation estimates that Oakes’s actions resulted in approximately $1.1 million of tax losses.

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 Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Chauncey A. Bratt.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found Corey Damond Smith, Jr. (23, Tampa) guilty of distributing fentanyl resulting in death. Smith faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for June 6, 2019.

According to testimony and evidence presented at trial, on November 13, 2017, Smith sold what he said was “heroin” to T.M. who took the drugs to her boyfriend and, at his request, helped him to use them. Smith had actually sold T.M. fentanyl. The boyfriend died from the drugs.

This case was investigated by Hillsborough County Sheriff’s Office with assistance by the Hillsborough County Medical Examiner’s Office. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.

Orlando, Florida – U.S. District Judge Gregory A. Presnell today sentenced Sandreania Davis (46, Orlando) to one year and three months in federal prison for filing a materially false statement in an application to the Federal Emergency Management Agency (FEMA) for disaster relief benefits. 

A federal jury convicted Davis on December 18, 2018.

According to the evidence presented at trial, in September 2017, Davis attempted to obtain FEMA benefits following Hurricane Irma. She did so by falsely claiming that she resided in a particular apartment in Orlando. In addition, Davis broke into the apartment to make it appear that she lived there for purposes of a FEMA inspection. 

This case was investigated by the U.S. Department of Homeland Security – Office of the Inspector General. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.

Jacksonville, Florida – A federal jury has found Jamaal Abu Talib Hameen (58, Jacksonvile) guilty of being a felon in possession of a firearm. Hameen, who qualifies as an Armed Career Criminal, faces a mandatory minimum sentence of 15 years, and up to life, in federal prison. His sentencing hearing is scheduled for June 3, 2019.

Hameen was indicted on July 18, 2018.

According to testimony presented at trial, on February 7, 2018, Hameen was found to be in possession of a loaded .380 caliber pistol when Jacksonville Sheriff’s Officers arrested him for trespassing at a local motel. As a previously convicted felon, Hameen is prohibited from possessing a firearm or ammunition under federal law.

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 Attorneys David B. Mesrobian and Frank Talbot.

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.

Tampa, FL –U.S. District Judge Elizabeth A. Kovachevich today sentenced Jennifer Samuels (47, Seffner) to 33 months in federal prison for conspiracy to commit mail fraud in connection with Samuels’s role as a middleman, or money mule, in a Jamaican lottery fraud scheme. As part of her sentence, the court also entered a money judgment of $209,800.13, the proceeds of the fraud.

Samuels had pleaded guilty on October 17, 2018.

According to court documents, Samuels and co-conspirators identified potential victims and contacted them by telephone, falsely claiming the individuals had won the lottery in Jamaica, but needed to pay money for taxes in order to receive the funds. If a potential victim agreed, Samuels’s co-conspirators directed the victim to send these fees to a middleman, who received the funds and distributed them to the conspirators. Samuels agreed to be one of these middlemen.

In May 2016, Samuels’s co-conspirators contacted an elderly victim residing in the Middle District of Florida and falsely told the victim that he had won $1.4 million and a Mercedes-Benz vehicle as part of a Jamaican lottery sweepstakes. A conspirator told the victim that in order to receive his lottery winnings, the victim would need to pay the taxes on the winnings upfront. Between May 2016 and May 2018, the victim sent 52 checks totaling $209,800.13 to Samuels, which the victim believed were to pay for the taxes associated with his lottery winnings. 

Samuels deposited the victim’s checks into her bank accounts or cashed them. She then transferred the majority of the funds to her conspirators in Jamaica and Florida by cash delivery or wire transfer. Samuels also kept a portion of the funds for herself.

“Criminals who target older citizens in these schemes are heartless in their relentless pursuit of profit, at great cost to the elderly victims,” said HSI Tampa Special Agent in Charge James C. Spero. “While today’s sentencing highlights HSI’s role in stopping this crime, I strongly encourage anyone with elderly loved ones to familiarize themselves with these schemes and take steps to protect them from exploitation.”

