Middle District of Florida
Press releases recorded for this federal judicial district.
Gulf Cartel Drug Broker Convicted at TrialRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Juan Escudero (36, Weslaco, Texas) guilty of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine and 500 grams or more of cocaine; and distributing and possessing with intent to distribute 500 grams or more of methamphetamine and 500 grams or more of cocaine. He faces a mandatory minimum sentence of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for November 17, 2017.
Escudero was indicted on November 29, 2016.
According to evidence presented at trial, Escudero brokered a deal on behalf of the Gulf Cartel to mail approximately one kilogram of methamphetamine and one kilogram of cocaine from Texas to Tampa. Unbeknownst to Escudero, he sent those drugs to a confidential source (CS) of the Drug Enforcement Administration (DEA). DEA agents intercepted the package of drugs, which Escudero believed had been delivered. Escudero then instructed the CS to pay for the drugs by depositing money into his wife’s and others’ bank accounts. Escudero also sent a money courier from Texas to pick up $30,000 from the DEA source. When the courier met the undercover detective to retrieve the money, he was arrested. Escudero subsequently sold additional methamphetamine to an undercover DEA agent over several additional months.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Taylor G. Stout and Christopher Murray.
Palm Harbor Oncologist Sentenced to Nearly Six Years for Treating Patients with Unapproved Cancer DrugsRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced D. Anda Norbergs to 5 years and 10 months in federal prison for receipt and delivery of misbranded drugs, smuggling goods into the United States, health care fraud, and mail fraud. As part of her sentence, the Court also entered a money judgment in the amount of $848,671.19, the proceeds of the criminal conduct. A federal jury found Norbergs guilty on November 18, 2016.
According to testimony and evidence presented during the nine-day trial, Norbergs, a licensed physician in Florida, was the head doctor, owner, and operator of East Lake Oncology (“ELO”), a cancer treatment clinic located in Palm Harbor. Beginning in at least May 2009, she ordered, and directed others at ELO to order, drugs from foreign, unlicensed distributors, including Quality Specialty Products (“QSP”). The drugs sold to ELO by QSP and other foreign, unlicensed distributors were not FDA-approved. In fact, QSP had reportedly sold counterfeit versions of a chemotherapy medication that did not have the key ingredient in the drug. Norbergs learned of this news from other sources yet continued to have QSP drugs administered to patients. When QSP shut down, Norbergs switched to buying drugs from another foreign, unlicensed distributor. Many of the drugs were shipped directly to ELO from a location outside the United States, usually from the United Kingdom. The packaging and documents shipped with the drugs showed that they were manufactured and packaged for distribution in foreign countries, such as Turkey, India, and Germany.
Unbeknownst to patients, these misbranded drugs were then administered at ELO. After administering these drugs to patients, ELO submitted claims for reimbursement to Medicare. In submitting those claims, Norbergs falsely represented that the FDA-approved versions of the drugs had been administered, when she knew that unapproved and misbranded versions had been given to patients. In so doing, Norbergs intended to generate profits from the difference between the Medicare reimbursement rates for the FDA-approved drugs and the discounted prices of the misbranded versions of those drugs purchased from foreign distributors.
This case was investigated by U.S. Department of Health and Human Services – Office of Inspector General and the U.S. Food and Drug Administration. It was prosecuted by Assistant United States Attorneys Adam M. Saltzman and Jay Trezevant.
Heroin Traffickers Sentenced to Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Darrell Bryant (48, Jacksonville) and Roshawn Anderson (34, Atlanta) each to six years in federal prison for conspiracy to distribute heroin.
Bryant pleaded guilty on December 13, 2016. Anderson pleaded guilty on January 24, 2017.
According to court documents, in August 2016, Bryant and Anderson arranged to sell almost a kilogram of heroin to an individual in Jacksonville. Bryant brokered the deal locally and Anderson brought the heroin from Georgia. On August 31, 2016, while driving to deliver the heroin, Bryant and Anderson were stopped on Norwood Avenue, near I-95, by troopers from the Florida Highway Patrol who were working with the Drug Enforcement Administration. Anderson attempted to flee on foot but troopers caught up with him. He had approximately one kilogram of heroin hidden on his person.
This case was investigated by the Drug Enforcement Administration, with assistance from the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Frank Talbot.
St. Augustine Man Pleads Guilty to Accepting Illegal Kickbacks in Exchange for Nearly $180,000Read the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that Vernon Stroman (40, St. Augustine) has pleaded guilty to violating the anti-kickback statute. He faces a maximum penalty of five years in federal prison.
According to the plea agreement, Stroman was a marketer and consultant for Wellness Pharmacy in St. Augustine. In this role, he was responsible for finding patients that had TRICARE insurance and could be referred to the pharmacy. Beginning on January 27, 2015, Stroman referred his parents to the pharmacy and provided them with prescriptions for several creams – including a “scar/post-op” cream and a “general pain/inflammation” cream. Neither of his parents had received a physician order attesting to the medical necessity of the cream. By submitting the prescriptions to Wellness Pharmacy, Stroman knew that the pharmacy intended to fill the prescriptions and submit claims for reimbursement.
Approximately one week after Stroman submitted the prescriptions to the pharmacy, he picked up the creams and purportedly paid the $102.00 in copayments. Stroman later admitted that he never paid these copayments; instead, he received $3,000.00 for “consulting services.” In total, from February to May 2015, Stroman received $50,461.75.
As a result of Stroman’s actions, Wellness Pharmacy submitted 18 claims for reimbursement for his parents. TRICARE paid Wellness Pharmacy a total of $178,193.40 for these prescriptions.
This case was investigated by the Federal Bureau of Investigation and the Defense Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Jason Mehta.
Miami Man Sentenced for Participation in Statewide Identity Theft RingRead the Press Release
Orlando, Florida – U.S. District Judge Carlos Mendoza has sentenced Angel N. Rodriguez (39, Miami) to four years in federal prison for aggravated identity theft and conspiracy to commit access device (credit card) fraud. He pleaded guilty on May 18, 2017.
According to court documents, Rodriguez and his co-conspirators used stolen identification information to obtain credit at retail stores throughout central Florida. When Rodriguez and others were arrested in late 2014, they were found in possession of 6 fake Florida driver licenses, 8 credit cards obtained using the fake licenses, folders with the personal information of identity theft victims, and 21 large items purchased through fraud - including washers, dryers, and refrigerators. In total, the group purchased more than $80,000 in merchandise using stolen identities in 2014 and early 2015.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Nathan W. Hill.
Convicted Sex Offender Sentenced to 18 Months in Prison for Illegal Reentry, Failure to RegisterRead the Press Release
Tampa, Florida – Senior U.S. District Judge Susan C. Bucklew has sentenced Victoriano Ruyan-Juarez (36), a Guatemalan national, to 18 months in federal prison for illegal reentry after deportation for a felony, and for failure to register as a sex offender, as required by the Sex Offender Registration and Notification Act.
Ruyan-Juarez pleaded guilty on April 27, 2017.
According to court documents, in April 2014, Ruyan-Juarez was convicted in Manatee County for traveling to entice a child to commit a sex act, as well as using a computer to do the same. Following the completion of his state sentence in February 2015, immigration officials deported him to Guatemala. He illegally reentered the United States in August 2015, settling in Florida, but he failed to register as a sex offender as required by state and federal law.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and the U.S. Marshals Service. It was prosecuted by Assistant United States Attorney Frank Murray.
Bradenton Man Pleads Guilty to Firearm and Drug Trafficking Related OffensesRead the Press Release
Tampa, Florida– Acting United States Attorney W. Stephen Muldrow announces that Anthony Sanchez (25, Bradenton) today pleaded guilty to possessing with intent to distribute carfentanil and possessing a firearm in furtherance of a drug-trafficking crime. He faces a mandatory minimum penalty of five years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Sanchez sold an undercover agent a stolen Sig-Sauer 9mm caliber pistol and ammunition at the Desoto Square Mall, in Bradenton, Florida. He also sold the agent 10.85 grams of carfentanil. During the sale, Sanchez possessed a loaded .22 caliber revolver.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Frank Murray.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Naples Couple Indicted for Smuggling FirearmsRead the Press Release
Fort Myers, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Miguel Jiminez Borda (38) and Alejandra Maria Mayo (34), both of Naples, with two counts of attempting to smuggle firearms from the United States to Bolivia. If convicted, each faces a maximum penalty of 10 years in federal prison per count. The indictment also notifies the couple that the United States intends to forfeit the firearms that they attempted to smuggle.
