Middle District of Florida

Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Rowy De Jesus Vasquez (26, Altamonte Springs) to 30 years in federal prison, to be followed by 20 years of supervised release, for sex trafficking a minor. The Court also ordered him to pay $23,040 in restitution to his victim, and to register as sex offender. He pleaded guilty on October 20, 2016.

According to the plea agreement, between April 24, 2015, and June 10, 2015, Vasquez caused a 14-year-old girl to engage in commercial sex acts for his financial gain and profit. He provided the minor with a cellphone to communicate with potential customers and to post advertisements for prostitution services on the Backpage website. Vasquez also set the prices for the sex acts and kept all of the proceeds.

This case was investigated by the Federal Bureau of Investigation, with assistance from the Metropolitan 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 the 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.

Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Michael Morgan Dietch (60, Port Orange) to 11 years and 3 months in federal prison for distribution of Schedule II controlled substances outside the usual course of professional practice, without a legitimate medical purpose. He pleaded guilty on October 28, 2016.

According to court documents, Dietch was a licensed physician in Florida who, between June 2011 and August 2012, prescribed Schedule II, III, and IV controlled substances such as oxycodone, hydromorphone, hydrocodone, fentanyl, Morphine, and Methadone to 150 to 200 patients. During this time, he arranged via text message for patients to come to his apartment, where he would provide the prescriptions. Dietch saw as many as 18 patients per day and charged $100 to $150 in cash for an appointment that generally lasted less than 10 minutes.

Many of Dietch’s patients were drug addicts who sold and traded their prescription pills with Dietch’s knowledge. On two occasions, Dietch bonded two of his patients out of a local jail for drug-related charges and then kept them on as patients, writing prescriptions for them for controlled substances. Dietch also wrote prescriptions for some patients who would have them filled but then gave the pills back to him. Dietch would then use some of these pills himself and provide the remaining pills to others.

“This was a fitting sentence for someone who abused his physician’s license to peddle dangerous, deadly, addictive substances without any demonstrated medical need.” said Sheriff Michael Chitwood.

This case was investigated by Drug Enforcement Administration and the Volusia County Sheriff’s Office, in conjunction with the Volusia Bureau of Investigation. It was prosecuted by Assistant United States Attorney Shawn P. Napier.

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Akeitha Mumtaz Warner (29, Orlando) guilty of possessing 15 or more counterfeit access devices (credit cards) with the intent to defraud. He faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for April 3, 2017. Warner and his co-defendant, Ricardo Delgado-George (29, Kissimmee), were indicted on October 12, 2016. Delgado-George pleaded guilty to fraud-related charges on December 19, 2016, and is scheduled to be sentenced on March 13, 2017.

According to court documents and evidence presented at trial, Warner and Delgado-George were stopped by an Osceola County Sheriff’s deputy and found to be in possession of more than 100 counterfeit credit and debit cards, hundreds of account numbers, and equipment that could be used to re-encode cards. Both men admitted to using counterfeit cards at various central Florida stores and gas stations.

This case was investigated by the United States Secret Service and the Osceola County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Embry J. Kidd.

Jacksonville, FL – United States Attorney A. Lee Bentley, III announces that a federal jury has found Crystel Lee Riedling (44, Lake City) guilty of theft of government property and making a false statement. She faces a maximum penalty of 15 years in federal prison. Her sentencing hearing is scheduled for April 11, 2017. Riedling was indicted on February 18, 2016.

According to evidence presented at trial, Riedling, a U.S. Army veteran, received almost $300,000 in disability benefits over the past five to six years. She began receiving the benefits after claiming that she was completely unable to use her right arm. In reality, Riedling had use of her right arm and was seen using it. Two doctors testified that Riedling was malingering and exaggerating her injuries. Statements presented at trial also included Riedling’s admission that she knew that receiving these benefits was “completely wrong.” The jury also found Riedling guilty of making false statements to the United States after she told an investigator that she was totally and permanently disabled.

This case was investigated by the United States Department of Veterans Affairs – Office of Inspector General, the Social Security Administration - Office of the Inspector General, and the U.S. Department Health and Human Services – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jason Mehta.

Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Simon Peter Danielson (37, Vancouver, British Columbia) to 10 years in federal prison for his role in a scheme to transport 250 kilograms of cocaine by boat from the Caribbean to the east coast of Canada. Danielson pleaded guilty in May 2016.

According to court documents, Danielson was piloting the sailing vessel (“SV”) Liberty in international waters when he was intercepted by a Royal Netherlands Navy ship approximately 82 miles northwest of Aruba. While preparing to board the SV Liberty, members of the United States Coast Guard Law Enforcement Detachment (“LEDET”) 405 aboard the Dutch vessel witnessed Danielson dumping kilogram-sized bricks into the water. Upon boarding the SV Liberty, the LEDET team recovered nine bales of cocaine, with a total weight of approximately 250 kilograms.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, and the Federal Bureau of Investigation, with assistance from the U.S. Coast Guard, the Royal Netherlands Navy, and the Royal Canadian Mounted Police. It was prosecuted by Assistant United States Attorney Eric K. Gerard.

Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Anthony Jeroid Cue (47, Daytona Beach) to 15 years in federal prison for possessing a firearm as a convicted felon. Cue’s prior criminal history, which includes convictions for several serious drug offenses, subjected him to enhanced penalties pursuant to the Armed Career Criminal Act. He pleaded guilty on October 27, 2016.

According to court documents, over the course of several months, Cue arranged for the sale of illegal narcotics and three firearms to a confidential informant. Following Cue’s arrest, agents recovered an additional five firearms that Cue had stored away from his residence.

This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Daytona Beach Police Department. It was prosecuted by Assistant United States Attorney Embry J. Kidd.

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. 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 a part of ATF’s Frontline strategy to reduce violent crime in communities.

Tampa, FL – United States Attorney A. Lee Bentley, III announced today that Shire Pharmaceuticals LLC and other subsidiaries of Shire plc (Shire) will pay $350 million to settle federal and state False Claims Act allegations that Shire and the company it acquired in 2011, Advanced BioHealing (ABH), employed kickbacks and other unlawful methods to induce clinics and physicians to use or overuse its product “Dermagraft,” a bioengineered human skin substitute approved by the FDA for the treatment of diabetic foot ulcers.  Shire plc is a multinational pharmaceutical firm headquartered in Ireland, with its United States operational headquarters in Lexington, Massachusetts.  Shire sold the assets associated with Dermagraft in early 2014.   

