Middle District of Florida

Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Giday Kidane (34, Tampa) has pleaded guilty to theft of government property and aggravated identity theft. He faces a maximum penalty of 10 years in federal prison for the theft count and a mandatory consecutive term of two years in federal prison for the aggravated identity theft count.

 

According to the

plea agreement , between November 2016 and January 2017, Kidane, posing as “Anwar,” sold and offered to sell stolen U.S. Treasury checks to a Confidential Informant (CI) in exchange for half of the face value in cash. On one occasion, Kidane presented the CI with two stolen U.S. Treasury checks for sale: one for $4,583, and a second check for $20,679. The pair agreed that the CI would pay Kidane $7,200 for both checks, plus an additional amount after the larger check had been successfully deposited.

 

This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Eric Gerard.

Tampa, FL – Acting United States W. Stephen Muldrow announces that Ross D. Pickard (63, Naples) today pleaded guilty to conspiracy to commit loan and credit application fraud. He faces a maximum penalty of five years in federal prison.

 

According to the

plea agreement , Pickard was a senior loan officer at JP Morgan Chase Bank. He conspired with others in a scheme to defraud the bank by completing, certifying, and submitting mortgage loan applications on behalf of borrowers that contained false and fraudulent statements. The false statements included overinflated income and assets, understated liabilities, and false occupancy. By relying on Pickard’s false and fraudulent statements on the loan applications, JP Morgan Chase funded mortgage loans for otherwise unqualified borrowers.

 

The approximate losses suffered by JP Morgan Chase Bank associated with Pickard’s criminal conduct exceeds $33 million.

 

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Special Assistant United States Attorney Chris Poor.

Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Juan Soliz (24, Pomona Park) and Kayla Soto (23, Pomona Park) for transporting two kilograms of cocaine from Texas to Florida. Soliz was sentenced to five years’ imprisonment and Soto was sentenced to two years and six months in federal prison. Pursuant to their plea agreements, they have agreed to forfeit a Chevrolet Traverse and a Mercedes Benz E350 that were used to transport the cocaine. In addition, they will forfeit $5,335, which are traceable proceeds of the offense. Soliz and Soto pleaded guilty on October 20, 2016.

 

According to court documents, on June 25, 2016, the couple drove the Mercedes Benz from Palatka, Florida to Waycross, Georgia, where they received instructions from a co-defendant regarding the pickup location for a shipment of cocaine. Soliz and Soto then drove to Houston, Texas, stopped briefly to pick up two kilograms of cocaine, and then immediately started their return trip to Florida.

 

Troopers from the Florida Highway Patrol, working with DEA, stopped Soliz and Soto as they entered Putnam County on June 28, 2016. The two kilograms of cocaine were located inside a hidden compartment in the trunk of the car.

 

This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Frank Talbot.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Guarino Edwards Broccoli, a/k/a Gary Broccoli, a/k/a Gary Edwards (53, Fort White), with forced labor and aggravated sexual abuse. If convicted, he faces a maximum penalty of life in federal prison. The indictment also notifies Broccoli that the United States intends to forfeit his residence, including all manufactured homes, located at 439 SW Tara Court in Fort White.

 

According to the

indictment , Broccoli obtained the labor and services of a female using force and threats of force, causing her to believe that if she did not perform such labor and services she would suffer serious harm. It is also alleged that this offense included aggravated sexual abuse.

 

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

 

This case was investigated by the Columbia County Sheriff’s Office and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ashley Washington.

 

This investigation is ongoing. The U.S. Attorney’s Office is seeking other potential victims related to this individual and/or the location listed in this indictment. Anyone with additional information is encouraged to contact the FBI -Jacksonville Field Office at 904-248-7000.

Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Jonathan Kyle Lanier (23, Leesburg) with carjacking, conspiracy to commit carjacking, brandishing a firearm in furtherance of carjacking, and possession of a firearm by a convicted felon. If convicted, he faces a maximum penalty of 15 years in federal prison for the carjacking count, up to 5 years’ imprisonment for the conspiracy count, a minimum mandatory 7-year penalty for brandishing a firearm, and up to 10 years in federal prison for the felon in possession charge. The indictment also notifies Lanier that the United States intends to forfeit three firearms that are alleged to have been used in facilitating the offense. Lanier made his initial appearance in Ocala today and was ordered detained pending trial.

 

According to the indictment, on December 23, 2016, Lanier and three other individuals conspired to rob a male victim of his money, other personal property, and his automobile by arranging a meeting at a remote location in Leesburg between the victim and a female co-conspirator. The victim believed that he was going to meet the woman only; however, shortly after he arrived, Lanier and two other men, Avery Tumer (23, Leesburg) and Timotheus Reed (29, Leesburg), pulled the victim from his car and stole his wallet and other personal property. During the robbery, the three men wore masks and pointed firearms at the victim; Tumer later pistol-whipped the victim and took his car. Thereafter, Tumer, Reed, Lanier, and the female co-conspirator drove the female’s car and the victim’s car back to a residence in Leesburg. They took the victim’s personal property into the residence, and hid the firearms in an attic.

 

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

 

Tumer is currently detained on state charges, awaiting transfer to federal custody. Timotheus Reed faces federal charges and remains at-large.

 

This case was investigated by the Federal Bureau of Investigation Jacksonville Field Office (Daytona Beach Resident Agency), the Lake County Sheriff’s Office, and the Leesburg Police Department, with assistance from task force members from the Volusia County Sheriff’s Office and the Daytona Beach Police Department. It will be prosecuted by Assistant United States Attorney Dale Campion.

Financial Freedom has agreed to a settlement with the United States of more than $89 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) in connection with its participation in a federally insured Home Equity Conversion Mortgages (HECM) or ‘reverse mortgage’ program, the Justice Department announced today. Financial Freedom is headquartered in Austin, Texas.

