Middle District of Florida
Press releases recorded for this federal judicial district.
Justice Department Settles Disability-Based Housing Discrimination Lawsuit with City of JacksonvilleRead the Press Release
Jacksonville, FL – The Justice Department today announced a settlement with the city of Jacksonville, to resolve allegations that the city violated the Fair Housing Act and the Americans with Disabilities Act when it refused to allow the development of permanent supportive housing for individuals with disabilities in its Springfield neighborhood.
The settlement, which must still be approved by the U.S. District Court for the Middle District of Florida, resolves a lawsuit the department filed in December 2016. That lawsuit was consolidated with similar ones brought by Ability Housing, Inc. and Disability Rights Florida, which were resolved in a separate settlement with the city.
“Federal law protects the right of individuals with disabilities to live in communities of their choice without facing discrimination,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Through this settlement, the city of Jacksonville has taken steps to ensure that its residents can exercise this right.”
“The Fair Housing Act and the Americans with Disabilities Act protect against official adoption of community discrimination,” said Acting U.S. Attorney W. Stephen Muldrow, of the Middle District of Florida. “We commend the city of Jacksonville’s willingness to rectify its past actions, and we look forward to continuing to work with the city to ensure that individuals with disabilities in Jacksonville are afforded the same opportunities as those without disabilities.”
As part of the city’s settlement with the department, the city has amended its zoning code to better comply with federal anti-discrimination laws, including removing restrictions that apply to housing for persons with disabilities and implementing a reasonable accommodation policy. The city also agreed to rescind the written interpretation that prevented Ability Housing from providing the housing at issue, designate a fair housing compliance officer, provide Fair Housing Act and Americans with Disabilities Act training for city employees, and pay a civil penalty to the government of $25,000. In the separate settlement, the city agreed to pay $400,000 to Ability Housing and $25,000 to Disability Rights Florida, and to establish a $1.5 million grant to develop permanent supportive housing in the city for people with disabilities.
The department’s suit alleged that in 2014, Ability Housing received a $1.35 million grant from Florida to revitalize a 12-unit apartment building and create permanent supportive housing for “chronically homeless” individuals in Jacksonville who, by definition, have at least one disability. Ability Housing specifically intended to provide this housing to veterans and to connect them with optional support services. The city had previously certified that Ability Housing’s development of the property was consistent with the city’s zoning code but, as alleged in the department’s complaint, reversed itself in response to intense community pressure based on stereotypes about the disabilities of the expected residents. As a result, Ability Housing lost the grant and the property. The department conducted an independent investigation and subsequently filed this lawsuit.
Fighting illegal housing discrimination is a top priority of the Justice Department. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Title II of the Americans with Disabilities Act prohibits discrimination on the basis of disability by public entities. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Jacksonville Gang Founder Sentenced to 10 Years for Possessing A FirearmRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Maurice Phillip Mitchell (32, Jacksonville) to 10 years in federal prison for possessing a firearm after having been convicted of a felony. A federal jury found him guilty on February 7, 2017. During his sentencing hearing, Mitchell was identified as the founder of the violent gang “Cut Throat Committee,” which operates throughout Florida’s prison system.
According to court documents, Mitchell was operating a minivan in the Lackawanna area of Jacksonville on February 29, 2016, when he was encountered by a patrol officer with the Jacksonville Sheriff’s Office (JSO). The officer observed signs of intoxication and pursued Mitchell, who led the officer on a high-speed chase and ultimately crashed the vehicle into a tree. Mitchell then exited the vehicle and fled on foot. A second JSO patrol officer, who had responded to assist, apprehended Mitchell a short time later, after finding him hiding under an SUV in a nearby parking lot. Upon returning to the scene of the crash, officers found a firearm on the dashboard of the minivan. As a previously convicted felon, Mitchell is prohibited from possessing a firearm or ammunition under federal law.
At the sentencing hearing, the United States presented evidence that Mitchell had attempted to obstruct justice by paying a third party to falsely testify on his behalf and by attempting to intimidate a witness during trial. He received a sentencing enhancement based on this evidence. He also received an additional sentencing enhancement for reckless endangerment during his flight from police.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Jacksonville Sheriff’s Office and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Kelly Karase.
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 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.
Illegal Alien Indicted for Possession of Firearms and Felony Assault on A Federal OfficerRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Oniel Christopher Russell, a/k/a OG Russell (39), a Jamaica national, with being an illegal alien in possession of a firearm and felony assault on a federal officer. If convicted on all counts, he faces a maximum penalty of 18 years in federal prison.
According to court documents, Russell last entered the United States on October 29, 2008, as a non-immigrant visitor for pleasure with subsequent authorization to remain within the United States until January 3, 2009. However, he failed to depart and remained in the country without any lawful immigration status. On August 24, 2013, deputies from the Orange County Sheriff’s Office found Russell in possession of a Ruger firearm. In October 2016, Russell threatened to kill an employee with U.S. Citizenship and Immigration Services over the telephone, after posting a video of himself called “cop killer” on YouTube. When officers with ICE subsequently attempted to execute an administrative warrant for his arrest, Russell attempted to flee back into a residence. As the deportation officer was attempting to handcuff him and place him under arrest, Russell pulled the officer into a wall and started dragging him towards the house. Russell was eventually taken into custody.
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 Custom Enforcement’s Enforcement and Removal Operations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Orange County Sheriff’s Office. It will be prosecuted by Special Assistant United States Attorney Christina R. Downes, who is on assignment from ICE’s Office of the Principal Legal Advisor.
Federal Jury Finds St. Cloud Man Guilty of Attempting to Sell Fake HeroinRead the Press Release
Orlando, Florida– Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Danny Anthony Collado Nieves (25, St. Cloud) guilty of attempting to possess with the intent to distribute a controlled substance. His sentencing hearing is scheduled for September 15, 2017; he faces a maximum penalty of 20 years in federal prison.
According to evidence presented at trial, on November 2, 2016, Collado Nieves attempted to sell over 100 grams of a substance that he believed to be heroin to an undercover police officer for $11,000. Although lab results later confirmed that the “heroin” was not a controlled substance, testimony and evidence showed that he had intended to sell real heroin on that date.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Sean P. Shecter and Vincent Chiu.
Convicted Felon Pleads Guilty to Federal Firearms ChargesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Raymond Adams (29, St. Petersburg) has pleaded guilty to being a felon in possession of a firearm and carrying a firearm during a drug trafficking offense. He faces a minimum mandatory penalty of five years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Adams and others planned to break into a St. Petersburg residence to steal marijuana and later distribute it. Adams was armed with a 9-mm handgun during the attempted burglary and, when detected by law enforcement officers, he fled with his associates in a vehicle that later crashed. Adams then fled on foot and discarded the gun. Officers later recovered that firearm from a trash can.
At the time of the incident, Adams was a felon whose prior criminal history included a 2010 manslaughter conviction. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney James C. Preston, Jr.
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. It is also a part of the St. Petersburg Violent Crime Reduction Initiative.
Aggravated Felon Indicted for Illegal ReentryRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Luis Bernardo Gonzalez-Martinez (29, Mexico) with the illegal reentry after deportation. Since his deportation was subsequent to his conviction for an aggravated felony, he faces a maximum penalty of 20 years in federal prison.
According to court documents, Gonzalez-Martinez is a Mexican citizen who was convicted of burglary on May 26, 2009. He was removed from the United States in June 2012 and again in June 2013. On April 1, 2017, immigration officers encountered Gonzalez-Martinez, a member of the Sureños (Sur 13) street gang, back in the United States illegally.
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 Enforcement and Removal Operations and U.S. Customs and Border Protection’s Border Patrol. It will be prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of Principal Legal Advisor, ICE.
Medicare Advantage Organization and Former Chief Operating Officer to Pay $32.5 Million to Settle False Claims Act AllegationsRead the Press Release
Tampa, FL – Freedom Health Inc., a Tampa-based provider of managed care services, and its related corporate entities (collectively “Freedom Health”), agreed to pay $31,695,593 to resolve allegations that they violated the False Claims Act by engaging in illegal schemes to maximize their payment from the government in connection with their Medicare Advantage plans, the Justice Department announced today. In addition, the former Chief Operating Officer (COO) of Freedom Health Siddhartha Pagidipati, has agreed to pay $750,000 to resolve his alleged role in one of these schemes.
“Medicare Advantage plans play an increasingly important role in our nation’s health care market,” said Acting U.S. Attorney Stephen Muldrow. “This settlement underscores our Office’s commitment to civil health care fraud enforcement.”
“When entering into agreements with managed care providers, the government requests information from those providers to ensure that patients are afforded the appropriate level of care,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s result sends a clear message to the managed care industry that the United States will hold managed care plan providers responsible when they fail to provide truthful information.”
The government alleged that Freedom Health submitted or caused others to submit unsupported diagnosis codes to the Centers for Medicare & Medicaid Services (CMS), which resulted in inflated reimbursements from 2008 to 2013 in connection with two of their Medicare Advantage plans operating in Florida. It also alleged that Freedom Health made material misrepresentations to CMS regarding the scope and content of its network of providers (physicians, specialists and hospitals) in its application to CMS in 2008 to expand in 2009 into new counties in Florida and in other states. The government’s settlement with Mr. Pagidipati resolves his alleged role in this latter scheme.
“Medicare Advantage insurers must play by the rules and provide Medicare with accurate information about their provider networks and their patients’ health,” said Chief Counsel to the Inspector General Gregory Demske of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “OIG will investigate and hold managed care organizations accountable for fraud. Moving forward, the innovative CIA reduces the risks to patients and taxpayers by focusing on compliance issues unique to Medicare Advantage plans.”
