Middle District of Florida

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Dennis Lee Henning (42, Jacksonville) today pleaded guilty to international parental kidnapping. He faces a maximum penalty of three years in federal prison. A sentencing date has not yet been set.

According to court documents, as a result of divorce proceedings that concluded on May 25, 2017, Henning was ordered to share custody of a child with his ex-wife, the child’s mother, who was named as the majority timeshare parent.  Before that divorce was final, however, Henning made Facebook posts that were critical of his ex-wife, the court system, and the United States – expressing his willingness to give up his citizenship and leave the country with his child. He also confided in a friend that, to avoid losing custody, he might run away with the child to Costa Rica or Canada. 

On May 31, 2017, without telling the child’s mother, Henning drove to Mexico with his child. Unable to locate Henning or her son, Henning’s ex-wife repeatedly called and sent him text messages, which he ignored. After Mexican authorities arrested Henning on unrelated firearms charges, his ex-wife was able to travel to Mexico, recover her child, and return to Jacksonville.

This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sherriff’s Office, and U.S. Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.

Jacksonville, Florida – U.S. Attorney Maria Chapa Lopez announced today that Craig Harry Lipinski (49, Jacksonville) has been arrested and charged by criminal complaint with transporting and possessing child pornography. He faces a minimum mandatory penalty of 5 years, up to 30 years, in federal prison and a potential lifetime of supervision. 

According to the complaint, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted an undercover child exploitation investigation and determined that a host computer connected to Lipinski’s residence was sharing videos of child pornography using an online file-sharing program. On January 30, 2018, HSI agents and other law enforcement officers executed a search warrant at Lipinski’s residence and made contact with him. At that time, agents observed that a computer at the home was actively downloading files using the same file sharing program, including some with the terms “teen” and “young” in their titles. During an interview, Lipinski stated that he lived alone, that he had downloaded movies from the file sharing program, and that he had “probably downloaded some miscellaneous, some inappropriate stuff.” An onsite forensic examination of Lipinski’s computer revealed at least 10 files depicting child pornography, including two copies of one of the videos that had been shared on October 17, 2017, and that depicted a young child being sexually abused.

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

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

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

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Oscar Arnelson Rodriguez-Cruz (40, Orlando) with multiple counts of wire fraud. He faces a maximum penalty of 20 years in federal prison on each count. Rodriguez-Cruz is a Honduran citizen who is illegally present in the United States.

The indictment also notifies Rodriguez-Cruz that the United States intends to seek forfeiture of approximately $626,817, the amount of proceeds obtained as a result of the offenses, and of $105,461 that was seized from him on October 11, 2017.

Pursuant to the scheme alleged in the indictment, Rodriguez-Cruz facilitated the employment in the construction industry of undocumented aliens living and working illegally in the United States. Construction contractors and subcontractors entered into an agreement with a shell company Rodriguez-Cruz established to provide workers, most of whom were undocumented 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 (1) the workers were legally authorized to work in the United States, (2) required state and federal payroll taxes were paid, and (3) adequate workers’ compensation insurance was provided.

The indictment further alleges that Rodriguez-Cruz registered a corporation called Gedeon Multiservices, Inc., with the State of Florida. He then applied for a workers’ compensation insurance policy for the period from November 29, 2016, through November 29, 2017, to cover five employees and an estimated annual payroll of $121,000. The insurance company issued the policy for an annual premium of $20,473.20, based on the payroll information set forth in the application. 

Rodriguez-Cruz “rented” the insurance policy to numerous construction contractors and subcontractors who employed hundreds of workers, causing the insurance company to send a certificate of insurance to the contractors and subcontractors as purported proof of sufficient workers’ compensation insurance.

The contractors and subcontractors wrote payroll checks to the shell company for work performed by the workers. Rodriguez-Cruz cashed the checks and distributed the cash to construction crew leaders, who then paid the workers in cash.  No state or federal payroll taxes, such as for Medicare and Social Security, were deducted from the workers’ pay, in violation of Florida and federal law. Rodriguez-Cruz kept approximately 4% of the amount of each payroll check as a “rental” fee. Throughout the scheme, he cashed payroll checks totaling $15,670,438, with his 4% fee totaling $626,817. The annual premium for a workers’ compensation insurance policy covering a payroll of $15,670,438 would have been more than $2,500,000. Many of the workers were undocumented aliens living and working in the United States illegally.

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 will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.

Orlando, FL –U.S. District Judge Roy B. Dalton, Jr. has sentenced Eric Bishop (43, Orlando) to 17 years and 5 months in federal prison for attempting to entice a minor to engage in sexual activity. He pleaded guilty on September 25, 2017.  

According to court documents, between June 12 and June 21, 2017, Bishop communicated with an undercover FBI agent who was posing as the grandfather of a five-year-old autistic child. During those communications, Bishop made plans to meet and have sex with the “child.” When arrived to meet with the “child,” he was arrested.

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

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

Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Andrew Aaron Kutt (46, Bradenton) to 10 years in federal prison for possessing methamphetamine with the intent to distribute it. He pleaded guilty on November 3, 2017.

According to court documents, during January and February 2017, Kutt sold fentanyl and methamphetamine to an individual inside his residence on multiple occasions. On February 24, 2017, deputies from the Manatee County Sheriff’s Office executed a search warrant at Kutt’s residence and recovered various controlled substances, including more than 20 grams of crystal methamphetamine and over 4 grams of a substance containing fentanyl. Kutt admitted that all the drugs found in the home belonged to him.

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 Manatee County Sheriff’s Office, with assistance from the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Michael Sinacore.

Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Rene Rolando Ceron-Flores (39, El Salvador) to four years in federal prison for illegally reentering the United States after having been previously deported. He pleaded guilty on October 31, 2017. 

According to court documents, Ceron-Flores, an alien of the United States, was convicted of criminal sexual abuse of a minor in July 2014 and was deported in October 2014. In September 2017, Ceron-Flores was found to be voluntarily back in the United States illegally.

This case was investigated by the United States Border Patrol. It was prosecuted by Assistant United States Attorney Sean P. Shecter.

Jacksonville, Florida– U.S. District Judge Timothy J. Corrigan today sentenced Jeremy Roldan (45, Lake City) and Gene Wakeley (43, Lake City) to five years and five months in federal prison for distributing methamphetamine. Roldan was also sentenced for possessing a firearm as a convicted felon. 

Roldan pleaded guilty on June 19, 2017, and Wakeley pleaded guilty on October 20, 2017.

According to court documents, on December 13, 2016, Roldan and Wakeley sold approximately seven grams of methamphetamine to an individual in Lake City for $400. On February 1, 2017, Roldan also sold a .38 caliber revolver to an individual for $200. Roldan was previously convicted of carrying a concealed weapon, selling/distributing methamphetamine, possessing methamphetamine, and cheating. As a previously convicted felon, he is prohibited from possessing firearms or ammunition under federal law.

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

This case was brought as part of Project Safe Neighborhoods (PSN), a historical program involving the successful collaboration of law enforcement, at all levels, to reduce violent crime and making 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 (2001). In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

 

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Michael Rubino (59, Clearwater) today pleaded guilty to a criminal information charging him with one count of equity skimming and one count of bankruptcy fraud.  He faces a maximum penalty of five years in federal prison for each count. A sentencing date has not yet been set.

According to the plea agreement, Rubino devised a scheme to defraud mortgage lenders holding recorded mortgage notes, as well as the Federal National Mortgage Association (“Fannie Mae”) and the Federal Housing Agency (“FHA”), which guaranteed the mortgage notes. In furtherance of his scheme, Rubino searched the Pinellas County Clerk of Court records to find properties in various stages of foreclosure. He then contacted distressed homeowners who had already defaulted on their mortgages and vacated their properties. Rubino offered to take control of, manage, and rent the properties to new tenants. Rubino told the homeowners that he would use the rental income he obtained to pay the mortgages and, in some instances, pay the homeowner a portion of the rent he collected. At no time did Rubino hold any legal or equitable interest in these properties, or have authorization from the mortgage lenders, Fannie Mae, or FHA, to rent out the properties. Further, he failed to remit any of the collected rent monies to FHA, as required by law. 

Additionally, in order to prevent Fannie Mae and the mortgage lenders from lawfully foreclosing on properties secured by mortgage notes, Rubino engaged in a bankruptcy fraud scheme whereby he filed fraudulent bankruptcy petitions in the names of the distressed homeowners, without their knowledge or consent, just prior to the scheduled foreclosure sale. These fraudulent bankruptcies invoked the automatic stay provision of the bankruptcy code, preventing the mortgage note holders from conducting the foreclosure sale. The fraudulent bankruptcy petitions filed by Rubino allowed him to continue to collect rent monies to which he was not entitled.

This case was investigated by the U.S. Department of Housing and Urban Development - Office of Inspector General and the Federal Housing Finance Agency – Office of Inspector General.  It is being prosecuted by Special Assistant United States Attorney Chris Poor.

Tampa, Florida – U.S. District Judge Charlene Honeywell today sentenced Daniel R. Kendricks (46, Bradenton) to 15 years in federal prison for possessing a firearm as a convicted felon. The Court also ordered him to forfeit the firearm used in the offense. Kendricks was found guilty after a bench trial on October 31, 2017.

According to court documents, on October 17, 2016, deputies from the Manatee County Sheriff’s Office were searching a residence and discovered Kendricks sleeping on a couch in a garage. When deputies searched the garage, they discovered a loaded gun on a table next to the couch where Kendricks had been sleeping. Kendricks subsequently confessed to possessing the gun.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Callan L. Albritton.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Tampa, FL – United States Attorney Maria Chapa Lopez announces that AmeriCare Ambulance Service, Inc. and its sister company, AmeriCare ALS, Inc. (collectively, AmeriCare), have agreed to pay approximately $5.5 million to resolve allegations that they defrauded Medicare by billing for medically unnecessary ambulance transportation services.

 

“Fraudulently billing the government for medically unnecessary ambulance transports poses a heavy drain on the Treasury, deprives federal health care programs of valuable resources, and will not be tolerated,” said U.S. Attorney Chapa Lopez. “This lawsuit and today’s settlement evidence our office’s ongoing efforts to safeguard federal health care program beneficiaries from the effects of this type of unlawful conduct.”

