Middle District of Florida

Ocala, Florida – A federal jury has found Mark Charles Barnett (50, Ocala) guilty of attempted arson, possession of an unregistered National Firearms Act (NFA) destructive device, and making an unregistered NFA destructive device.  Barnett faces a maximum penalty of 20 years in federal prison for the attempted arson count and up to 10 years in federal prison on each of the destructive device convictions. His sentencing hearing has been set for October 17, 2018.

A federal grand jury returned a superseding indictment charging Barnett with these crimes on June 20, 2018. 

According to testimony and evidence presented at trial, Barnett offered a Confidential Source (CS) $10,000 to place improvised explosive bombs inside Target stores along the east coast of the United States. Barnett purchased the bomb components and assembled at least 10 of the destructive devices, which he disguised inside the packaging of common grocery items. He then delivered the devices to the CS with instructions to put them on the shelves of Target stores from New York to Florida. The CS, however, promptly surrendered the destructive devices to authorities and Barnett was arrested on February 14, 2017.  

Barnett theorized that the company’s stock value would plunge after the explosions, allowing him to cheaply acquire shares of Target stock before an eventual rebound in prices. Barnett told the source, “If someone has to die so that I can make some money, so be it.”  

Federal explosives experts subsequently determined that the resulting fire and explosion from each of the devices would have been capable of causing property damage, serious injury, and death. Searches of Barnett’s house, cellphone, and computer revealed pictures of the grocery items that he had turned into bombs, as well as leftover bomb components and articles describing stock options. 

Barnett, a registered sex offender, had been conditionally released from state prison in 2013, following multiple felony convictions for sexual assault, kidnapping, and grand theft. He was also previously convicted of kidnapping in Mississippi. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Florida Department of Law Enforcement, the Marion County Sheriff’s Office, the Florida Department of Corrections - Probation and Parole, and the Ocala Police Department. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

Tampa, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Nelson Armando (52, Ecuador), Jimmy Espinal (50, Ecuador), and Christian Rodriguez-Sanchez (25, Guatemala) with possession with the intent to distribute and conspiring to possess with the intent to distribute five kilograms or more of cocaine. If convicted, each faces up to life in federal prison and a $10 million fine for each count.

This indictment arose out of a June 15, 2018, interdiction of a drug smuggling vessel in international waters by the United States Coast Guard (USCG) Cutter VENTUROUS. As part of the interdiction, the USCG seized approximately 741 kilograms of cocaine.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command’s Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. It is being prosecuted by Special Assistant United States Attorney Nicholas G. DeRenzo.

Ocala, Florida – Senior U.S. District Judge James D. Whittemore today sentenced Gilberto Astudillo Carbajal (34, Ocala) to 17 years in federal prison for conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine, possession of a firearm in furtherance of a drug trafficking offense, illegal re-entry into the United States after a prior deportation or removal, and possession of a firearm by an illegal alien. Astudillo Carbajal had pleaded guilty on February 1, 2018. 

According to court documents, on May 24, 2017, in a parking lot in Ocala, Carbajal’s co-defendant, Simon Rodriguez-Flores (48, Ocala), sold a cooperating witness approximately 4 ounces of crystal methamphetamine. On June 2, 2017, at the same location, Rodriguez-Flores delivered 2 kilograms of crystal methamphetamine to the same cooperating witness and was arrested by agents from the Drug Enforcement Administration. The agents also detained Tirso Hernandez-Astudillo (35, Ocala), who was a passenger in Rodriguez’s car.

Immediately after the arrest, a search warrant was executed at a residence on in Ocala that Hernandez-Astudillo shared with Carbajal. Upon entering the home, law enforcement officers observed Carbajal backing away from the front door and reaching backwards toward a kitchen counter. On the counter, officers discovered a loaded 9 mm pistol, which was later determined to belong to Carbajal. Also recovered from the home were items used in the manufacture and packaging of crystal methamphetamine.

From another residence across the street, where Hernandez-Astudillo had been observed earlier in the day, agents recovered a suspicious package containing approximately one kilogram of an undetermined powdery substance, later analyzed and determined to contain fentanyl.

According to court records, Carbajal also previously had been convicted for illegally reentering the United States at the time of his arrest on June 2, 2017. Carbajal was a citizen of Mexico and was in the United States illegally. He had been deported and removed from the United States to Mexico on three prior occasions.

On May 24, 2018, Sr. Judge Whittemore sentenced Tirso Hernandez-Astudillo (35, Ocala) to 20 years in federal prison following guilty verdicts by a federal jury on felony drug charges. On the same date, Simon Rodriguez-Flores (48, Ocala) was sentenced to 11 years’ imprisonment for his role in the drug conspiracy. Rodriguez-Flores and Hernandez-Astudillo were also in the United States illegally.

This case was investigated by the Gainesville Resident Office of the Drug Enforcement Administration, assisted by task force officers from the Gainesville Police Department, the Alachua County Sheriff’s Office, the Ocala Police Department, the Levy County Sheriff’s Office, and the Union County Sheriff’s Office. The Marion County Unified Drug Enforcement Strike Team assisted in the execution of the search warrant and the arrests. It was prosecuted by Assistant United States Attorney Dale R. Campion.

Orlando, Florida – A federal jury has found Valeriy Tsoy (35, a citizen of Kazakhstan) guilty of marriage fraud. On July 23, 2018, Zafar Bakhramovic Yadigarov (27, citizen of Uzbekistan) pleaded guilty to marriage fraud and conspiracy to commit marriage fraud. Each faces a maximum penalty of five years in federal prison. Tsoy’s sentencing hearing is scheduled for October 24, 2018. Yadigarov’s sentencing is scheduled for October 10, 2018.

Tsoy and Yadigarov were indicted on August 30, 2017.

According to court documents, in October 2015, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations worked with the Brevard County Clerk of the Court to investigate a significant surge in the number of aliens from Uzbekistan, Kazakhstan, Kyrgyzstan, and other former Soviet countries fraudulently marrying U.S. citizens in Brevard County. The leader of the marriage fraud ring, Dennis Yakovlev, admitted to facilitating at least 50 sham marriages over an 18-month span. The foreign nationals, who were from Ukraine, Russia, Kazakhstan, Tajikistan, Uzbekistan, China, India, Belarus, and Turkey, traveled to Brevard County from around the United States. Yakovlev claimed that he was typically paid $1,000 to $2,000 per sham marriage and that the American citizens were paid between $10,000 and $20,000 each. Many of the aliens who engaged in these marriages initially entered the country on student visas, but later fell out of legal status. Nine individuals, including Tsoy and Yadigarov, have been convicted of marriage fraud charges during the course of this investigation.

The testimony and evidence in Tsoy’s trial indicated that, in 2015, Tsoy was living in Brooklyn, New York on an expired visa. In an effort to gain permanent residence in the United States, he sought out the services of a fraudulent wedding facilitator (Yakovlev). Tsoy then traveled to Brevard County to marry a U.S. citizen (April Moore). In exchange for the marriage and the filing of immigration documents, Tsoy paid Yakovlev, Moore, and a recruiter approximately $10,000. Tsoy spent a few hours with Moore before marrying her on July 6, 2015, at the courthouse in Titusville. 

According to court documents,while living on a temporary student visa in Brooklyn in 2015, Yadigarov traveled to Brevard County to meet with Yakovlev and a U.S. citizen wife-to-be (Meghan Toole). Shortly thereafter, Yadigarov married Toole and returned to Brooklyn. Yadigarov and Toole filed immigration paperwork in an effort to secure his legal permanent residence.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Enforcement and Removal Operations, U.S. Citizenship and Immigration Services – Fraud Detection and National Security, and the Brevard County Sheriff’s Office, with assistance from the Brevard County Clerk of the Court. Special Assistant U.S. Attorney Brandon Bayliss, on assignment from the Office of the Principal Legal Advisor, ICE, prosecuted the case with Assistant United States Attorney Ilianys Rivera Miranda.

Tampa, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Jorge Lucas Murillo (28, Ecuador), Carlos Patron Marchan (20, Ecuador), Weimar Valencia Campaz (28, Colombia), and Abraham Lopez Mendoza (47, Mexico) with conspiracy to possess with the intent to distribute five kilograms or more of cocaine. If convicted, each faces a maximum penalty of life in federal prison and a $10 million fine for each count.

This indictment arose out of a July 9, 2018, interdiction of a drug smuggling vessel in international waters by the U.S. Coast Guard (USCG) Cutter ALERT. As part of the interdiction, the USCG seized approximately 1,200 kilograms of cocaine.      

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.

This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command’s Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. It is being prosecuted by Special Assistant United States Attorney Nicholas G. DeRenzo.

Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Andrew Haley Morcombe (51, United Arab Emirates) to the maximum term of three years in federal prison for international parental kidnapping. The court also ordered Morcombe to pay a $95,000 fine and $90,000 in restitution. 

Morcombe was found guilty by a federal jury on April 23, 2018. 

According to evidence presented at trial, Morcombe kidnapped his daughter on May 2, 2014, during a weekend of scheduled time-sharing. To do so, he falsified court records and submitted an emergency passport application to British Consulate officials containing false information on behalf of his daughter. Morcombe and his daughter then flew out of the United States, and ultimately, onto the United Arab Emirates, a country with which the United States has no extradition treaty. Morcombe’s actions violated a then-pending state court order, which prohibited him from departing the United States with his daughter without court authorization and from applying for a new or replacement passport on behalf of his daughter.

Morcombe asserted a statutory affirmative defense at trial under Section 1204(c)(2), claiming that he kidnapped his daughter so as to flee domestic violence. Evidence and testimony introduced at trial, however, showed that Morcombe had no evidence that his daughter had ever been abused.

This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Stacie B. Harris and Kaitlin R. O’Donnell.

Orlando, Florida – A federal jury has found Courtney Rashon Johnson (43, Orlando) guilty of possessing a firearm as a convicted felon. Johnson faces a minimum mandatory penalty of 15 years, and up to life, in federal prison. His sentencing hearing is scheduled for October 11, 2018.

Johnson was indicted on March 28, 2018.

According to testimony presented at trial, Johnson was carrying a firearm and fleeing from a scene where gunshots had been fired, when he encountered multiple detectives from the Orlando Police Department. When the detectives ordered him to drop to the ground, Johnson complied, throwing the .38-caliber revolver that he had been carrying. Johnson has had multiple prior felony convictions and, therefore, is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Orlando Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.

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 –Victor Thomas Clavizzao (56, St. Petersburg) has pleaded guilty to wire fraud. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, Clavizzao, going by the name of “Victor Thomas,” opened a series of companies, and represented to others, including a local church, that he had the ability to help them conduct real estate transactions. Clavizzao convinced the church, which was seeking to construct a new building, to give him money. The church members believed that the money they gave to Clavizzao would be used to secure financing and to handle issues related to their construction project. Instead of aiding the church, Clavizzao used $16,350 of the church’s funds for his personal benefit.