“Flagrant and systemic kickback activity of the type at issue in this case is designed to impair and undermine a physician’s independent medical judgment, and will not be tolerated,” said U.S. Attorney Bentley.  “This lawsuit and today’s historic settlement demonstrate our office’s vigilant and on-going efforts to safeguard federal health care program beneficiaries from the effects of such illegal and deplorable conduct.”  In addition to this landmark civil settlement, the office continues to work diligently to bring to justice those individuals responsible for these illegal actions. Already, the MDFL has obtained the criminal convictions of three high-level executives who supervised the implementation of the illegal kickback scheme, as well as a number of healthcare providers who received kickbacks. 

“This settlement represents the largest False Claims Act recovery by the United States in a kickback case involving a medical device,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Kickbacks by suppliers of healthcare goods and services cast a pall over the integrity of our health care system.  Patients deserve the unfettered, independent judgment of their health care professionals.”

The settlement resolves allegations that Dermagraft salespersons unlawfully induced clinics and physicians with lavish dinners, drinks, entertainment and travel; medical equipment and supplies; unwarranted payments for purported speaking engagements and bogus case studies; and cash, credits and rebates, to induce the use of Dermagraft. The Anti-Kickback Statute prohibits, among other things, the payment of remuneration to induce the use of medical devices covered by Medicare, Medicaid and other federally-funded health care programs, including the Department of Veterans Affairs (VA).  Claims filed in violation of the Anti-Kickback Statute are considered false or fraudulent under the False Claims Act.  In addition, the Anti-Bribery statute and the Federal Acquisition Regulations prohibit bribes to government officials or employees, including VA physicians, to obtain a contract or favorable treatment under a supply contract.  The United States alleged that as a result of its violation of these provisions, Shire submitted or caused to be submitted to federally-funded health care programs hundreds of millions of dollars of false claims for Dermagraft.

The U.S. Attorney’s Office for the District of Columbia also played an active role in this investigation, seeking redress in the civil agreement announced today for the losses sustained by the VA. “Giving kickbacks and gratuities to healthcare providers corrupts medical treatment by interjecting personal financial incentives into decisions that should focus on what is best for a particular patient,” said U.S. Attorney Channing D. Phillips for the District of Columbia.  “These types of unlawful incentives are particularly troubling when they seek to corrupt the medical treatment provided to our nation’s veterans.  We will aggressively pursue any company that engages in such reprehensible and unlawful conduct, which seeks to put a company’s financial gains ahead of providing the best medical treatment for those who bravely served in our Armed Forces.”

The U.S. Attorneys’ Office for the Eastern District of Pennsylvania and the Middle District of Tennessee also contributed to the investigation and resolution of these matters.  “Fraud against the health care program that exists for the benefit of our veterans, some of our most cherished citizens, as well as fraud against the Medicare program, is reprehensible and unacceptable,” said the Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania. “This resolution again demonstrates the capacity of the Department of Justice and our law enforcement partners across the country to work together to address unlawful conduct nationwide that affects veterans and other beneficiaries of federally funded health care programs.”

“The best interest of the patient is, and must be, the primary factor in a physician’s decision regarding patient care,” said U.S. Attorney David Rivera for the Middle District of Tennessee.  “As such, federal law protects patients from medical providers who enrich themselves through bribes and kickbacks by making illegal the payment of remuneration to induce the use of medical devises covered by federally-funded health care programs.  Such kickback schemes that interfere with physician-patient relationships and drive up the cost of healthcare for everyone, will be vigorously pursued and aggressively prosecuted.”

“U.S. Department of Veterans Affairs healthcare providers are obligated to render care free of any improper financial influences” said Special Agent in Charge Michael E. Seitler of the U.S. Department of Veterans Affairs, Office of Inspector General (VA OIG), Northwest Field Office.  “This is particularly important at VA, since we care for many of this nation’s heroes who have sacrificed their own welfare for our freedom.   In this case, ABH saw a dramatic rise in its sales to the VA during the period of time it provided illegal inducements to multiple VA clinicians across the country.  These corrupt practices served to erode the public trust in our healthcare system.  The VA OIG is committed to investigating, and bringing to justice, those who engage in these illegal practices.”

In addition to the kickback allegations, the settlement also resolved allegations that Shire and its predecessor (ABH) unlawfully marketed Dermagraft for uses not approved by the FDA, made false statements to inflate the price of Dermagraft, and caused improper coding, verification, or certification of Dermagraft claims and related services.

The allegations resolved by the settlement were brought in six lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery.  The whistleblower shares to be awarded in this case have not yet been determined.

The six qui tam cases, all of which were either filed or transferred to the U.S. District Court for the Middle District of Florida, are captioned: United States ex rel. Vinca v. Advanced BioHealing, Inc., Case No. 8:11-cv-176-T-30MAP; United States ex rel. Harvey v. Advanced BioHealing, Inc., Case No. 8:16-cv-303-T-30TBM;  United States ex rel. Medolla v. Advanced BioHealing, Inc., Case No. 8:12-cv-575-T-30TBM; United States, et al., ex rel. Petty v. Shire Regenerative Medicine, Inc., Case No. 8:14-cv-969-T-30TBM; United States ex rel. Webb v. Advanced BioHealing, Inc., Case No. 8:14-cv-1055-T-30EAJ; and United States ex rel. Montecalvo v. Shire Regenerative Medicine, Inc., Case No. 8:16-cv-268-T-30TBM. 

These matters were investigated by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Middle District of Florida, District of Columbia, Middle District of Tennessee and Eastern District of Pennsylvania; the FBI; the U.S. Department of Health and Human Services (HHS) Office of Inspector General; the VA OIG and the Department of Defense Criminal Investigative Service.  These cases were handled locally by Assistant United States Attorneys Randy Harwell and Chris Tuite working jointly with Department of Justice Trial Attorney Richard Nicholson.

Shire, which cooperated in the government’s investigation, has been operating under a Corporate Integrity Agreement entered into with HHS that was implemented in late 2014, after the alleged unlawful conduct resolved by today’s settlement occurred, in connection with the settlement of separate False Claims Act allegations. 

“Patients must be able to trust that decisions made by their doctors are based on unbiased professional judgment and not personal gain,” said Chief Counsel Gregory E. Demske to the HHS Inspector General.  “The Office of the Inspector General will continue to monitor Shire’s compliance with federal healthcare programs through its oversight of Shire’s Corporate Integrity Agreement.”

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 $31.4 billion through False Claims Act cases, with more than $19.6 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.

Orlando, FL – United States Attorney A. Lee Bentley, III announces that a federal jury has found Manuel Enrique Santana (36, Orlando) guilty of 10 counts of theft of government money and 5 counts of aggravated identity theft. He faces a maximum penalty of 10 years in federal prison for each of the theft counts, to be followed by a mandatory term of at least 2 years for the aggravated identity theft charges. His sentencing hearing is scheduled for April 12, 2017. Santana was indicted on August 31, 2016.

