Middle District of Florida

Fort Myers, FL – U.S. District Court Judge John E. Steele has sentenced Ryan Williamson (50, Fort Myers) and William Pierce (50, Virginia) to one year in prison, and nine months’ imprisonment, respectively, for conspiring to pay unlawful kickbacks to a local doctor for referring patients to A&G Spinal Solutions, LLC (“A&G Spinal”) – the defendants’ durable medical equipment company. As part of their sentences, the Court also entered money judgments against Williamson in the amount of $1,593,564.54, and against Pierce in the amount of $803,007.25, the proceeds of the conspiracy. Both men had previously pleaded guilty.

According to the plea agreements, beginning in 2010, Williamson and Pierce conspired with Dr. Michael Frey, an interventional pain management doctor operating in Fort Myers, to pay compensation to Frey in exchange for referrals to their company (A&G Spinal). A&G Spinal then paid a percentage of the resulting profits via checks (made payable to Frey’s wife), who was unaware of the scheme and was not associated with A&G Spinal. In addition, from 2013 to 2015, Williamson also paid kickbacks to Frey in exchange for patient referrals for compound pharmaceutical pain cream prescriptions.

Frey has pleaded guilty for his role in both schemes and is currently awaiting sentencing.

This case is being prosecuted by Assistant United States Attorneys Rachel Jones and Simon Eth, with the assistance from the Defense Criminal Investigative Service, the Department of Health and Human Services – Office of Inspector General and the U.S. Postal Service – Office of Inspector General.

Today’s resolution illustrates the government’s commitment to combating improper practices that implicate the nation’s federally subsidized health care programs, using all statutory and common law remedies available to address such schemes. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477). The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Tampa, FL – One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and, partners with locally based prevention and reentry programs for lasting reductions in crime. Throughout the past year, the Middle District of Florida (MDFL) has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.

In support of the Department’s PSN programs throughout the country, the Attorney General today also announced awards of almost $28 million in grant funding to combat violent crime through PSN and another $3 million for training and technical assistance to develop and implement violent crime reduction strategies and enhance services and resources for victims of violent crime. As part of those awards, the MDFL will receive $1,129,811 to continue implementing PSN strategies within its district.

“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”  

“Public safety is everybody’s business,” said U.S. Attorney Maria Chapa Lopez. “The U.S. Attorney’s Office is committed to working with our law enforcement partners at every level and with our citizens to rid our streets of violent crime. We will not rest until our communities are safer places to live, work, and play.”

Since 2001, the MDFL has been a leader in implementing the PSN program. As we celebrate the one-year anniversary of the revitalized program, here are some of the highlights of our PSN actions over the past year:

Enforcement Actions

The mission of the MDFL’s PSN program is to prosecute dangerous offenders, dismantle drug trafficking organizations, build proactive conspiracy cases against violent gang members, and support the U.S. Attorney’s crime prevention strategy. U.S. Attorney Maria Chapa Lopez coordinates the district’s PSN efforts with various federal, state, and local law enforcement officials to ensure that resources are strategically directed against violent offenders. MDFL PSN efforts are districtwide, with a special focus placed in Tampa through the Tampa Bay PSN Task Force; in Jacksonville, through the Jacksonville Sheriff’s Office Gun Unit; and in Fort Myers, through the Violent Crime Working Group. Interagency coordination, cooperation, and training has resulted in significant outcomes. A few highlights include:

• United States v. Isaac Thomas (Tampa Bay) – defendant was a previously convicted felon who got into a fight at a high school basketball game and was removed; he then fired a gun at law enforcement. Thomas was sentenced to 15 years in federal prison for possessing a firearm as a felon and in a school zone. (Link to press release)

• United States v. Alejo Guerrero (Fort Myers) – defendant was prosecuted for multiple drug and gun offenses and was sentenced to 12 years in federal prison. (Link to press release)

• United States v. Christopher Bentley (Jacksonville) – defendant was a pimp, convicted felon, and drug dealer. He was sentenced to 10 years in federal prison. (Link to press release)

• United States v. Roderick Lester (Jacksonville) – defendant was a convicted felon sentenced to over 8 years in federal prison for armed robbery of a local tire store. (Link to press release)

Community Partnerships

The MDFL employs a three-pronged approach as part of its violent crime reduction strategy. In addition to enforcement and prosecution, key partnerships with schools, faith institutions, and other community organizations are continuous to support local prevention, intervention, and reentry programs. Through various yearlong community events, thousands of citizens have been engaged to create safer communities. Some key events and partnerships include:

• National Night Out
• Guns, Gangs and Goals
• Courageous Conversations: Gun Violence
• National Gun Pledge
• Great American Teach-In
• Guys with Ties
• Royalty (Girls) Program
• Federal Intensive Reentry Courts (Tampa, Orlando, Jacksonville)
• Federal Correctional Complex (Coleman, FL) Community Relations Board
• Pinellas Ex-Offender Reentry Coalition
• Hillsborough Ex-Offender Network
• Abe Brown Ministries/Ready4Work
• Jacksonville Reentry Center
• Operation New Hope/Ready4Work

Improvements to Community Safety

• The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration, the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly 1½ percent.

• The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.

MDFL Highlights

• In FY2018, the Tampa Bay PSN Task Force indicted 168 federal cases. 

• In partnership with federal, state, and local agencies, violent crime in the City of Tampa was reduced by 27% (2015 benchmark data).

• In 2017, 11 members of the violent “Manche Boys Mafia” gang were indicted on white-collar offenses (including conspiracy, credit card fraud, aggravated identify theft, and tax crimes). Their sentences ranged between 4 and 8 ½ years’ imprisonment.

Jacksonville, Florida – Min Lin (35) and He Ying Qiu (46), both of Jacksonville, have pleaded guilty to harboring illegal aliens for the purpose of commercial advantage and private financial gain. Each faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.

According to their plea agreements, Lin and Qiu are married and own and operate the Sushi House restaurant located at the Town Center shopping complex in Jacksonville. After receiving a tip from a concerned citizen, federal agents conducted an investigation and discovered that employees were being transported in a van, driven by Qiu, between the Sushi House and two residences owned by Lin. On January 29, 2018, officers from the Jacksonville Sheriff’s Office (JSO) stopped the van as it was coming from Sushi House, after it had closed for business that day. Qiu was driving the van and Lin was in the front seat passenger. Four passengers in the van appeared to be aliens who were illegally present in the United States.

On June 5, 2018, law enforcement agents executed search warrants at the Sushi House and the two residences owned by Lin. Before the warrants were executed, a JSO officer stopped the van Qiu was driving near the Sushi House. Two of the passengers, who were also in the van when it was stopped on January 29, 2018, were found to be illegally present in the United States. During the execution of the warrant at one of the residences, agents encountered two more aliens who were also found to be illegally present in the United States. They had also been passengers in the van during the previous strop.

Upon questioning, each of the four aliens admitted to being illegally present in the United States. They stated that they worked at the Sushi House and were paid in cash with no taxes withheld from their pay. They also stated that they lived at the residence rent-free, that Qiu took them to and from work, and that neither Lin nor Qiu had asked them to provide documents to establish that they were legally authorized to work in the United States. Employers are required by law to obtain such documents before hiring any employee. During the search of the residence, agents found identification, mail, photographs, and other documents belonging to the aliens and others.

As part of their plea agreements, Lin and Qiu agreed to forfeit the residence and the van they had used to transport the aliens.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announced that James Thomas Butler II (38, Jacksonville) has been arrested and charged by a federal criminal complaint with production and attempted production of child pornography. In 2001, Butler was convicted of attempted sexual battery and lascivious molestation of a minor in Jacksonville and was required to register as a sexual predator. Because of his prior sex offense conviction, Butler faces an enhanced mandatory minimum penalty of 25 years, and up to 50 years, in federal prison, and a potential lifetime of supervision. He has been in custody since his arrest on October 2, 2018. A detention hearing is scheduled for October 9, 2018. 

According to the

complaint , on May 2, 2018, FBI agents and other law enforcement officers executed a search warrant at a home in north Jacksonville, where several offenders and sexual predators resided. While interviewing the residents, the agents consensually obtained two smartphones from Butler, who was residing at the location. During a forensic review of one of the devices, agents discovered pornographic videos of a minor child that appeared to have been surreptitiously filmed using a hidden camera. Further investigation revealed the identity of the child and the Jacksonville residence where the production had occurred.

This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sheriff’s Office, and the Duval County School Police Department. 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.

Tampa, Florida – U.S. Attorney Maria Chapa Lopez joined the Department of Justice today in announcing more than $70 million in grant funding to bolster school security, educate and train students and faculty, and support law enforcement officers and first responders who arrive on the scene of a school violence incident. In the Middle District of Florida, the following recipients were awarded funds – the Collier County Sheriff’s Office ($250,000); the Pasco County District School Board ($199,998); and the Citrus County Sheriff’s Office ($127,250).

These grants are in addition to the funding to the National Association of School Resource Officers (NASRO), announced by Attorney General Sessions last week, to expand and update their curriculum to better support training programs. These grants combined will better protect students, teachers, faculty, and first responders across the United States. Additionally, the Department is awarding more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems, which will help law enforcement and increase the effectiveness of background checks.

“President Trump and his administration will ensure the safety of every American school,” Attorney General Jeff Sessions said. “Earlier this year he signed into law the STOP School Violence Act, which provides grant funding to develop anonymous school threat reporting systems, to implement school building security measures, and to train students, school personnel, and law enforcement on how to prevent school violence. Today I am announcing $70 million in these grants to hundreds of cities and states across America. These grants will go a long way toward giving young people and their families both safety and peace of mind.”

“We should take every step possible to guarantee our students a safe and secure place to learn – free from violence,” said U.S. Attorney Chapa Lopez. “These funds will assist our partners in creating and enhancing critical systems and procedures to reduce threats and violence in our schools.”

The Office of Justice Program’s (OJP) Bureau of Justice Assistance (BJA) and the Office of Community Oriented Policing Services (COPS Office) together are making more than 220 awards to jurisdictions across the country to help make schools more secure. The awards, granted through three funding streams, will provide new technology for reporting systems and other threat deterrent measures and create school safety training and education programs for school administrators, staff, students, and first responders. This includes the support for existing crisis intervention teams and the creation of new ones.

