Middle District of Florida

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury found Jason Alexander Phifer (33, DeLand) guilty of possession with intent to distribute ethylone, commonly marketed as the street drug “Molly.” He faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for December 5, 2016.  Phifer was indicted on February 10, 2016.

According to evidence presented at trial, 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 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 is being prosecuted by Assistant United States Attorneys Vincent S. Chiu and Sean P. Shecter.

Jacksonville, FL – United States Attorney A. Lee Bentley, III announces today that Andy Miller, Tracy Miller, and the Healthmark Investment Trust have agreed to pay to the government $7.75 million to resolve allegations that they violated the False Claims Act.

The United States contends that QMedRx, a compound pharmacy in Maitland, Florida, knowingly billed federal healthcare programs for services that were not reimbursable.  Specifically, the government contends that from January 1, 2013, until January 22, 2014, QMedRx submitted to federal healthcare programs, compounded prescriptions that were tainted within the meaning of the Anti-Kickback Statute. Because Healthmark Investment Trust was a partial owner of QMedRx, the government sought penalties and fines from the owners who participated in the fraud. The government is still pursuing penalties and fines from other owners and participants within QMedRx. 

“The United States Attorney’s Office is committed to protecting TRICARE and other federal health care programs from fraud,” said U.S. Attorney Bentley.  “Those who violate the Anti-Kickback Statute to generate business will be held accountable.” 

This case was developed through an initiative to track and prosecute compound pharmacies that submitted millions of dollars in improper claims to the TRICARE program.  The government estimates that up to $2 billion of tainted and unnecessary compound prescriptions were submitted and paid by the government.  In the Middle District of Florida, the government has recovered almost $60 million in fines and penalties over the past 18 months. 

“We appreciate the support from the Department of Justice in protecting the TRICARE benefit from fraud and helping to ensure the benefit continues to exist for our service members, families, and retirees,” said Vice Admiral R. Bono, Director, Defense Health Agency.

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 $30.5 billion through False Claims Act cases, with more than $18.4 billion of that amount recovered in cases involving fraud against federal health care programs.

This matter was investigated by the Defense Criminal Investigative Service (DCIS) and the Federal Bureau of Investigation (FBI). 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. 

Fort Myers, FL – Regions Bank (Regions) has agreed to pay $52.4 million to the United States to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Department of Justice announced today.  Regions is headquartered in Birmingham, Alabama.

“The FHA insurance program plays a critical role in the stability of the housing market,” said U.S. Attorney for the Middle District of Florida A. Lee Bentley III.  “Lender misconduct that puts this program at risk will not be tolerated.”                                                            

“Mortgage lenders that participate in the FHA insurance program must follow the requirements intended to safeguard its integrity and to protect homeowners,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “We will continue to hold responsible lenders that knowingly violate these important requirements.”

Since at least January 2006, Regions has participated as a direct endorsement lender (DEL) in the FHA insurance program.  A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance.  If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan.  Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance but instead relies on the efforts of the DEL to verify compliance.  DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.

As part of the settlement announced today, Regions admitted that between Jan. 1, 2006, and Dec. 31, 2011, it certified for FHA insurance certain mortgage loans that did not meet certain HUD underwriting requirements regarding borrower creditworthiness.  In addition, between Jan. 1, 2006 and Dec. 31, 2011, Regions did not maintain a quality control (QC) program that fully complied with the requirements established by HUD.  Regions’ QC Department did not consistently review an adequate sample of FHA-insured loans.  Moreover, to the extent that Regions’ QC Department identified deficiencies during the course of its loan review, Regions engaged in a pattern of “curing” QC findings by obtaining documentation that was not available to the underwriter at the time the loan was approved.  As a result, the defect rate reported to senior management was understated.  Regions also failed to review Early Payment Default (EPD) loans in accordance with HUD guidelines.  Regions was required to review all loans that became 60 days past due within the first six months.  Nevertheless, at certain times prior to 2011, as part of its EPD review, Regions reviewed only those loans that became 90 days past due.

Additionally, Regions did not fully adhere to HUD’s self-reporting requirements.  During the period between Jan. 1, 2006, and Dec. 31, 2011, the HUD Handbook required lenders to report “findings of fraud” or “other serious violations” or “serious material deficiencies” to HUD.  Although Regions’ monthly QC reviews identified numerous FHA-insured loans for that period that contained material deficiencies, Regions did not begin self-reporting these materially deficient loans to HUD until 2011.

As a result of Regions’ conduct and omissions, HUD insured hundreds of loans approved by Regions that were not eligible for FHA mortgage insurance under the DEL program and that HUD would not otherwise have insured.  HUD subsequently incurred substantial losses when it paid insurance claims on those loans.

“FHA-approved lenders have a responsibility to ensure that FHA-insured loans meet our standards, which are in place for the protection of FHA’s insurance fund,” said Helen Kanovsky, HUD’s General Counsel.  “The agreement we announce today should serve as a reminder that sustainable homeownership starts with compliance with underwriting requirements.”

“This settlement resolves allegations that a financial institution, trusted to comply with FHA loan origination, underwriting and quality control requirements, failed to meet its obligations as a participant in the FHA program,” said Inspector General David A. Montoya for HUD.  “The bank’s actions impact the solvency of the FHA insurance fund.  It is through the combined efforts of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, HUD and the Office of Inspector General that we continue to ensure the integrity of this important FHA program to American homeowners.”

The settlement was the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida.  It was handled by Assistant U.S. Attorneys Jason Mehta and Kyle Cohen of the Middle District of Florida, and Trial Attorney Michael D. Kass of the Justice Department’s Civil Division. The claims asserted against Regions are allegations only, and there has been no determination of liability.

Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Junipher Sayers, formerly Junipher Layne, (34, Cape Coral) to three years in federal prison for wire fraud. The Court also ordered her to repay $1,132,160.91 in restitution to the victim, Tigrent, Inc., and an additional $1,132,160.91 to the United States in forfeiture, representing the proceeds she obtained as a result of the offenses.  

According to the plea agreement, between January 28, 2013, and June 2015, Sayers devised and carried out a sophisticated scheme to defraud Tigrent, Inc. Sayers, formerly an accounts payable clerk, stole money from the company by submitting and processing fraudulent invoices for payment. Sayers then directed those payments to several shell companies that she had created and controlled for the purpose of carrying out her scheme. She spent large amounts of the stolen money on consumer goods and other items.

This case was investigated by the Federal Bureau of Investigation and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Charles D. Schmitz.

Tampa, FL – U.S. District Judge Charlene Edwards Honeywell today sentenced Andre Dwight Stewart to eight years and five months in federal prison for theft of government property and aggravated identity theft related to the filing of false federal income tax returns using stolen identities. The Court also ordered him to pay $230,005 in restitution to the Internal Revenue Service, which are the traceable proceeds to his offenses. Stewart pleaded guilty on June 21, 2016.

According to court documents, on July 11, 2013, officers with the Tampa Police Department searched a vehicle in which Stewart was a passenger. Pursuant to that search, agents recovered a red Swiss Gear laptop bag containing computers and notebooks, all of which belonged to Stewart. During a search of Stewart’s wallet, investigators recovered five reloadable debit cards, three of which were in Stewart’s name, and all of which had been loaded with fraudulently obtained tax refunds. Investigators also recovered ATM images showing Stewart withdrawing cash using these debit cards.

From inside Stewart’s bag, technicians found Stewart’s fingerprints on various pages of a composition notebook that contained 47 pieces of personally identifiable information (PII), including names, DOBs, and SSNs. Of these, at least nine income tax returns using this PII were filed for the 2011 tax year. Stewart’s fingerprints were also found on the inside cover of a Mario Kart/Wii themed notebook recovered from the computer bag. Agents identified approximately 27 pieces of PII contained in that notebook, of which four income tax returns using this PII were filed for the 2012 tax year. 

Based on a review of the evidence, investigators determined that Stewart and others filed and caused to be filed fraudulent tax returns claiming over $600,000 in fraudulent refunds.

This case was investigated by the Tampa Police Department and the Internal Revenue Service - Criminal Investigations. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Tampa, FL – United States Attorney A. Lee Bentley, III announces today that a federal jury found Matheus William Geronasso (23, Tampa) guilty of attempted sex trafficking of a child. He faces a minimum mandatory penalty of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for December 14, 2016. Geronasso was indicted on March 29, 2016.

According to evidence presented at trial, Geronasso responded to an advertisement posted on Backpage.com by a person looking for individuals willing to pay to have sex with his girlfriend’s 14-year-old daughter. Unbeknownst to Geronasso, the ad had been placed by an undercover agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Geronasso sent several text messages stating that he wanted to have sex with the 14-year-old girl. After negotiating the price, Geronasso drove to the designated location, met with an undercover agent, and paid to have sex with the child.