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.

Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Gabino Peralta-Saucedo (43, Bradenton) to 24 years and 4 months in federal prison for conspiracy to distribute five kilograms or more of cocaine and a quantity of heroin. Peralta-Saucedo had pleaded guilty on December 14, 2018.

According to court documents, for over a decade, Peralta-Saucedo coordinated the smuggling of thousands of kilograms of cocaine into the United States from Mexico. More than 12,000 kilograms of cocaine were ultimately sold in and around Manatee County on behalf of various Mexican drug cartels, including La Familia Michoacána and Los Caballeros Templarios. Peralta-Saucedo also cooperated with other Mexican drug cartels including, the Gulf Cartel and Los Zetas, in order to get drugs across the border into the United States. In addition, coconspirators possessed and distributed heroin in the Tampa Bay area.

This case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. 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.

This case was investigated by the Federal Bureau of Investigation and the Manatee County Sheriff’s Office. The Department of Justice’s Office of International Affairs and Attaché’s Office in Mexico City assisted with the extradition process. It was prosecuted by Assistant United States Attorney Christopher F. Murray.

Tampa, FL – Luckner Stimphil (55, Brandon) has pleaded guilty to conspiracy to defraud the United States. His daughter, Elwolfine Dufort (31, Riverview), pleaded guilty on February 21, 2019, for her role in the conspiracy. Stimphil and Dufort each face a maximum penalty of five years in federal prison. A sentencing date has not yet been set.

Pursuant to their plea agreements, Stimphil and Dufort have agreed to pay more than $11 million in restitution to the U.S. Department of the Treasury relating to the conspiracy. Stimphil also consented to pay all taxes, interest, and penalties found to be owed and due to the IRS relating to his personal tax returns for years 2012 and 2013. Stimphil and Dufort have also agreed to be permanently enjoined from preparing or assisting in the preparation or filing of federal tax returns for any other person or entity; from maintaining any association with a tax return preparation business; and from instructing, teaching, or otherwise training any person in the preparation of federal tax returns.        

According to court documents, Stimphil, the then-pastor at First Calvary Family Life Ministry located on Martin Luther King Jr. Blvd., in Tampa, created and operated Top Popular Tax, a tax return preparation business with offices in Tampa, Winter Haven, and elsewhere. The business operated from 2011 through at least mid-2015. There, Stimphil, his daughter (Dufort), and others working under Stimphil’s supervision, routinely assisted in and advised clients in the preparation and presentation of tax forms to the IRS, which included materially false and fraudulent information on client-taxpayers’ Schedule C Forms (business income or loss) and Forms 8863 (associated with a claim for the American opportunity credit). Some of the information submitted on Forms 1040 also included a false and fraudulent claim for a credit for federal tax on fuels on Form 4136. 

This case was investigated by IRS - Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Jay G. Trezevant and Craig Gestring.

 

Tampa, FL – Troy Cater (30) and David Bell (55), both of St. Petersburg, have pleaded guilty to a money laundering conspiracy. Each faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been scheduled.

Pursuant to their plea agreements, Cater has agreed to pay $145,961.35 and Bell has agreed to pay $268,356, in restitution to the scheme’s numerous victims. In addition, Cater and Bell have consented to forfeiture money judgments in the amounts of $15,000 and $26,000, respectively, which represent the proceeds of the fraud.

According to the plea agreements, from 2015 through 2018, Cater and Bell conspired with others to take money from victims throughout the United States who wanted to sell their timeshare properties or other parcels of land. Other conspirators placed telephone calls to these victims impersonating real estate professionals and misleading the timeshare owners to believe that the conspirators had identified buyers for the victims’ timeshares and other properties. The conspirators further advised the victims that the sales could be consummated if the victims made one or more advanced payments to the conspirators for various fees purportedly associated with the sales, such as closing costs, courier services, title searches, transfer fees, and legal fees. Once the victims agreed to pay the bogus advance fees, the conspirators directed the victims to send funds via wire transfers to Cater and Bell, who then withdrew the fraud proceeds or hired others to retrieve the proceeds and shared them among the conspirators based on each conspirator’s role in the fraudulent transaction. The conspirators also continued to contact their victims, fraudulently advising them that additional funds were needed in order to complete the sales, and they continued to dupe the victims into sending bogus advance fees until the victims ran out of money or became aware of the scam.

