Middle District of Florida

Orlando, Florida - U.S. District Judge Paul G. Bryon has sentenced Manuel Enrique Santana (36, Orlando) to four years in federal prison for theft of government funds and aggravated identity theft. As part of his sentence, the Court also entered a money judgment in the amount of $64,889.15, the proceeds of the charged criminal conduct. Santana was found guilty by a jury on January 10, 2017.

 

According to the evidence presented at trial, Santana deposited 47 stolen federal tax refund checks into three of his own bank accounts over a 10-day period in early 2014. The vast majority of checks were endorsed with forged signatures of the intended payees, all of whom had filed returns for the 2013 tax year and were expecting to receive their refund checks by mail. The combined value of the stolen checks was more than $64,000.

 

This case was investigated by the United States Postal Inspection Service, the Internal Revenue Service - Criminal Investigation, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an

indictment charging Verdell Terria Jones (53, Jacksonville) with 10 counts of possession of counterfeit government checks. If convicted, she faces up to 25 years in federal prison on each of count. Jones was arrested on April 11, 2017, at her home in Jacksonville. According to facts presented at the detention hearing yesterday, this scheme is part of Jones’s involvement with the Sovereign Citizen Movement and her attempts to pass counterfeit government checks in order to pay off various loans. Her trial has been scheduled for June 5, 2017.

 

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

 

This case was investigated by the FBI Joint Terrorism Task Force. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.

 

Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich has sentenced Ernest L. Chambliss (45, Englewood) to 21 years and 10 months in federal prison for possessing a firearm as a convicted felon. A federal jury found him guilty on December 2, 2016.

 

According to testimony at trial, Chambliss, a drug dealer in Englewood, sold a firearm and prescription opiates to a confidential informant in April 2015. At the time, Chambliss had numerous prior felony convictions, including five drug-trafficking offenses and two charges of battery on a law enforcement officer.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sarasota County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Gregory T. Nolan and Christopher Murray.

 

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

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Fayez Abu-Aish (51, St. Petersburg) and Nedal Abu-Aish (48, St. Petersburg) guilty of conspiring to distribute, distribution of, and possession with the intent to distribute a substance containing XLR-11. Each faces penalty of 20 years in federal prison. A sentencing date has not yet been set.

 

Trial testimony revealed that XLR-11 is a synthetic cannabinoid, typically imported from China, that is applied to plant material to create a smokable drug often called “Spice.” On March 28, 2014, following a lengthy investigation, agents from the Drug Enforcement Administration Task Force raided a clandestine laboratory in St. Petersburg where the Abu-Aish brothers were manufacturing these smokable synthetic cannabinoids using the chemical XLR-11. Agents seized finished product, other chemicals, plant material, and packaging materials. Searches of storage units resulted in the seizure of thousands of packages containing XLR-11 laced plant material ready for distribution. Some of the brands seized included “Scooby Snax,” “OMG,” “Mr. Happy,” and “Mind Trip.”

 

This case was investigated by the Drug Enforcement Administration, the St. Petersburg Police Department, and the Clearwater Police Department. It is being prosecuted by Assistant United States Attorney James C. Preston.

Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Albert Jason Miller (46, Jacksonville) with wire fraud and filing a false tax-related document. If convicted, he faces up to 20 years in prison on the fraud charge, and up to 3 years’ imprisonment on the false filing charge. The indictment also notifies Miller that the United States is seeking a money judgment in the amount of $162,282.96, which represents the proceeds of the offenses.

 

According to the

indictment , Miller was an employee of CEVA Logistics, a Netherlands–based contract logistics and freight/transportation management company that has offices in Jacksonville. From 2008 through March 2013, he worked in the company’s procurement department. In May 2010, Miller created a fictitious business named “CEVA” and told vendors to make checks payable to CEVA because CEVA Logistics was undergoing a legal name change. He then began diverting those checks and depositing them into a bank account he had opened in the name of CEVA, where he was the sole authorized signor. Miller diverted a total of $162,282.96 and failed to disclose the stolen proceeds as income on his 2010, 2011, 2012, and 2013 tax returns. Miller used the stolen proceeds to pay for personal expenses.

 

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

 

This case was investigated by the Internal Revenue Service - Criminal Investigation and the Florida Department of Law Enforcement, as part of the IRS-Criminal Investigation’s Northeast Florida Financial Task Force. It will be prosecuted by Assistant United States Attorney Beatriz Gonzalez.

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Billy Leon Dyer (77, Melbourne) with three counts of production of child pornography and one count of attempted enticement of a minor. If convicted, he faces a minimum mandatory sentence of 15 years, up to 30 years, in federal prison on each production count. He faces a minimum mandatory penalty of 10 years, up to life, in federal prison on the attempted enticement charge. The indictment also notifies Dyer that the United States intends to forfeit the residence located at 7664 Candlewick Drive in Melbourne and a vehicle, both of which are alleged to be items used to facilitate the offenses.

 

According to the

indictment , from June 22, 2016, through February 9, 2017, Dyer coerced three minors to engage in sexually explicit conduct for the purpose of producing child pornography. Furthermore, between March 4 and March 10, 2017, he used the Internet and a cellphone to attempt to coerce a minor to engage in sexual activity.

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

 

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations and the Brevard County Sheriff’s Office. It will be prosecuted by Special Assistant United States Attorney Christina R. Downes from the Office of the Principal Legal Advisor, ICE.

 

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

Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Carlos Mazariegos (40, St. Petersburg) has pleaded guilty to conspiracy to commit healthcare fraud. He faces a maximum penalty of five years in federal prison.

 

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

 

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

 

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

 

Nundy is scheduled to plead guilty to engaging in a conspiracy to commit healthcare fraud at a hearing on April 26, 2017.

 

A grand jury returned an indictment charging Baldizzi with conspiracy, healthcare fraud, receiving health care kickbacks, and engaging in illegal monetary transactions. The case is currently set for trial in May 2017.

 

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

A Florida business owner pleaded guilty today for his role in selling the personal information of tens of thousands of individuals to fraudulent telemarketers, who used the information to target potential victims for various fraudulent telemarketing schemes.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida, Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.

Ronald John Mendleski, 72, of Bokeelia, Florida, pleaded guilty to one count of wire fraud before U. S. Magistrate Judge Carol Mirando of the Middle District of Florida. Sentencing will be set at a later date.

As part of the plea, Mendleski admitted that for several years he operated an enterprise that provided telemarketers with information called “sweepstakes leads,” which are the phone numbers and personal information of individuals who have responded to mass mailings notifying recipients that they have purportedly won, or are about to win, expensive prizes and enormous cash payouts. Such information is highly valued by fraudulent telemarketers, who seek to identify individuals who may be susceptible to falling for fraudulent scams. Mendleski admitted that he sold this information to scammers, knowing that they intended to use the information to engage in fraud. This scheme generated over $1.5 million for Mendleski, he admitted.

The FBI is investigating this matter. Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section is prosecuting the case.

Fort Myers, FL – A Florida business owner pleaded guilty today for his role in selling the personal information of tens of thousands of individuals to fraudulent telemarketers, who used the information to target potential victims for various fraudulent telemarketing schemes.

 

Acting U.S. Attorney W. Stephen Muldrow, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.

 

Ronald John Mendleski, 72, of Bokeelia, Florida, pleaded guilty to one count of wire fraud before U. S. Magistrate Judge Carol Mirando. Sentencing will be set at a later date.

 

As part of the plea, Mendleski admitted that for several years he operated an enterprise that provided telemarketers with information called “sweepstakes leads,” which are the phone numbers and personal information of individuals who have responded to mass mailings notifying recipients that they have purportedly won, or are about to win, expensive prizes and enormous cash payouts. Such information is highly valued by fraudulent telemarketers, who seek to identify individuals who may be susceptible to falling for fraudulent scams. Mendleski admitted that he sold this information to scammers, knowing that they intended to use the information to engage in fraud. This scheme generated over $1.5 million for Mendleski, he admitted.

 

The FBI is investigating this matter. Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section is prosecuting the case.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Michael Pirolo (48, Palm Harbor) has pleaded guilty to wire fraud. He faces a maximum penalty of 20 years in federal prison.