According to evidence presented at trial, in early 2014, Santana deposited 47 stolen federal tax refund checks into 3 of his own bank accounts during a 10-day period. The majority of the checks were endorsed with forged signatures of the intended payees, all of whom had filed returns for the 2013 tax year and were expecting to receive their refund checks by mail. The combined value of the 47 stolen refund checks was more than $64,000.

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

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Stacy Darnell Mitchell (48, Tampa) guilty of theft of government property and theft of mail. He faces a maximum penalty of 15 years in federal prison. His sentencing date has not yet been set. Mitchell was indicted on March 1, 2016.

According to evidence presented at trial, Mitchell was a mail handler who had worked for more than 15 years at the Processing and Distribution Center (PDC) in St. Petersburg, which processes mail for all of Pinellas County. From January to October 2012, Mitchell stole Social Security benefit checks totaling over $2 million from that facility. More than 3,000 checks were taken from the PDC in 2012, all of which were destined for disabled or retired beneficiaries living in Pinellas County. Mitchell went on to sell the checks to an accomplice in Tampa, who in turn sold the checks to a network of individuals to be cashed at various convenience stores and check cashing businesses in Florida and elsewhere. Four of Mitchell’s accomplices have been convicted of federal charges related to the same theft scheme.

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

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Timothy Roberts (46, Missouri) has pleaded guilty to wire fraud. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.

According to court documents, Roberts was the founder, CEO, and Chairman of the Board of the now-defunct Savtira Corporation, Inc., a technology company that was headquartered in Ybor City. As CEO and Chairman of the Board, Roberts solicited investors for Savtira, had control over the company’s funds, and was responsible for overseeing the sale of its products to potential customers.

Starting in or around November 2010, Roberts and Terrance F. Taylor, Savtira’s CFO, devised and carried out a scheme to defraud and obtain money and property by making false promises and representations. In particular, they distributed and caused to be distributed to investors a draft valuation of the company that indicated Savtira was worth between $450 million and $540 million when, in fact, the company had little, if any, revenues. Roberts also failed to disclose to all investors that he had entered into a prior judgment with the United States Securities and Exchange Commission (SEC) for violating the securities laws of the United States. Roberts and Taylor also made false statements to investors about the use of investor funds, some of which were diverted by the defendants for personal use.

Roberts and Taylor were previously indicted for conspiracy to commit wire fraud and wire fraud. Taylor is currently set for trial in April 2017.

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 Federal Bureau of Investigation and the Florida Office of Financial Regulation. It is being prosecuted by Assistant United States Attorney Mandy Riedel.

Orlando, FL – U.S. District Judge Gregory A. Presnell today sentenced Jason Eric Phifer (33, DeLand) to six years in federal prison for possession with intent to distribute ethylone, commonly marketed as the street drug “Molly.” A federal jury found him guilty on September 14, 2016.

According to court documents, between January and May 2015, Phifer ordered four shipments of ethylone, totaling approximately 5.25 kilograms, from a supplier in China. In May 2015, agents discovered a shipment of 1.5 kilograms of ethylone that was destined for Phifer’s residence. On May 20, 2015, undercover agents made a controlled delivery of the ethylone to Phifer at his home. Immediately after the delivery, they executed a search warrant at the home and recovered the 1.5 kilograms of ethylone, and they also found additional quantities in Phifer’s bedroom. Phifer admitted to agents that he had received the ethylone so he could distribute it to customers throughout the United States.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Vincent S. Chiu and Sean P. Shecter.

Orlando – United States District Judge Carlos E. Mendoza today sentenced Angel Manuel Fontanez (32, Clermont) and his brother, Alexis Fontanez Nieves (29, Orlando), to 17 years and 2 months and 14 years in federal prison, respectively, for conspiracy to distribute and possession with the intent to distribute heroin. Fontanez pleaded guilty on October 12, 2016, and Nieves pleaded guilty on October 21, 2016.

According to court documents and sentencing testimony, Fontanez and Nieves were leaders of an Orlando-based drug trafficking organization whose members referred to themselves as “La Compania” or “The Company.” The organization used a telephone number (“the heroin line”) that frequently changed to sell heroin to customers primarily in the Orlando tourist district, near International Drive. Customers would call the heroin line and arrange to purchase heroin from a member of the organization. The line changed hands from one member of the organization to the next, as heroin was sold during two 12-hour shifts, seven days a week.

Fontanez was the leader of the organization, and he traveled out-of-state to acquire kilograms of heroin that he transported back to the Orlando area and then repackaged into smaller, street-level quantities for distribution. He also managed and directed the activities of the organization’s street dealers.

Nieves helped Fontanez run the organization by repackaging bulk heroin into smaller baggies and supplying both heroin and cocaine to the street-level sellers. After Fontanez was arrested, Nieves directed the organization’s day-to-day activities by recruiting individuals to work for the organization, controlling the heroin line, providing heroin to the organization’s low-level sellers, and collecting money from the sellers at the conclusion of their shifts. The organization distributed approximately one kilogram of heroin every two weeks. During the time of the conspiracy, Fontanez was responsible for distributing at least 30 kilograms of heroin and Nieves was responsible for distributing at least 10 kilograms of heroin.

This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “La Compania.” The investigation was conducted by the Drug Enforcement Administration, with assistance from the Orange County Sheriff’s Office, the Metropolitan Bureau of Investigation, the United States Marshals Service, the Federal Bureau of Investigation, the Orlando Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Kissimmee Police Department, the Osceola County Investigative Bureau, and the Virginia State Police. It was prosecuted by Assistant United States Attorney Andrew C. Searle.

The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.

Orlando, Florida – U.S. District Judge Carlos E. Mendoza today re-sentenced Ane Plate (60, DeLand) to 27 months in federal prison for theft by a bank employee. As part of her sentence, the Court also entered a money judgment in the amount of $176, 079.70, the proceeds of the charged criminal conduct.

Plate pleaded guilty on May 20, 2015. On August 19, 2015, she was initially sentenced by U.S. District Judge Kendall G. Sharp to 27 months’ imprisonment. Plate appealed that sentence, and on October 5, 2016, the Eleventh Circuit Court of Appeals remanded the case for re-sentencing.

According to court documents, between October 8, 2013, and continuing through May 3, 2014, Plate, who was an officer and employee of Wells Fargo Bank, stole $176,079.70 in bank deposits. Specifically, she induced an elderly couple, who had been her clients for several years, to sign an ACH Authorization Agreement allowing Plate to transfer funds from the couple’s Wells Fargo Trust Account to their personal checking account. Plate then manipulated the elderly couple into writing checks to her from that account. Plate would replenish the funds in the couple’s personal account by selling off their securities, without authorization, and transferring the proceeds into the couple’s personal account. Plate then used the stolen money to make improvements to her home, pay her mortgage, and make large cash withdrawals. At the time of the offense, the elderly victims, who were in their nineties, had diminished mental capacities and were living in an assisted living facility.

