Middle District of Florida
Press releases recorded for this federal judicial district.
Edgewater Man Pleads Guilty to Bank Fraud Scheme Involving over $1.3 Million in LossesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Mrugesh G. Patel (38, Edgewater) today pleaded guilty to bank fraud. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, beginning in February 2011 and continuing until 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. Patel then used these bank 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 over $1,352,956 in losses to those 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 of Patel’s scheme, law enforcement seized over $400,000 in illegal proceeds from bank accounts that Patel controlled.
This case was investigated by the United States Secret Service and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Andrew C. Searle and Nicole Andrejko.
U.S. Attorney’s Office Collects More Than $236.9 Million for Taxpayers in Fiscal Year 2016Read the Press Release
Tampa, FL - U.S. Attorney A. Lee Bentley, III announced today that the Middle District of Florida collected $236,927,010.74 for taxpayers this fiscal year (FY). In FY 2016, which ended on September 30, 2016, the Office’s Civil, Criminal, and Asset Forfeiture Divisions collected these monies through criminal and civil actions.
The Office’s Civil Division, led by Randy Harwell, recovered $96,354,288.71 from affirmative civil enforcement cases, most alleging health care fraud. An additional $57,148,531.95 was recovered as a result of joint investigations with the Department of Justice’s Civil Division and other U. S. Attorneys’ Offices.
The Office’s Asset Recovery Division, led by Anita M. Cream, recovered more than $140.5 million, most of which was in the form of restitution, criminal fines, and special assessments. Providing restitution for victims of crime is a top priority of our office. Working with partner agencies, the Division’s Asset Forfeiture Section recovered an additonal $26.7 million in criminal and civil forfeitures. Depending on the type of case, forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund or the Department of Treasury’s Assets Forfeiture Fund. Consistent with Departmental policy, in cases where a defendant lacks the means to pay restitution, assets can be forfeited from that defendant and restored to crime victims. In addition, $1.6 million in forfeited funds was shared with state and local law enforcement agencies.
Attorney General Loretta E. Lynch announced today that the Justice Department collected $15.3 billion in civil and criminal actions this fiscal year. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $3 billion budget for the 94 U.S. Attorneys’ Offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“Recovering monies from convicted criminals and others who have defrauded the government is critical in enforcing our nation’s laws,” said U.S. Attorney Bentley. “Working together with our law enforcement partners, and other federal, state, and local agencies, our efforts ensure that criminals and others committing fraud are held fully accountable for their offenses. Through these coordinated efforts, we are able to help victims recover from their losses, wherever possible, and replenish public resources.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
In measuring collections recovered in FY 2016, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2016.
Middle District of Florida Case Highlights
Affirmative Cases
United States ex rel. Martin v. Life Care Centers,
Case no. 1:08cv251 (M.D. Tenn.)
The Middle District of Florida was one of seven United States Attorney’s Offices tasked with litigating the government’s civil health care fraud claims in the captioned qui tam case against one of the nation’s largest providers of Medicare subsidized rehabilitation therapy. After a lengthy investigation, the United States intervened in two overlapping cases in the Middle District of Tennessee that alleged a wide spread practice of up-coding rehabilitation services provided to skilled nursing facilities around the country. Some of the worst offending facilities with regard to the practices at issue were located in the Middle District of Florida, and our district took a significant role in the discovery process that sought to establish the factual record for the fraud alleged as it concerned those facilities. Years of litigation ensued, and the case was eventually settled on an ability-to-pay basis for $145 million.
United States ex rel. Ting v. 21st Century Oncology, Inc., et al.,
Case no. 2:14-civ-1405-FtM-29MCM
A radiation physicist employed by a nationwide provider of oncology services filed a qui tam complaint alleging that the provider had defrauded Medicare through claims for reimbursement of an allegedly unnecessary service called GAMMA radiation therapy. The service supposedly measures the strength and precise location of the radiation used to bombard cancerous tumors in oncology patients. The relator alleged that the service was over-utilized, at best, and, at worst, provided no tangible benefit to patients who received it. We launched a comprehensive investigation that determined the test to be of dubious medical utility and opened negotiations with the defendant that concluded with a settlement of the clhttps://www.justice.gov/usao-mdfl/pr/united-states-settles-false-claims-act-allegations-against-21st-century-oncology-nearlyaims in the case for $34.685 million.
United States ex rel. Barnes v. Spellberg, et al.,
Case no. 2:13-civ-228-FtM-99DNF
A former employee of a nationwide provider of oncology services alleged that an oncologist had defrauded Medicare through claims submitted for medically unnecessary oncology services called FISH tests. Our investigation revealed that three oncologists in the Ft. Myers area were responsible for an extremely high percentage of the expensive tests billed to Medicare on a nationwide basis. We confronted the physicians and the umbrella organization with our findings, and ultimately settled with the nationwide provider for $19.75 million, with one of the individual physicians, David Spellberg, M.D., for $1.05 million, and with a second physician, Robert Scappa, on an ability-to-pay basis for $250,000.
United States ex rel. Schimke v. Rose Radiology Centers, Inc.,
Case no. 8:12-civ-2576-T-35MAP;
United States ex rel. Miller v. Rose Radiology, Inc.,
Case no. 8:12-civ-2757-T-35EAJ
A current and former employee of one of the largest providers of diagnostic services in the Tampa Bay area filed two overlapping qui tam cases alleging that the provider had engaged in a number of schemes to defraud federal health programs, including payment of kickbacks to induce Medicare referrals, performing unsupervised dye contrast procedures in violation of Medicare reimbursement rules, submission of Medicare claims for reimbursement of services not ordered by physicians, and submission of claims performed at locations that were not enrolled with the Medicare program. All claims in the two cases were settled on an ability-to-pay basis for $8.7 million.
United States ex rel. Doe v. Institute of Cardiovascular Excellence,
Case no. 5:11-civ-406-Oc-10KRS
United States ex rel. Taylor v. Qamar,
Case no. 8:14-civ-1454-T-35EAJ
The United States intervened in two overlapping qui tam cases filed against an Ocala cardiologist, Dr. Asad Qamar, and his practice, the Institute of Cardiovascular Excellence. A complaint was filed alleging that these defendants had billed Medicare, Medicaid, and TRICARE for medically unnecessary procedures and had paid kickbacks to patients by waiving Medicare copayments irrespective of financial hardship. Medicare copayments provide beneficiaries with an incentive to be smart health care consumers and avoid unnecessary procedures. By waiving the required copayments indiscriminately, Dr. Qamar and his practice induced patients to undergo unnecessary and invasive procedures. This conduct made Dr. Qamar the highest paid Medicare cardiologist in the United States in 2012 and 2013. These allegations were settled for $7.3 million.
Compounding Pharmacy Fraud Initiative
The Middle District of Florida continued to lead the nation in its work on a series of direct referrals from the TriCare health program to address crippling fraud aimed at that program by a web of unscrupulous compounding pharmacies, “teledoc” Internet-based physicians, and marketers. These individuals and entities banded together to market, prescribe, and fill prescriptions for lucrative pain and scar creams. Nationwide, the TriCare reimbursement for these cream medications was roughly $122 million in 2012; by May 2015, reimbursement had skyrocketed to $1.8 billion, a trend that threatened the solvency of the program. Our investigations of the most prolific pharmacies in the Middle District of Florida uncovered a variety of schemes, notably the pharmacies’ payment of enormous commissions to marketers who located physicians and TriCare beneficiaries to whom medically unnecessary creams would be prescribed; improper referral relationships; payment of kickbacks to physicians in return for referrals; use of bogus philanthropies to circumvent co-payment obligations; and an array of violations of state laws pertaining to prescriptions and pharmacy practice.
In FY 2016, the Middle District of Florida entered into a host of civil settlements with compound pharmacies and their principals that addressed these issues. These settlements included:
OHM Pharmacy, Inc., $4.1 million
At issue in OHM was the filling of prescriptions that were not based upon a bona fide patient/doctor relationship.
Well Health, Inc., $3,781,566; Topical Specialists, $2,228,455; Mehul Parekh $510,00, Sayed Assad $520,000, Marisol Arcila $400,000, Manish Bansal $2,270,236
This series of related settlements involved compounding pharmacies and their principals engaged in improper referral relationships and illegal recruitment of prescribing physicians through bogus research-study arrangements.
Andy and Tracy Miller, $7.75 million
This resolved claims against the principals of a compound pharmacy for their role in the payment of illegal compensation to marketers and the filling of prescriptions for pain creams written outside of the ordinary course of medical practice.
Durbin Pharmacy, $2.1 million; $1.6 million
This matter involved two separate agreements addressing illegal incentive-based commissions to marketers and filling prescriptions that were not based upon a bona fide patient/doctor relationship.
Advanced Dermatology
This was a direct referral from the TriCare program regarding the billing practices of a Jacksonville dermatology practice. Following a comprehensive investigation, we found the practice group had engaged in systemic abuse of CPT Modifier 25, which resulted in unbundled billings to federal payers for services that should have been billed with the claim for the office visit. The practice paid $3,666,711 to resolve these claims.
Hospice of Citrus County
This was a direct referral from the HHS Office of the Inspector General concerning a local hospice provider’s practice of billing Medicare for hospice services that were provided to patients who did not qualify for the service, i.e., who were not within 6 months of death. Services were provided to patients often for years in duration. The provider paid $3.022 million to settle these claims.