 

According to the plea agreement, Pirolo served as the president of Government Contract Registry, Inc. (“GCR”), doing business as FEMA Contract Registration. He employed telemarketers who, during communications with victim-companies, falsely and fraudulently claimed that, for a fee, GCR would “register” the companies with the Federal Emergency Management Agency (FEMA) to enable them to receive preference in obtaining contracts from FEMA. The GCR telemarketers’ communications were based on instructions and scripts that they had received from Pirolo. In particular, the GCR telemarketers falsely and fraudulently stated that for a one-time fee of $500, the customer would be registered with FEMA, and that this registration would place the customer company on a list of preferred vendors. When the need for a vendor arose, the GCR telemarketer falsely stated that FEMA would bypass the contract acquisition process, contact the registered victim-company, and then offer a no-bid contract. At times, Pirolo also instructed GCR telemarketers to go back to victim-companies that had already paid the $500 one-time fee and seek renewal and payment of another fraudulent $500 fee.

 

To further the scheme, the GCR telemarketers provided victim-companies with an online GCR form that requested the same information as a form on FEMA’s website. FEMA does not charge a fee to companies to complete its form, which assists the agency with market research and does not “register” companies. Completing this form is not part of the United States government’s contract acquisition process. Once GCR telemarketers received the victim-companies’ information, GCR completed and submitted the online FEMA form that then enabled emails to then be sent from FEMA to the victim-companies, giving the appearance that the companies had been “registered.” The FEMA emails gave GCR the appearance of legitimacy.

 

Approximately 1,200 victim-companies were misled by this scheme, paying GCR at least $604,500.

 

This case was investigated by the Department of Homeland Security, Office of Inspector General and the General Services Administration, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Adam M. Saltzman.

 

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announced today the return of an indictment charging Seyed Ali Soroushjou (36, Cockeysville, Maryland) with two counts of cyberstalking and sending threatening communications over the Internet. If convicted, he faces up to five years in federal prison on each charge.

On April 7, 2017, FBI agents arrested Soroushjou at his residence in Maryland. He made his initial appearance in Baltimore and has been detained pending his transport to Jacksonville for further court proceedings.

 

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

 

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Travis Lemart Hayes (21, Clearwater) has pleaded guilty to possession with the intent to distribute crack cocaine. He faces a maximum penalty of 20 years in federal prison.

 

According to the plea agreement, following a traffic stop, police officers found crack cocaine and nearly $1,000 in cash in Hayes’s pockets. Inside the car that Hayes was driving, officers found a loaded .45 caliber pistol.

 

This case was investigated by the Federal Bureau of Investigation and the New Port Richey Police Department. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.

Orlando, FL – U.S. District Judge Carlos E. Mendoza today sentenced Julian Villa-Gomez Lemus (32, Visalia, CA) and Fadhle Muqbel Saeed (31, Porterville, CA) for conspiracy to distribute a controlled substance. For their respective roles in the conspiracy, Lemus was sentenced to 10 years in federal prison and Saeed was sentenced to 9 years and 6 months’ imprisonment. A third co-defendant, Alfonso Bojorquez-Vazquez (30, Porterville, CA), was sentenced to 7 years and 3 months in federal prison for the same offense on March 27, 2016. As part of Saeed’s sentence, the Court also entered a money judgment in the amount of $1.9 million, the proceeds of the drug conspiracy.

 

Saeed and Bojorquez-Vazquez previously pleaded guilty. Lemus proceeded to trial and was found guilty by a jury on January 4, 2017.

 

According to court documents and evidence presented at trial and sentencing, between May 2012 and March 2015, Saeed, Lemus and Bojorquez-Vazquez conspired to distribute drugs over the Internet using illicit online drug marketplaces such as Silk Road and Evolution Marketplace. These marketplaces were websites where individuals could buy and sell drugs anonymously. Payment for Silk Road transactions were conducted using Bitcoin, a semi-anonymous electronic form of payment, which allowed users to purchase drugs without disclosing their financial information or identity. The conspirators used the pseudonym “darkexpresso” to conduct over 1,300 Silk Road drug transactions, resulting in gross proceeds of over $1.9 million. These transactions included methamphetamine, hydrocodone, marijuana, steroids, cocaine, and other controlled substances. The drugs were concealed using various methods, and sent to purchasers throughout the United States and Australia.

 

After law enforcement officials shut down and seized the Silk Road website, Saeed and Bojorquez-Vazquez continued the operation on the Evolution Marketplace. Undercover DEA agents contacted Saeed and Bojorquez-Vazquez on the website and purchased a total of approximately 96 hydrocodone pills and approximately 473 grams of methamphetamine from them over the course of several online transactions.

 

This case was investigated by the Drug Enforcement Administration and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Vincent S. Chiu and Alejandro J. Salicrup.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces today the return of an indictment charging Christopher Jaye Boykin (34, Lisman) with four counts of receiving child pornography over the Internet. If convicted, he faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison on each of count. Boykin was arrested on March 14, 2017, at his home in Alabama. His trial is scheduled for June 5, 2017.

 

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

 

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

 

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

Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Michael Wesley (49, North Port) to 27 months in federal prison for his role in a bank fraud scheme. The Court also ordered him to pay restitution to the banks involved. Wesley pleaded guilty on December 12, 2016.

 

According to court documents, Wesley was engaged in a fraud scheme in which he would obtain checks that had been stolen from United States Postal Service mailboxes. He would then use the personal information printed on those stolen checks to cash, at the victim’s own bank, worthless checks made payable to the victim but that had been written on closed accounts from other banking institutions. In this manner, Wesley frequently obtained cash from federally insured financial institutions.

 

This case was investigated by the United States Postal Inspection Service, with assistance from the Sheriff’s Offices in Manatee, Hillsborough, Seminole, and Lee Counties, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging David Earl Johnson (36, Bradenton) with distribution of fentanyl resulting in death and distribution of fentanyl. If convicted on the first charge, he faces a mandatory minimum of 20 years, up to life, in federal prison. If convicted of the second offense, he faces a maximum sentence of 20 years’ imprisonment. The indictment also notifies Johnson that the United States intends to forfeit assets alleged to be traceable to the proceeds of the offenses.

 

According to the indictment, Johnson distributed fentanyl on two occasions on January 11, 2017, the first of which resulted in the death of “K.H.”

 

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

 

This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the Manatee County Sheriff’s Office, with assistance from the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Dan Baeza.

Tampa, FL – U.S. District Judge Mary S. Scriven has sentenced Ilfrenise Charlemagne (68, Coral Gables) to 33 months in federal prison for wire fraud. She pleaded guilty on November 8, 2016.

 

According to court documents, starting in 2008, Charlemagne owned and operated Hilcrest Residential ALF, an assisted living facility in St. Petersburg for the aged and mentally ill. The majority of the funds used to operate Hilcrest came from the Medicaid and Social Security benefits of the residents. In May 2011, the Florida Agency for Health Care Administration (AHCA) forcibly closed Hilcrest after determining that the facility was heavily infested with bedbugs and roaches; that residents were found to be unkempt with evidence of confusion and disassociation; that residents were hungry and underfed; that Charlemagne failed to provide residents with a safe and sanitary living environment; and that residents were at risk of serious injury and major health problems. In October 2011, Charlemagne entered into a settlement agreement with AHCA promising not to own or operate an ALF for a period of five years.

 

That same month, Charlemagne changed Hilcrest’s name to Pleasant Alternative and began the process of reopening. She applied to AHCA for a license to operate an ALF using the identity of a straw owner. In 2012, Charlemagne reopened the ALF at the same location and again began housing Medicaid and Social Security beneficiaries who were primarily mentally ill adults. By April 2013, AHCA again shut down the facility, finding that was no heat or air conditioning; that residents weren’t provided with adequate medication or food; that rodents, vermin, and debris were found throughout the facility; and that the facility posed a serious and immediate danger to the residents and the public. During her time operating the ALFs, Charlemagne diverted the more than $1 million in government benefits intended for the care and housing of her residents.  She used some of the monies for her own personal use, including cash withdrawals, credit card payments, car payments, and rent, among other things.

 

This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services - Office of Inspector General, the State of Florida Medicaid Fraud Control Unit, and the Social Security Administration - Office of the Inspector General. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.

