Middle District of Florida
Press releases recorded for this federal judicial district.
Former Pasco County Aircraft Mechanic Sentenced to 15 Years for Child Exploitation OffensesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Russel Lee Orr (42, Trinity) to 15 years in federal prison for attempted online enticement of a child to engage in sexual activity, attempted production of child pornography, and for soliciting for child pornography online. A federal jury found Orr found guilty on July 1, 2016. Prior to his arrest, Orr had worked as an aircraft mechanic in the Tampa area.
According to testimony and evidence introduced during the four-day trial, between March 10 and May 20, 2015, Orr engaged in a series of text messages and email conversations with an individual he believed to be a 14-year-old girl. The “child” was actually a detective with the St. Johns County Sheriff’s Office. During the course of the conversations, Orr discussed in detail his desire to meet the “child” for sex. He also repeatedly solicited the “child” to produce and send photos of her genitalia to him.
On May 21, 2015, FBI agents and other law enforcement officers executed a search warrant at Orr’s apartment and arrested him. During the search of the home, the agents located and seized a smart phone that Orr had used to communicate with the “child” and also to search the internet for materials related to the sexual exploitation of children.
This case was investigated by the St. Johns County Sheriff’s Office, the Volusia County Sheriff’s Office, the Pasco County Sheriff’s Office, and the FBI in Jacksonville and Tampa. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Illegal Alien Indicted for Reentering the United States and for Failing to Register as A Sex OffenderRead the Press Release
Orlando, Florida – A federal grand jury has returned an indictment charging Ramon Lopez-Alvarado (58), a citizen of Mexico, with illegally reentering the United States after deportation and failing to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA). If convicted, he faces a maximum penalty of 20 years in federal prison on the reentry count and up to 10 years in federal prison on the failure to register count.
According to the indictment, Lopez-Alvarado, an illegal alien, was previously convicted for committing a lewd act on a child and for failing to register as a sex offender. He was removed from the United States in 2013 and, on March 17, 2018, was found to be back in the United States without permission. Upon returning to the United States from Mexico, Lopez-Alvarado also failed to register as a sex offender and keep his registration current as required by SORNA.
An indictment is merely a formal charge that a defendant has violated one or more 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 Enforcement and Removal Operations and the U.S. Marshals Service. It will be prosecuted by Assistant United States Attorney Kara M. Wick.
Federal Jury Finds Orlando Woman Guilty of Investment FraudRead the Press Release
Orlando, Florida – A federal jury has found Viktoriya Johnson (36, Orlando) guilty of wire fraud and conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in federal prison on each count. Her sentencing hearing is set for August 18, 2018.
Johnson was indicted in May 2017, along with her co-defendant Leone Alfano La Cava (59, Orlando), who pleaded guilty to wire fraud on March 30, 2018.
According to evidence presented at trial, La Cava and Johnson orchestrated an international real estate investment scheme that defrauded at least 80 investors out of over $4 million. La Cava solicited individuals in Italy to purchase real estate in Orange County, Florida that he claimed would generate guaranteed rental income. Johnson and La Cava then used falsified deeds and loan documents to convince investors that they were purchasing property owned by La Cava or Golden Investment, Inc., a real estate investment company incorporated by Johnson in 2010. In reality, those properties either did not exist, were never owned by La Cava, Johnson, or Golden Investment, or had already been sold to another investor. Instead of using the funds to purchase the real estate promised to investors, La Cava and Johnson used portions of the money for their own personal use. Johnson received over $1.3 million in investor funds that she used to purchase four properties and two luxury vehicles for herself.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Nathan W. Hill and Chauncey A. Bratt.
Federal Jury Finds Jacksonville Man Guilty of Distributing Child Sex Abuse VideosRead the Press Release
Jacksonville, Florida – Following a five-day trial, a federal jury has found Jason James Neiheisel (28, Jacksonville) guilty of sharing child sex abuse videos and making them available for online for distribution. He faces a minimum mandatory penalty of 5 years, up to 40 years, in federal prison and a potential life term of supervised release. A sentencing date has not yet been set. FBI agents arrested Neiheisel on May 4, 2017.
According to evidence and testimony presented at trial, an FBI task force officer conducted an online investigation of individuals using the internet to trade child pornography. He identified a host computer that was offering child pornography for distribution using a file-sharing network and downloaded approximately 48 videos, several of which depicted young children being sexually abused. The host computer was later traced to Neiheisel’s home. On April 11, 2017, agents made contact with Neiheisel at his apartment, where he told them that he had downloaded child pornography for “a while,” and that he enjoyed the “thrill of the hunt” to see what kind of child pornography files he could find. A subsequent forensic examination of Neiheisel’s tablet revealed no child pornography but confirmed that Neiheisel had used the tablet to access the file-sharing network. Neiheisel admitted that he knew that he had made the child pornography videos available to others on the file-sharing network.
This case was investigated by the Columbia County Sheriff’s Office and the FBI. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tampa Man Pleads Guilty to Submitting False Claim for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Tampa, Florida – Gregory A. Douglas, Jr. (40, Tampa) has pleaded guilty to submitting a false claim. He faces a maximum penalty of five years in federal prison. His sentencing hearing has not yet been set.
According to the plea agreement, after Hurricane Irma hit Florida in September 2017, Douglas used a false address in Tampa to apply for $1,514 in disaster assistance from the Federal Emergency Management Agency (“FEMA”). Douglas did not reside at or own a home at that address at the time of the storm. Nevertheless, in his application to FEMA, he falsely represented it to be his primary residence. Douglas also falsely represented that he had been displaced and that he had incurred expenses for temporary housing and critical needs assistance.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. The case was investigated by the U.S. Department of Homeland Security – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. You may also visit www.justice.gov/usao-mdfl.
Justice Department Announces Nationwide Initiative to Combat Sexual Harassment in HousingRead the Press Release
Tampa, FL — Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.
“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”
“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”
“No one should ever have to choose between relinquishing their dignity and a place to live,” said U.S. Attorney Maria Chapa Lopez. “Sexual harassment, intimidation and quid pro quo practices by landlords, property managers, or their employees should never be used as the keys to residency. We will work with our partners to ensure that such illegal practices are investigated, enforced, and prosecuted to the fullest extent of the law.”
In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in Washington, D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters. The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.
The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.
Because of these promising results, the Department is rolling out three major components to the Initiative.
First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.
Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.
Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The campaign is 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).
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
Former Federal Correctional Officer Indicted for Making False StatementsRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Heather Lee Kussoff (31, Cape Coral) with making a false statement to a federal law enforcement agency. If convicted, she faces a maximum penalty of five years in federal prison.
According to the indictment and information presented in court, Kussoff worked as a correctional officer at the Coleman Federal Correctional Complex (FCC) in Sumter County. In 2014, she developed a personal relationship with an inmate at one of the penitentiaries. In direct violation of her job responsibilities and training, Kussoff corresponded with the inmate in a romantic capacity, shared extensive details of her personal life, and communicated directly with members of the inmate’s family. When confronted by federal authorities in March 2015, Kussoff lied under oath about the existence of the relationship and then abruptly resigned from the Bureau of Prisons.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Justice – Office of the Inspector General, the Federal Bureau of Prisons, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Owner of Jacksonville Tax Return Preparation Firm Convicted of Tax FraudRead the Press Release
Jacksonville, Florida – A federal jury today found Adrian George guilty of conspiring to commit wire fraud and aiding in the preparation and presentation of fraudulent tax returns to the IRS, as well as multiple counts of aiding in the preparation and presentation of fraudulent tax returns. He faces a maximum penalty of 15 years in federal prison. His sentencing hearing has not yet been set.
George was indicted on March 30, 2017.
According to testimony and evidence presented at trial, George owned and operated Professional Tax Service South, LLC, a tax return preparation firm in Jacksonville. He taught his employees various ways to include false information in tax returns to assure that his clients received large tax refunds. Acting at his direction, George’s employees offered to prepare fraudulent or “boosted” returns for clients in exchange for cash payments from the proceeds of the illegitimate tax refunds.
After being in business for less than two years, George and his employees had prepared and filed 748 tax returns for clients – all of which requested refunds. Typically only 62% percent of tax returns filed nationwide request refunds. The tax returns prepared and filed by George and his employees requested a total of approximately $3.2 million in refunds.
This case was investigated by IRS – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Bradenton Man Sentenced to 16 Years in Federal Prison for Producing and Possessing Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Paul Fabrizio Solis (40, Bradenton) to 16 years in federal prison for producing and possessing child pornography. He was also ordered to serve 25 years on supervised release, following his incarceration. Solis pleaded guilty on November 6, 2017.