The allegations resolved by these settlements were brought in a lawsuit under the qui tam, or whistleblower, provisions of the Federal False Claims Act and the Florida False Claims Act. These statutes permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The whistleblower in this action is Darren D. Sewell, who was a former employee of Freedom Health. The whistleblower’s share in this case has not yet been determined.
The corporate entities related to Freedom and which were part of today’s settlements are: Optimum HealthCare Inc., America’s 1st Choice Holdings of Florida LLC, Liberty Acquisition Group LLC, Health Management Services of USA LLC, Global TPA LLC, America’s 1st Choice Holdings of North Carolina LLC, America’s 1st Choice Holdings of South Carolina LLC, America’s 1st Choice Insurance Company of North Carolina Inc. and America’s 1st Choice Health Plans Inc.
Today’s settlements were the result of a coordinated effort by Assistant U.S. Attorneys Katherine Ho and Randy Harwell of the Middle District of Florida, Trial Attorney Jennifer Koh of the Department of Justice’s Civil Division’s Commercial Litigation Branch, HHS-OIG and Assistant Attorney General Ian Garland of the Florida Office of the Attorney General.
The claims resolved by the settlements are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Sewell v. Freedom Health, Inc., et al., Case No. 8:09-cv-1625 (M.D. Fla.).
Zephyrhills Man Sentenced to Prison for Identity TheftRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew has sentenced Richard Hoagland (63, Zephyrhills), formerly of Indiana, to two years in federal prison for aggravated identity theft. In addition, he was ordered to forfeit $42,500, which represents the proceeds of the misrepresentations that he made in connection with the U.S. Department of Housing and Urban Development Section 8 housing program.
Hoagland pleaded guilty to these charges on February 16, 2017.
According to court documents, Hoagland used the name, date of birth, social security, and identity of a deceased person in documents submitted to the Federal Aviation Authority. He applied for and obtained a pilot and medical certificate in 2012, and again in 2014. He also used the information to register his partial ownership in an aircraft in 2014. Hoagland falsely stole the deceased person’s identity in 1995, abandoning his true name of Richard Hoagland, and used this false identity for all purposes, including paperwork that he filed with HUD.
This case was investigated by Pasco County Sheriff’s Office, the Federal Bureau of Investigation, the Department of Transportation - Office of Inspector General, and HUD - Office of Inspector General. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
West Virginia Woman Pleads Guilty to Obstructing A Federal Kidnapping/Death InvestigationRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that Belenda Sandy (56, Buckhannon, West Virginia) has pleaded guilty to one count of obstruction of justice. She faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been scheduled.
Sandy was indicted on March 8, 2017.
According to the
plea agreement , Sandy obstructed justice and hindered a federal kidnapping/death investigation by making false statements and omitting material information during interviews with investigators. The investigation began on November 27, 2016, after a victim went missing in Ormond Beach, Florida. Investigators eventually determined that the victim had recently relocated to Florida from Indiana to get away from her estranged husband, Jarvis Wayne Madison, who was also in an intimate relationship with Sandy. In the days leading up to the victim’s disappearance, Madison stayed with Sandy at her West Virginia residence, where she provided him with food, money, and new tires for his vehicle. Eventually, Madison left Sandy’s residence and drove to Florida, where he located the victim as she was jogging on Ormond Beach. Phone records reflected that Madison had a 23-mintue phone conversation with Sandy, just before the victim disappeared.On November 28, 2016, an investigator contacted Sandy by telephone and interviewed her to determine Madison’s whereabouts. During this interview, Sandy denied having any recent contact with Madison. This statement was false and misleading. Even after the investigator informed Sandy that the victim had likely been abducted by Madison, she continued to claim that she had not seen Madison in a long time. Following the interview, Sandy met with Madison at a gas station near her home and told him that law enforcement was looking for him in connection with the victim’s disappearance. Sandy’s misleading conduct towards the investigator ultimately delayed Madison’s arrest on federal kidnapping charges, and delayed the recovery of the victim’s body.
After learning from Sandy that law enforcement was looking for him, Madison drove to Tennessee, where he buried the victim’s dead body. He then drove to Kentucky, where law enforcement arrested him on December 2, 2016. On the same date, FBI agents recovered the victim’s body in Tennessee and determined that Madison had shot and killed her sometime after her disappearance on November 27, 2016.
Madison is currently charged in a superseding indictment with kidnapping that resulted in a death, interstate domestic violence, and interstate stalking. 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. A trial date for Madison is currently set for the March 2018 trial term.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Volusia County Sheriff’s Office, the United States Marshals Service, and the Indiana State Police. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Medicare Advantage Organization and Former Chief Operating Officer to Pay $32.5 Million to Settle False Claims Act AllegationsRead the Press Release
Freedom Health Inc., a Tampa, Florida-based provider of managed care services, and its related corporate entities (collectively “Freedom Health”), agreed to pay $31,695,593 to resolve allegations that they violated the False Claims Act by engaging in illegal schemes to maximize their payment from the government in connection with their Medicare Advantage plans, the Justice Department announced today. In addition, the former Chief Operating Officer (COO) of Freedom Health Siddhartha Pagidipati, has agreed to pay $750,000 to resolve his alleged role in one of these schemes.
“When entering into agreements with managed care providers, the government requests information from those providers to ensure that patients are afforded the appropriate level of care,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s result sends a clear message to the managed care industry that the United States will hold managed care plan providers responsible when they fail to provide truthful information.”
The government alleged that Freedom Health submitted or caused others to submit unsupported diagnosis codes to CMS, which resulted in inflated reimbursements from 2008 to 2013 in connection with two of their Medicare Advantage plans operating in Florida. It also alleged that Freedom Health made material misrepresentations to CMS regarding the scope and content of its network of providers (physicians, specialists and hospitals) in its application to CMS in 2008 to expand in 2009 into new counties in Florida and in other states. The government’s settlement with Mr. Pagidipati resolves his alleged role in this latter scheme.
“Medicare Advantage plans play an increasingly important role in our nation’s health care market,” said Acting U.S. Attorney Stephen Muldrow. “This settlement underscores our Office’s commitment to civil health care fraud enforcement.”
“Medicare Advantage insurers must play by the rules and provide Medicare with accurate information about their provider networks and their patients’ health,” said Chief Counsel to the Inspector General Gregory Demske of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “OIG will investigate and hold managed care organizations accountable for fraud. Moving forward, the innovative CIA reduces the risks to patients and taxpayers by focusing on compliance issues unique to Medicare Advantage plans.”
The allegations resolved by these settlements were brought in a lawsuit under the qui tam, or whistleblower, provisions of the Federal False Claims Act and the Florida False Claims Act. These statutes permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The whistleblower in this action is Darren D. Sewell, who was a former employee of Freedom Health. The whistleblower’s share in this case has not yet been determined.
The corporate entities related to Freedom and which were part of today’s settlements are: Optimum HealthCare Inc., America’s 1st Choice Holdings of Florida LLC, Liberty Acquisition Group LLC, Health Management Services of USA LLC, Global TPA LLC, America’s 1st Choice Holdings of North Carolina LLC, America’s 1st Choice Holdings of South Carolina LLC, America’s 1st Choice Insurance Company of North Carolina Inc. and America’s 1st Choice Health Plans Inc.
Today's settlements were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, The U.S. Attorneys’ Office for the Middle District of Florida, HHS-OIG and the Florida Office of the Attorney General.
The claims resolved by the settlements are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Sewell v. Freedom Health, Inc., et al., Case No. 8:09-cv-1625 (M.D. Fla.).
Jury Convicts Florida National Guardsman of Attempting to Entice A Minor for SexRead the Press Release
Orlando, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found John David Stahlman (35, Longwood) guilty of one count of attempting to persuade, induce, and entice a minor to engage in sexual activity. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for August 10, 2017.
Stahlman was indicted on November 15, 2016.
According to the testimony and evidence presented at trial, on November 10, 2016, Stahlman posted an advertisement on Craigslist seeking a “young ‘looking’ girl” for possible “physical pleasure.” An FBI agent acting in an undercover capacity responded to the advertisement and introduced himself as the single father of an 11-year-old child. During a two and a half-month period, Stahlman made plans to meet and have sex with the 11-year-old, and eventually traveled to meet with the minor. He was subsequently arrested.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Alejandro J. Salicrup and Karen 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.
Former University of Tampa Professor Sentenced to More Than 17 Years in Federal Prison for Child Exploitation OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Nathan A. Madsen (37, Tampa) to 17 years and 6 months in federal prison, followed by a life term of supervised release, for enticing a child to produce child pornography and for possessing child pornography. The Court also ordered Madsen to forfeit his vehicle and multiple electronic storage devices that had been used in the commission of the offenses. Madsen pleaded guilty on February 3, 2017. Prior to his arrest, he had worked as a music professor at the University of Tampa.
According to court documents, Madsen responded to an online advertisement for prostitution services posted on Backpage.com. Madsen requested and negotiated the price to have sex with a 14-year-old-girl. Unbeknownst to him, the message had been posted by agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. In an attempt to verify the existence of the minor, Madsen asked for her picture, spoke to “her” on the phone, withdrew money from the ATM and drove to the designated meeting location. Madsen met with and paid an undercover special agent $140 to have sex with the minor.
After his arrest, agents executed a search warrant at Madsen’s apartment and seized multiple electronic devices. Forensic analyses of his cellphone and tablet revealed that from at least May 2015 and continuing through July 2015 Madsen engaged in a series of sexually explicit online conversations with a 16-year-old girl. During this time, he persuaded, induced, and enticed the child to produce and transmit explicit images and videos for his personal benefit. At the time of his arrest, Madsen had 61 explicit images and 14 videos of the child, some of which depicted violent, sadistic or masochistic conduct.