Tampa, Florida – U.S. District Judge James Moody today sentenced Stacy Darnell Mitchell (48, Tampa) to nine years and one month in federal prison for theft of stolen government property and mail theft. As part of his sentence, the Court also entered a money judgment in the amount of $2,085,649.50 and ordered him to pay restitution to the Social Security Administration in the amount of $720,881.60. A federal jury found Mitchell guilty on January 11, 2017.

 

According to evidence presented at trial, Mitchell was a mail handler who had worked for more than 15 years at the Processing and Distribution Center (PDC) in St. Petersburg, which processes mail for all of Pinellas County. From January to October 2012, Mitchell stole Social Security benefit checks totaling over $3 million from that facility. More than 3,000 checks were taken from the PDC in 2012, all of which were destined for disabled or retired beneficiaries living in Pinellas County. Mitchell sold the checks to an accomplice in Tampa, who then sold the checks to a network of individuals to be cashed at various convenience stores and check cashing businesses in Florida and elsewhere. Four of those accomplices have been convicted of federal charges related to the same theft scheme.

 

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

 

Tampa, FL – Acting United States W. Stephen Muldrow announces that Clark D. East (59, Sugarland, TX) has pleaded guilty to embezzlement from a bankruptcy estate. He faces a maximum penalty of five years in federal prison.

 

According to the plea agreement, East obtained a loan from Stearns Bank, a member bank of the Federal Home Loan Bank of Minneapolis, to develop a property located at 3700 Ulmerton Road Plaza in Clearwater. East subsequently defaulted on the loan and Stearns Bank obtained approval to sell the property at foreclosure on March 27, 2012. The day before the scheduled foreclosure sale, East filed for bankruptcy protection with the United States Bankruptcy Court for through his company, 3700 Ulmerton Road, LLC. During the bankruptcy proceedings, East was ordered to sell the property and to remit $1.2 million in sales proceeds to Stearns Bank. Rather than repaying Stearns Bank, East embezzled approximately $800,000 of proceeds that were part of the bankruptcy estate and due to Stearns Bank.

 

This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. The Office of the United States Trustee for the Middle District of Florida, Tampa Division also provided substantial assistance. The case is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay G. Trezevant.

Tampa, FL – William A. Dennis (56, Port Richey) pleaded guilty today to one count of conspiring with others to threaten, intimidate, and interfere with an interracial couple’s enjoyment of their housing rights, announced Acting U.S. Attorney W. Stephen Muldrow and Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division.

 

According to court documents, in September and October 2012, Dennis was living on Seward Drive in Port Richey in a predominantly white community. After an interracial couple moved next door, Dennis joined others in harassing the African-American neighbor with racial slurs and derogatory statements.

 

On Halloween night, Dennis attended a party at a neighbor’s house, where several Seward Drive residents decided to burn an over six-foot tall cross in the front yard of the interracial couple in order to intimidate them and force them to move from the residence. Using wood and tools from the host of the Halloween party, Dennis and his co-conspirators constructed a wooden cross, and Dennis poured gasoline on the cross. Dennis and a co-conspirator carried the cross to the victims’ front yard, leaned it against their mailbox, and Dennis instructed the co-conspirator to set the cross on fire.

 

“This guilty plea underscores our ongoing commitment to aggressively investigate and prosecute individuals who commit hate crimes,” said Acting U.S. Attorney Muldrow.

 

“The defendant and his co-conspirators’ racially-fueled actions to threaten and intimidate a couple in their own home and neighborhood are reprehensible and will not be tolerated in our communities,” said Acting Assistant Attorney General Wheeler. “The Justice Department is committed to vigorously prosecuting those who engage in such violent acts of hate.”

 

“The FBI pledges to remain vigilant in protecting our communities from hateful acts of bias,” said Special Agent in Charge Paul Wysopal of the FBI Tampa Division. “This case is an example of that commitment and determination to investigate crimes of hate and bring the offenders to justice.”

 

Two of Dennis’ co-conspirators, Thomas H. Sigler, III, and Pascual Carlos Pietri, previously pleaded guilty to the same charge. Pietri was sentenced to 37 months’ imprisonment, and Sigler’s sentencing date is pending.

 

This case was investigated by the FBI. It was prosecuted by Assistant U.S. Attorneys Josephine W. Thomas and Simon A. Gaugush and Trial Attorney William E. Nolan of the Civil Rights Division’s Criminal Section.

Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Larry Chance Cox (37, Tampa) to seven years in federal prison for conspiracy and aggravated identity theft. The judge ordered that he serve 54 months of his sentence consecutively to the 87-month term of incarceration that U.S. District Judge Charlene Edwards Honeywell sentenced him to last week for being a felon in possession of firearms. Between the two cases, Cox has been sentenced to a total of 11 years and 9 months in federal prison. He pleaded guilty in January 2017.

 

According to court documents, Cox’s coconspirator, Anthony Harris, worked as an administrative employee at a pediatric gastroenterology practice where he had access to patient medical records containing the personally identifiable information (“PII”) of the practice’s patients, their parents, and their guardians. Cox directed Harris to steal the PII from his employer so that he, along with Maurice Rahmaan and others, could use the information to apply for credit cards online and to file fraudulent federal income tax returns. The conspirators further agreed to share in the proceeds of the credit card and tax fraud. Investigators recovered the PII of more than 13,000 individuals from Cox’s bedroom. In addition to applying for scores of unauthorized credit cards, the conspirators also attempted to file approximately 180 fraudulent federal income tax returns using the PII.

 

When law enforcement officers searched Cox’s residence in April 2015, they recovered an AK-47 assault rifle, a Mossberg 500 12-guage shotgun, a stolen Maverick model 88 12-guage shotgun, and a stolen Remington model 710 .243 gauge shotgun. At the time, Cox was a convicted felon and therefore prohibited from possessing a firearm or ammunition under federal law.

 

Anthony Harris pleaded guilty to conspiracy and aggravated identity theft. On March 29, 2017, he was sentenced to six years in federal prison. Maurice Rahmaan pleaded guilty to conspiracy and aggravated identity theft on January 24, 2017, and he is scheduled to be sentenced on April 10, 2017.

 

This case was investigated by the Tampa Police Department, the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Mandy Riedel.

Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Walter Drakeford (72, Santa Monica, CA) to two years in federal prison for attempting to interfere with the administration of the internal revenue laws. He pleaded guilty on May 17, 2016.

 

According to court documents, between September 2006 and March 2009, Drakeford and another individual falsely purported to own the rights to landfill methane credits. They marketed the purported credits to a network of tax return preparers for use on individual taxpayers’ tax returns, despite knowing that the credits were non-existent and/or not able to be claimed by the individual taxpayers. The tax return preparers advised their individual taxpayer-clients to claim the credits on their tax returns. If an individual taxpayer received the tax refund as a result of the landfill methane credit claimed, they were obligated to remit a substantial portion of that refund, frequently as much as 80%, to Drakeford and others.

 

After questioning by the IRS regarding the purported credits, Drakeford presented false and fraudulent documentation to the IRS regarding purported Devonian shale credits in an unsuccessful effort to prevent the IRS from attempting to collect the monies owed resulting from the disallowances of the purported landfill methane credits.

When that effort failed, Drakeford knowingly caused to be presented to the IRS fraudulent and false amended tax returns that claimed purported dry hole expenses, again in an unsuccessful attempt to prevent the IRS from attempting to collect the monies owed from the purported landfill methane credits. Drakeford and others provided the tax return preparers a formula by which to calculate the amounts of the dry hole expenses to be claimed by the individual taxpayers. The formula was designed to fraudulently eliminate the individual taxpayers’ debts to the IRS based on the disallowance of the false and fraudulent landfill methane credits.

 

The government estimates the total amount of false and fraudulent credits claimed in this case to be $4,211,757, a substantial amount of which has been recovered from the individual taxpayers.

 

This case was investigated by Internal Revenue Service, Criminal Investigation. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Rachelle DesVaux Bedke.

Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich has sentenced Curtis Williams, Jr. (34, Tampa) to 10 years and 10 months in federal prison for conspiracy to possess with the intent to distribute 28 grams or more of cocaine base, also known as crack cocaine. He pleaded guilty on November 29, 2016.

 

According to court documents, between January and July 2016, Williams and his co-conspirator, Brian Allen, engaged in a mutually beneficial business arrangement in which Williams supplied Allen with crack cocaine to sell on the street. During the seven-month period, undercover law enforcement officers bought crack cocaine from Allen on 12 occasions, totaling more than 128 grams.