 

According to a complaint filed by the government last year, from January 2008 through December 2016, AmeriCare submitted fraudulent claims to Medicare and TRICARE for Basic Life Support (BLS), non-emergency ambulance transports that were not medically justified. In support of these allegations, the government cited information regarding unwarranted ambulance transports it had received from numerous AmeriCare employees, as well as audits conducted by the agencies that administer Medicare and TRICARE. The government also cited damaging testimony it had elicited under oath from members of AmeriCare’s management team during the course of the investigation. This testimony, along with the other evidence obtained by the government, revealed that AmeriCare had engaged in a systemic practice – over many years – of submitting fraudulent claims to the government falsely attesting to the medical necessity of its non-emergent, BLS ambulance transports. That proof also revealed that AmeriCare had created thousands of false reports and other documentation during this time period, in a failed effort to support this illicit practice. 

 

In addition to paying approximately $5.5 million, AmeriCare has also agreed to enter into an integrity agreement with the Inspector General of the U.S. Department of Health and Human Services. 

 

“Medical service providers who engage in systemic fraud at the core of their business levy an assault on federal health care programs and the American taxpayer,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General. “In spite of often false medical documents, the OIG and our partners will not be deterred in our efforts to root out this type of fraud and protect the American public.”

 

"This settlement demonstrates the effectiveness of investigations by the Defense Criminal Investigative Service and our law enforcement partners to ensure that medical service providers do not bill for unnecessary services that divert and waste precious taxpayer dollars,” said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS protects the integrity of DoD programs by rooting out fraud, waste, and abuse that negatively impacts critical programs such as TRICARE." 

           

This settlement concludes a lawsuit originally filed by a former AmeriCare employee, Ernest Sharp. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act that permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did here. Mr. Sharp will receive roughly $1.15 million of the proceeds of the settlement with AmeriCare. 

 

This settlement illustrates the government’s emphasis on combating health care fraud and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800.447.8477). 

           

The case is captioned United States, et al. ex rel. Sharp v. AmeriCare Ambulance, Case No. 8:13-cv-1171-T-33AEP. The settlement resolves the United States’ claims in that case.  The claims resolved by the settlement are allegations only and there has been no determination of liability.

 

The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida and the HHS-OIG and the Defense Criminal Instigative Service. It was handled by Assistant United States Attorney Christopher P. Tuite.     

 

 

Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Andrew Corrigan (24, New Port Richey) to 10 years in federal prison for conspiring to commit extortion and money laundering. As part of his sentence, the Court also ordered restitution to the victims and entered a money judgment in the amount of $870,652, representing the proceeds of conspiracy.

Corrigan pleaded guilty on October 25, 2017. 

According to court documents, Corrigan and his co-defendant, David Owen, used individuals to open bank accounts (straw account owners) into which victims of tax impersonation calls deposited money. This money was extorted from the victims by falsely representing that the victims owed federal income tax to the Internal Revenue Service (IRS), to Canadian tax authorities, or other financial obligations. As part of the scheme, victims were threatened that if they failed to pay these obligations, either they or their family members would face arrest, prosecution, or other legal consequences. 

Provided with online access by the straw account owners, Corrigan and Owen monitored the victims’ deposits to ensure timely withdrawals by the straw account owners. In order to make the withdrawals at the bank, the defendants provided the straw account owners with the victims’ names, locations, and deposit amounts. Corrigan and Owen then directed the straw account owners to withdraw the funds in cash, and turn it over to them, often minus a payment to the straw account owner for opening the account or conducting the transaction. Victims were also directed to pay via money transfers and prepaid debit cards, which were collected and deposited by Corrigan and Owen.

Owen pleaded guilty on October 25, 2017. He is scheduled to be sentenced on May 1, 2018.   

This case was investigated by the Internal Revenue Service – Criminal Investigation, Treasury Inspector General for Tax Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Pinellas County Sheriff’s Office, the Pasco County Sheriff’s Office, the Largo Police Department, the Gulfport Police Department, the Toronto Police Service, and the Royal Canadian Mounted Police. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.

Tampa, FL - U.S. Attorney Maria Chapa Lopez announced today that the Middle District of Florida (MDFL) collected $700,928,675 in criminal and civil actions in the fiscal year ending September 30, 2017 (FY 2017). This represents the largest aggregate recovery amount in the district’s history. Of this amount, $34,800,537.04 was collected in local civil actions and $15,469,146.50 was collected in criminal actions. The Office’s Civil Division, led by Randy Harwell, also worked jointly with other U.S. Attorney’s Offices and Department of Justice (DOJ) components in nationwide civil cases that addressed fraud schemes and illegal practices extending beyond district boundaries, recovering an additional $650,658,992.01 in these jointly handled cases. 

 

Additionally, the Office’s Asset Forfeiture Division, led by Anita Cream, recovered $18,633,392 in asset forfeiture actions last fiscal year. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, in FY 2017, more than $9 million forfeited in the MDFL in prior years was returned to victims of the criminal offenses upon which the forfeitures were based, and more than $6.7 million was shared with federal, state, and local law enforcement agencies. 

 

Overall, the Justice Department collected just over $15 billion in civil and criminal actions in FY 2017. 

 

“Working in conjunction with our federal, state, and local law enforcement partners, our collection efforts have resulted in the recovery of funds from convicted criminals and others who have violated our nation’s laws through fraud and other means,” said U.S. Attorney Chapa Lopez. “These coordinated efforts ensure that criminals and others who commit fraud are held accountable for their offenses and, wherever possible, help victims recover from their losses.”

 

U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

 

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, the Defense Health Agency, the Internal Revenue Service, the Small Business Administration, and the Department of Education. See below for MDFL significant civil case highlights.

 

FY 2017 Criminal Cases

 

In FY 2017, the MDFL recovered $15,469,146.50 in criminal collections, primarily restitution owed by criminal defendants. Of those funds, $6,703,417.60 was collected at or before sentencing as a result of our analysis of defendants’ ability to pay. The MDFL began aggressively pursuing prejudgment collection several years ago after recognizing that it was the most effective means of collecting criminal debt. Most defendants have a minimal ability to pay restitution following their release from prison. By notifying defendants prior to sentencing of the assets that the United States believes a defendant has available to pay restitution, we increase the likelihood that restitution will be timely paid to victims and decrease the chances that a defendant will dissipate his assets before being ordered to pay restitution at sentencing.      

 

FY 2017 Civil Cases

 

Civil Healthcare Fraud

 

United States ex rel. Vinca v. Advanced Biohealing, Inc.,

Case no. 8:11-civ-176-T-30MAP (M.D. Fla.)

 

Six qui tam cases led to a nationwide investigation into the kickback practices of a manufacturer of a skin graft product used to promote healing of skin ulcers. The product has been approved by the U.S. Food and Drug Administration for wound healing below diabetic patients’ knees. The relators claimed the defendant’s sales force was systematically instructed by management to pay kickbacks to physicians in the form of meals, entertainment, and other illegal remuneration to induce the purchase of the product. U.S. Department of Veterans Affairs physicians were a particular focus of this illegal behavior. Working with three other U.S. Attorneys’ offices and the DOJ Civil Division, the MDFL Civil Division investigated these claims exhaustively all over the country and corroborated them. In January 2017, we partially intervened in all six cases and settled the kickback allegations for $350,000,000. This is the largest civil settlement in a case involving a medical device in the history of the False Claims Act, and the largest civil settlement of any kind in the history of our district. A number of executives and physicians have also pleaded guilty to health care fraud offenses in a parallel criminal case.

 

United States ex rel. Martin v. Life Care Centers, Inc.,

Case no. 1:08-cv-251 (M.D. Tenn.)

 

This case was one of two overlapping qui tam cases consolidated in the Middle District of Tennessee that alleged violations of the False Claims Act by a nationwide provider of rehabilitation therapy services. The relators alleged that the provider had upcoded its services and provided medically unnecessary rehabilitation to patients at its facilities all over the country, including in the MDFL. Our district joined a number of other United States Attorneys’ Offices to assist the Department of Justice Civil Frauds Section in the litigation that ensued after DOJ intervened in the case in 2012. After five years of litigation, we finalized a settlement of all claims against the provider and its principal, Forrest Preston, for $145,000,000.

 

United States ex rel. Sewall v. Freedom Health, Inc.,

Case no. 8:09-cv-1625-T-35AEP (M.D. Fla.)

 

A former management level employee of an affiliated company of the defendant Part C managed care plan filed this qui tam complaint in August 2009, alleging that the defendants had illegally dis-enrolled the plan’s most costly beneficiaries, and kept healthy beneficiaries enrolled, in violation of the federal regulations governing the plan. Moreover, he contended that Freedom Health had fraudulently induced the government to authorize an expansion of the plan’s service area by representing to Medicare that it had contracted with a costly network of medical providers that it had no intention of using. Finally, the defendants allegedly used fraud to manipulate risk adjustment data given to Medicare to determine the level of payments to the plan.

 

After pursuing an investigation into the relator’s allegations in parallel proceedings for seven years, we intervened in the qui tam case and settled the risk adjustment claims and claims associated with service area expansion for $31,695,000. An individual defendant, Sidd Pagidipati, who oversaw the plan’s service area expansion application paid an additional $750,000 to resolve personal claims against him for his role in the service area expansion allegations. This case features the largest settlement of a Medicare Advantage risk adjustment claim on record.

 

United States ex rel. Barnes v. 21st Century Oncology, Inc., et al.,

Case no. 2:13-civ-228-FtM-99DNF (M.D. Fla.)

 

A former medical assistant of a nationwide oncology provider alleged in a qui tam complaint that the defendants had fraudulently billed Medicare and TriCare for fluorescence in situ-hybridization cytology (FISH) tests used to identify genetic abnormalities too small to be seen microscopically. The relator alleged that employee physicians of the defendant systematically ordered FISH tests that were not medically necessary, and would alter medical records in order to justify ordering FISH tests. Defendant 21st Century allegedly encouraged these fraudulent practices by offering bonuses to physicians based on the number of FISH tests ordered.  

 

In 2016, we announced settlements of our claims against 21st Century Oncology for $19.75 million and our claims against two individual physicians, Dr. Robert Scapa and Dr. David Spellberg, for $250,000 and $1.5 million, respectively.  In 2017, we finalized a settlement with the last remaining individual physician in the case, Dr. Meir Daller, for $3,810,000, representing a recovery of treble damages. 

 

Southeast Orthopedics Specialists (pre-lawsuit)

 

A Jacksonville orthopedics practice was investigated in response to a direct program referral, and was determined to have engaged in a number of improper billing practices that defrauded federal health programs, including the abusive use of billing modifiers, submitting claims for medically unnecessary ultrasound guided injections, and other illicit practices. The physicians’ practice agreed to settle the government’s claims through a settlement that paid $4,488,000. 