“Our HSI special agents, in partnership with the Tampa Police Department, have prevented this predator from harming more children,” said Ivan J. Arvelo, acting special agent in charge of HSI Tampa. “This investigation demonstrates that child exploitation continues to be a threat that can’t be ignored. Today’s sentencing sends a message that HSI is committed to the investigation and prosecution to the fullest extent of the law of individuals who engage in any heinous crime against our children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Stacie B. Harris and Lisa M. Thelwell.
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.
St. Petersburg Man Pleads Guilty in Deepwater Horizon Fraud SchemeRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Joseph Bassler (61, St. Petersburg) has pleaded guilty to mail fraud and money laundering. He faces a maximum penalty of 20 years in federal prison on the mail fraud count and up to 10 years in federal prison for the money laundering offense.
According to the
plea agreement , Bassler, a licensed tax-preparer, held himself out as a professional accountant who could assist companies affected by the Deepwater Horizon oil spill in filing business economic loss claims. As part of his scheme, Bassler prepared and submitted fraudulently inflated claims falsely alleging lost income on behalf of his clients. He also created false documents, including false monthly profit and loss statements, that he provided in support of the fraudulent lost income claims. As payment for his services, he accepted a portion of the recovery money for the loss claims that he had prepared. In total, Bassler submitted 62 claims, three of which were paid. For the three claims that were paid, Bassler and his clients received over $600,000 more than they were entitled from the compensation fund. The remaining claims were denied when Bassler’s fraudulent scheme was discovered.This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.
St. Petersburg Violent Crime Reduction InitiativeRead the Press Release
Tampa, Florida – Acting U.S. Attorney W. Stephen Muldrow, Special Agent in Charge Daryl R. McCrary of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Chief Anthony Holloway of the St. Petersburg Police Department, and State Attorney Bernie McCabe of the Sixth Judicial Circuit announce the culmination of a long-term firearms, drug trafficking, and violent crime operation dubbed the St. Petersburg Violent Crime Reduction Initiative. As a result of this eight-month initiative,
federal charges have been filed against 35 individuals and state charges have been filed against 9 individuals . The charges brought during this investigation arose from a partnership between the U.S. Attorney’s Office, the State Attorney’s Office, ATF, and the St. Petersburg Police Department, under the auspices of the Department of Justice’s Project Safe Neighborhoods (PSN) Comprehensive Anti-Gang Initiative. The PSN Program is a nationwide, gun-violence reduction strategy."The prosecutions announced today underscore our office's ongoing commitment to prosecuting violent and armed criminals,” said Acting U.S. Attorney Muldrow. “They also reflect the strength of our federal, state, and local law enforcement partnerships. We will continue work to together to make our communities safer."
“ATF’s primary focus is protecting the public by reducing violent crime,” said Special Agent in Charge McCrary. “ATF continues to aggressively pursue violent offenders and will continue to protect and serve communities with our law enforcement partners.”
“The more guns we take off the street, the more successful we are at reducing the fear of crime in our community” said Chief Holloway. “It is this kind of inter-agency relationship that makes our public safety efforts in the state of Florida so effective.”
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.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Petersburg Police Department, and the State Attorney’s Office for the Sixth Judicial Circuit. The federal cases will be prosecuted by Assistant United States Attorneys from the Violent Crimes and Gangs Section. The state cases will be prosecuted by Assistant State Attorneys from the Sixth Judicial Circuit.
Eleventh Circuit Affirms Sentence of Man Involved in Carjacking of Federal OfficerRead the Press Release
Orlando, FL – Acting United States Attorney W. Stephen Muldrow announces that the United States Court of Appeals for the Eleventh Circuit has affirmed the sentence of Gregory McDonald (19, Orlando).
On August 12, 2015, McDonald, along with three others, committed an armed carjacking of a U.S. Customs and Border Protection officer at a hotel in Orlando. The victim, who was on vacation with his family, had gone down to his SUV in the hotel parking lot when McDonald, co-defendant Dante Askins, and two minors approached him, and forced him into the backseat of his vehicle at gunpoint. They tied the victim’s hands and feet with duct tape and zip ties and McDonald pistol-whipped him. The carjackers held the victim for approximately two hours. When OnStar location services contacted the vehicle, the carjackers fled and the victim escaped. McDonald pleaded guilty and was sentenced to 20 years in prison. He appealed his sentence.
In affirming McDonald’s sentence, the Eleventh Circuit Court of Appeals rejected his argument that the sentencing court had not sufficiently addressed mitigating circumstances and had imposed an unreasonably high sentence. The Eleventh Circuit held that the sentencing court had given “due consideration” to mitigating circumstances, but had also considered that the crime was “horrific” and lacking in “basic humanity,” particularly since McDonald had “plan[ned] ahead of time in an apparent jovial fashion to buy zip ties and duct tape with a plan to kidnap someone at gunpoint for no apparent reason.” The sentencing court also had properly considered McDonald’s extensive and violent criminal history, which included offenses such as sexual battery, carjacking with a deadly weapon, aggravated assault with a deadly weapon, kidnapping, and burglary. The Eleventh Circuit concluded that the 20-year sentence was not unreasonably high.
Assistant United States Attorney Germaine M. Seider handled the appeal. The Federal Bureau of Investigation, the Orange County Sheriff’s Office, and the Florida Department of Law Enforcement investigated the underlying case. It was prosecuted by Assistant United States Attorney Tiffany L. Cummins.
Media Advisory - Press Conference in St. Petersburg on WednesdayRead the Press Release
WHO:
W. Stephen Muldrow
Acting United States Attorney
Middle District of Florida
Chief Anthony Holloway
St. Petersburg Police Department
Daryl R. McCrary
Special Agent in Charge
Bureau of Alcohol, Tobacco, Firearms and Explosives
Participating Agencies
State Attorney’s Office for the Sixth Judicial Circuit
WHAT:
Press Conference
Press conference to announce the culmination of an eight-month operation.
WHEN:
WEDNESDAY, May 24, 2017
11:00 A.M. EST
WHERE:
St. Petersburg Police Department (Headquarters)
Basement Meeting Room
1300 1st Avenue North
St. Petersburg Florida 33705
OPEN PRESS
NOTE:
All media must present press credentials and government-issued photo I.D. (e.g. Driver’s License).
Media may begin arriving at 10:30 A.M.
Please park on Central Avenue (behind P.D.).
Call (727) 893-7128 for escort through rear door.
Please RSVP to [email protected] by 5:00 p.m. today.
Roommate of Alleged Tampa Palms Shooter Charged with Federal Explosives ViolationsRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Brandon Russell (21, Tampa) has been charged by criminal complaint with possession of an unregistered destructive device and unlawful storage of explosive material, in violation of federal law. If convicted, he faces a maximum penalty of 11 years in federal prison.
According to the criminal complaint, the Tampa Police Department responded on May 19, 2017, to a double homicide at an apartment in the Tampa Palms area, where Russell, Devon Arthurs, and the deceased men had been living together. The alleged shooter, Arthurs, stated that he, Russell, and the two victims shared common neo-Nazi beliefs, and that Russell participated in online neo-Nazi chat rooms where he threatened to kill people and bomb infrastructure. During a search of the apartment, law enforcement discovered a cooler in the garage containing the explosive HMTD (hexamethylene triperoxide diamine), along with various explosive precursors in close proximity. Upon questioning, Russell admitted that he had manufactured the HMTD located in the garage.
On May 21, 2017, Russell was arrested in Key Largo. He made his initial appearance before United States Magistrate Judge Andrea Simonton in the Southern District of Florida. Russell was detained pending further proceedings in the Middle District of Florida.
Devon Arthurs was arrested on May 19, 2017, by officers from the Tampa Police Department. He is in custody facing state charges.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Tampa Police Department and the Monroe County Sheriff’s Office. It will be prosecuted by Assistant United States Attorneys Josephine W. Thomas and Daniel A. George.
Fernandina Beach Man Pleads Guilty to Drug and Firearm OffensesRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Frank Malik Drummond, Jr. (21, Fernandina Beach) today pleaded guilty to distribution of cocaine and possession of a firearm by a convicted felon. He faces a maximum penalty of 20 years in federal prison for the drug charge and up to 10 years’ imprisonment for the firearm offense.
According to the plea agreement, Drummond sold cocaine to a confidential informant on three separate occasions. When he was arrested on January 26, 2017, he had a semi-automatic pistol in his pocket. Drummond has two prior felony convictions for drug sales and is therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Nassau County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Eleventh Circuit Affirms Wire Fraud Convictions in Tampa-Area Sinkhole CaseRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that the United States Court of Appeals for the Eleventh Circuit has affirmed the convictions of Spring Hill residents Glenn and Kathryn Jasen.
According to court documents, in 2009, the Jasens discovered a sinkhole beneath their home and filed a claim with their insurance carrier, Citizens Property. In compensation for their loss, Citizens paid them $153,745.37. Rather than using the money to repair the sinkhole, the Jansens kept it. The couple then made cosmetic repairs to the house and listed it for sale, keeping the sinkhole a secret from prospective buyers. A family with five children bought the house and, in March 2015, the family heard a crash in the earth beneath it. They discovered a crack running across the floor of their living room and immediately evacuated. In October 2015, a federal jury found Glenn and Kathryn Jasen guilty of one count of wire fraud. The couple then appealed their convictions.
In affirming their convictions, the Eleventh Circuit Court of Appeals summarized the case against them, saying: “It is undisputed the Jasens knew their property had a sinkhole on it when they sold the property—they had already collected over one hundred fifty thousand dollars in insurance proceeds because of it.” “Nevertheless,” the Court continued, “they indicated on their disclosure statement that they knew of no sinkhole on the property. They reiterated this misrepresentation in multiple transaction documents and the purchaser relied on these statements in acquiring the property, testifying he would not have done so had he known of the sinkhole.” The Court of Appeals concluded that the evidence “demonstrates that the Jasens intentionally made material misrepresentations concerning their property that were calculated to deceive the buyer into purchasing the property.”