According to court documents, on June 27 and 28, 2017, Jiminez Borda and Mayo paid nearly $6,000 in cash to ship five boxes from the United States to Bolivia. The couple provided Federal Express with a fictitious sender name and labeled the box contents as “documents.” Federal agents searched the boxes and found more than 15 firearms hidden within hardened foam insulation, many of them AK-47 and AR-15 type weapons. The couple has allegedly shipped an estimated 50 such boxes to Bolivia since August 2016.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It will be prosecuted by Assistant United States Attorney Michael V. Leeman.
New York Man Pleads Guilty to Multi-State Biodiesel Fraud SchemeRead the Press Release
Orlando, FL – Andre Bernard, of Mount Kisco, New York, pleaded guilty today for his participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits, announced Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney W. Stephen Muldrow.
According to his plea, Bernard conspired with Thomas Davanzo, of Estero, Florida, Robert Fedyna, of Naples, Florida, and Scott Johnson of Pasco, Washington in a scheme to defraud biodiesel credit (known as “RIN” credits) buyers and U.S. taxpayers. The conspiracy involved having Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia, generate fraudulent RINs and tax credits multiple times on the same material.
Bernard and his co-conspirators operated several shell companies that claimed to purchase and sell the renewable fuel. The co-conspirators also cycled the funds through these shell companies’ bank accounts to perpetuate the fraud scheme and conceal its proceeds.
From March 2013 to March 2014, the co-conspirators generated at least 60 million RINs that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities. The co-conspirators received at least $42 million from the sale of these fraudulent RINs to third parties. In addition, Gen-X received approximately $4,360,724.50 in false tax credits for this fuel.
This case was investigated by the U.S. Secret Service, the Environmental Protection Agency Criminal Investigation Division, and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Sara C. Sweeney of the Middle District of Florida and Trial Attorney Adam Cullman of the Environment and Natural Resources Division of the Department of Justice.
Former Ft. Myers Housing Director Pleads Guilty to Embezzling ThousandsRead the Press Release
Fort Myers, Florida – Acting United States Attorney W. Stephen Muldrow announces that Twaski Jackson (38, Lee County) today pleaded guilty to a two count information charging him with stealing and embezzling thousands of dollars from the City of Fort Myers Housing Authority and the Lee County Housing Authority. Both agencies receive federal funds to further their mission of providing affordable housing to low income families. Jackson faces a maximum penalty of 10 years in federal prison for each count. A sentencing date has not yet been set.
According to the
plea agreement , Jackson served as the Director of Client Services for both housing authorities from 2012 until 2016. As part of his position, he had the authority to approve credit card disbursements and checks written on behalf of the agencies. Jackson used that authority to approve expenditures that benefited himself and his friends. Various personal charges were made, including payments of his own college tuition and personal trips. He also improperly paid a “vendor” (actually Jackson’s friend) who performed no services for the agencies, without authorization. The two then split the money.Over a three-year period, Jackson bilked the agencies for over $86,000. Jackson’s plea agreement requires him to forfeit the proceeds of his crime and to repay his victims.
This case was investigated by the U.S. Department of Housing and Urban Development. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.
Tampa Investment Scheme Mastermind Sentenced to More Than Nine Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore today sentenced Anthony J. Klatch II (36, previously of Tampa) to nine years and seven months in federal prison for wire fraud. The Court also ordered that he serve this sentence consecutive to a 39-month sentenced imposed in December 2016, in the Southern District of Florida for access device fraud and identity theft. Klatch also must pay $516,754.94 in restitution to the victims of his investment scheme.
According to court documents, in or around 2011, Klatch pleaded guilty to federal charges of conspiracy, securities fraud, wire fraud, and money laundering in the Southern District of Alabama. In December 2014, after his release from federal prison, he began serving a term of supervised release in Tampa.
While on supervised release, Klatch directed the establishment of and controlled a company called Assurance Capital Management, LLC (“ACM”) and maintained a bank account opened in that name. Between June 2015 and September 2015, Klatch used ACM to represent to investors and potential investors that ACM was a company with over $18 million in client assets under management and that ACM and those working for ACM engaged in profitable online stock trading on behalf of its investors. In truth, ACM was a shell company used by Klatch to induce and defraud investors.
In executing his scheme, Klatch would often disguise his true identity and tell investors that his name was “Larry Heim,” ACM’s fund manager. Klatch, often posting as “Larry Heim,” provided investors and potential investors false and fraudulent financial statements and other investment materials showing that ACM was profitable and had more than $18 million in online trading accounts and that its funds were profitably traded. In reality, ACM had few if any funds “under management,” and the funds ACM did have were either lost by Klatch during trading or used by him for personal expenditures. In total, Klatch defrauded investors out of more than $516,000.
In early 2016, while serving a nine-month sentence for violating his supervised release in the Alabama case, but before being charged in this case, Klatch absconded from a halfway house. He was rearrested approximately six months later in Miami. At the time of his arrest, he had approximately eight stolen identities in his possession that he had used to generate counterfeit credit cards to purchase such things as luxury automobiles and resort memberships.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Commodities Futures Trading Commission. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Orlando Men Plead Guilty to Armed RobberyRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that Julis Denson (Orlando, 30), Marquis Denson (Orlando, 31), Capree Patterson (Orlando, 26), Alvin Kendrick (Orlando, 42), and Isaac Tolbert (Orlando, 38) have pleaded guilty to robbery and brandishing a firearm in relation to the robbery of a Cash America Pawn store in Orlando. In addition to the armed robbery, Marquis Denson has also pleaded guilty to being a felon in possession of a firearm. Each faces a maximum penalty of life in federal prison. The sentencing dates have not yet been set.
According to the plea agreement, on December 7, 2016, Kendrick drove Marquis Denson, Julis Denson, Patterson, and Tolbert to the Cash America Pawn store in the Pine Hills area of Orlando. Marquis Denson took a .45 caliber pistol into the store, brandished it, and demanded that the employees empty the cash registers. Meanwhile, Patterson used a sledgehammer to break the glass display cases so that he, Julis Denson, and Tolbert could take the jewelry. Shortly after, Marquis Denson, Julis Denson, Patterson, and Tolbert exited the store with 99 pieces of jewelry, worth nearly $35,000, and $949 cash. They then jumped into the car that Kendrick had waiting and fled to a home several miles away. Law enforcement officers arrived at the home shortly after and arrested Patterson and Marquis Denson as they fled on foot. The remaining individuals were arrested several days later.
This case was investigated by the Orange County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
Orlando Man Charged with Two Counts of Enticement of A MinorRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Andy William Bosch (42, Orlando) with two counts of enticement of a minor. If convicted, he faces a minimum mandatory sentence of 10 years, up to life, in federal prison.
According to the indictment, between March 10 and March 16, 2016, Bosch enticed a minor to travel from the Philippines to the United States to engage in sexual activity. Then, from October 20, 2016, to February 15, 2017, he used a cellphone to coerce the same minor into engaging in sexual activity. Bosch also has pending state charges for interference of custody and providing false information to a law enforcement officer, stemming from the same alleged incident.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Border Patrol, U.S. Citizenship and Immigration Services, with assistance from the U.S. Marshals Service and the Osceola County Sheriff’s Office. It will be prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of Principal Legal Advisor, ICE.
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 Woman Sentenced to Prison for Misbranded Drugs Used in Connection with Buttocks InjectionRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich today sentenced Isabel Colmenares (56, Tampa) to a year and a day in federal prison for receiving misbranded items with the intent to defraud. The Court also ordered her to pay $15,500 in restitution to a victim who suffered adverse medical conditions from the injections.
Colmenares pleaded guilty on October 17, 2016.
According to court documents, in December 2015, Colmenares offered to provide buttocks injections to an undercover officer claiming to use purified hyaluronic acid in the injections. Instead, Colmenares planned to use silicone that she had purchased from an individual who imported it from Colombia, falsely labeling it as “mineral oil” to avoid inspection. Colmenares, who is not licensed in Florida to perform injections on any kind, had previously offered the same silicone injections for money.