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Josephine W. Thomas.

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 the return of an indictment charging Bobbi Gibson (45, Mount Dora) with 30 counts of wire fraud.  If convicted, she faces a maximum penalty of 20 years in federal prison on each count.  The indictment also notifies Gibson that the United States is seeking a money judgment in the amount of at least $1.5 million, the proceeds of the wire fraud scheme.

According to the indictment, Gibson, who owned and operated Agency for Behavioral Services, Inc., defrauded the Department of Defense’s TRICARE program by fraudulently certifying that paraprofessional providers she employed had received the required 40 hours of classroom training in Applied Behavior Analysis techniques. Gibson then assigned these unqualified individuals to provide one-on-one autism services to military family members diagnosed with Autism Spectrum Disorders, and caused TRICARE to be billed for these services.

“This indictment is yet another example of the continuing commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program,” said Special Agent in Charge John F. Khin, Southeast Field Office. "As one of our top priorities, DCIS aggressively investigates health care fraud that harms the DoD, to ensure the best use of precious taxpayer dollars needed to provide critical care for our Warfighters, their family members, and military retirees."

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

This case was investigated by the Defense Criminal Investigative Service.  It will be prosecuted by Assistant United States Attorney Bob Mosakowski.

Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Ralph Darel Lipsey (28, Miramar) to 30 months in federal prison for manufacturing and passing counterfeit Federal Reserve notes. As part of the sentence, the Court ordered Lipsey to pay restitution to the various businesses he defrauded.  The Court also ordered Lipsey to forfeit the monetary proceeds he obtained by passing the notes, as well as the computer media he used to manufacture them.  

According to court documents, in January 2015, Lipsey and his co-defendants, Marcos Rogelio Blake and Leon White, passed or attempted to pass counterfeit Federal Reserve notes at multiple businesses in Nassau County. Law enforcement officers subsequently issued an alert for the three men. On January 17, 2015, a deputy from the Nassau County Sheriff’s Office stopped a vehicle with the three men inside. Blake, who was driving the vehicle, was detained due to a suspended license. During a search, the deputy found genuine and counterfeit bills on Blake. An inventory search of the vehicle yielded $1,600 in additional counterfeit notes and a lock box. The lock box contained computer media and supplies used to manufacture counterfeit bills.

Marcos Rogelio Blake (25, New York) and Leon White (30, Orlando) previously pleaded guilty for their roles in this case. Blake was sentenced to 18 months in federal prison and White was sentenced to time served, followed by three years of probation.

This case was investigated by the Nassau County Sheriff’s Office and the United States Secret Service, Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.

Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging William A. Dennis (55, Spring Hill) and Thomas Herris Sigler, III (45, Land O’ Lakes) with conspiracy to interfere with an interracial couple’s enjoyment of their constitutionally protected housing rights. Dennis is also charged with making false statements to federal law enforcement officers. If convicted on all counts, Dennis faces a maximum penalty of 15 years in federal prison, and Sigler faces a maximum penalty of 10 years in federal prison. 

According to the indictment, in 2012, Dennis and Sigler were living on Seward Drive in Port Richey. After an interracial couple moved next door to the house where Sigler was residing, the men repeatedly made racial slurs and racially derogatory statements to the African-American neighbor, which escalated to verbal and physical threats.

On Halloween night, Dennis and Sigler attended a party at a neighbor’s house, where the they and several other Seward Drive residents conspired to burn a cross in the African-American man’s yard to intimidate him. The conspirators constructed a wooden cross and obtained a flammable liquid to pour on the cross. They then carried the cross to the victims’ front yard, leaned it against the victims’ mailbox, and lit the cross on fire. 

“Hate-motivated crimes will not be tolerated in our community,” said U.S. Attorney Bentley. “This case underscores our commitment to prosecute those who commit crimes driven by hatred or intolerance.”

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

This case was investigated by the Federal Bureau of Investigation.  It will be prosecuted by Assistant United States Attorneys Josephine W. Thomas and Simon A. Gaugush, with assistance from the Department of Justice’s Civil Rights Division.

After 12 weeks of trial, six defendants have been convicted for their roles in wide-ranging racketeering and drug distribution conspiracies that involved seven murders, firearms offenses and related criminal conduct.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida and Special Agent in Charge Daryl McCrary of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Tampa, Florida, made the announcement.

Nathaniel Harris, 25, aka Popo; Napoleon Harris, 32, aka Pole; Charlie Green, 29, aka Mr. 30N32; Jerry Green, 30, aka Jerk; Corey Harris, 26, aka James; and Deonte Martin, 31, aka Tang, all of Bradenton and St. Petersburg, Florida, were each convicted today of one count of drug distribution conspiracy.  Nathaniel Harris, Napoleon Harris, Charlie Green, Jerry Green and Martin were each convicted of one count of racketeering conspiracy.  In addition, Nathaniel Harris was convicted of two counts of murder and one count each of attempted murder, armed kidnapping, maintaining a house used for drug distribution, use of a firearm in furtherance of maintaining a drug house, possession with intent to distribute cocaine base and cocaine, use of a firearm in furtherance of drug crimes, felon in possession of ammunition and felon in possession of firearms and ammunition; Charlie Green was convicted of three counts of murder; Jerry Green was convicted of two counts of murder; Napoleon Harris was convicted of one count of murder and one count of felon in possession of ammunition; and Martin was convicted of one count each of murder, possession with intent to distribute cocaine base, possessing a firearm in furtherance of drug trafficking and felon in possession of a firearm. Corey Harris pleaded guilty during trial to three counts of distribution of crack cocaine.

According to evidence presented at trial, the defendants were members of a racketeering enterprise that controlled illicit drug distribution and committed murders for hire in and around Bradenton, a small community in Manatee County, Florida.  From about 2006 through 2014, evidence showed that the defendants were responsible for murdering seven individuals who had crossed members of the enterprise in some fashion or whom members had been hired to murder.  One of the murder victims was gunned down at a community center in front of hundreds of children and their parents.  Evidence presented at trial also demonstrated that the racketeering enterprise attempted to murder an eighth individual who survived but is now paralyzed and confined to a wheelchair.

Evidence presented at trial showed that the defendants’ enterprise maintained a number of so-called “trap houses” that were used to distribute cocaine, cocaine base, MDMA, oxycodone and marijuana, and used extreme violence to collect drug debts and enforce its control of the drug trafficking in its territory.  The enterprise also used threats of violence to prevent members of the community from testifying against enterprise members. 

Twelve enterprise members and co-conspirators previously pleaded guilty to drug trafficking, firearms and other offenses in connection with this case.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Attorney’s Office of the Middle District of Florida investigated the case, with assistance from other federal and state and local law enforcement agencies.  Assistant U.S. Attorneys Christopher Murray, Natalie Adams and Walter “Terry” Furr of the Middle District of Florida, and Trial Attorney Marty Woelfle of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.   

Tampa, FL – After 12 weeks of trial, six defendants have been convicted for their roles in wide-ranging racketeering and drug distribution conspiracies that involved seven murders, firearms offenses and related criminal conduct.

U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Daryl McCrary of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Tampa, Florida, made the announcement.

Nathaniel Harris, 25, aka Popo; Napoleon Harris, 32, aka Pole; Charlie Green, 29, aka Mr. 30N32; Jerry Green, 30, aka Jerk; Corey Harris, 26, aka James; and Deonte Martin, 31, aka Tang, all of Bradenton and St. Petersburg, Florida, were each convicted today of one count of drug distribution conspiracy.  Nathaniel Harris, Napoleon Harris, Charlie Green, Jerry Green and Martin were each convicted of one count of racketeering conspiracy.  In addition, Nathaniel Harris was convicted of two counts of murder and one count each of attempted murder, armed kidnapping, maintaining a house used for drug distribution, use of a firearm in furtherance of maintaining a drug house, possession with intent to distribute cocaine base and cocaine, use of a firearm in furtherance of drug crimes, felon in possession of ammunition and felon in possession of firearms and ammunition; Charlie Green was convicted of three counts of murder; Jerry Green was convicted of two counts of murder; Napoleon Harris was convicted of one count of murder and one count of felon in possession of ammunition; and Martin was convicted of one count each of murder, possession with intent to distribute cocaine base, possessing a firearm in furtherance of drug trafficking and felon in possession of a firearm. Corey Harris pleaded guilty during trial to three counts of distribution of crack cocaine.