When Clavizzao began his scheme, he was on federal supervised release for another real-estate-related fraud conviction.

This case was investigated by the FBI. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.

Tampa, Florida – U.S. District Judge Susan Bucklew today sentenced Edger Edmund Francis (29, Tampa) to 10 months in federal prison for conspiracy to smuggle goods from the United States. Francis pleaded guilty on April 23, 2018.

According to court documents, on September 22, 2016, Francis rented a U-Haul truck and drove it from Tampa to a shipping company in Riviera Beach, Florida. In Riviera Beach, Francis arranged to ship a barrel containing three handguns and hundreds of rounds of ammunition, concealed among various household goods. The barrel was destined for Roseau, Dominica, and records showed that Francis had bought the household items from a store in Tampa, just before making the trip. Francis never applied for, or received, an export license or other written prior approval to ship the guns or ammunition outside of the United States.

On or about October 26, 2016, the Commonwealth of Dominica Police Force searched the barrel and found the guns and ammunition hidden inside.

 “This case is an example of HSI’s dedication to stopping smuggled weapons before they fall into the hands of criminals who pose a threat to public safety both here and abroad,” said Homeland Security Investigations Special Agent in Charge James C. Spero.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, including its Attaché Caribbean, with assistance from the Commonwealth of Dominica Police Force. It was prosecuted by Assistant United States Attorney Patrick Scruggs.

Jacksonville, Florida – A federal grand jury has returned a superseding indictment charging Fanny Melina Zelaya-Mendez (39, Jacksonville) with making false statements to a federal agent, aggravated identity theft, and three counts of conspiracy to defraud the Internal Revenue Service (IRS) of federal payroll taxes, specifically, Social Security tax, Medicare tax, and income tax. Roger Omar Zelaya-Mendez (34, Jacksonville) has been charged with one count of conspiracy to defraud the IRS. These charges are in addition to previously filed charges. Specifically, on May 2, 2018, Fanny Melina Zelaya-Mendez was charged with three counts of conspiracy to commit wire fraud and Roger Omar Zelaya-Mendez was charged with one count of conspiracy to commit wire fraud and one count of illegally re-entering the United States after a prior deportation. The newly-filed false statements and tax fraud charges each carry a maximum penalty of five years in federal prison, and the aggravated identity theft charge carries a mandatory prison sentence of two years that must be served consecutively to any other sentence. Fanny Melina and Roger Omar Zelaya-Mendez are Honduran citizens who are illegally present in the United States.

The indictment also notifies the defendants that the United States intends to seek forfeiture of $1,033,485, the approximate amount of proceeds obtained as a result of the wire fraud offenses, and an additional $399,575 of seized funds, and two seized vehicles – a 2014 Dodge Ram pick-up and a 2012 GMC Yukon Denali.

The indictment alleges a fraudulent scheme in which construction contractors entered into agreements with shell companies, established by Fanny Melina and Roger Omar Zelaya-Mendez, that arranged for work crews, mostly made up of undocumented aliens, to work on the contractors’ projects. The contractors wrote payroll checks to the shell companies for the work performed by the workers. Fanny Melina and Roger Omar Zelaya-Mendez then cashed the checks, kept 4% as a fee, and distributed the remaining cash to work crew leaders, who then paid the workers.  By obtaining and paying the workers through the shell companies, the contractors could disclaim responsibility for ensuring that the workers were legally authorized to work in the United States, that adequate workers’ compensation insurance was provided, and that required payroll taxes were paid.

During the period of the scheme, a total of approximately $25,837,141 of payroll funds passed through the shell companies. Neither the defendants nor the contractors remitted payroll taxes to the IRS. According to the IRS, the estimated amount of payroll taxes due on the total wages is approximately $6.5 million.

When Fanny Melina Zelaya-Mendez was arrested on May 4, 2018, she gave a false name to an immigration officer and claimed to be a U.S. citizen who had been born in Puerto Rico. She also presented a valid Florida Identification Card which  she had obtained in the false name. Subsequent investigation revealed that the identity that she had adopted was for a real U.S. citizen who was born in Puerto Rico and that Fanny Melina Zelaya-Mendez had obtained the Florida ID card using a genuine Puerto Rico birth certificate and a genuine Social Security card.

An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.

Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Reginald Hollie a/k/a Reginald Bedford (35, Tampa) to 19 years and 7 months in federal prison for possessing a firearm as a convicted felon. The court also ordered Hollie to forfeit the firearm that was used in the offense.

A federal jury found Hollie guilty on April 25, 2018.

According to testimony presented at trial, on the evening of September 23 and into the early morning hours of September 24, 2017, a friend of Hollie’s was ejected from a bar in Ybor City by the establishment’s security team. Hollie, a convicted felon, became angry, obtained a firearm, returned to the bar, and threatened to shoot one of the security officers. Officers from the Tampa Police Department then attempted to make contact with Hollie, and ultimately found him in possession of a loaded firearm.

As a previously convicted felon, Hollie is prohibited from possessing a firearm or ammunition under federal law.

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.

This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Rachel Jones and Simon Gaugush.

Tampa, Florida – Jeffrey John Abraham (52, formerly of Tampa) has pleaded guilty to distributing controlled substances not specified in his Drug Enforcement Administration (DEA) registration. He faces a maximum penalty of four years’ imprisonment and a fine of up to $250,000. His sentencing date has not yet been set.

According to court documents, Abraham, a Florida-licensed physician, was employed at two local Veterans Affairs (VA) hospitals where he had applied for and obtained an official federal duty DEA registration number that was "limited to official federal duties," and specifically "restricted to government personnel for official duties only." This DEA registration was "not transferable on change of ownership, control, location or business activity." Abraham resigned from the VA in June 2017 and began working at a pain management clinic in Tampa, without first obtaining a new DEA registration.

From August 2017 through March 7, 2018, while working at the pain management clinic, Abraham wrote more than 2,000 prescriptions for Schedule II controlled substances, including over 600 prescriptions for hydromorphone (commonly known as Dilaudid) and over 1,000 prescriptions for oxycodone. In March 2018, Abraham resigned from working as a physician at the clinic. During the investigation of this case, Abraham admitted that his DEA registration did not authorize him to prescribe or distribute controlled substances in a private clinic setting after the date of his resignation from the VA, and agreed to surrender his DEA registration.

This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Greg Pizzo.

This case was investigated by the Opioid Fraud and Abuse Detection Unit located in the U.S. Attorney’s Office. On August 2, 2017, Attorney General Jeff Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit in 12 federal districts to help combat the devastating opioid crisis ravaging families and communities. The unit focuses specifically on opioid-related health care fraud and abuse by using data to identify and prosecute health care professionals and others who are contributing to the prescription opioid epidemic. 

 

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Lisa McLaren Janick (47, Port Charlotte) today pleaded guilty to two counts of health care fraud. McLaren Janick faces a maximum penalty of 20 years in federal prison on each count. A sentencing date has not yet been set.

According to the plea agreement, McLaren Janick, while employed as a marketer for a home health agency, falsified documents relating to her husband’s (Dr. Janick’s) Port Charlotte medical office and created bogus referrals for the patients to receive medically unnecessary home health services. Dr. Janick previously pleaded guilty in a related case to obstruction of a federal audit. His sentencing hearing is scheduled on September 11, 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 Attorney Rachel Jones.

Jacksonville, Florida – A federal judge has found Neil Andre Butler (46, Jacksonville) guilty of four counts of possessing and passing fraudulent U.S. Treasury checks. Butler faces a maximum penalty of 25 years in federal prison on each count. His sentencing hearing is scheduled for October 23, 2018.

Butler was indicted on October 4, 2017, and elected to be tried by the court, without a jury.

According to evidence presented at trial, Butler was a real estate investor who borrowed funds to buy distressed properties, intending to refurbish and “flip” them for a profit. When his business began to fail, in an effort to stave off his creditors, Butler manufactured and mailed his creditors four fraudulent checks. The checks totaled over $250,000 and were purportedly payable by the United States Treasury. 

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.

Jacksonville, FL– A federal jury today found Brian James Holland (23, Jacksonville) guilty of aggravated sexual abuse by force. Holland faces a maximum penalty of life imprisonment and a potential lifetime of supervision. His sentencing hearing is scheduled for October 22, 2018.

According to evidence presented at trial, a passenger with an intellectual disability, aboard the Carnival Cruise Line vessel, Elation, reported an incident of sexual abuse by force on February 27, 2018. The victim stated that she was in the cruise ship’s hot tub when Holland repeatedly attempted to put his arm around her and she attempted to move further away from him. Holland then tried to put his hand on her shoulder and pull her back towards him. Two passengers that were in the hot tub at the time of the incident corroborated the victim’s claim.

The victim stated that Holland touched her genitals over, and under her bathing suit, digitally penetrating her by force. The victim then left the hot tub and reported the incident to her family, who reported it to ship security. An examination of the victim by the ship’s medical personnel revealed abrasions on the victim’s genitals consistent with digital penetration by force. 

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ashley Washington and Jay Taylor.

Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Robert Joseph Ware (27, Pinellas Park) to 23 years in federal prison for producing   child pornography. Ware had pleaded guilty on December 20, 2017.  

According to court documents, on December 10, 2011, Ware produced three images of child pornography depicting him sexually abusing an infant that he had been babysitting. He sent the images via text message to an individual in New York. The investigation and prosecution of the individual in New York revealed the child pornography produced by Ware. When federal agents arrested Ware on May 9, 2017, he had 90 images of child pornography on his cellphone.

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

“Only the worst depraved criminal would produce child pornography with an infant left in his care,” said HSI Tampa Special Agent in Charge James C. Spero. “This egregious crime reminds us all to remain vigilant in the protection of our children.”

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.

Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Andy William Bosch (43, Orlando) to 16 years and 8 months in federal prison for enticement of a minor to engage in sexual activity and for federal income tax fraud. Bosch pleaded guilty to both charges on March 29, 2018. 

According to court documents, between March 10 and March 16, 2016, Bosch enticed a minor to travel from the Philippines to the United States to engage in sexual activity. Then, from October 20, 2016, to February 15, 2017, he used a cell phone to coerce the same minor to engage in sexual activity.

Furthermore, both independently and as part of his federal tax preparation business (BBG Tax Services), Bosch helped to prepare and file fraudulent federal income tax returns from 2012 to 2017. The losses for the false tax returns charged in the indictment totaled $135,801.          

The enticement case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Border Patrol, U.S. Citizenship and Immigration Services, with assistance from the U.S. Marshals Service, and the Osceola County Sheriff’s Office. The tax fraud case was investigated by the Internal Revenue Service – Criminal Investigation.