Assistant United States Attorney David C. Waterman handled the appeal. The Florida Department of Law Enforcement Tampa Bay Regional Operations Center investigated the case, and Assistant United States Attorney Thomas N. Palermo prosecuted it.
Tampa Man Pleads Guilty in Scheme to Sell Nearly $300,000 in Stolen Federal Tax Refund ChecksRead the Press Release
Tampa, Florida– Acting United States Attorney W. Stephen Muldrow announces that Xavier Williams (48, Tampa) today pleaded guilty to receipt of stolen government property and aggravated identity theft. He faces a maximum penalty of 12 years in federal prison.
According to the plea agreement, Williams obtained a number of federal tax refund checks belonging to taxpayers who were victims of identity theft. He then sold or attempted to sell the checks to others. The checks, issued by the U.S. Department of Treasury, ranged in amounts from $4,000 to over $128,000, with an aggregate value of over $297,000.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
Tampa Man Pleads Guilty to Theft and Identity Theft for Selling Stolen Tax Refund ChecksRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Giday Kidane (34, Tampa) has pleaded guilty to theft of government property and aggravated identity theft. He faces a maximum penalty of 10 years in federal prison for the theft count and a mandatory consecutive term of two years in federal prison for the aggravated identity theft count.
According to the
plea agreement , between November 2016 and January 2017, Kidane, posing as “Anwar,” sold and offered to sell stolen U.S. Treasury checks to a Confidential Informant (CI) in exchange for half of the face value in cash. On one occasion, Kidane presented the CI with two stolen U.S. Treasury checks for sale: one for $4,583, and a second check for $20,679. The pair agreed that the CI would pay Kidane $7,200 for both checks, plus an additional amount after the larger check had been successfully deposited.This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Eric Gerard.
Former Bank Officer Pleads Guilty to Role in Mortgage Fraud ConspiracyRead the Press Release
Tampa, FL – Acting United States W. Stephen Muldrow announces that Ross D. Pickard (63, Naples) today pleaded guilty to conspiracy to commit loan and credit application fraud. He faces a maximum penalty of five years in federal prison.
According to the
plea agreement , Pickard was a senior loan officer at JP Morgan Chase Bank. He conspired with others in a scheme to defraud the bank by completing, certifying, and submitting mortgage loan applications on behalf of borrowers that contained false and fraudulent statements. The false statements included overinflated income and assets, understated liabilities, and false occupancy. By relying on Pickard’s false and fraudulent statements on the loan applications, JP Morgan Chase funded mortgage loans for otherwise unqualified borrowers.The approximate losses suffered by JP Morgan Chase Bank associated with Pickard’s criminal conduct exceeds $33 million.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Florida Couple Sentenced to Federal Prison for Transporting CocaineRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Juan Soliz (24, Pomona Park) and Kayla Soto (23, Pomona Park) for transporting two kilograms of cocaine from Texas to Florida. Soliz was sentenced to five years’ imprisonment and Soto was sentenced to two years and six months in federal prison. Pursuant to their plea agreements, they have agreed to forfeit a Chevrolet Traverse and a Mercedes Benz E350 that were used to transport the cocaine. In addition, they will forfeit $5,335, which are traceable proceeds of the offense. Soliz and Soto pleaded guilty on October 20, 2016.
According to court documents, on June 25, 2016, the couple drove the Mercedes Benz from Palatka, Florida to Waycross, Georgia, where they received instructions from a co-defendant regarding the pickup location for a shipment of cocaine. Soliz and Soto then drove to Houston, Texas, stopped briefly to pick up two kilograms of cocaine, and then immediately started their return trip to Florida.
Troopers from the Florida Highway Patrol, working with DEA, stopped Soliz and Soto as they entered Putnam County on June 28, 2016. The two kilograms of cocaine were located inside a hidden compartment in the trunk of the car.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Frank Talbot.
Columbia County Man Indicted for Forced Labor and Aggravated Sexual AbuseRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Guarino Edwards Broccoli, a/k/a Gary Broccoli, a/k/a Gary Edwards (53, Fort White), with forced labor and aggravated sexual abuse. If convicted, he faces a maximum penalty of life in federal prison. The indictment also notifies Broccoli that the United States intends to forfeit his residence, including all manufactured homes, located at 439 SW Tara Court in Fort White.
According to the
indictment , Broccoli obtained the labor and services of a female using force and threats of force, causing her to believe that if she did not perform such labor and services she would suffer serious harm. It is also alleged that this offense included aggravated sexual abuse.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 Columbia County Sheriff’s Office and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ashley Washington.
This investigation is ongoing. The U.S. Attorney’s Office is seeking other potential victims related to this individual and/or the location listed in this indictment. Anyone with additional information is encouraged to contact the FBI -Jacksonville Field Office at 904-248-7000.
Leesburg Gang Member Arrested on Federal Carjacking and Firearms ChargesRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Jonathan Kyle Lanier (23, Leesburg) with carjacking, conspiracy to commit carjacking, brandishing a firearm in furtherance of carjacking, and possession of a firearm by a convicted felon. If convicted, he faces a maximum penalty of 15 years in federal prison for the carjacking count, up to 5 years’ imprisonment for the conspiracy count, a minimum mandatory 7-year penalty for brandishing a firearm, and up to 10 years in federal prison for the felon in possession charge. The indictment also notifies Lanier that the United States intends to forfeit three firearms that are alleged to have been used in facilitating the offense. Lanier made his initial appearance in Ocala today and was ordered detained pending trial.
According to the indictment, on December 23, 2016, Lanier and three other individuals conspired to rob a male victim of his money, other personal property, and his automobile by arranging a meeting at a remote location in Leesburg between the victim and a female co-conspirator. The victim believed that he was going to meet the woman only; however, shortly after he arrived, Lanier and two other men, Avery Tumer (23, Leesburg) and Timotheus Reed (29, Leesburg), pulled the victim from his car and stole his wallet and other personal property. During the robbery, the three men wore masks and pointed firearms at the victim; Tumer later pistol-whipped the victim and took his car. Thereafter, Tumer, Reed, Lanier, and the female co-conspirator drove the female’s car and the victim’s car back to a residence in Leesburg. They took the victim’s personal property into the residence, and hid the firearms in an attic.
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.
Tumer is currently detained on state charges, awaiting transfer to federal custody. Timotheus Reed faces federal charges and remains at-large.
This case was investigated by the Federal Bureau of Investigation Jacksonville Field Office (Daytona Beach Resident Agency), the Lake County Sheriff’s Office, and the Leesburg Police Department, with assistance from task force members from the Volusia County Sheriff’s Office and the Daytona Beach Police Department. It will be prosecuted by Assistant United States Attorney Dale Campion.
Financial Freedom Settles Alleged Liability for Servicing of Federally Insured Reverse Mortgage Loans for $89 MillionRead the Press Release
Financial Freedom has agreed to a settlement with the United States of more than $89 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) in connection with its participation in a federally insured Home Equity Conversion Mortgages (HECM) or ‘reverse mortgage’ program, the Justice Department announced today. Financial Freedom is headquartered in Austin, Texas.
“The Department of Justice is committed to ensuring that those who participate in federal mortgage insurance programs comply with requirements essential to the success of its programs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Among these requirements are the deadlines imposed by the Federal Housing Administration (FHA) on those who service government insured mortgages. Those deadlines are designed to protect the government’s collateral and stop the unnecessary loss of government funds and resources.”
Through ‘reverse mortgage’ loans, older people are able to access the equity in their homes by borrowing money against the equity they have built in their home. To encourage reverse mortgage loans, the FHA protects lenders from loss by providing 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. In order to claim recoupment, the servicer is required to meet a number of regulatory requirements and deadlines.
The United States alleged that Financial Freedom sought to obtain insurance payments for interest from FHA despite failing to properly disclose on the insurance claim forms it filed with the agency that the mortgagee was not eligible for such interest payments because it had failed to meet various deadlines relating to appraisal of the property, submission of claims to HUD, and pursuit of foreclosure proceedings. As a result, from March 31, 2011 to August 31, 2016, the mortgagees on the relevant reverse mortgage loans serviced by Financial Freedom allegedly obtained additional interest that they were not entitled to receive.
The United States’ investigation arose from a declaration filed pursuant to FIRREA by Sandra Jolley, a consultant for the estates of borrowers who took out HECM loans. Under FIRREA, whistleblowers may file declarations concerning alleged violations of the statute and may obtain a share of the recovery. Ms. Jolley will receive $1.6 million from the settlement.
“This settlement represents our office’s continued commitment to protecting the financial solvency of vital financial programs designed to benefit America’s seniors,” said Acting U.S. Attorney Stephen Muldrow of the Middle District of Florida. “HECM servicers must be held accountable for failing to adhere to FHA requirements that are designed to ensure the continued viability of the HECM program. We are pleased that Financial Freedom agreed to accept financial responsibility for these failures.”
“Today’s settlement agreement resolves allegations that this lender failed to comply with FHA servicing requirements and sought to receive financial gains that it was not legally entitled to,” said HUD Inspector General David A. Montoya. “These actions today demonstrate our continued commitment to address and halt business practices that pose a serious risk to the FHA program and the public’s trust in HUD administered programs.”