This case was investigated by the U.S. Secret Service. It was prosecuted by Assistant United States Attorney Kara M. Wick.

Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Luis Sandoval (34, Los Angeles, CA) and Miguel Sandoval (35, Inglewood, CA) to six years and three months in federal prison for conspiracy to distribute a kilogram or more of heroin. Miguel Sandoval pleaded guilty on August 22, 2016, and Luis Sandoval pleaded guilty on September 19, 2016.

According to court documents, during January 2016, a task force comprised of narcotics detectives from the Jacksonville Sheriff’s Office (JSO) and special agents from the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI) began investigating a significant heroin supplier based in Jacksonville. Agents and detectives intercepted and arrested the supplier, who had flown to Los Angeles and returned to Jacksonville aboard a Greyhound bus. The supplier was transporting one kilogram of heroin in his luggage, which was seized during the operation. As a result, law enforcement contacted the Sandoval brothers and arranged for the purchase of a kilogram of heroin and fentanyl in Los Angeles.

On April 20, 2016, JSO detectives, DEA and FBI agents from Jacksonville, and law enforcement officers from Los Angeles arrested the Sandoval brothers near Miguel’s home in Inglewood. A search warrant was executed at the home and law enforcement officers located more than a kilogram of fentanyl and a kilogram of heroin.

This case was investigated by the JSO, the DEA, and the FBI. It was prosecuted by Assistant United States Attorney Frank Talbot.

Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Leone Alfano La Cava (59, Orlando) with 17 counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison on each count.

According to the indictment, La Cava orchestrated an international real estate investment scheme that defrauded at least 40 investors out of more than $4 million. He solicited individuals in Italy to purchase real estate in Orange County that he claimed would generate guaranteed rental income. He used falsified deeds and loan documents to convince investors that they were purchasing property owned by La Cava or one of his entities, Orlando Trust Investment Properties, Inc., or Golden Investment, Inc. In fact, those properties did not exist, were never owned by La Cava or one of his entities, or had already been sold to another investor. La Cava used portions of the funds sent by investors for his own personal use.

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 Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Roger Handberg and Nathan W. Hill.

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Julian Villa-Gomez Lemus (31, Visalia, CA) guilty of conspiracy to distribute controlled substances. In the past week, his co-defendants Fadhle Muqbel Saeed (31) and Alfonso Bojorquez-Vazquez (30), both of Porterville, California pleaded guilty to related charges of conspiracy to distribute controlled substances. Each faces a maximum penalty of 20 years in federal prison. Sentencing hearings are scheduled for March 23, 2017. The individuals were indicted on May 11, 2016.

According to evidence presented at trial, between May 2012 and October 2013, Saeed, Villa-Gomez Lemus, and Bojorquez-Vazquez were involved in a conspiracy to distribute drugs over the Internet using illicit online drug marketplaces such as “Silk Road.” Payment for these transactions was conducted using “Bitcoin,” a semi-anonymous electronic form of payment.

Members of the conspiracy used the pseudonym “darkexpresso” to conduct over 1,300 Silk Road drug transactions, resulting in gross proceeds of more than $1.9 million. These transactions included methamphetamine, hydrocodone, marijuana, steroids, cocaine, and other controlled substances. The drugs were sent to purchasers throughout the United States and Australia.

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

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Michael Ray Enzor (34, Jacksonville) to 19 years and 6 months in federal prison for transporting, and aiding and abetting the transportation of, child pornography. He also was ordered to serve a supervised release term of 15 years, register as a sex offender, and pay restitution to a victim of his offense. Enzor pleaded guilty on October 4, 2016.

According to court documents, in 2007, Enzor was convicted in Duval County of attempted capital sexual battery on a child less than 12 years old. Consequently, he was sentenced to 10 years in state prison and was released in June 2014. In October 2014, while under conditional release for the state conviction, law enforcement officers discovered that Enzor was sharing child pornography on a social networking chat website based out of Canada.

In addition to sharing child pornography, Enzor had also solicited young girls and mothers and daughters to connect with him on social media for the purpose of providing “extreme” videos to him.

On March 24, 2015, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations executed a search warrant at a residence Enzor shared with other convicted sex offenders. Forensic analyses of Enzor’s electronic media revealed more than 100 video files depicting child pornography.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the York Regional Police in Ontario, Canada. It was prosecuted by Assistant United States Attorney Kelly S. Karase.

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.  

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Richard Daniel Lord (58, Jacksonville) has pleaded guilty to receiving child sexual abuse videos over the Internet. He faces a mandatory minimum penalty of 5, up to 20 years, in federal prison, and a potential life term of supervision. A sentencing date has not yet been scheduled. Lord has been in federal custody since his arrest on September 30, 2016.    

According to court documents, on September 30, 2016, FBI agents executed a federal search warrant at Lord’s Jacksonville residence, while he was at home.  During an interview with agents, Lord admitted to using his cellular telephones to search for, download, and view child pornography, that he was most interested in images and videos of children between the ages of 10-12 years old, and that he searched for child pornography “constantly” and could not control himself. A forensic examination of one of Lord’s cell phones revealed a video that had been downloaded by him on September 16, 2016, depicting a prepubescent minor child being sexually abused.

This case was investigated by the Federal Bureau of Investigation. 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

Orlando, Florida – United States Attorney A. Lee Bentley, III announces today that federal prosecutions over the past six months in Orlando have removed more than 100 firearms from Central Florida communities. Since 2001, the U.S. Attorney’s Office in the Middle District of Florida has participated in the national strategy to reduce gun-violence in communities – “Project Safe Neighborhoods.”  The strategy involves the coordination and cooperation with local, state, and federal law enforcement partners. To increase the prosecutorial resources necessary to address firearms and violent crime cases, the United States Attorney’s Office, Orlando Division, established a “Gun Unit” earlier this year. The purpose of the Gun Unit is to collaborate regularly with local, state, and federal partners to review and identify firearms and violent crime cases for federal prosecution. 

Since June 1, 2016, the Orlando Division has charged over 40 individuals with firearms or violent crime offenses, reflecting an increase of more than 125% for the same period last year. The charges in those cases vary by defendant, but include possession of a firearm by a convicted felon, possession of a firearm in furtherance of a drug trafficking or crime of violence, possession of a stolen firearm, bank robbery, and Hobbs Act robbery. More than 100 firearms have been seized or recovered from those charged (see attachment). 