United States ex rel. Caputo v. Bay Area Partners,
Case no. 8:13-cv-2591-T-33EAJ
A former technician employee of a provider of lithotripsy services filed a qui tam complaint alleging that the defendant had improperly billed Medicare for reimbursement of lithotripsy performed by technicians that lacked the proper certification required by Medicare reimbursement regulations. The defendant settled these claims under an agreement that paid the United States $793,887.
Asset Forfeiture Cases
United States vs. Leonard Potillo,
Case No. 6:14-cr-128-Orl-40GJK
Potillo was the manager/owner of United Credit Recovery, LLC (UCR), a debt collection company. From 2007 through 2012, Potillo bribed a bank official so that UCR could purchase “charged-off” consumer debts from the bank through an auction process. These charged-off debts are extremely valuable because they can be purchased for pennies on the dollar and resold for huge profits. Potillo paid $1 million in bribes to an officer from U.S. Bank in exchange for inside information on the auctions. He then successfully purchased debt portfolios with a face value of $820 million. Potillo’s company generated gross proceeds of more than $28 million on this debt. With the illegal proceeds, Potillo purchased prime real estate holdings in the United States and abroad, as well as luxury vehicles, motorcycles, and jewelry. In October 2015, a superseding indictment was returned by the grand jury, charging Potillo with conspiracy to commit bribery of a bank official and tax evasion. He pleaded guilty to the charges and agreed to the forfeiture of $2 million in assets, as well as a $28 million forfeiture money judgment. The assets forfeited include, among other things, 9 luxury vehicles, 2 motorcycles, a boat and trailer, real property, 17 pieces of high-valued jewelry, and numerous bank accounts. Potillo agreed to pay $1 million to the IRS in restitution – he also agreed to satisfy this restitution through income generated through UCR’s legitimately obtained debt portfolios. In January 2016, Potillo was sentenced to 46 months in federal prison.
United States v. Lohr,
Case No. 8:15-cr-510-T-23MAP
This case involved the sale of illegal prescription drugs and herbal Viagra that had been smuggled into the United States. Two bank accounts, cash from a safe deposit box, and cash found at the store during the execution of a search warrant were seized by the United States. In all, approximately $926,466.35 was seized as proceeds of the smuggling scheme. Lohr pleaded guilty and was sentenced to 21 months in federal prison. As part of his plea agreement he agreed to the forfeiture of the seized funds.
U.S. v. Edward & Kim Feldman,
Case No. 8:14-cr-521-T-27AEP
The United States seized approximately $700,000 in assets during the arrests and execution of various warrants associated with the drug trafficking investigation of Edward Feldman, a doctor who had illegally distributed prescription pain pills, resulting in the deaths of three of his patients. The Feldmans committed various financial transactions that involved money laundering and structuring violations. A federal jury found them guilty in February 2016. In May 2016, Edward Feldman was sentenced to 25 years in federal prison, his wife was sentenced to a term of four years. The Feldmans were ordered to forfeit their home, a Mercedes Benz, an Infinity EX35, approximately $489,000 seized from safe deposit boxes as well as bank and investment accounts, all of which were traceable to proceeds of the offenses. They were also ordered to forfeit jewelry, gold coins, and a 2011 Porsche 911 as substitute assets for criminal proceeds that they had spent. Lastly, the Feldmans were ordered to forfeit the building that housed Feldman Orthopedic and Wellness Center, as a property that facilitated their crimes.
Federal Jury Convicts Armed Career CriminalRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Raimundo Hogan (42, Jacksonville) guilty of being a felon in possession of a firearm. Hogan, who qualifies as an Armed Career Criminal, faces a mandatory minimum sentence of 15 years, up to life, in federal prison. His sentencing hearing will be scheduled for early next year.
According to testimony presented at trial, on February 26, 2016, Hogan was a passenger in a car that was stopped for a seatbelt violation. Hogan fled from the car while holding a Glock pistol in his right hand. A patrol officer with the Jacksonville Sheriff’s Office and a civilian both observed Hogan with the pistol, which he threw and was recovered at the scene. After a short pursuit, Hogan was apprehended.
According to court documents and Florida Department of Corrections records, Hogan has prior convictions for armed robbery, aggravated assault, carjacking and possession of a firearm by a convicted felon. As such, he is prohibited from possessing a firearm and ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Jason Mehta and Frank Talbot.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program – a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, 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.
Plant City Man Sentenced to Four Years in Prison for Selling Stolen Medical RecordsRead the Press Release
Tampa, FL –U.S. District Judge Charlene Edwards Honeywell today sentenced Vickie Lorenzo Bryant (39, Plant City) to four years in federal prison for access device fraud and aggravated identity theft. He pleaded guilty on August 23, 2016.
According to court documents, in May 2016, Bryant contacted a government confidential informant (CI) and offered to sell the CI approximately 1,000 individuals’ personally identifiable information (PII), including names, dates of birth, and social security numbers, for $15,000 or $15 per identity. Bryant had previously sold stolen PII to the CI and knew that the CI had used the information to manufacture counterfeit credit cards and fake Florida driver licenses. The CI had also purchased cellphones using the identity theft victims’ credit. On June 9, 2016, and again on June 16, 2016, Bryant met with the CI in Tampa and sold him 957 different victims’ PII contained in printed medical records.
A review of the PII sold by Bryant revealed that it consisted of over 1,000 pages of printed medical records that agents traced to Rotech Healthcare, a medical device company that provides respiratory and sleep apnea services across the United States. All of the identity theft victims confirmed that they had received equipment (such as sleep apnea breathing machines) and/or services from Rotech, which has a billing center in Lakeland.
Bryant’s coconspirators, Fontella James and Sharmekia Young, the Rotech employees who allegedly stole the PII from their employer, were separately indicted on September 29, 2016, and charged with conspiracy, computer intrusion, and identity theft crimes.
This case was investigated by the United States Secret Service and the Florida Department of Law Enforcement as part of the Secret Service’s Financial Investigations Strike Team. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Lake Mary Man Pleads Guilty to Investment FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Irwin Charles Ager (84, Lake Mary) has pleaded guilty to conspiracy to commit mail fraud and wire fraud. He faces a maximum penalty of 20 years in federal prison. Ager has agreed to pay more than $10.3 million in restitution to his victims. His sentencing hearing has been set for February 17, 2017.
According to court documents, Ager and his conspirators defrauded over 200 victims out of more than $10.3 million through investments offered in connection with a company called Tri-Med Corporation. Ager was one of the Marketing Directors for Tri-Med Associates, the “marketing arm” of Tri-Med. He was responsible for soliciting investors, as well as recruiting and managing many of the sales people who sold investments in Tri-Med.
The investment fraud scheme involved the alleged purchase of medical receivables by Tri-Med related to services provided to accident victims represented by personal injury attorneys. Payment of those medical receivables was supposed to be made from the proceeds of litigation or an insurance claim made against a general liability or automobile insurance policy. Each of the medical receivables was supposed to be secured by a “letter of protection,” provided by a patient’s personal injury attorney to a medical services professional as an incentive to provide services to a patient. A letter of protection is a contract involving a patient, the patient's attorney, and the medical services provider where the patient and attorney agree to pay all or part of the total billed by the medical services provider from the proceeds of any pre-suit settlement, lawsuit settlement, or judgment that the patient may obtain.
To fund Tri-Med’s alleged purchases of medical receivables, Ager and his conspirators solicited individuals to participate in an “investment program” where investors’ money would be used by Tri-Med to buy medical receivables “backed” by letters of protection. As part of their solicitations, Ager and his conspirators represented to investors that that their investments were safe and that investor funds would be held in a trust account that was controlled by an attorney. To assure investors that their investments were secure, Tri-Med claimed that it would transfer its interest in the letter of protection to the investor in a document called an “Assignment of Interest Certificate.”
Those representations were false. Of the more than $17 million raised from over 200 investors, only approximately $2.7 million was ever transferred from Tri-Med to the attorney’s trust account. The majority of the funds raised from investors never made it to that account. Over $6.5 million was paid to the sales people and the operators of Tri-Med or was used by them to benefit themselves or pay business expenses. Approximately $2.3 million was paid as distributions to investors to make them believe that their investments were profitable. In fact, Tri-Med did not purchase enough medical receivables to secure the incoming investments, so it fabricated “Assignment of Interest Certificates.”
Ager’s brother, Eric Leon Ager (78, Stuart) has also been charged with conspiracy. If convicted, he faces a maximum penalty of 20 years in federal prison. His trial is set for February 2017.
This case was investigated by the United States Secret Service and the State of Florida’s Office of Financial Regulation. It is being prosecuted by Assistant United States Attorneys Shawn P. Napier and Roger B. Handberg.
Developer Indicted for Embezzling from A Bankruptcy EstateRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Clark D. East (59, Sugarland, TX) with embezzlement from a bankruptcy estate. If convicted, he faces a maximum penalty of five years in federal prison.
According to the indictment, 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 through his company, 3700 Ulmerton Road, LLC. During the bankruptcy proceedings, East was ordered by the Court to sell the property and pay $1.2 million in sales proceeds to Stearns Bank. Rather than repaying Stearns Bank, East embezzled $828,854.66 of proceeds that were part of the bankruptcy estate and due to Stearns Bank.