• BJA’s STOP School Violence Threat Assessment and Technology Reporting Program will provide 68 awards valued at more than $19 million. This funding supports training to create and operate threat assessment and crisis intervention teams and to develop technology for local or regional anonymous reporting systems. This technology may be in the form of a mobile phone application, hotline, or website.
• The STOP School Violence Prevention and Mental Health Training Program, also managed by BJA, will provide training and education on preventing violence and effectively responding to related mental health crises. This program will fund 85 awards at nearly $28 million.
• The COPS Office School Violence Prevention Program (SVPP) will provide nearly $25 million to 91 jurisdictions for school safety measures including coordination with law enforcement, training for law enforcement to prevent student violence against others and self, target hardening measures, and technology for expedited notification of law enforcement during an emergency.

The grants are authorized by the STOP School Violence Act, which are intended to improve school security by helping students and teachers reduce exposure to risks, prevent acts of violence, and quickly recognize and respond to violent attacks.

The Department also announced that it has awarded more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems. These grants are administered by the Bureau of Justice Statistics, part of OJP. Approximately $43 million in funding will be administered through the National Criminal History Improvement Program (NCHIP), and nearly $21 million will be awarded under the National Instant Criminal Background Check System (NICS) Act Record Improvement Program.  These grant programs help states automate and upgrade records accessed by the firearms background check system.  This year, at the direction of the Attorney General, the Department prioritized funding for projects that improve accessibility of criminal history records, domestic violence convictions, and information on persons who are prohibited from possessing firearms for mental-health related reasons.

The Department is also investing over $1 million in research to better understand the factors behind mass shooting incidents. The grant awards, made by the Department’s National Institute of Justice (NIJ), part of OJP, support scientific investigations that will examine factors that contribute to mass violence, identify any patterns in mass shootings, analyze psychological and social life histories of mass shooters and community-level predictors of mass violence, and will examine firearm purchasing patterns of known mass shooters in order to create a risk prediction tool.  

For addition information on today’s grant announcements, visit www.bja.gov or www.cops.usdoj.gov. 

NOTE: The breakdown of the STOP School Violence Grants can be found here: STOP School Violence Threat Assessment and Technology Reporting Program, STOP School Violence Prevention and Mental Health Training Program, and COPS Office School Violence Prevention Program

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Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Jose Ramon Rivera (23, Orlando) to 10 years and 11 months in federal prison for distributing heroin and methamphetamine, possessing firearms as a convicted felon, and carrying a firearm during a drug-trafficking crime. Rivera pleaded guilty on July 12, 2018.

According to court documents and testimony at sentencing, Rivera is a member of the Rolling 30s Crips gang, which has been linked to several homicides in the Orlando area. Within weeks of his release from state prison, Rivera sold heroin, methamphetamine, and a firearm to a confidential informant who was acting at the direction of law enforcement. A few days later, Rivera sold the informant an assault-style rifle and additional heroin and methamphetamine.

This case was investigated by the U.S. Drug Enforcement Administration, the Orange County Sheriff’s Office, the U.S. Marshals Service, the Clermont Police Department, the Longwood Police Department, the Winter Garden Police Department, and the Winter Park Police Department. It was prosecuted by Assistant United States Attorney Embry J. Kidd.

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 October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001.  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.

WASHINGTON – On the first day of National Substance Abuse Prevention Month, the Department of Justice announced it is awarding almost $320 million to combat the opioid crisis in America. The unprecedented funding will directly help those most impacted by the deadliest drug crisis in American history, including crime victims, children, families, and first responders.

"President Trump has made ending the opioid crisis a priority for this administration, and under his leadership, the Department of Justice has taken historic action," said Attorney General Jeff Sessions. "Today we are announcing our next steps: investing $320 million into all three parts of the President’s comprehensive plan to end the epidemic: prevention, treatment, and enforcement. We are attacking this crisis from every angle—and we will not let up until we bring it to an end."

In 2017, more than 72,000 Americans lost their lives to drug overdoses, an increase from the 64,000 overdose deaths in 2016, according to the Centers for Disease Control and Prevention. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues. October marks two important anti-drug events: Red Ribbon Week and National Prescription Drug Takeback Day. Red Ribbon Week takes place every year between October 23-31 and encourages students, parents, schools, and communities to promote drug-free lifestyles. The Drug Enforcement Administration’s (DEA) National Prescription Drug Take Back Day on October 27 aims to provide an opportunity for Americans to prevent overdose deaths and drug addictions before they start. DOJ expanded on DEA's Drug Takeback Days and collected more than 2.7 million pounds of expired or unused prescription drugs since April 2017. 

The Attorney General has been resolute in the fight against the drug crisis in America. The Department assigned more than 300 federal prosecutors to U.S. Attorneys’ offices and hired more than 400 DEA task force officers, announced the formation of Operation Synthetic Opioid Surge, a new program to reduce the supply of deadly synthetic opioids in high impact areas, and created a new data analytics program called the Opioid Fraud and Abuse Detection Unit to assist 12 prosecutors sent to drug “hot spot districts.” In addition, the Department charged more than 3,000 defendants with trafficking in heroin, fentanyl, or prescription drugs in FY 2017, announced the first-ever indictments of Chinese nationals for fentanyl trafficking, and scheduled variants of fentanyl to prevent illicit drug labs from circumventing the law. In addition, DOJ executed the largest ever health care fraud enforcement action charging more than 600 defendants and proposed rules consistent with President Trump's "Safe Prescribing Plan," requiring a reduction of ten percent in 2019 in manufacturing quotas. The Department dismantled AlphaBay, the largest criminal marketplace on the Internet and has already generated prosecutions in the fight against online drug trafficking through the Joint Criminal Opioid Darknet Enforcement Team (J-CODE). 

The approximately $320 million awarded by the Department’s Office of Justice Programs (OJP) will be distributed in order to maximize effectiveness over the country. A breakdown of the grant funding can be found here.

• Innovative Prosecution Solutions for Combating Violent Crime and Opioid Abuse ($2.8 Million). Help prosecutors develop strategies to address violent crime caused by illegal opioid distribution and abuse.
• Comprehensive Opioid Abuse Site-based Program ($162 Million). Help jurisdictions plan and implement programs aimed at reducing opioid abuse and mitigating its impact on crime victims, including training and technical assistance.
• Justice and Mental Health Collaboration Program ($5.9 Million). Address the treatment needs of people using opioids under the Justice and Mental Health Collaboration Program.
• Helping Children and Youth Impacted by Opioids ($46.6 Million). Help children and youth impacted by the opioid crisis, including training and technical assistance.
• Drug Courts ($81.2 Million). Assist adult, juvenile, and family drug courts and veterans treatment courts, including training and technical assistance
• Paul Coverdell Forensic Science Improvement Grant Program ($17 Million). Address the dramatic increase in deaths and the backlogs of seized drugs as a result of the opioid crisis.
• Opioid-Related Research for Criminal Justice Purposes ($4.1 Million). Development of new tools to enforce the law, ensure public safety, prevent and control crime, and ensure fair and impartial administration of justice.

OJP provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.

NOTE: The breakdown of grant funding can be found here.

Jacksonville, Florida– U.S. District Judge Marcia Morales Howard today sentenced Carl L. Lawson (46, Jacksonville) to 16 years in federal prison for possessing a firearm as a convicted felon and for violating the conditions of supervised release that Lawson was serving in connection with a prior federal drug conviction. Due to his prior multiple felony convictions, he qualified for an increased penalty under the Armed Career Criminal Act. Lawson pleaded guilty on July 5, 2018.

According to court documents, in early 2018, Lawson sold cocaine to a confidential informant on three occasions, and in one instance, offered to sell a firearm. On February 22, 2018, federal agents executed search warrants at the two locations in Jacksonville where Lawson had sold the cocaine. At the first location, agents found a loaded pistol and ammunition. At the second location, agents found Lawson (alone), another loaded pistol, a loaded assault-style rifle, and 60 baggies of cocaine. At the time, Lawson had previous felony convictions for sale of cocaine, armed robbery, and distribution of crack cocaine and is therefore prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael J. Coolican.

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 October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. 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 announces that the United States has settled allegations that a Tampa-based compounding pharmacy, now-defunct RS Compounding, LLC, and its owner, Renier Gobea, knowingly billed TRICARE excessive prices for compounded prescriptions. In reaching this settlement, the parties resolved allegations that, between January 1, 2012, and January 31, 2014, Gobea and RS Compounding charged TRICARE at least 2,000 percent more for drugs than they charged cash-paying customers, in violation of the False Claims Act.

TRICARE, the health care program for uniformed service members and their families, prohibits pharmacies from charging TRICARE more than the general public. Gobea and RS Compounding charged TRICARE vastly more than they charged the public, in some cases over 10,000 percent more. When Gobea and RS Compounding determined that this practice violated TRICARE policy in January 2014, they made mere prospective changes and did not return the profits secured by the overcharges. In an ability-to-pay settlement, the government agreed to accept $1.2 million to resolve these allegations.

TRICARE’s costs for compounded drugs rose from $5 million in 2004 to $514 million in 2014 and $1.75 billion in fiscal year 2015. To date, the U.S. Attorney’s Office for the Middle District of Florida has pursued numerous actions involving fraud associated with compounding pharmacies, resulting in over $57 million in settlements.

“This case is part of our long-standing efforts to hold compounding pharmacies accountable,” said U.S. Attorney Chapa Lopez. “We will continue to combat unscrupulous practices in all forms, especially those that harm or interfere with the care received by our service members and their families.”

“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and its law enforcement partners to ensure that medical service providers do not unjustly enrich themselves by wasting and diverting precious taxpayer dollars. DCIS protects and preserves the integrity of TRICARE, a vital DoD program serving U.S. service members, retirees, and their families,” said Special Agent in Charge John F. Khin, Southeast Field Office.

This lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they discover evidence that defendants have submitted false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The case is captioned United States ex rel. McKenzie Stepe v. RS Compounding LLC, Renier Gobea, Case No. 8:13-cv-3150-T-33AEP (M.D. Fla.). McKenzie Stepe filed this qui tam case, and, although she passed away during the pendency of the case, her estate will receive $264,000 as part of the settlement.