The scam then evolved into a second stage where the conspirators re-contacted the victims via email and, now posing as helpful attorneys, told the victims that they had been defrauded in a timeshare scam. They offered to “represent” the victims against the “first attorneys,” and to obtain settlements on their behalves. Once the conspirators had gained the trust of the timeshare victims in their new roles, they directed the victims to forward additional bogus fees to Cater, Bell, and others. Some victims paid the conspirators several hundreds of thousands of dollars for the purported “litigation,” which Cater and Bell retrieved or had others retrieve at their direction.

Cater and Bell were initially recruited into the scheme by others, including several defendants who have pleaded guilty to related charges. Mark Boring previously pleaded guilty to wire fraud conspiracy and aggravated identity theft. His sentencing hearing is set for March 7, 2019. Martin Steele has pleaded guilty to wire fraud conspiracy and aggravated identity theft. His sentencing hearing has not yet been set. Gary Kinard has been sentenced to seven years and eleven months in federal prison for wire fraud conspiracy and aggravated identity theft for his role in the scheme.

This case was investigated by the FBI, the St. Petersburg Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.

Tampa, FL – U.S. District Judge Susan Bucklew has sentenced Gary Kinard (40, St. Petersburg) to 7 years and 11 months in federal prison for his role in a telemarketing scheme. As part of his sentence, the court also entered a money judgment of $75,000, the proceeds of the wire fraud conspiracy. In addition, Kinard was directed to pay a total of $2,244,735.66 to 43 identified victims of the scheme.

According to court records, from 2016 through at least 2018, Kinard conspired with others to take money from victims throughout the United States who wanted to sell their timeshare properties or other parcels of land. Kinard and others placed telephone calls to these victims impersonating real estate professionals. They misled the timeshare owners to believe the conspirators had identified buyers for the victims’ timeshares and other properties. The conspirators further advised the victims that the timeshare and property sales could be consummated if the victims made one or more advanced payments to the conspirators for various fees purportedly associated with the sales, such as closing costs, courier services, title searches, transfer fees, and legal fees. Once the victims agreed to pay the bogus advance fees, the conspirators directed the victims to send funds via wire transfers to one of the conspirators. That coconspirator then withdrew the fraud proceeds and shared them with the others, based on each conspirator’s role in the fraudulent transaction. The conspirators often repeatedly re-contacted their victims and fraudulently advised them that additional fees were needed in order to complete the sales, and they continued to dupe the victims into sending bogus advance fees until the victims either ran out of money or became aware of the scam.  

After the victims depleted their assets or recognized that they had been defrauded, Kinard and other conspirators evolved the scheme. In this second stage,  Kinard and/or other conspirators re-contacted their victims via email and, now posing as helpful attorneys, told the victims that they had been defrauded in a timeshare scam. They then offered to “represent” the victims against the “first attorneys,” and to obtain settlements on their behalves. Once Kinard had regained the trust of the timeshare victims, he directed the victims to forward additional bogus fees purportedly associated with the cost of litigation, settlement expenses, and other related expenses. Some victims paid the conspirators hundreds of thousands of dollars for the purported “litigation.” Over the course of the conspiracy, many victims lost their retirement savings and their homes.

Mark Boring, Martin Steele, David Bell, and Troy Cater previously pleaded guilty for their roles in this scheme. Their sentencing hearings are pending.

This case was investigated by the Federal Bureau of Investigation, the St. Petersburg Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.