 

United States ex rel. Gross v. Norman, Case no. 8:14-civ-978-T-33EAJ (M.D. Fla.)

 

A patient of a Tampa thyroid surgeon filed a qui tam lawsuit alleging that the surgeon had defrauded federal health programs through improper practices such as  performing pre-operative examinations on the day before or the day of surgery procedures, and charging extra fees from federal health care beneficiaries for services for which he had already received payment from the government.  Following a comprehensive investigation, we settled these civil fraud claims for $4,000,000.  

 

Civil Mortgage Fraud

 

Freedom Financial Acquisitions (pre-lawsuit)

 

A whistleblower alerted the Department of Housing and Urban Development (HUD) to allegations that this underwriter had submitted false claims to HUD’s Federal Housing Administration (FHA) insurance program by failing to meet regulatory requirements in connection with its participation in a federally insured Home Equity Conversion Mortgages (HECM) or “reverse mortgage” program. Specifically, the defendant had failed to obtain appraisals within 30 days of reverse mortgage loans becoming due and payable, and failed to pursue foreclosure in a manner consistent with HUD regulations. Witness interviews and document review revealed other defects in Freedom Financial’s servicing of these loans, including failure to notify HUD that it was pursuing foreclosure in a timely fashion, failure to employ reasonable diligence in servicing a HECM loan after it had become due and payable, and failure to submit HECM insurance claims in a timely fashion. Freedom Financial ultimately agreed to settle claims under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and the False Claims Act arising from these shortcomings for $89,274,944, which included credit for a voluntary disclosure that the defendant had earlier made to the FHA program in the amount of $21,000,000.

 

Olympus Zarris (pre-lawsuit)

 

The reverse mortgage practices of a Tarpon Springs condominium developer, Olympus Zarris, were investigated and were found to have violated the requirements of HUD’s regulations that govern the agency’s reverse mortgage lending program. Zarris was found to have engaged in fraudulent sales practices wherein he concealed the amounts paid to the buyers in order to artificially inflate the appraised values of condominium complex units. He recruited elderly buyers to purchase units at the inflated values and required them to immediately apply for reverse mortgages in the maximum amount possible. Zarris and his associates assisted the elderly buyers in applying for reverse mortgages, including filling out their loan applications. The proceeds of the reverse mortgages obtained through these misleading applications were then wired to a company Zarris owned at the reverse mortgage closing. Zarris agreed to resolve the government’s claims under the False Claims Act through a settlement that paid $475,000. 

 

Civil Penalties

 

McKesson (pre-lawsuit)

 

This was a coordinated, multi-district investigation by twelve United States Attorneys’ Offices into the conduct of one of the largest distributors of class II narcotics in the country. The Drug Enforcement Administration (DEA) referred the matter for pursuit of civil penalties under the Controlled Substances Act, alleging that McKesson had failed to report suspicious orders of opiate medications at a number of its distribution centers. The Florida investigation centered upon the defendant’s activities at its Lakeland distribution center, which was found to have failed to report suspicious orders of hydromorphone to at least two Florida pharmacies. The government presented its findings concerning the nationwide conduct to McKesson, and ultimately negotiated a settlement that paid $150,000,000 in civil penalties and that will suspend McKesson’s DEA registrations for a period of two years at a number of its distribution centers. In a landmark feature of the settlement, McKesson also agreed to independent oversight of its suspicious orders reporting program by a third-party monitor.           

 

Cardinal Health (pre-lawsuit)

 

The DEA referred a civil penalty case against a major distributor of Class II narcotics, Cardinal Health, over its failure to report suspicious orders of opiate medications made by pharmacies in the central Florida area. The conduct, which was rampant during the time period running from 2009 to May 2012, gave rise to exposure to civil penalties under the Controlled Substances Act. The District of Maryland joined forces with the effort to address Cardinal Health’s failure to report suspicious orders of a similar nature in the Baltimore area, and the Southern District of New York opened an investigation into the failure by a Cardinal subsidiary, Kinray, to maintain sufficient controls over deliveries of Class II narcotics in the Manhattan area.

 

After several years of investigation, we negotiated an agreement to settle the Florida and Maryland claims for $34,000,000. The Southern District of New York settled claims against the Kinray subsidiary for an additional $10,000,000.

                                        

FY 2017 Asset Forfeiture Cases

 

United States v. Davanzo et al.

Case no. 2:15-cr-141-FtM-38MRM (M.D. Fla.)

 

Defendants Thomas Davanzo and Robert Fedyna pleaded guilty to wire fraud and money laundering conspiracies arising out of a scheme that took advantage of regulations implemented by the EPA that were intended to induce traditional petroleum producers to use renewable fuels in their products by requiring producers to purchase “Renewable Identification Numbers” from renewable fuel producers.  In October 2016, the Court entered Forfeiture Money Judgments against them in the amount of $46,360,724.50. The Court also entered preliminary orders of forfeiture for assets they had purchased with proceeds from the scheme. Collectively, this included the forfeiture of 27 bank accounts, a 43-foot Motor Yacht, 4 high end vehicles, 4 thoroughbred horses, 2 pieces of real property, gold coins, jewelry, and cash. Final Orders of Forfeiture were entered for these assets in February and March 2017. To date, we have liquidated/collected approximately $4,315,991.63 as a result of these forfeitures. Some of the assets are still for sale.

 

United States v. Idhedoise et al.

Case no. 8:15-cr-320-T-23TGW (M.D. Fla.)

 

Priscilla Ellis, Perry Cortese, and Kenietta Johnson were involved in a sophisticated fraud and money laundering network that preyed on victims throughout the world. They helped members of that network defraud victims across the United States and then laundered the funds, transferring much of it overseas. 

 

In August 2015, we obtained seizure warrants to seize numerous bank accounts involved in the scheme. Ellis, Cortese, and Johnson were indicted in September 2015 and proceeded to trial in October 2016. All three defendants were ultimately convicted of conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Following briefing and a hearing, the Court entered forfeiture money judgments against the defendants in the amount of $9,288,241.36 and preliminary orders of forfeiture forfeiting jewelry, 14 bank accounts, 3 Mercedes-Benz vehicles, and 4 pieces of real property to the United States. The net proceeds obtained from the sale of the forfeited assets will be applied to the forfeiture money judgment. The MDFL intends to seek authorization from DOJ to use the forfeited funds to pay victims.              

 

United States v. Pinon et al.

Case no. 5:14-cr-41-Oc-10PRL (M.D. Fla.)

 

Rolando Pinon and his codefendants were prosecuted for their participation in a cocaine trafficking conspiracy that lasted more than seven years and involved the distribution of well over 50 kilograms of cocaine. Pinon, the lead defendant, was a resident of San Benito, Texas, who regularly distributed cocaine to Swoll, an Ocala resident. As part of his sentence, the Court forfeited four pieces of real property, and $84,000 cash in lieu of another property from Pinon in FY 2017, for a total forfeiture amount of $752,000 (with the additional $130,500 in vehicles sold in FY 2016).          

 

         

 

 

 

 

         

 

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found William Harold Wright, Jr. (56, Los Angeles, CA), a/k/a “Flat Top,” guilty of conspiracy to distribute and to possess with the intent to distribute one kilogram or more of heroin, possessing heroin with the intent to distribute it, and possessing greater than 100 grams of heroin with the intent to distribute it. He faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for April 30, 2018.

Wright. was indicted on October 4, 2016.

According to testimony and evidence presented at trial, in April 2015, the Federal Bureau of Investigation, the Pinellas County Sheriff’s Office, and the St. Petersburg Police Department began investigating a heroin distribution network in Pinellas County. Law enforcement officers working in an undercover capacity conducted a series of controlled drug transactions from 2015 through 2016, purchasing from one to nine ounces of heroin in a series of transactions. Investigators later discovered that Wright had been supplying the heroin that the undercover officer had purchased. In June 2016, law enforcement officers observed Wright. and a co-conspirator retrieve a crate in St. Petersburg that had been shipped from California. The crate contained a kilogram of heroin that had been concealed in a countertop. Officers later arrested Wright.

This case was investigated by the Federal Bureau of Investigation, the Pinellas County Sheriff’s Office, the St. Petersburg Police Department, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys James C. Preston and Charlie D. Connally.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Michael Eugene Williams (61, Jacksonville) to a term of life imprisonment for the commercial sex trafficking of a child, which began when the child was 3 years old. As part of his sentence, the Court also ordered restitution in the amount of $194,905.17 to the minor victim, and ordered the forfeiture of electronic devices used in the commission of the offense, including a cellular telephone, an electronic tablet, and an Internet router.

Williams pleaded guilty to the offense on June 5, 2017.

According to court documents, from at least February 25, 2016, through September 28, 2016, Williams solicited an adult woman in Texas to sexually abuse her 3-year-old daughter, take photographs of the abuse, and sell the photographs to him. An investigation of Williams began in late May 2016, when an Internet Crimes Against Children Task Force detective with Jacksonville Sheriff’s Office (“JSO”) received a cyber tip from the National Center for Missing and Exploited Children. The tip established that Williams was sharing child pornography. JSO obtained a search warrant for Williams’s residence and found more than 450 images and videos of child pornography on his cellular telephone. In addition, a JSO forensic examiner found text communications between Williams and an adult woman in Texas beginning in January 2016, and continuing through July 7, 2016. During this time period, there were approximately 337 messages, mostly sexual in nature, between Williams and the woman about her daughter.

Williams repeatedly requested more explicit pornographic pictures and videos of the minor for money, urging the mother to engage in sexual acts with her child and to have the child perform sexual acts on others and film the activity. Williams sent at least 19 Western Union wire transfers to the mother for the payment of visual depictions of the minor’s sexual abuse, which were funded by Williams’s retirement income from his career as a JSO officer.

Immediately, upon discovery of the depictions of sexual abuse of the then 4-year-old, Homeland Security Investigations and the Jacksonville Sheriff’s Office contacted Texas law enforcement officials and the child was removed from the abusive environment. In an interview with the mother, she indicated she had recently been in contact with Williams via “Kik” messenger and that she had communicated with him as recently as September 2016. On October 21, 2016, a federal search warrant was executed at Williams’s residence, where agents discovered his newly obtained cellular telephone containing additional sexually explicit videos of the 4-year-old child and messages in which Williams indicated his desire to perform sexual acts on the child.