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 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 will be prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay G. Trezevant.
Winter Haven Man Sentenced to Life Imprisonment for Assaulting Federal Officers and Drug OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazarra today sentenced Altius Willix (48, Winter Haven) to life in federal prison for conspiracy, attempted possession of methamphetamine, and assaulting federal officers. A federal jury found him guilty on August 4, 2016.
According to testimony presented at trial, Willix arranged for four pounds of pure methamphetamine to be mailed from Tempe, Arizona to Winter Haven, Florida. After Willix attempted to retrieve the parcel, three federal agents approached him. Willix fled and ultimately collided with one of the agents, causing him to fall to the ground. Willix continued to resist arrest, as agents attempted to detain him, resulting in their injury. During the struggle, Willix tried to remove holstered firearms from two of those agents. When told to let go, Willix responded, “You’re gonna have to kill me.” Willix was ultimately handcuffed and taken into custody.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Winter Haven Police Department. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
Windermere Man Sentenced to 25 Years for Receipt, Distribution, and Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Rodolfo Martinez Rodriguez (61, Windermere) to 25 years in federal prison for receipt, distribution, and possession of child pornography. The Court also imposed a life term of supervised release. He pleaded guilty on September 21, 2016.
According to the plea agreement, Rodriguez, acting under the user name “michael_modeling,” used Instagram to entice children into producing sexually explicit images and videos that he then distributed to other children. Rodriguez engaged in communications with girls as young as 9, while he portrayed himself to be either a male or female between the ages of 10 and 17. Rodriquez admitted that he had engaged in this conduct for a span of two years, and stated that he did not think that asking for and receiving child pornography from children over the Internet caused any harm to the children.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Settles False Claims Act Allegations Against Orthopedic Surgery Practice for $4,488,000Read the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces today that Southeast Orthopedic Specialists (SOS), a Jacksonville, Florida-based orthopedic medical group, has agreed to pay the government $4.488 million to resolve allegations that it violated the False Claims Act.
The United States contends that it has certain civil claims against SOS arising from SOS billing federal healthcare programs for services that were not medically necessary and reasonable. Specifically, the United States contends that SOS sought reimbursement for millions of dollars of healthcare claims that were questionable. The United States alleges that these questionable bills include:
1. SOS certified that it met certain standards related to the “meaningful use” of electronic health records when the practice had, in fact, not met those standards;
2. SOS knowingly billed for certain claims as “incident to” physician supervision when no physician was present or there was no verification of any physician being present;
3. SOS knowingly billed for certain claims using Modifier 25 signifying that a separate evaluation and management service was performed even when there was no such separate service;
4. SOS knowingly billed for certain claims using Modifier 59 signifying that two procedures, rather than one, were billable even when these procedures should have more appropriately been billed as one such procedure;
5. SOS knowingly scheduled patients’ follow-up operative visits from 12 weeks following surgery to 14 weeks in an effort to bill for a separate visit outside the normal Medicare 90 days Diagnosis-Related Group charge;
6. SOS knowingly used and billed for ultrasound-guided injections routinely even in the absence of medical necessity; and
7. SOS knowingly billed for certain physical therapy claims using Modifier KX so as to exceed the Medicare cap on physical therapy, despite the absence of medical necessity.
“The United States Attorney’s Office is committed to taking the steps necessary to protect Medicare and other federal health care programs from fraud,” said U.S. Attorney Bentley. “When health care practitioners submit fraudulent claims for reimbursement, we will hold them accountable.”
“The Department of Health and Human Services, Office of Inspector General will relentlessly seek out those who defraud the Medicare program,” said Special Agent in Charge Shimon Richmond. “Obtaining tax dollars which Medicare providers are not entitled to impacts our entire healthcare system and the OIG will hold health care providers accountable who misrepresent services to boost profits.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the U.S. Department of Health and Human Services. It was prosecuted by Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Tampa Sex Offender Sentenced to 20 Years in PrisonRead the Press Release
Tampa, Florida – Chief U.S. District Judge Steven D. Merryday has sentenced Windell Holton (68, Tampa) to 20 years in federal prison for attempted enticement of a minor to engage in sexual activity, and commission of the offense as a sex-offender. The Court ordered him to forfeit a cellphone and computer that he used commit the offense. Holton pleaded guilty on August 16, 2016.
According to court documents, Holton contacted an individual online who he believed to be a 13-year-old girl and asked her to engage in sexual intercourse with him. In reality, he was communicating with an undercover federal agent. Holton had previously been convicted of attempted sexual battery in Florida.
“Thanks to the tireless efforts of our HSI special agents, this sexual predator will now be behind bars where he cannot hurt another child,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI will continue to use our unique investigative techniques to ensure criminals like this are held accountable for their actions.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Jury Convicts Englewood Man for Possessing A Firearm as A FelonRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Ernest L. Chambliss (45, Englewood) guilty of possessing a firearm as a convicted felon. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison. His sentencing hearing is scheduled for March 17, 2017.
Chambliss was indicted on November 19, 2015.
According to testimony presented at trial, on April 16, 2015, Chambliss sold a firearm to a confidential informant. As a previously convicted felon, he was prohibited from possessing a firearm or ammunition under federal law. His prior criminal record also qualifies him for enhanced sentencing as an Armed Career Criminal under federal law.
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. United States Attorney A. Lee Bentley, III, 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.
New Port Richey Pair Indicted on Money Laundering ConspiracyRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging David Owen (39) and Andrew Corrigan (23), both of New Port Richey, with one count of money laundering conspiracy. If convicted, each faces a maximum penalty of 20 years in federal prison. The indictment also notifies the defendants that the United States is seeking a money judgment in the amount of at least $547,149, the proceeds of the conspiracy.
According to the indictment, Owen and Corrigan used individuals (straw account owners) to open bank accounts into which their victims deposited money. The money was extorted from victims by impersonators falsely representing that the victims owed federal income tax to the Internal Revenue Service (IRS), the Canadian tax authorities, or for other financial obligations. The conspirators told victims that if they failed to pay these obligations, they or their family members would face arrest, prosecution, or other legal consequences.
Provided with online access to accounts, the conspirators monitored the victims’ deposits in order to ensure timely withdrawals by the straw account owners. In order to make the withdrawals at the bank, the conspirators provided the straw-account owners with the victims’ names, locations, and amounts of the deposits. The defendants then directed the straw-account owners to withdraw the funds in cash and turn it over to them, often minus a payment to the straw-account owner for opening the account or conducting the transaction.
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 was investigated by the Internal Revenue Service – Criminal Investigation, Treasury Inspector General for Tax Administration, the Federal Bureau of Investigations, United States Postal Inspection Service, the Pinellas County Sheriff’s Office, the Pasco County Sheriff’s Office, the Largo Police Department, the Gulfport Police Department, and the Royal Canadian Mounted Police. It will be prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Metro PCS Armed Robber Sentenced to 32 Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan sentenced Christopher McCain (27, Anniston, AL) yesterday to 32 years in federal prison for two counts of robbery and brandishing a firearm in furtherance of a crime of violence. He pleaded guilty on July 3, 2014.
According to court documents, McCain robbed three different Metro PCS stores during January 2012. He carried a loaded .45 caliber pistol during each of the robberies and took a total of $2,211 from the stores. McCain was arrested on January 28, 2012, after a Metro PCS store employee was able to get the tag number of McCain’s getaway car. McCain was still in possession of his loaded .45 caliber pistol when officers from the Jacksonville Sheriff’s Office arrested him.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Talbot.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, 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.
Married Couple Sentenced to More Than Six Years in Federal Prison for Tax Fraud and Identity TheftRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington today sentenced Jessieca Omowele (30, Tampa) and her husband, Kevin B. Jones (31, Tampa) to six years and three months in federal prison for theft of government property and aggravated identity theft stemming from their involvement in a stolen identity tax fraud (SIRF) conspiracy. The Court also ordered them to pay restitution to the Internal Revenue Service in the amount of $1,586,245.39, which are the proceeds traceable to the conspiracy.
Both Omowele and Jones pleaded guilty on September 7, 2016.
According to court documents, from at least 2011, through and including 2015, Omowele and Jones, together and with others, agreed and conspired to electronically file fraudulent federal income tax returns using the personal identifiable information (PII) of unknowing identity theft victims, some of whom were deceased, in order to obtain tax refunds to which they were not entitled. Many, if not all, of these returns were electronically filed from the defendants’ residence, with the refunds directed to be deposited onto debit cards in the conspirators’ names and/or sent to addresses associated with the conspirators. Omowele and Jones then used the debit cards at retail stores, ATMs, and to make online purchases. Records show that they also used their victims’ information to obtain utility service at their home and to apply for student loans, all without their victims’ knowledge or consent.
To date, the IRS has determined that the conspirators filed and caused to be filed false and fraudulent federal income tax returns using stolen PII from over 1,500 individuals, claiming refunds totaling $9,424,989.41. As a result of the scheme, the conspirators received $1,586,245.39 in proceeds.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Career Criminal Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Derrick Bernard Farmer (41, Tampa) to 15 years in federal prison for possessing with the intent to distribute crack cocaine and possessing a firearm as a convicted felon. He pleaded guilty on July 6, 2016.