 

Allen pleaded guilty on January 17, 2017. His sentencing hearing is set for May 12, 2017.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorneys Michael Leeman and Mike Gordon.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an

indictment  charging Orlando residents Anyi (“Angie”) Artica-Romero (31), Joaquin Mejia-Murillo (62), and Milton Noel Romero (34) with wire fraud and conspiracy to commit wire fraud. Artica-Romero is charged in 56 counts, Mejia-Murillo is charged in 1 count, and Romero is charged in 6 counts. Each count carries a maximum penalty of 20 years in federal prison. The indictment also notifies the defendants that the United States intends to seek forfeiture of approximately $812,000, which is the amount of proceeds obtained as a result of the offenses.

 

According to the indictment, Mejia-Murillo registered a corporation called JM Construction Services, Inc. with the State of Florida. He then applied for a workers’ compensation insurance policy for September 2015 through September 2016 to cover six employees and an estimated annual payroll of $140,800.

 

The insurance company issued the policy for an annual premium of $17,152 based on the payroll information set forth in the application. Subsequent amendments to the policy resulted in its covering 19 employees and an estimated payroll of $410,800, at a revised premium of $38,860.

 

Under Florida law, any business that engages in construction work must secure and maintain workers’ compensation insurance, and the failure to do so is a felony. Construction contractors must require subcontractors to provide proof that they have workers’ compensation insurance.

 

Artica-Romero and Mejia-Murillo “rented” the JM Construction insurance policy to numerous contractors and subcontractors who employed hundreds of workers, many of whom are suspected of being undocumented aliens. To do so, they directed the insurance agent to send a certificate of insurance to the contractors and subcontractor as purported proof of sufficient workers’ compensation insurance.

The contractors and subcontractors wrote payroll checks to JM Construction for work performed by their employees. Mejia-Murillo then cashed the checks and gave the money to Artica-Romero to pay the workers. Artica-Romero kept four percent of each check as a fee for their services.

 

Between September 2015 and August 2016, Artica-Romero and Mejia-Murillo cashed payroll checks totaling $9,419,965, with their four percent fee totaling $376,798. No state or federal payroll taxes were deducted from the workers’ pay. The annual premium for a workers’ compensation insurance policy covering a payroll of $9,419,965 would have been approximately $1,088,078.

 

On August 4, 2016, the State of Florida Department of Financial Services, Division of Workers’ Compensation, served a Stop-Work Order on JM Construction alleging that it had failed to secure the payment of workers’ compensation by materially understating or concealing payroll. Subsequently, Mejia-Murillo left the country for Honduras.

 

To continue the scheme, Artica-Romero began working with Milton Romero, who had registered a company called Milton Statewide General Services, Inc., with the State of Florida. Romero, on behalf of Milton Statewide, obtained workers’ compensation insurance to cover six employees and an estimated payroll of $100,000 for an annual premium of $20,002. A certificate of insurance was issued and then “rented” to numerous contractors and subcontractors, in the same way that JM Construction’s certificate had been rented.

 

Between August 2016 and March 11, 2017, Artica-Romero and Romero cashed payroll checks totaling $10,883,772, with their four percent fee totaling $435,351. Again, no state or federal payroll taxes were deducted from the workers’ pay. The annual premium for a workers’ compensation insurance policy covering a payroll of $10,883,772 would have been approximately $1,750,453.

 

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

 

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Financial Services, Division of Investigative and Forensic Services. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.

Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Eric Houston (56, Riverview) today pleaded guilty to receipt of stolen government property. He faces a maximum penalty of 10 years in federal prison.

 

According to the

plea agreement , while working as a detective with the Tampa Police Department, Houston allowed a co-conspirator, Rita Girven, to pay off more than $5,000 in credit card debt that he and his wife, LaJoyce Houston, had accrued on their Home Depot credit card, knowing that the payoff funds had been obtained from fraudulent federal income tax refunds.

 

In a related case, on March 16, 2015, Girven pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. On November 20, 2015, she was sentenced to 12 years in federal prison.

LaJoyce Houston’s case is pending trial for her alleged role in the conspiracy.

 

This case was investigated by the Internal Revenue Service Criminal Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Steven Zoernack (55, Sarasota) today pleaded guilty to conspiring to commit wire fraud. He faces a maximum penalty of five years in federal prison, a $250,000 fine, and mandatory restitution to his victims in the amount of $2,890,518.54.

 

According to the

plea agreement , Zoernack owned and operated an investment advisory firm, EquityStar Capital Management LLC (“EquityStar”), through which he formed and managed multiple hedge funds, including the Petroleum Black Energy Fund, the Global Partners Fund, and the Momentum Growth Fund. Beginning in August 2012, Zoernack and his co-conspirators marketed these funds to accredited investors across the United States and Canada from offices in Sarasota and Newport Beach, California. They raised more than $6 million through their solicitations.

 

In marketing the funds, Zoernack failed to disclose numerous material facts about his background and the funds he was managing. Specifically, he failed to disclose that he had been convicted on federal wire fraud charges in 2007; had previously filed for bankruptcy; had a history of tax liens and adverse money judgments; and still owed hundreds of thousands of dollars in restitution to past fraud victims. In fact, Zoernack actively sought to conceal his past by misappropriating fund assets to pay an online reputation manager to manipulate Internet search engine results about him to prevent potential investors from learning of his past. He also routinely lied about his educational background, his expertise as an investment manager, and his experience in the financial industry. Similarly, Zoernack lied about the educational backgrounds and professional experience of his employees, as well as the size of the firm’s staff. He repeatedly impersonated former EquityStar employees and corresponded with investors online using fictitious names and phony email accounts. In addition, he lied to potential investors about his portfolio’s ratings, profits, market returns, and losses.

 

After obtaining investor contributions, Zoernack begin misappropriating fund assets for his personal use. Specifically, he made monthly withdrawals of unauthorized “salaries” and “bonuses” in amounts ranging from $12,000 to $25,000 and used these and other fund assets to pay for personal and non-business related expenses, none of which were disclosed to investors. In total, through a combination of trading losses and the misappropriation of fund assets, Zoernack lost millions of dollars of investors’ money.

 

This case was investigated by the Federal Bureau of Investigation, alongside a parallel civil enforcement action brought by the Securities and Exchange Commission. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.

Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Richard Daniel Lord (58, Jacksonville) to seven years and three months in federal prison for receiving sexual abuse videos of child over the Internet. He was also ordered to serve a life term of supervision and to register as a sex offender upon his release from prison.

 

According to court documents, on September 30, 2016, FBI agents executed a federal search warrant at Lord’s Jacksonville residence, while he was at home. During an interview with agents, Lord admitted to using his cellphones to search for, download, and view child pornography; that he was most interested in images and videos of children between the ages of 10-12 years old; and that he searched for child pornography “constantly” and could not control himself. A forensic examination of Lord’s cellphones revealed six videos that he had downloaded depicting prepubescent children being sexually abused.

 

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

 

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

Tampa, FL – U.S. District Judge Charlene Honeywell has sentenced Carlos Eyder Paz-Utima (41, Colombia, South America) to 24 years and 4 months in federal prison for conspiring with others to distribute five kilograms or more of cocaine on vessels subject to the jurisdiction of the United States, and for conspiring with others to distribute five kilograms or more of cocaine intending that it be unlawfully imported into the United States. He pleaded guilty on December 19, 2016.

 

According to court documents, Paz-Utima was responsible for several marine smuggling ventures in international waters of the Caribbean Sea. In September 2011, the United States Coast Guard interdicted a load of over 1,000 kilograms of cocaine that was being smuggled aboard the fishing vessel Diamada. Paz-Utima was the organizer and an investor in the drug trafficking organization, and was responsible for at least three other maritime smuggling ventures aboard vessels traveling from Colombia to Honduras.

 

This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Joseph Ruddy and Special Assistant United States Attorney Rebecca L. Castaneda.

Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Nikkos Hamlett (29, Brandon) has pleaded guilty to conspiracy to pay kickbacks in connection with a federal health care benefit program. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.