The Texas woman pleaded guilty to two counts of production of child pornography in federal court (Northern District of Texas). She was sentenced to 60 years in federal prison.

“This is one of the most heinous crimes imaginable,” said HSI Tampa Special Agent in Charge James C. Spero. “Thanks to HSI special agents and the Jacksonville Sheriff’s Office, this criminal will no longer be able to sexually abuse children.”

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (Jacksonville and Dallas), the Jacksonville Sheriff’s Office, the U.S. Secret Service, and the Cleburne Police Department (Texas). It is being prosecuted by Assistant United States Attorney Kelly S. Karase.

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

Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Diosme Fernandez Hano (44, Hialeah) to 10 years and 1 month in federal prison and Reinaldo Arrastia-Cardoso (48, Hialeah) to 10 years in federal prison for armed robbery and conspiracy to commit armed robbery. A federal jury found Hano and Arrastia-Cardosowere guilty on October 31, 2017.

 

According to evidence presented at trial, on November 30, 2009, Hano and Arrastia-Cardoso committed an armed robbery of a Brink’s armored truck outside of the Fifth Third Bank on Daniels Parkway and Treeline Avenue in Fort Myers. Almost $1.8 million was stolen during the robbery. 

 

This case was investigated by the Federal Bureau of Investigation, the Lee County Sheriff’s Office, the Florida Department of Law Enforcement, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, the Tampa Police Department, and the Hillsborough County Sheriff’s Office.  It was prosecuted by Assistant United States Attorneys Jeffrey F. Michelland and Simon R. Eth.

 

 

 

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Eric Massey (41) and Meldon Foster (44), both of Jacksonville, have pleaded guilty to conspiring to distribute 100 grams or more of heroin. Their co-defendant, Jaris Anacreon (33, Miami) pleaded guilty to the same offense on December 21, 2017. All three men face a minimum mandatory penalty of 5 years, up to 40 years, in federal prison.

 

According to their plea agreements, after selling an ounce of heroin to a confidential informant (CI), Massey introduced the CI to Foster, his source of supply, and told the CI that Foster had large amounts of heroin for sale. Foster and Massey later provided the CI with another ounce of what was sold as heroin, but which laboratory testing showed was carfentanil (an analog of the synthetic opioid fentanyl). In the period that followed, Foster sold the CI more heroin and discussed the possibility of larger deals. Foster eventually introduced the CI to Anacreon and bragged that he and Anacreon had access to significant quantities of both cocaine and heroin. The CI brokered the purchase of five ounces of heroin from Anacreon and Foster. While Anacreon was on the way to the deal with the drugs, law enforcement conducted a traffic stop, arrested Anacreon, and seized approximately five ounces of the heroin.

 

This case was investigated by the Drug Enforcement Administration, the Fernandina Beach Police Department, the Nassau County Sheriff’s Office, and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Elder Auxume-Guerra (39, Honduras) has pleaded guilty to failing to register as a sex offender. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.

 

According to court documents, Auxume-Guerra was convicted of attempted third degree rape in New York in 2016. As a result of his conviction, he was required under the Sex Offender Registration and Notification Act (SORNA) to register as a sex offender and maintain his registration for a period of 20 years. Between March 2016 and October 2017, Auxume-Guerra moved from New York to Florida and failed to register as a sex offender in Florida.

 

SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist states in locating and apprehending non-compliant sex offenders.

 

This case was investigated by the U.S. Marshals Service. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.

 

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

Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Nadim Afif El-Kareh (56, Orlando) to one year and one day in federal prison for trafficking in counterfeit goods. The Court also imposed a forfeiture money judgment in the amount of $264,408.80, which constitutes the proceeds of the offense, and restitution of $376.57 to Gucci, for the costs of its involvement in the investigation. El-Kareh pleaded guilty on February 23, 2017.

 

According to court documents, from 2013 through at least 2016, El-Kareh sold counterfeit cellphone accessories, perfume, jewelry, and electronic goods out of rented storage units and at the Webster Flea Market. In April 2016, federal agents seized approximately 10,950 counterfeit items with an estimated domestic value of approximately $224,510 from El-Kareh’s storage units. These counterfeit goods bore false labels from companies such as Beats by Dr. Dre, Otter Box, Gucci, and Michael Kors. El-Kareh imported many of these items from China and purchased others from counterfeit goods traffickers in New York City. Agents determined that from in or approximately January 2015 through April 2016, El-Kareh earned at least $264,000 from his illegal sales. 

 

“Criminals who sell counterfeit goods siphon trade away from legitimate businesses that create jobs and support our local economy," said HSI Tampa Special Agent in Charge James C. Spero. “This crime harms all of us in the long run."

 

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

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that David Earl Johnson (37, Bradenton) has pleaded guilty to distributing and possessing with the intent to distribute fentanyl resulting in death. He faces a minimum mandatory penalty of 20 years, up to life, in federal prison. Johnson also must pay restitution to the family of the victim.

 

According to the plea agreement, on January 11, 2017, Johnson distributed fentanyl, which resulted in the death of “K.H.,” who was found unresponsive and later pronounced dead that day from fentanyl intoxication. The investigation into the victim’s death identified Johnson as the Bradenton-based supplier who had sold the fentanyl to the victim.

 

After Johnson was identified, detectives from the Manatee County Sheriff’s Office arranged an undercover purchase of fentanyl from him on the evening of January 11, 2017. During that meeting, Johnson gave eight bags of fentanyl to an undercover detective, and he was arrested.

 

“The Manatee County Sheriff’s Office will continue to work with all of our partners to ensure that the victims and their surviving family members get justice through our legal system,” said Manatee County Sheriff Rick Wells. “We appreciate the hard work of the United States Attorney’s Office to bring this very important case to a successful conclusion.”

 

This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Hot Batch.” It was investigated by the Manatee County Sheriff’s Office and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Dan Baeza.

Orlando, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Jeremy Achey (43, Bethlehem, PA) guilty of conspiracy to distribute and distribution of controlled substance analogues. He faces a mandatory minimum penalty of 20 years, up to life, in federal prison. His sentencing hearing is scheduled for April 13, 2018.

 

Achey was indicted on July 19, 2017.

 

According to testimony presented at trial, operating under the name “EtiKing,” Achey was one of the largest distributors of synthetic drugs on Alphabay Market, a “darknet” marketplace for illicit substances. Achey mailed thousands of packages containing numerous synthetic drugs to hundreds of customers throughout the country. On February 27, 2017, he sold one gram of tetrahydrofuran fentanyl, a synthetic analogue of fentanyl, which killed a 24-year-old woman in Orlando.  

 

This case was investigated by the Drug Enforcement Administration, with assistance from the Pennsylvania State Police, the Orange County Sheriff’s Office, the U.S. Postal Inspection Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Nathan W. Hill.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Jose Alberto Hernandez (45, Tampa) has pleaded guilty to making a false statement in an application for a U.S. Passport and to making a false statement in connection with an application for U.S. citizenship. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.

 

According to court documents, Hernandez is a Dominican national who illegally entered the United States through the Mexican border on or about January 21, 1999. On February 14, 2001, he married an American citizen living in Tampa. On December 12, 2007, Hernandez appeared at the Tampa U.S. Citizenship and Immigration Services office for an interview in connection with his petition to remove conditions of his residency. Later that month, he went to a U.S. Postal facility in Tampa and applied for a U.S. Passport under the identity of Jose Angel Santos Figueroa. As proof of his citizenship, Hernandez presented a Puerto Rico birth certificate and Florida driver license, all belonging to Jose Angel Santos Figueroa. On January 8, 2008, Hernandez was granted a U.S. Passport under the name Jose Santos Figueroa.  

 

On December 12, 2008, Hernandez submitted an application for U.S. citizenship under his own identity that contained several false statements. On October 28, 2009, he became a naturalized citizen of the United States. As a result of this conviction, he now faces denaturalization and the mandatory revocation of his citizenship.

 

This case was investigated by the U.S. Department of Homeland Security Investigations and the U.S. Department of State, Diplomatic Security Services. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.

Tampa, Florida – United States District Judge Susan C. Bucklew today sentenced Doyle Mullins, Jr. (71, Bradenton) to nine months of home detention and five years of probation for theft of government funds. As part of his sentence, the Court also entered a money judgment against him in the amount of $583,485.74, which constitutes the proceeds of the theft from the Department of Veterans Affairs. Mullins pleaded guilty on October 16, 2017.

 

According to court documents, from approximately 1995 through 2017, Mullins, a veteran of the Vietnam War, repeatedly lied to the Department of Veterans Affairs by falsely claiming that he was totally and permanently blind and that he was unable to drive, work, or perform household tasks. As a result, for more than 20 years, Mullins has obtained thousands of dollars per month in recurring disability payments from the government, grants from the VA for a car and adaptive housing, and medical benefits payments for his wife. During the course of their investigation, law enforcement agents observed Mullins regularly driving, mowing his lawn, running errands, and banking.

 

This case was investigated by the Department of Veterans Affairs, Office of Inspector General. It was prosecuted by Assistant United States Attorney Megan K. Kistler.

Tampa, Florida – United States District Judge Virginia M. Hernandez Covington has sentenced Joseph Michael Griffin (30, Zephyrhills) to five years in federal prison for accessing child sexual abuse videos and images over the Internet using the “dark web.” He was also sentenced to a 20-year term of supervised release and ordered to register as a sex offender. Griffin pleaded guilty on September 28, 2017.      

 

According to court documents, FBI agents began an online undercover investigation to identify individuals who were using a particular website on the “dark web” to access and download images and videos depicting child pornography.  Further investigation revealed that Griffin had accessed child pornography on this website between August 2014 and March 2015. FBI agents executed a search warrant at Griffin’s residence and, during a subsequent interview, Griffin admitted to viewing child pornography. A forensic examination of his laptop computer revealed that it contained at least 45 images and 17 videos depicting children being sexually abused.

 

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

 

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.

Ocala, Florida – United States Attorney Maria Chapa Lopez announces that U.S. District Judge James D. Whittemore yesterday sentenced Thomas Edward Abney, Jr. (38, Leesburg) to 40 years in federal prison for production of child pornography and aiding and abetting the transportation of child pornography. The Court also ordered him to forfeit a cellular telephone used in the commission of the crimes.

 

Abney pleaded guilty to the charges on September 28, 2017. 