U.S. Attorney A. Lee Bentley, III stated, "Over the past six months, we have dedicated additional resources to the Orlando Division to prosecute violent crime and firearms cases. I would like to commend our local, state, and federal partners who have investigated those cases and we pledge to continue working with them to aggressively prosecute those individuals who illegally possess and use firearms in our communities.” In addition, the U.S. Attorney’s Office has worked closely with its community partners to develop youth prevention, intervention, and outreach strategies to address the various issues associated with gun violence.

The cases summarized in the attachment were investigated by the Apopka Police Department, the Brevard County Sheriff's Office, the Casselberry Police Department, the Cocoa Police Department, the Daytona Beach Police Department, the Lake Mary Police Department, the Melbourne Police Department, the Metropolitan Bureau of Investigation, the Orange County Sheriff’s Office, the Orlando Police Department, the Osceola County Sheriff's Office, the Palm Bay Police Department, the Sanford Police Department, the Seminole County Sheriff's Office, the St. Cloud Police Department, the Titusville Police Department, the Volusia County Sheriff's Office, the Winter Park Police Department, the Florida Department of Law Enforcement, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the United States Marshal’s Service, and the United States Postal Inspection Service.

These cases are being prosecuted as 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. State cases are being coordinated and prosecuted by the Eighteenth Judicial Circuit (Brevard County), the Ninth Judicial Circuit (Orange and Osceola Counties), and the Seventh Judicial Circuit (Volusia County).

The federal cases are being prosecuted by Assistant United States Attorneys E. Jackson Boggs, Jr., Chauncey Bratt, Emily C. L. Chang, Vincent S. Chiu, Tiffany L. Cummins, Christina R. Downes, Nathan Hill, Embry Kidd, Andrew C. Searle, Ilianys Rivera Miranda, Shawn P. Napier, Alejandro Salicrup, Sean Shecter, and Kara Wick.

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

For more information about the cases profiled in this release and other Project Safe Neighborhood cases throughout the Middle District of Florida, please visit our website. For more information about Project Safe Neighborhoods, please visit www.psn.gov.

Orlando, FL – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Ricardo Miguel Mayo (49, Titusville) guilty of theft of government money and aggravated identity theft. He faces a maximum penalty of 10 years in federal prison for the money theft, to be followed by 2 years’ imprisonment for the aggravated identity theft charge. His sentencing hearing is scheduled for March 16, 2017.

Mayo was indicted on September 21, 2016.

According to the evidence presented at trial, a fraudulent 2011 federal tax return in the name of an 84-year-old woman from Georgia was filed in January 2012. The fraudulent return requested that a federal tax refund in the amount of $9,874 be issued via a prepaid debit card, and that the debit card be sent to Mayo’s address. After the return was processed, Mayo received the debit card that was issued in the victim’s name.  In February 2012, when the $9,874 tax refund was loaded onto the debit card, Mayo used the card to steal and convert government money in a series of large cash withdrawals and purchases. 

This case was investigated by the St. Cloud Internal Revenue Service-Secret Service Financial Crimes Task Force, a task force comprised of the following federal, state and local law enforcement agencies: Internal Revenue Service - Criminal Investigation; the United States Secret Service; the St. Cloud Police Department; the Osceola County Sheriff’s Office; the Brevard County Sheriff’s Office; the Palm Bay Police Department; the Casselberry Police Department; the Kissimmee Police Department; the Winter Park Police Department; and the Maitland Police Department. It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.

The Recovery Is Part of a $44 Million Nationwide Civil Penalty Settlement with Payment to Be Made to the United States by Cardinal Health, Inc. and its Subsidiary, Kinray, LLC

Orlando, FL – United States Attorney A. Lee Bentley, III and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA) - Miami Field Division announce that Cardinal Health has agreed to pay $34 million in civil penalties to resolve allegations that the Lakeland, Florida-based distributor failed to report to the DEA suspicious orders of Class II by pharmacies located in central Florida and Maryland. The settlement also resolves a civil investigation in the Western District of Washington into Cardinal Health’s failure to maintain adequate records concerning Class II controlled substances in that district. 

Separately, the United States Attorney for the Southern District of New York announced that Cardinal Health has agreed to pay an additional $10 million to resolve allegations that its subsidiary, Kinray, Inc., failed to report suspicious orders by pharmacies operating in the Kinray service area. In the settlement resolving the Florida and Maryland investigations, Cardinal Health acknowledged that, from January 1, 2009, to May 14, 2012, it failed to comply with regulations requiring reports of pharmacies’ suspicious orders of certain narcotic medications.

The Controlled Substances Act imposes civil penalties when DEA registrants fail to report suspicious pharmacy orders for Class II narcotic medications. The settlement announced today imposes a civil monetary sanction for the conduct addressed in Cardinal Health’s administrative settlement executed with the DEA in 2012, which suspended Cardinal’s registration to distribute Class II narcotic medications for a period of two years. The DEA returned Cardinal’s registration in May 2014 while the civil penalty negotiations that led to today’s announcement were pending. 

“Today’s settlement with Cardinal Health, along with last year’s $22 million settlement with CVS, illustrates the coordinated response we have taken to Florida’s pill mill crisis,” stated U.S. Attorney Bentley. “Those who play a significant role in supplying Class II medications in our district must meet regulatory requirements or be held accountable.”

U.S. Attorney Bentley also thanked his colleagues U.S. Attorney Rod Rosenstein (District of Maryland), U.S. Attorney Preet Bharara (Southern District of New York), Deputy Civil Chief Tom Corcoran, Assistant U.S. Attorney Tony Pellegrino, and U.S. Attorney Annette Hayes (Western District of Washington) for their collaborative work and assistance with this investigation and settlement. In addition, the investigative work of the DEA - Orlando Field Office, under the supervision of Assistant Special Agent in Charge Jeff Walsh, played a major role in the Florida investigation.

“National pharmaceutical drug companies are not exempt from following the law,” stated Adolphus P. Wright, Special Agent in Charge for the DEA Miami Field Division. “This settlement sends out a clear message that all drug companies will be held accountable when they violate the law and threaten public health and safety.  The DEA will continue its efforts to work with our registrants and our law enforcement partners to combat pharmaceutical drug abuse and diversion in Florida.”

The Middle District of Florida investigation was conducted by the Drug Enforcement Administration’s Diversion Group, with negotiations handled by Assistant U.S. Attorneys Randy Harwell and Katherine M. Ho. 

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Skyler Christian Awad (27, Indialantic) guilty of bank robbery, carrying a firearm during and in relation to a crime of violence, attempted robbery affecting interstate commerce, possession of a firearm by a convicted felon, and other related firearm offenses. He faces a maximum penalty of 20 years, followed by a mandatory consecutive sentence of at least 5 years, in federal prison. A sentencing hearing is scheduled for March 13, 2017.

Awad was indicted on September 15, 2016.