The government’s complaint in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).

The investigation was conducted by TRICARE, the U.S. Department of Health and Human Services Office of Inspector General, and the U.S. Attorney’s Office for the Middle District of Florida. It was handled by Assistant U.S. Attorneys Shea Gibbons and Sean Keefe.

The claims resolved by this settlement are allegations only, and there has been no determination of liability.

Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Aureliano Cuero-Cuero (38, Mosquera, Nariño, Colombia), a/k/a “Chavo,” to 14 years in federal prison for conspiring to distribute cocaine on board vessels subject to the jurisdiction of the United States. Cuero-Cuero pleaded guilty on May 23, 2018.

According to court records, Cuero-Cuero was an elected city council member in Mosquera, Nariño, Colombia at the time of his indictment in 2016. Between February and July 17, 2015, Cuero-Cuero was involved in the organizing and dispatching of three go-fast vessels that departed Colombia carrying over 1,300 kilograms of cocaine, but were later interdicted in international waters. The crew members aboard these vessels were arrested and prosecuted in the Middle District of Florida. Cuero-Cuero was arrested in May 2017, in Colombia, and extradited to the United States. Two other co-defendants in this case are awaiting sentencing.

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 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 case was prosecuted by Assistant United States Attorney Dan Baeza.

Jacksonville, Florida – Senior United States District Judge Harvey Schlesinger  has sentenced Bobby L. Ratcliffe (60) and Wanda F. Ratcliffe (55), both of Reddick, Florida, to two years in federal prison for conspiracy to structure financial transactions to evade reporting requirements. In addition, a forfeiture order was entered against them in the amount of $4,592,419, which represents the amount of structured cash deposits. Bobby Ratcliffe also was ordered to pay restitution in the amount of $54,908 for the receipt of unauthorized child auxiliary benefits from the Social Security Administration. Both previously pleaded guilty to the offenses.

According to court documents, between August 2014 and July 2015, Bobby and Wanda Ratcliffe structured cash deposits and withdrawals into and out of bank accounts that they controlled. The couple often traveled from their home in the Ocala-area to Jacksonville, Orlando, and Tampa to conduct the transactions. To avoid Currency Transaction Reports, which are required for currency transactions exceeding $10,000 in a single day, they made individual deposits of less than $10,000 at different credit unions, or branches of the same credit union, on the same day or over consecutive days. 

In addition to structuring cash deposits, the Ratcliffes made structured cash withdrawals by writing and cashing numerous personal checks made payable to themselves. Between August 2014 and July 2015, they wrote more than 1,750 checks to themselves for cash.

This case was investigated by the United States Treasury Office of Inspector General; the Internal Revenue Service - Criminal Investigation; the Federal Insurance Deposit Corporation - Office of Inspector General; the Social Security Administration – Office of Inspector General; the U.S. Secret Service; and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Frank Talbot and Bonnie Glober.

 

Fort Myers, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Augustin Dalusma with 12 counts of filing false claims to the Internal Revenue Service (IRS) and 3 counts of making or subscribing to false tax returns. He faces a maximum penalty of 5 years in federal prison on each filing of a false claim count and up to 3 years in federal prison for each count of subscribing to a false tax return. 

According to the

indictment , between 2014 and 2015, Dalusma intentionally made false and fraudulent claims for tax refunds to the IRS in 12 tax returns that he filed on behalf of others. Additionally, between 2013 and 2015, Dalusma also filed three tax returns to the IRS that willfully underreported his own income.    

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 Simon R. Eth.

Jacksonville, Florida – U.S. District Judge Henry L. Adams has sentenced James Ray Crooms (49, St. Augustine) to eight years in federal prison for selling cocaine base, also known as “crack” cocaine. Crooms was also sentenced to two years’ imprisonment, to run concurrent with his eight-year sentence, for violating his federal supervision by selling the crack. He had pleaded guilty on March 22, 2018.

According to court documents, on August 31, 2017, a confidential informant made a controlled purchase of .4 grams of crack cocaine from Crooms in St. Augustine. On November 29, 2017, an undercover detective with the St. Johns County Sheriff’s Office made a second controlled purchase of .5 grams of crack from Crooms. At the time of the sales, Crooms was on federal supervised release for a previous federal conviction for selling crack cocaine.

This case was investigated by the St. Johns County Sheriff’s Office and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.

Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Kenton Buddy Campbell (34, Lakeland) to 5 years and 10 months in federal prison for possessing firearms and ammunition as a convicted felon. The court also ordered Campbell to forfeit two firearms and ammunition. He had pleaded guilty on June 20, 2018.

According to court documents, law enforcement officers identified Campbell’s residence as a location that was being used to facilitate the sale of narcotics. The Lakeland Police Department executed a search warrant at Campbell’s residence and found that he had been sleeping on the living room floor next to two loaded firearms. During the search, officers seized more than 220 grams of marijuana, along with codeine, oxycodone, cocaine, digital scales, and cash bundled in small denominations. Campbell was arrested on state charges and released from state custody pending trial.

Shortly after his release, Campbell returned to his home and continued selling narcotics. The Lakeland Police Department obtained a second search warrant for the residence, seized more narcotics and cash, and arrested Campbell on additional charges.

At the time, Campbell had multiple prior felony drug convictions and therefore was prohibited from possessing firearms or ammunition under federal law.

This case was investigated by the Lakeland Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.

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 October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. 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 – Jason Peter Kendall (36, Seminole) has pleaded guilty to one count each of bank fraud, securities counterfeiting, aggravated identity theft, and attempted bank robbery. Kendall faces a maximum penalty of 30 years in federal prison for the bank fraud, up to 20 years for the attempted bank robbery, up to 10 years for the counterfeiting, and a mandatory consecutive term of two years for the aggravated identity theft. A sentencing date has not yet been set.

According to the

plea agreement , Kendall stole the personal identifying information of various individuals and opened securities-trading accounts in his name and the names of his identity theft victims. He then funded those accounts by stealing account information and impersonating accountholders to gain access to bank accounts held by individuals and businesses in Florida and across the country, directing those banks to wire funds into the trading accounts that he controlled. Over several months in 2016, Kendall transferred more than $3 million of victims’ money into accounts that he controlled before his frauds were discovered.

Then, on September 20, 2017, Kendall entered a BB&T Bank in Seminole and attempted to rob it. After a teller activated a silent alarm to alert other employees to the robbery, Kendall fled without obtaining any money.

This case was investigated by the United States Secret Service, the Federal Bureau of Investigation, and the Pinellas County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.

Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Luis David Toledo (29, Jacksonville) to four years and nine months in federal prison for possessing a stolen firearm, possessing cocaine with the intent to distribute it, and possessing firearms while an unlawful user of a controlled substance. Toledo pleaded guilty on May 9, 2018.

According to court documents, on January 10, 2018, Toledo was driving on Southside Boulevard, in Jacksonville, when a patrol officer with the Jacksonville Sheriff’s Office observed him driving erratically and smelled marijuana coming from the vehicle. The officer pulled up next to Toledo’s vehicle and observed smoke swirling inside of the car. During a traffic stop, Toledo admitted that he had guns, cocaine, and marijuana inside of the vehicle. A search of the vehicle revealed two loaded 9mm pistols, one of which was equipped with an extended magazine, along with cocaine packaged for sale, and marijuana. Toledo told the officer that his guns were stolen, that he had intended to sell the cocaine that was in the vehicle, that he had used cocaine “minutes” before being pulled over, and that he had been smoking marijuana while driving. A records check revealed that one of the guns had been reported stolen.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.

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 October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. 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– U.S. District Judge Harvey E. Schlesinger today sentenced Ronald Andrews (34, Jacksonville) to 14 years in federal prison for possessing with the intent to distribute methamphetamine and for possessing a firearm as a convicted felon. Andrews pleaded guilty on May 10, 2018.

According to court documents and evidence presented in court, on July 28, 2017, the Florida Highway Patrol (FHP) conducted a traffic stop of a rental car that Andrews was driving. Andrews’s four-year-old son was the only passenger in the car.  While gathering Andrews’s license, the troopers smelled marijuana and saw remnants of a joint in the car. When it became clear that troopers intended to detain Andrews for further investigation, Andrews held his son in his arms and used him as a shield to try and push pass the troopers, eventually throwing the child at them.  The child was not injured, and the troopers were able to detain Andrews before he could escape.

During a search of the car, the troopers located a loaded semi-automatic pistol and more than 200 grams of methamphetamine, as well as marijuana and hydrocodone pills. In addition, Andrews had $2,325 cash in his pocket. At the time, Andrews had previous felony convictions, including for felony battery, and therefore, was prohibited from possessing a firearm under federal law.

This case was investigated by the Florida Highway Patrol, the Jacksonville Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Frank Talbot and Michael J. Coolican.

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 October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001.  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 District Judge Brian J. Davis today sentenced Jeremy Scott Clark (45, Ponte Vedra) to seven years and six months in federal prison for transporting images depicting child sexual abuse over the internet.  Clark was also ordered to serve a 15-year term of supervised release and to register as a sex offender. Clark pleaded guilty in June 2018 and has been held in federal custody since his arrest on March 8, 2018.

According to court documents, on February 22, 2018, Clark, using the screen name “LLCoolJack1973,” responded to a message posted by an undercover FBI agent on an internet bulletin board frequented by individuals with a sexual interest in children. Clark began an online conversation with the undercover agent. After engaging in conversation about sexual activity with children, Clark sent an explicit photo of himself to the agent, along with a link to an online storage account containing images of young children being sexually abused. Further investigation revealed that Clark was a teacher at First Coast High School in Jacksonville. 

On March 8, 2018, law enforcement officers executed a search warrant at Clark’s home. FBI agents were able to confirm that the picture of the naked male sent to the undercover agent was that of Clark on his bed in his home. A forensic examination of Clark’s phone revealed that it contained the link to the online storage account previously sent to the agent, along with links to more than 400 additional images depicting the sexual abuse of children.  