 

“The Department of Justice is committed to ensuring that those who participate in federal mortgage insurance programs comply with requirements essential to the success of its programs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Among these requirements are the deadlines imposed by the Federal Housing Administration (FHA) on those who service government insured mortgages. Those deadlines are designed to protect the government’s collateral and stop the unnecessary loss of government funds and resources.”

 

Through ‘reverse mortgage’ loans, older people are able to access the equity in their homes by borrowing money against the equity they have built in their home. To encourage reverse mortgage loans, the FHA protects lenders from loss by providing mortgage insurance. Under FHA’s program, a loan becomes due and payable when the home is sold or vacant for more than 12 months or upon the death of the homeowner, whichever comes first. The lender is repaid the amount of the loan, including the costs of servicing the loan and any interest that accrues on lender expenses after a loan becomes due and payable. FHA will reimburse a lender that is unable to recoup the full amount of the loan. In order to claim recoupment, the servicer is required to meet a number of regulatory requirements and deadlines.

 

The United States alleged that Financial Freedom sought to obtain insurance payments for interest from FHA despite failing to properly disclose on the insurance claim forms it filed with the agency that the mortgagee was not eligible for such interest payments because it had failed to meet various deadlines relating to appraisal of the property, submission of claims to HUD, and pursuit of foreclosure proceedings. As a result, from March 31, 2011 to August 31, 2016, the mortgagees on the relevant reverse mortgage loans serviced by Financial Freedom allegedly obtained additional interest that they were not entitled to receive.

 

The United States’ investigation arose from a declaration filed pursuant to FIRREA by Sandra Jolley, a consultant for the estates of borrowers who took out HECM loans. Under FIRREA, whistleblowers may file declarations concerning alleged violations of the statute and may obtain a share of the recovery. Ms. Jolley will receive $1.6 million from the settlement.

 

“This settlement represents our office’s continued commitment to protecting the financial solvency of vital financial programs designed to benefit America’s seniors,” said Acting U.S. Attorney Stephen Muldrow of the Middle District of Florida. “HECM servicers must be held accountable for failing to adhere to FHA requirements that are designed to ensure the continued viability of the HECM program. We are pleased that Financial Freedom agreed to accept financial responsibility for these failures.”

 

“Today’s settlement agreement resolves allegations that this lender failed to comply with FHA servicing requirements and sought to receive financial gains that it was not legally entitled to,” said HUD Inspector General David A. Montoya. “These actions today demonstrate our continued commitment to address and halt business practices that pose a serious risk to the FHA program and the public’s trust in HUD administered programs.”

 

The settlement was the result of the coordinated efforts of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, and the Department of Housing and Urban Development’s Office of Inspector General and Office of General Counsel. The case was handled by Assistant U.S. Attorney Kyle Cohen, along with Trial Attorneys Sean O’Donnell and Christopher Reimer of the Department of Justice Civil Frauds Section.

 

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

 

Fort Myers, FL - Financial Freedom has agreed to a settlement with the United States of more than $89 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) in connection with its participation in a federally insured Home Equity Conversion Mortgages (HECM) or ‘reverse mortgage’ program, the Justice Department announced today. Financial Freedom is headquartered in Austin, Texas.

 

“This settlement represents our office’s continued commitment to protecting the financial solvency of vital financial programs designed to benefit America’s seniors,” said Acting U.S. Attorney Muldrow. “HECM servicers must be held accountable for failing to adhere to FHA requirements that are designed to ensure the continued viability of the HECM program. We are pleased that Financial Freedom agreed to accept financial responsibility for these failures.”

 

“The Department of Justice is committed to ensuring that those who participate in federal mortgage insurance programs comply with requirements essential to the success of its programs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Among these requirements are the deadlines imposed by the Federal Housing Administration (FHA) on those who service government insured mortgages. Those deadlines are designed to protect the government’s collateral and stop the unnecessary loss of government funds and resources.”

 

Through ‘reverse mortgage’ loans, older people are able to access the equity in their homes by borrowing money against the equity they have built in their home. To encourage reverse mortgage loans, the FHA protects lenders from loss by providing mortgage insurance. Under FHA’s program, a loan becomes due and payable when the home is sold or vacant for more than 12 months or upon the death of the homeowner, whichever comes first. The lender is repaid the amount of the loan, including the costs of servicing the loan and any interest that accrues on lender expenses after a loan becomes due and payable. FHA will reimburse a lender that is unable to recoup the full amount of the loan. In order to claim recoupment, the servicer is required to meet a number of regulatory requirements and deadlines.

 

The United States alleged that Financial Freedom sought to obtain insurance payments for interest from FHA despite failing to properly disclose on the insurance claim forms it filed with the agency that the mortgagee was not eligible for such interest payments because it had failed to meet various deadlines relating to appraisal of the property, submission of claims to HUD, and pursuit of foreclosure proceedings. As a result, from March 31, 2011 to August 31, 2016, the mortgagees on the relevant reverse mortgage loans serviced by Financial Freedom allegedly obtained additional interest that they were not entitled to receive.

 

The United States’ investigation arose from a declaration filed pursuant to FIRREA by Sandra Jolley, a consultant for the estates of borrowers who took out HECM loans. Under FIRREA, whistleblowers may file declarations concerning alleged violations of the statute and may obtain a share of the recovery. Ms. Jolley will receive $1.6 million from the settlement.

 

“Today’s settlement agreement resolves allegations that this lender failed to comply with FHA servicing requirements and sought to receive financial gains that it was not legally entitled to,” said HUD Inspector General David A. Montoya. “These actions today demonstrate our continued commitment to address and halt business practices that pose a serious risk to the FHA program and the public’s trust in HUD administered programs.”

