Middle District of Florida
Press releases recorded for this federal judicial district.
Career Offender Sentenced to over 21 Years for Assaulting A Federal Officer with A Dangerous and Deadly WeaponRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Abasi Akeem Smith (30, Orlando) to 21 years and 6 months in federal prison for assaulting a federal officer with a dangerous or deadly weapon. Smith’s criminal history includes multiple drug-trafficking convictions, so he was sentenced as a career offender pursuant to the U.S. Sentencing Commission Guidelines. Moreover, he was on federal supervised release at the time of the assault, and his sentence includes 18 months’ imprisonment for violating the conditions of his supervised release. Smith was convicted on February 7, 2017, following a jury trial.
According to testimony and evidence presented at trial, on March 30, 2016, task force officers with the U.S. Marshals Service Florida/Caribbean Regional Fugitive Task Force were seeking to apprehend Smith pursuant to a felony arrest warrant and located him driving a vehicle. When the officers attempted to block Smith into a parking lot, he rammed one of the officer’s vehicles and then attempted to escape before hitting a fence and another, unoccupied vehicle. Smith subsequently jumped over the fence and fled on foot, before eventually being apprehended.
This case was investigated by the U.S. Marshals Service, the Orange County Sheriff’s Office, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
U.S./Israeli Man Charged in Connection with Threats to Jewish Community Centers, Conveying False Information, and CyberstalkingRead the Press Release
Michael Ron David Kadar, 18, who holds dual United States and Israeli citizenship and who was recently arrested in Israel, was charged today with making threatening calls to Jewish Community Centers in Florida, conveying false information to police dispatch regarding harm to private residents in Georgia, and cyberstalking the Justice Department announced today. The investigation into violent threats to Jewish Community Centers, schools and other institutions across this nation continues, including an ongoing investigation into potential hate crime charges.
According to a federal criminal complaint filed in Orlando, Florida, it is alleged that beginning on or about Jan. 4, 2017, and continuing until March 7, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond and clear the area.
Further, according to a federal criminal complaint filed in Macon, Georgia, it is alleged that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged violent emergency situation concerning multiple individuals at a private residence in Athens, Georgia. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
“Today’s charges into these violent threats to Jewish Community Centers and others represent this Department’s commitment to fighting all forms of violent crime,” said Attorney General Jeff Sessions. “These threats of violence instilled terror in Jewish and other communities across this country and our investigation into these acts as possible hate crimes continues.”
“This kind of behavior is not a prank, and it isn't harmless. It’s a federal crime,” said Director James Comey of the Federal Bureau of Investigation. “It scares innocent people, disrupts entire communities, and expends limited law enforcement resources. The FBI thanks our partners for working with us here at home and around the world.”
“This Department will lend its full support to law enforcement officers and communities so we can fight violent crime, including threats like these,” said Acting Associate Attorney General Jesse Panuccio. “These threats terrorized our communities, and we will continue to enforce this nation’s laws.”
“Violent threats intended to instill fear in our religious communities, schools, and homes are an attack on the very fabric of our society and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The department will continue to vigorously investigate and prosecute those who engage in such violent acts.”
“Kadar allegedly took extraordinary steps to conceal his identity and location through several technological means, including voice alteration, use of proxy IP addresses, virtual currencies and caller ID spoofing,” said Acting Assistant Attorney General Kenneth E. Blanco of the Justice Department’s Criminal Division. “Thanks to the specialized training and expertise of our investigative team, we were successful in identifying, locating and apprehending the person accused of this despicable campaign of threats.”
“The charges brought today demonstrate our resolve to pursue and prosecute those who seek to sow terror and fear in our community, wherever they may hide,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “They also reflect the tireless efforts, dedication and cooperation of agents, analysts and prosecutors within the Justice Department, as well as our state, local and international law enforcement partners.”
“People, especially children, deserve to feel safe in their communities,” said U.S. Attorney G. F. Peterman III for the Middle District of Georgia. “The violent threats made against schools, families, and Jewish Community Centers sought to rob our citizens of that right. I'm proud that the Department of Justice and the FBI have fought tirelessly to restore that sense of safety.”
This matter is being investigated by the FBI, the U.S. Attorney’s Office for the Middle District of Florida, U.S. Attorney’s Office for the Middle District of Georgia, the Computer Crime and Intellectual Property Section of the Department of Justice, and the Civil Rights Division’s Criminal Section. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police. The Criminal Division’s Office of International Affairs is providing assistance with this case.
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S./Israeli Man Charged in Connection with Threats to Jewish Community Centers, Conveying False Information, and Using Electronic Communications to IntimidateRead the Press Release
WASHINGTON – Michael Ron David Kadar, 18, who holds dual United States and Israeli citizenship and who was recently arrested in Israel, was charged today with making threatening calls to Jewish Community Centers in Florida, conveying false information to police dispatch regarding harm to private residents in Georgia, and cyberstalking the Justice Department announced today. The investigation into violent threats to Jewish Community Centers, schools and other institutions across this nation continues, including an ongoing investigation into potential hate crime charges.
According to a federal
criminal complaint filed in Orlando, Florida, it is alleged that beginning on or about Jan. 4, 2017, and continuing until March 7, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond and clear the area.Further, according to a federal
criminal complaint filed in Macon, Georgia, it is alleged that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged violent emergency situation concerning multiple individuals at a private residence in Athens, Georgia. Police and emergency personnel responded to the scene, only to learn that there was no emergency.“Today’s charges into these violent threats to Jewish Community Centers and others represent this Department’s commitment to fighting all forms of violent crime,” said Attorney General Sessions. “These threats of violence instilled terror in Jewish and other communities across this country and our investigation into these acts as possible hate crimes continues.”
“This kind of behavior is not a prank, and it isn't harmless. It’s a federal crime,” said Director Comey. “It scares innocent people, disrupts entire communities, and expends limited law enforcement resources. The FBI thanks our partners for working with us here at home and around the world.”
“Violent threats intended to instill fear in our religious communities, schools, and homes are an attack on the very fabric of our society and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The department will continue to vigorously investigate and prosecute those who engage in such violent acts.”
“Kadar allegedly took extraordinary steps to conceal his identity and location through several technological means, including voice alteration, use of proxy IP addresses, virtual currencies and caller ID spoofing,” said Acting Assistant Attorney General Blanco. “Thanks to the specialized training and expertise of our investigative team, we were successful in identifying, locating and apprehending the person accused of this despicable campaign of threats.”
“The charges brought today demonstrate our resolve to pursue and prosecute those who seek to sow terror and fear in our community, wherever they may hide,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “They also reflect the tireless efforts, dedication and cooperation of agents, analysts and prosecutors within the Justice Department, as well as our state, local and international law enforcement partners.”
“People, especially children, deserve to feel safe in their communities,” said U.S. Attorney G. F. Peterman III for the Middle District of Georgia. “The violent threats made against schools, families, and Jewish Community Centers sought to rob our citizens of that right. I'm proud that the Department of Justice and the FBI have fought tirelessly to restore that sense of safety.”
This matter is being investigated by the FBI, the U.S. Attorney’s Office for the Middle District of Florida, U.S. Attorney’s Office for the Middle District of Georgia, the Computer Crime and Intellectual Property Section of the Department of Justice, and the Civil Rights Division’s Criminal Section. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police. The Criminal Division’s Office of International Affairs is providing assistance with this case.
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two South Florida Men Sentenced to Federal Prison for Aggravated Identity Theft and Wire Fraud ConspiracyRead the Press Release
Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger has sentenced Wilbert Theodore (33, Miami) to four years and nine months in federal prison and Ralph August Lohier (30, Miami) to three years and six months in federal prison for conspiracy to commit wire fraud and aggravated identity theft. The Court also ordered them to pay restitution to the victims of their crimes and to forfeit computer media and a credit card re-encoder they had used as part of their criminal activity.
According to court documents, in 2016, Lohier and Theodore conspired with another individual in south Florida to obtain debit cards that had been re-encoded with legitimate account numbers belonging to others. In doing so, Lohier was able to obtain fraudulent cards with his name embossed on them. Another portion of the cards were embossed with the name “C.S.” Thereafter, Theodore obtained a counterfeit Florida driver license in the name of C.S. After obtaining the cards and the counterfeit license, Lohier and Theodore traveled from south Florida to various places, including Flagler and Orange Counties, using the cards. They purchased merchandise, funded reloadable debit cards, and sent and received multiple money transfers through Western Union.