According to court documents, during January 2016, Farmer served as the crack cocaine source for two individuals who then sold the drugs to an undercover detective. On February 3, 2016, law enforcement officers executed a search warrant at Farmer’s apartment in Tampa and found crack cocaine, drug paraphernalia, and three firearms. Farmer had multiple prior felony drug convictions and therefore was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also part of the PSN Comprehensive Anti-Gang Initiative (CAGI). CAGI’s objective is to reduce criminal gangs, violent crime, and illegal drugs and guns through swift, thorough enforcement and prosecution, along with prevention and re-entry efforts.
Winter Haven Man Sentenced to Seven Years for Stealing Tax Refunds and Personal Identity InformationRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Daniel White to seven years in federal prison for his role in a stolen identity refund fraud scheme. As part of his sentence, the Court also entered a money judgment in the amount of $320,703.84, which are the losses to the United States Treasury.
White was found guilty in August 2012, but before he could be sentenced, he absconded. In July 2016, law enforcement officers located White in Polk County, where he was found hiding in an air conditioning return duct at a home. He was arrested without incident.
According to court documents, from May 2011 until October 2011, White used stolen personal identity information (“PII”) from at least 39 victims to prepare and file tax returns without their knowledge or consent. At least 24 of those victims were deceased when White made these fraudulent submissions. White then directed the Internal Revenue Service to electronically deposit the fraudulent refunds into a bank account that he controlled. The total intended losses in this case were approximately $737,588.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Kristen A. Fiore and Amanda Kaiser.
Winter Haven Man Sentenced for Making False Statements in Mortgage LoanRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Stevie McDonald (42, Winter Haven) to 15 months in federal prison for bank fraud related to his role in a mortgage fraud conspiracy. As part of his sentence, the Court ordered him to pay restitution to J.P. Morgan Chase Bank in the amount of $74,868.
According to court records, on November 10, 2007, McDonald entered into a contract to purchase a home in Port Richey. He then applied for a mortgage loan from Washington Mutual Bank. In the loan documents that he signed and submitted to the bank, McDonald made false statements about his income and employment. In December 2007, during the course of closing on the property purchase, Washington Mutual paid more than $35,000 to a woman McDonald knew and later married. This payment was purportedly a satisfaction of an existing lien on the sale property. Subsequent investigation revealed that no such lien existed. Washington Mutual Bank suffered a financial loss as a consequence of McDonald’s default on the loan.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Tampa Man Pleads Guilty to Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Walter M. Fambro has pleaded guilty to theft of government funds and possession of unauthorized access devices. He faces a maximum penalty of 10 years in federal prison for each count. A sentencing date has not yet been set.
According to the facts at the plea hearing, between June 2011 and September 2013, Fambro was involved in a scheme to file false and fraudulent income tax returns with the Internal Revenue Service in order to generate large refunds deposited onto debit cards. When law-enforcement officers arrested Fambro on September 1, 2013, he had 29 debit cards in the names of different individuals in his possession, along with a laptop computer, ledger sheets, and hospital patient records containing the personal identifying information of numerous individuals. The investigation revealed that the IRS had received fraudulent tax returns in the names of many of those individuals which resulted in the delivery of fraudulent income tax refunds, totaling approximately $326,133.00, to debit cards that Fambro used or controlled.
This case was investigated by the Internal Revenue Service - Criminal Investigation, with the assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
St. Petersburg Man Pleads Guilty to Firearm OffenseRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Charles Parker Harrington, III (27, St. Petersburg) today pleaded guilty to possessing a firearm and ammunition as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
Harrington was indicted on October 19, 2016.
According to court documents, on August 3, 2016, an officer with the St. Petersburg Police Department initiated a traffic stop on a vehicle in which Harrington was a passenger. Further investigation revealed an outstanding warrant for Harrington’s arrest. The officer detained Harrington, searched him, and found a loaded .380 caliber pistol in his pocket. At the time, Harrington was a convicted felon and therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, 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 Bay Man Sentenced to Federal Prison for Tax EvasionRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Steven Headden Young (55, St. Petersburg) to 21 months in federal prison for tax evasion. He was also ordered to make restitution to the Internal Revenue Service in the amount of $509,455, and to file his corrected tax returns for tax years 2007 through 2011.
According to court documents, Young evaded a substantial portion of his personal federal income taxes for the years 2007 through 2011 by falsifying expenses to negate his income. Young, who prepared and filed his own tax returns, created bogus business expenditures and deducted them from his Schedule C income. He provided the IRS with a false lease agreement and false invoices between his real estate company and a sham corporation, purportedly based in the Dominican Republic.
Young also falsely filed as head-of-household (HOH) to take advantage of the tax benefits of the HOH filing status when he was indeed married. HOH provides for less taxes and higher credits than when filing as single, married and filing jointly, or married and filing separately. Young made false statements to the IRS about his marital status, claiming he was single, when he was married and living with his wife.
Young also interfered with the IRS audit and tax assessment of his personal federal income taxes by attempting to intercept third-party records that had been subpoenaed by the IRS from Bank of America (BOA). Young fabricated a letter from the IRS to BOA in an attempt to redirect bank records that had been intended for the IRS to another address, which had been opened by Young in the name of an IRS employee.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Treasury Inspector General for Tax Administration. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Two Orlando Residents Sentenced to Federal Prison for Possession of Stolen Guns from A Federally Licensed Firearms DealerRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Kimberly Carnell White, Jr. (28, Orlando) and James Romando Harris, II (28, Orlando) to 72 months and 84 months in prison, respectively, for possession of firearms by convicted felons. Both White and Harris pleaded guilty on August 24, 2016.
According to court documents, a federally licensed firearms dealer in Marion County was burglarized during the morning of May 5, 2016. Later that day, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) received information that White had several firearms to sell from a location he claimed to have “hit.” That same day, undercover agents from the Orange County Sheriff’s Office (OCSO) purchased five firearms from White and Harris. The serial numbers of those firearms matched those of the firearms that had been stolen from the licensed dealer. Both White and Harris have prior felony convictions and are therefore prohibited from possessing firearms or ammunition under federal law.
On May 13, 2016, the OCSO, the ATF, and the Orlando Police Department executed federal search warrants at the Orlando residences where the undercover transactions had been conducted, and where other firearms had been seen. During the execution of those warrants, law enforcement recovered seven firearms from one residence and four firearms from the other residence. Of those 4 firearms, four had serial numbers matching those of the firearms reported stolen from the federally licensed dealer. In total, investigators seized 16 firearms, including 9 that had been reported stolen from the firearms dealer.
These arrests were the result of a multi-agency investigation focused on the recovery of the firearms. This case was investigated by the Orange County Sheriff’s Office, the Orlando Police Department, the Marion County Sheriff’s Office, the Belleview Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program – a nationwide, gun-violence reduction strategy. Unites States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Illegal Alien Sentenced to More Than Fifteen Years for Possession with Intent to Distribute HeroinRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Fredy Herney Nieto-Marin (37, Revere, Massachusetts) to 15 years and 8 months in federal prison for possession with intent to distribute heroin. Because Nieto-Marin (a Columbian citizen) is an illegal alien, he is subject to deportation after serving his prison term. Nieto-Marin pleaded guilty on January 19, 2016.
According to court documents, Nieto-Marin met with a confidential source (CS) working for the Drug Enforcement Administration regarding potential drug deals. Nieto-Marin met with the CS on Nieto-Marin’s way back to Massachusetts, after dropping off $45,000 for a prior drug deal. During the meeting with the CS, Nieto-Marin told the CS about a large amount of heroin that was hidden inside Nieto-Marin’s car. A police canine subsequently located approximately 453 grams of heroin that had been concealed inside a hidden compartment in Nieto-Marin’s car.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.
El Salvadoran Man Who Fled from Law Enforcement Officers Charged with Illegal Reentry After DeportationRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Francisco Obidio Portillo-Fuentes (26, El Salvador) with illegally reentering the United States after having been deported. If convicted, he faces a maximum penalty of two years in federal prison. Portillo-Fuentes made his initial appearance in federal court today, in Jacksonville, and was ordered temporarily detained. A formal detention hearing is set for November 28, 2016, at 2:00 p.m.
According to the
criminal complaint , Portillo-Fuentes was a passenger in a pick-up truck parked at a Gate gas station in Yulee, Florida on November 22, 2016, when the truck was approached by a uniformed Border Patrol agent. The driver of the pick-up truck was engaged in a conversation with the Border Patrol agent when Portillo-Fuentes exited the truck and fled on foot. Two Nassau County Sheriff’s Office deputies, who were in the area for an unrelated call, gave chase. An extensive search for Portillo-Fuentes was conducted throughout the day on November 22, 2016, and Portillo-Fuentes was located and arrested by the U.S. Marshals and Jacksonville Sheriff’s Office deputies that evening.After being arrested, Portillo-Fuentes told Border Patrol agents that he had been born in El Salvador and had last entered the United States on or about November 19, 2016, by wading across the Rio Grande river near Laredo, Texas. Computer database checks confirmed that Portillo-Fuentes had been previously deported from the United States on two separate occasions, in 2011 and 2016.