 

The settlement was the result of the coordinated efforts of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, and the Department of Housing and Urban Development’s Office of Inspector General and Office of General Counsel. The case was handled by Assistant U.S. Attorney Kyle Cohen, along with Trial Attorneys Sean O’Donnell and Christopher Reimer of the Department of Justice Civil Frauds Section.

 

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of a

criminal complaint  charging eight individuals with conspiracy to distribute a controlled substance and distribution and possession with the intent to distribute a controlled substance. Eric Jean Gilles (Miami, 36), Jimmy Remy Fernetus (Miami, 30), Edson Gelin (Orlando, 39), Raymond Mike Ayap (Orlando, 41), Ronny Joseph (Orlando, 32), Cristobal Sotomayor-Cebollero (Orlando, 31), Kissinger St. Fleur (Orlando, 35), and Gerardson Norgaisse (Orlando, 32) each face a maximum penalty of 20 years in federal prison for each controlled substance charge. Additionally, Gilles, Fernetus, and Gelin each face an additional and consecutive term of five years, up to life, in federal prison for possessing a firearm in furtherance of a drug trafficking offense.

 

According to the complaint, Gilles and Fernetus, members of a drug trafficking organization with ties to South Florida, were selling cocaine and “crack” cocaine from houses on 1621 Grand Street and 1427 18th Street, both located south of downtown Orlando. Gelin, who was stopped while traveling north towards Orlando on the Florida Turnpike on June 8, 2016, with two kilograms of cocaine, had also been selling cocaine at the house on Grand Street. All three--Gilles, Fernetus, and Gelin--were armed with handguns when purchases were made from the houses. Gelin also later sold cocaine from 2824 West Harwood Street in Orlando.

 

Ayap, Joseph, Sotomayor-Cebollero, St. Fleur, and Norgaisse each purchased distribution amounts of cocaine at one of the residences during the course of the investigation.

Gilles, Gelin, Ayap, and Joseph have been arrested and are being held in federal custody. Sotomayor-Cebollero is being held on unrelated state charges. Fernetus, St. Fleur, and Norgaisse have not yet been apprehended.

 

Search warrants have been executed at all three residences in connection with this investigation. Agents have recovered firearms, cocaine, and drug paraphernalia at all three locations, including three handguns, two assault rifles, and thousands of dollars in cash.

 

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

 

This investigation was conducted by the Drug Enforcement Administration, with assistance from the Metropolitan Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It’s also part of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. It will be prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr.

Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. has sentenced Kennedy Harris, Jr. (24, Cocoa) to 30 years in federal prison, followed by a life term of supervised release, for sex trafficking of a child by force, fraud, or coercion, and for producing child pornography. A federal jury found Harris guilty of both offenses on September 29, 2016.

 

According to testimony and evidence presented at trial, in January 2016, Harris took in the victim, a 16-year girl, after she ran away from home. Harris then took sexually suggestive photographs of the girl and advertised her for sex on Backpage.com. He also enticed the victim to engage in sexually explicit conduct for the purpose of photographing her. Over the course of approximately two weeks, the victim had sex with up to eight individuals per day, and gave the money to Harris. In exchange for her sex acts, Harris gave the girl crack cocaine nearly every day. On February 10, 2016, the victim was recovered by the Cocoa Police Department.

 

This case was investigated by Federal Bureau of Investigation, the Brevard County Sheriff’s Office, and the Cocoa Police Department. It was prosecuted by Assistant United States Attorney Tiffany L. Cummins.

 

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

Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Jamal Smith (31, St. Petersburg) to 17 years and 6 months in federal prison for possessing a firearm as a convicted felon. The Court also ordered him to forfeit a firearm traceable to the offense. Smith pleaded guilty on February 27, 2017.

 

According to court documents, on September 1, 2015, a law enforcement officer observed a vehicle driven by Jamal Smith commit a traffic infraction. Smith initially fled in his vehicle, but later stopped and ran from the officer. A chase ensued, and Smith circled back to the vehicle and reached into the passenger side. The officer apprehended Smith and took him into custody. Law enforcement officers recovered a .45 caliber pistol from the glove box of the vehicle. At the time of the offense, Smith was a convicted felon and therefore was prohibited from possessing a firearm or ammunition under federal law. Due to his multiple prior convictions for violent felony or serious drug offenses, he qualified for an increased penalty as an Armed Career Criminal.

 

This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Michael V. Leeman and Michael C. Sinacore.

 

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Rida Saed (58, Tampa) to 12 months and 1 day in federal prison for his role in a scheme involving the filing of fraudulent income tax returns. As part of his sentence, the Court also ordered Saed to pay $51,838.91 in restitution to the Internal Revenue Service. He pleaded guilty on January 19, 2017.

 

According to court documents, Saed and others processed debit cards at their store, Three Brothers Market in St. Petersburg, knowing that they contained proceeds from the filing of fraudulent income tax returns. Saed and others processed those cards through the third-party credit processor that handled credit transactions for the market. They kept a portion of the proceeds for their services and returned the majority of the funds to the undercover agents who had presented them for cashing. The total amount of fees that Saed and the others kept from these transactions was $51,838.91.

 

This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.

Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of a five-count

indictment charging Mark Charles Barnett (49, Ocala) with attempted arson, possession of a destructive device in furtherance of a crime of violence, possession of a destructive device by a convicted felon, and two counts of unlawful possession/manufacturing of a National Firearms Act weapon. If convicted on all counts, Barnett faces up to life in federal prison.