 

According to the plea agreement, Hamlett was an active duty Airman with the U.S. Air Force stationed at MacDill Air Force Base in Tampa. Beginning in September 2014, he became a sales representative for Centurion Compounding Inc., a marketing firm located in Wesley Chapel. Centurion utilized sales representatives as independent contractors to market compounded medications, specifically creams for pain and scars, to health care benefit program beneficiaries. Centurion focused its promotional efforts on TRICARE beneficiaries based upon an understanding and belief that TRICARE would pay claims for these compounded creams.

 

Hamlett was initially recruited into the Centurion scheme by other active-duty military members to be a patient and to obtain compounded creams marketed by Centurion. Between September 2014 and January 2015, Hamlett caused TRICARE to pay $84,487.43 in claims for his prescriptions for pain cream and scar cream.

 

Hamlett agreed and conspired with other members of his Centurion sales marketing group, self-labeled “team cream,” to give and offer to give TRICARE beneficiaries incentives, such as cash, meals, entertainment, and travel expenses, to visit a doctor and obtain prescriptions for Centurion-marketed compounded creams for which Hamlett and other “team cream” members would receive commissions. Between September 2014 and February 2015, Hamlett caused TRICARE to be billed approximately $640,577 for these creams, from which Centurion and Hamlett received commissions. Hamlett received commissions from Centurion totaling approximately $30,000 and, at the time Centurion shut down in February 2015, he was owed an additional $66,000 in commissions.

 

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

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that Jesse B. Ingram, Jr. (34, Apopka) yesterday pleaded guilty to two counts of being a felon in possession of a firearm; two counts of attempting to possess with the intent to distribute and attempting to distribute heroin; and one count of possessing a firearm in furtherance of a drug trafficking crime. He faces a maximum penalty of 10 years in federal prison for each count of being a felon in possession of a firearm, and up to 20 years in federal prison for each drug distribution charge. He also faces a mandatory minimum penalty of five years, consecutive to the sentence imposed for the other charges, for possessing a firearm in furtherance of his drug trafficking crime.

 

According to court documents, Ingram possessed a firearm while attempting to distribute a substance that he believed was heroin. As a previously convicted felon, he is prohibited from carrying a firearm or ammunition under federal law.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Orange County Sheriff’s Office, and the Apopka Police Department. It is being prosecuted by Assistant United States Attorney Sean P. Shecter.

 

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

Orlando, Florida – U.S. District Judge Anne C. Conway has sentenced Freddrick Dorr (46, Oviedo), James Dellafield, Jr. (24, Sanford), Beth Farber (30, Orlando), and George Materazzi (46, Orlando) to federal prison for drug trafficking. The Court also ordered each to forfeit firearms and U.S. currency that are traceable to proceeds of the offenses. A fifth individual, Danny Hampton (36, Oviedo) is scheduled to be sentenced on October 17, 2017. Each previously pleaded guilty to conspiracy to distribute and to possess with the intent to distribute heroin. In addition, Hampton and Dellafield each pleaded guilty to possessing a firearm as a convicted felon.

 

According to court documents, Hampton, Dorr, Dellafield, Farber, and Materrazi were affiliated with a drug trafficking organization known as the “Oviedo Soldiers” that distributed heroin, cocaine, and other narcotics in Seminole and Orange Counties. The organization was also known to law enforcement as the source of several violent crimes in the area. During the investigation, agents recovered multiple firearms. Each of the defendants has a criminal history involving drugs, firearms, and/or violent crimes.

 

Dellafield received a sentence of seven years in federal prison. Dorr was sentenced to six years’ imprisonment. Farber was sentenced to five years’ imprisonment, and Materazzi received a sentence of three years and one month in federal prison.

 

“The investigation and prosecution of members of this organization demonstrates the collective hard work of our law enforcement partners and prosecutorial team,” said Acting U.S. Attorney Stephen Muldrow. “We will continue to combine and utilize our resources to combat violent crime and drug trafficking in our communities.”

 

"This case emphasizes how successful the collaboration between state, local and federal law enforcement can be," said Paul Wysopal, Special Agent in Charge of the FBI Tampa Division. "The combined effort made our community safer by ridding the streets of these violent career criminals."

 

“I am extremely proud of the work done by the Orange County Sheriff’s Office Gang and Narcotics Units in partnership with the MBI, the FBI, and ICE-HSI to bring this criminal group to justice,” said Sheriff Jerry L. Demings. “Cocaine and heroin trafficking result in violence and death, and the dismantling of this organized group will have a positive impact on public safety in our community.”
“The Metropolitan Bureau of Investigation was pleased to work with federal and local law enforcement partners to bring the defendants in this drug trafficking organization to justice,” said Director Ron Stucker. “The prosecution of this drug trafficking organization will disrupt the flow of illegal drugs and reduce violence in the community.”

 

“These sentencings send a clear message to criminals that law enforcement will use every investigative technique possible to ensure the dismantling of criminal organizations in our communities,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI and our law enforcement partners are dedicated to making communities safer by bringing violent criminals to justice.”

 

This case was investigated by the Federal Bureau of Investigation, the Metropolitan Bureau of Investigation, the Orange County Sheriff’s Office, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Embry J. Kidd.

Tampa, Florida– U.S. District Judge James D. Whittemore has sentenced Anthony Michael Harris (26, Tampa) to six years in federal prison for conspiracy and aggravated identity theft. He pleaded guilty on November 29, 2016.

 

According to court documents, Harris worked as an administrative employee at a pediatric gastroenterology practice where he had access to patient medical records that contained the personally identifiable information (“PII”) of the practice’s patients, their parents, and their guardians. Harris conspired with his co-defendants, Larry Chance Cox and Maurice Rahmaan, to steal PII from his employer so that Cox, Rahmaan, and others could use that information to apply for credit cards online and file fraudulent federal income tax returns using the victims’ identities. The conspirators further agreed to share in the proceeds of the fraud.

 

Investigators recovered the PII of more than 13,000 individuals that had been stolen by Harris and used by the conspirators to apply for unauthorized credit cards. They also attempted to file approximately 180 fraudulent federal income tax returns.

 

On January 4, 2017, Cox pleaded guilty to conspiracy and aggravated identity theft. He is scheduled to be sentenced on April 3, 2017. Rahmaan pleaded guilty to the same charges on January 24, 2017, and his sentencing hearing is set for April 10, 2017.

 

This case was investigated by the Tampa Police Department, the Internal Revenue Service - Criminal Investigation, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Mandy Riedel.

Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Raymond L. Rodriguez, Jr. (52, Tampa) to three years and one month in federal prison for money laundering. As part of his sentence, the Court also entered a money judgment in the amount of $1,751,648, which are the proceeds traceable to the offense.

 

Rodriguez pleaded guilty on September 21, 2015.

 

According to court documents, Rodriguez owned and operated Rodriguez Auto Wholesale. Between 2009 and 2013, he sold 87 vehicles for a total of $1,751,648 to individuals who paid him with proceeds from the sale of illegal narcotics and/or stolen identity refund fraud (SIRF) offenses. Rodriguez knew the funds had been illegally derived and agreed to disguise the large cash transactions from the government in a number of ways. First, he agreed to accept large cash payments for vehicles without filing Forms 8300 with the Internal Revenue Service, as required by law. He also agreed to place vehicles in the names of straw buyers so that law enforcement and other governmental entities would not be aware of the true owners of the cars or the illegal proceeds used to purchase them. Rodriguez further promised purchasers that he would keep a lien on certain vehicles, despite receiving payment in full, so that in the event those vehicles were seized by law enforcement authorities, Rodriguez could reclaim possession and return the seized cars to the purchasers or their family members.

 

This case was investigated by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service, with assistance from the Drug Enforcement Administration and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Michael Manswell (30, Bronx, NY) to 3 years and 10 months in federal prison for making a false statement. He pleaded guilty on December 9, 2016.

 

According to court documents, on March 7, 2016, agents from the Federal Bureau of Investigation and the Florida Department of Law Enforcement interviewed Manswell as part of an investigation involving sex trafficking. During the interview, Manswell stated that he was friends with a particular minor, but falsely denied any type of relationship with that minor. He further stated that they had not had intimate sexual contact of any kind within the past two years. These statements were false, as Manswell and the minor had frequently engaged in sexual contact during that time, including intimate sexual relations while the minor was under the age of 18.

 

This case was investigated by the FBI and the FDLE. It was prosecuted by Assistant United States Attorney Ashley Washington and former Deputy Chief Assistant United States Attorney Mac D. Heavener.

 

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.