According to court documents, Solis took explicit photographs of a young child who was in his care. He kept the images on a thumb drive hidden in a locked safe in his home. He also had more than 4,000 videos and images of child pornography stored on his laptop computer.
This case was investigated by the Federal Bureau of Investigation -Tampa Division, with support from the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Kristen A. Fiore.
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.
Prolific Marijuana Smuggler Sentenced to Six More Years in Prison for Attempting to Buy A Reduction in SentenceRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Joe Harry Pegg (70, Ft. Lauderdale) to six years in federal prison for conspiracy to obstruct justice, obstruction of justice, and lying to federal law enforcement officers. The court ordered him to serve this sentence consecutive to his current 30-year term of incarceration that is set to expire in 2020. Pegg was found guilty on August 17, 2017, following a jury trial.
According to court documents and evidence presented at trial, during the 1980s and 1990s in south Florida, Pegg was a significant drug trafficker who made millions of dollars by importing and distributing marijuana. In 1982, he was convicted in the Eastern District of Louisiana for conspiring to import and distribute nearly 650,000 pounds of marijuana. By the early 1990s, Pegg was the head of a marijuana shipping organization that used go-fast boats to transport large quantities of marijuana from the Caribbean to the Dry Tortugas, off the coast of Florida. In 1994, Pegg was arrested by federal agents after one of his vessels was intercepted off the coast of Fort Myers with approximately 10,000 pounds of marijuana onboard. He was subsequently convicted for a marijuana importation conspiracy and was sentenced in 1996 to 30 years in federal prison.
In 2008, while incarcerated at the Coleman Federal Correctional Complex, Pegg and his cellmate, Isidro Moreno, devised a scheme to defraud the United States by attempting to secure Pegg’s early release from prison using “third-party cooperation.” In some instances, an individual can stand in for a cooperating defendant and provide assistance to law enforcement and ultimately reduce the defendant’s original sentence. Pegg and Moreno knew, however, that third-party cooperators couldn’t be paid by anyone, including Pegg or anyone acting on his behalf.
After Moreno was released from prison, he enlisted Fernando Morales to act as a third-party cooperator on Pegg’s behalf, whereby Morales agreed to work with law enforcement to set up drug deals that would be credited to Pegg to try and reduce his sentence. Morales agreed to be the third-party cooperator, but he also wanted compensation for his efforts. Pegg, Moreno, and other conspirators agreed to pay Morales $60,000, and to conceal the payments from federal authorities.
After an arrest was made as a result of Morales’s cooperation, authorities learned that Pegg, through his family members, had made large cash payments to Moreno and Morales. Once Pegg learned that the government was investigating his conduct, he directed Moreno and others conspirators to lie to investigators and to conceal the payments from government officials.
In addition to Pegg, two former federal agents were convicted for their involvement in this scheme. Former DEA agent Samuel Murad, the case agent who originally investigated Pegg’s marijuana trafficking case, pleaded guilty to tax evasion and witness tampering and received a year in prison for failing to report hundreds of thousands of dollars received from the Pegg family, and for obstructing the FBI’s investigation. Former DEA agent Robert Quinn was sentenced to three years’ probation for lying to federal agents. Isidro Moreno and Fernando Morales were also convicted of conspiracy to obstruct justice and lying to federal authorities, respectively.
These cases were investigated by the Federal Bureau of Investigation and were prosecuted by Assistant United States Attorneys Simon A. Gaugush, Josephine W. Thomas, and Anita M. Cream.
Seminole County Man Sentenced to 17 Years for Possessing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Joseph Charles Desorbo, Jr. (58, Seminole County) to 17 years in federal prison for possessing child pornography. The court also ordered him to serve a life term of supervision, made a recommendation for a reevaluation prior to his release, and required him to register as a sex offender. In addition, he was ordered to forfeit the cellphone he had used to facilitate the offense.
Desorbo pleaded guilty on January 11, 2018.
According to court documents, on September 8, 2017, deputies from the Seminole County Sheriff’s Office arrived at Desorbo’s residence in response to a shooting incident. Desorbo was interviewed as a witness to the shooting and voluntarily provided written consent to search his cellphone as part of the investigation. During a forensic analysis of the phone, agents found 118 videos and 18 images of child pornography on the phone’s SD card. The videos included sadistic depictions of infants and young children being sexually assaulted by adult men. The phone also contained Desorbo’s communications with others regarding the rape of children. Desorbo admitted that he had used a social media application to obtain the child pornography and had participated in sex group chats about “little boys.” He also described himself as a sex addict.
The investigation further revealed that Desorbo was convicted in 1998 in St. Johns County, Florida for possessing child pornography and for using the internet to solicit a child for sex.
This case was investigated by the Seminole County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
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.
Orlando Men Sentenced to Federal Prison for Scheme Involving Impersonating Homeland Security AgentsRead the Press Release
Orlando, Florida –U.S. District Judge Carlos E. Mendoza has sentenced John Pierre Mack, III (26, Kissimmee) and David Augusta Jones, III (27, Orlando) to four years and nine years in federal prison, respectively, for conspiracy to commit wire fraud and wire fraud. They pleaded guilty in January 2018.
According to court documents, from at least August 2015 through July 6, 2017, the conspirators demanded money from victims by claiming to be agents with the Department of Homeland Security (DHS) and/or the Cyber Crimes Center (C3). Typically, the victims had responded to an online dating post and engaged in a conversation and exchange of photos with a female that they believed was an adult. The victims were later contacted by the schemers posing as “agents,” who alleged that the female from the dating post was under the age of 18. The “agent” would claim that they had an arrest warrant for charges of soliciting a minor and would then direct the victim to make payments for “fines” and “penalties,” in lieu of being arrested. To further their scheme, the “agents” sent paperwork to victims displaying the DHS seal, a judge’s name, and legal terms related to child exploitation. The schemers utilized email addresses containing variants of “child exploitation” and “cybercrimes center” in their correspondence. The victims were directed to retail locations to wire money to pay these “fines” or “fees,” and the conspirators then took turns picking up the payments. The defendants also traded victims with each other to continue the scheme and to get more money. The victims, many of whom were members of the military or elderly, sent multiple extortion payments, ranging from $200 to $1,900 per transaction, fearing they would otherwise be arrested.
Mack was a supervisor/manager in this scheme and received at least 61 extortion payments from victims totaling $79,847. Jones received at least 30 payments from victims totaling $66,684. Law enforcement agents estimate that the scheme generated more than $340,000 in profits.
Four others previously pleaded guilty for their roles in this scheme. Last month, Ronnie Rolland Montgomery (28, Orlando) was sentenced to 7 years in federal prison and Ashley Ferrell (26, Orlando) was sentenced to 10 months’ imprisonment. Dillon McDowell (26, Orlando) will be sentenced on April 26, 2018, and Amaryllis Pagan (20, Kissimmee) will be sentenced on May 29, 2018.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations – Office of Professional Responsibility and Homeland Security Investigations (San Diego), with assistance from the Naval Criminal Investigative Service (San Diego) and the Osceola County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorneys Christina R. Downes and Brandon Bayliss, on assignment from the Office of the Principal Legal Advisor, ICE.
Convicted Sex Offender Pleads Guilty to Distribution of Child PornographyRead the Press Release
Ocala, Florida – Michael Philip Auld (30, Ocala) today pleaded guilty to an indictment charging him with distribution of child pornography. Because Auld already has a 2008 federal conviction for possession of child pornography, he faces a minimum sentence of 15 years, up to 40 years, in prison.
According to the plea agreement, on October 23, 2016, Auld distributed images of child pornography over the internet using a cellular telephone. Acting on a tip from an internet service provider, law enforcement executed a search warrant at Auld’s Marion County residence on January 11, 2018. In Auld’s bedroom, investigators recovered two cellular telephones and a tablet computer. Auld had been using these electronic devices to receive, possess, and distribute hundreds of images of child pornography since at least 2016. In saved internet conversations on these same devices, Auld graphically described his sexual abuse of minor children, including an infant. At the time of the offense, he was serving a lifetime of supervised release for his prior child pornography conviction.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Winter Garden Man Pleads Guilty to Conspiring to Defraud Insurers in Staged Accident ScamRead the Press Release
Orlando, Florida – Jonathan Brown (33, Winter Garden) today pleaded guilty to conspiracy to commit mail 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, Brown and three others conspired to defraud insurance companies by submitting false claims following a staged car accident in Orange County, in May 2013. Brown, two co-conspirators, and the children of one of the conspirators were occupants in a car that was rear-ended by a vehicle being driven by a third co-conspirator in a pre-planned collision. After the collision, the conspirators, who had known each other for years, agreed to tell first responders that they did not know each other. They also agreed to seek emergency care for fictitious injuries purportedly sustained during the collision, and sought treatment from other medical providers for months following the collision. Brown and his co-conspirators then submitted fraudulent claims for medical expenses for unnecessary treatment, lost wages that had never incurred, attorney fees arising from threatened litigation, and compensatory damages for pain and suffering to their insurers, causing the insurers to pay out thousands of dollars based on those false claims.