 

According to court documents, Barnett offered a confidential source (CS) $10,000 to place improvised explosive bombs in Target retail stores along the east coast of the United States. Beginning in January 2017, Barnett created at least 10 of the destructive devices, disguised in food-item packaging, and delivered them to the CS on February 9, 2017. Barnett then asked the CS to place the explosive devices on the store shelves from New York to Florida. Barnett told the CS that he had purchased options on Target stock and expected to make a lot of money from the resulting plunge in the company’s stock price.

 

Rather than placing the destructive devices on store shelves, however, the CS surrendered them to authorities. Subsequent searches of Barnett’s home by federal agents revealed components consistent with those used to create the destructive devices and articles describing stock market investments. Barnett, a convicted felon, had been conditionally released from state prison in 2013 following multiple convictions for sexual assault, kidnapping, and grand theft.

 

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the Florida Department of Law Enforcement; the Florida Department of Corrections - Probation and Parole; the Marion County Sheriff’s Office; and the Ocala Police Department. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

Tampa, Florida –U.S. District Judge Virginia M. Hernandez Covington today sentenced Jacorian Rashawn Brown (24, Brandon) and Jessica Duenas Nicholas (45, Brandon) to federal prison for conspiracy and armed robbery. Brown was sentenced to 12 years and 9 months in federal prison, and Nicholas was sentenced to 4 years and 9 months’ imprisonment. As part of their sentences, the Court also entered a money judgment in the amount of $11,948, the proceeds of the charged criminal conduct.

 

Brown and Nicolas pleaded guilty on February 16, 2017.

 

According to court documents, on July 9, 2016, Brown and Nicholas robbed the Murphy USA gas station in Wimauma of $11,948. Ten days later, the couple attempted to rob the Murphy USA gas station in Gibsonton, but were unsuccessful. On July 23, 2016, Brown and Nicholas returned to the Wimauma gas station to attempt another robbery. However, they were arrested before the robbery could take place. Investigators recovered two semi-automatic pistols and nearly 100 rounds of ammunition from inside their vehicle.

 

This case was investigated by the Hillsborough County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.

Former U.S. Congresswoman Corrine Brown was convicted by a federal jury in Jacksonville, Florida, today for her role in a conspiracy and fraud scheme involving a fraudulent scholarship charity.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida, Division and Chief Richard Weber of the of Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.

 

“Former Congresswoman Corrine Brown violated the public trust, the honor of her position, and the integrity of the American system of government when she abused one of the most powerful positions in the nation for her own personal gain. She shamefully deprived needy children of hundreds of thousands of dollars that could have helped with their education and improved their opportunities for advancement, and she lied to the IRS and the American public about secret cash deposits into her personal bank accounts,” said Acting Assistant Attorney General Blanco. “The Department of Justice is committed to fighting corruption and fraud wherever we find it, at all levels of government, regardless of their power and influence.”

 

“Former Congresswoman Brown chose greed and personal gain over the sacred trust given to her by the community that she served for many years,” said Acting U.S. Attorney Muldrow. “These guilty verdicts underscore our Office's resolve in holding public officials at all levels of government accountable for their actions. In this case, former Congresswoman Brown stole money that was donated on the false promise of helping further the educational goals of underprivileged children.”

 

“Former Congresswoman Brown took an oath year after year to serve others, but instead she exploited the needs of children and deceived her constituents to advance her own personal and political agendas,” said Special Agent in Charge Spencer. “Corrupt public officials undermine the integrity of our government and violate the public’s trust, and that is why investigating public corruption remains the FBI’s top criminal priority. I am proud of our special agents, analysts and support personnel who spent countless hours following the money trail in this case, and thank our law enforcement partners at the IRS-CI and U.S. Attorney’s Office for their efforts to hold Brown and her associates accountable for their inexcusable actions.”

 

“Former Congresswoman Corrine Brown failed to deliver and uphold her duty to file true and correct tax returns by lying about her income and charitable contributions to feed her greed. No one is above the law, including those in a position of public trust, and there isn’t a separate standard when it comes to paying taxes, said Chief Weber. “IRS CI, along with our law enforcement partners, will hold accountable those who violate the tax laws and cheat the taxpayers.”

 

Brown, 70, of Jacksonville, was convicted on 18 counts of an indictment charging her with participating in a conspiracy involving a fraudulent education charity, concealing material facts on required financial disclosure forms, obstructing the due administration of the internal revenue laws and filing false tax returns.

 

Judge Timothy J. Corrigan of the Middle District of Florida noted that he would schedule Brown’s sentencing for a later date.

 

Brown’s co-conspirators, Elias “Ronnie” Simmons, Brown’s long-time Chief of Staff, and Carla Wiley, the president of the fraudulent charity, previously pleaded guilty to their roles in the education charity scheme on Feb. 8, 2017, and March 3, 2016, respectively.

 

Evidence at trial showed that between late 2012 and early 2016, Brown participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which Brown, Simmons, Wiley and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other charitable causes. Testimony by One Door donors showed that Brown and her coconspirators solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives. Many of the donors were led to believe that One Door was a properly registered 501(c)(3) non-profit organization, when, in fact, it was not.

 

Contrary to Brown’s representations, Brown, Simmons, Wiley and others used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts, according to trial evidence. In one instance, Simmons deposited $2,100 of One Door funds into Brown’s personal bank account the same day that Brown paid $2,057 to the IRS for taxes she owed. Likewise, trial evidence showed Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use.

 

Trial evidence also showed that more than $300,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area. According to trial evidence, despite raising over $800,000 in donations, One Door granted only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.

 

Additionally, trial evidence demonstrated that Brown failed to disclose, among other things, the reportable income she received from One Door and claimed deductions on her tax returns based on false statements that she made certain donations to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.

 

The FBI and IRS-CI investigated the case. Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida prosecuted the case.