Jacksonville, Florida– U.S. District Judge Brian J. Davis has sentenced James Lester Calloway, Jr. (49, Jacksonville) to 24 years in federal prison for conspiracy to distribute 50 grams or more of methamphetamine. Calloway had pleaded guilty on September 12, 2018, his third federal felony conviction. Calloway was previously convicted in August 2010, in the Middle District of Florida, for conspiracy to manufacture 50 grams or more of methamphetamine.

According to court documents, during the execution of a search warrant at Calloway’s home, DEA agents seized approximately 112 grams of crystal methamphetamine, a firearm, and $70,960 in cash. The total amount of pure/actual methamphetamine attributed to Calloway in the conspiracy was at least 4.5 kilograms.      

Jason Jed Morris (51, Palatka), another member of the drug trafficking organization, previously pleaded guilty to possessing with the intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. Morris was sentenced to 3 years in federal prison. According to the plea agreement, Morris traveled to Jacksonville to meet with Calloway, his source of supply, and purchased 28.25 grams of methamphetamine (99% purity) in order to distribute it to his customers in the Palatka area.

Two other members of the drug trafficking organization have also been charged for their roles in this case. On January 9, 2019, Samuel Trevor Martin (36, Jacksonville) pleaded guilty to possessing with the intent to distribute 50 grams or more of methamphetamine. He faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. His sentencing hearing is scheduled for April 15, 2019. Anthony Donta Jones (39, Atlanta, GA) has been charged with possessing with the intent to distribute 500 grams or more of methamphetamine. He faces a minimum mandatory sentence of 10 years, and up to life, in federal prison. His case is scheduled for trial in April 2019.

This case was investigated by the Drug Enforcement Administration, along with the Putnam County Sheriff’s Office, the Nassau County Sheriff’s Office, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Beatriz Gonzalez.

Tampa, Florida – Senior U.S. District Judge James Moody, Jr. today sentenced Cedrick Lee Taylor (32, Sarasota) to 15 years in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Taylor to forfeit the firearm and ammunition he used during the offense. Taylor had pleaded guilty on March 14, 2018.

According to court documents, at approximately 1:00 a.m. on July 15, 2017, a deputy from the Sarasota Police Department initiated a traffic stop of a vehicle after smelling the odor of marijuana emanating from it. Taylor was a passenger in that car.

After ordering the occupants out of the car for a vehicle search, the officer observed a red bag on the floor near where Taylor had been sitting. The officer also noticed small baggies that contained a white powdery substance near the red bag. The officer searched the red bag and discovered a loaded firearm and loose ammunition. Taylor later admitted to possessing the firearm. At the time, Taylor had several prior felony convictions and, therefore, was prohibited from possessing firearms or ammunition.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.

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.

Orlando, FL – U.S. District Judge Gregory A. Presnell has sentenced Devin Lashawn Jefferson, II (22, Apopka) to 15 years and 8 months in federal prison for attempting to possess with the intent to distribute furanyl fentanyl. A federal jury found Jefferson guilty of the offense on September 12, 2018.

According to testimony and evidence presented in court, between February and December 2017, Jefferson sent tens of thousands of dollars to recipients in China. In April 2017, U.S. Customs and Border Protection agents intercepted a package from China that was addressed to an Apopka residence that had been associated with Jefferson. The package contained approximately 1 kilogram of furanyl fentanyl, a leading cause of overdose deaths in the Orlando area. 

On February 27, 2018, agents conducted a controlled delivery of the package, removing the using furanyl fentanyl and substituting sham substance, and Jefferson retrieved it from the residence. When agents attempted to stop Jefferson, he fled in his car at a high rate of speed thru a school zone and escaped. He was apprehended approximately two weeks later by the U.S. Marshals Service. 

Subsequently, U.S. Customs and Border Protection intercepted a second package from China addressed to Jefferson that contained approximately one-quarter of a kilogram of methoxyacetyl fentanyl, another powerful fentanyl analogue.

“Fentanyl is a deadly narcotic wreaking havoc in our communities,” said HSI Tampa Special Agent in Charge James C. Spero. “HSI and our law enforcement partners are committed to dismantling opioid smuggling and today’s sentencing is just one example of how HSI utilizes our broad authorities to combat this epidemic.”