 

LAW ENFORCEMENT AGENCIES TO ANNOUNCE PRISON SENTENCES IMPOSED FOR DRUG TRAFFICKERS

 

 WHO:       Acting United States Attorney W. Stephen Muldrow

Orange County Sheriff Jerry L. Demings

Assistant Special Agent in Charge Ronald Hopper, Federal Bureau of Investigation

Chad Holth, Group Supervisor, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations

Director Ron Stucker, Metropolitan Bureau of Investigation

 

WHAT:     Press conference to announce the sentences imposed for individuals involved in

                drug trafficking and firearms offenses.

 

WHEN:   WEDNESDAY, March 29, 2017 at 10:30 A.M. EST

 

WHERE: Orange County Sheriff’s Office

             Mel Martinez Auditorium

             2500 West Colonial Drive

             Orlando, Florida

 

OPEN PRESS

 

NOTE: All media must present government-issued photo I.D. (such as a driver’s license).

 

Media may begin arriving at 10:00 A.M.

 

Please RSVP to [email protected] by 9:00 a.m. on Wednesday, March 29, 2017. 

Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Vaughn Matthews (25, St. Petersburg) to six years and six months in federal prison for possessing firearms in furtherance of a drug trafficking crime and for possessing firearms and ammunition as a convicted felon. He pleaded guilty on December 22, 2016.

 

According to court documents, law enforcement officers executed a search warrant at Matthews’s residence on March 23, 2016. During the search, officers recovered over 20 pounds of marijuana, 3 firearms, more than 50 rounds of assorted ammunition, and over $86,000 in cash. Further investigation revealed that Matthews had been working with individuals in California and had trafficked at least 50 packages of marijuana into Florida via the mail. As a previously convicted felon, he is prohibited from possessing firearms or ammunition under federal law.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the St. Petersburg Police Department, and the U.S. Postal Service. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.

 

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

 

Fort Myers, FL – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Kay F. Gow (66, Naples), Robert T. Gow (75, Naples), and John G. Williams, Jr. (65, Virginia Beach, VA) with conspiracy to commit wire fraud and money laundering, wire fraud, and illegal monetary transactions. If convicted on all counts, the Gows each face a maximum penalty of 45 years in federal prison, and Williams faces a maximum penalty of 25 years in federal prison. The indictment also notifies the defendants that the United States intends to forfeit over $5.1 million, that is alleged to be traceable proceeds of the offenses. All three individuals will make their initial appearances today at 3:00 p.m. before United States Magistrate Judge Carol Mirando.

 

According to the indictment, , the Gows owned and controlled multiple entities, including HerbalScience Group, LLC and HerbalScience Singapore Pte, Ltd. In 2010, the Gows formed VR Laboratories, LLC to apply for a $5 million grant from Lee County through the Financial Incentives for Recruiting Strategic Targets (“FIRST”) program, which consisted of taxpayer funds set aside by the county to bring economic development projects to the Ft. Myers area. In seeking the award, the Gows made numerous false and fraudulent representations to various individuals and government entities about their financial success and that of HerbalScience and VR Labs, including that VR Labs was poised to become a leading global formulator and manufacturer of botanical pharmaceuticals. Ultimately, Lee County awarded VR Labs $5 million in FIRST incentive program funds to build a manufacturing facility that the Gows had claimed would bring hundreds of high-paying jobs and economic growth to Lee County.

 

Once VR Labs executed an agreement with Lee County, Williams, a long-time friend of the Gows, registered a fictitious name, “Williams Specialty Bottling Equipment,” with the Florida Secretary of State. The Gows then represented that Williams would provide the bottling line for the manufacturing facility when he had no such experience or expertise. Williams used false and fraudulent invoices for work and services allegedly performed on the bottling line to make demands for payment and, once paid, kicked back a substantial portion of the funds to VR Labs and the Gows. The Gows then used Williams’s false and fraudulent invoices to justify requests to Lee County for the payment of the grant money. Once VR Labs received the grant funds, the Gows fraudulently transferred those funds to entities they owned and controlled, and ultimately to themselves, by disguising the transfers as fees, salaries, expenses, and other items. They also tried to conceal the source of the kickbacks through the creation of fictitious entities and documents. Ultimately, Lee County disbursed approximately $4.7 million in FIRST incentive grant funds to VR Labs, but the manufacturing facility was never completed or operational.

 

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 Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Josephine W. Thomas.

Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that Esthela Clark (47, Jacksonville) today pleaded guilty to a charge of forced labor. She faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.

 

According to the plea agreement, Clark paid so-called “coyotes” approximately $3,000 to smuggle a woman from Mexico into the United States for the purpose of serving as her pregnancy surrogate. Clark assured her victim that the surrogacy would be medically supervised. Clark instead forced her victim to engage in domestic labor through physical and psychological abuse. She attempted to impregnate the victim using syringes containing Clark’s boyfriend’s sperm that she had retrieved from used condoms. The attempts at insemination lasted approximately nine months, however, no pregnancy resulted.

 

Clark isolated the victim from her family and limited her to a diet consisting exclusively of beans, resulting in a 65-pound weight loss. She also attempted to collect from the victim’s family the cost she had paid to the “coyotes,” with interest.

 

This case was investigated by U.S. Immigration and Custom’s Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.

A Jacksonville, Florida man was sentenced today to 18 months in prison for unlawfully procuring U.S. citizenship by failing to disclose during his naturalization process his membership in the Bosnian Army and crimes that he committed in Bosnia and Herzegovina during the Bosnian Conflict in the 1990s, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida.

Slobo Maric, 56, was sentenced today by U.S. District Judge Marcia Morales Howard of the Middle District of Florida who also ordered his U.S. citizenship revoked.  On July 18, 2016, Maric pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida to one count of unlawful procurement of naturalization.

According to the plea agreement, in 1993, Maric served as a shift leader, the second in command to the warden, of a detention facility in Bosnia that housed captured Bosnian-Croat soldiers.  Many of the guards in the facility routinely subjected detainees to serious physical abuse and humiliation.  According to the plea agreement, Maric selected detainees for other guards to abuse; directly participated in abusing several prisoners; and sent prisoners on dangerous and deadly work details on the front line of the conflict.  The Bosnian government charged Maric for his criminal conduct and, after Maric immigrated to the United States, Bosnia indicted and convicted Maric in absentia for war crimes against prisoners.  According to the plea agreement, Maric knew about the Bosnian court proceedings, yet he failed to disclose the proceedings and lied about his conduct on his application for U.S. citizenship.  Maric became a naturalized U.S. citizen on Oct. 31, 2002.

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Jacksonville Field Office investigated the case under the supervision of the HSI Tampa Field Office with support from ICE’s Human Rights Violators and War Crimes Center.  

Trial Attorney Clayton O’Connor and Historian David Rich of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Dale Campion of the Middle District of Florida prosecuted the case.  

Jacksonville, FL – Slobo Maric (56, Jacksonville) was sentenced today to 18 months in prison for unlawfully procuring U.S. citizenship by failing to disclose during his naturalization process his membership in the Bosnian Army and crimes that he committed in Bosnia and Herzegovina during the Bosnian Conflict in the 1990s, announced Acting U.S. Attorney W. Stephen Muldrow and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.

 

Maric was sentenced today by U.S. District Judge Marcia Morales Howard of the Middle District of Florida who also ordered his U.S. citizenship revoked. On July 18, 2016, Maric pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida to one count of unlawful procurement of naturalization.

 

According to the plea agreement, in 1993, Maric served as a shift leader, the second in command to the warden, of a detention facility in Bosnia that housed captured Bosnian-Croat soldiers. Many of the guards in the facility routinely subjected detainees to serious physical abuse and humiliation. According to the plea agreement, Maric selected detainees for other guards to abuse; directly participated in abusing several prisoners; and sent prisoners on dangerous and deadly work details on the front line of the conflict. The Bosnian government charged Maric for his criminal conduct and, after Maric immigrated to the United States, Bosnia indicted and convicted Maric in absentia for war crimes against prisoners. According to the plea agreement, Maric knew about the Bosnian court proceedings, yet he failed to disclose the proceedings and lied about his conduct on his application for U.S. citizenship. Maric became a naturalized U.S. citizen on Oct. 31, 2002.