Jacksonville, FL – Former U.S. Congresswoman Corrine Brown was convicted by a federal jury in Jacksonville, Florida, today for her role in a conspiracy and fraud scheme involving a fraudulent scholarship charity.

 

Acting U.S. Attorney W. Stephen Muldrow, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida, Division and Chief Richard Weber of the of Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.

 

“Former Congresswoman Brown chose greed and personal gain over the sacred trust given to her by the community that she served for many years,” said Acting U.S. Attorney Muldrow. “These guilty verdicts underscore our Office's resolve in holding public officials at all levels of government accountable for their actions. In this case, former Congresswoman Brown stole money that was donated on the false promise of helping further the educational goals of underprivileged children.”

 

“Former Congresswoman Corrine Brown violated the public trust, the honor of her position, and the integrity of the American system of government when she abused one of the most powerful positions in the nation for her own personal gain. She shamefully deprived needy children of hundreds of thousands of dollars that could have helped with their education and improved their opportunities for advancement, and she lied to the IRS and the American public about secret cash deposits into her personal bank accounts,” said Acting Assistant Attorney General Blanco. “The Department of Justice is committed to fighting corruption and fraud wherever we find it, at all levels of government, regardless of their power and influence.”

 

 

“Former Congresswoman Brown took an oath year after year to serve others, but instead she exploited the needs of children and deceived her constituents to advance her own personal and political agendas,” said Special Agent in Charge Spencer. “Corrupt public officials undermine the integrity of our government and violate the public’s trust, and that is why investigating public corruption remains the FBI’s top criminal priority. I am proud of our special agents, analysts and support personnel who spent countless hours following the money trail in this case, and thank our law enforcement partners at the IRS-CI and U.S. Attorney’s Office for their efforts to hold Brown and her associates accountable for their inexcusable actions.”

 

“Former Congresswoman Corrine Brown failed to deliver and uphold her duty to file true and correct tax returns by lying about her income and charitable contributions to feed her greed. No one is above the law, including those in a position of public trust, and there isn’t a separate standard when it comes to paying taxes, said Chief Weber. “IRS CI, along with our law enforcement partners, will hold accountable those who violate the tax laws and cheat the taxpayers.”

 

Brown, 70, of Jacksonville, was convicted on 18 counts of an indictment charging her with participating in a conspiracy involving a fraudulent education charity, concealing material facts on required financial disclosure forms, obstructing the due administration of the internal revenue laws and filing false tax returns. The jury also found Brown guilty of violating the Ethics in Government Act by concealing certain income on the required annual financial disclosure forms she submitted to the U.S. House of Representatives.

 

Judge Timothy J. Corrigan of the Middle District of Florida noted that he would schedule Brown’s sentencing for a later date.

 

Brown’s co-conspirators, Elias “Ronnie” Simmons, Brown’s long-time Chief of Staff, and Carla Wiley, the president of the fraudulent charity, previously pleaded guilty to their roles in the education charity scheme on Feb. 8, 2017, and March 3, 2016, respectively.

 

Evidence at trial showed that between late 2012 and early 2016, Brown participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which Brown, Simmons, Wiley and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other charitable causes. Testimony by One Door donors showed that Brown and her coconspirators solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives. Many of the donors were led to believe that One Door was a properly registered 501(c)(3) non-profit organization, when, in fact, it was not.

 

Contrary to Brown’s representations, Brown, Simmons, Wiley and others used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts, according to trial evidence. In one instance, Simmons deposited $2,100 of One Door funds into Brown’s personal bank account the same day that Brown paid $2,057 to the IRS for taxes she owed. Likewise, trial evidence showed Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use.

 

Trial evidence also showed that more than $300,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area. According to trial evidence, despite raising over $800,000 in donations, One Door granted only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.

 

Additionally, trial evidence demonstrated that Brown failed to disclose, among other things, the reportable income she received from One Door and claimed deductions on her tax returns based on false statements that she made certain donations to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.

 

The FBI and IRS-CI investigated the case. Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida and Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section prosecuted the case.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the filing of a criminal complaint charging Jason James Neiheisel (27, Jacksonville) with distributing child pornography over the Internet. He faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison. He was arrested by FBI agents at his residence on May 4, 2017.

 

According to the

criminal complaint , during an online investigation of individuals using the Internet to trade child pornography, an FBI task force officer

downloaded several videos depicting children being sexually abused from a computer at Neiheisel’s residence. When agents made contact with him at his home, Neiheisel told them, among other things, that he had been downloading child pornography for “a while,” and that he enjoyed the “thrill of the hunt” to see what kind of child pornography files he could find.

 

This case was investigated by the Columbia County Sheriff’s Office and the FBI. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

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

 

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

Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Guillermo Pardo (53) to two years and one day in federal prison for aggravated identity theft and passport fraud. He pleaded guilty on February 15, 2017.

 

According to court documents, on January 22, 2015, Pardo made a false statement in an application for a passport. Specifically, he claimed to be a United States citizen and used information belonging to a real United States citizen to do so. In reality, Pardo was a citizen and national of Colombia (South America) and was ordered to be deported from the United States in 1986, after a felony drug conviction.

 

This case was investigated by the U.S. Department of State - Diplomatic Security Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Emily C.L. Chang and Special Assistant United States Attorney Christina R. Downes.

Tampa, Florida – U.S. District Judge Steven Merryday today sentenced Darius Vashon Tolbert (38, Tampa) to four years and four months in federal prison for receiving stolen government property and for possessing stolen mail. As part of his sentence, the Court also entered a money judgment in the amount of $569,876.40 and ordered him to pay $151,971.80 in restitution to the Social Security Administration.

 

A federal jury found Tolbert guilty on August 11, 2016.