On March 8, 2016, a trooper with the Florida Highway Patrol conducted a traffic stop on I-95 in Flagler County on a vehicle being driven by Lohier, with Theodore inside. During the stop, the trooper located the counterfeit driver license in the name of C.S., but containing a picture of Theodore. While detained in the trooper’s vehicle, Theodore and Lohier attempted to conceal a large quantity of re-encoded, reloadable debit cards within the rear section of the vehicle.
A search of Lohier’s vehicle revealed an additional quantity of re-encoded, reloaded debit cards in the name of the Lohier and C.S, computer media, and a credit card re-encoder. Further investigation determined that Lohier and Theodore possessed 86 re-encoded cards.
This case was investigated by the Florida Highway Patrol and the United States Secret Service - Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Two Sanford Men Charged in A Drug Conspiracy Involving the Trafficking of Heroin, Cocaine, and Stolen FirearmsRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of a criminal complaint charging Christopher Dickerson (38) and David Heineman (62), both of Sanford, with conspiracy to distribute controlled substances. Dickerson is also charged with possession of a firearm by a convicted felon. If convicted on all counts, Dickerson faces a maximum penalty of life in federal prison. Heineman faces a maximum penalty of 20 years in federal prison. Both men were arrested yesterday and are being detained pending further proceedings.
According to court documents, between March 17 and April 5, 2017, in Orlando, Dickerson and Heineman conspired with each other and sold powder cocaine, heroin, nine firearms, and two bulletproof vests to an undercover agent. Several of the firearms were stolen, including a .45 caliber Glock pistol that was taken on March 23, 2017, from an Orange County Sheriff’s deputy’s vehicle. Due to his multiple prior felony convictions, including possession of cocaine, delivery of hydromorphone, possession of cocaine with intent to sell or deliver, and possession of a firearm by a convicted felon, Dickerson is prohibited from carrying a firearm or ammunition under federal law.
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 was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange County Sheriff’s Office, with assistance from the Seminole County Sheriff’s Office and the Brevard County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Andrew C. Searle.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Jacksonville Gang Member Sentenced to More Than Twelve Years for Selling A Child for SexRead the Press Release
Jacksonville, FL – U.S. District Judge Marcia Morales Howard today sentenced Antwan Harper, a/k/a “Pappy” (22, Jacksonville) to 12 years and 6 months in federal prison for sex trafficking a child. The Court also ordered him to serve a five-year term of supervision after his release from prison, and to register as a sex offender. He pleaded guilty on November 10, 2016.
According to court documents, in December 2015, Harper met a 15-year-old girl and advertised her for prostitution on the Internet. He accepted payment for the girl to perform sexual acts with his associates and fellow gang members. Harper is a documented member of the PYC street gang. On December 18, 2015, he was arrested and the victim was recovered by law enforcement.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Bureau of Alcohol, Tobacco Firearms and Explosives, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
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.
Eight Individuals Sentenced for Scheme Involving Money Laundering and Drug TraffickingRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced eight individuals for their roles in a money laundering scheme. They were indicted in May 2015.
According to court documents, between May 2012 and January 2013, Michael Rounsville (48, Callahan), Manuel Rodriguez (33, Middleburg), Mollie Bass (33, Jacksonville), Hedar Khlaf (34, Jacksonville), Erik Estrada-Lopez (42, Orange Park), Christian Magliano (27, Miami), Diane Harrison (59, Jacksonville), and Bruce Childs (38, Miami) conspired to launder proceeds gained from the illegal distribution of ecstasy. The scheme involved some of the individuals structuring cash deposits to avoid the filing of a Currency Transaction Report, as required for bank transactions involving more than $10,000 in cash. Two members of the conspiracy sold a Cadillac Escalade, that was traceable to drug proceeds, to an undercover agent for $35,000 cash. They also failed to file the required IRS Form (8300) for cash transactions involving more than $10,000. In addition, three of the individuals conspired to use some of the money from the scheme to purchase 109 pounds of marijuana in California and then transport it to Jacksonville for distribution.
Rounsville, who was an officer with the Jacksonville Sheriff’s Office at the time, unlawfully accessed law enforcement databases to conduct a criminal history and driver license check on the undercover agent. He was found guilty of this offense in furtherance of the money laundering scheme by a federal jury on November 14, 2016, and sentenced to four years’ probation, to include 140 days at a residential reentry center, and 150 hours of community service.
Rodriguez pleaded guilty to conspiracy to commit money laundering on August 2, 2016, and was sentenced to three years and five months in federal prison.
On October 6, 2016, Bass pleaded guilty to conspiracy to distribute marijuana. She was sentenced to time served (about 18 months), plus 3 years of supervised release, to include 4 months at a residential reentry center.
Khlaf pleaded guilty on November 2, 2016, to failing to file a Form 8300. He sentenced to a year and a day in federal prison.
On November 14, 2016, a federal jury found Estrada-Lopez guilty of conspiracy to commit money laundering. He was sentenced to three years of supervised release, to include 120 days of home detention, 150 hours of community service, and a $10,000 fine.
Magliano was sentenced to two years of supervised release, to include six months of home detention. He pleaded guilty to conspiracy to distribute marijuana on October 31, 2016.
Harrison, who is the mother of Mollie Bass, was sentenced to three years of probation. She pleaded guilty on August 31, 2016, to structuring bank transactions to evade the cash transaction reporting requirements.
Childs pleaded guilty on October 20, 2016, and was sentenced to one year of probation and 50 hours of community service for structuring bank transactions to evade the cash transaction reporting requirements.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and the Nevada Highway Patrol. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
St. Petersburg Man Sentenced to More Than Six Years for Selling CocaineRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Marquell Romell Brown, a/k/a “Fat” (33, St. Petersburg) to six years and six months in federal prison for selling cocaine. He pleaded guilty on January 5, 2017.
According to court documents, Brown sold cocaine and hydromorphone, a prescription opiate, to a confidential informant and an undercover officer on multiple occasions. During the execution of a search warrant at Brown’s home, law enforcement officers recovered significant quantities of crack cocaine, powder cocaine, and hydromorphone. At sentencing, Brown was held accountable for distributing or possessing with the intent to distribute the following drugs: 43 grams of crack cocaine, 281.3 grams of cocaine, and 167 hydromorphone pills.
This case was investigated by the Pinellas County Sheriff’s Office and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
Ponte Vedra Man Indicted for Lying to OSHA Investigators About Fatal Workplace AccidentRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Peter Nees (49, Ponte Vedra Beach) with making false statements to federal Occupational Safety and Health Administration (OSHA) investigators during the course of an official investigation. If convicted on all counts, he faces a maximum penalty of 15 years in federal prison.
According to the
indictment , in the course of an investigation into a workplace accident that resulted in a fatality, Nees falsely stated to OSHA investigators that he did not alter the scene of the accident in any way after the accident had occurred when, in truth and fact, he knew those statements were false.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 U.S. Department of Labor - Office of Inspector General. It will be prosecuted by Assistant United States Attorney Ashley Washington.
Louisiana Man Sentenced to Four Years in Federal Prison for Threatening the President of the United StatesRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced Kurt Michael Adams (29, Louisiana) to four years in federal prison for mailing threatening communications. He pleaded guilty on February 9, 2017.
According to court documents, on July 20, 2016, Adams, an inmate at the Coleman Federal Corrections Complex in Sumter County, mailed a letter to the White House containing numerous threats to kill the President of the United States and other federal employees. Inside the envelope, he had placed a harmless white powder that he identified as a “chemical agent.” When confronted by agents, Adams admitted that he had sent the letter and that he had “meant every word.” At the time of this incident, Adams was serving a federal prison sentence for mailing threatening communications to the Vice President.
This case was investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former HARC CEO Convicted of Conspiracy to Defraud and Making False Statements to the Social Security AdministrationRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Richard Lilliston (70, Brooksville) guilty of conspiracy to defraud the United States, and to make false statements to the Social Security Administration. He faces a maximum penalty of five years in federal prison and a fine of $250,000. A sentencing date has not yet been set.