“The FBI will stop at nothing to protect innocent victims, and seek justice for the heinous acts committed against them,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “This case is even more egregious having been committed by someone who was in a position of authority.  Our investigators will continue to work tirelessly in coordination with our law enforcement partners to identify those who abuse their positions and prey on our children.”

This case was investigated by the Federal Bureau of Investigation and the St. Johns County 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 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.

Health Management Associates, LLC (HMA), formerly a U.S. hospital chain headquartered in Naples, Florida, will pay over $260 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States.  The government alleged that HMA knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services, paid remuneration to physicians in return for patient referrals, and submitted inflated claims for emergency department facility fees. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Attorney General Joseph H. Hunt of the Justice Department’s Civil Division, U.S. Attorney Maria Chapa Lopez for the Middle District of Florida, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, U.S. Attorney Charles E. Peeler for the Middle District of Georgia, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania, U.S. Attorney Sherri Lydon for the District of South Carolina, Assistant Director Robert Johnson of FBI’s Criminal Investigative Division, and Acting Assistant Inspector General for Investigations Derrick L. Jackson for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

HMA was acquired by Community Health Systems Inc. (CHS), a major U.S. hospital chain, in January 2014, after the alleged conduct at HMA occurred.  Since July 2014, HMA has been operating under a Corporate Integrity Agreement (CIA) between CHS and the HHS-OIG.

As part of the criminal resolution, HMA entered into a three-year Non-Prosecution Agreement (NPA) with the Criminal Division’s Fraud Section in connection with a corporate-driven scheme to defraud Federal health care programs by unlawfully pressuring and inducing physicians serving HMA hospitals to increase the number of emergency department patient admissions without regard to whether the admissions were medically necessary.  The scheme involved HMA hospitals billing and obtaining reimbursement for higher-paying inpatient hospital care, as opposed to observation or outpatient care, from Federal health care programs, increasing HMA’s revenue.  Under the terms of the NPA, HMA will pay a $35 million monetary penalty.  Under the terms of the NPA, HMA and CHS, the current parent company, agreed to cooperate with the investigation, report allegations or evidence of violations of Federal health care offenses, and ensure that their compliance and ethics program satisfies the requirements of an amended and extended CIA between CHS and HHS-OIG.

In addition, an HMA subsidiary, Carlisle HMA, LLC, formerly doing business as Carlisle Regional Medical Center, has agreed to plead guilty to one count of conspiracy to commit health care fraud.  The plea agreement remains subject to acceptance by the court.  Up until 2017, Carlisle HMA, LLC owned and operated Carlisle Regional Medical Center, an acute care hospital located in Carlisle, Pennsylvania.  Carlisle HMA, LLC was charged in a criminal information filed today in the District of Columbia with conspiracy to commit health care fraud.

According to admissions made in the resolution documents, HMA instituted a formal and aggressive plan to improperly increase overall emergency department inpatient admissions at all HMA hospitals, including at Carlisle Regional Medical Center.  As part of the plan, HMA set mandatory company-wide admission rate benchmarks for patients presenting to HMA hospital emergency departments – a range of 15 to 20 percent for all patients presenting to the emergency department, depending on the HMA hospital, and 50 percent for patients 65 and older (i.e. Medicare beneficiaries) - solely to increase HMA revenue.  HMA executives and HMA hospital administrators executed the scheme by pressuring, coercing and inducing physicians and medical directors to meet the mandatory admission rate benchmarks and admit patients who did not need impatient admission through a variety of means, including by threatening to fire physicians and medical directors if they did not increase the number of patients admitted.

“HMA pressured emergency room physicians, including through threats of termination, to increase the number of inpatient admissions from emergency departments—even when those admissions were medically unnecessary,”  said Assistant Attorney General Benczkowski.  “Hospital operators that improperly influence a physician’s medical decision-making in pursuit of profits do so at their own peril.  Where we find such conduct, the Criminal Division’s Health Care Fraud Unit, together with our Civil Division and law enforcement colleagues, will aggressively prosecute those responsible to the fullest extent of the law.”

HMA also agreed to pay $216 million as part of a related civil settlement. The civil settlement resolves HMA’s liability for submitting false claims between 2008 and 2012 as part of its corporate-wide scheme to increase inpatient admissions of Medicare, Medicaid and the Department of Defense’s (DOD) TRICARE program beneficiaries over the age of 65.  The government alleged that the inpatient admission of these beneficiaries was not medically necessary, and that the care needed by, and provided to, these beneficiaries should have been provided in a less costly outpatient or observation setting.  HMA agreed to pay $62.5 million to resolve these allegations with $61,839,718 being paid to the United States and $706,084 being paid to participating States.

The civil settlement also resolves allegations that during the period from 2003 through 2011, two HMA hospitals in Florida, Charlotte Regional Medical Center and Peace River Medical Center, billed federal health care programs for services referred by physicians to whom HMA provided remuneration in return for patient referrals.  To induce patient referrals, Charlotte Regional provided a local physician group with free office space and staff, as well as direct payments, which purportedly covered overhead and administrative costs incurred by the group for its management of a Charlotte Regional physician.  HMA also provided another local physician with free rent and upgrades to his office space.  HMA agreed to pay $93.5 million to resolve these civil allegations, with the United States receiving $87.96 million, and the State of Florida receiving $5.54 million.

Additional allegations that are resolved by the civil settlement are that between 2009 and 2012, two former HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center in Pennsylvania, billed federal health care programs for services referred by physicians with whom the facilities had improper financial relationships.  These relationships stemmed from HMA’s excessive payments to (1) a large physician group in return for two businesses owned by the group and for services allegedly performed by the group, and (2) a local surgeon that exceeded the value of the services provided.  The government alleged that these arrangements were structured in this manner to disguise payments intended to induce the referral of patients.  HMA agreed to pay $55 million to the United States to resolve these civil allegations.

Finally, the civil settlement will also resolve claims that Crossgates Hospital, an HMA facility in Brandon, Mississippi, leased space to a local physician from Jan. 15, 2005 through Jan. 14, 2007, but required the physician to pay rent for only half of the space he was actually occupying, in return for patient referrals to Crossgates Hospital.  HMA agreed to pay $425,000 to the United States to resolve these civil allegations.

Federal law, including the Anti-Kickback Statute and the Stark Law, prohibits hospitals from providing financial inducements to physicians for referrals.  These provisions are designed to ensure that physician decision-making is not compromised by improper financial incentives.

“Billing for unnecessary hospital stays wastes federal dollars,” said Assistant Attorney General Hunt.  “In addition, offering financial incentives to physicians in return for patient referrals undermines the integrity of our health care system.  Patients deserve the unfettered, independent judgment of their health care professionals.”

“The payment of kickbacks in exchange for medical referrals undermines the integrity of our healthcare system,” said U.S. Attorney Chapa Lopez. “Today’s resolution should remind healthcare providers of their duty to comply with the law, and the heavy price to be paid for corrupt practices committed by their executives. Our Civil Division will continue to invest itself in the pursuit of health care providers who violate the law for personal gain.” 

“Our office will continue to enforce prohibitions on improper financial relationships between health care providers and their referral sources, as these relationships can serve to corrupt physician judgment about a patient’s true health needs,” said U.S. Attorney Fajardo Orshan.  “We will devote all necessary resources to ensure that those rendering medical care do so for the sole benefit of the patient and in compliance with the law.”

“By manipulating patient status, HMA increased Medicare costs and pocketed taxpayer funds to which it was not entitled,” said U.S. Attorney Peeler.  “Our Medicare patients and our taxpayers deserve better, and I am proud that justice has been done. Nonetheless, we will continue to pursue those hospitals in our district that would seek to take advantage of the Medicare Program.”

“Government healthcare programs are vital to the welfare of our communities,” said U.S. Attorney Murray for the Western District of North Carolina, where two HMA hospitals were located.  “We will aggressively pursue providers that fraudulently inflate charges to government programs and divert scarce resources from those in need into their own pockets.”

“Our resolution of this matter and the significant recovery we have obtained show once again that no matter how complex the scheme is, we will find it, stop it, and punish it,” said U.S. Attorney McSwain.  “HMA covered up kickbacks for patient referrals with sham joint venture agreements, lease payments, and management agreements. These sorts of improper physician inducements are a form of ‘pay to play’ business practices that will not be tolerated.  Healthcare institutions cannot pad their bottom line at the expense of the American taxpayers.  And most importantly, this conduct must be rooted out because it gets in the way of providing top-notch patient care to American citizens.”

“It is critically important to all of us that the patients’ interest drive the physicians’ decisions on care,” said U.S. Attorney Lydon.  “Unnecessary hospital admissions not only drive up costs but can cause damage to patients and cannot be tolerated.” 

The government further alleged that from September 2009 through December 2011, certain HMA hospitals submitted claims to Medicare and Medicaid seeking reimbursement for falsely inflated emergency department facility charges.  HMA agreed to pay $12 million to resolve these civil allegations, with $11.028 million being paid to the United States and $972,000 being paid to participating States.

“Compliance with government healthcare rules requires that patients only receive treatment they actually need,” said HHS-OIG Acting Assistant Inspector General for Investigations Jackson.  “Then government programs must be billed just for those services.  No more, no less.  Let there be no doubt, we will continue to protect federal healthcare programs and beneficiaries by holding provider organizations fully accountable.”    

“This settlement is a result of the FBI’s hard work and dedication to hold companies accountable for their role in healthcare fraud and abuse,” said FBI Assistant Director Johnson.  “The FBI will not stand by when there are allegations that a company operates a corporate wide scheme to increase their financial gain at the expense of the U.S. government. We appreciate those who come forward with allegations of criminal misconduct and recognize the importance of the public’s assistance in our work.”