This case was investigated by the Food and Drug Administration. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Nassau County Man Arrested and Charged with Transporting Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the arrest of Charles Cory Thornton (36, Yulee) on a criminal complaint charging him with transporting and attempting to transport child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison. His detention hearing is scheduled for August 2, 2017.
According to the criminal complaint, on July 20, 2017, FBI agents executed a search warrant at Thornton’s residence based on suspected online child exploitation activity. Thornton was not at home, but he was located and interviewed later that day at Naval Air Station Jacksonville where he worked as a machinist. During the interview, Thornton admitted, among other things, that he had been searching for child pornography for several years using a particular file sharing program, that he knew that other users were able to download images and videos from his computer, and that he was a “pedophile” and was sexually attracted to children. In subsequent interviews over the next two days, Thornton admitted that he had used a small camera hidden in a digital clock in a bathroom to produce videos of child pornography depicting three children during 2008 and 2009. Agents recovered this camera from Thornton’s home.
This case was investigated by the Federal Bureau of Investigation. 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.
Jury Convicts Three Florida Men for Trafficking Hundreds of Packages of Methamphetamine from California to Florida and GeorgiaRead the Press Release
Ft. Myers, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Brown Laster, Jr. (37, Tampa), also known as “AB” and “Rooster;” Jerry Browdy (44, Riverview), also known as “JB,” “Red,” and “Cuz;” and Wesley Petiphar (30, Davenport), also known as “Wildman,” guilty of conspiracy to distribute more than 500 grams of methamphetamine. Each faces a minimum mandatory penalty of 25 years, up to life, in federal prison. The sentencing hearings are scheduled for October 30, 2017.
According to testimony and evidence presented at trial, Laster, Browdy, and Petiphar were part of a conspiracy to ship kilograms of methamphetamine from Sacramento, California to various hotels in Florida and Georgia via Federal Express. The evidence showed that, throughout 2015, the men had sent approximately 40 packages of methamphetamine through the mail per week. The packages were delivered to coconspirators who had been recruited to wait at the hotels for the packages of methamphetamine to arrive. The packages were then delivered to local drug traffickers. In addition, witness testimony revealed that the men enforced the conspiracy through violence, including one incident where a cooperating witness had a gun placed in his mouth with such force that the gun knocked out some of his front teeth.
This case was investigated by the Drug Enforcement Administration, with assistance from the Lee County Sheriff’s Office, the Charlotte County Sheriff’s Office, the Okeechobee County Sheriff’s Office, the Lowndes County Sheriff’s Office (Georgia), the Placer County Sheriff’s Office (California), the Lakeland Police Department, and the Miami-Dade Police Department. It is being prosecuted by Assistant United States Attorneys Dan Baeza and Mike Leeman.
Tampa Woman Charged with Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Natalie Panko (57, Tampa) was arrested today on a four-count indictment charging her with conspiracy to commit theft of government property, identity theft, and theft of government property. She faces a maximum penalty of five years in federal prison on the conspiracy count and 10 years’ imprisonment on each of the three theft of government property counts. Panko made her initial appearance in federal court today and was released on bond.
According to the indictment, Panko and others knowingly processed debit and credit cards in other people’s names containing federal income tax refunds generated by fraudulent tax returns through Square Inc. accounts. Square Inc. is a merchant processor that provides terminals to businesses to process credit/debit card payments. Panko and others set up Square Inc. merchant accounts related to a restaurant located in the Middle District of Florida. The Square Inc. accounts associated with the restaurant were used to process credit and debit card transactions for both legitimate restaurant-related sales, as well as for tax fraud transactions using prepaid debit cards like Green Dot. After the payments were processed, Square Inc. electronically transferred the funds to bank accounts controlled by Panko and to the accounts of others, where the proceeds were shared with others and used for personal items.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Sarasota Armed Career Criminal Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Johnny Dawson (38, Sarasota) to 15 years in federal prison for possessing a firearm and ammunition as a convicted felon. The Court also ordered him to forfeit the firearm and ammunition seized during his arrest.
Dawson pleaded guilty on April 26, 2017.
According to court documents, on August 7, 2016, law enforcement officers responded to a call reporting an individual who had a firearm wrapped inside of a t-shirt. The responding officer observed Dawson walking away, holding a t-shirt. As the officer approached, Dawson moved the shirt behind his back, and the officer could see the outline of a firearm within the shirt. Dawson then put the shirt down and fled. The officer apprehended Dawson, seized the shirt, and recovered a loaded gun wrapped inside with the hammer cocked back. Dawson later admitted to possessing the loaded firearm. At the time of the offense, Dawson had multiple prior felony convictions and therefore is prohibited from carrying a firearm or ammunition under federal law.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Jamaican Man Convicted of Transporting and Possessing Child PornographyRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Anthony Carl Spence (45, Jamaica) guilty of transporting and possessing child pornography. He faces a maximum penalty of 20 years in federal prison; his sentencing hearing is October 12, 2017.
According to testimony and evidence presented at trial, on February 6, 2017, Spence arrived at the Orlando International Airport from Jamaica with a smartphone. During a routine border search of the phone, agents located a video depicting an adult male sexually abusing a toddler. Later, agents located a second video that depicted a child between the ages of seven and nine engaged in sexually explicit conduct. During an interview with law enforcement, Spence admitted that he had shared the videos with multiple people in Jamaica but claimed that he thought he had deleted the videos before he came to the United States.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
Former Army Staff Sergeant Sentenced in Illegal Kickbacks SchemeRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. has sentenced Cordera Hill (27, Tampa) to 24 months in federal prison for conspiracy and offering to pay and paying illegal kickbacks in connection with a federal health care benefit program. The Court also ordered Hill to forfeit more than $43,830.70, the proceeds traceable to his criminal conduct.
According to evidence presented at trial, in October 2014, Hill, a former member of the United States Army, agreed to become a sales representative for Centurion Compounding, Inc., a marketing firm in Wesley Chapel that utilized sales representatives as independent contractors to market compounded medications, including creams for pain and scars, to TRICARE beneficiaries. These creams had very high reimbursement rates, ranging from approximately $4,000 to $17,000 for a one-month supply. Centurion focused its promotional efforts on TRICARE beneficiaries because they knew TRICARE would pay claims for these compounded creams.
Hill paid, and conspired to pay, TRICARE beneficiaries to go to clinics at, among other places, a cosmetics store in a strip mall. Hill also paid for beneficiaries to fly to Tampa from Colorado and Hawaii for the purpose of visiting clinics to obtain compounding creams. The beneficiaries, who had access to free healthcare on base, would visit the cosmetics store after hours and on weekends to obtain prescriptions. Many of the beneficiaries did not need the creams and discarded them in the trash. Hill received $43,830.70 in commission payments from Centurion for referring TRICARE beneficiaries to doctors to obtain the creams. TRICARE paid out $728,909.82 for claims submitted on behalf of patients that Hill had recruited.
This case was investigated by the Department of Defense, Criminal Investigative Service; the United States Army Criminal Investigation Command, Major Procurement Fraud Unit; the United States Air Force Office of Special Investigations; the Federal Bureau of Investigation; and the U.S. Department of Health and Human Services, Office of Inspector General. It was prosecuted by Assistant United States Attorneys Mandy Riedel, Megan Kistler, Charles D. Schmitz, Simon Eth, and Rachelle DesVaux Bedke.
Armed Robber Pleads GuiltyRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Patrick D. Cummings (44, Pinellas County) has pleaded guilty to interference with commerce by robbery and brandishing a firearm during and in relation to a crime of violence. He faces a maximum penalty of 20 years in federal prison on the robbery charge, followed by a mandatory minimum consecutive prison term of seven years, up to life, on the firearm charge.
According to court documents, at approximately 4:09 a.m., on March 24, 2017, Cummings entered a Walgreens pharmacy in St. Petersburg, pressed a handgun against a cashier, and demanded all of the money from her register. Cummings repeatedly threatened to shoot the cashier. He then stole approximately $374 and ran away.
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 is being 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 - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Owner of Tax Preparation Business Pleads Guilty to Wire Fraud and Making A False ClaimRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that Rigaud Colin (49, Apopka) has pleaded guilty to wire fraud and making a false claim to the United States. He faces a maximum penalty of 25 years in federal prison. A sentencing date has not yet been set.