According to court documents, the Hillsborough Achievement and Resource Centers (HARC), formerly the Hillsborough Association for Retarded Citizens, was established in 1953 to positively impact the future for all people living with developmental disabilities, such as Alzheimer’s disease and Down syndrome. HARC opened and operated group homes that served its target client population. HARC also spearheaded various community programs for its clients focused on inclusion activities for youths, adults, and seniors with disabilities.
Many of the HARC clients received SSA benefits due to various developmental disabilities. For certain HARC clients who lacked the capacity to manage their own SSA benefits, SSA approved one or more HARC officials to act as a “Representative Payee” to receive the client’s benefits and to use them exclusively for that client’s benefit. As a Representative Payee, the HARC official was required to complete and submit to the SSA a “Representative Payee Report” that included information about each HARC client’s living situation and the financial benefits received and expended on behalf of that client.
Lilliston began working at HARC in 1997 as the Chief Executive Officer. While working in that capacity, he and others orchestrated a scheme whereby HARC client funds, purportedly saved solely for HARC’s developmentally disabled clients’ needs and use in a HARC bank account (“Endowment Account),” had been and were being wrongfully diverted from the clients to the HARC operating account for other purposes.
In November 2009, in an effort to conceal that HARC client funds were being wrongfully diverted from the clients and to make it appear as if HARC’s Endowment Account had been properly established and maintained, Lilliston directed the former HARC CFO and Controller to secure signatures from the developmentally disabled HARC clients on a document backdated to 2007, titled “Pooled Trust Joinder Agreement.” The CFO and Controller did as instructed, knowing that the HARC clients who signed the Pooled Trust Joinder Agreement document did not have the capacity necessary to understand the importance of the document. Notwithstanding, Lilliston and other HARC employees signed the backdated agreements. Trial testimony further revealed that Lilliston was terminated from his HARC CEO position in November 2011, following a discovery by the HARC Board of Directors that he had wrongfully taken an additional $10,000 in salary ($160,000 rather than the approved $150,000) and had allotted himself a car allowance of $1,850 per month.
In June 2013, the U.S. Attorney’s Office filed a Verified Complaint for Forfeiture Rem in a related case (Case No. 8:13-cv-1601-T-17TBM), seeking the forfeiture of $87,000 held in a Synovus Bank account. That complaint raised like allegations that HARC clients’ SSA benefits had been wrongfully diverted from the clients and used by HARC for other purposes and was supported by facts contained in the sworn affidavit of a special agent with the U.S. Department of Health and Human Services - Office of spector General. On September 30, 2013, the district court entered a Default Judgment of Forfeiture in which the court ordered the forfeiture of the $87,000 to the United States.
This case was investigated by the Social Security Administration - Office of the Inspector General, the U.S. Department of Health and Human Services - Office of Inspector General, and the Florida Department of Law Enforcement, along with the State of Florida’s Department of Financial Services - Office of Fiscal Integrity. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant.
Former Army Staff Sergeant Found Guilty of Conspiracy and Paying Illegal KickbacksRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Cordera Hill (27, Tampa) guilty of one count of conspiracy and two counts of offering to pay and paying illegal kickbacks in connection with a federal health care benefit program. He faces a maximum penalty of five years in federal prison on each count. A sentencing date has not yet been set.
According to evidence presented at trial, in October 2014, Hill, a former member of the United States Army, agreed to become a sales representative for Centurion Compounding, Inc., a marketing firm in Wesley Chapel that utilized sales representatives as independent contractors to market compounded medications, including creams for pain and scars, to TRICARE beneficiaries. These creams had very high reimbursement rates, ranging from approximately $4,000 to $17,000 for a one-month supply. Centurion focused its promotional efforts on TRICARE beneficiaries because they knew TRICARE would pay claims for these compounded creams.
Hill paid, and conspired to pay, TRICARE beneficiaries to go to clinics at, among other places, a cosmetics store in a strip mall. Hill also paid for beneficiaries to fly to Tampa from Colorado and Hawaii for the purpose of visiting clinics to obtain compounding creams. The beneficiaries, who had access to free healthcare on base, would visit the cosmetics store after hours and on weekends to obtain prescriptions. Many of the beneficiaries did not need the creams and discarded them in the trash. Hill received in excess of $43,000 in commission payments from Centurion for referring TRICARE beneficiaries to doctors to obtain the creams. TRICARE paid out over $700,000 for claims submitted on behalf of patients that Hill had recruited.
This case was investigated by the Department of Defense, Criminal Investigative Service; the United States Army Criminal Investigation Command, Major Procurement Fraud Unit; the United States Air Force Office of Special Investigations; the Federal Bureau of Investigation; and the U.S. Department of Health and Human Services, Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Mandy Riedel, Charles D. Schmitz, Simon Eth, and Rachelle DesVaux Bedke.
Federal Inmate Sentenced to 15 Additional Years in Prison for Attack on Correctional OfficersRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced Todd Shepard (49, Missouri) to 15 years in federal prison for the forcible assault of a federal officer, inflicting bodily injury, and using a deadly weapon. This new penalty term must be served in addition to his other currently active sentences. Shepard pleaded guilty on January 27, 2017.
According to the facts presented at sentencing, Shepard is imprisoned at FCC-Coleman until 2029 on a federal drug distribution conviction. He also has a separate state sentence of life imprisonment for the 2008 murder of a Missouri law enforcement officer. On the evening of September 18, 2015, Shepard ambushed and stabbed two federal correctional officers with a sharpened piece of metal. Before being subdued, Shepard repeatedly shouted threats to kill the officers. During a subsequent interview with federal agents, Shepard admitted that he had attacked the officers in an attempt to draw attention to a recent loss of prisoner recreation time.
This case was investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Tampa Woman Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. today sentenced Melissa Hayes (36, Tampa) to 27 months in federal prison for conspiracy to commit theft of government property and identity theft. She pleaded guilty on November 1, 2016.
According to court documents, Hayes conspired with others to commit stolen identity refund fraud by depositing U.S. Treasury checks in the names of others into a business bank account that had been established for her restaurant/food business. She then withdrew the funds the same day or the following day, spent the money on point-of-purchase items, or transferred the money to her personal bank account. The Treasury checks were fraudulently endorsed with the name of the intended recipient (the victim) and the name of Hayes’s business prior to being deposited. Four of the persons named on these Treasury checks were deceased.
Between January and June 2012, Hayes deposited 22 fraudulent government and tax refund checks, totaling over $160,000, into her business bank account. She used these fraudulently obtained funds for personal use and shared them with her co-conspirators.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Tampa Man Pleads Guilty to Firearms OffensesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Aaron Clinton Westbrooks (41, Tampa) today pleaded guilty to three counts of being a felon in possession of a firearm and ammunition. He faces a maximum penalty of 10 years in federal prison on each count. A sentencing date has not yet been set.
According to court documents, on three separate occasions, Westbrooks sold pistols and ammunition to an undercover detective. These transactions took place at various locations in Tampa. At the time of the offenses, Westbrooks had several prior felony convictions and therefore is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
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.
Tampa Man Charged with Trafficking in Credit Card Manufacturing EquipmentRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an
indictment charging Joseph Xavier Murphy (27, Tampa) with trafficking in credit card manufacturing equipment. If convicted, he faces a maximum penalty of 15 years in federal prison. Murphy was arrested by law enforcement this morning. He made his initial appearance in federal court and was temporarily detained. A detention hearing and arraignment are set for 1:30 p.m. on Friday, April 21, 2017.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 Starke Police Department and the U.S. Secret Service - Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Jury Convicts Port Orange Man for Firearms and Drug OffensesRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Michael Anthony Conage (32, Port Orange) guilty of possessing hydromorphone with the intent to distribute it and possessing firearms and ammunition as a convicted felon. Due to his extensive criminal history, he faces a mandatory minimum sentence of 15 years, up to life, in federal prison pursuant to the Armed Career Criminal Act. His sentencing hearing is scheduled for July 19, 2017. Conage was indicted on January 25, 2017.