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, the U.S. Postal Service, the Drug Enforcement Administration, the U.S. Marshals Service, and the Orlando Police Department.  It was prosecuted by Assistant United States Attorneys Embry J. Kidd and Dana E. Hill.

Fort Myers, FL – A federal jury has found Kay F. Gow (68, Naples), Robert T. Gow (77, Naples), and John G. Williams, Jr. (67, Virginia Beach, VA) guilty of conspiracy to commit wire fraud and wire fraud. The Gows were also found guilty of conspiracy to commit money laundering and illegal monetary transactions. Each defendant faces a maximum penalty of 5 years in federal prison for the conspiracy to commit wire fraud count and up to 20 years’ imprisonment for each wire fraud count (Gows: 4 counts each, Williams: 2 counts). The Gows each also face up to 10 years in federal prison for conspiracy to commit money laundering and for each count (4) of illegal monetary transactions. And the defendants face the forfeiture of more than $5.1 million in proceeds traceable to the offenses. All three are scheduled to be sentenced on May 20, 2019.

According to the evidence presented at trial, the Gows owned and controlled multiple entities, including HerbalScience Group, LLC, and HerbalScience Singapore Pte, Ltd. In 2010, the Gows formed VR Laboratories, LLC, in order to apply for a $5 million grant from Lee County through the Financial Incentives for Recruiting Strategic Targets (“FIRST”) program. The FIRST program consisted of taxpayer funds set aside by the county to bring economic development projects to the Ft. Myers area. In seeking the FIRST grant, the Gows made numerous false and fraudulent representations to various individuals and government entities about their financial success and that of HerbalScience and VR Labs, including that VR Labs was poised to become a leading global formulator and manufacturer of botanical pharmaceuticals. Ultimately, Lee County awarded VR Labs $5 million in FIRST grant funds to build a manufacturing facility that the Gows had claimed would bring hundreds of high-paying jobs and economic growth to Lee County.  

Once VR Labs executed an agreement with Lee County, Williams, a long-time friend of the Gows, registered a fictitious name, “Williams Specialty Bottling Equipment,” with the Florida Secretary of State. The Gows then represented that Williams would provide the bottling line for the manufacturing facility, when he had no such experience or expertise. Williams used false and fraudulent invoices for work and services allegedly performed on the bottling line to make demands for payment and, once paid, kicked back a substantial portion of the funds to VR Labs and the Gows. The Gows then used Williams’s false and fraudulent invoices to justify requests to Lee County for the payment of the grant money. Once VR Labs received the grant funds, the Gows fraudulently transferred those funds to entities they owned and controlled, and ultimately to themselves, by disguising the transfers as licensing fees, salaries, expenses, and other items. They also tried to conceal the source of the kickbacks through the creation of fictitious entities and documents.         

Ultimately, Lee County disbursed approximately $4.7 million in FIRST grant funds to VR Labs, but the manufacturing facility was never completed or operational.

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Michael Leeman.

Orlando, Florida – A federal jury yesterday found Keith Kirchoff (41, Key West) guilty of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Kirchoff faces a maximum penalty of life in federal prison. A sentencing date has not yet been set. Kirchoff is the nineteenth person to be found guilty as a result of a joint FBI and DEA investigation into drug-trafficking organizations that supplied outlaw motorcycle clubs with distribution amounts of methamphetamine in the Middle District of Florida.

Kirchoff was indicted on August 9, 2018.

According to testimony presented at trial, in March 2018, Kirchoff conspired with members of the Pagans motorcycle club to deliver ounce quantities of methamphetamine to Pagans members located in Daytona Beach and Key West, Florida. On March 21, 2018, members of the Florida Highway Patrol pulled over a vehicle being driven by Kirchoff and found nearly ten ounces of methamphetamine and a loaded firearm.