The allegations resolved by the settlement were originally brought in eight lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery.  The eight qui tam cases, which were filed in various districts and transferred to the U.S. District Court for the District of Columbia as part of a multi-district litigation presided over by the Honorable Reggie B. Walton, are captioned: United States ex rel. Brummer v. HMA, Inc., 3-09-cv-135 (CDL) (M.D. Ga.); United States ex rel. Williams v. HMA, Inc., 3:09-cv-130 (M.D. Ga.); United States ex rel. Plantz v. HMA, Inc., 13-CV-1212 (N.D. Ill.); United States ex rel. Miller v. HMA, Inc., 10-3007 (E.D. Pa.); United States ex rel. Mason & Folstad v. HMA, Inc., 3:10-CV-472-GCM (W.D.N.C.); United States ex rel. Nurkin v. HMA, Inc., 2:11-cv-14-FtM-29DNF (M.D. Fla.); United States ex rel. Jacqueline Meyer & Cowling v. HMA, Inc., 0:11-cv-01713-JFA (D.S.C.); and United States ex rel. Paul Meyer v. HMA, Inc., 11-62445 cv-Williams (S.D. Fla.).

The whistleblower in United States ex rel. Nurkin will receive approximately $15 million as a share of the recovery, and the whistleblowers in United States ex rel. Miller will receive approximately $12.4 million as their share of the recovery.  The whistleblower shares to be awarded in the remaining cases have not yet been determined.

These matters were investigated by the Civil Division’s Commercial Litigation Branch; the Health Care Fraud Unit of the Criminal Division’s Fraud Section; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Middle District of Georgia, Northern District of Illinois, Western District of North Carolina, Eastern District of Pennsylvania and the District of South Carolina, the FBI Healthcare Fraud Unit Major Provider Response Team, HHS-OIG and Defense Health Agency Program Integrity.  On behalf of the States, an investigative/settlement team with members from North Carolina, Massachusetts, Virginia, Washington, and Florida assisted with the investigation and resolution of these matters. 

The government’s resolution of this matter illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud and Enforcement Action Team (HEAT) initiative, a partnership between the Department of Justice and the Department of Health and Human Services to focus efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

Except for those facts admitted to in the guilty plea and in the Non-Prosecution Agreement, the claims resolved by the settlement are allegations only, and there has been no determination of liability.

If you believe you are a victim of this offense, please visit this website or call (888) 549-3945.

Fort Myers, FL – Health Management Associates, LLC (HMA), formerly a major U.S. hospital chain headquartered in Naples, Florida, will pay over $260 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States, the Justice Department announced today. The government alleged that HMA knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services; inflated claims for emergency department facility fees; and operated hospitals, including two in Port Charlotte, which paid illegal remuneration to physicians in return for patient referrals. 

Assistant Attorney General Brian A. Benczkowski, head of the Justice Department’s Criminal Division; Assistant Attorney General Joseph H. Hunt, head of the Justice Department’s Civil Division; U.S. Attorney Maria Chapa Lopez of the Middle District of Florida; U.S. Attorney Charles E. Peeler for the Middle District of Georgia; U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois; U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania; U.S. Attorney Sherri Lydon for the District of South Carolina, Assistant Director Robert Johnson of FBI’s Criminal Investigative Division, and Acting Assistant Inspector General for Investigations Derrick L. Jackson for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

Federal laws, including the Anti-Kickback Statute and the Stark Law, prohibit hospitals from providing financial inducements to physicians for referrals. These provisions are designed to ensure that physician decision-making is not compromised by improper financial incentives.

“Billing for unnecessary hospital stays wastes federal dollars,” said AAG Hunt. “In addition, offering financial incentives to physicians in return for patient referrals undermines the integrity of our health care system. Patients deserve the unfettered, independent judgment of their health care professionals.”

The civil settlement resolves, among other allegations, that during the period from 2003 through 2011, two HMA hospitals in Florida, the Charlotte Regional Medical Center and the Peace River Medical Center, billed federal health care programs for services referred by physicians to whom HMA provided remuneration in return for patient referrals. To induce patient referrals, Charlotte Regional provided a local physicians’ group with free office space and staff, as well as direct payments, which purportedly covered overhead and administrative costs incurred by the group for its management of a Charlotte Regional physician. HMA also provided another local physician with free rent and upgrades to his office space.

The civil allegations were initially made as part of a qui tam lawsuit captioned United States ex rel. Nurkin v. HMA, Inc., 2:11-cv-14-FtM-29DNF (M.D. Fla.). In January 2014, after the conduct alleged by the government had occurred, HMA was acquired by another hospital company.  

HMA has agreed to pay $93.5 million to resolve these civil allegations, with the United States receiving $87.96 million, and the State of Florida receiving $5.54 million. The whistleblower in United States ex rel. Nurkin will receive approximately $15 million as his share of the recovery in that case.

“The payment of kickbacks in exchange for medical referrals undermines the integrity of our healthcare system,” said United States Attorney for the Middle District of Florida Maria Chapa Lopez. “Today’s resolution should remind healthcare providers of their duty to comply with the law, and the heavy price to be paid for corrupt practices committed by their executives. Our Civil Division will continue to invest itself in the pursuit of health care providers who violate the law for personal gain.” 

The Nurkin investigation was investigated by the Civil Division’s Commercial Litigation Branch; the Criminal Division’s Fraud Section; the U.S. Department of Health and Human Services Office of Inspector General; the FBI Healthcare Fraud Unit Major Provider Response Team; and by the U.S. Attorneys’ Offices for the Middle District of Florida. Assistant U.S. Attorney Kyle Cohen handled the Nurkin case locally with assistance from Assistant U.S. Attorneys Jay Trezevant and David Lazarus. 

“Compliance with government healthcare rules requires that patients only receive treatment they actually need,” said HHS-OIG Acting Assistant Inspector General for Investigations Jackson. “Then government programs must be billed just for those services. No more, no less. Let there be no doubt, we will continue to protect federal healthcare programs and beneficiaries by holding provider organizations fully accountable.”   

“This settlement is a result of the FBI’s hard work and dedication to hold companies accountable for their role in healthcare fraud and abuse,” said FBI Assistant Director Johnson. “The FBI will not stand by when there are allegations that a company operates a corporate wide scheme to increase their financial gain at the expense of the U.S. government. We appreciate those who come forward with allegations of criminal misconduct and recognize the importance of the public’s assistance in our work.”

HMA was acquired by Community Health Systems Inc. (CHS), a major U.S. hospital chain, in January 2014, after the alleged conduct at HMA occurred.  Since July 2014, HMA has been operating under a Corporate Integrity Agreement (CIA) between CHS and the HHS-OIG.

 The government’s resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The civil claims resolved by the settlement are allegations only, and there has been no determination of liability.

Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Harlem Slaughter Turner, III (41, Tampa) to 15 years and 8 months in federal prison for possessing a firearm as a convicted felon.  Turner pleaded guilty on June 12, 2018.

According to court documents, on May 30, 2017, at approximately 2:50 a.m., officers from the Tampa Police Department were on routine patrol when they observed what appeared to be an altercation among a group of people just north of 7th Avenue on 17th Street in Ybor City. The officers heard someone yell, “he's got a gun,” as Turner quickly got into his car and fled the scene. The officers learned that Turner had threatened the occupants of another vehicle after he had been involved in a traffic incident.

The officers located Turner’s car, conducted a traffic stop, and searched the vehicle. During the search, under the rear seat, the officers found a 9mm handgun that had been reported stolen, along with a magazine containing 10 rounds of ammunition. The officers also recovered a magazine containing 14 rounds of 9mm ammunition located inside a backpack behind the center console. At the time, Turner had numerous prior violent felony convictions and, was therefore prohibited from possessing a firearm by federal law. He also qualified for an increased penalty under the Armed Career Criminal Act.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Michael C. Baggé-Hernández and 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 October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. 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 – U.S. District Judge Richard A. Lazzara has sentenced Stevie Cavazos (24, Hillsborough County) to 10 years in federal prison for possessing a firearm as a convicted felon. The sentence was the highest permissible under the relevant statute. The court also ordered Cavazos to forfeit the firearms and ammunition that he had possessed, which are traceable to proceeds of the offense. Cavazos pleaded guilty on June 8, 2018.

According to court documents and testimony during the sentencing hearing, Cavazos threatened two women with a sawed-off shotgun. While interviewing the victims, law enforcement officers heard shots coming from Cavazos’s home. They located Cavazos at his home along with the sawed-off shotgun and another rifle. At the time, Cavazos had previous convictions for robbery and battery on a law enforcement officer and, was therefore prohibited from possessing a firearm by federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hillsborough County Sherriff’s Office. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.

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 October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. 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 that Jason Anthony Martinez (38, Tampa) has pleaded guilty to making false statements to the U.S. Attorney’s Office’s Financial Litigation Unit. He faces a maximum penalty of five years in federal prison.

According to the plea agreement, Martinez was previously convicted in a mortgage-related fraud case and ordered to pay $3,008,551.01 in restitution. On October 24, 2017, Martinez signed and submitted a Financial Disclosure Form, upon which he falsely claimed a net income that was approximately half his actual net income and failed to disclose a number of credit accounts. This false information materially and adversely affected the resulting restitution-related payment calculations in his prior case.

U.S. Attorney Chapa Lopez stated, “Pursuant to the Crime Victims' Rights Act of 2004, federal crime victims have the right to full and timely restitution. Our Financial Litigation Unit is dedicated to investigating defendants’ ability to meet their restitution obligation and collecting such restitution in compliance with federal law. Criminal defendants must understand that the United States Attorney’s Office actively pursues the collection of restitution.”

The U.S. Attorney’s Office, recognizing the critical importance of recovering restitution for victims, has a Financial Litigation Unit that collects criminal monetary penalties, including restitution, imposed on criminal defendants by the U.S. District Court as part of his or her sentence. One of the tools used by the Unit to collect restitution is the Financial Disclosure Statement, which requires defendants to truthfully disclose, among other things, their income, expenses, assets, and liabilities.

This case was investigated by the U.S. Attorney’s Office’s Economic Crimes Section. It is being prosecuted by Assistant U.S. Attorney Thomas N. Palermo.

Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced David Hardman (55, Melbourne) to 30 years in federal prison for sexually exploiting minors and for forcibly assaulting a federal officer with a deadly weapon. The court also ordered Hardman to forfeit the proceeds obtained from the sale of his residence, which he had used to commit the sexual exploitation offenses, and to forfeit the digital devices he used to commit his offenses. Hardman pleaded guilty on April 26, 2018.