“HSI’s extensive international reach helped stop this criminal in his tracks,” said HSI Special Agent in Charge James C. Spero. “This sentencing underscores the combined efforts of federal, state, and local law enforcement in working to stop predators from harming children.”

Both cases were prosecuted by Special Assistant United States Attorneys Christina R. Downes and Brandon Bayliss, on assignment from the Office of Principal Legal Advisor, ICE, in the Middle District of Florida.

Ocala, Florida – U.S. District Judge Roy B. Dalton today sentenced Michael Philip Auld (31, Ocala) to 27 years and 3 months in federal prison for distributing child pornography. Following the prison sentence, Auld, a registered sex offender, must serve a lifetime on federal supervised release. The court also ordered him to forfeit a cellphone he had used in the commission of the crime. Auld pleaded guilty on April 3, 2018. 

According to court documents, on October 23, 2016, Auld distributed images of child pornography over the internet using his cellphone. At the time of the offense, he was serving a life term of supervised release on another federal child pornography conviction. Acting on a tip from an internet service provider, law enforcement officers executed a search warrant at Auld’s home on January 11, 2018. Investigators seized electronic devices from Auld’s bedroom, including the cellphone. Auld had been using the phone to receive, possess, and distribute hundreds of images of child pornography since at least 2016. In saved internet conversations on the phone, Auld also graphically described his fantasies of sexually assaulting a young girl and an infant. 

“This serial predator has proven he will prey on children at every opportunity,” said Homeland Security Investigations (HSI) Tampa Special Agent in Charge James C. Spero. “While already on probation for child pornography, he continued his pattern of abuse, which has ended thanks to HSI special agents, the Marion County Sheriff’s Office, and the prosecution team.”

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

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

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Joshua Dale Whitt (25, Macclenny) with failing to register as sex offender. If convicted, Whitt faces up to 10 years in federal prison and a $250,000 fine.

According to the indictment, on or about January 2, 2013, Whitt was convicted of unlawful sexual conduct with a minor in Clermont County, Ohio.  Subsequent to his conviction and between January 22, 2018, and May 2, 2018, he traveled from Ohio to Florida and failed to register as a sex offender as required by the Sex Offender Registration and Notification Act.

The Sex Offender Registration and Notification Act 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 United States Marshals Service, and the Florida Department of Law Enforcement. It is being 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.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Kenneth Brian Hanger (46, St. Augustine) with attempted online enticement of a minor, attempted production of child pornography, and online solicitation of child pornography. In 1994, Hanger was convicted of aggravated indecent assault in Bradford County, Pennsylvania and is required to register as a sexual offender. Because of his prior child sex offense conviction, Hanger faces cumulative enhanced penalties in this case of 70 years, and up to life, in federal prison. On July 6, 2018, Hanger was ordered detained pending his trial. 

According to court documents, on May 22, 2018, a detective with the St. Johns County Sheriff’s Office (SJSO) reviewed sexual offender registration information provided by Hanger. Hanger disclosed his use of a Facebook account that did not list his true name. Posing as a minor child, the detective sent a “friend request” to this account, and Hanger accepted this request and made online contact with the “child.” Between May 24 and June 5, 2018, Hanger and the “child” engaged in online conversations on several occasions using a texting application.  Hanger was advised and acknowledged that the “child” was 13 years old. 

On June 1, 2018, Hanger raised the topic of sexual activity between himself and the “child” and suggested meeting to engage in sex. On June 4, 2018, Hanger and the “child” again discussed meeting for sex, and Hanger sent the “child” an explicit photo of himself. Hanger suggested that they would need to use condoms so that the “child” would not become pregnant and Hanger would not “leave any DNA.” Later that day, Hanger asked the “child” to send him a graphic video depicting “her” genitalia. The next day, SJSO detectives arrested Hanger at his home.

This case was investigated by the St. Johns County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. 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, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Rafael Sanchez (30, Palmetto), Jerome Miller (29, Bradenton), James McClinton (39, Orlando), and Jose Venegas (23, Dade City) with conspiring to distribute more than a kilogram of heroin and possession with the intent to distribute more than a kilogram of heroin. If convicted on all counts, each faces a mandatory minimum penalty of 10 years, and up to life, in federal prison.  The indictment also notifies the defendants that the United States intends to forfeit assets and property that are alleged to be traceable to proceeds of the offense.

According to court documents, special agents from the Drug Enforcement Administration executed a search warrant at a house in Dade City, where the defendants were involved in converting pure heroin for street distribution in Manatee County. During the search, agents recovered approximately 1,400 grams of pure heroin and over 900 grams of cutting agents that were to be added to the pure heroin, for a total of more than two kilograms of distributable heroin. Agents also seized approximately two ounces of methamphetamine, crack cocaine, and a handgun.

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 Drug Enforcement Administration, in collaboration with the Manatee County Sheriff’s Office, the Pasco Sheriff’s Office, the Polk County Sheriff’s Office, and the Hardee County Sheriff’s Office. It will be prosecuted by Assistant United States Attorneys Dan Baeza and Greg Nolan. 

This case is the result of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation. 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.

Tampa, FL - The U.S. Attorney’s Office for the Middle District of Florida (MDFL) and the Justice Department’s Civil Rights Division hosted a roundtable today for community organizations to discuss the problem of sexual harassment in housing, U.S. Attorney Maria Chapa Lopez announced. More than 50 community partners, including local law enforcement agencies, legal aid offices, fair housing organizations, domestic violence centers, housing authorities, and other housing providers from across the MDFL attended. Participants included organizations that often work with vulnerable populations who are most likely to become the victims of sexual harassment in housing.

The Department of Justice, through the various U.S. Attorneys’ Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. Sexual harassment in housing may appear in many forms, including allegations involving individuals who sexually expose themselves to current or prospective tenants, request sexual favors in exchange for reduced rents or making necessary repairs, make unrelenting and unwanted sexual advances to tenants, and evict tenants who resist their sexual overtures.

“Fair housing is a protected right,” said U.S. Attorney Chapa Lopez. “No one should ever have to surrender their dignity in exchange for a place to live. Sexual harassment, intimidation, and the abuse of power and position by landlords, property managers, or their employees should never be used as keys of extortion. Our office is committed to working with our community partners to expose such violations and prosecute them vigorously.”

In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment in Housing Initiative, an effort to combat sexual harassment in housing. On April 12, 2018, Attorney General Jeff Sessions announced the nationwide expansion of that initiative and the formation of a joint task force with the Department of Housing and Urban Development to address this issue. The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of the Justice Department's enforcement efforts among survivors and responsible agencies, and collaborate with federal, state, and local partners to increase reporting, and connect survivors with federal resources.

Through roundtable discussions like those held today, the U.S. Attorney’s Office is working closely with the Civil Rights Division to spread information to local communities about fair housing laws and resources available to victims of sexual harassment in housing. During the meetings, various entities exchange ideas on how to better detect, report, and enforce violations. In addition, various strategies are discussed on how to better share critical resources and strengthen interdisciplinary partnerships throughout central Florida.

Many instances of sexual harassment in housing continue to go unreported. Not only should victims of sexual harassment be aware of the Justice Department’s enforcement efforts, but a concerted effort must be made by the public at-large to encourage others to become involved and report acts of misconduct. In addition to the local authorities, victims should report violations to the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office. The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact them by calling 1-(844) 380-6178 or emailing [email protected].

In support of the Sexual Harassment in Housing Initiative, U.S. Attorney Chapa Lopez has produced Public Service Announcements (PSAs) specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment. (See below to download MDFL PSAs).

Individuals who believe that they may have been victims of a civil rights violation may also file a complaint with the U.S. Attorney's Office.

MDFL Civil Rights Unit

Phone: (813) 274-6095

Email: [email protected]

www.justice.gov/usao-mdfl/civil-rights

Orlando, FL – A federal indictment has been unsealed charging Geo Geovanni (49) and Elizabeth Longerbone (39), both of Moultrie, Georgia, with conspiracy to commit bank fraud and four counts of bank fraud. If convicted, each faces a maximum penalty of 30 years in federal prison for each count. 

According to the indictment, Geovanni and Longerbone devised and executed a mortgage fraud scheme involving “The Landing,” a condominium conversion of a former apartment complex located in Altamonte Springs. The scheme involved providing the cash-to-close funds on behalf of the buyers, guarantying tenants and rental payments to the buyers, as well as paying post-closing kickbacks of mortgage proceeds to buyers and co-conspirators through entities that Geovanni and Longerbone controlled. None of the incentives or kickbacks were disclosed to the financial institutions that had approved and funded the mortgage loans. 

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 Federal Housing Finance Agency – Office of Inspector General and the FBI. It will be prosecuted by Special Assistant United States Attorney Chris Poor.

Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Bobby Harper (23, Bradenton) to five years in federal prison for distributing more than 40 grams of fentanyl. Harper pleaded guilty on April 23, 2018.

According to court documents, on April 12, 2017, a Drug Enforcement Administration undercover agent (“UC”) and a confidential informant (“CI”) made a controlled purchase of narcotics from Harper. The CI called Harper and requested two ounces of heroin. Harper agreed to meet the CI at a location in Manatee County and sell him two ounces of heroin for $5,600. Once at the meeting location, Harper entered the UC’s vehicle and exchanged the package containing the drugs for the cash. A subsequent lab test revealed that the substance weighed 56.694 grams and was a mixture of heroin and fentanyl.

This case was investigated by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shauna S. Hale. This case is the result of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

Jacksonville, FL – Today, after a multiple-year investigation and the government’s intervention into a whistleblower suit in 2015, the United States announces a $1.2 million settlement with Liberty Ambulance. In reaching this settlement, the parties have resolved allegations that, from June 29, 2005, to January 2016, Liberty Ambulance knowingly up-coded claims for life support services from “Basic” to “Advanced” without justification, unnecessarily transported patients, and unnecessarily transported patients to their homes in an emergent fashion.

“The United States Attorney’s Office is committed to taking the steps necessary to protect Medicare, TRICARE, and other federal healthcare programs from fraud and abuse,” said U.S. Attorney Maria Chapa Lopez. “Whenever founded, our Office will vigorously pursue these cases and recover taxpayers’ money.”

“When health care providers participate in fraudulent billing schemes in order to increase profits, they steal from the pockets of the taxpayer and jeopardize federal healthcare programs,” said Shimon Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to be relentless in our efforts to hold such providers accountable.”  

“This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program,” said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees.”

Today’s settlement involved false claims submitted to Medicare, TRICARE, Medicaid, and the Federal Employees Health Benefits Program managed by the Office of Personnel Management. The claims resolved by this settlement are allegations only, and there has been no determination of liability. This case was initiated by the filing of a qui tam lawsuit filed by Shawn Pelletier, a former employee of Liberty Ambulance. Mr. Pelletier collected more than $1.2 million in proceeds from prior settlements, and will receive approximately $264,000 from the present settlement with Liberty.