According to evidence presented at trial, over multiple days in August and September 2016, officers with the Port Orange Police Department observed Conage dealing drugs from an apartment. During the execution of a search warrant at the apartment, the officers located several different types of controlled substances, including a large amount of hydromorphone. They also recovered a stolen Glock handgun with an extended, loaded magazine and a loaded .380-caliber handgun. As a previously convicted felon, Conage is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Port Orange Police Department. It is being prosecuted by Assistant United States Attorney Embry J. Kidd.
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.
Florida Man Sentenced to Nearly 20 Years for Transporting Child PornographyRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington today sentenced Tyler Dwayne Waddle (35, Tampa) to 19 years and 7 months in federal prison for transporting child pornography. The Court also ordered him to forfeit an iPod Touch, which he had used to store and send this child pornography. Waddle pleaded guilty on January 31, 2017.
According to court documents, Waddle transported child pornography to undercover agents in May 2016. Agents also forensically reviewed Waddle’s iPod Touch and discovered that it contained approximately 1,900 images of child pornography, at least some of which were sadistic images of prepubescent children.
“Today this predator is being held accountable for his deviant crimes,” said Susan L. McCormick, special agent in charge of HSI Tampa. “But what we’d like everyone to remember is the victims of these horrendous crimes will be affected for their entire lifetime.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Citrus County Man Pleads Guilty to Making Threats to Use an Explosive DeviceRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces that David Wayne Willmott, Jr. (25, Inverness) today pleaded guilty to three counts of making threats to use an explosive device. He faces a maximum penalty of 10 years in federal prison for each count. A sentencing date has not yet been scheduled.
According to court documents, on three separate dates (November 25, 2014, April 17, 2015, and April 23, 2015), Willmott sent e-mails containing bomb threats to various private and government facilities. The locations targeted in the e-mails included a nuclear power plant, an elementary school, a sheriff’s office, two courthouses, and two airports in central Florida. The investigation revealed that the threats had originated from specific computers at a public library in Citrus County, and that Willmott had been the person using the library computer at the time each of the threatening e-mails was sent.
This case was investigated by the Federal Bureau of Investigation, the Citrus County Sheriff’s Office, and the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Armed Career Criminal Sentenced to 15 Years in PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Andrew Jones (37, Miami) to 15 years in federal prison for possessing a firearm as a convicted felon. He pleaded guilty on January 4, 2017.
According to court documents, on September 29, 2015, Jones was arrested outside a Value Pawn in Jacksonville after officers discovered that the vehicle in which he was a passenger had been reported stolen in an armed carjacking. Jones was found to be in possession of a revolver at that time. Due to his multiple prior felony convictions, including armed robbery, attempted first degree murder, possession of a firearm by a felon, and multiple drug offenses, Jones is prohibited from carrying a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Talbot.
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 Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Orlando Man Sentenced for Theft of Government Money and Aggravated Identity TheftRead the Press Release
Orlando, Florida - U.S. District Judge Paul G. Bryon has sentenced Manuel Enrique Santana (36, Orlando) to four years in federal prison for theft of government funds and aggravated identity theft. As part of his sentence, the Court also entered a money judgment in the amount of $64,889.15, the proceeds of the charged criminal conduct. Santana was found guilty by a jury on January 10, 2017.
According to the evidence presented at trial, Santana deposited 47 stolen federal tax refund checks into three of his own bank accounts over a 10-day period in early 2014. The vast majority of checks were endorsed with forged signatures of the intended payees, all of whom had filed returns for the 2013 tax year and were expecting to receive their refund checks by mail. The combined value of the stolen checks was more than $64,000.
This case was investigated by the United States Postal Inspection Service, the Internal Revenue Service - Criminal Investigation, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
Jacksonville Woman Indicted for Possession of Counterfeit Government ChecksRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an
indictment charging Verdell Terria Jones (53, Jacksonville) with 10 counts of possession of counterfeit government checks. If convicted, she faces up to 25 years in federal prison on each of count. Jones was arrested on April 11, 2017, at her home in Jacksonville. According to facts presented at the detention hearing yesterday, this scheme is part of Jones’s involvement with the Sovereign Citizen Movement and her attempts to pass counterfeit government checks in order to pay off various loans. Her trial has been scheduled for June 5, 2017.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the FBI Joint Terrorism Task Force. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Armed Career Criminal Sentenced to More Than 20 Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich has sentenced Ernest L. Chambliss (45, Englewood) to 21 years and 10 months in federal prison for possessing a firearm as a convicted felon. A federal jury found him guilty on December 2, 2016.
According to testimony at trial, Chambliss, a drug dealer in Englewood, sold a firearm and prescription opiates to a confidential informant in April 2015. At the time, Chambliss had numerous prior felony convictions, including five drug-trafficking offenses and two charges of battery on a law enforcement officer.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sarasota County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Gregory T. Nolan and Christopher Murray.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
St. Petersburg “Spice” Manufacturers ConvictedRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Fayez Abu-Aish (51, St. Petersburg) and Nedal Abu-Aish (48, St. Petersburg) guilty of conspiring to distribute, distribution of, and possession with the intent to distribute a substance containing XLR-11. Each faces penalty of 20 years in federal prison. A sentencing date has not yet been set.
Trial testimony revealed that XLR-11 is a synthetic cannabinoid, typically imported from China, that is applied to plant material to create a smokable drug often called “Spice.” On March 28, 2014, following a lengthy investigation, agents from the Drug Enforcement Administration Task Force raided a clandestine laboratory in St. Petersburg where the Abu-Aish brothers were manufacturing these smokable synthetic cannabinoids using the chemical XLR-11. Agents seized finished product, other chemicals, plant material, and packaging materials. Searches of storage units resulted in the seizure of thousands of packages containing XLR-11 laced plant material ready for distribution. Some of the brands seized included “Scooby Snax,” “OMG,” “Mr. Happy,” and “Mind Trip.”
This case was investigated by the Drug Enforcement Administration, the St. Petersburg Police Department, and the Clearwater Police Department. It is being prosecuted by Assistant United States Attorney James C. Preston.
Jacksonville Man Indicted for Wire and Tax Fraud After Stealing More Than $150,000 from His EmployerRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Albert Jason Miller (46, Jacksonville) with wire fraud and filing a false tax-related document. If convicted, he faces up to 20 years in prison on the fraud charge, and up to 3 years’ imprisonment on the false filing charge. The indictment also notifies Miller that the United States is seeking a money judgment in the amount of $162,282.96, which represents the proceeds of the offenses.
According to the
indictment , Miller was an employee of CEVA Logistics, a Netherlands–based contract logistics and freight/transportation management company that has offices in Jacksonville. From 2008 through March 2013, he worked in the company’s procurement department. In May 2010, Miller created a fictitious business named “CEVA” and told vendors to make checks payable to CEVA because CEVA Logistics was undergoing a legal name change. He then began diverting those checks and depositing them into a bank account he had opened in the name of CEVA, where he was the sole authorized signor. Miller diverted a total of $162,282.96 and failed to disclose the stolen proceeds as income on his 2010, 2011, 2012, and 2013 tax returns. Miller used the stolen proceeds to pay for personal expenses.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Florida Department of Law Enforcement, as part of the IRS-Criminal Investigation’s Northeast Florida Financial Task Force. It will be prosecuted by Assistant United States Attorney Beatriz Gonzalez.
Brevard County Man Indicted for Production of Child Pornography and Enticement of A MinorRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Billy Leon Dyer (77, Melbourne) with three counts of production of child pornography and one count of attempted enticement of a minor. If convicted, he faces a minimum mandatory sentence of 15 years, up to 30 years, in federal prison on each production count. He faces a minimum mandatory penalty of 10 years, up to life, in federal prison on the attempted enticement charge. The indictment also notifies Dyer that the United States intends to forfeit the residence located at 7664 Candlewick Drive in Melbourne and a vehicle, both of which are alleged to be items used to facilitate the offenses.