This case was investigated by the Florida Department of Financial Services and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
Pharmacy Owner and Pharmacist Sentenced to 160 Months in Prison for $4.3 Million Pain and Scar Cream Kickback Scheme Against Military Insurance ProgramRead the Press Release
The owner of an Orlando, Florida-area pharmacy, who was also a licensed pharmacist, was sentenced today for his role in a kickback scheme involving pain and scar creams that resulted in the payment of approximately $4.3 million in false and fraudulent claims to TRICARE. TRICARE provides coverage for active duty military members and their families, as well as retired veterans.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Eric Sporre of the FBI’s Tampa Field Office and Resident Agent in Charge Brooke M. Harris of the U.S. Department of Defense Office of Inspector General (DOD-OIG) Defense Criminal Investigative Service made the announcement.
Larry B. Howard, 53, of Oviedo, Florida, was sentenced by U.S. District Judge Paul G. Byron for the Middle District of Florida to serve 160 months in prison and ordered to forfeit over $4.3 million as proceeds of the crime. Howard was also ordered to forfeit two properties, worth approximately $340,000, that he purchased with the proceeds of the crime, and two cashier’s checks worth $25,000 each. The judge also ordered Howard to pay $4.3 million in restitution to the federal military health insurance program.
Howard; Nicole R. Bramwell, M.D., 52, of Apopka, Florida; and Raymond L. Stone, 57, of Orlando, were convicted after a five-day trial of one count of conspiracy to pay health care kickbacks and paying and receiving kickbacks. Howard was also convicted of two counts of paying health care kickbacks, and Bramwell and Stone were convicted of one count each of receiving health care kickbacks. In addition, Howard was convicted of two counts of money laundering.
According to evidence presented at trial, Howard was the owner of Fertility Pharmacy, located in Oviedo. The evidence showed that Howard paid illegal health care kickbacks to Stone, who in return referred patients to doctors previously selected by Howard. The doctors then prescribed expensive pain and scar creams to the patients, which Howard then billed to TRICARE. The evidence also showed that Howard paid illegal health care kickbacks to Bramwell, who in return wrote prescriptions for the expensive creams. The creams could cost up to $17,000 per bottle. Between October 2014 and May 2015, TRICARE paid Fertility Pharmacy over $4.3 million procured through illegal kickbacks. Bramwell’s sentencing is scheduled for May 9. Stone is scheduled to be sentenced on April 27.
The case was investigated by the DOD-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. Senior Litigation Counsel John Michelich and Trial Attorneys Timothy Loper and Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case. Former Senior Trial Attorney Christopher Hunter previously prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Pharmacy Owner and Pharmacist Sentenced to 160 Months in Prison for $4.3 Million Pain and Scar Cream Kickback Scheme Against Military Insurance ProgramRead the Press Release
Orlando, FL – The owner of an Orlando-area pharmacy, who was also a licensed pharmacist, was sentenced today for his role in a kickback scheme involving pain and scar creams that resulted in the payment of approximately $4.3 million in false and fraudulent claims to TRICARE. TRICARE provides coverage for active duty military members and their families, as well as retired veterans.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez, Special Agent in Charge Eric Sporre of the FBI’s Tampa Field Office and Resident Agent in Charge Brooke M. Harris of the U.S. Department of Defense Office of Inspector General (DOD-OIG) Defense Criminal Investigative Service made the announcement.
Larry B. Howard, 53, of Oviedo, was sentenced by U.S. District Judge Paul G. Byron to serve 160 months in prison and ordered to forfeit over $4.3 million as proceeds of the crime. Howard was also ordered to forfeit two properties, worth approximately $340,000, that he purchased with the proceeds of the crime, and two cashier’s checks worth $25,000 each. The judge also ordered Howard to pay $4.3 million in restitution to the federal military health insurance program.
Howard; Nicole R. Bramwell, M.D., 52, of Apopka; and Raymond L. Stone, 57, of Orlando, were convicted after a five-day trial of one count of conspiracy to pay health care kickbacks and paying and receiving kickbacks. Howard was also convicted of two counts of paying health care kickbacks, and Bramwell and Stone were convicted of one count each of receiving health care kickbacks. In addition, Howard was convicted of two counts of money laundering.
According to evidence presented at trial, Howard was the owner of Fertility Pharmacy, located in Oviedo. The evidence showed that Howard paid illegal health care kickbacks to Stone, who in return referred patients to doctors previously selected by Howard. The doctors then prescribed expensive pain and scar creams to the patients, which Howard then billed to TRICARE. The evidence also showed that Howard paid illegal health care kickbacks to Bramwell, who in return wrote prescriptions for the expensive creams. The creams could cost up to $17,000 per bottle. Between October 2014 and May 2015, TRICARE paid Fertility Pharmacy over $4.3 million procured through illegal kickbacks. Bramwell’s sentencing is scheduled for May 9. Stone is scheduled to be sentenced on April 27.
The case was investigated by the DOD-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. Senior Litigation Counsel John Michelich and Trial Attorneys Timothy Loper and Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case. Former Senior Trial Attorney Christopher Hunter previously prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Pennsylvania Man Sentenced to More Than Four Years for Trafficking in Synthetic MarijuanaRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Thair Zatar (46, East Stroudsburg, Pennsylvania) to four years and three months in federal prison for possessing with the intent to distribute synthetic marijuana, also known as “K2” or “Spice.” He pleaded guilty on August 21, 2017.
According to court documents, in April 2017, Zatar was pulled over for a traffic stop in Baker County, Florida, while driving from Tampa to his home. During a consensual search of his vehicle, authorities discovered that he was transporting 201 kilograms of individual packets of synthetic marijuana, labeled as “potpourri” and “not for human consumption.” Zatar confessed that three weeks prior, he had made another trip from Tampa to Pennsylvania and had transported a smaller quantity of packets. A laboratory analysis revealed that the substance in the packets was a synthetic cannabinoid referred to as AB-FUBINACA, a Schedule I controlled substance.
This case was investigated by the Drug Enforcement Administration and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Atlantic Beach Drug Dealer Sentenced to More Than Three Years in PrisonRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Sunshine Marie McEwen (43, Atlantic Beach) to three years and five months in federal prison for failing to register as a sex offender.
According to court documents, on August 20, 1998, McEwen was convicted of sexual battery on a 12-year-old child in Jacksonville. After her release from state prison in September 2013, she resided in Atlantic Beach. On May 15, 2015, McEwen sold drugs to an individual in Atlantic Beach and later fled to California without updating her sex offender registration. She also failed to register in California as required by the Sex Offender Registration and Notification Act. On November 28, 2015, McEwen was arrested in Palm Springs and extradited to Florida to face her drug charges. On July 6, 2016, she was convicted for selling cocaine within 1,000 feet of a church and sentenced to 78 months in state prison.
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 U.S. Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the U.S. Marshals Service, the Jacksonville Sheriff’s Office, the Atlantic Beach Police Department, the Florida Department of Law Enforcement, and the Palm Springs Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tampa Man Sentenced for Gift Card Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Ravon Jackiel Forbes-Hodge (25, Tampa) to three years and six months in federal prison for credit card fraud and aggravated identity theft. The court also ordered him to pay $31,422 in restitution to victims of the fraud. Forbes-Hodge pleaded guilty on January 11, 2018.
According to court documents, Forbes-Hodge and others obtained stolen credit card account numbers and bank account information from various financial institutions. The conspirators purchased or stole reloadable gift cards and embossed them with their own names and the stolen account numbers. They then used the counterfeit cards at retailers throughout the Tampa Bay area to purchase merchandise that they later returned to different locations to receive store credit in the form of gift cards. The conspirators then sold the fraudulently obtained gift cards for cash.
Between February and June 2017, Forbes-Hodge used counterfeit credit cards and stolen account information to purchase thousands of dollars in merchandise from Home Depot stores. He then returned the merchandise to different Home Depot locations and obtained store credit in the form of Home Depot gift cards. Forbes-Hodge sold thousands of dollars in fraudulently obtained Home Depot gift cards in exchange for cash. He was responsible for at least 55 fraudulent purchases, using approximately 30 different counterfeit credit cards and stolen account information during this period.