The government’s action in this matter illustrates its 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).

This case was investigated by the Federal Bureau of Investigation, the Office of Personnel Management, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services - Office of Counsel to the Inspector General, the U.S. Department of Health and Human Services - Office of Inspector General, Office of Audit Services, the Florida Medicaid Fraud Control Unit, and the Defense Health Agency Program Integrity Office. It was handled by Assistant United States Attorney Shea Gibbons.

Jacksonville, Florida – Kenneth Brian Hanger (46, St. Augustine) has been arrested and charged by a federal criminal complaint with soliciting child pornography using the internet. In 1994, Hanger was convicted of aggravated indecent assault in Bradford County, Pennsylvania and is required to register as a sexual offender. Because of his prior sex offense conviction, he faces a mandatory minimum penalty of 25 years, and up to 50 years, in federal prison, and a potential life term of supervision. Hanger is currently being detained pending his detention hearing on July 6, 2018. 

According to the criminal complaint, on May 22, 2018, a detective with the St. Johns County Sheriff’s Office (SJSO) reviewed sexual offender registration information provided to the SJSO by Hanger, in which Hanger disclosed his use of a Facebook account that did not list his true name. Posing as a minor child, the detective sent a “friend request” to this account and Hanger accepted this request and made online contact with the “child.” Between May 24, 2018 and June 5, 2018, Hanger and the “child” engaged in online conversations on several occasions using a texting application. Hanger was advised and acknowledged that the “child” was only 13 years old. 

On June 1, 2018, Hanger raised the topic of sexual activity between himself and the “child” and suggested that he and the “child” meet to engage in sex. On June 4, 2018, Hanger and the “child” again discussed meeting for sex, and Hanger sent the “child” a photo of his penis. Later that same day, Hanger solicited the “child” to produce and send him a graphic video depicting “her” genitalia. Two days later, SJSO detectives arrested Hanger at his residence in St. Augustine. During an interview, Hanger admitted that he had engaged in online conversations with the 13 year old “child,” that he had sent “her” a photo of his own genitalia, and that he had stated his intentions to engage in sex.      

This case was investigated by the St. Johns County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. 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 Attorney’s 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Michael Gordon Watson (41, Melbourne) to 25 years in federal prison for possessing with the intent to distribute more than 1 kilogram of methamphetamine, more than 3 kilograms of marijuana, and a large quantity of MDMA. Watson also possessed two loaded firearms at the time of his arrest, which the court ordered him to forfeit. Watson pleaded guilty on March 13, 2018.

On September 25, 2017, an officer with the Palm Bay Police Department conducted a traffic stop on a vehicle being driven by Watson and confirmed that Watson had a suspended driver’s license. During an interview with the officer, Watson admitted that he had been previously arrested for drugs and trafficking in methamphetamine. A police canine unit was dispatched to the scene and alerted positively to the presence of drugs in Watson’s vehicle. During a subsequent search of the vehicle, officers located two loaded firearms, methamphetamine, marijuana, MMDA, and $13,180 in cash.  

This case was investigated by the U.S. Drug Enforcement Administration and the Palm Bay Police Department. It was prosecuted by Assistant United States Attorney Embry J. Kidd.

Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Donald McCloud Long (51, Jacksonville) to 18 months in federal prison for conspiracy to illegally distribute anabolic steroids. Judge Davis also sentenced Long’s steroid supply source, Gregory Allen Baker (30, Jacksonville), to 3 years in federal prison for the same offense and for money laundering. In addition, Long’s wife, Sarah Long (35, Jacksonville), was sentenced to a term of 42 months’ probation, which includes a 1-year term of home confinement.

The court also ordered Don and Sarah Long to forfeit $250,000, which are traceable as proceeds of the offense. Baker was ordered to forfeit a 2015 Land Rover Range Rover Sport, a 2008 Cadillac Escalade Luxury, a 2011 Yamaha Drive Electric Golf Cart, a 2013 Kia Soul Sport, a 2007 Yamaha Motorcycle, jewelry, and proceeds in the amount of $124,418. Baker also consented to the forfeiture $37,800 in additional proceeds.    

Don and Sarah Long both pleaded guilty on January 22, 2018. Baker pleaded guilty on February 14, 2017. Eight others have been convicted as part of the conspiracy.    

According to court documents, from January 2013 through September 27, 2016, Don and Sarah Long supplied many of their clients with anabolic steroids and human grown hormone (HGH) as part of their “Team Long” training regimen. The Longs provided instruction, dosage, and direction to Team Long athletes on how to consume steroids and HGH to prepare for bodybuilding competitions and other athletic endeavors.

Baker was the Longs’ primary source of supply for steroids and HGH and  imported raw anabolic steroids and HGH from China. Baker manufactured the steroids into consumable form, then branded the product “AxioLabs” and distributed it for the Longs and others. After the federal investigation became known, Baker rebranded his anabolic steroid and HGH as “Razors Edge.”

These cases were part of “Operation Total Package,” led by the Drug Enforcement Administration (DEA). It was a collaboration among the DEA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service, U.S. Customs and Border Patrol, the Jacksonville Sheriff’s Office, the Jacksonville Beach Police Department, the Green Cove Springs Police Department, the Internal Revenue Service – Criminal Investigation, and the U.S. Anti-Doping Agency. It was prosecuted by Assistant United States Attorney Kelly S. Karase.

Orlando, FL – United States Attorney Maria Chapa Lopez announces today that FWC Urogynecology, LLC, a network of urogynecology practitioners throughout Florida, has agreed to pay the United States $1,700,000.00 to resolve allegations that it violated the False Claims Act by knowingly billing the government for services that were inflated or that it did not provide.

The settlement relates to FWC Urogynecology’s use of Medicare billing codes with modifier 25.  A provider’s use of a modifier on healthcare claims can allow additional payment from government programs.  Here, FWC Urogynecology knowingly billed modifier 25 for services that were not billable or that it did not provide. 

According to the settlement agreement, from February 1, 2012, through January 12, 2017, FWC Urogynecology knowingly billed modifier 25 to receive additional payment from the United States.  For example, FWC Urogynecology’s physicians performed and billed for lavage treatments and pelvic floor therapies and then billed modifier 25 as if they provided another service, although no additional medical care was provided. 

“A primary mission of the United States Attorney’s Office is protecting Medicare, TRICARE, and other federal health care programs from fraud,” said U.S. Attorney Maria Chapa Lopez. “Our Civil Division works tirelessly in the pursuit of providers who bill for services they do not provide to patients.”

“I applaud the Department of Justice and the U.S. Attorney for their untiring efforts to hold health care providers accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The Department of Justice’s efforts safeguard the health care benefit for American service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”

“Misrepresenting alleged services to inflate costs is just plain and simple greed,” said Special Agent in Charge Shimon R. Richmond of HHS OIG.  “We will continue to thoroughly investigate health care companies that engage in schemes to defraud the American taxpayer.”

The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by a former employee of an FWC Urogynecology provider, Holly Loebl. Mrs. Loebl sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting a private citizen to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. Mrs. Loebl will receive $306,000 of the proceeds from the settlement with FWC Urogynecology.

This settlement resulted from an investigation coordinated by Assistant U.S. Attorney Jeremy R. Bloor, with assistance from the Defense Criminal Investigative Service, and the U.S. Department of Health and Human Services, Office of Inspector General.

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

The case is captioned United States ex rel. Holly Loebl v. Urogynecology Specialists of Florida, LLC and Florida Woman Care, LLC, Docket Number 6:16-cv-1722-Orl-37KRS. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Tyrone Devlin (30, Tampa) to nine years and eight months in federal prison for conspiracy, theft of government property, access device fraud, and aggravated identity theft, related to his involvement in a stolen identity refund fraud scheme. The court ordered that this sentence be served consecutive to the 10-year prison term Devlin is currently serving in Florida state prison for unrelated crimes.  The court also ordered Devlin to repay the IRS $435,499, which are the proceeds from the conspiracy. Devlin had pleaded guilty on March 26, 2018.

According to court documents, between May 2012 and June 2013, Devlin, Marquis Thornton, and others conspired to commit tax fraud and identity theft offenses. As part of the conspiracy, they obtained stolen identities, including Department of Veterans Affairs medical records, and used them to file fraudulent federal income tax returns. The fraudulent tax returns claimed refunds to which the conspirators knew they were not entitled. Devlin, Thornton, and their coconspirators obtained debit cards issued and/or registered in their own and other people’s names and directed that the debit cards be loaded with the fraudulently obtained tax refunds. They then used the debit cards to make ATM withdrawals and for other purchases and shared in the proceeds of the fraud. The conspirators filed more than 400 fraudulent tax returns claiming refunds that totaled more than $2.5 million and received more than $435,000 in proceeds.

Thornton previously pleaded guilty for his role in the scheme and was sentenced to six years and six months in federal prison.

“Identity thieves represent one of the greatest evils of our time. The damage they inflict on individuals and our economy cannot be overstated,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation. “Criminals should know we are paying attention. IRS Special Agents are uniquely qualified and distinctly engaged in spearheading the effort to bring those like Mr. Devlin to justice.  Devlin’s sentence buoys up the IRS mandate to protect the U.S. Treasury from would-be thieves, but, more importantly, this result we hope will provide some sense of relief to the victims.”

This case was investigated by the Internal Revenue Service Criminal Investigation, the Tampa Police Department, and the Department of Veterans Affairs Office of Inspector General. It was prosecuted by Assistant United States Attorneys Megan Kistler and Simon Gaugush.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found Jay Loren Goldberg (51, Treasure Island) guilty of two counts of selling a firearm or ammunition to a convicted felon. Goldberg faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for October 3, 2018. Goldberg was indicted on April 5, 2018.

According to evidence presented at trial, in January 2017, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) obtained information that convicted felons were obtaining firearms from a firearm dealer at Fast and Easy Pawn in St. Petersburg. During an undercover operation, ATF special agents utilized a confidential informant (CI) who was prohibited from possessing firearms due to felony convictions. Between February 23 and April 26, 2017, the CI, while monitored and supervised by ATF special agents, made several visits to Fast and Easy Pawn and met with Goldberg, the store’s proprietor and a Federal Firearms Licensee (FFL). On February 23, 2017, the CI told Goldberg that he/she was a convicted felon. On March 2, Goldberg sold a firearm to the CI through a straw purchaser. (A “straw purchaser” is a person who is not the actual buyer of the firearm; the straw purchaser buys a firearm for another person.) The straw purchaser, who had no criminal record and could pass the required background check, accompanied the CI to the store. The CI spoke with Goldberg and selected the pistol the CI wanted to buy, and the straw purchaser provided Goldberg with identification and filled out the form for the background check. The CI and Goldberg discussed a holster for the firearm, and the CI told Goldberg to include the holster in the firearm sale. When the CI attempted to hand cash to Goldberg to pay for the firearm and holster, Goldberg said that the money had to come from the straw purchaser. The CI then handed the money to the straw purchaser, who immediately handed it to Goldberg. After the required three-day waiting period, the CI returned to Fast and Easy Pawn on March 8. On that date, Goldberg sold the CI a box of ammunition and provided the CI with the firearm and holster.