According to evidence presented at trial, the defendants were members of a racketeering enterprise that controlled illicit drug distribution and committed murders for hire in and around Bradenton, a small community in Manatee County, Florida.  From about 2006 through 2014, evidence showed that the defendants were responsible for murdering seven individuals who had crossed members of the enterprise in some fashion or whom members had been hired to murder.  One of the murder victims was gunned down at a community center in front of hundreds of children and their parents.  Evidence presented at trial also demonstrated that the racketeering enterprise attempted to murder an eighth individual who survived but is now paralyzed and confined to a wheelchair.

“Today, first and foremost, our thoughts are with the families of the victims murdered by these defendants.  We are thankful that they have finally received the justice they deserve.  These six individuals were part of a ruthless criminal enterprise that, for too long, preyed on the community by committing seven murders and countless other acts of violence.  These men engaged in an escalating gang war, culminating with the public execution of Brenton Coleman during the first day of pee wee football in Bradenton,” stated U.S. Attorney Bentley.  “We are grateful for the many community members who bravely came forward and testified, despite a systematic effort at witness intimidation.  Today’s verdicts demonstrate the Department of Justice’s commitment to combating gang violence and drug trafficking.  Working in partnership with federal, state, and local law enforcement, we will continue to prosecute gang members and work to make our neighborhoods safer.”

Evidence presented at trial showed that the defendants’ enterprise maintained a number of so-called “trap houses” that were used to distribute cocaine, cocaine base, MDMA, oxycodone and marijuana, and used extreme violence to collect drug debts and enforce its control of the drug trafficking in its territory.  The enterprise also used threats of violence to prevent members of the community from testifying against enterprise members.  

Twelve enterprise members and co-conspirators previously pleaded guilty to drug trafficking, firearms and other offenses in connection with this case.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Attorney’s Office of the Middle District of Florida investigated the case, with assistance from other federal and state and local law enforcement agencies.  Assistant U.S. Attorneys Christopher Murray, Natalie Adams and Walter “Terry” Furr of the Middle District of Florida, and Trial Attorney Marty Woelfle of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.  

The medical director of a clinic in Orlando, Florida, was charged in a superseding indictment filed today for his alleged participation in a $13.8 million health care fraud scheme involving claims for expensive prescription drugs and physical therapy. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Miguel Burgos, M.D., 60, of Gotha, Florida, was charged with one count of conspiracy to commit health care fraud, one count of health care fraud and one count of conspiracy to make false statements relating to health care matters.  He is charged along with Yosbel Marimon, 39, of Winter Park, Florida, who was charged in the original indictment filed in this case on June 15, 2016.  Marimon faces one new count of health care fraud in connection with false claims submitted for physical therapy.  A trial date on the superseding indictment has not yet been set.

Burgos was the medical director of several Orlando-area clinics, including Legend Medical & Rehabilitation Inc., Incare Medical & Rehab Center Inc., Assisting Health Center Inc. and CKD Health Care Inc. (collectively, the clinics).  The superseding indictment alleges that from approximately July 2008 through December 2011, Burgos conspired with Marimon, one of the clinics’ owners, to defraud Medicare by causing the submission and concealment of false and fraudulent claims to Medicare.  According to the indictment, Burgos allegedly signed fraudulent medical records that authorized the unnecessary treatment of Medicare beneficiaries and did so without examining the Medicare beneficiaries or the documents themselves.  These documents were allegedly used to support fraudulent claims to Medicare for expensive prescription drugs and physical therapy that were not provided and were not medically necessary.

The indictment alleges that during the scheme, Burgos and his co-conspirators billed Medicare approximately $13.8 million based on the false and fraudulent claims. 

An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Middle District of Florida.  Fraud Section Trial Attorney Timothy Loper is prosecuting the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Tampa, FL – The medical director of a clinic in Orlando, Florida, was charged in a superseding indictment filed today for his alleged participation in a $13.8 million health care fraud scheme involving claims for expensive prescription drugs and physical therapy. 

U.S. Attorney A. Lee Bentley III of the Middle District of Florida,  Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Miguel Burgos, M.D., 60, of Gotha, Florida, was charged with one count of conspiracy to commit health care fraud, one count of health care fraud and one count of conspiracy to make false statements relating to health care matters.  He is charged along with Yosbel Marimon, 39, of Winter Park, Florida, who was charged in the original indictment filed in this case on June 15, 2016.  Marimon faces one new count of health care fraud in connection with false claims submitted for physical therapy.  A trial date on the superseding indictment has not yet been set.

Burgos was the medical director of several Orlando-area clinics, including Legend Medical & Rehabilitation Inc., Incare Medical & Rehab Center Inc., Assisting Health Center Inc. and CKD Health Care Inc. (collectively, the clinics).  The superseding indictment alleges that from approximately July 2008 through December 2011, Burgos conspired with Marimon, one of the clinics’ owners, to defraud Medicare by causing the submission and concealment of false and fraudulent claims to Medicare.  According to the indictment, Burgos allegedly signed fraudulent medical records that authorized the unnecessary treatment of Medicare beneficiaries and did so without examining the Medicare beneficiaries or the documents themselves.  These documents were allegedly used to support fraudulent claims to Medicare for expensive prescription drugs and physical therapy that were not provided and were not medically necessary.

The indictment alleges that during the scheme, Burgos and his co-conspirators billed Medicare approximately $13.8 million based on the false and fraudulent claims. 

An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Middle District of Florida.  Fraud Section Trial Attorney Timothy Loper is prosecuting the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Alfredo Castaneda-Pozo (30, Tampa) to five years and three months in federal prison for conspiracy to commit bank fraud and bank fraud. The Court also entered a restitution order in the amount of $429,044.96, to be paid to the victims of the offenses.  Castaneda pleaded guilty on May 9, 2016.

According to court documents, from approximately May 2013 through 2015, Castaneda was a leader of a group of conspirators who stole rent payments from rent collection boxes at more than 90 apartment complexes across Florida and in Georgia.  The conspirators staked out the drop boxes, burglarized them, and kept the money orders that the victim renters had purchased to pay their rent.  The conspirators then washed or altered the original money orders, replacing the original names with their own names, and deposited the stolen money orders into accounts under their control at several banks located throughout Hillsborough and Pinellas Counties.  They shared in the proceeds of the thefts, which totaled more than $429,000. 

Six of Castaneda’s coconspirators were charged in a related case. Each previously pleaded guilty and has been sentenced as follows:

          Juan Carlos Miranda-Noda was sentenced on September 8, 2015, to eight years and one month in federal prison.           

Yensy Guevara was sentenced on January 11, 2016, to 15 months’ imprisonment.

          Heysy Puente-Lopez was sentenced on January 12, 2016, to time served.

          Yamileysi Martell-Guillen was sentenced on January 14, 2016, to 12 months’ imprisonment.

          Isnelis Torres-Limonta was sentenced on January 15, 2016, to 15 months’ imprisonment. 

          Lazaro Velazques was sentenced on February 19, 2016, to 21 months’ imprisonment. 

This case was investigated by the United States Secret Service, the Clearwater Police Department, the Hillsborough County Sheriff’s Office, the Tampa Police Department, the Pasco County Sheriff’s Office, the Temple Terrace Police Department, the St. Petersburg Police Department, the Largo Police Department, the Bradenton Police Department, the Sarasota Police Department, the Sarasota County Sheriff’s Office, the Manatee County Sheriff’s Office, and the Palmetto Police Department.  It was prosecuted by Assistant United States Attorneys Amanda Riedel and Megan Kistler.

Tampa, FL – United States Attorney A. Lee Bentley, III announces that Sidney C. Hines (67, New Port Richey) has pleaded guilty to false impersonation of a federal officer or employee of the United States.  He faces a maximum penalty of three years in federal prison. 

According to court documents, Hines received a mortgage loan secured by his home in New Port Richey and subsequently fell behind on his mortgage payments.  In an effort to help delinquent borrowers such as Hines, the Federal National Mortgage Association (“Fannie Mae”) created the HomeSaver Advance (“HSA”) loan program to help delinquent borrowers remain in their homes. On October 8, 2008, Hines obtained a HSA loan, funded by Fannie Mae, for $5,863.73.

Hines failed to make the required payments on his HSA loan and the loan was turned over to ClearSpring Loan Services, a debt collection agency.  Beginning in March 2013 and continuing through the end of 2014, Hines impersonated United States Senator Richard Durbin on multiple occasions in telephone calls he made to ClearSpring. During those calls, acting as Senator Durbin, he stated that Hines’s HSA loan had been paid in full and that the loan should be removed from his credit report. 