 

According to evidence presented at trial, Tolbert purchased approximately $569,000 of stolen Social Security benefit checks between April and July 2012. The checks, belonging to more than 400 disabled or retired beneficiaries, were all destined for addresses in Pinellas County and had been stolen from the St. Petersburg Processing and Distribution Center by a postal mail handler. They were part of a larger theft of more than $3 million in checks by the same mail handler. The checks that Tolbert purchased were later cashed at a money services business in Live Oak.

 

On January 11, 2017, a federal jury found the mail handler, Stacy Darnell Mitchell, guilty. He was sentenced on April 5, 2017, to nine years and one month in federal prison.

 

This case was investigated by the Social Security Administration - Office of the Inspector General, the United States Postal Service - Office of Inspector General, the U.S. Department of the Treasury - Office of Inspector General, and the U.S. Postal Inspection Service, as well as various local enforcement agencies. It was prosecuted by Assistant United States Attorney Patrick Scruggs.

Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced Tacuma Ivan Horrobin (36, Lehigh Acres) to eight years in federal prison for drug distribution and firearm offenses. He pleaded guilty on January 9, 2017.

 

According to court documents, in 2015, Horrobin sold nearly $5,000 of heroin to an undercover law enforcement officer. A subsequent search of his residence revealed additional quantities of heroin, along with cocaine, hydrocodone, oxycodone, alprazolam, suboxone, ecstasy, marijuana, and five firearms. As a previously convicted felon, Horrobin is prohibited from possessing firearms under federal law. Officers also recovered numerous items used for the preparation, packaging, and distribution of controlled substances, including cutting agents, digital scales, and cookware from his home.

 

This case was investigated by the Federal Bureau of Investigation and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Michael Leeman and Michael Bagge-Hernandez.

Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Rosa Cingari (68, Lakeland) to 12 years and 7 months in federal prison and Domenico Cingari (68, Lakeland) to 8 years and 1 month in federal prison for conspiracy, making false statements in immigration applications and petitions, and mail fraud. The Court also ordered the Cingaris to forfeit real property located at 130 West Park Street in Lakeland, that was used to facilitate the offenses. As part of their sentence, the Court also entered a money judgment in the amount of $740,880, the proceeds of the charged criminal conduct.

 

A federal jury found Rosa and Domenico Cingari guilty on November 9, 2016. They were indicted on July 9, 2015.

 

According to evidence presented at trial, Rosa and Domenico Cingari owned and operated R.E.P.C. Accounting and Translations out of their home on West Park Street in Lakeland. They assisted illegal aliens in obtaining Florida driver licenses by filing fraudulent immigration documents. Specifically, they filed I-589, Applications for Asylum and Withholding of Removal forms; I-130, Petitions for Alien Relative forms; and I-765, Work Authorization forms. Most of the applications and petitions submitted to United States Citizenship and Immigration Services (USCIS) by the Cingaris contained materially false information. The Cingaris filed the fraudulent immigration documents in order to obtain USCIS I-797C Notices of Action. The Cingaris put their mailing address on all of the fraudulent forms so that USCIS would mail the Notices of Action to their business. They then sold the Notices of Action to their alien clients. The Cingaris charged their clients between $500 and $1,300 for the fraudulent immigration applications. They collected at least $740,880 from their clients during the fraud scheme.

 

"In maintaining the integrity of our immigration system, USCIS has zero tolerance for fraud," said Katherine Baranowski, USCIS Tampa Acting District Director. “Justice has been served with this sentencing, and we remain vigilant in detecting and bringing to prosecution any immigration fraud."

 

"Immigration fraud subverts the orderly process of citizenship and compromises the security of our homeland,” said Ivan J. Arvelo, acting special agent in charge of HSI Tampa. “HSI will move aggressively to investigate those who corrupt the integrity of our nation's immigration system.”

 

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and United States Citizenship and Immigration Services. It is being prosecuted by Assistant United States Attorneys Stacie B. Harris and Simon Gaugush.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Craig Reckley (56, Clearwater) has pleaded guilty to theft of government funds. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.

 

According to the

plea agreement , Reckley deposited 37 U.S. Treasury checks made payable to others into his business bank account. These checks, totaling more than $166,000, were tax refund checks that had been issued by the Internal Revenue Service as the result of the filing of false and fraudulent income tax returns.

 

This case was investigated by the Internal Revenue Service - Criminal Investigation, with the assistance of the Clearwater Police Department. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.

Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Wisler Cyrius (36, Naples) to three years in federal prison for conspiracy to commit mail fraud and money laundering. The Court also ordered him to pay $270,329.92 in restitution to the victim automobile insurance companies, and to forfeit property in the amount of the proceeds traceable to the offense. Cyrius pleaded guilty on May 18, 2016.

 

According to the plea agreement, Cyrius conspired with others to operate unlicensed chiropractic clinics and to bill automobile insurance companies for Personal Injury Protection (PIP) benefits. The conspirators also paid patients to induce them to seek treatment at particular chiropractic clinics so they could bill automobile insurance companies for their PIP benefits. In addition, members of the conspiracy participated in staged motor vehicle accidents and submitted claims to automobile insurance companies for PIP benefits based on those fake accidents.

 

Four others previously pleaded guilty and have been sentenced for their roles in this conspiracy. Garry Joseph (37, Naples) pleaded guilty to conspiracy to commit mail fraud and was sentenced to 3 years and 1 month in federal prison. Anouce Toussaint (33, Naples) was sentenced to 18 months’ imprisonment for conspiracy to commit mail fraud and conspiracy to launder money. Maria Victoria Lopez (44, Moore Haven) pleaded guilty to conspiracy to commit mail fraud and was sentenced to 3 years’ probation. David Adamson (47, Bonita Springs), a licensed chiropractor, pleaded guilty to mail fraud and received 5 years’ probation with 180 days of home detention.