The settlement was the result of the coordinated efforts of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, and the Department of Housing and Urban Development’s Office of Inspector General and Office of General Counsel. The case was handled by Assistant U.S. Attorney Kyle Cohen, along with Trial Attorneys Sean O’Donnell and Christopher Reimer of the Department of Justice Civil Frauds Section.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Financial Freedom Settles Alleged Liability for Servicing of Federally Insured Reverse Mortgage Loans for $89 MillionRead the Press Release
Fort Myers, FL - Financial Freedom has agreed to a settlement with the United States of more than $89 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) in connection with its participation in a federally insured Home Equity Conversion Mortgages (HECM) or ‘reverse mortgage’ program, the Justice Department announced today. Financial Freedom is headquartered in Austin, Texas.
“This settlement represents our office’s continued commitment to protecting the financial solvency of vital financial programs designed to benefit America’s seniors,” said Acting U.S. Attorney Muldrow. “HECM servicers must be held accountable for failing to adhere to FHA requirements that are designed to ensure the continued viability of the HECM program. We are pleased that Financial Freedom agreed to accept financial responsibility for these failures.”
“The Department of Justice is committed to ensuring that those who participate in federal mortgage insurance programs comply with requirements essential to the success of its programs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Among these requirements are the deadlines imposed by the Federal Housing Administration (FHA) on those who service government insured mortgages. Those deadlines are designed to protect the government’s collateral and stop the unnecessary loss of government funds and resources.”
Through ‘reverse mortgage’ loans, older people are able to access the equity in their homes by borrowing money against the equity they have built in their home. To encourage reverse mortgage loans, the FHA protects lenders from loss by providing 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. In order to claim recoupment, the servicer is required to meet a number of regulatory requirements and deadlines.
The United States alleged that Financial Freedom sought to obtain insurance payments for interest from FHA despite failing to properly disclose on the insurance claim forms it filed with the agency that the mortgagee was not eligible for such interest payments because it had failed to meet various deadlines relating to appraisal of the property, submission of claims to HUD, and pursuit of foreclosure proceedings. As a result, from March 31, 2011 to August 31, 2016, the mortgagees on the relevant reverse mortgage loans serviced by Financial Freedom allegedly obtained additional interest that they were not entitled to receive.
The United States’ investigation arose from a declaration filed pursuant to FIRREA by Sandra Jolley, a consultant for the estates of borrowers who took out HECM loans. Under FIRREA, whistleblowers may file declarations concerning alleged violations of the statute and may obtain a share of the recovery. Ms. Jolley will receive $1.6 million from the settlement.
“Today’s settlement agreement resolves allegations that this lender failed to comply with FHA servicing requirements and sought to receive financial gains that it was not legally entitled to,” said HUD Inspector General David A. Montoya. “These actions today demonstrate our continued commitment to address and halt business practices that pose a serious risk to the FHA program and the public’s trust in HUD administered programs.”
The settlement was the result of the coordinated efforts of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, and the Department of Housing and Urban Development’s Office of Inspector General and Office of General Counsel. The case was handled by Assistant U.S. Attorney Kyle Cohen, along with Trial Attorneys Sean O’Donnell and Christopher Reimer of the Department of Justice Civil Frauds Section.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Eight Individuals Charged in Connection with Armed Drug Distribution in OrlandoRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of a
criminal complaint charging eight individuals with conspiracy to distribute a controlled substance and distribution and possession with the intent to distribute a controlled substance. Eric Jean Gilles (Miami, 36), Jimmy Remy Fernetus (Miami, 30), Edson Gelin (Orlando, 39), Raymond Mike Ayap (Orlando, 41), Ronny Joseph (Orlando, 32), Cristobal Sotomayor-Cebollero (Orlando, 31), Kissinger St. Fleur (Orlando, 35), and Gerardson Norgaisse (Orlando, 32) each face a maximum penalty of 20 years in federal prison for each controlled substance charge. Additionally, Gilles, Fernetus, and Gelin each face an additional and consecutive term of five years, up to life, in federal prison for possessing a firearm in furtherance of a drug trafficking offense.According to the complaint, Gilles and Fernetus, members of a drug trafficking organization with ties to South Florida, were selling cocaine and “crack” cocaine from houses on 1621 Grand Street and 1427 18th Street, both located south of downtown Orlando. Gelin, who was stopped while traveling north towards Orlando on the Florida Turnpike on June 8, 2016, with two kilograms of cocaine, had also been selling cocaine at the house on Grand Street. All three--Gilles, Fernetus, and Gelin--were armed with handguns when purchases were made from the houses. Gelin also later sold cocaine from 2824 West Harwood Street in Orlando.
Ayap, Joseph, Sotomayor-Cebollero, St. Fleur, and Norgaisse each purchased distribution amounts of cocaine at one of the residences during the course of the investigation.
Gilles, Gelin, Ayap, and Joseph have been arrested and are being held in federal custody. Sotomayor-Cebollero is being held on unrelated state charges. Fernetus, St. Fleur, and Norgaisse have not yet been apprehended.
Search warrants have been executed at all three residences in connection with this investigation. Agents have recovered firearms, cocaine, and drug paraphernalia at all three locations, including three handguns, two assault rifles, and thousands of dollars in cash.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This investigation was conducted by the Drug Enforcement Administration, with assistance from the Metropolitan Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It’s also part of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. It will be prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr.
Cocoa Man Sentenced to 30 Years in Federal Prison for Child Sex Trafficking and Production of Child PornographyRead the Press Release
Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. has sentenced Kennedy Harris, Jr. (24, Cocoa) to 30 years in federal prison, followed by a life term of supervised release, for sex trafficking of a child by force, fraud, or coercion, and for producing child pornography. A federal jury found Harris guilty of both offenses on September 29, 2016.
According to testimony and evidence presented at trial, in January 2016, Harris took in the victim, a 16-year girl, after she ran away from home. Harris then took sexually suggestive photographs of the girl and advertised her for sex on Backpage.com. He also enticed the victim to engage in sexually explicit conduct for the purpose of photographing her. Over the course of approximately two weeks, the victim had sex with up to eight individuals per day, and gave the money to Harris. In exchange for her sex acts, Harris gave the girl crack cocaine nearly every day. On February 10, 2016, the victim was recovered by the Cocoa Police Department.
This case was investigated by Federal Bureau of Investigation, the Brevard County Sheriff’s Office, and the Cocoa Police Department. It was prosecuted by Assistant United States Attorney Tiffany L. Cummins.
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.
Armed Career Criminal Sentenced to More Than 17 Years in Prison for Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Jamal Smith (31, St. Petersburg) to 17 years and 6 months in federal prison for possessing a firearm as a convicted felon. The Court also ordered him to forfeit a firearm traceable to the offense. Smith pleaded guilty on February 27, 2017.
According to court documents, on September 1, 2015, a law enforcement officer observed a vehicle driven by Jamal Smith commit a traffic infraction. Smith initially fled in his vehicle, but later stopped and ran from the officer. A chase ensued, and Smith circled back to the vehicle and reached into the passenger side. The officer apprehended Smith and took him into custody. Law enforcement officers recovered a .45 caliber pistol from the glove box of the vehicle. At the time of the offense, Smith was a convicted felon and therefore was prohibited from possessing a firearm or ammunition under federal law. Due to his multiple prior convictions for violent felony or serious drug offenses, he qualified for an increased penalty as an Armed Career Criminal.
This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Michael V. Leeman and Michael C. Sinacore.
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 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.
Tampa Man Sentenced in Wire Fraud Scheme Involving Fraudulent RefundsRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Rida Saed (58, Tampa) to 12 months and 1 day in federal prison for his role in a scheme involving the filing of fraudulent income tax returns. As part of his sentence, the Court also ordered Saed to pay $51,838.91 in restitution to the Internal Revenue Service. He pleaded guilty on January 19, 2017.
According to court documents, Saed and others processed debit cards at their store, Three Brothers Market in St. Petersburg, knowing that they contained proceeds from the filing of fraudulent income tax returns. Saed and others processed those cards through the third-party credit processor that handled credit transactions for the market. They kept a portion of the proceeds for their services and returned the majority of the funds to the undercover agents who had presented them for cashing. The total amount of fees that Saed and the others kept from these transactions was $51,838.91.
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.
Marion County Man Indicted on Arson and Destructive Device ChargesRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of a five-count
indictment charging Mark Charles Barnett (49, Ocala) with attempted arson, possession of a destructive device in furtherance of a crime of violence, possession of a destructive device by a convicted felon, and two counts of unlawful possession/manufacturing of a National Firearms Act weapon. If convicted on all counts, Barnett faces up to life in federal prison.According to court documents, Barnett offered a confidential source (CS) $10,000 to place improvised explosive bombs in Target retail stores along the east coast of the United States. Beginning in January 2017, Barnett created at least 10 of the destructive devices, disguised in food-item packaging, and delivered them to the CS on February 9, 2017. Barnett then asked the CS to place the explosive devices on the store shelves from New York to Florida. Barnett told the CS that he had purchased options on Target stock and expected to make a lot of money from the resulting plunge in the company’s stock price.
Rather than placing the destructive devices on store shelves, however, the CS surrendered them to authorities. Subsequent searches of Barnett’s home by federal agents revealed components consistent with those used to create the destructive devices and articles describing stock market investments. Barnett, a convicted felon, had been conditionally released from state prison in 2013 following multiple convictions for sexual assault, kidnapping, and grand theft.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the Florida Department of Law Enforcement; the Florida Department of Corrections - Probation and Parole; the Marion County Sheriff’s Office; and the Ocala Police Department. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Husband and Wife Sentenced for Armed RobberyRead the Press Release
Tampa, Florida –U.S. District Judge Virginia M. Hernandez Covington today sentenced Jacorian Rashawn Brown (24, Brandon) and Jessica Duenas Nicholas (45, Brandon) to federal prison for conspiracy and armed robbery. Brown was sentenced to 12 years and 9 months in federal prison, and Nicholas was sentenced to 4 years and 9 months’ imprisonment. As part of their sentences, the Court also entered a money judgment in the amount of $11,948, the proceeds of the charged criminal conduct.