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

Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Donald St. Louis to 15 months in federal prison for theft of government funds.  As part of his sentence, the Court entered a money judgment in the amount of $146,929.40, the proceeds he unlawfully obtained. St. Louis pleaded guilty on April 21, 2016.

According to court documents, between July 2007 and July 2012, St. Louis knowingly and willfully stole and converted to his own use benefit payments under the Title II Federal Old-Age, Survivors, and Disability Insurance Program, from the Social Security Administration (SSA). St. Louis had been approved to receive Social Security disability benefits in 2005, but he returned to work a short time later without notifying the SSA. As a result of his failure to report his employment activity and improvement in medical condition to the SSA, St. Louis collected $146,929.40 in unlawful benefit payments. 

This case was investigated by the Social Security Administration Office of Inspector General, Office of Investigations. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.

Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Yannier Arias to eight years and six months in federal prison for conspiracy, aggravated identity theft, and access device fraud.  The Court also ordered him to forfeit $17,343.62, which is traceable to proceeds of the offenses.  A federal jury found Arias guilty on April 21, 2016.

According to court documents, Arias first conspired with another Tampa man, Dariel Sardinas Lopez, to “skim” credit card numbers from identity theft victims at various gas stations in Hillsborough, Pinellas, and Sarasota counties; produce counterfeit credit cards encoded with that stolen account information; and then use those counterfeit cards to make thousands of dollars of fraudulent purchases in Florida and Michigan. After Lopez was arrested, Arias entered a second conspiracy with Jose Ojeda Vera, another Tampa man. It again involved the use of counterfeit cards encoded with the account information of identity theft victims to make similar purchases, including at luxury retailers such as Versace, Armani, and Louis Vuitton. All of the victims still had their cards in their possession when they learned that their accounts had been unlawfully used.

Sardinas Lopez previously pleaded guilty and was sentenced in July 2015 to four years in federal prison.  Ojeda Vera has been charged for his role in the case and is currently a fugitive.

This case was investigated by the United States Secret Service, the Florida Department of Law Enforcement, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Eric Gerard.

Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Angelica M. Morman (28, Fort Myers) with delay or destruction of mail.  If convicted, she faces a maximum penalty of five years in federal prison. 

According to the indictment, on August 13, 2016, Morman, an employee of the United States Postal Service, knowingly destroyed, detained, and delayed approximately 418 pieces of standard and first class mail.

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

This case was investigated by the United States Postal Service, Office of Inspector General.  It will be prosecuted by Assistant United States Attorney Yolande G. Viacava.

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Stevie McDonald (41, Winter Haven) has pleaded guilty to making false statements in a mortgage loan application. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.

According to court documents, 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 his employment. In December 2007, during the course of the 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 this loan.

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.

Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Kareem Patrick Campbell (19) to time served (approximately 13 months in prison) for conspiracy to commit wire fraud. As part of his sentence, the Court entered a money judgment in the amount of $227,375.85, the proceeds of the wire fraud conspiracy. Campbell was also ordered to pay restitution to the victims of his offense. Campbell pleaded guilty on May 4, 2016.  He has been incarcerated since his arrest on related state charges on August 13, 2015. 

According to court documents, between April 2015 and August 2015, Campbell and others conspired to commit and committed wire fraud by providing fake bank authorization codes to merchants throughout Florida and elsewhere, including North Carolina, as part of a scheme commonly known as “force posting.”  Campbell and his co-conspirators targeted jewelry stores, car accessory retailers, and hotels. As part of the scheme, Campbell would present a canceled debit card that lacked sufficient funds to pay for his purchases. When the card was declined, Campbell would then call a co-conspirator, who would pretend to be a bank customer service employee and would provide a fake authorization code to the merchant, along with instructions on how to key the code into the merchant’s point of sale machine.  These fake codes caused merchants to override their credit card processing machines’ denials of the debit card.  As a result of the scheme, the conspirators were able to successfully purchase jewelry and other items worth at least $227,375.85. 

On May 11, 2016, a grand jury in the Middle District of Florida returned an 11-count indictment charging one of Campbell’s co-conspirators, Rajiv Edwards, with conspiracy to commit wire fraud and wire fraud. Edwards remains at large.

This case is being investigated by the United States Secret Service and the Tampa Police Department.  It is being prosecuted by Assistant United States Attorney Megan K. Kistler.

Jacksonville, FL – United States Attorney A. Lee Bentley, III announces today that Physicians Group Services, P.A., doing business as Coastal Spine and Pain (“Coastal”), has agreed to pay $7.4 million to the government to resolve allegations that Coastal violated the False Claims Act by performing medically unnecessary drug screening procedures. 

The settlement relates to Coastal’s use of “Quantitative Drug Tests,” or tests that identify and count particles of illicit drugs in patients’ urine. The use of quantitative drug tests – tests that are very specific and also very expensive – is appropriate only if there is reason to doubt the more general and cheaper qualitative drug test screens.  The government contends that Coastal appropriately performed qualitative drug tests for its patients.  However, the United States contends that, regardless of the result of the less expense qualitative test, Coastal performed and billed for quantitative drug tests for all patients. The government contends this was medically unnecessary, as there was no reason to question or further confirm previous qualitative urine drug testing screens. 

“The United States Attorney’s Office is committed to taking the steps necessary to protect Medicare, TRICARE, and other federal health care programs from fraud,” said U.S. Attorney Bentley.  “When health care practitioners conduct medical tests, they must only bill for them when it is appropriate and medically necessary.  We will vigorously pursue providers that perform tests indiscriminately, regardless of need.”

This case was developed through the proactive review of claims data. Coastal was a statistical outlier in terms of billing for quantitative drug test screens.  In fact, in each and every instance that Coastal billed for a qualitative drug test screen, it also billed for a quantitative drug test screen. This statistical outlier prompted questioning and investigation by the Department of Justice.

“New and expanded uses of data analytics to identify suspicious billing patterns, such as in this case, are providing law enforcement agencies with powerful investigative tools to combat fraud and abuse in federal health care programs,” said HHS OIG SAC Shimon Richmond.  “Medicare should only be paying for medical tests to improve the health of beneficiaries, not the profit margins of unscrupulous physicians.  Today’s settlement should serve as notice to others that fraud will be vigorously pursued.”

This civil 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 more than $30 billion through False Claims Act cases, with more than $18.3 billion of that amount recovered in cases involving fraud against federal health care programs.

“We appreciate the support from the Department of Justice in protecting the TRICARE benefit from fraud and helping to ensure the benefit continues to exist for our service members, families, and retirees,” said Vice Admiral R. Bono, Director, Defense Health Agency.

This matter was investigated with assistance from the Department of Health and Human Services Office of Inspector General (HHS/OIG) and the Defense Criminal Investigative Service (DCIS).  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. 

Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces today that Edrey Santo Rojas (31, Cape Coral) pleaded guilty to access device (credit card) fraud and three counts of aggravated identity theft.  Santo Rojas faces a maximum penalty of ten years in federal prison for the credit card fraud and a consecutive term of two years for each aggravated identity theft conviction. He will also be ordered to pay restitution to the victims of the offenses. Santo Rojas has been ordered to remain in custody pending sentencing, the date of which has not yet been set.

According to the plea agreement, between December 2014 and August 2015, Santo Rojas used unauthorized credit card information at various retail establishments. He also used three counterfeit and unauthorized access devices with account numbers belonging to financial institutions and individuals, without lawful authority.

In a related case, on August 16, 2016, U.S. District Judge Sheri Polster Chappell sentenced Henry Alberto Fernandez Gomez (30, Cape Coral) to three years in federal prison for participating in credit card fraud and access device fraud.  Gomez used stolen and unauthorized credit card information 27 times at retail establishments throughout Florida to purchase various items.          

These cases were investigated by the Federal Bureau of Investigation, the Economic Crimes Unit of the Lee County Sheriff’s Office, and the Cape Coral Police Department, with assistance from the United States Secret Service and the State Attorney’s Office for the 20th Judicial Circuit.  They are being prosecuted by Assistant United States Attorney David G. Lazarus.

Orlando, Florida– U.S. District Judge John Antoon, II has sentenced Hamid Mohamed Ahmed Ali Rehaif (25, Melbourne, and a citizen of the United Arab Emirates) to 18 months in federal prison for possession of a firearm and ammunition by an unlawful alien. Following his prison term, he will be deported back to the United Arab Emirates. Rehaif was found guilty by a federal jury in May 2016.

According to evidence presented at trial, Rehaif was admitted into the United States in 2013 under a student visa in order to attend the Florida Institute of Technology (FIT). After completing three semesters at FIT, he was academically dismissed in December 2014. As a result, Rehaif became an unlawful alien when he failed to immediately depart the United States. During that time, Rehaif possessed firearms and ammunition at a local shooting range in Melbourne, Florida. In addition, he provided ammunition to two hotel employees as “gifts.” At the sentencing hearing, the Court found that Rehaif had illegally purchased three other firearms.  