According to court documents, Colin was the owner and operator of Rigaud Investment Group, Inc., a tax preparation business in Orange County. Using his business, he executed a scheme to defraud the IRS by preparing and filing false and fraudulent income tax returns for residents of the U.S. Virgin Islands who were not eligible to receive tax refunds from the IRS. Specifically, Colin included false and fraudulent addresses and education tax credit claims in tax returns that he electronically filed with the IRS on behalf of the Virgin Islands residents. As a result of Colin’s scheme, the IRS sustained a loss of $1,393,097.
This case was investigated by Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Cincinnati Trafficker Pleads Guilty to Interstate ProstitutionRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Gary Paul Moorman (34, Cincinnati, Ohio) has pleaded guilty to interstate prostitution. Under the terms of the
plea agreement , Moorman will be sentenced to 20 years in federal prison, the statutory maximum penalty for this offense.According to court documents, Moorman systematically and violently abused multiple victims to induce them, against their will, into prostitution for his own financial gain. He also induced the victims to travel between Florida, Ohio, and elsewhere to engage in sexual acts. In furtherance of his criminal activity, Moorman took provocative photos of the victims to post prostitution ads on the Internet. After the victims provided these services, Moorman demanded and took all of the proceeds.
This case was investigated by the FBI - Tampa Division (Pinellas Resident Agency), with support from the St. Petersburg Police Department and the Clearwater Police Department. Substantial assistance was provided by the FBI’s Cincinnati Field Office and the Cincinnati Police Department. The case is being prosecuted by Assistant United States Attorneys Stacie B. Harris and Kristen A. Fiore.
Tampa Man Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – Senior U.S. District Judge James S. Moody, Jr. has sentenced Moses Wilcox to three years and four months’ imprisonment for his role in a stolen identity refund fraud scheme. The Court also entered a money judgment for $129,854.17, the amount of fraudulent income tax refunds that Wilcox had received directly into a bank account in his name.
Wilcox pleaded guilty to conspiracy and theft of government funds charges on February 27, 2017.
According to court documents, the conspiracy involved the filing of false and fraudulent income tax returns in the names of deceased individuals and other unwitting taxpayers. In these returns, the conspirators represented that they were entitled to receive the refunds for those unknowing taxpayers and requested that the IRS direct refunds in varying amounts to accounts that Wilcox and others had established at local financial institutions in their own names. As a result of this activity, the conspirators caused the IRS to issue fraudulent and unauthorized refunds totaling $389,479.07. In addition, the conspirators sought to obtain an additional $562,791.29 in fraudulent refunds that the IRS was able to block before payment was made.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Sex Offender Sentenced to 15 Years for Possessing Child Pornography While on Supervised ReleaseRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Jonathan Pates (28, Rockledge) to 15 years in federal prison for possessing child pornography while on federal supervised release. The Court also ordered him to forfeit the smart watch he used to commit the offense, and to serve 20 years of supervision following his release from prison.
Pates pleaded guilty on April 25, 2017.
According to court documents, on January 6, 2010, Pates was convicted of receiving child pornography and sentenced to 6 years and 6 months in federal prison, followed by 10 years of supervised release. Eight months after his release from federal prison and while on supervised release, Pates obtained a smart watch with an SD card and transferred 3 videos and 76 graphics depicting the sexual abuse of young children to the watch. His probation officer saw him wearing the watch during a sex offender treatment meeting and arranged to inspect it later. Pates abandoned the watch, but two individuals found it discarded in a park and turned it into law enforcement.
“This repeat offender criminal did not learn his lesson after his first prison term for child pornography,” said acting Special Agent in Charge of HSI Tampa Ivan J. Arvelo. “This sentence stops this predator from continuing to cause harm to children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Karen L. Gable.
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 Man Sentenced to Ten Years for Attempted Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Derek Coleman Corker (27, Orlando) to 10 years in federal prison for attempting to entice a minor to engage in sexual activity.
He pleaded guilty on April 25, 2017.
According to court documents, on January 3, 2017, Corker posted an ad for sex on Craigslist that included a graphic photo of himself. An undercover agent responded to the ad, posing as the father of a 13 year-old girl. During their conversations, Corker repeatedly expressed explicit interest in having sex with the “daughter.” He told the “father” during a cellphone conversation that “cute little girls kinda always been a thing I’ve always wanted to try and do.”
On January 4, 2017, Corker traveled to Brevard County to meet the “father” and have sex with the “daughter.” When he arrived at the location, he was arrested. Agents recovered 10 condoms and a cigarette package containing 3 small baggies of marijuana from inside his vehicle. Corker later admitted that he was the one who posted the Craigslist ad.
“This predator tried to harm a child,” said acting Special Agent in Charge of HSI Tampa Ivan J. Arvelo. “HSI special agents, along with our partners at the Brevard County Sheriff’s Office, ensured that instead, he will be behind bars for that crime.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations and the Brevard County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE.
Orlando Man Sentenced to 60 Years for Sexually Exploiting ChildrenRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon, II has sentenced Roy Thomas Phillips (47, Orlando) to 60 years in federal prison for sexually exploiting children. The Court also ordered him to forfeit the electronic devices he had used to commit the offense.
Phillips pleaded guilty on February 10, 2017.
According to court documents, from 2013 until his arrest in 2016, Phillips paid individuals in the Philippines to sexually abuse children and to livestream the abuse over the Internet. Phillips directed the live sexual molestations and recorded screen shots of the abuse from his office in Orlando. During a one-year period, Phillips wire transferred a total of $16,700 to one of the individuals in the Philippines to pay for the live sex acts perpetrated on children. The child victims were between the ages of 3 and 13.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
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.
Four Members of “Manche Boy Mafia” Gang Sentenced in Credit Card Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced four Tampa men to federal prison for engaging in a conspiracy to commit credit card fraud, credit card fraud, and identity theft. Brandon Lewis (22) and Terrance Cobb (22) were each sentenced to 5 years and 1 month in federal prison; Dontae Williams (24, Tampa) was sentenced to a term of 5 years and 10 months; and Davon Smith (21, Tampa) was sentenced to 5 years and 5 months’ imprisonment. The Court also ordered them to pay restitution of $113,490.54, which is traceable to proceeds of the offenses, and for Lewis and Williams to forfeit funds equal to the value of automobiles they purchased with the proceeds from the offenses.
On April 28, 2017, Lewis and Williams pleaded guilty to conspiracy to commit access device (credit card) fraud and aggravated identity theft, while Cobb and Smith pleaded guilty to access device (credit card) fraud and aggravated identity theft.
According to court documents and statements made in court, from at least January 2015 through November 2016, Lewis, Cobb, Smith, and Williams, along with others affiliated with the “Manche Boy Mafia” or “MBM” organization, conspired to commit credit card fraud and identity theft in the Tampa Bay area. Investigators learned that these individuals had purchased stolen credit and debit card account numbers online from various websites, including some that used bitcoins as their currency. The conspirators then purchased or stole reloadable gift cards and scratched off or otherwise damaged the magnetic strips on the back of the cards so that they could not be read by merchants’ point of sale (POS) terminals. The conspirators used an embosser to emboss the stolen account numbers and their own names onto the front of these altered gift cards. In some cases, the conspirators used a label maker to affix the Card Verification Value (CVV) security code associated with the stolen account to the back of the counterfeit cards. The conspirators then used these counterfeit credit cards at various retailers around the Tampa Bay area. When the retailers’ POS terminals could not read the damaged magnetic strips, the conspirators advised the clerks to manually enter the stolen account information embossed on the front of the counterfeit cards to make the purchase. The conspirators typically purchased gift cards and electronics, which they kept or sold for cash.
Investigators determined that these individuals had engaged in hundreds of successful transactions with counterfeit credit cards and had used and possessed thousands of stolen account numbers from individuals across the United States. In total, these individuals were held responsible for more than $600,000 in intended or attempted purchases.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Owner of Tampa Parathyroid Practice Agrees to Pay $4 Million to Resolve False Claims Act AllegationsRead the Press Release
Tampa, FL – Dr. James Norman, the owner and operator of James Norman, MD, PA, a/k/a James Norman, MD, PA Parathyroid Center, d/b/a Norman Parathyroid Center (collectively, Norman) has agreed to pay $4 million to resolve allegations that he violated the False Claims Act by knowingly engaging in various unlawful billing practices with respect to Medicare and other federal health care programs and their beneficiaries.