Brown and Nicolas pleaded guilty on February 16, 2017.
According to court documents, on July 9, 2016, Brown and Nicholas robbed the Murphy USA gas station in Wimauma of $11,948. Ten days later, the couple attempted to rob the Murphy USA gas station in Gibsonton, but were unsuccessful. On July 23, 2016, Brown and Nicholas returned to the Wimauma gas station to attempt another robbery. However, they were arrested before the robbery could take place. Investigators recovered two semi-automatic pistols and nearly 100 rounds of ammunition from inside their vehicle.
This case was investigated by the Hillsborough County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
Former U.S. Congresswoman Corrine Brown Guilty of Fraud Scheme Involving Bogus Non-Profit Scholarship EntityRead the Press Release
Former U.S. Congresswoman Corrine Brown was convicted by a federal jury in Jacksonville, Florida, today for her role in a conspiracy and fraud scheme involving a fraudulent scholarship charity.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida, Division and Chief Richard Weber of the of Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
“Former Congresswoman Corrine Brown violated the public trust, the honor of her position, and the integrity of the American system of government when she abused one of the most powerful positions in the nation for her own personal gain. She shamefully deprived needy children of hundreds of thousands of dollars that could have helped with their education and improved their opportunities for advancement, and she lied to the IRS and the American public about secret cash deposits into her personal bank accounts,” said Acting Assistant Attorney General Blanco. “The Department of Justice is committed to fighting corruption and fraud wherever we find it, at all levels of government, regardless of their power and influence.”
“Former Congresswoman Brown chose greed and personal gain over the sacred trust given to her by the community that she served for many years,” said Acting U.S. Attorney Muldrow. “These guilty verdicts underscore our Office's resolve in holding public officials at all levels of government accountable for their actions. In this case, former Congresswoman Brown stole money that was donated on the false promise of helping further the educational goals of underprivileged children.”
“Former Congresswoman Brown took an oath year after year to serve others, but instead she exploited the needs of children and deceived her constituents to advance her own personal and political agendas,” said Special Agent in Charge Spencer. “Corrupt public officials undermine the integrity of our government and violate the public’s trust, and that is why investigating public corruption remains the FBI’s top criminal priority. I am proud of our special agents, analysts and support personnel who spent countless hours following the money trail in this case, and thank our law enforcement partners at the IRS-CI and U.S. Attorney’s Office for their efforts to hold Brown and her associates accountable for their inexcusable actions.”
“Former Congresswoman Corrine Brown failed to deliver and uphold her duty to file true and correct tax returns by lying about her income and charitable contributions to feed her greed. No one is above the law, including those in a position of public trust, and there isn’t a separate standard when it comes to paying taxes, said Chief Weber. “IRS CI, along with our law enforcement partners, will hold accountable those who violate the tax laws and cheat the taxpayers.”
Brown, 70, of Jacksonville, was convicted on 18 counts of an indictment charging her with participating in a conspiracy involving a fraudulent education charity, concealing material facts on required financial disclosure forms, obstructing the due administration of the internal revenue laws and filing false tax returns.
Judge Timothy J. Corrigan of the Middle District of Florida noted that he would schedule Brown’s sentencing for a later date.
Brown’s co-conspirators, Elias “Ronnie” Simmons, Brown’s long-time Chief of Staff, and Carla Wiley, the president of the fraudulent charity, previously pleaded guilty to their roles in the education charity scheme on Feb. 8, 2017, and March 3, 2016, respectively.
Evidence at trial showed that between late 2012 and early 2016, Brown participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which Brown, Simmons, Wiley and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other charitable causes. Testimony by One Door donors showed that Brown and her coconspirators solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives. Many of the donors were led to believe that One Door was a properly registered 501(c)(3) non-profit organization, when, in fact, it was not.
Contrary to Brown’s representations, Brown, Simmons, Wiley and others used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts, according to trial evidence. In one instance, Simmons deposited $2,100 of One Door funds into Brown’s personal bank account the same day that Brown paid $2,057 to the IRS for taxes she owed. Likewise, trial evidence showed Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use.
Trial evidence also showed that more than $300,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area. According to trial evidence, despite raising over $800,000 in donations, One Door granted only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.
Additionally, trial evidence demonstrated that Brown failed to disclose, among other things, the reportable income she received from One Door and claimed deductions on her tax returns based on false statements that she made certain donations to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.
The FBI and IRS-CI investigated the case. Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida prosecuted the case.
Former U.S. Congresswoman Corrine Brown Guilty of Fraud Scheme Involving Bogus Non-Profit Scholarship EntityRead the Press Release
Jacksonville, FL – Former U.S. Congresswoman Corrine Brown was convicted by a federal jury in Jacksonville, Florida, today for her role in a conspiracy and fraud scheme involving a fraudulent scholarship charity.
Acting U.S. Attorney W. Stephen Muldrow, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida, Division and Chief Richard Weber of the of Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
“Former Congresswoman Brown chose greed and personal gain over the sacred trust given to her by the community that she served for many years,” said Acting U.S. Attorney Muldrow. “These guilty verdicts underscore our Office's resolve in holding public officials at all levels of government accountable for their actions. In this case, former Congresswoman Brown stole money that was donated on the false promise of helping further the educational goals of underprivileged children.”
“Former Congresswoman Corrine Brown violated the public trust, the honor of her position, and the integrity of the American system of government when she abused one of the most powerful positions in the nation for her own personal gain. She shamefully deprived needy children of hundreds of thousands of dollars that could have helped with their education and improved their opportunities for advancement, and she lied to the IRS and the American public about secret cash deposits into her personal bank accounts,” said Acting Assistant Attorney General Blanco. “The Department of Justice is committed to fighting corruption and fraud wherever we find it, at all levels of government, regardless of their power and influence.”
“Former Congresswoman Brown took an oath year after year to serve others, but instead she exploited the needs of children and deceived her constituents to advance her own personal and political agendas,” said Special Agent in Charge Spencer. “Corrupt public officials undermine the integrity of our government and violate the public’s trust, and that is why investigating public corruption remains the FBI’s top criminal priority. I am proud of our special agents, analysts and support personnel who spent countless hours following the money trail in this case, and thank our law enforcement partners at the IRS-CI and U.S. Attorney’s Office for their efforts to hold Brown and her associates accountable for their inexcusable actions.”
“Former Congresswoman Corrine Brown failed to deliver and uphold her duty to file true and correct tax returns by lying about her income and charitable contributions to feed her greed. No one is above the law, including those in a position of public trust, and there isn’t a separate standard when it comes to paying taxes, said Chief Weber. “IRS CI, along with our law enforcement partners, will hold accountable those who violate the tax laws and cheat the taxpayers.”
Brown, 70, of Jacksonville, was convicted on 18 counts of an indictment charging her with participating in a conspiracy involving a fraudulent education charity, concealing material facts on required financial disclosure forms, obstructing the due administration of the internal revenue laws and filing false tax returns. The jury also found Brown guilty of violating the Ethics in Government Act by concealing certain income on the required annual financial disclosure forms she submitted to the U.S. House of Representatives.
Judge Timothy J. Corrigan of the Middle District of Florida noted that he would schedule Brown’s sentencing for a later date.
Brown’s co-conspirators, Elias “Ronnie” Simmons, Brown’s long-time Chief of Staff, and Carla Wiley, the president of the fraudulent charity, previously pleaded guilty to their roles in the education charity scheme on Feb. 8, 2017, and March 3, 2016, respectively.
Evidence at trial showed that between late 2012 and early 2016, Brown participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which Brown, Simmons, Wiley and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other charitable causes. Testimony by One Door donors showed that Brown and her coconspirators solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives. Many of the donors were led to believe that One Door was a properly registered 501(c)(3) non-profit organization, when, in fact, it was not.
Contrary to Brown’s representations, Brown, Simmons, Wiley and others used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts, according to trial evidence. In one instance, Simmons deposited $2,100 of One Door funds into Brown’s personal bank account the same day that Brown paid $2,057 to the IRS for taxes she owed. Likewise, trial evidence showed Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use.
Trial evidence also showed that more than $300,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area. According to trial evidence, despite raising over $800,000 in donations, One Door granted only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.
Additionally, trial evidence demonstrated that Brown failed to disclose, among other things, the reportable income she received from One Door and claimed deductions on her tax returns based on false statements that she made certain donations to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.
The FBI and IRS-CI investigated the case. Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida and Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section prosecuted the case.
Jacksonville Man Arrested and Charged with Distribution of Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the filing of a criminal complaint charging Jason James Neiheisel (27, Jacksonville) with distributing child pornography over the Internet. He faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison. He was arrested by FBI agents at his residence on May 4, 2017.
According to the
criminal complaint , during an online investigation of individuals using the Internet to trade child pornography, an FBI task force officerdownloaded several videos depicting children being sexually abused from a computer at Neiheisel’s residence. When agents made contact with him at his home, Neiheisel told them, among other things, that he had been downloading child pornography for “a while,” and that he enjoyed the “thrill of the hunt” to see what kind of child pornography files he could find.
This case was investigated by the Columbia County Sheriff’s Office and the FBI. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Colombian National Sentenced to Prison for Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Guillermo Pardo (53) to two years and one day in federal prison for aggravated identity theft and passport fraud. He pleaded guilty on February 15, 2017.
According to court documents, on January 22, 2015, Pardo made a false statement in an application for a passport. Specifically, he claimed to be a United States citizen and used information belonging to a real United States citizen to do so. In reality, Pardo was a citizen and national of Colombia (South America) and was ordered to be deported from the United States in 1986, after a felony drug conviction.