According to court documents, Hardman produced DVD videos of minors engaged in sexually explicit activity and sold the DVDs to buyers throughout the United States. During a period of seven years, Hardman exploited nine identified minors and made $346,664 from the sale of the DVDs. On August 17, 2017, FBI agents and officers from the Melbourne Police Department executed a search warrant at Hardman’s home. Hardman hid in his bathroom with a firearm. When the officers entered the room, Hardman pointed the weapon at the officers as he tried to chamber a round. The officers tackled Hardman and retrieved the firearm. 

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.

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.

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Christopher Shawn Potter (age 49, Jacksonville) has been arrested and charged by criminal complaint with distributing child pornography. Potter faces a minimum mandatory penalty of 5 years, and up to 20 years in federal prison. He had been detained pending a hearing on September 26, 2018.

According to the

complaint , in February 2018, Potter, utilizing the username “Catsfan1987” and the screenname “Mr. Fireball,” responded to a notice posted online by an undercover officer with the Orange Park Police Department who was using the persona of a 14-year-old child. Potter engaged in online conversations with the undercover officer during which Potter requested photos of the “child” and discussed meeting the “child” for sex. Potter sent the undercover officer a video clip depicting a young child being sexually abused and a video of Potter performing a sexual act.

On September 20, 2018, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, along with other law enforcement officers executed a search warrant at Potter’s home and seized several computer devices and smart phones. Potter told the agents that he had worked as a teacher at Clay High School in Green Cove Springs from 2016-2017, and that he was a teacher at Orange Park High School from 1997-2004.   

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Orange Park Police Department, the Putnam County Sheriff’s Office, the Clay County Sheriff’s Office, and the Palatka Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

A criminal complaint 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.

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, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Aeon L. Graham (23, Tampa) to six years and nine months in federal prison for conspiracy to commit credit card fraud and aggravated identity theft.  Graham pleaded guilty on June 12, 2018.

According to court documents and statements made in open court, between at least 2015 and 2017, Graham and others affiliated with “Manche Boy Mafia” or “MBM” organization conspired to commit credit card fraud and identity theft in the Tampa Bay area. To facilitate the scheme, the conspirators purchased stolen credit and debit card account numbers online from various websites, some of which used bitcoin as their currency. They then purchased or stole reloadable gift cards and used machines to emboss the stolen account numbers and their own names on to the front of these altered gift cards, thereby producing counterfeit credit cards. The conspirators then used these counterfeit credit cards at various retailers around the Tampa Bay area to purchase gift cards and electronics, which they either kept or sold for cash. 

Investigators determined that these individuals had engaged in hundreds of successful transactions with counterfeit credit cards, and had possessed and used  thousands of stolen account numbers from individuals across the United States. In total, Graham was held responsible for more than $600,000 in intended or attempted purchases with counterfeit credit cards and stolen account information.

This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Mandy Riedel.

Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Rashica Shaguana Ford (39, Sarasota) to nine years and two months in federal prison for conspiracy to commit arson. A federal jury found Ford guilty on June 8, 2018.

Ford’s co-conspirators, Jodarin Marquis Whitfield and Herbert Adelphus Pinckney, previously pleaded guilty for their roles in this case. Whitfield was sentenced to eight years and three months in federal prison. Pinckney was sentenced to two years and six months in federal prison.

According to testimony presented at trial, in the early morning hours of March 11, 2015, Whitfield and Pinckney set fire to an individual’s home by attempting to throw a Molotov cocktail through the victim’s bedroom window. In addition to the homeowner, one adult and six children were inside the home at the time of the arson. The Molotov cocktail did not break the window and only damaged the exterior of the home. All occupants of the home escaped safely.

The arson was orchestrated by Ford (Whitfield’s girlfriend/Pinckney’s sister) as retaliation stemming from an altercation between Ford and the victim.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Bureau of Fire, Arson and Explosives Investigations; the Bradenton Police Department; the Bradenton Fire Department; the Sarasota County Sheriff’s Office; and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.

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 October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. 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– U.S. District Judge Timothy J. Corrigan has sentenced Daryl D. Shack (28, Jacksonville) to four years and three months in federal prison for possessing a firearm as a convicted felon. Shack pleaded guilty on May 15, 2018. 

According to court documents, on July 17, 2017, officers from the Jacksonville Sheriff’s Office conducted a traffic stop on a car in which Shack was a passenger. The driver’s two-year-old daughter was also in the car. Shack possessed a loaded Beretta pistol, which had previously been reported stolen, between his feet. He also had a baggie of cocaine in his pocket. Officers later recovered a baggie of marijuana, a knife, and an axe from the vehicle. At the time, Shack had a previous conviction for armed robbery, and therefore, was prohibited from possessing a firearm by federal law.

This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Michael J. Coolican.

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 October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. 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 – U.S. District Judge Charlene Edwards Honeywell has sentenced Noel Graveran-Palacios (37, Tampa) to 10 years and 1 month in federal prison for conspiracy, credit card fraud, and identity theft. A federal jury found Noel Graveran-Palacios and his twin brother, Yoel Graveran-Palacios, guilty on April 24, 2018. Yoel Graveran-Palacios was sentenced on September 4, 2018, to 9 years in federal prison.

According to testimony and evidence presented at trial, Noel and Yoel Graveran-Palacios worked together, and with others, to place skimmers on gas pumps in the Tampa Bay area. Using the account numbers stolen from the skimmers, they made counterfeit credit cards and then used them to purchase merchandise including gas, toys, clothes, and gift cards, at area retailers. They then used the gift cards to purchase merchandise at home improvement stores, and later returned the items for cash. Trial evidence included hundreds of recovered stolen account numbers, as well as dozens of store surveillance videos featuring the conspirators using the counterfeit credit cards.

This case was investigated by the United States Secret Service and the Tampa Police Department, with assistance from the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger has sentenced Bernandino G. Bolatete (69, Jacksonville) to five years in federal prison for possession of an unregistered firearms silencer. A federal jury found Bolatete guilty on May 11, 2018. 

According to court documents, Bolatete came to the attention of law enforcement when a confidential source reported to the Jacksonville Sheriff’s Office that Bolatete had a plan to conduct a mass shooting at a local mosque if he learned, as he expected to, that his only kidney had failed and he would have to undergo dialysis. In response, the Jacksonville Sheriff’s Office launched an investigation that included introducing Bolatete to an undercover detective (UC), with whom Bolatete shared his plan to attack the mosque. The investigation revealed that Bolatete had a collection of firearms and was nearly always armed. Bolatete also suggested to the UC that he had visited the mosque in the past. He also shared which of his firearms he would use for the attack and repeatedly bragged about having shot someone with a silencer-equipped firearm. Bolatete advised the UC on the best ways to put a hit on an adversary. 

When the UC told Bolatete that he had a source with access to silencers, Bolatete asked to buy one and insisted that it not be registered with the government (registration is required by federal law). Bolatete also sent a text message to the UC suggesting that he could use the silencer to take out the UC’s adversary. 

Bolatete was arrested on December 1, 2017, after the UC sold him an unregistered silencer for $100. After his arrest, Bolatete admitted that he had possessed the unregistered silencer but claimed that he had purchased it for hunting.  When FBI agents searched his home and car, they found a significant collection of firearms and ammunition, including the specific firearms that Bolatete had told the UC that he would use to conduct the mass shooting at the mosque.

“The FBI will not stand for threats of violence in our community against any group,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division, “and we will work to uphold the civil rights and liberties outlined in the U.S. Constitution for all Americans including the right to practice religion in peace. The Jacksonville community is safer today thanks to the vigilance of community members who saw something out of the ordinary and reported those concerns, as well as the cooperation of our federal, state and local law enforcement partners. We also commend the outstanding work of the Jacksonville Sheriff's Office which was vital to the success of this case.”

ATF Special Agent in Charge Daryl McCrary said, “As subject matter experts in violent crime, firearms and explosives, we will continue to work with our law enforcement partners to keep illegal firearms out of our communities.”         

“I thank our FDLE agents and law enforcement partners for swiftly investigating this threat ensuring no one was hurt,” said FDLE Jacksonville Special Agent in Charge John Burke. “I urge all Floridians to report suspicious activity. If you see something, say something, call 855-FLA-Safe or 911.”

This case was investigated by the Jacksonville Sheriff’s Office, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Michael J. Coolican.

Tampa, Florida – Dr. Jayam Krishna Iyer (66, Clearwater) today pleaded guilty to one count of health care fraud. She faces a maximum penalty of 10 years in federal prison, or 20 years, if her offense involves serious bodily injury. As part of the plea, Iyer has agreed to surrender both her DEA registration number that she used to prescribe controlled substances and her Florida medical license, and to a permanent exclusion from the Medicare and Medicaid programs.

According to the plea agreement, Iyer owned and operated Creative Medical Center located on Druid Road East in Clearwater. The center functioned as a pain management clinic. Iyer billed Medicare and Medicaid for office visits, tests, and services provided to patients using her National Provider Identification (NPI) number, and wrote prescriptions for controlled substances, including oxycodone. She used Current Procedural Terminology (CPT) code 99213, which was used to bill for office visits for the evaluation and management of established patients, and required an in-person examination with the actual patient. As an approved Medicare provider, Iyer also agreed to provide truthful information and to not make any materially false statements or representations in connection with the delivery of or payment for health care benefits.

Beginning at least as early as July 2011, and continuing through December 2017, Iyer executed and carried out a scheme to defraud Medicare by billing for face-to-face office visits with Medicare beneficiaries, when, in fact, certain patients did not go to Iyer’s office and were not examined by her on the claimed dates; instead,  family members of the patients went to Iyer’s office with notes requesting that Iyer issue and provide prescriptions, including for Schedule II controlled substances like oxycodone, to the family members, and in the beneficiaries’ names—and Iyer issued those prescriptions. Iyer thereby violated a Florida law requiring doctors to perform an in-person office visit and examination of each patient before issuing Schedule II controlled substance prescriptions. Iyer also falsified her electronic medical records, including vital statistics, to make it appear that the actual patient was present in her office for an office visit, when the patient was not. Iyer submitted at least $51,500 in these types of false and fraudulent Medicare claims.