 

A fifth individual, Nesly Loute, was convicted of conspiracy to commit mail fraud following a six-day jury trial. On February 27, 2017, he was sentenced to 14 years in federal prison.

 

This case was investigated by the Federal Bureau of Investigation; the State of Florida’s Department of Financial Services Division of Insurance Fraud; the Internal Revenue Service - Criminal Investigation; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistance was also provided by the National Insurance Crime Bureau; the Florida Highway Patrol; the Florida Department of Health; Florida’s Agency for Health Care Administration; the State Attorney’s Offices for the 13th and 19th Judicial Circuits. The following insurance companies also assisted with the case: Travelers, Nationwide, Bristol West, Esurance, Windhaven, Farmers, Direct General, Allstate, State Farm, Progressive, Geico, Infinity, and Foremost. The cases were prosecuted by Assistant United States Attorneys Charles D. Schmitz and David G. Lazarus.

Tampa, FL – U.S. District Judge Charlene E. Honeywell has sentenced Michael D. Richardson, Jr. (25, Hillsborough County) to 18 years and 4 months in federal prison for possessing with the intent to distribute 50 grams or more of a mixture of methamphetamine and for possessing a firearm in furtherance of a drug-trafficking crime. He pleaded guilty on November 2, 2016.

 

According to court documents, in May 2015, law enforcement officers arrested Richardson after he was seen driving a stolen car. The officers recovered distribution quantities of crack cocaine and methamphetamine from inside the car. In July 2015, as officers approached Richardson in another stolen car, he fled on foot. The officers ultimately arrested Richardson who was carrying a bag containing multiple baggies of methamphetamine. Officers recovered more methamphetamine, hydrocodone (a prescription opiate), and a loaded handgun from inside the stolen car. Between his May and July arrests, Richardson possessed with the intent to distribute 24.6 grams of crack cocaine, 60 hydrocodone pills, and 203 grams of methamphetamine. At the time of his arrest, Richardson had multiple prior felony convictions including robbery, robbery with a firearm, and battery.

 

This case was investigated by the Drug Enforcement Administration, the Hillsborough County Sheriff’s Office, and the Plant City Police Department. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.

Tampa, FL – U.S. District Judge Richard A. Lazzara today sentenced Michael Joseph Armano (43, Pinellas County) to 30 years in federal prison for child enticement and possession of child pornography. As part of his sentence, the Court also ordered him to pay $72,415 in restitution.

Armano pleaded guilty on January 12, 2017.

 

According to court documents, Armano used fake social media accounts to pretend to be a child online. Through those accounts, he targeted at least 60 children on social media and convinced them to produce lewd and sexually explicit images of themselves and Livestream those images to him over the Internet. Additionally, according to testimony at sentencing, Armano possessed over 100,000 images of child pornography.

 

“Today’s sentencing ensures this criminal will never again be in a position of trust,” said Susan L. McCormick, special agent in charge of HSI Tampa. “This predator has abused children in ways that will affect them for their entire lives, but we hope this significant sentence can provide the innocent victims some amount of closure, while also serving as a grave warning to parents to be vigilant about their children’s online activities.”

 

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Gregory T. Nolan and Amanda Kaiser.

 

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

Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Exodus Jerrod Strowbridge (42, North Port) to 10 years in federal prison for possessing cocaine and “crack” cocaine with the intent to distribute it, and for being a felon in possession of a firearm and ammunition. The Court also ordered him to forfeit a Smith & Wesson handgun and 12 rounds of ammunition.

 

Strowbridge pleaded guilty on January 23, 2017.

 

According to court documents, in April 2015, law enforcement officers conducted a year-long investigation into Strowbridge’s suspected illegal drug activity. In March 2016, officers from the North Port Police Department executed a state search warrant at his residence and recovered approximately 98 grams of cocaine and “crack” cocaine, as well as a loaded Smith & Wesson handgun that Strowbridge acknowledged owning. The officers also seized drug paraphernalia, including a digital scale, metal razor blades, and clear plastic baggies consistent with packaging cocaine for sale and distribution.

 

Strowbridge had numerous prior drug convictions and thus was prohibited from possessing a firearm or ammunition under federal law.

 

This case was investigated by the North Port Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program – a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCray, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law-enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.

Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Justin Pennington (30, St. Johns County) guilty of one count of conspiracy and nine counts of wire fraud. He faces up to 20 years in federal prison on each count and mandatory restitution of approximately $5 million. His sentencing hearing has been scheduled for August 2, 2017.

 

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

 

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

 

This case was investigated by the Federal Bureau of Investigation (FBI). It was prosecuted by Assistant United States Attorneys Mark Devereaux and Jason Mehta.

Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Matthew Bryan Caniff (33, Gainesville) to 15 years in federal prison for attempted online enticement of a child to engage in sexual activity, online solicitation of child pornography, and attempted production of child pornography. He was also ordered to serve a five-year term of supervision release and to register as sex offender after his release from prison. In January 2017, Caniff was convicted by a federal jury. Prior to his arrest, he worked as a pharmacy technician at UF Health Shands Hospital in Gainesville.

 

According to testimony at trial, beginning on March 31, 2016, Caniff engaged in a series of online text conversations over the Internet with a person he believed to be a 13-year-old child. Unbeknownst to Caniff, this "child" was actually an undercover FBI agent. During the course of these online conversations, Caniff discussed in detail his desire to have sex with the “child” and sent the “child” several explicit photos of himself. He also made several requests for the “child” to send him images engaging in sexual conduct.

 

In the early morning hours of April 1, 2016, Caniff drove his vehicle from his residence in Gainesville to a home in St. Johns County to meet the “child” for sex. He was arrested at the meeting location by deputies from St. Johns County Sheriff’s Office. A search of his person revealed that Caniff had brought a plastic bag containing several prescription pills that he had taken from UF Health Shands Hospital and had intended to share with the “child” during their planned sexual encounter.