According to testimony and evidence presented at trial, between May 12, 2016, and May 16, 2016, Awad went on a crime spree in Brevard County, when he stole a loaded .22 caliber revolver from a residence in West Melbourne. Four days later, he entered a Subway restaurant in Melbourne and attempted to rob the establishment while armed with a knife. Later that same day, he entered and robbed a TD Bank by threatening to shoot a bank teller. Law enforcement subsequently located Awad, where he then led them on a high-speed chase through residential areas and across busy intersections until he was stopped. Upon apprehension, officers recovered the stolen .22 caliber revolver and the bank money from Awad’s vehicle. As a convicted felon, Awad was prohibited from possessing a firearm or ammunition under federal law.   

This case was investigated by the Federal Bureau of Investigation, with assistance from the Melbourne Police Department, the Brevard County Sheriff’s Office, the Palm Bay Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorneys Andrew C. Searle and Chauncey A. Bratt.

Tampa, Florida - U.S. Attorney A. Lee Bentley, III announces today that the Middle District of Florida has charged more than 100 defendants in Fiscal Year 2016 as part of the Department of Justice’s Project Safe Childhood (PSC) Initiative. Since 2006, this nationwide initiative has collectively marshaled federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and identify and rescue victims of abuse. In each of the 94 U.S. Attorney’s Offices throughout the country, an Assistant United States Attorney serves as a Project Safe Childhood Coordinator, dedicated to working with law enforcement to investigate and prosecute these cases. During the 10 years the program has existed, the Middle District of Florida has charged more than 950 defendants with child exploitation offenses.

“From the beginning of Project Safe Childhood, the United States Attorney's Office for the Middle District of Florida has aggressively prosecuted sexual predators who seek to use the Internet to harm and exploit children,” stated U.S. Attorney Bentley. “Working closely with our federal, state, and local law enforcement partners, we will continue to make the prosecution of these cases a top priority.”

From October 1, 2015, through September 30, 2016, the U.S. Attorney’s Office for the Middle District of Florida, with the close assistance of local, state, and federal agencies, brought charges against 103 defendants for child exploitation offenses. The charges in those cases vary by defendant, but include attempted enticement of a minor to engage in sexual activity; production, distribution, possession and/or receipt of child pornography; and child sex trafficking. These cases (see case summaries) were brought by each of the five offices in the district. The press releases for those cases, and other PSC cases, can be found on our district website.

Project Safe Childhood cases in the Middle District of Florida are investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, the United States Secret Service, the United States Postal Inspection Service, the United States Marshals Service, and the Florida Department of Law Enforcement. The cases profiled in this release were investigated by those agencies, along with the Brevard County Sheriff’s Office, the Cape Coral Police Department, the Clay County Sheriff’s Office, the Cleburne (TX) Police Department, the Cocoa Police Department, the Columbia County Sheriff’s Office, the Jacksonville Sheriff’s Office, the Lee County Sheriff’s Office, the Metropolitan Bureau of Investigation, the Osceola County Sheriff’s Office, the Seminole County Sheriff’s Office, the St. Augustine Beach Police Department, the St. Johns County Sheriff’s Office, and the Volusia County Sheriff’s Office.

These cases were coordinated by the Middle District of Florida’s Project Safe Childhood Coordinator Assistant United States Attorney D. Rodney Brown.  Assistant United States Attorneys Robert E. Bodnar, Jr., Emily C. L. Chang, Vincent S. Chiu, Tiffany L. Cummins, Christina R. Downes, Karen L. Gable, Daniel George, William S. Hamilton, Stacie B. Harris, Rachel K. Jones, Amanda Kaiser, Kelly S. Karase, Jennifer L. Peresie, Andrew C. Searle, Ilianys Rivera Miranda, and Yolande G. Viacava prosecuted the cases.

For more information about the cases profiled in this release and other Project Safe Childhood cases throughout the Middle District of Florida, please visit our website. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Project Safe Childhood Case Summaries

Fort Myers

Yaisel Rodriguez (25, Cape Coral) was sentenced to 20 years in federal prison for production of child pornography. While agents from the FBI were executing a search warrant at his home, Rodriguez disclosed that he had recently ended a two-year relationship with a minor. A forensic examination of his computer revealed videos of the minor victim engaged in sexually explicit conduct.

Travis John Jenner (38, Naples) was sentenced to 5½ years in federal prison for distribution of child pornography. Jenner had befriended a minor online and, during a two-year period, received pornographic images of the child. Jenner subsequently distributed child pornography to an undercover detective in a group chat room. As part of his sentence, Jenner was ordered to pay $51,376 in restitution to his victim.

Jacksonville

Michael Eugene Williams (59, Jacksonville) has been charged with production of child pornography, sex trafficking of a child, advertising for child pornography, and transporting child pornography.  According to court documents, in July 2016, the Jacksonville Sheriff’s Office executed a search warrant at Williams’s residence after receiving information that he was uploading child pornography for sharing. A forensic examination of devices seized from the residence revealed that he had been texting with a woman in Texas who was producing pornographic images of her 3-year-old daughter and sending them to Williams in exchange for money.  If convicted, Williams faces a minimum mandatory penalty of 15 years, up to life, in federal prison.

Justin Laurence McKinley (49, Jacksonville) pleaded guilty to sending notices over the Internet soliciting the live molestation of children for online viewing. According to court documents, the FBI was investigating a website where individuals in a foreign country molested young children for the purpose of broadcasting live streaming “sex shows” to online viewers who paid a fee.  McKinley was identified as a customer.  Between January 2014 and December 2015, McKinley sent a total of 100 electronic fund transfers totaling $31,415 to the individuals who molested children in these “sex shows.”  He faces a minimum mandatory penalty of 15 years, up to 30 years, in federal prison.

Leonard Leland Walters  (44, Green Cove Springs) pleaded guilty to three counts of production of child pornography and one count of transportation of child pornography.  Walters had bragged to an undercover officer he met online that he was regularly having sexual intercourse with a 15-year-old. Walters offered to assist the undercover officer with sexually abusing the undercover officer’s fictitious 14-year-old “niece,” and he distributed an image of child pornography to the undercover officer. Walters faces a minimum mandatory penalty of 15 years, up to 30 years, on each production count and a minimum mandatory penalty of 5 years, up to 20 years, for the transportation count. His sentencing is set for February 1, 2017.

Kyle Adam Kirby (35, Live Oak) was arrested at the Live Oak Police Department (LOPD), where he was employed as an officer.  According to court documents, law enforcement officers executed a federal search warrant at Kirby’s residence based on an online child pornography investigation.  That same morning, the LOPD Police Chief authorized the agents to inspect and search the computer in the patrol car used by Kirby.  A forensic examination revealed that it contained at least 87 thumbnail images that either depicted minor children engaged in sexually explicit conduct or that had titles indicative of child pornography or child exploitation.  If convicted, Kirby faces a minimum mandatory penalty of 15 years, up to 40 years, in federal prison.