Goldberg sold the CI a shotgun on March 9, and another shotgun on March 28. On April 26, Goldberg sold the CI another box of ammunition.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorneys Michael Sinacore and Thomas Palermo.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In 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 Antwan Williams (34, Bradenton) has pleaded guilty to two counts of brandishing a firearm during a robbery in connection with a series of armed robberies he committed in Manatee County. Williams faces a minimum mandatory penalty of 32 years, and up to life, in federal prison. Williams’s accomplice, Tronesh Sparkels Ackerman (24, Palmetto), has pleaded guilty to conspiracy to commit robbery and to aiding and abetting Williams in brandishing the firearm in connection with one of the robberies. Ackerman faces a minimum mandatory penalty of 7 years, and up to life, in federal prison.

According to their plea agreements, Williams and Ackerman robbed five businesses in Manatee County in August 2017. These businesses included four fast food restaurants and a convenience store. During each robbery, Williams entered the business, pointed a handgun at the employees and customers inside, and forced the employees to give him money from the business’s registers and safes. Ackerman acted as Williams’s getaway driver for each robbery.

Investigators identified Williams as a suspect based on a fingerprint obtained from the fifth robbery and then began surveillance of Williams and Ackerman. Within a few hours, as the officers watched, Williams and Ackerman attempted to rob another fast food restaurant, at which point the officers arrested them.

This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Manatee County Sheriff’s Office, and the Bradenton Police Department. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In 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, FL – U.S. Attorney Maria Chapa Lopez; Attorney General Jeff Sessions; Shimon R. Richmond, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General; A.D. Wright, Special Agent in Charge of the DEA Miami Division; John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service-Southeast Field Office; Eric W. Sporre, Special Agent in Charge of the FBI Tampa Division; and Social Security Acting Inspector General Gale Stallworth Stone announced today that 21 individuals were charged in the Middle District of Florida for their alleged participation in various fraud schemes involving, among other things, health care fraud, distributing and dispensing controlled substances not for a legitimate medical purpose and outside the usual course of professional practice, conspiracy to solicit and receive health care kickbacks, and theft of government funds.

These charges are part of the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.

The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE, and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, including medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.   

“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”

“As patients, individuals place great confidence in their healthcare providers to ensure that the treatment and care they receive is delivered at the highest level,” said U.S. Attorney Chapa Lopez. “As taxpayers, our citizens expect that the programs they fund are utilized as they are intended, in a safe and prudent manner, free from fraud and deception. We will continue to work with our partners to ensure that these expectations are met.”

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided.  In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system. 

“Health care fraud and opioid abuse are threats to this country, both in terms of the well-being of patients and the viability of government health care programs,” said Shimon R. Richmond, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General. “This takedown sends a clear message that criminals who engage in health care fraud schemes and illicit opioid distribution will be caught. Working collaboratively with our state and federal partners, we will continue to bring these criminals to justice.”

“DEA is committed to ending the opioid crisis that continues to plague Florida and endanger the welfare of our communities. We are equally committed to preventing prescription drug abuse which facilitates addiction and too often results in death,” said DEA Miami Field Division Deputy Special Agent in Charge Jaime Camacho. “The DEA Miami Field Division will continue to work with our law enforcement partners to protect our communities and ensure that medical professionals do not abuse their authority by over-prescribing unnecessary controlled medications.”

John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service-Southeast Field Office stated, "As part of the National Health Care Fraud multi-agency joint effort, the DCIS-Southeast Field Office contributed significant resources and efforts to achieve a successful operation to effectively combat widespread fraud and abuse, and preserve the integrity of TRICARE, a vital DoD program serving U.S. service members, retirees, and their families."

“The FBI Tampa Division is committed to working collaboratively with our federal, state and local partners to address the opioid crisis and health care fraud in our communities. The tireless efforts put forth by the investigators and attorneys in this investigation will have a significant impact and we will continue to work with a sense of urgency to identify others involved in similar schemes,” said Eric W. Sporre, Special Agent in Charge of the FBI Tampa Division.

“We often find that people who try to defraud Social Security are also taking advantage of other government benefit programs,” said Social Security Acting Inspector General Gale Stallworth Stone. “That’s why we maintain strong partnerships with other Federal, State, and local agencies, because our responsibility to taxpayers doesn’t end at Social Security. SSA OIG will continue to work closely with our law enforcement partners to detect and prevent benefit fraud across the country.”

The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in 10 locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.

This operation also highlights the great work being done by the Department of Justice’s Civil Division. In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2 billion in judgements and settlements related to matters alleging health care fraud.

 

Middle District of Florida Case Summaries

Tampa

Dr. Charles Gerardi has been charged with conspiracy, health care fraud, and obstruction of a federal audit. Gerardi is a licensed psychologist who was formerly associated with a group practice known as Geriatric Psychological Specialists (GPS).  According to court documents, GPS contracted with nursing homes and other long-term care facilities to provide psychological services to residents. For years, Gerardi impermissibly billed Medicare for providing medically unnecessary psychotherapy to Medicare beneficiaries who suffered from severe dementia and, at times, he billed for psychotherapy when he was actually performing medication management, a non-covered service when performed by a psychologist. First Coast initiated an audit of Gerardi’s practices in 2012. Gerardi tried to obstruct the audit by creating phony patient records and providing those records to the auditor. Finally, when First Coast placed Gerardi on prepayment review for the 20-minute billing code he had used for years, Gerardi changed his submitted billing code to reflect 45-minute sessions but continued to provide patients only 20-minute sessions. 

Dr. Zachary Bird was charged in a six-count indictment with distributing and dispensing controlled substances not for a legitimate medical purpose and outside the usual course of professional practice. Bird is an anesthesiologist that operated a pain management clinic called Physicians Wellness and Pain Specialists (PWPS) in Tampa. According to court documents, this clinic functioned as a “pill mill” where Bird prescribed large quantities of opiates to his patients. Specifically, from January 2015 to the end of May 2018, Bird prescribed approximately 5.2 million tablets of hydrocodone, methadone, morphine, and oxycodone at PWPS. Bird was arrested on June 25, 2018.

Dr. Jeffrey Abraham has pleaded guilty to a one-count information charging him with distribution of controlled substances not specified by his DEA registration. Abraham was previously employed at two local Veterans Affairs hospitals in the Tampa-area. As a VA physician, he was authorized by the DEA to write prescriptions for controlled substances only as part of official federal duties. According to the plea agreement, Abraham resigned from the VA to work at a pain management clinic in Tampa. His official federal duty registration was not transferable, and Abraham did not obtain a new DEA registration to write controlled substance prescriptions to the patients he saw while employed at the clinic. From August 2017 to March 2018, while at the clinic, Abraham wrote over 2,000 prescriptions for controlled substances, including more than 600 prescriptions for hydromorphone and over 1,000 prescriptions for oxycodone. On March 8, 2018, Abraham admitted to federal agents that he knew his official federal duty DEA registration number could not be used at the clinic, and agreed to surrender his DEA registration.

Alcira Mercedes Wells and her former husband, Edward Leonard Wells, Jr., have been charged with conspiracy, healthcare fraud, and aggravated identity theft.  According to the indictment, between May 2014 and February 2015, Centurion Compounding, Inc., a marketing firm that was located in Florida, employed representatives to market compounded medications for conditions like pain and scars to beneficiaries of health care benefit programs, especially TRICARE. Lifecare and Oldsmar Pharmacies billed the beneficiaries’ health care benefit plans for these creams, which ranged in price from approximately $900 to $21,000 for a one-month supply. Lifecare and Oldsmar, at various times, paid Centurion a portion, approximately 50%, of each claim paid by the health care benefit programs, minus expenses, for each prescription. Centurion, in turn, paid its marketing representatives a percentage of each paid claim, which ranged from 15-30% of the total claim amount after expenses. From September 2014 to February 2015, Alcira Wells was a Connecticut-based Centurion marketing representative married to Edward L. Wells, Jr., who was in the Army stationed at Ft. Bragg in North Carolina. Alcira Wells obtained from her mother-in-law, a nurse at a Navy hospital in Jacksonville, Florida, signed prescription forms prescribing Centurion-marketed compounded creams to Edward Wells and his brother. These prescriptions featured Alcira Wells’s Centurion rep number and the signature of a physician in Jacksonville. After receiving these signed prescription forms, Alcira Wells, with Edward Wells’s knowledge and consent, photocopied or otherwise duplicated them. The Wellses then submitted numerous fraudulent prescriptions for Centurion-marketed compounded medications for U.S. Army personnel stationed at Ft. Bragg and others living in Connecticut, which prescriptions the Jacksonville-based physician never wrote, authorized, or knew about. Edward Wells handed out Centurion prescription forms to personnel stationed with him in North Carolina, most of whom were subordinate in rank, and paid and offered to pay these TRICARE beneficiaries to obtain the compounded creams. After the soldiers filled out or provided their identifiers, Edward transmitted the beneficiaries’ information to Alcira Wells in Connecticut; she then transferred it onto forms with the doctor’s duplicated signature. Alcira Wells submitted these prescriptions first to Centurion and then to Lifecare or Oldsmar Pharmacy for filling, and all were billed to TRICARE. Centurion paid and promised to pay Alcira Wells and those working with her commissions for each filled prescription. The total claimed amount or intended loss was at least $1,246,787.00 and the total amount paid by TRICARE was $1,061,137.16. 

Dion Gregory Fisher and Samuel Blaine Huffman have been charged with conspiracy to possess with the intent to manufacture and distribute, and possession with the intent to distribute, counterfeit oxycodone pills made with fentanyl and a fentanyl analogue. Fisher is also charged with multiple counts of distributing the counterfeit oxycodone pills and engaging in money laundering-illegal monetary transactions using proceeds of the drug crimes. 

Phillip Morose has been charged with conspiracy to possess with the intent to distribute and to distribute counterfeit oxycodone pills made with fentanyl and a fentanyl analogue.

Christopher McKinney has agreed to plead guilty to conspiring with Fisher, Morose and others to manufacture and distribute counterfeit oxycodone pills made with fentanyl and a fentanyl analogue. According to the plea agreement, Fisher and McKinney manufactured and sold counterfeit oxycodone pills. Fisher supplied the fentanyl and pill processing materials, and pressed the powder fentanyl into counterfeit oxycodone pills with the help of Huffman.  McKinney sold the pills to Morose, using the U.S. Mail to exchange packages of pills and currency. His change of plea hearing is set for July 2, 2018.