A criminal complaint 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 was investigated by U.S. Border Patrol, with assistance from the U.S. Marshals Service, the Nassau County Sheriff’s Office, the Jacksonville Sheriff’s Office, the Florida Highway Patrol, and U.S. Customs and Border Protection - Field Operations. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Merritt Island Man Sentenced to 350 Years for Multiple Federal Child Pornography OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Joshua Adam Tatro (24, Merritt Island) to 350 years in federal prison for nine counts of producing child pornography, three counts of receiving child pornography, and one count of possessing child pornography. The Court also ordered him to forfeit the electronic devices that he used during the commission of the offenses.
Tatro was found guilty after a bench trial on July 6, 2016.
According to testimony and evidence presented at trial, on nine separate occasions, between October 2014 and March 2015, Tatro produced images and videos depicting him sexually abusing a three-year-old child. He also used a messaging app on his phone to send and receive images depicting child pornography and uploaded images of child pornography onto an online account that he maintained. Law enforcement began investigating Tatro after they learned of his online activity from the National Center for Missing and Exploited Children.
On March 17, 2015, agents from the Brevard County Sheriff’s Office executed a search warrant at Tatro’s residence, where he and the child victim were living. During the execution of the warrant, cell phones were recovered from Tatro’s pocket and his bedroom. A forensic examination of those phones led to the recovery of the explicit images and videos that Tatro had produced. During an interview with agents, Tatro admitted to producing the images and videos, and to sending them to others using the messenger app.
In total, Tatro possessed 76 videos and 692 photographs of child pornography on his cell phones. A search of his online drive account revealed more than 1,000 stored images of child pornography. Several of the images in Tatro’s possession depicted children under the age of 12 being sexually abused and exploited.
“This predator will spend the rest of his life behind bars, where he can no longer harm children,” said Susan L. McCormick, special agent in charge of HSI Tampa. “The dedicated work of HSI special agents and our Brevard County Sheriff’s Office partners have made our communities a safer place.”
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
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 Man Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Cedric Clark to eight years and six months in federal prison for his role in a stolen identity refund fraud scheme in the Tampa Bay area. As part of his sentence, the Court ordered him to pay restitution to the Internal Revenue Service in the amount of $1,933.862.37. Clark pleaded guilty on June 21, 2016.
According to court documents, between October 2010 and June 2013, Clark engaged in a fraud scheme involving the filing of false and fraudulent income tax returns in the names of living and deceased individuals. Clark and his co-conspirators received approximately $1.9 million in tax refund checks from the IRS. They had filed returns requesting refunds of almost $6 million.
This case was investigated by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Palm Harbor Oncologist Convicted of Buying Unapproved Cancer Medications from Foreign Sources and Defrauding MedicareRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found D. Anda Norbergs (61, Palm Harbor) guilty of 17 counts of receipt and delivery of misbranded drugs, 12 counts of smuggling goods into the United States, 11 counts of health care fraud, and 5 counts of mail fraud. She faces a maximum penalty of 20 years in federal prison for each mail fraud and smuggling offense, 10 years’ imprisonment for each health care fraud count, and 3 years for each count of receipt and delivery of misbranded drugs. Her sentencing hearing is scheduled for February 16, 2017.
Norbergs was originally indicted on May 28, 2015. A second superseding indictment was returned on July 21, 2016.
According to testimony and evidence presented at trial, Norbergs, a licensed physician in Florida, was the head doctor, owner, and operator of East Lake Oncology (“ELO”), a cancer treatment clinic located in Palm Harbor. Beginning in at least May 2009, she ordered, and directed others at ELO to order, drugs from foreign, unlicensed distributors, including Quality Specialty Products (“QSP”). The drugs sold to ELO by QSP and other foreign, unlicensed distributors were not FDA-approved. In fact, QSP had reportedly sold counterfeit versions of a chemotherapy medication that did not have the key ingredient in the drug. Norbergs learned of this news from other sources yet continued to have QSP drugs administered to patients. When QSP shut down, Norbergs switched to buying drugs from another foreign, unlicensed distributor. Many of the drugs were shipped directly to ELO from a location outside the United States, usually from the United Kingdom. The packaging and documents shipped with the drugs showed that they were manufactured and packaged for distribution in foreign countries, such as Turkey, India, and Germany. Additionally, some of the packaging for the drugs was in foreign languages, without any English translation.
Unbeknownst to patients, these misbranded drugs were then administered at ELO. After administering these drugs to patients, ELO submitted claims for reimbursement to Medicare. In submitting those claims, Norbergs falsely represented that the FDA-approved versions of the drugs had been administered, when she knew that unapproved and misbranded versions had been given to patients. In so doing, Norbergs intended to generate profits from the difference between the Medicare reimbursement rates for the FDA-approved drugs and the discounted prices of the misbranded versions of those drugs purchased from foreign distributors.
This case was investigated by U.S. Department of Health and Human Services – Office of Inspector General and the U.S. Food and Drug Administration. It is being prosecuted by Assistant United States Attorneys Adam M. Saltzman and Jay Trezevant.
Jacksonville Man Pleads Guilty to Soliciting and Paying for Live Molestation of Children over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Justin Laurence McKinley (49, Jacksonville) has pleaded guilty to sending notices over the Internet soliciting the live molestation of children for online viewing. He faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison and a potential life term of supervision.
According to court documents, in 2015, the FBI began an investigation into a website engaging in the exploitation and enticement of children to participate in sexual activity. The FBI identified several individuals located in the United States that were associated with this website. Further investigation revealed that several individuals in a foreign country were engaged in the molestation of young children for the purpose of broadcasting live streaming “sex shows” to online viewers who had paid a fee. The individuals were arrested and McKinley was identified as one of the individuals who paid to view these live streaming “sex shows.” Between January 2014 and December 2015, McKinley sent a total of 100 electronic fund transfers, totaling $31,415, to the individuals who molested the children in the “sex shows.”
On May 27, 2016, law enforcement officers executed a federal search warrant at McKinley’s residence. During an interview, McKinley admitted that he had solicited others to molest children and live stream video of the conduct to him, and he further admitted that he had recorded many of the sessions. The victims depicted in the streaming videos ranged in age from a newborn to an 8-year-old child. Forensic analyses of McKinley’s computer media revealed that a particular external hard drive contained at least 613 videos and 6,846 images depicting the sexual abuse of children.
This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sheriff’s Office, and law enforcement authorities in several other countries. 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.
Lemon Bay Drugs North and Brooksville Drugs Agree to Pay $750,000 to Resolve False Claims Act AllegationsRead the Press Release
Fort Myers, FL – United States Attorney A. Lee Bentley, III announces that Lemon Bay Drugs North, Inc. and Brooksville Drugs, Inc. have agreed to pay a total of $750,000 to the government to resolve allegations that the pharmacies violated the False Claims Act by causing claims to be submitted to federal health care programs for prescription drugs that were never dispensed.
Lemon Bay Drugs is a pharmacy operating in North Port, Florida and Brooksville Drugs is a pharmacy operating in Brooksville, Florida. Both pharmacies are managed by Benzer Pharmacy Holding LLC and are owned by Alpesh Patel.
The settlement announced today resolves allegations that Lemon Bay Drugs and Brooksville Drugs provided Medicare and Medicaid patients generic versions of certain medications, but charged Medicare and Medicaid for the brand name versions of those medications. The settlement covers allegations that the pharmacies knowingly submitted false claims by billing the government programs for certain drugs they could not have dispensed because they did not have sufficient inventory of those drugs.
The allegations against the pharmacies were originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower, a former pharmacy technician who worked at Lemon Bay Drugs, will receive $142,500 as her share of the recovery.
“The United States Attorney’s Office is committed to protecting Medicare and other federal health care programs from fraud,” said U.S. Attorney Bentley. “Those who violate the False Claims Act to generate profit will be held accountable.”
This investigation was handled by Assistant U.S. Attorney Kyle S. Cohen with assistance from the Department of Health and Human Services - Office of Inspector General, the Defense Criminal Investigative Service, the FBI, the Florida Medicaid Fraud Control Unit, the North Port Police Department, and the Sarasota County Sheriff's Office.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The lawsuit is captioned United States ex. rel. Vicmary Aguilar-Morales v. Lemon Bay Drugs North, Case No. 2:12-cv-536-FtM-29SPC.
Federal Jury Convicts Last Two of Eight Individuals in Money Laundering SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Erick Estrada-Lopez (41, Jacksonville) and Michael Rounsville (48, Callahan) guilty of crimes arising out of a money laundering scheme. Estrada-Lopez was convicted of conspiracy to commit money laundering and faces a maximum penalty of 20 years in federal prison. Rounsville, an officer with the Jacksonville Sheriff’s Office, was convicted of accessing a law enforcement database without authorization for financial gain and in furtherance of the money laundering scheme. He faces a maximum penalty of 5 years’ imprisonment. The sentencing hearings have been scheduled for February 27, 2017.
According to evidence presented at trial, Estrada accepted $42,000 in cash from co-defendant Manuel Rodriguez (33, Middleburg), which was part of $200,000 that Rodriguez had agreed to launder for an undercover agent who was posing as a drug dealer. Estrada deposited the cash in his business bank account and obtained a $42,000 cashier’s check that Rodriguez deposited into his bank account the same day. The next day, Rodriguez wired the $42,000, along with an additional $25,000, into the undercover agent’s covert bank account to complete the laundering of the cash.