 

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Jacksonville Field Office investigated the case under the supervision of the HSI Tampa Field Office with support from ICE’s Human Rights Violators and War Crimes Center.

 

Trial Attorney Clayton O’Connor and Historian David Rich of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Dale Campion of the Middle District of Florida prosecuted the case.

U.S. District Judge Carlos E. Mendoza of the Middle District of Florida today ordered defendant Abdullah Hamidullah, 43, to pay $1,179,000.00 in restitution to six victims of his sex trafficking and interstate prostitution enterprise, the Justice Department announced. Last month, the court sentenced the defendant to serve 482 months’ imprisonment and a lifetime of supervised release.  On June 17, 2016, the defendant pleaded guilty to sex trafficking by force, fraud, and coercion and related interstate prostitution violations, and agreed as a term of his plea agreement to pay restitution to six victims identified in the indictment.

At the Feb. 24, 2017 sentencing hearing, the court made detailed findings, noting that the defendant engaged in “fraud and deception to lure young women” whom he then “enslaved … using violence and intimidation and permanently branding them as [his] property.” The court cited violent physical and sexual assaults which the defendant perpetrated “out of greed,” demonstrating the capacity to “view these women as nothing more than property.” In imposing the sentence, the court emphasized that, “these women will carry the scars of their enslavement with memories of your brutality, the manner in which you branded them as your property, and with the fact that you forced them to engage in countless sexual encounters with total strangers for you own profit.”

“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Trafficking Victims Protection Act requires traffickers to pay restitution to their victims, with good reason. Restitution compels traffickers to relinquish the proceeds of their crimes, and helps restore victims to lives of independence and freedom. We will continue to pursue restitution as an integral part of our efforts to seek justice on behalf of victims of human trafficking.”

“Victims of sex trafficking can never be truly compensated for the horrors that they have endured,” said Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida.  “However, our Office is firmly committed to seeking restitution in these cases to help victims transition to normal lives.”

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Orlando-based Metropolitan Bureau of Investigations, and was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda of the Middle District of Florida, and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.

Defendant Previously Sentenced to Over 40 Years’ Imprisonment Ordered to Pay Restitution to Six Victims of Interstate Sex Trafficking and Prostitution Enterprise

 

Orlando, FL - U.S. District Judge Carlos E. Mendoza today ordered Abdullah Hamidullah (43) to pay $1,179,000.00 in restitution to six victims of his sex trafficking and interstate prostitution enterprise, the Justice Department announced. Last month, the court sentenced Hamidullah to serve 482 months’ imprisonment and a lifetime of supervised release.  On June 17, 2016, he pleaded guilty to sex trafficking by force, fraud, and coercion and related interstate prostitution violations, and agreed as a term of his plea agreement to pay restitution to six victims identified in the indictment.

At the Feb. 23, 2017, sentencing hearing, the court made detailed findings, noting that Hamidullah engaged in “fraud and deception to lure young women” whom he then “enslaved … using violence and intimidation and permanently branding them as [his] property.” The court cited violent physical and sexual assaults which Hamidullah perpetrated “out of greed,” demonstrating the capacity to “view these women as nothing more than property.” In imposing the sentence, the court emphasized that, “these women will carry the scars of their enslavement with memories of your brutality, the manner in which you branded them as your property, and with the fact that you forced them to engage in countless sexual encounters with total strangers for you own profit.”

“Victims of sex trafficking can never be truly compensated for the horrors that they have endured,” said Acting U.S. Attorney W. Stephen Muldrow. “However, our Office is firmly committed to seeking restitution in these cases to help victims transition to normal lives.”

“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Trafficking Victims Protection Act requires traffickers to pay restitution to their victims, with good reason. Restitution compels traffickers to relinquish the proceeds of their crimes, and helps restore victims to lives of independence and freedom. We will continue to pursue restitution as an integral part of our efforts to seek justice on behalf of victims of human trafficking.”

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Orlando-based Metropolitan Bureau of Investigations, and was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda of the Middle District of Florida, and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.

Fort Myers, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Eric David Erdmann (44, Punta Gorda) guilty of failing to register as a sex offender. His sentencing hearing is scheduled for May 22, 2017; he faces a maximum penalty of 10 years in federal prison.

 

According to testimony and evidence presented at trial, Erdmann was required to register as a sex offender following a July 13, 2010, sex offense conviction in Oregon. He registered as a sex offender in Oregon but then absconded, traveling to the Kingdom of Cambodia. In December 2010, Oregon authorities issued a warrant for his arrest.

 

On April 8, 2016, at the U.S. Embassy in Phenom Penh, Cambodia, the United States Department of State served Erdmann with a notice informing him that his passport was being revoked due to his outstanding arrest warrant. Two weeks later, Cambodian authorities arrested him for being in that country illegally. Erdmann agreed to depart Cambodia voluntarily, and he arrived in Florida on April 28, 2016, where he took up residence in Lee County and failed to register as a sex offender.

 

This case was investigated by the U.S. Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Florida Department of Law Enforcement, and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael C. Baggé-Hernández.

Concealed Approximately $2.5 Million in Secret Belize Accounts

 

A Florida businessman pleaded guilty today in the U.S. District Court for the Middle District of Florida to conspiracy to commit tax and bank fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

 

According to documents filed with the court, Casey Padula, 48, of Port Charlotte, was the sole shareholder of Demandblox Inc. (Demandblox), a marketing and information technology business. Padula conspired with others to move funds from Demandblox to offshore accounts in Belize and disguised them as business expenses in Demandblox’s corporate records. Padula created two offshore companies in Belize: Intellectual Property Partners Inc. (IPPI) and Latin American Labor Outsourcing Inc. (LALO). He opened and controlled bank accounts in the names of these entities at Heritage International Bank & Trust Limited (Heritage Bank), a financial institution located in Belize. From 2012 through 2013, Padula caused periodic payments to be sent from Demandblox to his accounts at Heritage Bank and deposited approximately $2,490,688. Padula used the funds to pay for personal expenses and purchase significant personal assets. However, he falsely recorded these payments in Demandblox’s corporate books as intellectual property rights or royalty fees and deducted them as business expenses on Demandblox’s 2012 and 2013 corporate tax returns causing a tax loss of more than $728,000.

 

Padula also conspired with investment advisors Joshua VanDyk and Eric St-Cyr at Clover Asset Management (CAM), a Cayman Islands investment firm, to open and fund an investment account that he would control, but that would not be in his name. Heritage Bank had an account at CAM in its name and its clients could get a subaccount through Heritage Bank at CAM, which would not be in the client’s name but rather would be a numbered account. Padula transferred $1,000,080 from the IPPI bank account at Heritage Bank in Belize to CAM to fund a numbered account.

 

In addition to the tax fraud, Padula also conspired with others to commit bank fraud. Padula had a mortgage on his Port Charlotte, Florida home of approximately $1.5 million with Bank of America (BoA). In 2012, he sent a letter to the bank stating that he could no longer repay his loan. At the same time, Padula provided Robert Robinson, III, 43, who acted as a nominee buyer, with more than $625,000 from his IPPI bank account in Belize to fund a short sale of Padula’s home. Padula and Robinson signed a contract, which falsely represented that the property was sold through an “arms-length transaction,” and agreed that Padula would not be permitted to remain in the property after the sale. Padula in fact never moved from his home and less than two months after the closing, Robinson conveyed it back to Padula by transferring ownership to one of Padula’s Belizean entities for $1. Robinson also pleaded guilty today to signing a false Form HUD-1 in connection with his role in the scheme.

 

“Casey Padula employed secret offshore bank accounts and shell companies to hide millions and evade U.S. taxes,” said Acting Deputy Assistant Attorney General Goldberg. “As his guilty plea today demonstrates, there are no safe havens any more, whether in Belize, Switzerland or elsewhere around the world, for U.S. taxpayers intent on not paying their fair share of taxes.”

 

“Today’s plea is the result of another exercise in following the money and it sends a clear message to those who believe they can avoid taxes by hiding their money offshore,” said Chief Richard Weber of IRS Criminal Investigation (CI). “Together with our law enforcement partners, IRS-CI will continue to unravel complex financial transactions and hold those accountable who break the law. IRS-CI special agents will use their financial investigative expertise to ensure taxpayers who violate the law will be brought to justice which is necessary to foster voluntary compliance of our tax laws.”