 

According to court documents, in June 2017, Abney, a registered sex offender, contacted an undercover federal agent in an online chatroom frequented by individuals who have a sexual interest in children and incest. Abney sought images of child pornography from the agent and bragged that he recently had traded sexually explicit images of a toddler in his care to another person. Abney also claimed to have committed sex acts with this child and eventually sent the agent a photograph and an electronic link to an 11-minute movie file, all of which contained child pornography.

                   

On June 29, 2017, the FBI executed a federal search warrant at Abney’s Leesburg residence and seized his smartphone. A forensic analysis of the phone showed that it contained sexually explicit images of the toddler that had been in Abney’s care. Abney admitted that he had used the smartphone to produce, distribute, receive, and possess child pornography, including the link to the eleven-minute movie file. He also confirmed that he recently had created and sent sexually explicit images of the toddler to another person over the Internet.  

 

Abney is a registered sex offender in Florida due to multiple prior state convictions involving the use of a child in a sexual performance and the transmission of child pornography. 

 

“The heinous acts committed by this defendant intensify to the FBI’s commitment to identify, investigate, and bring child predators to justice,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division.  “The FBI Jacksonville Division is making every effort to protect our communities from those who target our innocent children."

 

This case was investigated by the Federal Bureau of Investigation. It was 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.justice.gov/psc.

Orlando, Florida – United States District Judge Paul G. Byron has sentenced Scott Foster (50, Caldwell, Idaho) to 15 years in federal prison and 20 years of supervised release for attempting to entice a minor to engage in sexual activity. The Court also ordered him to forfeit a cell phone, that had been was used in connection with the offense.

 

Foster pleaded guilty on October 4, 2017.      

 

According to court documents, between January 18, 2017, and March 29, 2017, Foster exchanged over 100 email and text communications with an undercover agent posing as the father of a 12-year-old fictitious minor, with the purpose of coordinating a sexual encounter with the minor. Foster then traveled to Orlando, and thereafter to a meeting location where he believed he would meet the minor.  When he arrived at the location, Foster was arrested. During an interview with law enforcement, Foster admitted that he enjoyed “family taboo” and that he had received child pornography and talked to other individuals via the Internet about sexual activity with children. The investigation further revealed that Foster had emailed another individual about his desire to engage a 10-year-old female in sadistic sexual activity.

 

This case was investigated by the Federal Bureau of Investigation. It is being 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, Florida – United States District Judge Paul G. Byron yesterday sentenced Andres Fernando Cabezas (34, Leesburg) to 12 years in federal prison and 20 years of supervised release for receipt of child pornography. The Court also ordered him to forfeit a cell phone that had been used in connection with the offense.

 

Cabezas pleaded guilty on October 18, 2017. 

 

According to court documents, on or about May 8, 2017, Cabezas retrieved and viewed a video known as “Daisy’s Destruction” via the Dark web, which depicts a female toddler (approximately 18 months old) being severely whipped, burnt, and sexually abused by a young female. The investigation also revealed that Cabezas had engaged in text communications with an undercover agent posing as a 12-year-old female. In those communications, Cabezas attempted to groom the “minor” and persuade her to have oral and vaginal sex with him. He also bought an emergency contraceptive pill for the “minor.” 

 

After Cabezas’ arrest, he admitted to being attracted to girls approximately 12 years old since he was that age. Cabezas was a teacher at Carver Middle School in Leesburg, Florida.

 

This case was investigated by 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.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Erwin Phillips Burley (29, Houston, TX) to eight years in federal prison for enticing a woman to travel across state lines to engage in prostitution. The Court also ordered him to pay restitution to the victims in the case.

         

Burley pleaded guilty on May 9, 2017.

 

In July 2016, law enforcement officers received information that Burley was offering women for prostitution in the Jacksonville area. Further investigation resulted in the identification of a woman who said she had been picked up in New Orleans, Louisiana and transported to Jacksonville to engage in prostitution for Burley. 

 

“This defendant exploited the victim for his own benefit,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “Human trafficking offenders, like this, pose a threat to the overall safety of our communities, and the FBI is committed to working tirelessly with our law enforcement partners to identify these predators, and seek justice for the heinous acts they commit."

 

“I appreciate the investigators for their work on this case,” said FDLE Special Agent in Charge John Burke. “FDLE is committed to assisting our law enforcement partners in keeping our Florida communities safe.” 

 

This case was investigated by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the Jacksonville Sherriff’s Office. It was prosecuted by Assistant United States Attorney Ashley Washington.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Natalie Rene Panko (57, Tampa) has pleaded guilty to one count of conspiracy to commit theft of government funds, three counts of theft of government property, three counts of access device fraud, and three counts of aggravated identity theft. She faces up to 5 years in federal prison for the conspiracy count, up to 10 years in federal prison for each theft of government property and access device fraud count, and a consecutive 2-year prison term for the aggravated identity theft charges. A sentencing date has not yet been set.

 

According to court documents, Panko is the owner and operator of “Ladies of the Sea,” a restaurant in Tampa that has operated for over 15 years. Between August 22 and November 28, 2012, Panko, along with co-conspirators Rico Simmons and Mazie Hill, used the restaurant to extract tax fraud proceeds from debit cards issued by various card companies.

 

During 2012, individuals connected with this conspiracy filed more than 60 fraudulent tax returns with the IRS using identities stolen from living and deceased taxpayers. These fraudulent tax returns directed tens of thousands of dollars in tax refunds to debit cards issued in the names of the identity theft victims. Simmons brought the debit cards, loaded with the fraudulently obtained refunds, to Panko and Hill at Ladies of the Sea. Together, they devised a plan to retrieve the funds from the cards by swiping them at the restaurant and pretending the transactions were for legitimate purposes, such as catering. After the cards were swiped at Ladies of the Sea, the tax fraud money was deposited into Panko’s and Hill’s respective bank accounts. The women then made large cash withdrawals, keeping some of the money for themselves and sharing some with Simmons. 

 

Simmons and Hill previously pleaded guilty for their roles in this case. Simmons’s sentencing hearing has been scheduled for March 22, 2018. Hill is scheduled to be sentenced on February 21, 2018.

 

This case was investigated by the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Megan Kistler, Kelley Howard-Allen, and Simon Gaugush.

Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Christopher Gerard Dickerson (39, Sanford) to 21 years and 10 months in federal prison for conspiracy to distribute and possess with the intent to distribute controlled substances, distribution and possession with the intent to distribute controlled substances, and possessing a firearm as a convicted felon. A federal jury found him guilty on October 23, 2017.  

 

According to testimony and evidence presented at trial, Dickerson conspired with others to possess and sell street-level quantities of heroin, cocaine, fentanyl, and crack. On two occasions in September 2016, in parking lots in east Orlando, Dickerson sold grams of heroin to a confidential informant who was working for law enforcement. Thereafter, he agreed to sell firearms and drugs to an undercover agent with the Orange County Sheriff’s Office. 

 

On March 17, 2017, at a hotel on International Drive in Orlando, Dickerson and a co-conspirator, David Charles Heineman, sold the undercover agent seven firearms, a bag of cocaine, ammunition, and a large-capacity drum magazine for one of the firearms. The firearms included semiautomatic pistols, a tactical rifle, shotguns, and an AK-47 style firearm. Three of the seven firearms had been reported stolen. Heineman also later sold two additional firearms, two bulletproof vests, and other drugs to the undercover agent.   

 

On April 19, 2017, agents executed a federal search warrant at Dickerson’s and Heineman’s apartment in Titusville. After Dickerson’s arrest, agents recovered a stash of drugs from the apartment, including crack and fentanyl. 

 

Due to his multiple prior felony convictions, including possession of cocaine, delivery of hydromorphone, possession of cocaine with the intent to sell or deliver, and possession of a firearm by a convicted felon, Dickerson is prohibited from possessing a firearm or ammunition under federal law.

 

On October 3, 2017, Heineman pleaded guilty to conspiracy to distribute and possessing with the intent to distribute controlled substances and possessing a firearm as an unlawful user of a controlled substance. On December 20, 2017, he was sentenced to 5 years and 10 months’ imprisonment.  

 

“ATF’s primary focus is protecting the public by reducing violent crime,” said Special Agent in Charge Daryl McCrary. “ATF continues to aggressively pursue violent offenders and will continue to protect and serve communities with our law enforcement partners.”

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange County Sheriff’s Office, with assistance from the Federal Bureau of Investigation and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter and former Assistant United States Attorney Andrew C. Searle.

 

This case was brought as part of Project Safe Neighborhoods (PSN), a historical program involving the successful collaboration of law enforcement, at all levels, to reduce violent crime and making 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 (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.

 

Orlando, FL – U.S. District Judge Roy B. Dalton, Jr. has sentenced Arkee Vernard Howard (27, Orlando) to 9 years in federal prison for possessing a firearm as a convicted felon and for possessing with the intent to distribute cocaine, heroin, and marijuana. He pleaded guilty on September 27, 2017.

 

According to court documents, at approximately 3:30 a.m. on December 23, 2016, officers from the Orlando Police Department approached a vehicle stopped at an intersection with a green light and found Howard asleep behind the wheel. He admitted to the officers that he had drugs in his car and a search of the vehicle revealed more than 13 grams of cocaine, 3 grams of heroin, 300 grams of marijuana, and approximately 2 grams of methamphetamine. The officers also located a stolen .40 caliber pistol with a full magazine and a round in the chamber.

 

At the time of his arrest in December 2016, Howard had multiple 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 Orlando Police Department. It was prosecuted by Assistant United States Attorney Shawn P. Napier.

 

This case was brought as part of Project Safe Neighborhoods (PSN), a historical program involving the successful collaboration of law enforcement, at all levels, to reduce violent crime and making 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 (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.

Ocala, FL – U.S. District Judge Roy B. Dalton, Jr. has sentenced Karon Dawson (38, Ocala) to eight years and eight months in federal prison for possessing a firearm as a convicted felon. He pleaded guilty on September 18, 2017.

 

According to court documents, on March 15, 2017, deputies from the Marion County Sheriff’s Office followed Dawson’s vehicle after they had witnessed him engage in a drug transaction. When Dawson observed the unmarked patrol car, he fled and led the deputies on a chase, ultimately abandoning the car and fleeing on foot. After a brief chase, Dawson was arrested in an Ocala neighborhood. Inside his abandoned vehicle, deputies recovered plastic packets containing small amounts of crack cocaine and heroin, and a loaded .40 caliber semi-automatic pistol.

 

At the time of the incident, Dawson had 16 prior felony convictions and was therefore prohibited from possessing a firearm or ammunition under federal law.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (Gainesville) and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Dale Campion.