At the request of his co-conspirators, Rounsville ran the covert name of the undercover agent through the FBI’s National Crime Information Center (“NCIC”) database and the Florida’s Driver and Vehicle Information Database (“DAVID”), both of which are accessible to law enforcement only. Rounsville then reported the results of those searches to the conspirators. Rodriguez testified at trial that, at the request of another co-defendant, he had delivered an envelope containing an unknown amount of cash to Rounsville while he was engaged in off-duty work at a road construction site in Jacksonville.
"This is an important victory for the American public,” said Kim Lappin, IRS Criminal Investigation, Special Agent in Charge of the Tampa Field Office. “Rooting out public corruption remains one of IRS-CI’s highest priorities and this verdict underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who have violated the public’s trust. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to disrupt and dismantle criminal organizations and bring criminals to justice."
Hedar Khlaf (34, Jacksonville), Mollie Bass (32, Jacksonville), Diane Harrison (58, Jacksonville), Christian Magliano (27, Miami), Bruce Childs (47, Jacksonville), and Rodriguez previously pleaded guilty for their roles in the money laundering scheme. Their sentencing hearings have not yet been scheduled.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and the Nevada Highway Patrol. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Tampa Attorney Sentenced to Prison for Hiding Drug ProceedsRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Joe Manuel Gonzalez (66, Tampa) to 10 months in federal prison, followed by three years of supervised release, for structuring financial transactions to avoid currency reporting requirements. The Court also ordered him to pay a $15,000 fine. Gonzalez pleaded guilty on August 24, 2016.
According to court documents, Gonzalez, an attorney with his own law practice in Tampa specializing in financial and tax matters, established a fictitious trust and bank account for a confidential source (CS) and undercover DEA agent. The CS and the undercover agent posed as brothers seeking to launder proceeds from their marijuana grow house operations. The “brothers” told Gonzalez that they made approximately $30,000-$50,000 per month from their marijuana operation and needed somewhere safe to put their money. Gonzalez advised the “brothers” how to set up and make deposits into bank accounts to avoid detection by law enforcement. Gonzalez established a bank account for the “brothers” in the name of a fictitious trust and made the initial deposits into the bank account with what Gonzalez understood to be proceeds from the marijuana business. On two occasions, Gonzalez structured the cash provided to him by the undercover agent, breaking up the bank deposit into separate transactions to avoid the currency reporting requirements.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Last of 17 Defendants Sentenced in Web-Based Steroid Trafficking OperationRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced Robert Gonzalez (41, Orlando) to 18 months in federal prison for conspiracy to manufacture, distribute, and possess with the intent to distribute anabolic steroids, and for violating his supervised release on a previous federal conviction. Gonzalez, who was found guilty by a federal jury on August 19, 2016, was the last of 17 defendants to be sentenced for his role in the operation of an Internet-based anabolic steroid trafficking ring that operated out of Central Florida.
According to court documents, the steroid drug trafficking conspiracy operated from 2012 to 2014. Its members were responsible for shipping illegal steroids throughout the United States and internationally. The members of the conspiracy played various roles in the operation of the Internet-based, steroid trafficking operation - some as organizers, others as manufacturers and shippers, some who sent money to China for the purchase of raw steroids, and some who picked up the proceeds of the steroid sales. The group sold all types of illegal steroids, including oral capsules and oil-based injectable steroids. The orders were made through web sites maintained in foreign countries, and the steroids were processed and sent to customers from Central Florida via United States Mail.
In October 2016, David Arroyo, the leader of the steroid trafficking ring, was sentenced to five years in federal prison. Fifteen others previously pleaded guilty and have been sentenced for their roles in this case. One other, Steven Groden, was also found guilty by a federal jury.
This case was investigated by the United States Postal Inspection Service and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
The following individuals were previously convicted and sentenced for their respective roles in the conspiracy:
Vincent Sperti, 37, Lake Mary
John Walker, 42, Lake Mary
Jeffrey Berrios, 44, Lake Mary
Hunter Rawls, 37, Heathrow
Jeffrey Walker, 23, Lake Mary
Jason Bergstresser, 27, Longwood
Christopher Eaddy, 44, Winter Springs
Allison Eaddy, 33, Winter Springs
John Erber, 42, Lake Mary
Brea Tato, 41, Lake Mary
Guillermo Otero, 32, Deltona
David Centeno, 30, Sanford
Melissa Sperti, 34, Lake Mary
Eric Boccard, 42, Mount Dora
Bradenton Man Convicted of Possessing Firearm, Ammunition, and HeroinRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Brandon Williams (31, Bradenton) guilty of possessing a firearm and ammunition as a convicted felon and possessing heroin with the intent to distribute it. He faces a maximum penalty of 10 years in federal prison for the firearm count and up to 20 years in federal prison for the heroin count. His sentencing is scheduled for February 17, 2017. Williams was indicted on July 28, 2015.
According to evidence presented at trial, on June 13, 2015, Williams possessed a loaded .40 caliber firearm and approximately 2 grams of heroin. He attempted to dispose of both as law enforcement authorities arrived at the scene. As a previously convicted felon, Williams was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Kaitlin R. O’Donnell and Carlton C. Gammons.
Two Arrested for Committing $295,000 Armed Bank RobberyRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Ricardo Rodriguez, Jr. (24) and Brandon Mojica (23), both of Deltona, with armed bank robbery. If convicted, each faces a maximum penalty of 25 years in federal prison.
According to the
complaint , on the morning of November 8, 2016, Rodriguez displayed a firearm and forced two bank employees, including Mojica, to provide access to the safe of a bank in Lake Mary, Florida. Rodriguez took approximately $295,000 from the safe and physically restrained both employees before fleeing the bank. Responding officers from the Lake Mary Police Department quickly located, pursued, and apprehended Rodriguez. They also recovered the cash that Rodriguez had stolen from the bank and the firearm used during the robbery. Further investigation revealed that Mojica had assisted Rodriguez in planning the robbery by providing information concerning the bank and its employees in advance.Rodriguez and Mojica made their initial appearances in federal court yesterday. Following a detention hearing, Rodriguez was ordered detained pending further proceedings. Mojica was ordered temporarily detained until his formal detention hearing, which has been scheduled for November 17, 2016.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Lake Mary Police Department and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Emily C.L. Chang.
Tampa Man Sentenced to More Than Six Years for Credit Card Fraud and Identity TheftRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Alberto Yuniel Garcia (31, Tampa) to six years and two months in federal prison for engaging in the manufacture and use of counterfeit credit cards and identity theft. He pleaded guilty on July 7, 2016.
According to court documents, from as early as 2013, and continuing through 2015, Garcia and others possessed and used counterfeit credit cards to purchase items, including gift cards, at retail stores throughout the Tampa Bay area. They obtained stolen credit and debit card numbers from unsuspecting account holders in a variety of ways, including from skimmers placed on gas station pumps. They then re-encoded gift cards with the stolen account numbers in order to create counterfeit credit cards, which they used to purchase merchandise and gift cards that they used for their own benefit or sold for cash. Garcia and those working with him used the stolen account numbers without the account holders’ knowledge or permission and shared in the proceeds of the fraud and identity theft.
On February 19, 2014, law enforcement officers removed four skimmers from gas pumps at a Hess Station in Brooksville. Members of the U.S. Secret Service’s Financial Investigation Strike Team determined that the Hess Station was a common point of compromise for credit card fraud victims. Once investigators obtained store surveillance videos and receipts for the fraudulent transactions, they discovered that Garcia and his co-conspirators were the individuals using the counterfeit credit cards that had been re-encoded with the stolen account information skimmed from customers at the Hess Station.
During yesterday’s sentencing hearing, the Court found that Garcia was involved in various conspiracies to commit credit card fraud and identity theft that affected more than 35 financial institutions and over 1,000 victims. The government estimates the actual loss to individuals as a result of these conspiracies was over $700,000.
This case was investigated by the Tampa Police Department, the United States Secret Service, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Eric Gerard.
Orlando Man Sentenced to 20 Years in Prison for Producing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Luis Serrano (24, Orlando) to 20 years in federal prison, followed by 15 years of supervised release, for producing child pornography. The Court also ordered him to register as a sex offender upon his release. Serrano pleaded guilty on August 8, 2016.
According to court documents, Serrano enticed and persuaded a minor victim to engage in sexual activity for the purpose of producing visual depictions of the conduct beginning when the child was 14 years old. Serrano initially befriended the girl on a chat website when she was 13 and, during the next two years, he persuaded and directed her to engage in sexual activity during live video chats that he recorded. He also persuaded the child to record herself engaging in sex acts and to send the images to him over the Internet. When the victim was 16 years old, Serrano convinced her to meet him in person to engage in sex acts, and he took explicit photographs of the conduct. Serrano distributed the pornographic images of the victim to as many as 10 individuals.
On March 4, 2016, federal agents executed a search warrant at Serrano’s home and located the images of the victim on Serrano’s electronic devices. Agents also located 340 images and 175 videos depicting the sexual abuse and exploitation of other minors, many of which depicted the sexual abuse of infants and toddlers. Serrano told agents that he had obtained and shared these illicit images with others on the Internet through a file-sharing program.
“The most important thing a society can protect is our children,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI special agents utilized all of our investigative techniques and authorities to save a young child from further victimization and now this predator will be behind bars unable to harm other children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Special Assistant United States Attorney Christina R. Downes and Assistant United States Attorney Karen L. Gable.
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 (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.