This case was investigated by the United States Secret Service, the Hillsborough County Sheriff’s Office, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Owners of Pasco County Marketing Firm Indicted for Paying Healthcare Kickbacks and Money LaunderingRead the Press Release
Tampa, Florida – An indictment has been unsealed charging Frank V. Monte (38, Valrico) and Kimberley S. Anderson (50, New Port Richey) with one count of conspiracy, five counts of paying healthcare kickbacks, one count of conspiracy to commit money laundering, and three counts of illegal monetary transactions. Monte is also charged with two counts of making false statements. If convicted, each faces a maximum penalty of 5 years in federal prison for the conspiracy count, up to 5 years’ imprisonment for each count of paying a kickback, and up to 10 years in federal prison for each money laundering and monetary transaction charge. Monte faces up to 5 years’ imprisonment on each false statement charge. The indictment also notifies Monte and Anderson that the United States intends to forfeit cash, vehicles, and real estate, all of which are alleged to be traceable to proceeds of the offenses.
According to the indictment, in May 2014, Monte and Anderson, acting on behalf of their marketing company Centurion Compounding, Inc., entered into a marketing agreement with the owners of a Pinellas County-based pharmacy called Lifecare. Centurion employed sales representatives to market compounded medications, specifically creams for pain and scars, among others, to beneficiaries of healthcare plans, especially TRICARE. These creams typically ranged in price from $900 to $21,000 for a one-month supply. Between May and November 2014, Monte and Anderson directed the patients that Centurion sales representatives had recruited and the physicians in their network to send all of their compounded cream prescriptions to Centurion, which then transmitted them to Lifecare to fill.
During this same period, the owners of Lifecare, Carlos Mazariegos and Benjamin Nundy, entered into an agreement with the principals of Centurion to pay illegal kickbacks to Dr. Anthony Baldizzi, a Centurion in-network physician. Lifecare and Centurion agreed to pay Dr. Baldizzi 10 percent of each paid claim resulting from a prescription for compounded cream written for his patients and filled at Lifecare. These prescriptions were often billed to TRICARE.
Lifecare received approximately $5.3 million from TRICARE for claims made for prescriptions for compounded medications prescribed by Dr. Baldizzi as a result of this illegal kickback scheme. In December 2014, Mazariegos wrote a check for $71,900, funded with the proceeds from the scheme, to pay for a luxury car for Dr. Baldizzi in partial satisfaction of kickbacks owed to him by Lifecare and Centurion.
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.
Dr. Baldizzi previously pleaded guilty to conspiracy to commit healthcare fraud and receiving healthcare kickbacks. Mazariegos and Nundy previoulsy pleaded guilty to conspiracy to commit health care fraud. They are currently awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, the Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigations, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
District Court Orders Florida Company to Stop Distributing Adulterated and Misbranded DrugsRead the Press Release
A federal court permanently enjoined a Deltona, Florida, company from selling and distributing unapproved and misbranded new drugs, the Justice Department announced today.
In a complaint filed March 14 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that MyNicNaxs LLC, Chevonne Torres, and Michael Banner sold sexual-enhancement and weight-loss products in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). The complaint alleged that the defendants marketed products as drugs that could help treat or prevent a host of serious conditions or diseases. According to the complaint, the defendants made such claims without FDA approval and without proof of safety and efficacy.
The complaint further alleged that FDA tests showed some of the defendants’ products contained undisclosed pharmaceutical ingredients such as sildenafil, the active pharmaceutical ingredient in Viagra; sibutramine, the active pharmaceutical ingredient in a drug that was withdrawn from the market after clinical data indicated that it posed an increased risk of heart attack and stroke; and phenolphthalein, an ingredient that FDA deemed “not generally recognized as safe and effective” after studies indicated that it was a potential carcinogenic risk. The defendants agreed to be bound by a consent decree of permanent injunction filed in U.S. District Court for the Middle District of Florida.
“When a company fails to disclose pharmaceutical ingredients in its products, consumer safety can be put at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure dietary supplement distributors provide accurate information about what is in their products.”
According to the complaint, no credible scientific evidence supported claims the defendants made that their products cured, mitigated, treated, or prevented a number of serious diseases. In addition, the complaint alleged that the defendants’ products failed to include adequate directions for use, such as dosages, warnings, and side effects. The consent decree, as entered by the court, requires the defendants to implement specific remedial measures to comply with the law and obtain written approval from the FDA before distributing such drugs in the future.
“The presence of misbranded drugs represents a threat to the people of our district and the United States,” said U.S. Attorney Maria Chapa Lopez. “This lawsuit and today’s decree demonstrates our office’s ongoing efforts to safeguard the public from the effects of this type of unlawful conduct.”
This matter was handled by Trial Attorney Joshua D. Rothman of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Jeremy R. Bloor of the U.S. Attorney’s Office for the Middle District of Florida and Associate Chief Counsel for Enforcement Anna K. Thompson of the U.S. Department of Health and Human Services’ Office of General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Florida, visit its website at https://www.justice.gov/usao-mdfl.
District Court Orders Florida Company to Stop Distributing Adulterated and Misbranded DrugsRead the Press Release
Orlando, FL – A federal court permanently enjoined a Deltona company from selling and distributing unapproved and misbranded new drugs.
In a complaint filed March 14 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that MyNicNaxs LLC, Chevonne Torres, and Michael Banner sold sexual-enhancement and weight-loss products in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). The complaint alleged that the defendants marketed products as drugs that could help treat or prevent a host of serious conditions or diseases. According to the complaint, the defendants made such claims without FDA approval and without proof of safety and efficacy.
The complaint further alleged that FDA tests showed some of the defendants’ products contained undisclosed pharmaceutical ingredients such as sildenafil, the active pharmaceutical ingredient in Viagra; sibutramine, the active pharmaceutical ingredient in a drug that was withdrawn from the market after clinical data indicated that it posed an increased risk of heart attack and stroke; and phenolphthalein, an ingredient that FDA deemed “not generally recognized as safe and effective” after studies indicated that it was a potential carcinogenic risk. The defendants agreed to be bound by a consent decree of permanent injunction filed in U.S. District Court for the Middle District of Florida.
“When a company fails to disclose pharmaceutical ingredients in its products, consumer safety can be put at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure dietary supplement distributors provide accurate information about what is in their products.”
According to the complaint, no credible scientific evidence supported claims the defendants made that their products cured, mitigated, treated, or prevented a number of serious diseases. In addition, the complaint alleged that the defendants’ products failed to include adequate directions for use, such as dosages, warnings, and side effects. The consent decree, as entered by the court, requires the defendants to implement specific remedial measures to comply with the law and obtain written approval from the FDA before distributing such drugs in the future.
“The presence of misbranded drugs represents a threat to the people of our district and the United States,” said U.S. Attorney Maria Chapa Lopez. “This lawsuit and today’s decree demonstrates our office’s ongoing efforts to safeguard the public from the effects of this type of unlawful conduct.”
This matter was handled by Trial Attorney Joshua D. Rothman of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Jeremy R. Bloor of the U.S. Attorney’s Office for the Middle District of Florida and Associate Chief Counsel for Enforcement Anna K. Thompson of the U.S. Department of Health and Human Services’ Office of General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
Bradenton Bail Bondsman Sentenced to More Than Seven Years for Cashing Stolen and Fraudulent Treasury ChecksRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced James J. Jean-Rene (54, Riverview) to seven years and four months in federal prison for conspiracy, theft of government property, and identity theft. As part of his sentence, the court also entered a money judgment in the amount of $850,174.92, the proceeds of the charged criminal conduct. A federal jury found guilty him on October 3, 2017.
According to documents and testimony presented at trial, Jean-Rene deposited more than 100 United States Treasury checks for tax refunds or veterans’ pension benefits into bank accounts for his bail bonds company – A United Bail Bonds. He falsely claimed that the checks were payments for bail bonds. The victims in this case included veterans and elderly and disabled individuals. During the course of the conspiracy, Jean-Rene stole over $850,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Department of Veterans Affairs, Office of Inspector General. It was prosecuted by Assistant United States Attorneys Kristen A. Fiore and Cherie L. Krigsman.
Two Behavioral Health Clinic Operators Sentenced to Prison in Healthcare Fraud ConspiracyRead the Press Release
Jacksonville, FL – Shawn Thorpe (30) and Ruben McLain (46), both of Winston Salem, North Carolina, have been sentenced to prison for their participation in a conspiracy to commit healthcare fraud. Thorpe was sentenced to 2 years’ imprisonment and McLain was sentenced to 4 years and 9 months in federal prison. Thorpe and McLain were also ordered to pay $211,311.20 and $1,159,050.51, respectively, in restitution to their victims.