Law enforcement agents originally made contact with Rehaif in December 2015, at a hotel in Melbourne where he had been living for two months. According to court documents, Rehaif stayed at the hotel for 53 straight days and paid over $11,000 in room fees. Law enforcement found rounds of handgun and rifle ammunition in his hotel room and in a storage unit that Rehaif had rented, but did not locate any firearms.   

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, and the Melbourne Police Department. It was prosecuted by Assistant United States Attorney Shawn P. Napier and Special Assistant United States Attorney Christina R. Downes.

Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Eugene Warren Brewington (34, Orlando) to nine years in federal prison for conspiracy to commit mail fraud and wire fraud for his role as a leader in a timeshare resale fraud scheme.  The Court also entered a money judgment against Brewington in the amount of $704,326.55, which represents the total amount of money fraudulently obtained as a result of the scheme. Brewington was found guilty by a jury on June 10, 2016.

According to testimony and evidence presented at trial and sentencing, Brewington founded and operated two companies in Orlando, “Timeshare Title Services LLC” and “United Clearing Solutions LLC.”  Representatives of the two companies, known as “callers,” made unsolicited phone calls to timeshare owners throughout the country and falsely claimed that a buyer existed for their timeshares. The timeshare owners were told that buyers had deposited money into an escrow account for the purchase of their timeshares, and they received documents from the companies that appeared to be legitimate timeshare sales contracts. Ultimately, the timeshare owners were told to send advance fees to the companies to finalize the sales. Numerous timeshare owners made advance fee payments to the companies but received no services and their timeshares were never sold. 

Brewington managed the bank accounts where the advance fees were deposited and rented the office spaces from where the “callers” executed the scheme. Within a three-month period, more than $500,000 in timeshare owner payments were deposited into bank accounts for the two companies. Brewington and others associated with the companies used these funds to enrich themselves. 

Another participant in the scheme, Chima Edozie Aligwekwe (33, Orlando), was also found guilty of conspiracy to commit mail fraud and wire fraud by a jury. His sentencing hearing is scheduled for September 12, 2016.

This case was investigated by the United States Postal Inspection Service and the Orange County Sheriff’s Office, with assistance from the United States Secret Service.  It was prosecuted by Assistant United States Attorneys Andrew C. Searle and Kara M. Wick.

Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that Jeffrey Ihm (49, Naples) today pleaded guilty to 14 counts of wire fraud and 5 counts of aggravated identity theft. Each wire fraud count carries a maximum penalty of 20 years in federal prison and each aggravated identity theft conviction is punishable by a term of two years’ imprisonment, consecutive to the sentence imposed for the wire fraud convictions. The indictment also notifies Ihm that the United States intends to forfeit $315,000 in fraud proceeds previously seized from a Suncoast Credit Union checking account and a house located in Naples, which are alleged to be traceable proceeds of the offense. The United States is also seeking a money judgment in the amount of $2,234,681, representing the proceeds Ihm is alleged to have received as a result of the fraud scheme.

According to court documents, between February 2013 and July 2014, Ihm assumed the identities of and posed as executives of a number of companies, including Roper Industries, Inc., Kinetic Technologies, LLC, CSX Corporation, and Convergence Consulting Group, Inc. He then generated false and fraudulent emails and other documents in the names of the companies’ executives in order to defraud financial institutions, causing them to transfer to him $2,234,681 to which he was not entitled. Ihm used the monies to purchase real property and for other personal enrichment. 

This case was investigated by the Fort Myers Office of the United States Secret Service and the Jacksonville Office of the Federal Bureau of Investigation, with assistance from the Economic Crimes Unit of the Collier County Sherriff’s Office. It is being prosecuted by Assistant United States Attorneys David G. Lazarus and Dale R. Campion.

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces today the return of an indictment charging Thomas Leslie Carr (48, Jacksonville) with two counts of producing child pornography. If convicted, he faces a mandatory minimum penalty 15 years, up to 30 years, in federal prison on each charge. Carr was arrested at his home today by federal agents. His arraignment and detention hearing are scheduled for August 30, 2016, at 10:00 a.m.       

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

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

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

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Joe Manuel Gonzalez (66, Tampa) today pleaded guilty to structuring financial transactions to avoid currency reporting requirements. He faces a maximum penalty of five years in federal prison and a fine of up to $250,000.

According to the plea agreement, Gonzalez, an attorney with his own law practice in Tampa specializing in financial and tax matters, established a fictitious trust and bank account for a confidential source (CS) and undercover agent with the Drug Enforcement Administration.  The CS and the undercover agent posed as brothers seeking to launder drug proceeds from their marijuana grow house operations. The “brothers” told Gonzalez that they made approximately $30,000-$50,000 per month from their marijuana operation and needed somewhere safe to put their money. Gonzalez advised the “brothers” how to set up and make deposits into bank accounts to avoid detection by law enforcement. Gonzalez established a bank account for the “brothers” in the name of a fictitious trust and made the initial deposits into the bank account with what Gonzalez understood to be proceeds from the marijuana business. On two occasions, Gonzalez structured the cash provided to him by the undercover agent, breaking up the bank deposit into separate transactions under $10,000 to avoid the currency reporting requirements and to avoid detection by law enforcement.  

This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Josephine W. Thomas.

Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced Kevin Edward Schoffman (30, Deland) to seven years in federal prison for distribution and possession of child pornography. The Court also ordered him to pay restitution to the victims of the offense. He pleaded guilty on June 3, 2016.

According to court documents, Schoffman, a first-year law student at the time, was part of a group of individuals who used a messaging application to send and receive images of child pornography. The group went by the name “YoungTorture” and circulated images of children as young as infants being sexually abused by adults. Schoffman was an active participant in the group, and at the time of his arrest possessed 1,012 images and 416 videos depicting child pornography. 

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Embry J. Kidd.

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 – U.S. District Judge Henry Lee Adams, Jr. has sentenced Lorne Jordan to 51 months in federal prison for conspiracy to defraud the United States, theft of government funds, and aggravated identity theft. He was also ordered to pay restitution to the Internal Revenue Service in the amount of $120,713.09. Jordan pleaded guilty on April 15, 2016.

According to court documents, the Internal Revenue Service received information that Jordan was in possession of a large amount of U.S. Treasury checks and needed assistance in cashing them. Over a series of several meetings, Jordan provided more than 25 Treasury checks, totaling over $70,000, to an undercover agent for cashing. He also advised that he had previously worked with a postal employee to cash additional Treasury checks he had obtained. On January 13, 2016, agents executed a search warrant at Jordan’s residence and found personal identifying information of at least 100 individuals.   

The case was investigated by The Internal Revenue Service - Criminal Investigation, United States Postal Service -Office of Inspector General, Florida Department of Law Enforcement, and the North Florida Financial Crimes Task Force.  It was prosecuted by Assistant United States Attorney Kelly S. Karase.

Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Christopher A. Maguire (34, formerly of Orlando) to 10 years in federal prison for wire fraud and illegal monetary transactions. As part of his sentence, the Court also entered a money judgment in the amount of $4,938,574.40, the proceeds of the charged criminal conduct. Maguire pleaded guilty on May 18, 2016.

According to court documents, from at least May 2012 through April 2014, Maguire operated a scheme where he, and promoters employed by him, solicited victim-investors to send him funds via electronic wire or check. Maguire and his promoters targeted individuals and groups of victim-investors for funding using companies operated by Maguire including M Development LLC, IQ Options LLC, and Vivid Funding LLC.

The victims’ funds were never actually invested into the opportunity presented to them.  Maguire used some of the funds on personal expenditures, as well as payments to his promoters. Maguire also made numerous payments back to certain victims, often enticing these victims to reinvest the proceeds of the transaction, sometimes triggering additional investment of funds by the victims or their associates.

Through this scheme, Maguire was responsible for losses of over $4.9 million to over 150 victim-investors. The majority of the victims were located in central Florida and in northern Ohio.

This case was investigated by Internal Revenue Service - Criminal Investigation, and the Florida Office of Financial Regulation. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.

Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced Timothy Michael Sedlak (43, Ocoee) to 42 years in federal prison for production and possession of child pornography.  The Court also ordered him to forfeit the computers and electronic equipment used in the offenses.  A federal jury found Sedlak guilty on May 26, 2016.

According to court documents, on two occasions, Sedlak took photographs of himself sexually abusing a small child.  The first incident took place in September 2009, when the victim was a year old, and the second incident took place in April 2011, when the child was three.  The images of Sedlak abusing the child 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 that had been downloaded from the Internet.