Specifically, the government alleges that, from April 2008 through December 2016, Dr. Norman submitted fraudulent claims to Medicare, TRICARE, and the Federal Employee Health Benefits Program for pre-operative examinations performed on the day before or the day of surgery, and charged and collected extra fees from federal health care beneficiaries for services for which he had already received payment from the government. These extra fees ranged from $150 to $750 for Florida residents, to $1,750 or more for patients who lived out-of-state. Collectively, Dr. Norman and his practice pocketed hundreds of thousands of dollars as a result of these illicit billing practices.
“Fraudulent billing of the government, while also charging Medicare and other federal health care beneficiaries extra fees for services that the government has already paid for victimizes taxpayers, military veterans, the elderly, and other members of our community, and will not be tolerated,” said Acting U.S. Attorney Muldrow. “This lawsuit and today’s settlement demonstrates our office’s ongoing efforts to safeguard federal health care program beneficiaries from the effects of such illegal conduct.”
In addition to paying $4 million, Norman has also agreed to enter into an integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.
“Physicians who systematically overbill Federal health care programs and their vulnerable patients will be held responsible for this fraudulent behavior,” said Special Agent in Charge Shimon R. Richmond of HHS-OIG. “Those who engage in such schemes can expect a thorough investigation and strong remedial measures such as those in the Integrity Agreement we signed with Dr. Norman.”
The settlement concludes a lawsuit originally filed by a former patient of Dr. Norman, Myra Gross, and her husband, Dr. David Gross, in the United States District Court for the Middle District of Florida. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Act also allows the government to intervene and take over the action, as it did in this case. Ms. Gross and her husband, Dr. Gross, will receive roughly $600,000 of the proceeds from the settlement with Norman.
The government’s action in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida and the U.S. Department of Health and Human Services – Office of Inspector General. It was handled Assistant U.S. Attorney Christopher Tuite.
The case is captioned United States ex rel. Gross, et al. v. James Norman, MD, PA, et al., Case No. 8:14-cv-978-T-33EAJ. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Tampa Woman Indicted on Tax Fraud ChargesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces the arrest and unsealing of an indictment charging Samika Garcia with five counts each of wire fraud and aggravated identity theft in connection with income tax fraud. If convicted on the wire fraud counts, she faces a maximum penalty of 20 years in federal prison for each count, with an additional two-year consecutive sentence for each aggravated identity theft charge.
Garcia was indicted on July 6, 2017, made her initial appearance in federal court yesterday, and was released on bond.
According to the indictment, Garcia electronically filed false and unauthorized tax returns in the names of others claiming fraudulent tax refunds that were deposited on debit cards in those person’s names. In doing so, she unlawfully used those individuals’ personally identifying information (PII), which she tracked using detailed ledgers.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Sanford Man Sentenced to 20 Years in Prison for Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. sentenced Steven A. Morrill (54, Sanford) to 20 years in federal prison and a lifetime of supervised release for attempting to entice a minor to engage in illicit sexual activity. The Court also ordered him to forfeit a cellphone that had been used in furtherance of the commission of the offense.
Morrill was found guilty on April 18, 2017, after a jury trial.
According to the evidence presented during the trial, between November 8, 2016, and November 17, 2017, Morrill engaged in communications with a Federal Bureau of Investigation agent who was acting in an undercover capacity as the father of two minors, 9 and 11 years old. Morrill expressed his intent to engage both minors in illicit sexual activity, and he traveled to a location in Lake Mary to meet the children. As a result, Morrill was arrested and confessed to the crime.
During the sentencing hearing, the judge found that Morrill had engaged in a pattern of prohibited sexual conduct against minors and emphasized the seriousness of Morrill’s intended offense.
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.
Orthopedist and Former Anesthesiologist Convicted of Drug Conspiracy and Alien Smuggling ChargesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury yesterday found Fred Joseph Turner, M.D. (59, Sarasota) and Rosetta Valerie Cannata (60, Osprey) guilty of one count of conspiring to dispense controlled substances for no legitimate medical purpose and outside the usual course of medical practice, four counts of dispensing controlled substances, and one count of conspiring to smuggle an alien into the United States. Each faces a maximum penalty of 20 years in federal prison for each of the controlled substance counts, and up to 10 years’ imprisonment on the alien smuggling charge. A sentencing date has not yet been set.
Turner and Cannata were indicted on July 23, 2015.
According to testimony and evidence presented at trial, from March 2011 through July 2015, Turner, an orthopedist, and Cannata, a former anesthesiologist, operated Gulfshore Pain and Wellness Centre, a pain management clinic with offices in Tampa and Punta Gorda. Turner and Cannata rarely conducted physical or diagnostic examinations of their patients and ignored results of patient drug screens when they prescribed excessive amounts of opiates, including oxycodone, hydrocodone, hydromorphone, and morphine.
During the investigation, several law enforcement officers entered the clinic in undercover capacities as patients. On one occasion, Turner and Cannata asked the undercover agent to smuggle a Hungarian national into the United States. In return, Turner prescribed the agent an increased amount of oxycodone and hydromorphone, and Cannata paid him $5,000 in cash. To justify the increase in prescribed medication, Turner and Cannata instructed the agent to fabricate an injury and walked him through the process of falsifying his patient history.
This case was investigated by Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Carlton C. Gammons and Taylor G. Stout.
Florida Man Sentenced to Twelve Years for Receiving Child Pornography from the Dark NetRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Richard Lueck (62, Satellite Beach) to 12 years and 7 months in federal prison for receiving child pornography. The Court also ordered him to forfeit the electronic devices he had used to commit the offense, and to serve 10 years of supervision following his release from prison.
Lueck plead guilty on April 14, 2017.
According to court documents, the FBI identified Lueck through a nationwide investigation of “Playpen,” a child pornography website that operated as a hidden service on the Dark Net - an area of the Internet only accessible through an encrypted browsing platform. Lueck downloaded child pornography from the illicit site until March 4, 2015, when it was shut down by the FBI. Pursuant to a search warrant, agents seized Lueck’s electronic devices and located 143 images of child pornography. Lueck admitted that he had obtained child pornography from the Dark Net for six years, and that he had used an encrypted browser to conceal his illegal conduct from law enforcement.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
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.
Florida Man Sentenced to Seven Years for Receiving and Possessing Child PornographyRead the Press Release
Tampa, FL – U.S. District Judge Charlene E. Honeywell has sentenced George A. Frampton (63, Brandon) to seven years in federal prison for receiving and possessing child pornography. The Court also ordered him to pay $5,300 in special assessments and to serve 15 years on supervised release following his term of imprisonment.
Frampton pleaded guilty on April 13, 2017.
According to court documents and information presented at the sentencing hearing, Frampton’s offenses involved the receipt and possession of 383 videos of child pornography, some of which involved prepubescent children and sadistic conduct. The offenses were committed in May 2016.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
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.
Texas Man Wanted by Federal Authorities Charged with Credit Card FraudRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return on an indictment charging Jose Carlos Terra Izquierdo (23, Amarillo, TX) with credit card fraud. If convicted, he faces an enhanced penalty of up to 20 years in federal prison and forfeiture of his computer media.
According to the indictment and information presented in court, Izquierdo was in possession of multiple credit card account numbers from Wells Fargo, JP Morgan Chase, Capital One, Citibank, and City Credit Union. He was previously convicted of credit card fraud in 2016 in the District of Nebraska and sentenced to federal prison. As part of his sentence, he was required to turn himself into law enforcement on March 17, 2017, to begin serving his sentence. He was also limited in his ability to travel. In violation of these conditions, Izquierdo traveled to Florida and engaged in credit card fraud. Federal authorities in Nebraska subsequently issued a warrant for his arrest. He faces the enhanced penalty as a result of his prior fraud conviction.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Florida Highway Patrol and the U.S. Secret Service - Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
South Florida Man Charged with Credit Card Fraud and Identity Theft Involving Personal Information from VeteransRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Dwayne Thomas (21, Miami) with one count of credit card fraud and nine counts of identity theft. If convicted, he faces up to 10 years in federal prison for the credit card fraud count and up to 5 years’ imprisonment on each of the identity theft counts.