This case was investigated by the Opioid Fraud and Abuse Detection Unit. On August 2, 2017, Attorney General Jeff Session announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice pilot program to utilize data to help combat the devastating opioid crisis that is ravaging families and communities across America. The unit focuses specifically on opioid-related health care fraud using data to identify and prosecute individuals that are contributing to the prescription opioid epidemic. The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, the Drug Enforcement Administration, and the Florida Office of Attorney General’s Medicaid Fraud Control Unit. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.

Tampa, Florida – Marc Jason Levene (57, Sarasota) has pleaded guilty to two counts of possession of explosives by a convicted felon. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing has been set for December 12, 2018.

According to the plea agreement, in 2016, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating Levene for selling explosives without a federal license or permit. Based on Levene’s multiple prior felony drug convictions, he was prohibited from possessing or selling any explosive materials.  In January 2016, the ATF and the Sarasota County Sheriff’s Office seized various explosive fuses from a shed behind Levene’s home in Sarasota. 

In late 2017, ATF learned that Levene was selling explosive fuses online, notwithstanding the prior seizure and prohibition. The ATF initiated an undercover investigation that confirmed Levene was selling the fuses online through a website called ThePyroPro.com. Agents also learned that Levene was maintaining a storage unit at a self-storage facility in Sarasota. An explosives detection K-9 alerted to the presence of explosives in the storage unit.

In February 2018, special agents and explosives specialists with ATF, bomb technicians and detectives with the Sarasota County Sheriff’s Office, and hazardous devices technicians with the Bureau of Fire, Arson and Explosives Investigations executed multiple search warrants at Levene’s residence and his storage unit.  During the searches, law enforcement personnel seized thousands of pounds of explosive fuses and hundreds of rounds of ammunition. In total, during this investigation, the ATF, Sarasota County Sheriff’s Office, and the Bureau of Fire, Arson and Explosives Investigations seized approximately 7,733 pounds of explosive fuses from Levene.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sarasota County Sheriff’s Office, and the Bureau of Fire, Arson and Explosives Investigations. It is being prosecuted by Assistant United States Attorney Simon Gaugush.

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 October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. 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 an indictment charging Russell Leroy Dotson, Jr. (61) and Maria Luisa Dotson (64), both of Jacksonville, with conspiracy to commit wire fraud. If convicted, each faces a maximum penalty of 20 years in federal prison. The indictment also notifies Russell and Maria Dotson that the United States is seeking a money judgment in the amount of $886,130, the proceeds of the alleged conspiracy. The couple made their initial appearance in federal court today and was released on a $5,000 bond. Their arraignment is set for Monday, September 24, 2018.

According to the indictment, the Dotsons owned and operated Asmarina Food Mart with two locations in Jacksonville. Upon opening the convenience stores, they applied for and received approval from the Food and Nutrition Service, an agency of the United States Department of Agriculture, to participate in the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. After receiving this approval, the Dotsons trained their employees on ways to conduct fraudulent transactions with SNAP recipients using their Electronic Benefit Transfer (EBT) card. The Dotsons instructed their employees to ring up fraudulent transactions to make it appear that SNAP recipients had purchased eligible food products from the store using their EBT cards. The employees then gave the SNAP recipients cash representing approximately one-half of the amount of the fraudulent transaction, while the Dotsons received the remainder of the money. Over approximately 27 months, Russell and Maria Dotson defrauded the United States out of $886,130.

This indictment is part of a long-term investigation into SNAP fraud occurring at the two Asmarina Food Mart locations. To date, 10 others have pleaded guilty and have been sentenced, or are pending sentencing, for their roles in this scheme. Shelly Rowe Sullivan, Teighlor Michelle Wicker, Tracy Lynn Hammock, Shannon Marie Whaley, Denise Diane Taylor, and Ormetre Patterson were previously sentenced to supervised release and ordered to pay a total of $37,420.34 in restitution to the United States. Cierra Elizabeth White, Laura Lockwood, Shanelle Bryant, and Felicia Meadows are pending sentencing and have agreed to pay a total of $168,294.87 in restitution to the United States.       

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 Jacksonville Sheriff’s Office, the U.S. Secret Service - Jacksonville Field Office, and the U.S. Department of Agriculture - Office of Inspector General. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.

Orlando, Florida – A federal jury has found Jurden Rogers (29, Sanford) guilty of bank robbery and brandishing a firearm during the bank robbery. Rogers faces a maximum penalty of life in federal prison. His sentencing hearing is set for November 29, 2018.

Rogers was indicted in February 2018, along with his co-defendant Jerad Hanks (26, Daytona Beach). Hanks previously pleaded guilty to the same offenses for his involvement in the robbery.

According to evidence presented at trial, on January 18, 2018, Rogers and Hanks robbed a Seacoast Bank in Sanford. Rogers backed the getaway car up to the front entrance of the bank and Hanks exited the vehicle wearing a ski mask and holding a shotgun. Hanks then entered the bank and brandished the shotgun at tellers while demanding cash. After robbing the bank tellers of more than $2,300, Hanks returned to the waiting getaway car, and Rogers drove them to a nearby apartment complex. When law enforcement officers located Rogers and Hanks at the apartment complex later that day, Rogers hid his half of the robbery proceeds in the waste pipe of his toilet and tried to escape out of a third-story apartment window.

This case was investigated by the Federal Bureau of Investigation and the Sanford Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt. Assistant United States Attorney Nathan W. Hill assisted with the prosecution.

Tampa, Florida – U.S. District Judge Steven Merrday has sentenced Dr. John Janick (73, Port Charlotte) to five months in prison, followed by three years of supervised release, for obstructing a Medicare audit. As part of his sentence, Janick is required to pay $118,831.62 in restitution to the Medicare program.

According to the plea agreement, Janick lied to a Medicare program integrity contractor who was auditing Janick Medical Group. Specifically, Janick falsely claimed that a third-party employer was paying rent for office space utilized by his wife, Lisa McLaren Janick. The office space, located within the Janick Medical Group practice, was used by Lisa McLaren Janick to improperly access sensitive patient data that was then used to generate referrals from Dr. Janick to her third- party employer without regard for medical necessity.

Lisa McLaren Janick previously pleaded guilty to health care fraud charges in a related case. In her plea agreement, McLaren Janick acknowledged her role in falsifying Janick Medical Group patient records as part of a scheme to create bogus patient referrals to her third-party employer. McLaren Janick will be sentenced on October 10, 2018.

This case was investigated by Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Rachel Jones and Gregory Pizzo.

Tampa, FL – Jamelah Y. Martinez (23, Tampa) today pleaded guilty to conspiracy to commit bank fraud. She faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, in 2016 and 2017, while working for Suncoast Credit Union, Martinez used her access to Suncoast customer accounts to steal account information. She then sold the information to a co-conspirator. Martinez’s co-conspirators used the stolen account information to fraudulently takeover the bank accounts. The conspirators deposited fraudulent checks into the victim accounts and then immediately transferred the fraudulently obtained funds to other co-conspirators, who maintained accounts at Suncoast. Once the fraudulent funds were received into the co-conspirators’ accounts, they were extracted via ATM withdrawals and debit card transactions. The co-conspirators shared in the proceeds.

The loss to Suncoast related to Martinez’s involvement in this scheme was $115,487.75. The investigation into Martinez’s co-conspirators is ongoing. One co-conspirator, Devin Williams, has pleaded guilty to conspiracy to commit bank fraud and is scheduled to be sentenced on December 4, 2018.

This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency. It is being prosecuted by Assistant United States Attorney Mandy Riedel and Special Assistant United States Attorney Chris Poor.

Jacksonville, Florida – Joshua Dale Whitt (25, Macclenny) has pleaded guilty to failing to register as a sex offender. He faces up to 10 years in federal prison. A sentencing date has not yet been scheduled. Whitt has been detained since his arrest on May 2, 2018.      

According to court documents, on January 2, 2013, Whitt was convicted of unlawful sexual conduct with a minor in Clermont County, Ohio. In early 2018, Whitt traveled from Ohio to Florida, where he resided at a motel in Macclenny. In doing so, he failed to register as a sex offender with authorities in both Ohio and Florida 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 Adam Walsh 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. 

This case was investigated by the Baker County Sheriff’s Office, the U.S. Marshals Service, 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.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Elizabeth Correa (60, Tampa) with three counts of wire fraud, three counts of false statement or fraud to obtain federal employees’ compensation, one count of theft of government funds, and one count of making a false statement to a federal agency. If convicted, Correa faces a maximum penalty of 20 years’ imprisonment on each wire fraud count, up to 10 years in prison for the theft of government funds count, and 5 years’ imprisonment on each count of making a false statement. The indictment also notifies Correa that the United States is seeking a money judgment in the amount of $212,923, the alleged proceeds of the wire fraud and theft of government funds.  

According to the indictment, Correa concealed her physical capabilities, emotional state, and employment activities from the Office of Workers’ Compensation in order to continue receiving federal workers’ compensation benefits. She also made material false statements about her employment activities on forms that she submitted to the Office of Workers’ Compensation and to the Social Security Administration. In addition, Correa received Social Security Disability Insurance Benefits to which she was not entitled.

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 U.S. Postal Service Office of Inspector General and the Social Security Administration Cooperative Disability Investigations Unit. It will be prosecuted by Special Assistant United States Attorney Suzanne Huyler.

Tampa, FL –David Lyle Morgan (53, Tampa) has pleaded guilty to one count of bankruptcy fraud. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, Morgan was a licensed realtor who entered into a contract with a homeowner to sell a property in foreclosure. In order to prevent the Federal National Mortgage Association (commonly known as Fannie Mae) from lawfully foreclosing on the homeowner’s property, Morgan devised and executed a bankruptcy fraud scheme wherein he filed a fraudulent bankruptcy petition in the name of the homeowner, without the homeowner’s knowledge or consent, just prior to the scheduled foreclosure sale date. The fraudulent bankruptcy invoked the automatic stay provision of the bankruptcy code, which prevented Fannie Mae from conducting the foreclosure sale and obtaining title to the property.

The fraudulent bankruptcy petition filed by Morgan allowed him to continue efforts to sell the property in order to obtain ill-gotten real estate commissions.

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor.