According to the
indictment , from June 22, 2016, through February 9, 2017, Dyer coerced three minors to engage in sexually explicit conduct for the purpose of producing child pornography. Furthermore, between March 4 and March 10, 2017, he used the Internet and a cellphone to attempt to coerce a minor to engage in sexual activity.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 (ICE) Homeland Security Investigations and the Brevard County Sheriff’s Office. It will be prosecuted by Special Assistant United States Attorney Christina R. Downes from the Office of the Principal Legal Advisor, ICE.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pharmacist Pleads Guilty to Conspiracy to Pay Healthcare KickbacksRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Carlos Mazariegos (40, St. Petersburg) has pleaded guilty to conspiracy to commit healthcare fraud. He faces a maximum penalty of five years in federal prison.
According to court documents, Mazariegos was a licensed pharmacist who co-owned Lifecare Pharmacy in Pinellas County with his business partner, Benjamin Nundy. In 2014, Mazariegos, Nundy, 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 located in Pasco County that employed sales representatives to market compounded medications, specifically creams for pain and scars, to beneficiaries of health care plans, especially TRICARE. These compounded creams typically ranged in price from approximately $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 creams 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 health care benefit programs as a result of compounded medications 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 the kickbacks 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.
Nundy is scheduled to plead guilty to engaging in a conspiracy to commit healthcare fraud at a hearing on April 26, 2017.
A grand jury returned an indictment charging Baldizzi with conspiracy, healthcare fraud, receiving health care kickbacks, and engaging in illegal monetary transactions. The case is currently set for trial in May 2017.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department Health and Human Services - Office of Inspector General, the Defense 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.
Florida Business Owner Pleads Guilty in Telemarketing-Related Fraud SchemeRead the Press Release
A Florida business owner pleaded guilty today for his role in selling the personal information of tens of thousands of individuals to fraudulent telemarketers, who used the information to target potential victims for various fraudulent telemarketing schemes.
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 Richard T. Thornton of the FBI’s Minneapolis Field Office, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Ronald John Mendleski, 72, of Bokeelia, Florida, pleaded guilty to one count of wire fraud before U. S. Magistrate Judge Carol Mirando of the Middle District of Florida. Sentencing will be set at a later date.
As part of the plea, Mendleski admitted that for several years he operated an enterprise that provided telemarketers with information called “sweepstakes leads,” which are the phone numbers and personal information of individuals who have responded to mass mailings notifying recipients that they have purportedly won, or are about to win, expensive prizes and enormous cash payouts. Such information is highly valued by fraudulent telemarketers, who seek to identify individuals who may be susceptible to falling for fraudulent scams. Mendleski admitted that he sold this information to scammers, knowing that they intended to use the information to engage in fraud. This scheme generated over $1.5 million for Mendleski, he admitted.
The FBI is investigating this matter. Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section is prosecuting the case.
Florida Business Owner Pleads Guilty in Telemarketing-Related Fraud SchemeRead the Press Release
Fort Myers, FL – A Florida business owner pleaded guilty today for his role in selling the personal information of tens of thousands of individuals to fraudulent telemarketers, who used the information to target potential victims for various fraudulent telemarketing schemes.
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 Richard T. Thornton of the FBI’s Minneapolis Field Office, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Ronald John Mendleski, 72, of Bokeelia, Florida, pleaded guilty to one count of wire fraud before U. S. Magistrate Judge Carol Mirando. Sentencing will be set at a later date.
As part of the plea, Mendleski admitted that for several years he operated an enterprise that provided telemarketers with information called “sweepstakes leads,” which are the phone numbers and personal information of individuals who have responded to mass mailings notifying recipients that they have purportedly won, or are about to win, expensive prizes and enormous cash payouts. Such information is highly valued by fraudulent telemarketers, who seek to identify individuals who may be susceptible to falling for fraudulent scams. Mendleski admitted that he sold this information to scammers, knowing that they intended to use the information to engage in fraud. This scheme generated over $1.5 million for Mendleski, he admitted.
The FBI is investigating this matter. Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section is prosecuting the case.
Palm Harbor Man Pleads Guilty to Defrauding More Than 1,000 Companies Promising Contracting Preferences with FEMARead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Michael Pirolo (48, Palm Harbor) has pleaded guilty to wire fraud. He faces a maximum penalty of 20 years in federal prison.
According to the plea agreement, Pirolo served as the president of Government Contract Registry, Inc. (“GCR”), doing business as FEMA Contract Registration. He employed telemarketers who, during communications with victim-companies, falsely and fraudulently claimed that, for a fee, GCR would “register” the companies with the Federal Emergency Management Agency (FEMA) to enable them to receive preference in obtaining contracts from FEMA. The GCR telemarketers’ communications were based on instructions and scripts that they had received from Pirolo. In particular, the GCR telemarketers falsely and fraudulently stated that for a one-time fee of $500, the customer would be registered with FEMA, and that this registration would place the customer company on a list of preferred vendors. When the need for a vendor arose, the GCR telemarketer falsely stated that FEMA would bypass the contract acquisition process, contact the registered victim-company, and then offer a no-bid contract. At times, Pirolo also instructed GCR telemarketers to go back to victim-companies that had already paid the $500 one-time fee and seek renewal and payment of another fraudulent $500 fee.
To further the scheme, the GCR telemarketers provided victim-companies with an online GCR form that requested the same information as a form on FEMA’s website. FEMA does not charge a fee to companies to complete its form, which assists the agency with market research and does not “register” companies. Completing this form is not part of the United States government’s contract acquisition process. Once GCR telemarketers received the victim-companies’ information, GCR completed and submitted the online FEMA form that then enabled emails to then be sent from FEMA to the victim-companies, giving the appearance that the companies had been “registered.” The FEMA emails gave GCR the appearance of legitimacy.
Approximately 1,200 victim-companies were misled by this scheme, paying GCR at least $604,500.
This case was investigated by the Department of Homeland Security, Office of Inspector General and the General Services Administration, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Adam M. Saltzman.
Maryland Man Indicted on Cyberstalking Charges and for Sending Threatening Communications over the InternetRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announced today the return of an indictment charging Seyed Ali Soroushjou (36, Cockeysville, Maryland) with two counts of cyberstalking and sending threatening communications over the Internet. If convicted, he faces up to five years in federal prison on each charge.
On April 7, 2017, FBI agents arrested Soroushjou at his residence in Maryland. He made his initial appearance in Baltimore and has been detained pending his transport to Jacksonville for further court proceedings.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
Clearwater Man Pleads Guilty to Drug ChargeRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Travis Lemart Hayes (21, Clearwater) has pleaded guilty to possession with the intent to distribute crack cocaine. He faces a maximum penalty of 20 years in federal prison.
According to the plea agreement, following a traffic stop, police officers found crack cocaine and nearly $1,000 in cash in Hayes’s pockets. Inside the car that Hayes was driving, officers found a loaded .45 caliber pistol.
This case was investigated by the Federal Bureau of Investigation and the New Port Richey Police Department. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
California Men Sentenced for Internet Drug TraffickingRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza today sentenced Julian Villa-Gomez Lemus (32, Visalia, CA) and Fadhle Muqbel Saeed (31, Porterville, CA) for conspiracy to distribute a controlled substance. For their respective roles in the conspiracy, Lemus was sentenced to 10 years in federal prison and Saeed was sentenced to 9 years and 6 months’ imprisonment. A third co-defendant, Alfonso Bojorquez-Vazquez (30, Porterville, CA), was sentenced to 7 years and 3 months in federal prison for the same offense on March 27, 2016. As part of Saeed’s sentence, the Court also entered a money judgment in the amount of $1.9 million, the proceeds of the drug conspiracy.
Saeed and Bojorquez-Vazquez previously pleaded guilty. Lemus proceeded to trial and was found guilty by a jury on January 4, 2017.
According to court documents and evidence presented at trial and sentencing, between May 2012 and March 2015, Saeed, Lemus and Bojorquez-Vazquez conspired to distribute drugs over the Internet using illicit online drug marketplaces such as Silk Road and Evolution Marketplace. These marketplaces were websites where individuals could buy and sell drugs anonymously. Payment for Silk Road transactions were conducted using Bitcoin, a semi-anonymous electronic form of payment, which allowed users to purchase drugs without disclosing their financial information or identity. The conspirators used the pseudonym “darkexpresso” to conduct over 1,300 Silk Road drug transactions, resulting in gross proceeds of over $1.9 million. These transactions included methamphetamine, hydrocodone, marijuana, steroids, cocaine, and other controlled substances. The drugs were concealed using various methods, and sent to purchasers throughout the United States and Australia.