According to the indictment and information presented in court, Thomas was in possession of multiple credit card account numbers from Bank of America, Wells Fargo, and USAA. He also possessed the Social Security numbers of multiple former members of the military who were receiving healthcare through the Department of Veterans Affairs.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Veterans Affairs – Office of Inspector General Criminal Investigation Division, the United States Secret Service -Jacksonville Field Office, and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Parrish Man Convicted of Retaliating Against A Federal Judge by Attempting to File A False LienRead the Press Release
Tampa, Florida– Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Wayne St. Aubyn Smith (50, Parrish), a/k/a Wayne Smith El-Bey, guilty of attempting to file a false lien against a federal judge. He faces a maximum penalty of 10 years in prison. A sentencing hearing has not yet been set.
Smith was indicted on March 14, 2017.
According to testimony and evidence presented at trial, in May 2015, Smith filed a lawsuit against several New Jersey officials in U.S. District Court in New Jersey, claiming that his constitutional rights had been violated. However, Smith failed to pay the fee required to file a lawsuit in federal court. United States District Judge Jose L. Linares was assigned to the case. Judge Linares issued an order instructing Smith on how to file for indigent status to waive his filing fee and dismissed his lawsuit without prejudice. After several rounds of filings involving Smith claiming that Judge Linares was violating his constitutional rights, Judge Linares denied Smith’s motion to proceed in forma pauperis. Smith and Judge Linares never met in person and had no relationship outside of the court case.
On December 21, 2016, Smith attempted to record three separate liens against several individuals at the Manatee County Clerk’s Office. One of the documents claimed that Judge Linares owed Smith $750,000 for violating his constitutional rights. Furthermore, Smith claimed an interest in all of Judge Linares’s real and personal property and his checking and savings accounts up to the amount of $750,000. The other two documents were liens totaling more than $1 million against the State of Florida and several New Jersey government officials, including Governor Chris Christie. The deputy clerks refused to record the documents.
This case was investigated by the Federal Bureau of Investigation and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Michael Gordon.
Middle District of Florida’s Civil Division Advances Reverse Mortgage Fraud Enforcement Initiative by Resolving Civil Fraud Claims Against Tarpon Springs Condominium Complex OwnerRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces a civil settlement with Alexander Olympus Zarris that resolves alleged violations of the False Claims Act (“FCA”) and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”) through reverse mortgage transactions engineered by Zarris at a Tarpon Springs condominium complex. Zarris will pay $475,000 to address the damage his conduct caused to a lending program overseen by the Department of Housing and Urban Development (HUD). This is the third civil settlement reached in this vital area of civil affirmative enforcement.
“HUD’s reverse mortgage lending program provides critical financial assistance to elderly borrowers in our district,” said Acting U.S. Attorney Muldrow. “This settlement reaffirms our commitment to civil mortgage fraud enforcement.”
“Reverse mortgage” loans provide elderly homeowners with access to the equity in their homes. In general, to be eligible for a reverse mortgage, the youngest homeowner must be at least 62 years old, live in the home as a primary residence, and have sufficient equity in the property.
Reverse mortgages insured by the federal government are called Home Equity Conversion Mortgages (“HECMs”) and are only available through a Federal Housing Administration (“FHA”) approved lender. FHA incentivizes reverse mortgage lending through mortgage insurance. Under FHA’s program, a loan becomes due and payable when the home is sold or vacant for more than 12 months, or upon the death of the homeowner, whichever comes first. The lender is repaid the amount of the loan, including the costs of servicing the loan, and any interest that accrues on lender expenses after a loan becomes due and payable. FHA will reimburse a lender that is unable to recoup the full amount of the loan.
“FHA-backed reverse mortgages are intended to allow elderly homeowners to age in place, not to serve as a vehicle to defraud the federal government,” said Dane Narode, HUD’s Associate General Counsel. “HUD and the Justice Department are working together to protect FHA’s insurance fund and those seniors who depend on reverse mortgages to ease their financial burden.”
From 2008 to 2011, the United States Attorney’s Office and HUD’s Office of Inspector General (“OIG”) investigated Zarris’s practices and concluded that he had improperly obtained the proceeds of federally insured reverse mortgages that, but for his conduct, would not have been underwritten by the lenders. Investigators learned that Zarris had engaged in sales transactions where he concealed the amounts that he had paid to the buyers to artificially inflate the appraised values of condominium complex units. He recruited elderly buyers (over the age of 62) to purchase units at inflated values and, as part of those sales transactions, required them to immediately apply for reverse mortgages in the maximum amount possible. Zarris, or others working with him, would then assist the elderly buyers in applying for reverse mortgages, including filling out their loan applications. The applications submitted on behalf of these buyers failed to disclose certain information that was material to the bank’s decision to underwrite the reverse mortgages. Through these practices, Zarris was able to create the appearance of equity so that the elderly buyers could obtain the reverse mortgages. The proceeds of the mortgages were then wired to a company owned by Zarris at the reverse mortgage closing.
These practices led the FHA program to pay insurance claims on a number of defaulted reverse mortgages, and caused hundreds of thousands of dollars in losses to the United States. The settlement amount is based upon Zarris’s ability to pay and represents a recovery that more than replenishes the amount of the government’s known losses.
“This settlement demonstrates HUD-OIG’s continuing efforts to hold individuals accountable who orchestrate schemes, which victimize America’s seniors through reverse mortgage programs. The United States Department of Housing and Urban Development, Office of Inspector General is deeply committed to collaborating with the Department of Justice to ensure unethical individuals do not manipulate government rules for personal gain,” said Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General.
The settlement announced today with Zarris follows two other major reverse mortgage claim resolutions reached by the Civil Division in the Middle District of Florida. In September 2015, Walter Investment Management Corporation agreed to pay $29.63 million to resolve allegations that its subsidiary, Reverse Mortgage Solutions, Inc. (“RMS”), had violated federal law by not disclosing its failure to meet mandatory deadlines for obtaining an appraisal of the property within 30 days of the loan becoming due and payable. As a result of failing to disclose its non-compliance, RMS received millions of dollars in debenture interest payments from the FHA that it was not entitled to receive. The investigation of RMS stemmed from the allegations in a whistleblower lawsuit filed by a former executive of RMS.
In May 2017, the Middle District of Florida announced an $89 million settlement with another reverse mortgage servicing company, Financial Freedom. That investigation arose from allegations made by a consultant for the estates of borrowers who took out reverse mortgages. Similar to RMS, the United States alleged that Financial Freedom had claimed payments for interest from the FHA that it was not entitled to receive because it had failed to meet various deadlines relating to appraisal of the property, submission of claims to HUD, and pursuit of foreclosure proceedings.
These investigations have been handled by Assistant U.S. Attorney Kyle S. Cohen and the U.S. Department of Housing and Urban Development’s Office of Inspector General.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Jacksonville Man Sentenced to 30 Years for Soliciting, Directing, and Paying for Live Molestation of Children over the InternetRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Justin Laurence McKinley (49, Jacksonville) to 30 years in federal prison for communicating over the Internet with foreign nationals and soliciting the live molestation of children for online viewing. He was also ordered to serve a life term of supervision upon his release and to register as a sex offender.
According to court documents, in 2015, the FBI began an investigation into a website engaging in the exploitation and enticement of children to participate in sexual activity. This investigation also revealed that several individuals in a foreign country were engaged in the molestation of young children for the purpose of broadcasting live streaming “sex shows” to online viewers who paid a fee to watch. These individuals were arrested and McKinley was identified for paying to view these live streams.
Between January 2014 and December 2015, McKinley sent a total of 100 electronic fund transfers, totaling $31,415, to the individuals who molested children in the “sex shows.” On May 18, 2014, an individual engaged in a live video session with McKinley where the individual sexually abused an infant child as McKinley watched. During this live session, McKinley instructed the individual as to what he wanted the individual to do with the baby. Between 2014 and early 2016, McKinley engaged in many other similar online conversations with several foreign nationals.
On May 27, 2016, law enforcement officers executed a federal search warrant at McKinley’s residence and seized computer media containing the abuse videos that he purchased and directed. The child victims depicted in the streaming videos ranged in age from a newborn to an 8-year-old child. Forensic analyses of McKinley’s computer media revealed at least 600 videos and 6,500 images depicting the sexual abuse of children.