Fort Myers, Florida – Oliver Rocher (33, Alva, FL) has pleaded guilty to five counts of a federal indictment alleging drug and firearms offenses. Rocher entered his plea on the morning that his jury trial was set to begin. He faces a maximum penalty of life in federal prison. A sentencing hearing has been set for December 10, 2018.         

According to court records, Rocher worked as a pimp and drug dealer out of hotels and motels in Fort Myers during 2017. In May 2017, on two occasions, Rocher sold heroin to a confidential informant working with law enforcement.  During the course of the transactions, Rocher tried to ensure that the informant was not secretly recording him, and he conducted the actual hand-offs of heroin in locations that could not be easily watched by law enforcement.

Further investigation led to a search warrant on Rocher’s motel room in the early morning hours of August 3, 2017. Two days prior to execution of the warrant, law enforcement observed Rocher walk in and out the motel room, conducting suspected drug deals, and collecting money from women walking the nearby streets. 

Upon execution of the warrant, inside Rocher’s motel room, law enforcement encountered Rocher, as well as two women who were trying to flush items down the toilet. Law enforcement also found, in an open safe, heroin, cocaine, cocaine base, a loaded firearm, Rocher’s state-issued identification card and thousands of dollars in cash. 

This case was investigated by the Lee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.

Orlando, FL – A federal jury today found Devin Lashawn Jefferson, II (22, Apopka) guilty of attempted possession with intent to distribute of furanyl fentanyl. Jefferson faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for December 2018.

Jefferson was indicted on March 21, 2018. 

According to testimony and evidence presented at trial, 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 in New York 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. On February 27, 2018, agents conducted a controlled delivery of the package, 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. 

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 Inspection Service, the Drug Enforcement Administration, and the Orlando Police Department. It is being prosecuted by Assistant United States Attorneys Embry J. Kidd and Dana E. Hill.

Orlando, FL – U.S. District Judge Paul G. Byron has sentenced Thomas Dean Peron (30, Sanford) to 17 years and 5 months in federal prison. Peron pleaded guilty on June 25, 2018.

According to court documents, between February 21 and February 22, 2018, Peron communicated with an undercover FBI agent who was posing as the father of a nine-year-old child. During those communications, Peron made plans to meet and have sex with the “child.” When Peron arrived to meet the “child,” he was arrested.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Alejandro J. Salicrup.

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.

Jacksonville, Florida – United States District Judge Brian J. Davis has ordered Stanley Hagan, Jr. (34, Jacksonville) to pay $13,619.52 in restitution to the custodian of a child who was molested in 2015 by Darren Dozier, a convicted sex offender from Philadelphia. According to court records, in late 2015, Dozier sent images over the internet depicting his sexual abuse of the 8-year-old child to Hagan. After being identified by the FBI, Hagan admitted to his participation in the ongoing sexual exploitation of the child and pleaded guilty to receiving child pornography. 

On May 31, 2018, Hagan was sentenced to 5 years in federal prison, ordered to serve a 10-year term of supervised release, and required to register as a sex offender. Dozier was prosecuted in Philadelphia and sentenced to 35 years in federal prison.     

This case was investigated by the FBI (Jacksonville and Philadelphia). It was prosecuted by Assistant United States Attorney D. Rodney Brown.

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.   

Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced John M. Gayden, Jr. (64,West Melbourne) to 19 years and 7 months in federal prison for dispensing oxycodone outside the usual course of professional practice and for no legitimate medical reason. A federal jury found Gayden guilty on June 22, 2018.

According to testimony and evidence presented at trial and sentencing, between 2009, and continuing through 2011, Gayden ran a cash-only pain management clinic in Indialantic, Florida. He charged $200-$400 per visit for appointment, during which patients received prescriptions for high doses of oxycodone with little to no medical evaluation. Gayden issued these prescriptions bi-monthly or monthly for years, without consulting with the patients about their health or properly verifying these patients’ needs for long-term high dosage oxycodone. Patients traveled from other counties and lined up outside Gayden’s office in the early mornings to receive the prescriptions. Many of the individuals who received the prescriptions then abused the oxycodone themselves or sold the pills.    

This case was investigated by Drug Enforcement Administration, the Florida Department of Law Enforcement, the Melbourne Police Department, the Brevard County Sheriff’s Office, and the Florida Department of Health. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.

Jacksonville, Florida – Michael Douglas McNeil (30, Jacksonville) has been arrested and charged by federal criminal complaint with using the internet to attempt to entice a child to engage in sexual activity. He faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. McNeil is currently detained pending a detention hearing. 

According to the

complaint , on August 27, 2018, a detective with the Clay County Sheriff’s Office, who was posing online as a family member of a 12-year-old deaf child, received a message on a social media application from McNeil, who identified himself as “Mark.” McNeil expressed interest in having sex with the “child” and was advised that the “child” was 12 years old. Between August 27 and August 30, 2018, McNeil and the undercover detective discussed plans for McNeil to meet the “child” for sex. McNeil asked for several photos of the “child,” sent the undercover detective an explicit photo of himself, and asked specific questions about the “child’s” sexual experience and abilities. On August 30, 2018, McNeil drove to a coffee shop in Orange Park to meet the “child” for sex and was arrested.

This case was investigated by the Clay County Sheriff’s Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and the Jacksonville 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 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.   

Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging John Craig Myrick (67, Groveland) with forcible assault of a federal officer. Myrick faces a maximum penalty of 20 years in federal prison.              

According to the criminal complaint, on August 11, 2018, Myrick arrived at the Orlando International Airport from Bogota, Colombia. While passing through customs, a Customs and Border Protection Officer (CBPO) referred Myrick into the baggage control seating area. While in the seating area, after a brief interaction, Myrick moved towards another CBPO, who attempted to control Myrick by grabbing Myrick’s arm. Myrick resisted, striking the CBPO in the back of the head or neck. Myrick then fell on top of the CBPO, striking him in the back of the head several times. The CBPO suffered a fractured ankle in the process.

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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Customs and Border Protection. It will be prosecuted by Special Assistant United States Attorney Brandon Bayliss.

Jacksonville, Florida – Mohammad Abdul Malek (67, St. Marys, GA) has been arrested and charged by federal criminal complaint with attempted enticement and coercion of a minor. If convicted, he faces a minimum mandatory penalty of 10 years, and up to life, in federal prison.

According to the

complaint , between August 23 and August 26, 2018, Malek engaged in email and text communications with an undercover agent acting as a 13 year-old girl. Malek asked for photos of the “child” and told her that he wanted to teach her about “making love.” Malek was advised and acknowledged that the “child” was a minor and suggested that he and the girl meet to engage in sex. On August 26, 2018, Malek traveled to Jacksonville to meet the “child” and was arrested by officers from the Jacksonville Sheriff’s Office.

A criminal complaint is merely an allegation that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Jacksonville Sheriff’s Office and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ashley Washington.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Tampa, Florida – United States District Judge Charlene Edwards Honeywell today sentenced Yoel Graveran-Palacios (37, Tampa) to nine years in federal prison for conspiracy, credit card fraud, and identity theft. A federal jury found Yoel Graveran-Palacios and his twin brother, Noel Graveran-Palacios, guilty on April 24, 2018. Noel Graveran-Palacios is scheduled to be sentenced on September 19, 2018.

According to testimony and evidence presented at trial, Noel and Yoel Graveran-Palacios worked together, and with others, to place skimmers on gas pumps in the Tampa Bay area. Using the account numbers stolen from the skimmers, they made counterfeit credit cards and then used them to purchase merchandise including gas, toys, clothes, and gift cards, at area retailers. They then used the gift cards to purchase merchandise at home improvement stores, and later returned the items for cash. Trial evidence included hundreds of recovered stolen account numbers, as well as dozens of store surveillance videos featuring the conspirators using the counterfeit credit cards.

This case was investigated by the U.S. Secret Service and the Tampa Police Department, with assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Mandy Riedel.

A Maryland resident was sentenced today to 33 months in prison for defrauding victims into paying for falsified bank documents from a bank in the Dominican Republic. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez for the Middle District of Florida, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.

Mohammed Mohajer, 63, of Silver Spring, Maryland, previously pleaded guilty in the U.S. District Court for the Middle District of Florida to one count of wire fraud.  U.S. District Judge Sheri Polster Chappell presided over the sentencing and also ordered Mohajer to serve three years of supervised release following his prison sentence, forfeit $194,000, and pay restitution in the amount of $565,000 to two victims.  

According to the defendant’s admissions, Mohajer falsely told victims that he had a relationship with a bank in the Dominican Republic.  He represented to the victims that in exchange for an up-front payment, he could help them access credit at the bank, and that the bank would issue SWIFT interbank messages to the victims’ designated banks showing that the victims had access to those funds.  In fact, Mohajer had no relationship with the Dominican bank and provided the victims with fake documents that falsely showed that their promised bank documentation had been transmitted.  In total, Mohajer defrauded the victims out of $565,000. 

The investigation was conducted by the FBI.  Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jesus Casas of the Middle District of Florida prosecuted the case. 

If you believe that you have been a victim of this or a similar fraud scheme, please contact the FBI Washington Field Office at (202) 278-2000.  

A Ft. Myers, Florida man was sentenced to 18 months in prison for stealing government funds and corruptly endeavoring to obstruct the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. 

According to documents filed with the court, Attila Kalmar filed 2007 through 2009 trust returns with the Internal Revenue Service (IRS) in the name of First AK-Open Sec Trust, a nominee entity, seeking more than $480,000 in fraudulent refunds.  Kalmar deposited a refund check he received as a result of these filings into a bank account, and then used the proceeds to purchase real property, acquire thousands of dollars in gold coins, and wire money overseas.  Moreover, Kalmar attempted to impede the internal revenue laws by transferring funds between nominee bank accounts and falsely representing to the IRS that an IRS revenue officer was the trustee for First AK-Open Sec Trust.

In addition to the term of prison imposed, U.S. District Judge Sheri Polster Chappell ordered Kalmar to serve three years of supervised release, forfeit $274,019 and a piece of real estate to the United States, and pay $274,019 in restitution to the IRS. 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys William M. Montague and Grace E. Albinson of the Tax Division, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.