After law enforcement officials shut down and seized the Silk Road website, Saeed and Bojorquez-Vazquez continued the operation on the Evolution Marketplace. Undercover DEA agents contacted Saeed and Bojorquez-Vazquez on the website and purchased a total of approximately 96 hydrocodone pills and approximately 473 grams of methamphetamine from them over the course of several online transactions.
This case was investigated by the Drug Enforcement Administration and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Vincent S. Chiu and Alejandro J. Salicrup.
Alabama Man Indicted on Federal Charges of Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces today the return of an indictment charging Christopher Jaye Boykin (34, Lisman) with four counts of receiving child pornography over the Internet. If convicted, he faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison on each of count. Boykin was arrested on March 14, 2017, at his home in Alabama. His trial is scheduled for June 5, 2017.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff’s Office, and the Jacksonville Beach Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
North Port Man Sentenced in Check Cashing Bank Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Michael Wesley (49, North Port) to 27 months in federal prison for his role in a bank fraud scheme. The Court also ordered him to pay restitution to the banks involved. Wesley pleaded guilty on December 12, 2016.
According to court documents, Wesley was engaged in a fraud scheme in which he would obtain checks that had been stolen from United States Postal Service mailboxes. He would then use the personal information printed on those stolen checks to cash, at the victim’s own bank, worthless checks made payable to the victim but that had been written on closed accounts from other banking institutions. In this manner, Wesley frequently obtained cash from federally insured financial institutions.
This case was investigated by the United States Postal Inspection Service, with assistance from the Sheriff’s Offices in Manatee, Hillsborough, Seminole, and Lee Counties, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Bradenton Man Indicted for Distributing Fentanyl That Resulted in DeathRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging David Earl Johnson (36, Bradenton) with distribution of fentanyl resulting in death and distribution of fentanyl. If convicted on the first charge, he faces a mandatory minimum of 20 years, up to life, in federal prison. If convicted of the second offense, he faces a maximum sentence of 20 years’ imprisonment. The indictment also notifies Johnson that the United States intends to forfeit assets alleged to be traceable to the proceeds of the offenses.
According to the indictment, Johnson distributed fentanyl on two occasions on January 11, 2017, the first of which resulted in the death of “K.H.”
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the Manatee County Sheriff’s Office, with assistance from the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Dan Baeza.
Coral Gables Woman Sentenced for Skimming Social Security and Medicaid Benefits from Mentally Ill and Elderly BeneficiariesRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven has sentenced Ilfrenise Charlemagne (68, Coral Gables) to 33 months in federal prison for wire fraud. She pleaded guilty on November 8, 2016.
According to court documents, starting in 2008, Charlemagne owned and operated Hilcrest Residential ALF, an assisted living facility in St. Petersburg for the aged and mentally ill. The majority of the funds used to operate Hilcrest came from the Medicaid and Social Security benefits of the residents. In May 2011, the Florida Agency for Health Care Administration (AHCA) forcibly closed Hilcrest after determining that the facility was heavily infested with bedbugs and roaches; that residents were found to be unkempt with evidence of confusion and disassociation; that residents were hungry and underfed; that Charlemagne failed to provide residents with a safe and sanitary living environment; and that residents were at risk of serious injury and major health problems. In October 2011, Charlemagne entered into a settlement agreement with AHCA promising not to own or operate an ALF for a period of five years.
That same month, Charlemagne changed Hilcrest’s name to Pleasant Alternative and began the process of reopening. She applied to AHCA for a license to operate an ALF using the identity of a straw owner. In 2012, Charlemagne reopened the ALF at the same location and again began housing Medicaid and Social Security beneficiaries who were primarily mentally ill adults. By April 2013, AHCA again shut down the facility, finding that was no heat or air conditioning; that residents weren’t provided with adequate medication or food; that rodents, vermin, and debris were found throughout the facility; and that the facility posed a serious and immediate danger to the residents and the public. During her time operating the ALFs, Charlemagne diverted the more than $1 million in government benefits intended for the care and housing of her residents. She used some of the monies for her own personal use, including cash withdrawals, credit card payments, car payments, and rent, among other things.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services - Office of Inspector General, the State of Florida Medicaid Fraud Control Unit, and the Social Security Administration - Office of the Inspector General. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Postal Employee Sentenced to More Than 9 Years in Prison for Stealing over $3 Million in Social Security ChecksRead the Press Release
Tampa, Florida – U.S. District Judge James Moody today sentenced Stacy Darnell Mitchell (48, Tampa) to nine years and one month in federal prison for theft of stolen government property and mail theft. As part of his sentence, the Court also entered a money judgment in the amount of $2,085,649.50 and ordered him to pay restitution to the Social Security Administration in the amount of $720,881.60. A federal jury found Mitchell guilty on January 11, 2017.
According to evidence presented at trial, Mitchell was a mail handler who had worked for more than 15 years at the Processing and Distribution Center (PDC) in St. Petersburg, which processes mail for all of Pinellas County. From January to October 2012, Mitchell stole Social Security benefit checks totaling over $3 million from that facility. More than 3,000 checks were taken from the PDC in 2012, all of which were destined for disabled or retired beneficiaries living in Pinellas County. Mitchell sold the checks to an accomplice in Tampa, who then sold the checks to a network of individuals to be cashed at various convenience stores and check cashing businesses in Florida and elsewhere. Four of those accomplices have been convicted of federal charges related to the same theft scheme.
This case was investigated by the United States Postal Service - Office of Inspector General, the Social Security - Office of the Inspector General, the United States Department of the Treasury - Office of Inspector General, and the United States Postal Inspection Service, as well as various local enforcement agencies. It was prosecuted by Assistant United States Attorney Patrick Scruggs.
Developer Pleads Guilty to Embezzling from A Bankruptcy EstateRead the Press Release
Tampa, FL – Acting United States W. Stephen Muldrow announces that Clark D. East (59, Sugarland, TX) has pleaded guilty to embezzlement from a bankruptcy estate. He faces a maximum penalty of five years in federal prison.
According to the plea agreement, East obtained a loan from Stearns Bank, a member bank of the Federal Home Loan Bank of Minneapolis, to develop a property located at 3700 Ulmerton Road Plaza in Clearwater. East subsequently defaulted on the loan and Stearns Bank obtained approval to sell the property at foreclosure on March 27, 2012. The day before the scheduled foreclosure sale, East filed for bankruptcy protection with the United States Bankruptcy Court for through his company, 3700 Ulmerton Road, LLC. During the bankruptcy proceedings, East was ordered to sell the property and to remit $1.2 million in sales proceeds to Stearns Bank. Rather than repaying Stearns Bank, East embezzled approximately $800,000 of proceeds that were part of the bankruptcy estate and due to Stearns Bank.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. The Office of the United States Trustee for the Middle District of Florida, Tampa Division also provided substantial assistance. The case is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay G. Trezevant.
Third Conspirator Pleads Guilty to 2012 Cross BurningRead the Press Release
Tampa, FL – William A. Dennis (56, Port Richey) pleaded guilty today to one count of conspiring with others to threaten, intimidate, and interfere with an interracial couple’s enjoyment of their housing rights, announced Acting U.S. Attorney W. Stephen Muldrow and Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division.
According to court documents, in September and October 2012, Dennis was living on Seward Drive in Port Richey in a predominantly white community. After an interracial couple moved next door, Dennis joined others in harassing the African-American neighbor with racial slurs and derogatory statements.
On Halloween night, Dennis attended a party at a neighbor’s house, where several Seward Drive residents decided to burn an over six-foot tall cross in the front yard of the interracial couple in order to intimidate them and force them to move from the residence. Using wood and tools from the host of the Halloween party, Dennis and his co-conspirators constructed a wooden cross, and Dennis poured gasoline on the cross. Dennis and a co-conspirator carried the cross to the victims’ front yard, leaned it against their mailbox, and Dennis instructed the co-conspirator to set the cross on fire.
“This guilty plea underscores our ongoing commitment to aggressively investigate and prosecute individuals who commit hate crimes,” said Acting U.S. Attorney Muldrow.