“Today’s sentence reflects the horrific nature of this crime,” said Acting U.S. Attorney Stephen Muldrow. “We will continue to prosecute those who prey upon and violate our most vulnerable victims, wherever they are found.”
"This case demonstrates the relentless effort by the FBI Jacksonville Division and our law enforcement partners to identify and stop those who prey on our most valuable asset - our children," said Special Agent in Charge Charles P. Spencer. "We work hand in hand everyday to protect these innocent victims and seek justice for the egregious acts committed against them. Today's 30-year sentence is just one example of our dedication to this work, and the many successes in our partnership."
This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sheriff’s Office, and law enforcement authorities in several other countries. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another 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, 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.
Dark Net Vendor Indicted for Distributing Synthetic Fentanyl That Caused A Fatal OverdoseRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Jeremy Achey (43, Bethlehem, Pennsylvania) with conspiracy to distribute and distribution of controlled substance analogues. If convicted on all counts, he faces a maximum penalty of life in federal prison.
According to court documents, operating under the name “Etiking,” Achey distributed various synthetic substances over the Dark Net, an area of the Internet only accessible through the use of an encrypted browsing platform. In February 2017, a victim in Orange County, Florida died after ingesting tetrahydrofuran fentanyl, a synthetic substance similar to fentanyl, purchased from Achey on the Dark Net.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Nathan W. Hill.
Convicted Felon Sentenced to Fifteen Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Gregory Brown (28, Tampa) to 15 years in federal prison for possessing a firearm as a convicted felon. The Court also ordered him to forfeit a Smith & Wesson model SW40VE .40-caliber pistol and 14 rounds of ammunition traceable to the offense. Brown pleaded guilty on March 21, 2017.
According to court documents, on August 5, 2016, Tampa Police officers conducted a proactive check in the North Boulevard Homes in Tampa. As the officers arrived, they observed a male, later identified as Gregory Brown, start to run, reach into his waistband, and throw a loaded Smith and Wesson firearm behind a building. When interviewed, Brown admitted that the firearm belonged to him. Brown had previously been convicted of at least four felony offenses, including three drug trafficking offenses. As a result of these convictions, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, and Explosives. It was prosecuted by Assistant United States Attorney Rachel K. Jones.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Citrus County Man Sentenced to Three Years in Federal Prison for Making Threats to Use an Explosive DeviceRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced David Wayne Willmott, Jr. (25, Inverness) to three years in federal prison for making threats to use an explosive device. He pleaded guilty on April 18, 2017. This federal sentence will be served consecutively to the six-year sentence imposed in 2016 by the State of Florida for two arsons and a hoax bomb threat in Hernando County.
According to court documents, on three separate dates (November 25, 2014, April 17, 2015, and April 23, 2015), Willmott sent e-mails containing bomb threats to various private and government facilities. The locations targeted in the e-mails included a nuclear power plant, an elementary school, a sheriff’s office, two courthouses, and two airports in central Florida. The investigation revealed that the threats had originated from specific computers at a public library in Citrus County, and that Willmott had been the person using the library computer at the time each of the threatening e-mails was sent.
This case was investigated by the Federal Bureau of Investigation, the Citrus County Sheriff’s Office, and the Polk County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Bookkeeper Sentenced to Federal Prison for EmbezzlementRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Paul Wheeler (34, Tampa) to four years in federal prison for wire fraud. The Court also ordered him to forfeit $848,136.04, which is traceable to proceeds of the offense, and to pay restitution to his victims.
According to testimony and court documents, Wheeler, a bookkeeper, embezzled from six different employers over the course of 15 years. He diverted more than $840,000 from his various employers to bank accounts under his control. He subverted the internal controls of the companies to ultimately direct payments to himself. He also registered a number of fictitious names to conceal the diversions. Wheeler used most of the money for online gambling.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
Punta Gorda Man Sentenced to Prison for Failing to Register as A Sex OffenderRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Eric David Erdmann (45, Punta Gorda) to 21 months in federal prison for failing to register as a sex offender. A federal jury found him guilty of the offense on March 23, 2017.
According to testimony and evidence presented at trial, Erdmann was required to register as a sex offender following a July 13, 2010, sex offense conviction in Oregon. He registered as a sex offender in Oregon but then absconded, traveling to Cambodia. In December 2010, Oregon authorities issued a warrant for his arrest.
Cambodian authorities subsequently arrested Erdmann in April 2016, after the U.S. State Department had revoked his passport. Erdmann agreed to depart Cambodia voluntarily and arrived in Florida later that month. He took up residence in Lee County and failed to register as a sex offender.
This case was investigated by the U.S. Marshals Service, U.S. Immigratoin and Customs Enforcment’s Homeland Security Investigations, the Florida Department of Law Enforcement, and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael C. Baggé-Hernández.
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 Veteran Indicted on Charges of Stealing $538,000 in Fraudulent Disability BenefitsRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces the return of a two-count federal indictment charging Jose Calderon-Fuentes (62, Jacksonville) with stealing more than $538,000 in government property, specifically veterans’ disability benefits. The indictment notifies Calderon-Fuentes that the government intends to forfeit the alleged proceeds of the fraud.
The indictment alleges that from October 1997 through April 2013, Calderon-Fuentes stole veterans’ disability benefits by overstating the extent of his vision disability. Calderon-Fuentes claimed that he was unable to see any “better than hand motion or light perception,” when, in reality, he knew that statement was false. The indictment further alleges that he lied when interviewed by an investigator with the Department of Veterans Affairs - Office of Inspector General.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Department of Veterans Affairs, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jason Mehta.
Former President of Fort Myers Dietary Supplement Company Sentenced to Prison for Misbranded FoodRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Derek Vest (52, Fort Myers) to 18 months in federal prison for introducing misbranded food into interstate commerce. As part of his sentence, the Court also entered a money judgment in the amount of $2.5 million, the proceeds obtained as a result of the offense.
Vest pleaded guilty on March 29, 2017.
According to court documents, from at least April 16, 2013, through November 28, 2014, Vest was the President of Gentech Pharmaceutical, a dietary supplement sales, marketing, and distribution facility located in Fort Myers. In that capacity, he controlled and oversaw the manufacture, marketing, and sale of purported dietary supplements including, AddTabz, PhenTabz, and PhenTabz-Teen. Vest’s company marketed and sold these dietary supplements over the Internet, in stores, and at various kiosks.
AddTabz were marketed as mental focus and performance tablets. They were advertised as a safe alternative to Adderall, and as a designer non-prescription pharmacological alternative that claimed to improve memory, learning, and overall brain function instantly. PhenTabz and PhenTabz-Teen were advertised as weight loss tablets. All of these products were sold throughout the United States and overseas. In addition, Vest authorized the use of amphetamine derivative DMAA (1,3-Dimethylamine) in the manufacture of various Gentech Pharmaceutical products including, AddTabz, PhenTabz, and PhenTabz-Teen. However, he did not disclose the presence of DMAA on the product labeling for the tablets.
During this time period, Vest’s company sold more than 2 million tablets that had been misbranded and shipped to consumers.
This case was investigated by the Food and Drug Administration. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
Keystone Heights Man Sentenced for Producing and Transporting Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Travis Christopher Ellis (27, Keystone Heights) to five years in federal prison for transporting, receiving, and possessing child pornography. The Court also ordered him to pay $2,500 in restitution to the victims of his crimes and to serve a 20-year term of supervision following his release from prison.
According to court documents, on May 5, 2016, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations served a search warrant at Ellis’s residence. During an interview with agents, he admitted to using file-sharing programs to download and share child pornography. He also admitted to using particular search terms to find child pornography and to saving his collection on external hard drives.
"This sentencing should serve as a warning that peer-to-peer networks do not shield criminals from prosecution," said HSI Tampa acting Special Agent in Charge Ivan J. Arvelo. "HSI special agents and our partners at the Clay County Sheriff’s Office have ensured this predator is held accountable for his continued victimization of the most vulnerable members of our society.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Clay County Sheriff’s Office. It was 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.
Jacksonville Man Who Attempted to Obstruct Firearms Investigation Sentenced to 15 Years’ ImprisonmentRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Sheldon Lamont Jackson (43, Jacksonville) to 15 years in federal prison for unlawfully possessing a firearm after having been convicted of a felony offense.
He pleaded guilty on February 23, 2017.