This case was investigated by the U.S. Department of State - Diplomatic Security Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Emily C.L. Chang and Special Assistant United States Attorney Christina R. Downes.
Tampa Man Sentenced to Prison for His Role in Stealing over $3 Million in Social Security ChecksRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday today sentenced Darius Vashon Tolbert (38, Tampa) to four years and four months in federal prison for receiving stolen government property and for possessing stolen mail. As part of his sentence, the Court also entered a money judgment in the amount of $569,876.40 and ordered him to pay $151,971.80 in restitution to the Social Security Administration.
A federal jury found Tolbert guilty on August 11, 2016.
According to evidence presented at trial, Tolbert purchased approximately $569,000 of stolen Social Security benefit checks between April and July 2012. The checks, belonging to more than 400 disabled or retired beneficiaries, were all destined for addresses in Pinellas County and had been stolen from the St. Petersburg Processing and Distribution Center by a postal mail handler. They were part of a larger theft of more than $3 million in checks by the same mail handler. The checks that Tolbert purchased were later cashed at a money services business in Live Oak.
On January 11, 2017, a federal jury found the mail handler, Stacy Darnell Mitchell, guilty. He was sentenced on April 5, 2017, to nine years and one month in federal prison.
This case was investigated by the Social Security Administration - Office of the Inspector General, the United States Postal Service - Office of Inspector General, the U.S. Department of the Treasury - Office of Inspector General, and the U.S. Postal Inspection Service, as well as various local enforcement agencies. It was prosecuted by Assistant United States Attorney Patrick Scruggs.
Lehigh Acres Drug Dealer Sentenced to Eight Years in PrisonRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced Tacuma Ivan Horrobin (36, Lehigh Acres) to eight years in federal prison for drug distribution and firearm offenses. He pleaded guilty on January 9, 2017.
According to court documents, in 2015, Horrobin sold nearly $5,000 of heroin to an undercover law enforcement officer. A subsequent search of his residence revealed additional quantities of heroin, along with cocaine, hydrocodone, oxycodone, alprazolam, suboxone, ecstasy, marijuana, and five firearms. As a previously convicted felon, Horrobin is prohibited from possessing firearms under federal law. Officers also recovered numerous items used for the preparation, packaging, and distribution of controlled substances, including cutting agents, digital scales, and cookware from his home.
This case was investigated by the Federal Bureau of Investigation and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Michael Leeman and Michael Bagge-Hernandez.
Lakeland Couple Sentenced for Large Scale Immigration FraudRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Rosa Cingari (68, Lakeland) to 12 years and 7 months in federal prison and Domenico Cingari (68, Lakeland) to 8 years and 1 month in federal prison for conspiracy, making false statements in immigration applications and petitions, and mail fraud. The Court also ordered the Cingaris to forfeit real property located at 130 West Park Street in Lakeland, that was used to facilitate the offenses. As part of their sentence, the Court also entered a money judgment in the amount of $740,880, the proceeds of the charged criminal conduct.
A federal jury found Rosa and Domenico Cingari guilty on November 9, 2016. They were indicted on July 9, 2015.
According to evidence presented at trial, Rosa and Domenico Cingari owned and operated R.E.P.C. Accounting and Translations out of their home on West Park Street in Lakeland. They assisted illegal aliens in obtaining Florida driver licenses by filing fraudulent immigration documents. Specifically, they filed I-589, Applications for Asylum and Withholding of Removal forms; I-130, Petitions for Alien Relative forms; and I-765, Work Authorization forms. Most of the applications and petitions submitted to United States Citizenship and Immigration Services (USCIS) by the Cingaris contained materially false information. The Cingaris filed the fraudulent immigration documents in order to obtain USCIS I-797C Notices of Action. The Cingaris put their mailing address on all of the fraudulent forms so that USCIS would mail the Notices of Action to their business. They then sold the Notices of Action to their alien clients. The Cingaris charged their clients between $500 and $1,300 for the fraudulent immigration applications. They collected at least $740,880 from their clients during the fraud scheme.
"In maintaining the integrity of our immigration system, USCIS has zero tolerance for fraud," said Katherine Baranowski, USCIS Tampa Acting District Director. “Justice has been served with this sentencing, and we remain vigilant in detecting and bringing to prosecution any immigration fraud."
"Immigration fraud subverts the orderly process of citizenship and compromises the security of our homeland,” said Ivan J. Arvelo, acting special agent in charge of HSI Tampa. “HSI will move aggressively to investigate those who corrupt the integrity of our nation's immigration system.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and United States Citizenship and Immigration Services. It is being prosecuted by Assistant United States Attorneys Stacie B. Harris and Simon Gaugush.
Clearwater Man Pleads Guilty to Theft of Government FundsRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Craig Reckley (56, Clearwater) has pleaded guilty to theft of government funds. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the
plea agreement , Reckley deposited 37 U.S. Treasury checks made payable to others into his business bank account. These checks, totaling more than $166,000, were tax refund checks that had been issued by the Internal Revenue Service as the result of the filing of false and fraudulent income tax returns.This case was investigated by the Internal Revenue Service - Criminal Investigation, with the assistance of the Clearwater Police Department. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Naples Man Sentenced in Connection with “PIP” Scheme to Defraud Automobile Insurance CompaniesRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Wisler Cyrius (36, Naples) to three years in federal prison for conspiracy to commit mail fraud and money laundering. The Court also ordered him to pay $270,329.92 in restitution to the victim automobile insurance companies, and to forfeit property in the amount of the proceeds traceable to the offense. Cyrius pleaded guilty on May 18, 2016.
According to the plea agreement, Cyrius conspired with others to operate unlicensed chiropractic clinics and to bill automobile insurance companies for Personal Injury Protection (PIP) benefits. The conspirators also paid patients to induce them to seek treatment at particular chiropractic clinics so they could bill automobile insurance companies for their PIP benefits. In addition, members of the conspiracy participated in staged motor vehicle accidents and submitted claims to automobile insurance companies for PIP benefits based on those fake accidents.
Four others previously pleaded guilty and have been sentenced for their roles in this conspiracy. Garry Joseph (37, Naples) pleaded guilty to conspiracy to commit mail fraud and was sentenced to 3 years and 1 month in federal prison. Anouce Toussaint (33, Naples) was sentenced to 18 months’ imprisonment for conspiracy to commit mail fraud and conspiracy to launder money. Maria Victoria Lopez (44, Moore Haven) pleaded guilty to conspiracy to commit mail fraud and was sentenced to 3 years’ probation. David Adamson (47, Bonita Springs), a licensed chiropractor, pleaded guilty to mail fraud and received 5 years’ probation with 180 days of home detention.
A fifth individual, Nesly Loute, was convicted of conspiracy to commit mail fraud following a six-day jury trial. On February 27, 2017, he was sentenced to 14 years in federal prison.
This case was investigated by the Federal Bureau of Investigation; the State of Florida’s Department of Financial Services Division of Insurance Fraud; the Internal Revenue Service - Criminal Investigation; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistance was also provided by the National Insurance Crime Bureau; the Florida Highway Patrol; the Florida Department of Health; Florida’s Agency for Health Care Administration; the State Attorney’s Offices for the 13th and 19th Judicial Circuits. The following insurance companies also assisted with the case: Travelers, Nationwide, Bristol West, Esurance, Windhaven, Farmers, Direct General, Allstate, State Farm, Progressive, Geico, Infinity, and Foremost. The cases were prosecuted by Assistant United States Attorneys Charles D. Schmitz and David G. Lazarus.
Career Offender Sentenced to More Than 18 Years for Armed Drug TraffickingRead the Press Release
Tampa, FL – U.S. District Judge Charlene E. Honeywell has sentenced Michael D. Richardson, Jr. (25, Hillsborough County) to 18 years and 4 months in federal prison for possessing with the intent to distribute 50 grams or more of a mixture of methamphetamine and for possessing a firearm in furtherance of a drug-trafficking crime. He pleaded guilty on November 2, 2016.
According to court documents, in May 2015, law enforcement officers arrested Richardson after he was seen driving a stolen car. The officers recovered distribution quantities of crack cocaine and methamphetamine from inside the car. In July 2015, as officers approached Richardson in another stolen car, he fled on foot. The officers ultimately arrested Richardson who was carrying a bag containing multiple baggies of methamphetamine. Officers recovered more methamphetamine, hydrocodone (a prescription opiate), and a loaded handgun from inside the stolen car. Between his May and July arrests, Richardson possessed with the intent to distribute 24.6 grams of crack cocaine, 60 hydrocodone pills, and 203 grams of methamphetamine. At the time of his arrest, Richardson had multiple prior felony convictions including robbery, robbery with a firearm, and battery.
This case was investigated by the Drug Enforcement Administration, the Hillsborough County Sheriff’s Office, and the Plant City Police Department. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
Florida Man Sentenced to 30 Years in Federal Prison for Child Enticement, Possession of Child PornographyRead the Press Release
Tampa, FL – U.S. District Judge Richard A. Lazzara today sentenced Michael Joseph Armano (43, Pinellas County) to 30 years in federal prison for child enticement and possession of child pornography. As part of his sentence, the Court also ordered him to pay $72,415 in restitution.
Armano pleaded guilty on January 12, 2017.
According to court documents, Armano used fake social media accounts to pretend to be a child online. Through those accounts, he targeted at least 60 children on social media and convinced them to produce lewd and sexually explicit images of themselves and Livestream those images to him over the Internet. Additionally, according to testimony at sentencing, Armano possessed over 100,000 images of child pornography.