According to court documents, Thorpe and McLain worked together to create and manage Coastal Bay, a company that provided medical care to Medicaid patients. McLain had been excluded from billing federal healthcare programs based on his 2011 conviction for healthcare fraud. Thorpe never disclosed to the Medicaid program that he was working with an individual who had been excluded from participating in the program. In an effort to conceal his involvement, McLain used an alias – “Julian Winchester;” he performed a variety of functions, including hiring and firing individuals, seeing patients, and performing other managerial tasks using the alias. McLain routinely traveled to Jacksonville from his home in North Carolina to assist in Coastal Bay’s operations.
McLain and his family received significant financial benefits because of his involvement in Coastal Bay. He had access to a Coastal Bay credit card that he used to make routine purchases at restaurants, furniture stores, gas stations, and other places in North Carolina, even though Coastal Bay had no operations in North Carolina. In addition, he and his immediate family received more than $10,000 in direct payments from the Coastal Bay business account.
This matter was investigated by the U.S. Department of Health and Human Services - Office of Inspector General and the State of Florida Medicaid Fraud Control Unit. It was prosecuted by Assistant United States Attorney Jay Taylor.
Ocala Man Pleads Guilty to Conspiracy to Commit Wire Fraud and Executing A False Income Tax ReturnRead the Press Release
Jacksonville, Florida – Donald Edward Smith (65, Ocala) has pleaded guilty to conspiracy to commit wire fraud and to executing a false income tax return. He faces a maximum penalty of eight years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between September 2011 and September 2015, Smith and others conspired to engage in a scheme to defraud individuals who were interested in investing in green technology and other projects. Operating under his company, Legacy Investments of Brandon, Inc., Smith solicited funds from investors and promised lucrative returns, as well as access to hundreds of millions of dollars in financing. He was assisted by others that purported to offer services to the investors to obtain funding and/or loans for their projects. These funding opportunities and/or loans never materialized.
Smith knowingly failed to report as income the fraudulent proceeds he received from the victim-investors during 2012. For that tax year, he reported a negative income of $15,122 on his Form 1040, when he should have reported $560,924 as income. His failure to do so resulted in a tax loss of $163,726 to the United States. In his plea agreement, Smith agreed to pay approximately $1.45 million in restitution to the victims of the scheme. He also agreed to pay $1,937,127.95 in restitution to victims of a separate scheme involving investments in a purported Styrofoam recycling business, and to pay restitution to the Internal Revenue Service for the tax loss resulting from the false 2012 Form 1040. Additionally, he agreed to forfeit two parcels of real property, sales proceeds from the sale of a third parcel of real property, a number of vehicles, a backhoe, and $1.45 million.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the State of Florida’s Office of Financial Regulation –Bureau of Financial Investigations. It is being prosecuted by Assistant United States Attorneys Frank Talbot and Bonnie Glober.
United States Intervenes in Lawsuit Against Oviedo Company and Local Businessman Alleging Medicare FraudRead the Press Release
Orlando, Florida – The United States filed a civil lawsuit today against Central Medical Systems, LLC (CMS) and Alan Trent Harley alleging that they had falsely billed Medicare for wound care supplies during a six-year period. The complaint alleges that CMS and its owner, Harley, violated the federal False Claims Act by seeking and receiving inflated Medicare payments for more expensive products than had been provided to patients or for products that were never sent.
According to the government’s allegations, multiple former employees reported that Harley routinely changed quantities of items while billing and manipulated orders in CMS’s billing software. The government’s suit also alleges that CMS billed Medicare for thousands more products than it had purchased.
The lawsuit was filed under the qui tam provisions of the False Claims Act, which permits private parties to sue on behalf of the United States for false claims for government funds and to receive a share of any recovery. Jael Cancel, the office manager of CMS, filed the whistleblower lawsuit in 2014. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover treble damages plus civil penalties ranging from $5,500 to $11,000 for each false claim the defendants submitted.
The claims asserted against CMS and Harley are allegations only, and there has been no determination of liability.
This case was investigated by the Department of Justice and the U.S. Department of Health and Human Services – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jeremy Bloor.
Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Prolific Opioid Dealer Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Brandon Jerome Randolph (29, Bradenton) to 15 years in federal prison for conspiracy to distribute cocaine, cocaine base, heroin, methamphetamine, carfentanil, and fentanyl. He pleaded guilty on December 11, 2017.
According to court documents, Randolph and his associates sold drugs out of a house in Bradenton that operated as an open-air drug market. These drugs included cocaine, cocaine base, heroin, methamphetamine, carfentanil, and fentanyl. Randolph and his associates sold these drugs to undercover detectives on numerous occasions.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
Jacksonville Man on Federal Supervised Release Sentenced to 41 Years in Federal Prison for Aggravated Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Anthony Johnson (53, Jacksonville) to 41 years in federal prison for aggravated identity theft, bank fraud, false representation of a Social Security number, mail fraud, and for violating his federal supervised release. As part of his sentence, the court also ordered him to pay restitution to multiple victims he had defrauded. Johnson was arrested on July 11, 2016, for violating his federal supervised release and he was subsequently indicted on fraud charges on August 10, 2016. He has remained in federal custody since his arrest. On October 19, 2017, a federal jury found Johnson guilty of nine counts of aggravated identity theft, nine counts of bank fraud, seven counts of false representation of a Social Security number, and three counts of mail fraud.
According to evidence presented at trial, beginning in 2014, Johnson falsely claimed to be a former member of the U.S. Army and used the Social Security numbers of two victims, including a lawyer from Seattle, to open a bank account and to obtain a loan and multiple credit cards from USAA in the names of his victims. After obtaining multiple credit card convenience checks, Johnson withdrew thousands of dollars from the USAA bank account for his own use. After obtaining a genuine Florida driver license using the identity of a doctor from Texas, Johnson obtained two fraudulent loans totaling over $148,000 from Bankers Healthcare Group, LLC (BHG). Johnson had the money from BHG wired to a TD Bank business account in the name of a false medical data company he incorporated in Florida. Using the same identity, Johnson then obtained additional loans from Springleaf Financial Services and had the proceeds wired to the bank account he had set up for the false medical data company. Johnson then set up a personal bank account at TD Bank in the victim’s name and began funneling money from the business account to the personal account. Thereafter, Johnson began making large cash withdrawals to fund his purchase of luxury items including a $70,000 luxury car. During this time, Johnson used the identity of a fourth victim to obtain an apartment and then obtained another genuine Florida driver license using the identity of a fifth victim.
During the summer of 2016, using proceeds from his criminal activity, Johnson left the United States in violation of his federal supervised release imposed after a previous federal conviction for fraud and identity theft-related charges. While on this trip, he stayed at the Waldorf Astoria, purchased high-end personal items, and spent more than $4,000 while visiting a club/restaurant. On July 11, 2016, U.S. Immigration and Customs Enforcement, in coordination with the U.S. Marshals Service, arrested Johnson at the Orlando International Airport for violating the terms of his supervised release.
“The U.S. Secret Service is committed to investigating these types of fraud investigations with our federal, state, and local law enforcement partners due to the impact on the U.S. financial system and our local community,” said Neil Melofchik, Special Agent in Charge of the USSS Jacksonville Field Office.
This case was investigated by the Florida Highway Patrol – Bureau of Criminal Investigations and Intelligence, the Jacksonville Sheriff’s Office, the U.S. Marshals Service, U.S. Immigration and Customs Enforcement, and the United States Secret Service - Jacksonville Field Office. Assistant United States Attorney Kevin C. Frein and Beatriz Gonzalez prosecuted it.
Bradenton Man Sentenced to over 21 Years in Prison for Drug and Firearm OffensesRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced Kirby Gant (56, Bradenton) to 21 years and 8 months in federal prison for possessing with the intent to distribute crack cocaine and hydrocodone, and for possessing a firearm as a convicted felon and in furtherance of a drug trafficking crime.
Gant was found guilty after a bench trial on November 30, 2017.
According to court documents, at 3:40 a.m. on December 5, 2016, officers from the Bradenton Police Department were on foot patrol in the area of Bradenton Village Apartments when they saw a green SUV with a single occupant, later identified as Gant. As two officers approached the vehicle from opposite sides, one of the officers observed a gun. Gant then attempted to force his way past the officers and was arrested after a brief tussle. The officers recovered 9.6 grams of marijuana, 7.2 grams of hydrocodone, and $1,192 in cash from Gant’s person. A loaded 9mm handgun with an obliterated serial number and 7.5 grams of crack cocaine were found inside the SUV. At the time of his arrest, Gant had several prior felony convictions and is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
Tampa Man Sentenced for Conspiracy to Commit Theft of Government Property and Aggravated Identity TheftRead the Press Release
Tampa, FL – Chief U.S. District Judge Steven D. Merryday today sentenced Rico Simmons (42, Tampa) to seven years in federal prison for conspiracy to commit theft of government property, access device fraud, and aggravated identity theft. As part of his sentence, the court also ordered him to pay $156,100.12 in restitution to the Internal Revenue Service, and entered a separate money judgment against him in the same amount.