“The defendant and his co-conspirators’ racially-fueled actions to threaten and intimidate a couple in their own home and neighborhood are reprehensible and will not be tolerated in our communities,” said Acting Assistant Attorney General Wheeler. “The Justice Department is committed to vigorously prosecuting those who engage in such violent acts of hate.”
“The FBI pledges to remain vigilant in protecting our communities from hateful acts of bias,” said Special Agent in Charge Paul Wysopal of the FBI Tampa Division. “This case is an example of that commitment and determination to investigate crimes of hate and bring the offenders to justice.”
Two of Dennis’ co-conspirators, Thomas H. Sigler, III, and Pascual Carlos Pietri, previously pleaded guilty to the same charge. Pietri was sentenced to 37 months’ imprisonment, and Sigler’s sentencing date is pending.
This case was investigated by the FBI. It was prosecuted by Assistant U.S. Attorneys Josephine W. Thomas and Simon A. Gaugush and Trial Attorney William E. Nolan of the Civil Rights Division’s Criminal Section.
Tampa Man Sentenced to More Than Eleven Years in Federal Prison for Fraud, Identity Theft, and Firearms OffensesRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Larry Chance Cox (37, Tampa) to seven years in federal prison for conspiracy and aggravated identity theft. The judge ordered that he serve 54 months of his sentence consecutively to the 87-month term of incarceration that U.S. District Judge Charlene Edwards Honeywell sentenced him to last week for being a felon in possession of firearms. Between the two cases, Cox has been sentenced to a total of 11 years and 9 months in federal prison. He pleaded guilty in January 2017.
According to court documents, Cox’s coconspirator, Anthony Harris, worked as an administrative employee at a pediatric gastroenterology practice where he had access to patient medical records containing the personally identifiable information (“PII”) of the practice’s patients, their parents, and their guardians. Cox directed Harris to steal the PII from his employer so that he, along with Maurice Rahmaan and others, could use the information to apply for credit cards online and to file fraudulent federal income tax returns. The conspirators further agreed to share in the proceeds of the credit card and tax fraud. Investigators recovered the PII of more than 13,000 individuals from Cox’s bedroom. In addition to applying for scores of unauthorized credit cards, the conspirators also attempted to file approximately 180 fraudulent federal income tax returns using the PII.
When law enforcement officers searched Cox’s residence in April 2015, they recovered an AK-47 assault rifle, a Mossberg 500 12-guage shotgun, a stolen Maverick model 88 12-guage shotgun, and a stolen Remington model 710 .243 gauge shotgun. At the time, Cox was a convicted felon and therefore prohibited from possessing a firearm or ammunition under federal law.
Anthony Harris pleaded guilty to conspiracy and aggravated identity theft. On March 29, 2017, he was sentenced to six years in federal prison. Maurice Rahmaan pleaded guilty to conspiracy and aggravated identity theft on January 24, 2017, and he is scheduled to be sentenced on April 10, 2017.
This case was investigated by the Tampa Police Department, the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
California Man Sentenced for Tax Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Walter Drakeford (72, Santa Monica, CA) to two years in federal prison for attempting to interfere with the administration of the internal revenue laws. He pleaded guilty on May 17, 2016.
According to court documents, between September 2006 and March 2009, Drakeford and another individual falsely purported to own the rights to landfill methane credits. They marketed the purported credits to a network of tax return preparers for use on individual taxpayers’ tax returns, despite knowing that the credits were non-existent and/or not able to be claimed by the individual taxpayers. The tax return preparers advised their individual taxpayer-clients to claim the credits on their tax returns. If an individual taxpayer received the tax refund as a result of the landfill methane credit claimed, they were obligated to remit a substantial portion of that refund, frequently as much as 80%, to Drakeford and others.
After questioning by the IRS regarding the purported credits, Drakeford presented false and fraudulent documentation to the IRS regarding purported Devonian shale credits in an unsuccessful effort to prevent the IRS from attempting to collect the monies owed resulting from the disallowances of the purported landfill methane credits.
When that effort failed, Drakeford knowingly caused to be presented to the IRS fraudulent and false amended tax returns that claimed purported dry hole expenses, again in an unsuccessful attempt to prevent the IRS from attempting to collect the monies owed from the purported landfill methane credits. Drakeford and others provided the tax return preparers a formula by which to calculate the amounts of the dry hole expenses to be claimed by the individual taxpayers. The formula was designed to fraudulently eliminate the individual taxpayers’ debts to the IRS based on the disallowance of the false and fraudulent landfill methane credits.
The government estimates the total amount of false and fraudulent credits claimed in this case to be $4,211,757, a substantial amount of which has been recovered from the individual taxpayers.
This case was investigated by Internal Revenue Service, Criminal Investigation. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Rachelle DesVaux Bedke.
Tampa Man Sentenced to More Than Ten Years for Conspiring to Distribute Crack CocaineRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich has sentenced Curtis Williams, Jr. (34, Tampa) to 10 years and 10 months in federal prison for conspiracy to possess with the intent to distribute 28 grams or more of cocaine base, also known as crack cocaine. He pleaded guilty on November 29, 2016.
According to court documents, between January and July 2016, Williams and his co-conspirator, Brian Allen, engaged in a mutually beneficial business arrangement in which Williams supplied Allen with crack cocaine to sell on the street. During the seven-month period, undercover law enforcement officers bought crack cocaine from Allen on 12 occasions, totaling more than 128 grams.
Allen pleaded guilty on January 17, 2017. His sentencing hearing is set for May 12, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorneys Michael Leeman and Mike Gordon.
Three Indicted for Scheme to Facilitate Evasion of Workers’ Compensation Laws and Employment of Undocumented Aliens in Construction IndustryRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an
indictment charging Orlando residents Anyi (“Angie”) Artica-Romero (31), Joaquin Mejia-Murillo (62), and Milton Noel Romero (34) with wire fraud and conspiracy to commit wire fraud. Artica-Romero is charged in 56 counts, Mejia-Murillo is charged in 1 count, and Romero is charged in 6 counts. Each count carries a maximum penalty of 20 years in federal prison. The indictment also notifies the defendants that the United States intends to seek forfeiture of approximately $812,000, which is the amount of proceeds obtained as a result of the offenses.According to the indictment, Mejia-Murillo registered a corporation called JM Construction Services, Inc. with the State of Florida. He then applied for a workers’ compensation insurance policy for September 2015 through September 2016 to cover six employees and an estimated annual payroll of $140,800.
The insurance company issued the policy for an annual premium of $17,152 based on the payroll information set forth in the application. Subsequent amendments to the policy resulted in its covering 19 employees and an estimated payroll of $410,800, at a revised premium of $38,860.
Under Florida law, any business that engages in construction work must secure and maintain workers’ compensation insurance, and the failure to do so is a felony. Construction contractors must require subcontractors to provide proof that they have workers’ compensation insurance.
Artica-Romero and Mejia-Murillo “rented” the JM Construction insurance policy to numerous contractors and subcontractors who employed hundreds of workers, many of whom are suspected of being undocumented aliens. To do so, they directed the insurance agent to send a certificate of insurance to the contractors and subcontractor as purported proof of sufficient workers’ compensation insurance.
The contractors and subcontractors wrote payroll checks to JM Construction for work performed by their employees. Mejia-Murillo then cashed the checks and gave the money to Artica-Romero to pay the workers. Artica-Romero kept four percent of each check as a fee for their services.
Between September 2015 and August 2016, Artica-Romero and Mejia-Murillo cashed payroll checks totaling $9,419,965, with their four percent fee totaling $376,798. No state or federal payroll taxes were deducted from the workers’ pay. The annual premium for a workers’ compensation insurance policy covering a payroll of $9,419,965 would have been approximately $1,088,078.
On August 4, 2016, the State of Florida Department of Financial Services, Division of Workers’ Compensation, served a Stop-Work Order on JM Construction alleging that it had failed to secure the payment of workers’ compensation by materially understating or concealing payroll. Subsequently, Mejia-Murillo left the country for Honduras.