Jacksonville, Florida – United States District Judge Brian J. Davis today sentenced Jason Dean Barnes (42, Jacksonville) to six years in federal prison for downloading child sexual abuse images and videos over the Internet using the “dark web.” He was also ordered to serve a 10-year term of supervision following his release and must register as a sex offender. Barnes was found guilty on September 18, 2017, following a bench trial.      

 

According to court documents, FBI agents began an online undercover investigation to identify individuals who were using a particular anonymizing website on the “dark web” to access and download images and videos depicting child pornography. Agents identified Barnes after he had accessed child pornography on this website on February 28 and March 3, 2015. A search warrant was then executed at Barnes’s residence and, during an interview, he admitted to searching for, downloading, and viewing child pornography for his own sexual gratification. A forensic examination of his laptop computer revealed that it contained at least 500 videos and 5,000 images depicting child pornography.

 

This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

 

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

Tampa, Florida – U.S. District Judge Susan Bucklew has sentenced Yolanda Camara (49, Brandon) to 12 years and 7 months in federal prison for her role in operating and managing a medical clinic from which oxycodone, alprazolam, and other controlled substances were illegally prescribed. The Court also ordered her to pay a money judgment of $124,285.64, which are proceeds of the offenses.

 

Camara pleaded guilty on July 13, 2017. 

 

According to court documents, Camara co-owned and managed Family Medical Express Center, Inc. in Brandon, Florida. She and her co-conspirators operated Family Medical as a purported medical clinic used to sell unlawful prescriptions to individuals who did not need them and to individuals who diverted them for sale in the community on a per-pill basis. In some cases, Camara’s co-conspirator, Dr. Anil Sahijwani, wrote prescriptions at Camara’s or another co-conspirator’s request in the names of individuals he never examined, never met, and, in some cases, who did not actually exist. During the sentencing hearing, Camara was held responsible for conspiring to illegally prescribe over 28,000 oxycodone pills and nearly 6,000 alprazolam (Xanax) pills.     

 

Camara and her co-conspirators have all pleaded guilty to drug conspiracy and drug distribution charges. Camara also pleaded guilty to lying to federal investigators. In total, six defendants have been sentenced in this and related cases. Jonathan Wainwright, a “sponsor” who paid people to go to the clinic and obtain prescriptions for pills he could sell, was sentenced to 9 years and 2 months’ imprisonment. Dr. Anil Sahijwani was sentenced to 3 years and 9 months in federal prison. Justin Oliveira, Camara’s son and clinic employee, and Jeremiah Foor, a patient/co-conspirator, were each sentenced to 33 months’ imprisonment. And, David Arbogast, a patient/co-conspirator, was sentenced to 5 years’ probation.

 

This case was investigated by the Drug Enforcement Administration and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Daniel George.

Jacksonville- FL - United States Attorney Maria Chapa Lopez, along with Special Agent in Charge James Spero, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), announce today the distribution of more than $1.7 million in civilly forfeited funds to three law enforcement agencies. These awards are the result of a federal civil forfeiture of more than $4.5 million in funds obtained fraudulently through the hacking of bitcoin accounts. Pursuant to the Department of Treasury Equitable Sharing Program, the funds were distributed to the Nassau County Sheriff’s ($1,044,550.05); the Florida National Guard ($627,487.74); and the Jacksonville Sheriff’s Office ($209,162.58). The presentations took place today at the Jacksonville Office of Homeland Security Investigations. 

 

“I applaud the cooperation and diligence of our law enforcement partners in working with us to investigate and prosecute this case successfully,” said U.S. Attorney Chapa Lopez. “Divesting criminals of their ill-gotten gains and returning these resources to our enforcement agencies is yet another step in continuing our fight against crime.” 

 

“This asset sharing is a perfect example of how a criminal’s illegal profits can be used to protect the citizens of our communities,” said Special Agent in Charge Spero. “The Nassau County Sheriff’s Office, the Florida National Guard’s Counterdrug Program and the Jacksonville Sheriff’s Office all worked with HSI to hold these criminals accountable and we are honored to be able to publically recognize them for their hard work, while sharing with them a large portion of the seized monies.”     

 

According to court documents, in November 2013, HSI special agents learned of the theft of approximately 5,400 bitcoins from Sheep Marketplace, an illicit online marketplace that has since been shut down. Sheep Marketplace was used predominantly for the illicit sale of narcotics. Jacksonville residents Sean Mackert and Nathan Gibson determined that the Sheep Marketplace had a single online “wallet” that contained the bitcoins earned by individuals using the marketplace. They devised a scheme that tricked Sheep Marketplace’s “wallet” into transferring the bitcoins of others into “wallets” they controlled. During their investigation, HSI agents determined that Mackert and Gibson had routed the bitcoins through multiple online “wallets,” then wired them to a licensed money service business. At their direction, the money service business exchanged the bitcoins for United States currency, then wired the funds to bank accounts in Jacksonville that were controlled by Mackert and Gibson.

 

Mackert and Gibson both have pleaded guilty to conspiracy to commit wire fraud and are awaiting sentencing. Each faces up to 20 years in federal prison.

 

During the criminal investigation, HSI agents and local law enforcement, with the assistance of the United States Attorney’s Office, seized the funds and two vehicles. The United States commenced a civil forfeiture action against the funds, alleging that they were the proceeds of fraud. The district court ultimately ordered the forfeiture of the funds and two vehicles.     

 

In the Middle District of Florida, enforcement of federal asset forfeiture laws is an integral part of our law enforcement mission. Taking the profit out of crime is important in disrupting and dismantling illegal enterprises, deterring crime, and restoring property to victims. It is also an effective way to have criminals help fund law enforcement efforts. Through the Equitable Sharing Program, our state and local law enforcement partners receive resources to supplement their law enforcement mission. Asset forfeiture and equitable sharing are valuable law enforcement tools that send a clear message that crime does not pay.

 

The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance from the Nassau County Sheriff’s Office, the Florida National Guard, and the Jacksonville Sheriff’s Office. The civil forfeiture action was handed by Assistant United States Attorney Bonnie Glober. The criminal prosecution is being handled by Assistant United States Attorney Kevin Frein.   

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Ryan Elton Devore (31, Satsuma) has pleaded guilty to receiving child sexual abuse videos over the Internet. He faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison. A sentencing date has not yet been set.

 

According to court documents, on July 18, 2017, federal agents and local officers executed a search warrant at Devore’s home in connection with an online child exploitation investigation. When the agents asked Devore if he had come across pornography involving children under the age of 12, he responded, “Well, yeah, I was gonna say, I know, I, I probably have before, yeah.” Forensic analyses of Devore’s custom-built computer tower and a cellphone revealed that the devices contained numerous depictions of child pornography, including at least 400 videos of children being sexually abused.   

 

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

 

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

 

Maria Chapa Lopez

United States Attorney

Middle District of Florida

 

James C. Spero

Special Agent in Charge

U.S. Immigration and Customs Enforcement’s

Homeland Security Investigations

 

Participating Agencies

Florida National Guard, Jacksonville Sheriff’s Office, Nassau County Sheriff’s Office

 

WHAT:

Agencies to receive forfeiture proceeds

WHEN:

WEDNESDAY, January 17, 2018

2:00 P.M. EST  

 

WHERE:  

Department of Homeland Security/U.S. Immigration & Customs Enforcement

13077 Veveras Drive

Jacksonville, Florida 32258

 

 

OPEN PRESS

 

NOTE: 

All media must have government-issued photo I.D. (e.g. Driver’s License), as well as valid media credentials. Media may begin arriving at 1:30 P.M. for security clearance. Please RSVP to [email protected] by 10:00 a.m. on Wednesday, January 17th.

The owner of an Orlando, Florida-area pharmacy, a medical doctor and a patient recruiter were convicted today for their 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 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 W. 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 Howard, 53, of Oviedo, Florida; Nicole Bramwell, M.D., 52, of Apopka, Florida; and Raymond 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 Raymond 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 Dr. Nicole 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.

 

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 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. 

 

Orlando, FL – The owner of an Orlando, Florida-area pharmacy, a medical doctor and a patient recruiter were convicted today for their 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 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 Howard, 53, of Oviedo, Florida; Nicole Bramwell, M.D., 52, of Apopka, Florida; and Raymond 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 Raymond 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 Dr. Nicole 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.

 

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 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. 

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Jose Gerardo Mejia-Rangel (41, Dade City) has pleaded guilty to aggravated identity theft. He previously pleaded guilty in a separate case to illegally reentering the United States. Mejia-Rangel faces a maximum penalty of 10 years in federal prison for illegal reentry and a mandatory, consecutive two-year prison sentence for aggravated identity theft. His sentencing hearing is set for January 23, 2018.  

 

According to court documents, Mejia-Rangel, who has been previously deported from the United States at least four times, used a California man’s name, birth certificate, and Social Security number to apply for a state of Florida identification card and driver license. Upon his arrest for domestic battery in July 2017, Mejia-Rangel presented himself under the California man’s identity. He also admitted to using the identity to avoid detection from federal immigration authorities.

 

This case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Frank Murray.

Jacksonville, Florida –United States Attorney Maria Chapa Lopez announces that Jason Dixon (32, Palm Coast) today pleaded guilty to distributing “crack” cocaine and possessing a firearm as a convicted felon. He faces up to 30 years in federal prison. A sentencing date has not yet been set.

 

According to the plea agreement, Dixon provided crack cocaine to a confidential informant (CI) and an undercover ATF agent on multiple occasions. He bragged about his access to firearms and told the CI and the agent that he could sell them a gun “with no bodies on it.” During a meeting on June 30, 2017, Dixon sold the undercover agent a semi-automatic pistol and 47 rounds of ammunition. 

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

 

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

         

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

 

 

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Tyree Alexia Hall (27, Jacksonville) today pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.

 

According to court documents, at around 2 a.m. on March 19, 2017, officers from the Jacksonville Sheriff’s Office responded to a 911 call in a residential neighborhood involving Hall. Callers reported that Hall was holding a firearm and knocking on the window of a home, and that he had threatened to shoot a dog. Upon arriving at the location, two officers observed Hall standing in the road holding a dark object. After shining a light on him, the officers observed Hall drop the object in the street. Hall was apprehended and admitted to the officers that he had possessed a firearm. The gun was recovered and identified as a Ruger .38 caliber revolver.