Simmons pleaded guilty on December 20, 2017.
According to court documents, beginning in August 2012, Simmons and his co-defendants, Natalie Panko (a/k/a Rene Brown) and Mazie Hill, conspired among themselves, and with others, to extract tax fraud proceeds from debit cards using Panko and Hill’s restaurant businesses – Ladies of the Sea and Mazie’s Soulfood. The conspirators used stolen identities to file false tax returns and activated debit cards and bank accounts that then received the fraudulently claimed tax refunds. Panko and Hill made the debit card charges appear as restaurant-related transactions. Simmons, Panko, and Hill then shared in the proceeds of the fraud.
Panko pleaded guilty earlier this year and is scheduled to be sentenced on April 11, 2018. Hill also pleaded guilty and was sentenced to two years in federal prison.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Megan Kistler and Simon Gaugush.
Former Live Oak Police Sergeant Sentenced to 120 Years in Federal Prison for Producing and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Kyle Adam Kirby (37, Live Oak) to 120 years in federal prison for producing, attempting to produce, possessing, and accessing images and videos depicting the sexual abuse of minors. Kirby was arrested on October 28, 2015, at the Live Oak Police Department and has remained in the custody of the U.S. Marshals Service since that date. A federal jury found him guilty on December 7, 2017.
According to testimony and evidence at trial, on October 22, 2015, FBI agents and other law enforcement officers executed a search warrant at Kirby’s residence as a result of an online child exploitation investigation. At that time, Kirby was a sergeant with the Live Oak Police Department (LOPD). That same morning, the LOPD chief authorized the agents to inspect and search the computer located inside Kirby’s patrol car. A forensic examination of this computer revealed that it contained images depicting young children engaged in sexually explicit conduct. Kirby had used the patrol car computer to search for, download, access, and possess child pornography from as early as December 24, 2014.
A subsequent search of an LOPD desktop computer used by Kirby revealed images depicting nude and partially undressed children in at least three different bathrooms. Kirby had used one or more concealed cameras to surreptitiously film the unsuspecting minors. He then transferred these images to the LOPD desktop computer, and later unsuccessfully attempted to delete them. Agents were able to locate folders on the computer named for several of his victims.
Chief Alton “Buddy” Williams from the Live Oak Police Department stated, “I have been in law enforcement for 30 years, and this has been the most difficult situation I have faced. A trusted friend, officer and protector of the public betrayed all facets of the job he swore to do. I realize that mistakes happen, but this was no mistake it was a choice, a choice that has impacted not only his agency, but his trusted friends, family, and community to include all brothers and sisters of the badge. I am appreciative of the FBI, the U.S Attorney’s Office and all others involved. Justice did prevail.”
“This case is another example of the relentless efforts of the FBI and our law enforcement partners to identify those who prey on our children,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “It is made even more egregious having been committed by someone who swore to uphold the law and protect the community. Let it be known that the FBI will stop at nothing to protect innocent victims, and seek justice for the heinous acts committed against them.”
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement, with the full cooperation of the Live Oak Police Department. 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.
Former Lakeland Man Charged with Storing Hazardous WasteRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Marian Walas (65, Lakeland) with storage of hazardous waste without a permit, in violation of the Resource Conservation Recovery Act (RCRA). If convicted, he faces a maximum penalty of five years in federal prison and a fine of up to $50,000 per day of the violation. Walas was arrested in Atlanta on February 14, 2018.
According to the indictment, Walas was the president and manager of Rincat LLC (now defunct), a business that recycled automotive catalytic converters to recover the precious metal catalysts, mostly consisting of platinum, palladium, and rhodium. This recycling process generated hazardous waste, including chloride, sulfuric acid, and various heavy metals. Between August and December 2010, Walas allegedly stored this hazardous, corrosive, and toxic waste at a warehouse in Lakeland for a period more than 90 days without a permit issued by the United States Environmental Protection Agency or the state of Florida, as required by the RCRA.
Specifically, between March and June 2010, Walas/Rincat hired a waste disposal company to remove eight loads (37,150 gallons) of hazardous waste from Rincat’s warehouse. On June 15, 2010, there were at least 21 containers of hazardous waste present. Walas/Rincat were evicted from the warehouse by the property owner on August 24, 2010. The following month, the Florida Department of Environmental Protection (FDEP) discovered approximately 38,550 gallons of hazardous waste left behind at the warehouse. Thereafter, the property owner worked with FDEP to properly dispose of the hazardous waste at a total cost of approximately $83,000.
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 Environmental Protection Agency and the Florida Department of Environmental Protection. It will be prosecuted by Assistant United States Attorneys Daniel George and Kelley Howard-Allen.
Armed Career Criminal Sentenced to over Fifteen Years for Possessing A Firearm and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Michael Moore (37, Sarasota) to 15 years and 8 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered him to forfeit the firearm and ammunition used in the offense.
A federal jury found Moore guilty on December 7, 2017.
According to evidence presented at trial, on May 28, 2017, Moore had an altercation with girlfriend during which he removed her loaded firearm from her car and hid it in a friend’s apartment. The girlfriend then notified police that Moore had stolen her firearm. Days later, after Moore and his girlfriend had reconciled, he retrieved her loaded firearm from the apartment and returned it to her. At the time, Moore had at least 10 prior felony convictions and is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorneys Kaitlin R. O’Donnell and Michael Baggé-Hernández.
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.
Riverview Man Sentenced for Conspiracy to Commit Theft of Government PropertyRead the Press Release
Tampa, FL – U.S. District Judge Virginia Hernandez Covington today sentenced Chris J. McDonald, Sr. (53, Riverview) to one year and one day in federal prison for his role in a conspiracy to commit theft of government property. As part of his sentence, the Court also ordered him to pay $117,952.35 in restitution to the Internal Revenue Service, and entered a separate money judgment against McDonald in the amount of $64,924.
McDonald was found guilty on December 14, 2017, following a four-day jury trial.
This case is related to the earlier federal prosecution of Jeanette Hevel, a former Tampa Police Department (TPD) corporal who stole 13 United States Treasury tax refund checks, money orders, and a refund anticipation loan from various locations inside TPD, including its secure evidence property room. Her unlawful conduct occurred over an approximately 9-month period, beginning in or around September 2011. In April 2015, Hevel pleaded guilty for her conduct pursuant to a plea agreement in which she agreed to cooperate in the government’s ongoing investigation of those responsible for cashing the stolen tax refund checks.
On December 9, 2015, a federal grand jury returned an indictment against McDonald and Joseph Lugo for their roles in the criminal conduct. According to court records, Hevel provided 9 of the 13 stolen tax refund checks to Lugo, who then delivered them to Robert Sanders and McDonald. McDonald deposited the checks into one of his bank accounts and then typically returned to the bank the next business day and withdrew the funds and shared them with the conspirators. None of the conspirators knew any of the payees listed on the tax refund checks, nor did they have permission from any of the payees to possess or deposit the checks.
Lugo pleaded guilty in June 2017. Sanders pleaded guilty in 2014 and testified for the government at trial.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Jay G. Trezevant and Frank Murray.
Lehigh Acres Man Pleads Guilty to Multiple Gun and Drug ChargesRead the Press Release
Fort Myers, Florida – Alejo Guerrero (36, Lehigh Acres) today pleaded guilty to 12 felony charges related to the armed trafficking of cocaine and his possession and sale of firearms. Guerrero, who has previously been convicted of robbery and burglary charges, faces a maximum penalty of life in federal prison.
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, to an informant. On October 13, 2017, agents executed a search warrant at Guerrero’s residence. Inside the home, they found Guerrero, along with his girlfriend and an infant child, a stash of cocaine, thousands of dollars in cash, a bulletproof vest, a .357 revolver, and an empty safe. The key for the safe was located next to the toilet.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.
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.
Fort Myers Couple Sentenced to Prison for Conspiring to Distribute over 17 Kilograms of CocaineRead the Press Release
Fort Myers, Florida – U.S. District Judge Sherri Polster Chappell has sentenced Jose Nunez (66) and Sila Nunez (62), both of Fort Myers, to 11 years and 7 years in federal prison, respectively, for conspiracy to distribute more than 17 kilograms of cocaine. The couple pleaded guilty in November 2017.