To continue the scheme, Artica-Romero began working with Milton Romero, who had registered a company called Milton Statewide General Services, Inc., with the State of Florida. Romero, on behalf of Milton Statewide, obtained workers’ compensation insurance to cover six employees and an estimated payroll of $100,000 for an annual premium of $20,002. A certificate of insurance was issued and then “rented” to numerous contractors and subcontractors, in the same way that JM Construction’s certificate had been rented.
Between August 2016 and March 11, 2017, Artica-Romero and Romero cashed payroll checks totaling $10,883,772, with their four percent fee totaling $435,351. Again, no state or federal payroll taxes were deducted from the workers’ pay. The annual premium for a workers’ compensation insurance policy covering a payroll of $10,883,772 would have been approximately $1,750,453.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Financial Services, Division of Investigative and Forensic Services. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Former Tampa Police Detective Pleads Guilty to Receipt of Stolen Government PropertyRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Eric Houston (56, Riverview) today pleaded guilty to receipt of stolen government property. He faces a maximum penalty of 10 years in federal prison.
According to the
plea agreement , while working as a detective with the Tampa Police Department, Houston allowed a co-conspirator, Rita Girven, to pay off more than $5,000 in credit card debt that he and his wife, LaJoyce Houston, had accrued on their Home Depot credit card, knowing that the payoff funds had been obtained from fraudulent federal income tax refunds.In a related case, on March 16, 2015, Girven pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. On November 20, 2015, she was sentenced to 12 years in federal prison.
LaJoyce Houston’s case is pending trial for her alleged role in the conspiracy.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Florida Asset Manager Pleads Guilty to Investment Fraud ConspiracyRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Steven Zoernack (55, Sarasota) today pleaded guilty to conspiring to commit wire fraud. He faces a maximum penalty of five years in federal prison, a $250,000 fine, and mandatory restitution to his victims in the amount of $2,890,518.54.
According to the
plea agreement , Zoernack owned and operated an investment advisory firm, EquityStar Capital Management LLC (“EquityStar”), through which he formed and managed multiple hedge funds, including the Petroleum Black Energy Fund, the Global Partners Fund, and the Momentum Growth Fund. Beginning in August 2012, Zoernack and his co-conspirators marketed these funds to accredited investors across the United States and Canada from offices in Sarasota and Newport Beach, California. They raised more than $6 million through their solicitations.In marketing the funds, Zoernack failed to disclose numerous material facts about his background and the funds he was managing. Specifically, he failed to disclose that he had been convicted on federal wire fraud charges in 2007; had previously filed for bankruptcy; had a history of tax liens and adverse money judgments; and still owed hundreds of thousands of dollars in restitution to past fraud victims. In fact, Zoernack actively sought to conceal his past by misappropriating fund assets to pay an online reputation manager to manipulate Internet search engine results about him to prevent potential investors from learning of his past. He also routinely lied about his educational background, his expertise as an investment manager, and his experience in the financial industry. Similarly, Zoernack lied about the educational backgrounds and professional experience of his employees, as well as the size of the firm’s staff. He repeatedly impersonated former EquityStar employees and corresponded with investors online using fictitious names and phony email accounts. In addition, he lied to potential investors about his portfolio’s ratings, profits, market returns, and losses.
After obtaining investor contributions, Zoernack begin misappropriating fund assets for his personal use. Specifically, he made monthly withdrawals of unauthorized “salaries” and “bonuses” in amounts ranging from $12,000 to $25,000 and used these and other fund assets to pay for personal and non-business related expenses, none of which were disclosed to investors. In total, through a combination of trading losses and the misappropriation of fund assets, Zoernack lost millions of dollars of investors’ money.
This case was investigated by the Federal Bureau of Investigation, alongside a parallel civil enforcement action brought by the Securities and Exchange Commission. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
Jacksonville Man Sentenced to More Than 7 Years for Receiving Child Sex Abuse Videos via the InternetRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Richard Daniel Lord (58, Jacksonville) to seven years and three months in federal prison for receiving sexual abuse videos of child over the Internet. He was also ordered to serve a life term of supervision and to register as a sex offender upon his release from prison.
According to court documents, on September 30, 2016, FBI agents executed a federal search warrant at Lord’s Jacksonville residence, while he was at home. During an interview with agents, Lord admitted to using his cellphones to search for, download, and view child pornography; that he was most interested in images and videos of children between the ages of 10-12 years old; and that he searched for child pornography “constantly” and could not control himself. A forensic examination of Lord’s cellphones revealed six videos that he had downloaded depicting prepubescent children being sexually abused.
This case was investigated by the Columbia County Sheriff’s Office, the Florida Department of Law Enforcement, the Jacksonville 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.
Colombian Man Sentenced to More Than 24 Years for Smuggling Cocaine on Board A Fishing VesselRead the Press Release
Tampa, FL – U.S. District Judge Charlene Honeywell has sentenced Carlos Eyder Paz-Utima (41, Colombia, South America) to 24 years and 4 months in federal prison for conspiring with others to distribute five kilograms or more of cocaine on vessels subject to the jurisdiction of the United States, and for conspiring with others to distribute five kilograms or more of cocaine intending that it be unlawfully imported into the United States. He pleaded guilty on December 19, 2016.
According to court documents, Paz-Utima was responsible for several marine smuggling ventures in international waters of the Caribbean Sea. In September 2011, the United States Coast Guard interdicted a load of over 1,000 kilograms of cocaine that was being smuggled aboard the fishing vessel Diamada. Paz-Utima was the organizer and an investor in the drug trafficking organization, and was responsible for at least three other maritime smuggling ventures aboard vessels traveling from Colombia to Honduras.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Joseph Ruddy and Special Assistant United States Attorney Rebecca L. Castaneda.
Brandon Man Pleads Guilty to Paying Health Care KickbacksRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Nikkos Hamlett (29, Brandon) has pleaded guilty to conspiracy to pay kickbacks in connection with a federal health care benefit program. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Hamlett was an active duty Airman with the U.S. Air Force stationed at MacDill Air Force Base in Tampa. Beginning in September 2014, he became a sales representative for Centurion Compounding Inc., a marketing firm located in Wesley Chapel. Centurion utilized sales representatives as independent contractors to market compounded medications, specifically creams for pain and scars, to health care benefit program beneficiaries. Centurion focused its promotional efforts on TRICARE beneficiaries based upon an understanding and belief that TRICARE would pay claims for these compounded creams.
Hamlett was initially recruited into the Centurion scheme by other active-duty military members to be a patient and to obtain compounded creams marketed by Centurion. Between September 2014 and January 2015, Hamlett caused TRICARE to pay $84,487.43 in claims for his prescriptions for pain cream and scar cream.
Hamlett agreed and conspired with other members of his Centurion sales marketing group, self-labeled “team cream,” to give and offer to give TRICARE beneficiaries incentives, such as cash, meals, entertainment, and travel expenses, to visit a doctor and obtain prescriptions for Centurion-marketed compounded creams for which Hamlett and other “team cream” members would receive commissions. Between September 2014 and February 2015, Hamlett caused TRICARE to be billed approximately $640,577 for these creams, from which Centurion and Hamlett received commissions. Hamlett received commissions from Centurion totaling approximately $30,000 and, at the time Centurion shut down in February 2015, he was owed an additional $66,000 in commissions.
This case was investigated by the Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigation, the Federal Bureau of Investigation, the Department of Health and Human Services – Office of Inspector General, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Apopka Resident Pleads Guilty to Multiple Gun and Drug ChargesRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that Jesse B. Ingram, Jr. (34, Apopka) yesterday pleaded guilty to two counts of being a felon in possession of a firearm; two counts of attempting to possess with the intent to distribute and attempting to distribute heroin; and one count of possessing a firearm in furtherance of a drug trafficking crime. He faces a maximum penalty of 10 years in federal prison for each count of being a felon in possession of a firearm, and up to 20 years in federal prison for each drug distribution charge. He also faces a mandatory minimum penalty of five years, consecutive to the sentence imposed for the other charges, for possessing a firearm in furtherance of his drug trafficking crime.
According to court documents, Ingram possessed a firearm while attempting to distribute a substance that he believed was heroin. As a previously convicted felon, he is prohibited from carrying a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Orange County Sheriff’s Office, and the Apopka Police Department. It is being prosecuted by Assistant United States Attorney Sean P. Shecter.
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.