This case was investigated by the FBI, the DEA, the Florida Highway Patrol, 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, Florida – U.S. District Judge Harvey Lee Adams today sentenced Sean Justin Owens (35, Jacksonville) to 15 years in federal prison for possessing a firearm as a convicted felon. A federal jury found Owens guilty on November 15, 2018. Due to his prior multiple felony convictions, he qualified for an increased penalty under the Armed Career Criminal Act. 

According to testimony presented at trial, Owens was found in possession of a firearm after officers from the Jacksonville Sheriff’s Office (JSO) investigated his illegally parked vehicle. As the officers approached the vehicle, Owens quickly left the car and headed toward a nearby residence. When the officers checked the vehicle’s tag, it was not associated with any vehicle. As one of the officers tried to obtain the Vehicle Identification Number (VIN), he saw a firearm on the front console. Owens’s driver license was inside his vehicle, confirming his identity. In addition, an occupant of the home Owens had entered after leaving the vehicle confirmed that the vehicle belonged to Owens. 

At the time of this incident, Owens had multiple prior felony convictions, including three convictions for sale or delivery of cocaine, and therefore, was prohibited from possessing firearms under federal law.

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 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.

Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces that Gregory Apicella (53, Fort Myers) today pleaded guilty to distributing fentanyl and to causing the overdose death of “J.Y.,” a 21-year old man living in Fort Myers. Apicella faces a minimum mandatory penalty of 20 years, and up to life, in federal prison.

According to the

plea agreement , on January 18, 2018, Apicella sold fentanyl from his home on South Entrada Drive in Fort Myers. J.Y. used the fentanyl that Apicella had sold and died of an overdose. The next day, the Lee County Sheriff’s Office (“LCSO”) conducted a controlled purchase of methamphetamine and fentanyl from Apicella. LCSO then executed a search warrant at Apicella’s residence and recovered approximately nine grams of fentanyl from a safe in the bedroom.     

This case was investigated by the Drug Enforcement Administration and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Kyle Cohen and Charles Schmitz.

Orlando, Florida – United States Attorney Maria Chapa Lopez announces that Anthony Joseph Culotta (59, Merritt Island) has pleaded guilty to receiving child pornography. Culotta faces a minimum mandatory penalty of 5 years, and up to 20 years, in federal prison.

According to the plea agreement, Culotta had been a NASA contractor since at least 2004. An investigation led by the NASA Office of Inspector General (OIG) Office of Investigations (OI) revealed that, since at least May 2017 Culotta had been using NASA’s network to obtain child pornography via the internet. 

On June 15, 2018, a federal search warrant was executed on Culotta’s work area at the Kennedy Space Center (KSC) to search for evidence of child pornography violations. During the search, agents located Culotta’s NASA-issued laptop computer. A forensic examination of the laptop revealed more than 700 images containing child pornography, including images of known child victims identified by the National Center for Missing and Exploited Children.

On August 7, 2018, NASA OIG special agents interviewed Culotta at the Cape Canaveral Air Force Station in Brevard County. During the interview, Culotta admitted that he had used his NASA-issued laptop to search for and view images that piqued his curiosity. He identified some of the images for the interviewing agents. Culotta also said he used his personal computer at his home to search the internet for these images.

Culotta also disclosed that he had saved some of the images he viewed to his thumb drive. Culotta had the thumb drive with him and consented to a search of the device. He told the agents that he hid the images in directories that he had created on the thumb drive. Culotta also admitted that he had been viewing these types of images for as long as he had his personal laptop. During a preview of Culotta’s thumb drive, the forensic examiner located images of child pornography, including young children. Culotta also stated that he had connected the thumb drive to his NASA-issued laptop and viewed the images while at work.

Culotta consented to a search of his personal computer media, where the agents found numerous images depicting child pornography involving young children, including toddlers. 

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 NASA OIG OI. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.

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.

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, 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, 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.

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.

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.

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.

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, 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.

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   

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, 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, 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. 

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.

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.

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.

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.

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.

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. 

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.