According to court documents, an undercover DEA agent purchased an ounce of cocaine from Jose Nunez on two occasions in late 2016 and early 2017. After the second transaction, his wife, Sila Nunez, told the agent that they could do bigger deals in the future, up to a “kilo” in weight. Further investigation revealed that Jose and Sila Nunez were large-scale drug traffickers with direct ties to a Mexican drug cartel. Between October 2016 and July 2017, the couple received four multi-kilogram shipments of cocaine from the cartel, via drug couriers, and returned hundreds of thousands of dollars in cash to the cartel. On July 26, 2017, agents searched the couple’s Fort Myers home and seized a stash of cocaine and more than $10,000 in drug proceeds.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Cartel Member Pleads Guilty to Conspiracy to Distribute More Than Eleven Pounds of Methamphetamine in Lee CountyRead the Press Release
Fort Myers, Florida – Juan Carlos Gonzalez (37, San Diego, California) today pleaded guilty to conspiracy to distribute more than 11 pounds of methamphetamine. He faces a minimum mandatory sentence of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to court documents, a DEA undercover agent (UC) made contact with Gonzalez after learning that he was associated with a drug trafficking organization operating out of Tijuana, Mexico. Gonzalez agreed to send a sample of his product, without payment, from California to the UC in Florida. The sample, which arrived in Fort Myers on April 17, 2017, was nearly two pounds of 99% pure methamphetamine. When Gonzalez and the UC discussed how much more product could be delivered in the future, Gonzalez said his supply was “unlimited.” In the following months, Gonzalez sent over nine more pounds of methamphetamine to the UC. DEA laboratory testing confirmed these later shipments were 100% pure methamphetamine.
On August 16, 2017, Gonzalez was arrested by federal agents at the San Ysidro port of entry coming from Mexico into California.
This case was investigated by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.
California Man Indicted on Mail and Wire Fraud Conspiracy Charges for Telemarketing SchemeRead the Press Release
Orlando, FL – A federal grand jury has returned an indictment charging Naif Wedad Nazer (39, Laguna Niguel, California) with conspiracy to commit mail and wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison. The indictment also notifies him that the United States is seeking a money judgment in the amount of $811,162.06, the proceeds of the charged criminal offense.
According to the indictment, between 2011 and 2015, Nazer founded and operated 10 different businesses, each of which engaged in cold-calling timeshare owners across the United States and fraudulently inducing them to pay advance fees for services that the businesses never intended to render. Nazer, and others that he had recruited for this scheme, made a series of false claims to victims, including that Nazer’s businesses would help the owner market his or her timeshare; that they had identified buyers to purchase the timeshare; that they would facilitate the sale of the timeshare; and that they would refund the advance fee within a prescribed time period if the timeshare sale did not go through.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Postal Inspection Service and the Florida Department of Agriculture and Consumer Services - Office of Agricultural Law Enforcement. It will be prosecuted by Assistant United States Attorney Emily C. L. Chang.
Bunnell Man Sentenced to More Than Eight Years in Federal Prison for Firearms and Drug OffensesRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Travis Demond Johnson (38, Bunnell) to eight years and nine months in federal prison for possessing a firearm as a convicted felon and for selling cocaine on two occasions. He pleaded guilty on November 9, 2017.
According to court documents, on June 9, 2017, Johnson sold crack cocaine and a firearm to a confidential informant (CI). A few weeks later, he again sold crack cocaine to the CI. During a traffic stop on August 2, 2017, Johnson was arrested by the Flagler County Sheriff’s Office for possessing crack cocaine. The following week, while on bond for his state charges related to the traffic stop, Johnson again sold crack cocaine to the CI. On August 18, 2017, Johnson sold crack cocaine and a second firearm to the CI; he also brandished a third firearm. On August 24, 2017, a search warrant executed at Johnson’s home revealed additional crack cocaine and a fourth firearm. Johnson was prohibited from possessing firearms – two of which had been reported stolen – due to his previous felony convictions for attempted second degree murder, shooting into an occupied vehicle, battery on a law enforcement officer, and possession of cocaine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Flagler County 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.
Bradenton Fentanyl Dealer Sentenced to over Five Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Shavon Montgomery (38, Bradenton) to 5 years and 10 months in federal prison for distributing crack cocaine and a substance containing fentanyl and heroin. She pleaded guilty on December 20, 2017.
According to court documents, on two occasions in March 2017, Montgomery sold crack cocaine to an undercover deputy from the Manatee County Sheriff’s Office. On April 26, 2017, and May 4, 2017, she sold substances containing fentanyl and heroin to an undercover officer from the Bradenton Police Department. During the second transaction, Montgomery agreed to sell more fentanyl to the officer later that day, and shortly thereafter arranged a time and location to conduct the sale. When Montgomery reversed course on her way to the agreed upon location for the second sale, an officer stopped the vehicle and searched Montgomery and her two passengers. One of the passengers possessed the fentanyl that Montgomery had arranged to sell to the undercover officer. In total, law enforcement recovered approximately 33 grams of fentanyl and heroin during this investigation.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the Bradenton Police Department, the Manatee County Sheriff’s Office, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Michael Sinacore.
Founder and CEO of Defunct Tampa Technology Company Sentenced to 80 Months in Prison for Investment FraudRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Timothy Munro Roberts (57, Missouri) to six years and eight months in federal prison for wire fraud. He was also ordered to pay $5,874,912.52 in restitution to the victims of the fraud. Roberts pleaded guilty on January 9, 2017.
According to court documents, in 2010, Roberts and his codefendant, Terrance Taylor, founded Savtira Corporation, Inc., a technology company headquartered in Ybor City. Savtira purported to offer a centralized, cloud-based shopping cart platform for online and traditional retailers. While marketing Savtira stock to investors, Roberts and Taylor made false claims and promises. In particular, they claimed that the company was profitable and owned patents, that they had entered into executed agreements with nationally recognized technology firms, and that Savtira was valued between $450 million and $540 million. Roberts and Taylor then misused and misappropriated investor funds for personal expenses and made cash withdrawals without the investors’ consent. They also failed to disclose key facts to investors, including that Roberts had entered into a prior settlement agreement with the Securities and Exchange Commission that required him to pay a fine and banned him from selling unregistered securities.
Taylor, Savtira’s CFO, pleaded guilty and was sentenced on December 17, 2017, to five years in federal prison.
This case was investigated by the Florida Office of Financial Regulation - Bureau of Financial Investigations and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Orlando Woman Sentenced to Nearly Twenty Years for Tax Refund Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Jeanine Jeanty (45, Orlando) to 19 years and 8 months in federal prison for conspiracy to steal tax refunds, theft of tax refunds, and aggravated identity theft. As part of her sentence, the court also entered a money judgment in the amount of $1,774,376, representing the proceeds of the charged criminal conduct.
A jury found Jeanty guilty on December 15, 2017.
According to court documents, Jeanty was the organizer and leader of a sophisticated criminal enterprise that stole federal tax refunds by filing false tax returns using stolen identity information. The organization also purchased fraudulently obtained U.S. Treasury tax refund checks from others for a fraction of their face value. In less than two years, Jeanty and her co-conspirators stole more than $2.7 million in tax refunds from the Department of the Treasury.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorney Karen L. Gable.
Orlando Man Arrested for Filing Fraudulent Immigration Petitions Resulting in over 300 Temporary Workers Entering the United StatesRead the Press Release
Orlando, Florida – Marvin Mushia Smith (39, Orlando) has been arrest and charged by criminal complaint with visa fraud and encouraging or inducing an alien to come to, enter, or reside in the United States. If convicted, he faces a maximum penalty of 10 years in federal prison on each count.
According to court documents, in April 2017, members of Orlando’s Homeland Security Investigation’s (HSI) Document and Benefit Fraud Task Force (DBFTF) identified numerous requests for foreign, temporary, non-agricultural workers’ “H-2B” visas linked to Smith, a naturalized U.S. citizen originally from Jamaica. Further investigation revealed that from at least December 2014 through March 15, 2018, Smith filed fraudulent labor certification packages and 11 fraudulent immigration petitions with the Department of Labor (DOL) and/or U.S. Citizenship and Immigration Services (USCIS), which resulted in the admission of over 300 non-immigrants from Jamaica.
The H-2B non-agricultural temporary worker program allows U.S. employers to bring foreign nationals to the United States to fill temporary, non-agricultural jobs. To qualify for H-2B nonimmigrant classification, a petitioner must establish that there are not enough U.S. workers who are able, willing, qualified, and available to do the temporary work, and that employing H-2B workers will not adversely affect the wages and working conditions of similarly employed U.S. workers. A statutory “cap” limits the number of H-2B visas granted during a fiscal year. Currently, Congress has set the H-2B cap at 66,000 per fiscal year, with 33,000 for workers who begin employment in the first half of the fiscal year (October 1 - March 31) and 33,000 for workers who begin employment in the second half of the fiscal year (April 1 - September 30).