 

Hall was previously convicted in 2010 and 2012 for possession of cocaine and burglary with assault or battery, respectively. As such, he is 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 Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

 

Orlando, FL – U.S. District Judge Carlos E. Mendoza today sentenced Trayone Lefferio Bell (42, Titusville) to 14 years and 6 months years in federal prison for one count of fraudulent possession of access devices, two counts of theft of government money, and three counts of aggravated identity theft. As part of his sentence, the Court also entered a money judgment in the amount of $266,769, and ordered him to pay $823,797 in restitution.   

 

A federal jury found Bell guilty on October 11, 2017.

 

According to court documents and evidence presented at trial, Bell possessed the stolen names, dates of birth, and Social Security numbers of hundreds of victims. He then used that information to file false federal tax returns and requested that the refunds be issued via prepaid debit cards in the victims’ names. Bell obtained more than 100 such cards and used them to make a series of large cash withdrawals and purchases.

 

This case was investigated by the St. Cloud Internal Revenue Service-Secret Service Financial Crimes Task Force, which includes the Internal Revenue Service - Criminal Investigation; the U.S. Secret Service; the St. Cloud Police Department; the Osceola County Sheriff’s Office; the Brevard County Sheriff’s Office; the Palm Bay Police Department; the Casselberry Police Department; the Kissimmee Police Department; the Winter Park Police Department; and the Maitland Police Department. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.

 

Brandon Clint Russell, 22, of Tampa, Florida, was sentenced today to five years in federal prison for possessing an unregistered destructive device and for unlawful storage of explosive material.  Russell pleaded guilty on Sept. 27, 2017.  

Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Eric W. Sporre of the FBI’s Tampa Division, and Tampa Police Chief Brian Dugan made the announcement.  The sentence was issued by Senior U.S. District Judge Susan Bucklew.

“Russell, an active and founding member of a neo-Nazi group, was sentenced today by a federal judge after he unlawfully possessed and stored dangerous explosive materials in his home,” said Acting Assistant Attorney General Boente.  “This case is but one example of the National Security Division’s resolve to identify, disrupt and prevent terrorist threats, whether domestic or international.”

“I am thankful for the great collaboration and coordination among our law enforcement partners in bringing this case forward,” said U.S. Attorney Chapa Lopez.  “Their quick response and in-depth investigation has resulted in a successful prosecution.”

“This investigation exemplifies the close working relationship between Tampa area federal, state and local law enforcement agencies and highlights the importance of collaboration in diffusing potential threats to our community,” said Special Agent in Charge Sporre.  

“This is the kind of case where our collaboration and close working relationships serve the public well,” said Police Chief Dugan.  “We’re grateful to our federal partners for this successful investigation and prosecution.”

According to court documents and evidence presented at the sentencing hearing, on May 19, 2017, officers from the Tampa Police Department responded to a double homicide at an apartment in the Tampa Palms area where Russell had been living with the alleged shooter, Devon Arthurs, and the two deceased victims.  According to Arthurs, the four roommates were active members of the “Atomwaffen,” a neo-Nazi group that was started and led by Russell.  Arthurs also claimed to have seen Russell participating in online neo-Nazi chat rooms, where he threatened to kill people and bomb infrastructure.  Arthurs further advised law enforcement that Russell had explosive materials in the house.

During a search of the residence, law enforcement officers discovered a cooler in the garage containing the explosive HMTD (Hexamethylene Triperoxide Diamine), along with various other explosive precursors, multiple pounds of ammonium nitrate, nitro-methane, empty shell casings, fuses and electric matches in close proximity.  

In Russell’s bedroom, officers found neo-Nazi and white supremacist propaganda, including a framed picture of Timothy McVeigh on his dresser.  Russell’s closet contained his own military uniform, firearms and ammunition, and camouflage military-type gear containing the name and symbols of “Atomwaffen.”  Law enforcement officers also located various books, military gear and flags throughout the apartment that are commonly associated with white supremacist extremist organizations. 

Upon questioning, Russell admitted that he had manufactured the HMTD located in the garage and that the explosive precursors belonged to him.  He also admitted to being a member of the “Atomwaffen.”  The following day, Russell was arrested on federal criminal charges in Key Largo, where he was found with two long rifles and ammunition that he had purchased after leaving the Tampa area.   
   
This case was investigated by the FBI and the Tampa Police Department.  This case was prosecuted by Assistant U.S. Attorneys Josephine W. Thomas and Daniel A. George of the Middle District of Florida, with assistance from Trial Attorneys Joshua D. Champagne and Thomas E. Brzozowski of the National Security Division’s Counterterrorism Section. 

Tampa, FL – Senior U.S. District Judge Susan Bucklew today sentenced Brandon Clint Russell (22, Tampa) to five years in federal prison for possessing an unregistered destructive device and for unlawful storage of explosive material. He pleaded guilty on September 27, 2017. 

 

U.S. Attorney Maria Chapa Lopez, Acting Assistant Attorney General for National Security Dana J. Boente, Special Agent in Charge Eric W. Sporre of the FBI’s Tampa Division, and Tampa Police Chief Brian Dugan made the announcement. 

 

“I am thankful for the great collaboration and coordination among our law enforcement partners in bringing this case forward,” said U.S. Attorney Chapa Lopez. “Their quick response and in-depth investigation has resulted in a successful prosecution.”

 

“Russell, an active and founding member of a neo-Nazi group, was sentenced today by a federal judge after he unlawfully possessed and stored dangerous explosive materials in his home,” said Acting Assistant Attorney General Boente.  “This case is but one example of the National Security Division’s resolve to identify, disrupt and prevent terrorist threats, whether domestic or international.”

 

“This investigation exemplifies the close working relationship between Tampa area federal, state and local law enforcement agencies and highlights the importance of collaboration in diffusing potential threats to our community,” said Eric W. Sporre, Special Agent in Charge of the FBI Tampa Division.

 

“This is the kind of case where our collaboration and close working relationships serve the public well,” said Tampa Police Chief Brian Dugan. “We’re grateful to our federal partners for this successful investigation and prosecution.”

 

According to court documents and evidence presented at the sentencing hearing, on May 19, 2017, officers from the Tampa Police Department responded to a double homicide at an apartment in the Tampa Palms area where Russell had been living with the alleged shooter, Devon Arthurs, and the two deceased victims. According to Arthurs, the four roommates were active members of the “Atomwaffen,” a neo-Nazi group that was started and led by Russell. Arthurs also claimed to have seen Russell participating in online neo-Nazi chat rooms, where he threatened to kill people and bomb infrastructure. Arthurs further advised law enforcement that Russell had explosive materials in the house.

 

During a search of the residence, law enforcement officers discovered a cooler in the garage containing the explosive HMTD (Hexamethylene Triperoxide Diamine), along with various other explosive precursors, multiple pounds of ammonium nitrate, nitro-methane, empty shell casings, fuses, and electric matches in close proximity. 

 

In Russell’s bedroom, officers found neo-Nazi and white supremacist propaganda, including a framed picture of Timothy McVeigh on his dresser. Russell’s closet contained his own military uniform, firearms and ammunition, and camouflage military-type gear containing the name and symbols of “Atomwaffen.” Law enforcement officers also located various books, military gear, and flags throughout the apartment that are commonly associated with white supremacist extremist organizations.

 

Upon questioning, Russell admitted that he had manufactured the HMTD located in the garage and that the explosive precursors belonged to him. He also admitted to being a member of the “Atomwaffen.” The following day, Russell was arrested on federal criminal charges in Key Largo, where he was found with two long rifles and ammunition that he had purchased after leaving the Tampa area.    

  

This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It is was prosecuted by Assistant United States Attorneys Josephine W. Thomas and Daniel A. George, with assistance from Trial Attorneys Joshua D. Champagne and Thomas E. Brzozowski of the National Security Division’s Counterterrorism Section.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Maurice Mervin (41, Jacksonville) to five years in federal prison for conspiring to distribute “crack” cocaine and for possessing a firearm as a convicted felon. The Court also ordered him to forfeit a Dodge Challenger that he had used in his drug business.

Mervin pleaded guilty on July 13, 2016.

 

According to court documents, Mervin lived with his family in a suburban community in southern Duval County. Each day, he commuted more than 20 miles to Jacksonville’s northside to manage and supply crack houses operated by his underlings. In taking down Mervin’s drug ring, special agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives executed multiple search warrants that led to the discovery of a loaded firearm in Mervin’s home, over 100 rounds of ammunition, and equipment and chemicals used to “cook” crack cocaine.  Mervin has a prior felony conviction for possession of cocaine and was therefore prohibited from possessing firearms or ammunition under federal law.

 

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

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) — a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety – one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

 

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announced today that William Marion Patterson, III (49, Jacksonville) has pleaded guilty to receiving child sexual abuse videos and images over the Internet.  Patterson, who was previously employed as a computer security contract worker, faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison.  His sentencing hearing is set for April 26, 2018.      

 

According to court documents, in 2015, the FBI conducted an undercover online child exploitation investigation of an individual using a file sharing network. At that time, this user was the most prolific trader of child pornography in the state of Florida on this network. The user’s IP address traced back to Patterson’s residence. On June 11, 2015, FBI agents and other law enforcement officers executed a search warrant at the home and made contact with Patterson. During an interview, Patterson admitted, among other things, that he had used this file sharing network and that he was responsible for anything found on his computer.  Subsequent forensic analyses revealed that Patterson’s computer media contained approximately 850 videos and 5,390 images depicting children being sexually assaulted. 

 

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

 

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

Tampa, Florida– U.S. District Judge Elizabeth A. Kovachevich has sentenced Jarvis Rodrick Thomas (43, Bradenton) to 17 years and 6 months in federal prison for possessing 500 grams or more of methamphetamine with the intent to distribute it. The Court also ordered him to forfeit a .25 caliber Beretta firearm, seven rounds of ammunition, and $23,486 that are traceable to proceeds of the offense. 

 

Thomas pleaded guilty on September 5, 2017.

 

According to court documents, on June 26, 2016, a deputy from the Sarasota County Sheriff’s Office (SCSO) stopped Thomas in front of a Walgreens for driving with a suspended license. While the deputy was investigating the traffic stop, Thomas threw a black bag out of the car’s window. A short time after his arrest, another SCSO employee found the black bag in the Walgreens parking lot. The bag contained 20 small bags containing 69 grams of methamphetamine and 45 small bags containing 3.8 grams of heroin. Security video from the Walgreens showed Thomas throwing the bag out of the window, into the parking lot.