Konrad Guzewicz has entered pleas of guilty to four counts of money laundering. According to the plea agreement, Guzewicz engaged in illegal monetary transactions involving proceeds of the drug crimes with which Fisher has been charged. Guzewicz admitted that Fisher recruited him to launder large sums of cash generated by the distribution of counterfeit oxycodone pills made with fentanyl and other controlled substances or analogues, and he personally participated in the laundering of at least $120,000 in drug proceeds for Fisher. 

Caridad Limberg-Gonzalez and Dr. Thomas Carpenter have been charged with one count of conspiracy to commit health care fraud and wire fraud, four counts of health care fraud and three counts of making false statements in connection with heath care matters. According to the indictment, Limberg-Gonzalez owned Foundational Health, a Tampa-area clinic, and Carpenter was the medical director there. Between May 2011 and October 2016, Limberg-Gonzalez caused Foundational Health to submit $1.8 million in claims to Part B of the Medicare program listing Carpenter as the rendering physician. In truth, the services were provided by nurse practitioners, physician’s assistants, and medical doctors who were not enrolled in the Medicare program, all without any supervision by Carpenter. In addition, Limberg-Gonzalez gave Carpenter plans of care and face-to-face encounter forms authorizing home health services to sign. Carpenter signed the documents, even though he never saw or cared for the patients identified in those documents.  According to the indictment, Accurate Home Health, a Tampa-area home health agency, relied on the documents that Carpenter signed to submit approximately $762,000 in claims to Part A of the Medicare program.

Roselle Fitzgerald has been charged with one count of theft of government funds, two counts of false statement to a federal agency, seven counts of counterfeit or forged securities, and three counts of fraudulent use of a means of identification. According to the indictment, Fitzgerald worked as a title closer at various law firms while simultaneously obtaining Social Security Disability Insurance and Medicare benefits to which she was not entitled. She also made material false statements to employees of the Social Security Administration regarding her work activity. In addition, Fitzgerald possessed counterfeit or forged checks from the law firms at which she was employed and used the means of identification of others in connection with the counterfeit or forged checks. The indictment also notifies Fitzgerald that the United States is seeking a money judgement in the amount of $192,091.20, the proceeds of theft of government funds and the counterfeit or forged securities.

Orlando

Erving Rodriguez was charged by information with one count of conspiracy to solicit and receive health care kickbacks. The charge stems from Rodriguez’s role as the owner of ER Pro Corp., a marketing company that purportedly provided marketing services to pharmacies. According to court documents, from approximately January 2015 through August 2015, Rodriguez was involved in a scheme whereby he was paid by Life Worth Living Pharmacy for sending prescriptions for expensive compounded creams to the pharmacy that were ultimately billed to TRICARE. Rodriguez received approximately $3,185,155.96 in kickback payments for prescriptions that were ultimately billed to TRICARE for approximately $7,625,263.38. 

Homer Zulaica was charged by information with conspiracy to offer and pay health care kickbacks stemming from his role as a sales representative for QMedRX, a compounding pharmacy. According to court documents, from approximately May 2013 through April 2014, Zulaica paid health care kickbacks to, among others, a physician and TRICARE beneficiaries in return for prescribing and receiving expensive compounded prescriptions that were billed to TRICARE. As a result of these kickbacks, TRICARE paid QMedRX approximately $1,271,198.68.

Dr. Christopher Devine was indicted on one count of conspiracy to commit health care fraud and wire fraud and two counts of health care fraud for his role in prescribing medically unnecessary compounded creams for TRICARE beneficiaries. According to the indictment, from approximately May 2013 through March 2015, Devine provided these prescriptions for medically unnecessary compounded drugs to a sales representative, Homer Zulaica, and in return received health care kickbacks. The compounded drugs were ultimately billed to TRICARE and resulted in a loss of approximately $1,640,363.98. 

Omar Zoobi, a pharmacist and co-owner of Metro Pharmacy (“Metro”) and Metro RX Pharmacy LLC (“Metro RX”), and Gregory Sikorski, a physician’s assistant, were indicted in a 10-count indictment charging each with one count of conspiracy to commit health care fraud and wire fraud, four counts of health care fraud, and one count of conspiracy to defraud the United States and pay and receive health care kickbacks. Zoobi was also charged with two counts of paying health care kickbacks and Sikorski was charged with two counts of receiving health care kickbacks. The charges stem from a scheme whereby Zoobi and another co-conspirator allegedly paid kickbacks to Sikorski in return for prescribing medically unnecessary compounded creams that were billed by Metro and Metro RX to Medicare. Metro and Metro RX also billed Medicare for prescription drugs that were not dispensed or were not dispensed as prescribed. As a result of these actions, from approximately January 2012 through February 2018, Medicare paid Metro and Metro RX approximately $5,511,963.53.

Ashraf Badr, a pharmacist and co-owner of Metro Pharmacy (“Metro”) and Metro RX Pharmacy LLC (“Metro RX”), was charged by information with one count of conspiracy to commit health care fraud stemming from his role in a scheme whereby Badr and a co-conspirator paid a physician’s assistant kickbacks in return for prescribing medically unnecessary compounded creams that were billed to Medicare. Metro and Metro RX also billed Medicare for prescription drugs that were not dispensed. As a result of these actions, from approximately January 2012 through February 2018, Medicare paid Metro and Metro RX approximately $1,812,499.64.

Andres Arteaga Perez has been charged with one count of theft of government property and one count of aggravated identity theft. According to court documents, Perez applied for and received Social Security Disability Insurance Benefits, Supplemental Security Income, and Medicare benefits under a stolen identity. He received $423,602.80 in Social Security and Medicare benefits to which he was not entitled.

Ft. Myers

Dr. Michael Frey has pleaded guilty to two counts of conspiracy to receive healthcare kickbacks. In addition to his guilty plea, Frey has agreed to a civil settlement under which he will pay $2.8 million to the United States to resolve allegations that he violated the False Claims Act in a number of ways, including receiving illegal kickbacks and by ordering medically unnecessary laboratory tests. During the relevant period, Frey was a practicing interventional pain management specialist and one of the two principal owners of Advanced Pain Management Specialists, P.A., which is located in Fort Myers. Beginning in 2010, Frey conspired with the owners of A&G Spinal Solutions, LLC, a durable medical equipment provider, to receive compensation in exchange for referrals to A&G Spinal. Frey was paid a percentage of A&G Spinal’s profits based on his referrals and referrals from other providers at Advanced Pain. A&G Spinal rewarded Frey through checks made payable to his wife, creating the impression that Mrs. Frey was an employee of A&G Spinal, when she was not. The two principals of A&G Spinal, Ryan Williamson and William Pierce, have pleaded guilty to conspiring to pay healthcare kickbacks to Frey and are currently awaiting sentencing. In addition, from 2013 to 2015, Frey also received cash payments from Ryan Williamson in exchange for referrals of compound pharmaceutical pain cream prescriptions. Williamson has also pleaded guilty for his role in this arrangement. In his plea agreement, Frey also admitted that he had received kickbacks in the form of speaker fees paid to him in connection with his participation in largely bogus Insys Therapeutics, Inc. speaker event programs. Insys manufactures a fentanyl sublingual spray known as SUBSYS. Insys paid kickbacks to Frey to induce him to write prescriptions for their product. The civil settlement also resolves allegations that, between 2013 and 2016, Frey caused the submission of false claims to Medicare and TRICARE by ordering definitive Urine Drug Testing (“UDT”) in circumstances where such testing was not reasonable and medically necessary. In addition, the civil settlement resolves kickback allegations associated with anesthesia services provided by Anesthesia Partners of SWFL, LLC that was owned by Frey and his partner Dr. Jonathan Daitch. Anesthesia Partners provided anesthesia services exclusively for the procedures performed by the Advanced Pain physicians. They contracted with Certified Registered Nurse Anesthetists (“CRNAs”) to provide the anesthesia services. These CRNAs were paid a contracted rate, and Anesthesia Partners would bill Medicare and TRICARE directly for the anesthesia services they provided. This arrangement resulted in improper reimbursements to Frey as one of the owners of Anesthesia Partners.

The Middle District of Florida cases are being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen, Rachel Jones, Greg Pizzo, Amanda Riedel, Daniel Baeza, Simon Eth, and Gregory Nolan, Trial Attorneys Alexander Kramer and Timothy Loper of the Criminal Division’s Fraud Section, and Special Assistant U.S. Attorney Suzanne Huyler.

A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Additional documents related to today's national announcement are available here: https://www.justice.gov/opa/documents-and-resources-june-28-2018.

Jacksonville, FL – U.S. District Judge Timothy J. Corrigan today sentenced Roderick Randolph Lester (39, Jacksonville) to eight years and four months in federal prison for robbery, possessing a firearm as a convicted felon, and for  violating his federal supervised release. The court also ordered Lester to forfeit the firearm and ammunition used in the offense.

Lester pleaded guilty on February 8, 2018.

According to court documents, on September 26, 2016, Lester went to a tire store in Jacksonville and asked the clerk for a used tire. Lester was quoted a price, and then told the clerk that he should not have to pay for the tire because of his business relationship with the owner of the store. The clerk informed Lester that he would need to contact the store’s owner to verify that information; Lester then cursed at the clerk and stated that he was taking the tire. Lester loaded the tire into his truck, at which point the clerk attempted to take the tire from him. Lester then pulled a pistol from a holster on his waist, pointed it at the clerk, and stated that he was taking the tire.

Officers with the Jacksonville Sheriff’s Office responded to the scene and apprehended Lester a few blocks from the tire store. A search of the scene revealed that Lester had discarded the pistol on top of a hedge nearby. The stolen tire was found in the back of Lester’s truck. During an interview with officers, Lester admitted that he had possessed the firearm and that he knew he was not allowed to carry firearms. 

At the time of these incidents, Lester was on federal supervised release for a 2010 federal firearms conviction. He also had previous convictions for manslaughter, burglary, and an additional firearms possession charge, and therefore was prohibited by federal law from possessing firearms.

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.

Tampa, Florida – U.S. District Judge James S. Moody has sentenced Lecardo Albury (32, Tampa) to 10 years and 8 months in federal prison for possessing a firearm as a convicted felon.

According to court documents, on July 13, 2017, Albury was pulled over for a traffic violation. A search of the vehicle revealed a .40 caliber pistol loaded with 10 rounds of ammunition, two plastic baggies with 114 grams of marijuana, a glass pipe, and a small scale. Albury has 13 prior felony convictions and therefore is prohibited from possessing a firearm or ammunition under federal law.