“Today’s sentencing ensures this criminal will never again be in a position of trust,” said Susan L. McCormick, special agent in charge of HSI Tampa. “This predator has abused children in ways that will affect them for their entire lives, but we hope this significant sentence can provide the innocent victims some amount of closure, while also serving as a grave warning to parents to be vigilant about their children’s online activities.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Gregory T. Nolan and Amanda Kaiser.
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.
North Port Convicted Felon Sentenced to 10 Years for Possessing Cocaine, A Firearm, and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Exodus Jerrod Strowbridge (42, North Port) to 10 years in federal prison for possessing cocaine and “crack” cocaine with the intent to distribute it, and for being a felon in possession of a firearm and ammunition. The Court also ordered him to forfeit a Smith & Wesson handgun and 12 rounds of ammunition.
Strowbridge pleaded guilty on January 23, 2017.
According to court documents, in April 2015, law enforcement officers conducted a year-long investigation into Strowbridge’s suspected illegal drug activity. In March 2016, officers from the North Port Police Department executed a state search warrant at his residence and recovered approximately 98 grams of cocaine and “crack” cocaine, as well as a loaded Smith & Wesson handgun that Strowbridge acknowledged owning. The officers also seized drug paraphernalia, including a digital scale, metal razor blades, and clear plastic baggies consistent with packaging cocaine for sale and distribution.
Strowbridge had numerous prior drug convictions and thus was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the North Port Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
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 R. McCray, 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.
Jacksonville Man Convicted of $5 Million Conspiracy and Wire FraudRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Justin Pennington (30, St. Johns County) guilty of one count of conspiracy and nine counts of wire fraud. He faces up to 20 years in federal prison on each count and mandatory restitution of approximately $5 million. His sentencing hearing has been scheduled for August 2, 2017.
According to evidence presented at trial, while Pennington was employed as an Information Technology Director at The Wholesale House, an Ohio-based company with offices in Jacksonville, he and his co-conspirators created a fraudulent company (3 Kings, LLC). 3 Kings was incorporated in Delaware in an attempt to conceal the identity of the owners who purchased products from The Wholesale House at or near cost and then resold those products to consumers and retailers. Unbeknownst to the owners of The Wholesale House, 3 Kings illegally competed with The Wholesale House’s customers and thereby caused significant financial difficulties for the company’s legitimate customers. In all, 3 Kings purchased nearly $40 million of products from The Wholesale House and never paid the entirety of its bills owed to them. Instead, Pennington and his co-conspirators spent tens of thousands of dollars themselves, with Pennington incurring credit card balances of up to $100,000 per month, while owing his employer millions of dollars.
During the trial, Pennington’s co-conspirators testified that he was the mastermind of the scheme, created detailed proposals, named the corporation, incorporated the company, and controlled the corporation’s bank accounts. Further The Wholesale House owners testified that they had personally infused more than $7 million into the company to ensure its survival and to protect the jobs of the company’s more than 60 employees.
This case was investigated by the Federal Bureau of Investigation (FBI). It was prosecuted by Assistant United States Attorneys Mark Devereaux and Jason Mehta.
Former Gainesville Pharmacy Technician Sentenced to 15 Years for Child Exploitation OffensesRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Matthew Bryan Caniff (33, Gainesville) to 15 years in federal prison for attempted online enticement of a child to engage in sexual activity, online solicitation of child pornography, and attempted production of child pornography. He was also ordered to serve a five-year term of supervision release and to register as sex offender after his release from prison. In January 2017, Caniff was convicted by a federal jury. Prior to his arrest, he worked as a pharmacy technician at UF Health Shands Hospital in Gainesville.
According to testimony at trial, beginning on March 31, 2016, Caniff engaged in a series of online text conversations over the Internet with a person he believed to be a 13-year-old child. Unbeknownst to Caniff, this "child" was actually an undercover FBI agent. During the course of these online conversations, Caniff discussed in detail his desire to have sex with the “child” and sent the “child” several explicit photos of himself. He also made several requests for the “child” to send him images engaging in sexual conduct.
In the early morning hours of April 1, 2016, Caniff drove his vehicle from his residence in Gainesville to a home in St. Johns County to meet the “child” for sex. He was arrested at the meeting location by deputies from St. Johns County Sheriff’s Office. A search of his person revealed that Caniff had brought a plastic bag containing several prescription pills that he had taken from UF Health Shands Hospital and had intended to share with the “child” during their planned sexual encounter.
“The FBI devotes extensive resources to fighting the horrific crime of child sexual exploitation," said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville division, "and we will continue to work with our law enforcement partners to remove predators from our communities, and bring justice upon those who seek to take advantage of vulnerable young people."
This case was investigated by the St. Johns County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pharmacist Pleads Guilty to Conspiracy to Pay Healthcare KickbacksRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Benjamin Nundy (39, Ruskin) today pleaded guilty to conspiracy to commit healthcare fraud. He faces a maximum penalty of five years in federal prison.
According to court documents, Nundy was a licensed pharmacist who co-owned Lifecare Pharmacy in Pinellas County with his business partner, Carlos Mazariegos. In 2014, Nundy, Mazariegos, and Dr. Anthony Baldizzi, a licensed physician, agreed that Lifecare would pay Baldizzi illegal kickbacks for prescriptions of compounded medications written by Baldizzi and filled at Lifecare. In May 2014, Mazariegos, acting on behalf of Lifecare, entered into a marketing agreement with Centurion Compounding Inc., a marketing firm in Pasco County that employed sales representatives to market compounded creams for pain and scars to beneficiaries of healthcare plans, especially TRICARE. These compounded creams typically ranged in price from $900 to $21,000 for a one-month supply.
Between May and November 2014, Centurion directed patients that it had recruited and the physicians within its network to send all of their compounded cream prescriptions to Centurion. Centurion then transmitted these prescriptions to Lifecare to be filled. Mazariegos, Nundy, and the principals of Centurion agreed to pay illegal kickbacks to Baldizzi equal to approximately 10% of the after-cost amount of each claim paid by TRICARE and other healthcare benefit programs as a result of compounded medication prescriptions written by Baldizzi and filled by Lifecare, for Centurion-recruited patients. For example, in December 2014, Mazariegos wrote a check to a car dealership for $71,900, funded with the proceeds from the operation of Lifecare, to pay for a BMW for Baldizzi in partial satisfaction of kickbacks that Lifecare and Centurion owed to him.
Lifecare received approximately $5.3 million from TRICARE for claims made for compounded medications prescribed by Baldizzi resulting from this illegal kickback relationship. Mazariegos and Nundy also billed Medicare $1,064,729 for compounded medications that Lifecare made with bulk powder ingredients when they knew that Medicare only reimbursed for such medications when they were made using crushed tablets.
Carlos Mazariegos pleaded guilty to engaging in a conspiracy to commit healthcare fraud on April 10, 2017.
A grand jury returned an indictment charging Baldizzi with conspiracy, receiving healthcare kickbacks, and engaging in illegal monetary transactions. The case is currently set for trial in January 2018.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services - Office of Inspector General, the Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigation, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Sarasota Man Pleads Guilty to Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Obenson Cerulist (27, Sarasota) has pleaded guilty to theft of government property. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in September 2013, a search warrant was executed at a home in Bradenton that Cerulist was sharing with Brandon Taylor. Based on evidence of narcotics activity found during the search, Cerulist pleaded guilty and was sentenced to 41 months’ imprisonment. In addition to narcotics, more than 250 items of personal identifying information (PII) belonging to others was found in the home. In February 2014, a second search warrant was executed at the home of Cerulist’s girlfriend, Loretta Gilchrist, where Cerulist occasionally stayed. PII was also found in Gilchrest’s home, along with prepaid debit cards and additional evidence linking Cerulist to the filing of fraudulent tax returns.
The direct loss to the Internal Revenue Service from the fraudulent tax returns filed during the course of this scheme was $156,399.39. The total amount claimed as a result of fraudulent tax returns was $571,708.
Taylor and Gilchrist were also prosecuted for their roles in this scheme. On August 2, 2016, Taylor was sentenced to 32 months in federal prison for theft of government funds. On February 28, 2017, Gilchrist was sentenced to 30 months in federal prison for theft of government funds.
This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Adam M. Saltzman.
Members of Heroin and Cocaine Conspiracy IndictedRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Joaquin Alvarez-Rodriguez (29, Puerto Rico), Jose Polanco (29, Orlando), Quenten Desue (31, Orlando), Antonio Jackson (31, Orlando), and Daron Lorenza Jones (30, Orlando) with conspiracy to distribute, and to possess with the intent to distribute, heroin and cocaine. If convicted on all counts, Alvarez-Rodriguez and Polanco each face a mandatory minimum term of 10 years, up to life, in federal prison. Desue, Jackson, and Jones each face a maximum term of 20 years’ imprisonment.
Two other co-conspirators, Christian Amaro (34, Orlando) and Joel Gutierrez (34, Orlando), have pleaded guilty to an information charging them with conspiracy to distribute, and to possess with the intent to distribute, heroin and cocaine. They each face a mandatory minimum mandatory term of 5 years, up to 40 years, in federal prison. Gutierrez also pleaded guilty to possessing a firearm as a convicted felon, and he faces a maximum term of 10 years’ imprisonment. As part of their plea agreements, Amaro and Gutierrez agreed to forfeit six firearms, $11,793 in cash, and approximately $22,590 worth of jewelry, all of which are traceable to the charged offenses or to the proceeds of the crimes.
According to court documents, from at least 2015, Alvarez-Rodriguez and Polanco shipped multiple kilograms of cocaine from Puerto Rico to the Orlando area and conspired with Amaro and others to distribute it. Additionally, Amaro and Gutierrez conspired with Desue, Jackson, Jones, and others to distribute cocaine and heroin in central Florida.
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, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Orange County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Embry J. Kidd.