 

Following Thomas’s arrest, a SCSO detective learned that Thomas might be storing illegal narcotics at his home in Bradenton. SCSO detectives, in coordination with the Bradenton Police Department, executed a search warrant at Thomas’s residence and recovered more than 1,000 grams of methamphetamine, 29 grams of heroin, a loaded .25 caliber Beretta handgun, and $23,486 in cash.

 

This case was investigated by the Drug Enforcement Administration, the Sarasota County Sheriff’s Office, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Shauna S. Hale.

Tampa, FL – In recognition of National Slavery and Human Trafficking Prevention Month, U.S. Attorney Maria Chapa Lopez, Deputy Attorney General Rod Rosenstein, and various Middle District of Florida (MDFL) law enforcement executives highlighted recent human trafficking prosecutions in the MDFL during a presentation in Tampa today.

In 2017, the United States Attorney’s Office, in partnership with numerous federal, state, and local agencies, brought charges against individuals for human trafficking where victims, including minors, have been forced to commit commercial sex acts and engage in sex tourism.

“Investigating and prosecuting human trafficking remains a priority for our district,” stated U.S. Attorney Chapa Lopez. “In order to tackle this problem, we must continue to collaborate with our law enforcement and other partners to bring human traffickers to justice and assist trafficking survivors.”

 

MDFL Human Trafficking Case Highlights

 

U.S. v. Rowy Vasquez – Vasquez (27, Altamonte Springs) provided a 14-year-old girl, who had run away from home, with a cellphone so that she could post advertisements for prostitution services online and communicate with potential customers. He also set the prices for her sex acts and kept all of the proceeds. Vasquez pleaded guilty to sex trafficking a minor and was sentenced to 30 years in federal prison.

 

U.S. v. Abdhullah Hamidullah – Hamidullah (44) lured a young woman to travel to Florida on false pretenses, then forced her to engage in commercial sex acts with multiple customers a day for several months, and provide him the proceeds. He isolated her in his apartment, took away her money and phone, and installed an alarm without providing her the code. He also assaulted her, showed her his handgun, and branded her with a tattoo in the course of compelling her to prostitute for his profit. Hamidullah pleaded guilty to sex trafficking and to enticing and transporting individuals for prostitution. He was sentenced to 40 years and 2 months in federal prison. He was also ordered to pay $1.179 million in restitution to his victims.

 

U.S. v. Gary Paul Moorman – Moorman (35, Cincinnati, OH) systematically and violently abused multiple victims and induced them, against their wills, to travel between Florida, Ohio, and elsewhere to commit acts of prostitution. He took provocative photos of the victims and posted prostitution advertisements online. After the victims were forced to provide the sex acts, Moorman demanded and took all of the proceeds for himself. Moorman pleaded guilty to inducement to travel to engage in criminal sexual activity and was sentenced to 20 years in federal prison.

 

U.S. v. Michael Gallon, U.S. v. Kavin Carter, U.S. v. Thomas Carr – Gallon (52, Lakeland) recruited minor and adult women to travel and work at “parties” and “VIP rooms” as “models,” where customers paid to have sex with them. Gallon partnered with Carter (42, Lake City), who co-hosted parties at his home, and they charged the women to use the “VIP” rooms and kept most of the money the women had earned. Carr (50, Jacksonville) was identified as one of Gallon’s regular customers. Gallon would call Carr when he had girls available and the two would meet so that Carr could select girls to take back to his home. Gallon pleaded guilty to sex trafficking a minor and distributing child pornography and was sentenced to 33 years and 9 months in federal prison. Carter pleaded guilty to sex trafficking and was sentenced to 16 years in federal prison. A federal jury in Jacksonville found Carr guilty of using underage girls to engage in sexually explicit conduct for the purpose of producing child pornography. He is scheduled to be sentenced on January 23, 2018.

 

U.S. v. Xavier Villanueva, Jose Carmona, Ashley Barnett, and Keith Romby – Orlando residents Villanueva (28), Carmona (24), Barnett (28), and Romby (27) agreed to recruit and entice a 14-year-old girl to engage in commercial sex acts. Over a period of nine days, they used drugs, intimidation, and physical restraint to cause the minor to engage in prostitution with customers they solicited online. The minor ultimately escaped from the house where she was being held captive. Villanueva, Carmona, and Romby were part of the “Nine Trey Billy Bad Ass” gang, which is affiliated with the “Bloods” street gang. A federal jury found Villanueva, Carmona, and Barnett guilty of conspiracy to commit sex trafficking of a minor. Carmona and Barnett were also found guilty of aiding and abetting each other in the commission of the offense. Romby pleaded guilty to both charges. Villanueva was sentenced to 19 years and 7 months in federal prison; Carmona was sentenced to a term of 12 years and 6 months; Barnett was sentenced to 10 years’ imprisonment; and Romby was sentenced to 8 years and 4 months in federal prison.

 

U.S. v. Maurice Williams and Antawan Hudson – Tampa brothers Williams (32) and Hudson (27) worked together to post online prostitution ads for underage females and then transported the girls throughout central Florida to have sex with customers. After the victims had sex with the customers, Williams and Hudson took some or all of the money and, in exchange, offered the victims drugs, alcohol, and beauty appointments. Hudson pleaded guilty to sex trafficking minors on the first day of trial and was sentenced to 30 years in federal prison. A federal jury found Williams guilty of child sex trafficking and possessing child pornography; he was sentenced to 40 years in federal prison.

 

U.S. v. Kennedy Harris, Jr. – Harris (24, Cocoa) took in a 16-year girl, after she ran away from home. He took sexually suggestive photographs of the girl and advertised her for sex on Backpage.com. He also enticed the victim to engage in sexually explicit conduct for the purpose of photographing her. Over the course of approximately two weeks, the teen had sex with up to eight individuals per day, and gave the money to Harris. In exchange for her sex acts, Harris gave the girl crack cocaine nearly every day. The victim was recovered by the Cocoa Police Department. A federal jury found Kennedy guilty of sex trafficking a child and producing child pornography. In May 2017, he was sentenced to 30 years in federal prison.

 

U.S. v. Alysia Algere – Algere, a/k/a “Coco” (30, Tampa), recruited two boys and a girl, who were between 14 and 16 years of age, to engage in commercial sex acts. She took sexually explicit photos of the teens and posted advertisements on online, selling them for sex. After pleading guilty, she was sentenced to 15 years in federal prison for sex trafficking.

 

U.S. v. Devin Pemberton – Pemberton (40, Tampa) recruited adult and minor women, via the Internet, to work for his “escort” business. Law enforcement identified multiple women, including at least three minors that he had trafficked. Pemberton recruited his victims and took photographs of them in sexually explicit clothing. He posted the photos online, scheduled clients for them to meet with, and provided housing and hotel rooms for the sex acts. He then took the proceeds from the sex acts.  Pemberton was sentenced to 17 years and 6 months in federal prison.   

 

U.S. v. Nathan Madsen – Madsen (37, Tampa), a music professor at the University of Tampa, was sentenced to nearly 18 years in federal prison for enticing a child to produce child pornography, and for possessing child pornography. Madsen responded to an online ad for prostitution services posted by Homeland Security Investigations. He requested and negotiated the price to have sex with a 14-year-old-girl. In an attempt to verify the existence of the minor, Madsen asked for her picture, spoke to her on the phone, withdrew money from the ATM, drove to the designated location, and met with an undercover special agent. Madsen paid the agent $140 to have sex with the teen. After his arrest, law enforcement determined that Madsen had engaged in a series of sexually explicit online conversations with a 16-year-old girl and had persuaded her to produce explicit images and videos for his personal benefit. At the time of his arrest, Madsen had 61 images and 14 videos of the girl, at least some of which depicted violence.

 

 

Tampa, Florida – Chief U.S. District Judge Steven D. Merryday today sentenced Patrick D. Cummings (43, Pinellas County) to 27 years in federal prison for interference with commerce by robbery and brandishing a firearm during a crime of violence. He pleaded guilty to the robbery count on July 26, 2017. Following a bench trial on November 28, 2017, Chief Judge Merryday found him guilty of the firearm offense.

 

According to court documents, at approximately 4:09 a.m. on March 24, 2017, Cummings entered a Walgreens in St. Petersburg. He pressed a black handgun against a cashier’s back, demanded all of the money from her register, and repeatedly threatened to shoot her. He then stole approximately $374 and fled. Investigators traced fingerprints left at the scene to Cummings.

 

This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives as part of the St. Petersburg Violent Crime Reduction Initiative. It was prosecuted by Assistant United States Attorney Christopher F. Murray.

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Jacksonville, FL – United States District Judge Brian Davis today sentenced Justin Pennington (30, St. John’s County), Marcelene M. Keesbury (54, Ft. Wayne, Indiana), and Charles M. French (50, Ft. Wayne, Indiana) for their roles in a multi-million dollar conspiracy. Pennington was sentenced to five years and five months in federal prison and ordered to pay $4,075,000 in restitution. Keesbury and French were both sentenced to three years and five months’ imprisonment and were also ordered to pay $4,075,000 in restitution. A federal jury found Pennington guilty in April 2017.  Keesbury and French pleaded guilty in October 2016.

 

According to evidence presented at trial, while Pennington was employed as an Information Technology Director at The Wholesale House, an Ohio-based company with offices in Jacksonville, he and his co-conspirators created a fraudulent company, 3 Kings, LLC. 3 Kings was incorporated in Delaware in an attempt to conceal the identity of the owners who purchased products from The Wholesale House at or near cost and then resold those products to consumers and retailers. Unbeknownst to the owners of The Wholesale House, 3 Kings illegally competed with The Wholesale House’s customers and thereby caused significant financial difficulties for the company’s legitimate customers. In all, 3 Kings purchased nearly $40 million of products from The Wholesale House and never paid the entirety of its bills owed to them. Instead, Pennington and his co-conspirators spent tens of thousands of dollars themselves, with Pennington incurring credit card balances of up to $100,000 per month, while owing his employer millions of dollars.

 

During the trial, Pennington’s co-conspirators testified that he was the mastermind of the scheme, created detailed proposals, named the corporation, incorporated the company, and controlled the corporation’s bank accounts. Further, The Wholesale House owners testified that they had personally infused more than $7 million into the company to ensure its survival and to protect the jobs of the company’s more than 60 employees. 

 

"The subjects in this case developed a sophisticated scheme to deceive a local business owner using a competing business," said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. "Incidents of fraud, like this, are not victimless crimes. The FBI is dedicated to working closely with government and private entities to track down and stop scams in an effort to protect the business community."

 

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Mark Devereaux.