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.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Diego F. Novaes.

Tampa, FL – U.S. District Judge Steven Merryday has sentenced Francisco Moreno-Valencia (40, Colombia, South America) to 15 years and 6 months in federal prison for conspiring with others to distribute five kilograms or more of cocaine on vessels subject to the jurisdiction of the United States. Moreno-Valencia pleaded guilty on February 15, 2018.

According to court documents, Francisco Moreno-Valencia was the right hand of his brother, Luis Moreno-Valencia, who was the organizational head of his Colombian-based drug trafficking organization. Francisco Moreno-Valencia was responsible for storing the cocaine and dispatching the mariners for several maritime smuggling ventures in international waters of the Eastern Pacific Ocean. In November 2014 and December 2015, the United States Coast Guard interdicted over 800 kilograms of cocaine aboard vessels commonly referred to as “go fast boats.” Francisco Moreno-Valencia was involved in the transportation of cocaine from Choco, Colombia, to Panama.

Luis Moreno-Valencia was sentenced to 17 years and 6 months in federal prison on May 17, 2018.

This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorneys Thomas N. Palermo and Charlie Connally.

Fort Myers, Florida – U.S. District Judge Sherri Polster Chappell has sentenced Alejo Guerrero (36, Lehigh Acres) to 12 years in federal prison for multiple firearms and controlled substance offenses.   

According to court documents, federal and state authorities conducted multiple operations in 2016 and 2017 during which Guerrero sold cocaine and firearms, including an AK-47-type pistol with high capacity magazines, to an informant. Guerrero also armed himself during the transactions, once flashing a gun tucked into his waistband to explain why he wasn’t worried about bystanders witnessing a deal. In October 2017, law enforcement officers executed a search warrant on his Lehigh Acres home and found Guerrero, his girlfriend and an infant child, a stash of cocaine, thousands of dollars in cash, a bullet proof vest, and a .357 revolver inside the home. The Court ordered Guerrero to forfeit the cash to the United States as proceeds of his criminal activity.

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.

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

Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Derrick Burney (40, Jacksonville) to 57 months in federal prison for possessing a firearm as a convicted felon. Burney pleaded guilty on March 20, 2018.

According to court documents, on October 24 and 25, 2017, a confidential source acting at the direction of law enforcement made purchases of marijuana from Burney at a residence in Jacksonville. On October 27, 2017, as federal agents executed a search warrant at that residence, agents encountered Burney and others in the house. In the living room area, agents located a .38 revolver loaded with six bullets and a SKS Norinco rifle with a large capacity magazine that contained 30 bullets. Federal agents also located marijuana and drug paraphernalia used in the sale of narcotics, along with additional ammunition, throughout the residence. Additional investigation by law enforcement revealed that Burney was a multi-time convicted felon and therefore was prohibited under federal law from possessing a firearm or ammunition.

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.

This case was investigated by the Federal Bureau of Investigation Violent Crime Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives Jacksonville Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.

Joshua Ryne Goldberg, 23, of Orange Park, Florida, was sentenced to 10 years in federal prison, to be followed by a lifetime of supervised release, for attempted malicious damage and destruction by an explosive of a building.  Goldberg pleaded guilty on Dec. 20, 2017.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Maria Chapa Lopez for the Middle District of Florida, and Special Agent Charles P. Spencer FBI’s Jacksonville Field Office made the announcement after sentencing by U.S. District Judge Brian Davis.

According to the plea agreement, in the summer of 2015, the FBI and law enforcement officers from Australia began investigating the online name “AusWitness” and determined that it was Goldberg.  He had come to the attention of law enforcement due in part to his postings concerning the May 3, 2015, attack by two gunmen at the Muhammad Art Exhibit and Contest in Garland, Texas.  Prior to the attack, Goldberg posted a map of the location of the contest and urged anyone in the area to attack the event.  Goldberg’s posting was copied by gunman Elton Simpson, one of the two individuals killed during the May 3, 2015, attack.  The FBI later located an online posting in which Goldberg took responsibility for inspiring the Garland attack, as well as two other planned attacks.

In late July 2015, an FBI confidential human source (CHS) began exchanging messages with Goldberg as “AusWitness” on social media.  Between July and mid-August 2015, Goldberg discussed getting an individual in Melbourne, Australia to carry out a terrorist attack and to have the CHS commit a bombing in the United States.  During portions of those conversations, Goldberg sent the CHS five website links containing instructions for making an explosive device, including pipe bombs and other incendiary devices.  On Aug. 20, 2015, Goldberg stated that he was thinking of pipe bombs at a large public event and later said that a pressure cooker bomb may be better.  Later that month, Goldberg told the CHS that he had found the “perfect place” to target on Sept. 13, 2015, and sent the CHS a link to a Kansas City, Missouri firefighter’s event that memorialized first responders that had been killed in the September 11th attacks.  On Aug. 27, 2015, Goldberg instructed the CHS to place the bomb near the crowd at the memorial event and to ensure it was very well hidden.

The following day, Goldberg provided the CHS with a list of items to use in the pressure cooker bomb, including shards of metal, nails and broken glass.  He then instructed the CHS to dip screws and other shrapnel in rat poison before putting them in the pressure cooker bomb in order to inflict more casualties. Goldberg stated he would post a video of the bombing.  A forensic analysis of the bomb making information determined that it could have been used to make explosives that would cause property damage, personal injury and/or death. 

This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF) and the Clay County Sheriff’s Office.  Members of the Jacksonville JTTF include the FBI, the Naval Criminal Investigative Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, U.S. Border Patrol, the Florida Department of Law Enforcement, Florida Highway Patrol, the St. Johns County Sheriff’s Office, and the Jacksonville Sheriff’s Office.

This case was prosecuted by Assistant U.S. Attorney Kevin C. Frein of the Middle District of Florida, with assistance provided by Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.

Jacksonville, FL – Joshua Ryne Goldberg, 23, of Orange Park, Florida, was sentenced to 10 years in federal prison, to be followed by a lifetime of supervised release, for attempted malicious damage and destruction by an explosive of a building.  Goldberg pleaded guilty on Dec. 20, 2017.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Maria Chapa Lopez for the Middle District of Florida, and Special Agent Charles P. Spencer of the FBI’s Jacksonville Field Office made the announcement after sentencing by U.S. District Judge Brian Davis.

According to the plea agreement, in the summer of 2015, the FBI and law enforcement officers from Australia began investigating the online name “AusWitness” and determined that it was Goldberg.  He had come to the attention of law enforcement due in part to his postings concerning the May 3, 2015, attack by two gunmen at the Muhammad Art Exhibit and Contest in Garland, Texas.  Prior to the attack, Goldberg posted a map of the location of the contest and urged anyone in the area to attack the event.  Goldberg’s posting was copied by gunman Elton Simpson, one of the two individuals killed during the May 3, 2015, attack.  The FBI later located an online posting in which Goldberg took responsibility for inspiring the Garland attack, as well as two other planned attacks.

In late July 2015, an FBI confidential human source (CHS) began exchanging messages with Goldberg as “AusWitness” on social media.  Between July and mid-August 2015, Goldberg discussed getting an individual in Melbourne, Australia to carry out a terrorist attack and to have the CHS commit a bombing in the United States.  During portions of those conversations, Goldberg sent the CHS five website links containing instructions for making an explosive device, including pipe bombs and other incendiary devices.  On Aug. 20, 2015, Goldberg stated that he was thinking of pipe bombs at a large public event and later said that a pressure cooker bomb may be better.  Later that month, Goldberg told the CHS that he had found the “perfect place” to target on Sept. 13, 2015, and sent the CHS a link to a Kansas City, Missouri firefighter’s event that memorialized first responders that had been killed in the September 11th attacks.  On Aug. 27, 2015, Goldberg instructed the CHS to place the bomb near the crowd at the memorial event and to ensure it was very well hidden.

The following day, Goldberg provided the CHS with a list of items to use in the pressure cooker bomb, including shards of metal, nails and broken glass.  He then instructed the CHS to dip screws and other shrapnel in rat poison before putting them in the pressure cooker bomb in order to inflict more casualties. Goldberg stated he would post a video of the bombing.  A forensic analysis of the bomb making information determined that it could have been used to make explosives that would cause property damage, personal injury and/or death. 

This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF) and the Clay County Sheriff’s Office.  Members of the Jacksonville JTTF include the FBI, the Naval Criminal Investigative Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, U.S. Border Patrol, the Florida Department of Law Enforcement, Florida Highway Patrol, the St. Johns County Sheriff’s Office, and the Jacksonville Sheriff’s Office.

This case was prosecuted by Assistant U.S. Attorney Kevin C. Frein of the Middle District of Florida, with assistance provided by Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.

Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Gary W. Rochevot (72, Trinity) to five years’ probation, with the first six months to be served on home detention, for making a false statement in connection with his worker’s compensation benefits. As part of Rochevot’s sentence, the court also ordered him to pay $123,434.89 in restitution. He pleaded guilty on March 23, 2018.

According to court documents, Rochevot was placed on the United States Department of Labor, Office of Worker’s Compensation Program’s (“OWCP”) long-term periodic role in February 2005, due to a 2004 work-related injury at the Orlando International Airport. Thereafter, he received a tax-free payment from the OWCP of approximately $5,500 per month. As a benefit recipient, Rochevot was required to complete and submit an OWCP CA-Form 1032 annually. The Department of Labor uses this form to determine whether an individual is entitled to receive OWCP benefits and/or whether such benefits should be adjusted. The form includes a specific warning that a false or evasive answer to any question, or the omission of an answer, could be grounds for forfeiting the compensation benefits and could subject the individual to civil liability. The warning language also specifically notes that a fraudulent answer could, among other consequences, result in criminal prosecution.

In September 2016, Rochevot completed and submitted the annual CA-Form 1032, as required. In response to one of the form’s questions concerning volunteer work, he answered that he had not performed any volunteer work during the previous 15 months. That material answer was false because Rochevot had previously worked as a volunteer “cart driver/greeter” for a large hospital, where he had routinely worked one day per week, including during September 2016. In addition, federal agents observed Rochevot engaging in routine physical activity throughout 2016, including yardwork, automobile maintenance, house maintenance, and routine errands (some of which involved heavy lifting). In October 2016, shortly after submitting the false CA-Form 1032, Rochevot also provided false answers to direct questions concerning his health status during a telephone call with a federal agent.

This case was investigated by the Transportation Security Administration Investigations. It was prosecuted by Assistant United States Attorney Jay G. Trezevant.

Tampa, Florida – U.S. District Judge James S. Moody today sentenced Danni McNaughton (45, Tampa) to 10 years in federal prison for attempted enticement of a minor. The court also ordered him to forfeit a cellphone that he had used in committing the offense.   