Lakeland Couple Convicted of Large Scale Immigration FraudRead the Press Release
Tampa, Florida– United States Attorney A. Lee Bentley, III announces that a federal jury has found Domenico (68) and Rosa Cingari (67) guilty of conspiracy, mail fraud, and making false statements in immigration applications and petitions. They each face up to 5 years in federal prison on the conspiracy count and up to 20 years in federal prison on each of the 6 mail fraud counts. Domenico Cingari was convicted of two counts of making false statements in immigration applications and his wife was convicted of four counts, each of which carries a maximum penalty of 10 years in federal prison. Their sentencing hearing is scheduled for February 2, 2016.
The couple was indicted on July 9, 2015.
According to evidence presented at trial, Rosa and Domenico Cingari owned and operated R.E.P.C. Accounting and Translations out of their residence in Lakeland. The Cingaris assisted illegal aliens in obtaining Florida driver’s licenses by filing fraudulent immigration documents. Specifically, they would file I-589 (Applications for Asylum and Withholding of Removal), I-130 (Petitions for Alien Relative), and I-765 (Work Authorization) forms. Most of these applications and petitions submitted to United States Citizenship and Immigration Services by the Cingaris contained materially false information. The Cingaris charged their clients between $500 and $1,300 for the fraudulent immigration applications.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Citizenship and Immigration Services. It is being prosecuted by Assistant United States Attorneys Stacie B. Harris and Simon Gaugush.
Fernandina Beach Man Pleads Guilty to Hoax Bomb ThreatsRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that David Anthony Moody (28, Fernandina Beach) has pleaded guilty to making hoax bomb threats. He faces a maximum penalty of five years in federal prison. Moody was arraigned on February 16, 2016.
According to court documents, between January 30 and February 2, 2016, Moody wrote six bomb threat notes and left them at various public places in Fernandina Beach. Each note stated that a bomb was going to explode in the downtown Fernandina Beach area, killing a multitude of people. One of the notes was signed “The F.B. BOMBER!” In an effort to hide his identity, Moody wore gloves when preparing the notes and later destroyed materials associated with the six bomb threats. Although ultimately determined to be hoax threats, each time a bomb threat note was located, local, state, or federal law enforcement officers responded and conducted a search of the area for explosive devices.
This case was investigated by the Fernandina Beach Police Department, the Nassau County Sheriff’s Office, the U.S. Coast Guard Investigative Services - Coast Guard Explosive Detection Team, the Federal Bureau of Investigation Joint Terrorism Task Force, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations – Jacksonville Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Female Sex Trafficker Sentenced to 15 Years for Trafficking MinorsRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Alysia N. Algere a/k/a “Coco” (29, Tampa) to 15 years in federal prison for sex trafficking three minors. She pleaded guilty on February 3, 2016.
According to court documents, Algere recruited two minor boys and a minor girl, who were between 14 and 16 years of age, to engage in commercial sex acts. She took sexually explicit photos of the minors and posted advertisements on the Internet, selling them for sex.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
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.
Two Florida Men Sentenced to over Ten Years in Prison for Multi-State Biodiesel Fraud SchemeRead the Press Release
Fort Myers, FL — Yesterday, Thomas Davanzo, of Estero, Florida, and Robert Fedyna, of Naples, Florida, were sentenced to 121 months and 135 months in prison, respectively, for their participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits, announced Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney A. Lee Bentley III of the Middle District of Florida. Both defendants were also ordered to forfeit ill-gotten gains from the conspiracy of over $46 million and other items to the government, including gold coins, jewelry and Rolex watches, thoroughbred horses, vehicles and properties.
Davanzo and Fedyna operated several shell companies that were used to facilitate the scheme. As part of the scheme, Davanzo and Fedyna operated entities that purported to purchase renewable fuel, on which credits had been claimed and which was ineligible for additional credits, produced by their co-conspirators at Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia. They then used a series of false transactions to transform the fuel back into feedstock needed for the production of renewable fuel, and sold it back to Gen-X or SRC, allowing credits to be claimed again. This cycle was repeated multiple times.
“In their pursuit of personal gain, the defendants perpetrated a multi-state conspiracy that defrauded and undermined a federal program intended to further the energy independence of our nation,” said Assistant Attorney General Cruden. “Today’s sentence is a just punishment for these serious crimes against the American people.”
“We are proud to work with our federal law enforcement partners to identify and investigate individuals that manipulate and utilize federal government programs to line their pockets by fraud,” said Kim Lappin, IRS Criminal Investigation, Special Agent in Charge of the Tampa Field Office. “Today’s sentencings mark the successful result of an investigation that uncovered a complicated fraudulent scheme that generated tens of millions of dollars through false biodiesel tax credits. IRS-Criminal Investigation will continue to work with the United States Attorney’s Office to prosecute all those involved.”
In addition, both Davanzo and Fedyna laundered the proceeds of the scheme through various shell entities. Davanzo and Fedyna established bank accounts in the names of shell entities. Funds were cycled through these shell companies’ bank accounts to perpetuate the fraud scheme and conceal its proceeds.
Davanzo and Fedyna also directed and participated in the generation of false paperwork designed to create the façade that the renewable identification number (or RIN, a serial number used to track biodiesel credits) created and claimed by co-conspirators were legitimate. The paperwork included false invoices from Gen-X or SRC to shell entities, which purported to show sales of renewable fuel, false invoices from shell entities to Gen-X and SRC, which purported to show the purchase of feedstock and false bills of lading, which purported to show the transportation of fuel and feedstock by tanker truck.
From March 2013 to March 2014, the co-conspirators generated at least 60 million RINs that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities. The co-conspirators received at least $42 million from the sale of these fraudulent RINs to third parties. In addition, Gen-X received approximately $4,360,724.50 in false tax credits for this fuel.
This case was investigated by the U.S. Secret Service, the Environmental Protection Agency -Criminal Investigation Division, and the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Megan Kistler and Trial Attorney Adam Cullman of the Environment and Natural Resources Division of the Department of Justice.
Ringleader of Tampa Credit Card Fraud and Identity Theft Ring Sentenced to More Than 16 Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Michel Lermos-Hernandez (40, Tampa) to 16 years and 7 months in federal prison for conspiracy to commit bank fraud and aggravated identity theft. The Court also ordered him to pay $714,383.51 in restitution to his victims. Lermos-Hernandez pleaded guilty on March 2, 2016.
According to court documents, Lermos-Hernandez ran a credit card fraud ring in which conspirators obtained credit card numbers by placing key loggers on credit card terminals that intercepted and stored swiped credit and debit account information at the International Mall in Tampa, including one at the Haagen-Dazs ice cream store. Lermos-Hernandez and others then created counterfeit credit cards using the stolen account numbers. Lermos-Hernandez obtained blank credit card stock, embossing machines, and magnetic stripe re-encoders from his co-defendant, Viviana Reyes. He also sold stolen account numbers to Reyes and others.
After making the counterfeit cards, Lermos-Hernandez provided them to his co-conspirators, including his sister, Norma Cabezas-Hernandez, his girlfriend, Danay-Crespo Rodriguez, and at least two other individuals, including Lazaro Rodriguez and Abel Osorio-Cuok, who used the cards to purchase electronics and gift cards at Tampa area retailers. The conspirators then took these items to Reyes, who paid them in cash for the fraudulently obtained merchandise. Reyes then sold the items at a discounted price.
On February 7, 2013, a search warrant was executed at Lermos-Hernandez’s residence. Agents recovered $14,515 in cash, a laptop computer, a credit card embosser, a magnet stripe reader/encoder, a key logger, and multiple counterfeit credit cards and re-encoded gift cards. Also pursuant to his arrest, agents seized a Mercedes-Benz sedan that Lermos-Hernandez had purchased for over $130,000.
The total actual loss identified to date is more than $700,000 and the scheme victimized more than 35 federally insured financial institutions, and over 1,000 individuals, whose account information was compromised.
Reyes was convicted at trial and was later sentenced to 12 years in prison. Crespo-Rodriguez pleaded guilty and was sentenced to seven years in prison. Cabezas-Hernandez pleaded guilty and was sentenced to five years in prison. Lazaro Rodriguez was sentenced to 37 months’ incarceration. Osoria-Cuok, who was only involved in the conspiracy for approximately three weeks, was sentenced to a term of five years’ probation.
This case was investigated by the Tampa Police Department, the Florida Department of Law Enforcement, and the U.S. Secret Service (USSS), all of which are members of the USSS’s Credit Card Fraud and Identity Theft Task Force. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Suzanne Nebesky.
Fugitive Tax Preparer Pleads Guilty to Aiding the Filing of False Tax ReturnsRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Candia V. Williams (49, Jacksonville) has pleaded guilty to nine counts of aiding in the preparation and filing of false tax returns. She faces a maximum penalty of three years in federal prison on each count. A sentencing date has not yet been set.
According to court documents, Williams was the owner and operator of Express Tax Returns, a tax preparation business in Jacksonville that was also known as Taxonville. In the course of preparing and filing income tax returns for customers, Williams reported false information, including inflated business income, to increase the customers’ eligibility for tax credits. As a result of her actions, the United States Treasury lost more than $300,000 in tax revenue.