"The horrible victimization this young child has survived cannot be erased, but we can ensure this criminal cannot harm another child," said Susan L. McCormick, Special Agent in Charge of the Tampa Division of the Department of Homeland Security, Homeland Security Investigations (HSI), who assisted with the investigation of the case. "HSI and our law enforcement partners will continue to make our communities safer and hold monsters like this accountable for their actions."

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.

This case was investigated by the United States Secret Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.

Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Terrell Tramone Brown (48, Alabama) to six years and eight months in federal prison for access device fraud and aggravated identity theft. The Court also ordered him to forfeit $102,024.15, which is traceable to proceeds of the offense.  Brown pleaded guilty on June 6, 2016.

According to court documents, on August 28, 2015, Brown, identifying himself as C.W., went to Dimmitt Cadillac in Clearwater, Florida and obtained a line of credit to purchase a 2015 Cadillac Escalade for $102,024.15. He provided the dealership with a counterfeit Kentucky driver’s license featuring C.W.’s name, but with Brown’s photograph. Brown also gave the dealership C.W.’s date of birth, Social Security number, and home address to secure the financing for the vehicle.

On February 19, 2016, investigators interviewed C.W., who currently resides in Texas. He stated that he does not know Brown, nor did he give him authorization to use his information to secure a loan. C.W. provided a copy of his credit report that lists the loan for the 2015 Cadillac Escalade as one of C.W.’s current obligations.  According to that credit report, no payments have been made towards the loan balance since the inception of the loan on August 29, 2015. A representative from the Kentucky State Police confirmed that the Kentucky driver’s license used by Brown was counterfeit.

On February 23, 2016, law enforcement officers stopped and arrested Brown as he was driving the 2015 Cadillac Escalade in Hernando County, Florida. At the time, Brown was a fugitive from his term of supervised release related to an earlier federal conviction for counterfeiting. A search of the vehicle resulted in the recovery of counterfeit checks, blank check stock, miscellaneous mail addressed to C.W. in Tampa, numerous counterfeit Florida and Kentucky driver’s licenses with Brown’s photo on them, numerous counterfeit Veterans Affairs ID’s with Brown’s picture on them, bank account documents matching the names on the counterfeit driver’s licenses and ID’s, miscellaneous personal identifiable information in the form of names, dates of birth, and Social Security numbers, counterfeit and re-encoded credit cards, a credit card skimmer, and numerous computers, devices, and smart phones. A search of Brown’s devices revealed that he had previously attempted to purchase a 2015 Dodge Charger for $49,169.14, and a 2014 Range Rover for $93,679.89, using stolen identities.

This case was investigated by the United States Secret Service and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell yesterday sentenced Joshua Anthony Rivera (29, Orlando) to 46 years in federal prison for interfering with interstate commerce by robbery, brandishing a short-barreled shotgun in the course of committing those robberies, and possessing a firearm as a convicted felon.

Rivera was found guilty by a jury on March 10, 2016.

According to evidence presented at trial, between June 7 and June 17, 2015, Rivera robbed three convenience stores and a grocery store using a short-barreled shotgun. During the trial, victims of those robberies testified about their terrifying experiences, including one father whose young daughter had been with him during the robbery. In addition, surveillance videos revealed that the robber had worn some of the same articles of clothing during multiple robberies, particularly the same pair of athletic shoes. Trial evidence also showed that Rivera had used the same short-barreled shotgun during each robbery, and also had used the same Ford Expedition during at least two of the robberies.

When law enforcement officers arrested Rivera at his hotel, shortly after the last robbery, they found articles of clothing, the short-barreled shotgun, the Ford Expedition, and several other items matching those used during the robberies.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, the Plant City Police Department, the Manatee County Sheriff’s Office, and the Pasco County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Shauna S. Hale and Taylor G. Stout. 

Fort Myers, FL – United States Attorney A. Lee Bentley, III announces that James Thomas Bissell (32, Lehigh Acres) today pleaded guilty to possession with the intent to distribute cocaine, heroin, hydrocodone, marijuana, alprazolam and morphine, and possession of firearms as a convicted felon. The drug offenses are each punishable by a maximum penalty of 20 years in federal prison and the firearms offense is punishable by a maximum penalty of 10 years’ imprisonment.

According to the plea agreement, on October 23, 2015, Bissell sold cocaine and heroin to an undercover Lee County Sheriff’s detective at the defendant’s home in Lehigh Acres. On December 3, 2015, the Lee County Sheriff’s Office executed a search warrant at Bissell’s residence and recovered six types of controlled substances that he was holding for distribution, along with 34 firearms and cash. As a convicted felon, Bissell was prohibited from possessing the firearms, two of which had been previously reported stolen.     

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David G. Lazarus.

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that John Peter Christensen (64, West Palm Beach) has pleaded guilty to conspiracy to commit healthcare fraud. He faces a maximum penalty of five years in federal prison. A sentencing date has been set for November 21, 2016.

According to the plea agreement, Christensen was a licensed medical doctor in the State of Florida who practiced medicine in Palm Beach County and elsewhere in Florida. Christensen was also an enrolled Medicare provider and had a provider identification number that allowed him to submit reimbursement claims to Medicare for services that he provided to Medicare eligible patients. At some point between 2006 and 2011, Christensen authorized a chiropractor who operated a clinic in Volusia County, Florida, to use his name and Medicare provider number to submit false and fraudulent reimbursement claims to Medicare. As a result, Christensen caused over $1 million in loss to the Medicare program. Christensen used some of this fraudulently obtained money for personal expenditures, including an investment in a company and a payment towards the purchase of a Mercedes Benz vehicle. 

This case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration, Office of Criminal Investigations, and the U.S. Department of Health and Human Services - Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Andrew C. Searle and Shawn P. Napier.

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Chad Theodore Dillon (44, Okaloosa County) with 11 counts related to the sexual abuse of children. These charges include coercion and enticement of a minor, traveling with the intent to engage in sexual conduct with a minor, production of child pornography, transportation of child pornography, advertising for child pornography, and receipt of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in federal prison on four of the counts, and a maximum of life in federal prison on two of the counts.

On August 3, 2016, Dillon was arrested in Jacksonville pursuant to a criminal complaint. He is being held in federal custody.   

According to court documents, between July 6 and July 13, 2016, Dillon engaged in a series of graphic online conversations with a 15-year-old child. During the course of these conversations, he discussed his desire and intention to travel to Georgia to have sex with the child, which he later did. Dillon took a photo of himself engaged in sexual activity with the child and sent it to her. He also sent the child explicit photos of himself.

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

This case was investigated by the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and the Federal Bureau of Investigation. It is being 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 announces today the return of a superseding indictment charging Matthew Bryan Caniff (33, Gainesville) with attempted online enticement of a minor, advertising for child pornography, and attempted production of child pornography. If convicted, he faces a minimum mandatory penalty of 10 years, up to life, in federal prison on the attempted enticement charge. He faces a minimum mandatory penalty of 15 years, up to 30 years, in prison for each of the enticement, advertising, and attempted production charges.

According to court documents, between March 31 and April 1, 2016, Caniff engaged in a series of online text conversations with a person he believed to be a 13-year-old child. This "child" was actually an undercover FBI agent. During the course of these conversations, Caniff discussed in graphic detail his desire to have sex with the “child” at “her” home. He also sent several explicit photos of himself to the “child,” and told “her” that he would bring prescription drugs with him to share with “her.” During the early morning hours on April 1, 2016, Caniff drove from Gainesville to a home in St. Johns County to meet the “child” for sex. He was arrested by deputes from the St. Johns County Sheriff’s Office, and several prescription pills were found in his possession.

This case was investigated by the St. Johns County Sheriff’s Office, the Alachua County Sheriff’s Office, and 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.justice.gov/psc.

Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Deryck Dean Barcous (27, Jacksonville) to 46 months in federal prison for selling counterfeit Federal Reserve notes and for possessing a firearm as a convicted felon. In a companion case, Judge Davis sentenced Barcous to 14 months’ imprisonment for violating his federal supervised release. At the time Barcous committed these new criminal offenses, he was on federal supervised release for passing counterfeit Federal Reserve notes.   

According to court documents, on October 20, 2015, Barcous sold $3,640 in counterfeit currency to a confidential source (CS) working on behalf of law enforcement. During that transaction, Barcous displayed a firearm and offered to sell it to the CS. In a follow-up meeting two days later, Barcous sold the CS $5,600 in counterfeit currency and a loaded firearm and ammunition. He was subsequently arrested. Further investigation revealed that Barcous had four prior felony convictions. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jacksonville Sheriff’s Office, and the United States Secret Service -Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.