Jon Christopher Stoune (45, St. Johns) was sentenced to 17½ years in federal prison for attempted online enticement of a minor child to engage in sexual activity, advertising for child pornography, and attempted production of child pornography. Stoune had engaged in a series of text conversations with a person he believed to be a 14-year old child but was actually a detective with the St. Johns County Sheriff’s Office.  During the conversations, Stoune discussed in detail his desire to have sex with the “child,” engage in sadomasochistic activity, and obtain pornographic pictures of the “child.”  Stoune ultimately drove to St. Augustine Beach to meet the “child” for sex and was arrested.  He had a digital camera and several sex toys and condoms concealed in his pants pocket.  A search of his vehicle revealed a backpack containing a leather whip, a wooden paddle, a billy club, nylon restraints, and other devices designed for use in sadomasochistic activity.

 

Ocala

Alan Kenneth Thompson, Jr. (33, Crystal River) was sentenced to 11 years and 4 months in federal prison for distribution of child pornography.  After determining Thompson had been using a mobile application to post and receive multiple images of child pornography, federal agents tracked the activity to Thompson’s residence and executed a search warrant.  The devices seized from the residence contained more than 4,500 images and 84 video files of child pornography.  Thompson told agents that he recently had begun to take non-pornographic photographs of neighborhood children without their knowledge, including more than 3,000 images of a minor girl. 

William Edward Spencer (57, Yalaha) pleaded guilty to possession of child pornography.  After identifying multiple images of child pornography hosted on the Internet, federal agents traced the activity to Spencer’s residence and executed a search warrant.  The devices seized from the home contained more than 2,000 images and 140 video files of child pornography.    Spencer admitted to receiving and distributing child pornography, and he now faces up to 10 years in federal prison.  His sentencing is set for January 19, 2017. 

 

Orlando

Joshua Adam Tatro (24, Merritt Island) was sentenced to 350 years in federal prison for production, receipt, and possession of child pornography. On nine separate occasions, Tatro had produced images and videos depicting him sexually abusing a three-year-old child. He also had used a messaging app to send and receive images depicting child pornography and had uploaded images to an online account that he maintained.

Dane Gillis (59, Leesburg) was sentenced to 30 years and 5 months in federal prison for attempting to entice a minor to engage in sexual activity, soliciting an undercover federal agent to commit kidnapping, and transmitting interstate commerce threats to kidnap and injure a former co-worker. Gillis had posted an ad on Craigslist stating, “Looking for a guy or group who r into extremely taboo scenes. Hi risk and reward for the right sadistic Pervert.” An undercover agent responded to the ad and stated that he was the father of an 11-year-old daughter. Gillis communicated with the agent through email and text for two weeks and made arrangements to have sex with the “child.” He also solicited the agent to help him kidnap and rape a former co-worker. He was arrested after attempting to meet the “father and child.”

Kennedy Harris, Jr. (23, Cocoa) was convicted by a jury of sex trafficking a child and production of child pornography. Harris had taken in his victim, a 16-year old girl, after she ran away from home.  He then took sexually suggestive photographs of her and advertised her for sex on Backpage.com.  Harris also enticed the teen to engage in sexually explicit conduct for the purpose photographing her.  Over the course of approximately two weeks, the victim had sex with up to eight men per day, giving the money she received to Harris.  In exchange for her sex acts, Harris gave the victim crack cocaine nearly every day. Harris is facing a minimum mandatory penalty of 15 years, up to life, in federal prison. Sentencing is set for January 9, 2017. 

Timothy Michael Sedlak (43, Ocoee) was sentenced to 42 years in federal prison for production and possession of child pornography. Sedlak had taken photographs of himself sexually abusing a small child on two separate occasions.  The first incident took place in 2009, when the victim was a year old, and the second incident took place in 2011, when the same victim was three years old.  The images of Sedlak abusing the victim were discovered when United States Secret Service agents executed a search warrant on Sedlak’s home as part of an unrelated computer intrusion investigation.  In addition to the images of the victim, agents discovered hundreds of images of child pornography on Sedlak’s computers.    

 

Luis Serrano (24, Orlando) was sentenced to 20 years in federal prison for production of child pornography. Serrano had befriended a minor victim on a chat website when she was 13 years old and, during the next two years, persuaded and directed her to engage in sexual activity during live video chats that he recorded. Serrano also persuaded the child to record herself engaging in sex acts and send the images to him. 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 between five and ten individuals.

Ricky Delano Sheppard (59, Melbourne), a former Spessard Holland Elementary School principal, was sentenced to 6 ½ years in federal prison for receiving child pornography.  In June 2016, agents had executed a search warrant at Sheppard’s residence. A forensic examination of his computer media revealed thousands of images depicting child pornography, the majority of which depicted young boys, including toddlers, engaging in sexual acts. 

 

Tampa

Alysia N. Algere a/k/a “Coco” (29, Tampa) was sentenced to 15 years in federal prison for sex trafficking three minors.  Algere had recruited two minor boys and a minor girl, who were between 14 and 16 years old, to engage in commercial sex acts.  She took sexually explicit photos of the minors and posted advertisements on the Internet selling them for sex.

Maurice Williams (26, Tampa) and his brother, Antawan Hudson (31, Tampa), were sentenced to 40 years in federal prison and 30 years in federal prison, respectively, for sex trafficking minors.  Williams had conspired with Hudson to traffic underage girls by fraud, force, and coercion in the commercial sex trade. The brothers worked together to post online prostitution ads for the victims and then transported the girls throughout central Florida to have sex with customers. After the victims had sex with the customers, Williams and Hudson took some or all of the money and, in exchange, offered the victims drugs, alcohol, and beauty appointments. 

Larry Urwiler  (68, Dunedin) has pleaded guilty to enticement of a minor.  According to court documents, Urwiler responded to an advertisement posted on Craigslist where an undercover agent posed as a mother of the 13-year-old girl. Urwiler texted the “mother” and indicated that he would engage in sexual activities with the “child” and teach the “child” about oral sex.  Urwiler ultimately drove to Lee County to meet the "child."  He brought lubricant to engage in sexual activity and a teddy bear for the child.  He is facing a minimum mandatory penalty of 10 years, up to life, in federal prison.

Jorge Valencia (43, St. Petersburg) was sentenced to 12 years and 11 months in federal prison for receiving child pornography and attempting to entice a minor.  An undercover FBI task force officer had discovered that Valencia was sharing child pornography using an online file-sharing program. A search warrant was executed at his residence and several of his electronic devices were seized. The forensic analyses revealed that Valencia had been using a phone messaging app since at least 2012 to chat with individuals he believed to be under the age of 18 for the purpose of soliciting sexually explicit pictures from them. A large collection of child pornography, including numerous videos and images depicting children under the age of 12, were also found on his devices.       