 

“The FBI devotes extensive resources to fighting the horrific crime of child sexual exploitation," said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville division, "and we will continue to work with our law enforcement partners to remove predators from our communities, and bring justice upon those who seek to take advantage of vulnerable young people."

 

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

 

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

Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Benjamin Nundy (39, Ruskin) today pleaded guilty to conspiracy to commit healthcare fraud. He faces a maximum penalty of five years in federal prison.

 

According to court documents, Nundy was a licensed pharmacist who co-owned Lifecare Pharmacy in Pinellas County with his business partner, Carlos Mazariegos. In 2014, Nundy, Mazariegos, and Dr. Anthony Baldizzi, a licensed physician, agreed that Lifecare would pay Baldizzi illegal kickbacks for prescriptions of compounded medications written by Baldizzi and filled at Lifecare. In May 2014, Mazariegos, acting on behalf of Lifecare, entered into a marketing agreement with Centurion Compounding Inc., a marketing firm in Pasco County that employed sales representatives to market compounded creams for pain and scars to beneficiaries of healthcare plans, especially TRICARE. These compounded creams typically ranged in price from $900 to $21,000 for a one-month supply.

 

Between May and November 2014, Centurion directed patients that it had recruited and the physicians within its network to send all of their compounded cream prescriptions to Centurion. Centurion then transmitted these prescriptions to Lifecare to be filled. Mazariegos, Nundy, and the principals of Centurion agreed to pay illegal kickbacks to Baldizzi equal to approximately 10% of the after-cost amount of each claim paid by TRICARE and other healthcare benefit programs as a result of compounded medication prescriptions written by Baldizzi and filled by Lifecare, for Centurion-recruited patients. For example, in December 2014, Mazariegos wrote a check to a car dealership for $71,900, funded with the proceeds from the operation of Lifecare, to pay for a BMW for Baldizzi in partial satisfaction of kickbacks that Lifecare and Centurion owed to him.

 

Lifecare received approximately $5.3 million from TRICARE for claims made for compounded medications prescribed by Baldizzi resulting from this illegal kickback relationship. Mazariegos and Nundy also billed Medicare $1,064,729 for compounded medications that Lifecare made with bulk powder ingredients when they knew that Medicare only reimbursed for such medications when they were made using crushed tablets.

 

Carlos Mazariegos pleaded guilty to engaging in a conspiracy to commit healthcare fraud on April 10, 2017.

 

A grand jury returned an indictment charging Baldizzi with conspiracy, receiving healthcare kickbacks, and engaging in illegal monetary transactions. The case is currently set for trial in January 2018.

 

This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services - Office of Inspector General, the Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigation, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Obenson Cerulist (27, Sarasota) has pleaded guilty to theft of government property. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.

 

According to the plea agreement, in September 2013, a search warrant was executed at a home in Bradenton that Cerulist was sharing with Brandon Taylor. Based on evidence of narcotics activity found during the search, Cerulist pleaded guilty and was sentenced to 41 months’ imprisonment. In addition to narcotics, more than 250 items of personal identifying information (PII) belonging to others was found in the home. In February 2014, a second search warrant was executed at the home of Cerulist’s girlfriend, Loretta Gilchrist, where Cerulist occasionally stayed. PII was also found in Gilchrest’s home, along with prepaid debit cards and additional evidence linking Cerulist to the filing of fraudulent tax returns.

 

The direct loss to the Internal Revenue Service from the fraudulent tax returns filed during the course of this scheme was $156,399.39. The total amount claimed as a result of fraudulent tax returns was $571,708.

 

Taylor and Gilchrist were also prosecuted for their roles in this scheme. On August 2, 2016, Taylor was sentenced to 32 months in federal prison for theft of government funds. On February 28, 2017, Gilchrist was sentenced to 30 months in federal prison for theft of government funds.

 

This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Adam M. Saltzman.

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Joaquin Alvarez-Rodriguez (29, Puerto Rico), Jose Polanco (29, Orlando), Quenten Desue (31, Orlando), Antonio Jackson (31, Orlando), and Daron Lorenza Jones (30, Orlando) with conspiracy to distribute, and to possess with the intent to distribute, heroin and cocaine. If convicted on all counts, Alvarez-Rodriguez and Polanco each face a mandatory minimum term of 10 years, up to life, in federal prison. Desue, Jackson, and Jones each face a maximum term of 20 years’ imprisonment.

 

Two other co-conspirators, Christian Amaro (34, Orlando) and Joel Gutierrez (34, Orlando), have pleaded guilty to an information charging them with conspiracy to distribute, and to possess with the intent to distribute, heroin and cocaine. They each face a mandatory minimum mandatory term of 5 years, up to 40 years, in federal prison. Gutierrez also pleaded guilty to possessing a firearm as a convicted felon, and he faces a maximum term of 10 years’ imprisonment. As part of their plea agreements, Amaro and Gutierrez agreed to forfeit six firearms, $11,793 in cash, and approximately $22,590 worth of jewelry, all of which are traceable to the charged offenses or to the proceeds of the crimes.

 

According to court documents, from at least 2015, Alvarez-Rodriguez and Polanco shipped multiple kilograms of cocaine from Puerto Rico to the Orlando area and conspired with Amaro and others to distribute it. Additionally, Amaro and Gutierrez conspired with Desue, Jackson, Jones, and others to distribute cocaine and heroin in central Florida.

 

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

 

This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Orange County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Embry J. Kidd.

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.

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.

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.

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.

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, 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.

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.

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.

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.

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.

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.

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.

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, 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, 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.

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.

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.

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.

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.

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.