After being indicted on May 27, 2015, and initially released to await trial, Williams fled Florida in violation of the conditions of her bond. On January 6, 2016, a fugitive task force determined that Williams was hiding out in a home in Gulfport, Mississippi. After a standoff with law enforcement, she was found hiding under a pile of clothing in a bathroom closet in the home. She was arrested and returned to Florida.
This case was investigated by Internal Revenue Service - Criminal Investigation and the U.S. Marshals Service. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Clermont Woman Sentenced to Federal Prison for Theft of over $650,000 from American Legion AuxiliaryRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Robin C. Briere (64, Clermont) to 33 months in federal prison for the theft of over $650,000 from the American Legion Auxiliary Department of Florida. She was also ordered to pay $657,441.21 in restitution and to serve three years of supervised release. Briere pleaded guilty to wire fraud on July 18, 2016.
According to court documents, Brere used her position as Secretary-Treasurer of the American Legion Auxiliary to steal $657,441.21 from the organization over a seven-year period from 2007 to 2014. Briere accomplished her scheme by creating 200 fraudulent transactions, most of which involved writing checks to herself on the American Legion Auxiliary account and then making false entries in the organization’s accounting system. She also wrote checks from the American Legion Auxiliary account to pay her personal credit card bills, and in some instances, used the American Legion Auxiliary credit card to pay her personal expenses.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Nathan W. Hill and Roger B. Handberg.
British National Arrested at Jacksonville Airport for Assault on International Flight CrewRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the filing of a federal criminal complaint charging Oliver Charles Halliday Gee (34, Playa Del Carmen, Mexico), with assault or intimidation of a flight crew. If convicted, he faces a maximum penalty of 20 years in federal prison. Gee made his initial appearance in federal court in Jacksonville yesterday. He was ordered temporarily detained until his formal detention hearing, which has been scheduled for November 7, 2016.
According to the criminal complaint, on November 2, 2016, Gee was a passenger on Condor flight 2115 traveling from Cancun, Mexico, to Frankfurt, Germany. Before takeoff, Gee demanded to be served alcohol and was behaving aggressively. Approximately 60-90 minutes into the flight, Gee threatened to kill another passenger aboard the flight and threatened and intimidated a three-year-old child. Gee proceeded to insult flight attendants aboard the flight and at one point began removing his clothes, exposing his penis.
Gee announced his intention to urinate in the flight cabin and was escorted to the lavatory by the flight’s purser and a passenger who volunteered to assist. While being escorted, Gee slapped both the purser and the volunteer passenger. Gee also threatened to kill the volunteer passenger and stated that he knew people in Mexico who would kill the volunteer passenger for him.
Ultimately, the purser and volunteer passenger were able to restrain Gee in a seat and the flight was diverted to Jacksonville International Airport for an emergency landing. After the plane landed, Gee was arrested and taken into custody by the Federal Bureau of Investigation. The plane was then refueled and continued to its destination.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Aviation Authority Police and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Tampa Man Pleads Guilty to Possessing FirearmRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Ahmid Cecil Lewis (27, Tampa) today pleaded guilty to possessing a firearm and ammunition while a felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, on August 12, 2016, a person called 911 to report a road rage incident on Busch Boulevard, in Tampa. The complainant reported that a man in a car had cut him off and then waved a pistol. An officer with the Tampa Police Department responded to the 911 call, located the car that Lewis was driving, and pulled it over. Lewis was the sole occupant of the vehicle. Upon searching the car, the officer found a loaded .40 caliber pistol under the driver’s seat. At the time, Lewis was a convicted felon and therefore was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
Orlando Gas Station Owner Sentenced to Prison for Theft of Postal Money OrdersRead the Press Release
Orlando, FL – United States District Court Judge Carlos E. Mendoza today sentenced Meghaj Reddy Kuchakulla (49, Orlando) to 12 months in federal prison for theft of $555,561.69 in United States Postal Service (USPS) money orders. Prior to sentencing, he repaid $275,000 to the USPS. As part of his sentence, he was ordered to repay the balance as restitution.
Kuchakulla pleaded guilty on February 10, 2016.
According to court documents, Kuchakulla was a licensed USPS money order vendor for the four gas stations he owned in Orange and Lake Counties. As a licensed vendor, he had access to create, print, and disburse USPS money orders. From October 2009 through April 2010, Kuchakulla fraudulently created and printed more than 1,100 money orders in his own name, without actually purchasing them. He deposited the funds from the money orders into his personal bank accounts and then used them to pay business expenses, personal expenses, and to pay back the USPS for previous money orders that he had fraudulently created, printed, and deposited.
“This criminal exploited the postal service financial system and embezzled more than half a million dollars,” said Susan L. McCormick, special agent in charge of HSI Tampa. “With the partnership of the U.S. Postal Inspection Service, he is now being held accountable for his crimes.”
This case was investigated by the U.S. Postal Inspection Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Clearwater Man Sentenced for Possessing over 50,000 Images of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. today sentenced Jonathan William Lauman (27, Clearwater) to eight years in federal prison for possessing and transporting child pornography. As part of his sentence, he was ordered to serve a 15-year term of supervision and register as a sex offender following his release from prison. The Court also ordered him to pay restitution to several victims. Lauman pleaded guilty in February 2016.
According to court documents, Lauman downloaded and possessed more than 1,500 videos and over 50,000 images of young children, including infants, engaged in sexual acts with adults. The videos depicted, in part, sadistic and masochistic sexual abuse of children and infants. Lauman hoarded and transported these videos and images on his personal laptop.
“Downloading sexually explicit images and videos of young children creates lifelong scars for victims and enables perpetrators around the globe to continuously exploit those same innocent youths,” said Susan L. McCormick, special agent in charge of Homeland Security Investigations (“HSI”) Tampa. “HSI special agents will continue to work with our law enforcement partners to target criminals who prey on the most vulnerable members of society.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kristen A. Fiore.
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 Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Melissa Hayes has pleaded guilty to conspiracy to commit theft of government property. She faces a maximum penalty of five years in federal prison.
According to the plea agreement, Hayes conspired with others to commit stolen identity refund fraud by depositing United States Treasury checks in the names of others into a business bank account that had been established for her restaurant/food business. Hayes then withdrew the funds the same day or the following day, spent the money on point-of-purchase items, or transferred the money to her personal bank account. The Treasury checks were fraudulently endorsed with the name of the intended recipient (the victim) and the name of Hayes’s business prior to being deposited. Four of the persons named on the Treasury checks deposited into Hayes’s account were deceased.
Between January and June 2012, Hayes deposited 22 fraudulent government and tax refund checks, totaling more than $160,000, into her business bank account. She used these fraudulently obtained funds for her personal use and shared them with her co-conspirators.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Manatee County Probationer Pleads Guilty to Possessing FirearmRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Pedro Garcia (34, Manatee County) has pleaded guilty to knowingly possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. His sentencing hearing has been scheduled for January 26, 2017.
According to court documents, on November 9, 2015, law enforcement officers conducted a compliance search at Garcia’s residence, pursuant to the terms of his probation. Inside the home, the officers found a loaded 9mm pistol, various types of 9mm and .45 caliber ammunition, and drug paraphernalia. As a previously convicted felon, Garcia was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Florida Department of Corrections Probation & Parole Field Service Office, and the Manatee County Sheriff’s Office. It is being 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 (PSN) - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, 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.
Alien Sentenced to Three Years on Identity Theft ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Jose Avianeda-Espinoza (44, Hillsborough County) to three years in federal prison for making material false representations to an agency of the United Sates, making false statements as to his citizenship, and aggravated identity theft. He pleaded guilty on August 3, 2016.
According to court documents, Avianeda, a citizen of Mexico, used a U.S. citizen’s identity for nearly 17 years to obtain a number of government identifications and to avoid deportation. In December 2015, he gave a false name to deportation officers and falsely claimed to be a U.S. citizen. He subsequently recanted his claim, however, and admitted to being a citizen of Mexico who was illegally present in the United States. On January 4, 2016, Avianeda appeared before an immigration judge and reasserted his claim to United States citizenship, providing a false name to the court and relying on a stolen birth certificate from Puerto Rico. He subsequently repeated his false claim to immigration officers. In March 2016, Avianeda again appeared before an immigration judge for removal proceedings and falsely identified himself to the court.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Fugitive Operation Task Force. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
Texas Woman Charged in Murder-for-Hire Plot to Kill Trial WitnessesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Priscilla Ellis (51, Killeen, TX) has been charged by criminal complaint with retaliating against a witness, victim, or an informant. If convicted, she faces a maximum penalty of 40 years in federal prison.
According to the complaint, Ellis was convicted on October 21, 2016, of conspiracy to commit mail and wire fraud and conspiracy to commit international money laundering following a three-week trial. The next day, she began soliciting a fellow inmate to help her find a hit man to murder two people in retaliation for testimony given at trial. One was a key witness for the government, and the other was the mother of another witness who had pleaded guilty and was cooperating against Ellis. During recorded conversations with the inmate and undercover agents posing as co-conspirators, Ellis told the agent posing as the hit man that the first witness’s child should be killed along with the witness, if necessary. Ellis also described the manner in which she wanted the cooperating witness’s mother to be killed. Ellis agreed to have her daughter in Texas take money obtained from another fraudulent scheme and give it to the hit man as partial payment for the two murders, which the daughter in fact did at Ellis’s direction.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Eric Gerard and Patrick Scruggs.