Fort Myers, FL – United States Attorney A. Lee Bentley, III announces that Robert A. Scappa, D.O. has agreed to pay $250,000 to the government to resolve allegations that he violated the False Claims Act by causing claims to be submitted to federal health care programs for laboratory tests that were not medically necessary. 

During the relevant time period, Scappa was a urologist practicing as part of Scappa Urology, which was a division of 21st Century Oncology, LLC. 21st Century is a nationwide provider of integrated cancer care services that is headquartered in Fort Myers. As part of its business, 21st Century employs and affiliates with physicians in specialty fields such as radiation oncology, medical oncology, and urology. 

The settlement announced today resolves allegations that Scappa caused to be submitted claims to Medicare and Tricare for fluorescence in situ hybridization, or “FISH,” tests that were not medically necessary.  FISH tests are laboratory tests performed on urine that can detect genetic abnormalities associated with bladder cancer.  Medicare does not consider a FISH test reasonable or necessary unless it’s used to monitor for tumor reoccurrence in a patient previously diagnosed with bladder cancer or unless, after performing a full urologic workup, the physician has reason to suspect that a patient with hematuria (i.e., blood in the urine) may have bladder cancer.

In January 2009, Scappa began referring all of the FISH testing ordered by him to a laboratory owned and operated by 21st Century. He was paid bonuses by the company based, in part, on the number of FISH tests he referred to 21st Century laboratory.  The settlement is based on Scappa’s ability to pay. 

The allegations that doctors affiliated with 21st Century were ordering unnecessary FISH tests were originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery.  The whistleblower, a former medical assistant who worked for David Spellberg, M.D. at Naples Urology Associates, which was also a division of 21st Century Oncology, will receive $37,500 as her share of this recovery. This amount is in addition to a $3.2 million share she will receive as the result of the $19.75 million settlement previously reached with 21st Century Oncology.

“In fighting health care fraud, it is important that individual physicians, as well as their employers, be held accountable,” stated U.S. Attorney Bentley. “Doctors should not be able to escape personal liability for health care fraud.”

"This settlement is yet another example of the continuing commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program," said Special Agent in Charge John F. Khin, Southeast Field Office.  "As one of our top priorities, DCIS aggressively investigates health care fraud that harms the DoD, to ensure the best use of precious taxpayer dollars needed to provide critical care for our Warfighters, their family members, and military retirees."

“Tests ordered to increase profits rather than improve the healthcare of patients are an attack on Medicare and the American taxpayer,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General.  “This settlement demonstrates that such practices have consequences.”

The investigation was handled by Trial Attorney Arthur Di Dio from the Civil Division’s Commercial Litigation Branch and Assistant U.S. Attorney Kyle S. Cohen from the Fort Myers Division of the U.S. Attorney’s Office for the Middle District of Florida, with assistance from DCIS, FBI, and the Department of Health and Human Services Office of Inspector General. 

This civil 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 $30 billion through False Claims Act cases, with more than $18.3 billion of that amount recovered in cases involving fraud against federal health care programs.

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

The lawsuit is captioned United States, State of Florida, ex rel. Mariela Barnes v. Dr. David Spellberg, 21st Century Oncology and Naples Urology Associates, Civil Action No. 2:13-cv-228-FtM-38DNF (M.D. Fla.). 

Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Jon Christopher Stoune (45, St. Johns County) to 17 years and 6 months in federal prison for the attempted online enticement of a minor to engage in sexual activity, advertising for child pornography, and attempted production of child pornography. He was also ordered to serve a 10-year term of supervision and to register as a sex offender upon his release. Stoune was found guilty by a federal jury in March 2016.

According to evidence presented at trial, during March and April 2015, Stoune engaged in a series of online conversations with a person he believed to be a 14-year-old child.  The "child" was actually a detective from the St. Johns County Sheriff’s Office.  During the course of these conversations, Stoune discussed in detail his desire to have sex with and obtain pornographic pictures of the “child.” On April 21, 2015, Stoune drove to St. Augustine Beach to meet the “child” for sex and was subsequently arrested. Officers recovered a digital camera, several sex toys, and condoms from Stoune’s pants pocket.  A search of his vehicle revealed, among other things, a backpack containing a leather whip, a wooden paddle, a billy club, nylon restraints, and other devices designed for use in sadomasochistic activity. 

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

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

Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Henry Alberto Fernandez Gomez (30, Cape Coral) to three years in federal prison for access device (credit card) fraud and aggravated identity theft. The Court also ordered him to repay $8,070.45 in restitution to his victims and an additional $8,070.45 to the United States in the form of a forfeiture money judgment representing the proceeds he obtained as a result of the offenses.  

According to the plea agreement, between December 30, 2014, and April 13, 2015, Fernandez Gomez used stolen and unauthorized credit card information 27 times at retail establishments throughout the Florida to purchase various items, including $3,500 of furniture. He also used another person’s means of identification to make a retail purchase.

This case was investigated by the Federal Bureau of Investigation, the Lee County Sheriff’s Office Economic Crimes Unit, and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney David G. Lazarus.

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Darius Vashon Tolbert (38, Tampa) guilty of receipt of stolen government property and possession of stolen mail.  He faces a maximum penalty of 10 years in federal prison.  A sentencing date has not yet been set.

According to evidence presented at trial, Tolbert purchased approximately $569,000 of stolen Social Security benefit checks between April and July 2012.  The checks, belonging to more than 400 beneficiaries, were all destined for addresses in Pinellas County and had been stolen from the St. Petersburg Processing and Distribution Center by a postal mail handler.  They were part of a larger theft of more than $2 million in checks by the same mail handler. The checks that Tolbert purchased were later cashed at a money services business in Live Oak, Florida. The mail handler, Stacy Darnell Mitchell, was indicted in March 2016.      

This case was investigated by the Social Security Administration Office of the Inspector General, the United States Postal Service Office of Inspector General, the United States Postal Inspection Service, the United States Department of the Treasury, and the Pinellas County Sheriff’s office.  It is being prosecuted by Assistant United States Attorney Patrick Scruggs.

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Anthony Johnson (52, Jacksonville) with three counts of aggravated identity theft and three counts of false representation of a Social Security number. Each aggravated identity theft count carries a two-year mandatory term of prison. He also faces a maximum penalty of five years in federal prison on each false representation count. Johnson is currently on federal supervised release for separate fraud and identity theft-related charges. He faces a final violation of supervised release hearing. A date has not yet been set for his arraignment or the final violation of supervised release hearing. He is currently in federal custody.       

According to the indictment, Johnson used the Social Security numbers of multiple victims to deceive the Duval County Tax Collector, Florida Department of Highway Safety and Motor Vehicle – Division of Motorist Services, and an apartment complex in Jacksonville.

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

This case was investigated by the Florida Highway Patrol – Bureau of Criminal Investigations and Intelligence, the Jacksonville Sheriff’s Office, and the United States Secret Service Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.

Tampa, FL – United States Attorney A. Lee Bentley, III announces that the United States Court of Appeals for the Eleventh Circuit has affirmed the convictions for all four defendants who stood trial in 2013 in the case of United States v. Peter Clay et al., commonly known as “The WellCare case.”

In June 2013, a federal jury in the Middle District of Florida found former WellCare Chief Executive Officer Todd S. Farha guilty of two counts of health care fraud; former WellCare Chief Financial Officer Paul L. Behrens guilty of two counts of making false statements relating to health care matters and two counts of health care fraud; William L. Kale, former Vice President of Harmony Behavioral Health, Inc. (a wholly-owned subsidiary of WellCare), guilty of two counts of health care fraud; and Peter E. Clay, former WellCare Vice President of Medical Economics, guilty of making false statements to a law enforcement officer.

In May 2014, the district court sentenced Farha to 36 months in prison, Behrens to 24 months, and Kale to one year and one day, and also sentenced Clay to five years’ probation (and no imprisonment). Clay then began serving his probation, but Farha, Behrens, and Kale have remained free pending the outcome of their appeal.

In a 124-page opinion and “[a]fter reviewing the extensive trial record and with the benefit of oral argument,” the Eleventh Circuit has now affirmed the jury’s verdicts against all four defendants.

As the Court summarized the case against Farha, Behrens, Kale, and Clay: “At trial, the government proved that together the defendants participated in a fraudulent scheme to file false Medicaid expense reports that misrepresented and overstated the amounts [that WellCare subsidiaries Staywell Health Plan of Florida and HealthEase of Florida, Inc.] spent on medical services for Medicaid patients, specifically outpatient behavioral health care services. By overstating these expenses, the defendants helped Staywell and HealthEase retain millions of dollars in tax-subsidized Medicaid funds that they should have refunded to the Florida Agency for Health Care Administration (‘AHCA’). This, in turn, inflated the profits of Staywell, HealthEase, and WellCare and earned the defendants financial rewards.”