According to the court documents, during a traffic stop, a deputy with the Jacksonville Sheriff’s Office discovered a loaded, semi-automatic handgun hidden under the driver’s seat of the car that Jackson was driving. During the investigation that followed, Jackson unsuccessfully attempted to dissuade a witness from providing information to law enforcement. Prior to his arrest in this case, Jackson had multiple prior felony convictions, including convictions for selling cocaine and resisting arrest with violence, and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Florida Businessman Sentenced to Prison for Conspiring to Commit Tax and Bank FraudRead the Press Release
A Florida businessman was sentenced today to 57 months in prison in U.S. District Court for the Middle District of Florida for conspiring to commit tax and bank fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Casey Padula, 48, of Port Charlotte, was the sole shareholder of Demandblox Inc., a marketing and information technology business. Padula conspired with others to move funds for his benefit from Demandblox to offshore accounts in Belize and disguised these transfers as business expenses in Demandblox’s corporate records. Padula created two offshore companies in Belize: Intellectual Property Partners Inc. (IPPI) and Latin American Labor Outsourcing Inc. (LALO). He opened and controlled bank accounts in the names of these entities at Heritage International Bank & Trust Limited (Heritage Bank), a financial institution located in Belize. From 2012 through 2013, Padula caused periodic payments to be sent from Demandblox to his accounts at Heritage Bank and deposited approximately $2,490,688. Padula used the funds to pay for personal expenses and purchase significant personal assets. However, he falsely recorded these payments in Demandblox’s corporate books as intellectual property rights or royalty fees and deducted them as business expenses on Demandblox’s 2012 and 2013 corporate tax returns. As a result of these false deductions, Padula caused a tax loss of more than $728,000.
Padula also conspired with investment advisors Joshua VanDyk and Eric St-Cyr at Clover Asset Management (CAM), a Cayman Islands investment firm, to open and fund an investment account that he would control, but that would not be in his name. Heritage Bank had an account at CAM in its name and its clients could get a subaccount through Heritage Bank that would not be in the client’s name but rather would be a numbered account. Padula transferred $1,000,080 from the IPPI bank account at Heritage Bank in Belize to CAM to fund a numbered account that concealed his financial interest in it. Padula failed to disclose this account to the U.S. Department of Treasury and the Internal Revenue Service (IRS) despite being required to do so under the law.
In addition to the tax fraud, Padula also conspired with others to commit bank fraud. Padula had a mortgage on his Port Charlotte, Florida home of approximately $1.5 million with Bank of America (BoA). In 2012, he sent a letter to the bank stating that he could no longer repay his loan. At the same time, Padula provided Robert Robinson III, 43, who acted as a nominee buyer, with more than $625,000 from his IPPI bank account in Belize to fund a short sale of Padula’s home. Padula and Robinson signed a contract, which falsely represented that the property was sold through an “arms-length transaction,” and agreed that Padula would not be permitted to remain in the property after the sale. Padula in fact never moved from his home and less than two months after the closing, Robinson conveyed it back to Padula by transferring ownership to one of Padula’s Belizean entities for $1. Robinson was also sentenced today to five years of probation for signing a false Form HUD-1 in connection with his role in the scheme.
“Casey Padula used secret numbered bank accounts, foreign shell companies and phony deductions to hide millions and evade U.S. taxes,” said Acting Deputy Assistant Attorney General Goldberg. “His 57 month sentence today makes clear that there is no place safe in the world for tax cheats to hide their money and feel secure that the Department of Justice and the IRS will not uncover their scheme and hold them fully accountable.”
“As Mr. Padula has learned, using shell companies and offshore accounts is not tax planning; it’s tax fraud,” said Chief Don Fort of IRS Criminal Investigation (CI). “The use of sophisticated international financial transactions does not prevent IRS CI from following the trail of money back to the person breaking the law. In conjunction with our law enforcement partners, we will continue our ongoing efforts to pursue individuals who use these offshore schemes to circumvent the law.”
In addition to the term of prison imposed by U.S. District Court Judge Sherri Polster Chappell, Padula was ordered to serve three years of supervised release and to pay a fine of $100,000 and to pay restitution of $728,609 to the IRS and to BoA in the amount of $739,459.90. He was remanded into custody.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS CI, who conducted the investigation, and Assistant Chiefs Todd Ellinwood and Caryn Finley of the Tax Division, who prosecuted this case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office of the Middle District of Florida for its assistance.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Florida Businessman Sentenced to Prison for Conspiring to Commit Tax and Bank FraudRead the Press Release
Fort Myers, FL – A Florida businessman was sentenced today to 57 months in prison in U.S. District Court for the Middle District of Florida for conspiring to commit tax and bank fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Casey Padula, 48, of Port Charlotte, was the sole shareholder of Demandblox Inc., a marketing and information technology business. Padula conspired with others to move funds for his benefit from Demandblox to offshore accounts in Belize and disguised these transfers as business expenses in Demandblox’s corporate records. Padula created two offshore companies in Belize: Intellectual Property Partners Inc. (IPPI) and Latin American Labor Outsourcing Inc. (LALO). He opened and controlled bank accounts in the names of these entities at Heritage International Bank & Trust Limited (Heritage Bank), a financial institution located in Belize. From 2012 through 2013, Padula caused periodic payments to be sent from Demandblox to his accounts at Heritage Bank and deposited approximately $2,490,688. Padula used the funds to pay for personal expenses and purchase significant personal assets. However, he falsely recorded these payments in Demandblox’s corporate books as intellectual property rights or royalty fees and deducted them as business expenses on Demandblox’s 2012 and 2013 corporate tax returns. As a result of these false deductions, Padula caused a tax loss of more than $728,000.
Padula also conspired with investment advisors Joshua VanDyk and Eric St-Cyr at Clover Asset Management (CAM), a Cayman Islands investment firm, to open and fund an investment account that he would control, but that would not be in his name. Heritage Bank had an account at CAM in its name and its clients could get a subaccount through Heritage Bank that would not be in the client’s name but rather would be a numbered account. Padula transferred $1,000,080 from the IPPI bank account at Heritage Bank in Belize to CAM to fund a numbered account that concealed his financial interest in it. Padula failed to disclose this account to the U.S. Department of Treasury and the Internal Revenue Service (IRS) despite being required to do so under the law.
In addition to the tax fraud, Padula also conspired with others to commit bank fraud. Padula had a mortgage on his Port Charlotte, Florida home of approximately $1.5 million with Bank of America (BoA). In 2012, he sent a letter to the bank stating that he could no longer repay his loan. At the same time, Padula provided Robert Robinson III, 43, who acted as a nominee buyer, with more than $625,000 from his IPPI bank account in Belize to fund a short sale of Padula’s home. Padula and Robinson signed a contract, which falsely represented that the property was sold through an “arms-length transaction,” and agreed that Padula would not be permitted to remain in the property after the sale. Padula in fact never moved from his home and less than two months after the closing, Robinson conveyed it back to Padula by transferring ownership to one of Padula’s Belizean entities for $1. Robinson was also sentenced today to five years of probation for signing a false Form HUD-1 in connection with his role in the scheme.
“Casey Padula used secret numbered bank accounts, foreign shell companies and phony deductions to hide millions and evade U.S. taxes,” said Acting Deputy Assistant Attorney General Goldberg. “His 57 month sentence today makes clear that there is no place safe in the world for tax cheats to hide their money and feel secure that the Department of Justice and the IRS will not uncover their scheme and hold them fully accountable.”
“As Mr. Padula has learned, using shell companies and offshore accounts is not tax planning; it’s tax fraud,” said Chief Don Fort of IRS Criminal Investigation (CI). “The use of sophisticated international financial transactions does not prevent IRS CI from following the trail of money back to the person breaking the law. In conjunction with our law enforcement partners, we will continue our ongoing efforts to pursue individuals who use these offshore schemes to circumvent the law.”
In addition to the term of prison imposed by U.S. District Court Judge Sherri Polster Chappell, Padula was ordered to serve three years of supervised release and to pay a fine of $100,000 and to pay restitution of $728,609 to the IRS and to BoA in the amount of $739,459.90. He was remanded into custody.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS CI, who conducted the investigation, and Assistant Chiefs Todd Ellinwood and Caryn Finley of the Tax Division, who prosecuted this case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office of the Middle District of Florida for its assistance.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.