According to court documents, between March 28, 2017, and October 11, 2017, McNaughton communicated online with an undercover officer, whom he believed to be a 13-year-old girl, and continually requested that the “child” send him pictures of herself. To induce such actions, McNaughton sent the “child” numerous images of his genitalia, as well as pictures of child erotica and a photo of child pornography. He also instructed the “child” on how to masturbate and discussed what types of sexual acts he would like to perform on her.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Diego F. Novaes.

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

Jacksonville, Florida – Jeremy Scott Clark (44, Ponte Vedra) today pleaded guilty to transporting images depicting child sexual abuse over the internet. He faces a minimum mandatory penalty of 5 years, and up to 20 years in federal prison, and a potential life term of supervision. A sentencing hearing has not yet been scheduled.  Clark has been detained since his arrest on March 8, 2018. He was employed as a teacher at First Coast High School in Jacksonville. 

According to court documents, on February 22, 2018, an individual 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. The user, later identified as Clark, began an online conversation with the undercover agent. After engaging in conversations 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 traced the internet protocol address to Clark’s Ponte Vedra residence.       

On March 8, 2018, law enforcement officers executed a search warrant at Clark’s home and seized his cellphone. 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.

This case was investigated by the FBI and the St. Johns County 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 – A federal jury today found John M. Gayden, Jr. (64, West Melbourne) guilty of seven counts of distributing oxycodone outside the course of professional practice and for no legitimate medical reason. He faces a maximum penalty of 20 years in federal prison on each count. His sentencing hearing is scheduled for September 7, 2018. Gayden was indicted on September 28, 2016.

According to evidence presented at trial, between 2009, and continuing through 2011, Gayden ran a cash-only pain management clinic in Indialantic, Florida. He charged $200-$400 per visit for appointments, during which patients received prescriptions for high dosages 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. Further, Gayden ignored clear signals from patients that they were seeking oxycodone to support their opioid addictions, as opposed to managing pain. Expert testimony indicated that Gayden prescribed hospice-level oxycodone dosages to young patients with relatively minor health issues.   

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 is being prosecuted by Assistant United States Attorney Vincent S. Chiu.

Fort Myers, Florida – Hollie Darlene Dustin (60, Punta Gorda) has pleaded guilty to wire fraud. She faces a maximum penalty of 20 years in federal prison. Her sentencing hearing is scheduled for September 17, 2018.

According to the

plea agreement , Dustin, a licensed real estate broker, owned Home Choice Real Estate (HCRE), a company that contracted with the Federal National Mortgage Association (Fannie Mae) to manage and perform preservation services on various Fannie Mae foreclosed properties and potentially list those properties for sale. As part of a Master Listing Agreement with Fannie Mae, Dustin’s company was prohibited from using any vendors that she controlled or with which she had a conflict of interest to perform preservation services on Fannie Mae properties. Dustin fraudulently used ProPreserve, a company that she controlled, to perform preservation services on the properties without Fannie Mae’s knowledge or consent. Dustin submitted approximately 550 fraudulent ProPreserve invoices to Fannie Mae requesting approximately $146,280.46, which Fannie Mae paid to HCRE. 

Dustin also created inflated ProPreserve invoices for work already performed by other vendors, then submitted those false invoices to Fannie Mae for payment.  Dustin used interstate wires to submit the fraudulent invoices to Fannie Mae.           

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

Tampa, Florida – Tyler C. McGovern (32, Pasco County) has pleaded guilty to one felony dogfighting count, in violation of the animal fighting provisions of the federal Animal Welfare Act. He faces a maximum sentence of five years in federal prison and a $250,000 fine. A sentencing date has not yet been set.

According to the

plea agreement

, McGovern participated with others in a dog fighting conspiracy. In 2015 and 2016, he and his co-conspirators, operating as Triangle Gang, sponsored pit bulls in dog fights in Duval, Sumter, and Marion counties. On March 1, 2017, law enforcement officers executed a search warrant in Sumter County at a property belonging to a Triangle Gang member and seized eight pit bulls, along with equipment and supplements used to condition the dogs for fighting. 

The federal Animal Welfare Act makes it a felony to knowingly sell, buy, possess, train, transport, deliver, or receive any animal, including dogs, for purposes of having the animal participate in an animal fighting venture. Under federal law, an animal fighting venture means “any event, in or affecting interstate or foreign commerce, that involves a fight conducted or to be conducted between at least two animals for purposes of sport, wagering, or entertainment.”

This case was investigated by the FBI, the Pasco Sheriff’s Office, and the Sumter County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.

Tampa, Florida – U.S. District Judge James S. Moody, Jr. today sentenced Brian Scott Ellis (50, New Port Richey) to 12 years in federal prison for possessing and attempting to produce child pornography. He pleaded guilty on February 28, 2018.

According to court documents, Ellis had amassed a collection of thousands of child pornography images and videos. He distributed child pornography as part of internet “send-to-get” groups, and attempted to film explicit videos of an unrelated child.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Frank Murray.

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 Timothy J. Corrigan has sentenced William Marion Patterson, III (49, Jacksonville) to seven years in federal prison for receiving child sexual abuse videos and images over the internet. 

According to court documents, in 2015, the Federal Bureau of Investigation and the Naval Criminal Investigative Service conducted an undercover online child exploitation investigation of an individual who was using a particular online file-sharing network. At that time, this user, later identified as Patterson, was the most prolific trader of child pornography in the state of Florida on this file-sharing network. On June 11, 2015, law enforcement officers executed a search warrant at Patterson’s home. During an interview, Patterson admitted, among other things, that he used this file-sharing network and that he was responsible for everything found on his computer. Subsequent forensic analyses revealed that Patterson’s computer media contained approximately 854 videos and 5,394 images depicting young children being sexually abused. 

This case was investigated by the Federal Bureau of Investigation, the Naval Criminal Investigative Service, the Columbia County Sheriff’s Office, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

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

 

The Justice Department announced today that Healogics, Inc. has agreed to pay up to $22.51 million to settle allegations that it violated the False Claims Act by knowingly causing wound care centers to bill Medicare for medically unnecessary and unreasonable hyperbaric oxygen (“HBO”) therapy.  Healogics, a Florida-based company, manages nearly 700 hospital-based wound care centers across the country.

“Medicare beneficiaries are entitled to care based on their clinical needs and not the financial goals of healthcare providers,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division.  “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions knowingly cause false claims for medically unnecessary services to be submitted.”

Medicare covers HBO therapy, a modality in which the entire body is exposed to oxygen under increased atmospheric pressure, as an adjunctive therapy to treat certain chronic wounds.  The settlement announced today resolves allegations that from 2010 through 2015, Healogics knowingly submitted or caused the submission of false claims to Medicare for medically unnecessary or unreasonable HBO therapy.

Under the settlement, Healogics has agreed to pay $17.5 million, plus an additional $5.01 million if certain financial contingencies occur within the next five years, for a total potential payment of up to $22.51 million. 

“Civil healthcare fraud enforcement has always been a core part of the mission of our office,” said United States Attorney Maria Chapa Lopez for the Middle District of Florida.  “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.” 

In addition to resolving its False Claims Act liability, Healogics has entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General which includes, among other things, a claims review and a systems review – both to be conducted by an Independent Review Organization.    

“When greed is the primary factor in performing medically unnecessary health care procedures on Medicare beneficiaries, both patient well-being and taxpayer funds are compromised,” said Special Agent in Charge Shimon R. Richmond of HHS OIG. “We will continue to thoroughly investigate health care companies that engage in such fraudulent schemes.”

The allegations resolved by this settlement arose from a lawsuit filed by James Wilcox, a former Director for Research and Quality for Medical Affairs at Healogics, and a separate lawsuit filed by Dr. Benjamin Van Raalte, Dr. Michael Cascio, and John Murtaugh, two doctors and a former program director who worked at Healogics-affiliated wound care centers.  The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery.  The settlement provides for a whistleblower share of up to $4,276,900.

The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Middle District of Florida, and the Department of Health and Human Services Office of Inspector General.  

The cases are captioned United States ex rel. Van Raalte, et al. v. Healogics, Inc., 14-cv-283 (M.D. Fla.) and United States ex rel. Wilcox. v. Healogics, Inc., et al., 15-cv-1510 (M.D. Fla.).  

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

Orlando, FL – The Justice Department announced today that Healogics, Inc. has agreed to pay up to $22.51 million to settle allegations that it violated the False Claims Act by knowingly causing wound care centers to bill Medicare for medically unnecessary and unreasonable hyperbaric oxygen (“HBO”) therapy. Healogics, a Florida-based company, manages nearly 700 hospital-based wound care centers across the country.

“Medicare beneficiaries are entitled to care based on their clinical needs and not the financial goals of healthcare providers,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions knowingly cause false claims for medically unnecessary services to be submitted.”

 Medicare covers HBO therapy, a modality in which the entire body is exposed to oxygen under increased atmospheric pressure, as an adjunctive therapy to treat certain chronic wounds.  The settlement announced today resolves allegations that from 2010 through 2015, Healogics knowingly submitted or caused the submission of false claims to Medicare for medically unnecessary or unreasonable HBO therapy.

Under the settlement, Healogics has agreed to pay $17.5 million, plus an additional $5.01 million if certain financial contingencies occur within the next five years, for a total potential payment of up to $22.51 million.

“Civil healthcare fraud enforcement has always been a core part of the mission of our office,” said United States Attorney Maria Chapa Lopez for the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”

In addition to resolving its False Claims Act liability, Healogics has entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General which includes, among other things, a claims review and a systems review – both to be conducted by an Independent Review Organization.    

“When greed is the primary factor in performing medically unnecessary health care procedures on Medicare beneficiaries, both patient well-being and taxpayer funds are compromised,” said Special Agent in Charge Shimon R. Richmond of HHS OIG. “We will continue to thoroughly investigate health care companies that engage in such fraudulent schemes.”

The allegations resolved by this settlement arose from a lawsuit filed by James Wilcox, a former Director for Research and Quality for Medical Affairs at Healogics, and a separate lawsuit filed by Dr. Benjamin Van Raalte, Dr. Michael Cascio, and John Murtaugh, two doctors and a former program director who worked at Healogics-affiliated wound care centers.  The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery.  The settlement provides for a whistleblower share of up to $4,276,900.

The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Middle District of Florida, and the Department of Health and Human Services Office of Inspector General.  The case was handled by Assistant United States Attorneys Randy Harwell and Jeremy Bloor, and by Department of Justice Civil Division Trial Attorney Chartey Quarcoo.

The cases are captioned United States ex rel. Van Raalte, et al. v. Healogics, Inc., 14-cv-283 (M.D. Fla.) and United States ex rel. Wilcox. v. Healogics, Inc., et al., 15-cv-1510 (M.D. Fla.). 

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