In his fraudulent submissions to DOL and USCIS, Smith claimed to have labor contracts with various hotels, construction companies, and landscaping businesses for temporary work in the United States. In reality, many of his H-2B petition packages used fake temporary employment contracts to support the need for his foreign workers. USCIS approved the petitions, in large part, because of the fraudulent contracts supplied by Smith. Further, law enforcement officers interviewed several of the workers who had been admitted as part of Smith’s fraudulent packages, who stated that they worked at different job sites and performed duties other than the ones indicated on the petitions.
A criminal complaint is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was the culmination of the combined investigative efforts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of State – Diplomatic Security Service, the DOL–Office of the Inspector General, U.S. Customs and Border Protection, and USCIS - Fraud Detection and National Security. These agencies comprise HSI’s Document and Benefit Fraud Task Force, which was created to combat visa fraud and other similar crimes. This case is being prosecuted by Special Assistant U.S. Attorneys Brandon M. Bayliss and Christina R. Downes, who are on assignment from the Office of the Principal Legal Advisor, ICE.
Silver Springs Woman Sentenced to Nearly Five YearsRead the Press Release
Ocala, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Elma Denise Sizelove (40, Silver Springs) to 57 months in federal prison for bank fraud and aggravated identity theft. She pleaded guilty to the offenses on December 18, 2017.
According to court documents, Sizelove was arrested by law enforcement after attempting to pass a fraudulently altered check at a local bank. A subsequent search of her vehicle uncovered 150 letters and 47 additional checks that had been stolen from local residents. The stolen checks had a total face value of $68,208.41. Further investigation revealed that Sizelove had fraudulently altered and deposited other checks that she had stolen from residential and commercial mailboxes into her bank account using mobile and ATM deposits.
This case was investigated by the U.S. Postal Service. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Honduran Citizen Indicted for Conspiracy to Defraud the Internal Revenue Service of Payroll TaxesRead the Press Release
Jacksonville, Florida – A federal grand jury has returned a superseding indictment charging Oscar Arnelson Rodriguez-Cruz (40, Honduras) with conspiracy to defraud the Internal Revenue Service (IRS) of federal payroll taxes, specifically the Federal Insurance Contributions Act (FICA), Social Security, and Medicare taxes. He faces up to five years in federal prison. Rodriguz-Cruz was previously charged on January 31, 2018, with multiple counts of wire fraud. Rodriguez-Cruz is a Honduran citizen who is illegally present in the United States.
The indictment alleges that Rodriguez-Cruz facilitated employment in the construction industry of individuals living and working illegally in the United States. Construction contractors and subcontractors entered into an agreement with a shell company established by Rodriguez-Cruz to provide workers, most of whom were illegal aliens, for the contractors and subcontractors. By obtaining and paying the workers through the shell company, the contractors and subcontractors could disclaim responsibility for ensuring that required payroll taxes were paid.
The contractors and subcontractors wrote payroll checks to the shell company for work performed by the workers. Rodriguez-Cruz cashed the checks and distributed cash to construction crew leaders, who then paid the workers in cash. During the period of the scheme, Rodriguez-Cruz allegedly cashed payroll checks totaling $15,670,438. Neither Rodriguez-Cruz nor the contractors and subcontractors remitted payroll taxes to the IRS. According to the IRS, the estimated total amount of payroll taxes due on the total wages is approximately $3,964,621.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Jacksonville Pimp Sentenced to Ten Years in Prison on Firearms and Drug ChargesRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Christopher Loran Bentley (31, Jacksonville) to 10 years in federal prison, followed by 5 years of supervised release, for possessing a pistol after having been convicted of a felony, and for possessing with intent to distribute crack cocaine and heroin. He pleaded guilty to the offenses on October 19, 2017.
According to court documents, Bentley possessed a stolen firearm outside a house in Jacksonville in April 2017. He was encountered by Jacksonville Sheriff’s Office patrol officers responding to investigate activities at the house. The officers observed Bentley sitting in his parked truck with a bag of marijuana in plain view. The officers ordered Bentley out of the truck, but he resisted and tried to escape. While removing Bentley from the truck, a bag of drugs, including powder cocaine, crack cocaine, and heroin fell from his lap, onto the ground. The firearm was sitting in the driver’s seat, where Bentley had been sitting. Bentley had been previously convicted of selling cocaine.
At sentencing, multiple witnesses’ testimony established that Bentley had been involved in pimping women in the Philips Highway area of Jacksonville for several years. Bentley controlled his sex trafficking victims through violence, threats of violence, coercion, and mental and emotional manipulation. On one occasion, Bentley threatened to bash one of his victims’ teeth in using a gun, broke his hand punching the victim in the head, then forced his victim to pull down her pants so that he could beat her with a pipe. Testimony also established that Bentley had used his victims’ drug addictions to coerce them into prostitution. One of Bentley’s victims died of an overdose in 2016, after obtaining fentanyl and cocaine from him. On another occasion, Bentley fired his gun at another individual who had been trying to collect a debt from one of the women prostituted by Bentley.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement, with assistance from the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jacksonville Man Indicted for Aggravated Sexual Abuse by Force on A Cruise ShipRead the Press Release
Jacksonville, FL – A federal grand jury has returned an indictment charging Brian Holland (23, Jacksonville) with aggravated sexual abuse by force. If convicted, he faces a maximum penalty of life imprisonment in federal prison, and a potential lifetime of supervision.
According to the indictment and court records, Holland is charged with sexually abusing a passenger-victim on February 27, 2018, while aboard a Carnival cruise ship based out of Jacksonville.
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 Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ashley Washington and Jay Taylor.
Sarasota Felon Convicted of Firearms ChargeRead the Press Release
Tampa, Florida – A federal jury today found Oliver A. Santana-Garcia (33, Sarasota) guilty of being a felon in possession of a firearm. He faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for June 8, 2018. Santana-Garcia was indicted on August 30, 2016.
According to testimony presented at trial, on March 7, 2016, law enforcement officers conducted a traffic stop of Santana-Garcia and arrested him on an outstanding charge of violation of probation. During a search of the vehicle, law enforcement discovered a loaded firearm semi-automatic pistol wedged between the driver’s seat and the center console. A subsequent search warrant of Santana-Garcia’s cell phone revealed that 12 days prior to his arrest, he had taken a video of himself with the same firearm.
This case was investigated by the Federal Bureau of Investigation and the Sarasota County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Carlton C. Gammons and Gregory T. Nolan.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Florida Man Found Guilty of Assaulting A Mail CarrierRead the Press Release
Orlando, FL – A federal jury today found Francisco Javier Barbot Cabassa (28, Kissimmee) guilty of forcibly assaulting a mail carrier while the carrier was engaged in the performance of his official duties, resulting in physical contact with the mail carrier.
According to testimony and evidence presented at trial, Barbot Cabassa approached the mail carrier, while he was distributing mail, and demanded that the carrier give him a package. The mail carrier requested that Barbot Cabassa provide identification, but Barbot Cabassa refused. As a result, the carrier informed Barbot Cabassa that he would need to go to the post office and provide identification in order to obtain the package. Barbot Cabassa then punched the mail carrier in the face and ultimately took the package.
This case was investigated by the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Alejandro J. Salicrup and Vincent S. Chiu.
Lee County Couple Pleads Guilty to Firearms ChargesRead the Press Release
Fort Myers, Florida – Herman Fleming (26, Lehigh Acres) and Sondre’jah Wilbon (24, Fort Myers) today pleaded guilty to federal firearms charges arising out of a straw purchasing incident. Both individuals face a maximum penalty of five years in federal prison. Sentencing dates have not yet been set.
According to court documents, Fleming and Wilbon traveled to a gun show at the Lee County Civic Center on April 2, 2017. Fleming, who was then facing state felony charges, was prohibited from receiving a firearm under federal law. An undercover Bureau of Alcohol, Tobacco, Firearms and Explosives agent standing next to the couple at a display booth observed Fleming handling various firearms and heard him tell Wilbon which three guns (an assault-style rifle and two pistols) he wanted to buy. Fleming then provided Wilbon with cash and left the area to avoid raising suspicion.
In the paperwork required to make the purchase, Wilbon lied and claimed she was the intended recipient of the firearms. The two were arrested while leaving the gun show. Law enforcement found the rifle in the trunk of Fleming’s car and the receipts for the guns in his pocket. The two pistols were subject to a three-day waiting period by law and never left the possession of the firearms dealer.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.
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.