The Court of Appeals characterized the evidence of criminal intent in this case as “overwhelming” and rejected the defendants’ characterization of their convictions as “the improper criminalization of routine contractual and regulatory disagreements.” Specifically, the Court declined to credit the defendants’ argument that their false reports of expenditures on mental healthcare for the poor, which were designed to retain publicly-funded Medicaid monies as profit, were “reasonable” interpretations of their statutory and contractual obligations, stating that it “need not further analyze the defendants’ post-hoc interpretation” because the defendants “did not believe it, knew what was required, and knew their answers were false.”

This case was investigated by the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Florida Attorney General's Medicaid Fraud Control Unit. The case was handled on appeal by Assistant United States Attorney Karin B. Hoppmann. It was prosecuted by Assistant United States Attorney Jay Trezevant, Assistant United States Attorney Cherie Krigsman, Senior Trial Attorney John Michelich of the Department of Justice’s Criminal Division’s Fraud Section, and Special Assistant United States Attorney John Bowers of the Middle District of Florida.

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Ricky Delano Sheppard (59, Brevard County) has pleaded guilty to receiving child pornography.  He faces a mandatory minimum of 5 years, up to 20 years, in federal prison.  A sentencing date has not yet been set.

According to court records, on June 3, 2016, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Brevard County Sheriff’s Office executed a search warrant at Sheppard’s residence. At the time, Sheppard was working as a principal at Spessard L. Holland Elementary School.  During a forensic examination of Sheppard’s computer media, thousands of images depicting child pornography were located, the majority of which depicted young boys, including toddlers, engaging in explicit sexual acts. 

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance from the Brevard County Sheriff’s Office.  It is being 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.

Tampa, Florida – U.S. District Judge Susan C. Bucklew yesterday sentenced Merlando Corlis (48, Tampa) to three years of probation for unlawful discharge of a pollutant. The Court also ordered him to pay a fine of $25,000 and to make a community service payment of $25,000 to the National Fish & Wildlife Foundation.

Corlis pleaded guilty on May 4, 2016. 

According to court documents, from at least June 2012 through December 2013, at a property that he owned located at 4509 Orient Road in Tampa, Corlis and others acting at his direction used a vacuum tank to remove human waste from a septic tank and then unlawfully discharged the sewage into a stream, which ran from the East Lake to the Palm River. 

“Our nation’s environmental laws are designed to protect public health and safety,” said Andy Castro, Assistant Special Agent in Charge of the Environmental Protection Agency’s criminal enforcement program in Florida.  “Untreated sewage contains bacteria, parasites, and viruses. These pathogens can cause a wide variety of acute illnesses in both humans and animals. Today’s sentencing demonstrates that the EPA and its law enforcement partners will take action to protect communities and their local water supplies from pollution.”

This case was investigated by the Environmental Protection Agency, the Hillsborough County Sheriff’s Office, and the Environmental Protection Commission of Hillsborough County. It was prosecuted by Assistant United States Attorney Megan K. Kistler.

Eight Florida residents were charged in an indictment that was unsealed today for their alleged participation in a multimillion-dollar fraud scheme involving prescription compounding  pharmacies located in the Tampa Bay, Florida, area and in Miami.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.

Nicholas A. Borgesano Jr., 43, of New Port Richey, Florida; Bradley Sirkin, 54, of Boca Raton, Florida; Scott D. Piccininni, 47, of Fort Lauderdale, Florida; Edwin Patrick Young, 48, of New Port Richey; Wayne M. Kreisberg, 39, of Parkland, Florida; Matthew N. Sterner, 47, of New Port Richey; Peter D. Williams, 55, of New Port Richey; and Joseph Degregorio, 71, of New Port Richey, were each charged in a 12-count indictment returned on Aug. 3, 2016, with conspiracy to commit health care fraud and wire fraud.  Borgesano, Sirkin, Piccininni, Kreisberg and Sterner were each also charged with three money laundering counts.  Several defendants were arrested today and will have their initial appearances in federal courts in the Middle and Southern Districts of Florida.

According to the indictment, from approximately October 2012 through December 2015, the co-conspirators allegedly used A to Z Pharmacy Inc., located in New Port Richey, and several Miami-area pharmacies to cause the submission of false and fraudulent reimbursement claims for prescription compounded medications to private insurance companies, Medicare and Tricare.  These reimbursement claims were allegedly based on prescriptions generated as a result of illegal kickbacks and bribes, prescriptions that were not based on legitimate provider/patient relationships and misuse of patient information.  Additionally, the reimbursement claims allegedly represented that medications contained certain pharmaceutical ingredients when they did not.  In addition to A to Z Pharmacy, the defendants used Medplus/New Life Pharmacy, Metropolitan Pharmacy, Havana Pharmacy, Jaimy Pharmacy and Prestige Pharmacy to submit the reimbursement claims, according to the indictment. 

The pharmacies submitted approximately $633 million in claims for prescription compounded medications and received approximately $157 million in reimbursement based on the claims, the indictment alleges.  The conspirators allegedly used shell companies to transfer and disburse the money and to conceal the conspirators’ activities in the fraud scheme.

An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office of the Middle District of Florida.  Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section is prosecuting the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion.  In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.

Tampa, FL – Eight Florida residents were charged in an indictment that was unsealed today for their alleged participation in a multimillion-dollar fraud scheme involving prescription compounding  pharmacies located in the Tampa Bay area and in Miami.

U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division,  Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office, and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.

Nicholas A. Borgesano Jr., 43, of New Port Richey; Bradley Sirkin, 54, of Boca Raton; Scott D. Piccininni, 47, of Fort Lauderdale; Edwin Patrick Young, 48, of New Port Richey; Wayne M. Kreisberg, 39, of Parkland; Matthew N. Sterner, 47, of New Port Richey; Peter D. Williams, 55, of New Port Richey, and Joseph Degregorio, 71, of New Port Richey, were each charged in a 12-count indictment returned on Aug. 3, 2016, with conspiracy to commit health care fraud and wire fraud.  Borgesano, Sirkin, Piccininni, Kreisberg and Sterner were each also charged with three money laundering counts.  Several defendants were arrested today and will have their initial appearances in federal courts in the Middle and Southern Districts of Florida.

According to the indictment, from approximately October 2012 through December 2015, the co-conspirators allegedly used A to Z Pharmacy Inc., located in New Port Richey, and several Miami-area pharmacies to cause the submission of false and fraudulent reimbursement claims for prescription compounded medications to private insurance companies, Medicare and Tricare.  These reimbursement claims were allegedly based on prescriptions generated as a result of illegal kickbacks and bribes, prescriptions that were not based on legitimate provider/patient relationships and misuse of patient information.  Additionally, the reimbursement claims allegedly represented that medications contained certain pharmaceutical ingredients when they did not.  In addition to A to Z Pharmacy, the defendants used Medplus/New Life Pharmacy, Metropolitan Pharmacy, Havana Pharmacy, Jaimy Pharmacy and Prestige Pharmacy to submit the reimbursement claims, according to the indictment. 

The pharmacies submitted approximately $633 million in claims for prescription compounded medications and received approximately $157 million in reimbursement based on the claims, the indictment alleges.  The conspirators allegedly used shell companies to transfer and disburse the money and to conceal the conspirators’ activities in the fraud scheme.

An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office of the Middle District of Florida.  Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section is prosecuting the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion.  In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal yesterday today found Altius Willix (47, Winter Haven) guilty of conspiracy, attempted possession of methamphetamine, and assaulting federal officers, inflicting bodily injury. He faces a mandatory minimum penalty of life imprisonment. A sentencing hearing is scheduled for October 28, 2016.

Willix was indicted on May 11, 2016. 

According to evidence 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 is being prosecuted by Assistant United States Attorney Carlton C. Gammons.

Jacksonville, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Matthew Barker (33, Jacksonville) with distribution of heroin and possession of a firearm in furtherance of that crime. If convicted on all counts, he faces a maximum penalty of life in federal prison. The indictment also notifies Barker that the United States intends to forfeit any firearms or ammunition involved in the offense.

According to the indictment, Barker distributed heroin in February and July 2016.  He used a gun to further his drug distribution activity on one of those occasions.

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

This case was investigated by the Jacksonville Sheriff’s Office, the Federal Bureau of Investigation and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Frank Talbot.