 

Padula faces a statutory maximum sentence of five years in prison, a term of supervised release and monetary penalties. As part of his plea agreement, Padula agreed to pay restitution in the amount of $728,609 to the IRS and to BoA in the amount of $728,609. Robinson faces a statutory maximum sentence of one year in prison, a term of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-CI, who conducted the investigation, and Assistant Chiefs Todd Ellinwood and Caryn Finley of the Tax Division, who are prosecuting the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office of the Middle District of Florida for its assistance.

 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Mrugesh G. Patel (38, Edgewater) to 18 months in federal prison for bank fraud. The Court also entered a money judgment in the amount of $405,087.99, the proceeds of the offense. Patel pleaded guilty on December 19, 2016.

 

According to court documents, between February 2011 and December 2012, Patel participated in a scheme to defraud federally insured banks, including TD Bank and Centerstate Bank. Specifically, he opened numerous bank accounts under the names of various Florida-based companies that he had established. He then used these accounts to make bulk deposits of fraudulent bank drafts made payable to his companies. The bank drafts were made using the unauthorized account information of other individuals, businesses, and entities. Patel also made false representations to bank representatives when he opened the accounts and during the time period that he was making the deposits.

 

Patel's fraud scheme caused more than $1,352,956 in losses to victims whose account information was used to create the fraudulent bank drafts. He used some of this money for personal expenditures and to pay third parties. During the investigation, law enforcement seized over $400,000 in illegal proceeds from bank accounts that Patel controlled.

 

This case was investigated by the U.S. Secret Service and the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant United States Attorneys Andrew C. Searle and Nicole Andrejko.

Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Elise Ellis to 18 months in federal prison and 6 months’ home detention for conspiracy to commit tax fraud and aggravated identity theft. As part of her sentence, the Court also entered a joint and several money judgement in the amount of $221,000, representing the proceeds of the tax fraud conspiracy. Ellis pleaded guilty on January 3, 2017.

 

Her sons, Keith Godbolt and Paul Johnson, were previously sentenced to four years and three years and six months, respectively, for their roles in this case.

According to court documents, from August 2011 through April 2013, Ellis, Godbolt, and Johnson conspired to commit wire fraud, theft of government property, and identity theft by electronically filing fraudulent tax returns in the names of others, using their social security numbers. The fraudulent tax refunds were directed to bank accounts in the defendants’ names, or in some cases, to debit cards that they controlled. Ellis and her sons then withdrew the fraudulent refunds by writing checks or otherwise transferring funds to each other through bank transfers or cash withdrawals.

 

Most of the fraudulently filed tax returns claimed unusually high taxable interest or dividend income, many using the exact same figure, with a large withholding amount, and a false occupation listed for the taxpayer. Many of the victims were deceased when their false tax return was filed.

 

This case was investigated by Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.

Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Joseph Spradlin (41, Cape Coral) to 30 years’ imprisonment for producing and possessing child pornography. He pleaded guilty on December 9, 2016.

 

According to the plea agreement, after downloading child pornography directly from Spradlin’s computer over a peer-to-peer network, members of the FBI Child Exploitation Task Force executed a search warrant at Spradlin’s residence. The agents located more than 65,000 images and 668 videos of child pornography on four thumb drives. Further investigation revealed that Spradlin had produced child pornography images and videos of an 8-year-old girl on at least two occasions.

 

This case was investigated by the FBI Child Exploitation Task Force, with assistance from the Cape Coral Police Department and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Charles Schmitz.

 

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, FL – U.S. District Judge Virginia Hernandez Covington has sentenced Ebony Stillwell (31, Tampa) to three years in federal prison for conspiracy to commit bank fraud. The Court also ordered her to forfeit $252,107.07, which are traceable to proceeds of the offense. Stillwell pleaded guilty on October 25, 2016.

 

According to court documents, in December 2014, Stillwell began working as the onsite manager for St. Giles Manor, an apartment complex located in Pinellas Park and managed by SPM Property Management. St. Giles Manor was undergoing a refurbishment and, as part of her duties, Stillwell received and processed invoices from vendors and contractors for payment.

 

During the refurbishment, SPM and St. Giles Manor contracted with Erickson’s Drying Systems, a cleaning and restoration company based in Ft. Myers. In conjunction with this work, Erickson’s submitted invoices for payment to St. Giles Manor and Stillwell that were paid by checks from an SPM LLC bank account.

 

On January 22, 2015, Stillwell’s brother and co-defendant, David Chambers Opembe, registered a shell company called Erickson’s Drying Systems with the Harris County Clerk in Texas. On the same date, he opened a bank account at Regions Bank in the name of Erickson’s Drying Systems, listing himself as the sole signatory on the account and his home address in Texas. No one at the actual Erickson’s in Ft. Myers was aware of or approved the establishment of the Texas corporation or business bank account.

 

Between January 22, 2015, and October 23, 2015, Stillwell caused approximately 21 checks to be issued from the SPM disbursing account to the “fake” Erickson’s Drying Systems account. She facilitated the automated issuance of these checks by submitting fabricated invoices that she had altered using prior legitimate invoices from Erickson’s. Stillwell had all of these checks delivered to her office instead of having them mailed to Erickson’s in Ft. Myers. She then deposited the checks into the Erickson’s account her brother had established. After the funds were deposited, Opembe withdrew cash and transferred funds to his personal checking account. Stillwell and Opembe used the funds to make their car payments and to pay for other personal expenses. In total, Opembe and Stillwell deposited approximately $262,067 in fraudulently obtained checks into the “fake” Erickson’s bank account.

 

David Chambers Opembe previously pleaded guilty to conspiracy to commit bank fraud and, on March 2, 2017, he was sentenced to 36 months’ incarceration.

 

This case was investigated by the Tampa Police Department and the Pinellas Park Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Latronda Brooks with wire fraud and aggravated identity theft in connection with income tax fraud. If convicted, she faces a maximum penalty of 20 years in federal prison on the wire fraud count, followed by an additional two-year, consecutive sentence for the aggravated identity theft charge. The indictment also notifies Brooks that the United States is seeking a money judgment in the amount of $327,521, representing the proceeds of the alleged fraud.

 

According to the indictment, Brooks opened an Urban Trust Bank account in her name, doing business as Magnificent Tax Services. Although she had a tax preparer number, Brooks did not use it in preparing any tax returns instead, she used a “permission” form purportedly signed by the taxpayer that allegedly gave her permission to deposit and cash numerous third-party tax refund checks in her bank account, less a “service charge” of up to 25 percent. Brooks spent the money from the third-party tax refunds on personal expenditures and did not provide any of the funds to the taxpayers.

 

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

 

This case was investigated by Internal Revenue Service – Criminal Investigation and the Manatee County Sherriff’s Office. It will be prosecuted by Assistant United States Attorney Kelley Howard-Allen.

Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Eric C. Falkowski (35, Orlando) to 15 years and 8 months in federal prison for conspiracy to possess with the intent to distribute 40 grams or more of fentanyl and for being a felon in possession of a firearm. Falkowski pleaded guilty on December 15, 2016.

 

According to court documents, Falkowski obtained fentanyl, acetyl fentanyl, butyrl fentanyl, and other controlled substances from China in order to manufacture counterfeit prescription pills, including Xanax and Percocet. After receiving the fentanyl and other controlled substances, he would prepare and manufacture counterfeit pills using pill presses and dyes. Falkowski, and others acting at his direction, would then ship and transport parcels containing the counterfeit pills to Tennessee, Kentucky, Arkansas, and other places.

 

In February 2016, the Osceola County Sheriff’s Office executed a search warrant at Falkowski’s residence. During that search, law enforcement officers recovered more than 300 grams of fentanyl, various other controlled substances, pill presses, and dyes. In addition, officers recovered seven firearms, including a 9mm Luger Beretta pistol, a 9mm Luger Heckler & Koch pistol, a .22 caliber Ruger pistol, a .40 caliber Smith & Wesson pistol, a 5.56 caliber NATO Sig Sauer M400 rifle, a 9mm Ruger pistol, and a .380 caliber Walther pistol. Falkowski’s fingerprints were found on the .380 caliber Walther pistol. As a previously convicted felon, Falkowski is prohibited from possessing a firearm or ammunition under federal law.

 

This case was investigated by the Drug Enforcement Administration and the Osceola County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shawn P. Napier.