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Eric Leon Ager (77, Clearwater) today 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 over $10.3 million in restitution to his victims. His sentencing hearing has been set for March 13, 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 and his brother, Irwin Charles Ager (84, Lake Mary), were marketing directors for Tri-Med Associates, the “marketing arm” of Tri-Med. Both were 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 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, the Ager brothers and other 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, the conspirators represented to investors 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 protection letter 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.”

On December 2, 2016, Irwin Charles Ager pleaded guilty to conspiracy to commit mail fraud and wire fraud. He faces up to 20 years in federal prison and has agreed to pay over $10.3 million in restitution to his victims. His sentencing hearing has been set for February 17, 2017.

Commissioner Drew J. Breakspear said, “The Florida Office of Financial Regulation thanks the United States Attorney’s Office for the Middle District of Florida and the United States Secret Service for their diligent effort to bring this individual to justice. We will continue to work with our partners to protect Floridians and combat financial crime.”

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.

Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Timothy Dale Washington, II (33, Tampa) to 15 years in federal prison for possessing a firearm and ammunition as a convicted felon. The Court also ordered him to forfeit the firearm and ammunition used in the offense. He pleaded guilty on September 12, 2016.

According to court documents, on January 24, 2016, deputies from the Hillsborough County Sheriff’s Office located Washington at an apartment complex in Tampa, pursuant to an outstanding arrest warrant. As the deputies announced their presence and approached Washington, he removed a pistol from his pants, dropped it, and fled. The deputies apprehended and arrested Washington. At the time, Washington had multiple prior felony convictions for violent offenses and serious drug offenses, 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.

Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Adam Longoria (30, Wimauma) to 15 years in federal prison for being a felon in possession of a firearm. Longoria pleaded guilty on September 28, 2016. As part of his plea, he agreed to forfeit any rights to the following items: a Mossberg International 715T (.22 caliber) semi-automatic rifle; a Glock 22 (.40 caliber) pistol; a Glock 43 (9mm) pistol; 15 rounds of .40 caliber ammunition; and a Savage Arms (.22 caliber) rifle.

According to court documents, in March 2015, a detective with the Hillsborough County Sheriff’s Office (HCSO) was using social media to identify illegal firearms sales. The detective observed a Facebook profile in the name of Adam Longoria selling a .22 caliber AR-15 style rifle for $300. He also observed Longoria “throwing” gang hand signs and confirmed that Longoria had been previously documented by HCSO as a Westside Bloods gang member. Additionally, the detective discovered that Longoria was a convicted felon who was currently on federal supervised release, after being released from federal prison for cocaine trafficking.

On March 17, 2015, the detective, working in an undercover capacity, sent Longoria a private Facebook message inquiring about the AR-15. Longoria stated that he still had the rifle for sale and told the deputy to meet him at a Walmart in Plant City.

Once the detective arrived at the location, Longoria advised, by phone, that his “wife” would sell the rifle at another location. Next, the detective met with a woman, who informed the deputy that the rifle was in the back of her vehicle. The detective then retrieved the rifle from the back of the vehicle and paid the female $300. The gun purchased was a Mossberg International 715T (.22 caliber) semi-automatic rifle.

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 Shauna S. Hale.

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, Florida – U.S. District Judge Susan C. Bucklew today sentenced Delexsia Harris (24, Bradenton) to 10 years in federal prison for witness tampering and obstruction of justice. A federal jury found her guilty on September 22, 2016.

According to testimony presented during the four-day trial, Harris threatened and intimidated multiple persons who were scheduled as witnesses in the trial of United States v. Nathaniel Harris et al., which occurred this summer. Harris threatened and intimidated witnesses in person and on social media, threatening to hurt and murder individuals cooperating with law enforcement, and telling one victim that Ms. Harris’s family would kill her and her children. Testimony also demonstrated that Harris had helped a defendant in that case solicit a false alibi.

In addition, testimony and evidence showed that Harris had lied to law enforcement officers following the July 3, 2012, murder of Ceola Lazier. Prosecutors presented evidence that she had participated in the murder, with her brother and another man, and later had told police officers that the killers were two unknown men driving a white Mercedes Benz. Harris’s brother, Charlie Green, and the other man, Jerry W. Green, were convicted of the shooting death of Lazier following the trial of United States v. Nathaniel Harris et al.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Natalie Adams and Shauna Hale.

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Quentin Cephus (30, Tampa) today pleaded guilty to forcibly assaulting and inflicting bodily injury on a federal employee, while that employee was carrying out his official duties. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been scheduled.

According to court documents, on February 9, 2016, Cephus approached a U.S. Bureau of Prisons (BOP) official who was conducting an audit at the Hillsborough County Residential Reentry Center. Cephus, who was a resident at the reentry center, punched the official in the face with a closed fist and inflicted bodily injury on him. Moments later, he spat in the official’s face. 

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Kaitlin R. O’Donnell and Mandy Riedel.

Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Edrey Santo Rojas (31, Fort Myers) to three years and nine months in federal prison for access device (credit card) fraud and aggravated identity theft. He pleaded guilty on August 31, 2016.

According to the plea agreement, between December 9, 2014, and August 8, 2015, Santo Rojas used unauthorized credit card information at retail establishments, including the Nike Factory Store, Target, Kay Jewelers, McDonalds, and the Home Depot to acquire items using the credit card information of others without lawful authority. 

This case was investigated by the Federal Bureau of Investigation, with assistance from the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael C. Baggé-Hernández.

Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Josiah Hutton (60, Winter Haven) with concealment of assets and embezzlement from a bankruptcy estate. If convicted, he faces a maximum penalty of five years in federal prison on each count. 

According to the indictment, Hutton was retained to represent a debtor who was planning to file for bankruptcy. In anticipation of filing a bankruptcy petition, Hutton received a settlement check, which was the property of the debtor’s bankruptcy estate, that he deposited into his attorney escrow account. Hutton prepared and certified the debtor’s bankruptcy petition but failed to list the settlement check as an asset, thereby concealing it from creditors and the bankruptcy court.  Subsequent to the filing of the debtor’s petition, Hutton embezzled a large portion of the settlement check for his own personal use.

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 Federal Bureau of Investigation and the Florida Department of Law Enforcement, with assistance from the Office of the United States Trustee for the Middle District of Florida, Tampa Division. It will be prosecuted by Special Assistant United States Attorney Chris Poor.

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.

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. 

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.

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.

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.

 

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.

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.

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.

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, 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.

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.

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.

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.

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.

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.

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.

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, 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.

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, 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.